Posted at: 04/16/2010 6:26 PM
Updated at: 04/16/2010 10:19 PM
By: Beth Wurtmann

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Tax credit deadline has homebuyers under pressure

ALBANY - "Time is of the essence," said 25-year-old Charlie Silverstein.

He said he's feeling the pressure, with only two weeks to seal the deal on a new house or lose the chance for an $8,000 tax credit.

He and his realtor were on a flurry of house tours Friday in hopes of getting a contract by April 30 so he can qualify for the federal first-time homebuyers tax credit.

"Buyers are right now getting a little nervous. It's funny. They waited until three weeks before and you didn't see people nervous until just recently," said realtor Leah Slocum with RealtyUSA in Delmar.

There are some income limits for claiming the tax credit. A maximum $8,000 tax credit goes to qualified first-time homebuyers and any buyer who hasn't owned a home in at least three years.

A $6,500 credit can apply for people who have owned a home for at least five years and are buying a new primary residence -- like Janice Coso, who's also home hunting in a hurry.

"Hopefully I will get that," she said about the credit. Coso is selling her house in South Glens Falls to be closer to family in Albany.

But to get the $6,500 credit she has to be under contract by the end of the month.

"There's a good chance she'll find a house and get under contract. And then she has 60 days to close which is definitely possible," said realtor Bob Vinsick of Coldwell Banker Prime Properties.

Another home buyer, Eric Carkner, is looking at two-unit homes. Because he plans to live in half of it, he could get half the tax credit.

"The tax credit is gonna give you the money to fix it up the way you want it," he said.

Realtors told NewsChannel 13 the tax credit has done a lot to help the industry.

"We've gotten a lot of calls from buyers, it seems, like toward the end. They're trying to get the money. It's good for us. Good business," said Eric's realtor, Melissa Herns of Prudential Manor Homes.

Scott Varley of The Scott Varley Group said the sales figures for the last half of 2009 are evidence of the connection.

"The National Association of Realtors determined that about 30 percent of those people that took the tax credit would not have purchased a home had it not been for the tax credit," said Varley.

The tax credit is motivating Silverstein to make an offer within the next week.

"I just have to do it. Eight thousand dollar tax credit, mortgage rates going up. It just has to be done," he said.