New homebuyer tax credit expires

NASHVILLE, Tenn. – An $8,000 incentive has lured thousands of first time homebuyers into the real estate market in the Nashville area and across the nation but it ends Friday at Midnight.

Julie Johnson, a real estate agent with Your Move Real Estate, told News 2 the tax credit has kept her “extremely busy.”

“We have been extremely busy, not with just first time homebuyers trying to make the deadline but also with the sellers trying to get their homes on the market to benefit from the purchase of these buyers really rushing for the incentive,” Johnson explained.

The original deadline for the $8,000 new homebuyer tax credit was November 30, 2009 but was extended five months, until April 30.

One new change to the credit deadline is that new homebuyers only have to have a contract written up by the deadline.

As long as there is a binding contract, new home owners have until June 30, 2010 to close.

Johnson said some of her clients cut it pretty close.

“There have been some contracts that have fallen just from odd circumstances so we have had to get back out there and search for their perfect home,” she said.

Tony Fowler is one of her clients who had a contract on a new home fall through and scrambled to find new one.

“The contract is signed and I have given the earnest money,” said Fowler from the door way of his soon-to-be new condo.  “We are just ready to move in.  My home inspector is here and we are getting it inspected right now.”

Fowler will close on his new home in early May and still qualifies for the $8,000 tax credit.

“I really wanted that,” he said.  “If I lost that it is pretty much loosing a free $8,000.”

Joe Repass, a mortgage loan originator with Avenue Bank, told News 2 a lot of people have been scrambling at the last minute to make the deadline.

He cited one woman who lost out on two bids and was writing another offer on Friday.  Repass said he expected to work late into the night Friday.

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