Life in Newtown, CT

Homebuyer Tax Credit Extension  The $8,000 homebuyer tax credit for first-time buyers has been extended through April 30 of 2010. In addition, buyers will have an additional two months, until the end of June, to close. So, first-time buyers who are in process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. It also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in previous law.

The new legislation also makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

First Time Homebuyer Tax Credit Information

• From the IRS
• From the National Association of Home Builders
• From Connecticut Home Mortgage

Amount of Credit:  Ten percent of the value of home or $8,000, whichever is less. For existing homeowners it's $6,500.

Refundable:  No "repayment" required, unless home is sold within the first three years.

Eligible Property:  Any owner occupied, single-family residence (including condos, co-ops) that will be used as a principal residence. The purchase price of the home is capped at $800,000 in both instances.

Who's Eligible?  First time homebuyers as defined below and existing homeowners who have lived in their current residence for five of the prior eight years.

Definition of First Time Homebuyer:  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.

Income Limit:  Full credit is available for individuals with modified adjusted gross of no more than $125,000 ($225,000 on a joint return).

Deadline:  April 30, 2010 to be under contract. June 30, 2010 to close transaction.

It's a great time to buy a home.  To take advantage of the homebuyer tax credit extension, give us a call today at (203) 470-9818 or email us.

Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
www.connecticuthomesforsale.com
Cell - (203) 470-9818

When Bob and I first started our real estate careers, older Realtors in our office gave us loads of advice.  The one piece of advice that sticks in both our minds is about the three most stressful things in life:

1. Getting Married
2. Getting a Divorce
3. Buying a House

I've always thought there was quite a bit of truth to this as I have personally experienced #1 and #3.  The stress of getting everything perfect and not forgetting someone or something when we got married just about put me over the edge.  I remember when I had to order the flowers with my raging fever and ear infection, I started crying when I showed up to the florist and he wasn't there.  I called my soon to be father-in-law and he helped me with selecting the flowers.  It was awful.

We've owned a few homes over the years and every time we've moved, I have thought that "we've done this before - it won't be too bad this time".  Wishful thinking on my part!  Some unforeseen event always happens.  Like when we moved from New York to Newtown, CT, we decided NOT to use a moving company.  Big mistake!  After 7 moving trucks ... each moving truck was large enough to move a 4 bedroom home ... we were thoroughly stressed out and exhausted.  One night, we had to sneak our Rottweiler, Auggie, into a motel room for the night.  In the middle of the night, he started to bark because the people in the next room made noise!  LOL

OK - Getting back to real estate:  Over my career as a Realtor, the list of the three most stressful things in life comes to mind often.  Getting married and getting divorced are both life changing events.  Many times, people need to change their home because of a life changing event.  Many first time homebuyers live at home with their parents or in an apartment.  When they are planning on getting married, they want a place of their own to call home.  With a divorce, it is usually the separation of marrital assets that causes a home to be sold and then both parties must find a new place to live.  A life changing event is stressful enough, but add selling and/or buying a house to the list and it can create a very stressful time in one's life.

How can you keep your stress level down?  Depending on who you speak with, you'll get different information on how to choose a Realtor.  That could be a entire blog post in itself!  I do suggest that prior to choosing a Realtor, think about what you're doing, think of how you want your Realtor to help you and decide not to get on the "real estate rollercoaster".  The "real estate rollercoaster" is following the highs and lows of the transaction - elation:  making an offer and negotiating - not coming to terms: complete and utter devastation on not getting the home of your dreams.  It's tough not to get on the real estate rollercoaster, but you can do it if you set your mind to it!

Posted by: Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
www.connecticuthomesforsale.com