I disagreed with the original home buyer tax credit and am even more appalled at the new proposed one. HR 2801 was sponsored by NC Republican Howard Coble and is just a giveaway back to his biggest campaign donor. Any guess on who that might be.......no big surprise the National Association of Realtors. I think most Realtors probably support this type of legislation because they like moths to a flame will gladly support anything that helps them make more money even though in the end it all costs us far more than we make as a result. Remember fellow Realtors we are taxpayers too and will eventually have to pay the bill to further subsidize homebuyers. I have an idea why doesn't NAR push for $8000 tax credit to every single buyer whether for principal residence or not. And let's raise it up to $15000 instead of just $8000.
Oh wait... they already proposed that. NAR will do anything that makes it easier for Realtors to make money. Why not just support universal home ownership like health care where every American has a right to own their own home without having to pay for it. Let the government just buy everyone a home. That would really boost sales and prices and increase NAR's members income. But at the same time would ruin this country.
Unfortunately I am a NAR member through no choice of my own. I am required to be a Realtor to belong to the MLS(an unlawful tying agreement in my opinion) but one that I have unsuccessfully fought. I wrote this blog to let the world and other agents know that NAR does not speak for all Realtors. Sure there are many of us loving the idea of anything that will bring buyers back into our offices but there are also those of us who believe that buyers should not need to be further bribed by the government into home ownership--that there is enough benefits already to justify having your own roof over your head. Those Realtors who cannot make enough money to stay in this business without getting our government to bribe more and more buyers into buying should not be in this business anways.
The law of unintended consequences with everything the government does....here is an example.
Buyer who has cash buys a foreclosure for $50,000. Does no improvement to the home but sells it on land contract to a buyer for $80000 because that buyer cannot obtain a mortgage because they already lost their home to foreclosure. Of course that buyer uses the $8000 from the government as their down payment all while paying 10% interest too. How does this help the economy? A buyer ends up paying $80,000 for a home worth $50,000. When the contract expires he probably won't be able to get a mortgage because he is already $30,000 under water so he will probably walk away figuring it was only the governments $8000 anyways.
Wise up Realtors and the public---we are all paying for this and other government handouts! Let's stop the handouts even if the handout benefits us!