Life after homeowner's tax credit - NBC12 - WWBT - Richmond, VA News On Your Side

Life after homeowner's tax credit

By Yvette Yeon - bio | email

RICHMOND, VA (WWBT) - Just because the tax credit incentive ends in two days doesn't mean sellers are doomed. There's still a lot of inventory out there and market experts say if you play it smart, your home will sell.

Lakeside resident, Bret Randolph, sold his house in 2 weeks. His buyer just made the deadline and now both parties are thrilled.

"It feels good. I'm actually buying another house so, but I don't qualify for the tax credit," said Randolph.

Randolph won't get a tax credit, but that won't stop him from buying another home - exactly what experts from the Richmond Association of Realtors are saying.

"The smart buyers, whether or not they can take advantage of the credit, are going to still be out there in May, June, July, getting their homes before rates tick up," said Laura Lafayette, CEO of the Richmond Association Of Realtors.

If there is any concern, it's that interest rates are starting to climb very slowly. It's at 5.1 percent. Last year you could have purchased a home with an interest rate of somewhere in the 4 percent range. Experts say eventually rates could climb into the 7 percent range.

Lafayette says the economy is starting to take a turn for the better. More reason for the sellers to bring their A-game.

"What will be in play is continued significant inventory so the buyer have great deal of choice, sellers need to price the house right, and they need to have the house in excellent condition," said Lafayette.

Randolph said he sold his home just about $9,000 below the asking price.

"I priced it to sell plus it's completely fixed up and in move in condition, and I think that helped a lot," he said.    

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