New IRS Information on Home Buyer Tax Credit
By · CommentsImportant IRS updates on claiming the home buyer tax credit have recently been announced. The agency has published an updated version of Form 5405 as well as instructions for home buyers using it to claim the $8,000 first-time buyer credit as well as repeat buyers seeking to claim the $6,500 credit. Updates to the form include the extended purchase date window (tax credit-qualified homes must be under contract prior to May 1 and close before July 1). And yes, even though the revised Form 5405 still references the “First-Time Homebuyer Tax Credit,” it is also intended to be used by repeat home buyers, who must have lived in a single principal residence for five of the last eight years prior to purchasing their new home for which they plan to claim the tax credit.
Beyond these updates, the IRS is also requiring additional documentation for home buyers who claim the credit for purchases after Nov. 6, 2009. Buyers must now provide a copy of the HUD-1 form or, in cases where that form is not used, a certificate of occupancy for a newly constructed home. For purchases taking place after April 30, a copy of the signed sales contract must also be supplied. Meanwhile, in order to claim the $6,500 repeat buyer tax credit, home buyers must attach one of the following for five consecutive years of the last eight to demonstrate that they meet the repeat buyer qualifications: a Form 1098 reporting mortgage interest; a property tax statement; or home insurance records.
Tax credit buyers should also know that, due to the new documentation requirements, those claiming either the $8,000 first-time home buyer credit or the $6,500 repeat-buyer credit cannot e-file. As a result, taxpayers should be prepared to wait at least 12 to 16 weeks to receive their refunds. On a final note, NAHB has recommended options to Treasury and IRS officials for homebuyers who do not use a HUD-1 form and whose local jurisdiction does not issue a certificate of occupancy. We are awaiting their response at this time. Get more information on NAHB’s consumer tax credit Web site at: www.federalhousingtaxcredit.com.
MAME Award Winners Announced
By · CommentsThe Sales and Marketing Council of The Builders Association of Greater Indianapolis announced the winners of its 2009 MAME (Merchandising and Marketing Excellence) Awards. The awards were presented during the Industry Awards Gala at the Indiana Roof Ballroom on Friday, January 15. The MAME awards pay tribute to housing industry professionals for excellence in new home sales and marketing.
2009 MAME WINNERS
Grand Marketing Award
Beazer Homes
Best New Home Design – Detached
$151,000 – $180,000
Beazer Homes
$181,000 – $250,000
Beazer Homes
$251,000 – $450,000
Beazer Homes
Best Custom Home
$451,000 – $600,000
Design Gallery Homes by Drees
$601,000 – $850,000
Bedrock Builders
Best Interior Design
$200,000 to $350,000
Beazer Homes
$351,000 to $500,000
Bedrock Builders
.
Advertising
Remodeler
Steve Gray Renovations Inc
Builder
Bedrock Homes
Best Realtor Relation Promotion/Campaign
Beazer Homes
Best Whole House Remodel
Over $200,000
Bedrock Builders
Best Room Addition
Under $100,000
The Lifestyle Group
From $100,000 to $200,000
Maple Road Construction
Best Kitchen Remodel
Under $40,000
The Lifestyle Group
$40,000 – $75,000
Case Handyman and Remodeling
Over $75,000
Case Handyman and Remodeling
Best Basement Remodel
Under $40,000
Case Handyman and Remodeling
Best Bathroom Remodel
$25,000 to $50,000
Case Handyman and Remodeling
Over $50,000
Case Handyman and Remodeling
Best Specialty Room
Under $50,000
Maple Road Construction
Best Outdoor Living
$25,000 to $50,000
Bedrock Builders
Over $50,000
Steve Gray Renovations
The evening was sponsored by: Indianapolis Power & Light, Citizens Gas, Vectren Energy Delivery, Airtron, Bedrock Builders, Clark Appliance, Frye Electric, Remodelors Council and Speedway SuperAmerica.
