With the DEAD LINE for the Government Residential Real Estate Tax Incentives fast approaching an interesting phenomenon is occuring. Strangely enough it is pushing buyers into the market that are not entirely ready to purchase a home. The result is that buyers are placing offers on homes but withdrawing or backing out at a much higher rate. These buyers are realizeing that their purchases may not be the ideal home or the ideal timing for them. Another phenomena is a higher incidence of stalled negotiations where buyers and sellers find themselves only several thousand dollars apart and neither party is giving.
The higher contract “Fall off ” rate is also seen in a multiple offer situation when a buyer is compellled to negotiate a higher price than they feel the home is worth . This results in a much higher rate of wihdrawl of the buyer as the impulse buy wears offf and buyers remorse sets in. Some realtors statistics show the rate of contract “fall off” is typically in the 10% range when no market pressures or multiple offers are present. In this “DEAD LINE” market place the rate of contract “fall off” has temporarily risen to the 30% -40% range.