Congress has extended and expanded the homebuyer tax credit and is just waiting for the presidents signature.
First-time buyers basically get the same deal ($8000) but that now defines first time buyer as anyone not having owned a principal residence for three years prior to their purchase (they can be previous owners just not recently). Also, now current homeowners too can benefit an amount up to $6500 from the date of enactment as long as they sell a home they've lived in the home for five of the past eight years and make a purchase (write a binding contract to purchase effective on or before April 30, 2010. Income limits were extended to $125,000 for single and up to $225,000 for married couples which is awesome in our area.
Below is a link to the proposal (pdf file: 426kb) and what it can mean for you
www.jimgramata.com/2009-NAR-BUYER-SELLER-Tax-Credit.pdf
The modifications in the column labeled “December 1 – April 30, 2010” become effective when President Obama signs the bill. All changes made to the current credit become effective on that date, as well. Any questions let me know (contact info on pdf).
While many may claim this is a continuation of an artificial stimulation of the economy I would say there is some truth to that however it is also acting as method of getting buyers and now sellers off the fence if they need to move for one reason or another but were waiting for the right time.
Well usually when you know the time is right it is already too late to maximize the returns being seen these days. I am so glad we are extending this credit and expanding it to sellers AND increasing the income limits.
Awesome news! It will have an impact!
Can't wait until April 30th. Contracts will be ready to write....
