The date is coming! How many times have you heard someone say "You NEED to get your deal into escrow SOON so you don't lose out on the Tax Credit?" While that may be true, I'm wondering what is the best way to advise a buyer today? Here are my thoughts:
- The tax credit is a nice thing, and a benefit for otherwise qualified buyers who are IN the market anyway but maybe hesitating on pulling the trigger. It's a CHERRY on top of the sundae (I stole that, I didn't make it up...just can't remember who to give credit to) but not the prize you're after.
- Your decision to purchase a home should be more about the right HOME than the tax credit. Don't buy something that is "Not it" just to beat some arbitrary timeline.
- They MAY extend it or even expand it - so you may not really be losing out. I got an e-mail from my Congressman saying that he didn't think it would be extended or expanded unless they could find the necessary budgetary offsets to pay for it. So, I certainly don't have my hopes up, but I also know that NAR is lobbying hard for it. We'll see.
- I had a wonderful young couple who bought a home this time last year. They wanted to take advantage of the OLD tax credit; then they changed (and improved it). These folks got a $7500 credit, but will be paying it back. I love their attitude and I think it is worthwhile to pass it on to you: "Hey, it would have been nice to get the new credit, but $7500 bucks...an interest free loan...still a pretty good deal."
- Tax credits (and the tax benefits of home ownership) are ways the government incentivizes behaviors they desire. They are BENEFITS, but they should NOT...ABSOLUTELY NOT be the reason to buy a home. It's a decision with much bigger benefits - and much bigger consequences.
The rules are the same today, tax credit or not:
- Get pre-APPROVED with a reputable lender you like and trust.
- Work with a real estate professional at the start of your search process (that "like and trust thing holds here too).
- Evaluate your wants and needs and make an educated and thoughtful decision.
Comments(1)