Columbia SC $8,000 Homebuyer Tax Credit And The Trickle-Down Effect
I have not been an advocate of this Federal tax credit because I don't believe in government handouts.....receiving tax dollars for doing nothing. But I'm changing my mind.
After completing a recent short sale with Citi Mortgage I began to examine where all this money was put to good use. 
The home buyer used roughly $6,000 of the credit to put toward the down payment and closing costs of the loan. This supplied work for the loan officer, the home appraiser, the underwriter of the loan, and various unforeseen employees at the mortgage company. Included in the closing costs was the work given to the Heating and Air company, the Pest Control company (termite inspection) and the Home Inspector. Associated with each of these are their respective receptionists and accounts payable/receivables personnel.
Work was also supplied to the closing attorney and his staff (paralegal, receptionist, and office personnel) the title insurance company and the Richland County tax office for graciously accepting payment for the transaction.
After the closing the soon-to-be University of South Carolina grad home buyer went to Lowe's and purchased new locks for her house plus buckets of paint and miscellaneous hardware for her new home. She also picked out some nice new appliances and this helped keep store employees employed. The next day two Lowe's delivery men installed the new appliances at the house. This almost took care of the remaining $2,000, but wait....there's more.
Our government has made the filing for the tax credit a little complicated so the buyer went to a tax preparer to complete the 1040X and Form 5405 so she could mail in her amended 2008 Income Tax Return and receive her $8,000 First Time Homebuyer Tax Credit. This gave additional business to both employees of the tax office. Ya gotta love helping the local small business owner.
That's a lot of trickle down that is spread over a wide area of our economy. We can also include the utility companies for supplying power, water and cable services to the home plus the convenience stores for selling everyone involved gasoline for their vehicles and the fast food restaurants for lunches. Everyone listed in this article are benefactors of a single home sale and are our neighbors here in Columbia.
Who would have thought such staggering numbers would be involved in the purchase of a starter home.
I'm quickly changing my mind about this government handout.
Contact me for a current list of homes for sale in the Columbia area
Terry Edwards Russell & Jeffcoat Realtors
tedwards@sc.rr.com www.FeaturedColumbiaHomes.com
East Lake Melrose Heights Shandon Rosewood Forest Acres Arcadia Lakes The Pines
and all the great neighborhoods that make up our city
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$8,000 Homebuyer Tax Credit And The Trickle-Down Effect
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