A reality check for tax credit-panicked buyers

Mood of the Market

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

For years, I taught my clients about the same old real estate freak-outs and how to manage them. Time to write an offer? That's a freak-out moment for many. Get a contract accepted?The buyer's freaking out about having paid too much, while the seller's sitting at home having the reverse freak-out that maybe they took too little. Contingency removal time? There's another freak-out. The normal stuff -- all to be expected. Over the last two years, though, we've seen new freak-out after new freak-out -- panicky breath-holding over whether a loan will get signed off, whether an appraisal will come in at the purchase price, or whether a burdensome loan will be modified or foreclosed on. Over the first few iterations of the first-time homebuyer tax credit, there wasn't much of a freak-out about missing out, because months before the expiration date it was always extended.But on this most recent go-round, with most industry commentators warning that the credit would likely not be ...