It’s official! President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. Here’s a detailed overlook at the Tax Credit along with some frequently asked questions.
By Breck J. Hapner
Who gets what? First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount. Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the new deadlines? In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
What are the income caps? The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
What is the maximum purchase price? Qualifying buyers may purchase a property with a maximum sale price of $800,000.
What is a tax credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.
How much are First-Time Homebuyers (FTHB) eligible to receive? An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How much are current Home Owners eligible to receive? The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Can Homebuyers claim the tax credit in advance of purchasing a property? No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property? Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed. According to the IRS, factors that would demonstrate the ownership of the property would include: Right of possession; Right to obtain legal title upon full payment of the purchase price; Right to construct improvements; Obligation to pay property taxes; Risk of loss; Responsibility to insure the property; Duty to maintain the property.
Are there other restrictions to taking the FTHB credit? Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due: They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”); They do not use the home as your principal residence; They sell their home before the end of the year; They are a nonresident alien; They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.); Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.); They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.
Can Homebuyers purchase a Home from a step-relative and still be eligible for the credit? Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.
If a parent ) Who will not live in the property) cosigns for a mortgage, will their child still be eligible for the credit? Yes, provided that the child meets the other requirements for the tax credit.
As always, please consult an accountant or other tax professional with any questions about how this legislation relates to your particular circumstances.
Interested in buying or selling? Call Jimmy White at 410-320-3647
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Many homeowners believe that winter is a terrible time to sell a house. The time leading up to Thanksgiving and ending at New Year’s day can be a terribly slow time for buyer interest and activity. Just too many distractions. But January and February can be a good time to have a well cared for properly priced home on the market. Typically there are fewer homes listed during this time meaning you will have fewer homes to compete with. The buyers who are looking at this time of year are generally serious prospects. They are out sloshing through inclement conditions and braving the cold. They often are being transferred to the area for work, or have finally sold a home they have had on the market and must get into a new home. Often the buyer may have been searching all year and is simply ready to finally pull the trigger. These are the prospects you want to see your house, ready willing and able prospects. If your home is not listed they will not see it. Listing in January or February also gives you a little headstart on the rush of homes that normally hit the market in March and April. It provides your realtor time to get your marketing plan in action, to raise awareness of your home to other realtors through e-marketing, broker opens and lots of personal telling and personal selling. Once you have decided to sell your house and are trying to determine a good time to list it with a broker always remember,,, you can’t sell it if it’s not for sale.
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Market
601 Prospect Bay Drive East
Secluded from the demands often associated with urban life yet close enough for convenient travel to Annapolis, Washington and Baltimore, Queen Anne’s County is a place where residents and visitors can set their own pace of life. The area reflects both beauty and history whether exploring the surrounding Chesapeake Bay and its fabulous destinations, the natural plant and wildlife, or the many up-scale properties that adorn the landscape.
Back Yard / Greenwood Creek
Within the exclusive private community of Prospect Bay and sited on Grasonville’s Greenwood Creek – is a sprawling colonial estate that could serve as the setting of a classic novel. When approaching the property’s long, circular driveway, a distinguished presence is felt as five acres of beautifully preserved land, against a scenic waterfront backdrop, are revealed. One can’t help but also be drawn to the home’s timeless wrap-around porch.
“This home has amazing curb appeal that immediately sets the mood,” said Jimmy White, the Long & Foster representative handling the offer for sale on behalf of the property owners. “The acres of greenery and magnificent view of Greenwood Creek are incredibly soothing.”
The outside of the home is complemented by a logical, well-appointed style that flows throughout its interior. Stunning crown molding and chair rails, hardwood floors, plenty of natural light, and vaulted ceilings are found throughout the home, while individual rooms also boast their own distinct qualities.
Dream Kitchen
The kitchen – complete with state-of-the-art stainless steel appliances, granite countertops, and spacious wood cabinetry – and dining area offer an exquisite waterfront view with ample space for entertaining. The warmth and comfort felt in these rooms extends to the adjacent waterfront family room with cathedral ceiling and walls of glass. An abundance of windows line much of the home taking full advantage of its carefully planned placement along the shoreline.
Unique to this particular home’s floor plan is the incorporation of two master bedrooms. A master suite is located on both levels of the home. Each contains spacious closets, luxurious master bathrooms, and dynamic views. In total, the home has five bedrooms – his and her ground floor offices, a custom deck overlooking the water, and a detached over sized three-car garage. Above the garage is a finished bonus room with 600 feet of additional living space.
Private Dock with Lifts
The property’s 250 feet of prime shoreline includes a private 70-foot dock with lifts. There is three-plus feet of water to accommodate a variety of watercraft. The property also welcomes horses and has a no-maintenance, four-stall barn. Vinyl fencing currently encloses grazing and riding areas with outdoor spotlights on three sides for night riding.
