When you listen to the news or read the paper, it sounds quite good. A Senate Committee agreed to extend the $8,000 federal tax credcit beyond the current November 30th deadline.
Whoo Hoo! Break out the champagne!
Well, not just yet.
What you are hearing about is just the first of many steps in the process.
- Once it leaves the Senate Committee, it must be approved by the entire Senate - not necessarily a given.
- It must complete a similar process in the House of Representatives, and that hasn't happened yet - and might not.
- It must survive a "Conference Committee" where the House and the Senate get together to iron out any differences between the two bills.
- President Obama must sign it into law.
This isn't a slam dunk. While our legislators have some concern about the housing market's recovery, this provision will cost the taxpayers a bunch of money. And even Congress is getting a little bit careful about how they are going to spend. While many in our business would like to see the tax credit remain, there are many on Capital Hill who view this as an artificial prop that is a very short term fix, and quite expensive.
So, it isn't even close to being adopted.
It's just the first, and very important, step to what might or might not happen.
Good Article. We learn a lot from blogs on Active Rain. Thanks.
We in the real estate industry are watching this with baited breath.... and I am sure a whole LOT of our lobbyists are working overtime to make this bill happen...... I hope the bill does extend the credit... home buyers need it.....
=-)
Good to know. Thanks for the update.
Thanks Pat for the update and I hope it passes to give those who weren't quite ready or didn't quite qualify at the time a chance to take advantage of the tax credit.
Edward and Celia, I think we should get continuing education credit for reading blogs on Active Rain!
Alexander, there is also a fair amount of opposition to it. If you feel strongly, and it sounds like you do, drop a line to your Senators and Congressman.
And Amy and Wanda, It will give a lot of people a second chance.
I'm thinking they are afraid to formalize anything much before November 30th, because it might slow things down if there isn't a deadline closing in.
For once let us think positive! Have a Faith that the people we put in office will come through.
Hi Pat...Sound Complicated...mmm I'm sure it'll pass :O))
Paul and Fred, that's the attitude!
I have made a comment on all the posts that were inaccurate and lead one to believe this was a done deal.. glad you posted this to clarify the status!
Pat: Had the "It's Approved" email in my inbox this morning from a fellow Realtor. I think we need to add a course on government to our continuing education cirriculum.
Pat
If some buyers were to act and buy they might want to buy with you this weekend.
Thanks for clarifying Pat. I think there are buyers who are reading articles in the paper this week and assuming they can just wait as the extension gives them more time, but may be very disappointed as it is far from a done deal.
Pat
Very informative post thanks for sharing the information.
Good luck and success.
Lou Ludwig
Pat --- thank you for your post --- I have been telling my agent-owners all day that this thing is not done yet. Everyone is getting excited too fast, I'm afraid.
Mama Liz
Thanks for the clarification Pat. There definitely is some misleading information floating around!
Pat - The football game takes 4 quarters and a full 60 minutes. Claiming victory in the third quarter is a rookie mistake and lends to problems in the 4th quarter. Cheers to your cautionary tale. Blogs have consequences when inaccurate info is posted. Keep posting the advice thet keeps us from E&O . We need it
It didn't help any of my buyers get off the fence, so I'm one that doesn't see it making a difference in my business or the area. Most of the buyers are move up buyers taking advantage of the rates.
Hi Pat...I wrote a post on this a cople of days ago but definitely wrote that is was being considered. I agree, that's far different than approved. However, it is good news for those that would like to see something like this to know that there is a possibility.
Kate
Pat---Thank you for your post. I had read other posts that said it was a done deal!
The odds are good but still not for sure. Thanks for the update.
Pat, I particularly appreciate this update, as I I have been travelling and gotten several emails and personal communications about the extension having been passed. In my attempts to "document" this before passing on to clients, I was unable to. It's too bad headline can be so misleading/incomplete. And while it's tempting to don the hat of Town Crier and be the 1st to get this to our clients and sphere, we still need to do our homework.
Pat - it looks like if clients don't already have that closing lined up, they missed the boat - it is the same with purchasing, those that are still procrastinating will soon have missed that boat too!