Are you in a “crunch-mode” to get everything ready for the various holidays? If so, you probably aren’t too interested in hearing about additional real estate deadlines. But it’s my job to keep you informed, so I’m going to add to your list. Here goes.
- The two government tax credits ($8,000 for first-time buyers and $6,500 for current homeowners) will require buyers to be in-contract by April 30. While that seems far away, it will only be 4 MONTHS away once we get past the holidays.
- I’ve had a number of sellers contact me who plan to put their home on the market “after the holidays”, meaning January. Those sellers will have only 4 MONTHS to attract a buyer and get their home in-contract so the buyer can utilize one of the Tax Credits.
- I’ve spoken with other agents who have said they are also being contacted by sellers who plan to list their home in January. That means inventories will increase. While in normal years, sellers may wait until March or April – after the snow is gone – this may be the year to NOT do that. You may miss the opportunity to capture a buyer if that buyer selects a home that was on the market during Jan-Feb.
- If you are planning to buy, you may have heard that 30-year fixed rates went below 5% this week. I heard on the news that that is the lowest since the early 1970′s. Talk about a great time to buy, especially if those rates hold until after the holidays. Even if they move up a little, getting a rate in the 5′s is still wonderful from a historical perspective.
- Another task for would-be buyers, is to start talking to lenders this month (December). You’ll need some time to gather the info/paperwork that lenders require to determine your maximum mortgage amount based on your down payment and credit scores. With all the changes to the lending industry, don’t ASSUME that you’ll be approved for a certain price range of home. You’ll need to have this step completed prior to having a Realtor® show you homes, plus, the answer may alter your decision to sell your current home.
As with the ‘cash for clunkers’ program, we don’t know what the market will be like AFTER April 30. We did see the market deteriorate by mid-October when the 1st Time Buyer Tax Credit was going to expire on Nov 30. Buyers needed to close by Nov 30, which meant they needed to be in-contract no later than early to mid-October to be assured of closing in time to meet that deadline. Once the government decided to extend the program (on Nov 6), we haven’t seen a substantial uptick because perhaps buyers have decided to wait until “after the holidays” to shop.
Bottom line, if you have been thinking of selling and/or buying a home in 2010, I strongly suggest you move your timing up to the first 4 MONTHS of the year. We just don’t know what the market will be like after April 30. Don’t say I didn’t warn you!
Read more about the two Tax Credits
Need a good lender to contact? Here’s two I recommend:
- Tony Butler, Equitable Mortgage, 614-764-5071
- June Zepp, Real Living Mortgage, 614-825-8806
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
I am a real estate agent and your post is very informative. Thanks.