Why Now Is a Good Time To Sell

You may have heard that now is a good time to buy a home.   There are a number of reasons for that, among them: near historic low interest rates and tax credits for first-time and move-up buyers.  Those are among the same reasons it is a good time to sell.

The tax credits, $8,000 for first-time buyers and $6,500 for move-up buyers, and low interest rates are compelling many people to move into the housing market.  In fact, estimates are that fifty percent of all home sales in 2010 will be initiated prior to May (the tax credits expire April 30th).

Whats more, housing inventories are currently low.  In some parts of San Diego County there is fewer than two months supply of homes for sale.  For those considering selling their homes, that means competition from willing, ready and able buyers. 

Among the biggest winners over the next several months: those selling a house and moving up into a bigger home.  They should be able to sell their homes quickly and for a good price in today's market and at the same time may qualify for $6,500 in tax credits from the federal government.

Tax Credit Not Just For First Time Buyers

You may have heard of the federal government's First Time Buyer tax credit, but did you know that the government also has a tax credit for current homeowners looking to buy another home?  "Move-up" buyers can qualify for a $6,500 tax credit when they buy a new home (the First Time Credit is $8,000).

Here are some of the specifics about the move-up buyer credit:

1. To qualify a home owner must have occupied the same principal residence for five of the last eight years consecutively.
2. Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them. Although, buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
3. The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
4. A buyer who earns no taxable income or doesn’t owe any federal income tax can still qualify for the tax credit and file a tax return just to claim it.

To qualify for either the first time buyer or the move-up buyer tax credit one bust be in escrow by April 30th and close June 30th.