Want that Home Buyer Tax Credit for a New Built Home? Buy Now!
Home buyers who are building their new homes and hope to qualify for the $ 8K tax credit should know that they have to be moved into their home by December 1st in order to qualify. A sales contract won’t do it! The credit is good until November 30, 2009, which gives home buyers whose residences are under construction only a few more months to qualify.
For already-built homes, qualifying for the tax credit is relatively easy. You buy a home, you move in. For those who are having their homes constructed, there are a lot more steps to go through before one can carry the first couch through the door.
It takes time to choose a buyer, to decide on a location and floor plan and any options that the builder offers. This can make buying new construction more time consuming than a pre-built home. Builders are open to working with buyers, but they are limited in how much they can accomplish in a short period of time. Building a home from the foundation up can take up to half a year, depending on outside factors like materials, worker availability and the kind of work to be done on the home.
There are also issues with contracts, home inspections and certificates. Most of the time, these are easily obtained and passed. However, if there is a problem, it could mean a delay of days or weeks while things get straightened out. You shouldn’t hurry through a new construction purchase just to get the tax credit. A home that is improperly built can cost you a lot more than $ 8K. The key is to plan very carefully and use builders with a solid reputation. Don’t skimp on inspections and certifications either; you will regret it if something turns out to be wrong with your home and your warranty has expired.
New construction buyers may still be in luck; apparently the effect on new construction by the tax credit has been small thus far. This could mean that builders are less busy with new construction and can still have time to build your home and move in before the first day of December. Ask the builders you interview how much of a workload they have and ask if they can give you some kind of guarantee that the home will be completed by the time you specify.
Builders want your patronage and are willing to work with you, but it’s getting to the point where they can’t build you the house of your dreams in the time allotted. If you have your heart set on a new construction, it’s time to start the home buying process, so you don’t get caught on December 1st with a half-finished home and no tax credit eligibility.