Clock ticks down for real estate tax incentive

Created date

October 27th, 2009

The clock is ticking, but it s not too late. [caption id="attachment_6399" align="alignright" width="318" caption="(File photos; illustration by Gerry Fey)"]Wind Crest, an Erickson-developed community in Denver, Colo. Everybody s rushing to try and close deals, but there is still time for buyers and sellers to get into the act. To take advantage of the incentive, the deal just has to be funded by the last day of the month.

The most qualified buyers

Dukes explains that funded means the lender has to have approved the paperwork and wired the money to the title company, which then passes it along to the seller, before Nov. 30, 2009. Dukes says there s still time to take advantage of the credit though it s important to move quickly. If it s a cash deal it s going to close within ten days, but if it s going to be a larger loan it s usually 30 to 45 days to close, so it will be difficult, she says. People who have already sold their homes and have cash on hand are probably in better shape to get in under the deadline. And not everyone understands the credit, Duke adds. Many think they re going to get the $8,000 beforehand. But they actually get it afterward, during tax season.

A boost to business

The tax credit was created as part of the $787 billion federal stimulus package in February to help stimulate the property market. Congress enacted the tax credit 10 % of a home s sale price not to exceed $8,000 as a means of further stimulating the battered housing market. According to the National Association of Realtors (NAR), the program is prodding people into action who otherwise might have waited to buy a house. As of mid-September, NAR estimates that the tax credit has brought 1.2 million new buyers into the market 350,000 of whom would not have purchased a home without the credit. We have all seen how the [tax] credit has spurred homebuyers into the market. Housing has always led this nation out of economic downturn, and can do so again, says NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in the Dallas-Fort Worth, Tex., area.

Extra time to buy?

While nothing has been approved just yet, there is also the possibility that Congress will extend the tax incentive beyond the November 30 deadline. Congress is in talks now to extend the credit to military personnel who have served overseas and could also consider extending the offer to the rest of the public as well. ' '

Desire to move remains strong

Kate Dukes, personal moving consultant at Wind Crest, an Erickson community in Denver, Colo., says the level of interest among seniors to sell their homes and move to the Denver community is playing out at Erickson campuses across the country. She calls the tax credit a great thing, especially combined with current low interest rates. And with rates on 30-year home loans dropping below 5% last month, everybody is crazy trying to close on a house, she says. I think it s what we needed. It s a good time to get in. No doubt about it. For more information about Erickson communities, call 1-800-917-8643.