With recent data showing that distressed sales (home sales from foreclosures or short sales) accounting for 40-45% of all home sales in February, and the $8,000 home buyers tax credit being used as an incentive to get first-time buyers to buy, it stands to reason that many buyers might be more interested in buying a distressed property. The side effect, of course, is that "traditional" home sellers have to compete against a distressed property to attract that same buyer. The home sellers were responsible and always made their mortgage payments, etc, and now they are at a disadvantage because they might have to significantly lower their price to gain the interest of buyers who are attracted to the discounted prices of distressed homes.
My question that I'd like to open up for discusssion is, "What if the $8,000 tax credit was only available when buying a non-distressed home? Would that help level the playing field for traditional home sellers?"
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