Strategies for Current Homeowners to Cash in On Home Buyer Tax Credit

Selling your home is never an easy task, especially in a buyer’s market. But maybe that house of yours is just not what you need now. Whether you are wanting bigger, smaller or just different, it’s time to move. And the Home Buyer Tax Credit sure looks good too.

Before you can buy a new home and take advantage of the credit, you have to figure out what to do with your current home. Should you sell it? Should you rent it out? Should you just leave it on the market whether it sells or not? Should you turn it into a vacation home?

Assuming your finances are in order, you owe little or nothing on your current home, and you have the funds to do necessary repairs, any of these could be a valid option for you. But which one will work for you and how?

Sell Your Home--Quickly

Wouldn’t it be great if you could list your house and have an offer in hand tomorrow? Sometimes this happens, but more often than not it can take a few weeks or months, or even longer. There are some things you can do to speed up the selling process.

• Find a Realtor who will market your home effectively.

• Get a professional inspection.

• Repair problems that come up on the inspection and things that have been bugging you for a while.

• Clean up your yard, landscape as appropriate for the season.

• Keep any holiday decorations at a tasteful level.

• Stage your home.

• Reduce clutter—begin packing stuff that isn’t essential.

• Rent a storage unit and move boxes and extra furniture into it until moving day.

• Brighten up your walls with a fresh coat of neutral paint.

• Wash windows, inside and out.

• Replace burned out light bulbs.

• Replace old or worn flooring with something new and modern; refinish hardwood floors if needed.

Become a Landlord

This may be a good option if you have been considering getting into this business anyway, or if you have had your home on the market for a long time with few bites. If your long-term goal is to sell your home, perhaps you will have success with a lease-purchase option. Either way, you should still perform needed repairs on your home.

Leave it on the market

Many people find themselves moving into their new home without selling or renting the old one. While this could make it easier to sell, especially if you have pets or young children, it can be a risky gamble. If you go with this option, be sure to fix problems and stage your home well. If you have extra good-looking furniture you can leave for now, do so. Consider renting some furniture to use for staging. Empty rooms are harder to sell.

Turn it into a vacation home

Current interpretation indicates this option is available for the home buyer tax credit also. Perhaps your home is in the woods or on a lake and ideal for weekend getaways or long summer vacations, but the commute to work is a bit too far for your tastes. Turning it into a vacation home could be ideal.

Give me a call today and we can review your options, both for selling and for purchasing your next home. For the alternatives to selling your home, consult your tax specialist before making a final decision.

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Looking for a home in the Edina area? Visit my website. When you are ready to visit any of these homes, or if you would like to list your home, contact me, Chris Prescott, at (952) 944-1728 or via email.