Sunday, August 23, 2009
Tuesday, August 18, 2009
Great Article about the economy in 1951 and how it mirrors 2009 in some ways LakeMurraySC LexingtonSC Time http://ow.ly/ksKw
Sunday, August 16, 2009
Wednesday, August 12, 2009
Negotiating Tips for Buyers and Sellers
NEGOTIATING TIPS
FOR BUYER AND SELLERS
Rule #1:
Do not go back and forth between the Buyer and Seller more than 2 times in negotiating. The 1st round is about the home and getting it sold or bought. The 2nd round it is about money. The 3rd round it becomes about who wins and becomes personal. The end result becomes lost in the negotiating.
Rule #2:
Buyers and sellers must not dislike each other. You must make sure that the agents and the buyers and sellers don't talk about each other. Focus on the putting the deal together.
Rule #3:
Stay focused on the goal of completing the sale. Keep emotions, personality, and personalities away from the transaction. Stay relaxed, cool, calm and collected. Don't let the negotiations and concessions interrupt the goal of the transaction.
Rule #4:
People believe what is in writing. Everything that is negotiated or discussed be put in writing so that there will be no uncertainties. Verbal uncertainties can not be upheld in any court. When things are put in writing make sure they are written with zero grey area, because "Error falls on the Scribner".
Rule #5: When you negotiate concessions make it a two street. If you want something, give something in return. This goes back to Rule #3 and #5. Negotiating can be sometimes considered a team sport. When both sides do some give and take, it makes the negotiating more successful.
Rule #6:
Never respond to negotiating or offers to quickly. This can come off as eager, and anxious. Make all decisions and negotiating done in the time frame of the contract but don't make it seem that is was not cut and dry and simple. Eagerness can make you look weak.
Rule #7:
Never brag or gloat about the terms in the contract or disclose material facts to anyone prior to the closing. This can hinder future negotiating of concessions. Clients are less likely to work with others when they think they received the short end of the deal.
Rule #8:
When you work on a contract and hit a bump in the road or a wall, stop and work the other terms of the contract. You can not try to fix multiple issues at same time. Negotiate through the entire contract and then come back to the bump and focus on one singular issue. It is easier to solve one task at a time.
Rule #9:
Do not loose trust with the buyers,sellers and the agents. Trust can carry allot of weight. When trust is lost, buyers and sellers second guess all negotiating and concessions.
Rule #10:
Never disclose that you have any time pressure. This is a sign of weakness. Work the transaction as if time is not an issue. If you use time as part of negotiations, you say to the other person that you will do what ever needed to get it done in the time frame that you need.
All these rules work don't work all the time. Some of the rules work all the time.
These are not set in stone, but have worked in the past over the last 10 years in the Real Estate Business. For more information contact Edwin Gerace mail@609sold.com or http://www.edwingerace.com/ or follow him on twitter at www.twitter.com/edwingerace
Monday, August 10, 2009
How the homebuyer tax credit works
How the homebuyer tax credit works
Sources: National Association of Home Builders and the Internal Revenue Service
Published: Sun, Aug. 09, 2009 02:00AM
Are you considering a leap to homeownership? Here is some information about the tax credit to help you with your decision.
Q: Who is eligible? Anyone who has not owned a home for the previous three years. The home must be purchased on or after Jan. 1 and before Dec. 1, 2009. For the purposes of the tax credit, the purchase date is when closing occurs and the title to the property transfers.
Q: 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.
Q: Are there income limits? Yes. The limit for single taxpayers is $75,000; $150,000 for married taxpayers filing a joint return. You cannot have a modified adjusted gross income above $95,000 (single) or $170,000 (married), and the credit is reduced proportionally for taxpayers whose modified adjusted gross income is between these amounts.
Q: What is "modified adjusted gross income"? Modified adjusted gross income is defined by the IRS. To find it, 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. AGI includes all income including wages, salaries, interest income, dividends and capital gains.
Q: How is this homebuyer tax credit different from the tax credit that Congress enacted in July of 2008? The most significant difference is that this one does not have to be repaid.
Q: How do I claim the tax credit? Claim it on your federal income tax return by completing IRS Form 5405, then claim this amount on line 67 of your 1040 for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).
Q: I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. Can I claim the new $8,000 tax credit instead? You may file an amended 2008 tax return. Consult with a tax adviser to ensure you file this return properly.
Q: Is a tax credit the same as a tax deduction? No. A tax credit is a dollar-for-dollar reduction in what you owe. That means if you owe $8,000 in income taxes and receive an $8,000 tax credit, you'd owe nothing to the IRS. A tax deduction is subtracted from the amount of income that is taxed.
Q: 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 Jan. 1, 2009, you may qualify for a different tax credit. Consult with a tax adviser for more information.
Q: Is there any way to get the money before filing a 2009 tax return? If you believe you qualify for the tax credit, you can reduce your income tax withholding. Reducing tax withholding (up to the amount of the credit) will allow you to accumulate cash by raising your take-home pay. This money can then be applied to the down payment.
