Just in case you’ve been hearing a lot of good real estate news lately, here’s what it means to you, the home seller.
Yes, the market conditions have improved over a year ago. Contract sales have increased. Buyers are buying. But there is still much inventory to sell off before we reach the supply and demand levels at which home prices begin to increase. The good news is that we are at an 8 month supply level now, compared to a 12 month supply at the start of the year.
While contract sales have steadily increased for the first 6 months of 2009—the first time in 3-4 years–so too has the inventory, as pent-up sellers move to the market. The forecast is that following a long flat period, during which inventory is sold off at “bottom” prices, we will slowly see a return to a normal balance of supply and demand and begin to see increases in home values by 2012.
Therefore, for the long haul, price remains the biggest advantage a seller can offer over the competition. All challenges and objections can be overcome with price. In other words…the best price wins.
But if you have your heart set on 2005-2006 peak home values, hang in there…we expect prices to return to peak levels by 2020.
Feel free to contact me for your real estate needs. I can be reached at 973-543-7400 ext. 19 or ampyontek@turpinrealtors.com.
Posted by: 
Alaina May Pyontek
While the real estate market is slow, there are three bright spots that are working in a buyer’s favor. Lower prices and lower mortgage rates are two well-known factors. But the tax credit that is available for first-time home buyers is not as well-known or understood. This law is far more advantageous to first-time home buyers than the first law that was passed in 2008 since it doesn’t require the credit to be paid back if you keep the home for three years.
Following is a brief summary and explanation of this positive factor. This writing does not pretend to discuss all qualifications, specifics, and provisions of the law and should not be used as any type of legal or tax advice. (As with all legal and tax related issues, you should consult your tax preparer or lawyer before doing anything).
Congress passed an $8,000 maximum tax credit in February in The American Recovery and Reinvestment Act of 2009. The credit is equal to 10% of the purchase price of the home up to $8,000. If you buy a home over $80,000, you can still qualify, but partially. This Act applies to purchases (transfers of title) of a home (primary residence) from 1/1/09 to 11/30/09 for all first-time home buyers as identified in the law.
Qualified buyers must meet income restrictions. Single buyers can earn up to $75,000 annually and joint tax-return couples can earn up to $150,000 annually. Buyers earning over that may qualify for a partial credit. Your tax preparer can give you specific information.
This is the time to buy!
Posted by: 
Mary Jane Benedetto
In my first blog in this series, I talked about how homes and sellers are competing with each other in this buyer’s market in three ways. In the last segment, I talked about price.
Presentation is the second competitive factor. Today, buyers are less willing to forgive anything negative in their eyes since there may be another home that does not have that negative!
Roofs that need repair, water in the basement, or neglected landscaping are powerful deterrents to buyers, even if you have the perfect floor plan! Before closing, the buyer will schedule a home inspection. The results will point out any issues and the seller will have to either fix them or negotiate. The ultimate closing price will fare better if any problems are taken care of up front.
Other negatives might also include strong decorating styles, messy housekeeping, wood work in need of paint, smells, or difficulty viewing a property. The main rules here are to simplify and make your home spacious and neutral. You will end up throwing away lots of unnecessary things before you move, so why not do it now? Buyers need to imagine things such as where their furniture will go, where will the TV go, and how can their lifestyle fit in to your home. Don’t make it complicated! If you are a seller, your agent will be able to tell you what needs to be done.
What is the third way in which homes and sellers are competing with each other? Check back here soon for Segment Three of this series!
Posted by: Mary Jane Benedetto
In these dicey economic times, there are buyers who truly want to buy a new home. They have a mortgage pre-approval, a good idea of where they want to live and are looking faithfully at homes with a buying mindset. They are perfect buyers except for one small detail: they don’t want to own two homes because they aren’t sure they can sell their current home quickly!
These circumstances are really no different than normal times. It’s strictly a matter of confidence: buying and selling a house concurrently used to be the rule, as all involved had confidence it would all work out. But today, different buying strategies and selling strategies must be used. In effect, two hats must be worn following one rule: It’s a buyer’s market!
The serious buyer or seller will find a market and an inventory very different than a few years ago. All are to the buyer’s advantage while some are to the seller’s advantage! Some of these differences are a more leisurely pace of viewing homes, longer “Days on Market” than previously seen, more homes to be seen and judged, quicker and bigger price reductions, and buyers and sellers who are either realistic or idealistic. Homes and sellers, instead of buyers, are now competing with each other!
How do they compete? Bookmark this website and check back often!
Posted by: Mary Jane Benedetto
