This was in www.cnnmoney.com and I wanted to get it known to all that are looking for a home…time is of the essence.
There’s barely three months left before the $8,000 tax credit for first-time buyers ends — and it can take that long to close on your new home.
By Les Christie, CNNMoney.com staff writer
Last Updated: August 27, 2009: 3:38 PM ET
NEW YORK (CNNMoney.com) — Use any metaphor you want: the ticking clock, sands running through the hourglass or pages falling away from the calendar. The fact is, time is running out to claim the $8,000 first-time homebuyers tax credit.
Passed earlier this year as part of the economic stimulus package, the credit is good for up to $8,000, or 10% of the purchase price, and applies to people who have not owned a home in the previous three years. (There are some income restrictions.) The best part: Unlike a similar program from 2008, the credit does not have to be repaid.
The bad part: It ends on Dec. 1.
Because it usually takes around 90 days to close on a house after a contract is signed, buyers have very little time left to act. As of Thurs., Aug. 27, there were only 96 days left before the credit ends.
“Buyers have to get a home under contract very, very soon,” said Tom Kunz, CEO of Century 21. “They probably should get out looking.”
Sense of urgency
What they will find may surprise them: Many of the prime properties have already been snapped up. Home sales have been on the upswing, and inventories are so depleted in hot markets that first-time buyers are struggling to find homes in their price range. (Check prices in your city.)
In Whittier, Calif., for example, there are few repossessed homes for sale. Those are easy to buy because there isn’t a lot of red tape and the bank wants to get rid of them as quickly as possible. Instead, most of the properties are short sales, where the sellers have to convince their lender to let them sell the house for less than they owe.
“That’s why there’s such a sense of urgency now,” said Irma Tapper, a Century 21 real estate agent in Whittier. “The banks have to approve short sales, and they’re taking three to six months to do that.”
That means a first timer putting a bid on a short-sale might not get an answer form the bank until well after the Dec. 1 deadline for the tax credit. So when an actual repossession listing hits the markets, it creates a feeding frenzy.
Chuck Whitehead, who runs the Coldwell Banker agency in Temecula, Calif., said one recent listing hit the market on a Friday and by Monday there were 57 bids.
The National Association of Realtors attributes much of this activity to the first-time buyer tax credit. It estimates that 1.8 million buyers will file for the credit, and 350,000 of them wouldn’t have been able to buy without it.
“It makes a big difference because most of these clients are in a lower price range,” said Michelle Edmunds, an agent with Coldwell Banker in Temecula, Calf., who has closed sales for six first-time buyers. “The houses they buy need work and normally they wouldn’t want to move in because of the [less than perfect] conditions the homes are in.”
That is true for Wesley Forsythe. This June, the 30-year-old computer consultant and his girlfriend bought a row house in the Fishtown section of Philadelphia. Since he paid just $80,000 for the three-bedroom, two-bath place, the credit acted like a 10% discount.
“It allowed us to expand our price range and plan additional renovations,” he said. “My mortgage is several hundred dollars less than what my new rent would have been.”
Forsythe applied for the credit immediately after closing, filing an amended 2008 tax return. The IRS cut him a check in less than seven weeks. He’s spending it now on new hardwood floors, repainting most of the interior and renovating a bathroom. He’s stretching the cash by doing much of the work himself.
So, time is running out…act now.
Sunday, August 30, 2009
Sunday, August 23, 2009
The Williamson Act...What is it?
These past weeks as I have talked about my race for the County Assessor position, a number of questions have come up....such as this:
The Williamson Act…What is it?
The Williamson Act, of the State of California, officially known as the California Land Conservation Act of 1965, is a California law that provides relief of property tax to owners of farmland and open-space land in exchange for a ten-year agreement that the land will not be developed or otherwise converted to another use. The motivation for the Williamson Act is to promote voluntary land conservation, particularly farmland conservation.
This Act has been the State’s premier agricultural land protection program since its enactment in 1965, and nearly 17 million of the State’s 29 million acres of farm and ranch land are currently protected. An agricultural preserve must consist of not less than 100 acres, and two or more acres may be combined to meet this requirement under certain circumstances.
Recently, the Williamson Act, and its provisions, were the target of the budget cuts in the State of California. This matter is still being resolved.
For additional details on this Act, and other matters affecting real estate property taxes, please e-mail me at ronlargent@shasta.com
The Williamson Act…What is it?
The Williamson Act, of the State of California, officially known as the California Land Conservation Act of 1965, is a California law that provides relief of property tax to owners of farmland and open-space land in exchange for a ten-year agreement that the land will not be developed or otherwise converted to another use. The motivation for the Williamson Act is to promote voluntary land conservation, particularly farmland conservation.
This Act has been the State’s premier agricultural land protection program since its enactment in 1965, and nearly 17 million of the State’s 29 million acres of farm and ranch land are currently protected. An agricultural preserve must consist of not less than 100 acres, and two or more acres may be combined to meet this requirement under certain circumstances.
Recently, the Williamson Act, and its provisions, were the target of the budget cuts in the State of California. This matter is still being resolved.
For additional details on this Act, and other matters affecting real estate property taxes, please e-mail me at ronlargent@shasta.com
What is an Assessor?
What is an Assessor?
Over the past few weeks as I have started my campaigning for the Shasta County Assessors position, I have been asked the question: "What is an Assessor?" So, here is the answer:
What is an Assessor?
