First Time Homebuyer Credit Extended

Federal legislation passed this month extended the $8,000
federal income-tax credit for first-time homebuyers
and added a $6,500 credit for qualified repeat buyers and raised qualifying income limits for buyers of homes that closed Nov. 7 or later.

The credit applies to purchases of new or existing primary homes. For both first-time and replacement homes purchased Nov. 7 or later, the purchase price cannot exceed $800,000.

First-time homebuyers can receive a credit worth 10 percent
of the home"s purchase price, up to a maximum of $8,000. A first-time homebuyer is someone who has not owned a home in three or more years.

Qualified repeat buyers can receive a credit worth as much as 10 percent of the replacement home"s purchase price, up to a maximum of $6,500.

The full credit amount is available to single taxpayers with
an annual adjusted gross income of as much as $125,000
(credit phases out for incomes of $125,000 to $145,000) and married couples filing jointly with annual adjusted gross income of as much as $225,000 (credit phases out for incomes of $225,000 to $245,000.)

As we enter into the holidays, it is a great time to think about making that home purchase. Traditionally real estate slows down as many focus on the family and get busy with other things. However, the months of November, December and January can be the perfect time to jump into the market. The advantage of less competition is huge as the banks continue to have a need to sell off homes in Ventura County.


For information on local Ventura County Bank Owned Homes and Foreclosed Homes visit my website at:
http://www.Venturahomesforsale.org

Property Tax Impact in Today's Market-Something You Should Know!

I recently talked with another agents clients who exclaimed that they did not realize they would owe $6000 in taxes on a home they just purchased for $320,000! In todays market many buyers are purchasing homes for less than what the Ventura County Assessor shows as current market value on the tax roll. When a property is purchased and goes into escrow, the escrow company will be prorating property taxes based on the market value shown on the current tax roll. This is very important to understand because if the house that your client just purchased for $320,000 is a bank owned home and is now selling for $320,000 but previously sold for $550,000 several years ago, the assessor may very well have a tax base on the assessment roll of 1% of $550,000 (or approx. $5500 per year.). If so, then the buyer will be prorated on the $5500. HOWEVER, due to the subsequent supplemental tax roll one time billing for new purchases, this property will be reassessed at the lower market value (as of the date of purchase) and a prorated refund will be issued through the supplemental tax billing process.

It is extremely important to realize that your buyer will be out of pocket the extra amount until the new assessment is processed and the refund issued. This process can take up to a year. A phone call to the local assessor could help speed the process by bringing attention to your individual property. Also, remember all requests for reassessments are FREE!! Many people are receiving deceptive solicitations by mail requiring a fee for reassessment. Tell your clients not to be mislead by these official looking offers for tax relief.

Helping with all your Ventura Real Estate needs and Homes for Sale in Ventura!
Ventura Real Estate is HOT right now...multiple offers. Get into action BEFORE rates go up!!

Hope this information helps! For current real estate listings in Ventura County check out:

www.Venturahomesforsale.org