Intown Atlanta Real Estate News
ABCs For Buying Your First Home
Thursday, December 17, 2009
You know the benefits of owning your home. You know the government is begging you to buy and are willing to put their (your) money in your pocket as a reward for buying. You know that your lease expires soon or you are willing to pay whatever penalty is necessary to terminate your lease early so you can get in on the best time in over 50 years to buy… Now what?
A. Define The Parameters
1) Meet with a lender who has been recommended by people you trust and have them pull your credit report and extract all needed data about your job, your income, your expenses, etc. so they can tell you the appropriate, maximum price range you should pay for your new home.
2) Meet with a REALTOR who has been recommended by people you trust have talk with them about the type home you’re looking for. Do you want to have a yard that will require upkeep? Or would you rather be able to lock and leave at a moments notice…so yard maintenance is a ‘no go’? (Do you like particular styles of homes?, etc.) What part of town would be most advantageous for you? Proximity to work, other family members or friends, or a particular school, or place of worship is a critical consideration for most of us! But please note that while you can describe your dream home can you afford it? See step 1!
3) Then go onto our website and play! From there you can look at all types of properties which will help meld your desires and ability. Once you have an idea of the price range, area, type, and style home, we can set our system up to automatically send you listings that match your parameters whenever those properties become available!
B. Got Out And Search
If you are working with a good real estate agent who listens and endeavors to find you what you want and need, the home buying process should be relatively quick and painless. A good agent will preview homes and show you only what meets your parameters (as long as your parameters are relative to the market).
Back in the “good old days” we suggested you physically inspect/look at, a minimum of 20 properties before making a buying decision. We felt that was necessary for you to learn what your money should buy you. However, today, with the ability to view properties from the comfort of your home or office, we feel you should physically inspect/look at, anywhere from five to ten properties to learn the marketplace. Then it is just a matter of finding the property you feel best suits your needs.
We find that a motivated buyer can find their home in one -to- two days.
C. Selecting “The One”
Have you ever watched the news when they are reporting on stores that are offering wedding dresses for 75% off? Did you notice the mayhem?
Then and now, when buying your home - when you see what you want, grab it! Some times you’ll know when you drive up to the curb. Some times it takes going inside and feeling the vibes…other times it is a matter of elimination.
But let me tell you a secret - a good agent will oftentimes know which property you will select before you’ve seen it. Some call it intuition…others call it luck…and others acknowledge it comes from listening closely to the buyer and understanding what they truly want, and then allowing the buyer to find the home without interference from their agent.
When you go out to view properties with your REALTOR, we suggest you take copious notes and consider taking photographs when allowed. (Some owners do not want strangers taking photos of their home until a contract has been negotiated.) My favorite way to select a property is the ‘matter of elimination’ where you compare two homes and eliminate one. And when you eliminate it, you leave photos, brochures, etc of the eliminated property behind when you go home because you eliminated it when everything was fresh! No need to go back and rehash! Then when you go to property # 3, you compare it with the winner between property # 1 and # 2 and so on.
In any event, when you decide which home feels right, don’t wait. It is very disheartening to get geared up for a property only to find out it went under contract a few hours before you submitted an offer. We have seen this scenario play out too many times. Learn from others’ mistakes!
- Scott Askew
Posted in: Intown Atlanta Real Estate News
Be Sure to File your Homestead Exemption by March 1, 2010
Tuesday, December 15, 2009
What is the Homestead Exemption?
All Georgia counties give homeowners an opportunity to file for a homestead tax exemption on their primary residence. To receive the homestead exemption for 2010, the homeowner must have owned the property on January 1st, 2010 and filed the homestead application by March 1st. You only apply for the Homestead Exemption once; yet it is good for as long as you keep the property as your primary residence.
If you have purchased a home during 2009 or before, this is a great time to file for the exemption! (You can file now for the 2010 credit.)
Counties generally allow homestead exemption applications by mail. You may receive a form in the mail automatically. If not, some counties allow you to download a form from its website. If you find you need to apply in person, you should take a copy of your warranty deed (if you do not have the deed call the real estate attorney’s office who handled your closing), a picture ID, your social security number, and your automobile tag number/vehicle registration. But do not wait for the County to contact you!. It is not the County’s responsibility to remind you to file. Afterall, a tax savings for you costs the County money, so they are not going to wave red flags and beg you to apply!
