Buy A House That's NOT for sale!

So, you've looked and you've looked, and you've looked. Your agent is great. Stays in touch and keeps feeding you leads. But nothing seems to do the trick.

If your agent hasn't already done it let's start thinking about buying a house that ISN'T for sale.

That's right. ISN'T for sale.

What is the harm with approaching the owners of a house that is not on the market and suggesting that if they ever gave any thought to selling their home maybe we have a buyer? I tell you I've done it. And more often than not I have gotten no response. And on occasion I've been more or less told to take a hike.

That's probably why you don't want to "cold call" homeowners and it's also why you should put this project in the lap of your agent... But if you can I.D. a couple of houses that you think you might be interested, your agent can "go to work" !

Your agent will know the way to put together a pitch that will illicit a response... say and explain the right things, so as to pique their interest, and hopefully describe your dilemma and situation to get you an opportunity.

You know what's good about this? You aren't in competition with other buyers. It's a quiet and less stressful sequence of discussions and meetings.

It will never be a "slam dunk". Who knows if it will work. But, hey.... you'll never know unless you try.

What Do You Want ?

What is it you REALLY want from your agent ? You want them to sell the house, right? Or find you the best deal there is around, as the case may be! Right?

Now, if you think for one moment your agent is not all about that, then switch. But, who do you switch to? Let's face it, we all have good days and bad days! There are days when I feel like my clients have really gotten EVERYthing from me. And there are days when I maybe could've done more...

So I'm not suggesting that your agent get fired because one day he or she didn't call you back in less than ten minutes.

But, here is what I think you should expect. Your agent should use all the resources available to them. RealtyUSA agents have fantastic marketing department that can design and publish top notch pieces and campaigns. The Internet and web offer countless opportunities to get your property promoted, not to mention there is an incredible database of homes for you as a buyer! Automatic emailing should be the norm when you're looking for a home. How about single property websites... try this one: www.31keeler.info

How about Facebook? How about Linkedin ? Is your agent utilizing all the servers such as Trulia, Yahoo!, MSN.com ,etc.

Here's a sample of some work done by one of my agents here in Loudonville, New York :

http://video214.com/play/DXUdHcf5wVChQnGaArIUdA/s/dark

He's putting this up in places like YouTube.. Facebook, Google, etc. Your agent can do this sort of thing, but the next step is understanding how to use keywords and methods that will garner the most views possible!


There are many services available to assist real estate agents in helping to promote their listings (read: YOUR house)... These opportunities also are there to help agents find properties for their clients!

So what do you want from your agent? You want them to understand today's technology and resources... to increase your chances of a satisfactory outcome in your real estate endeavors.

That's what you want! Demand it!

Didn't take advantage of the government's home buying credit? Might be GOOD NEWS!!!

Believe it or not I'm being told that the persons who did not take advantage of the Home Buyer's Credit may actually fare better than those who did!

On a 200,000 purchase the interest rate has dipped low enough that the difference may have save those who did NOT partake as much as $18,000 over the life of their 30 year mortgage!

Who'd of thunk it!!!???

Move the date!

Aren't you glad you didn't hit the panic button?

I'm talking to you folks who bought a house this spring before April 30th and were told you could get the government's tax credit AS LONG AS YOU CLOSED BEFORE JUNE 30th! So what did you do? You kinda rushed and thank God! You got an offer accepted by April 30th!

Whew! But wait... a new stress thing! You need to close by June 30th! OK, sez you. But it wasn't really up to you was it? Your bank had to get their stuff done in order for you to close. Really almost had NOTHING to do with you at all.

So you kept in touch with the bank.... "are we OK ?"... "did we get the committment yet?"... "are we 'cleared to close'?"... "hey that June 30th date is getting close! We are depending on that $8,000 credit you know!"...

There were many out there who were sweating bullets! Yup, they didn't think the bank was going to get the file closed in time! Oh no!!!! In fact there were a few that were threatening to cancel ther contract because of this.

What's going on ???? Well, any time a deadline is imposed, everyone and their brother is "pushing" toward that date! The banks were "overwhelmed"! So the powerful banking world lobbied our fearless leaders and asked for a NEW date.

So guess what? Here's what your government is saying now, " As long as you really did have a contract by April 30th... we are going to extend the deadline... Your bank will have until September 30th!"

Well, it's not totally OK yet... the House has to approve this measure... but the Senate already did... Keep your eyes and ears open! Your government is all over it!

Good luck my friends!

Do you know what the BIGGEST stumbling block is?

One word: Appraisal.

Yup. That's the big stumbling block. We get a buyer that wants to buy. We have a seller that is agreeable to the price proposed by the buyer. We do all the inspections. We apply to the lending institution The bank sends out the appraiser. The appraiser reports that they can't "find any suitable comps".

Now what? The bank sends a letter to the buyer and tells them that the mortgage application is denied because the house is not worth what the buyer and seller (and presumably two real estate agents) thought.

Rules and regulations tightly monitor and restrict what the real estate agents can do with the appraiser in the lines of saving the transaction. One of the most frustrating factors is that the appraisers are told they can't go any further back than 3 months. In many areas this means they really DON'T have any similar sales to use.

About the only solution is that the seller agrees to take the lower appraised price. If they can. Often they can't. Often they owe too much money. they'll end up upside down as they say in the business!

This recent re-occurrence is pretty difficult to avoid and predict.

