$8,000.00 Tax Credit…is the deadline really November 30th?

By
Real Estate Agent with Seattle Realty Group

With roughly a month and a half left before the Governments $8000.00 Tax Credit offer expires, I've been working very hard to get my Buyers to make a decision on buying a property before it's too late. I've explained we should not take for granted a 30 day close and that a ‘cushion' of an extra week or two would insure they will close on time and qualify for their credit.

Now, in my 12 years in real estate, I've never been able, nor have I tried to motivate anyone into doing anything when it came to buying a home. My skill...and for many of you...is to educate and help them understand the benefits of homeownership. Conveying that over 60% of their overall wealth will be in their home, my job was to not sell them a home rather sell them on the profit of mind and wallet of becoming a homeowner.

Lately, my energy has been on getting folks to understand the $8,000.00 tax credit and how they can reap their reward. But, what I heard from not one, but two different buyers over the weekend was interesting to say the least.

Both these couples told me they are convinced the tax credit will not end on November 30th and they are not too concerned about making an offer because they know the Government will extend it. I asked them how they knew this and they said, "Just take a look at the track record of 2 recent deadlines." First, the "Cash for Clunkers" which most would say was a resounding success for the auto dealerships around the country. That was extended due to popular demand (I guess). The second, oddly enough was the switch to Digital Cable of all things. One of my clients smirked that the message we were all going to Digital transmission was over 6 months long and when it came time and we were all ready to receive our much anticipated Digital signal...the Government decided to extend it another 4 months for whatever reason.

I'm not sure if any of you are running into this or if I'm just an isolated case...please chime in and let me know if you have any first time buyers who are not feeling the pressure to buy even with the $8,000.00 Tax Credit deadline looming.

Comments (2)

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I haven't run into that yet.  I emphasize that in the current climate, I would not count on the credit.  Realistically at this point, if a home is not under contract by the end of this week, it will be very difficult if not impossible to close by 11/30. 

Oct 12, 2009 02:16 AM
Freida Knight
1st Knight Realty, Inc. - Winder, GA
1st Knight Realty, Inc.

Good Morning! Yes, I too, do not know what to tell clients! The worse possible thing that could happen in view of the fact that it has been "leaked" that this might be increased to $ 15,000 is that the present program actually ends on November 30th.

Based on all the "stuff" going on in Washington right now, I would think that this is a simple situation to solve. Most of us know that housing is now and has always been the foundation of our economy.

If they would go ahead and extend this program or annouce that they are not going to do so, it would be the fair thing to do for potential buyers.

Another thing gained by buying right now is that the buyer will miss the RESPA changes which at best are going to confuse and complicate the closing process. It sounds like 60 day closings at least early in 2010.

Best wishes to all of you.

Freida Knight, 1st Knight Realty, Auburn, GA 30011 770-867-1901

 

 

 

 

 

Oct 12, 2009 02:23 AM

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