HomeReport
Real Estate & Finance News That Affects Your Home                                                     December 2008 - Page 4

ON THE MONEY Target Your Sale To First-Time Buyers  Two million first-time home buyers nationwide are expected to take advantage of the income-tax credit made available by the Housing and Economic Recovery Act of 2008. The legislation offers a tax credit of up to $7,500 for qualified first-time buyers of homes purchased (closed on or settled) on or after April 9, 2008 and before July 1, 2009. (More like an interest-free loan, the credit must be repaid to the government over a 15-year period in equal installments, with the first payment due two years after the home purchase or in full when the home is sold and there is sufficient gain.) Not only are more first-time buyers expected to move into the housing market in coming months, they will arrive without the need to sell a home, which simplifies and speeds the transaction for everyone. As a home seller, you may be able to speed your sale by structuring incentives and contract provisions to attract this unencumbered group. Here are a few ways you can help first-time buyers purchase your home: Reduce the cash crunch. More than most buyers, first-timers often struggle to gather enough cash for their down payment and closing costs. As a seller, you can help reduce the amount of cash buyers need by offering to pay some or all of their closing costs. Offer a warranty. For most first-time buyers, purchasing a home is the largest investment they’ve ever made—a move that can be very intimidating. Offering a home warranty (around $300) that covers major system repairs will go a long way toward bolstering a new buyer’s peace of mind in purchasing your home. Leave appliances and yard equipment. Buyers who have been renters may not have their own washer and dryer, refrigerator, lawn mower, etc. Conveying yours as part of the sale might be just the thing to heighten buyers’ interest in your home. Give A Gift For 2009! Do you know someone who has been priced out of the housing market but wants to own their own home? Pass this newsletter along to them when you've finished reading it. It could make all the difference for them in 2009!