Flexibility is the Key in Selling Homes Today
When it comes to selling homes, buyers are still around, but sellers need to be aware of the fact that home buyers are looking for more value for their money than they once were. The simple fact that there are some many homes on the market for buyers to choose from has resulted in many home buyers becoming extremely picky. As a result, if a home seller wants to move their home in this market, they must learn to be flexible when it comes to matters of money and time. The truth of the matter is that home buyers who are willing to buy and who are qualified to actually obtain financing are hard to come by today and that means that when you do come across one you must take care not to scare them off. Toward that end home sellers must make sure that their homes are priced appropriately. One of the biggest mistakes that a home seller can make is pricing their home according to what they think they need to clear on it. This might have been possible a few years ago, but not in today's market. Although no one wants to take a loss on a house, many home sellers are realizing that they need to be more objective when pricing their properties. A qualified home buyer is only interested in finding the best deal possible. If that means they can go two blocks over and buy virtually the same hose and save $10,000 or more in the process, they are going to do it. Before actually pricing property, it is imperative for home sellers and their agents to review the most up to date sales and listing information possible on the local market. Not only should homes that are currently for sale in the neighborhood be reviewed, but also homes that have recently sold as well. This will help to keep sellers grounded in terms of what they can realistically expect to make when they sell their home. This may mean that a home seller needs to take a loss but in some circumstances that might be better than facing foreclosure.The days of being able to sell a home for more than its market value are gone. At the maximum, a home should not be listed for more than its current value. Even at that point, sellers should be realistic and expect that their home may sell for less than that amount. It's not a pretty picture, but it is a realistic one. Acting promptly is another key to success in this market. A few years ago home sellers had the luxury of receiving multiple offers and being able to take a few days to mull them over. That's not the case today. If you are fortunate enough to get a bid on your property, respond promptly, in no more than twenty-four hours. If you wait longer than that you may just find that the home buyer has withdrawn their offer and moved on to greener pastures. Along those same lines, think long and hard before you make a counteroffer rather than accepting the offer that has been made on your property. Offers are hard to come by today and you must think about whether it is worth the risk of possibly losing that offer to try to get another few thousand. The basic rule here: a bird in one hand is better than two in the bush. You also need to make sure that you are accommodating when it comes to buyers. Be sure that your home is ready to be seen at a moment's notice. Do not place restrictions on when your home can be seen. Ask your agent about putting a lock box on the property so that it is always available to agents for showing. Make sure you are prepared for an early closing date when you do get an offer on your home. Finally, once you do have an offer, avoid the temptation to quibble over matters that are really small. If the home buyer really wants you to leave the stove, ask yourself whether it is worth it to fight over it if it means you might lose the contract. This is, unfortunately, a common mistake that many home sellers come to regret after the fact. Ultimately, you need to remember that in this market home buyers are hard to come by and keep. If you are fortunate enough to find one, try to be flexible enough to make sure that your deal closes smoothly.
Monday, April 20, 2009
Monday, February 16, 2009
Stimulus Advances With Tax Credit Changes The $790 billion stimulus package hammered out by House and Senate conferees late yesterday increases the home buyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years.
The NATIONAL ASSOCIATION OF REALTORS ® has sought removal of the repayment requirement because it discourages buyers from taking advantage of the tax credit. The three-year minimum holding period is a safeguard against speculators' use of the credit.
The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds.
The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.
Other provisions reportedly in the bill that could help housing markets and communities include:
*FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
*Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
*Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.
*Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.
*Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.
*Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations
*Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds
*Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.
Source: NAR, AP, Washington Post, New York Times, Bloomberg, and Wall Street Journal.
The NATIONAL ASSOCIATION OF REALTORS ® has sought removal of the repayment requirement because it discourages buyers from taking advantage of the tax credit. The three-year minimum holding period is a safeguard against speculators' use of the credit.
The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds.
The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.
Other provisions reportedly in the bill that could help housing markets and communities include:
*FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
*Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
*Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.
*Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.
*Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.
*Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations
*Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds
*Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.
Source: NAR, AP, Washington Post, New York Times, Bloomberg, and Wall Street Journal.
Friday, February 6, 2009
A $15,000 gift for homebuyers?
The U.S. Senate approves an amendment to the economic stimulus package that would provide a tax credit of up to $15,000 for homebuyers who purchase a primary residence in the coming year. But economists are skeptical tax credits will prove stimulative.
By The Wall Street Journal
more from WSJ.com
Is now a good time to buy a home?
How much you should spend on a home
A good time to buy a house — if you can
Congress is readying a stimulus package that could include some generous incentives for homebuyers.
The Senate added to the $900 billion stimulus bill on Wednesday a home purchase tax credit of $15,000, or 10% of the purchase price. If it's included in the bill that goes to the White House, that would represent a big gain not just for potential buyers, but also for the home builders and real-estate agents' groups that have aggressively promoted such a proposal for months as part of their "Fix Housing First" lobbying effort.
