1st Time Buyer's Tax Credit Time to Act
The 1st Time Buyer's Tax Credit has been given a reprieve but don't let the deadline sneak up on you. Buyers must have their new home in contract by April 30, 2010 and the sale must close by June 30, 2009. 1st time buyers are defined as those not having owned a home in the last three years. The tax credit is 10% of the home price up to $8,000. To be eligible the tax credit phases out for single individuals earning $125,000 and for people filing joint returns $245,000. The extension of the Tax Credit is also extended to other buyer's as well. For move up buyers the credit is up to $6,500. It is very likely that this credit won't be extended again.
The tax credit has already stimulated the real estate market nationwide but more importantly in Stockton and San Joaquin County one of the hardest hit area in foreclosures and a decline real estate values. The market in Stockton has surged and is estimated to have resulted in a 10% increase in home sales. That is a reason for buyer's not to procrastinate; our inventory of available homes is approximately 2.7 months and that is extremely low. More often than not buyers are competing for homes. Existing homes are selling in one to ten days with multiple offers. The biggest myth is that this is a slow market and it is not for buyers. It's not great for sellers because of the decline in the values of their homes
If you are serious about taking advantage of the tax credit we urge you to take the following steps:
- Start you house hunt early by becoming pre-qualified for a loan. Most sellers won't look at an offer without a prequalification letter.
- Interview and create a relationship with an experienced Realtor.
- Make a list of what you want in a home.
- Be ready to look at houses at a moment’s notice, the competition is fierce. Homes are not staying on the market very long.
- If you see that house that grabs you when you walk in the door make an offer or another buyer will.
The Lilly Real Estate Group at PMZ Real Estate is ready to assist you in the purchase of a new home. Hugh Lilly has over 28 years of experience and knows real estate. Call him at 209-479-9222 or e-mail Hugh at hlilly@pmz.com.