I keep reading about the possibility of the $8000 tax credit being extended and different pushes to open it up to more people. Of course I hear the naysayers who think it will be throwing money away and only temporarily keep market prices up.
They say that most of the people will buy a home anyway so why give them the tax credit. I know that I have probably gotten 7-10 more sales in the recent 3-4 months because buyer wanted the tax credit. That was there motivation. These are people who would have stayed on the fence and perhaps waited until next spring if it weren't for the tax credit. I know it has helped!
However, I like to come up with ideas that work for all people involved. How about this:
EXTEND THE $8000 TAX CREDIT TO BUYERS WHO BUY A 'MARKET WORN' HOUSE!
What I mean by 'market worn' is a house that has been on the market a defined amount of days without selling. That could be 50 or more, 100 or more, maybe 150 or more days. We know many house are coming on the market and selling right away and tax credit or not they will sell, so why throw $8000 at those.
The houses that are 'market worn' are a big part of the problem. They sit on the market and people do a search and say, "wow there are so many houses out there." The truth is there are many that sell fast and then a large number that linger on the market.
Guess what? A lot of buyers would search this market and go after the 'market worn" houses and at least consider them and even throw some offer at them. Perhaps eventually the seller would come to reality on the price and the buyer would be happy because they would get a tax credit for buying the house.
We all probably have 1 or 2 listings that are right on the fringe of selling if only there was a there was motivation that pointed the buyer to the house over some others that are out there. I am not suggesting people over pay for bad houses. I do believe that most sellers will look at reasonable offers. As days on the market increases sellers can become more flexible. And a TAX CREDIT for the buyers taking one of these homes of the market is something worth extending!
Chuck Carstensen - RE/MAX Associates Plus Inc. - Elk River, MN - 612-290-3809 - chuck@thediscoveryteam.com
;)
;)
Absolutely, Chuck! Your proposal would certainly help stimulate the "Worn" market and also get them off of the Inventory Lists, a double whammy! Any extension should be aimed at sustaining growth in the RE Sector, not merely giving a hand-out. I think like you and I am a fairly liberal democrat, to boot!
It is called, using our intelligence for County's good and not merely 'feathering our own beds'! Thanks for stirring me up this AM!