The Housing and Econmic Recovery Act (R.R.3221) allows a $7500 home ownership tax credit to encourage buyers to jump into the market.  When you combine this tax credit with the low interest rates in place, the lower home prices and the increased inventory, can they afford not to buy?

Buyers don't have to first time homebuyers to qualify for this tax credit.  It's actually available to any individual or household that hasn't owned a home for at least three years.  And NAR has asked Congress to expand the credit to all buyers, not just those who haven't owned a primary residence in recent years. 

Buyers have till July 2009 to make a purchase that qualifies AND even if they exceed the income limit ($75,000 for individuals and $150,000 for households) they can still qualify!  This just keeps getting better and better! Individuals who exceed the $75,000 limit but don't make more than $95,000 can still take the credit but on a reduced basis.  The same thing applies to households earning up to $170,000! By the way, ANY HOUSE is eligible as long as it's a primary residence and located in the United States! 

Now....the federal government requires the tax credit to be paid back in small increments over 15 years (no more than $500 a year) and payments won't start till 2011.  NAR is pushing Congress to remove the repayment provision all together making this a true tax credit! GO NAR!

"TODAY'S BUYER'S MARKET IS TOMORROW'S MISSED OPPORTUNITY"

Believe the above says it all.  I'm working with lots of buyers who just won't commit to buy because they don't know if the market has bottomed out.  Trouble is, when it is evident that the market has bottomed out, they have missed their opportunity, because the market will already be on an upswing! When have you seen a market that has good interest rates, plenty of inventory, and more than reasonable prices all together?  This is prime time for those investors, second home buyers, first time home buyers, basically anyone who is in the market to buy a property.  Getting them to commit, well that's another blog altogether!

Bass River Township, NJ - Located just outside of Little Egg Harbor in Off Shore Manor is this three bedroom, one bath, rancher on oversized lot (82x160), with great deck off rear of house, above-ground pool, fenced rear yard, mature landscaping, & privately fenced insulated dog house area.  Large rooms, Living room 22x11, dining room, 12x16, kitchen 12x14, Master 12x14. Five A/C units included. Offered at $219,500.

Little Egg Harbor, NJ - Wow this waterfront ranch has it all.  Three Bedrooms, 2 full baths, attached garage, on oversized corner lot with views of interlocking lagoons from dock.  Gas heat, wood stove, screened porch, ceramic floors, and there is still possibilites galore.  Large open floor plan. mature landscaping, private rear yard.  Asking $239,856.

Wow!  This Bi-Level on Osborn Island affords views of Great Bay from the living room, dining room, kitchen and deck!  3 bedrooms, 2 baths, formal living room and family room with wood burning stove.  Hardwood floors on second level.  Upgraded kitchen with ceramic tile and stainless steel refrigerator.  Upgraded bath on second level as well.  You really must check this out!  Offered at $239,900

The following article was written by Steve Cors, CEO of Superior Mortgage Corporation.  It is one person's view of the mortgage market and makes some very valid points. 

An insider's view of what's really going on in the Mortgage Market,

And how it will affect real estate sales for the remainder of 2008,

By: Steve Cors, CEO, Superior Mortgage Corp.

I truly believe that if the press would just stop the negative reporting on the mortgage industry, the real estate industry and the market would improve overnight.  Fear is paralyzing, and the news reports create fear and worry. Actually, it is an excellent time to buy a home, with prices not seen since 2004, and despite what some would have you believe, mortgage money is readily available.  That said, things have changed drastically since this time last year when it comes to loan products, and what it takes to qualify.

 What everyone needs to know about mortgage money is that the sound lending practices that should have always been in place, are back.  In fact, the pendulum has swung too far the other way, but that will correct itself, given time.  Unfortunately, a lot of bad loans were made, resulting in large losses to lenders and investors.  Remember, every loan is an investment for a mortgage company, a bank, an investment fund, or a foreign investor.  When too many of these loans turned out to be bad investments, investors stopped buying them. That put all the lending power back in the hands of Fannie Mae, Freddie Mac, the FHA (Federal Housing Administration) and the VA (Veterans Administration).  Thank God we have these government sponsored agencies.  These agencies have the power to keep sufficient liquidity in the housing market, to avoid a full scale crash, but only if the loans we make today are good investments that provide the returns the investors expect.

These government agencies are now providing over 80% of all residential mortgage money.  That means they get to make the rules.  Superior Mortgage has been originating loans for 21 years, and we have the knowledge to continue to make plenty of loans under the current rules. To help us accomplish this, we need our REALTOR® partners and our customers to understand the work that needs to be done on every loan.

