Overland Park KS Homes for sale & Johnson County Real Estate Blog: April 2010

Why buyers might be better off waiting until the tax credits expire

Are you a would be home buyer? Are you a would be home buyer frantically trying to find a way to purchase before the $8,000 tax credit expires? This might seem like a silly idea at first but maybe you would be better off waiting for the tax credits to expire.

What did he just say, wait for the tax credits to expire? Yes, by waiting for the credits to expire you may be putting yourself in a position to make more than the $8,000 by the way of lower home values.

When the tax credit was set to expire at the end of November we watched pending home sales plummet and not until after January did we see sales start to pick up again as the pool of would be buyers started looking to take advantage of the extended tax credit.

Well we are in that position again but only this time there is no extension to pick up the slack. Now I personally don't think we are going to see a long term slump in housing sale and prices but I do think we will see a short term dip in sales and prices as anxious sellers who's homes did not sell before April 30th will either need to lower their prices or take their homes off the market.

The other big thing to look for is the potential for new foreclosed and short sale properties hitting the market, without Government assistance the banks know they will need to be more aggressive with their listing prices. 

I want you to think about something, the last time I bought a new car they were offering either 0% financing or $3,000 cash back. By doing the number I found out that my monthly payment was lower by taking the $3,000 cash and paying 6.5% interest than if I took the 0%. But the best part was that I owned the car for $3,000 less which allowed me to pay the car off in advance. What good is an $8,000 tax credit if you have to pay 10 to 15 thousand more for the home to get it?

So what am I saying, by waiting for the credits to expire you may just be paying a lower value for the home which will make it easier for you to sell in the future plus you will have less competition for the better properties as they hit the new non-government funding real estate market.

 

 

 Mike Russell is a REALTOR with Keller Williams Realty. Mike specializes in Johnson County Kansas Homes and Real Estate for sale. Mike is a tech savvy realtor with over 17 years experience. Did you enjoy Mike's Blog? Feel free to subscribe or join Mike on his Social Network to stay up to date on Overland Park, Olathe, Leawood, Lenexa, Shawnee and all of Johnson Counties real estate news and more...

Mike Russell & Associates can be reached at 913-266-5828 or MRussell@KW.com  or www.SearchjocoHomes.com

                        facebook   Twitter Overland Park Realtor  Linked In Russell Home Team  You Tube Russell Home Team  

 

  

 

 

Comment balloon 3 commentsMike Russell • April 23 2010 10:52AM
Why buyers might be better off waiting until the tax credits expire
share
Are you a would be home buyer Are you a would be home buyer frantically trying to find a way to purchase before the $8, 000 tax credit expires? This might seem like a silly idea at first but maybe you would be better off waiting for the tax credits… more
It's Earth Day, buy this Shawnee Kansas Solar Home
share
Everywhere you look the word GREEN is being used. Go GREEN Be GREEN use GREEN products, use less, recycle. If you are wanting to reduce your carbon footprint, then I have the house for you. This home of the future was a GREEN home back… more
Shawnee Kansas HUD homes for sale April 2010
share
Good news, a great new HUD home just became available in Shawnee Kansas. HUD homes in Shawnee Kansas only require a $100 down payment and HUD can contribute 3% of the purchase price towards your closing costs. New Shawnee Kansas HUD home this… more
Overland Park KS HUD homes for sale, April 2010
share
Hey, there are 2 great new Overland Park HUD homes available this week For those of you who don' know Overland Park Kansas HUD homes can be purchased with only a $100 down payment Even better, HUD can contribute up to 3% of the purchase price… more
Prairie Village HUD home Available, only $100 down payment
share
This is a rarity so don't wait too long, there is a HUD home available in Prairie Village Kansas For those of you who don't know, HUD homes can be purchased with only a $100 down paymen t. Not only that but HUD guideline allow for HUD to pay up to… more
Johnson County KS HUD homes for April 2010
share
If you are looking to purchase a home in Johnson County Kansas and are a little short on down payment funds, you should consider a HUD home. HUD homes only require a $100 down paymen t and HUD will contribute up to 3% of the purchase price towards… more
16764 w 157th Terrace Olathe Kansas Home for sale
share
16764 w. 157th Terrace Olathe Kansas 66062 Bradford Meadows $215, 000 4 bedrooms 2. 5 baths finished basement big flat fenced yard quiet cul-de-sac location … more
8706 w 72nd Terrace Merriam Kansas Home for sale and youtube video…
share
8706 w 72nd. Terrace Merriam Kansas 66204 $162, 500 3 bedrooms 2. 5 baths remodeled bathroom hardwood floors fenced yard w/ deck finished basement close to everything… more