Monday, August 31, 2009

Tax Credit Deadline Looms for Sellers, Too

Home sellers in Oklahoma need to pay attention to the calendar just as much as home buyers, especially if they are in the first time home buyers' price ranges. The American Recovery and Reinvestment Act of 2009 enhanced the tax credit available to first time homebuyers but also provided for expiration of the credit if the purchaser does not close and possess the home on or before November 30.

This is important a home seller because a very large pool of buyers for their home could dry up if a purchase contract is not entered into soon. Fewer buyers that are available for you = Less demand = Lower price.

As of the start of the current Congressional recess, there were no less than 5 bills or resolutions in the US House and the US Senate seeking to extend, and possibly expand, the First Time Home Buyer tax credit. Jay Thompson of Thompson's Realty in Phoenix has a good synopsis on his blog. If one of these proposals survives (like Jay, I think one will), we can proceed past the current deadline. However, as a first time buyer or as a seller to one, do you want to risk this on what Congress might do? Or would you rather act on what we know right now.

The tax credit alone should not be the sole reason for a person to buy a home nor for one to sell their home to a first time buyer. But, if it is a part of your decision making process, you should act soon. There will be a crush of loans to go through underwriting and to close at the title company. Appraisers and inspectors will be booking up. And, of course, if anything comes up that can delay your deal past November 30, the credit is gone (as of now). So sellers, make your deal attractive now or you could be left holding your keys.

If you have questions about how a financing strategy can help you sell your home, call me.

Tim Epps

1 comment:

CoachingByPeter said...

Many may not perceived it but it is actually the best time to purchase a new home because of the advantages it offers such as lower price, lower interest rates, tax savings, more choices etc. So instead of wasting money in renting a place, buying something that can be an equity is far more better option.