Will 2010 & The Tax Credit Bring The Buyers Back?

Real Estate got a sorely needed shot in the arm when they extended and expanded the tax credit for home buyers. Now that existing home buyers as well as first time home buyers can qualify it should bring back the buyers that have been sitting on the fence. So if you had a home that did not sell keep it on the market. Buyers must have signed a contract by April 30 to quailify and as we saw with the credit that was supposed to expire in November most clients will wait until that last month to put in their offer.




January is always slow in real estate and it starts to get busier each month up to June and then it normally slows down for the summer months with a flurry in October with clients picking up properties that did not sell over the summer. This year might show a different pattern. The tax credit, a resurgence of FHA loans, and pent up demand might show heavy traffic this winter and early spring.



Even through an economic downturn the real estate cycle still goes on. New buyers become eligible to purchase, existing buyers want to upgrade for size or lifestyle reasons, transfers happen in the workplace and estate sales go.



The new buyers are actually a stronger client than the ones we saw previously when real estate was booming. The days of 100% financing and a gift letter from family members are over so after the initial shock or loan refusal they are coming back to the search with better credit scores and an actual down payment and settlement cash. They are more focused and determined to be an informed buyer and negotiate a stronger deal in this buyers market.



So you sellers out there stay with it, price your home competitively, and have your home ready to show at all times. The worst thing to be right now is the highest priced home sitting on the market. You want to stand out from the pack and the best way to drive traffic to your home is to be just a little bit lower in price than your neighbors. Believe me, the present day buyer is looking hard but he is not willing to pay top dollar in this market.



You can email me any questions at bradyscentury21@gmail.com