The tax credit's gone. Now what?

April 27, 2010 | Posted by Carolyn Pikoulas
With the end of the homebuyer tax credit quickly approaching, real estate offices around the country are scrambling to help their buyers meet the deadline. Sure, there may be a drop-off in home sales once the tax credit expires. But if you're still shouting those tired phrases, "The Time Is Now!" or "Hurry! Before it's too late," it's probably about time to give it a rest. It does a great disservice to homebuyers to try to shoehorn fit them into the wrong home due to a time limit.

The good news is that according to the NAR, home sales are up 8 percent due to the homebuyer tax credit. In addition, mortgage rates are still very reasonable, and there will be a great number of deals to be had especially on new home builds. After the credit ends, builders are likely to offer free options and upgrades, help with closing costs or find other ways to keep the sales momentum going throughout the coming spring and summer.

Of course, not all incentives are created equal. Home buyers should avoid offers such as a free vacation, which add nothing to the value of their properties. The better deals are the ones that increase the resale value of a home like a larger garage, energy-efficient windows or a nice master bathroom.

Buyers could also experience higher negotiating opportunities after the tax credit frenzy wears off. While that 8k incentive may have driven some to overbid on properties, the smart buyer might wait until after April 30th to try bargaining with an upper-hand.

Will some of your buyers just stop looking come May 1st if they are not under contract? Maybe. But the world is NOT going to end when April 30th comes and goes. (That won't happen until 2012, anyway).