Claudette's Blog

Hi Claudette -- I just found about this new program tonight, so it will be interesting how some of these terms get flushed out and the impact it will have.

Thank you Claudette for keeping us all informed!

Barb

Your last statement is the reason why there were so many here in the Rain who were against extending it. Hmmm. I hope that your prediction doesn't prove to be true.

As the world turns, I just hope this is a bridge to good times for us all but why $6,500 and not $3,000?  I dont get it.

I wish they would've waited until the current deal expires. Now the fence-sitters will go back to the buffet!

Personally I feel it is a good thing with the added incentives, it helps boost the whole economy...trickle down effect. The one in place is done... fence sitters really needed to be under contract by November 1rst to meet the deadline of December 1rst.

It is interesting to watch how real estate licensees are lobbying for the waste of money, while they were against other government waste.

Let us all remember that the government does not make money. It spends our money. And every time we think of giveaway, it is a waste. It never moves the economy, it wastes the  money.

I'm looking forward to seeing how this all pans out.

Hi Claudette, I had never made my mind up clearly about this but now that it has been passed , it would seem that all of us will benefit from the increased activity going into the Winter and Spring markets. Most REALTORS are in favor of this extensssion as they consider there own business. My concern was more the effect of continuing these extreme government expenditures and increasing the debt. I do hope this will help the many of buyers and sellers that have been so hurt with the markets and by extension my fellow REALTORS themselves that have also suffered the near collapse of their business.

Thanks for the update. I had heard this was moving forward. Hopefully this will keep people buying homes this winter.

Hummmm, many mixed thoughts and emotions on this continuous government spending.  Is it really benefiting the citizens or making us slaves to the foreign countries backing the printing of US Dollars.  I sure hope it wasn't passed in Congress to help get votes in 2010 instead of pure thoughts to help the housing industry.

I also will look forward to seeing the end result of this -- I may not like it -- but it will be what it will be.  The "cash for clunkers" affair is too new in my mind.  I'm not so sure about that "trickle down affect".

Sue of Robin and Sue

I heard that this was going to the floor... thank's for the update

I do believe this will help us sell more houses but the real solution would be tax cuts to small business who create jobs. Jobs are key to a real recovery.

Probably good news for a lot of people.  Though I had two closes yesterday in which the buyers, had they known, may have pushed back the close date.  Oh well, who knew?   Thanks for the concise update.

Claudette - I'm you're tired of hearing me speak about the tax credit by now.  Here's a few things that bother me:

Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, "This is probably the last extension."

Anyone else catch the word "probably" in there?  Thanks for the uncertainty Senator Isakson.  It was that same "maybe" that kept some people on the sidelines this time and last time.  We keep dangling the hope in front of everyone and since it seems like it will last forever, I fear more people will do the same once again and we'll be talking about the same things come April.

"Move-up" buyers - On the surface this seems like a good plan and I hope it does work the way they want it to.  Here's my fear.  After a long hard year of joblessness and skyrocketing interest rates on credit cards (so they can get their changes in before the new laws regulating them take effect), many otherwise "good" people have credit that is less than stellar.  As "move-up" buyers leave their homes for new ones, we will create new inventory at a different price point (from what I understand buyers don't actually have to move up in price, which was a good thing in my opinion).  What if the "move-up" buyer activity exceeds the first time activity?  Will we just create a new glut of inventory at different price points?

Will "move-up" buyers see the opportunity to list their home and buy a new one immediately, knowing that they will have a $6,500 cushion in case they have to pay two mortgages?  I know I'll be taking a look at my clients' thoughts on that when they list.  I don't want them getting caught in that situation in the event their home doesn't sell.

My guess is that the builders will be all over this and start throwing up houses at an alarming rate, trying to entice the "move-up" buyer into new homes vs. resale.  If the builders run their growth unchecked, all the bought up inventory in the world won't matter.  Hopefully, builders will keep their cool on this one and continue to build at a sensible pace for the current climate.

I have mix feelings about this new plan. . it will help us as Realtors but my common sense is screaming that as a nation we can't afford it . .and that alone will determine the value of these houses  being purchased years from now

Hey does anyone know if a second time buyer is required to sell their original house to get the new $6,500 tax credit ???? Mine want to keep it as a rental property .

