Archive for the ‘Real Estate Transaction Process’ Category

Yes, 2010 tax assessments have been published. And yes, they are lower than they were last year.  Mine dropped almost 7%.  But this does not mean that all listings currently on the market are overpriced! (okay, I will admit that there are probably lots of listings on the market that are overpriced, but that’s not because of the 2010 tax assessments and we can talk about that later.)

Tax assessments in Basking Ridge follow the market – NOT the other way around.  I wrote about this in June and I do often analyze sale price to tax assessment when working with buyers and sellers – either to set a list price or to make an offer.  But – we only have past data to look at.  We KNOW how properties are selling relative to 2008 and 2009 taxes, we do not know yet how properties will sell relative to these new 2010 tax assessments.  I have told all of my current seller clients that my pricing recommendations will not change just because we got our new green tax cards.  And to any potential buyer who brings up the new assessment, my counter offer will be this: “we cannot base a current sale price on the new 2010 tax assessments, we can only look at what we know – which is relative to 2009 tax information, not 2010.” 

Another angle – Jeffery Otteau, at his last seminar, stated that prices have dropped approximately 4% this past year.  My tax assessment dropped 7%.  There’s a 3% discrepency there – why would I base a negotiation on the lower number?  I’d rather base it on recent comparable sales.

Visit Basking Ridge Real Estate for information on the value of your Basking Ridge home – relative to current tax assessment or not.

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I had another closing this past week – on Friday.  A few things to remember for your next closing: if at all possible, don’t schedule it on a Friday afternoon.  Don’t schedule it on the last day of your rate lock and don’t schedule it on the last business day of the month.  And whatever you do, don’t schedule it on a day that meets all three put together – especially if you are first time home buyers who are already a little anxious about the whole process! 

My client’s lender entered an incorrect code on the paperwork and all the loan documents arrived at the attorney’s office on letterhead from a bank different from the bank that wired the money!  It all had to go back and be redone – and then there was trouble with the email so the package didn’t arrive, the seller’s attorney was waiting, the seller lived in NYC and needed to get on a train.  Tensions were mounting!

Alas – all documents were finally faxed by 4:30, the seller arrived at 4:45 and we were all on our way by 5:15.  First time home buyers with house keys in their hands and smiles on their faces!

Phew!

Please allow me to help you be as happy as my latest new homeowners are today!  Visit my website to search homes for sale in Basking Ridge or in Bedminster; contact me directly if you are interested in any other areas – i can help there too!

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You are invited to a free Home Buyer Seminar Saturday, January 23rd at 11:00 in my office at 22 Henry Street in Basking Ridge. I will be there along with other real estate professionals, including my broker, our mortgage representative and a real estate attorney. We’ll address local market conditions and buyer incentives, including the Federal Tax Credit as well as current mortgage products. 

If you want to get ahead of the game, click here to search homes for sale in Basking Ridge as well as all other areas covered by the Garden State MLS.   Space may be limited, so please RSVP today by calling me directly at 908-432-0318 or emailing me at jennifer@jenniferblanchard.com. Please let me know how many will attend and if you have can stay after the seminar or come back on Sunday to get started!

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***FINAL UPDATE***: President Obama signed the extension today!!  

The law extends unemployment benefit insurance as well as the tax credit for first time home buyers and adds a credit for repeat buyers.   Income thresholds have been raised and the deadline to be under contract has been extended through April of 2010 – transactions must close by June 30, 2010

Military personnel get extra time – they can still take advantage of the credit when they return home.

Senate Approves Extended U.S. Homebuyer Tax Credit

By Brian Faler

Nov. 4 (Bloomberg) — The U.S. Senate approved a $45 billion plan to expand a tax credit for first-time homebuyers, extend jobless benefits and provide tax refunds to money-losing companies.

Lawmakers voted 98-0 for the measure, sending it to the House, where Majority Leader Steny Hoyer of Maryland said in a statement it will receive a vote as early as tomorrow. The bill then would be forwarded to President Barack Obama for his signature.

The plan would be the first major extension of provisions in February’s economic stimulus plan. The $8,000 homebuyers’ tax credit, slated to expire this month, would continue until April 30 and be expanded to include people with higher incomes and some who already own homes. That would cost about $10 billion in the fiscal year that began Oct. 1, according to Congress’s Joint Committee on Taxation. 

The Treasury Department estimates that more than 1.4 million Americans have taken advantage of the homebuyer credit at a cost so far of about $10 billion.

