With the Spring Market in full bloom, we thought it would be a good time to talk about some of the fears buyers have when considering a purchase.

Do I have enough money to buy a home?

To first step to finding out how much home you can truly afford is to get pre-qualified for a mortgage.
Also, take a step back and look at your finances. Ideally, you should have around 20 percent of the purchase price to put down. You should also have less than a 36 percent debt to income ratio. Be sure to include all of your monthly obligations in that equation, including student loans, child support payments, alimony, car payments, credit cards, etc.
Once you’ve looked at your savings, make sure that apart from your down payment, you’ll have enough left over to pay closing costs, which include such things as attorney fees and transfer fees. The National Association of Realtors (NAR) reports that this amount averages between 2 and 7 percent of the home price. You also need to have money left as a cushion. What if unexpected repairs, either to your house or car, come up? What if you or a family member needs medical attention? Be sure that you have enough money leftover after the purchase to keep your life running smoothly.

Will I have buyer’s remorse?

There is no such thing as the perfect house, so you should prepare yourself for some mild feelings of “what if”. You may have to give up a few “wants” to get a few “needs” when you buy your next home. Or if this is your first purchase, you may have to buy something a little short of your dream house, and build equity in order to move up at a later date. Try not to lose sight of the big picture. This is a home that you own. You now get the benefits of tax breaks. You are building equity as you pay off the loan. And, hopefully, your home will appreciate in value over the coming years.

How can an unhandy owner handle repairs?

Before you swear off doing some of your own projects or repairs, know that everyone starts somewhere. Take a class at your local home improvement store, invest is a handyman’s guide, or ask a friend that has already tiled their bathroom or fixed a leaky sink to come and give you some pointers.
Be prepared for repairs, maintenance, and updates. Even with a new home, there will be projects. Plan accordingly financially. And if all else fails, hire a professional.

What if I need to move?

Experts recommend that to build equity, you need to have owned your home for at least 3 to 5 years. The NAR recommends, “Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.” If the time is less than five years, then you should be prepared to not make any money on the sale of your home, and even, to “lose” some — in the form of closing costs.
Visit us at www.ShorelineProperty.com for more information.

_____________________________________________

ADRIAN S. PRICE – Realtor®, ALHS

CT Real Estate License # 751876

203-215-2529 Mobile

Fax – 203-245-4069

SHORELINE PROPERTY PARTNERS, LLC

Page Taft Real Estate

52 Wall Street

Madison, CT 06443

89 Whitfield Street

Guilford, CT 06437

35 Main Street

Essex, CT 06413

www.ShorelineProperty.com

When a buyer makes an offer to purchase a home, the purchase price is a prime consideration, but it represents only part of the total value offered to the seller. Problems may arise for both sides of the transaction when this fact is forgotten. The value expressed in a buyer’s offer to purchase, or in a seller’s offer to sell, involves 5 key elements:

· Purchase Price, the stated amount of dollars offered by the buyer, represents a significant contributor to value, but there are other important factors which can reduce the amount the seller receives or which can compromise the transaction. It’s not the purchase price, but the net proceeds of the sale that sellers — and savvy buyers — should concentrate on.

· Closing Date, or the day ownership changes hands and the seller receives the money, can represent cost or value to both parties. Savvy buyers usually attempt to meet the seller’s preferred moving date, especially when the seller has committed to purchasing another property or needs the proceeds of the sale on a specific date. For instance, a closing before that date may be expensive because the seller would have to move out and store everything until they could move into their new home. That double move and the inconvenience represent out-of-pocket costs and time lost that make the actual purchase price lower than stated. A closing date later than the seller’s preferred date may leave the seller owning two homes – and paying off two mortgages – at once. The seller may incur extra costs in arranging bridge financing to meet legal obligations to close on their new home before they receive proceeds from the sale of their current home. Choice of closing date may represent costs or value to the buyer as well. Balancing this reality for both parties is key in negotiation.

· Inclusions and Exclusions to the sale also represent costs and value for both parties. Appliances, heating systems and draperies are common seller inclusions designed to boost value for buyers. If warranties for everything from a new roof or solar panels to new appliances cannot be transferred to a buyer, these items become “second-hand”and will probably represent less value to buyers. Buyers are also free to include excluded seller items, like an antique light fixture, in the offer to purchase. Deals have been lost to disagreements over light fixtures, fireplace accessories and vintage furnishings, so prudent sellers remove contentious items before listing. A buyer may offer less than list price and ask for nothing; a seller could sign back for more money and include items to sweeten the pot. Value is very subjective for these non-real-estate items and that’s where negotiations can get heated.

