Tax Credit Expiring, Experts advise not waiting until the last minute

With the opportunity for first time home buyers and established move up buyer credit expiring in the next few weeks, experts are advising these home buyers not to wait until April 30th to obtain a signed contract.

The rules clearly state that the home buyer must have a fully signed contract by April 30th, so if a purchase offer is submitted by that date to a seller but the seller decides to negotiate the offer and does not sign until after April 30th (out of area - not readily available etc.)    the purchase will not qualify.

All standard purchase contracts call for an attorney approval period that is typically 3 business days from acceptance of an offer so if a contract is cancelled after April 30th under the attorney approval period the buyer again will then not have a valid purchase contract under the tax credit rules.

All standard contracts have the option for the buyer to conduct various pest, environmental and structural inspections which usually do not take place for up to 2 weeks after the contract is signed and certainly after the attorney approval period.  If there are substantial defects found in the home and the home buyer decides to cancel  the contract, the chance of executing a new purchase on another home  will most likely be beyond the April 30th deadline.

Truly the safest time to execute a purchase contract is in the next 10 days.  Next weekend April 17th & 18th Open House event will be a great opportunity to see most of the available homes in the capital district.

mb

Maribeth Duclos

Maribeth Duclos

Licensed Associate Real Estate Broker
Contact Me