THE PUSH TO EXTEND NEW-BUYER TAX CREDIT
The new-buyer tax credit of up to $8,000 is set to expire on November 30th, unless it is extended. Currently, it takes approximately thirty-five to forty days to close the purchase of a home once buyer and seller reach what is known as "Mutual Acceptance". It is strongly recommended that the buyer is in "Mutual Acceptance" with a seller no later than October 15th, because the closing of the purchase must occur no later than November 30th. Keep in mind that many services, escrow offices and recorders office are closed for several days during Thanksgiving week. A savvy buyer should allow for unexpected delays. There does exist a good posibility that the expiriation date will be extended (1) and (2). If the new-buyer tax credit does expire and a prospective buyer has not closed on a home, it is my opinion that new-buyers will have the opportunity to purchase a home and achieve more than a $8,000 savings in the December thru February time frame. After October, many remaining prospective buyers will sit back and wait while the motivated sellers realize that they must lower their price. As an example, if the market value declines five percent, a $300,000 home in October might be $285,000 or less in February, yielding a savings of $15,000 or more. What is your opinion? (1) Seattle Times dated August 23rd, page E1 (Kenneth Harney)
(2) Seattle Times sated August 20th, page E1 (Jack Hagel)
