Don’t Miss Out on the Tax Credit
Despite the excessive inventory of homes on the market, buyers still looking for the best bargains may be close to missing out on the federal tax credit. The tax credit deadline is April 30th, which for some bargain hunters or people looking to take advantage of it, might be cutting it too close. Foreclosed, distressed, or short sale homes take longer to close than a normal transaction. If your buying a home was contingent on the federal tax credit, time is running out. The transaction will need to close on or before June 30th, 2010 to qualify for the tax credit.
People are also becoming tired of the hassle associated with short sales or other distressed-home situations. The process of working with a bank owned or short sale home is usually lengthy. Home prices are the lowest they’ve been since 2006 not to mention mortgage rates still hovering at just under 5%. Isolating your search to just “bargain” short sales, may limit other possibilities. If you’re serious about buying a home, there’s lots of opportunities out there, not only short sale, but homes that are not in distress.
If the sole reason for your home buying decision is based on taking advantage of the tax credit, consider the amount of time left that you have to be eligible for it, as well as the potential time it might take for your offer to be accepted and the home to close. However, for most, it seems that the tax credit isn’t making or breaking most deals. If you find a house that you love, that you want to live in, then go for it.
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