Blogging About Loans: Pigs get fat, hogs get slaughtered!

An office of elite mortgage lending professionals with a common interest and goal focused on providing customer service that exceeds expectation. Thereby building our business from repeat and referral opportunities. Ruth Vogt. LMB 100023827. NMLS 257576. Regulated by the Division of Real Estate. Fairway Independent Mortgage is an Equal Housing Opportunity.

Pigs get fat, hogs get slaughtered!

I'm sure we've all heard that expression. But there isn't a better time to recognize the impact of that saying than right NOW!

The clock is ticking on the home buyer credit, yet it amazes me how many buyers and sellers are still letting a few thousand dollars keep them from getting a contract signed!

I read a recent blog by my AR friend, Jane Peters, written on the subject of buyers nickel and diming the sellers to death. Over a $5000 roof (a roof, I might add, that wasn't expected to cause inspection or appraisal issues, by the way).

Now let's think about this: a $5,000 roof or the $8,000 first time home buyer tax credit??

Simple math points out that if the buyers make the offer with the roof as is (remember, no inspection or appraisal issues are expected) and the sellers accept it before the end of the month, the buyer is $3,000 to the good anyway.

But to take this one step further: let's say they continue to hold off hoping to get the seller down another $5,000, all for a roof that doesn't need to be replaced currently anyway, only to miss the contract deadline date and lose out on the $8,000 credit, they will pay for that mistake for over 25 years!home buyer tax credit

Here's how I figured that:

The monthly "savings" on a $5,000 lower price/lower loan amount is about $27 per month. If they mess around and don't come to terms on the contract by month end, they lose the $8,000 tax credit. If I divide the $8000 they stand to lose by the monthly "savings" they are hoping to gain of $27, the break even is over 296 months, or over 25 years!

And that's just simple math without taking other tax or financial factors into consideration like the value of current money (the $8k tax credit) vs borrowed money.


Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.

Ruth Vogt Colorado Mortgage Lender Ruth Vogt, Sales Manager

 #LMB100023827, NMLSR# 257576

 Equal Housing Opportunity. 

 Regulated by the Division of Real Estate.

   www.ColoradoHomeLender.com

   ruthv@fairwaymc.com  303-881-7849.

 

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Comment balloon 95 commentsRuth Vogt • April 25 2010 09:42PM

Comments

Some buyers want a great deal, not a good deal. It's crazy to haggle over a few thousand!

Posted by Jackie Connelly-Fornuff, "Moving at The Speed of YOU!" (Douglas Elliman Real Estate in Babylon NY) about 8 years ago

Great points Ruth.  I totally forgot about the $8,000K tax credit which they are not factoring in.  I am going to bring that up tomorrow if they talk about backing out.  We do have a contract with an overdue inspection contingency removal date.  Thank you for this excellent advice.

Posted by Jane Peters, Connecting you to the L.A. real estate market (Home Jane Realty) about 8 years ago

I like the way you figured that out, Ruth.  If Jane, I mean the selling agent explained it this way to the buyers maybe they will see the light! Another saying: Stepping over dollars to pick up dimes.

Posted by Mary Douglas, REALTOR, Red Feather Lakes, Colorado (United Country Ponderosa Realty, Red Feather Lakes, Colorado) about 8 years ago

Some people are going to miss out on the tax credit and I don't feel sorry for them.

Posted by Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239, Michigan homes for sale ~ yesmyrealtor@gmail.com (Real Estate One) about 8 years ago

I understand.  A lot of buyers want to get the 50 cents on the $ house.  I have had a few buyers miss out a home home that they truly wanted just because they wanted to beat down the sellers another $500.  If this is your home, then buy it i tell my clients.

Posted by Shawn Murray, Omaha NE - 402-250-7869 ( RE/MAX The Producers) about 8 years ago

Ruth, It's amazing that buyers and sellers still are not seeing the light!  GRRRRR ARGHHHHH

Posted by Duane Murphy, Broker- Owner-Real Estate - (Expert Real Estate Partners LLC) about 8 years ago

It is quite annoying isn't it? Ruth, I have scratched my head more than once on deals that made no sense when they had more to gain then what they were asking for on paper. Good luck dear. 

