3 Great Reasons to Buy a Home in Wasilla, Palmer, & Anchorage in 2009

Everywhere you go you are hearing the same thing “…wow, the real estate market is really taking a beating. I need a new home, a bigger home, or one that is closer to my job, but I think I will just wait out the market. It’s got to get better, right?” We hear it in the grocery store, at sporting events, barber shops, and the nightly news broadcasts are reinforcing the negativity. You want to buy now, but is this the right time?

Here are three solid reasons why the time to buy that home is NOW!

1. The $8000 housing tax credit. There are six things you need to know about the $8,000 first-time home buyer tax credit. 1. This credit is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000 and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid. 2.  For the purpose of this legislation, a “first-time home buyer” is someone who hasn’t owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you’ve owned a vacation home–but not a principal residence–within the past three years, you would still qualify for the credit. 3. Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won’t be able to take advantage of it. 4. The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.  5. Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability. In other words this tax credit will be refunded to a buyer, if this year end tax liability is less than the credit. 6. Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

2. Lower Interest Rates: With the new $8,000 housing credit, it might be a good time for you or any of your home buying friends to consider buying; especially with interest rates so low.  The lower interest rates mean more buying power for you.  For Example:

Interest Rate Years Monthly P&I Payment Mortgage Amount (Buying Power)

4.8% 30 $1049 $200,000

5.8% 30 $1049 $178,837

6.8% 30 $1049 $160,980

To start taking advantage of this tax credit and interest rates that are at all time lows, start shopping on our www.KristanCole.com and see all homes for sale in the Multiple Listing Service. You can also check out our Best Buy List and sign up to receive our list of Bank Owned and Foreclosed Properties.

3. $7500 rebate from Alaska Housing for a new home with a 5 star energy rating: If you purchase a newly built home with a 5 star energy rating on or after April 5, 2008, Alaska Housing has a $7500 REBATE application. Call Alaska Housing at 1-800-478-2432 and ask for the rebate Program manager or call the Rebate Manager direct at 330-8183, or go online www.ahfc.state.ak.us/energy.

You may never see a better time to buy your dream home. There is currently a good inventory of homes available, sellers are motivated to sell, and there are incentives to buy. In a normal market we would tell you that a “good deal” and a “good home” were mutually exclusive, but not today. We saw a similar opportunity in the late ‘80’s, but we may not see this opportunity again for years to come. Don’t be one of those buyers next year who say “…gosh, I sure wish I had bought our dream home in 2009!” Don’t let this opportunity pass you by. Call The Kristan Cole Team today at 907-373-3575 or go to our website at www.KristanCole.com and see ALL homes for sale including foreclosures and bank owned homes.