· Terms and Conditions are clauses in the offer which cover “what if” risks for one party and the obligations of both parties. These clauses detail what the buyer asks the seller to do for the purchase price. Arrange a survey or include a treasured light fixture? Sellers can create conditions in an offer to sell, but usually conditions are of greater concern to the buyer, particularly if approval of a third partly like a lender or city planning department is involved in determining the property’s suitability. Conditions to arrange financing or a home inspection are among the “ifs” that define the offer to purchase. The degree of uncertainty attached to the conditions and the buyer’s related ability to close effect the value of an offer. For instance, a buyer who is pre-approved for a mortgage of sufficient size offers less risk to a seller. However, if the purchase price is significantly-above market value, the lender may not approve the mortgage, so a condition for financing is essential to protect all parties. A full-price offer with conditions that will be difficult to meet may hold less value than an under-list-price offer with no conditions. Alternatively, if the conditions are merely formalities, the conditional offer could represent greater value. Would you recognize the difference if you were the seller? That’s where the expertise of Shoreline Property Partners, LLC becomes valuable…

· Intent and Sincerity are vital aspects of an offer although difficult to quantify. How determined is the buyer to buy, and why? How determined is the seller to sell? If either party changes their mind after the contract exists and before the closing date, the injured party has remedies in court. These legal steps may not make up for lost time and, perhaps, a missed market. An investor or flipper may decide to cut losses and bail out of the deal if the market drops significantly before closing. A seller may have second thoughts if their plans to move fall through. For both parties, value should lie in the certainty that the other party will close in spite of market shifts.

Yes, price matters, but there’s a lot more involved in creating an offer that demands to be accepted. That’s why an experienced real estate professional is a valuable contributor to success. Shoreline Property Partners, LLC at page Taft Real Estate can calculate, or at least estimate, the seller’s net proceeds after costs related to the offer and deduction of commission. The information we provide helps the seller accurately evaluate an offer to purchase. Understanding cost and benefit for all elements of an offer helps a buyer intent on ownership to create the best financial package possible.

Visit us at www.ShorelineProperty.com for more information.

_____________________________________________

ADRIAN S. PRICE – Realtor®, ALHS

CT Real Estate License # 751876

203-215-2529 Mobile

Fax – 203-245-4069

SHORELINE PROPERTY PARTNERS, LLC

Page Taft Real Estate

52 Wall Street

Madison, CT 06443

89 Whitfield Street

Guilford, CT 06437

35 Main Street

Essex, CT 06413

www.ShorelineProperty.com

The real no-permit bite will come when you list your house for sale. A savvy Realtor will uncover the missing governmental permissions when doing a Town Hall search on your property. Unless the home will be purchased with cash, the new owner’s bank’s appraiser will ultimately uncover the “defect” and require it be “fixed” before the new loan can be approved.

Part of the protection that you buy with a Permit is a final inspection and approval of the Building Official as well as Zoning, Wetlands, Engineering, etc. This final approval lives in the file in Town Hall for this address for the benefit of future generations.

What happens if I had the work done without a Permit? Most Town’s will start by doubling the Permit fee. Depending upon the work, some Building Officials may require that the sheetrock be removed so that they can inspect the plumbing and electric behind the walls. It is also possible that the remedy may be the total removal of the improvement!

Wouldn’t it have been easier to get the required Building Permit in the first place? I offer this advice from my desk as a Salesperson at William Raveis Real Estate and also as a builder and remodeler with twenty four years of experience. Please get Building Permits!

Thank you to Shoreline Out and About! This will be my last weekly submission for your Building and Remodeling knowledge. Please tell your friends to get Out and About!

Stephen C. Spurrell- Realtor Neighborhood Builders, Inc (NBI)

Steve @TheWhitemanTeam.com sspurrell@nbict.us

203-458-3449 203-453-3777

We don’t think much about it yet we all live in a symbiotic relationship with a home. In fact, our homes shape us every bit as much as we shape our homes. Even though this life shaping cycle is as invisible to us as the air we breathe, it underpins our ability to thrive. Whereas good air sustains life, a good home boosts it, causing your life to function more smoothly, even to soar in unimaginable ways.

