Why It is STILL Great to Be a First Time Home Buyer

With tons of houses on the market, it just seems logical that you would be able to find the home of your dreams, at or below your price range, in your ideal neighborhood.....and all with just going to a couple of Open Houses. Two weeks max, and you would be at the closing table, ready to accept the keys to your first home!

Yeah, right. On average, it takes first time home buyers 18 weeks to find a home, as opposed to 10 weeks that repeat home buyers take for their home searches. Most first time home buyers take a while to get their bearings while looking at homes, not quite sure what they like and what they don't, and it does take a few trips out for them to formulate what they really want in a home. When I get feedback from other Realtors on my listings that are perfect for first time home buyers, I always sigh a bit when I hear, "They liked the home, but it was out first time out looking. We'll keep it in mind." Yes, sometimes first time home buyers find their dream home right away and quickly submit an offer, but the majority of the time that doesn't happen, even if it is their ideal place.

Now, let's talk about you. You missed the tax credit deadline and therefore missed the $8,000 tax credit. Are you screwed? Not hardly! Without so much competition from the other first time home buyers out there who have already submitted their offers, you are in a great position to negotiate with sellers who may be worried that you are their last chance for this year. In addition to that, you can expect to see home prices declining slightly in response to the tax credit expiration (and the shadow inventory of foreclosures about to hit the market....but that's a story for another day, gentle readers), so while you may not have that cash in your pocket from Uncle Sam, you may break even with a lower purchase price and solid term negotiation.

So don't be discouraged! It is still a great time to be a first time home buyer, and just because the tax credit expired does not mean that you should suspend your home search whatsoever. With so many properties on the market, your perfect home is out there and ripe for the picking!