However, make sure you’re getting the word out.  You don’t know who might have not heard yet about the tax credit and realize that they’d better make a move quickly.

Web

Get the information on your website.  Or, update the info on your site and provide links to resources.  It’s news that’s been around for a while and may be forgotten.  Bring it to the forefront for the next few weeks.

Email

Send an email to your buyers reminding them of the deadline and, if appropriate, the link to the updated information on your website.  Include links to buying information, latest listings and a countdown to April 30.

Bring It Up

Talk about it.  When you’re with buyers, when you’re chatting on Twitter and Facebook as well as blogging mention the tax credit and deadlines.  Consider contacting your local newspapers and television stations to invite an interview explaining the tax credit.

Direct Mail

Drop a postcard to your buyers.  You’ve likely got a list of fence-sitters who are mulling over buying a home.  Remind them that the deadline is fast approaching to put in an offer on a home to qualify for the tax credit.

No matter how you market, be sure to remind buyers that the tax credit is out there, they may qualify and that time is running out.

Let us know how the tax credit is helping your business.

Using your blog as a way to gather and gauge the interest of buyers and sellers, start conversations and keep them interacting with you is a goal of many real estate professionals.  However, keeping the momentum going on your blog can be difficult as you may face days of writer’s block, unable to craft a blog post that is worthy to inform or educate home sellers and buyers. 

If you ever find yourself needing a new boost for your blog, or you’ve just started your blog, look no further than Gooder Group’s blog every Sunday.  We provide you with two topics — one for buyers and one for sellers — that you can use for a single post, or elaborate upon for a series of posts.  And, if you want even more ideas, be sure to check out our blog archive for more ideas to keep your blog going.

Sellers topic for your blog:

If you’re working with a niche market that could involve homeowners who have been in their homes for years and years (think original owners dating back to the 1970s or thereabouts), you may want to discuss the topic of capital improvements versus home repairs.  If a seller stands to make more than the $250K single/$500K joint tax-free gains, they may be unaware that any capital improvements that they made to the home during their years of ownership can be deducted from their gains, thus lessening or eliminating taxes.  List out typical capital improvements homeowners make such as window replacement, room additions, garages, etc.  Anything that you “can’t take with you” is likely to be considered a capital improvement.  As always, remind sellers to contact a financial or tax professional.

Buyers topic for your blog:

Remind first-time buyers (and move-up buyers) of the quickly approaching April 30 deadline for the up to $8,500 first-timer and $6,500 repeat buyer tax credits.  List out the qualifications necessary for each tax credit and link to a government site with additional details such as http://www.federalhousingtaxcredit.com.

We’d love to keep up on your blogging.  Leave a comment or send us an email with your blog. 

Whether you blog about the game or not, you might find you need a fresh idea or two for your blog once in a while.  If that’s the case, check Gooder Group’s blog every Sunday (or review our blog archive) for one buyer and one seller topic to help get your posts going this week. Feel free to use the blog topics for one single post or several in a series, whatever works for you. All our blog post ideas are solid real estate information that home buyers and sellers crave as they search for their perfect home to buy or think about putting their home up for sale.

Sellers topic for your blog:

Making a home look inviting to buyers will sell a home.  Now that spring is getting closer, encourage (or remind) sellers to think spring.  Suggest ways to brighten up a home — washing windows (inside and out), opening window coverings to let light in every room, putting out brightly colored accents that suggest spring time, setting tables with a brighter feel and adding spring flowers or brightly colored blooms.  Replacing the old door mats at the front and back door, polishing the light fixtures outside the house, adding a think-spring door hanging or wreath to the front door.  If weather permits, encourage sellers to include a small display of photos or a set up of how the garden/yard looks in the spring and summer–especially if there is a pool or outdoor entertaining area with deck or patio. Have the seller identify landscaped areas (even in general terms) inlcuding where perennial (returning) plants are and the sunniest spot is that works well for a vegetable garden. If there is a patio and weather cooperates, consider setting up the lawn furniture to make an inviting outdoor living space to entice buyers.

Buyers topic for your blog:

Thinking spring will help buyers remember that they have until April 30, 2010 to sign a purchase offer on a home and qualify for up to $8,000 in federal tax credits. No matter what you write about in your blog, consider adding a line reminding buyers how many days they have to find a home and sign a purchase offer until the April 30 expiration. Consider incorporating a count down graphic (search “countdown clock generator” online) to add a little variety to your blog posts.

Share your blog with us. We’d love to profile you – be sure to leave a comment or email us with your blog.

Here are the facts you need to share with your home buyers to see if they qualify for the tax credit.