For more information about the Sales & Marketing Council, call the Builders Association of Greater Indianapolis at 317-236-6330 or visit www.BAGI.com.
Builders Association Service Award Winners Announced
By · CommentsThe Builders Association of Greater Indianapolis (BAGI) named its highest recognition award winners during the Building Industry Awards Gala held January 15, 2010 at the Indiana Roof Ballroom.
Winners were:
Builder of the Year: Dan Wolf, Bedrock Builders
Builder of the Year is presented to an individual builder member who has worked diligently on behalf of the industry and the association over the past year.
Since joining the Association in 2001, Dan Wolf and his company, Bedrock Builders, have been very active. During 2009, he was a member of the Hamilton and Hancock County Councils, his company is a member of the Building Partners of Central Indiana where he serves on the “Best Practices” Committee and he served as a BAGI Scholarship Trustee.
Wolf has served on the BAGI Board of Directors since 2006. During 2009, he was a member of the Executive Committee and when the President’s seat was vacated mid-year, he was asked to take over the position.
At the Awards Gala, Wolf was sworn in as the 2010 President of the Association. He is married to Christine and they have two children, Justine and Alex.
Associate of the Year: Teri Tillery, Indianapolis Power & Light
This award is presented to an individual associate member who has returned significant time and service to the industry over the past year.
During 2009, this year’s recipient, Teri Tillery of Indianapolis Power and Light Co., was a member of the Johnson County, Sales and Marketing (SMC) and Remodelor’s Councils. She served on the Board of Directors for both the Sales and Marketing Council and Remodelors Council. Additionally, she was the SMC Treasurer and served as the membership co-chair for the Remodelors Council. In addition to this council involvement, she is a member of the BAGI Board of Directors, where she was recently named as the Secretary and is a member of the BAGI Membership Committee.
You will see Teri’s the smiling face at just about any BAGI event. She is married to Bo and they have two children, Lauren and Jillian.
Esprit de Corps: Dan Kelley, Kelley Construction
This award is given to someone who embodies the “Spirit of the Troops.” It is presented to an individual who has demonstrated outstanding member involvement and who has become involved within the last three years.
Since joining BAGI in 2007, the 2009 recipient, Dan Kelley of Kelley Construction, has continued to find ways to get engaged and has been quoted saying “The more I do within BAGI, the more I like the Association and being a member.”
The Association can be a bit overwhelming to new members, especially for those who are running a personal business; but often times, a little progressive involvement makes it more manageable. Dan Kelley started out by attending a member open house; then moved on to the monthly networking events. From there, he became a member of the Associates committee and started to attend those meetings. After that, he decided to test the waters and try advertising and sponsorships.
During 2009, he was a regular advertiser in the Sites magazine and supported the special section featuring trade contractors. He was an advertiser in the Home Building and Remodeling Guide and purchased an online banner advertising campaign. On the event side, he sponsored a special section at the Builder Bash geared towards service providers.
Kelley has also recently joined the Hendricks County Council and the BAGI membership committee and his company has become a vendor in the Building Partners of Central Indiana Group.
His two sons, David and Matt both work for their father’s business. Kelley was cruising the southern Caribbean the night of the awards, but his son David accepted the award on his behalf.
Mike Boeke Outstanding Service Award: Mike Gorman, Gorman Homes
The award bears the name of the late Mike Boeke of Davidson Industries whose daily devotion and service to the industry, community, and association was always above and beyond the call of duty.
This year’s recipient, Mike Gorman of Gorman Homes, has been a member of BAGI for over 20 years, joining in 1988. During this time, he has served on the BAGI Membership, Green and Dues Committees; has been a Scholarship Trustee; has participated in many Parade of Homes Events; regularly attends Association meetings — rarely missing a golf outing; has obtained several NAHB designations; has been a Member of the Building Partners of Central Indiana; served on the Johnson County Council Board of Directors and as their President; and has been named the Johnson County Council Builder of the Year twice; first in 2002 and again in 2006. He served on the BAGI Board of Directors from 2003 – 2009; and was the Association President in 2008.
