New tax credits will help continue to further activity within Lincoln’s residential real estate market
The extension and expansion of the existing homebuyer tax credit programs are positive steps for the nation’s residential real estate market, says Ron Peltier, Chairman and CEO of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and the nation’s second-largest independent residential real estate brokerage (www.homeservices.com).
The existing homebuyer tax credit program, which has been in effect since January 2009, provides up to $8,000 in tax credits for individuals purchasing their first home, as well as for those who have not owned a home for three years has been extended into 2010. Under the new extended legislation, the current Nov. 30, 2009 deadline to close on a home has been expanded to June 30, 2010.
The newly-enacted tax credit provides eligible home buyers who have lived in their current home consecutively for five of the previous eight years with up to $6,500 in tax credits.
Qualified, prospective homebuyers looking to capitalize on either tax incentive will need to have a signed purchase agreement by April 30, 2010, and will need to close on their home by June 30, 2010.
“We are very excited about what this can do for the Lincoln market,” said Mike Elgert, managing broker and team leader for HOME Real Estate. “It almost goes without saying that it brings many more home buyers back into the market place and it will stabilize values as we head in to 2010. Couple this with the unbelievable low interest rates that prevail and it really makes it a great time to buy a home.”
“We view this as an extremely positive step for our industry,” adds Peltier. “The extension of the homebuyer tax credit and, in particular, expanding the tax credit to include current homeowners, creates motivation for those buyers that have been contemplating a home purchase. This creates a tremendous incentive and makes this the perfect opportunity to act now.”
The tax credit is available for the purchase of principal residences only, and the home must cost no more than $800,000. Vacation and second homes are not eligible.
Individual buyers must have an annual income of no more than $125,000, or $225,000 for those who file jointly. Buyers who have served in the military outside of the U.S. for at least 90 days will receive a 12-month extension on the tax credit.
“Our industry is one of the nation’s key economic drivers,” concludes Peltier. “We are confident in its long-term viability and in its chief mission of helping facilitate the American dream of owning a home.”
HOME Real Estate, an affiliate of HomeServices of America, is the area’s leading real estate company serving the Lincoln, Seward, and surrounding areas. The company’s agents are committed to providing clients with exceptional service in all stages of the building, buying, and selling process, including real estate, mortgage, title, and insurance. For more information about HOME Real Estate, visit www.HomeRealEstate.com.
About HomeServices of America
HomeServices of America, Inc., based in Minneapolis, Minn., is the second-largest homeownership service provider in the United States. Owned by MidAmerican Energy Holdings Company, an affiliate of Berkshire Hathaway Inc., HomeServices’ operating companies offer integrated real estate services, including brokerage services, mortgage originations, title and closing services, property and casualty insurance, home warranties and other homeownership services. HomeServices Relocation, LLC is the full-service relocation arm of HomeServices of America which provides every aspect of domestic and international relocation to corporations around the world. HomeServices operates in 20 states under the following residential real estate brand names: Carol Jones REALTORS; CBSHOME Real Estate; Champion Realty Inc.; Edina Realty; EWM REALTORS; Harry Norman, REALTORS; HOME Real Estate; Huff Realty; Iowa Realty; Koenig & Strey GMAC Real Estate; Long Companies; Prudential California Realty; Prudential Carolinas Realty; Prudential First Realty; Prudential York Simpson Underwood; RealtySouth; Rector-Hayden REALTORS; Reece & Nichols; Roberts Brothers Inc.; Semonin REALTORS and Woods Bros Realty. Information about HomeServices and the locations of its subsidiary companies is available at www.homeservices.com.