Marketing Opportunities: Homebuyer Tax Credit

By
Mortgage and Lending with Amerifirst Financial, Inc

There is a lot of speculation about how, when and who the "NEW" Homebuyer Tax Credit affects.  We should be very clear in our information and learn how to effectively make the most of the opportunity.  If you are serious about building your database and business.  It is time to get your butts up and do something about it. 

The 90/10 Rule will apply! 

  • What side of that equation will you be?
  • How to make the most of this? 

Well, If I'm a REALTOR and I'm not (but I am going to do this anyway).  I would call the best marketing rep from a title company or Loan Officer (hopefully me) and request a list of homeowners that purchased in 2004 or before.  Then I am going to send them flyers, newsletters, bulletin, etc to tell them that they can upgrade and/or keep their property as an investment or not and move to a better home while obtaining $6,500 as a tax credit. I am also going to get on the internet and work out a massive Social Media campaign to get the buyers (and likley sellers) calling me!! 

Don't take my advice, I am just speaking out loud of what I am going to do!

What you need to know!

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

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Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. Joe Niece 11/06/2009 07:15 PM
  2. Sybil Campbell 11/06/2009 10:48 PM
  3. John Oman 11/14/2009 08:36 PM
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Comments 48 New Comment

Show All Comments
Rainmaker
351,438
Damon Gettier
Broker/Owner ABRM, GRI, CDPE
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert

Good information.  Great Ideas too!

November 06, 2009 10:34 PM
Ambassador
657,699
Sheldon Neal
That British Agent Bergen County NJ
Bergen County, NJ - RE/MAX Real Estate Limited

Very proactive idea ! I love it - making note and formulating gameplan !

Cheers Ted !

November 06, 2009 11:00 PM
Rainmaker
227,971
Donna Paul
Long Island Home Specialist, Search for Long Islan
Keller Williams Realty Gold Coast

Thanks for sharing I have to look into it.  That WHY I love ACTVE RAIN...

November 06, 2009 11:01 PM
Rainmaker
230,653
Lina Robertson Jones
REALTOR, Springfield MO Area Homes for Sale
Ozark, Nixa, Republic & Willard Real Estate

This is the first time I have seen the actual effective date.  I would have thought it went into effect immediately.  Thanks for the information!

November 06, 2009 11:05 PM
Anonymous #33
Anonymous
Audrey Ingram, CPM - Coldwell Banker United, Realtors - Bellaire

Excellent information with great feedback.  I'm taking a closer look!

November 06, 2009 11:19 PM
Rainmaker
65,387
Ted Canto
Arizonan #1 Mortgage Lender
Amerifirst Financial, Inc
Blair, I've heard of that My Title Guy! They say he is pretty ugly. LOL! As you already know, Stephen Garner (aka MyTitleguy) work on this stuff together closely all the time. I named us "The Dynamic Duo". In fact, I gotta nail you down for some coffee or breakfast to talk. We have some really cool ideas.
November 07, 2009 09:24 AM
Rainmaker
111,130
Blair Ballin
Hunt Real Estate, ERA

Ted, I just realized how similar our pictures look--weird. ;-) Dynamic Duo? I can see where you might be dynamic but Stephen? I think him and I are meeting on Wednesday maybe we should all meet then?

November 07, 2009 09:52 AM
Rainmaker
131,337
Michele Reneau
Realtor, GRI ~ Charleston, SC Relocation Experts Team
Certified Staging Professional (CSP) Elite Instructor

Ted-Good stuff. My post is a just spinoff on expanding your idea. One of my suggestions it to contact your mortgage professional--the sky is the limit in ideas when its tag teamed.

While people that bought in 2004 may still be slightly upside down, if they have the ability to move up b/c they put a downpayment down or have paid enough equity down, they will still come out on top. While their home has lost value, if they are moving up in price range, they will make up for the loss on their purchase.  i.e. A home they might consider 5 years ago would have been $400,000, but now, its worth $360,000.  If they are moving up from a home they bought for $200,000 and they sell for $185,000, in the move up, they still have a positive bottom line of $25,000 on equity (lose $15K on the house, gain $40,000 on the move up).

