Wow, there has been a lot going on in the housing market lately! I recently assisted a buyer moving to The Woodlands from the Detroit, Michigan area. Their incentive to move here was to be close to children and grandchildren. Coming from a real estate market much different than ours, these buyers were finally able to sell their home after 3 long years of being on the market in Michigan. Plus, the value of their home in Michigan decreased by $40K from contract to closing due to appraisal issues – a very hard situation. The light at the end of the tunnel for them was being able to take advantage of the $6500 tax credit on the purchase of their new home in The Woodlands.
In case you haven’t heard, there is up to an $8000 tax credit for first time home buyers. For move-up buyers or downsizing buyers who qualify for a tax credit can get up to a maximum $6,500. The stipulations are as follows for the $6,500 credit are:
• Must have lived in your current primary residence for the last 5 of 8 years.
• Must not exceed income of $125,000 for a single person or $225,000 for a married couple.
• The purchase price must not exceed $800K
This is a great incentive for the “empty nester” wanting to downsize or perhaps a homebuyer from 2004 and before that is ready to increase their current home size and/or value. What a valuable gift, just in time for Christmas!
- Ann Dee, Buyer’s Agent
