Many of us have seen an increase in traffic from first time home buyers looking to cash in on the $8,000 tax credit. As time draws closer and closer for the credit to slip back into the abyss, we now have rumors of more credits, extending the current credit, and we have first time home buyers in a race to pick up their new home. This is of course an effort not to miss out on the tax credit, which at this time, will expire December 1st of this year.
So, what about the buyers who are in that race to make it to the finish line with their new found home and their credit firmly in hand? If they are currently writing a contract on a build job, then they are dangerously close to running past the deadline, after all, it does take time to build a home. Some are still sitting on the fence and will likely take that leap of faith at the last minute hoping that all will work out well. However, we have all seen the significant increase in delays when it comes to closings.
How many buyers are going to miss out on their opportunity to claim their credit because their closing was delayed? How many are going to attempt to build a new home and due to weather, miss out by a couple of days? And who are the buyers going to blame? The Government for not extending the time line. The builders for not building fast enough? Their Realtor because things didn't run as smoothly as they should have? The mortgage broker because the closing was delayed?
I know of at least one builder in town who for the past two months has had all first time home buyers sign a form declaring that they are not responsible for delays in closing. This was done specifically because of the tax credit deadline and the amount of angry buyers that they see in the future due to delays in closings. The fact of the matter is that one way or another, is going to be an interesting time and I'm willing to bet that in this sue happy nation, it will be a really interesting time. That's why I have my own form discussing the fact that I am not responsible for delays in closing due to others.
So, if you're a first time home buyer out there and you want to ensure you can claim your tax credit, I would advise that you get on the ball. The clock is ticking and if you wait until it's too late, you'll have no one to blame but yourself. If you are a member of the real estate industry and you have people who are going to cut it close, I would advise you to come up with a plan or a document to protect yourself from the possible future backlash. Maybe I'm just a worry wort, but no one ever got in trouble for being over prepared.
JL Boney, III - Columbia, SC Realtor - Coldwell Banker Residential Real Estate
I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.
Office- 803-788-1450 Cell- 803-730-9601 Email- James_Boney@Yahoo.com