You have until midnight April 30 to be under contract in order to pick up a check from the government for as much as $8,000 for a first time homebuyer and $6,500 for a repeat homebuyer.  An extension probably will not happen.  Look at this extreme benefit…this tax credit is not considered income…it is totally tax free!  If you qualify, you get the full benefit of each and every dollar.  Let’s find a house by Friday, April 30th! Call the McALister Realty Group at (404) 895-3036 today!

1) Who is affected?

Any property owner who was personally liable on a real estate loan that was foreclosed or partially paid off in a short sale.
2) When will the 1099-C be issued?

Unless the lender is pursuing a deficiency judgment, the 1099-C must be issued by January 31st.  If the lender sends the 1099-C, the lender has written off the loss as a bad debt. 
3) What is IRS Form 1099-C? 

This form represents ordinary income (not capital gain) for the “Cancellation of Debt” of the seller/owner.  The amount must be included in income on the seller’s income tax return.
4) How is the amount on the 1099-C determined?

Short Sale: The difference between the full payoff and the short sale payoff.

Foreclosure:  The difference between the full payoff and the fair market value, based on an appraisal at the time of foreclosure.
5) Does the seller have any offsets against this income?

Sale of principal residence (IRS form 982): Subject to some limitations on amount and qualifying debt.

Capital Loss: Seller’s capital loss (for investment property) can be used to offset capital gains and a small portion of ordinary income.

Insolvency: Income can be offset to the extent that debts exceed assets.

Bankruptcy: Depending on when it occurred and whether the debt was included.

Be sure to consult your income tax preparer!

As always, the McAlister Realty Group is here to assist your real estate needs. Please do not hesitate to contact us for additional questions at (404) 895-3036.
 

When a buyer expects to get a termite letter/bond and/or a home warranty at the closing, the seller must make sure that the correct letter/bond/warranty is provided.
 
Termite Letters:
1.     Did the seller agree to provide a letter or a bond and pay for it?
2.     Is the letter being provided/expected even if not a lender requirement?
3.     Does the letter need to be less than 30/60/90 days old?
4.     If a bond is expected, does it need to run a full year from closing?
5.     Is the seller required to pay to extend the bond a full year?
6.     Is the bond for repairs or just retreatment?
7.     Is the seller’s bond transferable to the new buyer? Is there a fee?
8.     Who pays the transfer fee?
 
Home Warranties:
1.     Did the seller agree to pay for a warranty? How much?
2.     Who pays the overage?
3.     What kind of warranty is expected?  (Pre-existing conditions, coverage for appliances, extra coverage for special items)
4.     Which agent is responsible for ordering the warranty prior to closing?
5.     Is the price of the warranty included in the seller closing costs or additional?
 
Buyers should be encouraged to get both a termite inspection and a home warranty, even if the seller will not pay for them, especially with a bank-owned property or short sale.

With our exceptional buyer representation, you can rest assured that the McAlister Realty Group will assist with all stages of the home buying process to ensure your experience is truly “GOLDEN!” Call us for a no obligation consultation today!

If you’re getting ready to sell your home, doing so this season offers some real advantages. Although spring is the traditional high season for home listings and sales, it isn’t necessarily a better time to sell. Buyers who are looking for a home during the winter are usually very motivated. These serious buyers are looking carefully at the homes for sale, considering your home among the smaller pool of available homes for sale during the cooler months.

Buyers during the winter are those who have to move due to a lease coming to an end, or they’re affected by their landlord’s foreclosure, or they are transferees moving to town, among many reasons. Remember, too, if you’re selling your home to a first-time buyer, they do not have a home to sell in order to purchase yours! This means your closing/settlement can occur faster than when working with those buyers who might include a condition with their purchase offer, making it contingent upon the sale of their home.

Lots of home sellers list in the spring, hoping to move in the summer while kids are out of school. By waiting until spring to list your home, you could face more competition from other sellers. In addition, interest rates could edge higher, discouraging some would-be buyers.

Here are more great reasons to consider listing your home for sale now, before spring rolls around:

1) Motivated buyers. With fewer buyers in the marketplace during fall and winter, home shoppers tend to be more serious about purchasing. Oftentimes a buyer for your home might be a seller who has just sold his or her own home and now must look for a new home. Also, consider that more corporate moves are made during January than any other time of year. Transferees need to find new homes fast — perhaps in your neighborhood.

2) Fast start for kids. Some experts advise parents that the transition to a new home can be smoother for some kids when they are moved during the school year. Rather than spending the summer “friend free,” starting at a new school immediately upon arrival in the area helps kids establish routines more quickly.

3) Seasonal charm. Selling your home during cooler weather or over the holidays heightens its “warm” appeal. Keep your home bright by turning on lights and opening curtains and shades.

4) Less work. Due to holiday get-togethers and often festive decorating, your home is probably in its best condition for showing. You already have your home clean and staged for company; now just open the doors to buyers, and soon you’ll have your home sold!

