Archive for the 'FAQ' Category
FAQ About the Homebuyer Tax Credit
December 16th, 2009 categories: Albemarle County, Charlottesville, Communities, FAQ, Financing, First Time Buyers, Fluvanna County, For Buyers, For Sellers, Info, Lake Monticello, Louisa County, STR Market Info Blitz
This post is part of the Strong Team REALTORS Market Info Blitz. We’re heating up the Winter market by giving you three-months worth of the information you need, November through January. Check out the latest posts in the blitz, here.
Take advantage of the homebuyer tax credit!
We told you about the extension of the homebuyer tax credit as soon as it was extended and expanded back in November. Since then we’ve received a lot of questions from folks looking to buy a home in the Charlottesville area about the homebuyer tax credit and how they might be able to take advantage of it.
We thought it might be a good idea to answer some of the most common questions about the homebuyer tax credit right here, so that anyone interested in it will have a better understanding of how it works. As always, if you have additional questions about the tax credit that might not have been answered in this post, please feel free to contact us, and we’ll be happy to help you.
How much is the first-time homebuyer tax credit worth?
The first-time homebuyer tax credit is $8000. If you are a married couple who files your taxes separately, the tax credit is $4000 each.
Who is considered a “first-time homebuyer?”
In order to be eligible to receive the first-time homebuyer tax credit, you must not have had an interest in a principle residence for 3 years prior to your current purchase.
How much is the tax credit worth for current homeowners?
Current homeowners may receive a $6500 tax credit. If you are a married couple who files your taxes separately, the tax credit is $3250 each.
<Who is considered a “current homeowner?”
In order to qualify as a current homeowner, you must have used the home being sold as a principle residence consecutively for 5 of the previous 8 years.
When does the credit expire?
The credit expires for both first-time homebuyers and current homeowners on April 30th, 2010. In order to take advantage of the credit, you must have a binding contract by midnight on April 30th, and the home must close by July 1, 2010.
Are their limits to eligibility?
Yes. The income limits for eligibility are $125,000 annual income for single persons, and $225,000 annual income for married couples. There is also a limit of $800,000 for the home being purchased.
Is there paperwork
As with any government program, there is some paperwork to be done in order to receive the credit. The IRS has special forms for your purchase, which you can get from your closing attorney or accountant. You will also need to attach to your tax return documentation of the purchase, which will at least include the signed HUD-1 statement from your closing.
Will the government send me a check?
Maybe. When you apply for the credit, it will be applied to your tax bill. That means that if you owe less taxes then the amount of your credit, you will receive a check from the IRS. If the amount of the taxes you owe is more than the credit, it will simply reduce your total tax burden. Some people who took advantage of the tax credit early filed amended 2008 returns, and were able to receive a check, since they had already paid their 2008 taxes.
Are their homes available that will work for me?
Of course! We’ve worked with a number of buyers this year who have taken advantage of the tax credit. There are plenty of homes for sale in Lake Monticello, Charlottesville, and Albemarle that are perfect for people who want to take advantage of the tax credit. We can help guide you through the process every step of the way. If you are interested in taking advantage of the tax credit, just let us know, and we’ll be happy to help you!
Photo credit: http://www.flickr.com/photos/wwworks/ / CC BY 2.0
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If you want to sell your house, there are 2 resources you ABSOLUTELY MUST use. . .
December 15th, 2009 categories: FAQ, For Sellers, Helpful Tips, STR Market Info Blitz
This post is part of the Strong Team REALTORS Market Info Blitz. We’re heating up the Winter market by giving you three-months worth of the information you need, November through January. Check out the latest posts in the blitz, here.
A little while ago, we told you about the NAR 2009 Profile of Home Buyers and Sellers. This document is the result of data gathered from over 9000 people who recently purchased homes.
As you can imagine, the data is extremely useful to agents, since it shows what types of people are buying and selling, what types of homes they are buying and selling, and how they navigate through the buying or selling process.
While this data was gathered from buyers and sellers all across the country, it is certainly representative of what happens right here in the Charlottesville area. Over the coming weeks, we’ll be going over some of the more interesting and important information from the survey. You’ll learn exactly what we’ve learned.
How are buyers finding my house?
The first question we are going to address is one we hear from just about every seller we work with– “how are buyers finding my house?”
Obviously, this is an important question. It is important for one big reason: if you know where buyers are looking for your house, you can concentrate your marketing efforts there.
Luckily, this very question is answered by the data in the NAR 2009 Survey of Buyers and Sellers. The survey asked buyers where they found the home they purchased. There are two very important aspects to this question. The first is that this question was only answered by people who actually bought a home. No browsers or looky-loos in the mix. The second important thing is that the question refers to the where they found the home they purchased. This means that the source the buyers site was obviously very important to them. The answer to this question is one of the major reasons that they bought the house they chose.
The results are displayed by year, starting in 2001 and ending in 2009. Let’s take a look:
72% of buyers found the home they purchased either through the Internet or their real estate agent
Direct your attention to the last column, which contains the survey results for 2009. Notice that the two most popular answers were “Real estate agent” and “Internet” (36% each). That means: 72% OF PEOPLE FOUND THE HOME THEY PURCHASED FROM THOSE 2 SOURCES.
