Louisville Real Estate News : Open Letter to First Time Home Buyers

Nicely written Erik... you're absolutely right!

Erik - excellent reminder, and comparison to the last minute Christmas shopper. The countdown clock is cool.

I love the clock. This is a great reminder and buyers bidding on short sales should allow more time.

Hi Erik, Good post. Thanks for sharing.

Best - Sash

Cameron - Thanks.  I was inspired by a conversation I had with a prospective client the other day.  He mentioned not wanting to start looking until October or November.

Mike - Believe me, I've been there.

Gita - You are correct, the window for short sales is closing even faster.  Unless the foundation has been poured, the new construction window is shut.

Sasha - Thanks.

Well done... Gosh, i wish I could say I couldn't relate to your apt descriptors of procrustination at its best.... :-)

Love this countdown clock! I need to remind my clients again this week.

Inna - I put extra effort in for my clients, but I am terrible about getting my own stuff done.  Tomorrow is always the answer.

Lizette - Without a doubt, you'll still be reminding some of them in October.

Erik it is true that there will be many scrambling at the last minute to get this done. I have a feeling though that this will be extended. They just don't want to say it because they want the stimulas to continue and not have people wait...just a theory of mine:)

Rigt on Erik.  I completely agree, in fact I think I will re-blog.  I feel the same way & hope folks don't regret not making a decision earlier.  K

K - Whether it is in December or some time in the future this credit is going to end and people will be screaming about how unfair it is that their loan didn't close.  I just hope it's not one of my clients.

Erik - EXCELLENT post.  I worry about what's going to happen towards the end of November as buyers start fearing they're not going to make it.  You think we'll see a rash of lawsuits after people don't get their $8K because they started the process too late?  I do.  (I re-blogged as well - it was too good to not make sure everyone sees it.)

Erik - This is a terrific point!  I was actually thinking of this topic today during a meeting with my agents.  Time will run out soon!

Erik,

This is a great and oh so accurate post for those who are delaying get in to their first home.

Ditto on the clever clock idea - and knowing it could take a couple of months to even find a house - they need to start today - and get pre-approved 1st.

Spoken by a mortgage broker who knows too well it can now take 45 days to close.

Matt - I think the end of November is going to be a mess.  In addition to potential lawsuits, I worry that people will try to just walk away from deals.  Hopefully, we'll both be wrong.  But I have no doubt, a good number of buyers will miss the deadline. 

Jason - Now is definitely the time to act.  Inventory is going to be another problem.  The better <$150,000 props go fairly quickly in my area.

Christine - I've got 1 client who is just begging to be left out in the cold.  I hope some of the comments here will help him see the light.

Rick - You are absolutely correct.  Pre-approval letters are going to be golden tickets when everyone tries to pile on at the end.  I haven't seen the good side of 30 days in months and have bumped into a few 45+.  This is not going to get better.

Maybe they are waiting for the prices to go down-lol!

Very nicely worded Erik.  LOVE the countdown clock!!

Love this post! It's so right. We were recently discussing this in our weekly team meeting. Guess I need to get busy getting the word out.

Monika - It's sad, but some are.  While we don't have a steep upslope, I think the bottom has come and gone for Louisville.  (Of course, I reserve the right to change that opinion in the middle of November).

Well done, Erik!  I've been using backwards math trying to get people to understand that they don't have time to wait around anymore if they plan to shop, negotiate, inspect and close in time to qualify for the tax credit.  And don't forget the possibility that the first house might not work out and they will be in the position of starting all over again...with no time to spare if they wait until the the very last minute. 

Nicely put Erik. The way summer is absolutely flying by you couldn't be more right...Will it help? Probably not - People just love to procrastinate and we'll all be running around like crazy sometime late in October!

Erik: This is a great reminder for the home buyers out there. The $8,000 Tax Credit will be gone before you know it

Carla - Thanks!  I spent a loooong-time trying to center it and kept crashing the post.  Oh well, at least it works.

