SellAustinTexas

The Austin Statesman recently published “8,000 Reasons to Buy,” re-capping a great program that is nearing its end. A lot has been said about the $8,000 Tax Credit, but there are a few things to remember:

1. The credit increases your refund, dollar for dollar. “For first-time home buyers whose income falls within certain limits, purchasing a house, condominium or townhome might make them eligible for a tax credit worth 10 percent of the purchase price of their home, or $8,000, whichever is less. This amount reduces the amount of taxes you owe, or increases your refund, dollar for dollar, according to the IRS. For example, if you normally would have a refund next spring of $100, with a qualifying home purchase your refund could be $8,100.”

2. It takes little effort.  ”It’s money in your mailbox,” as one agent says. She likens the amount to 4% appreciation in value on a $200,000 home.

3. Now is the time to find a house. You need to have closed on a house by the deadline, and loan approval is taking four to six weeks, as the Statesman reports. The house should be under contract by later this month.

4. There are more reasons to buy a home now, not just the tax credit. “Interest rates are at a historic low. Because the market has dipped, you will be buying at a lower price point instead of a higher one,” says a 28 year real estate veteran.

Other sales promotions and tax breaks exist. For instance, Freddie Mac is offering to pay 3.5% closing costs and offers a two year warranty on Freddie Mac owned homes. For this program, you need to have made a first offer on a home before October 30.  You must first contact a buyer’s agent for this program to be valid.

Texas and Austin both offer unique first time homebuyer programs, as well.

If you have any questions about buying an home and are interested in looking, talk to your real estate agent today.