Why is this important?
Marketing your home isn’t a game of chance. There are some ways that work better than others. After looking at the results of the survey, it is obvious that your home needs to marketed on the Internet and to real estate agents. The most common way to market to real estate agents is through listing the home through the local MLS (Multiple Listing Service).
If you are planning on selling the home yourself, you can market it on the Internet through various outlets. You wouldn’t have access to the MLS, so you would have to come up with other methods of getting the home in front of real estate agents.
If, like most sellers, you are going to use a Realtor to assist you in the sale of your home, you want to make absolutely, positively sure that your Realtor has a plan for marketing the home on the Internet and through the MLS.
Things to remember. . .
Most people enjoy seeing their home advertised in print. You need to be smarter than those people. Only 2% of buyers found the home they purchased through a print ad. Your time, effort, and money is better spent elsewhere.
If you really want to sell your home, you need to make sure that it is marketed effectively to prospective buyers. For 72% of buyers, this means that the home needs to be on the Internet and/or in the MLS. Doing those two things, and doing them exceptionally well, will give you the best chance of selling your home for the highest possible price. This is true whether you are selling a home in Lake Monticello or Charlottesville, Albemarle or Louisa.
When you are evaluating Realtors, make sure that your Realtor has a good understanding of how Internet and MLS marketing works, and a solid plan for using both outlets to your advantage.
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How to find the information you need about the Lake Monticello Owners’ Association
December 10th, 2009 categories: Communities, FAQ, For Buyers, Info, Lake Monticello, STR Market Info Blitz
This post is part of the Strong Team REALTORS Market Info Blitz. We’re heating up the Winter market by giving you three-months worth of the information you need, November through January. Check out the latest posts in the blitz, here.
A dock and cove at Lake Monticello
We work with many people who are interested in Lake Monticello real estate. With everything from smaller ranch homes to larger waterfront homes, Lake Monticello is attractive to many people.
Lake Monticello is governed by a homeowners’ association. In fact, the Lake Monticello Owners’ Association is one of the largest homeowners’ associations in the Commonwealth of Virginia. Many of the people who move here have never lived in a homeowners’, much less one as large as LMOA.
Fortunately, the Lake Monticello Owners’ Association has a website that is full of all the information you need if you want to buy a home in Lake Monticello. Simply visit LMOA.org.
From LMOA.org, you do everything from find out contact information for the Board of Directors and the General Manager’s office, to downloading the minutes from all the recent meetings of the BOD.
Two pieces of information that are critical to anyone who wants to live in Lake Monticello are the Dues and Fees Schedule, and the Policy Manual.
The Dues and Fees Schedule contains all the fees that someone might potentially have to pay while living at Lake Monticello. The schedule is published every January with the updated fees.
The Policy Manual contains all the policies of the LMOA, along with all of the rules and regulations that residents must follow.
Both of these documents contain the answers to most of the questions that you might have about owning a Lake Monticello real estate and being a resident here.
So, if you’re interested in buying a home at Lake Monticello, or you already live here and just want to know where you can find the latest information about what is going on in the community, make sure you check out LMOA.org!
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What Lake Monticello owners should know about homeowners associations
November 20th, 2009 categories: Communities, FAQ, First Time Buyers, For Buyers, For Sellers, Helpful Tips, Info, Lake Monticello, STR Market Info Blitz
This post is part of the Strong Team REALTORS Market Info Blitz. We’re heating up the Winter market by giving you three-months worth of the information you need, November through January. Check out the latest posts in the blitz, here.
A Lake Monticello home at sunset
The Lake Monticello Owners Association is one of the largest homeowners associations in Virginia, and certainly the largest in the Charlottesville area.
Not to long ago, we shared with you how you can get information about the LMOA directly from their website.
But what if you want more general information about how homeowners associations work? Or what if you live in a homeowners association other than the Lake Monticello Owners Association? Then what?
Don’t worry– we’ve got just what your looking for.
HouseLogic.com has a very informative article about what to expect when you live in a homeowners association.
The information in the article applies to homeowners associations in general. Sure, every homeowners association is going to be different, but the article is a great starting point for general information that will prepare you to live in a homeowners association.
One piece of advice that is particularly useful is the what to do when you don’t like the rules of your HOA, or you think things need to change– get involved. The article offers the following ways to do something in order to get the results you want:
Become the rule-maker
If you don’t like the rules, the best way to change them is to become part of the process.1. Know your CC&Rs, annual budget, and employee contracts. Do you see areas where expenses can be cut? Are service providers doing their jobs?
2. Volunteer for a committee or task. If the board needs to enforce parking rules, for instance, you can volunteer to gather license plate numbers of residents’ vehicles. In addition, put your professional expertise to work: Assist the board with data entry, accounting, or website design.
3. Stand for election to the board. When a position becomes open, the board notifies the members, and you can put your name forward. New board members are elected at the annual meeting by member majority vote. Many boards are three to nine members large, with terms of one to two years.
Living in a homeowners association can be very different from neighborhood to neighborhood. With the knowledge that the article provides, however, you’ll be more prepared as to what you should expect from your homeowners association.
