The Revised Tax Credit Extension: Moving Forward

The Tax Credit extension was officially signed into law over the weekend.   With over 36% of all home sales in 2009 involving the tax credit, proponents assume that the extension will continue to drive home sales.   Realtor® Magazine went as far as to estimate that the extension will drive another billion into the economy.  Over 2 million people have used the tax credit so far.

The new deal:  Contracts have to be signed by April 30 and close by June 30, Income limits have been increased to 5k for individuals and 5k for couples, homeowners who have been in one home for 5 out of the last 8 years are eligible for 50,  home price cap is 0k, and first-timers still qualify for k.

Our office handles only distressed property sales (short sales, rehabs, and bank-owned).  Only 7% of the transactions from our office included use of the tax credit. The majority of our buyers are not eligible.  Fellow real estate teams however, have had over 80% of their transactions include the tax credit.  Gauge your buyers and property marketing by buyer type.  Depending on property condition and likely terms, you will need to determine how much your team promotes the tax credit as a buyer incentive.

*We welcome your comments and contributions or you can ask our experts any related question.
To Your Short Sale Success!

Related posts:

1. The Ugly of a Tax Credit Extension
2. Buyer Tax Credit Criminals
3. Distressed Properties Drive One-Third of Sales

Short Sale Daily News » Investor News & Advice