More Q&A on the First Time Homebuyer's Tax Credit

I've had a lot of clients recently ask me some more specific questions about this $8,000 (or 10% of the purchase price) tax credit for first time homebuyers. Here is some more Q&A about the tax credit:


If I'm getting married and my spouse already owns a home, but we both need to be on the mortgage for a new house, would I still qualify for the tax credit?

• For a married couple, if one person owned a home within the last 3 years and the other did not, they don't qualify for the tax credit. However, if an unmarried couple jointly buys a home, and one person owned a home (within 3 years) and the other did not, they can "designate" the tax credit to that person who will be able to claim it on their individual tax return.

I need my parents to co-sign on the loan for the house with me. Can I still get this tax credit?

• Yes, this rule also applies for parents to co-sign on a mortgage. The parents own a home. The son or daughter is FTHB—the child can claim the tax credit.

It's past April 15th and I've already filed my taxes. Even if I did buy a home this year, would I have wait until 2010 to get the $8,000?

• No. You can file an amendment for your 2008 returns and still get the money this year. I've already have a couple of clients who were in this situation and it took them about 6-8 weeks to get the check in the mail.

And here is a list of situations where you would not qualify for the credit:

• The taxpayer’s income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
• The taxpayer buys his home from a close relative. This includes his spouse, parent, grandparent, child or grandchild.
• The taxpayer does not use the home as his principal residence.
• The taxpayer sells his home before the end of the year.
• The taxpayer is a nonresident alien.
• The taxpayer is, or was, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• The taxpayer’s home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• The taxpayer owned a principal residence at any time during the three years prior to the date of purchase of the new home. For example, if an individual bought a home on July 1, 2008, he cannot take the credit for that home if he owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

If you aren't sure about how your credit is but maybe contemplated buying a home, feel free to contact me with any questions, big or small at rebecca.upton@century21.com

A photograph is usually looked at - seldom looked into. ~Ansel Adams

I just purchased my very first DSLR camera! I'm so excited to use it on some real estate. The only thing is, I have yet to purchase my wide angle lens, a necessity when taking real estate shots. The Canon EOS Rebel XS model is the one I chose to go with. Robert's Camera here in Indianapolis was having a spring sale and I got this camera with kit lens, 2 batteries, charger, bag, a lot of SD cards, more accessories, and even a free class at the Jewish Community Center that I will be attending on Tuesday evening! I'm looking forward to this class because it has been a while since I've held a SLR camera in my hand, and it sure wasn't digital.

Although we do hire a professional photographer who comes in to take the pictures, there have always been certain angles that I wished I would have had in hindsight. Re-shoots can also be expensive and I like to change our listing photos when the seasons change (hate to see those snow shots in the middle of July!).

Although I have had a lot of good photos come out with my little Canon Powershot SD450 (a little point and shoot) I always knew that I would not be able to capture those great interior shots the way I wanted. A while back when I was in my staging class, the instructor recommended us to get one of those $30 magnetic wide angle lenses to attach to our point and shoot. It worked in a way- we did get a wider shot which was great. However, the corners of the image were blurred that and the lighting was never great because I didn't have the right kind of flash. It's an essential.

I have had lots of compliments on my photos from my little camera, but at lot of it has to do with what shots I choose to take (which ones I know that my point & shoot can handle) and preparing the scene. Staging is a huge must in my book, because most of us can't see beyond the litter box in the bedroom or exercise machine in the dining room. I was flattered that a couple of agents were even upset with me on occassion because my pictures were deceptive (the house was not in tip-top shape, like the photos were showing) but hey, that's marketing.

So I'm still two accessories away from taking the perfect real estate photos, but I'm closer than before! I'll definitely post some pictures using both cameras, so you can see the difference.

Oh and if you don't think photos make a difference, check out one of the blogs that I follow: www.lovelylisting.com

There are very few monsters who warrant the fear we have of them. ~Andre Gide

So, I'm not really one of those people who likes scary movies or stories for that matter, but this one just really grabbed my attention. Mostly because, I'm pretty sure I showed this home to a client about a month and a half ago. I am now freaking out. Good thing they didn't write an offer or I would be hiding in the corner breathing into a paper bag. It was raining that day, and I had problems getting the lockbox open too. I don't usually show houses at this low of a price range (nothing wrong with it, but usually just don't have people looking in that range or neighborhood) but this was a "floor call" and so I guess I was the lucky person. Funny thing is, I've been following up with these people all this time and haven't heard anything since...



