New 2010 CA Homebuyer Tax Credit

Today Governor Schwarzenegger signed Assembly Bill 183 providing $200 million in new tax credits to California homebuyers. The total will be split evenly between first-time homebuyers of existing homes and buyers of newly constructed, previously unoccupied homes. Qualified buyers will receive a credit for 5% of the purchase price of the home, up to $10,000. The credit is spread in equal amounts over three years, starting with taxes for 2010.

If you time it just right to have your offer accepted before April 30 and close escrow between May 1 and June 30, you may be able to use the Federal Homebuyer tax credit too.

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Bank Owned Beauty ?

1315 11th Street (4br/5ba, 3471 sf) was just listed (again) today for $1,470,000. It is a new REO listing for a 2007 home that has been mostly on the market for the last two years. If you're a little handy or willing to pay someone to replace the missing kitchen and bath fixtures, this could be just the home for you! The pictures posted to the MLS do not hide its unfortunate situation. The property is being sold as-is with no disclosures, so don't expect the owner to offer any credits for the missing fixtures. Figure the additional cost to make it livable in your offer.

It was previously listed as a standard sale for $1,550,000 in August 2009. The listing was cancelled mid-January after 157 days on market. At the time of that listing, it had a "Custom Kitchen: Incredible foreign counter tops, Cherry cabinets, La Cornue stove with a Viking Hood, Dacor coffee station, and Double ovens." I'm guessing it will take more than the $80K reduction from the previous price to make up for what is missing.

The last agent to actually sell this property sold it with the previous house for $999,000 in early 2006. That buyer built the home shown in the photo and has been trying to sell it since February 2008. It had an initially optimistic price of $1,979,000 that was reduced to $1,779,000 before the listing expired in July 2008. It was offered again from September 2008 through April 2009 for $1,589,000.

Anyone want to venture a guess what it will finally sell for?