The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence (new home or resale) on or after January 1, 2009 and before December 1, 2009. The tax credit is equal to 10% of the home’s purchase price, up to a maximum of $8,000.

It is unbelievable the number of people who don’t know about this wonderful opportunity.

In 2008, nearly one out of every two homebuyers were buying for the first time, the first-time homebuyer credit is making it easier for first-time home buyers to enter the housing market this year.

Yes, you need to be a first-time home buyer, but wait, what does it really mean? Well, by law, you qualify as a first-time homebuyer if you have not owned a principal residence during the three-year period prior to the purchase. The purchase date is the date when closing occurs and the title to the property transfers to the homeowner.

Remember that any home that you will used as a principal residence will qualify for the credit, for example, single-family detached homes, condominiums, town-homes, mobile homes even houseboats.

Also, consider that owning a vacation home or rental property not used, as a principal residence does not disqualify a buyer as a first-time homebuyer.

Income limits for claiming the tax credit.
For single taxpayers is $75,000; for married taxpayers, filing a joint return, the limit is $150,000.
Something else, if you are a buyer with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return, the tax credit amount is reduced. The range is equal to $20,000, meaning the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
Basically, if you are single, you get the full credit if you earn $75,000 or less, and no tax credit if you earn $95,000 or more. For those married and filing jointly, the amounts are $150,000 and $170,000, respectively.

For more information consult a tax specialist before proceeding on your eligibility and proper deductions on your returns.

Reference: www.ustreas.gov U.S. Department of the TREASURY

Consider home staging.
The first impression of your house could be the last one, so make the first impression count. Rearrange furniture, make your house inviting. Allow potential buyers feel how their own furniture would fit.

Staging does not have to cost a fortune; small arrangements could make a big difference in giving buyers a complete pleasant experience when visiting your house. Help buyers visualize the house as their own.

You will have more time to do your research and find the best price for repairs instead of finding out problems while your house is under a contract.

Most likely, the buyers will request an inspection prior to closing; any problem with your house will encourage them to become more aggressive in negotiating, wanting to be compensated for every little defect they find. They will ask you to pay for repairs by their terms or negotiate your price down.

Save some money, be proactive.

The condition of his/her house
Make the buyers’ first impression count. Keep your house in the best showing condition possible, little changes will help. Not need to spend a lot of money to keep your house clean and de-clutter. Don’t forget, a pleasant aroma also makes a good impression.

Availability for showing
Is your home easy to show?
Set a positive tone with the buyer, remember, this will be the first contact with your property. Make it easy for them to see, how yours, could be their future home. Be flexible on timing.

Price
How much you paid for your house has little to no effect over its present value.
A Comparative Market Analysis (CMA) will show you where your home stands in comparison to others. Having knowledge of the current market will help you decide on the right price.

Going GREEN is not only about saving our planet; it is also about saving money.

Here are some small updates to start with:

* Change the strips around your window frames, where a substantial heat loss occurs.

* A programmable thermostat can also help you. According to Energy Star a small change like this could save you about $180 every year in energy costs.

* Having a dirty air filter will only slow down airflow, and make your system work harder to keep your house cool or warm. Change your air filter regularly, every month during winter and summer, when the use is heavy. Preventing dust and dirt from building up in the system will save you money in maintenance.

* Switch those incandescent bulbs for fluorescent lamps; they are more efficient and provide high quality lighting. They pay for themselves by saving you energy over time.

* A refrigerator is often the home’s heaviest electricity user, yes, sorry to bring you the news. Make sure your refrigerator door seals are tight, if they are not, replace them. Recommended temperatures are 37° to 40°F for the fresh food compartment and 5°F for the freezer section.

And finally, ok, this one might sound obvious, but hey! I will tell you anyway, turn out the lights! Change some of your habits.