In our effort to provide the best information for you below we have embedded a video from NAHB. This is one of the best presentations of the 2009 First Time Homebuyer Tax credit that we have seen. We hope you will watch and learn…then for help with your first home contact us at 757-285-6416 or simply log on to www.byrdrealtygroup.com and start searching for homes online through our portal into the MLS. The most up-to-date real estate information on the web! See you soon.
Bill Byrd
$8000 tax credit 1st time home buyer homebuyer tax credit Tax Credit
Buy what you want now! Once the bottom comes you won’t know it until a few months later once indicators confirm the bottom was earlier. People miss the turn every time whether it is in the stock market or the real estate market. Once you realize the market has turned so will everyone else and you will then be fighting with all of the other people that came back in late for the deals that will have disappeared!
Why not save yourself the headache and jump in now without the frenzied competition while taking advantage of a large inventory and historic low interest rates. It is a “Buyers Market” isn’t it!
Check out the deal’s…the Virginia Beach REO market is full of properties just waiting for investors like you!
Search for homes at www.byrdrealtygroup.com and call the Byrd Realty Group at Keller Williams Realty Town Center 757-285-6416…the best REO and resale team in Virginia Beach Real Estate!
Timing the Market Virginia Beach REOOn Tuesday, February 17th, President Obama signed H.R. 1, the “American Recovery and Reinvestment Act of 2009” which previously passed both houses of the US Congress (after going back and forth for several weeks). You may have heard about several versions of the housing related components of the bill. The final version includes:
- An $8000 tax credit for first-time home buyers, which does not have to be repaid
- Reinstates 2008 loan limits for FHA, Freddie Mac, and Fannie Mae (equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750)
- $2 billion in Neighborhood Stabilization funding to help states and localities to purchase, manage, repair and resell foreclosed and abandoned properties
- Funding for energy programs, which could be used to support property owners’ investment in energy efficiency upgrades
With the most interesting and helpful to first-time home buyers being the $8,000 tax credit. This is a modification of the existing $7,500 tax credit with the biggest changing being the fact that you no longer have to pay it back. Here is a full comparison:
FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Bolded
February 2009
| FEATURE | CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 | REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
| Amount of Credit | Lesser of 10 percent of cost of home or $7500 | Maximum credit amount increased to $8000 |
| Eligible Property | Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. | No change All principal residences eligible. |
| Refundable | Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. | No change Purchasers will continue to receive refund for unused amount when tax return is filed. |
| Income Limit | Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). | No change Same income limits continue to apply. |
| First-time Homebuyer Only | Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. | No change Still available for first-time purchasers only. Three-year rule continues to apply. |
| Revenue Bond Financing | No credit allowed if home financed with state/local bond funding. | Purchasers who utilize revenue bond financing can use credit. |
| Repayment | Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. | No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
| Recapture | If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. | If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
| Termination | July 1, 2009 (But note program changes for 2009) |
December 1, 2009 |
| Effective Date | Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. | All revisions are effective as of January 1, 2009 |
You can download this information for the National Association of Realtors as a slide deck in PDF format (300K) (explaining the details of the 2009 first time home buyers credit) or one-page chart (300K PDF) (explaining the difference between the 2008 and 2009 versions of the first time home buyers credits).
This is a nice incentive for first-time buyers, and the fact that it is both refundable and does not have to be repaid is a significant improvement over the existing “credit” (which was basically a zero interest loan). To find out more and ways you can benefit from this new incentive, contact the Byrd Realty Group today. www.ByrdRealtyGroup.com We would be happy to set-up a meeting to explain how you can maximize your benefits from this credit and other government incentives.
As a side-note from the housing related components, Virginia also stands to receive:
- $695 million for roads and bridges
- $116 million for rail projects
- $2 billion for school construction
Disclosure:
The Byrd Realty Group www.ByrdRealtyGroup.com is a group of Realtors and are not tax professionals. You should seek advice from a CPA or professional tax preparer.
Sources:
Buying Real Estate First Time Home Buyer Stimulus Tax CreditAs of February 22nd 2009 the Virginia Beach REO real estate market is seeing signs of significant improvement. This could be a very healthy change for our market overall and a possible leading indicator of an overall improvement in our real estate market!
Virginia Beach today hasa total of 129 REO and Bank Owned listings currently on the market. Also…in the Virginia Beach REO real estate market we had 44 REO and Bank Owned Homes sell in the last 30 days giving us an absorption rate of 2.93months of REO and Bank Owned Homes for sale in our market. That is down from 4.64 months in December! Also in the last 30 days we had 32REO and Bank Owned sales close in Virginia Beach averaging 78days on the market. With all of that mentioned…the most important statistic that most consumers want to know…is the list price to sales price ratio for these REO and Bank Owned Homes and that number is 97%! That is an improvement of 2% from December’s number of 95%! Meaning that on average REO and Bank Owned Homes in this market are selling for 97% of their list price! So keep this in mind when you want to make an offer and don’t be surprised by the banks firmness on their list prices because according to the Hampton Roads MLS these homes are selling on average in less than 80 days of their listing date and very close to list price!
