$15,000 Home Buyer Incentive, What It Could Mean For Nashville, Brentwood and Franklin TN Areas!
Will a $15,000 home buyer incentive work in Nashville?
ABSOLUTELY!!! If the $15,000 home buyer incentive passes Congress in its present form, we will see a HUGE boost in the sales activity here in Nashville. We are currently working on the perfect storm with record low interest rates, sellers willing to negotiate, add to that a new buyer's incentive and we will see buyers falling off the fence in droves to buy that house they have been waiting for! This will also create a 2-fold benefit: By offering this incentive, it will help shore up the housing market and boost consumer confidence, then with a newfound $15,000 in their pocket, the consumers will likely spend this newfound windfall thereby stimulating the economy even more! Two benefits from one addition to the stimulus package - it doesn't get better than that!
Here are the details as I know them. For every home buyer that purchases a home this year, they will receive 10% of the value of the home up to $15,000 credit on their annual taxes. This is for a primary residence only and they do NOT have to be a first time home buyer! They also do NOT have to pay it back! This is a huge benefit to help encourage buyers to go ahead and make a purchase or LOSE the potential for a FREE $15,000.00 tax deduction!!
I also took a $160,000.00 house and with FHA financing and 3.5% down, the buyers would have enough credit to reimburse them for the down payment and make the payments for nearly a year. A FREE house for a year, would you take that?!
With the inventory we have on the market, the last thing anyone expects to hear is that we have a shortage. That may just be the case toward the end of this year when it comes to New Construction here in Nashville. With banks running scared on lending, builders are having a tough time getting bank loans to build more homes. Many of the small to medium size builders are working on selling their current inventory but are not able to start new ones. Here are some numbers:
Even though we have a decent month's supply currently on the ground, if the builders are not able to replace that inventory, it will dwindle down quickly to the least attractive homes. At that point, the large and cash builders will be in control and be able to charge more for their homes due to the limited supply. What should we do? Let buyers who want a new home know what is going on, and that NOW! is the time to make that decision before their choices are limited and costly!! We are the only education in real estate most buyers ever get, we must get out there and let them know what they need to know! This is a great time to buy and a great time to use a RE/MAX Elite agent, as we are historically among the best informed and most trusted agents in the world!
* Permission to re-publish courtesy Robb Campbell CEO RE/MAX Elite Brentwood TN*
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