First Time Home Buyer Tax Credit NOT Extended Depsite What You May Have Heard.
Don’t believe the hype… it’s wrong.
Update: The amendment allowing for the extension and expansion did eventually pass and was signed into law by the President. You can read up on the new rules and changes in “First Time Home Buyer Tax Credit – The New Extension And Expansion.”
Ugh. Here we go again. The First Time Home Buyer Tax Credit has not been extended, despite what you may have heard in the last 24 hours. I hate to be the bearer of bad news, but it’s true. The First Time Home Buyer Tax Credit is set to expire November 30, 2009, just as it always was. There has been no extension and nothing passed that makes it available to “move up buyers.” As of today (October 29, 2009), you have exactly 32 days (see the tax credit countdown clock) to close on a home in order to take advantage of the $8,000 tax credit being offered by the government.
“But I read it on Twitter!”
“I read it on ActiveRain!” “I saw it in the email from my Realtor®!” “My agent called me yesterday to tell me the great news!” Guess what folks? Those people that told you that? They lied. They screwed up. They trusted another source who told them. They’re just plain stupid. However you want to paint the picture, they are wrong. And we as real estate professionals wonder why we get a bad rap? People make mistakes, I’m fine with that. But once again, we’re looking at a mass scale spouting of incorrect information. I’m shocked, saddened, and more than a bit frustrated.
Let’s get it right.
The Senate reached a tentative agreement on proposed legislation. Of course, if you know much about politics, that’s only one step of many. No votes, no signings, no deal. I have seen many tweets and references on sites to articles – many of which have no wrong information in them. Yet the message others choose to add to that link is that the First Time Home Buyer Tax Credit has been extended.
The link most commonly quoted is the CNBC article “Democrats Agree to Extend Home-Buyer Tax Credit: Dodd.” Take a moment to read that article. Read it through and tell me where you see an announcement that it has been extended. It’s not there. It never happened. In fact, the article is quite clear that a vote in the Senate on whether or not to take up a bill to extend unemployment benefits is expected to happen Tuesday at 6PM (5 days from this post’s writing). That bill does not include an extension of the First Time Home Buyer Tax Credit at this time. If Senate Majority Leader Harry Reid can get the 60 votes necessary to take up that bill, he has said he would offer the tax credit extension as an amendment.
As you can see, we’re not there. Yet. Most agents I know seem to think it will happen at this point. I was speaking with Jay Thompson, “Phoenix Real Estate Guy,” who has written a brilliant article on the misinformation about the tax credit and we agreed that very few politicians would be able to vote against an extension and expansion of the tax credit. Doing so would probably be marked as political suicide. Shame that many leaders vote based on how to get re-elected, but it happens everyday. If you don’t know Jay’s real estate blog, I suggest you read it no matter where you live – Jay is an amazing guy who has personally helped shape me as a real estate agent through his words and deeds).
Spread the word.
I ask you, the readers of RErockstar.com, to please spread the word to your friends and family. If you hear someone say it has been extended, let them know the real deal. The misinformation is always quick to spread and it makes me sad to watch. Our industry will never shake its image if we continue on like this. Unfortunately, because we are such a loose collection of individuals, there will always be some who are misinformed or unwittingly (or worse, knowingly) pass false information onto their clients. That (small) percentage of the Realtor® population will always tarnish the image of those who work hard, care for their clients, and want this industry to move past the image of slimy snake oil salesman and guys in leisure suits selling used cars.
When (and if) the First Time Home Buyer Tax Credit is expanded or extended, I will bring you the news as quick as I can type it. In the meantime, if you ever have questions, feel free to contact me and I will get them answered. I love getting feedback from readers on topics to cover and the nagging questions that you need and want answered.
photo courtesy of Nima Badiey
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Comments
REROCKSTAR,
It is obviously saddening to see the lack of understanding of the political process among the public. However, I really believe those who carry most of the blame are the editors of of the on-line journals. They purposely allow these outrageous headlines that basically contradict the text of the article, just to get eyeballs. Now, yes, we should read the article, before spreading the word. But aren’t these editors (and their bosses. and their bosses bosses) the ones we should be holding to a higher standard?
Doug
Well at least there is someone out there with a clue! Great summary Matt. As we discussed, I find it stunning that some many people, including some of the mainstream media, are saying that the tax credit has been extended.
It hasn’t. Period. And it’s not until the President signs it.
Will it be extended? Almost certainly. But lots of things can change between now and when it actually is signed into law. I know you remember all the iterations of the $15K credit — lots said that was a “done deal” too….
Jay Thompson´s last blog ..THE TAX CREDIT HAS NOT BEEN EXTENDED. Yet. So PLEASE stop saying it has been!
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