Health of Market is At Stake
The $8,000 first-time homebuyer tax credit expires December 1st. The usefulness of the credit diminishes daily if the credit is not extended well before that date. A homebuyer is eligible for the tax credit only if the home is purchased before December 1, 2009. Buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30.
Without Congressional action NOW, the market might freeze again.
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Contact Your Local and State Representatives
Watch this video of your fellow REALTORS®, along with Charles McMillan, president of the National Association of REALTORS®, explaining how the credit is helping and urging both you and Congress to take action NOW!
Watch this video of your fellow REALTORS®, along with Charles McMillan, president of the National Association of REALTORS®, explaining how the credit is helping and urging both you and Congress to take action NOW!
Additionally, we encourage you to send the following letter to your local and state representatives. You can simply cut and paste the text:
Subject: Homebuyer Tax Credit: Extend and Expand
Dear [Your Representative's Name],
As a REALTOR® and a constituent, I can assure you that the $8,000 first-time homebuyer tax credit has definitely been a success. Homebuyer interest and housing sales increased almost as soon as the ink was dry on the tax credit legislation. Today's lower prices and interest rates appeal to consumers, but it's been the tax credit that has attracted people to open houses and to homeownership.
That progress could grind to a halt sooner than you think. Congress must act NOW to extend the credit through 2010. Otherwise, uncertainty will return and the market might again be frozen - possibly as soon as October.
A homebuyer is eligible for the tax credit only if the home is "purchased" before December 1, 2009. That means that buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30. Accomplishing those tasks by November 30 will become more difficult with every passing day. In today's market, it generally takes between 45 and 60 days to go from contract to closing.
The market has improved, but it has not yet fully corrected itself. The credit needs to be extended for an additional period of time and expanded in order to build upon the progress that's been made. Uncertainty about the future of the credit will dampen consumer demand. The best way to assure continued housing activity is to extend and expand the credit and to do that NOW.
We can't wait until late in the year to see what happens. Consumers will drop out soon if they can't predict what's in their future. Please act NOW to extend and expand the credit through 2010.
Sincerely,
[Your Name]