Movin’ on Up!
First Time Buyers, The Art of Selling
October 29th, 2009
It looks increasingly likely that the homebuyer tax credit will be extended and expanded to include a $6500 credit for “move up buyers” who earn less than $125,000 a year and have lived in their homes at least 5 years.
Thats great news for those of you that fit the move up buyer profile. Not only would this give you an extra $6500 when buying a new home but the people shopping for the home you will be selling would have an extra $8000 to spend. You win at both ends! Need more good news? Your monthly payment could be very close, possibly even lower in some instances. If you have lived in your home over 5 years its very likely that your current mortgage interest rate is higher than what you would stand to pay on your next purchase. Check out this Historic Mortgage Rate Chart to see just how low todays rates are compared to those in years past.
You would also stand to benefit from our current market conditions. The first-time homebuyer market remains hot with lot’s of competition for good houses. In our market sales of homes priced at less than $250k are far and away the most active. Because of this competition the sales prices are boosted relative to the market as a whole. Not necessarily true with the price range of homes you would be shopping for as a move up buyer. Thats a slower market and because of this you have much more leverage to get a super deal on your next home.
It remains to be seen if this “move up” tax credit will have a boosting effect on home sales in the $250k to $300k range but certainly possible. For now those who fit this profile stand to find themselves in an enviable position.
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