Sorting Out The Federal Tax Credits For Home Buyers…Sellers Take Notice!!

By now, you've probably heard story on top of story about the "First Time Home Buyer Tax Credit," originally set to expire on November 30^th…well, Congress got together, and agreed to extend that credit until April 30^th, 2010! Great news, right? $8,000 in "free" money to the individual(s) who decide that NOW is a good time to enter the Sacramento Area Real Estate Market. But wait, it gets better!! Congress also passed legislation to expand the tax credit to include $6,500 to "Move Up Buyers," or existing home owners who are looking to buy a new primary residence.

Sacramento Area SELLERS, we have BUYERS!!!

In Sacramento, it's a "No Brainer" to enter the market, regardless of the credit, due to declining home values, the likes of which haven't been seen since the 90's. In reality, the tax credit is icing on the cake, as investing in real estate, right now, is the safest bet it has been in a decade. The fact that Congress passed the extension for First Time Home Buyers, and the expansion for Move Up Buyers, the move is, likely, a huge boon for Buyers and Sellers alike. As housing inventories wane across the Sacramento Area, we are entering a period of normalcy. The backlog of 2008 is no longer, the banks are trickling their REO inventories out to the public, short sales are taking months to get done, and Buyers are running out of homes to purchase. As the Holiday Season approaches, let me jump back into my childhood, and liken this the "Cabbage Patch Kid" phenomenon…everybody has to have one, Toys R Us has lines out the door, and only a few will actually get one. In the Sacramento Area Real Estate Market, that equates to Lots of Buyers, Multiple Offers to Sellers, and Rising Home Values!

It's about time for Sacramento Area Sellers, to think about getting Off The Fence!

Here's a peek at some of the Tax Credit Qualifications:

• Tax Credit now applies to sales occurring between January 1, 2009 and April 30, 2010
  
• Allows up to a $6,500 tax credit for repeat (existing home owners) who have lived in their current home for at least 5 years
  
• There is a maximum purchase price of $800,000; no minimum purchase price
  
• Income limits have been increased to:
  
  • $125,000 for single tax payers
    
  • $225,000 for married tax payers filing a joint return
    

For specific information & requirements on both, the $8,000 1^st time Home Buyer Tax Credit or the $6,500 Repeat Buyer Tax Credit, visit: www.FederalHousingTaxCredit.com or consult your tax professional.

All the best,

Kyle Groves