Do you currently own your home? Have you been considering taking advantage of the lower pricing in the local market and “moving up” to a larger space?
> IT IS TRUE: a larger home is less expensive today that it was 2 years ago.
Have you owned your current home as your primary residence for at least 5 years?
If the answer to all of the above is ‘yes’, then you may qualify for the NEW tax credit! Not heard of it? As part of the extended first-time buyer credit that passed last month, the homebuyer credit has been expanded to include “move up” buyers that have been in their home at least 5 years. This tax credit is up to $6500 and is also refundable, meaning if you were to file your taxes after purchasing a new home and have a refund of $200 owed to you, you would with this credit have a refund of and additional $6500….in otherwords a $6700 refund!
Certainly, this tax credit alone is not a reason to sell your home and buy a new one, as there are transaction costs involved in buying and selling which are likely above $6500. HOWEVER, if you are considering trading up anyway to take advantage of market pricing, certainly it is worth getting it done in time to use this credit to offset some of these costs.
You have only until April 30th to be in contract on your new home to qualify. Not to sound dire, but while considering this, please also consider that the first offer you make on a home often does not go through! If you were to make your first offer on a home on April 20th and it was not accepted by the Seller, you may not find another home that satisfies your needs in time to qualify for this credit! Please do not leave yourself in a time pinch and “setttling” for your next home just to qualify.
PLAN AHEAD! Start today by contacting your tax advisor and me, your REALTOR!
View the document on my website for more details from the National Association of REALTORS.
Thinking of a friend or relative that may wish to take advantage of the tax credit? I am pleased to offer no-obligation, free consultations…please pass along my information and have them contact me today!
The worst they can say is ‘no’….but it might be just what they need!
