Now is the time to buy. You have likely noticed these signs all around town urging buyers off the fence and signaling the bottom is here. Whatever the case may be, there is no better time than the present to buy a home in Santa Fe. And if you are a first-time homebuyer or qualified to take the tax credit, the clock is ticking. While the National Association of Realtors (NAR) and other advocates try to get Congress to extend this credit, the expiration looms near. Monday, Nov. 30, is the last day a qualified buyer can close escrow, fund the mortgage, and record the deed on his new home to claim this $8,000 credit.

The tax credit is not just for first-time buyers. If you have not owned a home since 2006, you are eligible to take this credit, even though it is not your first home. If you buy a home on Oct. 15, 2009, you cannot take the $8,000 credit if you had an ownership interest in another primary home at any time from Oct. 15, 2006, to Oct. 15, 2009. For married joint filers, both must meet the test for the credit. There is also an income limit for this credit that proportionately reduces the amount you can claim. Talk with your tax adviser if you are a single filer making over $75,000 or married filers making over $150,000 to see how this will reduce the amount of credit you can receive.

The home must be the principal residence where you will spend 50 percent or more of your time. It can be a condo, townhouse, modular, or single-family detached residence. The credit is really the lesser of 10 percent of the cost of the home up to the maximum credit of $8,000. But in our local market, finding a $75,000 home is virtually impossible. Vacation homes, timeshares and rental properties are not eligible for the credit. Also, there is a recapture rule that states you must keep the home over three years; otherwise the tax credit must be repaid.

NAR estimates the credit has brought over a million buyers into the market to take advantage of this credit, but it is not enough. While month over month sales have increased, we are still a long way from recovery. NAR, with its 1.2 million members, is urging Congress to keep the credit in place for 2010 and broaden it to allow more people to benefit. If we can sustain the momentum achieved by this credit, the housing market could be brought back into equilibrium by next summer.

I urge you to let your U.S. senators and representatives know that you feel the first-time homebuyer tax credit should be extended. Our economic recovery is dependent upon a strong housing market and we have seen signs of improvement from the stimulus created by this credit. But time is running out. If you are planning on using this credit, talk with your accountant to get the facts as they apply to you. Time is of the essence and now is the time to buy!


Melissa Pippin-Carson is an associate broker with Sotheby's International Realty. Contact her at 984-5128 or mel@pipstips.com with your questions or suggestions.