Don't drag your feet.
If you are planning on taking advantage of the Home Buyer Tax Credits (either the $8,000 First Time or $6,500 Existing Home Buyer Tax Credit), time is running short. The credit expires for buyer not under contract as of Saturday, 30 April, 2010.
That means that you HAVE to be UNDER CONTRACT... not just have an offer...
I have had a couple of buyers think that they could put in an offer and then negotiate it in May... No. There has to be a Binding Agreement on or before 30 April, 2010 (unless you are Active Duty Military... you then have an extra year).
And then comes the next hurdle...
The sale HAS to close by 30 June, 2010. In effect, this puts the vast majority of Short Sales out of reach. The average time for a Short Sale to go from Binding Agreement to Closing is over 4 months. Generally, Foreclosures should be Ok... IF you can get the bank to respond in the next two weeks. Some of the banks are slow to respond, and if there are several rounds to the offer before it is finalized, time could run out.
Don't look for another extension...
Honestly, this has NOT been a good deal for taxpayers. The incremental increase in sales (sales that would not have happened except because of the tax credit) are less than one in 5. That means that there are more than $40,000 in tax credits for each sale "created" by the credit. Political will is waning. The numbers are waning, too. The last credit converted more buyers. Even the National Association of REALTORS doesn't seem to be pushing for a renewal of the credit at this time.
Maybe the Tax Credit isn't that important for you...
I think there will be some deals for buyers after the expiration of the credit. For some buyers, especially those that are making significant downpayments, waiting might be a good strategy... but don't expect an immediate impact on prices. And there is always the 'risk' that prices will remain stable and the opportunity will pass with the expiration of the tax credit.
The other danger we face from waiting is an increase in interest rates. There are a few factors that point to significant increases in interest rates over the next few months.
If you are in the market now...
Give me a call. Let's see if we can find the right property for you. You can even jump into my property search below on the left...
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