Iowa City Real Estate Blog

Luxury Home for Sale: 2184 Westminster Circle, Coralville, IA 52241 - $224,000

Fabulous luxury home in a superb Coralville location. Prepare to be impressed with the contemporary style and class of this beautiful two story home with walkout basement and upgrades galore. Take note of the Alder wood kitchen and bathroom cabinets and trim throughout. And the durable and resilient birch hardwood floors on the main level. To complete the picture you will love the wonderful use of color throughout!

All of this in a sensational Coralville location in the highly desirable Welsh Village neighborhood with a straight shot to Iowa City, UIOWA and the UI Hospitals. You don't want to miss this. Come check out a home definitely a cut above the rest!

Bonus: Motivated sellers are relocating and willing to pay up to $10,000 for closing costs and prepaids with acceptable offer. (Please call me for details @ 319-400-0268).

And we're not done yet. Owners willing to include hot tub in price if desired. Watch College Football from the hot tub - It doesn't get any better than that!

Parts of Coralville are a really good and easy commute to the west side of Iowa City. This is one of them. Here's a link to a map illustrating that so you can see what I mean.

Price: $224,000

Built: 2006 - Zoned as a condo this home has all the benefits of a single family home

Style: Two-Story with Walkout Basement

Bedrooms: 4

Bathrooms: Master Suite + 2 Full Bathrooms + 1 Half Bath

MLS# 20101706

Here in Iowa City it's condo buying season and there are lots of students out buying homes with their parents as co-signers. A question that came up for me last week was whether or not these students can claim the homebuyer tax credit. You might expect the answer to that to be no... Well, hold your horses, here's some info that shows it can go either way...

First of all, students who are claimed as a dependent by their parents will not qualify for the credit. HOWEVER, if they are not claimed as a dependent then it's a whole different story...

This is an excerpt directly from the IRS site.

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify.

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence.

Here's a link to the original document and some different scenarios.

Here are a few links to other posts I've written about the homebuyer tax credit:

How the Homebuyer Tax Credit Works

Expanded Homebuyer Tax Credit Now Includes "Repeat Buyers."

You don't need to sell your home to qualify for the $6500 repeat buyer tax credit

Phase out range on income limits for the homebuyer tax credit

Of course I am not a tax adviser, so please don't make major financial decisions based on this post. It's much more about pointing you in the right direction for you to go and ask your CPA what applies in your specific situation.

What to watch out for when you make an offer on a condo in Iowa City

So you've found the condo that's perfect for you and are all set to make an offer. You'll write up a purchase agreement and here in the Iowa City area we have an addendum where you get 5 calender days to review the homeowners condominium association documents. If you find something that doesn't suit you, then you can walk away from the deal.

Here are a couple of things you should REALLY be watching out for:

Along with the condominium bylaws, (that you are going to read, even if they are "put you to sleep material"), you absolutely need to see a copy of the last couple of years financial statements. You want to know that the association is solvent and can pay for lawn care, snow removal, trash removal and other regular bills. You want to know that they have sufficient funds to pay their bills and there's not a special assessment lined up in the near future.

On the subject of special assessments, these do come up when it comes time to replace windows or a new roof. For you the condo fee is part of your monthly payment. If there's a chance of it going up from $70 to $200 a month for six months or a year to cover a major remodel, then you want to know about it ahead of time. 

I can't stress enough how important it is to dig deep when gathering this information. Recently I spoke to a seller who felt jibbed, because he wasn't given this info when he moved into his home. He figured he could have gotten a nicer, more expensive condo and still had the same monthly payment if he had known what lay ahead for him. These fees affect your bottom line, so the more you know the better it is for you in the long run.


I'm a bit of a freak when it comes to details. (20 years living in Germany will do that to you!) I'm all over these things when I'm helping clients. I believe to make smart decisions you need all the facts. If you're thinking of buying a home in the Iowa City area, give me a call. One thing you can be sure of is that I am a great information gatherer and you'll have all the facts you need as you work your way through the home buying process.

Iowa City Real Estate: Don't Pay $59.00 For A Duplicate Warranty Deed

If you live in the Iowa City area you don't need to pay $59.00 for a duplicate warranty deed. Now I'm pretty sure you don't need to pay that anywhere in Iowa or the rest of the country, but since I am only 100% certain of my facts for around here I will limit this post to talking about that.

At the beginning of the year it seems there are some shady companies out there wanting to make a fast buck. They send out letters to unsuspecting new home owners offering them "bargain priced" warranty deeds. Every year I get a call from at least one client around this time asking me if they need a warranty deed and whether they should write the check. The answer on both counts is NO. You don't need a warranty deed and if you for some reason feel you'd like to have one anyway, then just pop down to the recorder's office in Iowa City. They will make you a copy for 25¢ and for $2 they will certify it!

