Repeat Buyers Need to Act Fast to Capitalize on Expanded Tax Credit RISMEDIA, January 23, 2010—By now it is well documented that today’s affordable h

Repeat Buyers Need to Act Fast to Capitalize on Expanded Tax Credit

RISMEDIA, January 23, 2010—By now it is well documented that today’s affordable housing prices, historically low interest rates and federal home buyer tax credit have combined to create one of the most attractive first-time buyer markets in recent memory. What many Americans might not realize is that a recent expansion of the buyer tax credit has created an equally desirable opportunity for existing homeowners.

This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.

“The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up,” said James M. Weichert, president and founder of Weichert, Realtors, one of the nation’s largest independent real estate companies. “Not only can you receive a large sum of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come.”

To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.

There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, Weichert encourages existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.

“Typically, it takes three months or longer to sell a home. That’s why it is critical repeat buyers put their home on the market right away. Otherwise they might not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30 deadline,” added Weichert.

Conditions are Optimal for buyers

Inventories have steadily declined which balance home prices, This means buyers still have good choices,add low interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers.Inventories have steadily declined which balance home prices, This means buyers still have good choices,add low interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers.

More Changes to Real Estate Transactions for 2010

Beside the changes to requirements for FHA loans the GFE(Good Faith Estimate)given by the lender will now have all fees broken down even more so the borrower can see exactly what fees they will be paying to close their loans.......

FHA To Tighten Requirements in 2010

Will FHA tighten underwriting standards on FHA Loans next year by increasing the amount of upfront cash homebuyers must bring to the table, raising minimum FICO scores for new borrowers, and reducing maximum seller concessions from 6 percent to 3percent?

Real Estate Going Green?

There are significant tax credits available on the state and federal level that may help pay for improvements. You can claim a credit of up to $500 on your 1040 for installing energy-efficient windows, insulation, doors, roofs & A/C

Just a thought.....Wouldn't it be wise if appraisals were done before putting a home on the market? Seems it would be helpful for the Seller and the Buyer!

Real Estate Forecast Hopeful

Forecast Hopeful with First-Time Home Buyers Leading the Way, Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, According to the National Association of Realtors®.