$8000 tax credit extension?

Let me preface this with a quick disclaimer. I am not a tax professional and I am not giving tax advice here….

As we near the November 30 deadline for the $8000 tax credit the looming question as to whether it will be extended is, well looming. With the possibility of an extension is also the idea of an "expansion" that would open it to buyers beyond the "first time" buyer. It seems that everyone wants their name on the bill that will extend the credit and so there are plenty out there trying. Both Obama and Congress are talking about it as the deadline approaches.
It has made a difference in our market. The feeding frenzy that started in about July/August I believe was due to the fact this deadline was driving buyers out. This assumption is based purely on the simple fact that every call, since mid-summer, I have received from a new buyer wanting to be pre-qualified for a home loan mentioned, "I need to buy before Nov 30" or "I want that tax credit". It's driving buyers to get in the game. And why not? Where else are you going to pick up a quick $8000? Most of these first time home buyers are used to getting a little a tax refund at the end of the year but this is a significant amount of money. The buyers I know plan to use the money to fix the house up, (as many of these foreclosures, need a little work) or they plan to replace their savings. Imagine you buy something for $300,000.00. Going FHA, you put down 3.5% ($10,500) of your hard earned money. Now imagine by using that money to buy a house you could potentially put 75% of it back in the bank? It's a great incentive to buy…now. Truth be told if you're not in escrow by this weekend your chances to get that credit are getting slim. So will they extend it? The house has unanimously passed an extension that would give buyers who served overseas in the military a 6 month extension, (measure H.R. 3590). It still needs to go to the senate. And the National Association of Realtors, (NAR) testified last Wednesday to the US House of Small Business Committee that an extension was critical in reducing the amount of inventory the housing market currently has. They also are suggesting an expansion on the tax credit. They even posted a video on You Tube.
NAR's website also has a quote from House Speaker Pelosi (D-CA), on October 8th, where she said, "Yes, there is under consideration whether we extend the first time homeowners credit. And the question is, would that be just first time homeowners or would you open it up to other purchasers of homes?"
The California Association of Realtors, (CAR) put out this "call to action" on their website: "The federal tax credit for first-time homebuyers is set to expire November 30, 2009. Since its inception earlier this year, the tax credit has brought 1.2 million new buyers into the market nationwide, according to NAR. In California, nearly 40 percent of first-time homebuyers reported they would not have purchased a home without the tax credit, according to a C.A.R. survey."
The website further explains CAR's views and gives you step by step instructions on how to contact your congressional representative.
So, while the Feds are going to keep us on the edge of our seats possibly right up to end, there are things you can do to help the cause. If you believe the tax credit should be extended check out the CAR or NAR websites to see how you can help.Get more information about the current 2009 tax credit from NAR here. And, you can get more information about buying a home or getting pre-approved by emailing me at davejcummins@gmail.com. You can also get daily updates by becoming a fan here on FaceBook too