The End of the Tax Credit…Again.
As you may recall, The Worker, Homeownership, and Business Assistance Act of 2009 extended the $8000 tax credit for first time home buyers and also created a $6500 tax credit for repeat home buyers. Depending on who you talk to, this program has been successful in stimulating home sales during its 5-month run, and also during its prior iterations as a $7,500 credit that had to be repaid, and an $8,000 credit that didn’t and was subsequently extended and expanded to its current form. However, questions were raised as to whether or not the homes that have been purchase during the credit period would have been bought anyway.
Who knows. In our opinion, the tax credits have run their course and outlived their usefulness, but as to whether or not they’ll be extended again…well, as someone said, “there’s nothing more permanent in Washington than a temporary tax credit.”.
Regardless, the time is rapidly approaching for this version of the tax credit to sail off into the sunset, and again, depending on who you talk to, it’s either a good thing or a bad thing. There have been scores of rumors floating around the web as to whether or not the tax credit will be extended, but nobody really knows for sure. There are signs that it may be a decidedly uphill battle for lobbyists to get lawmakers to approve another extension. For one thing, the Senator who spearheaded the effort to get the tax credit extended in the first place, Johnny Isakson (R-GA), has said that there will be no further extensions. His spokesperson stated that part of the benefit of the credit was the need for it to expire. In order to secure another extension then, it would seem that lobbyists would need to find another champion for their cause, which looks unlikely.
In case you’ve forgotten, in order to qualify for the tax credit, you must have a signed sales contract by April 30th, and your closing must take place by June 30th. That critical date, April 30th, is what our countdown clock displayed above is inexorably counting down to. So, if you’re looking to cash in on any of this free money, you’d better hurry – time’s a wastin’.
But wait. Before you run out looking for a deal on the home of your dreams, ask yourself if you’re buying just to get the credit, or are you really, truly ready to buy a home? A hasty decision can result in some particularly painful regrets. Of the 30 year variety. So if you have no need of the tax credit, taking your time to think things through is probably the most prudent course of action.
However, if you’ve thought through your situation, talked it over with all the involved parties, discussed your financial status with your accountant and/or lender, and really, REALLY feel this is the time to buy that first, or next, house, then by all means, go for it. Remember though, although you have a few weeks left on the clock, make sure you leave yourself a window of time to account for the search process, locating a Realtor, making an offer, negotiating that offer, and having it possibly REJECTED, in which case you’d have to start all over. Then the stress factor goes into overdrive.
Either way, Harriman Real Estate is at your service. Call us today at (203) 672-4499 and let us help you find the perfect home for you!