The second plank of that lobbying effort — a proposal for federally subsidized 4% interest rates on 30-year fixed-rate mortgages — isn't in the bill, but Senate Republicans are pushing for such a buy-down to spur home sales. Already, the Federal Reserve Bank has tried to lower interest rates by buying up securities backed by mortgages. However, after 10 straight weeks of declines, interest rates have edged up slightly in recent weeks.
Policymakers will also consider increasing limits on loans eligible for financing from government-backed mortgage entities to as high as $729,750 in the nation's most expensive housing markets. The stimulus bill that passed in the House last week included the provision.
Discuss: Would a $15,000 tax credit spur you to buy a home?
The Senate on Wednesday also approved $2 billion for state agencies to finance affordable housing.
Economists are skeptical that a builder tax credit or interest rate subsidies will stimulate the economy. Indeed, some argue encouraging the construction of new homes will only prolong the pain. "It is targeted not to the people who need help but an industry that wants a huge subsidy," said Thomas Lawler, an independent housing economist. "Why give an unbelievable gargantuan subsidy only to people who buy a home? What about renters who are in more dire straits?"
Proponents of a tax credit point to similarly structured subsidies that Congress approved in 1975. The program gave qualified buyers a 5% credit up to $6,000 and brought down interest rates by around 1.5%, to 7%. But critics say that the analogy is misleading because the U.S. was exiting a recession that had been induced by oil prices, not a slide in home values.
"By artificially increasing prices we are encouraging more building," says Harvard economist Ed Glaeser, who chided the Republican Party in a WSJ op-ed on Thursday for embracing interest rate subsidies.
By Nick Timiraos, The Wall Street Journal
By The Wall Street Journal
more from WSJ.com
Is now a good time to buy a home?
How much you should spend on a home
A good time to buy a house — if you can
Congress is readying a stimulus package that could include some generous incentives for homebuyers.
The Senate added to the $900 billion stimulus bill on Wednesday a home purchase tax credit of $15,000, or 10% of the purchase price. If it's included in the bill that goes to the White House, that would represent a big gain not just for potential buyers, but also for the home builders and real-estate agents' groups that have aggressively promoted such a proposal for months as part of their "Fix Housing First" lobbying effort.
The second plank of that lobbying effort — a proposal for federally subsidized 4% interest rates on 30-year fixed-rate mortgages — isn't in the bill, but Senate Republicans are pushing for such a buy-down to spur home sales. Already, the Federal Reserve Bank has tried to lower interest rates by buying up securities backed by mortgages. However, after 10 straight weeks of declines, interest rates have edged up slightly in recent weeks.
Policymakers will also consider increasing limits on loans eligible for financing from government-backed mortgage entities to as high as $729,750 in the nation's most expensive housing markets. The stimulus bill that passed in the House last week included the provision.
Discuss: Would a $15,000 tax credit spur you to buy a home?
The Senate on Wednesday also approved $2 billion for state agencies to finance affordable housing.
Economists are skeptical that a builder tax credit or interest rate subsidies will stimulate the economy. Indeed, some argue encouraging the construction of new homes will only prolong the pain. "It is targeted not to the people who need help but an industry that wants a huge subsidy," said Thomas Lawler, an independent housing economist. "Why give an unbelievable gargantuan subsidy only to people who buy a home? What about renters who are in more dire straits?"
Proponents of a tax credit point to similarly structured subsidies that Congress approved in 1975. The program gave qualified buyers a 5% credit up to $6,000 and brought down interest rates by around 1.5%, to 7%. But critics say that the analogy is misleading because the U.S. was exiting a recession that had been induced by oil prices, not a slide in home values.
"By artificially increasing prices we are encouraging more building," says Harvard economist Ed Glaeser, who chided the Republican Party in a WSJ op-ed on Thursday for embracing interest rate subsidies.
By Nick Timiraos, The Wall Street Journal
Saturday, January 24, 2009
Tell everyone you know!!! Welcome Home Grants available in March!! $5,000 FREE MONEY to use as a down payment or towards closing costs of a home!!! You don't have to pay this money back!! If you are interested or know someone who is email me at realtor_snyder@yahoo.com You DO NOT have to be a first time home buyer!!!
Thursday, December 18, 2008
Merry Christmas
Well my first posting!! I want to wish everyone a Merry Christmas first and fore most!
I am a Real Estate agent in Northwest Ohio so this will be geared more for this area. This upcoming year I will be posting many aspects to real estate. Mortgage rates, market stats for Northwest Ohio, listing and selling tips etc. I promise this will be an informative blog that will also have some cool things too!!
If you have any questions you would like addressed please email me and I will see what I can come up with!! I look forward to a wonderful new real estate year. It will be a prosperous one!!
I am a Real Estate agent in Northwest Ohio so this will be geared more for this area. This upcoming year I will be posting many aspects to real estate. Mortgage rates, market stats for Northwest Ohio, listing and selling tips etc. I promise this will be an informative blog that will also have some cool things too!!
If you have any questions you would like addressed please email me and I will see what I can come up with!! I look forward to a wonderful new real estate year. It will be a prosperous one!!
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