I think this is a really bad idea.  We cannot afford to keep spending money we don't have just to try to prop up the economy.  Sure, realtors will benefit in the short-term from the increased business.  But I'm thinking long-term here.  Our country is headed for a collapse at this rate of spending.

Claudette  - The tax credit is starting to make me wonder how much is this program is going to cost every tax payer in the United States.

Hypocrisy. REALTORS® are supposed to defend the land and not try and steal from others in order to have more job security.

Chris:

Yes, I think we will all need more clarity on the exact terms of this.

Barb:

Your welcome.

William:

I am not sure it is a prediction as much as a possibility that perhaps this could become like the mortgage credit deduction. It would be costly, but some may think it's necessary to keep housing sales stimulated.

Larry:

We are all hopeful. I don't remember reading anything about a $3,000 figure.

Mark:

It will be interesting to see how the $6500 program pans out.

Jon:

That is an opinion shared by many but I think they were too afraid to let this incentive expire at this point since the housing market it still in trouble.

Brian:

I think we are all hopeful that it will help.

William:

From what I have read, there was a big concern about the winter market since it is always a slow time.

Roland:

I think that was part of the intention, to keep things moving during the customarily slow season.

Sue:

Many of us have mixed emotions on this. At this point, we can only hope that it will help to continue to stimulate sales. They are convinced that it has been effective so far.

In a short term this will help us, the Realtors a bit but the real answer should have been Jobs not more charity.  This money should have been used to help small businesses. They are the ones who create the jobs!!!

In a short term this will help us, the Realtors a bit but the real answer should have been Jobs not more charity.  This money should have been used to help small businesses. They are the ones who create the jobs!!!

This is great news for the our industry and the entire country, there are still massive concerns but this will help get us through the winter months.

Andrew:

Your welcome.

Mike:

With a 10% unemployment figure, the government has to realize that job creation is key right now.  I think it is the biggest problem we are facing.

Ray:

You must be referring to some move-up buyers who would have benefited from the $6,500. It's not easy to time this with all of the changes happening.

Matt:

What else can a politician say but "probably." He was actually hoping to pass his program that raised the amount to $15,000 but that did not happen and he has been pushing for that all year.  I am sure he does not want to have egg on his face when there is a further extension by having said that it "definitely" will not happen because you can't be sure at this point what will transpire next April.

It is an interesting possibility about move-up buyers using the $6500 as a cushion to pay an overlapping mortgage to get from one home to another.  That could actually be helpful if played correctly.

That is a good question about builders. I hope they are not that foolish, This is really only a window of a few months. It's not enough to absorb a huge jump in new housing inventory.

Hi Claudette:

Congrats on the feature...

I guess we are all excited about the tax credit.

I wrote a post also, outlining the differences.   Here is my post

Fernando:

I think we are all keeping our fingers crossed on this. How, indeed, are all of these programs eventually paid for?

Michael:

I don't know the answer to that. Maybe someone else here does.

Kim & Robert: I think your fears are shared by many. We just have to hope that this does more good than harm to the economy.

Richard:

The concern about job creation right now is very real. I agree that this needs to be a priority.

Brian:

I think that was part of the thinking, to provide some stimulation to the housing market through the tough winter months.

Feature? I didn't know that!  Toula, you always seem to be the bearer of this good news to me. Thanks so much.

Yes, I read your post last night. It is excellent.  For anyone wanting the details of this program broken down - go to Toula's post in the above link that she has provided!

Thanks again for the news.

Claudette, great post.  I was going to blog about this today, but you've beat me to it, so I'll re-blog your post if you have no objection, thanks.

Gabe:

No objection at all. Thanks so much.

I am not a fan of Obama, but the tax credit has been a blessing in my business and for so many people.  Thanks

Claudette, as you say, NAR has been lobbying hard for such an extension.  Hopefully it will lead to more confidence in the housing market.

you wrote below..so i have equity in my home  and i bought it less than 5 yrs ago and  want to sell to move...it dont get the $6,500...beacuse i did not live in the hoose for 5 years   that is not fair

Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home.  To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30.

Thanks for keeping us updated. 

President Obama still has to sign the bill as of today November 6,2009 but he is expected to do so.

