The New First Time Home Buyers Tax Credit and Expansion

It looks like the extension and expansion of the $8,000 First Time Homebuyers Tax Credit is a done deal so what does that mean for The Real Estate industry?

1st - It allows first time homebuyers to continue to buy in a great market and get money back from the government! Don’t get me wrong, I’m not a fan of increasing the national debt, but this incentive is increasing real estate sales and helping the economy to begin its recovery so I believe it is money well spent!

2nd - Congress has expanded the program to include homebuyers who have lived in their home 5 of the past 8 years. This is HUGE since many people are upside down in their mortgage. This will give homeowners the incentive to go ahead and sell their homes even if they are taking a loss and buy another home at a great deal using the $6,500 credit to offset the difference! This will result in more sales in the market place and again increase the real estate market, further helping us out of this recession. Since the deadline is April 30th, it will also increase sales throughout the winter, which are usually slower months for real estate.

3rd - It also increases the income limits to $125,000 for individuals and $225,000 for married couples. This will widen the pool and more people will qualify for the program!

What can Real Estate agents do to get ready for this program?

We need to position ourselves in the market by taking as many listings as we can! When these people are looking for homes, wouldn’t you like to have the listing they are looking for? We are already seeing a limited supply of GOOD homes in the first time home buyers price range so prepare your buyers for that and don’t let them lose their perfect home!

Move up buyers, who have homes priced in the first time buyer range, will come out winners. They can put their home on the market and sell at a reasonable price, then buy a higher priced home at a great deal and get the tax credit if they qualify.

The best way to take advantage of this is to contact your client list and educate them on how they can take advantage of this program and how it can work for them! Many people may not even know how this could help them, so it is your job to let them know. Remember, you are doing your clients a favor by informing them and you will be surprised how many of your clients are on the fence and this key information can make the difference!

Will a 15,000 homebuyer incentive work in Nashville?

ABSOLUTELY!!! If the $15,000 home buyer incentive passes congress in it's present form, we will see a HUGE boost in the sales activity here in Nashville. We are currently working on the perfect storm with record low interest rates, sellers willing to negotiate and add that to a new buyers incentive we will see buyers falling off the fence in droves to buy that house they have been waiting for. This will also create a 2 fold benefit. By offering this incentive, it will help sure up the housing market and boosting consumer confidence. Then with a new found $15,000. in their pocket, the consumers will most likely spend this new found windfall therefore stimulating the economy even more. Two benefit's from one addition to the stimulus package. It doesn't get better than that.

Robb Campbell
RE/MAX Elite
615-661-4400