I have been hinting and praying that something like this would become part of the stimulus package and last week we took one step closer.  There is a law on the books allowing first time home buyer’s to receive up to $7,500 as a tax credit that needs to be repaid over 15 years.  Last week senator Isakson of Georgia proposed to the senate that instead a new credit that is a dramatic improvement.  Here are the specifics:

• Tax Credit of 10% of purchase price up to $15,000 (every home over $150K would receive the full credit!)
• Credit would apply to all home buyer’s not just first time home buyers
• Credit does not need to be paid back ever.  IT’S A GIFT!
• Credit to be applied equally to the next two years tax return.  ($7,500 0n your 2009 taxes and $7,500 on 2010)

Keep in mind that this is not law yet.  It was however passed unanimously by congress.  That would suggest that there is overwhelming support that it be included in the overall stimulus package.  President Obama would like to have something on his desk by the end of next week.  It is looking really good that this amendment will be part of it.

Home buyer’s keep your fingers crossed.  Such a deal would be a big boost to any buyer’s who have been waiting to purchase a home and may signal the bottom of the housing market here in Seattle.  If we see an increase in home purchasing and a reduction in home prices we may see a stabilization if not an uptick in prices over the next few months.

The amendment amounts to a reduction in the cost of a home to a buyer of 10%.  That is a fantastic savings for home buyer’s over the already discounted pricing we are seeing in the market.  This may represent an unprecedented buying opportunity for Seattle.

I’ll keep you posted.

Give me a call if you need help.

Rob Graham, Accredited Buyer’s Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 4% [?]