Tips for First-Time Homebuyers, Repeat Buyers and Sellers to Close Escrow by July 1, 2010 (The Extension and Expansion of the Homebuyer Tax Credit)

Originally posted in my How Many Buyers and Sellers have Benefited from the $8000 Tax Credit post, which was written in line with the 2009 First-time Homebuyer $8000 tax credit deadline of November 30, the following tips may help first-time homebuyers, repeat buyers (i.e., move up buyers or empty nesters) and sellers close escrow before July 1, 2010 and reap the benefits of the Extension and Expansion of the Homebuyer Tax Credit.

FOR BUYERS who want to benefit from the $8,000 federal tax credit, taking advantage of low prices and attractive interest rates, the following tips may help you close escrow before July 1, 2010:

• You need to contact a REALTOR® today;
• You need to have a solid pre-approval from a reputable bank;
• You need proof of funds for cash deals;
• Don't waste time with low ball offers, have your REALTOR® run the sold comparable properties, make an educated offer and definitely in a multiple offer situation...put your best offer on the table because you may not get a second chance;
• Don't waste your time looking for houses out of your price range - you can only buy and a bank will only lend you money what you can afford to buy;
• Get in and out of attorney review (not sure about other states but here in NJ, listings in attorney review are still active listings and offers can still be submitted thus bumping your offer right off the table) and/or request the seller agree to back-up offers only;
• Even with the extension, most short sales, if not all short sales, will never close in time (by July 1, 2010);
• You lose control on purchases where the sellers need to find suitable housing before they can sell (your purchase would then be contingent upon the seller first finding another house); and
• You need to be under contract by the end of April 2010 and close no later than June 30, 2009.

FOR SELLERS who really want to sell their home, take advantage of today's affordability, and the expansion of the $6,500 tax credit, the following tips may help you close escrow before July 1, 2010:

• Price your home at market value from the start (Do NOT overprice);
• Work with a REALTOR® in your area who has an aggressive marketing plan;
• Make your home irresistible (do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting so that a buyer would want that lifestyle too);
• Be flexible with showings, lockbox and for sale sign (a home cannot sell if a buyer cannot get in to see it and even more importantly, it cannot be sold if nobody knows its for sale); 
• If you don't want to sell your house, don't put it on the market not only does it waste the time of buyers and their agents but it brings the property stats down as well);
• If selling and buying, do not make an offer on the house you want to buy until your house is under contract, and if at all possible, after the home inspection and mortgage contingencies are satisfied on your sale (most sellers will not sign a contract with a home sale contigency...would you?); and
• If selling and buying and if you qualify for the $6,500 tax credit, you need to be under contract no later than the end of April 2010 and close no later than June 30, 2009.

For more information on the First-Time Homebuyer $8000 Tax Credit Extension and the Expansion Credit of $6,500 to move-up buyers, please read my post First-Time Homebuyer Extended through April 30, 2010 and Expanded to Include Qualified Homeowners.

Even with the extension there is no reason for New Jersey buyers and sellers to still be waiting on the fence.  It takes time to buy and sell your New Jersey home.  Don't wait until the last minute...wouldn't you like to be in your new house before we spring forward?

 

 

 

 

Gina Chirico, Sales Associate

973-715-1158 (cell)

973-992-6363 ext 116 (office)

Gina.Chirico@PrudentialNewJersey.com

http://GinaChiricoRealEstate.com

****With deep roots in the Essex County, I service buyers and sellers throughout many Essex County communities and neighboring Morris, Passaic and Union Counties, specializing in the entire West Essex Communities (including Fairfield, Caldwell, West Caldwell, North Caldwell, Roseland, Essex Fells, Verona and Cedar Grove) and my hometown areas of Belleville, Bloomfield and Nutley.****

 When Opportunity Knocks...Make Sure Gina Chirico is There to Answer Your Door!