In the next two or three weeks some Realtors expect to see a rush on home sales before the end of the year. It’s not wishful thinking from agents desperate for much-needed commissions; it’s confidence in the power of one of the most beloved words in the English language: “Free.”

A Federal tax credit of up to $8,000 available for qualified first-time homebuyers purchasing a principal residence ends Dec. 1. The tax credit is actually equal to 10% of the home’s purchase price—up to $8,000.

One would think December is a long ways a way, particularly with the heat wave we’ve been having putting the winter months far out of mind. But according to federalhousingtaxcredit.com, “the purchase date is the date when closing occurs and the title to the property transfers to the homeowner.” That means a lot has to be done by December—choosing a home, coming to an agreed-upon price with the seller, obtaining financing and closing escrow, to name a few must-dos.

That all takes time. So much time, in fact, that some Realtors have already began sending out notices to their clients this week warning them to act soon—very soon.

“They need to get into escrow in the next week or two to be assured of closing,” says Richard Daskam, with Keller Williams Realty. “Things are going to be so backed up with lenders, and so many people are going to be trying to close escrow before Dec. 1. It’s going to be very tough for closing.”

In a letter Daskam sent out to his clients, he writes: “Currently it is taking an average of about 45 days to complete the escrow process. This means that buyers who wish to receive the tax credit would need to have selected a property and be in escrow for their purchase by early October, which is just weeks away.” About four weeks, to be almost exact. And that’s a pretty short amount of time—just choosing a property can take at least that long.

“I’ve got three people right now who are trying to buy and take advantage of the tax credit,” Daskam says. “One got a contract signed (recently), and the other two are still looking.”

And as home sales continue to rise, the competition is getting stiff in some price ranges, particularly the lower-priced range, where many first-time buyers are searching. One of those home hunters Daskam is helping just gave up on an extensive search for a condominium with a maximum price of $165,000 in Orange County and is now looking east to the Inland Empire. “He was looking in Huntington Beach and now it’s Ontario,” Daskam says. “There is so much competition in Orange County. He looked at 50 condos in Huntington Beach. Plus, he is a first-time homebuyer using FHA, and the banks are preferring to have all-cash buyers in that price range. On each property, he’s been up against 30 to 40 offers in that price range.”

Daskam believes the number of his clientele eager to get the tax credit is going to grow based on the increased volume of queries coming into his Los Alamitos office. “We’re getting a lot more calls from people who want to do something immediately,” he adds.

But is (up to) $8,000 a large enough sum to force people to scramble to get into the housing market, one that so many are still wary of? If human nature holds true, you bet. “It’s free money,” Daskam says.

He adds, “People have realized we have already hit that bottom. Where the pricing is today is where it’s going to be, and we’re going to look at interest rates going up coming out of this recession—we’re definitely going to see the long-term mortgage rates go up.”

But not everyone is going to be jumping into the market. The income limit for single taxpayers to get the full credit is $75,000; the limit is $150,000 for married taxpayers filing a joint return. And if earn more than that, you are out of luck entirely.

“Most of my buyers wouldn’t qualify to receive the tax credit,” says Jeremy Colonna with Colonna & Co. Realty in Belmont Shore. “The max modified adjusted gross income is $95,000 for individuals and $170,000 for married couples. It may have some impact on the market, but it is my conclusion that the market is being driven by the relative scarcity of well-priced homes. There are far more buyers than reasonable sellers in the marketplace right now.”