In our last post, we talked about the advantages a Realtor® provides to the Buyer. This time, I’d like to continue discussing the home buying process. For many who have not been through this already, the process of buying a house is daunting at best. There are so many things to think about. You’re probably asking yourself questions like: What part of town do I want to live in? What is the best school district for my kids? Where can I find a place to live where I don’t have to drive everywhere to do what I want? And, while these are all very important questions you should be asking yourself, I would suggest that one issue should be at the very top of your list when discussing the purchase of your first home and that is, How can I best afford the first home I’ll be able to call my own?
That brings me to the issue at hand. As a first-time homebuyer, you have a variety of options available to you that are intended to act as incentives when purchasing a home. One of the best we’ve seen is the 1st Time Homebuyers Tax Credit, which is available to those of you who are interested in purchasing your first home. The tax credit has recently been extended and expanded to now include homeowners who wish to “move on” after 5 years of living in their current property, as well as first-time home buyers. But there are several things that you should know about this option.
- First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit.
- Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit.
- There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010)
- Income limits are now $125,000 for people who are single, and $225,000 for married couples with a $20,000 phase-out of the credit for both.
- Should you move from the residence prior to 3 years, the incentive must be paid back.
The First-Time Homebuyers Tax Credit is absolutely an attractive and popular option for those people looking to purchase a home around the country. According to the National Association of Realtors New Release, dated 11/5/09, an estimated $22 billion has already been added to the general economy resulting from the bill and approximately 2 million people will utilize the tax credit in 2009.
Unfortunately, this excellent incentive available to those people who probably need it the most is about to end. As we stated earlier, you will need to have a binding contract on a home by April 30, 2010 (about two weeks) and will need to have your contract closed by June 30, 2010. But you shouldn’t fret. Here at Coldwell Banker/The Real Estate Shoppe, as we’ve talked in earlier entries, we have the ability to help you through this process and will do our best to ensure that you are qualified as soon as possible. If you are in the market for a new home, please take action today as this opportunity will be gone before you know it!
Judy Nusser is the Managing Broker at Coldwell Banker, The Real Estate Shoppe in Garden City, KS. Be a Fan of the Real Estate Shoppe on Facebook. Judy can be reached at email@example.com or you can log on to their website, www.gccoldwellbanker.com.