Claudette - I think the only improvement is the 60 day closing period after April 30th. It would have made much more sense to have included that initially and not extended the credit. This would have enabled the lenders to actually get to a closing and not effectively have cut off buying in October. I don't think the $6500 will have much impact on existing home owners in the market.

I hope it helps...there are so many homes just waiting to be bought!

Dana Devine poses a good question.....If I have owned my current home for 4.5 years but have owned a home since 1997 are they counting it as owning a home for 5 years or owning the same home for 5 years.  Just hope I am not out because I last moved in July 2005.

Like everyone else, just trying to get a good handle on this to advise my clients.

Congrats on getting featured!

Thank you Claudette,

It's good to know that they are extending it.

Hopefully that will contribuite to revive the economy.

Tommy

I got this update in my email this morning. It will be interesting to see how it all pans out.

Claudette, thanks for the information, I guess only time will show how this will effect the market.

Question - does it seem fair that there is a group in the middle that cannot get a tex credit?  Think about it, you eihter cannot have owned a home for 3 years or you have to have owned one for 5 of the last eight years.  Suppose you where a new home buyer in 4 years ago, you don't qualify for this credit - WHY?  There are other scenarios as well.

I too have mixed emotions about this.  Where does all this gov't spending end?  And next we spend trllions on healthcare.  All well intended but where does the money come from?

I am a bit surprised by many of the negative comments regarding the extension of this program. Our job as Realtors is to facilitate the buying/selling of real estate and based on the current economics the tax credit can only help us do that. It is not our job to run the government or philosophize about what is good or bad. If we are not happy with what our government representatives do, then vote them out. I personally believe that right or wrong this tax credit will have more positive effect on the economy than any other facet of the "stimulus program" Comparing this to the "Cash for Clunkers" program is ludicrous, but now I am falling into the same trap of ranting on about my opinion and not focusing on my business. I will use this tax credit like any other tool to facilitate the buying/selling of real estate and when the opportunity comes, I WILL VOTE!

For us real estate investors with rental property this is killing us. Extending the buyer credit will only extends the slump in renters. Rental inventories will only go up and rental rates will continue to go down. You help one group only to hurt another. It's ridiculous.

Karen McDaniel (Property Management Profile LLC)

Mark said "Personally I feel it is a good thing with the added incentives, it helps boost the whole economy...trickle down effect."

Trickle down from where? Wouldnt this be trickle up or trickle over at best? How is taking our money and giving it to home buyers who cant qualify otherwise so they can buy and pay us with our own money doing anything positive? Just a thought.

I hope it accomplishes what it is intended to do.  It is a big burden for future generations, but the help is needed now as well.  Hopefully, it will stimulate buyers to purchase and keep some Realtors out of the "jobless" ranks, or from having to take jobs that others might fill.  Additionally, it may help move the glut of inventory that is out there, and help keep builders and suppliers in business.

I do think it could have been tightened up a bit, as IMO, someone buying an $800,000 house does not need the $6,500/$8,000, and if they do require that money, they do not need to be buying an $800,000 house, especially with the income limitations.   It will be interesting to watch how it works out over the next few months.

Michael - The stipulation is that the new purchase be your primary residence. I don't believe you have to sell your current home to qualify, it just can't remain your primary residence. They don't want this being used to buy an investment home.

Karen - One of the primary causes for the creation of this country was the right to own land, and as a result policies are going to reflect that. Investors are investing with different strategies, and it is still a great time to be "investing" in real estate, but I don't think they need any assistance.

I look at this expansion as a new tool in my tool box. Rather than worry about what it means for the economy at the moment, I am going to run with it. No point in complaining about it, it has passed, it will be signed, and I plan to utilize it to its fullest.

I am not sure how I feel about the stimulus but decide to just look at the bright side for the home buyers that might need it and the help it might give to the market.

Hi Claudette. This is a very nice and concise article, and thank you for getting your facts straight!  We have been sharing with Realtors for weeks now that this credit was not yet official, and I think we are all pleased to see this credit extended.  Very well written blog!

Feature post!  Nice work Claudette.  We still have to get together.  I haven't forgotten about you!

