Tax Credit Expanded For Move Up Buyers!

Yes, first time buyers can still qualify for an $8000 tax credit, but this blog is not for them. I am calling all you folks out there who have been sitting on your butts waiting for the market to get better before you move up! Congress passed an expanded tax credit last week to include move-up buyers who have lived in their homes for at least 5 years. Those who move up may qualify for a $6500 tax credit (there are some generous income restrictions) Let me put this in perspective for a Lansing area buyer. I was working with someone recently who is looking to sell their Lansing home which they bought for $130,000 in 2004. The house is now worth about $105-110,000. Total bummer. However, the area that they were looking to move into had an average sales price of $228,000 just 4 years ago and now sells on average for $169,000!!!! That’s $59,000 less folks…a lot more than the $20,000 hit they can expect to take on their current house. Add a $6500 tax credit to offset the loss on your current house and a new house starts to look like an attainable goal as long as you have the money you need to sell your current house. But you better get cracking because you must have a contract on your new house by April 30th and close by June 30th in order to qualify.