It’s a pretty sure bet that we all have other things on our minds this time of year. If it’s not the frigid weather, it’s those holiday lists that haunt us day and night. House-hunting and home-buying are probably not on the top of our “to-do” lists. But, I’m here to tell you why they should be.
On November 9, 2009, Congress approved the tax credit extension for first time homebuyers, and EXPANDED IT, opening it up to some existing homeowners also. The credit is now 10% of the home price, up to $8000 for first timers, and up to $6500 for move-uppers or move-downers. You must be under contract by April 30th of 2010, and closed by June 30th. To be considered a first timer, you can’t have owned a home in the past 3 years. For existing homeowners, you have to have lived in the same principal residence for 5 consecutive years during the 8-year period that ends when your new home is purchased. The tax credit is only for principal residences. Another rule involves income limits. According to the IRS, this tax credit phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000 and between $225,000 and $245,000 for joint filers. It would be wise to check with your accountant if you have questions. $800,000 is the home price limit for those repositioning. And lastly, you must live in the home for the next 3 years.
Do you realize these deadlines are less than FIVE MONTHS away? If you want to take advantage of free money from the government, you need to be house-hunting and home-buying NOW. If you’re like me, you’ve been silently complaining about government bail-outs. “Where’s mine?” Well, it’s right here!
In an AP interview, Senator Johnny Isakson, R-GA, the primary architect of the homebuyer tax credit extension, said the likelihood of another extension next year is somewhere near zero. He should know. He said the extension needed a termination date to force homebuyers to make a decision, and without an end date, buyers would continue to sit on the fence, waiting for God knows what. Lower home prices? Lower interest rates? Open your eyes, real estate history is being made.
Check those holiday to-do lists, re-arrange your priorities. Call a RE/MAX of Boulder Realtor® today!