Tax Credit Extension?

We keep hearing rumors that the first-time homebuyer credit (10%, up to $8,000 until 11/30/09) will be extended, and perhaps even expanded.  Whatever the decision is, we probably won’t know until it’s too late to take advantage of the current program. 

Buyer’s who want to take advantage of the current $8,000 incentive have, maybe, a couple of weeks to get a house under contract.  That leaves about 30 days to get the purchase closed and funded before the end of November, leaving a day or two for any surprises that arise along the way.   Don’t schedule closing for November 30 and just assume that everything will happen with no hitches.   With both real estate and mortgage professionals working on your side, there is every reason to expect things to go perfectly, but if the appraisal comes in low, or the survey reveals even a small encroachment, or if the title commitment discloses anything that concerns you, then you could easily lose a day or two, and the IRS won’t care whose fault it is if the sale isn’t completed before midnight on November 30.

In real estate, even more than most consumer businesses, “It ain’t over ’til it’s over.”  Plan accordingly and have the best professionals you can find on your side throughout the process.