This month finds the federal tax credit of $8,000 for buying a new house winding down. Sort of like last call at the corner bar, expect to see a rush of desperate home buyers swinging for the fences this week. Are you a seller? If so, be wary of the buyer desperate to have something under contract before May hits the calendar.
When they come in waving an approval letter, that means everything’s okay, right? Not necessarily. To receive the tax credit only requires a buyer purchase an $80,000 house. They’re not the strongest financial cases out there. Now is a good time for extra due diligence before accepting an offer.
We all know what selling a house to an underfunded buyer can lead to: Foreclosure! I think we in the United States have had enough of that particular disaster for a while. And you really don’t want to be the one doing the foreclosing, do you?
Didn’t think so.
We’ve heard rumors of feverish buyers submitting bids on more than one property at a time, desperately hoping something sticks before the credit expires. Nothing good will come from messing around with people buying only to get a tax credit. Are you actively seeking to add more stress to your life? You might consider waiting until the credit expires before accepting an offer to buy. It might shake out some of the freeloaders. If you need a crash course on how to invest without needing a stint in the stress unit, visit https://www.jasonhartman.com.
Just an idea.
The Creating Wealth Team
Flickr / taberandrew