Posted by Sheryl Hartley-Piskuric, CSP, Real Estate Market (Koehler Bortnick Team ReeceNichols) about 8 years ago

Very good points, thanks. Read it over a few times to make sure i got it.

Posted by Randy Dodd, ePro, GRI, TAHS (Rosanna's Realty) about 8 years ago

Thanks for the post!  HAve a great week- we are all going to be crazy by the end of the next one;)

Posted by Shanna Hall, I love selling houses!!!St. Louis, MO 314-703-1311 (Real Estate Solutions) about 8 years ago

It is amazing sometimes how a deal can fall apart over so little money !!!!!!!!!!!!!!!!!!!!!!

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) about 8 years ago

In this past year I've seen so many transactions hanging on a few hundred to a few thousand.  I've seen all sorts of arguments.  An AC system that is older suddenly requires a $5k credit - I mean it MIGHT need to be replaced some day.  I've seen knock-down drag outs over curtains. and mini blinds - It's just crazy.  You are buying a HOUSE...are you serious? Yes or no....

Posted by Ruthmarie Hicks (Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605) about 8 years ago

Hi Ruth -- I too scratch my head to see a deal either fall apart or never get reached for a very tiny % of the overall price, it just makes no financial sense most of the time.  The agent should always point out the obvious, sometimes it simply needs to be said.  Not a panacea, but it can help sometimes.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) about 8 years ago

Ruth,

Penny wise and pound foolish. How often have we seen this, It's your job to keep it together. You're the pro here.

 May the Force be with you.

Posted by Terry Chenier (Homelife Glenayre Realty) about 8 years ago

Hi Ruth!  Oh, how true it is!  I've got a seller right now who is arguing over a couple of thousand dollars and we negotiated FULL list price for them!   So, let the buyers go and wait a couple of months to find another buyer and then they've spent that same money in the extra months of mortgage they've been paying on two homes!  And, Terry's comment about it being our job--hasn't dealt with clients who vehemently refuse and take on the consequence of going back on the market because they are, indeed, penny wise and pound foolish!  There have been times that there's no one thing we can do--they stand firm and do no listen to reason whatsoever!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) about 8 years ago

This is the perfect post I just deal with the same situation this week they were gauking over 4K, yet they have the 8K first time buyer tax credit coming there way.  There is only so much you can do.  Lets hope we can put something together by Friday :)  Its going to be a VERY busy week.  Good luck to all!

Posted by Tom Ramsey (Century 21 Northland) about 8 years ago

I'm showing a bank-owned tomorrow. Combination of great deal and tax credit is hard to beat.

Posted by ARDELL DellaLoggia (Sound Realty) about 8 years ago

It's all in the math, but people get all stubborn & emotional about house buying.

Posted by Jirius Isaac, Real Estate & loans in Kenmore, WA (Isaac Real Estate &TriStar Mortgage) about 8 years ago

I have a similiar issue going on right now.  It envolves roof problems.  Loans falling apart and staying in contract to get the tax credits.  In CA there is 18K worth of credits.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) about 8 years ago

I too scratch my head when the buyer uses fuzzy math logic.  After looking for over a year for the "perfect" condo, my all cash buyer is going to lose out on his $6500 move-up credit because there were dogs living in the place.  $6500 could buy a lot of nice flooring and paint/fixups! So it makes you wonder what is going on in their heads, penny wise and pound foolish indeed.

Posted by Sue Follansbee (Golden Eagle Properties) about 8 years ago

Thanks for the great post...it's all simple math

Posted by Terry McCarley, REALTOR, SRES, CDPE - Cape Coral, FL (REMAX Realty Team - Cape Coral FL) about 8 years ago

Good post. I'm going to re-post so some that follow my blog can benefit from your wise words.

