The $8.000 tax credit ends midnight of November 30, 2009. Buyers who have not owned a home for at least 3 years are eligible for the tax credit, subject to income limitation. However, there is not that much time left. Considering that finding the right home can take some time, buyers need to take into consideration also that it is now taking two weeks longer than last year to go through with the lending process.
Primary residences are eligible for the federal tax credit and vacation homes do not qualifiy. Additionally, it has to be an arms-length transaction, meaning, the seller cannot be the buyer's grandparents, parents, child, grandchild or spouse.
The government allows buyers who purchase their home through a federally insured loan to use the credit towards their closing cost or as an additional down payment, instead of waiting for the refund when they file their 2009 taxes.
There is now a demand for homes below $500,000. We are seeing multiple offers and buyer making offers higher than the listed price. You will have to resign yourself to the fact that you may have to make several offers before your offer finally gets accepted. So, act now and get serious with your house hunting.
Elizabeth M. Eugenio
(909) 376-8615, Email: Elizabeth@HomesByLiz.com
Certified Residential Specialist, Certified Distressed Property Expert, Graduate Realtor Institute
Century 21 Superstars
DRE# 01126934