The Tax Credit expires today. For some people that means it is $8,000 Friday…for others it is $6,500 Friday, but any way you slice it is a very important day for many people who are currently buying homes.
Oddly, given I have not and never would have, advised my clients to buy to get a tax credit, two of my clients are in “issues” involving the tax credit expiring today, somewhat coincidentally.
There are many buyers who just happened to find the right home that just came on market last week or this week, who are biting their nails waiting for a seller response “by 4/30”. If the seller is a bank or someone out of State or out of Country, this is a serious concern today.
There are other buyers who have a signed around contract before 4/30/2010, but who are in the process of negotiating the home inspection. Cancelling on inspection for a $3,000 item, and losing an $8,000 credit as a result, is part of the decision process on inspection negotiations today for many people. If they choose a different house next week vs. the one they currently have in contract, they lose the opportunity of the tax credit.
Any way you slice it…the clock is ticking…and weighing heavily on many, many people today. For those in a “gray area” as to being eligible for the credit, and there are many and varied gray areas, it is even more difficult.
In my opinion, it IS part a an agent’s job to help you preserve the right to that tax credit, and work hard to that end today. It is also part of their job to lay out the consequence of cancelling on inspection in the next several days and buying a different house instead. But NO agent can guarantee one way or the other that you WILL in fact get the credit. We can only help preserve your right to request it.
For those looking to receive a $6,500 credit, be aware of this:
“Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)”
If you live here in a rental, and still own your previous residence in another State that you lived in for less than five years…as I said…lots of gray areas. At the end of the day…this particular “$8,000 Friday”…some will be better off and some will not. An important day in the lives of many people who are in the process of buying homes.