This band-aid may be good for business in the short term, but it is still just that...a band-aid.  The housing market really needs to be given the opportunity to return to its natural free market state where the forces of supply and demand dicate prices, not any type of government influence.  In the meantime, thanks for the update Claudette!

one thing i am curious about. everyone keeps saying concentrate on small business and creating jobs. as realtors are we not small business? and doesnt a home purchase create jobs? for realtors, lenders, inspectors, appraisors, contractors, plumbers, electricians, landscapers, masons, furniture sales, insurance sales, etc.? and with each one of those that makes an income then spends money in other areas that helps create jobs as well. i am not saying this is the saviour of our economy, but it is a start. i think the citizens can do alot better than the banks with "bailout monies", and would rather we get it than the banks. imho

Claudette, nice job laying this out very simply.

In response to Jon Zolsky, I don't think this has anything to do with gov't give aways. Am I not understanding what tax credit means? If I'm wrong, explain it to me but this is what (I think) tax credits mean:

a tax credit is a recognition of partial payment already made towards taxes due.

This means that the gov't is getting less tax money. Which means they have less money to give away. In essence the gov't is saying spend your money on a house rather than on taxes. This should support your beliefs. No?

Love the litany of comments.  Personally, I am all for anything that creates a positive spin on the real estate market.  I am at a point  where I am grateful for the buyers that walk thru the door.

I just hope we can have some positive results.

As an investor and non-agent who often sells on Contract for Deed (Land Contract), you should know that sales with seller-financing are eligible too. I've already had several buyers get their checks, usually I capture some in a short-term balloon to supplement a low down payment. I know most Realtors focus only on cash buyers, but getting the sale done on contract terms might help move some of that inventory, and might give someone with bruised (but improving!) credit a chance to own a home.

I was thinking about blogging on this same subject and then in checking my e-mail found your very well written blog.  I have mixed feelings about this credit, but now that it has passed, hope it brings in some more business through the winter.

I can't tell you how many lawyers, tax accountants and realtors have pushed the media hype about this extension.  As far back as two weeks ago, I was receiving e-mails saying that the new legislation is in place.  Well, it's 10:30 am on Friday and Obama has not signed anything - - so it's not done yet!

Will this help the economy?  Not really.  It may soak up a few more short sale and foreclosure properties, but until the lenders do something about cash offers coming in above appraisal, only the investors are making deals right now.  And instead of blocking a homebuyer from obtaining FHA financing for 3 months when a property is flipped, why not penalize the investor, not the homebuyer?

Sorry, but housing is not our main problem.  It's jobs!  Why not give the tax breaks to employers who hire additional employees.  Make common sense to me.  David

Claudette - I believe there is so much more going on with Micro/Macro Economics that the average folks, which includes most real estate agents, simply don't understand. I certainly do not have the answers. Will the extension solve the "recession" ... it will help ...  however we will all be paying for the recovery for a very long time.

Claudette - great post! I reblogged it to share with my readers also. I had several buyers who were scrambling to buy by the end of the month, now they have more time. -M

Wow.... DAVID I think has hit on the nail ,,, I cannot believe all the hyp on NAR and realtors to keep this going free money to drag us down more complain about govt. intervention on Real estate transaction, but ready and willing and eagerly to take the money.... if we are going to ever go back to doing real transactions and not short sales or
REO's we need jobs for the economy to recover.  Look how good cash for clunkers was nothing but a flash in the pan.

Claudette,

Thanks for the great blog stocked full of information on the new tax credit for home buyers.  I too have a few that just needed a bit more time....I have one very special client in mind :)

I my market (SF Bay area, Silicon Valley) an $8k or a paltry $6.5k tax credit is useless, when the average home price is around $650k. This small amount barely pays for some of the closing costs, but it's better than nothing.

One of the "secrets" we have in California is the CAR (California Assn. of Realtors) which has a Mortgage Protection Insurance Program for 1st time homebuyers paid by CAR:

"A FREE program that provides your qualified first-time buyer up to $1,500 a month for up to six months in the event of job loss to help pay the mortgage; a $750 monthly benefit also is available for a qualified co-buyer. There is NO cost to you! To qualify, buyers must be first time homebuyers - haven't owned a home for the last three years; has opened escrow on or after April 2, 2009 and closed escrow before December 31, 2009; use an active California REALTOR® ; purchase the property in California, and be a W-2 employee (cannot be self-employed)."

