Real Estate — Tax Credit Affect
The first time buyer tax credit is a topic that has been extensively covered, to the point that some people are no longer responding to it. There is a common belief that this tax credit is driving the real estate market… that is misinformation. The truth is that the amount of first time buyer’s using the tax credit, as their reason to purchase, is very small. What we have seen is people that use the tax credit were planning on purchasing a home regardless of the $8,000 credit on their tax returns. The number of buyer’s that were interested in pursuing the credit was much higher in November 2009, before they extended it through April 30, 2010. However, the fact of the matter remains that there is still an opportunity for people to take advantage of a government freebie and put $8,000 in their pocket! If you are on the fence right now, and you qualify for the credit, it should be more than enough motivation to have a new home under contract by April 30, 2010.