Realtors say tax credit a boon to home buyers

Local real estate brokers say the stimulus package's first-time home buyer $8,000 tax credit is a boon to buyers, although it isn't having the same effect across the north country.

In Ogdensburg, Blue Heron Realty broker/owner Jennifer Stevenson is seeing a new segment of first-time buyers.

"I'm seeing some people who are not your average first-time buyer, maybe in their 40s or 50s, who have never owned a house before," she said.

She said prices have been steady, but low interest rates and the tax credit are attracting potential buyers.

The brokers warned that the tax credit is for those who haven't owned property in the past three years and are buying a principal residence and for individuals who earn less than $75,000 a year or couples who earn less than $150,000.

The credit will translate to $8,000 or 10 percent of the purchase price, whichever is less. A credit deducts, dollar for dollar, what taxes a person must pay and can increase a refund. The credit is available to sales that close by Dec. 1 and can be claimed on the 2009 year's tax form.

The Fort Drum market isn't experiencing as much impact as areas farther from the post.

"What stimulates our business here is Fort Drum," said Thomas N. Humes, owner of Humes Realty and Appraisal Service LLC, Black River.

He said the area's market has picked up because of returning or incoming soldiers.

"Many of them already had homes and they sold them before moving here," he said. "They're getting 100 percent financing anyway because of the VA bill."

He said the market for houses ranging in price between $65,000 and $150,000 is still pretty brisk. More expensive houses are having trouble selling.

Many brokers away from Fort Drum are advertising the credit, expecting that new buyers will catch on to the idea of buying a house. Many have placed add-ons on their "For Sale" signs mentioning the tax credit. Blue Heron has created a pamphlet on the credit. And the National Association of Realtors has a Web page devoted to the credit.

Ms. Stevenson said to close by Dec. 1, buyers must have a contract in place by the end of September or beginning of October. She said customers who are taking advantage of the credit plan to use the money to make a large lump payment on their mortgage early next year or make necessary updates or remodelings of the purchased house.

Patrick J. Henry, associate broker and office manager at Christensen RealtyUSA.com in Clayton, said the credit is the bow on top of a present.

"It's not the thing that kind of kicked them over to buying a home, but it's just one more reason for them to do it this year," he said.

He said he's starting to see people speeding up their plans to buy a house to get the credit.

"It's a great time for home buyers," he said.

He cited good prices, good inventory and the credit.

"It's one of the best things the government has ever done for housing," he said.