Tax Credit Extension or Not

We prospect diligently to find qualified buyers. We work with them tireless to find the perfect home. We negotiate expertly on their behalf to get an accepted offer. But then the real work begins these days. As we try to hold it all together and actually get to a successful closing.

NAR estimates that as many of 180,000 buyers along with the thousands of agents who worked with them may not see the keys to their new home or a commission check. These buyers had an accepted offer in place prior to the April 30th deadline of the HomeBuyer Tax Credit but may not be able to close that transaction by the June 30th deadline. Despite the efforts of many people, lawmakers failed last week to vote for the bill that would extend the closing from June 30th to Sept 30th.

This combined with the discouraging economic news on new construction and mortgage applications have been a frank reminder that although the first part 2010 gave us hope, we still have a long road ahead. There is still a slim chance that an extension on the closing date for the tax credit may happen. We’ll know more as this week plays out.

My first broker used to tell all his agents “Don’t spend your commission checks until you have them in hand.” This latest turn of events has certainly reinforced that advice.

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