The time to reduce the price of your home is NOW!

Homeowners holding out in hopes of receiving their asking price need to be careful that they miss out on a window of opportunity that is about to close. The first time home buyer, long time resident tax credit is set to end on April 30, 2010. Once the end of the tax credit comes there may be a reduction in the number of homebuyers available.

Perhaps equally important to a home seller is that prior to the end date there will be buyers rushing to purchase homes in order to qualify for one of the two tax credits. A seller who fails to offer their home at the very best price while buyers are rushing to buy during the time left is making a mistake that could cost them both time and money.

If your home has lingered on the market for several months with no offers and you have not been inclined to lower the price you should rethink your strategy. Your competition continues to be REO homes, short sale homes and due to the length of time your home has been on the market, newer traditional listings priced comparable to yours with less time on the market. We suggest a substantial price reduction whenever possible in order to attract the maximum attention possible to your home.

The tax credit window is closing and along with it the time to present your home to the greatest number of eager buyers. The time to reduce your price when possible is now.


Related Florida real estate blog posts on price reductions

Flash forward to May 1, 2010 and here is what you won't see.

If you have not seen or heard about the new television show Flash Forward, basically everyone blacks out and awakes with visions of themselves 6 months into the future. It has been entertaining and interesting so far, you should check it out.

For anyone thinking of purchasing a home in the near future, here is a helpful flash forward that does not involve blacking out or visions.

If you flash forward to May 1, 2010 and you have not entered into a binding contract to purchase a home, you won't be seeing up to $6,500 or $8,000 tax credit. The extension passed by our Government on November 6, 2009 only allows the majority* of home buyers to take advantage of the tax credit as long as they are under contract by April 30, 2010.

If you believe you are ready to purchase a home in 2010, make sure you do so in plenty of time to qualify for the home buyer tax credit.

Tax credit extension adds a closing cushion that could help buyers who are trying to purchase a home subject to short sale.

*Members of the uniformed services, members of the Foreign Service and employees of the intelligence community serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.

Do I have to sell my home to qualify for the up to $6500 home buyer tax credit?

Do I have to sell my home to qualify for the up to $6500 home buyer tax credit?

One of the questions being asked about the new tax credit of up to $6500 for home owners buying a replacement home is does the home buyer have to sell their current home to qualify for the up to $6500 home buyer tax credit?

The IRS addresses this question on their First-Time Home buyer Credit Questions and Answers: Homes Purchased in 2009 page:

Q: I’m already a homeowner. If I buy a replacement home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the home buyer 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....

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You should speak with an attorney or tax professional to receive additional information and help in determining if you qualify for the tax credit.

Florida residents have until April 30, 2010 in order to qualify for tax credit

Just like the rest of the country, Florida residents have until April 30, 2010 in order to qualify for home buyer tax credit that was recently enhanced and extended. The new law allows home buyers that are under contract by April 30, 2010 and who close by June 30, 2010 the opportunity to receive up to $6,500 for qualified existing home owners buying a principal residence and for first time home buyers who qualify a chance to receive a credit up to $8,000.

Buyers who want to take advantage of the complete housing inventory will want to start looking for a home soon if they plan on qualifying for the tax credit. The length of time it takes for a short sale transaction to close and the multiple offers being received on bank owned property is increasing the time it takes for a buyer to find a home, receive an accepted offer, remove financing or inspection contingencies and finally close on their home.


Related blog posts on tax credit

How Florida home sellers can benefit from tax credit extension and enhancement

The passing of the extension and enhancement of the homebuyer tax credit is good news for buyers but sellers will enjoy many benefits too. The following are 5 benefits a home seller could realize as a result of the extension and enhancement.

