I was talking on the phone with one of our wonderful real estate associates on Friday.  She was telling me the story of their pre-qualified 1st Time Homebuyer client and how they had just made an offer on a 4th home.  Why make offers on 4 different homes?  The client had a particular price point she could afford and an area she wanted to live in. However, she was pre-qualified for an attractive amount and she didn’t have any out of the ordinary requests.  But she did have competition from other 1st Time Homebuyers.  Hmm.  This was interesting.  The agent (and client) were waiting with baited breath to see if the offer they had just made had been accepted. The agent said “Our client has to get this home, it is made for her.  I could tell it was for her the moment we walked in the door.’

It really got me thinking.  Yes, there are over 150 days left to take advantage of the $8000 1st Time Homebuyer tax credit.  Looking at that number, I can easily see how many 1st Time Homebuyers may think ‘Oh, I have all of the time in the world to start my home search.  I still have time. I don’t need to worry about it this weekend.’  That isn’t the case.

Attention 1st Time Homebuyers, there is no time to waste!  You need to start your home searches TODAY! 

Getting pre-qualified for a home, finding the home of your dreams, making an offer on that home, having that offer accepted, getting an appraisal on that home, getting your mortgage approved and then closing- all takes time!

In today’s market, we are seeing around 40% of transactions coming from 1st Time Homebuyers.  Great news, yes!  However, it does mean there could be more competition for the price points that most 1st Time Homebuyers are interested in.  I think the media has presented a picture that it is a buyer’s market.  Yes, I can see and agree with that in some areas.  However, in the 1st Time Homebuyer market, I believe it is both a buyer AND seller market.  There are more 1st Time Homebuyers competing for great homes in their price point.  Our client above didn’t have any outlandish requests, she was simply competing with other 1st Time Homebuyers for homes.

‘Well, I am waiting for the $15,000 tax credit.’ Ahh, yes.  The discussion of the $15,000 tax credit.  The additional tax credit is only in initial phases of discussion and may or may not be passed by the US Government.  Yes, if the $15,000 tax credit is approved for 2010 that is wonderful news for buyers and the real estate industry.  However, this is your home we are talking about.  When you find the home that is meant to be yours, that feels like you when you walk in the door, that you can see yourself growing in….Do you really want to take a chance that $7,000 more in tax credits MAY be passed?  No.  When it comes to your home, one of the most important investments you will make in your life, a place where you will spend most of the hours in your day and make your memories, trying to time the market is not worth it.  Anyone who tells you it is, is WRONG.

Mortgage rates are still at historic lows.  Are they ebbing and flowing a bit these days, yes.  What will they look like in 2010?  Who knows.  The time is NOW to take advantage of these very attractive mortgage rates.  Mortgage rates these days can be the difference in getting approved for a loan and not.  Do you really want to risk your ability to own a home by waiting?  I wouldn’t.

How did our story end?  Our clients offer was accepted and she signed the papers Friday evening.  She will close soon and move into her dream home, the home that looks like her, feels like her and will be the setting for her many memories to come.

What to take from all of this? 1st Time Homebuyers, NOW is the time!  Don’t wait!  Find your real estate Trusted Advisor , get pre-qualified and start the process.  When the clock strikes midnight on November 30th, do you want to be the one left sitting on the fence?  

If you are looking to buy or sell a home in the Raleigh, Durham, Cary, Wake Forest, Garner, Pittsboro or Chapel Hill-Carrboro area, we are here to help! We are your Triangle Area NC Real Estate experts! Please make sure to take a look at our community films and learn about what the local Triangle area has to offer.