Press Release

April Offers Last Chance For Buyers to Cash-in on Tax Credit

MORRIS PLAINS, N.J.– Since the first homebuyer tax credit was put in place by the federal government in 2008, hundreds of thousands of Americans have taken advantage of this opportunity to achieve their dream of homeownership.  But time is running out. In fact, April marks the last chance for buyers to cash in on the incentive.

In order to receive the credit, eligible buyers must have signed a binding contract by April 30 and need to close on that home by June 30.   First-time buyers, or those who have not owned a home for more than three years, can receive $8,000 from the federal government.  Current homeowners who have lived in their house for five consecutive years of out the last eight can receive up to $6,500. 

“Those in the market to buy a home now or in the near future are unlikely to see such an opportunity again any time soon,” said Jim Weichert, president and founder of Weichert, Realtors.  “When you factor in all the positive market conditions, it is hard to envision those who don’t buy now feeling anything but regret later.” 

Historically-low interest rates are one of those conditions that have contributed to a great buyers market.  To put it in perspective, interest rate in the early 1980’s ballooned as high as 18 percent, more than three and a half times today’s rates which hover in the low five percent range.  With rates far more likely to go up than down, waiting to buy could cost tens or even hundreds of thousands of dollars over the span of a 30 year mortgage.

Housing affordability offer buyers, both first-time and trade-up, another advantage.  With prices at their lowest level in years, those who buy now are getting more home for their buck.  And with reports showing that prices in many markets have leveled off or even begun to increase, waiting for prices to drop further doesn’t appear to be a wise decision.  Particularly when you consider that the losses you will take as a result of a higher interest rate will be far greater than any gains you might receive on a lower sales price.

Still, the most tangible reason you are better off buying a home before April 30 rather than after is the large sum of money being offered by the federal government.  Not surprisingly, it appears many Americans have already begun purchasing homes to qualify for the credit before the deadline.  The National Association of Realtors (NAR) announced that pending home sales rose 8.2 percent from the prior month.  

Weichert noted an increase in Open House and Web site traffic which he sees as an indication of a likely surge in sales between now and April 30. “As the deadline approaches I think we will see more and more buyers jump into the market as they realize just how much money they are leaving on the table.”

Weichert has nearly 18,000 sales associates in approximately 500 company-owned and franchised sales offices in key markets throughout the U.S.  A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance.  For more information, Weichert's customer service center can be reached at 1-800-USA-SOLD or at Weichert's Web site, www.weichert.com.  Each Weichert franchised office is independently owned and operated.