Patrick Duffy's Real Estate Blog

First Time Homebuyers – Don't Wait Too Long!

As of today, first time homebuyers have 101 days to take advantage of the $8000 tax credit.  Sounds like a lot of time, but there are a few factors that can make that time fly by and will leave a lot of dissapointed buyers who were unable to cash in.  Keep in mind, we’re talking about 101 days until you close, not 101 days until you have a ratified contract.

1. Short Sales
Buyers – PLEASE exercise caution here.  Short sales make up a sizable chunk of the inventory available today.  If you are considering buying a short sale, remember that you could be twiddling your thumbs for two months or more before the bank even approves the short sale.  From that point, you will likely have at least another 30 days until closing.  And considering the fact that by some estimates, only 20% of short sales actually make it to closing, this is a very risky route to take.

2.  Inventory is Down
Banks are holding on to many of their properties, leaving very little to choose from out there.  This means you will often be competing with 10, 20, even 30 other offers.  The result is, many buyers are often spending well over two months looking at houses before getting a ratified contract.  Do yourself a favor and be realistic about the homes you make offers on and make the offer competitive.

3. Lender Turn Times Are Slow
Recent implementations of new lending guidelines/procedures are contributing to turnaround times of up to 60 days.   So, just when you finally have a contract on a home and think you’re home free, you may still be two months away from closing.

Consider this – if you got a ratified contract on a home today – on the optimistic side, you will be closing at the end of September.  If your lender takes 60 days, you will be closing at the end of October.  Now, what if it takes you another month to get a contract?  UH OH, you could be cutting it very close to the November 30 deadline.

Best of luck to all in your home search!  If you or someone you know would like to buy a home in Northern Virginia, I would love to interview for the job of being your REALTOR.  Call/email me anytime at 703-403-0536 / patrick@usrlty.com.