With just a little know-how, you can set up the places where you live, work and garden so that they automatically assist in giving shape to a good life. Take care of your surroundings a certain way and they will take care of you. Fashion friendlier neighborhoods, better homes, and good gardens and you’ll greate a better life for your family. Show your home a little of the right kind of love and your home helps you shape the life you’ll love.

Whether you want to simply rearrange things you already have, renovate or build anew, my passion, as an architect is to help you unleash the life-shaping power in your home. It’s my pleasure to help you fulfill your dreams through attainable and sustainable means.

It’s also my pleasure to help expand awareness of what your home can offer. Your home can reinforce the good habits that lead to happiness and well-being, help you sleep better, save money, make money, help care for children, delight and entertain them, it can help you look more beautiful: the list goes on and on….

But how exactly, do you start a good dynamic with your home? That’s what my blog is about. For a few paragraphs, I’ll be your architect and I’ll share “how-to” secrets. Sometimes, I’ll write step by step about simple, easily attainable ways to transform your home so it transforms your life. Other times, because healthy and stylish living delight, I’ll share more luxe options for you to choose or to imitate.

Because having a great life and a joyous home is more than just architecture and interior design, I’m not going to limit myself, I’ll talk about your neighborhood, garden, pets and the colors that flatter you and help you to be happier. I’m even looking at ways your home can assist you in being thinner and richer!

I’m here to help. Just let me know your domestic needs, you life passions and interests. The more feedback you give, the more this architect can assist you.

So then, let’s bring function and easy living to your life. Let’s organize your home around your dreams and then watch them come true! And if you wish, lets create beauty and add a dash of style. Together we’ll shape a healthier, happier world, one life, one home at a time. It all begins at home…

Where can you shut off your water or electricity to your whole house? If you don’t know, you should. It will likely be in a time of emergency that you should not have to think, but only react.

Let’s start with the water system. You walk in the door and there is water coming from the ceiling. That’s bad… It could be a broken pipe or it could be an overflowing toilet. It really doesn’t matter the cause. The immediate need is to shut off the water! If you have city water, there is a pipe coming through the foundation wall, generally on the street side of the house. There is a handle or lever that ties the water from the street water main to the piping inside of your home. Righty tighty, lefty loosie. Turn it clockwise until it is tight. If it is a lever handle, open will be parallel with the pipe, turn it ninety degrees until it is perpendicular to the pipe. The same applies to a well system. The well pipe comes through the foundation and is tied to a (almost always) blue holding tank. At the bottom of the tank are the same type of valves. Use the same shutoff procedure.

Now let us move onto electricity. Before your unscheduled emergency, check the electric meter on the outside of your home. Generally, the electrical panel is directly inside that panel or immediately below it in the basement. If the electrician that installed it could not get the panel within ten feet of the meter, your main breaker (shutoff) is hiding under a little cover below the meter. In most cases, the main breaker will be inside the panel box on the top. The house circuit breakers operate right to left and the main operates up and down. Inside the panel box, down is off. This will shut off the power to the entire house.

If you are not comfortable with any of this, call your contractor for a fifteen minute lesson in emergency preparedness.

In future columns I will be discussing. Please insist on a Building Permit. Please email questions or suggestions for future articles to sspurrell@nbict.us

Neighborhood Builders, Inc (NBI) has been building and remodeling on the shoreline since 1986. No job is too big or too small. Please call Stephen Spurrell at 203-453-3777. Connecticut Home Improvement #522685 New Home #8

Please tell your friends to get Out and About!

]]> http://www.shorelineoutandabout.com/demo/blog/2010/02/building-and-remodeling-where-are-my-main-utility-shut-offs/feed/ 0 http://www.shorelineoutandabout.com/demo/blog/2010/02/building-and-remodeling-why-do-my-floors-squeak-and-what-can-i-do-about-it/ http://www.shorelineoutandabout.com/demo/blog/2010/02/building-and-remodeling-why-do-my-floors-squeak-and-what-can-i-do-about-it/#comments Fri, 05 Feb 2010 14:34:37 +0000 Steve Spurrell http://www.shorelineoutandabout.com/demo/?p=4208 Whether you live in a new or old house, you may be experiencing a squeak when you step on a certain area of floor. What the heck causes that you ask? More importantly, how can I fix it? The cause of the squeak is almost always two pieces of wood rubbing together. In antique homes, [...]]]>

Whether you live in a new or old house, you may be experiencing a squeak when you step on a certain area of floor. What the heck causes that you ask? More importantly, how can I fix it?

