$8,000 Tax Credit Expiration: The Final Countdown Begins

• September 9th 2009

by Will Smith

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Real estate blogs across the country this week are focusing on the impending expiration of the $8,000 tax credit for first-time home buyers. The expiration date isn’t until December 1st, but given how many weeks it can take to find a home, negotiate with the seller, and close the deal, anyone who intends to take advantage of the credit has a very short window of time left.

In our Ask An Agent feature a couple months ago, an UrbanTurf reader asked local agent Mindy Mills: How much lead time do I need to start looking for a home to be able to meet the deadline? Mindy replied, “Most contracts settle in 30-45 days and most loans today take about 30 days to process, so you’ll want to be under contract by some time in late October to help ensure a settlement before the December 1st deadline.”

Online agency Redfin just published a recommendation that is a little more conservative, as it takes into account the Thanksgiving holiday and the fact that there will likely be a rush of buyers racing to get in under the wire. To avoid getting caught in the melee Redfin recommends closing by November 13th, a couple weeks before the week of Thanksgiving.

“Right now, it’s taking our DC-area clients an average of 43 days to close once they reach initial agreement on terms,” wrote the company on its blog. “This means if you want to close by November 13th, you need to get an offer accepted by October 1st.”

October 1st is a scant three weeks away, really not much time to find a home and submit a winning offer.

So: if you’re a first-time home buyer hoping to take advantage of the tax credit, the eleventh hour has begun!

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/8000_tax_credit_expiration_the_final_countdown_begins/1294.