November 07, 2009 10:42 AM
Rainmaker
366,568
Bob Willis
Whittier Realtor® Sells Homes in Southern Cal
Berkshire Hathaway Home Services California Properties

According to NAR, the effective date for a current owner is the date of enactment (November 7, according to NAR).  So, you can get your move up buyers under contract to purchase today.  They do not have to wait until December 1.

All of the rules that were in effect for the first time buyers stay in effect until December 1.  As of December 1, first time buyers, as well as move up buyers, will be limited to a maximum purchase price of $800,000.

Check out NAR's website for more info:

http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

 

November 07, 2009 12:19 PM
Ambassador
1,405,344
Anna Banana Kruchten
Phoenix Real Estate Agent, CRB, CRS 602-380-4886
Phoenix Property Shoppe

Ted you so rock - you are whole hearted invited to my office buddy!

November 07, 2009 12:31 PM
Ambassador
1,227,260
Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

Interesting post. And you got a personal invite to Anna Banana's office plus a feature. Wow!

 

November 07, 2009 03:51 PM
Rainmaker
65,387
Ted Canto
Arizonan #1 Mortgage Lender
Amerifirst Financial, Inc
Erica- Isn't AR great!
November 07, 2009 04:00 PM
Rainmaker
65,387
Ted Canto
Arizonan #1 Mortgage Lender
Amerifirst Financial, Inc
Thanks Anna! By the way, check out my blog on Fannie Mae signing rental agreements on their foreclosures. Must know info. for agents and your clients.
November 07, 2009 08:09 PM
Rainmaker
366,568
Bob Willis
Whittier Realtor® Sells Homes in Southern Cal
Berkshire Hathaway Home Services California Properties

Do move up buyers have to sell their current home in order to get the tax credit?  I haven't seen anything saying they have to sell.  Do they?

November 08, 2009 02:28 PM
Rainmaker
65,387
Ted Canto
Arizonan #1 Mortgage Lender
Amerifirst Financial, Inc
Hi Bob.. They do not have to sell however, I will bet that the paper trail will be looked at closely to establish Owner occupancy on the new home. This is also an open window for fraud. Owners will now need to be very careful of 'NOT' reporting rental income on their tax returns (as many do not).
November 08, 2009 03:02 PM
Rainmaker
284,637
Philip Turner
Mortgage Banker Since 1980
MCCUE MORTGAGE COMPANY

Good ideas.  All of the information that I have seen regarding present homeowners is that their part of the bill became effective on Saturday, November 7th.  I don't believe that they have to wait until December 1st.  In southeastern CT I believe that the homeowners who purchased in 2004 or earlier will be OK unless they did a cash out refinance and used up all of their equity.

November 08, 2009 05:53 PM
Rainmaker
128,109
Mike Henderson
HUD Home Hub - 303-949-5848
Your complete source for buying HUD homes

Great points.  I'm figuring out how to target this immediately.

 

November 10, 2009 02:46 PM
Anonymous #46
Anonymous
Jim Thomas

Ted:

 

Would you be willing to put some of the marketing materials on your Facebook.  You can use the program called SlideShare.  I would enjoy seeing the marketing pieces you use.  I would also be willing to trade some of my collateral pieces.

November 14, 2009 08:45 AM
Anonymous #47
Anonymous
Deana Smedlund

Thanks for sharing such great information with us. I will get started now on the list of people who have been in there homes 2004 and before.

November 14, 2009 07:18 PM
Rainmaker
693,466
Lanre Folayan
Buy a home in Washington DC. Sell your DC Home Now
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC

Ted I love this idea of yours. Brilliant. By the way do you do loans in Maryland and DC? Please say yes. I am going to need your help on coming up with a marketing plan. I am about to start e-mailing my mortgage brokers and title companies right now. Great post.

December 06, 2009 08:42 AM
Show All Comments
Rainmaker
65,387

Ted Canto

Arizonan #1 Mortgage Lender
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