Looking through drafts of posts over the past year or so, this one jumped out at me because I think I was dead-on with my analysis then. And now. If you’re planning to buy a house (in Charlottesville) in 2011, do so after doing your thorough due diligence, hiring the right representation, and ensuring that you are buying for the right reasons.
What follows is a post I wrote and never published. If you’re buying, don’t do so because of fear. Same goes for selling.
There are a lot of reasons to buy a house in Charlottesville now; fear shouldn’t be one of them. And, if you’re buying from a builder’s employee …
I just received this email from a builder … bolding mine.
5 Reasons Why You Should Purchase BEFORE December 31,2009!
1- Increased Closing Cost Assistance*: $8,000 vs. Our Regular $3,000 Offer… Thats an Additional $5,000!
2- Interest Rates at Historic Lows: Leading Authorities Warn of Potential Interest Rate Increases Ahead, Which Could Increase YOUR Monthly Payment!
3- FHA Down Payment Requirements: A Proposed House Bill, The FHA Taxpayer Protection of 2009, Would Increase The Minimum Down Payment Required from 3.5% to 5%!
4- Historically Low Home Prices: As the Housing Industry Continues its Recovery, Increasing Prices Cannot Be Far Behind!
5- $8,000 Tax Credit*: In Order to Receive the Tax Credit, You Must Settle by June 20, 2010!
1 – ok. Just missing an apostrophe.
2 – Who exactly are the “leading authorities”?
3 – True.
4 – Naturally. Fear sells, right?
5 – The fine print says “June 30” – so is it June 20 or 30?
From the Text of H.R. 3548: Worker, Homeownership, and Business Assistance Act of 2009:
(a) Extension of Application Period–
(1) IN GENERAL- Subsection (h) of section 36 of the Internal Revenue Code of 1986 is amended–
‘(2) EXCEPTION IN CASE OF BINDING CONTRACT– In the case of any taxpayer who enters into a written binding contract before May 1, 2010, to close on the purchase of a principal residence before July 1, 2010, paragraph (1) shall be applied by substituting ‘July 1, 2010′ for ‘May 1, 2010′.’.
* Love those asterisks
*Federal tax credit up to $8,000 for first-time buyers and $6,500 for move-up buyers available on homes under contract as primary residences by 4/30/2010 and settled by 6/30/2010. $8,000 tax credit is for first-time buyers or those who have not owned a primary residence in 3 years. The $6,500 credit is Available to Move-Up Buyers who have maintained the same principal residence for any 5-consecutive year period during the 8-year period ending on the date of the settlement. Income limitations and other restrictions apply. We suggest you consult a Certified Public Accountant and IRS.gov for tax advice and official requirements. Prices, financing and other offers subject to change without notice. See sales representative for details. MHBR #56. All incentives are tied to the use of (our mortgage company).