Putting the tax credits to work for you...

I recently posted a blog outling the $8000 federal tax credit and the $10,000 CA new home buyer tax credit, along with a few other tips on buying a home in today's market.  You can read that here: 

http://activerain.com/blogsview/952768/Top-Reasons-to-Buy-a-Home-Today

I wanted to follow up with a few success stories on how we have used this information to actually close transactions.  First, it is important to note that there is a lot of misinformation out there about these credits and how they work...so be sure you are getting information from a reliable source and always verify it with your tax advisor.  On the surface the tax $8000 tax credit in and of itself may not be enough to get you to put pen to paper and make an offer.  But in some cases when coupled with other incentives, it may be just what you need to jump off the fence.  After all who can't use $8000- $18,000?  

Last month we had 6 offers accepted for clients that specifically bought because of the credits.  In two cases they also bought new consturction, so they qualified for the $8000 federal new home buyer credit plus the $10,000 CA new construction credit.  Additionally we negotiated with the builder to add some incentives and got them to buy the client out of a lease for $5000.  That totalled up to $24,000!  A significant incentive to say the least.

The reality of this market and economy is that there are great deals out there!  Companies are negotiating on everythig from cars to household items to homes.  Don't be shy in asking for incentives or credits or closing costs.  Keep in mind however that when it comes to foreclosed homes competition is fierce and people are paying over list price.  Lenders are pricing these homes to move so go in with your eyes wide open, look at recent sales comparables and work with a strong agent that knows how to structure the best deal possible for you and your family.  Stay tuned for my next blog on the recent auction I attended, and get the inside scoop on how they work and if they are really the place to get a killer deal on real estate.