• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

1. The price of the home.
2. The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

To see the current, local real estate trends, take a look at September’s real estate report for Pasadena California here.   Otherwise, enjoy the following articles.

San Francisco Chronicle

Signs of hope housing market may be stabilizing

Sales of existing homes increased a larger-than-expected 7.2 percent in July compared with the previous month, according to the NATIONAL ASSOCIATION OF REALTORS®.

To read the full story, please visit Signs of Hope – housing market may be stabilizing.

 The Wall Street Journal

The foreclosure pain may drag on for years…

Delays in dealing with home foreclosures are stretching out the pain for the U.S. housing market.  That has stirred lots of debate over whether it is better for the nation to face the pain of millions of foreclosures immediately—to get it over with fast—or to draw the process out over several years in hopes that the economy and housing demand will recover.

To read the full story, please visit Foreclosure pain may drag on for years article.

  San Francisco Chronicle

First-time home buyer tax credit set to expire

The $8,000 federal tax credit for first-time home buyers is soon to expire, causing anxious house hunters to hustle and prompting a debate in Congress over extending a program that some say is central to the fragile real estate recovery. 

To read the full story, please visit Home Buyer Rebate is Expiring.

Los Angeles Times

Too many palatial homes, too few princely buyers

As more sellers decide to cut their losses and move on—or are compelled to do so by their lenders—the most expensive homes could slip from their perch at the top rung of the market.

To read the full story, please visit the full article here.

For those of you interested in buying a Pasadena home or are just curious about Pasadena property for sale, please take a look at the Pasadena homes for sale below. Feel free to sign up for a FREE membership to the MLS (Multiple Listing Service) listings by creating a VIP accounts below.

For details on any of the above Pasadena homes, please visit Pasadena homes for sale.

Read More:

Getting More House for your $

9 Stupid Things Buyers do to mess up their home purchase

The fastest way to lose your earnest money deposit

Homes for Sale Information:

South Pasadena City Guide

Pasadena Real Estate Guide

Altadena Foreclosures List

Burbank Foreclosure Home List

Pasadena Foreclosure Home List

South Pasadena Foreclosure Home List

If you are thinking of buying or selling your Pasadena home, condo or townhome, please give us a call for a comprehensive and free consultation. We can be reached at 626-204-3340.

IRINA NETCHAEV & ASSOCIATES

Pasadena Real Estate Agents

445 South Fair Oaks Avenue

Pasadena, CA 91105

(626)204-3340

California median home price

- August 09: $292,960 (Source: C.A.R.)

California highest median home price by C.A.R.

(California Association of Realtors) region August 09: Santa Barbara So. Coast $828,750 (Source: C.A.R.)

California lowest median home price by C.A.R.

(California Association of Realtors) region August 09: High Desert $111,770 (Source: C.A.R.)

California First-time Buyer Affordability Index

- Second Quarter 2009: 67 percent (Source: C.A.R.)

Mortgage rates

- week ending 10/01/09 30-year fixed rate home loan: 4.94% Fees/points: 0.7% 15-year fixed home loan: 4.36% Fees/points: 0.6%

1-yr. adjustable: 4.49% Fees/points: 0.5% (Source: Freddie Mac)

If you are interested in local Pasadena real estate statistics and results, please visit Pasadena Real Estate Market Reports for the latest information on Pasadena California and surrounding cities.

You may also want to sign up to receive weekly emails of the latest real estate data here.  This service is FREE and is provided to my readers as a courtesy through a subscription with Altos Research – a premier real estate statistics service.

To search for homes for sale throughout Southern California, please visit Search MLS for FREE.

California highest median home price by C.A.R. region July 09: Santa Barbara So. Coast $885,000 (Source: C.A.R.)

California lowest median home price by C.A.R. region July 09: High Desert $110,650 (Source: C.A.R.)

California First-time Buyer Affordability Index – Second Quarter 2009: 67 percent (Source: C.A.R.)

