Time Running Out for the First Time Home Buyer Tax Credit

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Attention to all of you sitting on the fence. Time is running out for the First Time Home Buyer Tax Credit. Rumors have been flying around Washington for the last several months about a possible extension of the credit, but do you really want to gamble on the Federal government? After all, congress could simply reinstate the 2008 tax credit of $7,500  again that has to be paid back!

The 2009 credit officially ends on November 30th of 2009. In order to claim it, you have to meet certain qualifications which have been posted on this site. The major hurdle facing any buyer that wishes to claim the credit is closing in time. Right now, unless you are paying cash, homes are taking anywhere from 35 to 45 days or more to close escrow from the time the offer has been accepted.

What does that mean for you? Simply put, if you are looking to buy a property this month, in order for you to close in time to claim the credit, the property needs to be in escrow as soon as possible. Preferably, by the end of next week at the very, very latest.

This only applies to bank owned homes. If you are buying a new Las Vegas home or condo directly from the builder or an actual regular listing being sold by the owner, then you have up until the end of the month to get your offer accepted and escrow started. Many new home builders are stating that they will guarantee close of escrow before November 30th on any of their homes.

The Las Vegas real estate market is still a buyer's market (as are most of the major real estate markets in US) and you have to allow additional time to close escrow on a property. If you are currently thinking about buying a property and claiming the tax credit, you might want to consider a new home. New home builders are offering some fantastic deals right now and you'll avoid a lot of headaches as far as closing on the property.

Thanks for stopping by our Las Vegas real estate blog and feel free to share your experiences with us.

Comments

The homebuyer credit is repaid

The homebuyer credit is repaid as an additional tax on your federal tax return for fifteen years.It also needs to be repaid in full if the taxpayer sells the house within the fifteen-year repayment period.

Time Running Out for the First Time Home Buyer Tax Credit

Yes of course, The Las Vegas real estate market is still a buyer's market and we have to allow additional time to close escrow on a property. :)

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