Tax Credit Ends; Deal Season Begins

There was a mad rush of buyers putting in contracts by April 30 to take advantage of the federal government's tax credits for home-buyers. April 30 was the deadline and a staggering eleven contracts were turned in at my office, Prudential Network Realty's Avondale / Ortega branch.

If you are a potential buyer you might be thinking you missed a great opportunity for getting up to $8,000 in tax rebates. While it is true that the tax credits for home buyers are no longer available, it is also true that there are still a great many properties available on the market. And the pool of buyers just shrank dramatically. That's why I am not joking when I say that "Bargain Season" is just beginning. Some sellers will be motivated to come down much more than $8,000. Especially with fewer buyers competing for those properties.

Please contact me, Josh Nugent, so that I can assist you in taking advantage of this great time to buy real estate anywhere in Northeast Florida.

Reminder: Tax Credit for Homebuyers Expires at End of April

Tax Credit is for First-Time Buyers and Some Repeat Buyers

As I've written before, any qualified homebuyer who signs a contract for a new primary residence by April 30 and closes by June 30 is eligible for tax credits potentially up to $8000.

First Time Homeowners (any single person or couple who have not owned their principal residence in the last 3 years) are eligible to receive 10% of the value of the purchased residence, up to $8000, as a refundable tax credit.

Existing Homeowners (any single person or couple who has used the home being sold or vacated as their principal residence during 5 of the preceding 8 years) are eligible to receive 10% of the value of the purchased residence, up to $6500, as a refundable tax credit.

The tax credit must be applied either to an amended 2009 return or on a 2010 return filed by April 15, 2011. In both cases the purchased home must cost less than $800,000 and the buyers must fall within certain income parameters (which the vast majority of Americans do). There is more information and answers to these questions at the excellent Federal Housing Tax Credit Homepage. Or, as always, you may contact me, Josh Nugent.

Tax Credit Extended

Obama just signed an extension of the first-time homebuyer tax credit, and it's even better than the first time around! Existing homeowners may be eligible for up to $6,500 provided they have lived in their current home for over 5 years.
To take advantage of your credit you must have a binding sales contract signed by April 30, 2010 and close before July 1, 2010.
That may sound like a long way away, but if you are interested it is never too soon to start looking. Contact me today, Josh Nugent.

About the First Time Homebuyer Tax Credit

Part of the massive stimulus signed into law by President Obama in February was directed at improving the state of the real estate market.

Here are the basics: 

• Purchase by December 1, 2009. 
• Eligible to any single person or couple who have not owned a home as their principal residence in the last 3 years.
• Receive a refundable tax credit of 10% of the purchase price, up to $8,000. (Refundable means that if you are due the full $8,000 but only owe $2,000 in taxes you will receive the rest of the $6,000 in a refund check from the I.R.S.)

More information is available online, or by contacting me, Josh Nugent.