The Home Buyer Tax Credit Extension is Great News for Smoky Mountain Real Estate

Posted by Gatlin on

first-time home buyerThe U.S. Congressional extension of the home buyer tax credit into 2010 is sure to help home owners with homes in Gatlinburg for sale and across the nation. The stimulus of bringing new home buyers into the market was significant enough over the past months, that congress decided to continue the program. In the news flashes out of the National Association of Realtors, I have been following developments on this story for some time. NAR President, Charles McMillian and many of the key NAR economists have felt that the stimulus from the homebuyer tax credit is crucial to getting the U.S. housing industry back on track. Some sources feel the current tax credit has put $22 billion into the U.S. economy and they estimate some 2 million individuals will utilize the tax credit this year. Many NAR members felt that extending the home buyer tax credit would bring in more home buyers that currently are waiting for the right opportunity to buy. This influx of homebuyers would help to reduce high inventory levels of homes and it could “prime the pump” for home buying in other real estate sectors.

 

Let us look into the details of the tax credit extension as it stands currently. Those who qualify are first-time home buyers purchasing November 7, 2009 to April 30, 2010. Current home owners buying a home 11/7/09 thru 4/30/10 who have used the home being sold or vacated as a principal residence for 5 consecutive years within the last 8 years. Qualifying “first-time home buyers” is a purchaser or their spouse who has not owned a residence in the 3 years before a home purchase. The following types of properties are eligible for the extended Home Buyer Tax Credit. These properties include; single-family homes, condos, town homes, and co-ops. Maximum allowable credit on first-time home buyers is $8,000 and the maximum allowable credit for current homeowners is $6,500. An $800,000 home is the maximum priced home available for the extended tax credit. The amount of tax credit available to a home buyer is based on the price of the home and the buyer’s income. Tax credit limits on a buyer’s income are as follows:

 

Single Buyer Income to $125,000- Full credit

Single Buyer Income 125,000-145,000- Tax credit decreases

Married Buyers Joint Income to $225,000- Full credit

Married Buyers Joint Income 225,000-245,000- Tax credit decreases

 

The extended home buyer tax credit should be approached like many other aspects of one’s financial and legal affairs. You need sound, reliable advice from professionals with updated schooling on these matters. Their expertise can help you maximize beneficial items and avoid detrimental unseen consequences on various courses of action. The same advice applies to buying Smoky Mountain Real Estate or Homes in Gatlinburg and other locations in the Smokies. Working with professionals like the Jason White Team can save you valuable time and help you to find your perfect piece of real estate. We know real estate in East Tennessee and we know the area inside and out. Contact us today to let us help you find your property in The Great Smoky Mountains. Click here to view my featured listings.  

 

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Custom Built Log Home in Norton Creek
This property is located in the Mountain Community of Norton Creek, nestled among 13+ acres of green space. Layout of custom built log home ideal for retirement living.
Type: Single Family Home
Location: Gatlinburg ,Tennessee
Price: $399,000
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Beautiful Log Home!!
Hand hewn log home with open floor plan. Mtn stone fireplace and vaulted ceilings Walking distance to many conveniences.
Type: Single Family Home
Location: Gatlinburg ,Tennessee
Price: $199,900
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Things to Know Before You Buy Your First Home

Posted by Gatlin on
I ve got the key
Take your time and know what you are doing before buying your first home

It is a great time to buy a first home.  Not only are home values down and mortgage rates at historic lows but the First Time Home Buyer Tax Credit will give you 10% of your home’s value (up to $8,000) at closing.  These three items can add up to significant savings for the first time home buyer, making it an ideal time to start looking at real estate.  However, there are important things to keep in mind before buying your first home to make sure this important decision is the right one for you and your wallet.

  • Get Information.  Most communities offer free seminars for first time home buyers.  There are also non-profits that offer helpful advice and information.  Visit www.HUD.gov for helpful tips and a list of agencies near you that have free information available.
  • Know What You Can Afford.  Analyze your monthly budget.  A good rule of thumb is that your mortgage should be 28% of your expenses or less to be successful financially.  Remember to factor in home owners insurance and property taxes into this scenario.
  • Talk to a Lender. Start talking with a bank or mortgage lender and get the ball rolling.  The process of being approved by a lender is a longer process these days and you want to make sure that you get approved before the First Time Home Buyer Tax Credit expires on November 30.
  • Find a Real Estate Professional.  Finding the right real estate agent to work with can make your deal run that much more smoothly.  A good real estate agent will help find you a home that works for you, not against you.  A good real estate professional can also help you find a good lender if you have had a hard time during that step.
  • Know What You Are Committing to. During a real estate deal you are signing a lot of papers.  Know what you are signing.  If your real estate agent is having a hard time explaining things to you you might want to take the extra step and get a real estate lawyer to review your documents.

When it comes to buying your first home you want to make sure your are buying something you can afford, something located in a neighborhood you want to live in and, most of all, a place that you want to call home.  Take all of the information and advice you can get, filter and decipher it and make the best decision for you.  Please feel free to call me, Jason White, at the Jason White Team or my staff for more information on purchasing your first home. Our expertise and knowledge of the local area will certainly help in finding just the right home for you here in the Smoky Mountains.

Act Soon For First Time Home Buyer Tax Credit-Offer Ends 12/01/2009

Posted by Gatlin on
  • American flagwater ripple and water drop falling in the middleIf you decide to purchase a home by December 1, 2009, you will be entitled to an $8,000 tax credit. This amendment to the economic stimulus bill will be available to you if you purchase your first home between 1/1/2009 and 12/1/2009. Home buyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, whichever is less.  To avoid possible abuse of this credit, it is only allowed for your primary residence and will only have to be re-paid if said house is sold within two years of purchase. Keep in mind that you must close on or before December 1, 2009 to be eligible for the credit. Most closings take about sixty days, so with that in mind you must go under contract by October 2nd, 2009 – this gives you seventy-three days from today to find your first home. If you manage to meet these deadlines, all you have to do to claim your credit is fill out I.R.S. Form 5405.

    • For more information about this credit go to the IRS website or contact The Jason White Team.

    Unique-Time Sensitive, Opportunity in Real Estate Available Now

    Posted by Gatlin on

     

    The Real Estate Opportunity we are speaking about is the 2009 First Time Home Buyer Tax Credit which provides an $8000 tax credit for first time home buyers purchasing a principal residence from Jan 1, 2009 thru Dec 1, 2009.  This tax credit is potentially a great invitation to buy a home, and with about six months left it is generating activity in home buying across the country according to Realtor.org

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    There is some flexibility in this plan and some are taking the credit up front to use for larger down payments, lower mortgaged amounts, etc.  It is certainly worth talking to your financial advisors to see if you qualify and be sure to check out the knowledgeable people at the Jason White Team for a wide range of possibilities that could fit the tax credit or could fill your other real estate needs.