For more information, contact the appropriate County office:
Fulton County Dekalb County
404-730-6440 404-298-4000
www.co.fulton.ga.us www.co.dekalb.ga.us
Address: Address:
141 Pryor St, Suite 1047B, Atlanta 4380 Memorial Dr, Ste 100, Decatur
7741 Roswell Rd, Suite 234B, Atlanta 1358 Dresden Drive, Atlanta
5600 Stonewall Tell Rd, Ste 224, College Park
Cobb County Gwinnett County
770-528-8600 770-822-8800
www.cobbtax.org www.co.gwinnett.ga.us
Address: Address:
736 Whitlock Avenue, Suite 100, Marietta 75 Langley Drive, Lawrenceville
- Scott Askew
Posted in: Intown Atlanta Real Estate News
Frequently Asked Questions Concerning The 2009/2010 Federal Homebuyer Tax Credit
Thursday, December 03, 2009
Here are some of the more frequently asked questions
concerning the 2009 / 2010 Federal Homebuyer Tax Credit
Question: How much is the credit?
Answer: Up to $8,000 for first time Buyers ($4,000 if married and filing separately), with a $75,000 income limit for a single person and $150,000 for a married couple. For a ‘repeat Buyer’ the credit is up to $6,500 ($3,250 if married and filing separately). Additionally, the income limit is $125,000 for a single person and $225,000 for a married couple. For both, there is a $20,000 ‘phase-out’.
Question: I am an existing homeowner and am looking to move soon. Must the home I buy cost more than the old home I will be selling?
Answer: No.
Question: I am a first time homebuyer waiting to close on the purchase of my home. This year, my income is lower than the income limits set forth in the Tax Credit Bill. We will close by the end of November 2009. However, I just got a new job and my income for 2010 will exceed the income limits stated in the Bill. Am I still eligible for the credit?
Answer: Yes. The income limit and other eligibility rules will look to your status as of the Closing Date. So you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).
Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home where the Seller will not agree to a price lower than $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago and have been renting since. If I buy now, will I be eligible for the $6500 tax credit if I meet the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2007 when they got a divorce. It would not matter if John has been renting since the divorce; he would be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive”.
Question: I am an eligible first time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Since the ‘new’ legislation is in effect, it is as if the previous, November 30 cut-off date never existed. So as long as the contract closes before April 30 (or July 1, worst case), you will be eligible for the credit.
- Scott Askew
Posted in: Intown Atlanta Real Estate News
2009/2010 Expanded Home Buyer Tax Credit
Thursday, November 12, 2009
Here are four major points you need to know about the 2009/2010 Federal Home Buyer Tax Credit:
1. For first-time home buyers: The credit can go as high as $8,000 for qualified, first-time home buyers. (The legislation defines “first-time home buyer” as anyone who has not owned a principal residence in the three years prior to making the purchase.) Home buyers must have a fully executed, binding, Purchase and Sales Agreement, before May 1, 2010, but you have until June 30th to actually close the transaction. The annual income limit is $125,000 for singles and $225,000 for married couples.
2. For current home owners: Most current homeowners are eligible for a tax credit of up to $6,500 when you purchase your next primary residence. Current homeowners must have lived in their home for five consecutive years over the previous eight to be eligible. Qualified home buyers can obtain the credit on homes purchased between November 7, 2009 and June 30, 2010. ( Just like the provision for first-time buyers, you must have a fully executed, binding, Purchase and Sales Agreement, before May 1, 2010 and close no later than June 30, 2010.) The income limits for current homeowners are the same as those for first-time home buyers.
3. Classification of Property and Purchase Price limitation: The credit can only be claimed on primary residences purchased for less than $800,000. And as long as you use the property as your primary residence for three or more years after the purchase, buyers don’t have to pay the credit back. If you do sell before the third anniversary of your purchase, the entire credit must be ‘paid back’ to Uncle Sam.
4. How To Obtain The Credit: Anyone claiming the credit must provide documentation, such as a copy of your HUD-1 Settlement Statement, to prove that the sale has closed. A big bonus is buyers can claim the credit on their 2009 taxes, even if the purchase was made in 2010 by filing an amended return!
Do you think this is a good use of your tax dollars? Weigh in! - Scott Askew
Posted in: Intown Atlanta Real Estate News
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