Home Buyers. 6 mistakes to avoid as the tax credit deadline approaches

6 mistakes to avoid in the last 30 days rush for the tax credit. Madison WI.

The tax credit for first time home buyers and for move up buyers will be sunsetting soon. The last day to receive an a/o is April 30^th and to close 30 days later.

So here are a couple of mistakes which could cost you dearly.

1. Short sales. There is a 20-40 chance of an average short sale closing. That means your accepted offer has a 60+% chance of failing, and with it your tax credit. Work with an agent experienced enough in short sales to be able to prequalify any short sale and advise you on it's chance of closing.

2. REO. Reo or bank owner properties are often valued below market and so they attract many buyers who compete. Buyers are asked to submit their highest and best. If you are not ready to buy and put in a strong bid you will miss out on the home.

3. Waiting too long. We are seeing many buyers sitting on the fence. I am not sure quite what they are waiting for but many are doing just that. As time progresses, all these buyers are going to be under crunch. Realtors are feeling the stress will not be able to give each client the time they need. Buyers will be competing for the remaining best homes and will actually be paying more under the rush to buy.

4. Interest rates are going up. The longer you wait, the greater chance rates will go higher. 1% rise in interest rates means afford ability of a new home will go down 10%.

5. Only the best priced 20% of homes are selling. However all buyers are going to be choosing from the same 20% homes. The new listings that are well priced will go quickly to the agents who consult their clients best and the buyers are prepared to buy. If you lose the home of your dreams, you will possibly never find another.

6. Missing the homes as they come on the market. The best homes are going to buyers with agents.

Having a top agent will help you navigate all of these pitfalls. But you must get started now.

Real estate Guy Team has sold 20 homes in the Madison Wisconsin area in the first 12 weeks of 2010 and so is in the trenches every day, helping buyers to buy homes and sellers to sell, even in a tough market.