Are Properties in Your Market Getting Multiple Offers and Snatched Up?

I watch the news like everyone else... and hear what they are saying about the housing market... but......... over and over again, good houses are getting snatched up in my market quickly. Yes, they are either decent properties with the right price, or ones that are just priced correctly. Either way, I am finding them to be competitive. It is good news for sellers here.

I don't mind showing a prospective buyer without a pre-approval properties at least once, but I am very hesitant to do it now, because if they really like the property, and their paper work is not lined up, and the property goes under contract then every other property thereafter will be a disappointment or a compromise. Thus, I am really encouraging people to get their finances straight, before they go out and look, so that when they see "the property", they can jump on it! It seems, there is no time to waste. And with the tax credit out there for a first time home buyers, it is a really good time to take the leap and buy.

To the other Realtors® out there, I am asking the questions and taking a poll.... Are properties in your market getting multiple offers and snatched up? The poll appears on the right side on the home page of the blog. The poll will be up for two days. Thanks!

First-Time Home Buyer Tax Credit

Here is what you need to know:

1. Who is eligible? First time home buyers with modified adjusted gross income of $75,000 or less to qualify for the full credit and $150,000 for married couples, who along with their spouse have not owned a principal residence in the past three years.
   
2. When does the purchase need to be made? The home must be purchased on or after January 1, 2009 and before December 1, 2009.
   
3. What is the definition of a "First Time Home Buyer"? Someone who hasn't owned a principal residence for three years before buying a house. Owning a vacation home would not count against you. However, if your spouse owned a principal residence in the past three years, you would not qualify.
   
4. What type of purchase is the tax credit good for? A Principal Residence.
   
5. How much is the tax credit? It is 10% of the purchase price, which is capped at $8,000.
   
6. Does it have to be repaid? This Tax credit does not have to be repaid unless you sell your house in the first three years.

If you can qualify based on the above answers, it is a terrific time to buy. If there is any question in your mind about your qualification, call your tax professional for advice.

The Tax Credit for Home Buyers under The Housing and Economic Recovery Act of 2008

There is a great incentive for FIRST TIME HOME BUYERS and/or people who have not owned a home in the last three years in the form of a Tax Credit provided by the Housing and Economic Recovery Act of 2008.

How does it work? I will try to make it as simple as possible

1. House must be purchased between 4-9-2008 and 7-1-2009
2. The house must be a primary residence
3. House ownership of spouse will affect your qualification
4. Income: Single: up to $75,000; Joint Filers: up to $150,000 (Singles earning up to $95,000 and Joint Filers earning up to $170,000 can get a partial credit)
5. The credit for Singles and Joint Filers is $7,500. The credit cannot exceed more than 10% of the sales price of the home.
   
6. The credit may be deducted on the 2008 or 2009 return depending on when the house is purchased
7. This credit is deducted from TAXES OWED and not from GROSS INCOME
8. If the credit is more than taxes due, you will get a refund of the credit amount
   
9. This credit is not a gift
10. The credit must be repaid, interest free over 15 years beginning two years after purchase of house
11. If the house is sold, the full balance of the credit must be paid off at the time of settlement

Anyone, who qualifies, should take this credit even if they are going to put the money into savings account. It is interest free and payable over 15 years.