Michael & Belinda Jackson

As we all have heard for weeks now, the first time buyers tax credit expired today. The big question on every agents mind is, will they still buy?, will the market slow down? I think the market will slow down for a very short time. It won't take buyers long to figure out that they can't rent a home in our area for what their payment would be on a purchase. With FHA still at 3.5% down and rates around 5%, it's still a GREAT time to buy. Tax credit or No tax credit, Don't wait, still look for that deal and BUY !!

Will rates really go up over 6% by the end of this year? Everything I read says they will, but I'm just not sure. The markets are improving a bit but can they handle rates over 6%? I don't think so, at least not this year. With our market being heavy first time buyers and so many of those buyers being close on the numbers, that big of increase could really affect buyers qualifying. The last thing real estate needs is a slow down in the market due to high rates. I guess there is little we all can do to keep these rates down but I really hope if they go up it is in very small increases.

There will still be plenty of GREAT deals after the tax credits expire in a few days. We have received several calls from buyers this week that are really excited to buy right now and can't wait to find that perfect house. They all say that it would have been nice to get the tax credit but they are buying a house, not a tax credit ! The right house and the right deal are SO much more important than any tax credit. Take your time, work with the right agent and you will find the right house. We are seeing new bank owned deals come on the market every day and it is truly exciting to see what you can get for your money these days.

We have all been told over and over again, it's all about how you price that listing right? We'll it's true. If your not getting offers at your current price, you need to lower it just enough, maybe just under that "magic" price point and the offers will come. We had a condo listing that we have had on the market a long time, no offers. We kept lowering it every few weeks and finally we got to that "magic" price point and sure enough- 3 offers within 24 hours- CRAZY I know, but at the end of the day, buyers all have that price point where they will jump. Let's get more buyers to JUMP !!

We have been showing several buyers short sale listings this year and it is driving me crazy that they are NOT priced right. Some will be priced WAY under market value, which we all know the bank will never accept, then we see several that are priced to high compared to recent sold comps. The buyer does not care that 3 years ago you paid double what the list price is now. Every lender will tell you they desire to get "Current Market Value" for that short sale request. Sorry they won't let it go for $50k under recent sold comps, and NO you won't get a buyer to pay 1 dime over market value, so PLEASE just price it where the market is at today !