The last several months there has been a frenzy around the real estate market. First we had would be home buyers gobbling up every decent home available on the market before the April 30th under contract deadline, then we had the task of getting all of those homes closed before the June 30th deadline.
Now that June 30th is upon us and there are no more tax breaks many would be home buyers are feeling remorse that they were not able to take advantage of the free gift from Uncle Sam. I am here to tell you that you didn't miss out on anything. At the end of the tax break homes were selling for more than their actual value and since the April 30th deadline was past sellers were not giving any allowance for repairs knowing that you would lose your $8,000 if you dropped out of the property.
If you are a first time buyer you are better off right now. You won't have to fight off 5 other offers on every house. Inventory is up, so you will have a lot more properties to choose from. Sellers will be much more negotiable then they were 2 months ago. Interest rates are at there lowest ever and I do mean ever. And finally the banks are still putting a lot of foreclosures on the market and they know that the prices need to be lower and will negotiate.
So if you have been kicking yourself for missing the $8,000 tax break, don't because in the end you will end up the big winner by paying less money for your house, by getting a lower interest rate, by getting the seller to make needed repairs and by getting the house you truly wanted and not just the best of whats left.
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