Hampshire offers rebate to new homebuyers

While first-time homebuyers can take advantage of the federal government's $8,000 tax rebate, those in the market for a brand new home could find Hampshire's incentive enticing as well.

The village is offering a $3,500 rebate for buyers of qualifying new construction homes in an effort to spur property sales, Village Administrator Eric Palm said.

The rebate amount is about 75 percent of the transition fees homebuilders pay to the village. Those fees are distributed among the major taxing bodies, including the village, and school, fire protection, park and library districts, until the property's tax rate is stabilized.

"Next spring, when new construction will hopefully rebound, we can use this as a tool or incentive for folks to move to Hampshire," said Palm, who said the idea is modeled on a similar rebate program used in south suburban Manhattan.

Village President Jeffrey Magnussen said so far no homebuyers have qualified for the rebate.

"We have had a few inquiries at village hall from people trying to figure out if it applies to already constructed homes," Magnussen said. "There were some homes sold in Lakewood, but they were not eligible for the program because permits were already paid for."

Village officials said rebates will be available until Dec. 31, 2010.

"We want to spur some home sales. The village's projected growth of years ago is much further ahead than where we are," Magnussen said. "Homebuilders are struggling and this might help get some people off the fence."