So what's a warranty deed anyway? A warranty deed is what is signed by the sellers at closing to transfer property. After closing it goes to the recorder's office and it is recorded in the public records that the property has changed hands. The only times it's likely to be looked at again is either when the property changes hands again, or you refinance... Hard to see why you would actually need a copy yourself, but as I said if you feel you do and you live in the Iowa City area, don't pay $59.00 for it, the Iowa City recorder's office has a much cheaper solution.

Last week FICO released information on just how much your credit score is affected by negative activity.

Times are tough when it comes to getting a home loan and the banks are looking ever more closely at home buyers credit scores. Maybe that's the reason why FICO has had a change of heart in its policy of keeping its points system under wraps.  Whatever the reason, they are now sharing some information with us on how many points you are likely to lose for common credit mistakes. It's not that they're sharing all their secrets, but as you can see from the table below they do cover the most common credit mistakes like late payments, debt settlement and foreclosure.




The interesting thing about this table is that it seems folks with good credit get penalized more when they mess up than those who have average credit. Go figure!



I think it's a good thing that FICO has released this information.  I think it will help home buyers to better assess their situation and maybe take away some of the "angst" they have from talking to a lender.  I know I have often talked to people who imagine the worse when they have credit problems. This table will help them in that it takes away the shrouds of secrecy and gives a good idea of what will actually happen.

While I'm talking about credit, you can get a free credit report once a year at annualcreditreport.com. If you're thinking of buying a home in the spring, now might be a good time to do that. That way you if you do find something unexpected you can work on it before you get down to the business of getting yourself pre-approved for a home loan.

Iowa City Police Department's interactive map shows the crime rate in Iowa City neighborhoods 

What's the neighborhood like? Folks relocating to Iowa City ask me that all the time. This week I came across an article with info about a really cool interactive map that I think will be helpful to you if you're in the process of relocating to Iowa City and looking for information on crime stats in the area. I'm pretty sure if you live here in Iowa City already you'll find it interesting too, especially if you're thinking of moving anytime soon. I love collecting data, so it impressed the socks off me!

The map can be found on the Iowa City website and merges the Iowa City Police Department's Daily Activity Log and the Community Policing Map into a really helpful online tool that gives information on how many calls were made and the neighborhoods they were made from. Keep in mind, these calls are not always crime related, so you will need to click on the map to read the activity log carefully to properly assess a neighborhood.

Iowa City Police Department's Webpage. With a strong focus on community policing you will find our Police Department to be very helpful and can reach them with questions at 319.356.5275.

I'm fielding a lot of questions about the homebuyer tax credit for repeat buyers and thought it worthwhile to answer individual questions as they come up. My last post in this "series" was to cover the question that you don't need to sell your home to qualify for the repeat homebuyer tax credit.

The question I got asked today was what the phase out range is on income limits for repeat homebuyers. I should mention that when it comes to income, the rules are same for First Time Homebuyers and Repeat Buyers.

First of all, it is the MAGI (Modified Adjusted Gross Income) that is taken into account. To determine your MAGI, you first need to know what your AGI, (Adjusted Gross Income) is. Your AGI is the total amount you earn in a year, minus certain deductions that are considered adjustments. It's the amount calculated on your tax return BEFORE your itemized deductions. The MAGI is the addition of income from a few other less common sources. For examples of those sources please see the instructions on the form 5405 that is used for filing for the tax credit. (Please note that the link is to the current form, I'll change the link here when they revise the form for the extended homebuyer credit).

So now to answer the question on the phase out range: There is a $20,000 phase out range. The following info comes directly from the IRS site and shows you exactly what the income limits and phase out range are. It's worth mentioning that these new limits apply to all closings after November 6, 2009 when the Bill was signed. If you were under contract before November 6 and at that time didn't qualify under the previous income limits, then you may be in luck now with the new income limits.

For purchases after Nov. 6, 2009, for a married couple filing a joint return, the phase-out range is $225,000 to $245,000. For other taxpayers, the phase-out range is $125,000 to $145,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $225,000 or less and for other taxpayers whose MAGI is $125,000 or less. (11/19/09)

For more extensive info about the extended and expanded Homebuyer tax credit you may want to check out these FAQ's

Iowa City Real Estate: Homebuyer Tax Credit Extension: How Does It Work?

Recently I got asked how the homebuyer tax credit works. It seems like a simple enough question for those of us who talk about this on a daily basis... Let's see how I do with basic information for those of you who don't think real estate 24/7...

