The deadline of April 30, 2010 to take advantage of the Federal Tax Credit is fast approaching. April 30th being the deadline to have a property under contract, AND then must successfully close the property by June 30th.
There are at least 3 problems with waiting until the end of April to enter into a purchase contract. There will be more competition in April for the best homes available at that time. Secondly, the percentage of accepted contracts that successful close has dropped. Lastly if you are in a position that you must close on the property (under contract in June) or you will potentially lose $8,000, your contingency negotiating leverage is lost.
These issues don’t address the stress of working on a deadline and the sacrifices made in order to meet it. Real estate transactions are complex and involve many aspects including mortgages, insurance, inspections, disclosures and more. By properly preparing and working on your own timeline it can be so easy that the hardest part is actually moving your belongings.
If you want to take advantage of the available tax credits act now to avoid the many potential pitfalls of buying in April. Inventory is currently abundant, mortgage rates are low, and you won’t be in competition with those that are waiting until April to get started.