Vickie - Getting the word out is my goal for the next couple of weeks.  I hope to scrounge up 1 or 2 extra buyers and make them see the light. 

Lisa - Most of my math is backwards so this fit perfectly:)  You make a good point about have to restart though.  Inspections, Appraisals, etc are going to be critical.  Not too mention, the seller will obviously have the upper-hand.  (I think that's going to be my next post).

Good point on the date of possession. I'll keep that in mind.

Denise - We should all sleep now because October will be hectic indeed.

Roland - It sure will my friend.  Hope all is well in Clarksville.

Johnny - If I'm not mistaken, this is a Monday.  There will be some very anxious people over the weekend.

Erik - I like the way you think, my friend! You're a genious. Brilliant post. Just might need to reblog this bad boy.

Thanks, I didn't even realize when the drop date was myself. Now I can let buyer's know. Julie.

I'm a little more conservative and think with the mad rush at the end it will take 60 days to close, so I'm giving a drop dead date of must be under contract by October 1st.

Erik, nicely put. It's amazing that the buyers that really want to take advantage of this opportunity are still reluctant to pull the trigger. They seem to be waiting for their first home, their 'forever home' to miraculously appear and be 50% less than their purchasing power. 

Saw a conversation on one of my social networking sites yesterday.  A potential 1st-time buyer was completely unaware of the program available to them and the $8000 tax credit.  They stated they had never heard or read anything about it and knew nothing of its details.  They were wondering aloud as to the intelligence and marketing efforts of lenders/realtors if they had not done a better job of educating the public about the availability of this program. 

Huh?    Yes, we have to reach them somehow ... educate them ... but how ,if they are that far removed from newspapers, current events, or normal conversation?  This sometimes mystifies me.  I'll keep trying on my part, but ...

Great post ...   Hope it does the trick in spurring those into action that ARE aware.

Erik - I hadn't even thought of the potential for people just walking away.  I keep wondering if the government will suddenly say (in December) "we're extending it for everyone who currently has an open transaction."  If the lawsuits start, I feel they may have to just to protect all the industry people who will be affected by home buyer's (and sellers) who are affected by un-foreseen slow downs (appraisals, the new GFE rules, funding, etc.).  It worries me a lot.  I keep reminding clients so that hopefully I personally won't run into it, but I feel the phones will be ringing off the hook come November 1.

Kim - Thank you. I know (humble also). Go ahead. 

Julie - After reading Gene's comment (#33), you can't do enough to let them know about the deadline. 

Ed - You make an excellent point.  Many first-time home buyers are under the (mis)perception that they are going to find their dream home for a song and the credit is the cherry on top.  For the vast majority of people, the first home is a place to get started.  A place to grow their family. And, a way to build wealth.  Third or fourth homes are dream homes. 

Gene - I'd like to say I'm astounded, but I guess I'm not.  You could walk around with signs and a megaphone and the person to you would miss it because he was listening to his ipod and checking out girls walking by.  

Matt - You may be right about the Dec extension.  There will certainly be a lot of upset people.  As much as I hate to play the cya game, it might be a good idea to have a document to give to FTHBs warning them of the impending date. 

Well said, well done.  I confess to procrastination myself - but not when there is $8000 involved!  Get with the program people.

Michael

Erik:

Great blog!  I sent out the very same thing.  Unfortunately, people treat buying a home a lot like going to Wal-Mart to get groceries.

Where NAR can help out best is educate about the process.

Michael

Dude i love the little clock! Well done on the feature!

Excellent post. Many first time home buyers do not realize that they have to take possession of the house by that time. 

Erik

This is almost like the CASH FOR CLUNKERS PROGRAM FOR CARS.  I was in a dealership last night to get information about a localism post and they were entirely too busy to give me 5 minutes.  They were overwhelmed with the buyers coming in their door.

Maybe the future holds the same for us.  We might see that sudden upswing start in September.

