Cincinnati Real Estate

The home buyer tax credit is not just for first time buyers anymore! Anyone who wants to purchase a home and gets in contract before April 30, 2010 will be eligible for a hefty federal tax credit if they meet the following criteria:

• Has occupied current home as principal residence for 5 consecutive years within the last 8 years.
• A written, binding contract must be in place by April 30 and closed by June 30, 2010.
• Single-family home that will be used as a principal residence. It can also be a condominium, cooperative apartment, or other type of residence. Vacation homes and rental properties are ineligible . You cannot buy a home from a related person, which includes a spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc.) and receive the tax credit.
• Maximum of $800,000 or less. Current homeowners do not have to purchase a more expensive home to qualify for the tax credit.
• Income limits are as follows:
  To receive the Full Credit, Individual income can be up to $125,000 or Joint filers incomes can be up to $225,000. To receive a Partial Credit, Individuals income can be $125,000 – $145,000, and Joint filers can have incomes of $225,000 – $245,000.

For first time buyers the tax credit is 10% of the purchase price, up to $8000.
For current home owners, the tax credit is 10% of the purchase price, up to $6500.

This is not a tax deduction, it is a tax CREDIT. This means that if at the end of the year you don’t owe any taxes to the IRS, the amount of the credit will be REFUNDED back to you in a check. It won’t be a big cardboard one like you see on TV, but it will make you feel just the same!

For more information, check out the resources below provided by the IRS and CABR:
Congress EXPANDS Federal Tax Credit
Very easy to understand IRS graph for eligibility

There are over 2,570 Cincinnati open houses this weekend!

Need a few more reasons why it is A Great Time to Buy a Home in Cincinnati!

To find out which listings will be open, use this Open House Search

Should I buy a home now or wait? I’ve never been asked this question more than in the previous few years as real estate news and economic woes have dominated the news.
Buying or selling is a personal decision first and a business decision second for many people. People get married, babies are born, kids go off to college, etc. Buying or selling can be a need and not just a want.

When you read that home prices are falling or it is taking longer to sell a home it is certainly normal to question your decision or spend longer gathering information about what to do.

• Which way are prices trending?

• Which way are mortgage rates trending?

• Which way is the amount of homes for sale trending?

For anyone sitting on the fence, this is a MUST READ before jumping off!

Should I Buy a Home Now or Wait?

Or as the great Warren Buffett said “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

Mortgage rates are near historical lows, home prices are at lows, and inventory is starting to decrease (which will send prices higher and provide much less choice).

Call me today and ask Should I Buy a Home Now or Wait?

Don’t miss Cincinnati MLS Open House Weekend
by Matt Clark, Cincinnati Realtor
Cincinnati Real Estate

It couldn’t have come at a better time! Two weekends from now, Saturday and Sunday September 12th and 13th 2009, Cincinnati Realtors are holding a MEGA-OPEN-HOUSE (as we normally do twice a year).

The timing on this event is more crucial than normal because anyone that is planning to take advantage of the FREE $8,000 that the government is giving away is quickly running out of time.
If you have no idea what I’m talking about, see $8,000 FIRST TIME HOME BUYER FEDERAL TAX CREDIT

This incentive program ends December 1st, 2009. If you do not close on a home by December 1st, 2009 you will NOT BE ELIGIBLE FOR THE $8,000 TAX CREDIT.

To find out which listings will be open, use this Open House Search

Every day I get asked a question about the First Time Home Buyers Federal Tax Credit. It can be confusing, and you may hear some conflicting stories out there, but here are some quick facts:

• Tax credit of 10% of the purchase price up to $8,000.
• The credit is REFUNDABLE. This means you can receive money back if you don’t owe taxes.
• Income limits are $75,000 for a single taxpayer and $150,000 for married taxpayers.
• Must own the home for 3 years.
• The tax credit is not meant to be used as a down-payment.

Below is a great video that I found that helps explain the first time home buyer tax credit. Feel free to call me with any questions, I’m always available to help!

Despite declining Cincinnati real estate values in the past few years, Cincinnati real estate is still a very solid investment. We’ve all watched our 401k and other investments decline at times too, but did they ever provide us shelter? In the long term, real estate can be one of the safest and most profitable investments around. On the other hand, gone are the days where you could buy a home and sell it two months later for a $50,000 profit! (If it happens on t.v. then it probably doesn’t really happen in reality.)

The moral of my story is this: whenever your family needs to buy or sell your Cincinnati home, it is a good time to do it. Our home is more about our lifestyle than investment criteria.

Buyers are out there and they are BUYING! In the past two weeks, I’ve been in two multiple offer situations and had another client miss out on a perfect home by waiting a few days to write an offer. When you find your dream, RUN AFTER IT!

