There are dozens of articles on this site about the Home Buyer Tax Credit. You can see them all here.
For the most recent news about the Home Buyer Tax credit, please see this article (July 2, 2010).
Good grief.
I’m seeing all sorts of communication coming across Twitter, blogs, Facebook et al such as this:
Home Buyer Credit is Extended! Yeah!
The tax credit as been extended and includes repeat buyers.
I have confirmed the $8k tax credit with CPA as well as mortgage regional manager
Homebuyer tax credit deadline extended…a $6500 credit given to those primary home purchasers.
Extended!! First-time home buyer tax credit and NEW current homeowner tax credit!!!
And this goes on and on and on.
Here’s the deal folks, and pardon my shouting, BUT THE TAX CREDIT HAS NOT BEEN EXTENDED!
I’m not saying it won’t be. In fact, it is looking like it probably will be extended and maybe even expanded to include “move up” buyers as well as having the income limits raised.
BUT IT HASN’T EVEN BEEN FORMALIZED AS A BILL YET, and not one single Senator or Congressman has cast a vote for (or against) a tax credit extension.
Period.
This “reporting” by droves of people, the vast majority of which are real estate professionals, that the tax credit has been extended is completely and utterly incorrect.
And in my opinion, it’s incredibly unprofessional.
READ the mainstream articles your are linking to people. Statements like these should be your first clue:
Senate negotiators reached a tentative deal…
If the Senate actually passes the bill, the House, where over two dozen versions are floating around, may finally decide to act.
The White House doesn’t fully support the extension and expansion because it’s concerned about the cost and adding to the deficit.
Senate likely to extend homebuyers’ tax credit
When you see words such as “negotiators”, “tentative”, “if”, “may”, “likely”, etc. that is a pretty damn clear indication that nothing has been finalized.
The other huge clue that this extension / expansion isn’t final is in the Constitutional process that dictates how legislation is passed in this country.
Seen any press regarding the Republicans? How about the House of Representatives? Think it doesn’t matter that the White House “doesn’t fully support the extension and expansion”? Seen a Senate or House vote yet???
Don’t understand the legislative process? Crack open a government text book. Ask your kid. Watch this video:
For the love of humanity, please stop with patently false reporting that the tax credit extension is a done deal!
My friend Shane Hollenback, an outstanding Certified Mortgage Planner, summed up my thoughts on this ridiculous “reporting” in less than 140 characters:
A-freaking-men.
.
Update: I originally posted this article under the title. “Sigh. THE TAX CREDIT HAS NOT BEEN EXTENDED. Yet.” I quickly realized the *sigh* could easily imply that I’m sad the credit hasn’t been extended. That’s not the case. Though I’ll likely be arrested by the Realtor Associations for Treason, I don’t think the credit should be extended (more on that later). The *sigh* was meant to signal a sigh of frustration for the lame ass “reporting” my fellow professionals are doing.
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It is increasingly apparent to me how stupid some people are by trying only to promote their own self interest. I've gotten more spam today from misguided real estate agents, mortgage brokers, marketing “consultants” (telling me I need to announce this “NOW” to my clients using their spam email system of course), and others. It's just like what happened last time when the $15,000 credit was floated but the $8,000 version was the one that got passed. Everyone was announcing it before there was even a vote. Didn't anyone learn from that? Does anyone have just a few seconds of patience to actually THINK anymore?
I have always loved that cartoon since the 4th grade by the way – thanks for posting it!
Good take on this. Unfortunately, there's a lot of incorrect news/rumors being spread on this. (Shameless plug ahead): I took a look at some of those: http://www.dripmarketingblog.com/2009/10/first-...
Jay, I am so glad that people like you can effectively convey the cold hard truth. Just like what Michael DiMella just said, it's crazy how much “junk” has gone out today on this subject. Professionals are actually endorsing incorrect news! If a bonafide journalist was to just blurt fact without verification, they would lose their jobs. At least the truth is somewhere in these stories and articles that the industry pros keep pushing and screwing up.
A-freakin-men to you brother.
Amen to the demise of the tax credit. I'm sure if I were more of a player the NAR would have me on their hit list. They ought to be ashamed of being an accomplice to this government scam.
Unprofessional? Well beyond unprofessional, How about absolute malpractice? Negligence?
I'm reading similar comments. One poster on an agent forum said he attended his sales meeting and was told the extension was approved. You'd think his broker management would know better.
Those are two well deserved descriptions. As I go on with my day, more and more BS comes in about the confirmed extension. I would like to say, unbelievable… but, unfortunately, I believe it. There are some dumb people out there.
Jay – As if I didn't have a million things to say about this. I had an email about it moments telling me it was confirmed! From someone I trust! I was glad you were there to be the voice of reason.
It scares me that so many real estate professionals didn't learn from the “credit monetization” fiasco at NAR mid-year. And this goes even deeper to a simple understanding of how an idea becomes a law (love that you used that video).
I'm off to write my own post about it, but wanted to stop by yours for a bit of inspiration and to get my blood boiling first. Haha.
Most appropriate youtube clip. Ever.
I/m not sure I want the tax credit extended either….
The incorrect information about the tax credit has been emailed to me a few times by those who are definitely supposed to know. I actually thought it was extended and increased! Thanks for the correction.
Nice job, Jay. Nothing like saying it like it is.
There are a lot of very unprofessional journalists out there too that provide extremely misleading headlines. The article will detail the reality of course, but the headline has to be something outrageous and generally incorrect. Not to bash on one media corporation over another (they are all slime), but FOX news tends to break news first, and they also generally break in with rumor and falsehoods. That is why they are the ones to start most rumors and conspiracy theories, because they want the attention and not the truth. If you dont believe me, take a look at FOX vs any three other media outlets and you will find that they specifically write headlines so that it is polarizing and almost hints at a deeper hidden agenda.
