Time is Running Out

The deadline for the $8,000 first-time federal home buyer tax credit is quickly approaching. In order to qualify for the tax credit your transaction must be completed or closed by the deadline of November 30.

With the deadline quickly approaching what’s going to happen if the contract you have on a home is not completed by November 30th?

This very question could effect thousands of people and thousands of transactions especially if the home that you have dreamed of purchasing is in a short sale situation.

Right now its hard to say with any certainty if the tax credit will be extended but my professional opinion is that it will for how long and what dollar amount is the real question. Currently there is legislation on the table to extend the tax credit and broaden the scope of those that would be able to take advantage of it.

According to Charles McMillan, president of the National Association of Realtors, “the tax credit has been working beautifully, helping push home sales higher in April, May, June and July. We estimate that up to 2 million first-time home buyers will take advantage of the $8,000 tax credit this year-with about 350,000 of those sales coming as a direct result of the credit. The delays we’re all experiencing as a result of distressed sales and new appraisal rules mean that many buyers probably won’t make the November 30 closing deadline. That’s why we’re asking Congress to continue the credit and expand it all home buyers”

For those of you waiting until the last minute keep in mind that the normal time frame to purchase a home from start to finish takes 30-45 days, which doesn’t include house hunting. With some of the new regulations put in place, especially with appraisers, transactions are averaging close to the 40 day mark. Which means you have about 3 weeks max to find that first home you’ve dreamed of and worked so hard for all these years putting you one step closer to your slice of the American Dream.

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