Increased Credit

The Senate plan would allow homebuyers who have lived in their residence at least five years to receive a $6,500 credit. Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify. That is up from the current $75,000 limit for individuals and $150,000 for couples.

Those buying homes worth more than $800,000 wouldn’t be eligible for the credit. Those who sell their new home or stop using it as their main residence within three years would have to repay the credit. 

Last Updated: November 4, 2009 18:03 EST

(Excerpts taken from www.bloomberg.com)

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I just answered a question on Trulia Voices – a potential home buyer is wondering if she should meet the seller’s counter.  The property was listed for $350,000, they offered $310,000, got a counter for $335,000, responded with $317,000 and the seller has come back with $325,000.  I answered as follows: 

“How far is $325,000 from the comps? Part of your decision needs to include consideration of how much YOU like the property and how long you plan to live there. I think many buyers have lost sight of the fact that their purchase is that of a HOME primarily and an investment secondarily. This change in the market is not forever, we’ve had down markets before and real estate tends to come back every time. Historically appreciating between 5 and 6% per year. If the purchase price isn’t too far off from the comps, then I’d say that the difference between $317k and $325k is not significant enough for you to walk away from the what could be the home of your dreams! (now – if I was counseling the seller, I’d use the same tactic – to lose a deal over less than $10k in today’s market is plain nuts!). You can also put a clause in the contract that gives you an option to renegotiate or to walk away if the property doesn’t appraise for its purhcase price.”

In today’s market we are seeing all sorts of tough negotiations.  Even in an area with a low market absoprtion rate – where the numbers indicate a seller’s market – the buyers still have the upper hand and the seller really needs to rely on the negotiating skills of their agent to get them the best deal possible.  That seller also needs to understand that although the market may be improving, the property needs to appraise.  Bank appraisals are based on most recent closed sales – it still might be hard to get a higher appraisal, until there is more data to support the stronger numbers.

There have been lots of questions posed recently on Trulia Voices regarding list price vs sale price vs offer price.  I think that buyers need to recognize that offers aren’t necessarily relevant to list prices.  List prices are based on all sorts of things: what the seller “needs” to make their move, to cover their mortgage, to recoup their improvements, or whatever they think the value of their home is.  All of those things are very important to the potential seller, but have little if anything to do with the actual value of the property.  A listing agent’s fiduciary responsibililty is to provide a seller with all the information needed to set a realistic list price – that doesn’t always mean that the property is listed realistically.  Offers should be made based on the value of the property, not relative to the list price.

This goes both ways – sellers who are listed unrealistically need to understand what the market will bear. Feedback from buyers and agents will start to paint the picture, and, if they are lucky enough to get an offer the appraisal will provide the final check and balance.  Buyers who are looking for a deal also have to understand that if a property is priced fairly (and there are absolutely listings out there that are priced well), it may fetch asking price – or above in some cases – and if it is a home that they really want, then their offer has to be strong.

Contact me directly for more information on how my negotiating skills can work for you! Visit my Basking Ridge website to search homes for sale in Basking Ridge and surrounding areas.

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I recently attended a Weichert sales meeting at which a local real estate attorney was a guest speaker.  He was there to help us help our clients navigate through short sales.  He is one of the only attorneys that I know of who has a dedicated staff member to communicate with the banks and keep on top of each transaction as it works its way through the myriad of steps at each bank. 

If you are in a position where you think foreclosure is the only way out – please contact me first – I can put you in touch with the right resources to help you make that decision.  A short sale may be right for you instead.  If that is the case, it is imperative to get the house on the market as soon as possible since the first thing on the following list is an exectued contract of sale!

To move forward with an attorney’s support for a short sale, you will need to have the following documents:

1. Copy of fully executed contract.  Don’t worry if the negotiated sale price is lower than the amount of your mortgage.
2. Hardship Letter.  This is writted by you, detailing the hardship you are facing in keeping up with your mortgage payments
3. Copy of the last two years tax returns
4. Copy of the last three months pay stubs
5. Copy of the lat two months of bank statements
6. Written authorization for your attorney to contact the bank and negotiate the short sale
7. HUD-1 Statement (the attorney will prepare this)
8. Copy of the last two months mortgage statements (for the first and second loan if applicable)
9. Copy of the listing agreement
10. Complete list of all debts including monthly expenses
11. Copy of your 401k and retirement plan(s) statements
12. Market analysis prepared by your realtor
13. Commission bills provided by your realtor for both the buyer and seller agent
14. Back title: includes your deed, the survey and your title insurance policy

The sooner you have all of this information compiled and sent to your attorney, the better. If you want to contact the bank before hiring an attorney you can do that too – the department you want to contact is Loss Mitigation.  I strongly recommend using an attorney with EXPERIENCE in this process – there are lots of phone calls required, things move very slowly and then all of a sudden very quickly.  It is often difficult to stay on top of where things are in the process.  Except for the initial fee, I believe the balance of of the attorney fees as well as the real estate commission will be calculated into the total debt that will be resolved by the short sale.

