Home Buyers Tax Credit Could Be Quite Stimulating

While attending the Certified Residential Specialist (CRS) annual conference this past weekend along with a few hundred of America’s very best residential realtors, the biggest buzz surrounded the apparently imminent passage of the Stimulus Bill. Part of that bill will focus on the housing market and there is a VERY BIG plum for home buyers—specifically, a $15,0000 credit (or 10% of the home’s price, whichever is less) for those who buy within 1-year of passage. That is a dollar for dollar credit. Who knows if it will survive, but if it does, it will help spur buyers to buy.

Sen. Johnny Isakson (R, Georgia), who is a former real estate broker, came up with the plan. Here are the points that matter:

(1)   Applies to primary residences only

(2)   Not limited to first time home buyers (like the $7,500 program currently in place)

(3)   No income limitations (like the $7,500 program currently in place)

(4)   Not subject to recapture in future tax years (like the $7,500 program currently in place)

(5)   Will go into effect upon signing by President Obama, sunsetting the $7,500 plan immediately 

(6)   Must live in the house (or condo, etc., but no investment properties or multi-units) for two years

(7)   Perhaps most importantly, the credit will apply to your 2008 taxes, even if you close in 2009. 

Of course, this could all change during negotiations in Congress–fingers crossed.  

If you would like updates or if you would like a list of "deals" available right now, e-mail me: [email protected]. Or call Kyle at (415) 350-9440.