There is a lot of speculation about how, when and who the "NEW" Homebuyer Tax Credit affects. We should be very clear in our information and learn how to effectively make the most of the opportunity. If you are serious about building your database and business. It is time to get your butts up and do something about it.
The 90/10 Rule will apply!
- What side of that equation will you be?
- How to make the most of this?
Well, If I'm a REALTOR and I'm not (but I am going to do this anyway). I would call the best marketing rep from a title company or Loan Officer (hopefully me) and request a list of homeowners that purchased in 2004 or before. Then I am going to send them flyers, newsletters, bulletin, etc to tell them that they can upgrade and/or keep their property as an investment or not and move to a better home while obtaining $6,500 as a tax credit. I am also going to get on the internet and work out a massive Social Media campaign to get the buyers (and likley sellers) calling me!!
Don't take my advice, I am just speaking out loud of what I am going to do!
What you need to know!
The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.
For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.
The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.