The NEW Tax Credit - $6500!

A lot of people are excited about the extension of the $8000 first time home buyers tax credit until April 30 2010. As they should be!! Free Money from the Fed is Good!! But what about the additional tax credit----the $6500 for existing home owners.

"WOW--I can get $6500 for buying a new home?? Finally---something for me... I've been wanting to upgrade for some time now and this sounds like the best time to do it!" You are CORRECT! Now is the best time to upgrade. Mortgage rates are very low, Inventory of those "upgrade" properties is very high, and the deals are Flying form the sellers of those properties - ensuring that you can find the home of your dreams and the best price in DECADES!!! And the Fed is gonna give you $6500 for doing this. Yeah---I'd Say WOW too!

One Major consideration-----to buy this new home, you must SELL EXISTING HOME FIRST! You cant go and buy a second home and qualify for the Tax Credit. Today's market in Jackson TN area for a traditional 3 bedroom home is about 110 days on the market. That means if you listed your home Dec 1, it would likely close March 20th, 2010. That would leave you only 40 days to find your new home, negotiate the deal, and get into a binding contract by April 30 2010. 40 DAYS!!! That's not much time. And that's IF you get it listed by December 1, and IF it sells as the Average is running. And don't forget about contract that fall through because of lending issues. You may sell then not make it to close because your buyer lost his/her funding.

My point-----This is a great opportunity! BUT----You Cant Wait. You MUST ACT NOW to help you navigate through this process so you can obtain your next dream home in time to get the $6500 Tax Credit.

Call me--- I can help(call NOW)!

UPDATED 11/25/09:

I have been enlightened by a friend since I wrote this blog. It seems that you DO NOT have to sell your current property to buy a new one and qualify for the $6500. This changes everything!!!

See Below:

Pasted below, but found at http://www.irs.gov/newsroom/article/0,,id=206293,00.html

Q: I’m already a homeowner. If I buy a replacement home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?

A: If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)