The cause of the squeak is almost always two pieces of wood rubbing together. In antique homes, flooring boards were nailed directly onto the floor joists. In newer homes, there is a layer of plywood on top of the floor joists and then the finished floors are installed on top of the plywood. The plywood level is the common flaw in today’s construction. Not the plywood itself, but the installation. If any of the edges of the plywood are not on top of a floor joist and/ or not nailed and glued sufficiently; the result is some slight movement under pressure. Therein lies the squeak.

Now onto the repair ideas. Hopefully, there is access to the bottom of the floor structure. If you live in a one floor ranch with an unfinished basement, this fix will be easy. After locating the squeak, you can add some additional blocking on the side of the floor joist using construction adhesive. If this doesn’t make any sense, hire a carpenter for a small job. If your squeak is on the second floor of a colonial style home, your squeak is above a finished ceiling. The earlier repair will not be as easy without opening the sheetrock ceiling. This is not a home owner repair. Your contractor will figure out exactly where the floor joists are located under the finished floors. They will then install very thin finished screws into the finished floors to tie together the loose plywood, floor joist, and finished floors.

In future columns I will be discussing Where are my main utility shut off’s, and Please insist on a Building Permit. Please email questions or suggestions for future articles to sspurrell@nbict.us

Neighborhood Builders, Inc (NBI) has been building and remodeling on the shoreline since 1986. No job is too big or too small. Please call Stephen Spurrell at 203-453-3777. Connecticut Home Improvement #522685 New Home #8

Please tell your friends to get Out and About!

]]> http://www.shorelineoutandabout.com/demo/blog/2010/02/building-and-remodeling-why-do-my-floors-squeak-and-what-can-i-do-about-it/feed/ 0 http://www.shorelineoutandabout.com/demo/blog/2010/01/building-and-remodeling-the-good-and-the-bad-of-an-antique-home/ http://www.shorelineoutandabout.com/demo/blog/2010/01/building-and-remodeling-the-good-and-the-bad-of-an-antique-home/#comments Fri, 29 Jan 2010 14:30:39 +0000 Steve Spurrell http://www.shorelineoutandabout.com/demo/?p=4026 If you are looking to purchase a new home and are sure you want an antique structure, I’m not going to talk you out of it. I will however, make you aware of some baggage that comes with the new territory. Very old homes have history that just oozes out of the walls and probably [...]]]>

If you are looking to purchase a new home and are sure you want an antique structure, I’m not going to talk you out of it. I will however, make you aware of some baggage that comes with the new territory. Very old homes have history that just oozes out of the walls and probably a history that you can recite to your visitors until you turn your dwelling over to the next lucky owner. Now let’s move on to the non emotional building and remodeling perspective.

First and foremost, we will expect that nothing is level or plumb. You know the story. A dropped marble will roll all through the house until it finally stops in the lowest corner. Installing anything new requires a decision. Should it be installed using a level or simply parallel to everything else? Cabinets and therefore countertops have to be installed to be level so that they may function. Everything else is often installed to be “Eye Sweet”. In other words, it should look like it was always there and in keeping with the room.

Next let’s consider additions or alterations to utilities that we all take for granted. All of these homes were built and occupied by great folks that had no electricity or plumbing of any kind. They have since been retrofitted with plugs, switches, and lights as well as working bathrooms, and a furnace of some kind. Any additions or upgrade to these systems often involve exposed wire molding and plumbing. This is not what folks are used to seeing in a contemporary home but almost a necessary in an antique.

Many antique homes are found in an area of your town that may have deemed as a “Historic District”. In these areas, you need to ask a governmental committee to make any exterior changes. If you have original single pane non insulated glass windows, you may have to install a storm window on the inside instead of the outside. If you have an old drafty wood front door, changing it may not be an option.