Mortgage rates – week ending 9/17/09 30-yr. fixed: 5.04% Fees/points: 0.7% 15-yr. fixed: 4.47% Fees/points: 0.6% 1-yr. adjustable: 4.58% Fees/points: 0.5% (Source: Freddie Mac)

Interested in seeing how Pasadena homes for sale statistics compare to California’s median statistics? Read Pasadena Real Estate Home Statistics for August 2009.

READ MORE:
Pasadena Dusty Deals™

There has been a lot of talk about social networking in the media recently.  When I was talking to my friends and family about Twitter last year, I’d get the weirdest looks.  Twitter, what’s that?  Now… it seems like every time you turn on the news, there’s a rolling banner of tweets on the side.  What’s the fascination?

Facebook is one of the social networks initially focused on reconnecting with friends, school mates and family, and just generally staying in touch and updating your sphere about your personal activities.  Now, facebook is geared more towards business professionals where fan pages are created with personal URLs (web addresses) that allow real estate and other professionals to promote their home listings or business ideas.

Users do this by creating postings, uploading photos and sharing links and videos. With over 200 million members worldwide, Facebook truly is a global market. And it’s not just people who have profiles and networks. Places, products, companies, services, stores, restaurants, etc., also have profiles and networks. For example, Starbucks Coffee Company has a profile and a network with 3,385,090 fans; Lamborghini has 807,270 fans.

LinkedIn is an interconnected network of experienced professionals from around the world, representing 170 industries and 200 countries. You can find, be introduced to, and collaborate with professionals who you need to work with to accomplish your goals. LinkedIn also has some proprietary business tools. Polls is a market research tool that allows business professionals to collect data from your connections on LinkedIn. Results to research questions can be broken down by company size, job function, age and gender.

So what is this about Social Networking and Real Estate?  Why is it important that your real estate agent has a strong presence on these and other social network sites?  Simply said – EXPOSURE.

Selling a home is ultimately all about getting as many “eyeballs” to look at your home.  Of course, you need to prepare a home for sale, price it correctly, analyze the current real estate trends, understand your competition and more…  BUT to give it that extra, special nudge, your realtor also needs to have an established presence on these and many more social network sites.

READ MORE:

Pasadena Real Estate Guide – everything you ever wanted to know about buying or selling your Pasadena home.

This is an additional marketing avenue.  This type of marketing exposes your home to international buyers, other real estate agents that are local as well as the ones that have clients relocating to your area, and the computer literate new generation with deep pockets.

So… when it comes time to interview your Pasadena Real Estate Agent include the following question – Which social network platform do you participate in and how many followers do you have?

And, if you are on any of these following social networks, please connect with me, I’d really like to get to know you!

Connect with Irina on the following networks:

Irina Netchaev on Twitter

Irina Netchaev on Facebook

Irina Netchaev on Flickr

Irina Netchaev on LinkedIn

Irina Netchaev on Google

Irina Netchaev on Trulia Real Estate Voices

FriendFeed

Irina Netchaev on Utterli

Irina Netchaev on Realtor.com

Irina Netchaev on Plaxo

Irina Netchaev on Technorati

READ MORE:  Pasadena Real Estate Housing Analysis for the Last 5 years (2003 to 2008)

I wrote about the tax assessor proactively re-evaluating properties which were purchased between July 1, 2004 and June 30th, 2007. Now, the LA County Tax Assessor has made it even easier to find out if your home property taxes are under review.

If you click on the link below, it will take you to a page where you will be able to enter your home’s property tax identification or AIN number OR type in your Pasadena home address to see if your property’s tax status is under review due to the “decline in value”.

PROPERTY TAX “DECLINE-IN-VALUE” REVIEW BY THE TAX ASSESSOR

You can also check the status of your application if you submitted one for reassessment by entering your street address or Assessor Identification Number.

You can also see if your property automatically qualifies for a decline-in-value review under either one of the following conditions:

• The property is a single-family home or condominium purchased between July 01, 2003 (2000 in some areas based on economic conditions) and June 30, 2008.

• A property is subject to annual review of a temporary decline-in-value reassessment granted for the prior assessment year (2008).

Pasadena home owners of properties other than single-family or condominium (residential-income and commercial/industrial for example) may file a decline-in-value APPLICATION on or before December 31, 2009.
While you may check and monitor the status of a potential or existing decline-in-value review, the details of this review can be obtained by contacting your Los Angeles County District Office.

