Recent article that ran about time running out for first-time homebuyers to claim the $8,000 tax credit…
Down to the Wire for the $8,000 Home Buyer Tax Credit
September 2009
Time is running out to cash in on the $8,000 first-time home buyer tax credit as the November 30 deadline approaches. Thousands of buyers have already taken advantage of this tremendous opportunity, but there are only a few short weeks left for would-be homeowners to act.
Today’s home buying process takes time. Lenders are being more cautious about approving loans and are scrutinizing borrowers’ financial information more closely. This means that the days of settling on a home in two weeks are long gone. The typical closing process now takes at least eight weeks – about 60 days. Home appraisals are taking longer, and home inspections and title searches must also be factored into the process. According to the West Central Association of REALTORS®, home buyers need to be realistic about the time it will take between searching for a home and closing on the deal.
“Homeownership is an investment in your future and shouldn’t be rushed,” Scott Kroepel, President, said. “Buyers who want to take advantage of the tax credit can save themselves a lot of stress and anxiety by getting the ball rolling sooner rather than later.”
Those who assume the government will extend the tax credit beyond the November 30 deadline could be disappointed and miss out, since Congress has not indicated that the tax credit will be extended. Kroepel says the wisest choice qualified buyers can make is to take advantage of current market conditions – high inventory, low interest rates and affordability – while the $8,000 tax credit is still available.
“The tax credit expires November 30, and that date is unforgiving,” Kroepel said. “Qualified consumers interested in buying a home should offer a contract no later than September 30 to take advantage of the credit.”
The tax credit may not be the only thing buyers miss out on by waiting. Recent statistics and trends show signs the market has already hit bottom and is rising again. Prices have stabilized in many areas and while interest rates remain historically low, there is no guarantee they’ll remain low. Current conditions may not last much longer.
“There has never been a better time to achieve the dream of homeownership,” Kroepel said. “Delaying the process could jeopardize obtaining the home you want for the price you want and receiving money from Uncle Sam in return. The clock is definitely ticking.”
The West Central Association of REALTORS, a local non-profit real estate trade association, has over 230 members in Newaygo, Lake, Mecosta, Osceola, and Montcalm counties. Affiliated with the Michigan and National Association of REALTORS, it is dedicated to education for professionals, promotion of home and real property ownership and protection of personal property rights through legislation.