Adjust the withholding amount on your W-4 or through your quarterly estimated tax payment; IRS Publication 919 contains rules and guidelines. If you end up not buying the house, you'll have to repay the IRS income tax and possibly interest charges and penalties.
Q: The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean? It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain down payment and closing cost expenses.
Under the guidelines announced by HUD, nonprofits and FHA-approved lenders will be allowed to give homebuyers short-term loans of up to $8,000.
The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.
Housing finance agencies and other government entities may also issue tax credit loans, which homebuyers may use to satisfy the FHA 3.5 percent down payment requirement.
In addition, approved FHA lenders will also be able to purchase a homebuyer's anticipated tax credit to pay closing costs and down payment costs above the 3.5 percent down payment that is required for FHA-insured homes.
Q: 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 you to choose to treat qualified home purchases in 2009 as if the purchase occurred on Dec. 31, 2008. This means that the 2008 income limit applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns).
If you want to do this but have already filed your 2008 return, you may file an amended 2008 return claiming the tax credit. Consult with a tax professional.
For more information email Edwin mailto:mail@609sold.com
or visit http://www.edwingerace.com/homebuyerseminar
Follow the Home Buyer Semina on Twitter at www.twitter.com/FREEHomeSeminar
Sources: National Association of Home Builders and the Internal Revenue Service
Published: Sun, Aug. 09, 2009 02:00AM
Are you considering a leap to homeownership? Here is some information about the tax credit to help you with your decision.
Q: Who is eligible? Anyone who has not owned a home for the previous three years. The home must be purchased on or after Jan. 1 and before Dec. 1, 2009. For the purposes of the tax credit, the purchase date is when closing occurs and the title to the property transfers.
Q: 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.
Q: Are there income limits? Yes. The limit for single taxpayers is $75,000; $150,000 for married taxpayers filing a joint return. You cannot have a modified adjusted gross income above $95,000 (single) or $170,000 (married), and the credit is reduced proportionally for taxpayers whose modified adjusted gross income is between these amounts.
Q: What is "modified adjusted gross income"? Modified adjusted gross income is defined by the IRS. To find it, 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. AGI includes all income including wages, salaries, interest income, dividends and capital gains.
Q: How is this homebuyer tax credit different from the tax credit that Congress enacted in July of 2008? The most significant difference is that this one does not have to be repaid.
Q: How do I claim the tax credit? Claim it on your federal income tax return by completing IRS Form 5405, then claim this amount on line 67 of your 1040 for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).
Q: I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. Can I claim the new $8,000 tax credit instead? You may file an amended 2008 tax return. Consult with a tax adviser to ensure you file this return properly.
Q: Is a tax credit the same as a tax deduction? No. A tax credit is a dollar-for-dollar reduction in what you owe. That means if you owe $8,000 in income taxes and receive an $8,000 tax credit, you'd owe nothing to the IRS. A tax deduction is subtracted from the amount of income that is taxed.
Q: 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 Jan. 1, 2009, you may qualify for a different tax credit. Consult with a tax adviser for more information.
Q: Is there any way to get the money before filing a 2009 tax return? If you believe you qualify for the tax credit, you can reduce your income tax withholding. Reducing tax withholding (up to the amount of the credit) will allow you to accumulate cash by raising your take-home pay. This money can then be applied to the down payment.
Adjust the withholding amount on your W-4 or through your quarterly estimated tax payment; IRS Publication 919 contains rules and guidelines. If you end up not buying the house, you'll have to repay the IRS income tax and possibly interest charges and penalties.
Q: The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean? It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain down payment and closing cost expenses.
Under the guidelines announced by HUD, nonprofits and FHA-approved lenders will be allowed to give homebuyers short-term loans of up to $8,000.
The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.
Housing finance agencies and other government entities may also issue tax credit loans, which homebuyers may use to satisfy the FHA 3.5 percent down payment requirement.
In addition, approved FHA lenders will also be able to purchase a homebuyer's anticipated tax credit to pay closing costs and down payment costs above the 3.5 percent down payment that is required for FHA-insured homes.
Q: 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 you to choose to treat qualified home purchases in 2009 as if the purchase occurred on Dec. 31, 2008. This means that the 2008 income limit applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns).
If you want to do this but have already filed your 2008 return, you may file an amended 2008 return claiming the tax credit. Consult with a tax professional.
For more information email Edwin mailto:mail@609sold.com
or visit http://www.edwingerace.com/homebuyerseminar
Follow the Home Buyer Semina on Twitter at www.twitter.com/FREEHomeSeminar
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About Me
- Lexington Real Estate with Edwin Gerace
- Lexington, SC, United States
- Edwin Gerace is Realtor with Holiday Builders in Lexington South Carolina. Edwin specializes in New Construction and 1st Time Home Buyers. Edwin is very active in Lexington South Carolina and is knowledgeable about the surroundings. Edwin is very active in his profession and community such as: On active committees with the Columbia Home Builders, active and on committees with Lexington Chamber of Commerce, Town of Lexington Performing Arts Center, Green Building Council of HBA, LORADAC, State Association of Realtors on State and Local Level, and many other community oriented service groups.
