Details about the 2009 Economic Stimulus Package’s real estate tax credit

After plenty of rumors and speculation, the details of the government’s economic stimulus package have finally been released.  I have read the real estate portion, and would like to give you a summary. There is now an $8,000 tax credit (or 10% of the sale price, whichever is less) for first-time homebuyers.  You might have heard about the $7,500 tax credit, which is basically an interest-free loan paid back over 15 years at $500 per year.  That credit still applies if you purchased your home between April 9 and December 31, 2008. This new $8,000 tax credit is for home purchases between January 1, and December 1, 2009, and you do not have to pay any of it back (yourself, individually… all of us ultimately will have to pay back the entire $787B… the housing portion is $6.638B).

To qualify for the $8,000 credit, you must meet ALL of the following criteria: Continue reading Details about the 2009 Economic Stimulus Package’s real estate tax credit

It’s a buyer’s market. Trade up!

You have probably heard the news about the housing slump, and the “buyer’s market” that we are currently experiencing. A buyer’s market occurs when supply and demand factors shift to cause a drop in price. Due to the increased supply of homes from excess building and foreclosures, with demand remaining constant, prices of homes drop. The Champaign-Urbana market does not experience the large fluctuations that other areas do, but it is not completely immune. This buyer’s market is a great time to buy. Although this seems to be bad news if you are wanting to sell, it is really not bad news if you have been thinking about purchasing a larger home.
Continue reading It’s a buyer’s market. Trade up!