As you probably well know by now, the tax credits for first time home buyers have recently been extended and expanded – creating amazing opportunities for you to help prospective and recent first time buyers reap the benefits of buying now, especially since the market is in their favor. Here are a few ways you can capitalize on this situation:
- Go through your sphere of influence (list of contacts) and reach out to everyone who qualifies as a first time buyer and encourage them to contact you. Consider sending a few of your favorite listings from different areas of your island, as well as in different price ranges to give them an idea of what’s out there.
- Closed in the past five to eight years with clients who qualify for the $6,500 credit? Now is a perfect time to get back in touch, offer to answer any questions they may have about how to go about taking advantage of this credit. Your continued assistance will go a long way, most of all to keep you top of mind as THE go-to agent when they are ready to buy or sell in the future.
- Educate your clients. Send them to AlohaLiving.com where we have posted the following information for buyers to reference.
Happy selling!
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First-Time Buyers Have Until April 2010 for $8,000 Tax Credit
If you can afford to purchase a home, it’s always the right time to buy — regardless of the market. Now, however, home buyers actually have extra reason to consider home ownership: lower prices, anxious sellers, reasonable interest rates and best of all, the wildly successful $8,000 tax credit for first-time homebuyers has recently been extended, and the program has been expanded to include existing homeowners. In addition, income limits and credit opportunities have been increased.
With the $8,000 tax credit for new buyers, and up to $6,500 available for current homeowners who have lived in their primary residence for at least five of the past eight years, there is something for everyone. But act now — these amazing opportunities are only good until April 30, 2010.
Homebuyer Tax Credits in Review
The tax credit creates a near-perfect opportunity for first-time home buyers and existing first home owners. Who qualifies? How does it work? Here are a few frequently asked questions and helpful sites with more information from the National Association of Home Builders:
* A “first time home buyer” is any person who has not owned a principal residence in the past 3 years prior to the purchase.
* To qualify the sale of the home must be purchased by April 30th, 2010 and must close by June 30th, 2010.
* In Hawaii, it will typically take 60 days to close a sale, if all goes right. Make sure to give yourself a good buffer, just in case things come up to push it back.
* The tax credit can be applied to your 2008 or 2009 tax returns.
* Any type of home qualifies for this program, even newly built ones!
The newly passed legislation (in effect Dec. 1, 2009) brings with it a few additional items of note:
* If you are a qualified first time home buyer who is currently in the process of purchasing, you do not need to worry about the previous Nov. 30th deadline.
* Buyers will have to purchase their home by April 30th, 2010, but will have an additional two months following that (until June 30th, 2010) to close.
* Existing homeowners who have lived in their primary residence for at least five of the prior eight years and whose homes are worth $800,000 or less are now eligible for up to a $6,500 credit.
* The income limit for qualifying buyers has also been increased. Limits for a single purchaser have gone from $75,000 to $125,000 and for couples, from $125,000 to $225,000. Don’t fit into these two groups? Credits are also available on a diminishing basis for those above these particular income limits.
For more in-depth information about the first-time buyer credits available, visit this NAHB sponsored site.
To begin your property search and/or find a real estate professional who can help determine what price range you qualify for CLICK HERE.
For starters, you will find recent presentations provided by Paul Brewbaker, perhaps Hawaii’s most renown and respected economist. His extensive background in economic research and financial risk analytics powered a 25 year career with Bank of Hawaii, where he started in the International Banking Division as a student in 1981, and served most recently as Chief Economist. He has also played prominent roles in a number of key organizations, including the Hawaii Council on Revenues, the Hawaii and American Economic Associations, and the National Association for Business Economics.
Hawaii Information Service would like to congratulate the many members that were recognized by Hawaii Business magazine in its sixth annual “Top 100 Realtors.”
