Why is the $6500 Repeat Buyer Credit Important?

By this time, most people are aware of the extension and expansion of the $8000 first time buyer tax credit, and many even know about the new "category" of "first time buyers" who are eligible for a $6500 credit. You can read more details here.

Income limits were raised (previously $75,000 AGI for a single up to $125,000), and the new deadline is April 30 (under contract). These changes obviously made a lot of buyers very mad; those who purchased in 2009 but didn't meet the income eligibility now look like suckers (but take heart...at least you had low prices, fantastic interest rates, and likely a lot more choice in inventory than today's buyers have.) And what about those souls that purchased back in 2008 when the "credit" was just a $7500 loan? (Again, take heart...low rates, low prices, and you really did have the pick of the litter on inventory. Just look at the inventory lines on this graph of Northern Virginia Homes for Sale and compare the 2008 line to today. What good is a big credit if everything available to buy is not worth buying?)

With inventory so tight, why do we need an extension and expansion, and on top of that a new category (the so called "move up" buyer, though in reality it could just as easily be a "move down" buyer, or even just someone who wants to convert their current residence into an investment property)?

Continue reading the post here.

Buying and Selling Simultaneously

Read the first two posts in the series here (Home of Choice contingency) and here (Home Sale Contingency).

Our next tool is a two-for-one: Occupancy Agreements. There are Pre-Settlement Occupancy Agreements and Post-Settlement Occupancy Agreements (aka Rent-Backs).

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$8000 First Time Buyer Extension and New $6500 Tax Credit

It's officially passed the House and Senate, and is now awaiting the President's signature. Along with the extension of the $8000 First Time Buyer credit (now applies to any buyer under contract by April 30, 2010 and settling by June 30, 2010), there is now a new credit category: long-time residents of the same principal residence which has been given the shorthand name of "move up buyers"--though in reality it could just as easily apply to "move down buyers."

If a homeowner has owned and used the same residence as their principal residence for any five consecutive years in the last eight (as of the date of purchase of a subsequent residence), then they are treated as a "first time home buyer" eligible for a $6500 tax credit when they file their next return.

Click here to continue reading more about the $8000 and $6500 home buyer credits.

Up and Coming in Petworth: Mayor Fenty Visits

I happened to stop by a client’s new house today–a fantastic renovation of a rowhome in Petworth–and whom should I see walking down the street but Mayor Fenty himself! He was checking out the neighborhood, shaking hands, etc.–no doubt checking up on all the recent development in the area! He was very interested in the recent sales in the neighborhood, which obviously has been undergoing a lot of changes lately, so we chatted for a few minutes.

Read the rest of the post here.

Simultaneously Buying & Selling a Home

Now that the first time buyer rush is nearing its end (unless it’s extended…stay tuned…), and there’s a lack of inventory for entry-level price points (below $450k-ish) in much of our area, this might be the ideal time for owners to start thinking about putting their homes on the market in our area. Yes, despite the holidays coming up…especially if the credit gets extended.

But many sellers worry:

• What happens if I can’t sell my home and I’m already under contract on another?
  
• What if I have a contract on my home but it falls through?
  
• What if I can’t even find a home that I want to buy and someone has already bought mine?
  
• How do I coordinate the closings so that I’m not homeless?

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