Agents who seek to be informed will find a wealth of knowledge provided GAR.  Information is value in the modern era of real estate and consumers appreciate unbiased fact filled information to help them make the decision to buy or sell a home.

Consumers will find a better understanding of the REALTOR trade organization and the many benefits they are afforded by the actions of GAR Advocacy in Local, State, and National Politics.

Price:  $139,900

Address:  500 Ashland Parkway, Woodstock, GA  30189

Each week, I am picking a sweet Home deal in the Woostock area.
The deals are chosen based off the following criteria:

• Attractive price for today’s top buyer pool
• Quality of finishes, style and character
• Ease of projects to make move-in ready.
• Proximity to shops, restaurants and neighborhood amenities

For buyer representation on any of these homes, please contact Mike or Heather at opendoor@maxsell.net. We can have you inside within 3-10 hours of your inquiry!

Good morning,
I would like to communicate the outstanding work Sydney has done as our realtor. It was a long tough ride dealing with the obstacles on our house purchase. She kept me going when times were tough and was at my call Sunday thru Sunday any day of the week any hour. She is by far fantastic to work with. I will be sending her name to anyone I know interested in buying a home.

– Sherri S.

Of course it means everything to us that our agents are stellar but it’s the 1 client in 10 who goes out of their way to give extra praise.  Thank you Sherri for doing so and giving your permission to use the testimonial.

Most REALTORS stay in the business because they are driven to be a super-hero.  They enjoy the challenge of negotiating obstacles, they shoulder the burdens of a transaction to keep clients excited, and the only cherished reward is hearing a client say, “I could not have done it without you.”

Congratulations Sherri on your home purchase.  Congratulations Sydney Ray Dalton on a job “Well Done”.  Congratulations North Group for employing a great buyers’ agent.  Maxsell loves you all!

Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500.  They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Other details include the price of the house being capped; no credit is available for any home costing more than $800,000.  The actual tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000 for first-time buyers or $6,500 for move-up/repeat buyers.  All taxpayers who claim a credit must use the home as a principal residence for the next three consecutive years.  Taxpayers do not qualify for a credit if they buy from a lineal ancestor or descendant, including parents or grandparents and children or grandchildren.

Our own United States Senator, Johnny Isakson, shared these words in a recent email, “I realize cost is a great concern as our nation faces unprecedented debt levels. During negotiations on this tax credit, I insisted that the extension and expansion be paid for so that it will not add to our debt. I believe home sales not only stabilize the housing market, they boost our overall economy.  Research shows each home sale has a positive economic impact on our overall economy. By restoring Americans’ equity in their homes, we increase American consumer confidence and optimism.  I believe this tax credit will swiftly help our economy get back on track.”  Closings have certainly increased in our office and perhaps this is just the next step in the American recovery.

MORE RESOURCES

PDF detailing the Homebuyer tax credit changes fromt he National Association of REALTORS

You can also listen to the NAR President’s podcast about the changes:  Special+Edition+Presidents+Podcast_110509

If you are interested in taking advantage of these tax credits, please contact us at 678-741-2060 or info@maxsell.net

I asked, “What kind of agent am I?” Do my clients see me as straightforward and no frills; or is it that I provide a great value and creative/comfortable service; or is it because I am the Big Brand of success, imperfections and all. I admit, the answer to my question is of little or no national importance but it does beg the question: What kind of agent do you want to be? Clients: What type of agent are you looking for?

Agent Dunkin

Client: “I’ll take a Medium Coffee and a Cake Donut.”

Agent: “That’ll be $2.50, please.”

Client: “Thanks. Do you have Wifi here?”

Agent: “No. In order to keep our prices as low as possible, we need to make it up in volume. Can’t have folks sitting around here for hours takin’ up the booths. You understand, right?”

Client: “Uh huh? Pretty Basic but I get it.”

Agent Carribou

Client: “I’ll take a Medium Coffee of the Day and a Blueberry Muffin.”

Agent: “Thank you. That’ll be $4.18, sir.”

Client: “Do you have Wifi here?”

Agent: “Absolutely. It’s Free. Just go to your browser to access the web. Feel free to sit and work at our tables inside or on the patio.”

Client: “Awesome. Very convenient, yet practical. Thanks.”

Agent Starbucks

Client: “I’ll have a Venti Cinnamon Dolce Latte Skinny with Sugar-Free Syrup and a Marionberry Scone.”

Agent: “That’ll be a Venti Cinnamon Dolce Latte Skinny with Sugar-Free Syrup and a Marionberry Scone?”

Client: “Yes. Thank You. Do you have free Wifi in the store?”

Agent: “Well that depends. We have Complimentary Wi-Fi for Starbucks customers…when you register your Starbucks Card and use it at least once a month…you’ll receive two consecutive hours a day of complimentary Wi-Fi, courtesy of AT&T; Or, complimentary Wi-Fi for AT&T DSL customers because AT&Ts more than 12 million DSL customers already qualify for free Wi-Fi at their neighborhood Starbucks; Or, all other customers can receive two consecutive hours of Wi-Fi access for $3.99. Either way, you can use any of our couches, loungers, or cushy chairs to conduct business at you leisure, either inside or on the patio.
Oh, by the way. You can download music through a free Wifi sponsored by iTunes. Normal song prices apply. Unless you purchase the song of the week by using the promo code on this card.”

Client: “Uhh…OK…Uhh…Sounds Great! I think. Not sure what just happened but my head hurts, must need caffeine. How much do I owe you?”

Agent: “My apologies sir. That will be $6.84. Thank You for visiting Starbuck’s.”

Just for Fun

I am “Not” knocking any particular agents, brokers, or brands; just having some fun with expectations and delivery. After all, if your home sells quickly and at a price you are satisfied with, comparatively speaking, almost any coffee and carbs will do, right?

