Knowing Your Timeline for Tax Credit

GREAT! You have made a mental decision to take advantage of the Extended Tax Credit Program.  You are either a 'First Time Home Buyer' looking to gain 'Up To $8000' in Tax Credit, or you are a 'Current Home Owner' with 5+ years out of the last 8 years looking to gain 'Up To $6500' in Tax Credit.  

YOUR CONCERN?  When Should I Start Looking?  OR...for those who already own...When Should I List My Home?  Well... The Time Is Now!  It is Time To Get Moving.  Dependent on your situation, read below to learn how you need to approach your goal so you can be on time...and with money in your pocket!

1. First Time Home Buyer:  You know that your new home MUST be bought (contract accepted) by April 30th, 2010...no if, and or buts about it.  And you know that you MUST have that offer/contract closed by June 30th, 2010...again, no if, and or buts about that.  So, if you want to 'buy' your home at the last possible moment (mid April) when do you need to start looking?  Assume that you will need anywhere from 1 to 3 months to do your house hunting with a Realtor in order to find the right home for you.  And prior to walking into any potential homes you will need your 'meal ticket' - your Pre-Approval Letter from a lender.  And, there are those days after you find a home and make an offer that might be used by the seller for counteroffers.  

So...your answer?  You need to start looking now!  As in the graph above, you really need to get with a Realtor to begin your search as early as 'late January' so you can ensure you get your tax credit.

2. Current Home Owner:  You know that your new home MUST be bought (contract accepted) by April 30th, 2010...no if, and or buts about it.  And you know that you MUST have that offer/contract closed by June 30th, 2010...again, no if, and or buts about that.  So, if you want to 'buy' your home at the last possible moment (mid April), assume that you will need anywhere from 1 to 3 months to do your house hunting for that next home.  So, by 'late January' you need to start looking.  BUT...you also have a home in your possession that you need to sell before you buy that new home.  AND you want that home 'sold' and 'closed' on or before the your closing date of the new home you just purchased.

So...when do you need to get moving on listing your current home?  The answer is now!  Depending on your home's factors (location, condition, price, etc) it could take anywhere from 30 to 60 to 90 or even more to sell that home - as shown in the graph above.  So putting your home on the market in 'early January' is setting yourself up for success!

I hope this description has helped you in your decisions to 'get moving' on the tax credit benefit.  If you are a person that is eligible for the credit, it really is a great time to buy...and to sell and buy!  Do you have more questions on the tax credit?  Or questions about your eligibility?  Contact me today!  - Legendary Realty