Posted by Walter Hayes, Make the Right Move! (Oak Creek Realty Group LLC) about 8 years ago

Congrats on the feature Ruth!

Posted by Jackie Connelly-Fornuff, "Moving at The Speed of YOU!" (Douglas Elliman Real Estate in Babylon NY) about 8 years ago

I had read Jane's post before I got to this one. Like many others here, I forgot to figure in the tax credit!

Your points are so well taken. That buyer is just being difficult.

Congratulations on the featured post Ruth!

Posted by Craig Rutman, Raleigh, Cary, Apex area Realtor (Helping people in transition) about 8 years ago

Good breakdown Ruth.

Posted by Ryan & Sheri MacDonald, Calgary Home Team (Re/Max First) about 8 years ago

what about interest rates?  We know that rates are low now.  What will they be in a month, or next year?  Does anyone have a crystal ball?

Posted by Martin Kalisker, Professional Standards & Legal Assistant (Greater Boston Association of REALTORS) about 8 years ago

Your reasoning is sound and certainly is an important thing to figure in. However, I'm not sure about the pigs vs. hogs headline. Never heard of this, being a city girl. No clue as to what it means.

Posted by Carolyn Roland-Historic Homes For Sale In Delaware and S. Chester County PA, Carolyn Roland, GRI, CRS (Patterson-Schwartz Real Estate) about 8 years ago

Great reasoning, I hope some buyers that are on the fence over silly issues will see this and sign the contract before Friday! I can't believe more people are not taking advantage of $8000 of free money!!! I've been showing like crazy and little issues like 1 room is not big enough or its a little higher than the bank owned down the street (but move in ready). The $8,000 shouls make up for all of that!

Posted by Allison Jones (Kaufmann Realty) about 8 years ago

It means if you get greedy you get slaughtered.   You are getting a great deal on a house and you tried to make a little more money, than instead lose the whole thing.

Great Post Ruth, thanks!

Posted by Jason M. Keith, Lending in 5280 (WR Starkey Mortgage) about 8 years ago

Buyers are convinced that sellers are desperate.  This is a misconception and leads to many issues in the process.  I love the title, I use it all the time.

Posted by Kyle Jan, Phoenix AZ Homes for Sale about 8 years ago

Ruth, it's hard to disagree with the facts. People who want to take advantage of the $8,000 tax credit need to hurry.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA about 8 years ago

Sellers are getting slaughtered as well.  Don't accept the offer on the table by the tax credit deadline and you stand to lose a very large pool of buyers, drop the price to reflect the $8000 and wait for the adjustment to happen over many months before buyers pick themselves up and get back on their homebuying horse.

Posted by Jenna Dixon, Empowers You With a Better Real Estate Experience (DRA Homes | Cobb County Real Estate ) about 8 years ago

The tax credit sounds good on paper but remember, not everyone needs a tax credit. Sounds like the best thing since sliced bread when the govt. spins it, but not for everyone. Individuals should consult an accountant, not their Realtor to find out if the tax credit benefits them on a specific transaction. 

Posted by Robert Slick, NRBA, RDCPro, Trident/CCAR MLS (Beach and River Homes) about 8 years ago

Jackie, Very well put!

Jane, I've got my fingers crossed.

Mary, I hadn't heard that exression before, but so true!

Russ, Me neither!

Shawn, They miss the big picture, don't they?

Duane, And if they don't now, they will NEVER get it!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Sheryl, Scratching my head or pulling my hair out??

Randy, Glad it made sense... after a couple of times.

Shanna, How many bank owned properties will create our next panic the end of June?? We'll see.

Michael, That shows it's about winning the argument, not about getting the best deal (in my mind).

Ruthmarie, Crazy isn't it??

Chris, You are right on!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

$5000 on what price home? On a $120K home, it makes a difference. Its when people haggle over $5000 on a $600K home, that is ridiculous. I've seen buyers threaten to walk over $1500 on a $300K home! For some people, the deal is more important than the house.

