What Will be the Demographic of the Post-Tax-Credit Era Home Buyer?

What Will be the Demographic of the Post-Tax-Credit Era Home Buyer?

Thinking About the Future...

While Realtors, Mortgage Brokers, Home Inspectors and Appraisers may have different views on the politics of Government (i.e., tax-payer) tax credits (i.e., subsidies) for home purchases, most of us can agree on one thing: a lot of us have benefited and will continue to benefit from tax credits for home purchases. In the next 5.5 months, until the end of April, many offers will be made and accepted, many homes will be inspected, and many of us will pad our pockets—many will spend as the money comes in...

Then what?

For years I have seen how short sidedness on the part of real estate professionals (of all types) can lead to their own foreclosure and bankruptcy. Many of the most successful Realtors and Mortgage Brokers that we worked with in 2003-2006 no longer own a house, and couldn’t qualify for one if they wanted it. I know: I have inspected their former homes for new buyers. Most of us struggle when we are handed a wad of cash—we want to spend it immediately, and we don’t think about tomorrow.

But we need to.

In that frame of mind, then… thinking about tomorrow… what will be the demographic of a Home Buyer in July 2010? September 2010? What will be the Post-Tax-Credit Demographic of a Home Buyer? Who will be our client? What do they look like? Who is that person? Have you asked yourself these questions?

Let’s think about this for a minute…

The new tax-credit for first time buyers will be $8,000, but the amount that the individuals or couples can make has increased. The new tax-credit is also now extended to people who have lived in their present home for 5 years. They will get $6,500.

If that is the case, that pretty much covers the vast majority of home buyers. And if that is true, who is going to wait until after April 30, 2010. And if our answer is “few”, then you need to feel the pressure of the question again: what is the demographic of the home buyer in the post-tax-credit era?

If you fail to appreciate the importance of this question and you simply focus on the moment without preparing for “tomorrow”, you may wake up one day and be looking for a second job…

Your thoughts?