Madison WI Real Estate Blog

Attn: First Time Home Buyers - $8,000 Tax Credit

2009 First Time Home Buyer Credit of $8,000

The table below is a brief review of the New 2009 First-Time Homebuyer tax credit. To learn more about how the $8,000 First Time Homebuyer tax credit can benefit you in the purchase of your personal residence contact me or call 608-234-1523.

FIRST-TIME HOMEBUYER TAX CREDIT

EFFECTIVE FOR PURCHASES
JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

Amount of Credit - Lesser of 10 percent of cost of home or $8000

Eligible Property - Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.

Refundable - Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.

Income Limit - Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).

First-time Homebuyer Only - Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.

Revenue Bond Financing - Purchasers who utilize revenue bond financing can use credit.

Repayment - No repayment for purchases on or after January 1, 2009 and before December 1, 2009

Recapture - If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

Termination - December 1, 2009
Effective Date - January 1, 2009

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So how do Realtors work again? I just want to buy a house

If you've ever talked with a Realtor for a length of time about purchasing a home, you have probably had the Realtor bring up the issue of agency disclosure. In Wisconsin, there's buyer agency, seller agency, sub-agency, dual agency, designated agency, and pre-agency. Depending on your situation, one may be better than the other. As a potential buyer in the real estate market you have the choice to decide how you want to be represented during the transaction. Disclosure: I am not a real estate attorney and I am not giving any legal advice in this blog post.

Last week I spoke with a good friend (past client) that sent me a referral for someone looking to buy a condo on the west side of Madison. I thanked her very much for the opportunity to meet this other person about helping to buy a condo. For the purpose of this posting, let's call her Laura (that's not her real name).

I called Laura right away to introduce myself. We discussed our mutual friend and then the conversation led to these condos that she was considering. She has been looking at these particular condos for over a year, but only recently decided that now would be a good time to write up an offer to purchase.

She started to tell me her story. "I've seen them before and I was going to purchase this other one but my Realtor at the time didn't call me back soon enough. By the time we had scheduled the showing, the property already had an offer on it. That's why this person is not my Realtor anymore, and I haven't signed anything with anybody since then."

Okay, I thought to myself, that seems reasonable. I thought I might be able to help. One of the things that I'm required to ask, is if she has a buyer agency contract in place with another Realtor. If she does, that could present some problems.

When you work with a buyer's agent, then you are the agents client. The agent is representing only the buyer and can negotiate strongly for the buyer, offer negative opinions about...