Your Real Estate Expert Serving Northern Virginia

Tax Credit Expands Beyond First-Time Buyers
Coldwell Banker Residential Brokerage

The size and scope of the newly-extended and expanded federal tax credit is simply unprecedented. It benefits first time buyers, past homeowners and current homeowners.

First time homebuyers have an extended window to enjoy an $8,000 tax credit on the purchase of their first home. Past homeowners who haven't owned a home in at least three years are also considered first time homebuyers under this legislation. They are eligible for the same $8,000 tax credit on their purchase. This isn't just a deduction from income, but a full credit from the government.

Current homeowners who have lived in their current home (or previous home if they are currently renters) for at least five years of the past eight years can also take advantage of a new $6,500 tax credit. The decision to downsize, move up to a desired lifestyle, or simply move over in the same lifestyle to a new neighborhood now has an extraordinary added benefit.

With this great news, time is still of the essence. The average home buying transaction takes about 60 days. Therefore, to comfortably meet the April 30th deadline to be under contract and close by June 30th, buyers should be shopping now. As you will see in the graphs, most areas are still experiencing high inventory, but homes that are properly priced are selling. Current homeowners looking to move up, downsize or move over should put their home on the market right away and attractively position it to catch these active buyers.

If you have specific questions about this would affect your taxes, check with your tax accountant or attorney. If you or someone you know would like to discuss how to take advantage of this short-term opportunity in purchasing a primary residence, I have the expertise to assist.