Buyer Frustration Over $8,000 First Time Home Buyer Tax Credit
US Treasury Check
Buyers are becoming more and more frustrated about obtaining the $8000 tax credit which is given to first time home buyers (haven’t owned a home in the last 3 years). The deadline to close on a home and receive this credit is November 30, 2009. This gives buyers very little time to find a home, go to contract, and close by the deadline. This has caused many buyers to overlook short sales which can take months to close and to go for the bank owned homes which can close sooner. This has created a huge demand for the nice bank owned homes with buyers competing for the same home and multiple offers, resulting in the bank owned property going to the buyer with the “highest and best” offer. In the case of the homes which are desirable, Realtors are seeing that these homes are selling for well over the listing price, and cash seems to be winning out over higher FHA bids.
Now the question for many buyers is, will the tax credit be extended? There’s a lot of speculation on this, but Congress remains mum on the question. Some sources inside the White House say that it will be extended for six months, but when will buyers have an answer? The tax credit has definitely spurred sales and helped to rid the market of some of the excess inventory. Folks who just want to do a normal sale still can’t compete in general with the prices on the short sales and bank owned properties. An extension of the $8,000 tax credit would not only help normal sellers, but for a while, buyers could even enter into a short sale knowing they had enough time to possibly close on a home by the extended deadline.
As the deadline approaches, buyers anxiously await a decision from Washington on whether the tax credit will be extended. It could be all over on November 30, 2009.
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