For those that are thinking about buying a home and taking advantage of the $8,000 tax credit, the window for this current tax credit is closing, the home purchase must close before December 1st, 2009.
Now this brings up several issues.
1. Will Congress extend/renew this tax credit? This will depend on the concensus of whether it is felt that the first time homebuyer has and will continue to stimulate the economy. As there is currently no assurance that the tax credit will be extended, it involves a calculated gamble of what one thinks is going to happen.
2. There is not enough time to build a house from scratch and close on time to qualify. Simmons quotes about 90 days from groundbreaking to completion and that seems quite fast. Builders, however, may have completed homes for sale.
3. Avoid short sales if you are trying to get the tax credit. In most cases, it's too difficult to predict if and when a short sale will close. Imagine the frustration of delays causing the disqualification of the $8,000 tax credit.
The typical contract period is 30 days or so, still leaving enough time to look for a house, get into contract and close. You would probably want to be in contract by the beginning of October at the latest. Keep in mind that any title issue or significant repairs may jeopardize closing on time.
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