Jersey Shore Homebuyers Benefit From Tax Credit

Jersey Shore Homebuyers Benefit From Tax Credit

There has been much publicity about the first-time homebuyers income-tax credit passed by Congress last fall. But how does this tax credit work and how will it help Jersey Shore homebuyers?
 
To qualify for the tax credit, Jersey Shore homebuyers cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.

The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income (MAGI) up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.

If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.

There is the catch, however, the homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit

Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven. 

The tax credit is due to expire in mid-2009. The National Association of Realtors® is lobbying Congress to extend this date, as well as, make the credit available to all buyers and to eliminate the repayment requirement. 

If you are Jersey Shore homebuyer, the tax credit may be just what you need to give you the cash needed for a down payment or closing costs. You just need to plan the repayment into your budget. New Jersey offers numerous first-time homebuyer loan programs you might want to consider. Visit PatrickParkerHomes.com or give me a call. I am glad to discuss your options with you. 

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Bradley Beach NJ Real Estate Market Statistics

Bradley Beach NJ Real Estate Market Statistics

Trulia.com reports Bradley Beach NJ average listing price to be $554,571. A 2.8 percent increase over the previous week.

The median sales price is $382,999, reflecting a 31.2 percent decrease compared to the previous year. 

The average price per square foot was down 10.7 percent compared to a year ago, dropping to $402.00.

There are currently 38 homes for sale and 7 foreclosures in Bradley Beach. 

Bradley Beach Homes For Sale

Learn more about the Bradley Beach NJ real estate market by visiting PatrickParkerHomes.com.

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Bradley Beach NJ Home Buyers Rethink Buying Foreclosures

Bradley Beach NJ Home Buyers Rethink Buying Foreclosures

Most Bradley Beach NJ home buyers consider buying a foreclosed property to be a good deal. But buying a foreclosure is not for the faint of heart. The dream of homeownership can often become a nightmare and more and more Bradley Beach NJ home buyers are becoming leary of foreclosed properties.

Prices on foreclosed homes can be as low as 25% below market value and who doesn’t want to save that kind of money? However, be sure to look carefully at the condition of the property and calculate the cost of repairs into your budget.

Foreclosure homes are sold “as is” which means that the 25 percent you just saved on the purchase price can easily be eaten up by unforeseen expenses such as repairs not immediately apparent in an exterior inspection. Often when you buy a home in foreclosure, you may not be able to look inside let alone have an inspector detect structural problems that you’ll need to fix before moving in. 

Something else to think about – people who lost their home in foreclosure very likely couldn’t afford to maintain their property. 

So be prepared to pay for any problems such as electrical or plumbing repairs, leaky roofs, or even vandalism by angry homeowners who break things or punch holes in walls and doors, an unacceptable but not that uncommon way that some homeowners deal with the angst of losing their home to foreclosure. 

Last spring, 54% of Bradley Beach NJ home buyers said they would consider buying a foreclosed property, according to a study conducted by Trulia.com and RealtyTrac. In the fall, this number dropped to 47% with 80 percent of those surveyed citing hidden repair costs, a tricky buying process, and the possibility that the neighborhood will lose more value and drag the property down with it.

To compensate for these risks, 75 percent say they expect at least a 25 percent discount and 30 percent say they would only buy if there is a 50 percent discount compared with a comparable home that isn’t in foreclosure.

Other findings:

* 56 percent of single/never married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 60 percent in April.
* 43 percent of married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 50 percent in April.
* 42 percent of divorced/separated/widowed adults were at least some

Thinking about buying a foreclosed property? Visit PatrickParkerHomes.com for more info. Or give me  a call, I am glad to help you through the process.

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Jersey Shore Real Estate: Regulatory Reform Expected With Obama Presidency

Jersey Shore Real Estate: Regulatory Reform Expected With Obama Presidency

The upcoming presidential transition comes at a time of great challenges within the housing industry and the economy at large. Consequently, many are wondering what a Barack Obama presidency will mean for real estate and housing issues.

National Association of Realtors analysts expect the Obama administration and the new Democratic-controlled Congress to focus on regulatory reform of the financial services industry, with potential changes to Fannie Mae and Freddie Mac.

This fall, Obama responded to Realtor® Magazine’s questions about the mortgage crisis, sustainable development, housing affordability and other topics. Read the interview.

To learn more about Jersey Shore real estate, please contact us at 201-788-6182 or visit PatrickParkerHomes.com. 

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2008 HOME SALES IN BRADLEY BEACH, NJ

• 503 Park Place          $250,000
• 1003 Hammond       $320,000
• 607  Brinley                $324,000
• 506 Newark                 $325,000
• 1102 Fletcher Lake   $330,000
• 511 McCabe                  $375,000
• 603 Madison                $380,000
• 620 Third                       $390,000
• 105 Cliff                           $400,000
• 315 McCabe                   $400,000
• 617 Brinley                    $425,000
• 511 McCabe                    $450,000
• 27 Atlantic                      $465,000
• 122-a Park Pl                  $500,000
• 506 Monmouth             $500,000
• 316 McCabe                    $506,500
• 518 Ocean Park             $518,000
• 513 Ocean Park             $532,500
• 216 Fifth                          $567,500
• 415 Monmouth             $570,000
• 407 Park Pl                     $581,000
• 606 Fletcher Lake        $599,318
• 502 Fourth                     $636,000
• 310 Fifth                          $670,000
• 401 Evergreen              $733,000
• 117 Ocean Park            $742,000
• 211-a Ocean                   $760,000
• 416 Monmouth            $875,000
• 312 Fifth                         $900,000

If you have any questions regarding these sales or if you would like a current list of active listing send me an email with your housing requirements.

Patrick