Will extending the Tax Credit set a precedent?
Many of you may be too young to remember the first time rebates were offered by the automakers. Those rebates are a part of the daily ad routine today. In today's market you can almost expect a rebate from the auto makers when buying a new car.
Some genius at some ad agency or maybe it was another genius in the automakers marketing department thought that offering a rebate would be just the thing to get people buying new cars again.
The idea did work. Auto sales began to soar with some of the really great rebates that were offered.
The down side is that the buying public, being pretty savvy as they are, stopped buying when the rebates expired.
So guess what? The automakers had to continue to offer rebates to keep the product moving. A precedent had been set. They offer rebates even now. The public expects it. The public even demands it.
Is the First Time Home Buyer Tax Credit setting the same sort of precedent?
If it is extended will a precedent have then been set that will keep many buyers out of the market when it expires again, waiting for its return?
I already have prospects waiting to see if it returns. Even some owners of existing homes are now thinking about waiting to list just in case it might have an affect on their sale if the credit is extended to existing home owners.
What do you think? Tax credit good or bad?
