URGENT: BUYERS AND BUYERS AGENTS: PAY ATTENTION TO THIS...NOW!

By
Real Estate Agent with Mason Real Estate CA BRE 01444168

Ok, let me start off by saying that I am an REO Listing Agent in the Hemet - San Jacinto Valley in Southern California - right at ground zero for the current housing crises.  I have been working with the banks since 2006...so please believe what I am about to share and believe that I have some clue as to what I am talking about.

The real estate market has been driven by consumers wanting to get in on the government action and take advantage of the $8,000 tax credit that has been the subject of many discussions for months and everything you ever wanted to know about the topic has already been published - so I'm not even going there today.

TODAY IS ABOUT URGENCY

The one detail about the first time homebuyer tax credit is that it is currently scheduled to expire and only be effective for homes that close escrow on or before November 30th, 2009.  Today is October 2nd...so that leaves 59 days.  On Monday the 5th we will be down to 56 days.

MUST CLOSE ESCROW

Nearly every offer I have seen with first time homebuyers seeking this tax credit are financing with the least expensive loan on the market today - FHA with only 3.5% cash out of the buyers pocket required.

I'm not going to spend this valuable time or space telling you how to write an offer - I have several recent posts on the topic that are very relevant for this weekend - so please check out The Perfect Offer...Or Cash is Still King or DOES AN FHA OFFER REQUIRE A MAXIMUM of 3.5% DOWN?.  Both contain very timely information, based on this local market...and I'll bet competitive markets across the country.

AN FHA TAKES 52 DAYS to CLOSE ESCROW

Don't listen to that lender that says they can close in 30 days or even 45 days. My careful analysis of the local market reveals that over 100 FHA Loans close escrow each month in the Hemet - San Jacinto Valley, CA.  The AVERAGE DAYS IN ESCROW that no one ever looks at except a local expert like me, is currently running 52 days.  OK, yes for the benefit of a few loan officers - there are a very small handful of seasoned loan officers that take less than 30 days - there are also a handful of loans that take over 75 days to close escrow..  So, where do you want to be...?

DO THE MATH

You write the one offer that gets accepted this weekend...but you won't know for a few days because each offer must first be reviewed by the listing agent (ME), summarized and packaged to send to the seller who must also review the package.  We need to speak with the loan officers and verify the funds - so make your packages complete and easy to verify - provide me with phone numbers and please don't make me a cyber sleuth trying to figure out your offer.  Provide your own summary.

So, best-case scenario is the Asset Manager for the bank will have packets to go through on Monday afternoon and if we are lucky we will have an answer back on Tuesday afternoon - but more than likely it will be Wednesday or even Thursday.

THEN
a packet of Addendums and or Counter offers will be prepared and forwarded to the winning real estate agent to have their client sign and return.  IF WE CAN GET THIS BACK to the Asset Manager by Thursday afternoon, WE MIGHT open Escrow on Friday which is now the 9th of OCTOBER...leaving us with ONLY 51 DAYS TO CLOSE ESCROW! ! !

AND HOW DOES ESCROW FEEL ABOUT THIS?

Does anyone else think that escrow offices across the country just might be getting busy with a Tsunami of their own next week keeping them busy and under EXTREME PRESSURE to close these deals before the government imposed deadline that is looming just over the horizon.  Oh, and please don't forget that there is a traditional 4 day holiday right before the very end...doesn't your escrow officer deserve to take off for the Thanksgiving Weekend?  I don't think they get to add any additional fees for closing on or before 11/30/09.

AGENTS AND BUYERS NOW IS THE TIME TO TAKE ACTION

So by now you understand the problem.  This is the weekend to write your BEST OFFER.  Now is the time to forget about contingencies and pull out all the stops.  Now is the time to ante up with the highest down payment and not limit yourself to 3.5% down...now is the time to give it your best shot.

The advice I have given to the five buyer agents of the Excellence in Real Estate Team at Allison James Estates and Homes is to spend this weekend with their database of buyers that they have worked with over the summer.  Contact them all and explain the current situation - heck, send them the link to this blog post...even go ahead and re-blog it, I don't care.

The next step is to set an appointment for a very specific time - no more than 2 or 3 hours max, as you should have another family waiting for you at the office for the next appointment.

This is the weekend to write offers with every qualified buyer you have. 

BUYERS WHO READ THIS

Buyers, please understand the urgency here - this is no hype this is the end of a very popular program that puts up to $8,000 in tax free cash in your hands to buy your first home.  So please, come prepared with your check book and any other documents you need to get busy with your real estate agent and lender so that you can have your offer the first to be reviewed and accepted by the seller...there is a lot of pressure throughout this industry right now to help as many families as we can to get into their first home while this program still exists...so please, be ready to buy and not play games.

Until Next Time, Have a Blessed Day,

John Occhi, Hemet CA REALTOR®

 This blog and the contents written here is the intellectual property of John Occhi, Hemet - San Jacinto Valley REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0.  Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions. 

I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

Posted by

Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

Excellence in Real Estate,Team Log,John Occhi,www.johnocchi.com,hemet,san jacinto,CA  

This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

 Protected by Copyscape plagiarism checker - duplicate content and unique article detection software.

