What is the right course of action for the listing Realtor when a non-area, non-MLS member Realtor wants to show your property which has lockbox access?

What is your perspective as a non-area, non-MLS member Realtor?

My office has been noticing an increase in non-area, non-MLS member Realtors calling our office to meet them with their client at our property listings that are accessable via lockbox. They are non-members to our area MLS and they typically aren't familiar with the area.

I find that very concerning. It leaves a host of liablities for the Realtor who is not familiar with the area. I am not sure if it also leaves the listing broker liable as well? It is definitely not a good thing for the buyer client. It's like the blind leading the blind.

On another note, the listing Realtor ends up having to meet the non-area/non-MLS member Realtor and his/her clients at the property every time they need access. I suggest that we ask the non-area Realtor to refer the client. After all, the listing Realtor who had to pay the membership fees for the M LS and will end up doing much of the work.

What's your thought?

          In a time when we need incentives to help move the real estate market, New Jersey chooses not to, by eliminating property tax deductions on next years’ state income tax filing.

          As most in New Jersey are aware Governor Corzine is temporarily eliminating the property tax deduction on next years’ state income tax filing for all tax payers who earn more then $250,000 and capping deductions for those earning under $250,000.

          New Jersey, being one of the nations wealthier states, is hurting in the above-average to luxury housing market by taking away this deduction. The NJ Parkway was supposed to be a “temporary” toll and now it’s $1.00 every time you pass through a toll booth – I wouldn’t be surprised if this becomes the case with property taxes as well.

          We need tax incentives on real estate, not disincentives that deter people from all levels of the housing market. If it wasn’t for the first-time buyer tax credit, our real-estate market would not have survived to this day. When will our lawmakers get it and put a positive spin on home ownership?

A first time homebuyer can treat a purchase in 2009 as a occurring on 12/31/08 and amend their 2008 return. Especially good if 2008 was a lower income year, according to Tom Hacker of Hatcher, Kroll and Company, P.A. (thacker@hackertrollcaps.com). Case in point: If a substantial raise in salary in 2009 affects the qualifications of a first time buyer for the tax credit, the buyer may elect to amend the 2008 return using the lower qualifying income to maximize the full tax credit.

The buyer may also use this 2008 amendment to the tax return as a tool to obtain the credit now as opposed to waiting until after the 2009 tax filing.

For more information see your tax accountant or email Tom Hacker.

In addition to federal programs, first-time homebuyers in New Jersey also benefit from additional programs designed to assist buyers in purchasing their first home. The New Jersey HMFA (Home Mortgage Finance Association) will prefund up to $5,000 of the First-Time Homebuyer Tax Credit to be used for down payment or closing costs. Also, through select mortgage representatives in New Jersey, up to 4% of the mortgage amount is available as a grant to help first-time buyers. This information provided by Robert Tronolone of Home Capital Network. For more information on the mortgage that’s right for you, contact Robert Tronolone at rtronolone@homecapitalnetwork.com or see your mortgage representative.

          A free program developed by several state agencies is geared at assisting New Jersey homeowners facing foreclosure. This outreach program is disturbing resource information which offers free housing counselors, free legal assistance and mediation. The brochures are offered in both English and Spanish. For more information go to www.njforeclosuremediation.org or call 1-888-989-5277 from 8AM-6PM M-F.

If you are in the early stages and considering a short sale go to www.centralnjhomesearch.com for a free brochure, “The 4 R’s of Short Sales” which will provide the long and short of short sales.

The tax credit has helped spur the first-time buyer or low-end housing market. It appears our strongest sector of housing sales is in the sub-$400,000 price range. Homes are selling within 5% of the listing price.

The mid-housing market appears alittle slower but sales are occurring. Many may be from the move up buyer who sold in the starter range under $400,000.

However, the higher-end market over $700,000 and under $1,000,000 is even slower with negotiations running within 10% of asking price on average.

And finally the luxury market which includes properties over $1,000,000, we have noticed homes selling within 10-15% of asking price and approximately 85% of assessed value.

I would have to guess that as the first-time buyers purchase they will move the market upward as sellers shift to buyers at the next level. It appears the lower price range is already in recovery and the mid-price-range for housing should be there hopefully by year-end. Except the higher-end market to start showing signs by the first half of 2010 and the luxury market within a year.

In the midst of an economic crisis where households are struggling just to get by each day and where the state of New Jersey keeps cutting funding to our schools and municipalities, our Trenton lawmakers want to now take away our ability to deduct our property taxes on our state income tax filings and remove our tax rebates!

