First time home buyer tax credit may expire soon

The government sponsored first time home buyer credit of $8000 or 10% of the purchase price of a home is set to expire at the end of November.

With recent national news that the real estate market is doing better, the government may think that extending the credit is not necessary. While I personally feel that the credit has been responsible for a lot of the positive news that is being reported, and that it should not only be extended, but expanded to include all home buyers buying a primary residence or legitimate second home. That may not be the conclusion of the congress or president.

Now I know it is only August, and  November may seem like a ways away…BUT…you must remember that the house has to close escrow before that date.

Which means with new lending rules and appraisal issues in effect, a first time home buyer is looking most likely at 45 days from the date an offer is accepted on a property. Then with many of these sales being bank owned properties (forget trying to close a short sale on a timeline), the time it takes from writing the offer to getting is accepted is probably a week.

So back that timeline up and a first time buyer needs to have found the right house by the end of September….and it now being the end of August…that is about 4 weeks left to find that first house.

So if you, or someone you know is sitting on the fence debating stepping into the housing market…have them call me or their favorite Realtor to see if now is the time for them.

Adam