With only three months until the new $8,000 first-time homebuyer and the $6,500 existing home buyer federal tax credits are set to expire, time is running out on an opportunity that buyers and sellers may not see again. The tax credit, which was originally created in mid 2008, then expanded in January 2009 and extended again this past November, was only designed to be a short-term incentive to drive more buyers into the housing market.
That’s why many people in Congress are saying that, come April 30, 2010 when the credit expires, “That is it!”
So the clock is ticking. The average real estate transaction, from offer to closing, takes approximately 90 days and that is just about where we are now. To meet the federal deadlines, a buyer must have a binding sales contract in place by April 30, and have the home purchase completed by June 30. To achieve those time frames, buyers need to act almost immediately. Those deadlines also mean that this is also a prime opportunity for sellers. As the April 30 deadline gets ever closer, we are bound to see an influx of home-seekers who are hoping to find a house and make an offer in time to receive the tax credit. So for sellers who have been considering moving up in the market, downsizing, or relocating, now is an opportune time to put their house on the market.
We’re at a unique time in real estate. The tax credit deadline is helping to create the “perfect storm” in the market, due to four key elements – I.I.I.P:
• Inventory: Although there are an overwhelming number of markets where inventory is down, and even with a decline in inventory year over year, there are still plenty of homes on the market for buyers to choose from. • Interest Rates: Mortgage rates remain at near historic
lows. This means higher purchasing power for buyers. • Incentives: The extension and expansion of the homebuyer tax credit is providing benefits to buyers who may have otherwise not been interested in getting into the market. • Prices: Affordability remains at an all time record level nationally and in many of our local markets as well. While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn’t have to be. For those who are in the early phase of the home buying process, there are a few key things that you can do to speed up the process: • Find A Qualified Real Estate Agent. If you do not already have one, work with a real estate agent who will be able to help identify mortgage lenders, home inspectors, lawyers and others who will play a role in helping to get the buying process completed by the April 30 deadline. • Know Before You Go. Free online tools and mobile applications for smart phones are available to help you quickly and conveniently learn about neighborhoods and view homes on the market. Consult with your own tax advisor as to your ability to qualify for the tax credit based upon income levels, length of residency/homeownership and housing prices. Arming yourself with as much knowledge as possible in the beginning is bound to save time in the long-run.
Condominium Status: Active MLS#: 80957799 List Date: 12/21/09 Price: $421,950 Original List Price: $435,000 Location: 333 SANTANA RW #310 City: San Jose, CA 95128 Bedrooms: 1 Bathrooms Full: 1 Bathrooms Half: 1 Approx. Sq. Ft.: 1099 Approx. Lot Size: 435.sf Approx age: 8
With the rental market still strong and Santana Row still the hottest place around this is sure to be a good investment. Recently a 65,000 sqft. office structure has just been completed and ready for occupancy. Once leased, expect business in Santana Row to increase and perhaps demand for the units there will increase as well. If you can get this unit at this price it is a bargain.
1015 Avondale Street, San Jose Bedrooms: 6 Baths: 4 Sqft: 3,700 Sqft. Lot: 11,000 Sqft. Schools: Meyerholz Elementary, Miller Middle, Lynbrook High Sold for: $1,345,000
Immaculate Santa Clara home in Westwood Oaks neighborhood in Santa Clara. This home is updated and well maintained and features refinished hardwood floors, updated bathrooms, new fixtures, and a spacious family room. This home is also situated in the Cupertino School district and features Eisenhower Elementary, Hyde Middle, and Cupertino High.
Street: 380 Hillsdale Avenue City: Santa Clara Bedrooms: 3 Bathrooms: 2 Price: $849,000 Size: 1,689 Sqft. Lot: 6,000 Sqft. Schools: Cupertino Schools : Eisenhower, Hyde, Cupertino High Virtual Tour: http://www.380Hillsdale.com Property Flyer: 380 Hillsdale Ave. Flyer by Vinicius Brasil
Posted by vbrasil on Saturday, September 19th, 2009
Just closed on this newly built home in Mountain View. This home featured a large bright open great room with built-in entertainment center. Built just 3 years ago the home also featured maple hardwood floors, cherrywood cabinetry, and granite countertops. A great deal for buyers looking for a newer home in Mountain View.
Street: 1892 San Luis Avenue City: Mountain View Bedrooms: 3 Bathrooms: 2.5 Sale Price: $865,000 Size: 1,960 Sqft. Lot: 5000 Sqft.
Posted by vbrasil on Saturday, September 19th, 2009
This is a great opportunity to buy a wonderful home in the desirable Westwood Oaks neighborhood of Santa Clara. This home features 3 bedrooms 2 baths, a spacious family room, 2 car garage, large backyard, and Cupertino Schools. The home will be on the market in 2 weeks.
Street: 380 Hillsdale Ave City: Santa Clara Bedrooms: 3 Bathrooms: 2 Price: $850,000 Size: 1,689 Sqft. Lot: 6000 Sqft. Schools: Cupertino Schools: Eisenhower Elementary, Hyde Middle, and Cupertino High
This is truly a rare opportunity to own a well built home in a great Mountain View neighborhood. This development was started over 50 years ago, all sold as lots and custom homes were built here. This is a unique property, featuring two front doors, one main formal entrance and an entrance off the kitchen. The kitchen, living room and bedrooms are all spacious, there is an enclosed patio, and two bathrooms. The neighborhood borders Los Altos and shares Los Altos schools: Springer Elementary, Blach Middle and Los Altos High School. The area is also very convenient and close to shopping, blockbuster video, restaurants, a gas station, downtown Mountain View, and downtown Los Altos.
Address: 1598 Lloyd Way, Mountain View List Price: $899,000 Beds: 3 Baths: 2 Living Area: 1700 Sqft. Lot Area: 5000 Sqft.
I just closed the sale on this Santa Clara home this past week. My clients have two children and their home was set up to be more conducive to accommodating the children and being comfortable than showing the potential beauty of the home. Like most sellers they wanted to sell for the highest price the market would produce.
They took my advice and were willing to do some important updates to the home such as granite counter tops in the kitchen and bathrooms. The existing carpet was fairly new and they went with neutral and updated paint colors. The home was built 20 years ago, and features a very functional floor plan with high ceilings, a spacious master suite and an open kitchen layout to the family room. All we needed to do was de-clutter the space and bring in some suitable furniture to make the home feel more luxurious and appealing through staging.
Meeting with my clients I presented my marketing plan and the range of prices that their home could receive in the current market. To achieve a price in the top range, I recommended that we do some simple updates like refinishing the hardwood floors, cleaning up the landscaping, and staging the home. They agreed and we went to work. I coordinated with the gardener, the handyman, and rented some furniture and personally made some accents to the home with artwork and accessories to give it a professionally staged look while still making it comfortable for the owners.
In the end we were able to sell the home for full price. Take a look at the slideshow to get an idea of the complete transformation.
