$8,000 First Time Homebuyers Tax Credit

There is still time to take advantage of the First Time Homebuyers Tax Credit. The credit is up to 10% of the purchase price with the maximum amount being $8,000.00. That means if you owe less than $8,000 in income taxes for 2009 you will receive a rebate for the difference. For example, if you owe $5,000 in income taxes you will receive a check back from the IRS in the amount of $3,000.00. To qualify you must earn $75,000 or less as an individual or a married couple $150,000 or less per year. If you have not owned a home in less than three years you are still considered a first time homebuyer. You must close by November 31st of 2009 to qualify. If you are considering purchasing a home that has been foreclosed or is an estate sale you should start the process now. These types of transactions can take much longer than a traditional sale. Interest rates on are on the rise, but it is still a buyers market!! Take advantage now while the incentives are there!

Which way is the market moving?

Is the real estate market really picking up or are we heading toward another crash? Obviously it depends on which news channel or newspaper you are reading at the time, but the news is conflicting. It appears that the homeowners that were saved by the mortgage modifications may be in danger of facing foreclosure again. Interest rates have risen and the extensions given to these home owners are running out. We already have 10 months of inventory on the market which is not considered to be stable. It is entirely possible that we could see another round of foreclosures in the near future. On the other hand, the Nashville market is up 22% over July 2008, a sign that we may actually have hit bottom and are headed back up.

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