First time HOME BUYERS - don't forget to file form 5405

For all of the buyers who have managed to find a home (which seems to be a great feat in this current market) and settle before the deadline of November 30th, 2009 make sure to complete FORM 5405 and submit along with your Tax return in the Spring to benefit from the $8000 credit.

Keep in mind that the credit will have to be repaid to the Federal government if the home does not remain your primary residence for three years following the purchase date.

Lastly, the credit can be claimed on a 2009 tax return, due April 15, 2010. If the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return.

Here is a link to the form needed to file the claim:
http://www.irs.gov/pub/irs-pdf/f5405.pdf

For additional reference please consult the IRS website www.irs.gov and/or your personal accountant.

Market Update: It’s a Great Market to Sell!

If you are contemplating selling, NOW is the time. I have buyers who are actively looking but there is very little well- priced inventory on the market right now. I have clients who are interested in one particular location, and no listings have come on the market there in the last 60 days. (In fact, the number of new listings in Montgomery County for the month of August is down 10.5% from last year, according to MRIS statistics.)

I am taking a pro-active role in meeting my buyer’s demands, and have been calling owners and sending out notes to see if they are considering selling their home. It is an unusual position to be in, (a buyer’s agent soliciting listings for my client to buy) but that’s where we are in this market.

Though there is no real way to track the number of active buyers in the market, I can say based on my personal experience as well as my colleagues’ experiences that there are more buyers looking for homes right now than there are good homes. We attribute this to several factors, including the low interest rates and the $8,000 first-time homebuyer federal tax credit. Some highly qualified buyers are still trying to take advantage of this credit, but time is running out. The legislation expires on November 30, and at this writing we have no indication that Congress will extend it.

The moral of the story is, if you have been contemplating selling, now is a great time. Buyers are looking to move in before the holidays and before the tax incentive expires. A good agent will show you how to price your home well and how to stage the property so that its best features are maximized. If you don’t have a good agent but are interested in pursuing your selling options, please don’t hesitate to contact me. In today’s market your home will sell faster than you think!