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$8,000 Tax Credit: Time is Running Out

By
Real Estate Agent with Keller Williams

If you are one of the millions in this great country of ours who has been waiting for the right time to buy a home for the first time, have I got a revelation for you: THIS IS IT!  Historically low interest rates (you can still get a 30 year fixed below 5.25% as of 9/9/09), a housing market flooded with increadably low priced homes (an average of 25% lower than thay were two years ago in the Seattle area), and an $8,000 tax credit that is about to expire.  Wow!  Where are the skywriters? 

“Now wait a minute,” I can hear you object, “we still have plenty of time to cash in on the $8,000 tax credit.  That offer doesn’t expire until December 1st.”  And while that statement is true, it is only half of the story.  We must remember that your brand new, home of your dreams, must close on or before December 1st.  Let me briefly take you through the closing process.

First, let’s assume that you have already found the house you desire.  The perfect yard,  right neighborhood, the right price.  So you put an offer on the house on Saturday, September 26th.  You give the owners until Monday the 28th to make a decission.  The owners don’t like your lowball offer, so they counter, and you agree. 

Now it’s Wednesday the 30th, and your offer is officially accepted.  It goes to escrow.  And you wait.  And wait.  More waiting.

You see, 18 months ago it was not uncomon for a purchase and sale agreement to go through escrow in as little as 2-4 weeks.  But now, new regulations, additional forms, and nervous lenders bog down the system.  4-6 weeks is now the norm.  But wait, it gets better.  Now everyone is rushing to beat the December deadline, so escrow agencies around the country are swamped with a flood of paperwork.  The 4-6 week closing time streatches to 6-8 weeks.  Your home doesn’t close until November 25th.  And it’s a good thing.  The next day is Thanksgiving.  The day after that, who knows who will actually show up to work.  The following Monday, your new deed is recorded.   It’s now November 30th.  Who knew December 1st was so close to September 26th?

 

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