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The best advice to those who are considering purchasing their first home this year?

Do it soon.

I just finished writing an article for my Macomb County MI real estate blog and informed first time home buyers that they should not wait until early fall to start looking at homes to purchase.

In the past week my buyer clients and I have experienced the following: Home inspectors being booked solid and difficulty in getting a home inspection done within the contract time frame, multiple offers on clean and well priced homes, and homes sold before we can make our appointment to view them.

The (up to) $8000 tax credit from the federal government does have an ending date: November 30, 2009.

Please be careful - your contract to purchase your home must close on or before that date. Many first time home buyers think that they have to have an offer in writing before that date and they will qualify for the 1st time home buyers tax credit. This is NOT true. Your home purchase must close (be fully completed and the home in your name) on or before November 30th.

If you wait until September or October to begin your home search it may be too late. (I'm not being pushy with this statement, I'm seeing signs of the frantic pace already that buyers are being put through.)

~Kris Wales~ A partner for your real estate needs in Macomb County MI

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Posted by Kris Wales - Macomb County MI real estate blog & homes for sale search site on 06/07/2009 07:40 AM

Comments (11)

$8000 First Time Home Buyer Tax Credit in the Home Buying Channel

8000 tax credit for first time home buyers in macomb county mi, search for homes for sale in macomb county mi with mls data

Originally posted at: Macomb County MI real estate - 1st time home buyers info & advice: The best advice to those who are considering purchasing their first home this year?

11 Comments on The best advice to those who are considering purchasing their first home this year?

JUN

Good advice for buyers. They should buy soon when rates are low and there are many homes to choose from.

Good advice. That tax credit is huge!

Gita: You brought up another good point. The last couple of weeks interest rates have been rising and I think that's going to continue.

Cindy: It's going to get crazy in September and October, much like when stated income programs and down payment assistance programs were given an "end" date. Many buyers were livid that they couldn't get their purchases done in time, but they waited too long.

Kris,

I couldn't agree more. Starting late puts a lot of pressure on to complete the transaction, and some buyers are going to have to settle for homes that wouldn't be their first choice.

Rich

Just like everything, people are going to procrastinate, and that's going to force the government to postpone the deadline. They want these buyers buying.

Rich: I knew things were picking up, but to hear 3 home inspectors say they couldn't get in within 5 days was shocking. Thankfully I write 7 days on my PA's but I wonder when I'm going to have to increase that to 10 or 14? Settling is something we don't want buyers to do, nor I'm sure will they.

Donna: I don't think they'll extend the deadline. By the end of November the economy will be picking up some steam and I really don't anticipate an extension. Buyers shouldn't think that will happen. Not worth the risk.

Kris, good advice! If buyers wait until the last minute, they will lose out on the tax credit. I wouldn't take a chance on the government extending the deadline.

Another would be to steer clear of short sales. These banks have no conscience and can hold offers for months before either accepting or rejecting them.

Jack

With the pressure on some price ranges waiting could amount to competition for the homes that first time buyers like and that might increase the price.

I am trying to pound it into my buyers but its tough...I keep telling them I am seeing multiple offers on nearly every bank owned and short sale, and even seeing it now in private sales. I am telling my buyers if they find the house they want, we need to act. Get the offer in and get it accepted, then excercise your due dilligence during your inspection contingency period.

Some get it and some down't. Unfortunately with a lot of the first time home buyers there isn't a sense of urgency because they don't understand the market. They've got Uncle Billy telling them there are houses everywhere and if they pay more than 50% of asking price their crazy because they work with a guy who just bought a house for $60K and the asking price was $120K.

I have a buyer now who has had 2 houses that were "the one" go pending without making an offer because in the time between us looking at it and him deciding to make an offer, an offer came in and it was accepted. The last one we looked at was listed on a Friday. We looked at it on Sunday. He said he loved the house and it was his favorite of everything we'd looked at to date. I told him right there in the kitchen of that home that there's no way at that price the home will be listed for 5 days without going pending and if he wanted it we needed to act now. He waffled, called me on Tuesday to tell me he wanted to make an offer and I had to inform him it went pending that morning.

We went this morning and looked at 2 houses. Once of them he really liked and though he might want to think about buying it. I told him flat out, "if you like this house and think you want to buy it then lets go to my office and write an offer. You've always got the inspection contingency if you change your mind but I wouldn't be doing my job if I didn't tell you that you're setting yourself up for your 3rd disappointment in the process if you don't start making faster decisons".

Well we didn't go back to my office. We'll see what happens.

Sorry to hijack your blog Kris...thanks for letting me vent! LOL

Kris, It would be a shame for buyers to miss this, it's a lot of money. I hope they don't wait too long if they're going to purchase a home.

JUN

Michael:   The signs are already here that it is going to be crazy busy this fall. I just wrote an article giving timeframes that I hope will help buyers. Thanks Michael.

Jack:   I agree. If a first time home buyer wants to take advantage of the tax credit they should steer clear of the short sales, unless they have their ducks in a row now. Otherwise it's too risky for them.

Terry:   I'm seeing the competition right now for clean well priced homes. There are more than one offer on them now, and I think you're right - it's going to get worse.

Brian: Vent away. It's the most difficult aspect of our job in my opinion. We know what is going to happen. It's as if we have a crystal ball. And yet, we can't stop the stress that we know is going to hit our clients. Hope things are better for you this week!

Carole: I have a feeling we're going to get the "What do you mean it can't be done that quickly??" calls in mid-October. I hope that not too many will procrastinate and lose out.

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