Home Buyers and Sellers Tax Credit
The holiday season may be over, but in real estate, we are focused more than ever on the remaining “shopping days” of the “retail home hunting season!” What I mean by that is, the number of days that are left before the various incentives to assist buyers and sellers expire.
This chart outlines the terms of the credits, and if ever there was a slight, and I mean slight, window of opportunity for a seller’s market, it will be between January and April of this year. April is the deadline for offers to be accepted, in order to receive the tax credits.
Sellers who price their homes aggressively and utilize the various tools that Shorewest has to offer, can propel their sale to the closing table. Shadow foreclosure inventory is expected to increase throughout the year, as are mortgage interest rates. The effect of these issues will be increased depreciation in home values, as well as a softening of buying power. If mortgage rates increase by one percent, a corresponding price reduction of 10% must occur, in order to maintain the same monthly payment in principal and interest on a new home.
This is not all doom and gloom, however. Education is the key. As a Certified Relocation Specialist, and Certified Short Sale and Foreclosure Specialist, it is my duty to educate my buyers and sellers on how to maneuver through these critical months, in order to maximize their buying and selling power.
To find out more about these tax credits and where your goals fit into this ever changing real estate market, consult your tax advisor and give me a call.
Posted by:
Karen Trepton
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