5) Particular buyers. Maybe the buyer of your home has been looking all year for “just the right home” and yours fits the bill. Their continuous searching is to your advantage.
No matter what the season, we provide the professional services, expertise and marketing to get your home sold quickly at a great price.

Call us anytime for a free consultation. We look forward to hearing from you!

They say that a picture is worth a thousand words. If so, what do the photos about your home say? Before you list your home for sale with us — and before the marketing photos are taken — follow these proven tips to make sure your home shows well in print and online photos. We’ll take care to get the best angles and lighting, and we’ll market your home to get the greatest interest from buyers who like what they see!

1) Declutter. Clear out. Everything. Make sure you take all your personal photos, collections, and miscellaneous “stuff” out of a room. Let the viewer see clean lines, special features (fireplaces, bay windows, etc.) and the entire size of the room without distractions.

2) Don’t vacate. Leave furniture in place when the photos are taken, even if you must move out immediately. Photos of furnished rooms are more enticing and help potential buyers see how furniture pieces can fit the size and shape of rooms.

3) Add color. If a room appears dull, add a few colorful throw pillows, some cut flowers and a vase, an arrangement of real fruit in a pretty bowl, or a textured throw to add a little interest in your room.

4) Stand at your curb. Look at the front view of your property and determine what needs trimming and clearing or cleaning. Edge the grass, place a colorful plant at your front entrance, hang a wreath on your door, powerwash siding, trim overhanging trees and bushes that obscure the view of your home. Make the view inviting to draw buyers off the Internet and into their cars!

5) Focus on the main living areas. The living room, family room, kitchen and front view are the most important areas to show in your listing. Make sure those rooms and views look their absolute best!

6) Amenities. Point out local attractions that you — or others in your neighborhood — enjoy frequenting. Perhaps the community pool, near-by tennis courts or walking paths, special scenic area or playground are especially popular. Ask us to take some photos of these areas and have them included in your property’s listing photos.

The Atlanta Journal & Constitution has been running an excellent series of articles on property tax valuations in the various counties of the Atlanta metro area.  The AJC’s analysis shows that most residential properties in the Atlanta area have experienced declines in value with many areas posting double digit losses.  However, the county tax commissioners have been unwilling or unable to adequately reassess the values of these properties and as a result most of us are paying tax bills that are based on unrealistically high values.
 
     Very few people are aware that if a property tax valuation remains the same as the previous year’s bill the owner must file a “Property Tax Return” with their tax assessor’s office after January 1, 2010 (deadlines vary) in order the have the right to appeal their 2010 property tax assessment.  These forms can be obtained from each of the metro county tax assessor’s offices and we have provided links to the forms and/or instructions for various counties below. If your county is not included, you can search for the respective office online by using the search words: “_________ [insert the name of County] County Tax Assessor”. Most sites include a section for “Frequently Asked Questions or FAQ’s, which will include this information.  Remember that this is simply a first and necessary step to appeal your taxes where there has not been an increase in assessment from the previous year; it is not the actual appeal.
 
Cobb County:
 
www.cobbassessor.org/content/pdffiles/Tax%20Payer’s%20Return%20of%20Real%20Property.pdf
 
Once the “Taxpayer’s Return of Real Property” form (link to form provided) is filed, the appraisal staff will review your stated opinion of value to determine if any adjustments should be made. A tax return is not an appeal. If your opinion of value is not accepted, you will be sent a Change of Assessment Notice, indicating the county’s current and prior year valuation. If you are not satisfied with this proposed value, you must then file a written appeal within 45 days of the date the Change of Assessment Notice was mailed. For further questions, call Cobb County Tax Assessor’s office at 770-528-3100.
 
Dekalb County:
 
You must file a “Taxpayer’s Return of Real Property” form (PT-50R return of value form) between January 1, 2010 - April 1, 2010.  The form is not available online and can only be obtained by calling the Dekalb County Tax Assessor’s office at 404-371-0841 and requesting the form after the first of the year.
If the county board of tax assessors disagrees with the taxpayer’s return, the board must send an assessment notice which gives the taxpayer information on filing an appeal. 
Taxpayers may challenge an assessment by the county board of tax assessors by appealing to the county board of equalization or to an arbitrator within 30 days from the date of the change of assessment notice that is mailed by the board of tax assessors.

Fulton County:
 
www.fultonassessor.org/content/pdffiles/HomesteadFormFront.pdf
www.fultonassessor.org/content/pdffiles/HomesteadFormBack.pdf
 
After completing the top of the form (links provided), look for #3 to complete the “taxpayer assessment” or “TPA”. This number is your opinion of the Fair Market Value. Note that the form must be mailed via certified mail and post-marked between 1/1/10 - 4/1/10.  The return must be accompanied by a copy of your photo i.d.  For further questions, call Fulton County Tax Assessor’s office at 404-224-0102.
 
Gwinnett County:
 
You must file a “Taxpayer’s Return of Real Property” form between January 1, 2010 - March 1, 2010.  The form is not available online and can only be obtained by calling Gwinnett County Tax Assessor’s office at 770-822-7200 and requesting the form after the first of the year.
 
