Realestatelicense.com has created this blog to keep you informed on recent real estate news, views, and topics. Real estate is a very dynamic field. Everyday there's something new and exciting happening in the world of real estate. Use this blog to stay on top of current real estate events, news, and views and support your real estate license and career. As a licensed real estate professional, you need to know this information.
Congress passed legislation that provides a tax credit of up to $8,000 for individuals purchasing their first home. Help spread the word - get your online real estate license and begin a rewarding career where you make a difference.
As a licensed real estate salesperson, here's what you need to know in order to help first time buyers take advantage of this exciting opportunity:
-Your client must purchase a home sometime between January 1, 2009 and December 1, 2009
-The buyer or his/her spouse may not have owned a residence for at least three years prior to buying the home
-The maximum amount of tax credit given to those who qualify is $8,000
-There are two main factors involved in determining the total for each buyer: the price of the home and the annual income of the purchaser
-While the credit will be equivalent to 10% of the purchase price of the home, up to $8,000, single buyers who make $75,000 or less, as well as married couples who earn up to $150,000, are eligible to receive the most credit
-If a buyer's income surpasses these limits, but does not exceed the maximum, they may still qualify. The credit amount decreases for single buyers who bring in between $75,000 and $95,000, and for buyers filing jointly who gross between $150,000 and $170,000 per year. (Those with incomes that exceed $95,000 for singles and $170,000 for couples are not eligible for the tax credit.)
-Buyers who occupy the home for a period of at least three years are not required to repay the tax credit and, since it is fully reimbursable, can get their credit returned to them in the form of a payment
With the recent announcement of the eagerly anticipated guidance from the U.S. Department of Housing and Urban Development (HUD), there is even more positive news for first-time buyers. FHA-approved lenders have been given the okay to begin the development of bridge-loan products which will make it feasible to use the benefits of the federal tax credit upfront. Home buyers can use these loans to help cover closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
First time home buyers are often unaware that these programs exist. Obtain your real estate license, educate first time buyers and transform them from renters to proud home owners - a dream they may have never thought possible.
Labels: home buyer, real estate license, real estate salesperson
If you're in the process of buying or selling a home, you should consider including a home warranty. A home warranty covers the repair and replacement costs for appliances and other systems that break down in the home. It can be purchased by either a home buyer or current homeowner, and is often paid for at closing.
How it helps sellers?A home warranty makes a seller's home more attractive to potential buyers, especially if the home includes appliances and other items that are older. A warranty might give the seller an advantage over another home that is similarly priced and desirable to the buyer. A warranty can assure the buyer that they will be covered if something stops working after the closing. The price of a home warranty is minimal. Typically the warranty is paid for at closing so the sellers will not have to pay anything out-of-pocket until the home sells.
How it helps buyers?A home warranty can give buyers peace of mind. These individuals have just made a major purchase and oftentimes are strapped for cash. Facing unexpected repairs down the road can be a burden. A warranty can alleviate that worry. Oftentimes a seller will include the warranty as part of the purchase price; or the buyer can get one on their own. Or, they can arrange to split the cost with the seller. A home warranty can help protect the buyers from the costs of major repairs.
Facts about Home Warranties?Most home warranty policies are effective for one year from the date of purchase. They come with an option to renew coverage upon expiration, but be aware that the renewal cost is often higher than the fee paid for the initial policy. Standard coverage can differ quite a bit by provider, so do your homework. Many standard home warranties cover plumbing, appliances, and heating and cooling systems. Some policies will also cover the roof. Typically you will have to buy extra coverage for high ticket items, such as private wells and septic systems.
Labels: home buyer, home warranty, Real Estate, seller