Monday, November 9, 2009

Extension of Tax Credit

With great expectations the house and senate passed the tax credit. This is now up to an $8000.00 dollar credit ($5000.00 less than the old one) for first time buyers with higher income limits. It also passed a credit of up to $6500.00 for the move up buyer. You have to have lived in your present home for 5 years within the last 8 years and be under contract for either credits by April 30th and transfer by June 30 2010. Did this cause more activity in the Real Estate market? Not yet! I am hoping that there is a delayed response to this. I know I plan to put my house up in February. I practice Real Estate in Ohio. It is November and while we have had incredible sunny and warm weather the market still feels kind of dormant. Here in Ohio from November to March traditionally the market slows down. With this new tax incentive we may have a better sales season this winter. As long as the weather holds out I have hope. When the snow gets going and there is a foot of snow out there motivation to look at real estate become pretty low. You can't see what you are buying for one thing. It seems that every winter I have a buyer who drags me out to look through all sorts of properties and they never buy. I have had these people call right after blizzards! Usually they are going through a life change like divorce,death of a loved one, bad break up or adjusting to an empty nest. No matter how long I have been in this business I still get had by one of these at least once a year. The point is We have a great new tax incentive right smack in the worst season for my location. Hope it has the same energy as the last one. I guess I will buy some UGGS (those ugly warm boots) this year and watch out for the emotional buyer who just really needs attention and not a house.