I have been preaching the countdown with my buyers for weeks now.

Great post.

I love this, it is so true and I now that I have read this I will speak to my clients in such a manner, and love the little ticker, want to add it to my website.  Awesome!!!!

Nice post Erik, Love the countdown clock also!  thanks for sharing!  Yes, I believe we will have a lot of last minute shoppers. Hope they see the deadline!

www.charlottelakewyliehomes.com

Couldn't have said it better myself.

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. Just wanted to clarify for consumers reading this.

Oh and I totally would be the type to miss out due to proacrastination.

Well said!!!!

Erik,

Mant are sitting on the sideline thinking there is still plenty of time!

Love, love, love this post! Well written and the clock is GREAT!

Erik... this is a good reminder... but I will scream this loud, until the government gets it... people still need money to buy. I know more that have jumped off the fence that had money, because this made sense. But there are thousands that can't act, because they don't have the initial downpayment. ANd in my opinion, many of these same people are well qualified when it comes to credit, jobs, and stability...  just that they couldn't save for various reasons. You can't assume that one is a deadbeat or not qualified to buy if they can't save.  This wasn't towards you, but to people in general.  thanks

Congrats on the feature.  I was wondering the same if they will extend it.  I think most folks might be counting on that since it happened already!

Great thoughts and love the clock. One more added note, here in the Inland Empire in CA you may need all that time to actually find the house. Getting an offer accepted is not so easy due to mulitple offers on almost every property!!!

Erik - Brilliant.  Wish I'd thought of it sooner, but I'm stealing... uh, being inspired by your idea and going to create something similar... for my marketing list.  Great job - if you're actually sending these letters out, I'm sure the response rate has been very good.

Hi Erik,

Love the Countdown Clock!!!!  Great reminder for all of those First Time Homebuyers whom think they have all the time in the world.

Erik,

Excellent open letter to the Buyers! But,alas, they'll put it off until October 17th and beg, plead, cry, "please help me get this deal done!".... and we will! 'cause that's what we do!

Kathy Opatka

I had a client this week who came to me and said, "I'm not too worried about the deadline, they will extend it like every other program." While I tried to convince him that there was nothing showing that, he assured me "he knew". I think that a lot of folk will be upset come Dec.1

Michael B.- 'Get with the program people' - Well put.  To most FTHBs $8000 is a lot of money.  (Actually, it is a lot of money to virtually everyone I know).  I don't understand, why some aren't doing everything possible to get their finances in line and buy a home.

Michael C. - If Walmart offered a $20 rebate on groceries, half of America would be in the store. 

Greg - Thanks buddy.

Integrity - I agree.  Most also don't realize what is involved in taking possession.  Hope this help.

Jayne - I had no idea the $$ for clunkers program was driving that kind of traffic.  (Sorry couldn't resist).  I hope your right and the rush comes in Sept not October.

Tatyana - I think if you click the clock it will take you to the website where I got it from.  You can definitely get code to add it to yours.

Ginger - Hope springs eternal.

Laura - Thanks.

Steve - Thanks for the clarification.  November 30th is going to be a looong day.

Inez - Thank you.

Mike - The fourth quarter is upon us.  If they don't get in the game now, they will miss out.

My guess is that the government will either extend the program or do a new one. However, a bird in the hand.......

Tick tock! I love your clock!  Outstanding Post Erik, I am stealing your clock for my Facebook! Can I steal some of your post too????

Laura - Thank you.  I hope the clock helps drive home the point.

Jeff - You're preaching to the choir here my friend.  I'm a fan of DPA.  The programs weren't the problem.  Manipulating values was the issue. 

Kristin - I can easily see Matt being correct, but I certainly wouldn't bet my $8000 on it.

Diane - Multiple offers! Don't you watch the news?  This is a buyer's market.  We can offer whatever we want and the seller's have to take it.  Sorry, I was channeling there.  Your point is very valid.  Someone else mentioned that prolonging the search also eliminates time to find another home if there are inspection / appraisal problems. 

