Beaufort, SC "Move-up" Buyers Join the Party
If you've owned the same home for the past five years and are looking to move, you just got invited to the party.
The bill signed by President Obama on Nov. 5 that extended the tax credit for first-time home buyers also included a provision for a reduced credit for "move-up" buyers.
Those who have lived in a home for five consecutive years during the past eight years are eligible for a credit similar to the first-time buyers credit if they purchase a new home that is more expensive than their current one.
Like the first-time buyers credit, it is 10 percent of the purchase price of a new home, up to a maximum of $6,500 (the first-time buyers credit has a max of $8,000). You must have a signed purchase contract by April 30 of next year and the transaction must close by June 30.
Income restrictions on both credits were eased a bit under the new legislation. Single tax filers earning up to $125,000 ($225,000 for couples filing jointly) can get the full credit.
The extension of the first-timers credit should help the recovering housing market keep the momentum it has gained since the credit was established. The National Association of Realtors estimates that about 350,000 people who would not have otherwise purchased homes did so because of the credit, which was set to expire on Nov. 30.
The inclusion of move-up buyers could bring even more buyers into the market, which would help stabilize prices further. The original credit, NAR Chief Economist Lawrence Yun said, did not have the impact on the "move-up" part of the market that the NAR had hoped.
With so many foreclosures for sale, many of the first-time homebuyers who qualified for the credit moved into houses whose sellers were not in position to buy another home. So it was the entry-level, "starter" home segment of the market that mostly benefited.
Beaufort, SC Foreclosure Real Estate for Sale
David Thompson, Foreclosure Specialist and his REO Masters Team offers expertise in identifying, evaluating and assisting clients in purchasing and liquidating foreclosure and short sale properties in the Beaufort and Bluffton, SC area. (843) 812-5214
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