By now, everyone looking at Austin real estate is well-aware of the first time homebuyer's tax credit incentive. Through the program, first time homebuyers can enjoy a tax credit of up to $8,000 when purchasing a home, with the total amount of the credit being equivalent to 10% of purchase price of up to $80,000. While this tax credit has certainly helped inspire many to purchase new homes and has also given the real estate market a bit of a boost, the unfortunate reality is that homebuyers are running out of time to take advantage of the credit.
According to a survey conducted by Realtor.com, 10.8% if homebuyers have cited the tax credit as the most important reason for buying right now. In addition, approximately 1.4 million people have already filed for the credit and experts expect this number to grow substantially when tax returns are due by next April. Still, unless a change is made to the current program, the tax credit will expire on November 30 - which is a very short time away when considering that you have to find a home, make an offer, get the offer accepted and close on the deal before November 30 if you hope to enjoy the tax credit.
According to the National Association of Realtors, the average first time homebuyer takes 12 weeks to find a home and the closing process can take an additional 60 days to complete. This means that any buyer who falls within these average timeframes is already out of time. Of course, if you get all of your paperwork in order and if you already have an idea of the home you would like to purchase, you can still get the property closed upon in plenty of time to beat the deadline.