Posted: June 7, 2010 By: Dave Ralston
The homebuyer tax credit was a temporary measure to fix what seemed like a complete stall in the real estate market. It helped; it boosted consumer confidence and homes began to sell again.
Now, it’s gone. Sayonara, tax credit! However, don’t let it discourage you. The tax credit created what is sometimes called a “sales frenzy.” but rushing into buying a home only to take advantage of a tax credit may not be as rewarding of an investment for someone who truly isn’t ready for home ownership.
Real estate is a long term investment. Buying a home is based on individual situations. To decide, ask yourself important questions, such as: Am I financially secure enough to make a payment? Can I see myself living in one place for at least five years? From my experience, the tax credit wasn’t necessarily the most important point, but it did sometimes help make the decision to buy. Speak with a real estate professional about your needs.
The good news is that, although the tax credit will not be renewed, I have already seen slight adjustments in pricing to make up for what the tax credit created. For example, some sellers offer a similar buyer’s concession upfront already negotiated for the buyer. In other words, the market has a way of correcting itself so don’t feel like you’ve missed out on anything.
Do you cover all these topics in your mothly seminars? And if so how much time do you spend on my individual topics?
Hi Rob,
At the beginning of the seminar after introductions we begin with the 9 steps to home ownership on a large bulletin board. Then we ask our participants to make a mark next to the top three categories they would like us to spend time on. We still cover all the 9 necessities, and spend the bulk of time where the class needs it.
By the way, If you wanted to meet individually on your individual situation I can help you there as well.
Which congressional bill has the first time home buyer tax credit included, and will it be extended?
Hi James,
The Tax Bill is HR 4213, and it was just extended in a matter of speaking. A homebuyer would have to be in a contract to purchase a home already (by April 30th 2010). The deadline was set for these transactions to close by June 30th, but it was extended to closing by September 30th. There was an artificial increase to the listed properties under sales contract in April, and I imagine there wasn’t a lot of hiring for processors to handle these transactions before June.