* The transfer tax waiver for first-time homebuyers occurred as a caveat to the change legislated where the state granted a higher share of the transfer tax revenue to the counties. Now, New Castle County wants to go back on the agreement.
* Any change in the transfer tax will negatively impact the market and further delay stabilization of real estate values.
* While some may argue that an individual who can afford a $400,000 first home should not get a break, it really amounts to government manipulation of the value of private property.
* The "cliff" of a transfer tax waiver vs. a non-waiver means this legislation will directly affect property values. As an example, a seller with home worth $400,000 will have a large part of their target market only willing to pay under $400,000.
* Any decrease in the median home price means a decrease in transfer tax revenue across the board and will likely not bring NCC the anticipated revenue.
* Once any change is enacted, it becomes too easy to lower the amount associated with a waiver in the future.
* New Castle County already takes more transfer tax revenue than both Kent and Sussex Counties. NCC presently only waives the transfer tax for first-time buyers whereas both Kent and Sussex County waive the tax for both the buyer and the seller in a first-time homebuyer transaction.
* Many first-time buyers are taking advantage of short sales in this market where extra settlement cash is not available.
* We understand the need for additional revenue, but basing it on unpredictable sources is very shortsighted and does not address the need for sustainable revenue sources.
* According to research from the National Association of REALTORS