The American Recovery and Reinvestment Act of 2009 improved on an earlier $7,500 tax credit available to first-time home buyers. The latest tax credit is worth up to $8,000 (or up to $4,000 for married filing separately) for qualified buyers who purchase a principal residence after December 31, 2008 but before May 1, 2010 (extended from December 1, 2009).  Buyers with signed contracts have an additional two months to close until June 30, 2010 and still earn the tax credit.  Qualified buyers are those who have not owned a principal residence during the previous three years. Here are the details:

• Rebate.  The $8,000 incentive is a true rebate and does not have to be repaid so long as the home continues to be your principal residence for at least 36 months.
• Refundable.  The $8,000 is also “refundable” — that is, if your tax bill for the year is lower than the credit amount you qualify for, you would receive the difference as a tax refund.
• Home Price.  The amount of the credit is limited to 10% of the purchase price of the home, up to the $8,000 (or $4,000) limit; thus an $80,000 home would qualify you for the full $8,000 credit. The maximum allowed home purchase is $800,000. 
• Tax Return. Those who qualify can claim the credit on their federal income tax return.  To combat fraud, a HUD-1 Settlement Statement will have to be attached to the tax return to secure the credit.
• Income.  The full credit is available to married joint-filers (or equivalent filing status) with Modified Adjusted Gross Income (MAGI) up to $225,000, and to single filers and married filing separately with MAGI up to $125,000. The credit is phased out and disappears completely for MAGIs more than $245,000 (joint filers and equivalent) or $145,000 (others).
• Military. Military personnel, deployed overseas for a minimum of 90 days in 2008 or 2009, would have until April 30, 2011 to claim the tax credit.

Who Does Not Qualify For The First-Time Buyer Tax Credit?

You cannot claim the first-time home buyer tax credit if any of the following apply, according to IRS tax form 5405:

• You buy a second home or investment property (only principal residences qualify).
• You buy a home worth more than $800,000.
• Your Modified Adjusted Gross Income (MAGI) is $145,000 or more ($245,000 or more if married filing jointly).
• You acquired your home by gift or inheritance.
• Your home financing comes from tax-exempt mortgage revenue bonds. This rule does not apply for a home purchased in 2009.
  • You acquired your home from a related person. Related person includes:
    a. Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc.)
    b. A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.
    c. A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.
• Your child or other dependent purchased the home.
• You are a nonresident alien.
• Your home is located outside the United States.

 Move-Up B uyers Also Get A Break

Under the new rules, repeat buyers who already own a home qualify for a tax credit too.  A $6,500 maximum credit is available to existing homeowners who have live din their current residence for five of the prior eight years.  The repeat buyer tax credit is limited to purchasing a home worth $800,000 or less.

Using Tax Credit to Pay Closing Costs

In mid-May 2009, the U.S. Department of Housing and Urban Development (HUD) launched a program that would allow federally approved lenders to offer bridge loans to cover closing costs for borrowers who take the 2009 First-Time Homebuyer Tax Credit and who use financing backed by the Federal Housing Administration (FHA). These loans allow buyers who are eligible for the credit to apply those funds towards their downpayments and closing costs, using the credit as collateral.  Once buyers receive the credit after filing their 2009 tax returns, the money will then be used to repay the bridge loan. 

Due to considerable challenges in making these loans widely available, few lenders are currently offering these bridge loans. However, there are still many other funding sources to explore, including:

• State Housing Finance Agencies
• Local Governments and Nonprofit Agencies

Let us know how the extended and expanded tax credit will improve sales in your market. How are you informing buyers of the new tax credit changes?

The good news is that it would be available to qualified first-time home buyers with an up-to-$8,000 tax credit until April 30, 2010.  Buyers would need to sign a sales agreement by the end of April and close on their home by June 30, 2010.

Another version of the legislation circulating suggests a full $8,000 available in quarter 1 of 2010, $6,000 in Q2, $4,000 in Q3 and $2,000 in Q4 with the credit expiring December 31, 2010.

But, it also offers a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years.  This opens up a credit to buyers to a new segment that hasn’t been enticed to enter the housing market with federal incentives yet.

As more details emerge or the final version becomes law, we’ll keep you posted.  Let us know what you think the tax credit extension can do in your market for your business.

Yesterday the U. S. Department of Housing (HUD) issued a press release clarifying the status of the up to $8,000 federal tax credit in use with Federal Housing Administration (FHA) loans.

Here are some of the new guidelines for homeowners using the $8,000 tax credit:

• State Housing Finance Agencies and certain non-profits can "monetize" the tax credit up to the full amount of the tax credit (depending on the amount of the mortgage) to allow borrowers to immediately (rather than waiting for their federal tax refund check) apply the funds toward their down payments.

• Buyers financing through these state and non-profit organizations will be able to use the tax credit for their down payments via a short-term loan provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the down payment. (Remember that individuals can gift up to $13,000 per person per year tax-free.)

• Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5% of appraised value or their closing costs, which can help buyers achieve a lower interest rate. Buyers cannot use the tax credit amount as part of their 3.5% down payment, but can use any or all of the funds as additional down payment.

In light of these changes, what does this mean for the first-time buyers you are working with? The news is brand new – have you told them yet through your many marketing methods?

In addition, the National Association of Home Builders predicts that the tax credit will fuel 160,000 home sales in the U. S. What portion of the 160K homes that are sold by November 30 will you have a part in?

Remember the date: the first time home buyer tax credit applies to purchases closed/settled on or before November 30, 2009. Don’t lose the opportunity to inform your buyers and get their business before time runs out for this federal tax credit.