Deadline looming for home buyers' tax credit

Deadline looming for home buyers' tax credit

The owners of this home for sale in the Leschi area are hoping that an expiring federal tax credit will create a seller's market in the coming days.

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By Luke Duecy

SEATTLE - Last-minute home buyers are scrambling to take advantage of the federal government's tax credit before it expires next month.

And some experts think the deadline could actually jump-start the local real estate market.

The deadline to qualify for the $8,000 homebuyer tax credit is Nov. 30, and real estate brokers are warning people they'd better hurry if they want to get in on the deal.

Real estate agent Chris Sudore said he's seen a mad rush on homes in the last few weeks, which shows that people are listening to the warnings.

"We're starting to see it start to go in a positive momentum," he says.

He said buyers are chasing last-minute deals - trying to take advantage of the tax incentive.

And business is so good, he says, that if the tax credit expires he's not too worried.

"If there's no extension, I think what we've seen more than anything is a jump-start in activity," he says.

Others, however, are still leery after the real estate market collapsed two years ago.

A leading real estate expert claims that one out of every three homes sold in Washington state is due to the tax credit. So, the question becomes - if that tax credit goes away, will home sales then go away?

Sudore thinks homes will still sell - depending on whether the neighborhood is hot or not. But he's not sure whether it will be a buyer's or seller's market.

Sunny Choi, whose home is up for sale, is hoping it will be a sellers' market. She'd love to take advantage of any last-minute rush of first-time buyers trying to beat the tax credit deadline.

But she also knows there's a chance she won't get one bite.

"And hopefully the buyers have an agent who can aggressively work on their loans and get it done within the first three or four weeks," she adds.

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