Posted by Eugene Lew (RE/MAX equity group) about 8 years ago

Terry, sometimes it takes "the force" being with us to reach a level of sanity with buyers and sellers, doesn't it?

Debe, I do think we have some that are in for the thrill of the "game" and not serious buyers and sellers. Thanks for visiting, by the way!

Tom, Busy week? Yes! Thank goodness!

Ardell, Good luck with that bank owned - buth in getting the contract approved AND closed on time. hee-hee!

Jirius, You're right. Sometimes even seeing it in black and white on paper doesn't help.

Gene, that CA tax credit is amazing!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Sue, At some point you have to wonder if they were looking for reasons NOT to buy!

Terry, It usually is the "simple" stuff that we miss, isn't it??

Walter, thanks for the reblog!

Jackie, :)

Craig, Buyers can be such stinkers, huh? Thanks for the congrats (and thanks for stopping by!)

 

 

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Ryan & Sheri, Thank you!

Weichert Realtors, no crystal ball here. BUT I do like gambling occasionally, and I bet NO!

Carolyn, ***smiling*** I thought everyone had heard that saying! See Jason's comment two below yours.

Allison, you'd think so, huh?

Jason, thanks for the reblog!

Kyle, I think the title speaks volumes!  :)

 

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

For some it could be tool late after even today. A contract is one thing, but inspections and an appraisal is another. There is no way to get that done by the end of the week. If repairs are a big issue then the tax credit purchase will fall apart. If the house does not appraise, do you want to buy just for the credit if the house is not worth it in truth?  My suggestion is to either buy new, or a house in really good shape that you feel has a reasonable chance of meeting the contract requirements.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) about 8 years ago

I fired a buyer this past Winter over this very thing. People sometimes fail to see the big picture. Those people are called 'renters' . . .

Posted by Candice A. Donofrio, 928-201-4BHC (4242) call/text (Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker) about 8 years ago

Michael, And next month they'll be saying they wish they'd had 20/20 hindsight!

Jenna, GREAT point!

Robert, I know one person that doesn't benefit: ME! I'm one of the many taxpayers that is paying for this!! But what can I do???

Eugene, In this case, this home was in California, so the sales price was a lot more than $120k. And when you have people that the deal is more important than the house, that's all they are looking to buy: a house (not a home).

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Joe, Good points! ALL of them. (looks like the proxy errors are bad again today!)

Candice, LOL! I love your definition!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Good Post.  It'll all be over in 5 days!

Posted by Donnie Keller, Reata Realty - Delivering Excellence (The Reata Realty Group) about 8 years ago

I tell my buyers this (and it does not always work!):  waiting until next year to buy for whatever reason results in having to pay about $8000 rather than receiving $8000.  If you figure in all the price increases, mortgage insurance increases, possible interest rate increases, and the cost of RENT!?, you are definitely looking at at least $8000 in additional costs to buy next year.

Right now is the best time (week?) to buy.  Period.

Posted by Shawn Rooker (Realty Austin) about 8 years ago

Nice article

Posted by Greg about 8 years ago

I also tell my first time home buyers that just because the credit expires, it's no reason to jump into a home they don't like. But I love your post and logic.

Posted by Karen Fiddler, Broker/Owner, Orange County & Lake Arrowhead, CA (949)510-2395 (Karen Parsons-Fiddler, Broker 949-510-2395) about 8 years ago

Plenty of people don't understand math. If those buyers wanted to really come out ahead, they'd take the $8,000, fix the roof (if it really needs it) for the $5,000, and then plunk the other $3,000 down as an additional payment on the house.

Depending upon the payment amount, and given that in the first years of a loan most of the payment goes to interest rather than principle, that extra $3,000 payment could take many months off a 30 year contract.

 

Posted by Marte Cliff, your real estate writer (Marte Cliff Copywriting) about 8 years ago

Ruth, a very good way to look at the numbers. $5,000 sounds like a lot until you look at what you could possibly lose.

