Today was the last day for a buyer to have a signed contract for both the first time homebuyer and the move up buyer. So, now that the deadline has passed and no one really expected to see it extended yet again where do we go? Back to normal? Well what is normal? A couple things to think about before you think you missed out on something.
Although you may feel like you lost out on a bigger tax return, what would you do with that return? Most of you, if you were honest with yourselves, would spend it in less than a week. The new big screen TV, a newer car, a vacation or carpet for the new house. Am I wrong?
So, now that the big lure is over, lets look at what you can still obtain.
- Pricing – prices are still coming down in several areas and now that the “frenzy” is over will the market slow a little? Only time will tell, but my guess from the agreed to pricing I saw this week I think you may be pleasantly surprised.
- Other programs, there are new programs being unveiled everyday. One of the favorites right now is the Neighborhood Stabilization Program (NSP) this is a great program that allows for 100% financing in a creative way, on bank owned or foreclosed homes. The NSP loan is basically a second mortgage that is interest free and payment free, as long as you met certain guidelines. So, if you missed the tax credit but you buy a home for $10,000 less than you would have and you have a NSP loan which means no payment on about 20% of your purchase… you will be saving more than that $8000.
- The tax credit was just that a credit – not everyone got $8000 – so, did you really loose $8000?
If you are a first time home buyer there are several homes in Central Oregon that can easily be purchased for less than some are paying for rent. If you are paying $850 or more a month for rent, purchasing a home very well may be a great option for you. Give me a call, let’s see what we can do to save you more than $8000.
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So now that a few weeks have passed, are you seeing a big difference in volume there after the tax credit expired?
Steve – at first no I did not see much difference – but right now there seems to be a quiet before the school is out storm. We have some exceptionally well priced properties right now that I think will sell quickly.
Buying property on a deadline seemed to stress many buyers. My buyers seem more relaxed and acknowledge that interest rates are still great and inventory is still good. The tax credit may have encouraged many to buy, but now that it’s gone people still know real estate is a good investment. The tax credit just opened up some eyes.