I was talking with a buyer of mine and he said he heard somewhere that sellers are padding their home prices because of the $8,000 Tax Credit. I told him sure someone out there might think that could work but most savy buyers agents are looking at the comps and know Fair Market Value. I would have to disagree with an seller that thought this a good idea because your are pricing your buyers out of buying your home.
Further that tax credit is great incentive and the nature of the market is to list high to pad from low ball offers but again when the home is priced right it sells quickly and very close to full price. I often look at the List Price to Sales Price and see a very small percentage differnece. The listings with huge DOMs are the large LP to SP percentages.
Any thoughts on padding for the Tax Credit? Are you seeing it? Is it working?
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