Backup offers can still qualify for first-time buyer tax credit

Home Sale Hindsight

Q: Could a backup offer, submitted prior to April 30, be considered a binding contract, for purposes of qualifying for the first-time homebuyer tax credit, even if it’s not formally in contract until after the deadline?

A: I know so many buyers who worked for months to get into contract in time to qualify for the 2010 first-time homebuyer credit. For some, it was meant to be, and for others, it wasn’t — and many wise homebuyers decided they would not feel pressured into buying if the "right" home hadn’t yet come along or bidding more than they would have otherwise, because of the urgency created by the credit deadline.