Tax credit crunch time: Get in under the wire

Episode 22: It's crunch time for the federal homebuyer tax credit program -- buyers must be under contract by the end of the day to qualify.

In this Wheel Estate Cam segment, real estate broker Frank LLosa recommends some tips to get deals done on deadline day.

And he offers an important cautionary note: if you have any doubts about the federal rules in place check with an attorney to make sure your deal is valid. The Internal Revenue Service instructions for the credit can be viewed at this link: http://www.irs.gov/pub/irs-pdf/i5405.pdf.

Another cautionary note to follow the letter of the law: The Associated Press reported this month that about 20 percent "of all IRS examinations done by mail in the past six months were for people claiming the (homebuyer tax) credit," according to a report by National Taxpayer Advocate Nina E. Olson to a congressional committee.

LLosa suggests that listing agents can work with sellers to do the legwork in preparing a suggested offer to an interested buyer -- of course, it's usually the other way around, with the interested buyer submitting the offer.

"What that does -- it makes it so the listing agent is taking an extra hour or two to fill out the form and send it to the other party so all they have to do is sign on the dotted line," LLosa says.

"If your client is no longer trying to get full price but doesn't want to change the list price in the MLS for various other reasons, you can actually send an offer that's less than list price, with your client's permission," he suggests.

And buyers who want to get their offer approved before the under-contract deadline may want to submit backup offers by the end of the day on properties they like -- in hopes that the primary offer falls out and their offer is accepted under the wire.

Comment below to share your thoughts.

Watch past episodes of the Wheel Estate Cam.

Frank Borges LLosa is the broker, founder and owner of FranklyRealty.com, a real estate brokerage in Falls Church, Va. He is the creator of the Trust Me I'm a Realtor blog and multiple listing service wiki site FranklyMLS.com. You can follow him on Twitter: @franklyrealty.

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