I love to visit antique homes and enjoy hearing the rich history that so few of our modern day buildings enjoy. At six foot four inches tall, my personal “shortcoming” is door heights. I have to duck through most but that is a small price to pay to be part of a home that could be two hundred years old! If I an antique home is your dream, go for it! When you call me to remodel, it’s going to cost a little bit more than the average…

In future columns I will be discussing Why do my floors squeak and what can I do about it, and Where are my main utility shut off’s, and Please insist on a Building Permit. Please email questions or suggestions for future articles to sspurrell@nbict.us

Neighborhood Builders, Inc (NBI) has been building and remodeling on the shoreline since 1986. No job is too big or too small. Please call Stephen Spurrell at 203-453-3777. Connecticut Home Improvement #522685 New Home #8

Please tell your friends to get Out and About!

]]> http://www.shorelineoutandabout.com/demo/blog/2010/01/building-and-remodeling-the-good-and-the-bad-of-an-antique-home/feed/ 0 http://www.shorelineoutandabout.com/demo/blog/2010/01/real-estate-resolutions-2010/ http://www.shorelineoutandabout.com/demo/blog/2010/01/real-estate-resolutions-2010/#comments Fri, 29 Jan 2010 13:45:10 +0000 Adrian Price http://www.shorelineoutandabout.com/demo/?p=4060 What is your New Years Resolution??  Sure you can lose weight, get in shape, launch a business or find a new job. But haven’t you also procrastinated long enough about buying a home? How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home [...]]]> What is your New Years Resolution??  Sure you can lose weight, get in shape, launch a business or find a new job. But haven’t you also procrastinated long enough about buying a home?

How long has it been since you upgraded your home with a new roof, spiffed up landscaping or pulled some other home improvement?

And that post-World War II ranch home of yours could certainly use a few energy efficient do-overs.

Look to low mortgage interest rates, bargain home prices and other favorable market conditions to give you the resolve to consider home sweet home in your list of must-dos next year.

· Join the nearly 18 percent of Americans who say they’ve resolved to become a first-time homebuyer in 2010, according to a new Move.com survey. That’s both a smart move and a timely one. Mortgage rates are at record lows, prices are down and the $8,000 first-time home buyer tax credit has been extended until April 30, 2010. It’s also been expanded to include a $6,500 tax credit to move-up buyers.

· More than 15 percent of those who responded to the survey said saving money to purchase a new home is their top real estate resolution for the New Year. Resolve with them to learn the best way to budget, plan ahead and save money.

· Nearly 40 percent say No. 1 on their list of resolutions is starting a home improvement project. Cheap home equity money should help them not only start, but also complete the job.

· The Move.com survey also found 9.1 percent most wanted to fix their credit so they can buy a home next year. To get started all you need to do is take a look at your next credit card statement for a toll free number directing you to counseling help. That’s part of the new, but little-known mandated disclosure provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).

· Nearly 16 percent are wisely considering buying an investment property as their top resolution. They couldn’t have picked a better time in the last half decade. Another Move.com survey recently found more than 12 percent of homebuyers today plan to purchase a home as an investment, compared to less than half, only 5.6 percent, just seven months ago, thanks to more attractive investment conditions.

“If you anticipate inflationary conditions in the future, investment property could be a good bet to hedge against it,” said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.

For more information on this and any other Real Estate related Questions, please contact us on the web atwww.ShorelineProperty.com

Adrian S. Price – ALHS

Robin Keegan – Realtor®

Vicki Littell – CRS, GRI, QSC

52 Wall Street

Madison, Ct 06443

203.245.1593

89 Whitfield Street

Guilford, CT 06437

203.453.6511

Almost every construction contract including both new construction and remodeling, will include allowances for particular items to be purchased and installed. Why are these necessary, and how will you judge if they are sufficient without going over budget? Let’s get into the details.

With some assistance from you contractor, you can specify what type of windows and roofing you will find in your contract. But what about cabinets, tile, and carpet? If the contractor specifies top end products, most consumers will not know that these items are the best of the best. Instead, traditionally they will compare contractor number ones bottom line of his estimate to contractor number two. The numbers will be much higher including higher quality materials and contractor number one is commonly eliminated for “being too high”. Allowances are also often items that are subject to personal preference. If you like the three dollar per square foot tile just as well as those that are twice the price, you have made an easy decision. What about the client that cannot do without the twenty dollar per square foot tile? The way for contractors to offer a legitimate construction contract is to include allowances. They will be shown as dollars per square foot or as a total line item dollar value (ie Floor Tile listing specific rooms, with a total labor and materials of $XXX.00). This leaves the options of certain materials selection in the hands of the client.

