Should I list now or wait until spring ?
The first part of the answer depends on a seller's personal goals. If a seller has no place to go or plans on purchasing in the future or there are other external factors that pushes their timeline out it might make sense to wait until those answers are figured out and there is less uncertainty. This is the case for any seller at any time of the year.
There are six main advantages for a seller to list now in December or January instead of waiting until spring:
1. Inventory - In the spring, how many other sellers will have ended up doing the same strategy ? They may have been waiting a year or so until the market got better or perhaps just figured it was the best time to list their property. So come March, April and May, there will be that much more competition to potentially compete with ! By listing now, you avoid all that potential competition.
2. Motivated Buyers - Often many buyers will just wait until spring to start their search as well. They will just be beginning the process. Believe me the buyers that are out house hunting during the Thanksgiving and XMAS timeframes are serious and motivated. By listing now, you will potentially get one of these buyers to write a deal on your property !
3. Mortgage Rates - The mortgage rates right now are at 3 year lows ! This is actually causing an uptick in buyer traffic and activity. If you list now, you will catch this wave of increased buyers shopping for houses since mortgage rates are so low.
4. Buyers confidence - Buyer confidence is starting to shift which is also increasing buyer traffic. Another cause for increase traffic is for a buyer to take advantage of the $7,500 first time homebuyer tax credit which expires in the middle of 2009. A buyer has to settle on their property before that timeframe. By listing now, you are taking advantage of this trend of increased buyer traffic.
5. Accomplish your goals now - When it is all said and done, wouldn't you rather have your house sold by March and April and moving on with your life than potentially just listing your house at that point in time. I love it when we accomplish our goals ahead of schedule - it is a great feeling. By listing now, you are positioning yourself to accomplish your goals sooner than later.
6. Reverse Fear - Lastly, not to buy into the media's doom and gloom, but there is always risk that the housing markets could deteriorate more instead of picking up by the middle of 2009. In addition, the reality of the market getting that much better in a short period of time is remote. I doubt that just by waiting until spring, a sales price could be higher by 10 percent. In fact, it could even be a little worse if you think the economy is going to deteriorate as the unemployment rate continues to skyrocket. By listing now, you avoid that extra layer of uncertainty.
Merry Christmas and Happy New Year!
I hope you and your family have a
happy, healthy Christmas
and a
prosperous 2009!
Plan Now to Get Full Benefit of Saver’s Credit; Tax Break Helps Low- and Moderate-Income Workers Save for Retirement
WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2008 and the years ahead, according to the Internal Revenue Service.
The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to Individual Retirement Arrangements (IRAs) and to 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, the saver’s credit is available in addition to any other tax savings that apply.
Eligible workers still have time to make qualifying retirement contributions and get the saver’s credit on their 2008 tax return. People have until April 15, 2009, to set up a new IRA or add money to an existing IRA and still get credit for 2008. However, elective deferrals must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees. Employees who are unable to set aside money for this year may want to schedule their 2009 contributions soon so their employer can begin withholding them in January.
The saver’s credit can be claimed by:
Like other tax credits, the saver’s credit can increase a taxpayer’s refund or reduce the tax owed. Though the maximum saver’s credit is $1,000 ($2,000 for married couples), the IRS cautioned that it is often much less and, due in part to the impact of other deductions and credits, may, in fact, be zero for some taxpayers.
A taxpayer’s credit amount is based on his or her filing status, adjusted gross income, tax liability and amount contributed to qualifying retirement programs. Form 8880 is used to claim the saver’s credit, and its instructions have details on figuring the credit correctly.
In tax-year 2006, the most recent year for which complete figures are available, saver’s credits totaling almost $900 million were claimed on nearly 5.2 million individual income tax returns. Saver’s credits claimed on these returns averaged $213 for joint filers, $149 for heads of household and $128 for single filers.
The saver’s credit supplements other tax benefits available to people who set money aside for retirement. For example, most workers may deduct their contributions to a traditional IRA. Though Roth IRA contributions are not deductible, qualifying withdrawals, usually after retirement, are tax-free. Normally, contributions to 401(k) and similar workplace plans are not taxed until withdrawn.
Other special rules that apply to the saver’s credit include the following:
Begun in 2002 as a temporary provision, the saver’s credit was made a permanent part of the tax code in legislation enacted in 2006. To help preserve the value of the credit, income limits are now adjusted annually to keep pace with inflation. More information about the credit is on IRS.gov.
This information was provided by Joseph Patelunas, Owner, BPS Inc.
BPS-Inc.com
Here are today's interest rates, compliments of Sharlene Nally, Home Loan Consultant with Countrywide Bank, FSB.
Conventional 5.25%FHA 5.5%Rural Housing 5.0%SONYMA 6.5%
Rural Housing Program
100% Financing for Rural Housing
No Down Payment Requirements
Must be a single family home & located in a designated rural area
No minimum credit score required
No limit on Sellers Concessions
Fixed Rate, 30 year loan
Loan amount can include needed repairs and closing costs
If you have any questions, need more information or would like to know if a home you are interested in qualifies, contact Amy.
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