Illinois fourth in nation for Home Buyer Tax Credit claims

The U.S. Government Accountability Office reported Illinois was fourth in the nation in buyer tax credit claim dollars. Illinois has 84,559 claims for $601 million. California was first with 261,302 claims for $1.95 billion, Texas second at 190,979 claims for $1.39 billion and Florida third with 149,066 claims for $1.08 billion.

Inman News (a top real estate industry source) and Marketwatch.com also reported Realtors' Associations and the White House have squashed any speculation a buyer's tax credit will make a come back. We get the this question (new credit or not) a lot as people have been hopeful for another tax credit the slow July closings report.

Frist time buyer tax credit up? For whom the bell tolls...

If you're driving downtown today, steer clear from real estate title companies!

If I were you, I would not get near a title company today. Many people are scrambling to close so they may meet the closing deadline to redeem their first time buyers' tax credit.

My partner Bob and I have a couple closings today...but we are the listing side. So, he gets to go downtown and have all the fun. Although our clients want to close their home sales ASAP, there is less pressure and anxiety on today's date as they are not affected by the credit.

The closing deadline for the first time buyer tax credit may get extended just yet... read more at this CNN story.

More time to close: Tax credit closing deadline likely to be extended

We want our $8,000!

If your a first time buyer holding a contract accepted prior to April 30th, 2010, this extension may help you. There was a rush on mortgages at the first time buyer tax credit deadline and the log-jam has put some closing dates prior to June 30th in jeopardy. Congress to the rescue!

From the AP and Yahoo.com news:
"The Senate on Wednesday approved a plan to give home buyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale."
Read more HERE

Survey: Buyers optomistic after April 30th first time buyers tax credit deadline. Are you?

Buyers still smelling the flowers...

Many of our Chicago clients (buyers and sellers) have been asking for some time now what affect expiring first time buyers tax credit will have on the real estate market. Will prices go down? We can't say, but Bob and I estimate that the under $350,000 priced properties near the downtown center will slow down in demand ( for example South Loop to Rogers Park with Lincoln Park, Lakeview, Lincoln Square, River North, etc... being key neighborhoods). However, pricing for well constructed, nicely appointed and nicely located properties in our opinion will remain fairly flat with already closed comparable properties from this year.

A Prudential Real Estate and Relocation Services, Inc. survey finds Americans are optimistic about buying real estate and are somewhat confident values will go up in the next several years. The expiration of the federal first time buyers tax credit today was low on buyers' concerns. As usual, mortgage interest rates and jobs are the major variables on peoples minds when deciding to buy. From the survey:

"The expiration of the 2010 Home Buyer Tax
Credits on April 30 is unlikely to put off Americans looking to
purchase homes who believe now is a good time to buy and are confident
that home prices will rise according to a survey released by
Prudential Real Estate and Relocation Services, Inc., a Prudential
Financial, Inc. company. The survey of 1,000 Americans between the
ages of 25-64 with at least $35,000 household income was conducted
during April 15-20, 2010."

Read the story HERE

Still confused about the first-time homebuyer tax credit?

We've been contacted by several consumers and clients with questions about the federal first time homebuyer credit even this week. The most confusion surrounds the April 30th deadline. Understand the deadline requirement and you will understand there is still time to take advantage of the credit.

1. Eligible first time buyers must sign a purchase agreement by April 30th. This is not a "closing". You're not necessarily locked into the deal as you will still have attorney approval, mortgage contingency, inspection contingency, approval of minutes, budget, by-laws (if a condo) etc... But, you will be eligible for the credit should you make it to the closing. If you don't know this process, call us!

2. You must "close" the transaction by June 30th. This means you must own the home by this date. There will be many closings the last week of June and it may be a good idea to try to close your purchase prior to the last week of June for several reasons.

If you have been casually or seriously looking at property and want to take advantage of the credit, we can help you make educated decisions now. You may also want to revisit several of the basic facts about the first time homebuyer credit HERE.

Burn your tax credit on this affordable two bedrooms, two bathrooms condo in Ravenswood for $259,900

4847 N Wolcott, now $259,900

April is upon us and it's tax credit crunch time... so excuse the advertisement. However, my clients just reduced the price of a two bedroom, two bath garden unit with full size windows and industrial sump pump system by top notch plumbing contractor Power Plumbing. $259,900 is a great price point to take advantage of the first time buyer's credit and low interest rates. You'll be looking at a low monthly payment in a great location.

Live steps from the Ravenswood Metra stop... the preferred way to travel downtown or to the suburbs.