          With little or no funding to our municipality and schools we as property owners must now pick up the burden in increases to our property taxes. Couple that with a loss of tax rebates and the inability to deduct these taxes on our state income tax returns and it’s going to just tighten the noose around our neck.

          Governor Jon Corzine originally wanted to suspend all non-senior households from this property tax deduction but in relation to an outcry from the public, he now was modified his proposal to allow for the deduction for senior households and households earning up to $150,000 per year. He has also proposed to modify the tax rebate allowing senior households and households earning up to $75,000 to receive the tax rebate.

          In a state like ours where the cost of living and home-ownership is so expensive many earn well above these limits just to survive. It’s time we wrote our legislators in Trenton and let them know how we feel. The tax deduction and rebate program should be fully restored! Stop beating us up!

          They increased the first-time buyer tax credit from $7500 (to be repaid) to $8000 (not to be repaid) under certain conditions. What they had initially was a $15,000 home buyer tax credit for anyone purchasing a principal residence. Now that would have opened the floodgates and moved some homes?

          Instead they threw good money after bad trying to bail out lending institutions and auto manufacturers who inevitably will go belly up. Why didn’t we let them hit the bottom sooner rather then prolong the agony? The faster we all get to the bottom the sooner us as Americans can pick up the pieces and rebuild.

          So now we helped a small group of first-time buyers. However, let’s look at their credit scores. Probably a number of them and most of everyone else have less-then-perfects. Unfortunately, they can’t get a loan because the banks have seized up and are now too restrictive on lending. I even know of a case where a buyer had a great credit score and 20% down to purchase a $1M+ home but couldn’t because the lenders wanted more down on that jumbo loan. Unfortunately, he is now renting because he couldn’t get that home he wanted.

          Maybe the government ought to step in and help the lenders structure loans to help people buy homes. Increasing loan limits is great but if you can’t get approved for the loan what good is an increased limit anyway?

Tax Credits the way to go in simulating our economy?

          Tax credits are incentives which will motivate all of us to stimulate the economy.

          We now have a first time buyer tax credit of $8000. Why not open that up to everyone who buys a principal residence?

          What about big-ticket items like autos? Rather then try and bail out the big American auto manufacturers, why don’t we give a tax credit for buying an American automobile?

          What about lenders? I am sure we could think of even more opportunity for tax credits. It’s time our government shared the benefits around to everyone and not just a select few or those giant institutions. Afterall, most of us are working and struggling everyday just to make it through and yet, ironically, we are the one’s paying for all of this. Where’s our bailout?

Consider shortening the time (or establishing special loans) for individuals of foreclosure and/or bankruptcy to buy a home or auto again.

          Unfortunately, foreclosure and even bankruptcy have become rampant in this country. Many individuals, by no fault of their own have fallen prey to scrupulous lenders, unemployment and hard times. They have or will experience the devastation of foreclosure and/or bankruptcy.

          Many of these individuals will now need to pick up all the pieces and rebuild. Unfortunately, there is no “big” government there to help them get a fresh start. These may be people who could very well afford to buy a home or car again but because of their situation; they are left paralyzed, unable to assist in simulating the economy because of their lack of ability to make such purchases as a result of their credit situation.

          Why doesn’t the government shorten their recovery time or set aside special loans for these individuals. With the right help many of these people will begin to be a vital part of our economic recovery.  

With interest rates at an historic low and possibly dropping even further there is no better time to refinance your current home, upgrade to a better home, make that first purchase or make the reinvestment in a vacation or second home!

            When you figure in the negotiability of already low home prices from motivation home sellers, add in the low interest rate which was not too long ago over 6% and not around 5% as it currently sits at, and the possibility looms of it dropping even further to the 4% range. This is a once in a lifetime opportunity for people looking to both purchase and refinance. One percent doesn't seem like a lot to most people; it's such a small number. But based off a 6% loan vs. a 5% loan, you save $50,000 - or 10% - off of a $500,000 home. Couple that with low home prices and the negotiated final price and "BINGO", the winner is you!!

            Remember historically those who made money on their investments, in the markets of both stocks and real estate, did it when no one else would, when opportunities for buying low were present. Your investment will increase when everyone else finally realizes that it's time to buy. By the time most people are motivated to get market, it will be too late for them to take advantage of low interest rates, low prices and high seller motivation.

            Think about it this way. "The pessimist sees difficulty in every opportunity; the optimist sees opportunity in every difficulty." I'm sure if Winston Churchill was still around, he'd be taking advantage of the awesome opportunities available in today's market.