There are many people in the Charlotte area who are considering selling their home. Trying to decide if the time is right has become the name of the game in real estate. While Charlotte home prices were at an all time low recently, things are turning around. Home prices are starting to go up and the extension and expansion of the Home Buyers Tax Credit mean more people will be looking to purchase a home in the greater Charlotte area. This is good news for those who are ready to list their home!
First Time Home Buyer
The extension on the Home Buyer tax credits has opened up more doors of opportunity for sellers. Not only is there a tax credit for first time home buyers, some current home owners will qualify for a credit as well under the expansion. For first time buyers much of the criteria remain the same. The income guidelines for sales after November 6, 2009 are $75,000 for single tax payers and $150,000 for married tax payers filing jointly. The time frame is as follows: if you have your contract signed by April 30, 2010 you can qualify for the credit as long as you close no later than June 30th.
Repeat Home Buyers
The newest twist to the Home Buyer Tax Credit is for repeat buyers. Under the old credit, only home buyers who had not owned a principal property in the last three years qualified for the program. In the extended version, if you have lived the same home for 5 consecutive years out of the last eight years, you are considered a repeat buyer. These buyers can qualify for a tax credit of 10% of the homes purchase price up to $6,500. The income guidelines are similar to those for first time homebuyers.
Getting the Credit
Whether you are a first time home buyer or a repeat buyer, you would use IRS Tax Form 5405 to determine the amount of your credit. You then enter the amount to line 67 for the 1040 form on your 2009 return. There is no application for the credit and you do not have to be pre-approved for the program!
Time to sell!
What does all this mean for sellers? There is now a whole new set of potential buyers for your home! If you have been riding the fence on listing your Greater Charlotte home, call Lars Hedenborg! If you would like a current market analysis or if you have questions about listing your home, his team will be glad to help!!
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