As a first time home buyer $8,000 can be a lot of money. Depending on your location and what the typical first time home buyer is in your area $8,000 can be a HUGE incentive or one that just barely makes a dent in any type of scenario.
I don't sell in California and in fact I don't sell in Seattle where the prices for first time home buyers is considerably more than what a first time home buyer can purchase here in Kitsap County. It is true that with the real estate correction over the last 3 years we do have homes in the area that are in the low $100,000 range.
Our income levels are lower here and so the first time home buyer here was being helped tremendously with the $8,000 tax credit. We have a large percentage of military personnel and a large percentage of military personnel marry younger and start families younger. This sometimes has impacted their buying power. They have steady, good paying jobs with benefits but might have over the last several years incurred some debt that can be washed out with this incentive.
Who Qualifies - $6,500 Extended Credit
- Current home owners going under contract to purchase a home between November 7, 2009 and April 30, 2010 (closing on or before June 30, 2010), who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. (I am sure more detailed information will be forth coming) IRS publications I am sure to be released. Speak with your Tax Adviser prior to filling.
So what does this new "expansion" to the extended tax credit mean to local Kitsap County home sellers or "step-up" buyers? You know what cost are associated with selling your home. Check out this post I wrote a couple weeks ago to refresh your memory.
Your $6,500 tax credit could help you with the following charges when you sell your home
- Real Estate Fees - remember these are always negotiable but in our market area the average range is between 3 and 6 percent of the sales price.
- Excise Tax - currently you will be paying 1.78% of the sales price to the state for selling your home.
- Settlement charges like title policy fees and escrow closing costs.
This new incentive just might be what you are looking for to help you to that next dream home. Remember how fun it was to be a first time home buyer? Well, I can tell you that to make a move up is just as fun and almost more exciting because your possibilities are usually more. The move-up home is usually one that enables you to have the items that you only could dream about in your first home.
If you have any questions on selling your home in this market just give me a call, or send an email, or text me with your questions!
About the Author...
Jo began her real estate career back in 1994 and soon found out that she loved selling real estate and that she was really good at it! Lots of people sell real estate, but not everyone is good at it. Jo brings to her clients the commitment to work hard and have fun along the way. As Jo continues to learn the technology of today to be on the cutting edge of multimedia she takes pride in her ability to keep her trademark "old-fashioned" customer service alive. If you are looking to sell or purchase a home in Kitsap County call her office today. You can also find out more about the area by visiting her blog www.WestSoundLive.com or her web sites www.HomeFrontRealtyOnline.com
DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0
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Personally, I don't see many moving just for $6500. Some areas will take longer than 4 months to sell, and since they have to be under contract by April 30, I don't see it "making" people get off a fence.
For those who already have their house on the market, this is great news for them!