Wendy K Team's Blog

It’s Back! The Homebuyer Tax Credit Extension – Frequently Asked Questions

Cheryl Knowlton — Sat, 07 Nov 2009 19:30:27 +0000

Hurray for the National Association of REALTORS and their hard work in helping to get the Homebuyer Tax Extension passed! Because this program is a bit different, NAR has answered some of the most common questions about this new program. Check them out:

NAR Frequently Asked Questions – Homebuyer Tax Credit Changes

National Association of REALTORS

Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit

Question: Existing homeowner credit: Must the new house cost more than the old house?

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who

meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a

new home. I have lived in my current home for more than 5 consecutive years and

am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the

time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a firsttime homebuyer but was not within the prior income limits at the time I

entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income

limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill.

The income limit and other eligibility rules will look to your status as of the date of purchase,

which is the settlement date. So if the new rules have been signed when you go to settlement,

you should be eligible for the credit (or a portion of the credit if you’re within the phaseout range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I

have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax

credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount

above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting

since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility

tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8,

you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000

and lived there until 2008 when he got a divorce. Whether John has been renting or bought in

the interim, he WOULD INDEED be eligible for the credit because he owned a home and

occupied it as his principal residence for 5 consecutive years out of the last 8 years. The

keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he

did since 3 years doesn’t impact eligibility.

Question: I am an eligible firsttime homebuyer. I entered into a contract to purchase on

November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect

me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be

as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst

case), the purchaser will be eligible for the credit. (Source: www.realtor.org)

If you still have questions or are eager to take advantage of this great new tax credit, give us a call!

Saratoga Springs Housing Data – How Much Have Things Changed?

Cheryl Knowlton — Sat, 24 Oct 2009 22:00:06 +0000

Have you wondered how many homes have sold this year in Saratoga Springs? Are prices dropping, or are things getting better?

Here is a comparison of housing data from 2003 – 2009 for you to use in creating an educated opinion. Enjoy!

Saratoga Springs -
Residential Unit Sales
All data is from the Wasatch Front Regional Multiple Listing Service.
It does not include transactions in which a REALTOR was not involved.

2003
	Units Sold	Median Price	Average Price
1st Quarter	24	$174,900	$230,782
2nd Quarter	31	$172,950	$198,217
3rd Quarter	39	$158,875	$194,154
4th Quarter	36	$161,100	$166,717
Total Year	130	$164,000	$194,287

2004
	Units Sold	Median Price	Average Price
1st Quarter	26	$161,000	$156,636
2nd Quarter	36	$170,900	$183,549
3rd Quarter	63	$171,995	$188,798
4th Quarter	50	$165,595	$197,648
Total Year	175	$165,595	$185,534
Change	35%	1%	-5%

2005
	Units Sold	Median Price	Average Price
1st Quarter	44	$190,447	$211,643
2nd Quarter	65	$166,195	$194,267
3rd Quarter	85	$178,342	$192,964
4th Quarter	86	$207,990	$225,918
Total Year	280	$188,425	$205,779
Change	60%	14%	11%

2006
	Units Sold	Median Price	Average Price
1st Quarter	84	$217,000	$217,882
2nd Quarter	92	$236,120	$257,110
3rd Quarter	120	$264,900	$279,806
4th Quarter	112	$257,061	$277,746
Total Year	408	$245,000	$261,374
Change	46%	30%	27%

2007
	Units Sold	Median Price	Average Price
1st Quarter	95	$234,250	$246,604
2nd Quarter	77	$271,450	$289,541
3rd Quarter	114	$249,900	$267,398
4th Quarter	53	$219,750	$253,531
Total Year	339	$242,075	$264,269
Change	-17%	-1%	1%

2008
	Units Sold	Median Price	Average Price
1st Quarter	64	$231,400	$246,860
2nd Quarter	77	$245,700	$260,174
3rd Quarter	79	$251,800	$273,648
4th Quarter	29	$237,000	$260,636
Total Year	249	$241,350	$260,330
Change	-27%	0%	-1%

2009
	Units Sold	Median Price	Average Price
1st Quarter	63	$229,000	$231,422
2nd Quarter	142	$238,000	$239,138
3rd Quarter
4th Quarter
Total Year	205	$233,500	$235,280
Change	-18%	-3%	-10%

Only 876 Utah Housing “Home Run 2″ Grants Available!

wendykteam — Sun, 18 Oct 2009 14:44:24 +0000

Did you know that Utah Housing Corporation announced last month that they are offering another wonderful $4000 Grant to Utah Home Buyers?

Did you think this Grant is for First Time Home Buyers only? IT IS NOT!

Read on for more information:

What is the $4,000 Grant?
The grant is a mortgage assisted program to help homebuyers purchase a newly constructed residence in Utah using a 30-year fixed rate mortgage.

Who is Eligible?
Any single person making $75,000 or married couple making $150,000 purchasing a newly constructed home in the state of Utah as their primary residence.

How do you Apply for the Grant?
We can guide you to approved lenders who will guide you through the steps to apply for the grant.

What type of Loan is Required??
New home buyer must qualify with one of several 30-year fixed rate loan programs. Examples would be conventional, FHA, VA or Rural Housing.

UDOT Moves New I-15 Bridge Into Place in American Fork

wendykteam — Sat, 17 Oct 2009 19:05:54 +0000

What fun!!

Last night at approximately 9:30pm, I happened me be in American Fork, right near where UDOT was preparing to move the first of the I-15 Diamond Interchange Bridges into place. There was a festive, party-like atmosphere. The public was invited to watch, and hot chocolate and hot apple cider were served. I have never witnessed anything like it! The plan was to begin to slide the North-bound bridge into place at 10:30pm. They anticipated the process would take 4 hours.

You didn’t miss out on ALL of the fun. They will be repeating the process Sunday night at 10:30pm to move the bridge connecting the other side into place. Come on down and join the fun! (But you might want to bring a coat and a chair.)

Here is more information on it from UDOT’s web site:

Bridges will be Moved into Place at I-15 in American Fork

The Utah Department of Transportation (UDOT) will be replacing two bridges on Interstate 15 in American Fork and one on Interstate 80 at 2300 East in Salt Lake City requiring overnight closures.

Recreational, hunters and weekend travelers are advised to plan for the closures and detours to avoid inconvenience.

The bridge replacement projects employ Accelerated Bridge Construction (ABC) and encompass building the new structures next to the existing bridges and then moving them into place. The two I-15 bridges will use Self Propelled Modular Transporters (SPMTs) and the I-80 bridge will use a sliding technique. These approaches allow each bridge to be replaced in days rather than six-to-nine months required for traditional construction.

The following is a brief description of the bridge replacement closures:

I-15, American Fork Main Street

I-15 northbound and southbound at Main Street in American Fork will be closed from Friday, Oct. 16 at 10 p.m. through Saturday, Oct. 17 at 8 a.m. to replace the American Fork Main Street Bridge over I-15. Traffic will be diverted through the interchange’s off- and on-ramps. Motorists should expect heavy delays.

I-15 southbound at Main Street in American Fork will be closed from Sunday, Oct. 18 at 10 p.m. through Monday, Oct. 19 at 6 a.m. to finish replacing the American Fork Main Street Bridge over I-15. Southbound I-15 traffic will be diverted through the interchange’s off- and on-ramps. Motorists should expect heavy delays.

To avoid heavy delays, southbound traffic may use Lehi Main Street exit and northbound use 500 East exit in American Fork reconnecting with I-15 after the closure area.