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For god’s sake, let’s move on!

All this talk about extending the $8000 tax credit makes my skin crawl. Every time I see this on TV my phone quits ringing. Extending, does take the urgency out of the program which will make the true fence sitters extremely happy. Why make a decision today, when you can wait 6 months?

Maybe I’ve been too harsh on the fence sitters. Maybe these people actually want to live within their means. Credit got us into this mess, can it bail us out?

Are the fence sitters really indecisive or is it they can’t qualify for a home loan. After all how many first time buyers can qualify these days. Interest rates are advertised at very low rates. Do you realize that to get that low rate you must be super qualified? You may qualify for a loan but at a rate 2% higher and with a large down payment. That is a huge jump in a monthly payment! Does it make sense economically?

Like so many programs, I’m sure we could improve this program that could be expanded. If you like throwing money at problems, like housing, I’m sure we could entice more home owners and investors to buy houses.

Let this program expire! Bring me something new to excite house buyers. Don’t restrict it to first time buyers, they’ve had their chance. Let’s develop a program that expands the pool. If housing can spur the recovery why should we limit the fuel to ignite the recovery?

Remember, cash for clunkers was extended 2 weeks, did that make it a great program?

Authored

by Paul S. Henderson, Realtor ®, RE/MAX Professionals & Four Seasons Inc.,

I am a Relocation Specialist and sell homes in DuPont, Lacey & Olympia, Washington.

*Visit my website at http://www.phenderson.net to search for homes in the South Puget Sound and NWMLS for anywhere in Washington State. All information is believed to be accurate, but is not warranted in any way.

Posted by Paul Henderson, Realtor ® Lacey & DuPont Washington homes on 09/17/2009 05:47 AM

Comments (50)

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50 Comments on For god’s sake, let’s move on!

SEP

It is time for some fresh thinking on how to best assist first time home buyers. Currently, many can not qualify for the financing that they need to purchase a home.

ToulaRosebrock,com

Hi Paul:

I'm with you....let this expire. November 30th means November 30th.

I have no problems working with a new program once this one is done.

GO PAUL!

I'm sick of the government giving us carrots on one hand and picking our pockets to pay for them.

Lenn, I am also tired of NAR endorsing extension of programs. Why can't they involve themselves in writing new plans...

Paul, I have not participated in this call to action for one reason. The deadline creates urgency! It's shooting ourselves in the foot to encourage an extension. In fact, all those people who decided NOT to buy because the government MIGHT extend the tax credit deserve not to get it. Harsh, I know. Compromise... extend BUT REDUCE IT, so prospective buyers don't think waiting pays.

Paul,

The entitlement mentality that the government has created comes with a huge price tag. Your statement about NAR coming up with new plans is absolutely on target.

Rich

Im on your side. Amen.

How about teaching first time home buyers how to actually save a few thousand dollars for a modest down payment and closing costs.

Most of what got us in this mess in the first place was the federal government playing Santa Claus and sending the productive members of the country (the ones earning living and paying taxes) the bill.

This expiration is a double edged sword for us and buyers. Something must be done or the housing stats are in my prediction going to drop big time in 2010.

Amen. Enough Said!

Fence sitters are now waiting for the something even bigger. We need true reform in government.

Paul, I'm with you. You make some great points in your post.

It ibushs time for something new. I'm with you Paul on that.

The fence sitters? Many of them have been prudent with their money and have been waiting for a better time to buy. If they have been waiting for the last three years (as many of them have) - kudos to them! They can now buy a half price home because of their patience.

GOOD MORNING PAUL! Just had to come here and say congrats on your feature -- and on another fabulous title for your post! --Gab

Love your attitude and apparently lots of us have the same feelings. . great post

Paul - The program was never the best idea possible. As you point out it was another way for the government to throw money at a problem, hoping some would stick. The actual cost to the taxpayer has been estimated to be $43,000 per additional home sold--$15 billion cost divided by the estimated 350,000 additional sales. And if we extend it, the costs only rise. It would be nice if the government could develop a program that both made sense and helped.

IF they decide to extend it, let it be on the 30th of November. Of course by then it is Christmas and who is going to buy during the holidays?

I have a buyer right now that is approved for FHA but they are so antsy on getting in on the tax credit. In the mean time they are limited to what they can purchase due to the inventory and their choices....I told them to concentrate on getting a property and not the tax credit...it probably qwill expire and most likely they'll extend it...its really a wash anyway for them.

Some 42% of the buyers in my market are cash paying investors. The tax credit might be stimulating some buyers, but obviously it is the prices that are getting the buyers to come out.

No extension is needed as this tax credit program should never have been started.

It is all smoke and mirrors, my friend. This has NOTHING to do with helping first time buyers or any other citizen... this is all about BUYING VOTES.

The above message is brought to you by your friendly neighborhood cynic. LOL

I think it may be causing a roller coaster ride. It would be nice to extend it through until spring

Shelton

Hey Paul I blogged about this this morning and then saw your blog. I think we share some points in common

Paul: Extending the credit program, or even letting the buyers THINK the program might be extended... will do one main thing... push the buyers back up ON the fence again. Bye bye urgency !

