The New Homebuyer Tax Credit Won't Die --Should It?

Karen and Greg Osmon had outgrown the three-bedroom Winston-Salem, N.C., home they lived in with their two children, so they put it up for sale. Unfortunately, they did so in December of 2008, at the height of the financial crisis. With the economy in a downward spiral, they couldn't find a buyer, and when the property didn't move for over a year, they were forced to pull it off the market.

The Osmons decided to try selling again in early May of this year, but they'd missed a chance to capitalize on an incentive that had boosted home sales in the months prior: the first-time homebuyer tax credit, an $8,000 federal rebate whose April 30 deadline boosted sales of new homes in that month by 48% over the previous year, according to the Census Bureau

The Osmons had to bring their price down even further from its original $199,900, but given how sluggish the market was, they were willing.

The Bonus Buyer sales event, attracted enough buyer interest that this time the Osmon's home sold after just over a month on the marketBeing part of the Buyer Bonus program kind of shows your willingness to work with prospective buyers."

Many real estate industry players took note of the new customers the government's homebuyer tax credit brought to the table. And now that it has all but wound down--on Thursday Congress passed a bill giving buyers who had entered contracts before April 30 an extra three months to close their sales--they are looking for ways to imitate its success.