The extension of the first-time homebuyer tax credit is almost certain. As of this writing it has passed both houses of Congress and President Obama is expected to sign it. The extension of the tax credit will help many who were not able to find something in time to close by Nov. 30. And during the slow colder months there are often some good buys out there.
With the extension, first-time buyers can now take a look at new construction again. And with more time, buyers can once again consider buying short sales.
But there is a oh-by-the-way that can be very powerful. Existing homeowners will be eligible for a tax credit of up to $6500 if they have owned a home for five years. Many of these homeowners will not even be aware of this credit since it is being tacked on to the first-time homebuyer tax credit.
As soon as this is signed into law, agents will have the opportunity to get the word out. In many cases the ones who are effective in communicating the existing homeowner provisions will be the ones who get the business.
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