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Asked by Andrea Pearson, Tempe, AZ Mon Dec 3, 2007

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Answers

9
Roberto Ribas, , Scottsdale, AZ
Wed Jul 23, 2008
well, prices have dropped some 15 to 20% in the six months since all these dopey realtors advised you to buy... Buy when the price to buy seems reasonable with the rent the home would cost, the tax writeoff is not as big a deal as realtors try to make it out. First off, when using mortgage interest as a writeoff, it replaces your standard deductions. That is already a fair chunk of it for most people. Second off, it isn't a credit its a deduction, so say you have 15K in mortgage interest, and your standadr deduction was, 10K or whatever (i think married is slightly more) well, you are only getting to deduct an addtional 5k, and if your tax rate is 30%, you saved $1500 for the year. Likely, home maintenance which nobody ever mentions will be more than that.

I have many resources to help evaluate whether or not you should buy. Feel free to contact me, and I will send them to you for free. You don't even have to promise you use me when you buy, I am that confidant that honest advice is more valuable than typical realtor, "you should buy now" nonsense.
0 votes
Brian Bell, Agent, Las Vegas, NV
Sat Dec 15, 2007
Hi Andrea,

Of course for tax reasons, buy before the end of the year. If I were you, I would buy in December as the sellers seem to be more anxious to get rid of their properties and start the new year off without the burden of selling over their heads. In other words you will probably get a better deal then if you wait till January. On the other hand...traditionally more homes come onto the market after the turn of the year so, if your tax situation is ok and you want more to choose from and you may want to wait till January.
Good Luck!
Brian Bell
"The Real Estate Guy"
http://www.bellhomesaz.com
480-695-7036
Web Reference:  http://www.bellhomesaz.com
0 votes
Eric Mabo, , Atlanta, GA
Wed Dec 5, 2007
May want to buy before January if possible, as you may be able to get a better deal. There are fewer home buyers in the market during the christmas season
Web Reference:  http://www.doyenrealty.com
0 votes
ILONA POKA, Agent, Chandler, AZ
Mon Dec 3, 2007
HI Andrea

There are some great tax advantages for 2008 taxes if you buy a home before the end of the year. Sellers and builders are also more anxious to have their house sold or inventory off their books before the end of the year.
Best of Luck!
Ilona
Web Reference:  http://www.ilonapoka.com
0 votes
The Amy Jones…, Agent, Chandler, AZ
Mon Dec 3, 2007
Tax implications aside, December is typically a very slow month in real estate due to the holiday season. As a buyer, this puts you in a strong negotiating position since there aren't a lot of buyers and there are a lot of sellers looking for an offer.

After January 1st, we typically see an increase in activity, both in new listings and buyers writing offers. The upside of this is you will have even more homes to choose from, yes...even more than the 55,000+ homes currently on the market. The downside is you may actually have to compete with another buyer for the home you fall in love with.

So, if you find a home now that you love...go for it. No time like the present. However, if you're settling on a home that's not quite right...wait. You'll probably have more to choose from after the first of the year.
Web Reference:  http://www.amysellsaz.com
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Dean Carver, Agent, Chandler, AZ
Mon Dec 3, 2007
Hi Andrea,

On re-sale homes it's a toss up and depends where you are shopping. New construction on the other hand is a great place to buy before the end of the year. For instace we have put a couple clients under contract on homes closing prior to Dec 31st or 1st week in Jan and they received $45K off and a new flat screen and $150K off the asking price. Some builders need to move the inventory or go under contract because their fiscal year ends in December. Some also ended in November but are still trying to move inventory. Feel free to contact us with any questions by clicking the URL link below.

Dean Carver
Web Reference:  http://www.carverht.com
0 votes
Mr.P, , Arizona
Mon Dec 3, 2007
Andrea, It is before or after December 31st. Of course I am not a CPA, or Tax Attorney.

My opinion would be to close in 2007, and write off as much as you can. Closing cost, moving expenses, etc..

In 2008 you will still be able to write off the years interest.

The big question is do you need the tax write off this year, or do you plan on making ( of course ) more money next year.

Roughly you will only see a few hundred bucks from closing this year.

It`s two half dozen of one and twelve of the other.

Anyways congrats on the new place

Now if your question is about placing an offer to bujy a home, before Dec 31st. Actually between now and the 23rd
What a great Holiday it would be for a seller to have a contract.

Patrick
0 votes
Dan Mullarkey, Agent, Scottsdale, AZ
Mon Dec 3, 2007
The only advantages would be in taxes, the market will be about the same. You might stand a better chance of getting a lower offer accepted if a seller is pinched right before Christmas.
Web Reference:  http://www.danmullarkey.com
0 votes
Erin Stumpf…, Agent, Sacramento, CA
Mon Dec 3, 2007
Well you might want to consult a CPA to discuss any possible tax advantages for 2007...however if you are purchasing a home and close escrow on December 31st vs some time during the first week of January, your out of pocket prorations for tax and pre-paid interest will be different. Closing by December 31st may cost you less out of pocket.
0 votes
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