-Tyler
Thank you for this post. I've been seeing these comments all day, and they're driving me nuts. Anyone in this industry should already know what's going on, and even if they haven't been following the process closely, it takes all of 2 seconds on Google to check the facts. Ridiculous and inexcusable by people who are supposed to be professionals…
I always wondered how Realtor's got a bad rap. With some of the actions of other's, we sure look like the next AIG looking for a bail out. I'm so sick of the call to action emails being forced down my throats and throats of my colleagues. This is not good business. It's almost as good as being forced to join NAR.
Even though the main stream media thinks people are stupid I can tell you the majority can see right through all this tax credit nonsense. Of course you have a ton of Realtors who are dependent on the government now providing ready willing and able buyers to the marketplace. When all were doing is pro longing this delightful recession.
I also read a number of misleading blog posts today indicating it was a done deal.
Even i have read so much that Tax credit has been extended. You have presented your post very strongly and i think this issue has to come like this only. Actually, it is a malpractice even real estate professionals are spreading fake news.
So, what's more irresponsible? The bloggers trying to beat out the other bloggers, the NAR for sending the lobbyists (paid from our dues), or the government that allowed this whole mess to go unchecked?
If I wasn't so scared of the right wingers, I'd be pushing for anarchy.
Now that Realtor.org has reported on it (and in the first sentence used the word “tentatively” I'm seeing more again today. The tweets and references say “it has” yet the article CLEARLY states otherwise.
Perhaps we need to ban “skimming” from internet usage. If you're going to tweet a post or talk about what you need in a post, perhaps you should ACTUALLY read the whole thing.
Jay, can we take a vacation somewhere where there is no tax credit for a few months?
I forgot to throw in the link…sorry.
http://www.realtor.org/rmodaily.nsf/pages/News2...
It is a very interesting blog. i like this .Thanks.
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I agree. I hope it isn't extended either. However, it looks like the Dems need to buy some votes and it is likely to be extended. NAR gave it's member lots of opportunities to say that they supported the extension. I kept looking, but there were no options provided to tell NAR and your representative that you did NOT support it. Of course you could do that on your own, but NAR didn't really care if you did NOT support it. they just want to hear from those that are willing to reinforce their own beliefs.
Hopefully they won't revoke my membership along with yours.
I'm one of those “Dems”. I am also a member of the NAR (not by choice – its a requirement of the profession). Most agents fall into the Republican Party and very often seem to be the extreme right wing of the party. Look on all the blogs and count the number of agents who support the Tax Credit. You are barking up the wrong tree about “Dems” and buying votes. Stop watching one channel and only one channel to get your “educated opinion” and you might find we have more in common than the TV would let you know. This mess goes beyond party lines.
Yes, I am pleased to see it go too. I dare not comment more since there are so many people hyperventilating over closing on a home before the deadline.
(I had an agent today pleading her case on a listing of mine that her clients lost out on… simply, the winning offer was $15,000 above hers… “but the deadline” she cried)
Gregory, Your right. It does go beyond party lines. Plenty of blame to go around. For the record, in my opinion, I believe that the majority of Congress is “buying” a vote with the extension. If they sit back and do nothing they look like they don't care. They need to stimulate the economy so that the average Joe will feel better and begin to relax. So they give away money. I understand the concept. I also think the initial stimulus overall was a good thing. I just don't think that the extension is the right thing. I don't watch one channel. In fact, I don't watch any television. I haven't had any form of television for at least a year. I form my opinions by have rational discusssions with others such as yourself. In my opinion, both major parties are just a little too far to the side on many things. Sometimes I even change my opinion based upon those discussions. Don't tell anyone though.
And membership in NAR is not a requirement, however, it does make being in the profession a little easier.
Za uspiekh nashevo beznadiozhnovo diela!
I worked in TV news for 15 years before I got into real estate. The unofficial newsroom motto was never 'let the facts get in the way of a good story.' It seems as though many real estate professionals share the same strategy.
Just shows how much the press can supple bad information and influence the public.
UGH. You know my feelings on THIS one. I hate it when people don't actually READ things. I thank you for being a soldier in this fight.
And, as an aside, I'd wager that you and I agree on the credit. I wonder whether it's a good thing for the economy, overall. Given that prices are what they are and given that interest rates are so low, wouldn't most of the buyers who've taken advantage of the credit have bought … anyway? Just a thought.
But I digress. Thank you, thank you, THANK YOU for fighting the good fight on this one.
I made it a point to report in red on my blog: Keep in mind that this still has some final tweaking before the final bill is done
It is indeed a professional responsibility!
OK, NOW it's official! http://www.phoenixrealestateguy.com/home-buyer-...
It has definetly been extended, but time will tell if it helps in the long run.
Yes we got the new tax credit…and we also got $6,500 for existing homeowners. But at some point we will need to do something to help people stay in their homes if we want to help the market. Do you think the gov't has the appetite forthis? I think not.
Very interesting post! Taxes are also here in Germany a topic discussed very often!
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Hi Jay – It will be interesting to see what happens to our Real Estate markets if the tax credit is not extended again.
.-= Bill Gassett´s last blog ..Handling Offers When Selling a Massachusetts Home =-.
What’s the situation now?
As the previous poster said, I too am also very curious as to what the situation is looking like right now.
Cyril – the link in the update box at the top of the post goes to the latest on the tax credit. On July 2, the *closing* deadline was extended to Sept 30. People still had to have been under contract prior to April 30 to be eligible for the tax credit.
Rancho Real Estate – no disrespect intended, but you’re a real estate agent and weren’t aware of this?
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