Income needs to be documented in almost all cases.  Appraisals need to be done right, with recent comparables that are really comparables.  Credit needs to be better than allowed before the August 2007 melt down.  When credit is not acceptable, Superior has developed a special program to assist borrowers to raise their credit scores, so we can turn them into buyers in the future. 

Assets for down payments need to be properly verified, so the lender can be assured the buyer will have a financial stake in the property.  Clear evidence exists to prove that borrowers with no skin in the game are much more likely to walk away from a property when things get tough, than a borrower who used their own savings as a down payment.  In addition, underwriters need to take the time to review every detail closely, and make sure all the documentation is sound, and supports the approval decision. 

Although Superior has always been totally committed to giving fast service, and being on time to meet every commitment and closing date, this extra attention to detail can make the process one or two days longer.  The process also requires everyone's cooperation.  We think this is a small price to pay to help restore the confidence in the mortgage industry that we all need, in order to achieve long term price stability and success in our chosen industry.  

We look forward to helping you and your customers be successful in the current challenging market, and the great market that is sure to follow.

For more information or if you need the services of a mortgage person, please call Bob Faust, Senior Loan Officer, Superior Mortgage, 1395 Route 539, Tuckerton, NJ 08087, 609-294-4314, Toll free 800-642-4767 Ext. 4314, cell 609-709-1776.

Proper pricing is always important. Houses new to the market, priced properly combined with an effective marketing campaign will drive the most buyers to view the home in the first 2 to 3 weeks.  After that, traffic will significantly decrease. If sellers are not priced properly from the get go, particularly in this market, they are always playing catch up with the market, the listing eventually becomes stale and the agent has an unhappy seller to deal with.  We, as agents, are hired by the clients to SELL their home.  It is important to educate them on the current market and its trends.  It is our job to provide them with all the information necessary so they can make an informed decision. If you do this and they still want to price their property above what it should be, then you, as an agent, have to make a decision as to whether you want to take that listing, knowing you will have to approach the seller for reductions or if you should turn it down. 

You are ready to buy or sell and you now need the services of a Real Estate Professional.  How do you go about choosing the right person to work with you?  Here are a few questions you may want to ask potential candidates for the job of being YOUR Real Estate Professional. These is not a complete list but a good start!

1.  How long have you been in residential real estate sales?

2. Is this a full-time or part-time job for you?

3. Are you a REALTOR? (member of the National Association of REALTORS with over 1 million members who subscribe to a stringent code of ethics.)

4. What designations do you hold?  (Designations, such as GRI, CRS, ePRO, ABR, requires real estate professionals to take additional specialized real estate training and are held by only about 1/4 of real estate professionals.

5. What is your list to sale price on your listing?  What is the list to sales price on your sales? (This percentage indicates how much of the original asking price the seller received.  If you are looking for an agent to list your house, you want this number on the listing side to be high indicating this agent works to get the seller the highest price.  If you are looking for an agent to help you purchase a house, you'll want this number on the sales side to be low indicating they work to get the buyer the lowest price possible.)

6.  What type of specific marketing approaches will you use to sell my home or to find me a home?

7. Will you represent me exclusively or will you represent both the buyer and seller in certain transactions?  (It is important you understand agency and how it will affect your sale or purchase.  A good practitioner will explain the agency relationships.)

8. Can you recommend service providers who can assist me with a mortgage? making repairs? inspections?

9. How will you keep me informed of the status of my transaction?

10.  May I have references? 

1. A real estate transaction is complicated.  In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds and multi-page government-mandated settlement statements.  A knowledgeable guide through this complexity can help you avoid delays and costly mistakes.

2. Selling or buying a home is time consuming.  Even in a strong market, homes can stay on the market longer than the average.  And sometimes it  can take another 60 or so for the transaction to close after an offer is accepted.

3. Real estate has its own language.  If you don't know a CMA from a PUD, you can understand why it is important to work with someone who speaks the language.

4. REALTORS have done it before.  Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase.  And even if you've done it before, laws and regulations change.  That's why having an expert on your side is critical.

5.  REALTORS provide objectivity.  Since a home often symbolizes family, rest and security not just four walls and a roof, homeselling or buying is often a very emotional undertaking.  And for most people, a home is the biggest purchase they'll ever make.  Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

6. REALTORS are members of the National Association of REALTORS, a trade organization of over 1 million members nationwide.  REALTORS subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.

Almost panaramic views from the rear fenced yard with lots of privacy. Located just before Cul-de-Sac on right side. Garage has access from both front and rear yards and direct access to house. Maintence free with stoned landscaping. Large rear yard with patio and totally fenced for the kids or the pets!  Offered at $279,500