Changes to the Homebuyer Tax Credit Law Both sides of congress have passed the bill extending and expanding the home buyer tax credit. click on the link to see the basics in a nutshell. This new version has a component giving a credit to current homweowners who sell and buy. This should stimulate the economy even further as every time a home is bought and sold, repairs are made, appliances bought, painters, plumbers landscapers employed.
WASHINGTON (MarketWatch) -- Senators have struck a deal to extend a popular tax credit for home buyers beyond those buying their first house, Senate Majority Leader Harry Reid's office said Wednesday.
Legislators also have agreed to extend the tax credit through the end of April, according to a Reuters report.
An $8,000 credit for first-time home buyers is set to expire at the end of November. Under a compromise reached by senators, the credit would be expanded to those who have lived in their home for five consecutive years, a Reid spokeswoman said.
The credit for repeat buyers would be $6,500.
The credit reportedly would be available for individuals making up to $125,000 a year and couples earning up to $225,000 per year, up from the current income limits of $75,000 and $150,000, respectively.
Reid wants to attach the tax-credit measure to a bill that would extend unemployment benefits
This is not a done deal yet, but all indications are it will become law! Stay tuned for further updates.
In my opinion, the first tax credit did a good job of stimulating the market for 1st time buyers. This expanded version takes it a step further- ofering the rebate to trade-up buyers, creating 2 transactions, they sekll their present home and buy a new one ( either bigger for a young family or downsize for an older family). It also increases the income level for eligibility.
A lot of real estate agents are speaking as if the door on real estate sales will be slammed shut if the federal tax credit for first-time homebuyers is not extended. And while this opportunity to collect cash has had a very positive effect on sales in the lower price ranges, it really hasn't meant much to sellers with homes valued in excess of $200,000.
My preference is to let this credit just go away. The expiration of the credit could actually lead us back to a true fair market, where buyers buy because they need a house rather than just trying snag a great deal with future profit potential.
I would like to propose an alternative remedy to help sale in all price ranges. My proposal would really create interest in buyers that could really stimulate the market, and it is the only remedy that I have even seen proposed that would actually correct the mistakes of the past.
The solution I am proposing is to make all down payment monies for a personal residence up to and including a cash sale an income tax deduction. Not a refundable credit, just a deduction against income.
This also would encourage buyers with both cash and significant incomes to get back into the market. It would lead us back to the days when more down payment was better, and smaller mortgages would prevent the short position debacle that we are experiencing today.
The higher end market would see an extensive boost in sales, and prices would stabilize. And once again, homeowners will be encouraged to have equity in their homes to cushion them against negative market forces.
So what do you think? A dollar for dollar tax deduction for down payments on a house sounds like a good idea to me!
Many sellers wonder if offering incentives really works.
I have seen incentives for Buyers, Agents and a combination of both. The reason for an incentive should be crystal clear....the seller wants to sell faster.
What works and what doesn't?
Pricing right in the beginning of your sale works best. You get more traffic and more offers at a higher price!
That being said, what about offer to pay closing costs, taxes, carpeting, painting, association fees, new cars, trips and the list is a imaginative as you can be.
This week a client asked if we offered a trip to some exotic island would that lure buyers? NOPE...they want a good deal not a trip. Now before you send me email we are not talking about the EXCEPTION....we are talking about a marketing plan poised around a give-away. Sure a few people might bite on a trip "IF" the home was the right home and they were going to buy it anyway! Wrong home...NO SALE!
What about that carpet allowance? It helps buyers if you need to update or replace your carpet...no sense in buying new carpet and having the buyers rip it out the day after close! You have wasted money...on the other hand does nasty old carpet help you get more money? NO. So if you need to update your carpet select a neutral color, not coral blue!
What about closing costs? Save your breath...if the buyer needs closing cost they are not bashful...they will ask! What about offering to pay taxes for a year? That would be nice...can you help me with closing costs too? Again it might sound nice but buyers will ask for more anyway...so save your money...it isn't going to bring you more buyer's and usually cost you more because you offered.