I agree. There needs to be a breather, and if another program comes, don't limit it to first time buyers. I would like to see them target it.

I agree. . . let it expire, and then examine the impact it has had on the market. If it was found to be beneficial, introduce a new program in the Spring.

I have to agree. This program was originally about attempting to get people sitting on the fence to make a decision and move to buy a home. Extending it does one thing...allows them to sit on the fence more. Great post....worth the feature!

Paul - I am for letting it die a natural death. Except in one case, I think that those in the military, stationed overseas, especially those serving in Iraq and Afghanistan during the program, should be eligible for 9 months after returning to the U.S.

Bring me something new to excite house buyers. Don’t restrict it to first time buyers, they’ve had their chance. Let’s develop a program that expands the pool.

Paul, am I to understand that you want a LARGER government subsidy for your business? I have a great program that will knock the socks off of every other program and it won't involve the Government; a price reduction.

I know a lot of agents and brokers have lost that whole "capitalism thingy" in their vocabulary but real estate is still a great way to build wealth...if bought properly. If you want to see buyers "get off the fence", reduce prices to the point where they are going BATTY about NOT owning a home; that's a great program.

Contrary to popular belief folks, you don't have to engage in government-sponsored Ponzi schemes to sell property in America.

Paul.... I agree with Brian 110%.... I like the fact that you are tired of the talk about the tax credit being extended... but can we agree on this one thing? Does the tax credit bring more offers and also increase the purchase price? If so, why not allow the seller-funded down payment program back in. It does the same thing, yet it doesn't cost the tax payer a dime. I kind of written about this in the past and in a blog this morning. thanks

jeff belonger

I agree. I wish there was a way to teach first time home buyers how to save for a downpayment! I have so many wanting to get into the market with zero cash. I think that is what got us into this mess we are in.

Great Post!

I think that there should be a sense of urgency that the program will expire. Its a great way to continue to stimulate sales. My hope is that come first of the year they get something new and exciting maybe for all buyers. In my neck of the woods, sales are great for first time home buyers. Sales are also great for distressed sales. But there is a bottleneck for anything between 250-400k. It would be great if they attempted to stimulate all home sales.

I agree extending the tax credit takes the urgency out of buying. Let it expire and move on.

Paul, I agree with you that talking about extending the tax credit does take the urgency out of the situation and it is making many first time buyers fence sit. So true.

I'm with you on this one! I'm sick of reading/seeing/hearing every day about this tax credit!!

Are we suppose to do a "daily countdown?"

As you said....enough is enough!

Patricia

I agree with Mike S. above that those in the military out of the country should be allowed a grace period when returning home. If it is to be extended, do it on Nov. 30th with no pre deadline hype about it.

I have talked with a few first time home buyers (including my client closing today) that say they are going ahead becuase there may not be another tax credit. Others think that if they wait it will still be there and maybe an even greater amount.

Great point! I think this tax credit is afecting the short sales and foreclosure listings...

They need to let it go away or do something with long term teeth. The phone has quit ringing.

It needs to stop. We need to get back to letting the market work. In fact, we need to have the new construction starts DROP some more. It is going to hurt, but otherwise we are going to have to play this game forever.

The $8,000 credit has hurt my deals in a lot of ways. I think I'm going to write a blog about it . . . thanks for the inspiration!

Paul

The program needs to end on November 30th.

Good luck and success.

Lou Ludwig

Your right let it die. Who needs a tax break when you can get a short sale and save more than 8k! Especially when I can process them for free from start to finish in my short sale department. All 50 states!

It certainly has been an incentive to bring buyers out of the woodworks, but now they are thinking that it might be extended and that is taking away some of the urgency.

Sharon

Paul,

If they come up with another mortgage program, it ought include all buyers. That would give the real estate market even more kick than what this one did.

Our inventory is so low and has been for several months. Many buyers are desperate to buy but cannot compete against the investors paying cash for homes or buyers who will lose out because the short sale is not approved in time. We have buyers who have been off the fence for the past 6 months, there is just not enough market to go around for them to close in time. We counsel them about not seeing the forest for the trees. Cash is king, conventional is next, maybe fha and forget VA.

SEP

I agree the program needs to end on Nov 30th, but why do we need a Govt bail out to move things? People will buy when prices come back into line, back to earth. The Govt is just trying to delay the Bubble Popping and it only will enlarge it into a bigger bubble. Let capitalism work itself out and not enslave our futures to the tax mongers.

Great point! It should expired on the 30th. We have no problems working with a new program.

It needs to expire. Let the market correct itself. You cannot force the econmy to heal...take the band aid's off and allow the economy to breathe and heal at its own pace.

SEP

What about all of those first time home buyers who have had an offer on a short sale for the last 6 months waiting for the lender to get it together! Here in the Florida Keys most first time homebuyers are priced out of the market, these short sales and the tax credit have opened doors for them, let's not slam it shut! I have also worked with those whom do not qualify for the tax credit and should. If there is a plan that would help everyone out, then I'm in until then, extend the credit!

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