06-03-2010
Special Provisions Allow Military Home Buyers to Capture Tax Credits

Extension of Homebuyer Tax Credit and Exemption from Tax Credit Recapture Rules Ease the Home Buying Purchase for Members of the Military

Military families seeking to buy a home can count on a little tax help. The Homebuyers Tax Credit which provides eligible buyers with a tax credit of $8,000 for first time buyers and $6,500 for repeat home buyers ended on April 30, 2010 for civilians. However, active duty military or those on extended overseas duty have until on or before April 30, 2011 to have a binding sales contract in place.  The bill also exempts qualified service members on official extended duty from tax credit recapture rules.

"We honor those who serve our country and are glad that this bill acknowledges the unique circumstances they face," said Benjamin Clark, 2010 President of NAEBA (http://www.naeba.org). "This bill ensures that members of the military have equal opportunity to participate in the homebuyer tax credit and offers relief to struggling military families by making the mortgage payment tax deductible."

The Worker, Homeownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence and a tax credit of up to $6500 for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The tax credit is available for eligible purchasers who have a binding sales contract in place by April 30, 2010, and close by June 30, 2010. However, realizing that members of the military, the Foreign Service and Intelligence Community have unique circumstances the bill has special provisions for this group:

• Tax credit extended for one year for military personnel serving outside the United States for at least 90 days during the period beginning December 31, 2008 and ending May 1, 2010.
• Eliminates the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell or move from a tax credit home as aresult of an official extended duty of service.

Visit www.irs.gov for more information on qualifying and claiming the tax credit. To learn more about NAEBA and the benefits of using an exclusive buyer agent, visit http://www.naeba.org.

04-15-2010
No Electronic Filing for Home Buyers Claiming Home Buyer Tax Credit

Electronic filing takes some of the stress out of tax day, but this year homeowners may be surprised to learn that if they are claiming the Home Buyer Tax Credit e-filing is not an option. Home buying experts, The National Association of Exclusive Buyer Agents (NAEBA) is urging homeowners to carefully review and follow the IRS guidelines to file for the credit, which include the requirement to print and mail a paper return.

"NAEBA exclusively represents buyers in real estate transactions and our advocacy does not end when the purchase is finalized. We advise home buyers on all the issues involved in a home purchase. Tax season can be stressful and confusing and we want to ease that burden by passing on information that is important to the market we serve," says Benjamin Clark, 2010 President of NAEBA.

To qualify for the Home Buyer Tax Credit you must buy or enter into a binding contract to buy a principal residence on or before April 30, 2010 in the United States, and you must close on the home on or before June 30, 2010. According to the IRS the following steps must be taken to claim the credit:

File a Paper Return. You cannot e-file but must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. You can digitally prepare your taxes using tax websites or software but must print and mail your return to the IRS with all required documentation.

Deadlines and Documents. If you enter into a binding contract before May 1, 2010 to purchase a home before July 1, 2010 and are claiming the credit, attach a copy of the pages from the signed binding contract that show all parties' names and signatures, the purchase price, date of contract and the property address.

Settlement Documents. New homebuyers must attach a copy of a properly executed settlement statement, which will generally include property address, all parties' names and signatures, sales price and date of purchase. Forms can vary by location and may not include both buyer and seller signatures. If your form does not require signatures on the settlement document, the IRS encourages buyers to sign the settlement statement when filing their tax return even if the form does not include a signature line.

Newly Constructed Homes. If you purchased a newly constructed home, where a settlement statement is not available, you must attach a copy of the certificate of occupancy showing the owners' name(s), property address and date of the certificate.

Mobile Home Purchases. If you purchased a mobile home and are unable to obtain a settlement statement, attach a copy of the executed retail sales contract. The contract should have all parties' names and signature, date of purchase, property address and purchase price.

Long-time Residents. For long-time resident homebuyers claiming the tax credit, the IRS recommends attaching documentation that covers the five-consecutive-year period. This may include documents such as Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner insurance records.

Homebuyers can find more information about the Home Buyer Tax credit on the IRS website at http://www.IRS.gov/recovery and can locate home buying resources and an Exclusive Buyer Agent at http://www.naeba.org.

03-29-2010
CNN Money Calls Purchasing Real Estate in 2010 a “No-Brainer”

As we are on a roller coaster on a downhill slope toward the end of the tax credit, we are weighing the question of why buy in 2010.  NAEBA, the National Association of Exclusive Buyers Agents, is a network of trusted agents who represent only buyers' best interests and we will help you examine the top 5 benefits of buying now.

1. No one has a crystal ball into the 2010 market, but once the tax credits end, mortgage rates are anticipated to skyrocket. For this reason, the longer you wait to purchase, the more expensive your new home could be.

2. Based on this potential hike in mortgage rates, the number of savvy consumers purchasing now is increasing which means you can sell your current home faster than you would be able to when the more expensive mortgages causes the market to slow.

3. It is a buyer's market due to the influx of homes on the market because of the increase in foreclosures. According to US News, this gap between the buyers' and sellers' markets is expected to narrow later in 2010.

4. It may become harder to secure a loan. Mortgage delinquencies are up, which will likely result in the FHA tightening their belts on lending standards. Changes may include, "raising up-front cash requirements, boosting minimum credit scores, and perhaps charging more for insurance premiums" said US News.

5. Homebuilders are in the same financial crunch as the rest of us. If you are purchasing a new home, consider builders are narrowing their margins in order to stay afloat.

These tips are not a cure-all for the current economic climate. You must factor in the home values in your specific market as well as your individual circumstances. Find a NAEBA agent near you at www.naeba.org to find the best home-buying strategy for you.

 

09-18-2009
First Time Homebuyers

 The $8,000 federal tax credit for first-time homebuyers is scheduled to expire on December 1.  In order to qualify, the transaction must be closed on or before November 30, 2009. That leaves buyers with 2 ½ months to complete the process.

05-20-2009
No Compromise. How a NAEBA agent gets you a better buy

A better selection of homes to choose from is the goal of many home buyers as they set out to buy their next home. One way of achieving a greater ‘inventory’ of homes to select from is to choose agents who are exclusively representing real estate buyers. These exclusive buyer’s agents have made the commitment to identify all homes in the marketplace, including homes listed in the Multiple Listing Service (MLS).

This commitment to a comprehensive search for all available properties can be especially important when looking for luxury real estate such as vacation homes , estate homes , and other luxury homes .

For Sale By Owner (FSBO) homes are important in markets that still have a shortage of inventory or are active ‘seller markets’ where homes go under agreement quickly. Exclusive buyer’s agents will ensure that home buyers have access to all of the data on listed homes including the address and complete property data as well as the basic facts about the for-sale-by-owner homes .

For a better selection of homes to choose from, shop for an exclusive buyer’s agent who can expand your search to the full range of homes on the market, including for-sale-by-owner homes .