For prospective buyers interested in a home that conveys gracious simplicity on the exterior and splendid personality on the interior, this home is a must see.
For more information on this property, including more pictures, please visit: www.JimmyWhiteHomes.com.
For your private tour of 601 Prospect Bay Drive East, Grasonville Maryland call Jimmy White. 410-320-3647
Posted in
Buyers
Spring has returned to Maryland’s Eastern Shore and appears to be bringing prospective buyers to the local real estate market. Interest in homes located in the three closest counties east of the Chesapeake Bay Bridge spiked in the past 2 weeks as mass media reports of lower interest rates, stock market stabilization and tax incentives for first time home buyers raised confidence. Jimmy White, a realtor with Long and Foster on Kent Island believes the recent news is what prospective buyers have been waiting for. “There is tremendous pent up demand among buyers who have been reluctant because of economic news,” said White. “The fact is that there are many qualified buyers who are now feeling more comfortable going after their first home or a bigger home, or a waterfront or second home east of the Bay Bridge. “Those buyers are finding a wide selection of homes offered, many at refreshed prices, ranging from the mid 200’s to multi-million dollar estates. There are a number of condo-town house communities with amenities like club houses, pools, tennis and walking paths. Several, including Queens Landing and Oyster Cove, offer waterfronts with spectacular views and deeded slips. White says this type of unit is perfect as a weekend retreat and is an alternative to the two or three hour drive to Ocean City. “My wife and I had condos in Ocean City while our children were growing, up but when we became empty nesters that long drive and the crowds were not as much fun, that’s when we bought a waterfront in a golf course community.”
Within a short distance of the Bay Bridge there are several private communitys including Cove Creek Club, SouthWinds, Bennett Point and Prospect Bay, which is home to the Prospect Bay Country Club. Golf is also available at the semi private Atlantic Golf courses of Queenstown Harbor and the private club, Hunter’s Oak. The local towns of Stevensville, Chester, Queenstown and Grasonville comprise the Kent Island area which still has an island feel with many waterfront restaurants and cafes. ”The Eastern Shore is a wonderful place to live or own investment property and with rates as low as they are, the selection as good as it is, and the tax incentives now offered, it is a great time buy,” said white adding, “and ya know, the sky is just a little bluer on this side of the Bridge.”
Posted in
Buyers,
Market,
Sellers
When I’m out and about around the Island I’m often asked, “how’s the market?” We all know that 2008 has been a challenging year everywhere and sales have slowed. What follows is a brief discussion of the recent activity in your neighborhood.
- At one time or another in 2008 there were 67 homes listed for sale in Queens Landing & Bayside.
- 22 have sold
- 24 have been taken off the market
- 21 are currently listed for sale and remain active.
An important aspect of your community is the diversity of homes and price points. Of course there are waterfronts of several types, marina, river & lake plus many water view properties. Prices of sold properties in 2008 ranged from $215,000. to $529,700.
The homes are taking longer to sell. The days on market for the homes that have sold range from 6 days to 440 days. The days on market for the homes currently listed for sale range from 1 day to 406 days.
The table below is a list of the active, under contract and sold properties for the past 12 months for your review.
Last year I participated in 21 transactions where the properties either sold, or are under contract, with a volume of nearly $12 million. I sold 3 properties in your community last year.
The key to selling any home is a correct formula of price, product & promotion. I can assist you in making your product look as good as it can look. I can help you price the home correctly so that it gets the maximum number of showings but leaves no dollars behind. And I can professionally promote your home with a marketing plan that will get you the most exposure possible.
If selling your home is a priority call me to discuss how I can assist you in getting it sold in the shortest amount of time, with the least amount of worry and for the most money possible.
Jimmy White
410-320-3647
If your property is currently listed for sale with another broker this is not intended as a solicitation of that listing.
