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Are Sellers Padding for the 1st Timer Tax Credit

By
Real Estate Agent with RE/MAX Integrity ORREL#200404256

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?

Christopher Watters
Watters International Realty - Austin, TX
Austin Realtor (512-829-8000)

I don't think they are padding for it. The house is only going to appraise for X amount of dollars. I think homeowners should take into consideration if they want to sell their home, they should try to get it on the market before the tax rebate ends!

Mar 03, 2010 10:09 AM
Mike Wilbur
Guild Mortgage Company and Oregon Homes For Heroes - Salem, OR

To me, that would not make sense in this market.  As you know it is hard enough to get a home to appraise these days with closing costs included let alone an $8,000 pad.  That is what I see from my end on the loan side.  Based on the data you provided for LP and SP it seems a realtor would be doing a disservice to their customer if they over priced their home.  Have a great day!  Mike

Mar 09, 2010 04:19 AM