Comments on: Homebuyer’s Tax Credit Extension In The Works http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/ My house is where I want to be and it looks like all my dreams Tue, 01 Nov 2011 01:21:36 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Anon E. Moose http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1509 Anon E. Moose Thu, 05 Nov 2009 22:06:24 +0000 http://homeinbabylon.com/?p=681#comment-1509 OT, The following isn't me talking, its Karl Case, of Wellesley College and the Case-Shiller Index (top billing!), as quoted in the NY Times today: http://www.nytimes.com/2009/11/05/garden/05appraisal.html?pagewanted=2&_r=2&ref=garden# "If you are not in a rush to sell and can accept having to lower your price later, then go with the Realtor’s price." "If you want to be realistic, go with the [appraiser's lower] estimate.” To distill, * Your house isn't worth what as much as the used house sales flack says it is; you'll have to drop your asking price to even attract an offer, and * "Realistic" prices in this market are what an appraiser is willing to be held accountable for, not what a used house sales flack (including "buyer's brokers") who has no accountability says. OT,

The following isn’t me talking, its Karl Case, of Wellesley College and the Case-Shiller Index (top billing!), as quoted in the NY Times today:

http://www.nytimes.com/2009/11/05/garden/05appraisal.html?pagewanted=2&_r=2&ref=garden#

“If you are not in a rush to sell and can accept having to lower your price later, then go with the Realtor’s price.” “If you want to be realistic, go with the [appraiser's lower] estimate.”

To distill,

* Your house isn’t worth what as much as the used house sales flack says it is; you’ll have to drop your asking price to even attract an offer, and

* “Realistic” prices in this market are what an appraiser is willing to be held accountable for, not what a used house sales flack (including “buyer’s brokers”) who has no accountability says.

]]> By: Gary http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1504 Gary Thu, 05 Nov 2009 00:10:23 +0000 http://homeinbabylon.com/?p=681#comment-1504 NewBVResident, I assume it's to weed out house profiteers, not that there are many of them left these days. NewBVResident, I assume it’s to weed out house profiteers, not that there are many of them left these days.

]]> By: NEWBVRESIDENT http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1503 NEWBVRESIDENT Thu, 05 Nov 2009 00:07:59 +0000 http://homeinbabylon.com/?p=681#comment-1503 What I do not understand is why the 2nd time home buyer has to have owned their home for more than 5 years. If that was the case, they likely bought before the real estate boom. Even in this economy, they are still likely to make a profit on the sale of their original home. It is the homebuyers who have owned less than 5 years (ME!), who are losing money on the sale of the original home. Kinda sucks! What I do not understand is why the 2nd time home buyer has to have owned their home for more than 5 years. If that was the case, they likely bought before the real estate boom. Even in this economy, they are still likely to make a profit on the sale of their original home. It is the homebuyers who have owned less than 5 years (ME!), who are losing money on the sale of the original home. Kinda sucks!

]]> By: Anon E. Moose http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1501 Anon E. Moose Wed, 04 Nov 2009 19:38:04 +0000 http://homeinbabylon.com/?p=681#comment-1501 Here I think that the HIB world will be flabbergasted at this Kumbaya moment of unreserved agreement between Harriet and I, and along comes Gary to slap us both down! ;-) We can talk monetary policy another time (we're turning Japanese). My objection to the used-house-sales-industry-hangover-remedy (hair-of-the-dog?) tax credit is that it will simply be absorbed into the sales price, and therefore be of no net benefit to the buyer (ME!). Just like the home mortgage interest deduction. It is, therefore, a windfall benefit to sellers - just like the housing bubble itself. It is paid for by the taxpayer (also me). Look at Cash-4-Clunkers. Car dealers loved it, because it goosed their sales volume, and NOBODY negotiated down from sticker price. Who cares if it's overpriced, because buyers were getting $4,500 free money from me (taxpayer). Pitched as money for buyers, the buyers were just the bag men for getting it to the sellers. Not to mention the 4-year old first time home buyers and other assorted frauds. The tax credit is simply more 'extend-and-pretend' for the housing market. Also, the deal keeps getting sweeter. Maybe I just wait until the next round of extensions, the dollar amount might go higher in addition to expanding the income and status eligibiilty. The lack of credibiilty that its going away anytime soon robs it of its desired effect of creating urgency in the buyer. Here I think that the HIB world will be flabbergasted at this Kumbaya moment of unreserved agreement between Harriet and I, and along comes Gary to slap us both down! ;-)

We can talk monetary policy another time (we’re turning Japanese). My objection to the used-house-sales-industry-hangover-remedy (hair-of-the-dog?) tax credit is that it will simply be absorbed into the sales price, and therefore be of no net benefit to the buyer (ME!). Just like the home mortgage interest deduction. It is, therefore, a windfall benefit to sellers – just like the housing bubble itself. It is paid for by the taxpayer (also me).

Look at Cash-4-Clunkers. Car dealers loved it, because it goosed their sales volume, and NOBODY negotiated down from sticker price. Who cares if it’s overpriced, because buyers were getting $4,500 free money from me (taxpayer). Pitched as money for buyers, the buyers were just the bag men for getting it to the sellers.

Not to mention the 4-year old first time home buyers and other assorted frauds. The tax credit is simply more ‘extend-and-pretend’ for the housing market.

Also, the deal keeps getting sweeter. Maybe I just wait until the next round of extensions, the dollar amount might go higher in addition to expanding the income and status eligibiilty. The lack of credibiilty that its going away anytime soon robs it of its desired effect of creating urgency in the buyer.

]]> By: Gary http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1499 Gary Wed, 04 Nov 2009 18:50:38 +0000 http://homeinbabylon.com/?p=681#comment-1499 Moose and Harriet need to brush up on their John Maynard Keynes. http://www.amazon.com/General-Theory-Employment-Interest-Money/dp/8126905913/ Moose and Harriet need to brush up on their John Maynard Keynes.

http://www.amazon.com/General-Theory-Employment-Interest-Money/dp/8126905913/

]]> By: Anon E. Moose http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1497 Anon E. Moose Wed, 04 Nov 2009 18:22:03 +0000 http://homeinbabylon.com/?p=681#comment-1497 Harriet, I agree completely. -Moose Harriet,

I agree completely.

-Moose

]]> By: harriet http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1496 harriet Wed, 04 Nov 2009 18:07:31 +0000 http://homeinbabylon.com/?p=681#comment-1496 That's ridiculous. As if the gvernment doesnt already pour enough money it doesnt have down the rathole....first the banks, then the car companies, and now healthcare and homebuyers. When is anyone going to say enough... That’s ridiculous. As if the gvernment doesnt already pour enough money it doesnt have down the rathole….first the banks, then the car companies, and now healthcare and homebuyers. When is anyone going to say enough…

]]> By: Babylonian http://homeinbabylon.com/2009/11/04/homebuyers-tax-credit-extension-in-the-works/comment-page-1/#comment-1495 Babylonian Wed, 04 Nov 2009 16:36:12 +0000 http://homeinbabylon.com/?p=681#comment-1495 Hip hip hooray for "second-time" home buyers! Hip hip hooray for “second-time” home buyers!

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