Home Buyer Tax Credit

Q 1. Who is considered a first-time homebuyer?   

A  A homebuyer is considered a first-time buyer if all of the following requirements are satisfied:

1.  The main home is purchased in the United States, and

It is purchased after Dec. 31, 2008 and before May 1, 2010, or

It is purchased after April 30, 2010 and before July 1, 2010 and the buyer entered into a binding purchase contract before May 1, 2010 with the close of escrow before July 1, 2010.

2.  The buyer (and spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.

3.  The buyer does not satisfy any of the conditions listed in Question 3. 

(Source: Instructions for Form 5405  (rev. Dec. 2009).)

To Read More: http://www.car.org/legal/legal-questions-answers/2010-qa/homebuyer-tax-credit-update/

Seller Hint: Remodel You Home to Capture Added Value

A study by Remodeling magazine found the average rate of return on value for an upgrade in a home declined from 87 percent in 2005 to 64 percent in 2009.  Taking that into consideration, many real estate experts recommend homeowners remodel instead of adding on to their home.  For example, having a large, formal living room and an everyday family room is less desirable than having one multi-use common space.  So, rather than adding on, most homeowners are better served reconfiguring the existing floor plan or capturing unused basement or attic space.