Information on this post was provided by Rafael J. Betancourt of Triarsi, Betancourt, Walsh & Wukovits, LLC a law firm in Cranford, NJ.

If you are considering a short sale, click here for an estimate of your home’s value in today’s market.  This information, along with your mortgage history will help you determine the best course of action.

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You are invited to a free Home Buyer Seminar this Saturday, September 26th at 11:00 in my office at 22 Henry Street in Basking Ridge.

I will be there along with other real estate professionals, including my broker, our mortgage representative, a real estate attorney and a certified public accountant.  We’ll address local market conditions and buyer incentives, including the Federal Tax Credit as well as current mortgage products.  We will also be spending some time on short sales and foreclosures and we will be available to answer any questions you may have.
 
First time buyers hoping to secure the tax credit – please be aware that you need to get started soon in order to meet the closing deadline.  It takes time to find, negotiate and move your transaction to a successful close.  The closing deadline for the tax credit is on or before November 30, 2009.  Believe it or not, that is right around the corner!! In fact, most banks have already set deadlines for mortgages to be registered to ensure processing in time for the deadline to be met. If you want to get ahead of the game, click here to search homes for sale in all areas covered by the Garden State MLS.

Space may be limited, so please RSVP today by calling me directly at 908-432-0318 or emailing me at jenniferblanchard@weichert.com. Please let me know how many will attend and if you have can stay after the seminar or come back on Sunday to get started!

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The $8,000 tax credit for first-time buyers passed by Congress earlier this year has created an excellent opportunity for those wishing to capitalize on today’s affordable housing market. Yet, with the average real estate transaction taking 45-60 days to complete, buyers wishing to claim the $8,000 tax credit should be under contract to purchase a home within the next three weeks in order to make the Nov. 30 deadline.

If you are interested in taking advantage of this large financial incentive, here are some steps to take to get the ball rolling on a home purchase:

• Engage an expert. If you have not done so already, speak with a real estate sales professional familiar with the area in which you would like to purchase a home. He or she can help you with your home search and all of the details necessary to complete your purchase.
• Visit open houses. Check the Sunday real estate section and browse online to map out a few Open Houses to visit this weekend. This allows you to easily see a variety of homes in your price range, and viewing homes in person can help you narrow down the options.
• Attend a homebuyers seminar. Register for Weichert’s “Know When Opportunity is Knocking” seminar taking place in many Weichert offices on Saturday, Sept. 26 at 11:00 a.m. The seminar is designed to educate first-time buyers about the $8,000 tax credit and the other benefits of buying a home in the current market.  Contact me to reserve a seat at this great seminar.

Email me for more information on the benefits of owning a home or click here to search what is for sale in and around Basking Ridge.

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As a seller it is important that your listing be ALL OVER the internet!  And, it needs to look great!  Even the worst websites are used by the general public; you never know where your potential buyer will be looking so your listing may as well be on as many websites as possible.  In addition to building a website for each of my listings – which gets used in all marketing materials – all of them are advertised as follows:Contact me for more information on how I market my Basking Ridge inventory.

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This is a question that only YOU can answer!  The $8,000 tax credit sounds very appealing – and it certainly is a GREAT deal!  Especially while prices are still low and interest rates are still manageable.  Owning your first home is a big step, and of course it is going to be a little stressful going through the process – finding a house, making an offer, feeling confident while negotiating, understanding the paperwork, writing the checks – but it should also be fun and exciting.  Iwant you to sleep at night – or not sleep because you are excited but not because you are worried sick over it!  

If you are feeling like the people in any of these videos, it is time to contact me.

If you aren’t quite there yet, that’s okay too. I’m still happy to chat with you – sometimes I work with people for years before they decide to make a move.  One of my hallmarks is that I work at YOUR pace; if you need information, I’m here to provide it.  If you want to see some homes, we can do that too.  I can send you listings and answer questions until you are comfortable and ready for that next step!

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