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

Reblogger Fred Gregory
Real Estate Broker/Owner with Avalar San Diego DRE Lic.#01270959

This is a good post about the timing for first-time home buyers.

Sure the Tax Credit has expired but the interest rates are below 5% and in some cases below 4%.  When I bought my first San Diego Ca. 30 years ago my first mortgage was 18% with a 21% second and I was excited to get in.  The inventory is up and you will have to compete for the good listings but persistance pays off.    

Original content by Heidi Tiefenthaler

Tax Credit Expiration = Great Time 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!

Heidi Tiefenthaler

Restaino & Associates

(608) 239-0592

heidit@restainohomes.com

www.heiditiefenthaler.com

 

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Rainmaker
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Brittany Stewart
Luxe Realty Group - Plano, TX
Making Dallas Home

I'm glad I missed the 18% interest rate! I wonder what the savings in mortgage payments could be.

Aug 24, 2010 04:47 PM #1
Rainer
37,587
Fred Gregory
Avalar San Diego DRE Lic.#01270959 - San Diego, CA
CRS, Broker/Owner DRE Lic.#00899603

Good post Heidi.  I reblogged and agreed with your post.  Interest rates down, inventory up, how sweet it that.  It does take tenancy and persitance but the work will pay off.  Remember the old saying that "This too shall pass".  Keep up the good post.  Will you be my associate? 

Aug 24, 2010 04:48 PM #2
Rainer
37,587
Fred Gregory
Avalar San Diego DRE Lic.#01270959 - San Diego, CA
CRS, Broker/Owner DRE Lic.#00899603

$300,000 @ 18% =PITI  $5,069

$300,000 @ 4.5%= PITI $2,068   Hmm at the time the 18% was the going rate and the only way to put my family into a home in a good area.

thanks for commenting

Aug 26, 2010 09:27 AM #3
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Rainer
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Fred Gregory

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