BUYERS AND SELLERS take note: you may qualify for the federal tax benefit, up to $8000 back at tax time (in addition to any refund that you currently qualify for!). See the link below, and then see your tax accountant or tax attorney:
http://www.realtor.org/HOME_BUYERS_AND_SELLERS/2009_FIRST_TIME_HOME_BUYER_TAX_CREDIT
Note: call me at 757-869-7070 if you need a referral to a tax accountant.
BUYERS: Get under contract NOW! don’t wait until the month of November to close. November closings on any given year can be a difficult experience, especially towards the middle to the end of the month. Buyers want to close before Turkey Day for obvious reasons; buyers always want to close at the end of the month, for equally obvious reasons (prepaid interest paid in advance is down to a just a few days’ worth when you close at the end of the month). Add the frenzy to receive an additional $8000 in cash when you file your taxes, and you have what amounts to real hardship that may affect your ability to make your deadline and make wise decisions to get there. A typical closing, without unusual problems (is there such a thing?? well, yes, if there is enough time, and money, schedule doesn’t have to be a problem) takes from 21 to 45 days. Start now and you can make it before things get difficult.
SELLERS: Get your part of the transaction under control NOW! If you are hoping to sell and close this year (you should already be listed!), make sure you are ready. Repairs should be done, including walk-thru; you should also invest in a title search NOW, so that there are no nasty surprises in that area either. This is always good advice when you are going on the market, but especially now, when buyers who need to close on time or lose big will walk away at the first sign of a problem and go on to a property and a seller who are ready. For example, you may have a previously undisclosed deed of trust, which you may have closed over, without resolving, when you bought the property (during the crazy days of the real estate bubble, lenders would routinely allow this). This kind of problem may stop your buyer and his lender dead in their tracks. There is not any easy fix for this relatively common defect of title, especially if you are uninsured, i.e., don’t have title insurance that covers such a problem (check into your title policy now while you are thinking about it!). Time and expense may mount as you deal with typically undermotivated (because although they may be fine with releasing the DOT, because it’s been satisfied, there is no money in it for them and schedule loses out when that is the case) and overwhelmed loan processor entities. A buyer’s agent may well advise the client to walk away from this fiasco in the making, and you and your property may lose out on a quick sale with the (good for your bottom line) element of urgency.
Call me at 757-869-7070 for more details and specific advice, or call your current real estate advisor.