Many will miss this cash incentive by failure to take action.
Deadline for tax credit is six days away. How will home buyers and sellers be affected after the deadline?
Some buyers are scrambling to buy a home before the deadline and some are waiting to the last minute as they cannot decide whether they want to buy now or wait because they have read that they sellers may reduce the price further.
First time buyers who qualify for the tax credit will get a credit of $8000/ when they file the tax returns if they buy now.
If the buyer waits till After April 30. and buys the house for $8000/ less will it be the same?
If you buy a home for $8000 less, and the rate is 5.25 % for a 30 yr mortgage, you will pay approximately $530 per year less in interest , so you will have to wait many years to save the $8000/.You need to talk to a lender to get the exact amount .
If you get the tax credit now, you can save that money as you will have used up major part of your savings to buy a house or you can use it to make improvements or for furniture.
Sellers may reduce the price if they need to sell but some sellers I have spoken to have said that they will take the home off the market and sell it in the future. They may not move and if they move they will rent it out. The market will change after April 30th and no one knows exactly what will happen. There may be opportunities for investors but if you are looking to buy a home to live in, this may be a good time to buy as the rates are still low .
We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC.
Roy Kelley & Associates
Associate Broker, RE/MAX Realty Group
Client Assistance: 301-670-8996
Recipient of the RE/MAX International Lifetime Achievement Award - 2008