Earlier today the House of Representatives voted 403 to 12 to approved legislation to extend and broaden the homebuyer tax credits. The Senate had already voted and 98 to zero for approval. Over the course of the last several months I have seen Simi Valley home buyers have been snapping up properties in an effort to get their share of the $8000 tax credit. With the expiration date set for November 30th there much speculation about extending and expanding the tax credits and what form they may take.

The National Association of Realtors is one of the largest political lobbying forces in the United States which represents not only my industry, real estate agents, but also represents the interests of property owners and homeowners across America. The National Association Realtors fought hard to lobby Congress to extend and expand this tax credit. There is no doubt that NAR's efforts played a big part in today's victory.

Here are some of the points of the new expansion and extension.

• First-time homebuyers credit can total up to $8000
• Existing homeowners who have owned their home for a minimum of five years can apply for credit of up to $6500 on their purchase.
• April 30, 2010 is the cutoff point for buyers to put a purchase under contract.
• Any purchase under contract prior to April 30, 2010, will have until June 30, 2010 to close escrow.
• Those claiming the credit on their next tax return will need to attach proof of purchase with their return.
• Income limitations have been raised to 125,004 single buyers. And 225,004 couples.

The credit is based off 10% of the purchase price with the maximum credit of $8000 for first-time buyers and $6500 for move up buyers. California purchasers should have no problem hitting the maximum amounts as our base-level homes far exceed the national medium home price.

All that is left is for President Obama to sign the legislation.

It looks as if the shorter time frame coupled with the 60 day escrow. Expiring June 30 is an indicator that this program will not be continued. If the tax credit is a big factor in your next home purchase your window of opportunity is very small. Simi Valley has been experiencing historically low inventories in the entry-level market, combined with low interest rates and the decline in pricing, competition among buyers will remain brisk.

One advantage from now until Super Bowl Sunday is that many in the real estate industry go into hibernation mode. This could create opportunity for buyers who are persistent and diligent in the process.

Ted Mackel Simi Valley Real Estate Agent - Keller Williams Realty
Ted Mackel is a top producer at Keller Williams Realty Simi Valley,
specializing in Simi Valley Real Estate
(805) 432-7705

We all tend to judge a person by how they look. We will also judge by the color of the skin, the tattoos on the arm, the way words are spoken, and a thousand other ways. When will we learn that we really are doing a disservice by judging a book by its cover. If I would have judged in the first year of my career, I would have missed out not only on a business relationship but also a fine friendship now for many years.

The whole family came into the high-priced Simi Valley real estate listing I was holding open. They looked like real schleps! Like they just threw on the clothes and tennies. Hair messed, torn jeans...I figured they were just open housing. Didn't get much chance to talk with them, but I kept in touch, heard about their business out of the garage in the first-time homebuyer tract and how they wanted to buy a high-priced home. How, I couldn't figure out, as they looked like they couldn't afford anything.

Guess what! These folks outgrew their home as their business in the garage needed a commercial property, they wanted to sell their little first-time homebuyer home and purchased a big, beautiful new home that is a Simi Valley luxury home. Who kept in touch with them throughout the years? Who helped them with their purchases when it came time to locate Simi Valley homes for sale? And who would have lost out on a friendship that has lasted all these years?

I didn't lose...I didn't judge a book by its cover.

FACING FORECLOSURE?

NEED TO SELL?

NO EQUITY?

At a Cross Roads? You Have Options-Short Sale Specialist-Realtor

No Fee. Avoid Bankruptcy & Foreclosure

www.iSimiValleyShortSales.com

Short Sale Help-Save your Credit

Simi Valley Real Estate Short Sale

Contact Me for a Free confidential consultation

805-407-6453

Simi Valley SnowFest This Weekend - Free Family Activity

The Simi Valley Park District is hosting an day at the park complete with several tons of manufactured snow on Sunday November 8th starting at 10:00 going till approximately 4:00 pm. Bring the kids as this might be a great way to cool of this fall with the hot temperatures we have been having. It's 90 degrees today. There will be activities and an Arts & Crafts fair.

This will take place at the park near the corner of Stearns and Los Angeles across from the Metrolink Train Station.

Simi Valley - 1st time Home Buyers Tax Credit Uncertainties

The tax credit for 1st time home buyers is ending on November 30th.  If you do not have a home in escrow by tomorrow, unless your offer is all cash, it will be difficult to get a financed purchased closed by November 30th.  The Thanksgiving Holiday will shorten the time for lenders to fund loans considerably.

There is much discussion in the media about an extension, but that is still far off in the distance as the Senate and Congress discuss options to include regular home owners in the program with the 1st time buyers.  The proposals really do not mean much until a bill is drafted out for discussion and vote.

The media coverage points to a favorable conclusion, but it is far too early to claim victory for future Home Buyers.

Thanks for reading Simi Valley's Premiere Real Estate Blog! Author - Ted Mackel Simi Valley Real Estate Agent - Keller Williams Realty Ted Mackel is a top producer at Keller Williams Realty Simi Valley, specializing in Simi Valley Real Estate (805) 432-7705