By now you are all aware that the $8,000 Federal home buyers tax incentive is due to expire on April 30th. And most buyerslooking to take advantage of this are probably in escrow already. 
Anyone closing after April 30th is going to be able to take advantage of the $10,000 California first-time home buyers tax credit also. However, be ready to file that paperwork immediately because that money is going to be gone quicker than you can say "Jack Robinson". Imagine, a tax break of $18,000 because of the right timing. And timing is going to be what it is all about. The quicker you close after May 1st the more chance you have of getting under the wire before all the money is gone. There is only $100 million available for first-time home buyers and another $100 million for the purchase of previously unoccupied homes.
Unfortunately, what is likely to happen is that buyers due to close prior to April 30th might try and delay their closing. This is a double-edged sword because they will be putting their negotiated contract in jeopardy, and taking away money from those who have played fair, as they jump on the available California funds first.
There should be penalties in place for anyone delaying the close of escrow past the agreed-upon date (up to and including April 30th) in order to cash-in on a further credit. After all, those who were unable to take advantage of the Federal credit should be given a fighting chance to collect on the State credit.
The real winners and going to be those whose natural closing dates are shortly after April 30th. But that is what timing is all about.
Jane Peters, connecting you to the L.A. real estate scene
Buying or selling real estate in Los Angeles can be an overwhelming process. Contact Jane Peters, Los Angeles realtor specializing in absentee owners, out of town buyers, and those who need that extra attention, in order to make the transaction a smooth, trouble-free, and fun experience.
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Hi Jane-
Are you applying fairness and good sportsmanship to real estate Buyers and Sellers? It's going to be hard to overcome. I would definitely be advising anyone thinking of delaying closing according to their contract to get an amendment immediately or be prepared to talk to attorneys!
--Sara in San Antonio
So how many days do you think the money will last Jane? Sounds crazy. They should have made it for contract date after say April 15th, to prevent people from delaying closings. Sounds like the next few weeks could be just nuts out there.
Sara, there may be some very angry sellers that's for sure.
Tammy, they say 10-20 days if you can believe it. It is going to be nuts. And the people who file early and don't get the tax cut..... oy!
As a top lender, I have many clients who are getting into contract...and some are thinking the Federal Tax Credit is not worth it...as we saw the home prices run way up in certain areas before the Credit was extended and as opposed to participating into multiple offers on some of these homes, they (some of my clients) are thinking to wait until after May 1st and watch the prices come back down, more than the worth of the credit.
So we will see, but in a couple of instances, I agree with them. Any way - just a thought.
Have a good evening.
Mike
Michael, thanks for the input. Interesting tack. That is a good move if prices do indeed come down. It will be interesting to watch.
Jane - Great information. Our CA tax credit will run out quickly. A lot faster than I originally estimated. ~ Doug
Doug, we should be betting on the day it runs out.
Jane that would be a great contest, betting on when the money will run out. It amazes me how quickly people figure scams to programs, it really is too bad...
Good morning Jane,
It sounds like Vegas odds! It will be a stampede and those winning will certainly be happy home buyers!
Jane:
This is quite amazing to me. I didn't know California had any extra money to give away. I thought the state was struggling. How can they possibly do this?
Gerry, Tammy is right. They should have started the California program away from the Federal one to avoid this, although it is an extension.
Dorie, stampede. I like that.
Claudette, go figure.
Jane, it seems the punishment for cheaters will be the loss of ability...unfortunately it also punishes the agent that gamed the system and those that don't! Taser 'em!
Jane, sounds like you will need to have a few gallons of coffee on hand a supply of contracts and send me a plane ticket to help you. Hope you get in on a ton of this!!
Claude, hopefully no one is going to lose. That would be sad.
Nick, I am sure you would pay your own way just for the pleasure of working with me :)
I'm still just shaking my head over the whole idea. First offering something that the state can't really afford. And now the date struggle? government... what is there it say?
Ruth, it is all mismanaged if you ask me.
Jane - Just wanted to check back. I like the idea of wagering for points on what date the funds are exhausted. Entered the other contest. But lo my points are too low! :<)