Though many builders are taking a wait-and-see attitude before offering new incentives to replace the expired homebuyer tax credits a few of the larger brokerages are offering private-sector perks to entice house hunters to the bargaining table.
Coldwell Banker has started the Buyer Bonus Sales Event, which it describes as a “promotion intended to build on the momentum of the” federal tax credit. It began May 1, the day after the tax credit qualification deadline expired.
Homesellers participating in the program offer a credit of up to 3 percent of a home’s purchase price, to a maximum of $8,000. Buyers must sign a contract before July 31 but there is no deadline on closing the deal.
Coldwell Banker’s Web site lists homes participating in the program and so far there are 18 in the metro area.
Realtor Scott MacDonald, president of Re/Max Gateway in Chantilly, said the federal tax credits were only one of the factors in the recent pickup in area home sales and that might be why there has not been a push to craft programs to replace the tax credits.
“Low interest rates, affordable home prices, desire to own versus rent were the main reasons why [buyers] decided to purchase,” MacDonald said. “A good deal is a good deal.
Century 21 has said homeowners who list their properties with the company by June 30 are eligible for an $8,000 prize. The District of Columbia and other jurisdictions continue to offer support for first-time and moderate-income homebuyers.
District-area Realtors and mortgage brokers are hopeful the end of the government’s home-buying incentives will not slow the robust local real estate market.
According to the Northern Virginia Association of Realtors, April sales were up 16 percent compared with April of 2010, while the number of days a home spent on the market dropped by nearly half.
At Weichert Realtors in Fairfax sales are up 21 percent over last year, according to manager Karen Trainor. The company has no plans to offer any incentives because sales are strong.
“We are seeing multiple contracts on listings and sales escalation agreements,” Trainor said. “I do see the occasional closing costs being paid by the seller. But overall, when priced correctly, homes are selling briskly.”
Sweth Chandramouli, a Realtor with Keller Williams Realty and a mortgage broker with HomeFirst Mortgage Corp, said he is “seeing almost no movement forward on the private sector offering incentives to replace the tax credit.”
“The people who were on the fence … and who were swayed by the tax credit were the ones who purchased earlier in the year,” said Chandramouli, who co-chairs the Real Estate Finance & Settlement Forum at the Northern Virginia Association of Realtors. “Purchase volume has stayed strong recently … because the job situation in the D.C. area is improving and buyers are recognizing the good values that are available.”
