IRS Tax Credit Rejections

If you have been notified by the IRS that your being rejected for the first time buyer claim you submitted, possible due to you using a form 1098 Mortgage Interest Expense sometime in the past, you need to respond to the notice as soon as possible.  Many times the notice has been sent out by the IRS to applicants due to an interest deduction used for a timeshare, mobile home, a boat or other recreational property and will, in fact, not affect its intended usage for a first time home purchase, but you have to let the IRS know this as soon as possible.  Here is some advice direct from an Enrolled Agent:

*Respond to the IRS immediately and tell them why their rejection is wrong. Be prepared to prove that the mortgage the IRS is seeing isn’t on a personal residence. First-time home buyers are entitled to own other types of real estate and still get the home buyers credit, so provide proof that the previous mortgage was on something else.

*Send a letter explaining the situation and providing proof of a previous rental or other non-ownership living situation, including copies of rental contracts for the last three years, an old driver’s license showing that address, utility bills, etc.

*Home buyers who believe the IRS may view their situation in this way should be proactive, providing proof that they are a first-time buyer when they initially filed for the credit.

*Anyone who is rejected after two attempts to explain the problem to the IRS should call the Taxpayers Advocate Service toll-free, (877) 777-4778, their Congressman, and their Senator.

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Extending the Tax Credit Deadline

The U.S. Senate voted Wednesday, June 17th,  to extend the home buyer tax credit closing deadline to Sept. 30, giving an estimated 180,000 buyers who met the contract deadline of April 30 extra time to close the transaction. The extension was added to a bill to pay for jobless benefits, which still must pass.  It has been estimated that one-third of qualified applicants have been notified that they will be unable to close by the deadline. The Mortgage Bankers Association says delays are caused largely by the huge volume of transactions being processed.  The overall bill, once it passes the Senate, must be approved by the House. The Senate version would extend the time to close to Sept. 30, 2010.

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Landscaping Tricks That Wow Buyers

In today’s market, sellers have to work harder to persuade buyers that their property is worth considering.  Here are 6 tips to help WOW buyers:

• Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. It’s best to use one or two and repeat them.
• Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade.
• Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care is given to the property.
• Light up the outside. Good illumination allows buyers to see a home at night and adds drama.
• Let them hear the water of a small fountain or water feature in the front yard.
• Use decorative architectural elements, like a new mailbox, planted window boxes, etc. Colors should complement the landscape and the home, however, just don’t overdo it: Too much can seem like kitschy lawn ornaments.

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The Fabulous Front Porch

How many of us remember when everyone in the neighborhood came out of their houses, usually right after dinner,  and sat on the front porch to wave and talk to their neighbors as they walked up and down the sidewalk in the evenings and on Sundays?  Even people driving by would wave or even stop to talk to a neighbor rocking in the chair on their front porch. Those were the days when everyone in a neighborhood all knew each other and watched out for one another.  Ah, the good ole days.  But then along came rear yard patios, and bar-b-ques, and over time, the good ole front porch disappeared from our neighborhoods.  All neighborhood socializing became private, and you only went to the neighbors house if you were invited to come over for a bar-b-que or to go swimming or whatever, but neighbors became distant and they all became mostly strangers,  and the days of everyone knowing everyone in the neighborhood was gone forever.  Or was it?

Front porches are coming back big time.  Does that actually mean that people will start talking again with their neighbors?

Kids today have no idea of the fun everyone had, especially during the summer, when neighbors would invite neighborhood kids to come and run thru the sprinklers on a hot afternoon or hot evening.  The hot air and the sweet smelling flowers and fresh cut lawns made this a wonderful and unique growing up experience.

There is a front porch revival today that encompasses the whole country and people are wanting front porches restored on the older homes and built into the newer homes.   This renewed interest in having a front porch works right in with a want for compactly designed and pedestrian-friendly communities, the kind of neighborhood blocks where you chat with your neighbors. A row of front porches encourages those casual conversations.

Its called the New Urbanism.  Generally, porches are considered an asset today and buyers are looking for homes with front porches, whether its an older home or new one.  When you talk to people about neighborhoods, their favorite neighborhoods in the United States are comprised of front porches that are part of the design of the house.

Renovating a home’s front porch can definitely boost its chance of selling fast and at a better price.  The name of the game is to provide a warming, welcoming atmosphere on the front porch, as this is part of the first impressions a buyer will get coming into a home for sale.

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Why Cleaning and De cluttering is important to sell a Home

One of the easiest and most cost-effective steps when selling a home is the cleaning and de cluttering process that we all face when preparing our home to put it on the real estate market today.

Cleaning and de cluttering are the two most overlooked areas when preparing a home for sale. ‘Home Staging Resources’ conducted a study on the costs and the resulting benefits of staging and found that spending just $200 – $300 on cleaning and de cluttering alone resulted in an increase of $1,500 – $2,000 in the sale price, and that translates into a 578% return on investment.

In addition to being turned off by the condition of a home, potential buyers see a dirty house as evidence that the owners didn’t maintain the home like they should have. The condition of a home is especially important during a seller’s market, which is when there are more homes available than there are buyers to purchase them. Buyers have a wide choice of homes today to choose from and can afford to be discriminating. Messy homes make buyers think about all the work they will have to do when they move in. Moving is stressful enough.

Before listing a home for sale, sellers must do a thorough cleaning. If this is really an issue, it is worth the money to hire a professional cleaning company take care of this.  A thorough cleaning includes the basement, garage, outdoor spaces and all those places where people tend to hide things, such as under the bed or in the closets. There can be no shortcuts here. Get behind and under furniture and especially under the kitchen appliances. And don’t forget the windows, as clean windows let in lots of light. While cleaning, make sure to wash draperies and carpets.

Get rid of any excess window treatments to allow lots of light into rooms.  As spaces are cleaned, items can be thrown away, set aside for a garage sale, or packed away.  Remove all unnecessary items from surfaces, especially the kitchen and bathroom counters.

Next, take a good look at the amount of furniture in each room.  Be careful not to go to the other extreme and make the home cold and bare.

A properly staged home will sell quickly and won’t result in months of rental or storage fees. The improved sale price will more than cover the costs. If storage is just not possible, a last resort is to pack belongings in boxes and store them neatly in one section of a basement, garage or spare bedroom.
All of this cleaning goes toward selling your home much faster.

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