The complexity of new home buyer tax credits leaves potential buyers with many questions. Here are answers to some of the most confusing:

How does a current home owner qualify for the $6,500 credit?

Buyers must have lived in their homes for at least five out of the last eight years. The home they buy must become their primary residence, but buyers don’t have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.

This would give you an opportunity to build.

Does the new home have to be more expensive than the one the buyer currently owns?

 No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify. This also give you the opportunity to build.

Can buyers who are building a new home claim the credit?

 Yes, although the contract must be in place by April 30 and the buyer must move in by July 1. One option might be to look at new homes that are still being built or are complete but have not sold.

Can buyers claim the credit if they purchase a home from a relative?

No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,” including parent, grandparent, child, or grandchild.

Source: USA Today, Sandra Block (11/24/2009)

One piece of good news coming out of the “Great Recession” everyone needs to be talking about is the increasing affordability of housing. What that means to you is we have more opportunity to buy AND sell at the same time than we have seen in years.

The opportunity to sell is linked to your need to buy. If you are ready and willing to do what it takes. IF you take a hit on selling your home in today’s market, (Again, you can sell in this market.) then you will be able to purchase something bigger, nicer, newer, etc. by getting the seller of the property YOU want to take a hit on their end. A larger hit on your purchase could cover the costs that you lost on the sale of you home. Building a home is often over looked in this process and right now would be worth looking into. Lot prices have dropped and builders are looking for work, which mean a possiblity of added value to you on your bottom line.

Wanting to know what you can get built or what it would costs to build?