The pressure is on for first-time homebuyers to sign a contract on a new house by April 30, the last day to do so and qualify for the $8,000 tax credit for first-time buyers.
Real estate professionals such as Katie Wethman, an agent with Keller Williams, are helping would-be homeowners with support including offering classes on topics such as loans, down payments, prices and market trends.
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Wethman, who is based in McLean. said one of the most common questions she gets these days is whether the government will extend the credit again.
“What I have told people is that I don’t have a crystal ball,” she said. “But I do see a lot more pressure right now on elected officials to control spending. If I had to guess, though, I would guess it is not going to be renewed, and buyers should have a heightened sense that this might be their last chance for the credit.”
Kim Hannemann, an agent with Samson Properties, has been informing his clients — and the general public — about the upcoming deadline through his blog.
“I am getting the information out there,” Hannemann said. “But I also make sure I am available to explain things face to face.”
Congress passed the first round of tax credits in July 2008 as part of the Housing and Economic Recovery Act. The credit was slated to expire in July 2009, but was extended to November and then to April 30, 2010.
Additionally, some current homeowners may qualify for a credit of up to $6,500 to buy a different house. To receive the full credit, income limits of $125,000 individually and $225,000 for couples apply. The home must qualify as a principal residence and have a purchase price of less than $800,000.
For a first-time buyer, that $8,000 can make a big difference. Justin Fabian, 25, and Jenny Piantedosi, 26, spent five months looking at 20 town homes close to their price point of $350,000.
Fabian, who finally closed in February on a home in South Riding, said they felt the sense of urgency to try to get a contract in before the previous deadline of Nov. 30.
“We were really happy when the deadline was extended,” he said, adding they weren’t going to put in a contract on something they did not like just to get the credit.
“We just filed our taxes and are looking forward to getting our return,” Fabian said. “We have some appliances that need upgrading. And we need to build up our savings again.”
