Rock & A Hard Place

That is where many home sellers find themselves today. Home sales are up, but prices remain low. Those sellers who would like to move find that they must compete with bank short sales and foreclosures.

With the $8,000, first time home buyer tax credit quickly coming to an end, (buyers must “Take Possession” no later than December 1, 2009) the pool of buyers is most likely to dry-up fast.

Unless buyer’s have an aggressive marketing plan, a competitively price property, that is in top shape, they may be waiting a long time before they receive an attractive offer.

Recently we sold three homes in less than one week, but it took us three or more weeks to get the home ready for the market. The owners needed to first work with our stager and next came all the cosmetic fixes that make the difference between a sale and disappointment. Now, more than ever, homes find themselves in beauty contests.

One additional note, real estate is local, and sometimes really local. This is why we are always on the lookout for new and better tools for our clients…both buyers and sellers. Our weekly market reports by zip code are a must for all buyers and sellers that need to stay up to the minute on price. The nice thing about this report is it breaks price down in many different ways including by price quartile. As we all know homes in the lower price range have been moving much quicker than homes at the upper end…this report breaks out that difference.

OK…let’s look at some charts to see exactly what we are talking about:

Below, I’ve constructed a chart that shows the trend in three areas, Dublin, Westerville and New Albany.

As can be seen here, Westerville has faired better than the other two and has started an upward trend, while Dublin has suffered, has also started an upward trend. New Albany continues to tail downward.

We will need to keep an eye on this and other charts as we approach year end and the last of the homes are sold under the First Time Homebuyers Tax Credit.

Procrastinating First Time Home Buyers

Many First Time Home Buyers believe they still have plenty of time to take advantage of the $8,000 tax credit. To that I say, not so fast.

Here is what we know:

1.) To be eligible for the credit, you have to take POSSESSION by December 1st.

a.) When everything was working well, it took around 30 days to close a loan. These days, things don’t work that well and it’s not going to get better.

b.) Underwriters are scarce and banks aren’t about to staff up for the onslaught knowing there is a going to be a huge void immediately following November 30th.

c.) It will take at least 45 days to close and most likely 60 days.

For better or worse, we don’t have a stake in the $8,000 tax credit game. You do though.

You have the opportunity to change your life for the better. You have been on one of our many home search sites, talking with us, gathering information, preparing yourself to take advantage of low interest rates, attractive home prices and the $8,000 tax credit. The moment of truth is quickly approaching…do you really want to make that move into home ownership. If the answer is a comfortable yes, you need to be taking action right now…just finding the right home can take weeks under the best of circumstances. The negotiating process can take an additional week or two. The loan approval process, home inspections and needed repairs before closing can take up to a month or more. From beginning to end, with most everything going right, you are looking at a three month process.

As of August 15, 2009 we are requiring all of our buyers and sellers to acknowledge that the time is short and that they may not qualify for the tax credit because of the time element and circumstances involved in closing a home purchase transaction in today’s difficult environment. This is especially true for buyers considering the purchase of a bank involved short sale.

So, if you are truly serious about purchasing a home and qualify for the $8,000 tax credit, we suggest that we meet as soon as possible to map out a plan of action. That way, come December 1, 2009, you won’t be on the outside looking in.

Here to help when the time is right for you.

Carol Ciroli
www.TheColumbusMLS.com