New Legislation

New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

• Extends deadlines for purchasing and closing on a home.
• Authorizes the credit for long-time homeowners buying a replacement principal residence.
• Raises the income limitations for homeowners claiming the credit.

Under the new law,an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived  in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

General Information

Homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit. The credit:

• Applies only to homes used as a taxpayer’s principal residence.
• Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

Source. IRS.gov

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Kevin & Monica Ray
Office: 406-822-SOLD (7653)
Cell: 406-207-1185
Email: RayTeam@YourMT.com

Montana Real Estate Resources

This site contains information on all areas related to Montana Real Estate. Browse the articles below for information on investing, moving, buying, selling, and more!

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Do I have to sign a Buyer Broker Agreement if I’m going to work with a real estate agent?

The policies vary from company to company and from agent to agent regarding Buyer Broker Agreements as does the timing at which they are signed. Some agents require you to sign a Buyer Broker Agreement before they will show you a single house. Others will wait until you are ready to present an offer on a property.

Types of Buyer Broker Agreements

There are different types of Buyer Broker Agreements. First, you may have an Exclusive Agreement that says you will only work with that agent. Second, there are Non-Exclusive Agreements that give you the option to work with multiple agents.

You can also specify the type of property, location, and price range that the agreement will apply to.

There are both pros and cons to signing a Buyer Broker Agreement.

Pros: You know that the agent is working for you and representing your best interests in a transaction. It has also been lined out if there will be a fee due to them if you decide to purchase a home that’s For Sale By Owner or if you don’t purchase at all. Everything is clear and in writing.

Cons: If you sign a Buyer Broker Agreement with an agent and then realize that you do not want to work with that person, you may be committed to paying the agent a commission when you buy and may not be able to find other representation.

Whether you choose to sign a Buyer Broker Agreement initially or not is a personal decision. Business transactions are most successful when based on mutual trust and when all parties are working for a Win Win situation. If everyone is on the same page, then a written agreement is just a formality.

Real Estate Agents are professionals who work on commission and only get paid at the time of a sale. If your agent provides good value, information, and is honest and forthright, a Buyer Broker Agreement lets them know that you will be loyal to them in a transaction as well. This can go a long way in building a productive business relationship.

If you decide to sign you may consider having a clause that will allow you to cancel the agreement if you determine that you will be unable to work with that specific agent and that no fee will be due. It is also worth being specific about how/if a commission will be paid if you decide to purchase a For Sale By Owner (FSBO) property.

Agents in Montana are required to have a signed form in their file if they represent you in the offer to buy property. They are also required to explain agency to you. So when you get to the point of making an offer on a property, be prepared to sign the agreement as part of the standard Buy/Sell packet of paperwork.

In Montana, there are three basic types of agents in a transaction:

• Seller’s Agent or Listing Agent - This is a the agent who has the listing. They have a contract with the seller that outlines the terms of the listing and any commissions that will be paid upon sale of the property. The listing agent works for the seller. This is important to remember when you’re attending Open Houses.
• Buyer’s Agent - This person represents the buyer in a transaction and works on behalf of the buyer’s best interests. If the property is listed by an agent who participates in the local Multiple-Listing-Service or MLS, the seller’s agent will pay the buyer’s agent a commission based on what has been agreed to in the contract with the seller and advertised on the MLS.
• Dual Agent - This person tries to represent both the buyer and a seller in a transaction. While sometimes this works out well, it can be very challenging to fairly represent both sides at the same time in a negotiation.

So Why Should I Have a Buyer’s Agent?

1. They represent your best interests in a real estate transaction. This can result in both TIME and MONEY saved for you!
2. Since a Buyer’s Agent doesn’t represent any particular house, they are in a better position to act as your ADVISOR and less like a salesperson.
3. An experienced Buyer’s Agent knows the area and the market. They can help you identify potential homes and provide information on what a home is worth in the current marketplace.

Frequently Asked Questions for Buyers

Here’s a video that has some great information for potential homebuyers.

 1.) Sit down with a qualified lender

2.) Honestly evaluate your Wants versus Needs in a home

3.) Pick the right Realtor(R) – One that looks after your best interest

4.) Do your homework

5.) Manage your expectations

Read about Being a VIP Buyer and how we can help you make the Home Buying Process Easier, More Convenient, and potentially Save You Money!

Search Missoula & Western Montana Homes For Sale

There are some really good deals on homes in the Missoula area right now, including new construction homes and homes with large yards or small acreage.

With interest rates at the lowest they’ve been in decades, now is a great time to invest in Missoula Real Estate.

View a List of Homes in Missoula Under $100,000

View a List of Homes in Missoula Under $150,000

View a List of Homes in Missoula Under $200,000

So just how much would your payment be on these homes? Check out our favorite mortgage calculator to find out!

Search All Missoula & Western Montana Listings 

For more information on Missoula Real Estate Market trends, contact Kevin and Monica Ray of Access Realty at 406-207-1185

Lender Checklist: What You Need for a Mortgage

•  W-2 forms — or business tax return forms if you’re self-employed — for the last two or three years for every person signing the loan.
• Copies of at least one pay stub for each person signing the loan.     
• Account numbers of all your credit cards and the amounts for any outstanding balances.
•  Copies of two to four months of bank or credit union statements for both checking and savings accounts.
•  Lender, loan number, and amount owed on other installment loans, such as student loans and car loans. 
•  Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
• Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account. 
• Copies of your most recent 401(k) or other retirement account statement.
• Documentation to verify additional income, such as child support or a pension. 
• Copies of personal tax forms for the last two to three years.

Source: Realtor.com

For more information on home ownership, or on Missoula or Western Montana homes, contact Kevin and Monica Ray of Access Realty at 406-207-1185.

A first-time home buyer is defined as someone who has not owned a principal residence during the three-year period prior to the new purchase in the act, making people who haven’t purchased a home in awhile also eligible.

There was a 7500 tax credit available to first-time homebuyers last year but that credit had to be paid back. The new one does not and the credit is given to you with your regular tax return.

For more information on being a First Time Homebuyer in Missoula or Western Montana, contact Kevin and Monica Ray of Access Realty at 406-207-1185.

More Information on the 8000 Tax Credit