Buy a House. . .Collect $8000 Bucks!

First time home buyers are facing a fabulous opportunity thanks to the American Recovery and Reinvestment Act of 2009.  A key component of this new legislation is a tax credit available to first time buyers.  For those of you unfamiliar with the credit, individuals who have not owned a primary residence in the last three years may be eligible to receive a dollar for dollar income tax credit of 10% of the purchase price of a home up to $8000.  This credit may be claimed in full by individuals whose modified adjusted gross income is $75,000 or less, for married couples filing jointly the income limit is $150,000.  For individuals over these income limits, the tax credit is reduced.

This credit applies to purchases on or after January 1, 2009 and before December 1, 2009 and never has to be repaid. If the home is sold in the first three years after it is purchased the entire credit is recaptured on the sale, but if the buyers live in the home for three years, there is no recapture.  In essence, this is free money available to first time home buyers who are purchasing a home and intend to live there longer than three years.

What many do not know or understand is that the $8000 first time home buyers tax credit can be claimed on 2008 tax returns.  The law allows for qualified home purchases made in 2009 to be treated as if the purchase occurred on December 31, 2008.  Even if the purchaser has already filed his or her 2008 tax return, an amended return can be filed to IMMEDIATELY claim the $8000 credit.

This is a true tax credit, a dollar for dollar reduction in what the taxpayer owes. For example, if you owe $1000 and claim the $8000 credit, you would receive a nice fat check for $7000 as a tax refund.  A qualified tax professional can assist in filing the proper forms to ensure full credit.

First time homebuyers have a unique opportunity.  This newly enacted tax credit, coupled with historically low interest rates and moderately priced housing inventory, has created a great buying opportunity for those who are willing to act quickly.

These Homes Just Need a Little Love

Some things you have to see to believe. . .

I cannot explain what may have caused the droop in this ceiling fan, but every fan in this house was in similar condition!

Or how about this stellar bathroom layout. . .

Talk about creative design. . .there must be some benefit to this particular configuration, I'm just struggling to find it.

With temperatures in the single digits lately, bundling up to tour homes is paramount.  Multilple layers are complimented by a hat, gloves, and a scarf.  Proper dressing keeps frostbite at bay and ensures that I  survive to show homes another day. 

The most interesting bargains in the Joliet area are primarily bank owned homes or REO's.  These properties have been through the foreclosure process and are now being sold by the bank that was the leinholder who foreclosed.  While most have functioning electricity, the vast majority have no gas or water service.  No gas = No HEAT!

That is ice that you see. . .care to imagine how cold it was in this home. . .

On a brighter note, the investor who witnessed me snapping those photos on my trusty iphone scored a deal.  A four bedroom home with a full basement, huge family room addition and fireplace, for $109,900.  All of this in a Joliet neighborhood with comparable properties selling in the $160 - $170K range.  After some minor cosmetic work the home will be a great rental property. 

Some bargains are worth the risk of frost bite.

1217A Cedarwood Dr. Crest Hill, IL

Homes are becoming more and more affordable in today's housing market.  This great townhouse is listed at only $133,900 and features three bedrooms and one and a half baths.  Located in the Colony West subdivision of Crest Hill, this end unit has been remodeled and is ready for a new owner. 

The complex is small and quiet, yet located close to shopping, restaurants, parks and recreation.  This unit features new flooring, lighting and bathrooms.  The air conditioning unit and hot water heater are brand new.  There is nothing to do but move in and enjoy the peaceful surroundings. 

When purchasing a townhouse, you will enjoy a maintenance free lifestyle.  The $115 monthly assessment pays for lawn care, snow removal, exterior maintenance and insurance on the structure. 

Students who live in this complex attend Troy elementary and junior high schools and Joliet West high school.  Bus service is provided.

Call today. . . 815-207-9703 and discover how affordabe this lovely townhome can be.

View additional photos. . .

Are we at the Bottom of the Joliet Real Estate Market Yet?

Everyone wants to know when the bottom of the real estate market will hit and when prices will start to rebound. Well, hand me a crystal ball and I will pinpoint the exact moment in time. . .Buyers get your checkbooks ready, I'm about to tell you the exact moment to make an offer on that Joliet home you have been eyeing. Ready. . . Seriously, economists way smarter than I am are running algorithms and scenarios and charting prices, sales and closing data to try and determine which direction the market is heading. There are loose predictions running around, but they cannot pinpoint the bottom of the market and neither can I.

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Excuse Me -- What is a Short Sale?

With the media focusing so intently on the real estate industry, I am running into people who have questions about some of the things they are reading in newspapers and watching on TV. A common question I am asked is "What is a short sale?" Basically a short sale occurs when the proceeds from selling a home are less than the mortgage balance of that home. In other words, when the home is sold there isn't enough cash to pay the bank off in full. In this circumstance, the homeowner can request that the bank take less than the balance of the loan.

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