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The First Time Home Buyer Tax Credit - How misinformation affects us all.

By
Real Estate Agent with Kimberly Howell Properties (210) 646-HOME

I'm frustrated by what I see.

Imagine what a consumer feels if I'm frustrated.  I work in this industry, so I know what's going on and read up on everything I can.  I spend hours doing research for posts, ideas, and clients.  I actually enjoy that side of real estate and real estate blogging.  When I see misinformation being passed around on things like the First Time Home Buyer Tax Credit recently, it really frustrates me.  Not just because I then have to field questions from my clients and locals in my area who say "but I just read on ______ that it was extended," but also because I worry about those consumers who rely on someone's blog who didn't check their facts first.

As a real estate blogger, I feel the necessity to try and deliver the most timely and correct information to my clients as well as to those who aren't my clients, but choose to read my blog anyway.  In some ways, I have even more responsibility to those non-clients.  When a reader stops in to read an article I've written on the First Time Home Buyer Tax Credit from Kalamazoo, I hope that my post helps them understand it and encourages them to seek a local blogger in their area who upholds the same ideas as I do and can be a great real estate agent for them.

But Matt, it's such a small percentage.

Most of the incorrect posts and tweets about the First Time Home Buyer Tax Credit were done by a small number of agents when you look at the big picture.  Most of the agents I consider friends and mentors didn't tell anyone that it was "passed."  They wouldn't dare, but a quick search on Twitter for "tax credit extended" brings up all sort of results that say it "has been extended" (in all fairness, there are a bunch who say "has not").  What is even more shocking is that when you look at the "has been extended" tweets and then follow the links to the posts, they typically say "might be" or other such non-definitive words.

So what?

Our industry should strive everyday to be better and more educated.  We should do everything in our power to help people make sense of real estate.  Giving them false hope or misinformation is not a good way to do either.  We require clients to trust us as we go about our work in helping them buy and sell their homes, yet we give them a great reason to distrust us with things like this.  We will destroy our own industry if we let ourselves.  "But Matt, I don't do this."  Ok, so you're on my side then.  So when you hear people giving out incorrect information - get involved, do what you can to fight the wrong information.  You may not save everyone, but at least you'll be fighting to save our industry as a whole.  And who knows, someone might just hear you and think, "hmmmm...I'd like to work with that person."

Comments (30)

Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Greg - When all is said and done, it probably will pass and this post will seem like a worthless effort on my part.  There will probably even be some people who laugh and say "he was so wrong."  Those will be people who missed the point.  Let's say it will pass on (oh let's pick a date...) November 13, 2009.  It's 100% somehow (we know it's never a sure thing in politics).  On that date, without a doubt, it will happen.  I still wouldn't want to see people reporting it today as it is passed, I would want to see posts about how it will be passed.  Perhaps I'm just arguing over semantics there, but I think it's important.

Jay - I just saw this line in a tweet: "It made it through Senate but House still has to approve."

Niki - Mistakes do get made, that's for sure.  I remember the mess that was created when it was announced in a room full of Realtors® that the tax credit could be used for a downpayment.  I think we, as real estate bloggers, need to take more responsibility for our actions and statements on our blogs.

Oct 30, 2009 07:09 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Clint - Stay off the sauce my friend.  It won't help the ulcer any.  As we had discussed this yesterday, I knew where you stood the minute I saw your name pop up in the comments.  I think you make a key point - "This is YOUR reputation you are putting out there..."  Why do I feel that some may not care, they can just shrug and say "well that's what I read on the internet."

Oct 30, 2009 07:12 AM
Brad Yzermans
First Time Home Buyer & Down Payment Assistance Specialist in So Cal. - Temecula, CA
Temecula-Murrieta-Menifee FHA/VA Mortgage Lender

Didn't everyone learn this lesson when they jumped the gun when Donovan said in a speech the $8,00 tax credit can be used for buyers down payment?  I was guilty of that one.  The main guys says it can be done you believe him, right? 

I tweeted today that the tax credit was on the verge of passing and outlined several options.  Verge meaning very close.....but not guaranteed. 

Oct 30, 2009 07:26 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Brad - Apparently not enough people learned that lesson.  It was the first thing that came to mind when I started seeing info about the extension.  To make matters worse, a lot of people are calling it "extended" when the links they provide often say "could be" or "might be" or "should be."  I think we should tweet and blog about possibilities - that's not a question for me (although I do prefer solid news and not just "might happen").  When we report them as fact, that's where the problems arise.

Oct 30, 2009 07:36 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Great post.  I do not know how manyposts were here on AR alone on the topic.

Oct 30, 2009 07:47 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

Jim - What really scares me are the Facebook status updates and tweet going out about it.  These are direct contacts with consumers for the most part.  I'm shocked, but not surprised.

Oct 30, 2009 09:13 AM
Terrie Leighton
Ferrari-Lund Real Estate - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

 I think this just shows you how lazy people really are! The only thing I have heard in the past two days was "They tax credit has been extended..." I have been busy and not on my computer until today and so I have not been researching or writing about this issue.