A County Assessor is the one all-county elected official that establishes the assessed value of all property in Shasta County by appraising that property under applicable State laws. This assessed value is then placed on a list with all other properties in Shasta County and this list is called the “Assessment Roll”. The Assessor also approves and applies all exemptions, which are added to the Assessment Roll.
What are the primary responsibilities of the Assessor?
1. To locate and inventory all taxable property in the County and identify ownership;
2. To establish a taxable value for all property subject to property taxation
3. To enroll the property to the Assessment Roll showing the assessed value;
4. To apply all legal exemptions.
5. In summary, the primary responsibility is to annually determine the proper taxable value for each property so that the owner is assured of paying the correct amount of property tax for the support of local government.
Why does the Assessor do this?
1. State law mandates that all property is subject to taxation unless otherwise exempted.
2. Property taxes are based on the assessed value of your property. Property tax bills will show land and improvements values on the land.
3. Improvements include all assessable buildings and structures on the land.
4. These property taxes then support necessary services provided to the residents of Shasta County, such as the Sheriff and Law Enforcement, fire protection, education, parks and recreation, and other vital services.
5. In general, properties that are owned and used by educational, charitable, religious or government organization may be exempt from certain property taxes.
How does Proposition 13 apply to the above?
1. Created in 1978, which substantially reduced property tax rates.
2. The Proposition established that the maximum levy the government can apply cannot exceed 1% of a property’s assessed value. Increases in assessed value are limited to 2% annually.
3. A reappraisal can be caused by four events: a change in ownership; completed new construction; new construction partially completed, and a decline in value, as in market value decline, which is presently the case.
Can any of the above be changed?
"Yes, by a vote of the people to amend the state constitution."
And, all of the registered voters in Shasta County, if they choose, can Vote for Ron Largent for County Assessor...it is your way to become involved for a "New Look in Government in Shasta County".
Over the past few weeks as I have started my campaigning for the Shasta County Assessors position, I have been asked the question: "What is an Assessor?" So, here is the answer:
What is an Assessor?
A County Assessor is the one all-county elected official that establishes the assessed value of all property in Shasta County by appraising that property under applicable State laws. This assessed value is then placed on a list with all other properties in Shasta County and this list is called the “Assessment Roll”. The Assessor also approves and applies all exemptions, which are added to the Assessment Roll.
What are the primary responsibilities of the Assessor?
1. To locate and inventory all taxable property in the County and identify ownership;
2. To establish a taxable value for all property subject to property taxation
3. To enroll the property to the Assessment Roll showing the assessed value;
4. To apply all legal exemptions.
5. In summary, the primary responsibility is to annually determine the proper taxable value for each property so that the owner is assured of paying the correct amount of property tax for the support of local government.
Why does the Assessor do this?
1. State law mandates that all property is subject to taxation unless otherwise exempted.
2. Property taxes are based on the assessed value of your property. Property tax bills will show land and improvements values on the land.
3. Improvements include all assessable buildings and structures on the land.
4. These property taxes then support necessary services provided to the residents of Shasta County, such as the Sheriff and Law Enforcement, fire protection, education, parks and recreation, and other vital services.
5. In general, properties that are owned and used by educational, charitable, religious or government organization may be exempt from certain property taxes.
How does Proposition 13 apply to the above?
1. Created in 1978, which substantially reduced property tax rates.
2. The Proposition established that the maximum levy the government can apply cannot exceed 1% of a property’s assessed value. Increases in assessed value are limited to 2% annually.
3. A reappraisal can be caused by four events: a change in ownership; completed new construction; new construction partially completed, and a decline in value, as in market value decline, which is presently the case.
Can any of the above be changed?
"Yes, by a vote of the people to amend the state constitution."
And, all of the registered voters in Shasta County, if they choose, can Vote for Ron Largent for County Assessor...it is your way to become involved for a "New Look in Government in Shasta County".
The Williamson Act
The Williamson Act…What is it?
The Williamson Act, of the State of California, officially known as the California Land Conservation Act of 1965, is a California law that provides relief of property tax to owners of farmland and open-space land in exchange for a ten-year agreement that the land will not be developed or otherwise converted to another use. The motivation for the Williamson Act is to promote voluntary land conservation, particularly farmland conservation.
This Act has been the State’s premier agricultural land protection program since its enactment in 1965, and nearly 17 million of the State’s 29 million acres of farm and ranch land are currently protected. An agricultural preserve must consist of not less than 100 acres, and two or more acres may be combined to meet this requirement under certain circumstances.
Recently, the Williamson Act, and its provisions, were the target of the budget cuts in the State of California. This matter is still being resolved.
For additional details on this Act, and other matters affecting real estate property taxes, please e-mail me at ronlargent@shasta.com
The Williamson Act, of the State of California, officially known as the California Land Conservation Act of 1965, is a California law that provides relief of property tax to owners of farmland and open-space land in exchange for a ten-year agreement that the land will not be developed or otherwise converted to another use. The motivation for the Williamson Act is to promote voluntary land conservation, particularly farmland conservation.
This Act has been the State’s premier agricultural land protection program since its enactment in 1965, and nearly 17 million of the State’s 29 million acres of farm and ranch land are currently protected. An agricultural preserve must consist of not less than 100 acres, and two or more acres may be combined to meet this requirement under certain circumstances.
Recently, the Williamson Act, and its provisions, were the target of the budget cuts in the State of California. This matter is still being resolved.
For additional details on this Act, and other matters affecting real estate property taxes, please e-mail me at ronlargent@shasta.com
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