Don't settle for a small condo at this price point. You will be surprised by the layout, size and comfort level of this home.

Details on filing first time buyer's tax credit

I just bought this condo... now show me the money.

Here's a good article linked below on the first time buyer's tax credit. The IRS is issuing updated guidelines and information later this month. Kennth R. Harney reports IRS suggests waiting a little while before making tax credit requests.Wait to claim that tax credit

Chicago home sellers should understand buyer's tax credit

Home sellers should take advantage of the first time buyer's tax credit extension.

My number one goal this November and December is to reach out and touch every past client and future client and make them aware of one thing (at least): If you're going to sell your home next year, try to be on the market January 2nd, 2010. Or now!

I was just at a wedding where some guests told me they took their under $300K condo unit off the market in September this year after only 3 months on the market...September! We just had one of the most active third quarters in real estate since forever helped by the original first time buyer credit deadline of November 30th... and they were getting a ton of showings. Despite some understandable reasons, they blew the best time to be on the market...at the deadline when people could come back to make a decision.

Don't let this happen to you. If you do not get your place ready and on the market as soon as possible, the new April 30th deadline will come and go before your Holiday Hangover subsides. I'll have more details in upcoming posts, but email/call with questions on how to get your place going. Take a shot!

Slackers rejoice! Home buyer's credit extended, expanded

If you procrastinated your way out of this season's home buyer's credit, Congress forgives you.

You may now procrastinate until April 30th, 2010. We'll, to be safe you better get that contract signed by March 15th. My team will be here waiting for you to call for showings...on March 1st.

Check out this side by side comparison of the main components in the

Home Buyer Tax Credit (click the link)

Another first time buyer tax credit update

RWF Mortgage loan officer Ken Dickerson sent a brief blurb regarding the state of the $8000 tax credit extension. Email Ken at Kenneth.B.Dickerson@rwfmortgage.com

Vote on Extending Homebuyer Tax Credit Delayed Over TARP Issue
Bloomberg, By Brian Faler and Ryan J. Donmoyer

October 30, 2009

The U.S. Senate won’t vote until next week at the earliest on proposals to extend both an $8,000 tax credit for first-time homebuyers and unemployment benefits for the nation’s jobless.
Senate action was delayed by a Republican demand that a vote be allowed on an amendment to end the Treasury Department’s Troubled Asset Relief Program at the end of this year.

Senate Majority Leader Harry Reid, a Nevada Democrat, balked yesterday at the demand by Senate Minority Leader Mitch McConnell, a Kentucky Republican. Reid also took procedural steps to end debate and schedule Senate action on extending the homebuyer tax credit and the unemployment benefits.

Lawmakers announced plans earlier this week to attach the tax-credit proposal to a pending bill on the unemployment benefits. The $8,000 tax credit, enacted earlier this year as part of the $787 billion economic stimulus package, is set to expire at the end of November.

The lawmakers want to extend it until April 30. Their proposal would also expand it to allow higher-income Americans and some who already own homes to qualify for the break.

Homebuyers who have lived in their prior residences for at least five years may receive a $6,500 credit under the plan, said Senate Finance Committee Chairman Max Baucus. Also, couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extended break, Baucus said. That’s up from a $75,000 limit for individuals and $150,000 for couples.

CNN, Wall Street Journal...Senate closer, agrees to extend home buyer credits

Let's buy two!

I was watching CNN from my home office (kitchen) and they have reported this afternoon on a Senate "tentative agreement" to extend and even expand the first time home buyer's credit through June/July of 2010.

Read the Wall Street Journal report here

The $8,000 will remain for "first time buyers" and we may even see $6,500 for "second time buyers" (I'm still out).

Congress will have to vote of course, but I can't see them denying something tangible to their constituents. The credit has been given "credit" for moving housing, which is important to John Q. Public.

"Just say no" to first time buyer's tax credit extension

I don't think we'll see an extension of the first time buyer's tax credit. Although popular among active buyers, I don't think its a difference maker. I'd like to see all these select incentives go away and let things get back to normal for everyone.

From the Wall Street Journal, Cost concerns surface over home buyer credit.

CNNMoney.com says time is running out on $8,000 first-time buyer's tax credit

Is the first-time buyer's tax credit out of reach? Wake up Chicago!

Nice little news story by CNNmoney.com concerning the first time buyer's $8,000 tax credit sent to me by our Rubloff news feed (we may be working on a widget for our news feed that I can post on the site).


From the story:
"What they (buyers) will find may surprise them: Many of the prime properties have already been snapped up. Home sales have been on the upswing, and inventories are so depleted in hot markets that first-time buyers are struggling to find homes in their price range."

