Cheaper Prices—More Than Tax Credit—Motivating Home Buyers

home buying

When is someone going to check the broker-investor, real estate investors actions on the real estate market? My questions are a few, one, why does a person or couple visit as many as fifteen to twenty homes before they can buy a house? The other is how the real estate agent has people bid on a home as it is an auction increasing the cost of the home to buy.

Depending on who owns the mortgage. The person or couple must apply to each bank of mortgage company for loan approval and qualify for the house loan. That is applying to each company with the personal information on hand for each company. The amount of information out in the open for many to see. I have seen sold signs on homes and later found out that the houses are for 'RENT'. What is the reason for this cause?

of @ Jan 20, 2010 11:34:57 AM

The $20 BILLION in COSTS

I find it interesting that the same people who approved the $700 Billion Bank and Auto Bail outs seem VERY concerned about the paltry $20 Billion going back to the people who actually pay the taxes in the first place.

Nick Mason of MO @ Dec 23, 2009 20:16:29 PM

Ines in Miami

Cash for clunkers should have excluded foreign cars..... the most purchased car with the cash for clunkers money? TOYOTA what is wrong with this picture. This is the thing, the government is giving out money to fuel OUR economy yet the money is being used elsewhere.....

As for the 8K first time buyer money, this is another not thought our plan..... customers that need the money to buy, can't get the money until after they buy. What's wrong with this picture? yet the Higher end homes, have no assistance, 8K won't even cover the escrows, yet these homes are stale on the market and not being moved. You need income and assets to own a home, why can't the higher end homes get some sort of incentive too?

ines menendez of FL @ Dec 23, 2009 11:47:37 AM

Not Until Americans Wake Up!

The only thing that will fix this country is buying U.S. made goods and creating jobs here at home. I noticed that Korea and Japan also had a cash for clunkers program similar to the one we had here but they excluded American made vehicles from their program. Nothing new there. They have practiced one way trade policies for years. When we will wake up in this country. Americans can't seem to connect the dots. So sad.

Gary of MI @ Nov 22, 2009 20:16:20 PM

Bad Idea

Just as Cash For Clunkers created some media attention, and looked like a rousing success, only to have reality set it, so will it be with this bad idea. It is simply wrong for the government to take tax dollars to try to stimulate a market which has been over-stimulated for years already. It will get some unknowing buyers to jump, especially with real estate agents talking about the market having hit bottom, and lenders stating that rates are more attractive than ever. Those buyers will be foolish, in my opinion, as prices will continue to drop. The best thing the government can do is to let the market find it's own level, as it will anyway. It will just take longer with these kind of false incentives.

Ken Egan of OR @ Nov 20, 2009 16:18:37 PM

$8K Waste

Perhaps in Des Moines an $8K incentive will move people off the sidelines. Here in Los Angeles $8K wouldn't even cover closing costs on a home in a good neighborhood. It's a complete non-factor. I want to buy a home, but I realize that if a $500K home nudges down in value just 2% ($10K) that's already more than this little $8K tax credit.

The problem isn't that the credit isn't large enough...it's that it's unnecessary. If it were larger I would run further away from buying a home for fear of what would happen to my home value once they eliminate the subsidy.

JayC of CA @ Nov 19, 2009 13:20:26 PM

House price = 3x Income

The correct model for housing is the medium house price = 3 x medium income, locally. But in many cities the price is more than 10 times the income. Even for a combined two-income family, the house price still needs to be within 4 times the after tax incomes. The way overvalued housing prices in the once hot areas need to be and will fall further until they are affordable to the local medium incomes. Tax incentive of $8,000 can not offset the $100,000 over value. Only idiots would buy houses more than 4 times their incomes, as lured by the tiny tax credit.

JCInter of CA @ Nov 19, 2009 12:20:51 PM