Homebuyer tax credit expanded On Friday, Nov. 6, 2009, President Obama signed a bill that extends and expands the homebuyer tax credit. This year's version includes the same $8,000 tax credit, but has also undergone changes that make the program available to a significantly larger pool of people.
The basics First-time homebuyers may qualify for a tax credit on their tax return of 10% of the purchase price of a home. The maximum benefit is $8,000, which means that any home above $80,000 qualifies the buyer for the full amount of the credit. The purchase price cannot exceed $800,000.
This is a true credit, meaning if you have a $3,000 tax burden and qualify for the full amount allowed under the program, you'll actually get $5,000 back.
More time to act The program has been extended from the original deadline (November 30, 2009) to the new deadline – April 30, 2010. A signed contract must be in place by that date.
The actual closing date can be as late as June 30, 2010.
More people qualify The two most notable changes are a substantial increase in the qualifying income limits and the inclusion of a credit for current homeowners who purchase a home.
The income limits have been stretched from $75,000/year (single) and $150,000 (married) to $125,000 and $225,000 – this means many more thousands of Texans are eligible for the credit.
What's more, unlike the previous program, the redesigned tax credit is not just for first-time buyers. Eligible current homeowners may claim up to a $6,500 credit for qualifying properties.
To take advantage of the credit, homeowners must meet certain criteria, which can be a little confusing. Let me provide some clarification:
If you have owned and lived in a home for at least five consecutive years of the last eight years and meet income requirements, you likely qualify for the credit.
Here's something interesting … you don't have to sell your existing home to take advantage of the credit. The home you purchase must become your principal residence, so you would have to move there. But you may be in a position to keep your original house as a second home or rental property.
Paybacks As long as you live in the newly purchased home for three years before selling it, the credit does not have to be repaid. A notable exception is members of our military, who do not have to repay the credit if they must sell the home or stop using it as a residence because of extended duty.
In addition, service personnel outside of the U.S. during any part of 2009 or early 2010 get an additional year to claim the credit. In other words, in most cases, the program ends on April 30, 2010, but active-duty service members working overseas have until April 30, 2011 to have a signed contract.
Get your ducks in a row If you're ready to buy your first house, or have been considering a move-up, the time is right. You have a little time, but talk to a Texas Realtor soon … April 30 will be here before you know it.
For more information about real estate in the Lone Star State, including a free podcast detailing the expanded credit, visit www.TexasRealEstate.com .
Real estate designations – what do all those letters mean?
Staying ahead of the curve and sharpening skills are essential elements to professional success in any industry. That's why many professionals head back to school for an advanced degree or certification. The real estate industry is the same way. You may have seen GRI, CRB or CRE after your Texas Realtor's name and wondered what all those letters mean. More importantly, what do they mean to you?
These designations mean you're working with a Texas Realtor who has taken the time to reach the top of his profession. The National Association of Realtors (NAR) and its state and local affiliates offer advanced-education designation and certification programs tailored to virtually every real estate specialty you've heard of, and probably some you haven't.
Real estate, whether commercial or residential, is a diverse industry that constantly evolves. Specialization and knowledge of current issues are essential to professional success, and these education programs enable Texas Realtors to stay ahead of these issues and better serve you.
Smart consumers need smart Texas Realtors
Today's buyers and sellers are more educated and sophisticated and have higher expectations of their real estate agents, and rightly so.
Earning a designation shows consumers that an agent has gone the extra step. In some cases, designations are even becoming a prerequisite for consideration by some corporate and government clients, particularly in the area of corporate relocation.
Those letters mean specialization
Some designations include proficiency as a buyer's representative, as a land consultant, as a commercial investment expert, as a property manager, as an appraiser or as a real estate brokerage manager. Many Texas Realtors earn several designations to keep as current as possible in particular areas of the real estate industry.
We're number 45
Here's something that may surprise you. Inexplicably, the Lone Star State ranks just 45th out of the 50 states in homeownership. To combat this low number, Texas Realtors may pursue a certification called Texas Affordable Housing Specialist. This certification track is designed to give us the knowledge to make homeownership more attainable and sustainable for our clients.
Get a GRI-p
Another popular designation is the Graduate Realtor Institute (GRI). The GRI is a demanding curriculum that requires Realtors to complete an advanced course track of 90 hours of classroom instruction. There's emphasis on technology, business development, sales and marketing, and critical legal and regulatory issues such as fair housing, brokerage relationships and environmental concerns.
The GRI program is designed to give a deeper understanding of the industry's many nuances.
Here are some of the NAR-endorsed designation and certification programs:
- Accredited Buyer's Representative – ABR
- Accredited Buyer's Representative Manager – ABRM
- Accredited Land Consultant – ALC
- Certified Commercial Investment Member – CCIM
- Certified International Property Specialist – CIPS
- Certified Property Manager – CPM
- Certified Real Estate Brokerage Manager – CRB
- Certified Residential Specialist – CRS
- CRE, Counselor of Real Estate
- General Accredited Appraiser, GAA
- RAA, Residential Accredited Appraiser
- NAR's Green Designation – GREEN
- Seniors Real Estate Specialist, SRES
- Society of Industrial and Office Realtors – SIOR
- At Home With Diversity – AHWD
- e-PRO (technology-related certification)
- Resort & Second-Home Property Specialist – RSPS
- Short Sales and Foreclosures Resource – SFR
- Transnational Referral Certification
For more information about these Realtor designations, visit www.Realtor.org
I also encourage you to go to www.TexasRealEstate.com , where you can find Texas-specific information about real estate and search for a Texas Realtor.
South Padre Island Nov. 12, 2008- The year long process of taking the Laguna Madre Area Property Listing Service to becoming the South Padre Island Board of REALTORS®, serving the Laguna Madre Area, has been an exciting achievement for Lynne Tate, Alta Monroe, Jimmy Parker, Mary Phillip, Troy Giles, Rachel Krypel and Jess Alford, who serve as the Board of Directors for the South Padre Island Board of REALTORS®. The success in forming the South Padre Island Board of REALTORS® would not have been possible without each of their hard work and dedication. This will add a new level of professionalism in the Real Estate industry in our area. Giles, Tate and Alford of the newly formed South Padre Island Board of REALTORS® on South Padre Island, TX were among more than 20,000 REALTORS® attending the 2008 Realtors® Conference and Expo, "Destination Success-Full Speed Ahead," held in Orlando, FL November 7-10.