Ok if that doesn't entice buyers how about painting? If your home needs painting you should already have done that to get a higher price...again if it is the outside you want to have already painted...the inside, buyers willl do it themselves, in most cases. Not a big motivator to buyers...yet having a shabby outside is a big turnoff to most buyers and will fetch you lower bids or worse, NO Bids!
Association fee may bring a few buyers but what it really does is focus on the association fees, it makes buyers wonder if the fees are higher than normal.
Now that shiny new car...first of all if you are offering a car your home is priced to high....and the car isn't going to change the fact that the buyer knows it's priced to high.
How about a trip to some exotic place? Chances are the buyer won't be able to afford the plane fare and if they could they wouldn't enjoy themselves knowing they should have cashed in the trip to by carpet, paint, furniture or a yard! The truth these incentives are not going to bring you a bunch of buyers...you might have a few exceptions but the reality is buyers know what they want and the head turning incentives only cost you money.
The best is yet to come....what about offering the buyers agent more commission....use greed to have the Realtor sway buyers to your property. Here is the rub...if an agent does this and it can be proved they have broken their fiduciary responsibility to their client, the buyer. That word fiduciary is another word for legal obligation. It's not nice to break the rules an agents license could be gone for this infraction. So if the agent is doing his or her job to begin with, your home is already on the "to see" list, because it meets the buyers needs.
One last thing, what works best? Pricing Your Home RIGHT to Sell!
Hope this clears up a few misconception on incentives and what works best.Buyers buy what fits their needs...always have and always will!
Live in the Grand Rapids or West Michigan area, not under contract? Like to sell or buy a home....give me a call. It could save you thousands in your next real estate transaction. Always confidential, Never Pressured.
The Wall Street Journal recently surveyed six experts asking them which cities in the country will be most likely to experience an influx in young, highly mobile workers in the post-economic downturn. Boston was ranked in the top 10 of those chosen based on economic diversity, lifestyle and their own personal prejudices.
Here's the top-10 list:
1. Washington, D.C. (tie) 1. Seattle 2. New York 3. Portland, Ore. 4. Austin, Texas 5. San Jose, Calif. 6. Denver 7. Durham, N.C. 8. Dallas 9. Chicago 10. Boston
Source: The Wall Street Journal, Sue Shellenbarger (09/30/2009)
This forwarded article from The Boston Globe, explains the Placentino elementary school's innovative options for learning. Check out the article at the link. Holliston has always had consistently highly regarded schools at all levels and this is another example of why.
Best value in Hopkinton. This Home has every amenity -oak floors, tile baths, Cherry and Granite Kitchen, 3 bedrooms, 3.5 baths- thats right each bedroom has a private bath! Spacious 18 X 20 vaulted ceiling master bdrm with huge wwalk-in closet. Master bath with dbl sinks, jacuzzi and 4 ft shower stall. 3rd floor walk up attic and full height walkout lower level roughed for future bath.
Brand New Colonial- every amenity, Hopkinton MA 01748
CNBC Features ActiveRain Member and Zillow's COO - Spencer Rascoff
The Discussion is the Country's Housing Market. CNBC - "One Year Later" focuses on "Hashing Out Housing" with guests Spencer Rascoff from Zillow, Armando Falcon from Falcon Capital Advisors, and Dr. Susan Wachter from Wharton Business School. The Good news, the Real Estate rate of decline is slowing, and the Boston Market appears to have hit bottom. What will it take and when will the Market be "Normal" again? What will that look like? A few hurdles ahead but the outlook is promising, it will be an "L" shaped recovery.
So How is YOUR Market Doing?
If I'm away from this Blog for any length of time, it's possible you might find me over on one of these other sites, I make my rounds every so often because I know that if you're not here, you're probably over there too! :-)
"RainMaker" Special - Signup Here and Get New Member Discount
The 1st time buyer tax credit, is perhaps the best opportunity and incentive in years to become a homeowner. Think about it- since the market peak in 2005, home price are down about 25%, interest rates are at historic levels- hovering around 5% +/-. with an FHA loan you can buy with as little as 4% down payment and THE GOVERNMENT IS GIVING YOU $8,000. credit !!!!!
