If you’re planning on cashing in on the $8,000 federal tax credit for first-time homebuyers, you better start looking now. To qualify, you MUST close escrow no later than November 30, 2009. Millions of first-time buyers want to take advantage of the program, and that means title companies, mortgage companies and even realtors will be busy trying to get everyone into a contract and close escrow by the due date. Throw in Thanksgiving the week before and that will create a backlog of sales.

Thanks in part to the $8,000 first-time homebuyer tax credit, and in part to super-low mortgage rates, first-timers bought more than half the homes purchased so far in 2009. (Source: Home & Family Finance Resource Center.)

And don’t forget, the IRS defines first-time buyers as “taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase.” So, if you were a homeowner in a past life, you may still qualify for the credit.

Also, I don’t suggest making an offer on short sales at this time. If you’re not already in a contract for a short sale, I suggest not looking at them now. They can take up to 3 months just to get the approval from the bank, which puts you at mid-November, and then you’re in the middle of trying to close with millions of others by the end of the month with Thanksgiving interrupting everything.

Remember, the tax credit isn’t for those who tried to close by November 30; you have to be closed on or before November 30. There’s talk in Congress about extending the date, but don’t count on it. Check with your accountant or tax adviser to make sure you qualify for the credit, then call your realtor and start looking. There’s no time to loose!

Chris Campbell is a Realtor and Phoenix native serving the entire Phoenix metropolitan area. He also specializes in urban real estate and makes his home in downtown Phoenix. To contact Chris, please visit his website at www.PhoenixAZUrban.com.