Is the $8000 Tax Credit Causing Buyers to Overlook Even Better Short Sale Opportunities?
If you are a home buyer and you qualify for the first time home buyer tax credit, time is running out for you to find a home. You must buy a home by November 30th and because getting a mortgage these days often takes 45 days, many buyers feel pressured to make a decision now. As a result, a first time home buyer who qualifies for the $8000 Tax Credit may find himself scrambling to get into contract this week. However, I’m wondering if some of you aren’t making a mistake.
$8000 is nothing to sneeze at but a buyer may be missing out on a home value that far exceeds the $8000 credit – short sale opportunities are still available. There are many homes for sale with steep discounts because they are a short sale and you may find a house that is a better “fit” for you in a short sale than trying to buy a home that you really don’t love just because of the tax credit.
In the New Jersey MLS this morning, searching for short sale homes shows that of the 3,796 single family homes for sale, 352 are a short sale. There are also many that are described as potential short sales. For our purposes, let’s say that a bit more than 10% of the Bergen County housing market is a short sale. This figure has been pretty constant this year. The bottom line is that there are other opportunities out there.
Even if you can’t find a home that works in time for the tax credit, you shouldn’t go into contract on something that isn’t the right home for you and your family. Opportunities come in many ways.