If you have been thinking about buying your own home in Metrowest MA, but aren't sure how it works or if you qualify. PLEASE call me for some straight talk, no pressure discussion on your questions and concerns! I have 24 years of experience and real estate knowledge to share with you.
Watch this video for a quick (2 minute) synopsis of the program, then call John 508 277-1784.
Southboro Single family Market report is a comparison of Southboro MA YTD statistics for 2008 vs 2009 thru July. The ist time buyer market is very busy.
Southboro Market statistics
2009 YTD Solds thru July 31, 2009
Single familyactivity
Soldvolume
Avg soldprice
Median sold price
Days on mkt
2009
37
474,000
354,000
156
2008
44
621,000
534,000
156
Trend
- 16 %
- 24 %
- 34 %
Up
See chart below for sales by- price range
active price range is - under $400,000
Property Type(s): SF Status: SLD Start Date: 01/01/2009 End Date: 07/31/2009 Towns: Southborough
Price Range
# of Listings
Avg. Days on Market
Average Sale Price
Average List Price
SP:LP Ratio
Average Orig Price
SP:OP Ratio
$0 - $49,999
0
0
$0
$0
0
$0
0
$50,000 - $99,999
0
0
$0
$0
0
$0
0
$100,000 - $149,999
0
0
$0
$0
0
$0
0
$150,000 - $199,999
1
144
$150,000
$175,000
86
$229,900
65
$200,000 - $249,999
8
106
$230,531
$241,050
96
$260,950
89
$250,000 - $299,999
1
284
$289,500
$299,000
97
$359,000
81
$300,000 - $349,999
8
130
$330,175
$339,200
97
$362,700
91
$350,000 - $399,999
3
147
$369,733
$387,967
95
$447,967
83
$400,000 - $449,999
3
198
$416,667
$440,967
95
$461,267
91
$450,000 - $499,999
1
64
$452,000
$459,900
98
$459,900
98
$500,000 - $599,999
3
100
$557,333
$579,600
96
$579,600
96
$600,000 - $699,999
1
401
$605,000
$649,900
93
$649,900
93
$700,000 - $799,999
1
30
$745,000
$769,900
97
$769,900
97
$800,000 - $899,999
4
190
$839,750
$860,725
98
$915,725
93
$900,000 - $999,999
1
473
$945,000
$999,000
95
$1,275,000
74
$1,000,000 - $1,499,999
2
203
$1,231,875
$1,366,500
90
$1,397,450
88
$1,500,000 - $1,999,999
0
0
$0
$0
0
$0
0
$2,000,000 - $2,499,999
0
0
$0
$0
0
$0
0
$2,500,000 - $2,999,999
0
0
$0
$0
0
$0
0
$3,000,000 - $3,999,999
0
0
$0
$0
0
$0
0
$4,000,000 - $4,999,999
0
0
$0
$0
0
$0
0
$5,000,000 - $9,999,999
0
0
$0
$0
0
$0
0
$10,000,000 - $99,999,999
0
0
$0
$0
0
$0
0
Total Properties
37
Avg. 156
$473,678
$497,195
96
$531,273
89
Lowest Price: $150,000
Median Price: $354,200
Highest Price: $1,463,750
Average Price: $473,678
Total Market Volume: $17,526,100
If you are considering a real estate move in the near future, call an expert, I have 24 years of succes in real estate to share with you. I will provide you with an abundance of Southboro market information to make an informed decision on your sale. I have an strong internet based marketing system, unlike any other local Realtor. I Get Results! Call John at 508 277-1784 on the web at www.MetrowestareaHomes.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
A lot of real estate agents are speaking as if the door on real estate sales will be slammed shut if the federal tax credit for first-time homebuyers is not extended. And while this opportunity to collect cash has had a very positive effect on sales in the lower price ranges, it really hasn't meant much to sellers with homes valued in excess of $200,000.
The Discussion is the Country's Housing Market. CNBC - "One Year Later" focuses on "Hashing Out Housing" with guests 
;)
;)
