WHY YOU SHOULD MOVE NOW !

I listed a Condo this week. This in itself was not so unusual but while I began to share all the reasons that I thought this was excellent timing for my seller, it occurred to me that most people don't know or understand why this is possibly the best time to move up into their dream home or move down into a smaller retirement home, here in Martin County. My seller had heard about the new $6,500 Federal Tax Credit, tax portability and the current low interest rates, but she didn't really have all the details. She just wasn't sure how all of these new programs would benefit her.

First, the Federal Tax Credit has been expanded to existing homeowners who have owned their primary residence for a minimum of 5 years. However, anyone utilizing this program needs to hurry as we have a very tight time frame; we must be under contract by April 30, 2010 and closed, with extension by June 30, 2010. That means we need to sell the old place and close on the new home by the end of June. While that seems like plenty of time - in the real estate world, it really isn't.

Second, in Florida we now have Real Estate Tax Portability or “Save our Homes”! This is a huge change. In my opinion, prior to this change, this is one of the main reasons that most people have resisted to change residences. In the past, if you sold your homestead property and went into a house of the exact same value in Florida, your taxes would be recalculated and recapped at the new value. In other words, your taxes could effectively double, triple, or more - even if you went down in value. Another great improvement is that the overall homestead exemption of $25,000 has now increased to $50,000. The Homestead Exemption is $25,000 that is deducted from your assessed value before the taxes are calculated plus an additional $25,000 Homestead Exemption above $50,000. The additional exemption does not apply to school taxes. Therefore in a scenario where someone sells their current home and purchases either a smaller or larger home and takes advantage of the portability and all of the applicable exemptions, they could for the first time in years be looking at a favorable real estate tax situation.

Non-homestead properties may also now be capped at 10% annually. This is another great reason for non-residents or investors to buy here this year with prices down and cap the property taxes based on these lower values.

Third, interest rates are at an all time low. One of my clients just closed at 4.875% on a 30 year fixed rate mortgage. Another buyer closed at 4.25% on a 15 year fixed rate!

Put all of these factors together and we should have a very healthy turnaround in our market for the foreseeable future. We have an abundance of first time and seasonal buyers here in Martin County. We also have minimal inventory currently in the lower priced range homes as we were not hit nearly as hard with the short sales and foreclosures as our surrounding counties. So, if you have been fence sitting and waiting for a good time to sell and then repurchase here - now in my professional opinion is the time. Remember to always consult your tax advisor regarding your specific needs and necessary procedures when calculating the benefits of portability, exemptions, and tax credits.

For more information and links to learn more, please visit www.sarahsellsflorida.com or call Sarah Pietkivitch at 772-214-4420

Sarah Pietkivitch is a Real Estate Broker/Associate with RE/MAX of Stuart. She holds Broker licenses in Florida and her home State of Wisconsin where she owned and managed a highly successful RE/MAX Office. Sarah earned a degree in Real Estate and is an Accredited Buyer Agent Manager, Certified Residential Specialist and a Graduate of the Realtors Institute. She has also held a Certified Relocation Professional designation and is a member of Employee Relocation Council. Sarah is an active member of the Martin County Chamber of Commerce.