Time’s Running Out
In 30 days, the home buyer tax credits will no longer be available.Â If you are buying a home this year and want to take advantage of this credit, you need to have an accepted offer to purchase by April 30th, 2010 and close on the home by June 30th, 2010.
Let’s stare at those two dates and what they mean to those wanting to take advantage of the tax credits.
April 30th, 2010
By this point in time, to take advantage of the Uncle Sam tax credits, you will need to have:
- Found the home you want to purchase;
- Gotten pre-approved for your mortgage;
- Written an offer to purchase;
- Negotiated the offer, and
- A purchase agreement that both the sellers and you agree upon.
Now, this time line puts a crimp in the kinds of properties you should be considering.
Right off the top you will need to steer clear of ANY short sales.
No matter how awesome the price is on a short sale, the odds of you getting a response from the bank in under 30 days are slim, at best.
And even if you are able to get a response, the chances of the sale closing by June 30th are even slimmer.
“Well, what about foreclosures?Â They can be had at a great price, right?”
Yes, foreclosures in this market can be priced correctly and often look like great values…on the surface.
But there are two key things to keep in mind with regard to trying to purchase a foreclosure:
- Well priced and conditioned foreclosures do not last long on market, and
- List prices are so good, be prepared to pay OVER list price (in many cases, know going in that you WILL be competing against cash buyers and folks willing to pay well over list to purchase).
Be careful and focused when looking at foreclosures in this short time frame.Â Already this year, I have taken clients to foreclosed homes that were listed in the morning and sold that afternoon for tens of thousands of dollars over list price.Â The frustration for my clients was high, to be sure, but they understood why the homes sold for so much more than list price.
Also, be prepared for the red tape that is a bank-owned sale.Â After all, they are the ones selling these foreclosures and the ones that have dragged their feet on the short sale side of the real estate realm.Â So, unlike a private sale, where you could expect a timely response, you may run into a bank asset manager that is less than responsive.Â Be prepared for delays.
If you decide to go the foreclosure route, be sure to work with a buyer’s agent that can respond and react as soon as possible.
In addition to the “typical” real estate purchase agreement, the bank is likely going to have its own addenda that will supersede your agreement.Â If you want to purchase a foreclosure, you WILL have to sign their addendum.Â As ever, be sure to have your attorney review the contracts and any mandated addenda to ensure you are being covered.Â Just know that every eyeball that stares at these contracts simply slows down the process.
Be sure to work with responsive, efficient and effective service providers!
June 30th, 2010
That is the date by which you must close on your new home.Â This means that you should be at a table, hand cramped from signing a two inch thick stack of docs, no later than June 30th, 2010 to get your tax credit for buying a home in 2010.
Word of advice?
DO NOT SCHEDULE YOUR CLOSING FOR JUNE 30th!
I guarantee to you that the closing offices will be jammed and that the funding institutions (lenders) will be crammed with folks trying to close by that deadline.Â If you would like to reduce stress in the real estate purchasing process, schedule your closing for at least two weeks before the deadline.
At the bottom of this post, you’ll see a button to “Search Plymouth Homes.”
Click on that button, drop your information to let us know you are interested in purchasing a home and begin to search for that perfect home!Â Shortly after filling out that information, you will be contacted by an agent from Professional One Real Estate.Â It will be our aim to assist you in narrowing your search down to the homes that YOU want to see and then helping you purchase that home.
If you are a seller that recognizes that Uncle Sam is trying to help you sell your home, click on the “What’s My Home Worth?” button.Â Once you tell us you are considering selling your home, an agent from Professional One Real Estate will schedule an appointment with you.Â This appointment will be to go over a “Highest Price Analysis” for your home and walk you through the benefits of our unique marketing system.
We look forward to assisting you in your real estate needs…