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
California Riverside County San Jacinto
Groups:
1st Time Buyers
Inland Empire Marketing
REO
REO REALTORS
TeamTopics
Tags:
reo
agent
hemet
san jacinto
ca
market
escrow
fha
offer
loan officer
buyers
buyer
real estate
team
lender
home

Spam prevention
Show All Comments
Rainmaker
4,799,006
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

John, an excellent post and something we've known to be true here in Florida also.  Many marginally qualified buyers have now missed the boat on the 1'st time buyers' credit, unless extended.

Oct 03, 2009 04:11 AM #1
Rainmaker
842,911
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I agree John. Time is a ticky-tock.

I have worked with an FHA/VA/USDA specialist regularly past 2 years and as recently as this Summer she was STILL closing in less than a month.

All the duckies must be lined up for that to happen though. NO unusual circumstances.

I've been bugging the heck out of a couple of 'tax credit seekers' and they are not gonna make it if they don't get under contract this weekend.

 

Oct 03, 2009 04:14 AM #2
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Gabe,

You are right about the marginally qualified buyers - if they and their agents hustle this weekend, they many still have a chance...but this is down to the wire time, no doubt.  I have always promoted the end of September as being the end - this is Hail Mary time....4th and long with only seconds on the clock...down by 5 (I love this time of year and switching from my baseball analogies to football)

John

Oct 03, 2009 04:24 AM #3
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Candice,

I too have an awesome loan officer, Hilary Wilkinson with Patrion Mortgage/Altura C.U., that routinely performs in 30 days or less. 

But this is crunch time and everyone is scrambling...a lot of pressure to put on anyone.  Certainly I wouldn't want to open escrow on 10/341 and expect to close on or before 11/30...not this year.

Oct 03, 2009 04:26 AM #4
Rainmaker
1,607,805
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

Tick Tock Tick Tock, I see them come over the mountain tops and coming around the curve by the bus loads. Truly though thanks for the great post and warning.

Oct 03, 2009 04:36 AM #5
Rainmaker
1,097,147
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

John never fear my friend it will be very surprising if the deadline is not extended. I know Realtors want to keep writing about the urgency but it will be much more suprising if the deadline is not extended.

Oct 03, 2009 05:22 AM #6
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Joyce,

Hopefully you have been able to get the word out and profit from the urgency of the weekend.  I already have my first offer from one of my buyer agents from our discussing this strategy (he doesn't like to read - so I have to tell him everything- but he gets the job done.)

John

Oct 03, 2009 05:43 AM #7
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Bill,

Thanks for popping in and offering your opinion.  I agree and disagree with you.  My thought is THIS program will expire and it will be followed by a new program - perhaps better for the home-buyer, but then again it may be more restrictive.  You have to remember it is coming from the Government.

I also believe with next year being an election year Congress is going to want to make as many citizens happy as possible.  I think they like controlling the government.

John

Oct 03, 2009 05:46 AM #8
Rainer
3,588
Arthur Richardson
Hemet, CA

John we see what you see. We are out and about all week end showing and telling and hopefully selling. We all just need to "stay after it".

Oct 03, 2009 06:02 AM #9
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Art,

So stay after it then and make it happen.  Good luck to you.

John

Oct 03, 2009 06:31 AM #10
Rainmaker
567,881
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

It would be nice if the deadline were extended, as Bill wrote, but it isn't how an agent should help their clients' plan (in our opinion).  Plan for the worst and work like a dog to get the best results... remember those buyers who got the $7,500 tax benefit and still need to pay it back?

Oct 03, 2009 02:47 PM #11
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

AJ & Jodee,

I agree we can never 'build our business' on speculation.  Speculaiton is for investors...and investors don't ever puyt all of their eggs in one basket.

Yes I do BELIEVE there will be somre sort of stimulus going forward...but what is the unknown.

John

Oct 03, 2009 05:39 PM #12
Rainer
157,179
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

I continue to close FHA deals in 30-35 days without too much trouble, but as someone mentioned above, we should always plan for the worse.  You are RIGHT that a "fire" must be lit under those buyers dragging their feet.  NOW is the time to act.  Inaction risks the loss of a huge "payday" for these buyers.

Oct 04, 2009 05:35 AM #13
Anonymous
Tom Wysocki

We all hope the deadline is extended, but as has been discussed, we cannot operate as if it is a done deal.  We have an obligation to let our clients know that there is currently a deadline fast approaching and there are timeline realities that we have to deal with.  Compounding the situation: many of our buyers are writing offers to get in under the deadline, however they have not been able to get into escrow due to all the multiple offers on homes right now.  They are trying but can't get their offers accepted and risk missing out on the tax credit.

 

Great post John!

Oct 09, 2009 03:00 AM #14
Rainmaker
312,455
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Tom,

My guess is if they are not in escrow as of today...that the tax credit boat as we know it today has left the harbor.

Good Luck with your buyers - my guess is it is going to be easier to get your offers accepted in the next couple of weeks.

JOHN

Oct 09, 2009 06:37 PM #15
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?