If you have a question about any of the homeowners associations in the Charlottesville area, don’t hesitate to ask us! We’ve helped hundreds of buyers and sellers in the Charlottesville area who lived in or moved into homeowners associations. We’re always happy to offer our knowledge and experience, or put you in touch with the right people to answer your questions.
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5 Things you MUST do at your final walk-through
November 10th, 2009 categories: FAQ, First Time Buyers, For Buyers, Helpful Tips, STR Market Info Blitz
This post is part of the Strong Team REALTORS Market Info Blitz. We’re heating up the Winter market by giving you three-months worth of the information you need, November through January. Check out the latest posts in the blitz, here.
Take a close look during final walk-through
Buying a home can be a very exciting experience. With all that excitement, it is sometimes easy to overlook little things that can make a big difference in the overall outcome of your home-buying transaction.
One of the aspects of the transaction process that is critical is the final walk-through. Knowing what to do at your final walk-through can help ensure a smooth final stretch for your transaction and give you piece of mind when you finally sit down at the closing table.
What is the final walk-through?
The final walk-through is one of the last parts of the transaction process. Just before you proceed to the closing table, you will need to conduct a final walk-through of the house you are buying to make sure that the home is in the condition it should be in, and that all the provisions of the contract have been met.
The final walk-through is your final chance to raise any issues with the house before you proceed with the closing. DON’T SKIP THE FINAL WALK-THROUGH! Some people just assume that the home is the way it should be, and they choose not to do a final walk-through so that they can save time. This can be a major mistake. If you skip a final walk-through and then proceed with closing, there might not be anything you can do after the closing if there is something wrong with the house when you take possession.
Because the final walk-through is so important, there are things you need to make sure you do to make sure that you are getting the maximum benefit from your walk-through. Here are 5 things you MUST do at your final walk-through:
1. Schedule the walk-through as close to the closing as possible. Since your walk-through is the last thing you will do before signing paperwork and taking possession of your new home, you want to make sure that you do it as close to your closing time as possible. Why? Because once you leave that house, you are essentially agreeing to the home in the condition in which you saw it at the walk-through. The closer you are to signing your paperwork and taking possession, the less time there is for something unexpected to happen. Unexpected things are not usually good during closings, so try to eliminate that possibility as much as possible by doing the final walk-through as close to your closing time as possible. Sometimes, your schedule may not permit this, and there will be time or even a day between walk-through and closing. That should be ok, but just try for as close to your closing as you possibly can get.
2. Give yourself enough time to conduct a thorough walk-through. So, you want to be as close to closing as possible, but you also want to give yourself time to actually do a thorough walk-through. Our suggestion is to give yourself about an hour between the time you open the door, and the time you have to leave to get to your closing. This should give you enough time to go through items 3-5 on this list, and address any potential problems. If you think you may need more time, based on issues that came up during negotiations, that’s fine. Just make sure you allow yourself the time you need. On that note, don’t let the seller rush you or dictate the time you have. The walk-through time is yours, and it is part of the contract, so take the time you need.
3. Check for personal property. Often, there is some personal property that conveys with the sale. Could be appliances, window dressings, shelving, or just about anything. This personal property would have been explicitly mentioned in the contract. If personal property is included, make sure that it has been left in the house, and that it has been left in the condition specified in the contract. Also, you’ll want to check for any personal property that the sellers might have accidentally left behind. If you find anything that isn’t supposed to be in the house, let the seller know. If they might have forgotten it, they will appreciate you letting them know. If you find out that they left it for you to have, consider it a bonus.
4. Re-check home inspection items. If you conducted a home inspection as part of the transaction, you’ll want to make sure that any items that you negotiated during the home inspection were addressed in the specified manner. It is a good idea to have the contract and addenda with you during the walk-through so that you can make sure that items were corrected in the manner specified in the contract. Go through each item one by one. If something seems amiss, call the listing agent and address the situation while you are at the house. That gives you the best chance of getting things resolved without causing a delay in closing.
5. Run the house through its paces. Aside from the home inspection items, you’ll need to make sure that everything is still working the way it was the last time you were in the house. Once again, this is your last chance to address anything, so make sure you check all the major systems in the house. Turn on all the faucets to check for leaks, make sure the HVAC is working properly, turn on the stove and the oven, open, close, and lock all the windows and doors. Just make sure that nothing has changed since the last time you were in the house. You’re not conducting another home inspection, but you should make sure things are in order. In fact, many home inspectors will agree to attend your final walk-through for an additional fee, just to do a quick re-check of the house.
A thorough final walk-through provides peace of mind
If you follow the five tips we’ve outlined above, it will help ensure that you are conducting a thorough walk-through. Conducting a thorough final walk-through will help put your mind at ease when you sit down at the closing table. You’ll know that the house you are buying is in a condition that is acceptable to you, and you’ll reduce the possibility of surprises after you take possession. Sure, you can never guarantee that nothing will happen and no surprises will crop up, but conducting the most thorough walk-through you can will give you peace of mind knowing that you have done everything you can, and help make the transaction a much more enjoyable and less stressful process.
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