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Bradenton – Sarasota:

The homeowners market has changed a little in 2011, but here are some valuable tips to keep your insurance costs down.

Last year rates went up significantly so the price of insurance rose. This year the rate increases aren’t so bad, but the prices are going up significantly because the insurance company cost estimators have gone up significantly which increases the amount of coverage needed for the policy (more coverage, more expensive policy)…..

Citizens the Florida insurer of last resort, in particular because they switched their cost estimator and no longer take other insurance cost estimators, so the insurance agents are stuck with what theirs comes up with. Citizens writes about 20% of the insurance State wide and almost everything 30 – 40+ years of age in South Florida (especially during hurricane season when a lot of the private companies shut down for new business).

The way to combat this is to be sure you send an appraisal (with an estimated cost to rebuild on it, usually on the 3rd page: “Total Estimate of Cost New” – not the actual value of your property) when you get one to whomever is doing the insurance quote.

Almost all companies will allow the figure on the appraisal to be used over their own cost estimator. Other insurance info

FYI: Other items greatly influencing the home insurance costs are:

The older the home, the more expensive the insurance (greater risk, less companies willing to write it, & the cost to rebuild goes up as the home gets older so more coverage is needed). *

Block homes will many times get a better Wind Mitigation discount than Wood Frame because of the roof to wall attachment. *

Any home built 2002 or later does not need a Wind Mitigation inspection, because it has been built to the latest building code and automatically gets the best discounts. *

HIP shaped roofs get a discount (parallel to the ground on all sides and not a flat roof. HIP-Gable does not get a discount, unless it is HIP on over 50% of each side of the home.

We have knowledgeable insurance brokers on hand who can help you reduce your insurance costs!

Axel Weiss, Realtor, Broker
Weiss International Realty
The INTERNATIONAL Florida Real Estate Company
Bradenton, FL 34205
www.bradentonbroker.com
www.weissinternational.com

Please use our contact form for email inquiries!

The result: Hundreds of thousands who’ve already filed for the credit will have to give the money back.

More than 2.6 million eligible for the credit have bought homes since July 2008. They’ve received $19 billion in tax breaks.

But it turns out nearly half of those who received the money for the credit, claimed on their 2009 tax returns, will have to return it, according to an audit from the U.S. Treasury Inspector General for Tax Administration.

And a recording error could lead the IRS to ask tens of thousands more to return the money even though they are entitled to keep it.

This means anyone who bought a home in 2008 or later should make sure they applied for the correct credit and compensated accordingly. Paperwork should be checked, and buyers who are asked to repay need to double-check that, too.

Apparently, some mistakenly thought they qualified. Others tried to cheat the system, and the IRS failed to catch them until after the checks cashed.

About 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 return should not have received the money.

Part of the confusion was because homebuyers were eligible for two different types of credits, depending on when their homes were purchased. The government’s first version of the credit was a no-interest loan of up to $7,500. It was required to be paid back over 15 years.

Congress eliminated the repayment requirement for homes bought in 2009, but those who claimed the credit for homes purchased in 2008 will still be required to repay it, beginning when they file their 2010 income tax return. Some who bought in 2008, the audit said, tricked the IRS into granting them the credit by lying about their closing date on their application.

But the IRS caused part of the problem. Apparently, it recorded the wrong home purchase date for about 73,000 that claimed the credit. That could mean some will be asked to pay back money they weren’t required to repay, the report said.

Here are some things to keep in mind if you haven’t yet claimed your credit or if you’re checking your paperwork.

• You don’t have to wait to claim your credit on your 2010 return if you bought this year. If you purchased a home before the April 30 deadline, you can amend your taxes to claim the credit.

• There are two credits available. One is for first-time buyers or those who have not owned a home in the past three years. The maximum for this credit is $8,000 and does not have to be paid back. It applies to purchases made this year between Jan. 1 and April 30.

• Some buyers who already owned homes can claim a credit worth up to $6,500 for purchases made between Nov. 7 and April 30. To qualify, the buyer must have owned a primary residence for at least five consecutive years out of the past eight years. This credit also does not need to be paid back.

