Some ways that buyers focus on their home buying to take advantage of the tax credit.
1. Get to Know Your Market: Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process. "New listings can be emailed to buyers as they are posted, and buyers should stay on top of the market on a daily basis, seeing what properties are coming onto the market and which ones have sold." A good agent will stay on top of this for them as well and have excellent communication.
2. Line Up Your Financing: Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today's extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home. This should actually be one of the first steps, if not the first. It saves a lot of time being able to know what price range to look in.
3. Start Narrowing Your Search: With a large inventory of homes to choose from in the current market, buyers won't have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won't fit their needs. Sit down with your Realtor and go over the list of wants & needs for your home. Knowing your criteria will also help save a lot of time. However pay attention to Number 4 for this.
"When it comes to geography, buyers should factor in their daily commute. Few of us want to be more than 45 minutes from work. If buyers need access to public transit, then that also shapes their choice, and if they have children, schools are going to be a factor. Ideally, you can narrow you search to one or two communities rather quickly."
4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren't required. There are a few basis things you should determine, such as the style home that you desire and how many bedrooms are needed? Is a separate home office essential or just desirable? Do you require a basement? Will a two-car garage be sufficient, or do you need something larger? And don't forget to consider the type of home.
5. Consider Condition: In today's market, many of the best values are foreclosed homes that aren't in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much. Buyers should walk through some properties with their agent as soon as possible.
6. Keep Things in Perspective: As nice as it may be to get the tax credit, don't let the desire to do so completely control your home search. "Some buyers are quick decision makers, and others aren't," noted Debbie Laskowski. "If you like to mull over important decisions, take the time you need. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more."
7. Leave Time to Handle Standard Contingencies: The typical purchase contract may have several contingency clauses, for such things in a contract won't prevent it from qualifying for the tax credit, according to Dan Bundy of RE/MAX Center.
However, "the more contingencies you have in a contract, the greater the risk that it won't close, if an issue arises in the home inspection, and it can't be resolved, the buyer may want to find another house, Allowing time to work through the contingencies before the deadline reduces that risk.
8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. Time is a challenge with these.
For more information, please visit http://www.billburkehomes.com
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