This program, in conjunction with the $8k tax credit has convinced many fence sitters to buy now.

Thanks for the information, good post, very informative and to the point.

Either way, I'll take it.  Thanks for the great post.

I never doubted it for a momment! Thanks for sharing Claudette. I will repost this blog.

Have a wonderful day!

I have mixed feelings about it too since it is a government subsidy. In Arizona, where we have a lot of short sales and foreclosures, it is good for buyers who submitted offers months ago and thought they'd hear an answer in time to close by November 30th but won't. However, when you submit an offer on a short sale, that is the chance you take and they know that from the get to. But like someone else said here, I'll take it. It will also be interesting to see if the new credit will help move other buyers off the fence. I hadn't thought of it becoming a permanent government subsidy but I suppose it is a possiblility

Ok now that we have that passed, can we do something about getting banks to speed up their short sale process?

Oh wait, I heard on the news this morning those bankers are getting a 40% BONUS.  Then, never mind.  I'm sure they are busy.

But seriously, I am glad the bill included a tax credit for existing homeowners.  It might not be much, but it will make a difference for MANY purchasers.

I'm glad to see at least some opposition to the extension - Expansion of the program. There are much deeper concerns with the mortgage industry, but we keep going merrily along. I posted concerns last night that we don't consider normally, Where's the money coming from? What about the deficit? What about inflation? What about devaluation of the dollar? Can't you just see our future ads? Great Starter Home, 2 bdr, 1bath, Nice Neighborhood, Priced to sell at $500,000!

Claudette:

Thanks for the info.  This type of sharing is exactly what make Active Rain wonderful!  All the best to you

Great News, thanks

Larry says:why $6,500 and not $3,000?

Larry why not $8,000 instead of $6500? A house sale is a house sale why does anyone get LESS we are all taxpayers? We aren't first time taxpayers.
Why give anything at all? Do you really think $8000 is the difference?

Read my blog: BUY NOW before Prices Go DOWN at http://torringtonblog.com

"But, is this really true?  When April 2011 comes around and the housing market is still not in full recovery mode, will the politicians be able to let this go and actually come to an end, or could it possibly become a more permanent subsidy?"

Something tells me that we'll see this all over again... and what happens when it does finally end?

And I still don't understand how people can think borrowing money is good for the economy in the long run. Other countries are ending their recessions... we are just burying ourselves even deeper and extending ours.

BTW... unemployment just hit over 10%...

We have to get to a point where we quit spending taxpayer dollars for stuff like this. Someone is going to pay for this and it isn't the unemployed!

Hopefully it get's passed by the HOUSE today!!!!!

-Phil Graves-

utahbuyeragent.com

I wouldn't be surprised if they extended this all the way through next year.

It is great news for those who really need it and could not manage to get in escrow yet.

These are certainly steps in the right direction on the road to recovery. The tools are there...now we must use them!

Claudette, your question about this tax credit will be a permanent thing is a very good one. Seems we have come to rely on the government to fix everyting. Just hope they have good enough mechanics.

Boulder City Steve

Claudette, your question about this tax credit will be a permanent thing is a very good one. Seems we have come to rely on the government to fix everyting. Just hope they have good enough mechanics.

Boulder City Steve

Great post worthy of a re-blog. Thanks for sharing the info. I also have mixed emotions about this one.

Thanks Claudette for the updates upon signing will be reaching out to some clients that could use this news.  Great for us, just talking about Real Estate as a positive in the news is good however I feel for our children and grandkids.

If someone rents out their home, then buys a new home, do they get the tax credit?

Interesting discussion.

It seems to me that "Obama and friends" can't quite grasp the idea that spending is not the answer... jobs are the answer. They seem to think that since they can just spend and spend and spend with no thought about where the money will come from, the American citizens can do the same.

I've not been happy about any of this stimulus and don't believe it has helped - after all, unemployment has now reached 10.2%, according to reports this morning.

Instead of throwing money at banks and others (who then proceeded to lay off thousands of employees), and adding jobs in government that the tax payers have to support, they should have been thinking about incentives for private sector businesses who create new jobs.

Maybe they should also have been thinking about incentives for companies to bring some of those jobs back home that are now being done in other countries because the wages are cheaper.