Glenn - Pilfer away.  I haven't sent it yet, but intend to. 

Mike - Like sand through the hourglass, so goes your money down the toilet. 

Kathy - I will try because I believe it is a great time to buy a home in Louisville.  With interest rates as low as they are buyers are saving waaaay more than $8000 over those who purchased a couple years ago.  However, I intend to make it crystal clear that they blew it with respect to the credit.

Nicholas - Seriously?  Your guy is willing to bet $8,000 on a rumor?  Congress isn't even in session.  This is worse than calling an all-in with an inside-straight draw.  The odds are definitely not in your favor.

Joe - Many people suppose this will be the case.  But, why risk it?  Do people think rates are going lower, I don't.  House values will drop? Not in Louisville.  Where is the reward for putting $8000 on the line?

Teresa - I'd appreciate a little link love, but have at it.

Thanks for a great presentation. The clock ticking down is awesome. We have been running a similar campaign here in Akron Ohio. Hope they get the message because this is serious stuff, $8 Grand! Thank you.

This couldn't have been said any better, imho. I think I'll reblog this as well. Talk about lighting a fire under someone's arse. People really need to know this the way that you put it.

Erik:

I could not have put it any better.

Erik,

Yes, most First-time Homebuyers who are planning to use this credit don't realize they are running out of time. They don't realize how long it will take to close. I feel though, that there is a very good chance the credit will be extended.

Erik,

What a great reminder! People have a tendency to just remember the One Big Date, and forget what it takes to get there. I work for a builder and people would tell me they need to move in June. Well, if you want to build, you need to have everything done by the CHRISTMAS before that. You can believe that shocked some folks into taking action sooner. You've just got to be able to drive the point home, which you have done very well!

Well written and good reminder.  My wife and I want to get a home ASAP and will start in about 30 days.  We have a few things to work out first.

You got it right.  I have been working with buyers lately that don't want to get preapproved until they find a home that they want and write a contact.  Not only is that going into the process blindfolded, but it will delay things indefinitely and possibly cost them up to $8k at the same time. 

David

Exactly!

For the past few months I've been telling my clients October 1st is the real deadline date. Here in Hawaii, it's taking a bit longer to close escrow on time. The usual time is 30-45 days. With a VA loan it's taking 60 days and sometimes longer to close. Just make sure you're using the number of days that pertain to your area regarding closing timelines. Find out by calling your friendly escrow companies or attorneys who handle closings.

This brings up another point. DON'T WAIT FOR THE MAD RUSH! Escrow timelines are bound to get longer, the closer we get to the deadline. Not to mention, fewer properties to choose from.

-Mako

David - $8000 is certainly a lot of money.  Used correctly, this could really make a difference in someone's life.

William - Thanks for the comment and the reblog.  Maybe a few singed hairs in the nether regions will do the trick.

Bob - Thanks.

Ann - My guess is that you are correct.  However, as I mentioned above, I see no possible benefit to risking it.Wouldn't you feel like an idiot as a FTHB if you missed the deadline just because you couldn't get around to it?

Ruth - Thanks.  Ironically I had a first-time home buyer come to me last week saying they wanted to build.  I told them great, but forget the $8,000.  They seemed to think it should only take 2-3 months to build. 

Gene - This is the one possible reason for delay that I accept.  Sometimes life events get in the way and take time to resolve.  I wish you the best of luck getting everything in order.  BTW - you have an uncanny resemblence to David (#61).

David @ Halo - There are all kinds of things wrong with that philosophy, but I've seen it tried repeatedly.  As we get down to the wire, no listing agent worth his/her salt is going to let their sellers accept a contract without a pre-approval letter. 

Great Post...I am making copies for several clients!

Erik, I can't agree with you more.  I think we as an industry have done a pretty crappy job of educating the public as to how this $8000 tax credit works.

