Wednesday, December 16 2009
As we mentioned last month, the Home Buyer Tax Credit has been extended and expanded. For first time buyers the extension is straightforward, you must have an accepted contract no later than April 30, and close the transaction no later than June 30, 2010. In order to take advantage of the existing buyer credit the owner must have used the property as their principal residence for 5 of the past 8 years. The owner must purchase the new home under the same deadlines as a first time buyer.
Although this sounds simple enough, let’s talk about realistic timing to take advantage of this unique and probably one time only opportunity to receive a $6,500 gift from Uncle Sam. Most buyers prefer to sell their existing home before purchasing a new home. In our area during November the average days on market for houses that sold were 107 days (more on this later). It is not unusual, and is frequently helpful, for sellers to stage and spruce up their house before putting it on the market. These steps can maximize the sales price and reduce marketing time. The typical buyer starts their home search 10 weeks before purchasing a home. If you back up 107 days from April 30 and factor in some time for looking for a new home, it is easy to see that the buyers with the best chance of receiving their $6,500 gift will be those that start the process immediately.
The next few weeks will be an excellent time to list a house for several reasons. First there are over 300 fewer houses on the market today than there were last November. In addition 52 more homes sold this November than last November. Finally the list price to sales price ratio was a full percentage point higher last month than it was a year ago. The keys to maximizing your return on your house are to have it in great condition and price it right. Keep in mind the average days on market for homes that sold last month was 107 days. By comparison, houses currently listed have been on the market 162 days. From this one can conclude that houses priced right are selling. This is probably the only year we can help get you a $6,500 Christmas gift. Give us a call at 812-499-9234 or email us at Rolando@TheTrentiniTeam.com