The market in Denver has definitely changed in the last 6 months. I am working with several first time buyers in the $150K and under price range. Several of them are shopping in the western suburbs of Denver (Lakewood, Wheat Ridge, Arvada).

The few Single Family Residences that are available on the west side are primarily Short Sale and Bank Owned. As I prepare the offers and deliver them to the listing agents I am hearing that there are many offers submitted and often they are higher than asking price. This is causing some frustration for my buyers, as you can well imagine.

Many first time home buyers are in the market right now, trying to get their transaction closed before the end of the $8,000 first time buyer tax credit; so the competition in this price range is fierce.

Watch my managing broker, Charles Roberts, discuss the changing Denver market on ABC’s Nightline http://abcnews.go.com/video/playerIndex?id=8413830

And, Good News! This update on the possible extension of the First Time Home Buyer Tax Credit:

Daily Real Estate News August 24, 2009
First-Time Buyer Tax Credit Extension Possible
Bills to extend the maximum $8,000 tax credit for first-time home buyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.
Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, "It's something we can get done."
Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren’t as good, observers say.
Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

Lil Lively- Your Voice in Real Estate 303-746-8827

The First Time Homebuyer Tax Credit

There has been much discussion about the First Time Home Buyer Tax Credit being offered by the government. A few quick notes about how it works and then I will address some recent news articles.

The credit is for up to $8,000 and is a true dollar for dollar tax credit. What that means is that if the government owed you $500 for your tax refund and you were eligible for the tax credit, you would receive $8,500 total from the IRS for your refund.

There are limits on what income you can make but they are fairly generous. For instance, the credit does not begin to phase out for a married couple until their Adjusted Gross Income is above $150,000.

The credit does not need to be paid back if you own the home for three years or more.

Now, there have been some news reports that have been released recently indicating that the credit can be used for the down payment or closing costs. As of now you can not use the credit for your down payment but you may be able to use it for closing costs. It is important to understand the pros and cons of using it for your closing costs as you must initially take a second mortgage from a non-profit which can increase your overall costs of borrowing.

There was also a report recently that the government was going to increase the credit and offer it to everyone. It is very easy to get caught in the trap of waiting for something bigger and better and it is very possible that rather than increase the credit the government may just let it expire as planned.

The credit is available only on closings on or before November 30, 2009 so time is ticking away...