REAL ESTATE NEWS & INFO
State of New Jersey School Reports
See how the State of New Jersey, Department of Education rates the school districts throughout the state. You can see each county, district and school - Millburn/Short Hills Schools are highlighted.
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Homebuyer Tax Credit
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation,Congress has passed new legislation that:
•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.
* Current home-owners must have lived in their present home for 5 consecutive years.
* Trade-up does not necessarily mean trade-off The Worker, Homeownership and Business Assistance Act of 2009offered a new $6,500 tax credit to current homeowners on the purchase of a new primary residence.
However, the law does not require sale of the current home. Therefore in aspiring to "trade-up," a family does not necessarily have to give up the fond memories of the former residence. It can be retained for investment, vacation or other purpose. However, the newly purchased home must be the "principal" residence in which the family lives "most of the time" according to the Internal Revenue Service (IRS).
* Individual buyers are eligible if their income is $125,000 or less. Married buyers are eligible if their income is $225,000 or less. The tax credit "phases out" between $125,000 - $145,000 (individual) and
$225,000 - $245,000 (married).
* Purchase price of the home must be $800,000 or less.
* New property must close on/before 6/30/10.
* Claim instructions require more documentation. Taxpayers claiming the home buyer credits must file the IRS forms manually. They cannot be filed electronically. The IRS has revised Form 5405 for taxpayers to claim the home buyer tax credit. Backup documents, such as the HUD-1, must now be included to verify settlement date. For the repeat buyer tax credit, the IRS recommends including statements to verify the length of ownership, such as records regarding mortgage interest, homeowners' insurance or property taxes. These documents must show that it was the principal residence for at least five consecutive years of the previous eight.
* Sale price limit includes closing costs
It is known that the property to be purchased must be located within the United States and it cannot cost more that $800,000. According to the IRS instructions for form 5045, "The purchase price is the adjusted basis of your home on the date you purchased it. This includes certain settlement or closing costs (such as legal fees and recording fees) and your down payment and debt to purchase the home (such as a first or second mortgage or notes you gave the seller in payment for the home)." Adding closing costs to the sale price can be an important factor in an expensive state like New Jersey with a vast inventory of homes available close to the $800,000 limit.
If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.
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Fannie Mae Home Valuation Code of Conduct
Fannie Mae Code of Conduct Frequently Asked Questions effective January 2009
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The Federal Reserve Cut Rates..so why do Mortgage Rates rise?
Interest rates are often a mystery for many people applying for home loans. How is possible for mortgage rates to rise after the Federal Reserve cut its benchmark interest rate? This article explains that and more.
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Housing and Economic Recovery Act of 2008
The Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, H.R. 3221) designed primarily to address the Subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008. It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It's intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States will be authorized to refinance subprime loans using mortgage revenue bonds.
It also enables seniors to borrow as much as $625,500 from the equity in their home to use any way they please, including paying off existing mortgages and other debts, paying for healthcare, needed home repairs, or supplement retirement income.
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Are You a United States Veteran?
If you are a United States Veteran you may want to check with your local tax assessor to see if you qualify for a reduction in your property taxes.
Towne's Tips Summer 2007
 Tips from Towne Realty's Summer 2007 Newsletter
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Millionaire Luxury Real Estate Tax
On June 28, 2004 former Governor McGreevey signed legislature to increase New Jersey's Realty Transfer Fee and created a 1% Luxury Tax paid by the buyer on sales of homes over $1 million.
On July 8, 2006 legislation was adopted to include the sale of commercial property, also paid by the buyer, on sales of income producing property sold for over $1 million.
Payment must be made by the buyer at time of closing to the State of New Jersey
The Otteau Report
The Otteau Report is prepared as part of a continuing effort to bring a focus to the complex and highly diversified real estate market in New Jersey. The information and analyses contained in the report are based in whole or in part on data supplied by various sources including Boards of Realtors and Multiple Listing Systems. If you would like information on the lastest statistics on The Otteau Report, please call us and we will provide you with the information.
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Fire Extinguisher Requirement
A November 2005 law requires that single-, double- or triple-occupancy homes be equipped with a fire extinguisher upon sale, lease or transfer. Learn more by viewing the bill’s text online by visiting the Legislature’s website http://www.njleg.state.nj.us), conducting a “Bill Search” for S1294.
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Relocation
Towne Realty is a member of Worldwide ERC and has a relocation department which works with businesses and fellow Realtors in the area. We have handled transactions with MSI Mobility, Wiechert, Prudential and William Raveis in CT just to mention a few.
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