So what can be done to safeguard against it ? My sources at 1stPriority Mortgage suggest that we avoid seller concessions whenever possible. Seller concessions as a general rule skew the actual fair market value, by adding thousands of dollars to the sale of the property.

I am counseling my agents to "think like the banks/appraisers" when obtaining a listing. That means doing an appraisal when speaking with a potential home seller that is more like what we can expect when the house goes under contract. This procedure is referred to in our profession as a CMA... comparative or competitive market analysis.

So, you as a home seller, need to make sure that the real estate agent who is pitching to get your listing is aware of these conditions. They need to be savvy and realistic in detailing their perception of where to list your property and what is the most likely sales price.

Appraisals. A tough pill to swallow right now, but it's real and it's here... right now. Be advised!

-Your friend in Real Estate... Steve

The Value of Cleaning Up!

Are you selling? Are you just going to have your Realtor "stick a sign in the ground"? Well hold on pardner... Ya gotta have heard that "'round these parts stagin' is the deal".

Seriously if you are remotely familiar with real estate you've heard that buzzword: STAGING. And really what it means is clean it up! Freshen it up! Make it shine. Package it!

As a full time professional Realtor, we see it all the time. We take buyers into a home and it's INCREDIBLE how sloppy, dark and dinghy the place is! Amzing turn off for any buyer!

Do you think Bloomingdale's would just throw the clothes on the window floor in downtown NYC to entice buyers to come in? Why do you think they pay the window dressers so much money to do what they do?

You need to make your place shine! Most of what needs to be done is very inexpensive. And don't start thinking that your asking price is so low that it's not worth it! No matter the price, it should be cleaned up.

Loose door handle? Fix it! Broken pane of glass? Fix it! Leaky faucet? Fix it! Drawer won't close all the way? Fix it! One of the carriage lights is out? Replace it! Carpet looks old and dirty? At least have it shampooed.

We're coming into the busy real estate season...

Clean up!

How Do I Get My First Time Home Buyer's Credit?

It's getting that time of year where some of our clients... first time home buyers especially in this context... are doing their taxes and want to know about how to get the First time Home Buyer's Credit... Here's some stuff...

Both first-time home buyers and long-time owners can qualify for a credit. A first-time home buyer for the purposes of the credit is someone who has not owned a home (or whose spouse who has not owned a home) during the three-year period that ends on the date of purchase of the new home. If you purchased on November 30, 2009 you must not have owned a home since December 1, 2006. The earliest date to qualify for this credit is January 1, 2009.

To qualify for the credit given to long-time home owners, you must have owned your current home for any five five year period during the eight year period ending on the date of purchase of the new home. The earliest home purchase date to qualify for this credit is November 8, 2009.
For either credit, if your date of purchase is in May or June 2010, you will need to prove you entered into a contract to buy the house before May 2010. Read below to determine what documentation is necessary.

Members of the military and the “intelligence community” have an extra year to purchase a house and qualify for the credit.

Restrictions for qualifying for the credit

Even if you qualify as a first-time home buyer or a long-time home owner and you have purchased a qualifying house within the permitted time frame, you might still not qualify for the credit.

You will not qualify if:

You purchased your house after November 6, 2009, the price of the house may not be more than $800,000;

Your modified adjusted gross income is $95,000 ($170,000 if you are married filing jointly) or more and you purchased your house before November 7, 2009. A phase-out of the credit begins with a MAGI of $75,000 (or $150,000);

Your modified adjusted gross income is $145,00 ($245,000 if you are married filing jointly) or more and your purchased your house after November 6, 2009. A phase-out of the credit begins with a MAGI of $125,000 (or $225,000);

Someone else claims you as a dependent on their tax return;

You purchased your house after November 6, 2009, and were under the age of 18 on the date of purchase;

You are a nonresident alien;

Your house is located outside the United States;

You sell your home or it ceases to be your main residence before the end of the year in which you purchase it;

You received the house as a gift or inheritance;

You acquired your home from a relative or a related corporation or partnership;

1. You need IRS form 5405 "First Time Homebuyer Credit and Repayment of The Credit. The form will guide you through the process, ensure you qualify for a credit, and determine the amount of your credit.

2. Collect your required documentation. You will need the Form HUD-1 Settlement Statement or other settlement statement outlining the names and signatures of all parties to the sale, the property address, the price, and the date of purchase. If you do not have a settlement statement, as you might not if you purchase a newly-constructed home, attach your certificate of occupancy.

If you are under contract but have not taken occupancy of the house by the time you file your taxes — and you still qualify under the date restrictions above — include pages from your signed contract including the signatures and names of all parties, the property price, the address, and the contract date.

If you qualify as a long-time homeowner rather than a first-time home buyer, include Form 1098 (Mortgage Interest Statement), property tax records, or homeowners’ insurance records. The forms must cover a full consecutive five year period within the eight years ending on the date of the purchase. Be sure to send copies of these forms, not the originals.

3. Complete your Form 1040. Include your bottom line on Form 5405 on the appropriate line on your income tax return. On the 2009 Form 1040 return, it's line 67. If you use the Short Form or Form 1040EZ you won't be able to do this.

It may not be a bad idea to hire a professional to assist you with or to do your taxes if you are skittish about these sort of things... It is a considerable amount of money and you want to make sure you get it right! Otherwise rock on!