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$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

In today's real estate market, sellers can no longer simply light some candles, bake some cookies, and watch those full price offers roll in.  No, those days are long gone.  Now you are competing with more homes on the market, along with foreclosures and short sales.  Oh but there is hope in all the doom and gloom and I'm going to give you some useful and inexpensive tips to help make selling your home a reality. 

1. DECLUTTER!  Go through every room of your home, including cabinets and closets.  Get a jump start on your move by packing up unnecessary items you can live without.  Don't forget to remove personal photos and religious items.  You want to expand your search to all home buyers and want them to visualize themselves in your home.  Don't let them be distracted by your personal items, belief, and taste. 
2. GO NEUTRAL!  Paint is the most inexpensive way to change the look of a room.  Outdated and bright wall colors can be a huge turnoff to buyers.  Neutral colors create a balance.  The buyer can better visualize their furnishings in their new home. 
3. CLEAN, CLEAN, AND THEN CLEAN SOME MORE!  Go through every square inch of your home and clean it and keep it that way until the day you close.  Another inexpensive but very effective tip.  Dust the ceilings, ceiling fans, furnishings, wall decor, light bulbs, vents, etc...every square inch.  Make sure there are no stains anywhere.  Everything needs to sparkle and shine. 
4. UPDATE!  If your budget allows, update any outdated fixtures in bathrooms and kitchens.  Purchase inexpensive slip covers for outdated sofas and chairs.
5. STAGE YOUR HOME!  I have many examples and tips of this on my website.
6. CURB APPEAL!  Don't forget the first impression the potential buyers receive is when they drive up.  Make sure the outside looks as great as the inside.

If model homes are available in your area, I recommend previewing a few to see how the above tips can work for you.  After your home is market ready, contact your Realtor for a comparative market analysis.  Let your agent guide you in setting the right price for your home.  You've come along way to get to this point, so make sure you don't overprice your home. 

I hope you find this information useful and wish you success in the sale of your home.