Mar/10
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Is it responsible to recommend short sale properties to our buyers who want to qualify for the tax credit?
2 Comments · Posted by admin in Short Sales
How can we recommend a short sale property to a buyer who specifically wants to qualify for the tax credit? We have time to meet the criteria of signed contract date, but the closing date is completely out of our control. And that creates a real challenge for Realtors knowing that these short sales can take 6 months or longer to close.
Thoughts?
Damion Flynn · March 12, 2010 at 12:44 pm
The only thing you can do is educate the buyers and cross your fingers. Often times, these short sales can be gotten at a significant enough reduction to make up for the potential loss of the tax credit (at least in my area). Unless they are just wanting cash in hand, it makes sense that they can save $10k or more in value, or additional equity, in lieu of the tax credit if the closing date is pushed beyond the threshold of the tax credit time frame.
Educating the buyers on the pros and cons will help to alleviate issues later if it does go beyond. As real estate professionals, all we can do is explain, educate, and do our best to meet all of our clients’ goals.
Damion Flynn
MS Coast Real Estate
Scott Taylor, Realtor, P.A. · March 12, 2010 at 1:40 pm
I think it’s irresponsible. Buyers often are drawn to the short sales because of the lower prices. I explain the process and try to talk them out of short sales. Many short sales fall through from nothing more then impatient buyers who were not advised correctly about the possible length of an approval.