Outgrown your starter home? NOW is the time to upgrade & here are three reasons why.
Okay, it’s time to sell your house.
You’ve outgrown that cute little starter home with two bedrooms and 1 bath that you bought after you got married and before you had two children. It’s time to pass that along to another young couple and find a larger home in a school district of your choice with a separate bathroom for the kiddos.
You may have heard that the Senate & House extended the 1st-time home buyer $8,000 tax credit. They ALSO added a $6,500 credit for home buyers who have lived in their current home at least five years – this is an effort to get the $200K-$300K inventory of homes moving.
Both have to have written contracts by April 30th and must close by June 30th.
I know that you’re nervous about trying to buy a home while selling yours at the same time. The thought of double mortgage payments scares me, so I know it scares you. Here is a post I’ve written about how best to buy and sell at the same time – it can be done!
Your home is likely to be purchased by a 1st-time buyer, so you really need to take advantage of this opportunity now that they’ve extended the deadline. Honestly, towards the end of the original deadline, the inventory of homes in 1st-time Buyers’ price range was getting scarce – in fact, prices were getting somewhat inflated, because buyers were panicking that they would not close in time. Now that the deadline is extended, I expect the frenzy to start up again.
The legislature added the $6,500 credit to existing home-owners needing to upgrade in an effort to stimulate the inventory of homes in the $200K-$300K range – something the 1st-time buyers couldn’t afford. There are a plethora of homes in that price range that have been on the market a while, so good deals are available.
So, you want to get your home ready to market to first-time buyers AND you can cash in on the $6,500 credit on your purchase. Rates are still low, and we have no clue how long that will last.
It’s time to make the move up NOW, because:
- Your home will likely be purchased by a 1st-time buyer taking advantage of the stimulus extension;
- You can cash in on the $6,500 credit since you’ve owned your current home for five+ years, and finally,
- Rates are great.
So, what are you waiting for? The stars may not align like this again for several years.
Let’s get your home ready to put on the market and set up a search for your larger dream home.
Bringing the Dream of Homeownership Within Reach (Source: National Association of Realtors)
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between the date the bill is signed by President Obama and April 30, 2010.
Helpful links regarding the tax credits:
Quick chart of features (pdf file format)
Form to amend taxes if you close in 2009