1. If you do not have your home on the market, the extension and enhancement signed into law recently provides the perfect window to do so. In addition to extending the first time homebuyer tax credit the enhancement allows current homeowners to receive up to $6500, which will draw additional buyers into the marketplace increasing the number of potential buyers viewing your home.
2. The up to $8,000 or $6500 tax credit that qualified buyers will receive coupled with any buyer incentives you offer will help your home stand out above the competition. Offering to assist with buyer closing costs and/or pre-paid when allowed, provides the buyer even more reasons to make an offer on your home.
3. Real estate agents are excited and will be leaving no stone unturned, using the extension and enhancement as a main focal point of their marketing and prospecting. This message will reach more potential homeowners increasing the odds of finding the right buyer for your home.
4. There is a time limit. In order to qualify for the tax credit buyers will need to have an offer on a home on or before April 30, 2010. This will work to create a sense of urgency resulting in high quality offers and serious buyers.
5. You may be able to use the tax credit to buy your next home. If you have owned your home as a primary residence for 5 consecutive years out of the past 8 and meet the additional guidelines, you will be able to take advantage of the tax credit on the new home you purchase after selling yours. You may find the up to $6500 you receive with your next purchase will give you a little more wiggle room when negotiating with a buyer for your home.

The key is in not delaying. If you are thinking of selling your home, call me to discuss market conditions, the tax credit and your personal situation.

Related selling home blog posts

The tax credit extension adds a closing cushion for buyers who are trying to purchase a home subject to short sale.

The recently signed into law tax credit extension adds a closing cushion that could help buyers who are trying to purchase a home subject to short sale. The extension allows buyers who are under contract to purchase a home by April 30, 2010 to receive the tax credit provided the transaction closes by June 30, 2010.

Short sale transactions can take up to 30-60 days or longer. Before the extension passed, buyers were leery of making an offer on a home listed with a short sale contingency for fear they would miss the November 30th cutoff date. With the new tax credit extension, buyers may not have to avoid making an offer on a short sale, knowing that they now have 60 days in order to close.

Buyers will still want to consider the possibility of the short sale not being approved in time and should consult with their agent, tax advisor and attorney for guidance before making an offer.


Related blog posts on tax credit

Related blog posts on short sales

Florida home buyers will benefit from extension and enhancement of tax credit

Florida home buyers will benefit from extension and enhancement of tax credit recently voted for by the House and Senate and now waiting for the President's signature. The tax credit extension will give Florida residents into next year to purchase a home in order to take advantage of the up to $8,000 for first time home buyers.

Once the extension and enhancement becomes law I will post the details that include a tax credit for existing home owners too.


Related blog posts on home buyer tax credit

Closing cost and down payment assistance for Florida home buyers with the help of the Government

The Government is trying to help those interested in buying a home by offering an opportunity for the first time home buyers to receive all or part of the first time home buyer tax credit in advance of closing.

While details are still sketchy, what is known is that local housing coordinator of the local counties will be responsible for the process.

Time is of the essence here as the ability to receive the tax credit will end on November 30th. I would encourage anyone who would like to find out if they qualify for this upfront Government down payment of closing cost assistance to contact me quickly for a one on one consultation.


Related Florida real estate views:

Explanation of the first-time homebuyer tax credit

You could receive the Federal home buyer tax credit even if you have owned a home in the past

You do not have to repay the 2009 tax credit!

Are you searching for a home and qualify for the tax credit as a first time homebuyer? You will be pleased to know that unlike the first time homebuyer tax credit of up to $7500 being offered during 2008, the 2009 version, which increased the amount of the tax credit to up to $8000, does not have to be repaid!

The 2009 tax credit does not have to be repaid as long as the homebuyer lives in the home for three years or more. Less than three years then the entire amount of the credit is recaptured on the sale.

This homebuyer tax credit is only available for home purchases made from Jan. 1, 2009, through Nov. 30, 2009, and is equal to 10 percent of the cost of the home, up to a maximum credit of $8,000.


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The time is now to invest in your first home

Find out if you can buy a house

What are the income limits to qualify for the 2009 home buying tax credit?

Search for a home

Q: What are the income limits to qualify for the 2009 home buying tax credit?

In order to qualify for the first time home buyer tax credit being offered to purchases made in 2009 the limits are individual taxpayers with incomes up to $75,000 and married taxpayers with earnings up to $150,000.


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Florida home owners may be able to modify mortgage and reduce monthly payments

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