Posted by Ted Tyndall, FL Homes for Sale-Palencia, World Golf Village,Nocatee,St. Augustine (Davidson Realty Inc.) about 8 years ago
Well, only 4 more days to the end of the incentive. Hope buyers get their act together.
Posted by Mike Yeo (3:16 team REALTY) about 8 years ago

Yes there are those buyers who think they should get everything....for nothing....these days especially.

 

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) about 8 years ago

Well these buyers are running out of time so it looks like they may lose out.

Posted by Tammie White, Broker, Franklin TN Homes for Sale (Franklin Homes Realty LLC) about 8 years ago

Ruth:  It appears that I must have been absent the day they covered Pigs get fat, hogs get slaughtered.  I was prolly in church, praying for the pig.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) about 8 years ago

People are scrambling here to get their offers in! It's a mad rush! Congratulations on the feature Ruth!

Posted by Wanda Kubat-Nerdin - Wanda Can!, So Utah Residential, Referral & Relocation REALTOR (Prado Real Estate South) about 8 years ago

Anyone who's waited until the last minute to get the tax credit is crazy. Most of the buyers think they can completely rip off the sellers.

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) about 8 years ago

Ruth, great post and facts are facts...some buyers will lose out for sure on this tax credit!!

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Perry Wellington Realty, Adam Conrad, Broker) about 8 years ago

Ruth, great post, and well said!

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) about 8 years ago

Interesting that a buyer would want a credit for a roof that doesn't need to be replaced. Guess the inspection report gave it limited lifetime.

Posted by Vickie Nagy about 8 years ago

To tell you the truth, I had never ever heard that phrase or adage before. But, your example made it all crystal clear ;-)

Posted by Melissa Zavala, Broker, Escondido Real Estate, San Diego County (Broadpoint Properties) about 8 years ago

That's a good perspective. Thanks for the insightful post. I always learn a lot on Active Rain.

Posted by Cheryl Ritchie, Southern Maryland 301-980-7566 (RE/MAX Leading Edge www.GoldenResults.com) about 8 years ago

We have too many buyers in our market so it doesn't matter at this point.  Many are overpaying by more than their tax credit and getting zero in concessions.  I think it is all relative to what is going on in your local markets.  We have ebay mentality going on here and will have another bubble just like we did the last time the tax credit expired.  Next month buyers will be getting concessions again whether the tax credit ends up expiring for reals or not.  It's all a shell game in my market.

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) about 8 years ago

Ruth - I always try to do a math break down like you did for my clients, it usually moves things along. 

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) about 8 years ago

In the Tampa Bay area where one-third or more of the current sales are distressed, I'm more worried about the big banks not being responsive in time.  I'm sitting on many contracts signed before April 30  but working their way through the short-sale bureaucracies of major banks.  Given past lack of performance, we have every reason to worry that they will not give third party approval by June 30 when we must close.  The majority of my clients, at least of modest priced properties, will walk I fear if they don't get that credit.  It has been shocking to see how much the banks have been dragging their feet for almost two years now, and properties end up foreclosed as REO's for prices far less than earlier short sale offers that were refused or not responded to.

Posted by Tony Branch about 8 years ago

I just referred a problem client out to another realtor for 20% ... it was worth it to not deal with him!

Posted by Pippa Mac, The Woodlands TX Real Estate (Chevaux Group Realtor, The Woodlands and Spring) about 8 years ago

This week I had to remind my sellers that the offer they got on their overpriced listing (by at least $10K) was as good as it was going to get for them in the next 12-24 months... they didn't want to believe me.  I told them they would get an offer because of the tax credit, but they let the buyers walk over $2K.  They will be kicking themselves in about 2 months when they realize they looked a gift horse in the mouth.

Posted by Julie Ferenzi, Julie Ferenzi (john greene Realtor) about 8 years ago

But it's a buyer's market, right?

