Indianapolis, IN Area Real Estate Blog: Carmel, Fishers, Geist, Noblesville, Westfield, Indiana

Recently one of my past clients contacted me asking about the value of the home he had purchased in Carmel. He bought it last fall for $457,000. He called after seeing its zestimate (estimated value) on Zillow for only $275,000! This is one of the more extreme examples I’ve seen on Zillow zestimates being way off the mark.

Automated home valuation systems such as Zillow base home values off of public data much of which is incorrect or incomplete. As many of us learned in our first computer science class “garbage in, garbage out”.

If you are going to be buying a home and want an estimate of its value, contact me @ Jim@HowToBuyAHome.com. As your Realtor, I’ll not only provide an estimate, but what I based it on.

Now is the time for 1st time home buyer’s to purchase the home in Carmel, Fishers, Westfield or Noblesville that they have always wanted with the help of "Uncle Sam" and the 50% Buyer Rebate from HowToBuyAHome.com inc.

First Time Home Buyer Tax Credit
(as modified by the American Recovery and Reinvestment Act, February, 2009)

Have you been thinking about buying but have been unsure of the right time? With the recent modification of the First Time Home Buyer Tax Credit by the American Recovery and Reinvestment Act, low interest rates and the generous Rebate from HowToBuyAHome.com inc. now may be your ideal window of opportunity to buy the home of your dreams. In addition to the $8000 tax credit and the 50% Rebate you have access to an abundant supply of homes from which to choose and affordable low interest financing.

What is the First Time Home Buyer Credit?
On July 30, 2008, a major housing bill (H.R. 3221) was signed into law. The law created a new, temporary tax credit equal to ten percent of the qualified home purchase price, with a maximum credit of $7,500. In February 2009, with the passage of The American Recovery and Reinvestment Act the maximum credit is increased to $8,000 and the repayment of the credit is no longer required for home purchases on or after January 1, 2009 and before December 1, 2009.

Who is eligible?
A first time home buyer is defined as a buyer who is a U.S. citizen who files a tax return and who has not owned a principal residence in the previous 3 years. The eligible property includes any single family home that can be used as a principal residence including a condominium. To qualify the buyer must close on the sale of the home between January 1, 2009 and before December 1, 2009.

Are there income limits?
Yes. Individuals whose Form 1040 filing status is Single (or Head of Household) are eligible for the full credit if their income is no more than $75,000. Individuals who file a Joint return may have income of no more than $150,000. A partial credit is available for income above the limits and is completely phased out when income reaches $95,000 for individuals ($170,000 joint return).

When will I receive the credit?
The credit reduces your income tax liability for the year in which you purchase the home. First time home buyers who close on their new home on or after January 1, 2009 and before December 1, 2009 will receive the tax credit when they file their 2009 tax return in 2010. The credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. In such instances, the taxpayer will receive a refund check from the government.

How is the tax credit repaid?
No, with the passage of The American Recovery and Reinvestment Act there is no repayment for purchases on or after January 1, 2009 and before December 1, 2009.

What if I sell the home?
If the homeowner sells the home within three years of purchase, the entire amount of the credit would be recaptured at the time of the home sale. This applies only to homes purchased in 2009.

Now that you have the knowledge, take the next step to home ownership - contact Jim Cadwalader @ 317-446-1605 or jim@howtobuyahome.com for your personal consultation about the buying process.

Consult a tax advisor about your individual situation. This information is not intended to provide legal or tax advice nor should it be relied on as such. Please seek the advice of your own legal or tax professional.

How can you get money back when purchasing a home in Carmel, Fishers, Westfield or Noblesville by using Jim Cadwalader with HowToBuyAHome.com and a 50% Commission Rebate as your Realtor?

It is very simple; the first $100,000 of the purchase price has a commission rebate of 25% and anything after that has a straight 50% commission rebate. For example, if you purchase a $400,000 home and the commission paid to the Realtor is 3.5% of the purchase price you would receive a rebate of $6,125. Let me show you how.

First $100,000 x 3.5% = $3,500 (Commission)
$3,500 x 25% = $875 (commission rebate to Buyer on 1st $100,000)

After the 1st $100,000

$300,000 (Remainder of the purchase price) x 3.5% = $10,500 (Commission)
$10,500 x 50% = $5,250 (Commission rebate on remaining $300,000)

Total rebate on $400,000 home with a 3.5% Commission:

$875 = $5,250 = $6,125.

In this Real Estate market you need to keep an eye on every penny while at the same time making sure you receive the services of an experienced Realtor throughout every step of the of the buying process. If you think this kind money should be in your pocket instead of someone else’s, give Jim Cadwalader a call.