Wednesday, September 02, 2009

First Time Buyers Beware....Deadlines and Short Sales....

As I have said before, I have several first-time buyers looking to close before the November 30 deadline. These folks have to be closed by this date in order to take advantage of the $8000 tax credit, unless it is extended. At this point, no one I am working with is taking the risk that it will.

Therefore, everyone is scrambling to find the perfect home, in their price range and condition. That being said, a good deal of buyers are finding homes that meet their needs, have prices that work for their budget, but as a result of varying circumstances, are in a short sale situation. Short sale, meaning that the seller has the home listed for less than they need to clear out the mortgages and other cost incurred by selling the home...hoping that the bank will take less for the home, rather than allow the home to go into foreclosure. This process can take quite some time. Which is why I blog today...

I am making a prediction that all of the buyers that are currently waiting on responses from banks regarding short sales are on the cusp of failing to meet their deadline to close. If solid responses are not gotten in the next few weeks, there is going to be a mad dash for those remaining properties (most of them being under $150,000) that are not short sales. Good for those new constructions and for other existing sellers, but not so good for the buyer. This is going to place them in a situation that we have not seen in quite some time...multiple offers. This does not give the buyer as much flexibility in price and terms if they are competing with other buyers just as anxious to cash in on the tax credit.

My advice is to get with your Realtor or get with a Realtor (preferably me) and discuss your options and strategy for the next month, so that you don't get bottle-necked into the end of November, which also coincides with Thanksgiving. As a buyer's representative, we are also including language to protect the buyer in the event this does happen.

Great time to buy, but buyers need to use their heads and make sure that they have all of the information available in order to expedite an uneventful and pleasurable buying experience!

Brooke

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