Tax Credit Expires Soon...Have You Taken Advantage of the Credit?

As i write this there is only 40 days left to be under contract for the purchase of a home and qualify for the tax credit. For first time home buyers that amount is $8000.00 and for previous homeowners it is $6500.00.

There has been a lot written on what constitutes a first time home buyer and a repeat home buyer on the Internet. In essence if you have not owned a home in the past three years you are considered a first time home buyer. To qualify for the repeat home buyer you have had to owned and lived in as your primary residence the home you are in for five of the past eight years.

But with only 40 days left to find a home there is no better time than now to be out looking. The market in Charlotte area is filled with a lot of homes priced to sell as people are looking to take advantage of the tax credit.

The one common misconception I have heard from people is they believe they have to be closed by April 30, 2010 to qualify for the tax credit. No, you have to have found a home and have an executed sales contract to purchase the home no later than April 30, 2010. You must close by June 30, 2010 to still receive the tax credit.

But with choices out there for just about every price range in the Charlotte area you want to give yourself some time to look around and make sure you find the right home for you now. Another problem I see coming up is the short sales. With the influx of homes on the market being short sales the longer you wait may cost you on the tax credit if that is the home you want to purchase.

On average it is taking the banks from as little as three weeks to six months to get an answer on a short sale. And just becasue you have an offer in by April 30th does not mean you will get the tax credit if the bank has not accepted the offer by the deadline.

The tax credit is a benefit to any person or family looking to buy a home. I personally took advantage of the move up tax credit back in November and my bank account was grateful when the IRS deposited in my tax refund which included the additional $6500.00 home buyer tax credit.

Who of us today could not use an extra $6500.00 to $8000.00 money? So, if you are thinking of buying a home but maybe wanted to wait to the kids were out fo school you can buy now and close in June and still have the rewards of the tax credit.

Dave diCecco

Realtor/Agent

www.davedicecco.com