As a first time home buyer $8,000 can be a lot of money. Depending on your location and what the typical first time home buyer is in your area $8,000 can be a HUGE incentive or one that just barely makes a dent in any type of scenario.

I don't sell in California and in fact I don't sell in Seattle where the prices for first time home buyers is considerably more than what a first time home buyer can purchase here in Kitsap County. It is true that with the real estate correction over the last 3 years we do have homes in the area that are in the low $100,000 range.

Our income levels are lower here and so the first time home buyer here was being helped tremendously with the $8,000 tax credit. We have a large percentage of military personnel and a large percentage of military personnel marry younger and start families younger. This sometimes has impacted their buying power. They have steady, good paying jobs with benefits but might have over the last several years incurred some debt that can be washed out with this incentive.

Who Qualifies - $6,500 Extended Credit

• Current home owners going under contract to purchase a home between November 7, 2009 and April 30, 2010 (closing on or before June 30, 2010), who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. (I am sure more detailed information will be forth coming) IRS publications I am sure to be released. Speak with your Tax Adviser prior to filling.
  

So what does this new "expansion" to the extended tax credit mean to local Kitsap County home sellers or "step-up" buyers? You know what cost are associated with selling your home. Check out this post I wrote a couple weeks ago to refresh your memory.

Kitsap County Real Estate - Sellers Closing Costs - WHAT

Your $6,500 tax credit could help you with the following charges when you sell your home

• Real Estate Fees - remember these are always negotiable but in our market area the average range is between 3 and 6 percent of the sales price.
• Excise Tax - currently you will be paying 1.78% of the sales price to the state for selling your home.
• Settlement charges like title policy fees and escrow closing costs.

This new incentive just might be what you are looking for to help you to that next dream home. Remember how fun it was to be a first time home buyer? Well, I can tell you that to make a move up is just as fun and almost more exciting because your possibilities are usually more. The move-up home is usually one that enables you to have the items that you only could dream about in your first home.

If you have any questions on selling your home in this market just give me a call, or send an email, or text me with your questions!

I am sure lots of area home-buyers have thought this was approved a couple of weeks ago, however the President just signed the Bill this afternoon. The original 1st time home-buyer credit was extended and there was a new provision inserted to allow for higher income and for home-buyers who would like to be move-up buyers to receive a credit of $6,500 with certain restrictions. This next week I will be posting more in-depth about this bill but wanted to give an update and some quick facts.

• Home-buyers must sign a contract before April 30 and close by June 30.
• Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.
• First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate.
• Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.

There are several news articles you can read for more information

BREAKING NEWS: President Obama Signs Bill Expanding Homebuyer Tax Credit

$8,000 homebuyers tax credit extended

First-time home buyer credit, jobless benefits both extended

Obama signs homebuyer, jobless bill assistance

Very important to read these items: Income limitations, details about your current home ownership, and FAQs to see if this new tax credit applies to YOU:

http://www.realtoractioncenter.com/realtor-party/documents/2009-NAR-FAQ-Tax-Credit-Changes-1105-1236.pdf

http://www.realtoractioncenter.com/realtor-party/documents/2009-NAR-Issue-Brief-Homebuyer-Tax-Credit-Changes-1104-1107.pd

What to do when your house just doesn't "do it" for you anymore

Like a romantic relationship, how we all feel about our homes is about sparks, love, joy, and comfort. It's the place where LIFE happens. When you're in love, there's nowhere you'd rather be than with that person. With a house, you can't wait to get there. Some days it's thrilling, some days it comforting, and even when it gets messy, it's worth every effort to make it shine again. Unlike a relationship, evaluating your love for your home doesn't have all the moral compass issues. SO - when your house doesn't do it for you anymore, you CAN trade it in for another without feeling like a dirtbag. You're allowed to get excited at the prospect of your next great love!

Most of my friends have been in their homes for a number of years. I've been in my home for 9 years now. Many people I know have been in their homes for 5 years or more. During those years, finances were tight in the beginning, but many of us have added another income as kids have gone off to school, and/or one person's career has really fluorished. We all bought at a good time in the real estate market: Prices had not done the crazy price "boom" yet and we thought 7.5 and 8% interest was fabulous! So now, what if I told you you could sell that house - instead of feeling stuck and unable to sell in this market - Make a profit, get an interest rate in the 5%s, AND get a $6500 tax credit from the government ?

Let's say you bought a home in Silverdale in 2004 for $250K. You re-financed and now owe $290K. You get a free CMA from your trusted Realtor and discover that you can more than likely profit $20 - 30,000.00. The house you've been driving by and admiring is now on the market for $450,000.00. You contact your trusted local lender and find out that you qualify for an FHA loan with 3.5% down. That means your down payment is $15,750.00. You now realize you can price your home a little lower, sell it more quickly, and profit $20,000.00 - More than enough to purchase your hot new dream home!

If you still love your home and are willing to work to make it shine on and on and on -by all means, stick by her! If your house just doesn't do it for you anymore, this is a historically great time to buy a home. Prices are down, rates are down, many safe loan programs are still available, and there's cash back from the government on top of it all!

Each month I publish a real estate market report for Kitsap County WA on my local blog, SOUNDBITEBLOG. It provides an analysis of the combined single-family home and condo market within Kitsap County, Washington for each particular month, including data for Bainbridge Island WA.

Included along with the relevant market statistics is my own personal take on the current markety dynamics/conditions.

In addition, I always provide engaging information that highlights our area and showcases all that Kitsap County WA has to offer.

This week, I share about the pending extension of the $8000 1st-Time Home Buyers Federal Tax Credit and where to find your 'Sushi' fix.

To access the latest market report, go to Kitsap County WA Real Estate Market Report for November 2009.

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Rich Jacobson is a licensed real estate professional providing knowledgeable empowerment and relentless representation for his clients of residential properties and vacant land throughout all of Kitsap County WA and portions of Pierce, Mason, and Jefferson Counties. You can also find him at KitsapLife.com, SOUNDBITEBLOG and Crabbing in the Hood, or e-mail: kitsapagent@gmail.com