Many Buyers Having Difficulty Finding a Home to Buy
Recent good news about the housing market has many homebuyers wondering whether now is a good time to buy. The $8,000 first-time buyer tax credit deadline has been extended, and a tax credit of up to $6,500 is now available to repeat homebuyers who qualify. To take advantage of these credits, the buyer needs to have an accepted offer no later than April 30, 2010, and close no later than June 30, 2010. The home-price limit for both credits is $800,000.
However, many buyers are having difficulty finding a home to buy. The inventory of good listings on the market is low in many areas because many prospective sellers who don't have to sell now are waiting for a better market. To aggravate the situation, many sellers who need to sell now often take their home off the market after Thanksgiving and will bring it back on the market next year. Buyers may find there's very little on the market to choose from for the next several months. They may find that many buyers will drop out of the market over the holiday season, leaving less competition for the listings that are on the market during this period.
This doesn't mean that it's not a good time to buy. There are at least 5 reasons to buy a home during the holidays:
- There's less competition. How many times did that darling house you had your eye on in May get bought out from under you while you and your spouse talked over making an offer the very next day?
- Sellers are often pressured. Motivation is critical in any real estate situation. Find out how long the house has been on the market. If it's been hanging around awhile, there's a good chance the seller is getting antsy. Sellers frequently drop their price -- especially as Christmas draws near -- giving buyers lower down payments and closing costs. If it went on the market after the peak season ended, the seller may have a pressing reason to sell, such as a job transfer, financial problems, divorce or illness to name just a few.
- Consider tax advantages. When you buy a new home before the end of the year, you'll be able to report items such as mortgage interest, points, closing costs, property taxes and more on your tax return.
- Interest rates are still attractive. If you're ready to buy, waiting until next spring can spell disaster. Many experts think we've seen the end of record-low interest rates and that mortgage rates will only go up from here.
- Beating price hikes. As high as the prices may seem to you now, chances are they'll only be higher when a new real estate season starts in March.
HOUSE HUNTING TIP: If you're having trouble finding a home to buy this winter, ask your real estate agent to search in the MLS for listings that were either temporarily taken off the market or canceled. Your agent can find out if these sellers still want to sell. If so, they may be willing to show you their home and entertain an offer. Keep in mind that some of the listings that were withdrawn from the market didn't sell because they were priced too high. But, the appeal of not having to put one's home back on the market is a big draw for many sellers, perhaps enough to convince a seller to accept a realistic offer.
If you would like assistance searching the MLS for these canceled listings, please call us toll free 1-866-532-9202.
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