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Rick Hubbert
Senior Mortgage Consultant
On Q Financial
WA Lic. 510-LO-37044
425-643-7000 PhoneUS Senators Near Deal On Extending Home Buyer Tax Credit

By Jessica Holzer, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S.Senators are nearing a deal on a measure to extend the first-time home buyer tax credit through next April and expand it to some buyers who already own a home.

Under the deal, certain "step up" buyers who have lived in their current home for at least five years would also qualify for the tax credit, according to lobbyists close to the negotiations.

The deal comes amid heavy housing industry pressure to extend the tax credit, which is set to expire Dec. 1 unless Congress acts. The measure, which proponents hope to offer as an amendment to legislation extending jobless benefits, could receive a Senate vote this week.

Under the measure, the credit would run through April 30 of next year, though sales contracts in force by that date would be eligible as long as the deal closes within 60 days. The credit would amount to 10% of the sales price, with a maximum of $7,290. The current credit has a cap of $8,000.

To qualify, first-time home buyers must make no more than $75,000 a year or $ 150,000 for couples. For step up borrowers, the income caps are $125,000 for individuals and $250,000 for couples.

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So, it looks to me like it might be a good time to start thinking about a move up if you've been in your home for 5 or more years, or selling that home in the $400,000-$700,000 range to a move up buyer.

Recently in my office I listened to a story about a Buyer who had just missed out on the house they wanted to call home.  How?  They waited several days after the home came on the market and by the time they wrote their offer, someone else had beat them to the punch.  I think in today's market it is easy to over-strategize or get lackadaisical and forget one of the fundamental rules in real estate: "time is of the essence".

Even in today's slower paced market if you identify the home that fits you and your family, you still must move quickly.  If you are interested in a house, there is a chance that someone else may be too.  Often in today's market people hesitate to write an offer immediately because they do not want to pay full price.  I understand that.  However, if it is a home you really want, I would suggest writing your offer immediately.  Simply make the offer that you feel is appropriate for the home.  At a minimum, it shows the Seller your interest and raises the likelihood that you will be involved in negotiations on the home, even if there is another offer. 

If you decide to hold off on your offer and are willing to take the risk of losing the home to another offer, be sure that it is over a dollar value that you can live with if you lose the home.  If you are buying the home for the long term (as you should be) maybe a $10,000 to $20,000 reduction in price is not as important as getting the house that feels like home.