Taking a Close Look at the Homebuyer Tax Credit
( Reposting this from our Intero corporate blog, and authored by our illustrious Gino Blefari).
The much talked
about American Recovery and Reinvestment Act of 2009 – otherwise known
as the “Home buyer tax credit” – expires on December 1, 2009.
That’s just a
little over three months from now – not much time when you consider that the
average buyer takes six to eight weeks just browsing online for homes before
even contacting a Realtor.
What’s more, we
are seeing increasing signs of a market bottom. According to Altos Research, a
firm based in the Silicon Valley that tracks real estate data, median sales
prices for San Jose, Saratoga,
Los Gatos and Cupertino
all increased in the first week of August.
At Intero, we
sold more than 900 homes in July – a one-month record for our company.
My point: If you
are thinking at all about buying, now’s the time to take a good look at the tax
credit program to see if it makes sense for you.
The National
Association of Realtors offers a comprehensive guide to the tax credit on their
website, but here’s a quick overview:
- The
credit is equal to 10% of the purchase price of the home, up to $8,000. - First-time
homebuyers who purchase homes between January 1, 2009 and December 1, 2009
are eligible. To be a “first-time home buyer” you or your spouse may not
have owned a residence during the three years prior to your purchase. - Single
buyers with incomes up to $75,000 and married couples with incomes up to
$150,000 may receive the maximum tax credit. - The
credit does not need to be repaid if you occupy the home you buy
for three years or more. However, if the property is sold during the
three-year period, the credit will be recouped on the sale.
Do your homework. Get
advice from a legal or tax professional if you need it. But don’t let this
landmark program expire without taking a closer look.
Realtor, Marathon Man, "Man of a Thousand Voices".
