JL's Columbia SC Real Estate Blog: Will Tax Credit Rumors Put Buyers Back on the Fence

Will Tax Credit Rumors Put Buyers Back on the Fence

Columbia, SC Real Estate Lately there have been a lot of rumors floating around about what will come of the tax credit for first time home buyers. Will it be extended? Will it be expanded to include all those that buy a home and not just first time home buyers? The truth is that at this point none of us know for sure.

 But what is the possible backlash of all the rumors that the $8,000 first time home buyer tax credit will be extended or expanded? Isn't it possible that some buyers who would have bought a home will now sit back down on the fence to wait and see what will happen? For now all we know is that the credit is here now and it will expire December 1st.

 But with members of Congress now introducing bills to extend and expand the credit, there are many people who wonder if they hold out longer will they get a better deal.

 Columbia, SC Real Estate 

 In the beginning the issue with buyers sitting on the fence was mainly centered around price. Prices were declining and buyers were waiting for the "bottom" of the market in an effort to get the best deal possible. Now could we be setting ourselves up for another reason to sit back on that fence and see what else the Government will throw their way?

 At some point this will all have to come to an end and there will be no more tax credits. As for now no new tax credits have been passed and the current first time home buyer credit will come to a close the first December of this year.

 

Columbia, SC Real Estate

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JL Boney, III - Columbia, SC Realtor - Coldwell Banker Residential Real Estate

 I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.

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Comment balloon 22 commentsJL Boney, III • June 25 2009 03:45PM

Comments

JL, I think if they haven't gotten off the fence with the original tax credit bill my guess is they aren't likely to with an extension. It could be they just don't qualify in the past, now or in the future, therefore they do nothing.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 9 years ago

Gary- I don't know that an extension will interest people any more than the credit already has either.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

The thought of anything positive coming in the future causes people to sit on the fence.  It is human nature.  I just keep going and at some point reality kicks in and people jump.  Last month a sphere of mine was refinancing his home and would not lock in at 4.5% as he saw a report that rates would go down further.  Yep, he did not get his 4.5%.......

Posted by TIM MONCRIEF, Over 2,000 homes sold….. (Keller Williams Realty) over 9 years ago

Tim- It is indeed human nature my friend, that is not likely to change. Sorry to hear your friend didn't get his rate.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

There are two types of buyers I have come across concerning the tax credit. The engaged and the unengaged. Those who wait , will most probably wait until interest rates go th 7% and no tax credit will be available. They will be the first to cry foul because it was unfair they didn't get the deal the engaged got when the homes were ripe for the pickin.

Posted by Claude Cross, Charlotte NC Homes For Sale (Homes By Cross, Inc. ) over 9 years ago

My opinion is that a tax credit is small in comparison to declining home values.  The fence sitters will drop off the fence and drop their pants in the process when the market stabilizes and buyers feel that they will not LOSE money. 

Posted by Thom Kraley (NewCastle Home Loans, LLC) over 9 years ago

yes it will....but not all buyers. It's an individual decision and is made for many reasons.

Posted by Karen Fiddler, Broker/Owner, Orange County & Lake Arrowhead, CA (949)510-2395 (Karen Parsons-Fiddler, Broker 949-510-2395) over 9 years ago

Everybody is trying to get elected is the way I see the extensions!

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) over 9 years ago

I think there are various factors that play a part in why buyers are on the fence...rates, credits, fear of commitment, the weather isn't right, etc.  There's no telling which way they will go.  If they are really ready, they will buy...

Chanda panda

Posted by Chanda Barrick, in referral (Keller Williams Indy Metro Northeast) over 9 years ago

Claude- I can agree with that assessment. There will be many people angry about the deals they let slip away.

Thom- We will see, thanks for stopping in.

Karen- In the end it does just depend on the individual.

Bill- That's one way to look at it.

Chanda- That's the only way it ever works, you just have to wait until they are ready.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

I tell them it's here for sure right now and then ask if they are a good gambler. Many will wait as most folks have a sense that things will improve in their favor in the future.

Posted by Cameron Wilson, The Short Guy - Murrieta,Temecula,Menifee Californ (Labrum Real Estate) over 9 years ago

I think that they need to halt it When congress, says that it ends on12/01/09 then halt it.  Stop the madness.

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) over 9 years ago

My buyers aren't counting on it...nor am I!

Posted by Laura Giannotta, Your Realtor Down the Shore! (Keller Williams Realty - Atlantic Shore ) over 9 years ago

Hi JL-Some people just are wishy washy and won't make a decision either way. Anything the govt gets involved in generally ends up a mess. We just have to do our best one day at a time. <SMILE>

Posted by Sharon Lee, Retired and loving life (Sharon Lee's Virtual Assistance) over 9 years ago

Cameron- I don't like gambling when I have that much free money to lose.

Don- I agree!

Laura- I'm certainly not counting on it, for now it's only a rumor.

Sharon- The Government seems to only make things worse no matter their intentions.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

Good questions and I am sure there will be many sitting on the fence. For some, it is just another excuse not to buy a home yet. Maybe they are not ready to purchase anyway, so leave them on the fence. For others, they think if they decide too quickly that they could miss out on more money (greed). As you said though, they could wait too long and miss out on the $8000 that is in front of them today.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) over 9 years ago

Hi JL - I worry some don't get the big picture.  If interest rates rise, they may still get the $8,000 tax credit, but lose out on the bigger home, and pay more for the borrowed money anyway.... I think some people are just very uncertain now, due to a number of things.

Posted by Mary Douglas, REALTOR, Red Feather Lakes, Colorado (United Country Ponderosa Realty, Red Feather Lakes, Colorado) over 9 years ago

JL --- this is so true --- it is just the nature of folks to want to wait for a better deal --- we need to stop the rumors ---

Mama Liz's Signature

Posted by Liz Loadholt, Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC (Liz Loadholt- AgentOwned Realty- Covering SC) over 9 years ago

Hopefully not JL.  The buyers I've seen lately are very, very nervous though!

Posted by April Hayden-Munson, Brookfield Wisconsin Real Estate over 9 years ago

John- There's only one thing we know for sure at this moment, and that's what's here right now.

Mary- The rates will make a difference, if they go up then the $8,000 won't pay them back for the extra money they pay in a mortgage.

Liz- Human nature dictates that some will always wait to see what they can get a better deal on.

April- I have seen many nervous buyers out there myself.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

Waiting on more tax credit while rates are climbing is so counter productive. Why wait to get more when your loosing more?

Posted by Chip Jefferson (Gibbs Realty and Auction Company) over 9 years ago

Laura- A lot of truth in that question.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

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