I for one would rather pay $20 for one t-shirt made in America than $20 for 5 t-shirts imported from China.

I know, it has helped some Realtors close some extra sales - but as many have pointed out - is that good for the economy as a whole? Seems like everyone is in favor of something that directly benefits them, but against things that don't.

Gee, maybe I'd jump on the bandwagon and be in favor of a giveaway if it handed money to business people to use in paying for copywriting services!

If everyone would consider the long term consequences before acting, maybe things would begin to make sense, but that sure doesn't seem to be happening.

I'm also very curious about why they excluded people who own homes, but have owned them for less than 5 years. Maybe they think those folks just don't need to move. Maybe they think... maybe they don't think.

Claudette ... Thanks for this post about yesterday's passage by US house of the more robust homebuyer tax credit law.  Most REALTORS should have thought this through and supported it with positive exectation for our US economy and real estate improvement. 

Thanks for the clearly defined breakdown of this credit. Once President Obama has signed the bill, I'll get the word out to my sphere. Raising the income limit will be a huge benefit to people in my high-cost, high-salary area. Think I'll read Toula's post next.

I agree with Philip Toney; residential purchases will create/substantiate jobs and the tax credit is a good stimulus to get it going.   However, I also think the homeowner should be entitled to the same amount as a home buyer since we all pay taxes so we should all get an even break IMHO.

The extended first time homebuyer tax credit (and the expanded credit too) is great news indeed!  I anxiously await Mr. Obama's signature.

Thank you, everyone, for your terrific comments.

I have had a couple of calls asking me if I know when, exactly, this will go into effect. Particularly for some people who have move-up buyers interested in the $6,500 credit.  From what I have been able to find out, it should be going into effect on December 1 but I do not have any confirmation of this.

If anyone has additional information on when it will become effective, please write in.

Thanks so much.

Hopefully this will mean a great first half of the year push for every one!  Thank you for your post-it generated many great added discussion points.

It is December 1. See announcement from NAR --> http://www.realtor.org/wps/wcm/connect/98a99c804033919580def5205f470b6e/CM_Presidents+Podcast_110509+FINAL.pdf?MOD=AJPERES&CACHEID=98a99c804033919580def5205f470b6e

Thanks, Thomas.

I have also just found this piece from NAR.  It states that the bill will go into effect as soon as the President signs it. 

Here is the link:

Link from NAR on the Tax Credit

Sounds good....thanks for getting it out to us.

patricia/Seacoast NH

Well this could be good but it will backfire too.  Now , my low price point buyers will have a worse time trying to buy because the feeding frenzy is not going to stop.  As it is, things in the LA area below $225,000 are getting harder to find and the ones that exist get outbid anyway.

By the way...can we also pass a law that a seller cannot specify what loan they will not take?  There is very little difference between FHA and Conventional as far as a seller is concerned....if it has VIOLATIONS IT HAS VIOLATIONS!

I have a few thoughts on this before we all start popping the corks in the champagne bottles.....

I would encourage buyers who were fence sitting to buy now. Especially in Minnesota...less competition for house now as opposed to spring.

Hopefully this is a positive move for our business. I have been excited to see so many first time homebuyers take advantage of this program so far.

It's a curious thing that they left out homeowners who have owned less than 5 years.....

This will be very good news for some of my buyers who didn't make the Nov. 30th deadline.

Official word is that President Obama has signed it.  It is finally a done deal.

Thanks Claudette!

Claudette, thank you for news, but it's not good news.  Does any person have any concern about the cost of selling only 350,000 more homes than without the tax credit.  It costs us, the taxpayer, $64,000 for every $8,000 tax credit used.  Please do the math, we simply can't afford it.  Government doesn't worry about how they will pay for it, they can raise taxes or print money.  Why is it if we print money it's called counterfeitting and when the government does, it's OK?

Furthermore Fannie Mae just posted a $18.8Billion dollar loss in the 3rd quarter and now has close to $200 Billion dollars in non performing assets.  Just another government debacle.  Oh did you know the Federal Housing Finance Authority has cleared Fannie Mae to sell $2.6 Billion in low income housing credits to "undisclosed" third party investors believed to include Goldman Sachs & Berkshire Hathaway - but at what cost to the taxpayer?