Today I heard on the radio broadcast of WRTV news that the house where Sylvia Likens was tortured & murdered in, was bulldozed. I had not really heard much of the story, and I'll spare those who don't want to know that gruesome details, but basically in the 1960's when she was about 16 years old, Sylvia's parents who were carnival workers, sent her and her younger sister to live with their neighbor Gertrude Baniszewski, while they were on the road working. They paid Gertrude $20 a week to keep the kids in line. This lady already had 7 kids of her own, by several different men who were abusive with her, and this may have something to do with her craziness and depression which lead her to torture & kill this poor girl.



Anyway, the house at 3850 E. New York Street in Indianapolis has a lot of history (actually listed with someone in my office at one point, bet they didn't know what they were getting into) but has never been able to hold an owner or a tenant steadily. At one time, it was a shelter for abused women, but it was boarded up and today apparently bulldozed.



There have actually been several movies (An American Crime) and books (The Girl Next Door) based off of the "most horrific crime in Indiana" but now that the building is gone, all that is left of this appalling case is rubble now, but hopefully after the dust settles she will be able to rest in peace.



Some articles related to the case:

Indy Star Library

The Cabinet

(Just an FYI, in our Indiana purchase agreements, there is a clause in there stating that we are legally obliged to inform clients of any craziness going on- so murders or big crimes yes, but if the neighborhood kids say the boogie man lives there, no that doesn't count. Had I written up a contract, the listing agent would have told us at that point because there is info in the system. Still, creepy!)

There are no passengers on Spaceship Earth. We are all crew. ~Marshall McLuhan, 1964

Happy Earth Day! I think for the most part, it's a good thing that the trend of going green has become more mainstream. At least people are aware of the direction that we need to head and with more companies realizing this, they are able to make products and services that are making it easier for people to do so. Here's an article that I snagged from BHG.com that lists 10 easy ways to go green.



10 Easy Ways to Go Green

by Kelly Tagore





Change a Light Bulb
Installing a compact fluorescent bulb (CFL) is the quickest, easiest way to save energy -- and money. Unlike incandescents, CFLs convert most of the energy they use into light rather than heat.
Good for You: They consume about 75 percent less electricity and last up to 10 times longer (10,000 hours as opposed to 1,500). Replace one 75-watt incandescent bulb with a 25-watt CFL and save up to $83 over the life of the bulb.



Unplug Things That Glow
Anything that has an LED (light emitting diode) that glows even after you turn it off continues to draw power (that you pay for). Your TV, cell phone charger, and printer are likely culprits. Unplug the offenders from wall sockets and plug them into power strips instead. When you leave a room, flip the strip switch to cut the flow of electricity.
Good for You: Unplug appliances and electronics that glow and you could save $200 a year.



Recycle Your Electronics
Americans tossed out a whopping 5.5 billion pounds of electronics -- TVs, stereos, cell phones, and computers -- in 2005, according to the Environmental Protection Agency. The result? Millions of pounds of chemicals and heavy metals ended up in the ground even though it's easier than ever to recycle electronics. The Consumer Electronics Association created mygreenelectronics.org to help people find a recycling resource in their area. The site also provides a list of electronics, from laptops to baby monitors, that are easier on the environment and your energy bill.
Good for You: The average American household has three cell phones stashed in a drawer. Sell unused cell phones to greenphone.com. You'll receive about $35, and the phones will be refurbished and resold. If 1 million people recycled one cathode-ray tube TV this year, we'd keep 4 million pounds of lead out of the ground.



Audit Your Energy
It's easier to save energy when you know exactly how much and where you're using it. Investing in a home audit takes a couple of hours and pays off with a list of things you can do to curb consumption. Find an auditor through your utility company (at low or no cost), or hire one ($450-$650). A list of auditors certified by the nonprofit Residential Energy Services Network, is at resnet.us (click on Consumer Information).
Good for You: On average, an energy audit shows how to save up to 30 percent on utility bills.



