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Up to $500 for Doing Home "Work"
The energy-efficient home upgrades tax credit is scheduled to expire on December 31st this year. If you need to make improvements to your home, this could be an incentive to do it before the end of the year. If you have already made qualifying improvements without realizing the tax credit is available, it may seem like a holiday gift you weren't expecting.
The equipment must be installed to qualify for the credit which can put you under a time crunch. Heating and cooling systems, insulation, windows, doors, skylights, water heaters and home weatherization may qualify.
The Residential Energy Efficiency Tax Credit has been available for purchases since January 1, 2011. The tax credit is 10% of up to $5,000 of qualifying improvements which would make a maximum of $500 tax credit.
The cumulative maximum amount of tax credit that can be claimed by a taxpayer in the different years this law has been in effect is $500. If it has been claimed in previous years, the taxpayer is not eligible for this credit for additional new purchases.
For more information, see energy.gov or talk to your tax professional.
Motivated Sellers, Better Prices and Less Competition
The Winter Home Buyer Report conducted in the second week of November by REALTOR.com® revealed the sentiments of current home buyers expecting to buy a house during the winter months. It appears that there is pent-up demand with buyers who were unable to purchase a home recently.
Most cited as an impediment to purchase was the challenge of low inventory. Strong demand coupled with short supply explains why home prices have been increasing.
"This summer and spring home buying season was particularly challenging for buyers, especially first-time home buyers trying to compete with all-cash offers and bidding wars because of reduced inventory. In fact, a quarter of the winter home buyers revealed they are in the market now because they were unable to find a home during this last home buying season," said Alison Schwartz, vice president of corporate communications at REALTOR.com®. "While buyers are still experiencing challenges with inventory and approximately one in five buyers plan to put down all cash, there are advantages to looking for a home in the winter. Motivated sellers, better prices and less competition between buyers are some of the top reasons winter home buyers are interested in purchasing a home during the colder months of the year."
Some interesting statistics taken from the report are:
Biggest challenges when searching for a home during winter:
• 34 percent shared that there is not enough inventory on the market • 29 percent believe that winter weather makes house hunting unpleasant
Traditionally, the industry has found that the fourth quarter of the year has a lower sales volume and is generally attributed to distractions from the holidays and not wanting to make a move during consistently inclement weather. Even in areas that are not affected by extreme winter weather, there seems to be a mindset about moving in the winter.
Indications are that it may be advantageous for sellers to put their home on the market now rather than wait until after the first of the year.
