Category Archives: Tax credit

Life for buyers after the federal homebuyer tax incentives

Posted on November 8, 2010 by | Leave a comment

By: Collin Ellingson

The federal homebuyer tax incentives clearly had a positive impact on the market, as it’s been estimated that one in five homebuyers who used the tax credit wouldn’t have bought a home without it, and sales of new and existing homes surged as homebuyers rushed to beat the deadline.  The incentives created interest in the real estate market and prompted consumers in all price points to consider their buying options.

So what is the status for buyers who weren’t able to submit contracts before the April 30 federal tax incentives deadline?  Many are finding that they are faring as good as, if not better, than those who took advantage of the $8,000 tax credit.  This is true for a few different reasons:

  • Since the deadline, many developers have worked to continue the buying momentum by offering incentives of their own, such as paying a portion of closing costs or HOA dues and more.
  • And, as the number of contracts and building permits wanes, sellers have felt the pressure to lower their prices, often by 10 to 20%, in order to attract buyers.
  • Coldwell Banker worked to make deals even more enticing by awarding buyers up to $8,000 from participating sellers through its Buyer Bonus Program.
  • And, interest rates have continued to hover around record-breaking lows, meaning that over the life of a loan, a homeowner could easily save more than the value of the credit.

So, while the original buying motivation of many consumers was the tax credit, buyers are continuing to move forward with contracts because they recognize the overall value of homes currently on the market – the value pertaining to final sales price, extra incentives and lending terms, as well as the quality construction of the homes and the lifestyles that they provide.

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Posted in Tax credit

We have Atlanta covered

Posted on June 22, 2010 by | Leave a comment

By: Christine Macrenaris

Even though the Federal Housing Tax Credit program is a distant memory, there are still many opportunities for buyers to take advantage of in this marketplace.  There are several new construction town home and condominium projects with a handful of homes remaining in their inventory, and developers are offering amazing deals in order to closeout these projects.

For instance, Grinnell, located in Inman Park, has a 2-bedroom/2-bath home discounted by $69,000.  Just up the road, LaVista Walk has just 2 remaining townhomes with amazing price discounts.  Kirkwood Station, located in the historic Kirkwood area, has only a few townhomes remaining that start from $249,900.  For a buyer who wants to be in the heart of Decatur, The Artisan has 4 remaining 3-bedroom condos with close out pricing up to $160,000 off original pricing.  And the deals are not limited to inside the perimeter area. Highgate at Sandy Springs have 3-bedroom homes available starting from $119,900!

Now is the time to take advantage of developers who are in the position to close out their remaining inventory and offer amazing values, as these prices may not last. This week’s Atlanta Journal-Constitution article, “Home prices, sales continue to rise,” reported that both the median sale price and the number of homes sold increased in Atlanta in May from the month before and the year before.

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Posted in Tax credit, Value of a home

What Does the Future Hold after the Tax Credit?

Posted on May 4, 2010 by | Leave a comment

By: Jessica Weston

Now that the April 30th tax credit deadline has passed, many of us real estate professionals are anxious to see what the immediate future holds.  Will buyers continue to be excited about the incentives offered by homeownership or will they wait to see what the government will do next? 

Fortunately, the tax credit didn’t seem to sway many buyers one way or the other, especially not like it did the first time in November of 2009.  The main buying decision this season was price.  And developers and builders have realized this.  Now, more than ever, pricing is competitive and buyers are eager to take advantage of these steals.  It’s cliché, but with interest rates threatening to rise, buyers who want to take advantage of this “buyer’s market” are eager to do so right now! 

 Many buyers believe the market is stabilizing and their confidence in their buying decision is growing.  According to a Prudential Real Estate and Relocation Services survey found in an article on Yahoo News , consumers are “optimistic about real estate values, with 46% expecting prices in their area to increase over the next year”.  This same survey showed that among the list of buyers concerns, the tax credits ranked the lowest, with rising mortgage interest rates, unemployment, and stricter lending guidelines being the highest. 

There is no doubt the tax credit helped to stimulate the real estate market, but we are hopeful that consumer confidence in real estate continues to rise and that this consumer confidence in the economy as a whole will prove a stable real estate market is near.  Once that stable market has proven to be here with employment on the rise, affordable housing prices, and rising interest rates, we hope to see a boom in the sales for the summer 2010.  I don’t have a crystal ball, but it seems we’re moving in the right direction!

