Not only is it a great buyer’s market for real estate, it is also a great time to sell your home and buy a new one. Everyday, the news seems to indicate that this is one of the best real estate markets for first time home buyers with affordable home prices, lower mortgage interest rates, and the federal home buyer tax credit.
Lost in all of this news is the fact that the same federal regulation that introduced in the $8000 first time buyer tax credit also authorized a $6500 home buyer tax credit for current homeowners who meet certain qualifications.
If you happen to be a current homeowner who has lived at your residence for 5 consecutive years out of the last 8 you may qualify to get a $6,500 tax credit just as one incentive to purchase a new home.
Qualifications of the Repeat Home Buyer $6500 Tax Credit
Tax Credit Eligibility Includes:
- You must have a signed sales contract by April 30, 2010 and close on your home by June 30, 2010,
- being subject to income limits, $125,000 for single buyers and $225,000 for couples, and
- the sale price of the home being purchased cannot exceed $800,000.
The good news is that, you won’t have to sell your current residence to be eligible for the $6,500 tax credit. However, if you do not choose to find yourself in trouble with two mortgage payments you should think of listing your property on the market as soon as possible while you look for a new home.
Contact me asap if you are considering this $6500 sales tax – time is running short. The sales cycle in your market may be longer than other areas and you do not have the luxury of time if you want to take advantage of this housing tax credit and lower mortgage interest rates.
Current sales cycle in Mesa – 91 days.
