This $8,000 tax credit that everyone seems so excited about reminds me of Wimpy in the old Popeye cartoons. You may recall that he was always imploring, "I'll gladly pay you Tuesday for a hamburger today."
OK, it looks like people may eventually get the $8,000 back (as in "next Tuesday") but they first will have to qualify for and finance and tender the required down payment and pay all pre-paids based on the selling price - not the selling price less $8,000. Therefore, the $8,000 which they will eventually get (if they meet all other eligibility requirements) won't really be a $8,000 incentive - just a rebate.
I fail to see how this will incentivize anyone to purchase who isn't so inclined to buy anyway. The $8,000 is nice, but it's not a carrot on a stick.
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Steve...
I agree that it does not empower them to buy ... but it could get a lot of the fence-sitters to move!
Hi Steve
I would like to see the new program work; but there isn't anything in the bill to get a buyer excited to buyer.
Good luck and success
Lou Ludwig
Richard,
Maybe if they think that this really is more than it looks like, but I think too many salespeople have been holding out hope for a brass ring that isn't there. :)
Steve
Lou,
Thanks. I agree that there doesn't seem to be any real incentive. :)
Steve
This is a slam dunk for the qualified buyer sitting on the fence. Now the credit was not meant for them but it will be the reality
Good post
Tony
Steve - I think we are hearing a lot of ideas that say, "We'll help you buy a house" and "We'll help you keep a house." Unfortunately, when you get right down to it, it's a redistribution of wealth! And there is so much in the bailouts and "stimulus" packages, which rewards bad behavior.
Tony,
I agree that they will be the beneficiary (if they qualify) but the "stimulus" is not the motivator. The $7,500 hasn't been and I don't think an extra $500 will make a difference.:)
Steve
Myrl,
EXCELLENT! Totally agree with what you are saying, and this is the central issue. :)
Steve
Steve.. I don't feel this is any incentive, but just another means of just trying to put out a wild fire with a bucket of water. Great idea.. just not thought out completely.
Valerie,
I think you have something there will the urge to help, and I agree this misses the mark. :)
Steve
Steve: Business has picked up - but I can't name a single buyer who said "I am purchasing because of the tax credit." It is like agent bonuses - found money.
Hi Steve:
I'm with Ryan here...not one of my recent buyers is purchasing because of the added incentive.
By the way, your Popeye comment brought back a lot of memories....
Steve: I don't get these tax credits at all. It's too confusing. So it can't be all that beneficial. Sounds good to say though.
The tax credit sounds great in the media, but I have yet to find someone that was motivated to buy because of it. The public has been programmed to focus on rate. For now, that continues to be the number one motivator. Unfortunately many still seem to be waiting for 4.0% with no points.
Hi Steve~ It seems more like to me that they are Robbing Peter to pay Paul.............it just doesn't make a lot of sense to me!
Ryan,
I've determined that the so-called incentive is actually just a rebate. Thanks for sharing your experiences. :)
Steve
Toula,
Thanks for your confirmation. This is what I'm seeing as well. I hope those were good memories. :)
Steve
Chris Ann,
That may be part of it - promote some good sounding provision that really doesn't do that much and people will think they're getting something special. :)
Steve
Karl,
People still have theire reasons for buying or waiting - which means that this incentive really isn't doing what it's being promoted as doing. :)
Steve
Vickie,
Only a few people are ever going to be able to participate in this. :)
Steve
Hi Steve - I agree with Myrl - just a redistribution of wealth. If our government has not done enough to interfere with the housing market, - they want to do more! The general public thinks that the gov can fix real estate, too. Hopefully, they won't make our business too much worse!
Bruce and Mary,
I agree. People have come to look to the government for almost everything - and the government loves this because it keeps them in business. :)
Steve