The clock ticks for new home buyers

Time is quickly slipping by for purchasers who hope to close on a home sale in time to claim the up-to $8,000 first-time home buyer credit that expires at the end of November.

That makes now an excellent time for a checkup on your local housing market. In particular, investigate the pipeline of pending sales – is it flowing freely or clogged? Is there a danger that willing buyers will be shut out of the credit due to any paperwork backlogs at lenders and title companies?

Here’s the latest IRS bulletin on the credit, which is up to 10 percent of the sale price. Eligible buyers must not have owned a principal residence within the past three years; the credit phases out for single filers earning more than $75,000 and married filers with income over $150,000. Be sure to note that it’s a fully refundable credit, meaning that filers will get the full amount even if their overall tax liability is lower than that.

Real estate and lending experts have warned that buyers making offers toward the end of October and beyond risk underwriting snags and other delays that could cause them to miss the deadline.

The National Association of Realtors has an extensive portal devoted to the credit, including factoids, an in-depth primer and legislative news.

That trade group, among other entities, is lobbying for an extension of the credit, which is part of the 2009 American Recovery and Reinvestment Act stimulus program. So far, the tax break is credited with boosting the nation’s moribund housing market by some one million sales.

To keep abreast of legislative changes, keep an eye on the Mortgage Bankers Association site; here’s a summary of the trade group’s Congressional testimony on Wednesday.

Bear in mind that many states also run assistance efforts aimed at making housing affordable to first-timers; check with your state’s housing authority for statistics and rules. The National Association of Home Builders operates a Web site on the federal tax credit; - note, you can follow developments via Twitter, Facebook and YouTube as well as through conventional means. The Facebook page in particular highlights the complementary state programs for new or low-income buyers.

Localize coverage by following families attempting to beat the deadline; tracking their red-tape triumphs and setbacks could make for a dramatic and appealing standing Web feature or blog. Another approach: Enlist local Realtors to help you create a graphic checklist for prospective buyers, with specialized tips for those with poor credit, job complications and other precarious scenarios.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.

Greenbacks for green appliances

Readers whose car didn’t make the clunker cut might still be able to cash in on government stimulus money by junking those old refrigerators and other items.

The U.S. Department of Energy has given states until October 15 to outline how they will allocate $300 million in federal stimulus funds set aside for appliance rebate and recycling programs. Among the eligible items – which must be replaced with efficient Energy Star-rated models – are refrigerators, dishwashers and laundry machines as well as air conditioners, furnaces, freezers and others.

Here’s the DOE’s July release on the campaign, which says most funds should be released by Nov. 30.

This MSNBC article explains the pitfalls of the mission, which unlike the nationally standardized cash-for-clunkers auto incentive program, is going to operate differently in each of the 50 states.

This section of the DOE Web site, which provides a breakdown on how its share of the American Recovery and Reinvestment Act funds, includes an interactive map; you can click on your state for a breakdown of stimulus cash allocation. Note also the links to state budget requests to the DOE and other resources.

Then, check with your state’s energy or environment department to find out who’s in charge and what shape the local program will take.

Obviously retailers, manufacturers (what few appliance makers still reside in the U.S.), scrap handlers and other affiliates are key interview targets. As with all such programs, skeptics abound and you’ll want to include their viewpoints.

One interesting question: Will replacing these big ticket items in time for the rebate sap consumers’ cash away from the usual fourth-quarter big ticket items: personal electronics destined for holiday gifts? Talk with dealers about what they’re anticipating and how they may be shifting inventory or promotions. (Buy a freezer, get half off on a DVD player? Who knows?)

As always, keep an eye out for local dealers doing a riff on the clunker theme. My junk mail this week included a catchy “cash-for-clunkers” trade-in offer from Husqvarna, the maker of upscale sewing and embroidery machines. The offer isn’t chump change, either: It’s worth up to $3,000 on qualifying equipment.

No doubt more retailers will be trying similar copycat sales. Round them up under one Web link from your business pages as a handy reader service and a catchy complement to your substantive business story.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.