Golden Realty Blog

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.

What the heck are you waiting for? You know you want to buy a home, you know you want a great deal, you know you have been qualified for a loan and or have been saving for a down payment. But what is the problem?

Maybe you are waiting for the “bottom” to get the best bargain possible? - You never know when it’s the bottom until we start climbing back up.

Maybe you are waiting for interest rates to drop? - Did you know 30 year fixed rates just went up by nearly half a percent last week?

Maybe you are waiting for the perfect home to appear? - There is no perfect home until you move in and make it your own.

We are in a market where Buyers have the upper hand. There is money in the mortgage markets that banks and lenders are eager to lend. There are sellers who are motivated to sell now, and there are sellers who want to move up or downsize which means they also want to buy now, and there are many homes on the market offering a broad range of choices. Historically the best real estate bargains almost always happen during a buyer’s market. So I ask the rhetorical question again…What are you waiting for?

Happy New Year! Is it still okay to say that, after all, we are now over half way through the first month of ‘09? We think so. And that is why we are wishing everyone a Devine 2009. It never hurts to continue to spread happy well wishes, cheer and joy, as it is indeed contagious.

No doubt a lingering question in the minds of many people is “What will happen to the housing market in 2009?” Every where you turn there is someone giving an opinion about what will happen, when it will happen and what will happen if it doesn’t happen. As real estate professionals and consumers this can be very frustrating and confusing. It is important to realize the source of the information and how it applies to your own personal situation.

Here is some Golden advice…Don’t let the media become like the tabloids and fill your mind with false or misleading information about the housing market. The job of the Press is to create interesting stories, but they do not necessarily understand the complex statistics relating to housing markets, especially as it relates to YOU.

Here’s to making it Devine in 2009!