If  you are a 1st time home buyer or just wanting to buy a home in this great market, now is the time.

It extends the tax credit offer through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

Millions of additional people may be able to take advantage of the new and improved first-time home-buyer tax credit now, and it is not just for first-time home-buyers anymore. You may now qualify.

President Obama signed legislation that will vastly expand the number of people for home-buyer credits by boosting the income eligibility limits, giving buyers more time, creating a $6,500 credit for longtime homeowners and launching more accommodating rules for members of the military. Here are the details.

The $8,000 Tax Credit:

If you were locked out of the first-time home-buyer credit in the past simply because you earned too much, there is good news.

Now you can qualify for the full $8,000 first-time home-buyer credit with a single income of up to $125,000 and married income of up to $225,000. Those who earn more will be phased out.

The credit ends completely once single income exceeds $145,000 and married income exceeds $245,000. That is a big boost from the previous law that shut off the credit for singles earning more than $95,000 and married couples who earned more than $170,000. Additional eligibility rules are:

You must not have owned another home for at least the previous three years.

You must buy a home (or have a binding contract to buy) by April 30, 2010. Under the new law, if the sale does not close on   time, you can still get the credit as long as you’ve got a binding contract on the ending date.

You must be older than 18 years of age and not claimed as a dependent by any other taxpayer.

The property you purchase cannot have been acquired from a relative.

You must attach a copy of your settlement statement with your tax return to claim the credit.

Most buyers also must continue to own this new home for at least three years. If they sell in less time, the government will demand that they pay the tax credit back.

Special Rules For Military:

The government will not require repayment of the credit if you are a member of the military and had to sell or stop using the home as a primary residence because of extended duty.

In addition, those serving outside of the U.S. during any part of 2009 or early 2010 will get an additional year to claim the tax credit. In other words, the credit ends for most people on April 30, 2010, however it lasts until April 30, 2011, for active-duty service members working overseas.

The $6,500 Tax Credit:

      The new law carves out an additional credit for current homeowners. If you have owned and lived in a home for at least five consecutive years of the last eight years, you could qualify for a $6,500 tax credit, if you buy a new home between now and  April 30, 2010.

The “five-of-eight” requirement means that this credit could accommodate people who lost their homes in the last year or two to foreclosure or even sold a house and did not immediately replace it.

As our country reduces its dependence on oil and its carbon footprint through energy conservation, there are many benefits to making our homes more energy efficient –one such benefit is Energy Efficient Mortgages. According to US Energy Protection Agency – Energy Star Program, an Energy Efficient Mortgage (EEM) is a mortgage that credits a home’s energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home.

To get an EEM a borrower typically has to have a home energy rater conduct a home energy rating before financing is approved. This rating verifies for the lender that the home is energy-efficient.

EEMs are typically used to purchase a new home that is already energy efficient such as an ENERGY STAR qualified home. The term EEM is commonly used to refer to all types of energy mortgages including Energy Improvement Mortgages (EIMs), which are used to purchase existing homes that will have energy efficiency improvements made to them. EIMs allow borrowers to include the cost of energy-efficiency improvements to an existing home in the mortgage without increasing the down payment. EIMs allow the borrower to use the money saved in utility bills to finance energy improvements. Both EEMs and EIMs typically require a home energy rating to provide the lender with the estimated monthly energy savings and the value of the energy efficiency measures — known as the Energy Savings Value.

EEMs (and EIMs) are sponsored by federally insured mortgage programs (FHA and VA) and the conventional secondary mortgage market (Fannie Mae and Freddie Mac). Lenders can offer conventional EEMs, FHA EEMs, or VA EEMs. For more information go to http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.energy_efficient_mortgage

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time home buyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000.  To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

The House could vote on the bill as early as Thursday.

Click here to read the full story.

1. Locating the property that meets a buyer’s needs.
2. Conducting ongoing communication with the buyer.
3. Showing the property.
4. Discussing the benefits of the property with the buyer.
5. Discussing possible terms with the buyer.
6. Discussing financing with the buyer.
7. Writing the offer.
8. Negotiating the offer to acceptance.
9. Helping the buyer obtain financing.
10. Helping the buyer with the inspections.
11. Performing all non-attorney duties leading to closing.
12. Going to closing.

The definition of procuring cause is not “black and white”.  The guidelines are established by the National Association of Realtors.  When a hearing is held on procuring cause, the panel is looking to see that there was an “unbroken” chain of events from a specific broker that lead to the buyers making the decision to buy the property and resulting in a successful sale.  In other words, the sale would not have occurred but for the broker’s efforts.  For more information on “Whose Sale Is It” read NAR’s article that outlines six factors determining procuring cause.

NAR Article

I have an out of town buyer who is looking at properties between $1,000,000 and $2,000,000.  She requested to see 15 houses, of those 15 only 5 are still available.  Some were short sales with multiple offers, some had pending contracts, a few were rented and one was sold.

Moral of the story: There is not a lot of good inventory between $1,000,000 and $2,000,000 on the market today.

Thinking of selling your home? Now might be a good time to put it on the market when we have such a limited supply of quality high end homes.  Please give me a call for a market analysis of your property.

To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.

If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.

The existing credit which expires on November 30, allows qualified first-time home buyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. Homes purchased after Jan. 1 are eligible. The full credit is limited to single filers making less than $75,000 a year and joint filers making less than $150,000.

About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit. Read more.

A couple of days ago, I blogged about a real estate “deal”  listed for sale in Coral Gables for $299,000.

It is  NOW  (already!) …    under contract.

260 Majorca Avenue,    Coral Gables, Florida

I don’t often toot my own horn, but for the (several)  buyers who waited a day too long to get in their offer …  I told you so !

Sometimes there’s a rush … if you’re going to scoop up the good deals!

I am excited to share with you my recent partnership with attorney Debbie Najjar. Originally from New York, Debbie has a vast experience in commercial real estate investments both from the legal and the investor standpoint.

Debbie adds to our practice a great deal of enthusiasm and legal expertise.

Welcome to RealGreenTrends Debbie!

You can reach Debbie at debbie@the-beach.net