Buy a House Fast

U.S. homeowners recently were handed an early holiday gift by Uncle Sam when the first-time home buyer credit was transformed into the Home Buyer Tax Credit, applicable to both first timers and certain repeat buyers.  As homeowners unwrap the details, the gift keeps on giving.

Happy Holidays, Repeat Buyers: Home buyers who have lived in a home they owned as their primary residence for at least five of the last eight years qualify for $6,500, while those buying a home for the very first time or for the first time in the last three years receive up to $8,000 as before.

A Happy New Year (or at least a few months of it): To qualify, you must have a signed contract in place by April 30, 2010, but the closing can be delayed until June 30, 2010.  The leeway gives you two months to close, which should be enough time to solve even the stickiest financing or appraisal issues.  This setup is also handy if you want to buy a short sale property, are having a house built, or even want to delay the closing until the school year is over.  The extra time gives the gift of flexibility to every buyer.

Choose where you will use your gift card: The credit is good for any type of principal residence – a home, condo, townhouse, mobile home, or even a houseboat – sold for up to $800.000.  Second homes or investment properties do not qualify, although if you turn your current home into a second home or a rental and buy a new primary residence, you are able to claim the credit.  The tax credit does not have to be repaid as long you remain in the home for three years or more.

More Jingle?  You still qualify: This time around, the income limits to qualify for the credit are higher.  Single taxpayers can earn up to $125,000 to gain the full credit, while joint filers can earn up to $225,000.  Those who make up to $20,000 over the limit can receive a percentage of the credit.  For a married couple to qualify for the first-time buyer credit, neither one can have owned a home in the past three years to get the $8,000 credit but the couple can qualify for the repeat buyer’s credit if one has owned a home.  The income provision, as well as the credit for repeat buyers is not retroactive.

Bonus Gifts for Uncle Sam’s Favorite Sons and Daughters: This time around, special consideration is being given to the military personnel.  Members of the military serving on extended official duty away from home for more than 90 days have an extra year to qualify for the credit and are not subject to the repayment clause if they have to move in less than three years.  These terms apply to all members of the uniformed services of the U.S military, members of the Foreign Service of the U.S., or employees of the intelligence community.

Want to maximize your gift? Express Realty Services has a full stock of “gifts that keep on giving,” the joy of home ownership throughout the year. Aside from our featured listings, we have a special stock of renovated, refurbished, and remodeled homes from our sister company Express Homebuyers.

Sellers, with all the talk about the Home Buyer Tax Credit, are you feeling left out?  You’ve heard for months that it’s a buyer’s market out there, which has meant you’ve been encouraged to take a hit on the price to make your home fit within current market pricing and then make further concessions to a buyer to seal the deal.  This is frustrating.

People always want to sell high and buy low.

When the home that you have sacrificed for is what’s up for sale, you want the listing and selling prices to reflect your equity, cover your mortgage, and cover the improvements you have made.  Your real estate agent has carefully reviewed neighborhood comparable values (comps) with you and taken your improvements into account, but your suggested listing price may not be what you hoped for.

The Home Buyer Tax Credit offers you a chance to reassess your position. Now, repeat buyers who have lived in their home for at least five of the last eight years qualify for a $6,500 tax credit.  If you have been thinking of making a change, the credit allows you to do that.  Why?

First of all, if you have a home priced under $250,000 in most parts of the country, your home is on the radar of many first-time buyers. True first-time buyers, those who have never owned a home, tend to be younger and not as affluent so an affordable home might be just want you want to sell.  In DC and suburban Maryland, homes at these price points are selling much faster than last year.  If you want to sell, you might not only find a buyer, you might get multiple bids on your home.

Second, if you have been wanting to move, the $6,500 might give you the help you’ll need. This will offset the closing costs, partly compensate you for any loss in value, or give you some working capital for projects in the new house.

Third, when you are house shopping, you will also have the “buyer’s market advantage” on your side and be able to get more house for your money. If you are looking for a bigger, better house, the seller may have lowered the price to meet the market.  With the low interest rates currently offered, you might be able to find your dream at such a deal you’ll feel less pain at how much you had to lower your price.

Fourth, the credit is called a move-up credit, but you don’t have to buy a more expensive home to qualify for the $6,500. If you are looking to downsize due to retirement or a lifestyle choice to simplify, you can find a new place that costs less and still get the tax credit.

Fifth, if you’ve been wanting to turn your home into a rental, this could be your chance. Current interpretations of the new law do not prohibit you from keeping your current home as investment property or buying another for yourself as the primary residence.

Sixth, this credit could give you a chance to revisit a prior decision. Say you decided to move to Florida to retire, but now, a few years later, you realize you miss the seasons, miss the lively bustle of DC, or want to be closer to your kids.  If you have rented for more than three years, you can use the First Time Home Buyer Credit to buy a new home or condo up North.  If you bought and have lived in your home at least five of the last eight years, you can sell and buy elsewhere with the $6,500 bonus.  You can even turn your current home into a vacation home, buy a primary residence elsewhere, and claim the credit. (For some of these trickier scenarios, make sure to consult your tax adviser.)

The purpose of the new credit to is to stimulate the housing market at all levels, although homes that sell for over $800,000 won’t qualify. Since the credit is expected to cost the government $10.8 billion in lost taxes (plus $10 billion for the first phase), it is highly unlikely that it will be renewed. As the time lines roughly correspond to when interest rates are likely to remain low, these next five months are the perfect example of a “once-in-a-lifetime opportunity” for you as a  seller to move your home.

Express Realty Services specializes in selling homes fast. We are a licensed real estate brokerage company serving Maryland, Virginia, and Washington DC with a great track record in moving properties.  After all, we are the fourth largest Keller-Williams operation in the world, so we are well equipped to help position you to move on.

Contact us now for more information or check out our website for tips on buying or selling a home in Virginia, Maryland, or Washington DC. Ask us about our Guaranteed2Sell program when you call.