If you're planning on putting your home on the market, consider fixing it up first. Simple cosmetic changes don't cost very much and they can make a real difference to a buyer.

TAKE OUT THE STUFF. You should throw out, or at least hide, the clutter. Pick up old newspapers and magazines from the coffee table and put the shoes away in the closet. Don't let potential buyers be distracted by all your stuff. Homes look better without clutter. They also look more appealing with furniture, so fill any empty rooms you may have.

POLISH AND CLEAN. You don't want to show a dirty house. Mop the floors and scrub the counter tops. Clean kitchen appliances as well. If it's an older model, a little shine will make it seem newer. If a room needs a fresh coat of paint , then paint it. Try to stay away from bright colors, which might not appeal to every buyer.

ARRANGE YOUR FURNITURE. A good furniture layout can change the way a room looks. Try setting up chairs and couches around a focalpoint such as a fireplacee

BRING IN A PROFESSIONAL. Professionals in this area are called stagers. Stagers can also provide any furniture and accessories that may be needed. A good resourse to find a stager is the International Association of Home Staging professionals, at www.iahsp.com.

Here are the income limits to qualify for the first time homeowners tax credit. The buyer,(and if married, the spouse) cannot have owned a principal residence during the three year period prior to the purchase date. In general, the credit is available only if the homebuyers adjusted gross income does not exceed $75,000($150,000 if a joint return is filed).

If one claims the $7,500 credit it will have to be paid back as an extra amount on the federal tax returns at the rate of $500 per year, beginning with the tax return for the second year after the new home is purchased.

For more details and examples of how the new law works, visit the Web site of Congress's Joint Committee on Taxation at www.jct.gov and look for publication JCX-63-08 on the home page. For additional informationon tax breaks from the Internal Revenue Service, see Publication 530 at irs.gov

The American Housing Rescue and Foreclosure Prevention Act of 2008, passed by Congress also includes an important tax break. First time homebuyers who purchase a home after April 8th, 2008 and before July 1, 2009 are eligible for a $7,500 tax credit. (if the home is less that $75,000, a tax credit equal to 10% of the purchase price).

The credit comes with a catch,however. You'll have to pay it back. The payback schedule is for 15 years at $500 per year. The tax credit reduces your tax liability on a dollar for dollar basis and can even boost your refund. If you owe $10,000 in taxes, you can take the credit and just pay $2,500. Or, if you owe $5,000 in taxes and have it paid over the year you can receive all of your money back with an additional $2,500.

This is the equivalent of an interest free loan from the government, perfect for the home buyer who might need to buy appliances, window coverings, landscaping,furniture,etc. that many first time homebuyers have a hard time working into their budget.