Should you rush to buy a home before the end of the year?

As a rule, I don't like to advise anyone to move quicker than they are comfortable with. I am hearing from a lot of buyers now that they want to find a home and close it by November 30th, because that is when the $8000 1st time buyer credit expires. True, time is of the essence. I would not be surprised if the fed extends the credit as it could have a slow down affect on the current pace of home sales, if the credit goes away. We are in a quickly moving market, homes priced in the South Bay area under 600K are literally flying off the market and typically with multiple offers. However, they are not selling for 200K over the list price, that was the madness we endured in 2005.

If you are thinking of buying, get your financial ducks in a row right now and go shopping. Short sale properties are likely to go beyond the November 30th deadline at this point but bank owned homes and regular sales (civilian sales) can close as fast as your lender can close them, typically 30 days. I would caution buyers not to ignore a great short sale property because of $8000. If it is what you want and priced where you are comfortable, remember it is going to be your home! Make an offer, be patient and get the deal done. Who knows, the fed may extend the credit and if you have walked away from a great house because of the credit expiration date, you will have bruises from kicking yourself.

So I guess, I am sticking with my opening thoughts, this is a home purchase, be patient and find the right home. If you rush into it to take advantage of the credit and then find it is not a good fit, you will likely not be very happy. Speaking for myself, I don't sell disappointment, I want my clients to not only remember me in 5 years, I want them to think highly of me.