Patti Phillips
Prudential California Realty
6119 La Granada
Rancho Santa Fe, CA 92067
Direct toll free: 800-680-9133
Cell: 619-507-2100 Office: 858-481-2020

Friday, March 6, 2009

Calling All First Time Home Buyers! Now is the Time to Buy!

Calling All First-Time Home Buyers! Now is the Time to Buy!

Everyone in the country is wondering how Obama's tax stimulus bill afftects them. One of the ways to stimulate the economy is to get first time homebuyers "off the fence." Every time a new home is purchased, numerous vendors end up with business. The new homeowner needs furniture. They often want to decorate and make the home "theirs"- hence new paint, new curtains, new flooring, plants for outside- you name it.

The first time homebuyer credit will help with that!

The number of first time buyers has increased each year since 2006, rising from 36% to 41% last year according to the National Association of Realtors. As home prices have fallen significantly since "the peak" and interest rates are near all time lows, for many, there has never been a better time to purchase a home.

However, with the current economy, many prospective buyers may be reluctant to pull the trigger. Home prices though, on a national level, are down 20% to 30% depending on the resource offering the information. Locally, greater opportunities may exist.

Personally, I have a buyer currently in escrow on a home for $310,000. Three and four years ago we were looking at homes which were priced at $450-475,000. Not a one of them was a place you would want to put your dog in! He gave up. The home he is currently buying is a BEAUTY! 4 bedroom, 2,400 square feet, lovely ammenities, nice neighborhood, beautiful finished backyard...... This home would have sold well into the $600's then. He is thrilled! He never imagined that his first purchase would look like this!

The collapse of the housing market has made it possible for Pavel to own a gorgeous home! Now, on top of this- he will have an $8,000 tax credit when he files his 2009 taxes!

For qualifying first-time home buyers, the American Recovery and Reinvestment Act of 2009 amends the $7,500 tax credit. The credit has now been changed in two significant ways. The first is that the potential amount of the credit has been increased to $8,000.

The second change, which is very beneficial, is that where previously the credit had to be repaid to the IRS over a period of up to 15 years, it now does not as long as the homeowners live in the property for at least 3 years. A tax credit is a direct reduction to an income tax liability. It also allows for any amount that exceeds that liability to be paid directly to you. Example, someone has a tax liability of $4,000. They would then receive a refund of $4,000 if the credit they were eligible for was $8,000.

To read more about how the tax credit could impact you or someone you know, the National Association of Home Builders has constructed a website that goes into all the details of the credit which can be seen at

Meanwhile- if you- or someone you know has been talking about buying, and hasn't- have them give me a call. We can see what they qualify for and help them to achieve the American Dream of home ownership!