Many of us have seen an increase in traffic from first time home buyers looking to cash in on the $8,000 tax credit. As time draws closer and closer for the credit to slip back into the abyss, we now have rumors of more credits, extending the current credit, and we have first time home buyers in a race to pick up their new home. This is of course an effort not to miss out on the tax credit, which at this time, will expire December 1st of this year.
So, what about the buyers who are in that race to make it to the finish line with their new found home and their credit firmly in hand? If they are currently writing a contract on a build job, then they are dangerously close to running past the deadline, after all, it does take time to build a home. Some are still sitting on the fence and will likely take that leap of faith at the last minute hoping that all will work out well. However, we have all seen the significant increase in delays when it comes to closings.
How many buyers are going to miss out on their opportunity to claim their credit because their closing was delayed? How many are going to attempt to build a new home and due to weather, miss out by a couple of days? And who are the buyers going to blame? The Government for not extending the time line. The builders for not building fast enough? Their Realtor because things didn't run as smoothly as they should have? The mortgage broker because the closing was delayed?
I know of at least one builder in town who for the past two months has had all first time home buyers sign a form declaring that they are not responsible for delays in closing. This was done specifically because of the tax credit deadline and the amount of angry buyers that they see in the future due to delays in closings. The fact of the matter is that one way or another, is going to be an interesting time and I'm willing to bet that in this sue happy nation, it will be a really interesting time. That's why I have my own form discussing the fact that I am not responsible for delays in closing due to others.
So, if you're a first time home buyer out there and you want to ensure you can claim your tax credit, I would advise that you get on the ball. The clock is ticking and if you wait until it's too late, you'll have no one to blame but yourself. If you are a member of the real estate industry and you have people who are going to cut it close, I would advise you to come up with a plan or a document to protect yourself from the possible future backlash. Maybe I'm just a worry wort, but no one ever got in trouble for being over prepared.
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JL Boney, III - Columbia, SC Realtor - Russell and Jeffcoat Real Estate
I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.
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And I'd like to add . . . keep your eyes on the interest rates which are good now.
JL-
Great post! I will need to pass this on to my broker! Might be something to consider!
Carla- They are good right now, it's certainly one more thing to consider.
Duane- Feel free my friend, it's something to think about for sure.
Jl - good stuff! I will circulate it
Nevin- Feel free to reblog if you'd like.
JL --- this is one that I am going to re-blog ---thanks for sharing --- doing my thinking for me.
JL - Thee who hesitate, it may cost. And I love your line at the end in regards to preparation.
Liz- Sometimes I get lucky and have a useful thought. Thanks for the reblog.
Sardi- It's a true statement you know. We can never be too prepared.
JL - Although there may be an extension (doubtful), This may be a "game over" flash fairly soon. New construction and some odd short sales are very soon to be in jeopardy. Time is getting of the essence.
JL: That tax credit certainly does stand to make a lot of first time buyers happy, but eventually we are going to need to get back to appreciating the basic reasons for having a home. 1) having a place to call your own and 2) having mortgage interest to reduce your taxes
Hi JL-Wonderful info my friend. I sure hope people do get on the ball instead of sitting on the proverbial fence because as well as sue happy these folks also want to blame everybody but themselves when things go wrong. YOU are smart to protect yourself. Have a great evening my friend. <SMILE>
JL...the deadline will make an exicsting home very appealing in the near future as we close in on the final date!
I was just talking to a buyer about this today ...the clock is ticking!
Featured in the Group "Whacked!!!
JL - I think we all better get ready for the mad rush that's coming. Lenders beware!
JL,
I am thinking that there are a lot of buyers thinking that there will be an extension and when it doesn'g show up they will be upset. Now it the time to take advantage of the tax credit.
Hi JL
Your post is right on the money, the mortgage crisis is coming like a train wreck.
Good luck and success.
Lou Ludwig
Great point... there are inevitable delays in new construction projects and if a buyers is counting on that money they might be in for an ugly surprise.
I also wonder how many will lose this credit because of the delays. Great post and food for thought. I hope none of my buyers get in this sand trap.
JL - and not just with custom homes, there will be a big crush of last minute buyers trying to get their closings in under the wire.
Claude- I think we'll see that sign too.
Chris Ann- We need to get back to "normal".
Sharon- I see a lot of blaming and finger pointing in the future.
Bill- I am hoping so my friend.
Richard- Thanks for the feature.
April- Ready or not, here it comes.
Don- All we know is it's here now.
Lou- Train wreck is a good analogy.
Jesse- Things never go completely as planned.
Laura- That's what has me curious and concerned.
Mike- It's not a time to hesitate where the credit is concerned.
No doubt the buyers need to get on the ball....now. Before the ball goes out of bounds....
Suzanne- It will be headed that way soon.