By Jay Hummer

Tick tock, tick tock….

The countdown is on. Prospective buyers who are looking to take advantage of the available federal tax credits are in hurry up mode in an effort to beat the upcoming deadline.

To qualify, buyers must enter a deal to purchase a home by April 30th and close by June 30th.

For the first-time homebuyer tax credit of up to $8,000, the activity remains strong. There continues to be a sense of urgency for eligible buyers to cash in on this incentive and fulfill the dream of owning a home. This activity has continued to fuel the marketplace, even in these cold winter months.

As for the repeat buyer tax credit of up to $6,500, this is a market that remains largely untapped. Quite frankly, it hasn’t received the type of hype that the first-time buyer credit has, and therefore people are less familiar with it. However, it is something that people should get more familiar with because it is an excellent opportunity current homeowners looking to trade up or down.

One thing that is clear right now, the inventory supply is light. There is a strong demand for homes, especially those marketed towards the first-time homebuyer. For potential sellers this could be an opportunity to take advantage of this demand, and put your home on the market. I’d encourage you to contact your local RE/MAX agent to see if the timing is right for you—many sellers have decided to jump out in front of the spring market and have benefitted from doing so. Sellers are also paying attention to recent reports, like the Massachusetts Association of Realtors’ January report that indicated that Massachusetts home prices went up for the second straight month.

As the clock continues to tick, the question we hear most is “What will happen once these tax credits are exhausted?” During a recent speech in Boston, RE/MAX of New England President Walter Schneider cast some light on this topic. He hit the nail on the head when he said that interest rates moving forward will be the major driving factor in the marketplace.

Right now there remains the perfect storm of factors making it a good time to buy. The government credits coupled with historically low interest rates continues to motivate people. Right now, first-time buyers are on the edge of their seats. They are waiting for the right inventory to come onto the market so they can make their move without hesitation.

To use a sports analogy, it is very much like a two minute drill in football. In football the team develops an offensive strategy to move the ball down the field quickly, before the clock runs out, in an attempt to win the game. In real estate right now, buyers are on the field, and ready to execute a rapid series of actions in hopes that the timing will work out, and they will become new homeowners in time to cash in on the available credits.

To be ready to act quickly, you should have your game plan in place. First, get your financing in place—find out what you are approved for and live within your budget. Also you should research the communities you are interested in, get an updated credit check, and contact your local RE/MAX agent to help you throughout the process. Don’t let the clock run out on your opportunity.

Jay Hummer, the Executive Vice President and Regional Director of RE/MAX of New England, has 25 years experience in the real estate franchise industry, beginning his career in New York City in 1984. As the Executive Vice President and Regional Director, Hummer oversees 220 offices and nearly 3,000 sales associates in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. The RE/MAX website is www.remax.com.