If you're looking for a tax deduction to help alleviate your tax consequences for 2007 then time is running short. If a real estate transaction is on your shortlist of possibles then there is just enough time left to buy a great house and get a great tax deduction from the purchase. It's a double whammy and lots of investors do it. Buying at the end of the year for investors is one of the easiest ways to get a nice little bonus deduction at the end of the year.
If you are thinking of buying before the end of the year there are a couple of things to look out for. First avoid a short sale they are notoriously slow and if you want to close before the end of they year you'll need a very smooth and timely transaction not one that has you on pins and needles constantly waiting for a slow bank to respond to the simplest of requests. Also if you're going to attempt a foreclosure your agent will have to be on top of things the whole escrow period as does your lender. They will have to get their side of the transaction done quickly to compensate for a sometimes slow turn around on the part of the bank. But a foreclosure is a much safer and quicker bet and can easily have a successful 30 day close.
Buying from an owner at this time of year can be tricky. Many people don't want to be moving during Christmas, so a vacant house can be a great way to get a quick escrow. For an owner occupied home a hold over after escrow may be the determining factor. Giving the owner enough time to find a home to move to will help your situation and give the owner the added incentive to cooperate in a quick sale.
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