CHICAGO, Oct. 1, 2009 – ForSaleByOwner.com is reminding first-time home buyers that there still is still time to qualify for the $8,000 first-time home buyer’s tax credit, but they need to act soon. The tax credit is available for a buyer who is purchasing their first home and closes on the sale by November 30, 2009.
“It generally takes 30 to 60 days to close on a real estate purchase, so the clock is ticking for first-time buyers to take advantage of the $8,000 tax credit,” explains Greg Healy, Vice President of Operations for ForSaleByOwner.com. “The government has set a firm November 30 deadline and there have not been any strong signs of extending it beyond this date. Buyers might be missing out on a great opportunity if they want to purchase a house but wait any longer.”
To help stimulate the housing market, the Federal government earlier this year enacted a tax credit for first-time homebuyers who purchase a principal residence. The tax credit is equal to 10 percent of a home’s purchase amount or $8,000, whichever is less. In order to qualify for the tax credit, the buyer has to meet the following general parameters:
1. Be a First-Time Home Buyer: The law defines this as a buyer who has not had ownership of any principal residence in the past three years.
2. Buy a Principal Residence: Any home that will be used as a principal place of residence will qualify, including condos, newly constructed homes and manufactured homes.
3. Beat the Deadline: The real estate transaction will have to close by November 30.
4. Meet Certain Income Thresholds: In order to qualify for the full $8,000 tax credit, a single taxpayer cannot have a modified adjusted gross income (MAGI) that is greater than $75,000. For married taxpayers who are filing a joint return, the MAGI limit is $150,000. For those with higher incomes than these thresholds, the tax credit is reduced and is phased out completely for single taxpayers with a MAGI of $95,000 or more, and for married taxpayers with a MAGI of $170,000 or higher.
ForSaleByOwner.com is the nation’s leading “by owner” real estate website. Since 1999, ForSaleByOwner.com has saved home sellers more than one billion dollars by providing premium Internet marketing services, MLS listing services, property pricing reports, real estate guidance and information, downloadable legal forms, as well as live customer support, to help customers independently sell their own homes. The company charges a modest fee for its wide range of advertising and real estate resources, priced from $89 to $899. In contrast, a person selling a $300,000 home through a real estate agent would be charged a 6% commission fee and pay approximately $18,000. Prospective homebuyers can browse property database, available at http://www.forsalebyowner.com, at no charge.