Support Local Farmers
If your food could talk, it would tell quite a tale. Typical grocery store produce travels nearly 1,500 miles before it ends up on your plate. All this traveling burns fossil fuels and results in carbon emissions -- a fancy term for pollution. Buying from local farmers means you're not only getting the freshest food possible, you're saving energy.
Good for You: To find farmers nationwide, visit localharvest.org, sustainabletable.org, and the U.S. Department of Agriculture at www.ams.usda.govfarmersmarkets/map.htm.



Fix That Drip
When you next fill your water glass, think about this: We each use about 100 gallons a day, enough to fill 1,600 glasses. Household water consumption has increased by 200 percent since 1950, even though the population has grown by only 90 percent. As a result, more than 36 states are expected to face water shortages in the next six years. Stemming the flow is as easy as fixing a leaky faucet or toilet; a dripping faucet can waste up to 74 gallons a day, a leaking toilet up to 200 gallons a day.
Good for You: Repair a leaky toilet and you can save $30 a year, which may not sound like much until you realize it means 73,000 gallons.



Let Your Grass Grow
Spending less time tending to your lawn actually makes it greener -- in every sense of the word. Most grass species fare best when they're kept at least 2 1/2 inches tall. The length creates more surface area to absorb sunlight, which creates thicker turf and deeper roots, which means you won't need to water as often.
Good for You: Save money by letting grass clippings remain on your lawn; it adds nitrogen to the soil and discourages weed seeds from germinating. You'll need less fertilizer and herbicide. Plus, leaving clippings on lawns means less in landfills; in 2005 Americans disposed of more than 12 million tons of yard waste.



Look for the Label
When it's time to replace a household appliance, choose a product with an Energy Star label. Sponsored by the EPA and the Department of Energy, the Energy Star program rates products from light bulbs to kitchen appliances. Energy Star labels guarantee that products are energy-efficient. For example, a battery charger labeled with the Energy Star logo will use 35 percent less energy than a standard one. You may even be eligible for a tax credit when you purchase an Energy Star product. Information at energystar.gov.
Good for You: A household with Energy Star products uses about 30 percent less energy than the average household -- an annual savings of about $570.



Do Full Loads
Whenever you wash just a few clothes or dishes at a time rather than waiting for a full load to accumulate, you're wasting water, power, and money. The average American family of four washes about 540 loads of laundry a year, which consumes up to 21,000 gallons of water, and more than 150 loads of dishes, which uses about 1,500 gallons. Most of the energy consumed by washers goes toward heating the water -- about 90 percent in the clothes washer and 80 percent in the dishwasher. Combining half-loads, choosing short cycles, and using cold or warm rather than hot water in the clothes washer racks up savings.
Good for You: Wash two fewer loads of clothes and one fewer load of dishes a week and save up to 4,500 gallons of water a year.



Work the Critters
Your backyard ecosystem is as intricate as any wild patch of land, and it pays in many ways to enlist its creatures on your side. Birds eat many insects; they just need a water source and trees and shrubs for cover and nesting. Many insects are beautiful -- and beneficial. Ladybugs aren't just cute; they are voracious eaters of aphids.
Good for You: To understand which backyard insects are garden friends, visit garden.org and click on Pest Control Library for photos.

Peep Show

What to do with all that extra candy the easter bunny left behind? Make a diorama! Don't let your kids rot out their teeth on that sugary stuff, let them play with it! Check out these fun Peeps Creations from the 2nd annual Washington Post's Sundary Source Peep's Diorama Contest.

Happy Passover!

Happy Passover to my Jewish friends! Passover starts tonight at sundown and lasts until nightfall on Thursday, April 16th. It usually last eight days and commemorates the exodus of the Hebrews from Egypt. A Seder meal is held on the first night of Passover at home and it is basically a big feast. New clothes, fine china, it's like the Chinese Lunar New Year! Here are some ideas for setting your Passover table.

Wondering what you should do for the Passover holiday, the website which I found here gave almost a spring cleaning list. I think in every culture there is a "spring cleaning" to purify yourself and your home. Sometimes it takes something like a holiday, relatives visiting, or some other event to force you to get your home in order. at least it does for me.

