Washington Almost Gives Homebuyers Another Helping Hand

The House has approved a plan to give homebuyers an additional three months to finish qualifying for the Homebuyer Tax Incentive. This extension should not be confused with the extension granted to members of the military who may not have been able to take advantage of the credit before the deadline because of their duty. Those who qualify for that extension have until April 30, 2011 to place a contract on a home and must close the transaction before June 30, 2011.

The latest extension will allow an extra three months to close and still qualify for the credit to those homebuyers who placed a contract on a home before the original deadline of April 30, 2010. Purchasers will have until September 30, 2010 to close on their home. While many of these homes have already closed, there are still a large number of homes that are closing near the end of the month or may not be able to close until July or later. Now most of you reading this are probably wondering why it would take longer than two months to close a home.

There are two instances that readily come to mind. The first involves new construction homes. A new construction home takes months to build, and there are many new home builders that are trying to get homes completed prior to the deadline. I don’t know about you, but I don’t want my builder to rush the job too much. This extension will bring peace of mind to future home owners and builders alike. It also takes out a “what if” concern we have been struggling with. With this extension a named storm in the Gulf won’t cost our buyers their tax credit.

The second instance involves flood insurance, specifically the lack of flood insurance. There are lots of homes that cannot close because of the lapse in the National Flood Insurance Program. I have heard estimates that nationally there are 1400 homes per day that must be delayed to close because of this issue. Eventually this issue will be resolved. We all thought it would have been done last week, but the Senate shot the last bill down. When the program is reinstated there will be a long line of folks ready to close, and many of them had contracts on homes before April 30, 2010. These folks should not be penalized because Congress cannot agree (at least they shouldn’t be penalized anymore than the rest of us). An extension will put distance between the rush of homes and a deadline.

If you have any questions about this or any other real estate topics please feel free to call me at 832-722-7731. As always, I hope this helps!

 

***UPDATE TO THIS POST***

As of June 25th, the Senate failed to get the number of votes necessary to extend the tax credit.  Once again our representatives have let us down and, with a potential storm forming near the Gulf of Mexico, it looks like those who did not close today are going to be out of luck.

 

 

Stacy is a licensed REALTOR® and the team leader of The Jones Team, a group of REALTORS® in Katy, who work together to provide exceptional service for their clients. Stacy and his team specialize in the areas west of downtown Houston. These incredible real estate agents can help you buy or sell a home in locations such as Katy, Cypress, far West and Northwest Houston, Richmond, Fulshear, Sugar Land, Spring Branch, Memorial, Spring, Tomball, The Woodlands, and Magnolia. Whether you are in the market to sell a home, buy a home, have a question about home appraisal value, need advice about home staging ,or have any other real estate related questions, Stacy and The Jones Team are available to help.

 

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