The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
*UPDATE: President Obama has signed the bill into law*
First Time Home Buyers now have until April 30, 2010 to purchase a new home to be eligible for the $8,000 credit.
Great news from Capitol Hill today as Congress has just passed legislation to extend the $8,000 First Time Home Buyer Tax Credit until April 30, 2010! The bill also provides new legislation for a $6,500 tax credit for Move-up or Trade-down buyers that have currently owned a home for at least five years. The legislation was added to an extension of unemployment benefits and was passed by the Senate on Wednesday night. President Obama is expected to sign the legislation into law Friday morning.
View a brief summary of the tax credit extension and expansion legislation.
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Legislation is currently pending to extend the First Time Home Buyer $8000 Tax Credit, as well as provide a new tax credit for Move Up Buyers (those that currently own a home and are looking to move up to a new home).
See below for a brief overview of the new legislation: Continue reading
Buyers who are in the market to “move-up” may not realize now is a great time to sell your “starter” home and buy up. You may think it’s a complicated situation to sell your first home because the market is not as strong as when you first bought. You are probably thinking you can’t afford to buy a new house before selling the old one.
Quality of life is hard to quantify monetarily, but is a major factor in most moves. The truth is – homeowners who want to trade up in a down market can benefit financially. You may sell your current home for less than what it might have sold for a few years ago, but you could also pay a lot less for the next home.
Let’s say your current home that was worth $500,000 two years ago is now worth $400,000, or 20 percent less. Even though you would sell for $100,000 less today, if you buy a $1 million house that two years ago was worth $1.25 million, or 20 percent more, you come out $150,000 ahead.
There is more to consider than just how much profit you might realize in deciding to move up. The first step is to make a list of all the reasons why you want to move. Common reasons are that the house is too small; it doesn’t fit your family’s growing needs; it’s in an inconvenient location; or it’s not located close to family or the schools you want. Then make a list of all of the reasons it would make sense to stay. Weigh the pros and cons.
We are here to help you evaluate the pros and cons and can even work up a Seller’s Estimated Net Sheet outlining the potential profit and any fees associated with the sale of your current home and purchase of you next home. Plus, there’s no obligation.
Contact us today and we will work up the numbers. We’ll prepare a no obligation market analysis of your current home, meet with you in person at your house, review the numbers and provide all the information you need to move forward!
Want more information? Find out all the details at one of our FREE upcoming real estate workshops.