Buy a Foreclosure With No Down Payment

The Indiana Housing & Community Development Authority (IHCDA) has come out with a new loan program for those who are interested in purchasing foreclosure HUD properties. You don't have to be a first time homebuyer either! The NSP (Neighborhood Stabilization Program) will be available starting on April 9th and basically offers assistance with the down payment, closing costs, the rehab costs or a combination of all three. There are different ways this program can be used as well- second mortgage, etc.

Here is a breakdown of the program:

• The DPA (down payment assistance) that you will be given is either 20% of the purchase price or $15,000, whichever is less (that is a lot of money!!!)


• Can be used with an FHA, VA, Conventional programs


• Must be an owner occupied property (so you can't do this for something you want to rent out)


• You have to take 8 hours of home ownership training (they do this so that people are fully aware of everything, and since they are giving you the down payment, it's probably worth it).


• Repairs by the contractors will be done before closing


• Homes that are 50 years and older may be up for 'historic review' (to make sure it's structurally sound and stuff)


• If you move in 5 years or less, you have to pay all of the down payment back. 6-10 years, it is pro-rated for 1/5 of the amount every year.


• Other requirements & information available.

There are also income limits to this program and other stipulations to qualify for the program. However, if you have had your eye on a home in great neighborhood that needs a little bit of tlc, or have thought about owning but nothing that "looks nice" is in your price range, this may be a great program for you.

1616 Yandes- 2BR/1BA & in Great Condition!

The list of homes that are available under this program is located at this website. I have a list of preferred lenders that you can talk to about this program or feel free to contact me with any other questions at rupton@c21scheetz.com if you are interested.

(There are other DPA & low interest rate programs for first time homebuyers for homes that don't need to be fixed up so feel free to contact me with any other questions)

Too Extreme?

The "Extreme Makeover" show has been in Indianapolis the past week. If you have never seen an episode of this show on ABC, basically they pick a family somewhere in the country that "deserves" a new home because they are do-gooders in the community. They have staff and tons of help from the community and other sponsors to actually help build/renovate/decorate the house. The family usually goes on a vacation and then they come back, are surprised, and everyone's happy. I have seen a couple episodes of this before, never was a huge fan (I prefer watching other hgtv shows, like budget makeover, or this old house).

I know several people in my office, realtors in other offices, and people in the community have been helping with this project for the past week. Today they will be filming the unveiling of the makeover to an Indianapolis Public Schools worker, and his family of three sons. They seem like a nice, deserving family.

My issue is more with the premise of the show. I know this opinion won't be very popular, but if you know where this area is in Indy, it's all smaller homes, a little run down and several foreclosed properties all around. Not the absolute "worst" area but certainly not a place I would invest tons of money into one house for. Again, this family seems to be really great, the dad does a lot for the community, but why don't they just spread the wealth? I'm not trying to be a socialist here (those who know me well, know that I'm far from that) but it doesn't make sense for this show to spend all this money, time, and effort into one home. What happens when they leave and the family moves in- the house could get broken into, they have to be able to afford the high maintenance of this now bigger and totally remodeled house, and if/when they need to move and go to sell in a few years, who would buy it? The realtor pricing that home is going to have a difficult time.

A more ideal home makeover show, in my opinion, would be to pick a small neighborhood or few blocks where 'Extreme Makeover' could come in and replace some windows, siding, roofs, perhaps update some electrical and plumbing, do some nice landscaping, and then of course the cheapest way to beautify a home- paint. This way, an entire area would benefit, they would bring the value of the homes around it up, and everyone collectively could have a sense of pride about where they live. To be fair, I think Estridge (Carmel based home builder) is helping with some neighborhood landscaping, but I wonder how much it will really help. I will probably go drive by it next week and check it out for myself.

Buying and selling homes is a funny business. Even though a house is your own, your neighbors' homes around you affect it just as much as the condition you keep it in. Changing a whole neighborhood, which would attract new businesses and make people want to come to that area- that would have a bigger impact on people in any neighborhood. To me, that's an extreme makeover.

Even the gods love jokes. ~Plato

Happy April Fool's Day! This Old House (one of the websites I frequent) has an absolutely silly online article about some of the craziest homes in the world- check it out.