Builders Need to Remind Buyers of Tax Credit Expiring Soon
In their sales and marketing efforts, home builders should be reminding prospective buyers that they still have the opportunity to take advantage of the $8,000 first-time home buyer or $6,500 repeat buyer tax credit. But home buyers need to act quickly because the sales contract must be signed by April 30 to qualify.
"It's not too late to take advantage of the home buyer tax credit," said NAHB Chairman Bob Jones. “There are plenty of existing homes on the market, and even though the move-in-ready, newly constructed home inventory has dwindled, builders may still be able to finish a home in time."
Buyers who sign a contract by the April 30 deadline then must close on the home by June 30 to qualify for the credit.
More people than ever before are eligible for a home buyer tax credit; NAHB estimates that close to 70% of all potential buyers should qualify.
"First-time" buyers don't have to be buying their first home ever; they are defined by the IRS as those who have not owned a principal residence in the past three years. Repeat buyers may be eligible for the new $6,500 credit, as long as they have owned and lived in their current home at least five consecutive years out of the past eight.
Income limits were increased for the current credits, enabling single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 to potentially qualify for a full credit.
NAHB's Web site at www.federalhousingtaxcredit.com — which has received more than 6.5 million visitors since the site was launched — provides basic information about the credit, detailed question and answer sections and links to additional home-buying resources for consumers.
"If you've been considering buying a home for any reason, the home buyer tax credit, in addition to historically low interest rates and competitive home prices, make it an ideal time to buy," said Jones.
Web Site Is One-Stop Shop for Tax Credit Info
Builders and other industry professionals can help spur home sales by referring prospective home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on both the extended $8,000 first-time home buyer tax credit and the new $6,500 repeat buyer tax credit signed into law by President Obama.
Consumers can use the Web site to find information on both tax credits — including frequently asked questions and links to social media sites that provide updated information as it becomes available. It also includes a number of home-buying resources for consumers.
Industry professionals are encouraged to highlight the tax credit Web site when marketing to their potential home buyer market.