Tax credits have helped some in Shawnee purchase as many as four homes.
“Yes, and my children are happy also, they’re excited about being homeowners,” said new homeowner Susan Brown. “Being a mom, I think with my kids being able to get it, I think that was just awesome because owning a house is a good life- long investment.
“I just purchased one and both of my children did in a month or so,” she said. “I probably wouldn’t have if not for the tax credit.”
The incentive of getting the money to help with a down payment was a good deal, Brown said.
“I probably wouldn’t have looked,” she said about the tax credit.
President Barack Obama recently approved an extension to the first-time homebuyer tax credit, which was scheduled to expire on Nov. 30. This federal tax credit has expanded its reach to include current homeowners who are seeking to relocate and increased income limits for each borrower.
As previously, a tax credit of 10 percent of the purchase price of a primary residence, up to $8,000, may be available to first-time homebuyers who have not owned a principal residence during the three-year period prior to purchase.
The newly eligible are existing homeowners who have resided in their principal residence for five consecutive years out of the last eight and are purchasing a home as their primary residence. Repeat buyers may be eligible for up to a $6,500 tax credit.
Single individuals earning up to $125,000 and married couples filing jointly and earning up to $225,000 are now eligible for the full 10 percent credit. Singles or families earning above those levels are eligible for reduced amounts that decline as their income level increases.
For realtors as well, tax credits have been a boost to them.
“It’s made us very busy, especially between $70,000 and $150,000,” said Linda Sperry, a realtor for Prudential Carolyn Harris Realty.
The homes in good neighborhoods in Shawnee don’t stay on the market long, she said. The new tax credit will probably impact the bracket above $150,000, she said.
Recent sales indicate Sperry sold five homes to clients who were first-time homebuyers, she said.
“That’s pretty good for November,” Sperry said. “It’s pretty busy right now. For November, it’s not always that busy. For myself it’s definitely not down from last year.”
But also with the $6,500 tax credit, existing homeowners can buy homes that may need a little work and fix those up, she said.
“I think what it does for them, they say this needs to be done, this needs to be done,” Sperry said.
They can put new appliances in, buy a little paint and update the home with the money they save with the tax credit, she said.
“It lets them look at houses that they might not have considered,” Sperry said. “It’s helping the under $150,000 market. The new tax credit will help those wanting to make a step up.”
First-time home buyer Megan Madison who just closed on her home Friday, also took advantage of the tax credit. She said she wouldn’t have bought as quickly as she did, if not for the credit.
“Probably not right now, that’s part of the reason I’m getting it,” she said. “Because of the tax credit, we decided to buy earlier.”
The decision to buy a home had a lot to do with the availability of the tax credit, Madison said, adding that she will use the savings later down the road.
She was excited about the idea of owning a home, she said.
“That’s it actually, it’s kind of like an investment,” Madison said. “Unlike renting, where you’re putting money into something that will never be yours.”
Crystal Wagoner, realtor for Century 21 Golden Key, said she has seen an increase, both before and after the tax credit was increased.
“So many people were trying to get in at the last minute,” she said. “I do believe it has generated a lot more interest.”
The tax credit has increased business for Wagoner, she said.
“It’s kept us busy and is keeping us busy,” she said. “Absolutely,” when asked if she’s seen an increase in customers. “We’re seeing a lot more people. I think a lot of people didn’t realize that the tax credit was going to end. It got busier.”
The tax credit has been extended to homes purchased between Nov. 6. and April 30; however, if a home is under contract by April 30, it may close as late as June 30. These dates apply to both the first-time homebuyer credit and the new credit for existing homeowners.
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Josh Burton may be reached by 214-3926.
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Tax credits have helped some in Shawnee purchase as many as four homes.
“Yes, and my children are happy also, they’re excited about being homeowners,” said new homeowner Susan Brown. “Being a mom, I think with my kids being able to get it, I think that was just awesome because owning a house is a good life- long investment.
“I just purchased one and both of my children did in a month or so,” she said. “I probably wouldn’t have if not for the tax credit.”
The incentive of getting the money to help with a down payment was a good deal, Brown said.
“I probably wouldn’t have looked,” she said about the tax credit.
President Barack Obama recently approved an extension to the first-time homebuyer tax credit, which was scheduled to expire on Nov. 30. This federal tax credit has expanded its reach to include current homeowners who are seeking to relocate and increased income limits for each borrower.
As previously, a tax credit of 10 percent of the purchase price of a primary residence, up to $8,000, may be available to first-time homebuyers who have not owned a principal residence during the three-year period prior to purchase.
The newly eligible are existing homeowners who have resided in their principal residence for five consecutive years out of the last eight and are purchasing a home as their primary residence. Repeat buyers may be eligible for up to a $6,500 tax credit.
Single individuals earning up to $125,000 and married couples filing jointly and earning up to $225,000 are now eligible for the full 10 percent credit. Singles or families earning above those levels are eligible for reduced amounts that decline as their income level increases.
For realtors as well, tax credits have been a boost to them.
“It’s made us very busy, especially between $70,000 and $150,000,” said Linda Sperry, a realtor for Prudential Carolyn Harris Realty.
The homes in good neighborhoods in Shawnee don’t stay on the market long, she said. The new tax credit will probably impact the bracket above $150,000, she said.
Recent sales indicate Sperry sold five homes to clients who were first-time homebuyers, she said.
“That’s pretty good for November,” Sperry said. “It’s pretty busy right now. For November, it’s not always that busy. For myself it’s definitely not down from last year.”
But also with the $6,500 tax credit, existing homeowners can buy homes that may need a little work and fix those up, she said.
“I think what it does for them, they say this needs to be done, this needs to be done,” Sperry said.
They can put new appliances in, buy a little paint and update the home with the money they save with the tax credit, she said.
“It lets them look at houses that they might not have considered,” Sperry said. “It’s helping the under $150,000 market. The new tax credit will help those wanting to make a step up.”
First-time home buyer Megan Madison who just closed on her home Friday, also took advantage of the tax credit. She said she wouldn’t have bought as quickly as she did, if not for the credit.
“Probably not right now, that’s part of the reason I’m getting it,” she said. “Because of the tax credit, we decided to buy earlier.”
The decision to buy a home had a lot to do with the availability of the tax credit, Madison said, adding that she will use the savings later down the road.
She was excited about the idea of owning a home, she said.
“That’s it actually, it’s kind of like an investment,” Madison said. “Unlike renting, where you’re putting money into something that will never be yours.”
Crystal Wagoner, realtor for Century 21 Golden Key, said she has seen an increase, both before and after the tax credit was increased.
“So many people were trying to get in at the last minute,” she said. “I do believe it has generated a lot more interest.”
The tax credit has increased business for Wagoner, she said.
“It’s kept us busy and is keeping us busy,” she said. “Absolutely,” when asked if she’s seen an increase in customers. “We’re seeing a lot more people. I think a lot of people didn’t realize that the tax credit was going to end. It got busier.”
The tax credit has been extended to homes purchased between Nov. 6. and April 30; however, if a home is under contract by April 30, it may close as late as June 30. These dates apply to both the first-time homebuyer credit and the new credit for existing homeowners.
———
Josh Burton may be reached by 214-3926.