Mako - Sounds like you'll be among the first to see how this is going to play out.  Please keep us informed.

Gale/Jim - Thank you.

Damon - I've tried to do my part.  But, as someone mentioned above, there are still people who don't even know about the credit. So, you must be right.

Touche' Erik.  Ture words spoken like a champ!

What a great reminder!  Time sure flies when we're having fun ...

Awesome post.  I'm getting me one of those clocks on my website!

I love your opening line-- but unless you are blogging to someone  besides us realtors-- your message fallls on the choir!!  We know the song and dance-- the issue is to get buyers out there to  understand this is the best buying opportunity in history-- Via the $8000 tax crdit which I have been trying to do ---So unless I missed something -- how do we spur that energy to get the buyers to step up!!!

- and  Even more to get sellers to understand  they can no longer hold to a price point and say to us "we don't won't to give it away"

That sounds great --  may have worked back in the day--- but with this new apprasial system, I am counseling my buyers to look at the reality of this mkt. and there home could be worth even less 2mos. from now.--   " It is the best of times, It is the worst of Times" quouting Dickens and depending on where you are on that timeline.,   You need to make your best deal now-- my thought!

to

greeting---erick---and to those reading my post--

As a follow up to what erick has said--if you are a 1st time home buyer.-- you do need to get something  in the works NOW!!---Just heard that  Whitaker/Bean/Taylor can no longer do FHA loans--which will afect alot of loan closings.  --so see who you mtg.lender is placing the loan with -- so you can get the fiancing you need,--with no last min. --problems---are

I've sent out about 90 ALERTS with the same message.

Now this is a call to action.  Great impetus, Erik.

Linda - Thanks for your comments.  I can live with Champ.

Karen - You are right about that.  I've put several FTHBs into homes this summer (one more later today) and it has been fun.  As the end draws near, we need to be a little careful though.

Mike - Pretty cool, isn't it?

Andrea - Thanks for sharing your thoughts.  I'm fairly certain at least one person besides agents and my mom reads this, so maybe it will help him or her.  Seriously, I'll be sending this to any and all prospects I am working with. Tomorrow.  To your second point, I don't know what else to do to spur energy.  Some buyer's simply don't understand the implications of ~5% interest rates and great inventory.  By definition, most have never owned a home before and can't see the additional savings they are realizing. As the cliche goes, "you can lead a horse to water..."

Lenn - I have no doubt that you are on top of this.

Paul - Stop reading my drivel and get back to writing.

Great point! We just had a closing that took 60 days to close so you need to allow plenty of time for sure, especially with all of the new requirements that lenders have to meet.

Well siad Erik! The process is taking longer. I had a situation like Kevin & Monica. It took65 days to close. Thank goodness the seller was more patient than most and hung in there.

Wow!  What a great post...I really enjoyed reading it, and the comments that followed!  Thank you for writing it!

Kevin & Monica - With ever changing requirements, it is definitely getting harder and harder to close in a reasonable amount of time.  Preparing buyers for this fact may be one of the tougher challenges over the next few months.

Pamela - Ye gads! 65 days! I imagine the frustration level was so high that everyone was walking around on pins and needles.

Jeanna - Thanks for your comment.  I really enjoyed the dialog that followed as well.

Erik,

Great post and congrats on the feature!  I know of a few that are taking their time.

Ann

Erik ! Cant believe I missed this earlier ! I LOVE how this is written !!!

Very well done my friend, I'm going to reblog tomorrow.

Cheers !

Sheldon

Erik:  Love the countdown clock!

Great post and a great reminder to those procrastinators out there!

This is a very clever post Erik. It is also funny if you are not the one who thinks that they can buy a huge item such as a house in the last minute. LOVE the clock

just an example of life's little surprises.

USDA/RD in fort myers just informed us that review time is now 2 weeks. it use to be 1.

that's life.

There are tons out there that think they have to be under contract by Dec 1st and they will get the $8000.