Buyers Act Now to Get Tax Credit

You probably know by now about the $8,000 first-time home buyer tax credit. You may also know that it expires soon.

Some form of the credit has been available for over a year now, but it is going away soon. To qualify, buyers must close on a home by November 30, 2009. While that date may seem far off, it is actually right upon us when you consider the timeline involved in buying a home.

The typical buyer spends six weeks searching for a home. That buyer then spends a few days negotiating and reaching an agreement with the seller. From that point to closing usually runs another 4 to 6 weeks. All together, the process takes about three months. The tax credit is only available for the next four months.

So now may be the time to start shopping for a home if you or someone you know is a first-time home buyer (and remember that a “first-time buyer” includes someone who has not owned for the past three years).

We are seeing a great many people take advantage of the credit. The tax credit, today’s reductions in home prices and great mortgage rates have all combined to create levels of affordability not seen since 2003.

For more information on the tax credit see our February 18, 2009 and June 3, 2009 blog posts.