Beyond his BAGI commitment and involvement, Gorman is involved in several charities including Habitat for Humanity. He has participated in many habitat builds and co-founded the Johnson County chapter.
He and his wife Connie have two children, Jason and Tiffany. In addition to his service award, Gorman received a clock recognizing his many years of service to the BAGI Board of Directors.
Firm Foundation Award: Vectren Energy Delivery
This award is presented to a BAGI member firm that has demonstrated commitment to the building industry through its involvement with the Builders Association of Greater Indianapolis.
This year’s recipient, Vectren Energy Delivery has been a member since 1978. Throughout the years, they have continued to support the Association and the Councils through sponsorships, advertising and by encouraging employees to be engaged in the Councils and on committees.
2009 was a challenging year, but Vectren Energy Delivery still found the resources, both time and monetary, to stay engaged. From the Council standpoint, they are members of nearly all the councils. Memberships include Hamilton, Hancock, Hendricks, Johnson and the Sales and Marketing Councils. They are also represented on the Board of Directors for the Sales and Marketing Council. On the BAGI side, they have employees serving on several committees including Builder Bash, Membership, Single Site Home Shows, and the Parade of Homes. They subscribed to the association’s MarketGraphics service, attended most of the events held including the networking breakfasts and member open houses. They have also been dedicated advertisers and sponsors.
During 2009 alone, their sponsorships included: The BAGI Golf Outings; Preview Party at the New Home Showcase; a product sponsorship in the New Home Showcase; the Janus Ball; the Builder Bash and several of the Council Golf Outings. They also were an advertiser in the Home Building and Remodeling Guide.
The evening was sponsored by: Indianapolis Power & Light, Citizens Gas, Vectren Energy Delivery, Airtron, Bedrock Builders, Clark Appliance, Frye Electric, Remodelors Council and Speedway SuperAmerica.
The Builders Association of Greater Indianapolis is a professional trade association representing residential homebuilders. For more information call 317-236-6330 or visit www.BAGI.com.
What five projects add the most value to a home?
By · CommentsDespite the recent slide in home values across the country, remodeling projects continue to be considered among the safest places to invest during these uncertain economic times. Statistics from the National Association of Realtors show the while home prices have fallen an average of 7% nationally, the value of investment in home remodeling projects has declined only 3.86% according to Remodeling Magazine’s 2008-2009 Cost vs. Value Report.
Cost versus value studies are created annually to review all types of remodeling projects and identify those that offer the most return on investment. In recent years, the top three projects that offer the highest returns have remained the same.
At the top of the list is replacing siding on the home with one of the many upscale fiber cement products on the market. The second best home improvement investment is the installation of a midrange wood deck. The third highest return is a midrange siding replacement project with a vinyl siding product. Fourth on the list is siding replacement using the upscale foam-backed vinyl. And rounding out the list at number five is a midrange minor kitchen remodel.
What is the common theme amongst the first four projects on the “best investment” list? If your project adds curb appeal, it will always result in high returns.
Dig a bit deeper into the list and you will find the next category of projects that yield the highest returns focus on window replacements of various types. Why? Like siding, these are often projects of necessity. Also, consumers have a much greater awareness of energy efficiency and with the rising cost of energy, homeowners are aware that window projects are often essential to controlling energy costs.
Not surprisingly, when it comes to traditional remodeling projects, kitchens and baths are the smartest place to spend your money. This is where the consumers still expect the money to be spent when looking for a home. In fact, kitchens are the only interior project type to be found in the top ten remodeling returns on investment.
The message to consumers – putting money into your home is still a very good investment – just be wise with your selections to ensure you do not turn off potential buyers and remember that projects focusing on curb appeal currently result in your best investment.
