Doesn't a $15,000 tax credit remove a buyer's ability to negotiate a lesser price?

Asked by Roy Hodges, Washington, DC Mon Feb 9, 2009

Hello, after considering the potential legislation to offer a tax credit. A $15,000 tax credit most likely ruins our ability to negotiate a cheaper price and in fact costs more! I'd rather save $15,000 off the price because my mortgage payments would be cheaper than save $15,000 in a tax credit. This is highway robbery for a tax payer. Do you honestly think a realtor is going to offer a cheaper price when he/she knows you are getting a tax credit? Call your senator, call your congressman, stop this theft of our tax dollars!

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9
Joseph Reef, Agent, Arlington, VA
Tue Feb 10, 2009
Roy,

The tax credit has no impact on your negotiating and is between you and the IRS when you complete your taxes. Sellers will not take this into effect when pricing a home and therefore it shouldn't impact you in the least. It will help bring new people into the market as they know they can get some good deals and have a benefit next year when they file.

Regards,
Web Reference:  http://www.JoeReef.com
1 vote
Andy Peers, Agent, Washington DC, DC
Mon Feb 9, 2009
The pending tax bill does not impact negotiating at all. It's a tax related item between you and IRS. I have a side by side comparison (old law as compared to pending legislation) for you to look at. I'll put it on my website tomorrow afternoon or you can send me your email address and I'll forward it to you in the morning. http://www.peersrealty.com

Thank you,
Web Reference:  http://www.peersrealty.com
1 vote
Carol B.C. H…, , Snohomish, WA
Fri Mar 13, 2009
"Do you honestly think a realtor is going to offer a cheaper price when he/she knows you are getting a tax credit?"

I was kinda shocked when I saw your question.

First of all, a Seller is the person who determines the price they will List their home (NOT the Real Estate Agent). We, as Real Estate Agents, provide the Seller with comparables, analysis, and other data and advice about the market, to HELP/Assist the Seller in what they determine to be the price they want to sell their home. But, "we" don't offer a price.

Second, if you are referring to a Buyer's Agent "offering a cheaper price", please know that you, as a Buyer, determine what price you will offer. A Buyer's Agent will educate you, give you market information, etc... but it is YOU who determines what price you will "offer".

Third, the bottom line is that your Tax Credit, whatever amount it is or isn't is NEVER a consideration when you, as the Buyer are negotiating a Contract with a Seller. It isn't referred to on the Contract.

The Buyers' Tax Credit is something to help stimulate the economy. It is the President's way of giving people an added incentive (besides the great deals you can find now), to go out and spend your money!

I hope this helps!

P.S. A "realtor" is a registered trademark which should be all CAPS and refers ONLY to Real Estate Agents who pay to belong to the National Association of REALTORS and should be followed by a registered mark. Not all Real Estate Agents are "REALTORS". People who use that term are doing the same thing as calling tissue "Kleenex". :-) Just thought you might want to know! (Even the T.V. does this.)
0 votes
Jason Prood, Agent, Washington, DC
Wed Feb 25, 2009
We dont take into consideration the tax credit. It's for the buyer from the state, gov. It has nothing to do with putting in an offer on a property there are many more considerations for that. Such as location, condition, market value. We dont even think about the tax credit. That is just an incentive to help you purchase. Def. compare the tax credits when your taxes come due. But once again that has nothing to do with the offer.
Web Reference:  http://www.yourDchome.com
0 votes
Tammy Britt, Agent, Washington, DC
Sun Feb 22, 2009
NO, this has no effect on you negotiating a price on a home nor does the seller take this into account when you are negotiating or when they are pricing their home for sale. There has been a DC First-Time Homebuyer credit for years and I have never been in any situation where the seller or a listing agent for the seller tries to negotiate that in or off the price of the home. This is simply an incentive for buyers. The overall national housing market needs to be stabilized. Although DC proper has seen less downturn than most other places in the country. See article below.

http://realestate.yahoo.com/promo/while-new-york-bleeds-wash…
Web Reference:  http://www.TRS-Realty.com
0 votes
Vicky Chrisn…, Agent, Purcellvile, VA
Tue Feb 17, 2009
You are so silly. This is the funniest thing I have heard all day. Thanks for the laugh.
0 votes
Evan Johnson, Agent, Washington, DC
Tue Feb 10, 2009
Roy,

I am not typically a fan of more spending from the government but this proposed tax credit will help with stabilization and recovery of a depressed nationwide housing market. Even though DC happens to be stronger than most of the country due to the employment base, we need more buyers to take advantage of a great time to buy real estate. As with the current $7,500 tax incentive, the proposed $15,000 tax credit will not affect the power the buyer has to negotiate in the short term. With that said, if the tax credit is received well by home buyers, inventory of home for sale will reduce which will neutralize the market some therefore as a buyer you must take advantage while the economy is still struggling.

Now is the time to purchase!
Web Reference:  http://www.MyGayAgent.com
0 votes
Bill Eckler, Agent, Venice, FL
Tue Feb 10, 2009
Roy,

Not in the least..................there is no connection to the seller's level of motivation or neighborhood's declining home values.

The current sinerio is a great example of a win-win-win situation. As a buyer you save on the cost of the home, benefit from historically low interest rates, and save once again on the tax credit opportunity.

Here's the message.....Buyers, Get off the fence......now's the time!!!
0 votes
Jan Brito, Agent, Bethesda, MD
Tue Feb 10, 2009
The tax credit has no impact at all on the price of a home or your ability to negotiate. Tax credits are a good thing! In fact, many buyers have put off buying a home pending the enactment of this legislation. Don't let lthis stop you. If you're in the market to buy a home, you couldn't pick a better time - "the perfect storm" - historically low interest rates, low prices, plentiful inventory - run, don't walk! As retailers like to say - - "We're having a sale!"
0 votes
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