Exciting News for Anyone Still Looking to Buy: Tax Credit Extended and Expanded!

I have helped many people find a new home in the last year; many of them have or will receive the first-time home buyer tax credit because of their home purchase. And they are thrilled about it! While most would agree that these new home owners were just waiting for the right time to buy, the right time had arrived. Now the right time continues!

Last week, the credit was not only extended for another 6 months, it was expanded to include first-time home buyers with higher incomes. The Worker, Homeownership, and Business Assistance Act of 2009 opens the up-to-$8000 tax credit to almost all first-time home buyers by increasing the maximum annual income. The income cap for single home buyers has increased from $75,000 to $125,000. The cap for married buyers jumps from $150,000 to $225,000.

Home owners looking to purchase a different home shouldn’t feel left out anymore, the new credit covers them as well! Homeowners who lived in their home for at least 5 consecutive years in the past 8 are eligible for a tax credit of up to $6,500 on their next primary residence purchase. The income limits are the same as for first-time home buyers.

The purchased home must be a primary residence costing less than $800,000. Live in it for at least three years after purchase and the $8000 will not have to be paid back.

In order to fight tax fraud, the new law requires anyone claiming the credit to provide documentation that the sale has closed and only adults can claim the credit.

Anxious for your money? Even if you purchase the home in 2010, you can claim it on your 2009 taxes and get an almost instant credit back. Ask your tax professional for details!

Sales contracts must be signed by May 1, 2010, with closing by the end of June. Don’t waste time, let’s start looking! Call me today and I’ll show you what’s available.

If you are a home owner wishing to sell, call me and let’s get your house on the market in time for your next home purchase to qualify you for the credit!

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If you would like help buying or selling a home in Eden Prairie, Chanhassen, Minnetonka, Chaska, Edina or Bloomington, contact me, Brace Helgeson, by email or at 952-974-3466. Start your online search here!

Save for more than your down-payment

When purchasing a house, having a sizable down-payment has always been good advice, and with today’s tighter credit guidelines it is essential. However you need to keep in mind that you will need savings beyond the down payment of your home. Here is a list of the things that usually come up during a home purchase and subsequent move that will require some cash.

• Appraisal fee
• Professional home inspection
• Extra closing costs
• Homeowner’s association fees
• Repairs, upgrades, renovations. There are the obvious and the not-so-obvious. Your inspection may have suggested upgrading some of the electrical outlets, and you may already know you don’t like the paint color, but after you move in there are little things you will probably notice that will you’ll need some cash to rectify immediately.
• Moving van rental fees, boxes, bubble wrap, and mover’s fees. Even if you enlist the help of friends or family, you will need to feed them or at least provide them with refreshments. And don’t forget the gas for the moving vehicle!
• Termination fees for current services, deposits and connection fees for new services.
• Appliances. If your new home already has a full set of appliances, then you can scratch this off your list! If not, be sure to remember the extra costs involved with warranties, installation, etc.
• Household items. Invariably you will find that the stuff you filled your last home with are not quite right for the new one. This can turn into hundreds or thousands of dollars from runs to the home furnishings store and home-improvement store.
• Lawn-care equipment. If this is your first home with a yard you will be surprised at how much equipment you will decide you need. An alternative is to hire someone to do your lawn care for you, which will still incur a cost, although it will be spread out over the coming months.
• If you are relocating a great distance you might have air fare or other transportation costs for your entire family (pets included), a night or two in a hotel, and all the other expenses that can creep up.
• And don’t forget that for at least a few days you might be eating out while you search for that box of dishes!

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If you would like help buying or selling a home in Eden Prairie, Chanhassen, Minnetonka, Chaska, or Bloomington, contact me, Brace Helgeson, by email or at 952-974-3466. Start your online search here!

Attention Fence-Sitters!

If you’ve been sitting “on the fence” waiting for conditions to improve before you purchase a home, fence-sit no more! The Twin Cities housing market offers incredible opportunities for first-time buyers as well as move-up buyers.

In the Twin Cities, we’re seeing lower home prices than in previous years and historically low interest rates. In early July, 30-year fixed-rate loans were available in the low 5 percent range and 15-year fixed-rate loans in the high 4 percent range. These rates are amazing, especially when you compare them to previous years such as the ‘80s when interest rates were in the double digits. This wonderful combination of low interest rates and moderating prices is resulting in excellent affordability. Home prices are well within the means of the average Minneapolis or St. Paul resident.

The Twin Cities also has an excellent supply of homes for sale in all price ranges, styles, and communities. Buyers can choose from new construction, existing homes, starter homes, luxury properties, condominiums, co-ops, townhomes, and lofts.

Also, if you’re a first-time home buyer, don’t forget the tax credit authorized by the American Recovery and Reinvestment Act of 2009. Under this act, first-time home buyers can receive a tax credit for 10 percent of the value of a home, up to $8,000. This is a great incentive, especially since you don’t need to repay the tax credit unless you sell your home within three years. But, you only have until Dec. 1, 2009 to take advantage of this credit.

So, start looking for your next home now. Enjoy our beautiful summer weather and the benefits of the Minnesota housing market.

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If you would like help buying or selling a home in Eden Prairie, Chanhassen, Minnetonka, Chaska, or Bloomington, contact me, Brace Helgeson, by email or at 952-974-3466.