Apathy Gap

One of the largest issues builders content with is the real demand for a product or amenity to be provided in a home versus the consumers actual desire to have the amenity and their willingness to make an actual payment for the product. Energy efficient options is the latest items being touted by builders as a real means by which a consumer can spend money today and continue saving money for years to come be building a more efficient home. However, the actual demand by the consumer continues to baffle me. Buyers will almost always choice to upgrade to a more visually apparent option, rather than investing the money in an option hidden behind the wall. This story I ran across last week continues to tell the story that Americans memories are short.
http://www.builderonline.com/green-building/energy-pulse-survey-homeowners-in-2009-prefer-appearance-over-energy-efficiency.aspx?cid=BLDR091105002#

House Tax Credit Passes Thru Congress, President Set to Sign Bill

The long awaited Home Buyer Tax Credit Bill finally passed Congress. I am going to include a link to allow folks to read about the details at the end of this entry. The measure included one caveat that I was not informed of by my Congressional friends, a QUICK trigger for expiration. I was looking for a 12 month extension, instead we got six. This will compress a ton on action into a very short window, including during the typically slow holiday season. These are the critical dates: To receive the credit, buyers must sign a purchase agreement by April 30, 2010, and close on the home by June 30, 2010. This means a builder has to start the home by January to insure the fact the purchaser can get the home closed on time to take advantage of the credit. To start a home in January, a to be built home has to be contracted in Nov or early Dec and have all credit and loan approvals by the end of Dec to make the time-frame work properly. Good Luck to all the lenders and title companies! A lot of midnight oil will be burned in June. Another side effect, the already drastically reduced number finished vacant homes in the Fort Worth market, in the affordable price points, is going to get smaller and prices will not be negotiated. We are starting a flurry of inventory homes to take advantage of this credit, but we have the tremendous problem of not being able to get any of them done prior to selling them......Off to the races we go.
http://www.builderonline.com/legislation/breaking-news-congress-extends-expands-housing-tax-credit.aspx?cid=BLDR091105002

Another link for info on the tax credit:http://www.federalhousingtaxcredit.com/2009/index.html

Tax Credit Time

The final vote still hasn't taken place, but all signs indicate that the Senate will vote shortly. This link provides what appears to be the final agreement of the bill that is coming to the floor as part of an unemployment insurance extension. It is good news for the existing homeowner as they will be provided the opportunity to save some money. The biggest driver and need in the Real Estate market is the absorption of existing, foreclosed, or inventory homes brought on by too many years of fake credit standards and over indulgent bankers and builders. Here's to a prosperous coming year for anyone needing to sell a home in a difficult market! Remember, price your home to sell to a realistic market value, then be willing to negotiate to a FAIR price. With this philosophy, folks have a good chance of fielding offers on their home. Those who ask too much and/or cannot or will not negotiate will find difficulty in this market.
Thanks Yahoo! for the concise information:http://news.yahoo.com/s/ap/20091029/ap_on_bi_ge/us_homebuyer_tax_credits