The following post will probably have you scratching your head and wondering when the correct close of escrow date should be if you are considering using the First Time Home Buyers $8000 Tax Credit by the end of this year.
So Why The Clock AND Is It The Right Time? Which clock should be used?
I have been using this clock, below, for some time now on my weekly market updates to draw attention to how much time is left until the $8,000 Tax Credit expires.
And to the best of my knowledge, right now, the Tax credit is set to expire at the stroke of midnight on November 30, 2009.
So here is my dilemma…..On Friday I was talking with a friend and managing broker from another company. Yes we can have friends that work in other companies, but I digress. He brings up a very interesting point and one that we need to look at when presenting this topic to our eligible homebuyers. That is:
- November 30, 2009 is a Monday
- November 29, 2009 is Sunday
- November 28, 2009 is Saturday
- November 27, 2009 is the day after you guessed it
- November 26, 2009 which is a Thursday and a HOLIDAY (THANKSGIVING)
Does anyone see a possible problem here? Or is it just me?
- Are we considering the possibilities of potential problems with funding, to where the property has closed by the prescribed time?
- Title companies/Attorneys can handle just so many closes in a day even if they have extra closers on hand to handle the rush and where will they come from?
- Banks are still going to close at 5pm, maybe 6pm in some areas!
- What about getting the wire transfer of funds in time to close before 5pm, maybe 6pm in some areas?
- What happens if there is a change to the settlement statement that will affect the APR at the last minute? Remember the RESPA changes that have taken effect just recently.
- And the list could go on and on.
So should we be looking at, at the latest unless it is an all cash deal, closing on Friday November 20, 2009? Just so we will have a little bit of a cushion in the event of a problem!
That being the case, if we figure 45 days to close on a home then this is what the clock would look like to have an accepted contract as opposed to the one above.
Don Rogers is a licensed REALTOR® in Missouri. I specialize in St. Charles County. If you are looking to buy or sell or you are relocating to the area and would like information about the St Charles County MO area do not hesitate to give me a call at 314-954-6775 or if you would prefer to send me an email at Don@DRogersHomes.com.