We see a number of buyers who want the world because they think it's a buyer's market and all sellers must be desperate, right?

Posted by Erica Ramus, MRE, Schuylkill County PA Real Estate (Erica Ramus - Ramus Realty Group - Pottsville, PA ) about 8 years ago

Great post. Good thoughts to share with buyers.

Posted by Greg Renfrow (Marx-Bensdorf, REALTORS) about 8 years ago

RR: Next we'll be hearing about bank REO's and short sales that are causing concern about getting the properties closed on time!

Shawn, how true, how true!

Greg, Thanks.

Karen, You are so on the money on that one!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

We have a lot of scrambling going on right now.

Penny wise and pound foolish, is right.

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 8 years ago

Marte, It seems so obvious to us, doesn't it: Go under contract and there are many options. Don't go under contract and have no options.

Ted, funny how we sometimes can't see the forest for the trees!

Mike, Some will. Most won't, I fear.

Patricia, Couldn't be more true. Sad. But true!

 

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Tammie, It's kind of like you don't know what you don't know. They don't know what they are missing out on.

Karen Anne, prayers must have worked for the pig. It was the hog that was slaughtered!  :)

Wanda, Thanks for reading and thanks for the congrats.

Eric, Makes 'em crazy on two counts, not just one, huh?

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Rebecca, Yes, in deed!

Ron and Alexandra, thanks for saying so.

Vickie, I don't think the inspection had even been done yet. (It was Jane Peters deal actually, in Ca)

Melissa, Must be a midwestern thing - I thought everyone had heard that one!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Cheryl, Me, too. Great, huh?

Renee, True. It's about your market, no doubt.

Michelle, It works best when they can comprehend the logic. I've met a few that couldn't calculate their own monthly income!

Tony Branch, I fear you could be right!

 

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Woodlands, Smart thinking!!

Julie, So true. And so sad, huh?

Erica, that's what the media is telling them, right?

Greg, Interesting when you break it down like that, huh?

Missy, We got love it while it lasts, cause it'll be gone before we know it. Thanks for stopping by!

 

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

It's not always possible to TELL people they are wrong, it's an art to ask questions that lead them to discover it on their own.

Posted by Loan Survivor Real Estate Financing Expert (Purchases, First Time Buyers, Pre-Approvals, Refinance) about 8 years ago

Ruth, that's a secret I learned early on in real estate. Take it down to the $ per $1000 it will affect their payments. At that time it was $8 per $1000, so for $40 a month or a little over $1 a day, they were going to blow the deal? When you break it down like this it brings some people to their senses.

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) about 8 years ago

I can not wait to return to a more normal market even with all the REO's, tired of seeing people rush to overpay for a $8,000 check. Each market is different, I'm in Los Angeles, and we will be taking a further 10% hit because of this "Credit Incentive" induced second bubble. To know where you're going, look back where you've been, remember history.

Posted by Steve Sandoval about 8 years ago

Congrats on the feature, Ruth!  Some nice comments as well.  Just a few more days for the tax credit.

Posted by Dawn A Fabiszak, The Dawn of a New Real Estate Experience! (Private Label Realty ( Denver metro area, Colorado) about 8 years ago

Ruth,
crossing the fingers that they will do something soon to extend it ! :) it will be awesome to have more movement like this, great blog !

 

Posted by Ray Saenz, Homes for Sale in Laredo, TX - Texas, Realtor (Exit Realty Laredo) about 8 years ago

Ruth,

I can't understand people.  Why they will do one thing and oppose you on another.  All we can do is advise.  I just hate it when they use you as a "goat" for their ignorance.  Can't be avoided!

Posted by Eugene Adan, Carlsbad Real Estate (Adan Properties, Carlsbad, CA (760) 720-9710) about 8 years ago

You are SO RIGHT! I am presently dealing with a similar issue with a first time homebuyer -- not mine, thankfully or I would strangle -- over homeowner insurance. We are talking here $1200 per year. Which by the way the buyer has to pay anyway. So not only does he risk loosing the $8000 but add roughly $1200 more. Obviously he cannot do math.

