What to do now that the Federal Tax Credit has Expired?
By: Jake Conte
Submitted: 2010-06-06 21:58:31 | Word Count: 566
The federal tax credit inspired many people to finally purchase homes after they had been waiting for awhile. It also was created in an attempt to get the real estate market jump started. People looked at the fact that it was $8,000 and thought it was as good of a time as any to just bite the bullet and buy a home.
Background on the Tax Credit
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The tax credit was not able to benefit everyone since not all people could afford to purchase homes during this time period. You may also have wanted the credit after you currently sold your home. However, it is possible that you may have been attempting to sell your home and didnt manage to get it done quickly enough to get the tax credit on a new home purchase. Now that the credit is over the real estate market needs to learn how to cope with it.
You are definitely going to feel the crunch as a home seller. This is because the previous results give hints about the future. The last time the tax credit was on schedule to end the home sales dropped by astronomical numbers. This number was 16% which is a huge drop for the overall market especially with the current conditions that it is facing. The summer is looking to be incredibly long and hard for people who need to get homes sold in this market.
What to do about it?
Realtors need to be able to adapt to how the market is currently standing. Sellers are going to take a hit here but it will hopefully ensure that their homes still end up getting sold when it comes down to it. The sellers are getting asked to drop the price of the homes theyre selling by the same amount as the tax credit so buyers are still being enticed to purchase homes regardless of the fact that the credit is done.
Home owners also have other options to try to get the homes sold. They can list the homes for lower prices and sell them on their own instead of using an agent who will take a commission of around 6% depending on the agent. This is thousands or even tens of thousands of dollars depending on the price of the home in the first place. This will save the sellers money so that the buyers are able to get a better deal on the home and it is a win-win situation for all parties involved.
Selling a home in real estate takes some skill and when the market isnt doing too well it takes even more skill and work to get the home sold effectively and at a price that pleases all parties involved. It is necessary for compromise and adaptability to occur in real estate because the market really doesnt have any set standards which can be evaluated at one time or another. It is constantly changing like many other things in life that should be worked on and analyzed.
