Part 3 – Why NOW is the Time to Buy!

Yes….we’re going to say it again. Tax Credit! This is unprecedented in the history of the real estate industry and has been driving home sales for months. But there is an end in sight. The tax credit is scheduled to end this Spring and there has been no indication (to date) that the federal government will extend it. As it stands now, eligible buyers must be under contract by April 30, 2010, and close by June 30, 2010.

First-time home buyers are defined as anyone who has not owned a residence in the past three years prior to the purchase date. First-time buyers can qualify for 10% of the purchase price, up to a maximum of $8,000. Last Fall, the tax credit was extended to “repeat” buyers, i.e. buyers who have owned a home for five of the past eight years can qualify for up to a maximum of $6,500.

If you are holding out waiting to see if a “better deal” will come along….you may miss this opportunity! If the credit exceeds your tax liability, you get CASH back. That cash is what is helping drive the economy….that cash is often spent on furniture, appliances and improvements to your new home. 20% of the Gross Domestic Product (GDP) is real estate-related.

If you are on the fence and thinking about buying, we urge you to get out there, see what’s available, take advantage of the low interest rates and if you fall within the income guidelines for the tax credit….you may have 8,000 (or 6,500) compelling reasons to buy a home before April 30th!

For more information on the tax credit, please visit the NAHB Tax Credit Information page.

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