• There are income and price requirements. If the home was purchased after Nov. 6, it can cost no more than $800,000. Also, if purchased after that date, individuals cannot earn more than $125,000 and married couples filing jointly cannot earn more than $225,000.

• If you’re claiming the credit, a paper filing is necessary. Only taxpayers not claiming the credit can file electronically. Buyers can still use electronic forms, but must print them out and mail them in, along with form 5405.

• Buyers must prove they are eligible. You’ll need to send a copy of the HUD settlement statement along with the tax form. If you’re claiming the longtime owner credit, also include proof, such as copies of mortgage interest statements, property tax records or homeowner’s insurance records.

• The credit is for your primary home. If you decide to rent or sell the home within three years, the credit must be repaid.

To read more about the IRS rules for the three tax credits, visit its website. For answers to specific questions regarding a home sale, buyers should contact a tax advisor.

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.

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.

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.

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.

For more information contact us.

AOL is reporting that Sarasota, Florida is the 2nd most undervalued cities in the United States:

Sarasota is a relatively upscale community on Florida’s west coast. “It’s a nice boating community, and they have got a lot of beautiful homes there,” says Jack McCabe of Florida-based McCabe Research & Consulting. After home prices plunged 44 percent from the first quarter of 2006 to the first quarter this year, the market presents would-be buyers with some attractive opportunities. IHS Global Insight considers the median home price in Sarasota — $141,000 — to be 28 percent undervalued.

 This is good news for buyers who are planning to buy a home in Sarasota.

We often hear from buyers that they are trying to time the bottom. But don´t wait too long. We are seeing that the better properties are again being sold within weeks or even days. Many investors are coming back to the Florida Real Estate market and buying well priced properties in good locations. There are still bargains out there – but remember that this buyer´s market won´t last forever!

If we can help you find a Sarasota home for sale give us a call at 941.866.1666 or use our Sarasota MLS search to find your next home.

The funds are part of the $482,236 in State Housing Initiatives Partnership (SHIP) funding from the Florida Housing Finance Corporation that the City received for the 2008-09 program year.

To qualify, the applicant must be earning up to 80% of the Area Median Income but the maximum annual income must not exceed the following limits:

Family size  

1 Person/$34,900
2 Persons/$39,900
3 Persons/$44,850
4 Persons/$49,850
5 Persons/$53,850
6 Persons/$57,850 
7 Persons/$61,800  
8 Persons/$65,800

The City will accept applications for the housing rehabilitation assistance program from Aug. 3-13. 

Applicants must complete a first-time homebuyer’s class and be approved for a mortgage prior to applying. Applications submitted after the deadline will not be considered. Down payment assistance will be awarded on a first-come, first-ready basis to persons owning homes within the City limits.

Source: www.cityofbradenton.com

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Beginning July 1, those who quality for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund. The program will operate through local county housing administrators, though details are still being worked out.
© FLORIDA ASSOCIATION OF REALTORS

Our beautiful area is definitely a great place to be all year round.  We admit it – we´re crazy about this region, from the blue-green Gulf and wild rivers to buzzling Sarasota Downtown  and a word-class cultural and restaurant scene.

Unlike many beach communities, things don´t come to a halt in the off season. Rather the off season allows locals to enjoy our serene white sandy beaches all to themselves.

There is plenty of activity all year round: boaters, golfers and sun-seekers all find happiness in the Bradenton/Sarasota region!

Wheather you have your eye on a condo on the island, a home on the golf course or an expansive rural home, the Bradenton/Sarasota offers lots of choices for all budgets and tastes.

From an investment standpoint, you may be nervous about the current housing market. But especially this market offers lots of opportunities for buyers. Low interest rates and a large market favor anybody who is looking to invest.

Take advantage of the buyer´s market by checking out the local real estate. The variety of homes makes sure thateveryone can find their personal paradise. Enjoy the lifestyle you deserve – make your vacation last a lifetime!

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