I advise all of my clients to stick to the bottom line of the budget. If they decide to over spend in one section, they should consider saving money in another section. If my clients are going to exceed their contract value, it should be their decision and not mine. If the contractor constantly updated the allowance spread sheet, these decisions should be easier for the client.

One last word of warning. Some contractors will purposely include allowances that are too low for anyone’s taste. That way his bottom line looks lower than his competitors. If you are fearful of this possibility, take your blueprints to a tile supplier, for instance and get their price for materials and compare to your allowance.

In future columns I will be discussing, The Good and the Bad of an Antique Home, Why do my floors squeak and what can I do about it, and Where are my main utility shut off’s ? Please email questions or suggestions for future articles to sspurrell@nbict.us

Neighborhood Builders, Inc (NBI) has been building and remodeling on the shoreline since 1986. No job is too big or too small. Please call Stephen Spurrell at 203-453-3777. Connecticut Home Improvement #522685 New Home #8

Please tell your friends to get Out and About!

]]> http://www.shorelineoutandabout.com/demo/blog/2010/01/building-and-remodeling-what-are-these-allowances-in-my-contract/feed/ 0 http://www.shorelineoutandabout.com/demo/blog/2010/01/nows-the-time/ http://www.shorelineoutandabout.com/demo/blog/2010/01/nows-the-time/#comments Fri, 22 Jan 2010 10:06:50 +0000 Adrian Price http://www.shorelineoutandabout.com/demo/?p=3879 If you are considering a move……….now is the time folks.  Our government is giving away cash!!  Here’s a great article explaining the deal! Move up, move down, move sideways; it just doesn’t matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that [...]]]> If you are considering a move……….now is the time folks.  Our government is giving away cash!!  Here’s a great article explaining the deal!

Move up, move down, move sideways; it just doesn’t matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for “move-up” homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one. Indeed, even the November 6 White House Press Release said that the credit would be available to qualified homeowners who “wish to step up to a new home.” Same implication. So, it is worth emphasizing that the credit is equally available to homeowners who are moving down, cost-wise.

The move-down homebuyer is not an unusual phenomenon. For years retirees have been known to move from a larger home to one that is smaller and often less expensive. Moreover, it is reasonable to think that current economic conditions may lead to even more move-down buyers. Just as thousands of families have found it necessary or desirable to downsize with respect to their cars and their general lifestyle, so it may be when it comes to considering the costs of owning and maintaining a larger house than they really need.

The same requirements apply to both move-down and move-up buyers.

First of all, the previous home must have been occupied as the buyer’s principal residence for at least five consecutive years out of the past eight years. Two examples: (1) Suppose that during the past eight years you occupied the property for three years, then rented it out for two years (perhaps because of a job transfer or temporary assignment), and then occupied it again for three years up until now. Even though you had occupied the property as your principal residence for six of the past eight years, you would not be eligible because you had not occupied it for five consecutive years. (I’m not saying this makes sense; I’m just reporting on the requirements.) (2) Suppose you bought a home eight (or more) years ago, you occupied it as a principal residence until two years ago when you sold it. Would you qualify? Yes, because you had occupied it as a principal residence for at least five consecutive years of the past eight.

There are important issues of timing as well. You must have purchased (that is closed on) the replacement home sometime after 11/6/2009 and before 4/30/2010. With one exception: the new home will also qualify if you had entered into a binding contract no later than April 30, 2010 and you closed no later than June 30, 2010.

The time the previous home sold doesn’t matter. Indeed, it doesn’t even have to be sold. You might, for example, keep it as a rental.

The tax credit is for 10% of the purchase price up to a maximum credit of $6,500 for joint filers and $3,250 for those filing separately. There is a full credit for singles whose income does not exceed $125,000 and for couples whose income is no more than $225,000. A phase-out applies to higher incomes up to $145,000 and $245,000 respectively.

The cost of the new home may not exceed $800,000.

The new home must be used as a principal residence for a three year period subsequent to closing, or else the credit must be repaid.

This program won’t help everyone, of course; but it’s pretty nice for those to whom it applies.  For more information on this program or any of your Real Estate related questions, we welcome your inquiries at www.ShorelineProperty.com