Time Ticking On $8,000 Homebuyer Tax Credit – Today’s THV 11 News, Little Rock, Arkansas, USA
Story Link: http://www.todaysthv.com/news/local/story.aspx?storyid=89313&catid=2
Posted By: Reporter Katherina Yancy
With a little more that 100 days left for first-time homebuyers to cash-in on the $8,000 government tax credit, time is running out. It takes time to get your finances in order, find a house, negotiate and close the deal.
With that said, you do have time but not very much. Realtors say it’s either $8,000 today or zero tomorrow!
Stacy Jones says, “I believe we would have waited longer but the houses on the market are very nice.”
Newlyweds Stacy and Dante Jones are in the market for their first home and they’re under pressure to buy before the $8,000 dollar tax credit runs out. She says, “When we heard about the deadline we knew we had to get it before the end of the month.”
Danny Holt with Crye-Leike Realtors adds, “It takes about 30 to 45 days to close so once you get pre qualified and then once you find the right house and get a home inspection, by the time you close that deadline is coming up on us pretty quick.”
Holt says there’s no word on whether the tax credit will be extended and if you’re ready to buy a home now the stimulus will give you $8,000 to pay past taxes or $8,000 in your pocket.
Holt continues, “As of right now, November 30th is the deadline everyone is going by. Now is the time to really start looking because it takes a while and you want to get the right house that fits your needs.”
Holt says the average home price for first time buyers is about $100,000 and as the deadline approaches the inventory is going to slow down with supply and demand and it will turn from a buyers market to a sellers market.
“As people are buying these homes, sellers are realizing people are going to be in crunch time they’re actually taking advantage of the fact that as supplies gets limited they can make more money.”
Jones is hopeful she will find the home of her dreams in time, she says, “There’s a lot of nice houses so before the end of the month one of them will be ours.”
Holt says the tax credit is helping local jobs and the states economy and it’s important when you find the right home to negotiate the seller paying your closing cost.
The tax credit is part of the 787-billion stimulus bill. Housing organizations like HUD and FHA have proposed using the $8,000 tax credit as a down payment, but lawmakers on Capitol Hill haven’t approved that.