| SUMMARY REPORT FOR QUEENS LANDING & BAYSIDE 2008 |
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|
|
|
|
|
| SOLD |
*List Price |
Sold Price |
Bedrooms |
Baths |
Garage |
Age |
Days on Market |
|
|
|
|
|
|
|
|
| 412 Drake Tail |
$368,000 |
$368,000 |
3 |
3.5 |
1 |
20 |
0/100 |
| 611 Teal Court |
$248,500 |
$245,000 |
2 |
2.5 |
0 |
12 |
8 |
| 206 Merganser Ct. |
$254,900 |
$249,900 |
2 |
2 |
0 |
11 |
15/15 |
| 1004 Auckland Way |
$519,900 |
$510,000 |
3 |
3.5 |
1 |
8 |
22/219 |
| 35A Queen Anne Way |
$295,000 |
$280,000 |
2 |
2.5 |
0 |
15 |
35/35 |
| 6D Queen Victoria Way |
$224,900 |
$215,000 |
1 |
1 |
0 |
26 |
42/42 |
| 202 Ringneck Court |
$309,900 |
$285,000 |
2 |
2.5 |
1 |
14 |
47/240 |
| 516 Auckland Way |
$337,539 |
$285,000 |
3 |
2.5 |
1 |
8 |
49/415 |
| 52D Queen Caroline Ct. |
$379,000 |
$342,000 |
2 |
2.5 |
0 |
14 |
52/636 |
| 4E Queen Victoria Way |
$395,000 |
$372,000 |
2 |
2.5 |
0 |
25 |
63/63 |
| 42E Queen Catherine Ct. |
$348,900 |
$340,000 |
3 |
2.5 |
0 |
14 |
75/75 |
| 26P Queen Annes Way |
$249,900 |
$221,000 |
2 |
2 |
0 |
24 |
110/110 |
| 52B Queen Caroline Ct. |
$369,000 |
$322,000 |
2 |
2.5 |
0 |
14 |
117/117 |
| 102 Teal Court |
$244,926 |
$228,000 |
2 |
2 |
0 |
15 |
118/357 |
| 8A Queen Victoria Way |
$249,500 |
$239,500 |
2 |
1 |
0 |
26 |
120/120 |
| 9h Queen Victoria Way |
$259,900 |
$225,000 |
2 |
2 |
0 |
25 |
125/125 |
| 2A Queen Victoria Way |
$335,000 |
$318,000 |
3 |
2 |
0 |
25 |
162/162 |
| 314 Teal Court |
$264,900 |
$230,000 |
2 |
2 |
0 |
13 |
232/232 |
| 1012 Auckland Way |
$609,000 |
$529,700 |
3 |
3.5 |
1 |
7 |
321/321 |
| 52E Queen Caroline Ct. |
$417,950 |
$342,000 |
2 |
2.5 |
0 |
14 |
323/440 |
| 33C Queen Anne Way |
$325,000 |
$300,000 |
2 |
2.5 |
0 |
21 |
470/470 |
|
|
|
|
|
|
|
|
| ACTIVE |
**List Price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 9E Queen Victoria Way |
$279,000 |
|
2 |
2.5 |
0 |
25 |
16/139 |
| 44E Queen Neva Ct. |
$374,900 |
|
2 |
2.5 |
0 |
13 |
18/18 |
| 22B Queen Victoria Way |
$344,000 |
|
3 |
2.5 |
0 |
24 |
43/43 |
| 51E Queen Caroline Ct. |
$349,000 |
|
2 |
2.5 |
0 |
14 |
56/56 |
| 306 Bodys Neck Road |
$515,000 |
|
3 |
3 |
1 |
14 |
57/363 |
| 23 Queen Victoria Way |
$424,900 |
|
4 |
2 |
0 |
24 |
62/62 |
| 210 Merganser Ct. |
$245,000 |
|
2 |
2 |
0 |
11 |
63/63 |
| 102 Harbour Sound Dr. |
$345,000 |
|
2 |
3.5 |
1 |
20 |
79/79 |
| 42G Queen Catherine Ct. |
$359,900 |
|
3 |
2.5 |
0 |
14 |
83/159 |
| 27E Queen Mary Ct. |
$215,900 |
|
2 |
2.5 |
0 |
23 |
107/107 |
| 26L Queen Anne Way |
$259,900 |
|
2 |
1.5 |
0 |
24 |
111/111 |
| 106 Schooner Way |
$499,000 |
|
3 |
3.5 |
0 |
13 |
113/660 |
| 54 Queen Caroline Ct. |
$249,900 |
|
2 |
2.5 |
0 |
11 |
122/122 |
| 110 Teal Court |
$234,000 |
|
2 |
2 |
0 |
15 |
133/133 |
| 304 Drake Tail Place |
$240,000 |
|
2 |
2.5 |
0 |
17 |
153/153 |
| 28B Queen Mary Ct. |
$300,000 |
|
2 |
2.5 |
0 |
24 |
155/155 |
| 202 Widgeon Way |
$534,999 |
|
3 |
3.5 |
1 |
10 |
156/156 |
| 108 Blenny Lane |
$339,500 |
|
3 |
2.5 |
1 |
9 |
166/438 |
| 26C Queen Anne Way |
$289,000 |
|
2 |
1.5 |
0 |
24 |
229/229 |
| 310 Widgeon Way |
$355,000 |
|
3 |
3.5 |
1 |
8 |
239/239 |
| 45G Queen Neva Ct. |
$269,900 |
|
2 |
2.5 |
0 |
14 |
249/249 |
| 22E Queen Victoria Way |
$290,000 |
|
2 |
2.5 |
0 |
24 |
423/637 |
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|
|
|
|
|
|
|
| Information from MRIS (Metropolitan Regional Systems) and is believed to be accurate but should not be relied upon without verification. |
|
| *Original List Price |
| **Current List Price |
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Market