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Home Buyer Tax Credit Time Lines

There is no sign that the $8000 First Time Home Buyer Tax Credit or the $6500 Tax Credit are going to be extended.  If you want to take advantage of either you must have an accepted offer by Friday, April 30th.  The transaction must close by June 30th.

The “standard” inspection period for an Oregon residential real estate transaction is 10 business days.  The 10 days can be modified in the earnest money agreement.  That means an offer accepted this Friday would have an inspection period that expires at midnight on the 30th.  This is important because if the buyer and seller can’t agree on repairs, the transaction is going to be terminated and there will be no opportunity to take advantage of the tax credits.  You cannot parlay your accepted offer to another property.  If you are concerned that your first choice is not “going to pass inspections” you should try to leave some cushion in the time lines.

There is nothing in theory that would prevent a buyer from looking at a house on the 30th, writing an offer and getting it accepted on that day but there isn’t a good reason to push against the deadline if you have decided that now is your time to buy.  $8000 or $6500 isn’t the reason to enter into a home purchase.  It should be viewed as a bonus and a factor in the overall picture.  I wouldn’t choose the “wrong” home just to get the credit.

Who knows, maybe Congress will surprise us all and extend the credit but I wouldn’t bet $8000 on it.  I’m not finding anything regarding them even discussing it.

One Comment on “Home Buyer Tax Credit Time Lines

  1. We are certainly hoping for an extension here in Sarasota and on Siesta Key Florida where I market waterfront homes and luxury condos. Without it, I fear, we’ll go back where we were 6 months ago.

    You may wabt to check out the Sarasota Waterfront blog at http://sarasota-waterfront.blogspot.com

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