Home sellers, please don't do this
I stumbled across this Craigslist ad for a Pennsylvania home near the Maryland line, and I was amused/appalled to see how the asking price was presented:
In the headline: "$141900 / 3br - *After $8,000 FTB Rebate!"
In the first sentence of the listing: "$141,900 MAY BE YOUR NET COST AFTER FIRST TIME BUYERS TAX REBATE!!* *You must verify the amount of tax rebate you qualify for with your tax preparer."
The actual asking price -- $149,900 -- doesn't appear in the ad until the eleventh sentence.
Now, I understand a seller's inclination to point out that first-time buyers are eligible for eight grand back from Uncle Sam. But do we really want the housing market to sound like a "$69.99 after mail-in rebate!!" printer advertisement?
Posted by Jamie Smith Hopkins at 8:00 AM | Permalink
| Comments (7)
Categories: First-time buyer tax credit
Categories: First-time buyer tax credit
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Comments
Why the heck not, Jamie? That's what it is!!! Except that the rebate in this case is out of our pockets...
Posted by: Darwin Rules | December 2, 2009 9:22 AM
Wow! I agree completely. Guess the housing market is still plagued by unsavory characters. How about the ubiguitous "Yours for just $19.95!!! Call now!" That should go over well.
Posted by: lisa | December 2, 2009 10:18 AM
Darwin Rules, it's about expectations. Since every other listing shows the asking price as the actual asking price, showing the asking price as the asking price minus the $8,000 tax credit seems disingenuous, or at least confusing to potential buyers. But at least the seller put the asterisk explainers immediately afterward rather than at the bottom in fine print.
Posted by: Jamie Smith Hopkins | December 2, 2009 10:27 AM
I don't see how this is any different than real estate agents that list short sales at prices they know the bank won't accept or plaster $8k tax credit messages all over their listings, TV, and newspapers. And then there's the banks that do the reverse of this by pricing their REO's above what they'd actually lend out on the property. Sure, it's sleazy advertising, but it is rather inventive for an FSBO. I don't like this kind of advertising anywhere since I'm not a fan of rebates...particularly the mail-in or online varieties.
Posted by: BigDragon | December 2, 2009 5:27 PM
Good point about the short sale asking prices that are seriously wishful thinking, BigDragon. And I'm with you on the rebates.
Posted by: Jamie Smith Hopkins | December 2, 2009 6:08 PM
I would like it even better if they could offer free window washing to qualified buyers.
Posted by: Don | December 3, 2009 6:15 PM
I personally think such listings should be illegal, as well as the similar car ads, e.g. with a "college credit", for which no one will qualify, or "includes $5000 trade-in". Truth in advertising, anyone?
If I was a seller, most certainly I wouldn't lower myself to such cheap and shameful practice. Neither would I work with a realtor who would.
Posted by: Jelena | December 8, 2009 2:04 PM