Just over two months remain for first-time buyers to take advantage of the $8,000 tax credit.  That’s quite a push considering home purchases have to close by Nov. 30 which means buyers need to get off the fence now or at least by early October.  Likewise, sellers are also anxious to get their properties on the market and closed by the deadline.

A quick look at the numbers illustrates the positive impact the tax credit has had thus far.  NAR credits the uptick in existing home sales for four consecutive months—the first such increase to occur in five years—to the tax credit.    Furthermore, NAR estimates that approximately 350,000 sales wouldn’t have taken place without the credit.  An extension could help keep this momentum going by spurring the housing recovery, which in turn would help strengthen the economy. 

We appreciate all of your efforts in answering the “Call to Action” from FAR President Charles McMillan asking for an extension of the Nov. 30 deadline.  According to Washington Research Group, there is currently a 60 percent chance the extension will be approved. 

While there is a good chance the credit will be extended to year-end, the old adage “no time like the present” should be heeded so that buyers can take advantage of choice properties before someone else does.  Housing affordability is at its highest level in 28 years and there is an incredible selection of homes available creating a once-in-a-lifetime opportunity for today's first-time homebuyers.  You can find additional reasons for motivating buyers off the fence and into a home at the FAR web site. (See link below.)  Listed here for example are some of the highlights noted in  “9 Ways to Get Buyers Off the Fence”.

• Show the cost of waiting. Don’t just tell buyers they’ll save money with today’s low interest rates; show them the numbers.  Work with your Capstone Home Mortgage Consultant and cite examples that illustrate how expensive even a 1-point interest rate increase can be.
• Highlight the bargains. Show buyers properties that have become bargains or that illustrate how much further their money can go.  Point out the opportunities available if they act now before the market turns back around.
• Focus on what you can change, and don’t gloss over what you can’t. One hot issue in Florida right now is property taxes.  Ask your Capstone Title manager for promotional information available regarding Amendment 1 and show how it can benefit buyers who have been in their homes for a long period of time but are ready to move. 
• Remind buyers that market conditions can change quickly. There’s a window of opportunity that won’t last very long, i.e. interest rates can rise, home prices will go back up, etc.

Be sure to share the attached flyer “8,000 Reasons to Buy Your First Home Now” with your first-time homebuyers.  It offers concise answers to many of the frequently asked questions regarding the tax credit.  Do your homework in researching properties that meet your buyers’ needs so they are better prepared to move quickly in their decision-making process.  Utilizing your professional expertise and market knowledge, first-time homebuyers can still close on time and qualify for the $8,000 tax credit. 

Get Buyers Off the Fence and Make it a Great Week!

http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm

Thanks

Alan