Posted by Gloria Marina about 8 years ago

The $8000 tax credit is no reason not to negotiate to the fullest extent possible.  From what I'm seeing in these comments, it looks like this credit is causing a little bubble in prices and terms.  Everyone is relying on the credit to give them a backstop instead of negotiating normally and getting an extra $8000 prize. 

Posted by Tim Maitski, Truth, Excellence and a Good Deal (Atlanta Communities Real Estate Brokerage) about 8 years ago

Loved your breakdown. It still amazes me that buyers & sellers would continue to haggle over +/- $1000. My mentor once told me that it was an idiot that haggles over a measly $$ when the home is worth more than the amount being haggled over in the long run.

Posted by George Wilson (Lincolnton, NC) about 8 years ago

So true!  So many think they know what they are doing, but then end up shooting themselves in the foot!

Posted by Chris Alston, Silicon Valley, California (Chris Alston (Keller Williams Realty, Silicon Valley, California)) about 8 years ago

Very nicely put!   I've reblogged....

Posted by Doug Patterson, CRS, ABR, Broker-In-Charge (Park Place Real Estate, Broker-In-Charge) about 8 years ago

You tell em Ruth.  Let's just forget the larger issues arguing over the smaller ones.  Ones that don't need to be replaced right now BTW.

Posted by Lyn Sims, Schaumburg IL Area Real Estate (RE/MAX Suburban) about 8 years ago

When I worked as a stockbroker we had a saying : bulls and bears get rich, pigs get slaughtered. My question after reading your post, is Who is the pig?

You start your post with the comment " it amazes me how many buyers and sellers are still letting a few thousand dollars keep them from getting a contract signed!"  But in the rest of the post it's only the buyer that you criticize. The seller is also refusing to budge. It seems to me that they are equally pig-ish  Jenna Dixon in comment 31 has it right. 

 

 

Posted by Ron Parise (LocateHomes.com) about 8 years ago

This makes so much sense.  And, I like the fact that you've broken down the math so simply.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) about 8 years ago

some people will always let a nickel stand in the way of a dollar. don't ask me why.....

Posted by Bill Buettner, Your Real Estate Connection (Keller Williams Greater Columbus) about 8 years ago

Ruth, sometimes people defy logic.  I guess it it the old "Penny Wise and Pound Foolish".

Posted by Damon Gettier, Broker/Owner ABRM, GRI, CDPE (Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert) about 8 years ago

Drew, A true art, indeed!

Sharon, Agreed... when you can bring them back to the "now", the value of "today", you have a shot at some sort of reasoning.

 

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Steve, NOt sure we'll even recognize a "normal" market anymore???

Dawn, Going, going, gone!

Thanks, Ray, for the congrats... and for stopping by.

 

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Eugene, You're right... sooner or later.

Gloria, Sometimes even calculators don't help.

Tim, "Little" bubble? How do you measure a bubble? I know I'd be thankful if my property values only lost $8k recently!

George, Smart mentor you had.

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Chris, And most don't even know how really inflected the pain, do they?

Doug, thanks for the reblog.

Lyn, EXACTLY!

Ron, Funny that in my pig story the pig got fat; in yours it got slaughtered! And yes, Jenna did hit it on the head.

Christine, Glad the math breakdown was easy to understand.

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Bill, Sad but true.

Damon, I guess that's what keeps this business interesting???

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 www.ColoradoHomeLender.com (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) about 8 years ago

Great point Ruth.  I'm sure we will all be watching the Real Estate market closely over the next few months now that the tax credit is gone.  We are getting a nice boost on the affordability of home purchases currently with the unexpectedly low interest rates we're currently seeing, so that's a bonus!

Posted by Tim Duvall (Area Manager at Guaranteed Rate, Inc) about 8 years ago

Participate