Extend the Tax Credit

This is going to be an interesting day. In addition to hosting a 100 guest cocktail party fund raiser for a local grass roots organization, I am trying to wrap up what has been a busy week with new listings trying to get out there before the deadline runs out for the tax credit. The weather is not cooperating.

We have debated the tax credit issue in our office for the last couple of weeks now that everyone seems to have a related story. I was told that our state representative is asking people to forward information on clients that bought using the tax credit where that sale resulted in another. Unfortunately I could only come up with one example. Most of my clients using the tax credit bought distressed properties, some at half their market value. It makes me wonder if there should at least be some provision that would restrict sales of distressed properties that sell below a percentage threshold. My client would have purchased the property at 50% off with or without the tax credit.

I do think that it has been a net positive for my business. I tend to work with first time home buyers. I would love to see it extended, but what is the true cost? It has to be cheaper than the AIG Bailout. At least we are putting the money in the hands of the tax payers and helping build the tax base in our city.