Don't stress about the First Time Homebuyer Tax Credit ..My Reasons Why and a bit on Short Sales

Everyone is rushing to buy homes to get the 8,000 tax credit. I am seeing the 300K and under homes priced well becoming bidding wards between my buyers and others. Let's great realistic here people. The government will either extend it out (I have gotten countless emails asking for help petioning for this), or they have set themselves up nicely for a 2010 Homebuyer Credit of some nature. The 8K supposedly ends at the end of November and then we have the slow month of December where everyone is holiday celebrating and then conveniently it is 2010 for them to roll in the new incentive. I believe that they set this up on purpose this way. They may extend the homebuyer credit but it will just be through November to avoid further lull on that month than there already in..then will roll in the 2010 plan to make everyone all smiles again. Also, think about it, what's the worst that could happen: They take it away and then there are less homebuyers competing with you..you will most likely save more with this scenario than you would make on that extra 8K when all is said and done!

In the meantime, those stressing out about it ending in November that have true cause to be stressed are the real estate agents and home sellers that are selling short sale homes. The potential buyer's agents are calling me many times a week to ask if my short sale (I have two on the market for sellers) will be able to close by the end of November. There are no promises there for anyone! Also, buyers beware as only 27-28% of short sales listed out there actually close. What does this mean? Agents are marketing homes for unrealistic values and skewing buyer and agent perceptions of area and community market values. They are also holding up buyers from buying other properties as they sit in 'contingent on approval' pending stages for months on end, only to have a 27-28% chance of closing.

Agents, please do your due diligence and find out if your seller is making payments. If they are, you do not have a short sale. Even if they are not, do they have a hardship and have they submitted this hardship letter. Do you have a BPO and package already into the bank? If not, you are not nearing short sale status by any means...

Back to the meaning of this: Buyers, don't stress to get in by the end of November..take your time, visit all potential areas and neighborhoods, understand values, and then, when you find the right home at the right value in the best area or neighborhood for you, make an offer. Whenever that is, that's the right time!

Jenny