Two of my lenders sent out emails saying the tax credit is extended. The funny thing is, they both send two different versions of the extentsion. Ones said the extension was only until April 30, 2010 and the other lender said we had another full year!

They defiantly were not taking the time to research and follow up on their information prior to sending it out the clients. This is very frustrating to have misleading information being passed around. I completely understand your frustration Matt! It really is ridiculous.

Oct 30, 2009 09:48 AM
Doug Lazovick
Deed Street - Scottsdale, AZ

Matt,

Another great article.

It's good to see some people are still fighting the good fight. I've spent years trying to reach indivduals on research, fact checking and transparency. Sometimes you want to give up, because quite frankly, you feel like people don't care if they are lied to anymore, so long as they get answers to their questions instantaneously. 

But seeing efforts like yours, keeps me on task.

 

Doug

Oct 30, 2009 10:36 AM
Steve Shatsky
Dallas, TX

Hi Matt... who starts these rumors anyway?  I am so tired of correcting the misinformation that gets out there about the tax credit and other topics (such as short sale urban myths).  Bottom line is that if people would hold their tongues (and keyboards) when they really don't know what they are talking (or typing) about, this would not be an issue.

Oct 30, 2009 10:48 AM
Kathleen Cooper
Kathleen Cooper, Sposato Realty Group - Worcester, MA
Sposato Realty Group - Broker Owner

Hi Matt,

I don't think this will ever be considered a "worthless waste of your time" even if it's passed.  You're not blogging that it won't be passed, you're blogging to stick to the facts and the truths, not to get ahead of ourselves and you are right.  I'm guilty getting ahead.  I started hearing too many things from different people, even mortgage professionals that we work with posting on my Facebook and Twitter that it has INDEED been passed...I trusted what I was told, shame on me.  Hard to find out where you should turn to and trust for real information these days.  I know Jay said that "YOU" meaning the person asking the question was the best source of the information, but unfortunately I didn't get my invite to congress to go vote, so I won't be able to tell everyone with my own eyes and ears that they passed it or not.  ;) 

Sincerely,

Kathleen

Oct 30, 2009 11:27 AM
Sara Abbas
Realty Austin - Cedar Park, TX
CNE, CDRS - 512-522-4990

Thanks for posting, and it's never a worthless effort to make sure people have access to the facts. I saw Jay's post as well, and unfortunately you two (along with the rest of us who were paying attention) were far outnumbered by those reporting false information...

Oct 30, 2009 03:33 PM
Jay Thompson
Zillow - Seattle, WA

"I know Jay said that "YOU" meaning the person asking the question was the best source of the information, but unfortunately I didn't get my invite to congress to go vote, so I won't be able to tell everyone with my own eyes and ears that they passed it or not"

True (unless you happen to watch the voting live on CSPAN and CSPAN2) but you CAN wait for the mainstream media to announce the tax credit extension has passed both the Senate and the House, and been signed by the Presdident. THEN you can cite an article and accurately report to everyone the credit has really been extended.

I assure you, the MSM will be reporting each step of the way through the legislative process.

And I'll bet with each step, people will be jumping on with more TAX CREDIT EXTENDED! bullsh**....

Oct 31, 2009 09:11 AM
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Matt:

Some people don't realize the power that is in their fingertips and they just don't do enough research before posting.  They are taking information from headlines and headlines sensationalize to get people to read the articles. In order to be an effective blogger, you have to do a bit of reading...

 

Nov 02, 2009 04:06 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

I have much more to say about this issue.  Think there will be a follow up at AgentGenius this week.

Nov 02, 2009 11:08 AM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Bravo!!!!

Nov 04, 2009 10:11 PM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

I did follow up at AgentGenius - "If it’s on the internet, it MUST be true…right?"

Nov 04, 2009 10:23 PM
Paul Durry
Collateral Specialist Inc - Lawton, OK
Former Broker Associate, CDPE, CIAS, CHMS

Matt,

Well today we came a little closer to the extension being a reality, let's just close our eyes and wish for a positive and quick vote in the House!

Nov 05, 2009 10:05 AM
Freddy Delgadillo
Judah Realty Group - Bellevue, WA
Real Estate Broker specializing Greater Eastside

Great work Matt. Thanks for being real and straight forward.

Nov 05, 2009 12:40 PM
Erika Nicholson
ROSE ANNE ERICKSON REALTY, LLC. Columbus Ga - Fort Benning, GA
Columbus Ga Homes, Columbus Ga Real Estate, Ft Benning Ga,

Tell it like it is Matt,  some people can't wait to get something out there.

Nov 09, 2009 07:05 AM
Matt Stigliano
Kimberly Howell Properties (210) 646-HOME - San Antonio, TX

As we all know by now, the amendment did pass and was signed into law.  I still stand by everything I say in this video and have tons more thoughts to come.  Thanks to those who supported the idea of it and helped keep the world straight until it was actually signed into law.

Nov 09, 2009 07:13 AM