The first thing you need to do is establish whether you qualify for the tax credit. You probably have an idea already. If you're not totally sure you can check by looking at the FAQ's on the IRS website. It's recently been updated to include info on the new expanded homebuyer tax credit that includes repeat buyers.


So now I'm going to state the obvious and tell you that you need to buy a home. Already here there is some confusion with some folks who think you can claim the tax credit before you buy a home. That is not the case. You absolutely need to close on a home before you can claim the tax credit. The current requirement is with the new extended tax credit that you have an accepted offer on a home by April 30, 2010 and that you close on that home by June 30, 2010.

So now how do you go about claiming the tax credit? What happens is that you file your taxes as usual and fill out the form 5405 claiming the amount you qualify for. Bear in mind that the IRS is tightening its procedures. If you filed your tax return last year and claimed the first time homebuyer credit you didn't need to provide proof that you had bought a home (!!) That changed with the new extended tax credit and it will now be necessary to submit the settlement statement, (HUD), that you sign at closing.

It's because of the number of issues with fraud the IRS has changed its procedures with the new extended and expanded credit and it's not possible to file your 2009 return electronically to claim the home buyer tax credit. You will need to file a paper return by mail.

Now comes the big question. What do you do if closing is AFTER April 15, 2010, the deadline for filing your 2009 tax return? Easy answer: Hold off on filing your taxes and request an extension. The extension will give you all the way up to October 15 to file your 2009 tax return. Plenty of time, since one way or another you need to buy a home by June 30 anyway. If filing an extension sounds like a hassle, take it from me, it isn't. My son did it last year at Taxslayer.com and it went as easy as 1-2-3.

One last thing I want to point out is that this is a refundable credit. What that means is that if the amount of the tax credit exceeds your tax liability you will get a check in the mail for the difference.

Below are some previous posts on related subjects that may be of interest. Keep in mind that I help clients buy and sell real estate in the Iowa City, Coralville and North Liberty area. Please let me know if you have any questions.


Expanded Homebuyer Credit Now Includes Repeat Buyers

You Don't Need to Sell Your Home To Qualify for the Tax Credit

Buying Your First Home

Buying a Home: What Will the Seller Think of Paying Your Closing Costs?

You don't need to sell your home to qualify for the $6500 Tax Credit. Since day one when the extended home buyer tax credit became law I've been waiting for an answer to that question. Well, here's the answer from the IRS site:

Q: I'm already a homeowner: If I buy a replacement home to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?

A: If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. You 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. Additionally, you must have lived in the same principal residence for any five-consecutive period during the eight-year period that ended on the date the replacement home is purchased. (11/17/09).

When I'm out and about I often get asked questions about the tax credit. In this case I got asked the question by someone who is thinking of renting his current residence and upgrading into a bigger home. What I intend to do is pick up on these questions individually, rather than make a long confusing post with reams of information in it. That way you get to pick and choose the topics that apply to you.

For those of you interested in learning more right now, here's the most current link to the IRS site, where they have Homebuyer tax credit questions and answers for homes purchased after November 6, 2009 when the new tax credit became law.

There have been several posts in the last week about the merits of buyer agency. I personally think buying or selling you should have your own agent. You wouldn't dream of going to court, even for the smallest thing and use the same attorney as the guy (or gal) you're up against, would you?

Why do that in a real estate transaction? If you're  a buyer, it's not just that it's the biggest financial transaction of your life. It's also the place you're going to spend significant chunks of time in the next few years. You want to make sure you're close to what you need to be. That the kids have an easy time getting back and forth to school, that you feel comfortable and it feels right when you go home at night.

If you're a seller you want to make sure you're not jibbed. That you get what your home is worth. For you it's mostly about the bottom line. Very often your bottom line is what dictates what happens next and how much home you can afford when you move up or down.

Buyers and sellers have different motivating factors. I think the most obvious is that a buyer will always want to pay the lowest price possible. The seller will always want to make as much money as possible. How can one agent representing two parties achieve both those goals? There's a conflict of interest right there... I could go on, but I think I've already made my point!

So how do you go about finding the right agent? The first thing you do is to try and figure out what is important to you. Then you talk to a few agents and figure out if it's important to them too. Empathy is what it's all about. Trust your gut. Just because buying or selling real estate is a big deal, doesn't mean you need to be intimidated by the so-called Professional in front of you. If it walks like a duck and quacks like a duck, it probably is a duck. Move on... I'm sure where you work you have colleagues who go the extra mile and others who just show up every day. It's the same with Realtors. Some just show up. You don't want one of those. Move on...Find yourself someone willing to go the extra mile.