But we already knew this, didn't we?

Rejoice! Federal Tax Credit for all home-buyers possible

Why is he so happy? His parents may get to buy a bigger bathtub next year with a little help from Uncle Sam.

As suspected, real estate writer Kenneth R. Harney scoops there is a serious chance the federal $8,000 first time buyers credit will be extended.

But wait, there's more!

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.

Quote Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

Biting the hand that feeds me: Federal first-time-buyer tax credit unfair?

Stretch for this kitchen...it's on me!

I read an interesting column at Inman News that could be applied to any tax incentive. Columnist Marcie Geffner gives a bite-size shake down of the sham first-time-buyer's tax credit dished by our Federal government. I agree with her points that current home-owners are basically paying for past risk and the credit distorts current home prices to an extent. The unfairness tag can be applied to any tax credit. We get ourselves so tangled up in qualifying for tax credits... but one way or another, we pay for some other incentives offered by Uncle Sam. Geez.

I've mentioned in past posts here that my clients (and buyers viewing my homes for sale) are very aware of the tax credit deadline. I benefit from these motivated buyers. But, I'd be okay with flattening the tax code in general and firing my accountant!

Time is running out on $8,000 First Time Buyer Tax Credit

Don't let the tax credit ride off without you!

The $8,000 First Time Buyers' Federal Tax Credit is on all my clients' minds and has been a topic of discussion for those viewing my homes for sale. Like students crowding the library at mid-terms, buyers are cramming the streets trying to find a home before the November 30th 2009 deadline. That means having an accepted contract by September 30th to be safe.

There are plenty of stories in the paper and on the web describing a spike in home buying activity. August is usually hot and slow. But folks seem to be buying the notion prices are leveling (especially in top tier neighborhoods like Lakeview, Lincoln Square, Lincoln Park, Old Town, Ravenswood etc...) and want to make a move now and take advantage of the tax credit, good prices and low mortgage interest rates.

I was showing one of my listings in Ravenswood today and the buyer's agent told me several units she had scheduled had gone under contract... I have bad news for her on my listing (a contract just came in at the time of writing).

Buyer Incentives and Tax Credits

IAR President Pat Callan speaks Incentives and Tax credits


I recently sent this YouTube video to all my prospective home buyers. The video is a excellent tool that describes all the current incentives and tax credits recently passed in American Recovery and Reinvestment Act. The video is broken down into three parts. It covers the revised $8,000 dollar 1st time home buyer tax credit, the increase in FHA loan limits and ends describing energy efficient and weatherizing tax credits for home owners.

At first, it looks like an Al Franken "Stuart Smalley" skit from SNL. But, they're serious.


See the Video Here

$15,000 Tax Credit for All Home Buyers?

Earlier today, a client of mine who happens to be a commercial real estate attorney, sent me this update. It's from a group called Fix Housing First

"Isakson Amendment Passed!!Thanks to all of you who weighed in, the Isakson amendment - which provides a tax credit of up to 15,000 to all home buyers - passed by voice vote in the Senate last night with bi-partisan support; it will now be part of the final Senate bill. Truly your voice made a difference.
This is an important victory but our work is not done. Other amendments are expected to be offered today which embody parts of the Fix Housing First plan and we need to support those as well. The plan is to have a bill on the President's desk by February 13, so our efforts this week will be concentrated on the Senate and next week on the conference committee process.

Today Senator Ensign (R-NV) will offer what he is calling the "Fix Housing First Act" (amendment #353) which is much broader than our agenda but does include a mortgage rate buy down program which could lower mortgage rates to as low as 4%. While the plan is not exactly what we have been advocating for, it is another step in the right direction. So please urge your Senators to support the amendment - particularly its rate buy down provisions."

This is a huge jump from the existing $7,500 tax "credit" that applied to first time buyers (and those who have not owned for the past three years). The credit was actually paid back in $500.00 increments each tax year.

Ask your Chicago Lender how this credit would help your ability to purchase a home.

$7,500 Tax Credit for Chicago First Time Home Buyers

Photo by ickyfingerz

Okay, the Federal Tax Credit applies to all first time buyers... not just Chicagoans. But, I need the key words in my title.

The Chicago Association of Realtors has put together a hand-out you can view by clicking this link.

You need to know that the credit is not permanent. The $7,500.00 deduction, if taken, is paid back interest free on your tax returns over a 15 year period. However, if you put together the current lower purchase prices, current low interest rates and the tax credit; you're looking at a nice incentive package to purchase a home.