Golden Realty Blog

The price of a home is a marketing tool. Simply stated, the price gets a pool of buyers within a certain price range to look at the home and discover all the wonderful things about the property and whether or not it fits their particular needs. The value of a home…now that is another story.

A motivated seller should, in theory, be setting the price of their home at, below or near the true value of the home. However, there are many factors involved in setting the price of the home, including the expertise of the listing agent, money owed, location of the home, amenities with in the home, and the list goes on.

In this ever changing market and the market conditions, the only way to find out the true value of the home is to MAKE AN OFFER! The price tag is just a starting point. So if you are a buyer and find a home you desire to purchase, don’t complain that the price is too high, or that the counters are not granite, or that the landscape is too bare…just MAKE AN OFFER. Then and only then will you have the ability to negotiate the price and discover the true value or worth of the home in today’s marketplace.

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Last week the Senate approved an amendment to the pending economic stimulus package that would give a tax credit up to $15,000, for anyone buying a primary residence within the year period, and it would not have to be repaid. This proposed amendment would have added $19 billion to the stimulus package. As lawmakers looked to trim the large price tag of the stimulus package, this amendment was killed, but was replaced with a similar yet smaller measure.

Yesterday, the Wall Street Journal reported:

The $15,000 homebuyer tax credit didn’t survive the final negotiations on the stimulus bill. Instead, Congress slightly increased to $8000 an existing $7500 credit for first-time homebuyers and eliminated repayment provisions. Congressional negotiators said that $8000 number isn’t yet finalized.

The move was sure to disappoint those who had favored a more generous $15,000 credit for all home buyers in the Senate bill.

The new credit is retroactive to December 31, 2008, which means that anyone who buys a house this year, through August, won’t have to repay it. First time buyers who used the credit in 2008 still have to pay it back over a 15-year period.

The news is bittersweet for the real estate industry, but lawmakers who support the bill are not giving up and will continue to push for the increased tax credit in a separate stand alone bill.

Tax Credit for Homebuyers

Avoid the Stalemate

Have you ever been in the real estate market as either a buyer or seller and found yourself in a Stalemate during your attempt to buy or sell real estate? Stalemate is derived from a situation typically in the game of chess, where the player whose turn it is to move has no more moves. One rule in the game of chess is that a stalemate subsequently ends the game, resulting in a draw or a no-win situation.

Let’s take a look at the term “stalemate” as a metaphor in real estate. When negotiations have reached an impasse and a resolution seems difficult or impossible, just like in the game of chess…nobody wins. The frequency of stalemates are on the rise in our current real estate marketplace. Here are some tips for both sides of the negotiations to keep the game alive and come to a mutual agreement.

1. Keep a balanced frame of mind and try to look at the motivation of the opposing side
2. Remove or keep all emotions out of the negotiations
3. Be willing to negotiate in the first place
4. Stay away from ultimatums, as that tends to offend people
5. Don’t rush into a decision, take time to think about all options
6. Be realistic and consider the consequences of a stalemate
7. Keep the negotiations moving forward (remember the law of momentum, an object in motion stays in motion)
8. Don’t let the opposing side feel as if they have been cheated
9. Be willing to give up items that don’t matter in order to create a feeling of goodwill
10. Don’t be arrogant or aggressive

The bottom line is to avoid stalemates and these no-win situations. Both parties whether buying or selling, whether in a buyers market or a sellers market, should leave feeling satisfied with the ultimate outcome.