A little birdie told me a rumor yesterday.

She said that the Senate passed the bill to extend and expand the tax credit for home buyers . . . Now, it'll go back to the  House of Representatives and then to the President's desk for signature.

My internet research for validation of the rumor netted nil, so I am still a tad hesitant to sing out victorious yet.

BECAUSE . . . I don't trust politicians :-)

Anything could change in the bill, and there's still a chance it could stall in the house . . .

Let's just hallucinate together for a few minutes and imagine that it's true (Pinch yourself).

Last I saw (Excerpted from the Tennessee Association of REALTORS weekly news digest), the bill under consideration looks something like this:

• Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
• Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
• New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
• Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
• New anti-fraud limitations are imposed.

We (Professional Real Estate Experts) all have until April 30 to help the general public understand the new rules well enough to perform quickly enough to be able to take advantage of this.

I'm assuming that most of these "repeat Buyers" will need to sell a house before being able to buy another . . . and most markets are typically darned slow (seasonally) between now and April 30.

A possible "silver lining" is that there's an extra 60 days built in for the closing - thus actually adding @ 30 days extra marketing time - thereby leaving 30 days for loan approvals (cutting it tight).

Just for kicks, what kind of new purchases might start happening as a result of this new legislation?

Who will potentially start buying as a result of this?

Who do we need to educate about the benefits of listing their house TODAY so as to be able to sell it soon enough to take advantage of this tax credit?

We research and find those who have owned a home for 5 consecutive years within the past 8 years.

Let's just say they've all got great credit, and they can qualify for a mortgage of @ 1/3 of their income . . .

$125,000 income limit for single return - $10,417/mth x .33 = $3437.50 Mortgage payment ... This takes them in range for a $300,000-$500,000 home purchase.

$225,000 Income limit on a joint return - $18,750/mth x .33 = $$6187.5 Mortgage payment . . .

HOLY COW!

So a couple filing jointly can potentially (in my market assuming 5.5% interest rate) buy up to nearly a MILLION dollar home and be eligible for this $6,500 tax credit.

What segments of your market are stagnant these days?

In ours, it's that middle range and high end from @ $300,000 and up.

Many of the repeat Buyers who are interested in moving are frustrated with the inventory out there because much of it is "old and stale" . . . an influx of new listings might just start a little fire.

so . . .

Don't wait!

NOW is the time to LIST HOUSES because 5 1/2 months is NOT much time considering it includes ALL of the holidays AND the Winter ...

List them - Get them under contract - and find a new home for the Sellers by April 30, 2010.

As we sometimes say here in the South: "THAT dog'll HUNT!"

I'm just sayin'

Best,

b

Barry Owen
Principal Real Estate Broker
Keller Williams Realty
30 Burton Hills Blvd Suite 175
Nashville, TN 37215 - Green Hills

Call me:                615-568-2123        
Text me: http://www.mycricket.com/sendtextmessage/ 6155682123
email me: barryowen@kw.com
Visit The Owen Group http://www.theowengroup.net
http://www.owengroupnashvillehomes.com
Barry Owen's Internet Portal to all blogsites, websites, and social networks
http://tnrealestatetribalhub.wordpress.com/2009/06/02/barry-owens-web-portal/

Simply & BOLDLY Living the FourFold Way in Open Space!

Quintessentially connected to the real estate industry to offer the ultimate experience for Home Buyers and Sellers in Middle Tennessee . . . Inquire within!