“The First Time Homebuyer Tax Credit expires on December 1, 2009, meaning that first time home buyers must close on their new home in less than 4 months if they’d like to cash in on the $8,000 credit.
For many first time homebuyers, November 30th is the new April 15th. Why? Because Americans love to procrastinate. Every year, we know that April 15th is on its way, and yet somehow, we always see the same picture: last minute tax filers.
The First Time Homebuyer Tax Credit throws an additional wrinkle in the procrastination pickle for the simple reason that buying a home is not as simple as rummaging through your files and scheduling an appointment at H&R Block. Not only can the process of finding a home potentially take a couple of months, but when you tack on the 30 days or so that it will take to close the home purchase (and considering the number of first time buyers who are about to take their last minute plunge into the market, this number may rise), you’re looking at a process that can easily take three months.
So what does it all mean?
It means we’re about a month away from seeing an overabundance of buyers hitting the market. Many of them will have the soon-to-be-disappearing $8,000 tax credit on their mind, and they’re going to be mighty anxious to get something under contract by mid-late October, so that they can close by November 30.
The result will be- at least for a short period of time- a seller’s market.
If you- or anyone that you know- is thinking about taking advantage of the credit, do yourself a favor and give a Realtor a call. Of course, I’d prefer that Realtor to be me– but regardless of who you call, by starting the process now you’ll position yourself to take advantage of what exists now: a buyer’s market.”