Florida home buyers will benefit from extension and enhancement of tax credit

Florida home buyers will benefit from extension and enhancement of tax credit recently voted for by the House and Senate and now waiting for the President's signature. The tax credit extension will give Florida residents into next year to purchase a home in order to take advantage of the up to $8,000 for first time home buyers.

Once the extension and enhancement becomes law I will post the details that include a tax credit for existing home owners too.


Related blog posts on home buyer tax credit

Should the home buyer tax credit be extended?

There is strong support from real estate agents for the Government to extend the tax credit for buying a home. The current tax credit for the first time home buyer is scheduled to end on December 1st.

One benefit of extending the tax credit

One possible benefit I can see for extending the tax credit involves the short sale contingency listing inventory. With the current tax credit set to expire, buyers may not be as willing to make offers on homes listed with a short sale contingency due to the length of time it often takes for a short sale transaction to close. Some buyers could find themselves missing out on the up to $8,000 tax credit simply because the home they fell in love with was subject to a short sale. Extending the tax credit will allow buyers to choose homes from all available without fear of missing the deadline.

Win Win Win

Extending the tax credit will result in additional first time home buyers taking advantage of this unique opportunity to own a home. Listing inventory will be reduced, including short sale listings to the benefit of distressed sellers and overall market conditions throughout Florida and the rest of the country should continue to improve.

What do you think? Should the home buyer tax credit be extended?

Related Florida real estate views:

Up to $8000 tax credit, does not have to be repaid!

Video offers an explanation of the first-time homebuyer tax credit

Tax credit even if you have owned a home in the past