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-Blogged 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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Rainmaker
351,538
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Good information.  Great Ideas too!

Nov 06, 2009 10:34 PM #29
Ambassador
665,122
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

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

Cheers Ted !

Nov 06, 2009 11:00 PM #30
Rainmaker
230,103
Donna Paul
Keller Williams Realty Gold Coast - Dix Hills, NY
Long Island Home Specialist, Search for Long Islan

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

Nov 06, 2009 11:01 PM #31
Rainmaker
231,840
Lina Robertson Jones
Ozark, Nixa, Republic & Willard Real Estate - Springfield, MO
REALTOR, Springfield MO Area Homes for Sale

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!

Nov 06, 2009 11:05 PM #32
Anonymous
Audrey Ingram, CPM - Coldwell Banker United, Realtors - Bellaire

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

Nov 06, 2009 11:19 PM #33
Rainmaker
66,067
Ted Canto
Amerifirst Financial, Inc - Phoenix, AZ
Arizonan #1 Mortgage Lender
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.
Nov 07, 2009 09:24 AM #34
Rainmaker
113,325
Blair Ballin
Hunt Real Estate, ERA - Scottsdale, AZ

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?

Nov 07, 2009 09:52 AM #35
Rainmaker
131,339
Michele Reneau
Certified Staging Professional (CSP) Elite Instructor - Summerville, SC
Realtor, GRI ~ Charleston, SC Relocation Experts Team

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).

Nov 07, 2009 10:42 AM #36
Rainmaker
373,849
Bob Willis
Berkshire Hathaway Home Services California Properties - Whittier, CA
Whittier RealtorĀ® Sells Homes in Southern Cal

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

 

Nov 07, 2009 12:19 PM #37
Ambassador
1,482,543
Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

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

Nov 07, 2009 12:31 PM #38
Ambassador
1,280,276
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

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

 

Nov 07, 2009 03:51 PM #39
Rainmaker
66,067
Ted Canto
Amerifirst Financial, Inc - Phoenix, AZ
Arizonan #1 Mortgage Lender
Erica- Isn't AR great!
Nov 07, 2009 04:00 PM #40
Rainmaker
66,067
Ted Canto
Amerifirst Financial, Inc - Phoenix, AZ
Arizonan #1 Mortgage Lender
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.
Nov 07, 2009 08:09 PM #41
Rainmaker
373,849
Bob Willis
Berkshire Hathaway Home Services California Properties - Whittier, CA
Whittier RealtorĀ® Sells Homes in Southern Cal

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?

Nov 08, 2009 02:28 PM #42
Rainmaker
66,067
Ted Canto
Amerifirst Financial, Inc - Phoenix, AZ
Arizonan #1 Mortgage Lender
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).
Nov 08, 2009 03:02 PM #43
Rainmaker
296,993
Philip Turner
MCCUE MORTGAGE COMPANY - New London, CT
Mortgage Banker Since 1980

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.

Nov 08, 2009 05:53 PM #44
Rainmaker
128,113
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

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

 

Nov 10, 2009 02:46 PM #45
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.

Nov 14, 2009 08:45 AM #46
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.

Nov 14, 2009 07:18 PM #47
Rainmaker
700,254
Lanre Folayan
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC - Washington, DC
How much is my Petworth DC House Worth?

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.

Dec 06, 2009 08:42 AM #48
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Rainmaker
66,067

Ted Canto

Arizonan #1 Mortgage Lender
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