Will the new $6,500 tax credit get you to sell your current residence and buy another property?
I have been thinking about this new home buyer/seller tax credit since it was approved in November. I wrote a quick article about it in November. Here is just a bit of that article.
Who Qualifies – $6,500 Extended Credit
Current home owners going under contract to purchase a home between November 7, 2009 and April 30, 2010 (closing on or before June 30, 2010), who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. (I am sure more detailed information will be forth coming) IRS publications I am sure to be released. Speak with your Tax Adviser prior to filling.
So what does this new “expansion” to the extended tax credit mean to local Kitsap County home sellers or “step-up” buyers? You know what cost are associated with selling your home. Check out this post I wrote a couple weeks ago to refresh your memory.
Kitsap County Real Estate – Sellers Closing Costs – WHAT
Your $6,500 tax credit could help you with the following charges when you sell your home
- Real Estate Fees – remember these are always negotiable but in our market area the average range is between 4 and 6 percent of the sales price.
- Excise Tax – currently you will be paying 1.78% of the sales price to the state for selling your home.
- Settlement charges like title policy fees and escrow closing costs.
This new incentive just might be what you are looking for to help you to that next dream home. Remember how fun it was to be a first time home buyer? Well, I can tell you that to make a move up is just as fun and almost more exciting because your possibilities are usually more.
I still am scratching my head on what this $6,500 tax credit really will do. Will this credit really push home-owners into the “move-up” market?
I know interest rates are at there lowest in years, that home prices have come down and I do believe there are some great opportunities out there.
I also believe that it is better to purchase a move-up home in a buyers market. Sure you might not have realized the equity you would have 3-4 years ago but, the new home you are going to purchase will be priced lower so your move-up home can really be a real “move-up” home.
I don’t think the credit is much of a push but it is a nice chunk of change to make all the costs associated with selling a little easier to subtract from your hard earned equity.
Want to chat more about this give me a call, every situation is different and remember there is a deadline. With homes selling on an average of 90 days on market in the Bremerton area if they are properly priced and the closing process on on your move-up home at about 30 days we really need to get a move on if you want to move-up.
.
