How the $8000 Tax Credit Helps Home Sellers
This morning, I had a conversation with a good friend of mine who was looking to buy a larger home for his family. Quickly, the topic turned his condo as he asked the age old question, "Should I sell it now or rent?" Lately, many have asked this question, and while there are many factors that affect it, one that most sellers aren't considering is the $8000 Tax Credit.
How the Tax Credit Affects the Price of Your Home
Even though the tax credit is for Home Buyers, it is creating a very real incentive to buy a home, one that may not be there after November 30, 2009. Many buyers are responding by making the move, creating a declining inventory of homes and numerous multiple offer situations. This has helped to slow down the price decline, creating an artificial bottom.
What if the Tax Credit isn't renewed?
If the tax credit isn't renewed, the urgency is lost, and with it, Buyer demand for homes. Additionally, without the free $8000 from the government, homes will become less affordable to Buyers, resulting in a continued decline until greater affordability kicks in. However, with a lack of urgency or any incentive, slow recovery is the best we can hope for.
What if the Tax Credit is renewed?
This is certainly a much better scenario for both Buyers and Sellers. However, keep in mind that if its extended for another year, many Buyers will procrastinate for 9 months, and suddenly realize, "Nuts! I've only got 3 months to get that credit!" Granted, there will be renewed urgency towards the end, but in the interim, things will probably be slow, and if the number of homes builds up again, prices will decline.
The bottom line is that Today's Tax Credit will help you sell your home, as Buyers are urgently seeking theirs. If you'd like to discuss whether now is a good time to sell your home, or if you're interested in a free market analysis on your home, feel free to contact me directly at 609-865-5877 or email me at cooper@zastko.com.
Now for this week's Foreclosures & Short Sales...
How the Tax Credit Affects the Price of Your Home
Even though the tax credit is for Home Buyers, it is creating a very real incentive to buy a home, one that may not be there after November 30, 2009. Many buyers are responding by making the move, creating a declining inventory of homes and numerous multiple offer situations. This has helped to slow down the price decline, creating an artificial bottom.
What if the Tax Credit isn't renewed?
If the tax credit isn't renewed, the urgency is lost, and with it, Buyer demand for homes. Additionally, without the free $8000 from the government, homes will become less affordable to Buyers, resulting in a continued decline until greater affordability kicks in. However, with a lack of urgency or any incentive, slow recovery is the best we can hope for.
What if the Tax Credit is renewed?
This is certainly a much better scenario for both Buyers and Sellers. However, keep in mind that if its extended for another year, many Buyers will procrastinate for 9 months, and suddenly realize, "Nuts! I've only got 3 months to get that credit!" Granted, there will be renewed urgency towards the end, but in the interim, things will probably be slow, and if the number of homes builds up again, prices will decline.
The bottom line is that Today's Tax Credit will help you sell your home, as Buyers are urgently seeking theirs. If you'd like to discuss whether now is a good time to sell your home, or if you're interested in a free market analysis on your home, feel free to contact me directly at 609-865-5877 or email me at cooper@zastko.com.
Now for this week's Foreclosures & Short Sales...
Carteret
Edison
Middlesex
New Brunswick
Perth Amboy
Piscataway
Sayreville
Spotswood
Woodbridge Area
TOWNHOMES - Click Here
MULTI-FAMILY - Click Here
No comments:
Post a Comment