Decoding the $8K Tax Credit for Consumers

For a struggling house market, the $8,000 tax credit has been an invaluable step toward recovery. But many potential first-time homebuyers are uniformed or confused about the specifics of this government initiative. Lack of awareness about these finer details can prevent new clients from recognizing the great opportunity of homeownership. It’s now up to real estate professionals to keep consumers fully informed. So what are some of the first things Realtors need to explain to the consumer?

1.)What is a first-time homebuyer? A first-time homebuyer can be anyone who hasn’t owned a principle residence in the last three years. If your client is married, this means your client OR their spouse. Clients need to know if they qualify. If they think the credit doesn’t apply to them at the get-go, they won’t bother asking about it.

2.) Is the credit really $8,000 and will it need to be repaid?
The credit is 10 percent of the home’s purchase price up to $8,000. It is a true credit and the only repayment requirement is if the home owner sells the home within three years of purchase. Remember, many of the new first-time homebuyers are from the Millennial Generation. They are marked by their skepticism and sometimes even cynicism. They are always looking for the catch. Be sure to communicate that the tax credit is, indeed, free money.

3.)Are there are income restrictions? The limit on income is $75,000 for a single person or $150,000 for a couple to receive the full $8,000 credit. Credit doesn’t phase out completely until income reaches $95,000 for singles or $170,000 for couples. By the time you’ve answered this question, you’ve probably got a qualified and interest buyer on your hands. Be forthcoming about exactly what the buyer will be entitled to from the tax credit.

To aid consumers in understanding their all options, RE/MAX recently released a comprehensive program aimed at connecting first-time homebuyers with experienced RE/MAX agents to get the answers and find how they can become eligible for the tax credit before it expires on Nov. 30. First-time homebuyers are a critical component of the housing market recovery. The more homebuyers that know about and take advantage of this credit, the less inventory we’ll have on the market and the more home prices will stabilize.

So how are you promoting the $8K Tax Credit in your market?

How Green is Your Valley?

Demand for green is growing nationwide, and so is consumer savvy on the subject. While some companies are embracing green as a trend and revamping their products and services to be environmentally responsible, others are “green washing”, attracting clients with pseudo-green business practices that are more marketing than reality.

In the housing industry, the business of sustainability is complicated, and the need for expert guidance from Real Estate Professionals competent in what makes a home energy efficient and environmentally-friendly is greater than ever. Real estate professionals well-versed in sustainability and green building are in the best position to provide value to clients and to educate them on the difference between green and green washing.

But before you launch your business into the green movement, determine if it’s worth your while by looking at your resources. Now we aren’t telling you to ignore environmentally-friendly business practices, just make sure the needs of your market justify any shift in your business plan.

Some places to get started

1.) Evaluate your market:
What is the demand for Green homes and sustainable features in your market? Better yet, what does the inventory look like? Are there city-spawned initiatives to enhance energy efficiency and sustainability? Talk to your colleagues and put the feelers out for any indication that buyers in your market are indeed interested in green homes, but may need the guidance of an experienced REALTOR to find what they are really looking for.


2.) Get Educated
More green educational opportunities are developing every year in the housing industry, from the NAR’s Green Designation, to the groundbreaking EcoBroker’s Green Designation and other green REALTOR education programs throughout the country. Do some research and find out which educational avenue suits your needs and your schedule. The designation will show your client that Green has more than a vague meaning to you. For our RE/MAX Agents, don’t forget that earning anyone of the NAR recognized designations entitles you to use of the RE/MAX GREEN marketing materials available on RE/MAX MainStreet.



3.) Hook up with a Builder or Green Remodeler
Builders appreciate REALTORS who express an interest in their product, and are interested in working with professionals who can best represent that product. Green builders are the best source for learning the smallest details about sustainability in building and are valuable contacts. A quick Google search can help you determine what’s available and where.


So what’s green been doing in your market? Leave a comment and let us know about local demand for greener housing practices and how it’s affecting business in your area.

Welcome!

Welcome to the RE/MAX of Texas Blog, a place where real estate professionals from around Texas and the globe can connect to share insights, opinions and tricks of the trade with the real estate industry. With our emergence onto the Social Media scene, RE/MAX of Texas is broadening its audience and speaking to Realtors from every facet of the industry regardless of franchise affiliation.

It's a difficult time for today's real estate professional, but a unique time as well. Historically low interest rates combined with the first-time homebuyer tax credit and variety of inventory have made 2009 the best opportunity for consumers to realize homeownership and one of the best possible value for their investment. Unfortunately, consumer confidence is still shaky and Realtors must work harder than ever to reassure the public. Sadly, many Realtors are leaving the industry to return to the security of the 9-to-5 work week, or embracing unemployment.

RE/MAX of Texas wants to stem the loss of professionals from our industry. That's why you'll find this blog reaching out to more than just RE/MAX agents. We want to connect and share ideas and inspirations with the whole real estate community. We want to know what's going on in your market, what you are doing to keep business going, how you are adapting to market changes and what new ideas you are embracing to continue your careers' success!

For our part, we'll be offering insights, tips, news and inspirations of our own to keep you motivated and conversing with each other. Our main goal in this blog is to stimulate conversation between Realtors and real estate professionals. This is the time and place to let your voice be heard!

Sincerely,

Richard Filip
CEO
RE/MAX of Texas