Heated Real Estate Market moving first-time buyers off the fence?
It's true.... the economy is showing signs of improvement and The St. Augustine housing market is beginning to heat up. Tell me, then, why are there scores of would-be buyers still waiting on the sidelines...are they waiting for further positive housing trends? Their time is running short on the federal government's $8,000 tax credit.
The official expiration date of the credit is December 1, 2009. But Buyers NEED to make a decision on a home way before that...in fact VERY SOON!
The reason is, in order to qualify for the credit; the home purchase must close by December 1st. It is not enough to have just a loan approval or an accepted offer or a signed contract by that date will qualify for the Housing and Economic Recovery Act. That is not the case.
The timeline from contract to closing has been taking longer, due to Short Sales, and more recent changes in the lending policies. I am advising my clients to expect closings to take place 45 to 60 days after the date that the contract is signed on a non-distressed sale that is financed. I would not take my chances on trying for that Short Sale. So, with that in mind, in order to meet the December 1st deadline, I recommend buyers sign a contract no later than late September or early October.
Homes in the affordable price range of under $250,000 have been selling fast. To have any chance at finding a home and having an offer accepted by early October, I recommend buyers start the home buying process right away. As a professional REALTOR I can help you with the immediate home purchasing steps. It is imperative that the buyer get pre-approved for the mortgage, which can not only prevent many delays, most sellers are require an official approval when buyer submit the offer.
Other things to do are: draft a final list of desired home features, check out neighborhoods and areas by driving around town and search online. Many homes may be eliminated from your search by viewing them online, thus saving you even more time. With the service I call MLSbyPhone.com, you can even search from your cell phone!
We all know that buying a home is a complicated process for even the most experienced home buyer. First-time buyers may need more guidance and time to select the just the right home. I've seen more and more delays in the buying process over the last few months and with the recently added rules for appraisals, I expect to see even more. That is why it is so important to get started NOW.
With the number of foreclosures and short sales on the market we have seen an increase in investor purchases, particularly for Short Sale and foreclosed homes priced below $100 per sq'. This creates tough competition for the first-time buyer looking for an affordable home. Additionally, these types of properties take longer to close than the average home for sale, significantly longer. Distress sales, often are in a distressed condition. If repairs are needed many lenders will require that they are completed before they will close on the home. Depending on the severity, this could add days if not weeks to closing date.
If you are interested in taking advantage of the First-time Homebuyer Credit, decision time is now; you must start the process very soon or risk losing your tax credit.
Marjorie Taylor, Watson Realty Corp. is a licensed Real Estate Broker and community leader representing Homes in St. Augustine. She holds the professional designations of CRS, CSP, e-PRO, GRI, TRC and is passionate about helping clients buy and sell Homes in St. Augustine and Homes in St. Augustine Beach, Florida.
904-591-9121
www.TheBestAgentInStAugustine.com
Marjorie@MarjorieTaylor.net
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