an ongoing conversation place for everything real estate

Congress has extended the expansion of the $8,000 tax credit until next June 30 replacing the old deadline of November 30^th.

But here’s something in the expanded program that hasn’t gotten much attention: The new $6,500 federal tax credit for so-called “move up” buyers took effect immediately upon enactment.

That means that potentially hundreds of thousands of Americans who fit the key ownership and income criteria for the new credit are eligible for it … right now.

What are those tests?

• You have to have owned and used your current home as your principal residence for five consecutive years out the past eight.
• Your adjusted household annual income cannot exceed $125,000 if you file taxes as a single, or $225,000 if you are married filing jointly.
• You must sign a contract to purchase a replacement residence before next April 30, and go to closing on it by June 30, 2010.

Although the $6,500 feature has been labeled the “move up” credit, there is nothing in the law forcing anybody to buy a bigger or costlier house. You can downsize or upsize and still get the credit.

This new condition or, rather lack thereof, not only will stimulate more activity in the market but it just may help families choose the most appropriate price range for their families budget, which is better for everyone in the long run.

If you would like more information about how the tax credit can help you in your next home purchase email bill.swanson@cbshome.com.

Let’s face it, we are continually looking for ways to lower our monthly costs, but don’t want to risk lowering our insurance coverage at the same time.  When searching for homeowners insurance, here are a few things to consider.

Effective Ways to Lower Your Insurance Premium, Without Lowering Your Coverage.

What you pay for homeowners insurance depends on age, location, type of residence, proximity to a fire department, the deductible amount and scope of coverage.  Here are some tips to help loosen the squeeze on your wallet while still receiving the best coverage to meet your needs.

• Check out online resources.  Go to the Department of Insurance website for your state to make an educated comparison of various insurance companies.  For Nebraska the website is- www.doi.ne.gov.
• Compare quotes from at least three different insurance companies to determine which one has the best coverage and premium.
• Consider using one insurer for all your needs.  Some companies offer a multiple policy discount if you buy auto, life and health insurance policies from them as well.
• Consider a higher deductible.  Increasing your deductible by just a few hundred dollars can make a big difference in your premium.
• Check for government-backed rates.  Some areas at high risk for natural disasters offer government-backed loans with lower rates.
• Check to see if you belong to any groups or organizations that can get you a lower rate.  Common examples include alumni associations and service clubs.

Are You Covered?

Make sure you are.  Create a home inventory.

• Everything counts- make a home inventory and include any item of value.  Don’t forget to document toys, contents of your closets, and anything in your kitchen cabinets.
• Get  organized- record serial numbers and keep receipts in a safe place.
• Schedule a photo shoot- take pictures of rooms and large or important items.  On the back of the photo, make a note of what is shown, its value, and any serial numbers.
• Consider extra coverage- if you have expensive items (such as jewelry), fine art, or rare antique collections, you may want extra coverage.
• Move it- conduct an inventory when you move.  As you pack, take photos and note the serial numbers.  This way you have more detailed information in case something is lost or damaged during the move.
• Keep duplicates- make a copy of your inventory and keep it in a fire-proof safe, and keep an extra copy away from the home (such as a safe deposit box).
• Create a Digital Inventory- There are several software packages online with home inventory features.  We personally like:  www.knowyourstuff.org

Please keep Craig & Jill in mind for all of your real estate needs.  402.697.4161  We are the professionals to count on!

Information courtesy of: Buffini and Company.

Time is running out for homebuyers, who must close by November 30, 2009. The government’s $8,000 tax credit for first-time homebuyers has been extremely successful, but time is running out to capitalize on this unique opportunity.

The tax credit, available for first-time homebuyers, as well as to individuals who have not owned a principal residence in the 3-year period prior to purchase, expires November 30, 2009. That means that home loans closed past that date will not qualify.

Since it generally takes a couple of weeks to negotiate a purchase, then 30 to 45 days to close on a loan – with more stringent appraisal and disclosure requirements adding more time to the closing process – it is crucial that those wanting to take advantage of the incentive realistically select a home by mid-October to meet the deadline.

“This incentive has brought the dream of homeownership to literally thousands of individuals and families,” said Ron Peltier, chairman and CEO of HomeServices of America, “but time is running out, and there are not guarantees at this point that congress will extend the program.”

“New homeowners have accounted for approximately one-third of recent home purchases,” adds Larry Melichar, CEO and President of CBSHOME Real Estate, “so clearly the program has been wildly successful. But like all good things, there is an end, so don’t miss a chance to take advantage of this once-in-a-lifetime opportunity.”

The tax credit is available for homes purchased before December 1, 2009. Single-family, townhomes, or condominiums qualify for the tax credit, provided that the home is used as the principal residence. This also includes new construction homes if occupied by December 1, 2009. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

This new tax credit can help ease the transition and help cover the new expenses that come with home ownership. The tax credit does not have to be repaid, as long as buyers stay in their new home for at least three years after purchase. IRS Form 5405 gives all the details and as always, consult with your personal tax advisor.

For more information, contact CBSHOME Real Estate at 402-964-4600 or www.cbshome.com.

About HomeServices of America: HomeServices of America, Inc. based in Minneapolis, Minn., is the second-largest homeownership service provider in the United States. Owned by MidAmerican Energy Holdings Company, an affiliate of Berkshire Hathaway Inc., HomeServices’ operating companies offer integrated real estate services, including brokerage services, mortgage originations, title and closing services, property and casualty insurance, home warranties and other homeownership services. HomeServices Relocation, LLC is the full-service relocation arm of HomeServices of America which provides every aspect of domestic and international relocation to corporations around the world. HomeServices operates in 20 states under the following residential real estate brand names: Carol Jones REALTORS; CBSHOME Real Estate; Champion Realty Inc.; Edina Realty; EWM REALTORS; Harry Norman, REALTORS; HOME Real Estate; Huff Realty; Iowa Realty; Koenig & Strey GMAC Real Estate; Long Companies; Prudential California Realty; Prudential Carolinas Realty; Prudential First Realty; Prudential York Simpson Underwood Realty; RealtySouth; Rector-Hayden REALTORS; Reece & Nichols; Roberts Brothers Inc.; Semonin REALTORS and Woods Bros. Realty. Information about HomeServices and the locations of its subsidiary companies is available at www.homeservices.com.