How you can take advantage on the new tax credit before it is gone?

We all knew the $8000 first time home buyer credit was extended and if you are existing home owners and owned the house for the past 5 years, you are qualified for $6500 as long as you did not make more than $125K and $225 for joint filers.

So, let's find out how this new credit will affect you as a
(1) Trade-up home buyers, (2) Downsized home buyers and (3) Real estate investors.

First, if you are waiting to trade up your existing homes and like to make a home purchase in order to take advantages the $6500 tax credit. You will need to consider how to do with your existing homes.
Do you need to sell it or rent it out?
Do you need the equity from your existing home in order to put at least 20% down so you don't need to pay the PMI (Private Mortgage Insurance).

If so, you may want talk to several mortage brokers how you can draw the equity line from your primary residence so you don't need to sell the house but still able to put down 20% down. However, if you decide to sell and I will suggest you to have an entrusted real estate advisor to help you to do a Comp analysis and order an apprasial and wallk you through from staging and maketing cause the competition that the sellers faced today are way more complicated than 2 years ago.

I already heard a couple stories that even the seller and buyers agreed on the final purchase price but the apprasial came back and short $20K and the seller had to reduce the price in order to close the property. So, right now is defintely a buyer's market and seller if you don't want to handle 2 properties and want to get rid the old house, had a realtor you can trust and sit down and explore all the options.

I recommends some of my trade up home buyers to rent their house instead of selling right the way if the rent can cover the monthly payment. But everyone is different and so talked to your entrusted real estate advisor and see which investment strategies work the best for you and your family.

Secondly,for those planning to downsize their home and you will defintely want to get rid the big house cause you like to save everything from annaul property tax, home insurance, utilities and I will recommend you sell the big one cause if your goal is to simply to save as much as possible.
You want to buy a smaller one and get the $6500 as a bonus from the government!
Of course, if you don't want to sell your big house but you know you are planning to sell it eventually and you may want to retain a property managment company to handle all the tenant showing, screening, eviction...e.t.c in case you want to wait until the market picks up.

I will share with you next time how the (3) Real Estate Investors can take advantage the home buyers credit....

Hannah Chan Broker, GRI - Your Entrusted Real Estate Advisor in Traingle
Broker/Owner
Cary-Raleigh Realty, Inc.
919-426-1854
919-468-1570(Fax)
Email: caryraleighrealty@yahoo.com
Website: http://www.caryraleighrealty.com
Blog: http://caryraleighapexmorrisvillerealestate.blogspot.com/
Profie: http://www.linkedin.com/in/hannahchan

Closing postphoned by H1N1 Flu..

I had a closing last Friday and my buyers were able to get the loan processed and closed in 2.5 weeks! So, my buyer could close the house 2 weeks earlier than the scheduled closing. Anyway, when my buyer and I sat on the closing table and the closing attorney came in and told us the seller who already moved to another state forgot to sign the one of the documents and so we had to wait until Monday.

Today, I called the closing attorney office and want to find out if the seller signed the paper and Fedex to the closing attorney and the answer was the seller's son had H1N1 flu and cannot go out. My buyer need to wait a couple more days until the seller can go out and mail the paper back to the closing attorney. I know H1N1 is affecting all of us but this is the first time I felt the threat of H1N1.....
Hope all our fellow realtors eat well, stay healthy and prepare to fight the H1N1 attack....



Hannah Chan Broker, GRI - Your Entrusted Real Estate Advisor in Traingle
Broker/Owner
Cary-Raleigh Realty, Inc.
919-426-1854
919-468-1570(Fax)
Email: caryraleighrealty@yahoo.com
Website: http://www.caryraleighrealty.com
Blog: http://caryraleighapexmorrisvillerealestate.blogspot.com/
Profie: http://www.linkedin.com/in/hannahchan

First time home buyers credit $8000 extended by Senate and new $6500 credit..


If you are currently homeowners and owned your homes at least 5 years would be eligible for tax credits up to $6500. The credit is good for purchase your principal homes costing $800K or less and would be phased out if you made more than $125K or $225K for joint filers.

Senate voted on Wendesday to extend First-time homebuyers tax credits of and expand the tax credit to includebuyers who already own homes.


In my opinion, the home buyers credit extend to existing home owners defintely a good idea cause the $8000 credits actually helped a lot of my first time home buyers to pay for their closing cost and to digest most the starter homes and foreclosured homes inventories priced under $250K in our area. But we have a high inventories which are priced $315K or up and so I can see once the $6500 credit approved by the house and will have a positive impact and to reduce those range. But you will need to meet the time limit and income limit in order to get the $6500.


To qualify for the tax credit, you will need to sign a purchase agreement by April 30, 2010, and close by June 30, 2010. Anyway, it defintely a good news to a lot of existing home buyers and I can see a lot of my buyers will able to take advantage the $6500 tax credit and is defintely one step forward to stabilize the existing housing market! I can see the housing recovery is right at the corner....


Anyway, it is not final until it is passed by the House but will defintely keep you update and talk more how you can take advantage the $6500 credit if you want to trade up your current homes.




Hannah Chan Broker, GRI - Your Entrusted Real Estate Advisor in Traingle
Broker/Owner
Cary-Raleigh Realty, Inc.
919-426-1854
919-468-1570(Fax)
Email: caryraleighrealty@yahoo.com
Website: http://www.caryraleighrealty.com
Blog: http://caryraleighapexmorrisvillerealestate.blogspot.com/
Profie: http://www.linkedin.com/in/hannahchan