If you are active in real estate, or are monitoring the economy, you know things have been looking pretty good for the last six to nine months. In my opinion, it is because of the home buyer tax credit. This is truly the only “stimulus” that I have seen stimulate anything other than wasteful spending. I believe that real estate sales touch over 75% of Americans.
Imagine this, I sold a house on Thursday, that I bought and fixed up in 45 days. How many people benefited from me being able to buy, fix, and sell the house? Lets see:
- The Seller (2)
- The Wholesaler and his company (9)
- The title company that closed the purchase (4)
- The loan team that originated my loan (3)
- My insurance agent (3)
- The foundation company (7)
- Central Heat and air (8)
- My crew (7)
- Home Depot (5)
- Creative Accents (3)
- The wood floor crew (4)
- Landscaping crew (3)
- Dumpster company (3)
- Plumbers (5)
- Electricians (2)
- My Realtor (1)
- The Buyers Realtor (1)
- The title company for the sale (5)
- Insurance for the buyer (2)
- The lender for the buyer (4)
- The inspector for the buyer (1)
- Service contract (1)
That adds up to 83 people that this property directly effected. No imagine the people that rely on those people to pay their bills. Picture the suppliers to these companies, and the vendors, and the sales people. Picture the furniture store the buyers will go to. That is just ONE house. I predict sales will drop by as much as 30% if the tax credit is not extended.
The only reason the economy and stock market have began to improve is because of the home buyer tax credit. It is due to expire in three weeks. Write your representative and senators today, and tell them to keep the economy moving in the right direction. We NEED the homebuyer tax credit to continue economic recovery.
Now, THAT is the way I see it!