Q: We’re first time homebuyers and have been looking for a house over the summer.

There are several homes in our price range, but we can’t make up our minds. I know the $8,000 federal tax credit expires soon but I keep hearing that it will be extended. Do you know anything about that?
A: We are all hearing that it might be extended but not from reliable sources. It’s more a hope than a plan at this point and I don’t think you should just wait and see. That $8,000 can make the difference between getting you into a house or not. Don’t miss this opportunity!
Your purchase must close before December 1st or you lose that $8,000. Some folks are still confused and don’t realize that if you don’t owe $8,000 in taxes you will actually get the remainder in cash! That’s too good a deal to ignore.
There is another thing that you should consider. We have historically low prices on our most modestly priced homes right now. For many buyers this is the first time in many years that we’ve had an inventory of homes that they can afford. That’s not likely to last.
Since there are several homes that you are attracted to, you should get an offer in on one of them soon, so that you can close before that December 1 deadline.
Here are a couple of ways to help you make the decision. First, is the old adage; location, location, location. It should be a location that works best for your family and also offers good resale potential. A busy, noisy street is always less desirable than a quiet one, for instance.
Next, choose the home that’s in the best condition. Buying a fixer is tempting, but you should probably do that only when you have the time, money and experience to handle it.
It’s better to buy a house that’s a little bit ugly but in good structural condition, than one that’s cute but needs lots of expensive work done. Ugly is easier and cheaper to fix.