Those are the facts from our MLS I’m not making this stuff up!
In conclusion, REO and Bank Owned Homes in the Virginia Beach real estate market are selling well and if your considering buying one do your own market assessment to determine the market value and don’t walk away from a home that may already be priced as a great deal! Call us…we are happy to help or simply sign up to receive automatic REO and Bank Owned homes dropped into your inbox as soon as they hit the market!
For more information on buying or selling real estate check out our main site at www.byrdrealtygroup.com
Bill Byrd
757-285-6416
Byrd Realty Group
Keller Williams Realty Virginia Beach Town Center
Bank Owned Foreclosures REO Virginia BeachVirginia Beach REO Statistics as of 12-4-08
0 Comments Published December 3rd, 2008 in Uncategorized.As of December 4th 2008 the Virginia Beach real estate market had a total of 116 REO and Bank Owned listings currently on the market. Also…in the Virginia Beach real estate market we had 25 REO and Bank Owned Homes sell in the last 30 days giving us an absorption rate of 4.64 months of REO and Bank Owned Homes for sale in our market. Also in the last 30 days we had 29 REO and Bank Owned sales close in Virginia Beach averaging 59 days on the market. With all of that mentioned…the most important statistic that most consumers want to know…is the list price to sales price ratio for these REO and Bank Owned Homes and that number is 95%! Meaning that on average REO and Bank Owned Homes in this market are selling for 95% of their list price! So keep this in mind when you want to make an offer and don’t be surprised by the banks firmness on their list prices because according to the Hampton Roads MLS these homes are selling on average in less than 60 days of their listing date!
How could this be? The banks do their research that’s how! Typically they hire an asset management firm to oversee the process that screens the real estate professionals they hire, orders appraisals and market studies, and hires local repair contractors all to insure the highest net return to the bank. Obviously the system is working as the list price to sale price ratio mentioned above is direct confirmation that this is true. Other statistics that support this are the facts that on the South-side of Hampton Roads we have an absorption rate of consumer owned and listed homes of about 15.5 months as of last week compared to the REO and Bank Owned properties 4.64 months and with and average market time of 80 to 90 days for consumer owned homes compared to 59 days for REO and Bank Owned Homes in the Virginia Beach real estate market! Those are the facts from our MLS I’m not making this stuff up!
In conclusion, REO and Bank Owned Homes in the Virginia Beach real estate market are doing just fine and if your considering buying one do your own market assessment to determine the market value and don’t walk away from a home that may already be priced as a great deal! Call us…we are happy to help or simply sign up to receive automatic REO and Bank Owned homes dropped into your inbox as soon as they hit the market!
Bill Byrd
757-285-6416
Byrd Realty Group
Keller Williams Realty Town Center
Bank Owned REO Virginia Beach Bank Owned Homes Virginia Beach Foreclosures Virginia Beach REO HomesGo get your $7,500 15-year interest free loan from the governmentTax credit offered to new homebuyers Expires June 30, 2009!
- Who is eligible?
- First-time homebuyers or any homebuyers who have not owned a principal residence in the last three years
- How does it work?
- Eligible purchasers can claim the $7,500 credit on their annual tax return form.
· Amount of credit: 10% of cost of home or a maximum of $7,500
- Repayment:
- Two years after the credit is claimed, the homebuyer will have to start paying it back.
- 15 equal annual installments will have to be paid back to the IRS every year.
· 6.67% of the borrowed amount or a maximum of $502
- If home is sold before 15 years, the remainder of the loan will have to be repaid to the IRS upon the sale.
· Part of the liability can be forgiven if the gain on the sale is less than the amount of the loan.
Restrictions:
- Home purchase time limit:
· Homes purchased on or after April 9, 2008 and before July 1, 2009
- Home must be a single family residence (including condos, coops) that will be used as a principal residence.
-
- Home must be located in the
United States. - Home cannot be financed through mortgage revenue bonds.
- Income restriction:
- Home must be located in the
· To qualify for full $7,500 credit, the taxpayer must make no more than. $75,000 for single returnsb. $150,000 for joint returns
· To still qualify for credit but at a lesser amount, the following income caps applya. $95,000 for single returnsb. $170,000 for joint returns For more information on the tax credit:http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdfhttp://www.federalhousingtaxcredit.com/faq.php
This is your gateway into the world of buying a foreclosed or bank owned home in Virginia Beach! Our expert staff and tools can successfully guide you through the process with seamless effort helping you achieve the Dreams and Goals You Want!
Hundreds of REO and Bank Owned Homes are Available in
Virginia Beach REO Listings web site was designed to simplify the process of buying foreclosed or bank owned properties in Tidewater. In this partnership with one of the areas leading real estate teams the Byrd Realty Group at Keller Williams Town Center we have established a formal resource for either the experienced investor or the first time buyer to tap into while navigating the the tricky waters of a “distressed” home purchase.
