The other day after the tax credit was approved I was brainstorming on how to help a friend of mine sale a property he has that he of course owes more than its worth well it hit me find out was his bottom line is reduce my commission some and then sale it short by $6500 let him take out a loan to cover the difference and when he gets his tax credit pay off the note. He could then move on and buy another house in which I make the buyers agent commission it’s a win win situation but is it really.
Yes and No
Yes it helps that client move on and sale a property that has been listed on and off for 2 plus years. It helps me make a commission on two transactions but lets look at what could negatively happen to this area, if I thought of it then so did somebody else.
Let’s say there are 10 sellers that are desperately ready to move their property and say 5 get this same marketing recommendation. What’s that do to the local market, if you have 5 properties that are listed around $200k and they use this practice and lower the sales price by $6,500 then in June at the pick of the market when things are moving again, all of our comparable sales are lowered by an average of 3% (an appraisal is not going to calculate or consider this practice) there by forcing are market down even lower.
NO
I do not like this tax credit I feel that it will hurt more than it helps and yes in the short term it will generate some sales but in the long run I feel it will hurt or economy and local markets. So all I can say is be careful what kind of deals you guys put together and later this year when you have appraisal issues remember that when you point your finger at the man you have 3 pointing back at you.
I List and sale property for REMAX in Pell City AL and Logan Martin Lake waterfront property so I would like to see what your thought are in the different market areas.
God Bless, and Good luck with your business
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