Can you really look at a buyer today and tell them that they are buying their home at a good price?\u00a0 Sure, you can tell them how the price they are paying compares to what folks have been paying the last few months, or few years.\u00a0 But that doesn’t mean that what you are seeing is the true market price!\u00a0 The actual market price can’t be determined without a free market.\u00a0 Right now, we have anything but a free and stable market in real estate.<\/p>\n
Take the government’s free ice cream housing promotion<\/a>, also known as the Homebuyer Tax Credit.\u00a0 The issue I’m concerned about isn’t that it is going to cost taxpayers about 15 billion dollars if it is allowed to expire on November 30.\u00a0 Nor is the issue that it has cost $43,500 that we, our children and grandchildren will somehow have to pay for each new buyer attracted into the program according to the NAR numbers.\u00a0 The issue is it has artificially increased the value of homes in the market by $8000<\/a> and that will end on November 30th<\/sup>, or sometime.<\/p>\n So, that $250,000 home your client just bought and put a mortgage on is really only worth $242,000 when that market distortion is removed.\u00a0 With an FHA loan, and a program to use the tax credit for a down payment, guess who is already upside down in their purchase?\u00a0 Does this sound anything like the too recent past?<\/p>\n Our tax code is already heavily skewed towards home ownership.\u00a0 With our government’s current spending spree and their desire to raise taxes, could the sacred mortgage interest tax deduction eventually be reduced?<\/a><\/p>\n While that is probably not the immediate threat, the current rulers prefer government solutions to allowing the private market to function.\u00a0 Be it FHA<\/a> or State Housing Programs for low income borrowers<\/a>, a monetary policy of rock bottom interest rates and the mortgage interest deduction the programs and the proposals coming forth further distort the market.<\/p>\n This makes the biggest risk in a real estate investment strategy<\/a> or even a home purchase predicting the future changes in artificial supports to the market Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Can you really look at a buyer today and tell them that they are buying their home at a good price?\u00a0 Sure, you can tell them how the price they are paying compares to what folks have been paying the last few months, or few years.\u00a0 But that doesn’t mean that what you are seeing […]<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[62,5],"tags":[],"class_list":{"0":"post-9901","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-dirty-laundry","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":976,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/976\/overcharging-a-dedicated-realtor-is-a-bargain\/","url_meta":{"origin":9901,"position":0},"title":"Overcharging? A dedicated Realtor is a bargain . . .","author":"Greg Swann","date":"January 31, 2007","format":false,"excerpt":"Attorney Craig Blackmon issues a testy remark in a comment today, but the truth is, I could not be happier to discuss the underlying issue. Sez Craig:Well, it appears that even the \u201cfull service\u201d agents are overcharging just a wee bit. It turns out that a successful agent must rebate\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10155,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10155\/driveby-economics-8000-price-cut\/","url_meta":{"origin":9901,"position":1},"title":"Driveby Economics – $8,000 Price Cut?","author":"Tom Vanderwell","date":"October 22, 2009","format":false,"excerpt":"I had coffee yesterday with a long time friend of mine who works for a local title company.\u00a0\u00a0 We were talking about a variety of things, including some of the new stuff I'm working on on the web. The topic came around to the $8,000 First Time Home Buyer Tax\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2208,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2208\/a-consumers-guide-to-the-divorced-real-estate-commission-undermining-the-arguments-in-support-of-the-status-quo\/","url_meta":{"origin":9901,"position":2},"title":"A consumer’s guide to the divorced real estate commission: Undermining the arguments in support of the status quo","author":"Greg Swann","date":"November 11, 2007","format":false,"excerpt":"Part V: Why arguments for the current method of compensating real estate agents and against divorcing the real estate commissions must fail As I write this, the National Association of Realtors is preparing for its annual convention, to be held this year in America's playground, Las Vegas, Nevada. This year\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":650,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/650\/an-argument-for-dual-agency-%e2%80%93-part-1\/","url_meta":{"origin":9901,"position":3},"title":"Dual Agency Smack-Down: An Argument FOR Dual Agency – part 1","author":"Russell Shaw","date":"November 18, 2006","format":false,"excerpt":"This is a stupid subject. This is a necessary subject. There are a lot of different viewpoints on this subject. A lot of the viewpoints that seem to matter came from lawyers, court decisions (judges who are also lawyers), and other people who are also wrong. Back in the days\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2198,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2198\/a-consumers-guide-to-the-divorced-real-estate-commission-were-just-sitting-here-at-the-closing-table-watching-the-money-flow\/","url_meta":{"origin":9901,"position":4},"title":"A consumer’s guide to the divorced real estate commission: We’re just sitting here at the closing table, watching the money flow","author":"Greg Swann","date":"November 9, 2007","format":false,"excerpt":"Part III: The who-pays-whom of real estate is not as simple as you might have thought... All right, let's go buy a house. I want to talk about the flow of money in a real estate transaction, and there is no better way of understanding that flow than wading right\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":312,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/312\/the-fsbo-and-bubba-variety-hour-how-to-make-the-buyers-agents-dance\/","url_meta":{"origin":9901,"position":5},"title":"The FSBO and BUBBA variety hour: How to make the buyer’s agents dance . . .","author":"Greg Swann","date":"September 9, 2006","format":false,"excerpt":"Our friend, colleague and personal marketing god, Richard Riccelli is getting ready to FSBO his Boston townhouse. He's spent a year planning this down to the last detail, including condo-izing his property into two apartments so that they can be sold separately -- or together if someone wants a residence\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=9901"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9901\/revisions"}],"predecessor-version":[{"id":9904,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9901\/revisions\/9904"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=9901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=9901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=9901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}