Best regards,
I. B. Carribou

1. Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

2. What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4. Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000
(single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

5. What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

7. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances.
You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

9. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

10. What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

11. I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program.
Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.

16. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.

17. Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed.
Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Visit the National Association of Home Builders’ Web site www.federalhousingtaxcredit.com for more information.

19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008.
This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Source: National Association of Home Builders (NAHB) www.federalhousingtaxcredit.com

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You can reach Terri Cagle of New South Federal Bank at 404-386-9183 (tcagle@newsotuhfederal.com)

Choosing an Atlanta condo makes a great deal of sense to many people. And in today’s Real Estate market there are more choices than every before. From the newly built to the older apartments that have been converted, they are as diverse as the prospective Atlanta buyers who are considering them. You can find Atlanta condos in all price ranges, but they usually offer a more economical alternative when compared to Atlanta single-family homes.

Your finances may not allow you to purchase an Atlanta single-family home, but a condo might allow you to stop paying rent and move closer to that ultimate goal. Many Atlanta condos offer shared resources that might include a swimming pool, exercise facilities, community rooms or other amenities. The lure of no or minimal upkeep is also attractive.

Of course there are advantages and disadvantages to owning an Atlanta condo. You will have to consider many factors and hopefully the following will point out some of them.

Positives of owning a Condo

A quick rundown of the why a condo might work for you:

• A condo may be more attractive at certain stages in your life. Singles, newly weds, and retirees find they work very well because they allow you to have the security of ownership while having more time to “get on with life”. Instead of paying rent you are investing.
• Condos are usually more reasonable than their single-family counterparts.
• You can still be king of your castle – your interior choices are yours to make with few limitations.
• Condos are often located in a central area with easy access to thruways, and/or public transportation.
• Unlike apartments, condos have an association that maintains all common areas – so no more lawn mowing or shoveling snow for you! They also make handle repairs to the roof, decks, hallways etc., leaving you responsible for repairs to only your interior and mechanicals. Many condos include cable and internet access.
• There are condos that have added security or is part of a gated community.
• If shared amenities are important to you, choose one that features a swimming pool, exercise room etc.
• Since the 1980’s there has been a boom in the building of condos, so they reflect the features that are important to today’s buyers.

Negatives to Atlanta Condo Ownership

Now for what many consider to be the downside of owning a condo:

• As in apartments, you will have some common walls.
• Many do not have a garage or adequate storage.
• Association dues. These are assessed on all condo owners and are used to finance repairs and maintenance. Depending on the condo they can go from $50 to $350 per month.
• You are living in closer confines than in a single family. But if you are now renting, it will be a similar experience.
• In a buyer’s market they are more difficult to sell, and they grow in value at a slower rate than a single-family home.
• Some condo associations allow owners to rent out their unit, while others do not. Living next door to a renter might be a different experience than living next to an owner.

The best advice is to thoroughly research an Atlanta condo before buying. No sense in buying a condo that allows pets when you dislike dogs. The same holds true if you are over 60 and find children irritating. No sense in paying increased association dues for a swimming pool, spa and exercise facilities if you are a couch potato. There are so many Atlanta condo’s – be sure that you find the one that represents the best value for your circumstances.

Additional Articles of Interest:

• Quality Growth
• Understanding the Fannie Mae & Freddie Mac Bailout
• Atlanta Investing Guide

The Housing and Economic Recovery Act of 2008 was recently passed and it included many positive things for buyers and sellers of real property. Many real estate bloggers have covered this topic (view blog search results), but Dan Green brought to light one of the biggest downsides to the new act.

As he found buried deep on page 690 of the 694 page law an important change to the Capital Gains Exclusion rule that could cost home sellers across the country.  Dan said…

“Under the former Capital Gains Exclusion rule, home sellers could claim $250,000 of home sale profits tax-free ($500,000 if filing jointly) provided they physically lived in the home for 2 of the previous 5 years. Savvy real estate investors exploited this tax rule by moving between residences every two years.

Even “regular” homeowners were coached to stay in their homes for at least 2 years for tax reasons.

Under the new Capital Gains Exclusion rule, however, this sort of tax-minimizing behavior is rendered impractical. The new Capital Gains Exclusion formula is not an all-or-nothing proposition. Instead, it’s a ratio.

In other words, if a home seller occupied a property as a primary residence in 2 of the last 5 year, under the new system, he would be entitled to 40% of his capital gains tax-free versus 100 percent of those gains before the new housing law passed.

The effective date for the new Capital Gains Exclusion rules is January 1, 2009 so homeowners selling in 2008 are exempt. “

Here is the formula:

Here is a sample equation:

You bought a home in January 2004 and paid $500,000.  This has been your primary residence until this year, January 2008, when you bought another property and moved your primary residence.  Say you sell your original property next year, January 2009, for $600,000.  Your capital gains formula:

1460 / 1825 = 0.80 x $100,000 = $80,000 Capital Gains Exclusion

1460(365 days x 4 years) / 1825(365 days x 1 year) = 0.80 x $100,000 ($600,000 – $500,000) = $80,000

Which means you would pay capital gains tax on $20,000.  Capital Gains Tax is currently at 15%, so you would pay $3,000 in new taxes that you would have avoided prior to this new law. *Please note this does not account for the state portion of capital gains, In Georgia that would be an additional 6% of the gains or $1,200 for a total of $4,200 in taxes on the gain.

It may sound like a small number when you profit $100,000 to only pay $4200, but what happens if the new government leaders change the Capital Gains Rate? This rate has been as high as 45.5 percent in the past.  This is not good for future sellers of real estate.