Geoff Horen is President of The Indianapolis Remodelors Council and the Chief Executive Officer of The Lifestyle Group, an award-winning residential remodeling company that services Central Indiana homeowners. He can be contacted at 317-352-9022 or Geoff@lifestylegroup.com.
Indy still tops in home affordability
By · CommentsNovember 19, 2009 – Nationwide housing affordability, bolstered by affordable interest rates and low house prices, hovered for the third consecutive quarter near its highest level since the series was first compiled 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today.
The HOI showed that 70.1 percent of all new and existing homes sold in the third quarter of 2009 were affordable to families earning the national median income of $64,000, down slightly from a near-record 72.3 percent during the previous quarter and up from 56.1 percent during the third quarter of 2008.
“At a time when housing is at its most affordable, we applaud the recent actions taken by Congress and President Obama to stimulate housing by extending the federal tax credit beyond its Nov. 30 deadline and expanding it to a wider group of eligible home buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices.”
Indianapolis was the most affordable major housing market in the country during the third quarter, a position the metro area now has held for 17 consecutive quarters. Almost 95 percent of all homes sold were affordable to households earning the area’s median family income of $68,100.
Also near the top of the list of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa., and three Michigan metropolitan areas, Detroit-Livonia-Dearborn; Warren-Troy-Farmington Hills; and Grand Rapids-Wyoming.
Five smaller housing markets posted even higher affordability scores than Indianapolis, with Kokomo, Ind. outscoring all others. There, 96.7 percent of homes sold during the third quarter of 2009 were affordable to median-income earners. Other smaller housing markets near the top of the index included Springfield, Ohio; Bay City, Mich.; Mansfield, Ohio; and Elkhart-Goshen, Ind.
New York-White Plains-Wayne, N.Y.-N.J., was the nation’s least affordable major housing market during the third quarter of 2009, the New York metro area’s sixth consecutive appearance at the bottom of the list. Slightly more than 19 percent of all homes sold during the third quarter were affordable to those earning the New York area’s median income of $64,800.
The other major metro areas near the bottom of the affordability scale included San Francisco; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Nassau-Suffolk, N.Y.
San Luis Obispo-Paso Robles, Calif. was the least affordable of the smaller metro housing markets in the country during the third quarter. Others near the bottom of the chart included Ocean City, N.J.; Santa Cruz-Watsonville, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Brownsville-Harlingen, Texas.
Please visit www.nahb.org/hoi for tables, historic data and details.
EDITOR’S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.
Housing Tax Credit Extended and Expanded
By · CommentsWho is Eligible
- First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
- Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
- All U.S. citizens who file taxes are eligible to participate in the program.
Income Limits
- Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
- For married couples filing a joint return, the combined income limit is $225,000.
- Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
- The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.
Effective Dates
- The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
Types of Homes that Qualify
- All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.
Tax Credit is Refundable
- A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
- For example:
- A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time home buyer tax credit).
- A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
- All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return.
Payback Provisions
- The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
The www.federalhousingtaxcredit.com site is being updated. Please check the site next week for more detailed information on the new tax credit!
Drees Homes opens sixth community in Carmel
By · CommentsThe grand opening of Stafford Place, located off 146th Street, marks Drees Homes’ sixth community to open in Carmel, IN. “Our decision to build Stafford Place is a testament not only to the Company’s financial strength to open new communities, but also to our faith in believing that Carmel continues to be among the top locations in Indiana where families prefer to live,” said Division President Steve Masuccio. “Best of all, with its secluded setting and east Carmel location minutes from Clay Terrace, Stafford Place offers two advantages many buyers want: privacy and convenience,” added Masuccio.
Drees worked hand-in-hand with the City of Carmel to preserve as many trees as possible, and augment the mature trees by adding new trees and plantings around the perimeter and interior of neighborhood. Stafford Place features a distinctive entryway and a portfolio of Tuscan-inspired homes. With just 53 home sites, Drees’ Stafford Place community offers an intimate residential setting and a 3-acre wooded park with walking trails. To date, the company has taken three lot reservations and sold two homes during a preconstruction sales period; prices start at $450,000.
