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Quite frequently I hear that, even in places where the market is still fairly active, transactions are taking longer. Part of the reason for that delay in the purchase and sale process is due to hesitancy among buyers.
And, I can’t say I really blame them - things are a bit rocky right now. And, yes, that IS an understatement. For real estate professionals, this is a time when you need to have every bit of ammunition you can muster to make sure that people are being realistic about the market in your area.
You also need to be able to explain to prospective home buyers the support that they might be able to receive in order to purchase a home.
I came across a good article at Realtor.com about the First-Time Home Buyer Credit. The article describes, in plain English, six basic things that home buyers should know about this tax credit that was part of the legislation passed earlier this year.
If your marketing plan includes selling to potential first-time home buyers - apartments perhaps? - this would be excellent information to include in a direct mail campaign to those prospects. Can you fit all the required information on a postcard? No. But, wouldn’t a taste of this information be a great teaser to get people to visit your website or contact you!
You should review all six of the facts in the article, but I found a few particularly interesting:
1. The tax credit can be used until July 2009 for qualified purchases. Your buyers may have more time than they thought.
2. The legislation defines “first-time home buyers” as anyone who hasn’t owned a home for at least three years. So, as an example, if you know prospective buyers who have transferred to your area, but then decided to rent until the market calmed down, they’d be good prospects for this credit.
3. There are income limits, but buyers who exceed that limit may still be able to take advantage of the credit at some level.
4. For new home construction, if your buyers are in their home by July, 2009, they could still qualify. For purposes of the tax credit, the purchase date is defined as the first day the owners occupy their new home.
If you’re selling luxury homes, this credit won’t do your buyers any good. But, if you’re working with buyers whose income is approximately $95,000 for an individual or $170,000 for a household, you may find that promoting this opportunity is helpful to you and your buyers.
No one likes sitting the fence!
