Larry Costa

I really think the first time buyers may still have somewhat of a FALSE sense of time left here. Everyone is saying that it ends November 30th(which it does) but in reality a buyer needs to find a home in the next 14-30 days!!! YOU NEED TO CLOSE AND BE ON RECORD BY THE 30TH! The bank is going to need 30-45 days to close your transaction. Banks I've spoken to are on board still with 30day closing as are the closing attorney they are using. They tell me its the appraisal they are concerned about. They can take up to 2 weeks following some new legislation passed 3-4 weeks ago.

If your a broker/agent: email your buyers NOW and tell them this. A P&S may take a week once they find a home, inspections aren't next day, etc, etc, see where I'm going with this? Prepare your buyer for multiple offer situations, employ the "smart offer**" Short sales......well unfortunately probably not what you want to go after at this point. Don't scare your buyer, but do explain confidently this developing scenario. make sure you talk with your lenders and get "their" time frames. as well as time frames for appraisals.

If your a buyer: Get preapproved! ASAP>call your agent, go online and identify what you want to see and start seeing. Your agent can identify short sales for you. if you want buy a short sale find ones that are already 'approved" to be sold. If you don't have a down payment they are banks now that will let you use the $8000 you will be getting as the down payment! This is done in the form of a second mortgage and when your check for $8000 come sin you have 2 choices:

1. pay off the loan

2. keep the money and the second loan will be amortized over 10 years at a cost of about $90 a month for you.

Of course what I'm talking about are the price ranges.................in my area the under 300K market has been very strong, including many(yes many) multiple offer situations. This, is of course, is partly due to the the $8000 piece of American pie that the first time home buyers are all after. That market has very much solidified and we've even seen some increases in home prices in that range. Above that say $300-350 we still have activity and have also seen some stabilization. It slows greatly after $350 until you hit $500, then its like someone just turned the lights out. It seems the $500 K range here is like the kiss of death. Its ashame to see some absolutely fantastic homes, sitting in that range as there are just plain no buyers, or should I say none who dare make a move. As a result these homes are continually dropping and offer what may be some of the best deals in this market. Its easy math that 10% of $300K is $30K and 10% of $500k is $50K. Makes sense to sell and move up...........sure, but these higher priced homes have been hit more like 20%! That's a $100K!! Where's my check book? :)

Who knows? But it may be starting.............................It looks like the stock market may have bottomed out, so that's one less thing to worry about. Gas prices have been coming down. I paid $2.39 a gallon this morning, yea!!!! And the phone seems to have started ringing, yehah!! Has the public finally taken notice of the low prices and great rates? Sure banks have tightned up on lending, but all the people who have been renting because they couldn't afford to get in are now seeing they can! Rental rates have remained strong and real estate prices have fallen. What most are paying for rents can get them into a house. We still have 100% financing and FHA is a great alternative for less than perfect credit.