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Home Buyer Tax Credits - - Still Available in 2010

By
Real Estate Broker/Owner with MAINE HOME REALTY Lic# BR916095

Tax Credits for Home Buyers - Still Available in 2010, but in our particular area, I don't think that word has gotten out to Home Buyers yet.

In our office, we certainly had a flurry of First Time Buyer activity in September and October of 2009 but as soon as it became evident to potential buyers that they weren't going to find THEIR home in time to close by November 30th, the activity dried up - - after all, that was the deadline that we (and the media) had drilled into their minds.

Then, while REALTORS and lenders were watching minute-by-minute as the legislation to extend and expand the Home Buyer Tax Credit inched its way through the process to passage into law, the home buyers had gotten off to better things like Thanksgiving celebrations with family and Holiday shopping and parties.  Hope they didn't all spend their down payment and closing cost cash!  Industry folks talked alot about it amongst ourselves, but NO ONE TOLD THE BUYERS!

Our local Board of Realtors plans to get the word out, but not for another couple weeks.  Meanwhile, we are all thinking that the Spring Market will come in January this year because of the tax credits -- Well, that would be NOW, but unless Sellers and Buyers know about the current Tax Credits for Home Buyers, how is that supposed to happen???  Preaching to the choir here, I know, but we need to spread the word!  We need to re-focus buyers on the benefits of purchasing before April 30, 2010, and not just First Time Buyers this time around!

So, under the current law, qualified First Time Homebuyers who purchase a principal residence before April 30, 2010 are eleigible for up to $8,000 in tax credit.  Starting November 7, 2009, Repeat Buyers who have lived in their primary residence for five of the last eight years can also qualify for a tax credit of up to $6,500.  The credit for repeat buyers also expires April 30, 2010 under the current law.  The law does provide for a buyer to close by June 30, 2010 if the purchase is under contract by the April 30th deadline and still be eligible for to claim the credit.

If Buyer and Spouse (if married) have not owned a principal residence for a 3-year period before purchase, they may also qualify for the First Time Buyer Tax Credit of up to $8,000.

A Repeat Buyer does not have to be a move-up buyer; A Repeat Buyer could be down-sizing or moving to a new area, as well, and still qualify for the Tax Credit of up to $6,500.

Of course, there are certain requirements such as income limits and purchase price limits and you may not be eligible for the full amount of the tax credit, depending on your purchase.  And some folks just plain won't qualify, but it is certainly worth checking into.

For more information about the tax credits or homes for sale in MidCoast Maine, CLICK HERE TO CONTACT ME.

TERRY DRISCOLL, REALTOR  :  MID-COAST MAINE RESIDENTIAL REAL ESTATE  :  207/449-9696

ALLEN & SELIG REALTY  .  15 VINE STREET  .  BATH, MAINE  04530  .  207/443-2200

ALLEN & SELIG REALTY  .  1 WALNUT HILL COMMONS  .  NORTH YARMOUTH, MAINE  04097  .  207/829-3339

 

 

 

Posted by

Terry Driscoll, REALTOR, Broker, Owner

MAINE HOME REALTY  .  122 FRONT STREET  .  BATH, ME  04530

207.443.4353     207.449.9696

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Comments(8)

David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

I think the buyers are educating but procrastinating.  This seems to be what americans do, we wait until the last minute then make a decision to move.  Meanwhile rates are slowly inching upward.

Jan 07, 2010 01:53 AM
TERRY DRISCOLL
MAINE HOME REALTY - Bath, ME
REALTOR - Buy or Sell in Any Season!

David - - You are so right about the last minute-ness of Americans - - That's why we saw the activity in September and October on the last round!  Thanks also for mentioning about interest rates - - waiting will cost more - - spread out over 30 years!

Jan 07, 2010 02:52 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Terry:  Procrastination is going to hurt a buyer in the pocket if they wait too long.  You are so right about that.  It appears that interest rates are on the rise, so those buyers sitting on the fence need to make a decision fairly quickly in order to get the best rates and deals.  Maybe one of the best illustrations I've seen of those cold hard facts and numbers was written within a recent post by Gabe Sanders here on AR.  It was entitled "The Cost of Waiting for First Time Home Buyers" and contained some pretty detailed illustrations about how just a small increase in interest rate ends up as a huge loss of money over the life of your loan. Here's the link, if you missed this great article:   http://activerain.com/blogsview/1417931/the-cost-of-waiting-for-first-time-home-buyers.  It definitely drives home the reality of waiting.

I promise to do my part to help spread the word ...

Gene

Jan 07, 2010 06:50 AM
TERRY DRISCOLL
MAINE HOME REALTY - Bath, ME
REALTOR - Buy or Sell in Any Season!

Hey Gene, I just checked out Gabe's post - - thanks for the link and thanks for spreading the word!

Jan 07, 2010 07:09 AM
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Nice summary, and I'm still gung ho for promoting this credit !!

Cheers !

Sheldon

Jan 07, 2010 09:19 AM
TERRY DRISCOLL
MAINE HOME REALTY - Bath, ME
REALTOR - Buy or Sell in Any Season!

Sheldon, Gung Ho is Good!  Thanks for stopping by - - all the best to you in 2010.

 

Jan 07, 2010 11:23 PM
Robert Hammerstein
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate

Terry - Yes we are coming up against the procastination factor as well.... We keep promoting it nonetheless... As Sheldon said... Gung Ho....

Like your new snowy wallpaper....

Jan 10, 2010 05:44 AM
TERRY DRISCOLL
MAINE HOME REALTY - Bath, ME
REALTOR - Buy or Sell in Any Season!

Hi Bob (and Lisa, too),

Procrastination is a waste of time - - Put off for tomorrow and then what are you going to do today? 

My snowy wallpaper is compliments of the New Years Eve Nor'Easter - glad you like it!

Jan 10, 2010 11:20 AM