Houses for Sale in San Diego – San Diego homebuyers who are hoping to save up to $10,000 on houses for sale in San Diego do not have much time left to file an application to claim the first time homebuyer tax credit. As of June 15th, the California Franchise Tax Board reported they have received approximately 15,220 applications worth an estimated $78.1 million in tax credits. The $100 million in funds for the first time homebuyer tax credit program is available on a first come, first served basis to homebuyers who have closed escrow on homes for sale in California.
Since the program’s inception just over 7 weeks ago, the California Franchise Tax Board has been receiving an average of 2,500 applications per week from first time homebuyers who have purchased California homes. To be considered a first time homebuyer, you may not have owned a home as a principal residence during the previous three years. Homebuyers will receive up to a $10,000 tax credit or 5 percent of the purchase price of the home, whichever is less. According to the California Franchise Tax Board, the average tax credit for first time homebuyers is $5,700.
On June 17th, the California Franchise Tax Board announced the estimated numbers have been overstated because they anticipate issues will arise such as duplicate, revised, and invalid applications. They have not yet processed or verified any of the applications because their computer system is still being developed. To ensure they receive enough applications to allocate the entire $100 million, they will accept 28,000 applications from first time homebuyers. If the average rate of 2,500 applications per week continues, this means first time homebuyers have approximately 5 weeks left to close escrow on homes for sale in California and file for the tax credit.
However, just because an application has been filed, it does not guarantee the request will be approved and the credit will be received. The additional applications will be subject to the availability of remaining program funds. Once an application has been approved, a certificate of allocation will be issued and the tax credit for the homeowner will be guaranteed. According to the California Franchise Tax Board website, once their computer system is completed, they will post weekly updates regarding the number of certificates they have mailed and how much of the credit has been allocated. The website also indicates the California Franchise Tax Board will announce the cut off date for accepting first time homebuyer applications at least one full day in advance.
Another new announcement on the California Tax Board Franchise website is the first update for the new home credit, which was issued on June 15th. San Diego homebuyers who purchase brand new homes for sale in San Diego to use as a principal residence can apply to receive the tax credit from the $100 million which has been designated for the new home credit portion of the program. Homebuyers may make a reservation to claim the new home credit as soon as they have signed a contract to purchase a home. Buyers who purchase newly built homes have until August 1, 2011 to close escrow on their San Diego homes and receive their reserved tax credit. As of June 15th, the California Franchise Tax Board reported they have received 1,930 reservation requests and 3,700 applications for the new home credit and an estimated $36,360,000 has been claimed.
If you are interested in buying San Diego real estate and saving up to $10,000, begin your search of houses for sale in San Diego today. As the saying goes, time is money and the time you invest now can save you thousands of dollars on homes for sale in San Diego if you are able to cash in on the California first time homebuyer credit or the new home credit. Search the San Diego Multiple Listing Service (MLS) for homes for sale in San Diego on your own, or contact San Diego Realtor and Broker Russ Petrone of Petrone Properties Real Estate Associates at 858-259-1000 to have a customized search of the houses for sale in San Diego designed for you based upon the specific criteria you require for your San Diego home. With 25 years of experience in the San Diego real estate market, Russ has a thorough knowledge of the various communities and regions throughout San Diego County. Russ can help you find the perfect San Diego home to meet your needs and desires.