Christiaan Bourdrez

Tax credit Extended until April 2010

2009-10-28T23:50:00Z

The $8000 first time tax credit is extended! Additionally there will be a $6500 credit for buyers who have lived in there current homes for the past 5 years. This will allow people to sell there houses they have been living in for years and buy another house and get a $6500 tax credit.

This is great news for Seattle as there are a lot of first time buyers and move up buyers who have been waiting for the right house. Now more inventory will be available because current home owners will want to sell and move into larger homes while also getting the added benefit of a $6500 tax credit.

Please call with any questions about buying or selling. Christiaan 206 818 6898

http://www.reattle.com

Common ways to buy Real Estate in Seattle

2009-10-27T03:27:00Z

There are several paths to home ownership,

four different scenarios for buying a house in the Puget Sound and Seattle these days are...

1. Buy a house from a person who owns the house(this is the traditional way most people buy and has many advantages).

2. Buy a house from a person who owns and who needs to sell and negotiated a Short Sale(less than is owed on the note to the bank).

3. Buy a house that is owned by the Bank, these are REO(Real Estate Owned) and usually did not sell on the county steps at the foreclosure sale (sheriffs sale) and end up on the market sold by Real Estate agents working for the Banks directly as clients as the bank owns the property.

4. Foreclosure sale at the court house bidding on a house with cash. (sometimes sight unseen).

http://REattle.com/

3837 48th Ave. SW Seattle WA 98116 -- Open House West Seattle Sunday 1-4 pm

2009-10-24T21:07:00Z

Open House West Seattle Sunday 1-4 pm

Please come to this open house. All welcome. I'll be there from 1-4 pm this Sunday October 24, 2009.

Fabulous two bed one bath move in ready home just blocks away from West Seattle's best restaurants and boutiques. This home has new paint throughout, energy efficient windows, hardwood floors, and an open floor plan including a remodeled kitchen and bath. Huge deck and fenced landscaped yard for entertaining lead out to a detached two car alley accessed garage plus off street parking. Finished rooms downstairs with room to grow!

3837 48th Ave. SW Seattle WA 98116

MLS # 29146146

First Time Buyer Tax Credit VIDEO

2009-10-15T22:21:00Z

Check out this video on the first time tax credit.

http://www.google.com/support/youtube/bin/answer.py?hl=en&answer=57788

Thanks for watching and pass it along to your friends who might be thinking of buying.

Christiaan Bourdrez 206 818 6898

Quick Summary of the First-Time Homebuyer Credit For 2008 vs. 2009 - $7500 vs. $8000

2009-06-11T18:36:00Z

First-Time Homebuyer Tax Credit

Up to $8,000 federal tax credit for first-time home buyers

By William Perez,

There's a new, refundable tax credit of up to $8,000 for the purchase of a primary residence. The credit is available to first-time homebuyers. Quick Summary of the First-Time Homebuyer Credit For 2008: up to $7,500, the credit is paid back over 15 years. For 2009: up to $8,000, the credit does not need to be paid back. "First-time" buyer means an individual who has not owned a principal residence in previous three years.

Dollar Amounts of the Homebuyer Tax Credit

The tax credit is worth 10% of the purchase price of the home. For 2008, the maximum credit is $7,500 ($3,750 for married couples filing separate returns). The credit is also limited to the same $7,500 maximum for unmarried persons who purchase a residence together.

For 2009, the maximum credit is $8,000 (or $4,000 for married couples filing separately).

Qualifying as a First-Time Homebuyer

For the purpose of this tax credit, a first-time homebuyer is defined as someone who has not owned a primary residence in the three-year period ending on the date of purchasing the home.

Limited Time Period for Purchasing a Residence

The credit has a very limited life-span. Individuals will need to purchase a residence after April 9, 2008, and before December 1, 2009.

What's a Primary Residence

A primary residence is a residence in which an individual lives most of the time. A primary residence can be a house, condominium, co-operative apartment, houseboat, or mobile home.

Because the tax credit is for people who purchase their primary residence, individuals may qualify for the tax credit even if they own a vacation home or rental property as long as those properties were not their primary residence for at least three years preceding the purchase of their new home.

Income Phase-out Range

The credit is phased out for individuals with modified adjusted gross income between $75,000 and $95,000. For married couples filing a joint return, the phase out range is $150,000 to $170,000.

Modified AGI for the First-Time Homebuyer Credit

To determine if the tax credit is reduced or eliminated by the income phase-out range, individuals will need to determine their modified adjusted gross income.

For the purposes of determining income eligibility for this credit, adjusted gross income is modified by adding back the following excluded income:

foreign earned income;
income from Guam, American Samoa, or the Northern Mariana Islands;
income from Puerto Rico.

When to Claim the Credit

The credit is fully refundable, meaning taxpayers will be able to obtain an additional federal tax refund of up to $7,500 even if they have no other tax liabilities.

