Housing Tax Credit Set To Expire
The Housing Tax Credit is set to expire on April 30th, 2010. Perhaps the most often asked question at the Tallahassee Real Estate Blog is "do you think the tax credit is going to be extended again." Since this question is based upon politics, it's not really something we can determine with "charts, graphs and analysis!"
Fortunately, there are other ways to forecast political moves that affect the housing market. For those of you who read the blog that I posted two days ago about attending the Cartus Real Estate Network Annual Conference in Palm Desert, California, you know that I am in the company of some of the most influential real estate leaders in the world.
So, rather than ask me this question, it is much better suited for Richard Smith, CEO of Cartus. Mr. Smith was a very important player in the initial lobbying of Congress to pass legislation to provide stimulus for both mortgage rate reductions as well as the housing tax credit, so he is as good a person to advise us on the future of the homebuyer tax credit as anybody.
Richard Smith told us that the “deal” with Congress was that they would only approve the extension to the housing tax credit (last time) if the leaders in the housing industry assured them that they would not be coming back asking for more. It was agreed that unless the economy was still in the tank, the extension of the homebuyer tax credit through April 2010 would be sufficient to restart the housing market.
Thus, he believes the Homebuyer Tax Credit WILL NOT BE EXTENDED after the April 30th deadline!
Homebuyer Beware – Last Second Contracts Are Not Best Bet
Something many buyers might not have considered is that should they wait until the last second, they could very easily turn a buyers’ market situation into a sellers’ market situation. Think about this ...
Let’s say a homebuyer puts a house under contract on April 30th, just in time to qualify for the housing tax credit. Somewhere around May 7th they get their home inspection report, full of small items that most home sellers are having to fix right now (it is a buyers’ market…). However, a smart home seller will know that they can tell the buyer “no” to fixing these items, and the buyer will be trapped. The prudent home seller will know the buyer has more to lose by walking from the deal than they do by paying for the minor repairs themselves.
So if you are a current home buyer, get under contract with enough time to inspect the home and provide requests to sellers prior to April 30th, and you will still have enough time to walk away from the deal and get another home under contract. This ability to walk might be just the negotiating leverage you need to get an excellent deal in a historic buyers’ market.
Great Tallahassee Real Estate ResourcesDo you want to know more about the Tallahassee real estate market? It is not as hard as you might think keeping up with the movements in the housing market, you just have to know where to look. The following are some of the best resources that you can find on Tallahassee real estate:
- Daily Real Estate Blog (A Technorati Top 100): Tallahassee Real Estate Blog
- Current Housing Reports: Housing Market Reports
- Map Based Property Search Tool: MLS Property Search
- Foreclosure Reports: Lis Pendens and Foreclosures
- List of Distressed Properties in the MLS: Distressed Properties
- REALTOR® news and updates: Successful REALTORS®