You can start the appeal process by completing and mailing or hand-delivering the “Taxpayer’s Return of Real Property,” to the Board of Assessors’ Office at 75 Langley Dr., Lawrenceville, GA 30045. Once the “Taxpayer’s Return of Real Property” form is filed, the appraisal staff will review your valuation to determine if any adjustments should be made. The “Taxpayer’s Return of Real Property” form lists a summary of the information concerning property identification, ownership, mailing address and previous year’s value. In the column headed “Current Year Taxpayer 100% Stated” you declare what you believe to be the fair market value of your property. A tax return is not an appeal.  Upon the assessor’s review of your property valuation, you will be sent notification of the results in April via an assessment notice. The assessment notice will indicate the county’s current and prior year valuation. The assessment notice will give you a 30-day period in which you may file an appeal. Instructions for filing an appeal are in the assessment notice which will be sent to you in April.

Homestead Exemption

–       applies to all owner-occupants who purchased since 1/1/09

–       especially important if purchased from a bank or investor to get the property taxes reduced

–       remind your buyers to file in both the city and the county if their property has city taxes

–       deadlines vary, but the earliest is March 1st

First Time Homebuyer Credit

–       federal income tax refund up to $8,000

–       buyers will need their HUD for income tax preparation

–       limitations based on sales price and family income

Georgia First Time Homebuyer Credit

–       state income tax refund up to $600 per year for 3 years

–       buyers will need their HUD for income tax preparation

–       limitations based on sales price and family income

Property Tax Bills paid in 2009

–       bill was issued in owner’s name as of Jan. 1st (seller)

–       buyer and seller can each deduct their prorated share on their income tax

–       buyer and seller can refer to HUD to see prorated share

Presented by Leigh Clack, Attorney

Neel & Robinson, Attorneys at Law LLC

lenox@neelandrobinson.com    404-705-3690  fax 404-705-3697

22 Lenox Pointe, Atlanta, GA 30324 

Metro Atlanta home value in dollars went up through 11 months of 2009, according to data published Wednesday by Zillow Real Estate Market Reports. Atlanta’s total home value was up by $7.6 billion to a total home value of $322.2 billion through November. Atlanta had the fourth-highest gain of any metro area.
 
U.S. homes lost $489 billion in home values through November, significantly less than the $3.6 trillion lost during 2008, according to Zillow.Forty-eight of the 154 markets tracked by Zillow showed gains in home values during 2009, with the Boston metro area showing the largest gain of $23.3 billion. The Providence, R.I., area was second on the list, with a gain of $12.4 billion.

The biggest home value losses, in terms of total dollars lost in 2009, were Los Angeles (down $60.8 billion), Chicago (down $49.6 billion) and New York (down $49 billion). The large overall losses were due to a combination of the high number of homes in these metro areas, along with decreases in median home values.

The stabilization in home values led to easing rates of negative equity in the third quarter of 2009, with 21 percent of all single-family homeowners with mortgages underwater, compared to 23 percent in the second quarter, Zillow said.

“Home values stabilized significantly during the second half of 2009, with the total dollar value of U.S. homes increasing since June,” said Dr. Stan Humphries, Zillow chief economist, in a news release. “Most housing markets across the country had a good summer, spurred largely by the government’s tax credits for homebuyers combined with very low mortgage rates. Unfortunately, we believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high.”
 
Article By: Dixie Cox, Atlanta Business Chronicle

Investment properties are an excellent way to expand your financial portfolio. It can be a strategy for long term retirement, college savings or even a financial legacy.

Home prices are at an exceptional value with excellent bargains and foreclosures waiting for the right buyer. Negotiating opportunities are abundant and interest rates are low. Invest in your dream vacation home or even a lucrative rental property. We have a network of Realtors in every state and can also help you purchase an out-of-town home. The housing market is ripe and the options are promising. Isn’t this the perfect time to evaluate your financial goals and wealth building strategy?

Let us create a custom strategy for you. To find the perfect opportunity for you, contact the McAlister Realty Group at 404-895-3036 today! 

The tax credits for homebuyers were extended and signed into action on November 6th, 2009.  You may find additional information at www.McAlisterRealtyGroup.com/Blog.asp.

Here are the most important points.

· First-Time Homebuyers (or anyone who has not owned a home in the last three years) may be eligible for the tax credit. The credit is 10% of the purchase price of the home with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

· Current Owners: The tax credit program now gives those who already own a home some additional reasons to move up to a new home. This incentive is a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

· Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit for income up to $145,000.

· Joint tax filers who earn $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit for incomes up to $245,000.

· Qualifying buyers may purchase a property with a maximum sales price of $800,000.

· A parent may cosign for a child and the child still qualifies for the credit provided the child meets the other requirements for the credit.· In order to qualify, all contracts need to be in effect no later than April 20, 2010, and close no later than June 30, 2010.

We would welcome the opportunity to explore these options with you!