Taxpayers will be able to claim the credit on their 2008 tax return for homes purchased in 2008. For homes purchased in 2009, the IRS will allow the purchasers to file an amended 2008 return to claim the credit. For the 2009 tax credit to show up on the 2008 return, taxpayers will need to elect to treat the 2009 home purchase as if it were made on December 31, 2008. Guidance released by the IRS provides that taxpayers making this election are eligible for the higher $8,000 tax credit amount and do not need to repay the credit if they take their 2009 credit on their 2008 tax return.

Repaying the First-Time Homebuyer Credit

The credit needs to be repaid in equal installments over 15 years. Unlike any other tax credit, the first-time homebuyer credit must be repaid over 15 years. This pay-back feature applies only to homes purchased in 2008. The credit will works like this: you'll get your refund when you file the tax return. Then the credit will be repaid as an additional tax on your tax return for the next fifteen years, starting with the 2010 tax return. For the maximum $7,500 credit, this works out to annual repayments of $500 per year. As CCH notes in their tax briefing, this tax credit amounts to an interest-free 15-year loan for first-time homebuyers.

The credit will also need to be repaid in full if the taxpayer sells the house within the fifteen-year repayment period. The credit also needs to be repaid in full if the property is no longer the taxpayer's primary residence. The credit will be disallowed if a taxpayer sells the house before the end of the same year in which the house was purchased.

Tax Form to Claim the First-Time Homebuyer Credit

Form 5405 (pdf, 3 pages including instructions)

Sources:

Section 3011 of the Housing and Economic Recovery Act of 2008
Summary of the tax provisions in H.R. 3221 from the Ways and Means Committee [pdf]
CCH Tax Briefing on the Housing Assistance Tax Act of 2008 [pdf]
Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years (IRS.gov)
Expanded Tax Break Available for 2009 First-Time Homebuyers (IRS.gov)

Waiting for the bottom of the Real Estate Market in Seattle.

2009-05-20T05:57:00Z

If you are holding off on buying because sales prices have gone down you may have waited long enough. Especially considering the $8000 tax credit for first time home buyers and current low interest rates (which ultimately effects values). Also you will be able to write off any interest you pay from your income taxes once you buy a home. Prices have come down and they may continue to come down but if you buy in a good location in Seattle now you should shield yourself from significant future declines.

Call me 206 818 6898

Christiaan Bourdrez

REALTOR

Fed injects $500 billion into mortgage markets

2008-11-30T18:41:00Z

In case you haven't heard, the Fed agreed to inject at least $500 billion into the mortgage markets and this resulted in an immediate drop in average mortgage rates to 5.5%, more than a half percent drop. They are likely to go even lower. The serious housing trouble in California, Florida and Nevada would benefit us in Seattle by forcing the Fed to try to get rates down so now the waiting is over and they are doing what it takes. We should notice a definite improvement in the market very soon.

A letter to some Real Estate Buyer in Seattle.

2008-11-12T19:24:00Z

Hello all bloggers... I'm posting a letter I recently wrote to some potential buyers I am working with and I tought the real estate knowledge may help explain the current real estate market conditions here in Seattle.

How's it going? You asked me about the zero down option with the listing we viewed the other day. This is with their preferred lender and may cost you more in points to obtain(Higher interest rate,rate buy down, etc.). The seller paid closing cost are with a full price offer but we could certainly write that in any offer at any price on any house. I would recommend giving several brokers a call and discussing the options that are available to you and maybe one brick and mortar bank.

From what I've been hearing money is available through FHA with 3% down (changes to 3.5% Jan. 1st) as long as you have a FICO Credit 700+ and 2 year work history. Now is one of the best times to buy because the Fed has reduced Prime to another historic low. I believe there are still 0% down options as well, it just depends on the borrower. Alec can fill in more about this as the mortgage market is in a constant state of flux.

As far as your question will prices drop more...this is any ones guess but what you can count on is some sellers want so they have already been listing for sale, reducing prices and accepting low offers. So it really depends on the seller and the house they are selling as to whether you are getting a great deal. But make no mistake there have been some recent transactions where people have gotten great bargains. It is a buyers market at the moment which really puts you in the drivers seat, sellers are very willing to make concessions that benefit the buyer.

The slowdown hit Seattle later than the rest of the country so we will come out a little later but it has not been nearly as severe and should recover more quickly. In general real estate is safe in the Puget Sound area, we have limited land, good jobs, a great economy, transit and great recreation etc. I believe our market is near the bottom and will pick up a bit in early spring and be rebounding in 2010 (probably not as fast as the past boom). The long term outlook is good here.

I will be sending you lots of listing up to 600k just so you all can see whats available and selling. I will also send you articles that are helpful in understanding the market.

One last note...would you like me to send you listings for West Seattle? Brian had mentioned you found out how nice it was over there, maybe you would like to see whats happening in city as well as Snoqualmie and Issaquah. Just a thought.

You all are in a good spot as buyers right now and I'm really excited to help you. Feel free to ask me anything at any time. Clarifications, Recommendations, Mortgage Brokers, etc.

Thanks,

Chrisitiaan