Besides Stafford Place, Drees continues to build in Carmel at Village Green, a Brownstone-inspired townhome community bordering the Monon Trail, and Lakeside Park, situated off Towne Road. Drees also built and completed The Lakes at Hazel Dell, Shelborne Park, and Kingsborough in Carmel, IN.
“It’s the time and place to buy a new home,” said Masuccio. “With interest rates still at historic lows, great incentives, and the chance to choose the home site you want most, now is the perfect time to build your dream home.”
Drees’ model homes are open seven days a week, Monday through Friday
1 p.m. to 7 p.m. and Saturday and Sunday 12 p.m. to 6 p.m. For sales information about Stafford Place, please call 317-569-1080 or visit www.dreeshomes.com.
Extreme Makeover: Home Edition is coming to Indiana to surprise one deserving family with a brand new custom-built home. Hallmark Homes, based in Anderson, Ind., will build the home and is coordinating partnership, donations and volunteers.
“We are honored to be selected by Extreme Makeover: Home Edition. We look forward to building the home of their dreams in 106 hours flat,” says Paul Schwinghammer, president of Hallmark Homes. “It’s gratifying to know that we can help make a positive difference for a Hoosier family.”
It’s not just the family who will have a positive experience. “The real excitement comes in knowing how much the people who volunteer on this project will be changed,” says Derek Wilder, Hallmark Homes CEO. “It’s a great thing to be part of something bigger than yourself.”
Five families are being considered throughout the region and Ty Pennington, the star of the show, will show up on the doorstep of the selected family on Oct. 21.
Hoosiers will be able to visit the site during the build and to volunteer to help. More information is available at www.hallmarkextreme.com.
Businesses and community partners have already signed up to be part of the project. Anderson University is mobilizing students, faculty, staff and alumni to help make one family’s dream come true. Other partners include: Carter Lumber, Bilt Best Windows, Reese Wholesale, Climate Master, JN Stone, Modern Trailer Sales, Blakely’s Flooring, Madison Millwork, Schneider Electric and Ball State University.
A special Web site, www.hallmarkextreme.com, launches today to provide around the clock updates during the 106-hour race to the finish.
Hansen & Horn Oktoberfest aids homelessness
By · CommentsJoin the REALTOR Foundation at Hansen & Horn’s residential development at Anson for an evening of food, friends and fun on Wednesday, October 7 from 5:30 to 7:30 p.m. A minimum $10 donation at the door includes: silent auction, authentic German fare, and live German music & entertainment.
All proceeds help the Foundation’s fight against homelessness in our community.
RSVP to mollyhahn@realtorfoundation.com.
We have been seeing encouraging signs that the housing market and the U.S. economy are beginning to stabilize, but it’s far too early to celebrate. Locally I have been told that 60 percent of today’s home sales are to first time home buyers as a direct result of the $8,000 tax credit. Unfortunately that credit expires November 30th leaving the housing market with an uncertain outlook.
Unemployment is expected to continue rising. The best forecast economists have to offer is that the economy will stop contracting; but it will be a long, slow crawl back to health following the most devastating recession since World War II.
Housing is the best opportunity for putting this country back to work. We urge Congress to extend today’s $8,000 tax credit for first-time home buyers for another year and making it available to all buyers.
Home construction is a powerful economic engine. Already the 2,455 permits issued in the nine-county Central Indiana area have created $421 million in local revenue, $40 million in local taxes and 6,432 jobs.
One of the best things that Congress can do to restore a full-fledged recovery is to work to restore the health of the housing industry.
For more information and to join the coalition of housing industry professionals calling for a renewal of the tax credit, go online to www.FixHousingFirst.com.
Dan Wolf, Bedrock Builders
2009 President, Builders Association of Greater Indianapolis
