Madison Seller’s: LIST YOUR HOME NOW!

It’s the time of the year that many Madison area home seller’s either take their homes on the market or put off listing their homes until Spring. For anyone in this position please consider the following reasons why you may be making a big mistake by waiting.

1. The Tax Credit Extension was specifically created to stimulate the fall and spring real estate market. The incentives offered are creating a vigorous real estate market. It would be silly to miss out on the opportunity. For details on the Tax Credit Extension, CLICK HERE.
   
2. The Extension has created a secondary market that has been somewhat stagnant the past year+. For the first time in a long time we are starting to see sales in higher priced property. If your home was listed and expired, you may want to give it another try with a strong Realtor.
   
3. Interest rates are still very low. Who knows what will happen after the April 30^th deadline to the Tax Extension.
   
4. People who look for a home during the Holidays are very serious buyers—who else would be out there looking at this time of year?
   
5. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!
   
6. January is traditionally the month for employees to begin new jobs. Since transferees can’t wait until spring to buy, you must be on the market now to capture that market.
   
7. Houses show even better when they’re decorated for the Holidays.
   
8. Since the supply of listings will dramatically increase in January (Spring Sellers), there will be less demand for your particular home. Less demand means less money for you.
   
9. Buyers are more emotional during the Holidays, so they are more likely to pay your price.
   
10. You can still be on the market and have the option to restrict showings during the actual Holidays.
    
11. The Holidays provide late winter buyers with vacation time to “window-shop” listings online—you need to be there when they are looking.
    
12. Why not? Worst case scenario is that you don’t accept an offer during the holidays. Best case is that you find a ready, willing buyer that offers you a price you can’t refuse!
    

Curious what your home’s current sale price value is? CLICK HERE for an instant calculation.

If your home were to sell, do you have your dream home picked out? CLICK HERE to view all real estate currently for sale.

 

The Extended Tax Credit

 

TAX CREDIT 2.0

Understanding the Extended Home Buyer Tax Credit

 

 

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

 

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
• To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

 

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000. The maximum allowable credit for current homeowners is $6,500.

 

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

• The price of the home.
  • Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
• The buyer’s income.
  • Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

 

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

 

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

 

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

 

ARE YOU A GOOD “MOVE UP BUYER” CANDIDATE?

 

 

Madison’s “Move Up Buyers” benefit in several ways.

• The $6,500 tax credit may be the difference maker for you to take advantage of a move up. To better understand how this tax credit works, CLICK HERE for information provided by the IRS.
• Interest rates are very low. I would be happy to connect you with a reliable lender offering the best rates and mortgage options.
• Although a seller may take a loss on the home they sell, the gain received is likely to be much greater. The illustration above is a great example.
• Many of the “Move Up Buyers” need to sell a home that is priced in the hottest price ranges for Dane County real estate sales. In fact, properly priced homes in good condition continue to sell quickly. The initial $8,000 tax credit created lots of activity and sales for homes priced under $300,000.
• On the flip side, the home purchase is in the price range that is currently suffering the most. In Dane County the following are the hardest hit price points are $400,000+. In September, the following stagnant sales occurred:

 

 

 

 

 

 

In fact, Dane County currently has over 65 months of “inventory” for homes in the luxury home price range. In the past year, only 13 homes have sold over $800,000. What a great time to buy your dream house at the bottom, before the market rebounds.

 

So, are you a good candidate to take advantage of the tax credit?

Visit our website www.KWMadisonWest.com to:

• Calculate and research what your home would sell for in today’s real estate market. You will receive two instant estimates once you enter your homes information.
• To start dream shopping for your “Move Up” dream home. Once you log in you can save all of your favorite properties and get acquainted with the market from the convenience and privacy of your computer without having multiple Realtors contacting you. This is a service I provide to all of my friends and clients. Feel free to pass this on to anyone you know that would appreciate it.

 

 

Jessica Fox, CEO

P: 608-662-9626

W: www.KWMadisonWest.com

B: www.ThrivingAgent.Wordpress.com

E: jessicafox@kw.com

REAL TRENDS NAMES KELLER WILLIAMS #1