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You would think that it would be an obvious decision that a seller would be willing to make a counter offer. Being investor’s we would not waste any time and simply move on to the next property, in search of a more cooperative seller.

As investors we are in search of a couple of things. A good property to invest in and a seller that is willing to help negotiate a win-win deal.

Keep this in mind when you may want to sell a property. A seller should want to help a buyer achieve their goals.

To solve you’re problems and reach you’re goals, you should be willing to help others to do the same.

Hans Anderson

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In a buyer’s market there are more properties available then buyers. Properties tend to stay on the market longer and prices go lower.

It is a lot harder to sell a home in this type of market. A market like this often forces sellers to get more creative. They may have to add incentives such as taking back a mortgage to attract buyers.

You will get buyers who will just ask for incentives knowing that there is a seller who will be willing to meet their demands.

In a buyers market the seller usually doesn’t get the price they were asking for.

In a seller’s market, there are more buyers then homes available to purchase.

Prices will rise in this kind of market and houses will change hands a lot quicker. In this market sellers tend to get the highest value for their property.

It’s posible to have multiple buyers bidding on the same property, driving the price up. Sometimes even over the initial asking price.

Hans Anderson

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*Is there a time limit to purchase to qualify?

When you buy a home between Jan. 1 and Dec. 1 this year (2009) and close escrow during these dates, you will qualify for an $8,000 tax credit. Remember it has to be your primary residence and you meet the simple requirements.

*In the eyes of the law what is considered a “first-time homebuyer”?

The law defines “first-time homebuyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

*Are there any other requirements to qualify?

If your a U.S. citizen who files taxes you are eligible to participate. There is an income limit of $75,000 a year for individuals and you can’t go over $150,000 a year for joint filers.

*How do I apply for the credit?

You should use IRS Tax Form 5450 to claim the first-time home buyer tax credit.

*Does the credit have to be repaid? No it doesn’t.

Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.

*Can I use the tax credit toward a down payment or other closing costs?

Yes. An announcement made May 29 allows the tax credit to be used toward purchase costs of a home, including down payment in some cases. This can be done one of two ways. First, buyers using an FHA-approved lender can sell their anticipated tax credit to the lender and use the proceeds to immediately apply the tax credit to any down payment above the minimum down payment of 3.5 percent required with FHA-insured mortgages. Second, buyers who receive financing through state housing finance agencies and certain non-profits will be able to use the tax credit for their down payments via a tax credit advance loan that does not result in any cash back to the buyer.

It’s a good idea to contact your local IRA branch to verify that nothing has changed from what I posted here.

United States Foreclosure

Hans Anderson

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Make no mistake we are in a buyers market.

There are plenty of opportunities to make money investing in real estate in the United States and Canada at the present time.

I predict that more millionaires will come out of this then in any other time in real estate history.

Surround yourself with a great team. Get the knowledge you need to create your fortune and get in the game.

Hans Anderson

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