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Posted in Tax credit, Value of a home

What will tomorrow bring, post homebuyer tax credits?

Posted on April 30, 2010 by | Leave a comment

By: Christine Macrenaris

April 30th … Tax credit deadline. I am not writing today with answers or insights, I have questions.

The big question on my mind:  What will traffic and sales look like post April 30th?  At 3 sites (White Provision, 1010 Midtown and Villa Sonoma), we’ve written more than 35 contracts in the frenzy of first time homebuyers getting in under the deadline. These contracts were written in a 20-day period since April 10th. The good news is that 35 closings will take place before the June 30th deadline!

The real estate market has reinvented itself multiple times over the past 18months, and I can’t wait to see what the new form takes on starting tomorrow!  Per Brad Horner’s blog post today, recent news indicates that positive changes are coming.

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Posted in Tax credit, Uncategorized

Friday Five: Homebuyer tax credit

Posted on March 26, 2010 by | Leave a comment
By: Brad Horner
Homebuyers only have about one month left to take advantage of the homebuyer tax credit…and considering it takes approximately one month to close on a home, the time to submit a contract is NOW!
Below are the top five things to remember about this unique opportunity:
  1. An $8,000 tax credit is available for first-time homebuyers (defined as someone who has not owned a principal residence during the three-year period prior to the purchase) and a $6,500 tax credit is available to move-up/repeat homebuyers (buyers who have owned and lived in their previous homes for 5 consecutive years out of the last 8 years).
  2. The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
  3. Home contracts must be signed by April 30, 2010 and the purchase must be completed by June 30, 2010 in order to qualify.
  4. The tax credit applies only to homes priced at $800,000 or less.
  5. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
For more information about the homebuyer tax credit, click here.

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Posted in Friday Five, Tax credit

Whoa! Did Clark Howard really say that?

Posted on March 8, 2010 by | Leave a comment

By: Meril Missbach

While driving in the ‘burbs a couple of weeks ago listening to the radio, I could swear I heard Clark Howard advise his listeners to NOT purchase a home until AFTER the current tax credit opportunity expires.  I almost wrecked my car!  Did he really say that?

He went on to say you might get an even lower price if you wait until after April 30 to purchase a home because then “there will be no buyers.”   I couldn’t believe my ears.  What are you thinking, Clark!  You’re usually “my man,” but I just don’t agree with you on this.

Here’s my take on the situation:

#1  People will still have babies and life-changing experiences, causing them to purchase homes even after the tax credit opportunity expires. So there will be buyers.

Yes, I anticipate the sales pace will be slower after the tax credit expires because there are a lot of smart people out there.  They aren’t going to leave money on the table by not taking advantage of that tax credit if they are eligible.  They are going to get their dream-home under contract by April 30 because it DOES NOT seem likely that the tax credit will be extended again.

So, ladies and gentlemen, start your engines.  Get out there and get shopping.  Prices are low, interest rates are low, and there is ample inventory from which to choose.  There’s a house out there for you.

#2  Yes, it is a buyer’s market, but this market is also like an estate sale. The best things will sell first.

So, if I heard you correctly, Clark, and you suggest home buyers wait until after April 30  to purchase a home,  then I hope your listeners are prepared to select from “picked over” goods.  If you’ve ever been to an estate sale on the last day when everything is 50% off, you know what I mean.  The good stuff is gone, and you’re picking from Aunt Ella’s gargoyles.  Sure, the price is cheaper, but is there anything there that you even want to buy?

You home buyers out there….. I encourage you to be financially savvy, but buy something you love, and think about these things:

  • Is this where you want to come home to at the end of the day?
  • Does being here make you happy?
  • Regardless of what you paid for it, when you are ready to move again, how easy
    will it be for you to sell this home in a more normalized market?

Your house is a big, big investment, but it’s also so much more.  It’s your happy place; it’s your refuge;  it’s who you are.

Well, Clark, if I heard you correctly the other day, I just don’t agree with you.  If I have misquoted you because I misunderstood something in the broadcast, then my apologies.  aIn fact, it would almost be a relief.  I just can’t believe you encouraged home buyers to leave the tax credit dollars on the table.  They paid it in, and now they have a short period of time in which they can get some of it back out.  I say go for it!

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Posted in Tax credit

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