Sorry I think we need to get some control of the industry, with government in charge it's being destroyed.  NO more giveaway programs, we simply can't afford them.  I don't care what the perception seems to be, it's a short term reprieve from total economic disaster.

I choose to be shortsighted and excited of the excellent opportunity this provides to the home buyers, first time or not! And this could keep us agents busy through the winter.

I have mixed feelings about this. Originally I thought the credit and the extension would be GOOD but now I have changed my mind.

The tax credit will be good.  I haven't changed my mind.  Lately.

But it will be hard to sort out.  For example:

I have both ends of a certain sale.  The buyer was clearly motivated by the credit.  We were going to close by Nov 30 so he could get the $8000. 

Then we heard the new $6500 credit was imminent.  We moved the date into early December. Score dollars for both buyer and seller when the seller closes on their purchase in December.

Now we know we didn't have to do that.  The $6500 credit took effect the minute Obama signed it today.

So my seller/buyer is under contract on their new home - closing in December. 

Today, the sellers of that house want into the act.   They bought their personal residence on January 24, 2005.

Guess when they now want to close my seller's purchase of their home.

Claudette,

This is bittersweet for Realtors.  It helps generate business and helps us to assist buyers and sellers.  But there is also a price to pay and we must consider when the bill comes in.  I think it has the potential to be a good deal for all.  Thanks for the information

Claudette,

Is the government extending this credit because they can't think of any other way to stimulate the economy?  Now, they've added buyer's who have owned for at least the last five years, of course with certain conditions.  Have we already forgotten the "Cash for Clunkers" auto stimulus plan.  How is that industry doing?

Yeah, I guess we'll wait and see.

This is good news for the real estate industry, atleast for the next 6 months!

I saw the writing on the wall, but it sure is gonna cost us in the future!

This was certainly welcoming news. Hopefully the additional $6500 incentive will encourage some other folks who may have been on the fence think about jumping in and buying.

I can tell you that in this market (locally - Miami) it has definitely had an impact.

Larry (#5)-- you wrote

"As the world turns, I just hope this is a bridge to good times for us all but why $6,500 and not $3,000? I dont get it."

Can you make a case for us for why the figure should be $3000 vs $6500-- or vs $8000 like the first-time buyers?

I gather the goal of the legislation is to stimulate the sale of the current glut of repo homes, not to provide a windfall for the buyers-- so how do you arrive at a figure to do that?

I was extremely happy to see the extension and the new benefits.

I got a kick out of Jon's comment (#8): "Let us all remember that the government does not make money." Governments do, indeed, make money. All governments have the privilege of printing money for their citizens, including our Government.

hi, it's a good thing that the extension passed. i have a customer that had it not passed the customer wouldn't have been able to close on time and therefore we would have lost a sale. With all the short sales out there it takes a long time for the banks to come back with an answer so the extension does help. Buyers that are on the fence, well, that's why we're salespeople. we should be able to bring them to our side of the fence.

I think it's great that the extension was passed.  As a first time homebuyer myself the tax credit was a big factor in the decision to buy back in May.  Glad others will get to benefit from this as well. 

So if NAR's numbers are correct, then the buyers of 1,050,000 houses received around $504,000,000 of our money for something they were going to buy anyway.  We're going to pay interest on this money for a long, long time, and who knows if we'll EVER pay back the principal.

Even though it may be good for my pocketbook in the short run, this program is bad for Americans in the long run.  I hope that it dies of unnatural causes.

Let them eat cake as Rome burns! (yes I know it's mixed sayings, but you gotta know I've got a sense of humor, too!)

This is great news Claudette. It will keep the good times rolling.

I hope I take more advantage by marketing towards this powerful tool.

I hope the provision that allows existing home owners to share in the largesse of the Federal Gov. (we taxpayers) helping them to sell their homes will be of benefit to the real estate industry. Many homeowners have been reluctant to sell and have elected to stay on the sidelines due to the hit that their home values have taken. Now that they will be in line for a $6,500 incentive to buy, maybe they will sell the exiting home and move up to the new home that they would rather have.

John Juarez, REALTOR

Windermere Properties of the East Bay

John@CarlMedford.com

510-6673-0686