Under the compromise reached this week, the $8,000 tax credit extension would cover first-time home buyers who sign a contract for a home by the end of April and close by the end of June. At the same time, it also creates a $6,500 tax credit for those who buy a home, but have owned a home for at least five consecutive years out of the past eight years.

Finally, under the $8,000 tax credit extension, the income limit would be raised to $125,000 a year for individuals and $225,000 for married couples. The up from the current income limits are $75,000 and $150,000, respectively.

Certainly, real estate professionals are all in favor of this $8,000 tax credit extension. Interestingly, both the Republicans and Democrats are in favor of the $8,000 tax credit extension. The compromise legislation could be attached to a bill that seeks to extend unemployment benefits.

If that choice is not made, the $8,000 tax credit extension might be moved as a stand-alone measure. Either way, both the full Senate as well as the House will have to approve the extension before it could become law.