Tax credit

Looks like The California 1st Time Home Buyer Tax Credit Has Been Exhausted

August 8, 2010 By Ted Mackel Leave a Comment

(Aug 6th) From the Franchise Tax Board’s Website – California 1st time home buyers are being notified that the hundred million dollars allocated for tax credits is most likely already exhausted. The plan was to accept some 28,000 applications before the cutoff. There been over 31,000 applications submitted and the Franchise Tax Board has determined that it will continue to accept applications up through August 15, 2010. It is most likely that those who apply between now and August 15 will have a very slim chance of qualifying for the tax credit. The concern was that in the initial applications received there were many duplicates and inaccurate applications. Also any applications submitted 14 or more days after close escrow were being rejected.

Filed Under: Real Estate News Tagged With: California, first time home buyer, Home Buyer, Tax credit

Are Tax Credits Luring Simi Valley Home Buyers in a Cash for Clunkers Scheme?

April 11, 2010 By Ted Mackel Leave a Comment

Federal and California tax credits were created to lure home buyers into the market. Simi Valley home buyers have a small window of opportunity to take advantage of both tax credits and double-dip the system. The federal first-time home buyer tax credit of $8000 is set to expire April 30. More specifically, home buyers qualify for this program will need to have a house under contract by April 30, 2010. They will need to have escrow close prior to June 30, 2010. At the same time, starting May 1, 2010 any escrows closing prior to June 30 will qualify for the California first-time home buyer tax credit of $10,000. While this credit is good through December 31st, 2010. The opportunity to double dip the system needs take place before June 30.

My main concern with these home buyer tax credit programs is that Simi Valley home buyers (especially low down payment buyers) will rush to purchase a house and end up chasing a tax credit cash for a clunker. Many of the properties for sale in Simi Valley currently are short sales and foreclosures. These properties typically have significant amounts of deferred maintenance and repair issues. Many times the repairs needed to restore these properties will far exceed any monies gained in tax credits. Keep in mind, at the California tax credit is spread out over three years and not given all at once.

My second concern is that these tax credits are really not creating any additional interest in the market. In fact Simi Valley home sales volume and average home prices have dropped every month since December 2009. I believe that the attractive affordability and low interest rates are driving the market currently and that sales would not suffer much if at all if the tax credits were to go away.

Those Simi Valley home buyers concerned that they may be missing a market can step back, relax and breathe a sigh of relief as the market is certainly near or at the bottom and will be for a long time before the market breaks through and start pushing out to a real recovery.

If you are a Simi Valley home buyer there is limited time to be able take advantage of the double-dip but don’t get caught up in a frenzy and end up with a property that will cost far more to fix up and what you will gain tax credit.

If you are a Simi Valley home seller, if your home is been on the market for a while and has not received any offers, now is the time to review your pricing strategies compared to other homes on the market that compete with your home and the homes that have sold in the last 120 days that compete with your home and adjust your pricing to bring a buyer before April 30.

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Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty

Ted Mackel is a top producer at Keller Williams Realty Simi Valley,

specializing in Simi Valley Real Estate

(805) 432-7705

Filed Under: Market Updates Tagged With: California, Cash for Clunkers, Federal, Home Buyers, Home Sellers, Simi Valley, Tax credit

Simi Valley Home Buyers – Tax Credit Waiting for Obama

November 5, 2009 By Ted Mackel 3 Comments

That’s right Simi Valley home buyers, the tax credit is waiting for Obama’s signature. The tax credit legislation passed the House today in a 403 to 12 vote. The Senate vote was 98 to zero. This time around there a few additions, these are pointed out in my video blog below. One thing I did not cover was the income limitations which have been raised to $125,000 for single buyers and $225,000 for couples, from the prior limits of $75,000 and $150,000, respectively. To curb any abuse of those claiming the credit, the claimants must attach proof of purchase to their tax return.

Thanks for reading Simi Valley’s Premiere Real Estate Blog!
Author – Ted Mackel Simi Valley Real Estate Agent – Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

Filed Under: Buyers, Real Estate News, Sellers Tagged With: Home Buyers, Obama, Simi Valley, Tax credit

Update on Extending the First Time Home Buyers Tax Credit

October 8, 2009 By Ted Mackel 1 Comment

Update on Extending the First Time Home Buyers Tax Credit

The First Time Home Buyers Tax Credit is set to expire on November 30th. The reality of this deadline means that the buyers out now need to get a home in escrow by the 20th of October. The Thanksgiving Holiday will add days to any escrow with financing, so a typical 30 day escrow may not be enough time to close before the deadline.

There has been much talk about extending the deadline for another year and more likely six months. All that has happened to this point is that the House has passed a bill to extend the credit for Service Men and Women who are overseas for the next year. This bill is expected to pass through the Senate. The question remains: will the Tax Credit will be extended for all first time home buyers?

My hunch is that Congress may take a wait and see approach through the first quarter of 2010. If sales slow, the credit most likely will come back. Right now the big winners on this are the home sellers. The price range of homes that have been impacted the most by this credit are the entry level homes and we have seen those home prices in Simi Valley rise by as much as $12,000.00. The increased competition among buyers has caused may first time home buyers “settle” for homes with serious deferred maintenance, termite issues, inferior floor-plans, and inferior locations. If come December 1st the tax credit is not renewed for everyone, I suspect many buyer will be much more patient and pickier over the low inventory offerings.

Filed Under: Buyers, Real Estate News, Sellers Tagged With: first time buyers, Simi Valley, Tax credit

1st Time Home Buyer Tax Credits Explained for Simi Valley Home Buyers

March 25, 2009 By Ted Mackel 2 Comments

1st Time Home Buyer Tax Credits Explained for Simi Valley Home Buyers

The Details are out!!!

1. There are income limitations for the purchasers, $75,000 for an individual or $150,000 for a couple. Partial credits may be available if you exceed the maximum income limits.

2. The Tax credit is for 10% of the home’s value, up to $8,000. And, it may be used to buy a new, resale or foreclosed home.

3. You must be a first time home buyer. By definition, this means you (and your spouse, if buying jointly) must not have been a home owner for the past 3 years

4. Must buy a home before 12-1-09.

5. Borrower can claim this credit on their ’08 or ’09 return. WOW!

6. If you already filed your 2008 return, you can amend that return.

As always please verify this information with a tax professional.

There is a correction to this article. December 1st is the deadline. Thank you to a reader for pointing that out!

Filed Under: Buyers, Money matters Tagged With: Home Buyers, Simi Valley, Tax credit