Los Angeles Homes - Receive $8,000 Home-buyer Tax Credit
If you've even remotely considered purchasing a Los Angeles home and receiving the $8,000 Home-Buyer Tax Credit, you may want to start looking for a home immediately. The Los Angeles real estate market inventory of homes has been dropping steadily, down 57% since last year (according to Los Angeles MLS data). What this means is there is more home buying competition out there and a higher rate of real estate home bidding going on, due to a lower inventory of homes on the market. If you wait until the end of the tax-credit timeframe period, like a lot of other home buyers, the competition for desirable homes will heighten considerably.
Imagine the competition in April, when your sales contract must be signed. There may be a frenzy of bidding activity on the desirably priced homes that you like. The home that you have fallen in love with hmay been snatched up and the other homes hard to obtain. If you wait until the March/April timeframe, it may be wise to select a large selection of homes to bid on, as there certainly will be considerably more competition at that time. The real estate season is also starting to heat up at that time, and along with the tax credit deadline of April 30th, may also tend to raise home prices on the desirable homes due to multiple offers being made.
Also to you home sellers, don't forget about your plan for listing your home. Many sellers are currently getting their homes ready to sell right now, in anticipation of a hot buyer's market going on through April 30th. If you wait to list your home until the last minute, you may miss out on the frenzy of buyers attempting to receive a contract of sale in time. If a Los Angeles home buyer falls out of escrow, you need time to continue the sales process with another buyer. If I were a seller, I would put my home up for sale in the month of January in case of the unfortunate situation of a buyer not qualifying for the loan and falling out of escrow. There would still be time to sell to another Los Angeles home buyer before the April 30th deadline.
Here are the Basic Tax-Credit Requirements for buyers to qualify for the $8,000 credit:
Home that you are buying must be your primary residence
$800,000 max purchase price
Contract for sale of home must be signed by April 30th, 2010 and close by June 30th, 2010
Must live in home for at least three years, or money must be paid back
Income Limits - Individuals making less than $125,000 and couples making less than $225,000 are eligible
What's great about qualifying for this credit is it's now open to existing homeowners. They are eligible for up to $6,500 on the purchase of a new home if they have owned and occupied their current residence for at least five consecutive years during the past eight years.
Why not start looking now? If for some reason, the home that you put under contract falls out, you would have time to make an offer on another home. At times, contracts fall out due to the home not passing home inspection or other unseen aspects of the home you didn't know about. You don't want to have to be in a situation where you're not fully satisfied with the home, although you feel like you need to go through with the contract to receive the $8,000 tax credit.
The least amount of competition for a home will be in the January/February timeframe. Have fun looking and be at peace in receiving the home-buyer tax-credit for you and your family.
by: Lori EnglishAbout the Author: