In the weeks prior to the April 30 tax credit deadline, competition among buyers to find that perfect home was often intense. Sellers enjoyed a steady stream of motivated buyers, all anxious to find a home to buy before the clock ran out. Well, the race is over, and the winners may be the folks who didn't manage to find a home before April 30. Maybe they were outbid, maybe they missed getting an offer in before another was accepted. How terribly unfortunate for them, maybe.
Now that the frenzy has subsided, there are still plenty of homes on the market with more arriving daily. There are also fewer buyers. Sellers may not be looking for the highest bidder, maybe they're hoping for any bidder. At any rate, a prudent buyer and any buyer's agent worth his/her salt should be able to negotiate a substantially better deal post-credit deadline.
Sure, the tax credit would have been nice, but it would probably be gone within weeks of its arrival. In contrast, the ability to bargain for a lower price will pay benefits for up to thirty years. A price reduction of $8,000 will, over the life of the mortgage, save a buyer somewhere between $14,000 - $20,000 or more depending on the interest rate of the loan.
If you qualified for the tax credit, congratulations. I hope you enjoy the curtains, appliances, carpet, vacation, beer, or whatever you choose to buy with it. If the deadline passed you by, congratulations to you too. Now, let's go save some real money on a new home!
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