Tax credit extension? Seattle waterfront homes could benefit

There's a big push by lawmakers, real estate professionals, and lobbying groups to extend the current tax credit for home buyers. First time home buyers can currently get an $8000 tax credit for buying a primary home. This credit lasts through November 30, with all transactions needing to be closed by that date to qualify.

There are a number of proposals from Republican and Democrat legislators to extend and even expand the tax credit. While some proposals are for a 6 to 12 month extension, the expanded monetary guidelines could have even bigger ramifications. One proposal is to increase the maximum tax credit from $8,000 to $15,000. This would make a real difference in higher-value markets like Seattle's waterfront homes.

Of course, nothing is certain in politics. There are many more high-profile budget issues at hand, so it's hard to say if these measure will get the attention they need. The only sure thing right now is that the current credit will be in effect through November 30.

3 Months Left - Will $8000 Tax Credit Get an Extension?

The federal government's $8000 tax credit for first time home buyers expires November 30. A buyer must have purchased a home by then, and most transactions take at least 30 days, so buyers really need to have that home under contract in October. That gives us just 3 months to find a home, write an offer, negotiate, and get that home mutual acceptance before November.

There have been proposals to extend the tax credit in congress, but nothing has taken hold yet. The theory I'm hearing is that the decision will be made at the last second, so buyers will have to jump on board now or take their chances down the road with the federal government.We're finding many buyers who qualify for the $8000 tax credit who aren't your traditional "first time buyers". Anyone who hasn't owned a home for the last 36 months qualifies, so we have repeat owners getting the credit now. Low prices and interest rates are making home ownership more attractive than ever.

First Time Buyer Tax Credit Details - Seattle Homes For Sale

Sam DeBord and Brian Wiegand - SeattleHome.com - Seattle Real Estate Brokers