Time is quickly running out for first-time home buyers to receive a tax credit of up to $8,000.  There is tremendous urgency for first-time home buyers to choose a home, put it under contract and actually close or finalize the sale immediately.

 

Even though the tax credit doesn't expire until November 30, today's home purchases take approximately 45 to 60 days to close as the underwriting and appraisal process is taking longer because lenders are being more cautious.  For the serious first-time buyer that means their offer really needs to be made this month or at the very latest early in October.

 

Real estate groups are urging Congress to extend the credit beyond its current deadline and expand the tax credit to up to $15,000. 

 

Legislation exists in both the Senate and the House that would expand the tax credit.  A proposal by Sen. Johnny Isakson, R-Ga., would raise the credit amount to a maximum of $15,000 for any buyer of any home over the next year.  It would remove the caps that currently apply (those limits are now $75,000 for an individual and $150,000 on couples).

 

"I think we've got a realistic chance of doing this," Isakson says.  "Our problem is not with the first-time home buyer, it's with the move-up buyer."

 

Lawrence Yun, chief economist at the National Association of Realtorsīƒ’, says extending or raising the tax credit would spur the housing recovery, which in turn would help bolster the economy.

 

Under the existing legislation, as the deadline looms, Realtors say they are seeing a market upswing in interest by first-time home buyers. 

 

For more information regarding the $8,000 first-time buyer tax credit or assistance purchasing a home within the Greenville, NC or Pitt County area, please call The Pistol Tingen Team at (252) 321-6161.