Well, my experience is that few buyers put in 'back up' contracts on houses they like....I guess they don't like being second best. Fair enough, I guess. But, in this case, if you're trying to lock in that tax credit, you might want to re-consider.
If you're in a ratified contract (make sure you know exactly what this means) by April 30th, and proceed to settlement by June 30th, and you otherwise qualify, then you should be able to get your tax credit.
I am recommending that my buyer clients consider taking second position in a back up contract (carefully worded) for a home they would like to buy, and then continuing to look for something that is more readily available. If you find something else, great, you can withdraw that 'back up' contract. But, If something on that primary contract falls apart (and they do fall apart more often than sellers or agents would like), you'll be assured the opportunity to buy that home you liked before it is marketed again to the open public.
Plus, if you ratify a back up contract by April 30th, and then the 'primary contract' falls apart in May, and you buy that house and settle by June 30th... guess what? It may be the 'trick' that puts an extra few thousand dollars in your pocket.
It is much better than saying to that listing agent "call me if something falls apart"... if it falls apart in May, and you didn't have a ratified contract in APRIL, you may have just left money on the table.
Be strategic all about all aspects of your real estate transaction, and make sure you've hired a buyers agent who is advising you of strategies to save you every penny possible.
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PLEASE NOTE: I am not a tax advisor, this is real estate advise and not tax advise. Before relying on the information contained in this post, be sure to check with your professional tax advisor or CPA, or contact the IRS for confirmation.****
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Vicky Chrisner
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