Get it Straight: The Homebuyer Tax Credits

There seems to be quite a bit of misinformation floating around regarding the First Time Homebuyer and Move Up/Repeat Homebuyer Tax Credits that are being offered right now.    I have even heard both local and national news outlets misrepresenting the guidelines regarding these two incentives, so I thought it would be worth while to take a minute to answer a few Frequently Asked Questions.

First off, in order to qualify for the tax credit you MUST have a property Under Contract by April 30, 2010 and close by June 30, 2010.  Someone told me that she is planning to list her home later this Summer – I asked her why she was waiting, since she would qualify for the Move Up/Repeat Homebuyer Credit, basically meaning $6,500 for selling the home she has lived in for more than five years, and purchasing a new one.  “Well, I’m sure they are going to extend it again,” she said, “I think that they might even make it permanent.”  UMMMMM….NO.

Most industry specialists think that this is the last hurrah as far as Homebuyer Tax Incentives are concerned – it was difficult to push the extension through the last time, and there is absolutely no buzz that the credits will be extended any further.

SO, if you are considering a purchase, start looking NOW – inventory is LOW, and prices and interest rates are going up slowly but surely.  Most deals are taking 60-90 days to close right now, instead of the traditional 30 – and if you don’t close by that June 30 deadline, you are not going to get a tax credit.  I don’t know how to say it more clearly.

And, if you are thinking of selling your current home in order to take advantage of the offer for Move Up buyers – get your house on the market NOW.  For the same reasons as above – inventory is low, and your house will not have much to compete against.  Contact me if you have questions about what your house might be worth, what needs to be done in order to get top dollar, or if you are considering a move. 

If you would like more information about the Tax Credits, check out the official website at http://www.federalhousingtaxcredit.com/home.html - it’s a great resource and has loads of information about both the First Time Homebuyer and Move Up/Repeat Buyer Tax Credits.