Last week a prospective home buyer said “I don’t want to pay for an agent,” and I hear this a lot; that is why I bring it up.

Using a professional Realtor is very important. I’m sure you’ve heard before that buying a home is one of the biggest investments you’ll ever make. If going to the doctor was free, why would you ever try to fix your own broken leg? You wouldn’t. A Realtor sells homes for a living; we sell more each year than you will in your entire life. We have an intense knowledge and expertise of the Cincinnati real estate market (we do much more than open doors..).

FAQs

• Won’t I pay less for a house if I don’t use an agent?

ABSOLUTELY NOT! Many people think that because there is only one agent involved (instead of two) that the seller will be more flexible on price because they only have to pay one agent. In theory this would make sense, but in reality the seller will pay the same amount either way. The only difference is if the seller’s agent keeps it all or has to split it with a buyer’s agent. A good Realtor is a professional negotiator…you will pay less for a home if you use an agent!

• Won’t it be easier if I just use the listing agent also?

The listing agent legally has a duty to protect the seller’s interests. The seller wants the most money possible for their home. Is that what you want? The buyer and seller have conflicting wants. Using your own buyer’s agent will make sure that you have someone biased towards you and fighting for your cause. And it’s FREE!

• What will a buyer’s agent do for me?

Here are just a few of the many things I do for my buyer clients…
Setup automatic home searches, so you’re the first to know when your dream home hits the market.
Refer you to a few reputable lenders to get you the best deal and the right loan for you.
Tour homes with you and point out important characteristics.
Give you my professional opinion of what a home is worth, so you pay the least amount possible.
Refer you to a few reputable home inspectors so you get a thorough inspection of the home.
Explain all the legal contracts involved and guide you through the entire process.
Negotiate offers on your behalf to achieve your objective of getting the best deal possible.
And I answer all your questions, because that’s my job!

To recap, whether you use me or someone else, the use of a buyer’s agent is absolutely crucial when buying a home. We will save you tons of money, and you won’t pay a dime!

We currently have approximately 10 months of inventory on the Cincinnati market. A balanced real estate market occurs when there is approximately 6 months of homes for sale. This means that it is a GREAT time to BUY in Cincinnati. This could possibly be the best time in decades to purchase a Cincinnati home.

In contrast, that does NOT mean you can’t sell your home right now. Like I said, over a thousand Cincinnati homes sold last month alone. Your home must be priced correctly, from day one. There is no “testing” this market. You must be priced more competitively than your competition, you must be staged better than your competition, and you must be ready to show your home on a moments notice. Buyers are looking for a great deal; this doesn’t mean they have to take you to the cleaners, but you do have to give them VALUE.

I’m not one for cold weather, but I’ve been out showing homes every weekend this January and I’m surprised at the amount of people that I see out looking at Cincinnati homes. I love this burst of energy that we’re about to see called SPRING. If you are planning on buying or selling this year, now is the time to involve your real estate professional.

• Maximum of $7,500
• First time buyers only
• Homes purchased April 9, 2008 – JULY 1, 2009
• A zero interest loan for 15 years

I love this program! What Cincinnati first time home buyer doesn’t need a bigger tax refund from Uncle Sam? Although this is really a loan (not a gift), it is a great thing! Cincinnati first time home buyers can use this money to do renovations, buy furniture, a down payment for a new car, or just SAVE IT! The possibilities are endless.

Many Cincinnati first time home buyers can find themselves feeling a little “tapped out” after the purchase of their first home. Coming up with a 3.5% down payment, paying miscellaneous closing costs, inspection fees; all this money going out sometimes depletes the financial cushion that you had in savings. This extra $7,500 in the bank will make you feel a lot more financially sound.

Since this is not a “gift” from our government, it does have to be repaid. The repayment period is 15 years though! If you claim the entire $7,500, and repay over 15 years, this will only be $500 a year. That is only $41 a month to have access to $7,500 right now. I think this is a great loan for Cincinnati first time home buyers. Even better, you don’t start repaying the loan until two years after it is claimed! For a Cincinnati first time home buyer that purchased a home in 2008, you won’t start repaying it until tax time 2010!

Have you found your first dream house but you wrote it off because you didn’t think you had the money to remodel that kitchen? Think again! I specialize in working with Cincinnati first time home buyers, so give me a call and let’s go make your dream a reality in 2009. If you have any questions, please don’t hesitate to call or email me for the answers. Also check out the website below for more information.

Complete legal details of the tax credit can be found at http://www.federalhousingtaxcredit.com/ or by consulting your tax professional.