First Time Homebuyers Nationwide are scrambling to find a home that they can purchase in time to receive the $8000 Tax Credit. Home sellers are competing to get offers from this very active section of the market. Competitive bidding is taking place on REO/Bank Owned homes that are priced aggressively.
A common strategy is to price the home slightly below market value for a quick sale. We are seeing multiple offers on these homes and quite often they end up selling ABOVE the listing price. Asset managers are seeking the HIGHEST AND BEST OFFERS, and quite often that means a cash buyer with no contingencies and a quick closing date will be selected.
This can lead to 1st Timers becoming frustrated, as financing approvals can take 45 days for FHA Buyers. Many buyers are taking a second look at properties that have been on the market for awhile that are not in the short sale category. A seller that is priced above the market would be well advised to lower their price to get an offer.
Most 1st timers will need to be under contract by September 30 to close in time to receive the Tax Credit. There is very little talk of extending the Credit, and it is my opinion that the government does not want to remove the urgency to purchase. If they choose to extend it, I would not anticipate it to occur until the last minute. It is simply too big of a chance to take for most 1st Time Home buyers.