Most people who have not owned a home in the last three years qualify!
Really, there's not much to gripe about when it comes to the tax credit. The government handing you a check for buying a house you needed to buy anyway - that's a pretty cool opportunity….don’t ya think?
Here's the kicker - The Sellers KNOW you are getting up to $8,000 free for buying their house and they DON'T get one for selling it to you and buying their next place. Their loss, right? Wrong! Now more than ever, I am seeing sellers who WILL NOT budge. And the reason is…………….....yes, the BUYER’S tax credit.
Well, if the buyer is getting $8,000 and Sellers are not. They feel the Buyer can use that money to make up the price and closing costs and/or décor or home inspection repairs.
Let’s think about this………….
Sellers:
- Just because they're making you an offer on a lower-mid end home does not mean they qualify for the credit. They may have previously owned or be married to someone who previously owned! So don't assume they get $8,000!
- Even if they do qualify for it, that does not mean they have to take it. This is not a forced credit, they have to ask for it!
- This is a tax credit - not a closing credit! They won't get that before closing to use and they won't get it until they amend their 2008 taxes or file their 2009 taxes, which will be next year!
- And NO, the tax credit does not make your house WORTH $8,000 more! Yes, there are Sellers trying to do that!
Buyers:
- Realize that you are indeed getting a government gift for buying a house. Maybe not now, but you will get it if you qualify and ask for it. So keep that in mind when eyeballing repairs, updates, and more.
- Know that the seller knows about the credit too and they will use this as leverage if your offer "sucks" in their eyes.
Think this isn't common?
So keep in mind that you're getting a great tax credit for purchasing
but the Seller might be wanting to participate in the tax credit during your negotiations!
