baltimoresun.com

« What home sellers wanted, and what they got | Main | All hail home maintenance (emphasis on "hail") »

May 16, 2010

The home buyer tax credit effect

I'm sure this wouldn't be true of a scientific poll given to truly random people, but more than 80 percent of you Wonk readers say the home buyer tax credit had some impact on you.

The most popular answer: "I tried to buy before the deadline but couldn't because so many others had the same idea." (One in four people said that applied to them.)

Next, with 21 percent of the vote, were the folks who got the credit already or qualified and will be getting it.

Seventeen percent of you said you've been purposely waiting to buy until after the credit expired.

No homeowner said they've been purposely waiting to sell, but 12 percent picked this option: "I tried to sell before the deadline but wasn't able to."

Only a small handful said they sold to a buyer getting the credit, including those who turned around and got the $6,500 repeat-buyer credit. (A lot more first-time buyers took the poll than sellers.)

About 19 percent of polled folks said the credit had absolutely no effect on them.

Of course, I forgot to include another option: "Sure, it's having an effect on me -- it's having an effect on us all because that's taxpayer money they're handing out." Sorry about that. An answer along those lines was a fairly popular choice in an earlier poll.

While we're on the subject of the tax credit: Kenneth Harney had a recent column warning folks not to blithely assume that closing by June 30 -- as the credit requires -- will be no sweat. He lists things you'll want to keep in mind, including this recommendation:

Jay Delmont, vice president of Freedmont Mortgage in Hunt Valley, Md., said home buyers who seriously want to close in time need to get the process moving with lenders immediately to avoid the late-June crush. The "main concern," Delmont said, "is that a lot of contracts are being written for a June 28-30 settlement and people need to schedule a slot" with title or escrow agencies as early as possible.

Comments

Let's hope many, many fail to close on time, and that the tax payers are spared a large sum of coin.

I would not be surprised at all to see a nice chunk of those contracts fall through. If they don't close in time, and the credit is no longer a factor, I am sure the majority of the buyers will back out.

We had a contract before April 30. However that contract fell through. Can we find another home, still close by June 30 and get the credti??

Kathleen, the IRS says a buyer "must enter into a binding contract to buy the home before May 1, 2010, and close before July 1, 2010, in order to obtain the credit."

I doubt the agency is going to accept a deal with a contract signed after April 30, even though another one was signed before. But I am not the voice of authority on IRS decisions -- don't take my word for it.

Post a comment

All comments must be approved by the blog author. Name-calling aimed at other commenters is not welcome here. Please do not resubmit comments if they do not immediately appear. You are not required to use your full name when posting, but you should use a real e-mail address. Comments may be republished in print, but we will not publish your e-mail address. Our full Terms of Service are available here.

Verification (needed to reduce spam):

About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
Baltimore Sun articles by Jamie
-- ADVERTISEMENT --

Most Recent Comments
Baltimore Sun coverage
Baltimore Sun Real Estate section
Archive: Dream Home
Dream Home takes readers into the houses of area residents who have found their ideal home.
Sign up for FREE business alerts
Get free Sun alerts sent to your mobile phone.*
Get free Baltimore Sun mobile alerts
Sign up for Business text alerts

Returning user? Update preferences.
Sign up for more Sun text alerts
*Standard message and data rates apply. Click here for Frequently Asked Questions.
  • Sign up for the At Home newsletter
The home and garden newsletter includes design tips and trends, gardening coverage, ideas for DIY projects and more.
See a sample | Sign up

Charm City Current
Categories
Stay connected