Friday, March 19, 2010
Wednesday, February 17, 2010
Education point #1: For a Buyer Agent or for a buyer without an Agent: When presenting an offer to a seller, there are several relevant points you need to know. Today, I will gladly touch on Number 1.
1. If YOU need closing costs paid or concessions, please know that your Agent (or you) should establish what you consider a fair offer price based on sold comparables and ADD those items needed atop your "fair offer". It will never, never work to offer a low ball price then ask for the moon. YOU have to have something to offer, thus the name..."Offer". If you have HIGH money down, or cash, THEN you can offer legitimately lower than fair market value. If you have the ability to effect a quick closing, or even are able to show you have pockets by needing NO closing costs paid by the seller THEN you have some bargaining power. If you NEED assistance, then you must ensure the seller has a REASON to make those concessions to you. It is GIVE and TAKE in contract negotiations. For the seller, it all comes down to what they are left with at the closing table, better known as NET. You cannot take from the front pockets AND the back pockets then look surprised when the sellers are not agreeable.
If you are asking them to give something to you or help you in order to make the transaction work, then you must give in kind by means of Sales Price, or other items important to the seller. It is all based on good faith and best effort to show serious intention and ability to see the transaction to close.
Happy Negotiating!
1. If YOU need closing costs paid or concessions, please know that your Agent (or you) should establish what you consider a fair offer price based on sold comparables and ADD those items needed atop your "fair offer". It will never, never work to offer a low ball price then ask for the moon. YOU have to have something to offer, thus the name..."Offer". If you have HIGH money down, or cash, THEN you can offer legitimately lower than fair market value. If you have the ability to effect a quick closing, or even are able to show you have pockets by needing NO closing costs paid by the seller THEN you have some bargaining power. If you NEED assistance, then you must ensure the seller has a REASON to make those concessions to you. It is GIVE and TAKE in contract negotiations. For the seller, it all comes down to what they are left with at the closing table, better known as NET. You cannot take from the front pockets AND the back pockets then look surprised when the sellers are not agreeable.
If you are asking them to give something to you or help you in order to make the transaction work, then you must give in kind by means of Sales Price, or other items important to the seller. It is all based on good faith and best effort to show serious intention and ability to see the transaction to close.
Happy Negotiating!
Friday, December 11, 2009
Homebuyer Tax Credit Extended and Expanded
Information has been poorly disseminated regarding the extension and expansion of the tax credit for home buyers. It is my best advice to consult a Tax Attorney or your CPA to determine your specific circumstances. However, the changes brought forth are encouraging and exciting for potential buyers.
Here is the simplified version of who it includes.
At a Glance:
FIRST TIME BUYERS
Credit: Equal to 10 percent of the home's purchase price, up to $8,000
Who Qualifies?
* Those who haven't owned property in the last three years
* Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
* Must be at least 18 years of age to claim credit
* Purchase price must be $800,000 or less
Deadlines:
* Have until April 30, 2010, to enter into a contract for a home purchase
* Have until June 30, 2010, to close on the purchase
CURRENT HOMEOWNERS
Credit: Equal to 10 percent of the home's purchase price, up to $6,500
Who Qualifies?
* Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
* Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
* Must be at least 18 years of age to claim credit
* Purchase price must be $800,000 or less
Deadlines:
* Have until April 30, 2010, to enter into contract for a home purchase
* Have until June 30, 2010, to close on the purchase
PLEASE NOTE: The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation. Purchaser must attach documentation of purchase to tax return.
In conclusion, there is still so much information regarding this important topic. I will continue to post updates and address your questions as I receive them. Thank you for your continued trust.
Here is the simplified version of who it includes.
At a Glance:
FIRST TIME BUYERS
Credit: Equal to 10 percent of the home's purchase price, up to $8,000
Who Qualifies?
* Those who haven't owned property in the last three years
* Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
* Must be at least 18 years of age to claim credit
* Purchase price must be $800,000 or less
Deadlines:
* Have until April 30, 2010, to enter into a contract for a home purchase
* Have until June 30, 2010, to close on the purchase
CURRENT HOMEOWNERS
Credit: Equal to 10 percent of the home's purchase price, up to $6,500
Who Qualifies?
* Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
* Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
* Must be at least 18 years of age to claim credit
* Purchase price must be $800,000 or less
Deadlines:
* Have until April 30, 2010, to enter into contract for a home purchase
* Have until June 30, 2010, to close on the purchase
PLEASE NOTE: The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation. Purchaser must attach documentation of purchase to tax return.
In conclusion, there is still so much information regarding this important topic. I will continue to post updates and address your questions as I receive them. Thank you for your continued trust.
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