ALSO READ: Property Tax Increases on your Pasadena Home

How are Property Taxes calculated in Pasadena California

Get your Property Reassessed by the LA County Tax Assessor

To see what Pasadena homes are selling for right now or to start your Pasadena home search, see below for a complete list of available homes:

For more information on the current health of Pasadena’s real estate market, please visit Pasadena Real Estate Housing Reporting and Statistics site.

The $787 Billion stimulus bill is made up of tax cuts and spending programs aimed at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II. One of the major benefits of the plan is a tax credit for new homebuyers.

According to the plan, first-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.

A first-time home buyer is defined as someone who has not owned a primary residence for the last three years.

It’s important to remember that the $8,000 tax credit is just that… a tax credit. It’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.

Better still, the incentive is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you’re liable for $4,000 in income tax, you can offset that $4,000 with half of the tax incentive… and still receive a check for the remaining $4,000!

Who Qualifies?

The $8,000 incentive starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes of $170,000 for couples and $95,000 for single filers.

To break down what this phase-out means, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible to reduce the tax liability by $2,800.

Remember, these are general examples. Borrows should consult a tax advisor to provide guidance relevant to their specific circumstances.

What Type of Home Qualifies?

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying “homes” include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured homes and houseboats used for principle residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.

This tax credit is obviously not being promoted by the state of California since I’m hearing about it for the first time. But, here at the Pasadena Real Estate blog with the help of our friends, we are able to bring you the scoop!

$100 million has been allocated and is available on a first come, first served basis. So if you are thinking of buying one of the new Pasadena condo developments like Granite Park or Lake at Walnut , make sure to take the opportunity to apply for this credit.

Here are the California tax credit rules:

California Tax credit amounts

California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available.

Total credit allocated to date by California: $0

Remaining credit available: $100,000,000

To check how much Tax Credit Allocation is available, visit the Franchise Tax Board New Tax Credit for New Construction Home Buyers Page.

California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.

How to apply

Within one week (seven calendar days) after the close of escrow:

Fax is the only delivery method that will be accepted and considered for credit allocation by FTB (Franchise Tax Board), as the date and time stamp on the fax will determine the order in which credits are allocated.

PLEASE NOTE, A HOME BUYER ONLY HAS 7 DAYS FROM THE CLOSE OF ESCROW TO FILE FOR THIS TAX CREDIT!!!!!! 

Don’t miss your opportunity to take advantage of this tax credit for new construction homes!

UPDATE: The Franchise Tax Board (FTB) recently announced that the $100 million allocated by the state in new home tax credits will soon be gone. The FTB has received more than 9,800 applications, claiming nearly $95 million as of June 17, and plans to accept 12,000 applications to allow for duplicates, revisions, or invalid applications.

This tax credit is available for qualified buyers who, on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date. To apply, an application for new home credit must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to the FTB at (916) 845-9754.

The FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been allocated. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.

An extension is now officially in place on the higher loan limits for mortgages in the tier that lies just below what is considered a “jumbo” loan.

First established last year, and now extended through the end of 2009, limits on this additional tier provide opportunities for many who are looking to either refinance or, better yet, take the plunge into first time home ownership and grab a piece of the highly publicized $8,000 tax incentive.

Here are some key points about this higher loan limit extension, announced by the Fair Housing Finance Agency this past week:

The non-jumbo, middle tier of home loans begins at loan amounts greater than $417,000 for single-unit homes.

The top end for this tier is $729,750 for single-unit homes.

The rates for these loans will again be slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

This higher limit on the non-jumbo tier is available in Los Angeles and 249 other counties across the United States.

If you are not sure if you if you can take advantage of the $8,000 tax incentive, here are some examples to help you better understand the income limits and phase-out structure.

The $8,000 incentive starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes of $170,000 for couples and $95,000 for single filers.

To break down what this phase-out means, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible to reduce the tax liability by $2,800. Remember, these are general examples. Borrows should consult a tax advisor to provide guidance relevant to their specific circumstances.