14 News, The Tri-State's News and Weather Leader-Tax credit deadline pushing buyers, sellers

Tax credit deadline pushing buyers, sellers

By Laura Forbes - bio | email | Twitter
Posted by Rich Miller - email

EVANSVILLE, IN (WFIE) - The busy spring home buying season is being pushed up thanks to the home buyers tax credit. Buyers and sellers alike are trying to get in under some tight deadlines.

The post-holiday winter is typically the slow season for real estate according to local real estate agent Carol McClintock.  "The cold.  People don't want to go out," she said. "It's gray, homes and neighborhoods don't look as nice as they typically do even around Christmas with the lights."

But she says 2010 has been a different story.

"We, as realtors, have been guilty of telling people, 'you need to get your house ready and we'll list it mid-April when the trees are out and the grass is green and everything looks great.' Now we're telling sellers 'forget that'."

That's because to qualify for a tax credit, ranging from $6500 for repeat buyers and $8000 for those buying their first home,  purchase agreements must be in place by April 30 and close on the deal by June 30.

It used to take about 30 days to close on a house, but new banking regulations have pushed that to about 45 days.

McClintock says only a few weeks into the new year, the local real estate market is looking up. "We had not seen any condominium sales in 2009 really at all. This week our office alone has sold four condos."

She says long term sales might see a slight drop once the tax credit is over and those buyers are out of the market.  However, new ones are on the way.

"We're seeing corporations come back and bring people in a way we haven't seen in 18 months."

McClintock says they will likely buy homes in the summer.  Offsetting any slowdown, and keeping the real estate market on an upward trend.

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