The Tax Credit is Over, Now What?
Now that the tax credit for new homebuyers has come to an end, people from all walks of life, from potential homebuyers to mortgage brokers to real estate agents are asking the same question: now what? This isn’t an easy answer to give for so many different realms of the industry and people. After all, few individuals predicted what Tax Agent Gold Coast was to transpire in 2008 and send the housing industry into its tailspin and even fewer predicted that the effects would be as lasting as they have been. Still, while there is no crystal ball that we can look into and get a solid handle on what the end of the tax credit will mean in the long run, we can take some control of what may, or may not, happen in the coming months and years.
The success of the tax credit?
One question that we should ask is whether or not the tax credit was actually a success or not. When we look at the millions of homeowners who took advantage of it and bought a new home during the program’s run, the answer is an unequivocal yes. Without that influx of buyers who were motivated by the tax credit, we wouldn’t have seen a stabilizing effect on housing prices or a willingness from all of those homebuyers to jump into the tepid waters in the first place. The 35th anniversary of the movie hit, ‘Jaws’ reminds us that what lurks in the deep, in the dark waters in which we can’t see, can sometimes be dangerous. And this gave millions of people pause when considering buying a home this past year.
Some individuals and organizations will certainly crawl out of the woodwork in the coming months and years to claim that the tax credit didn’t do enough or favored one type of homebuyer over another or didn’t have a lasting impact on the housing market, and we’ll let those opinions fly when they arrive. The discussion here is about what happens next.
Homeowners and potential homebuyers who have missed out on the tax credit opportunity will ask the most common question next: will it return? Unless you work within the White House Administration, then you don’t know the answer to that question. Being honest and upfront with potential homebuyers is the best method to earn their trust. It shouldn’t matter whether the tax credit will return, whether in the same form it was in before or in a new form or with different parameters and expectations or whatnot. What homebuyers need to accept and realize is that they should be taking full control of their future, without waiting on or relying on some other entity to help them achieve their goals.