John Tellesbo's Blog

THE PUSH TO EXTEND NEW-BUYER TAX CREDIT

John Tellesbo — Tue, 08 Sep 2009 16:29:00 GMT

The new-buyer tax credit of up to $8,000 is set to expire on November 30th, unless it is extended. Currently, it takes approximately thirty-five to forty days to close the purchase of a home once buyer and seller reach what is known as "Mutual Acceptance". It is strongly recommended that the buyer is in "Mutual

Acceptance" with a seller no later than October 15th, because the closing of the purchase must occur no later than November 30th. Keep in mind that many services, escrow offices and recorders office are closed for several days during Thanksgiving week. A savvy buyer should allow for unexpected delays.

There does exist a good posibility that the expiriation date will be extended (1) and (2). If the new-buyer tax credit does expire and a prospective buyer has not closed on a home, it is my opinion that new-buyers will have the opportunity to purchase a home and achieve more than a $8,000 savings in the December thru February time frame. After October, many remaining prospective buyers will sit back and wait while the motivated sellers realize that they must lower their price. As an example, if the market value declines five percent, a $300,000 home in October might be $285,000 or less in February, yielding a savings of $15,000 or more. What is your opinion?

(1) Seattle Times dated August 23rd, page E1 (Kenneth Harney)

(2) Seattle Times sated August 20th, page E1 (Jack Hagel)

Kind Regards

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High-End Homes Frozen Out Of Budding Housing Rebound

John Tellesbo — Thu, 06 Aug 2009 14:22:00 GMT

Sales of lower end homes have firmed up nicely throughout most of the country, however, the inventory of homes priced $750,000 and higher is growing. There is a 17 month supply of upper end homes in June, up from a 14.5 month supply a year ago.

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Real Estate Tax Benefits

John Tellesbo — Wed, 22 Jul 2009 10:42:00 GMT

There are many benefits of owning real estate such as a condominium or a single family residence. Historically, home ownership has been an excellent tax shelter and continues so today. First time home buyers are now eligible for a tax credit up to $8,000 thru November 30, 2009. and An excellent source of frequently asked questions with answers can be found at www.federalhousingtaxcredit.com /.

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Seattle and Bellevue Condo Buyers Are Scared!

John Tellesbo — Tue, 14 Jul 2009 10:36:00 GMT

What are the three most important things about real estate? Always has been and always will be location, location and location according to many real estate experts. I strongly disagree! The most important things about real estate is pricing as it relates to location and the inventory of single family homes and condos available for sale coupled with the inventory of willing and qualified buyers. "If You Build It" and "Will Steep Price Cuts Fill High-End Condos?" strongly illustrate what I believe are the three most important things about real estate (1) Pricing, (2) Inventory and (3) Location.

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