From national real estate to the U.S. economy, the predictions for 2010 are in. Like any predictions, they vary from somewhat bright and cheery to doom and gloom:

CNBC’s Realty Check predicts:
• the beginning of a housing market recovery mid-year
• higher foreclosure inventory
• rising mortgage rates, probably leveling off around six percent.
• suffering commercial real estate

The National Association of REALTORS®’ (NAR) chief economist is projecting:
• A sustainable recovery. The tax credit expansion will help to relieve extra housing supply through mid-2010.
• A rise in existing home sales. The NAR is expecting existing home sales to rise as high as 5.69 million, even with continuing unemployment issues. That’s a 13.6 percent increase.

In fact, the U.S. forecasts for national and real estate are overall positive for 2010.

Housing Predictor, one of the first places to predict the wave of foreclosures, also forecasts positive numbers for 2010. They anticipate rising home sales, market improvement and even value appreciation for some places. Again, the magic period for the start of stabilization is the middle of the year.

Although no one knows for certain what will happen in the future – especially for such struggling sectors as national and real estate – we can all gain a little hope from the 2010 forecasts. There is one thing that is fairly well agreed upon according to these predictions: there will be a real estate recovery in 2010.

Locally, especially in Oceanfront Jersey Shore communities, we haven’t suffered the dramatic price declines that more speculative real estate markets have suffered. Jeffrey Otteau, who is a recognized market analyst for the tri-State area, predicts that home sales during the spring of 2010 should sustain the improvement that began in the second half of 2009.

If you’re struggling to sell your home, I can help. Call me at 732-988-8900 or email me at Bob@AvonRealtyHomes.com for more information.

Links:

Realty Check
http://www.cnbc.com/id/34110130

Existing home sales
http://www.realtor.org/press_room/news_releases/2009/11/hopeful_leading

Housing Predictor
http://www.housingpredictor.com/better.html

Whether it’s a single family home or condominium on the Jersey Shore, For Sale by Owner (FSBO) sales aren’t near as successful as those sold by real estate agents. In fact, by 2006, the average price for a FSBO home was at least $50,000 less nationally than agent-run sales.

Why is that? Are real estate agents just naturally better at it? Although I’d love to say yes, the reality is that there are just some things FSBOs don’t know. Because they don’t know it, they make mistakes. Some of the most common are:

1. Incorrect pricing – The market can only bear so much. By pricing their Jersey Shore condos and homes too high, many FSBOs fail to sell. If your home isn’t selling, this may be the reason.

2. Not understanding everything involved – Selling a home, whatever the type, takes a lot of time, energy, ability, effort and know-how. For instance, accessibility is especially important, and a lot of FSBOs can’t be available to show the property when a buyer wants to see it.

3. Screening – You can waste a lot of time on unqualified buyers. You can also lose money by taking an offer that’s lower than it should be. Screening buyers can take a lot of time and effort, especially if you don’t have the experience to spot them.

4. Financing questions – The prospective buyer wants to know their financing options. As a FSBO, you need to be able to answer financing questions and explain their options. To do this, you’ll need to build a network of financial experts.

5. Knowing contracts – You need to be well versed in legal jargon, so you can handle contracts, agreements and disputes. Make sure everything – the negotiations and the agreements – is in writing.

These five points are just a few of the things you need to know to sell condos and single-family homes on the Jersey Shore on your own. If you’re not prepared to do it all, hire an agent to do it all for you!

If you’re trying to sell your home or condo and need someone who knows the ropes, I can help. Call me today at 732-988-8900 or email me at Bob@AvonRealtyHomes.com for more information.

Links: Pricing
http://realestate.msn.com/article.aspx?cp-documentid=13108482

Ever since she was about 4 years old I’ve called my daughter Mary “My Princess.” The name was the result of an actual occurence and not just some name I dreampt up.
One summer day I was sitting on my front porch relaxing and out of the front door pops Mary’s two older sisters, Maggie and Mo followed by Mary. They were playing dress up. Mary then rushes out and stops at the top of the porch steps, twirls around and exclaimed, “Look at me, I’m a Princess.” So ever since that day I’ve called her Princess.
In July of 2008, Mary left Avon for a job offer in Arizona. She then left Arizona for Northern California and now lives outside of San Francisco in Walnut Creek.
Although my wife Peggy visited Mary while she was living in Arizona, I haven’t seen my Princess since the day she left in July of 2008.
She’s coming home next Saturday, December 19th and naturally I can’t wait to see her.

Those with homes for sale on the Jersey Shore are buckling down for the long haul, but exactly how long will that be? I spent a little bit of time roaming the Internet to get the general “feel” from people on the housing market. It turns out that the answer all depends on who you ask…

Housing Predictor
Housing Predictor.com says, yes, the housing market appears to be making a rebound. However, that rebound, says economist, John Hines, is a false front. The government is pushing the rise in sales to make the housing markets look good and increase buyer confidence. Will the market ever get back on track? According to Hines, if Congress can get the lending pipeline going again, we might finally see a bottom around the third quarter of next year.

The Ledger
According to an article at The Ledger, Stephen Blank of the Urban Land Institute isn’t at all optimistic. Blank says there’s no quick fix, and that 2010 will be sobering. While the housing market is being helped by various factors, the foreclosure rate probably isn’t going to drop and lenders aren’t lending. Blank worries that financing may be lacking, even for those wanting to buy. He doesn’t see the market doing much for another year.

CBS Money Watch
The best article I’ve come across so far, however, was written back in June at CBS MoneyWatch. The article says give the market at least seven years to recover. The author doesn’t just quote doom and gloom, however. She has some great points for people with homes for sale on the Jersey Shore. I highly recommend the read, but here is the quote that stuck firmly in my mind:

“If you are a seller, get realistic about what you can get for your house. With so little upside in the foreseeable future, you may be better off to sell, even at a loss, since you can probably get back into a similar house at a lower price and very low interest rates.”

It’s a buyer’s market; the supply of empty homes is much higher than the demand for them. If you have one a home for sale on the Jersey Shore and it’s not selling, you may need to change your mindset a little. In this buyer’s market, sellers may just have to bite the bullet.

Ready to buy or sell? I can help. Give me a call today at 732-988-8900 or email me at Bob@AvonRealtyHomes.com.

Links:
Housingpredictor.com
http://www.housingpredictor.com/bottommarket.html

The Ledger
http://www.theledger.com/article/20091122/REPORTER/911225006/1035/BUSINESS?Title=Experts-No-Quick-Fix-for-Market&tc=autorefresh

CBS MoneyWatch
http://moneywatch.bnet.com/retirement-planning/article/real-estate-forecast-3-things-to-know-about-the-housing-market/315696/

Do you have a competitive nature? Do you always have to have the last say? Do you always feel you have to win? If you have a home for sale on the Jersey Shore, you may have “competed” yourself right out of a buyer. Please, read on to find out how NOT to make this mistake.

Who Calls the Shots?
You’ve probably heard “it’s a buyer’s market” many, many times already. With the number of people who have a home for sale on the Jersey Shore, this is something you can’t afford to ignore. This is especially true considering that the longer your house sits on the market the more it depreciates.

A competitive nature is all well and good, but, when dealing with potential buyers, you have to rein it in. Winning, in this case, is not getting the last word, but selling your home. As you enter into negotiations, keep in mind that the end goal is to sell.

Buyers know they have the market. While this doesn’t necessarily mean they’ll try to walk all over you, it does mean that they may try to negotiate:

• On price
• On closing date
• On inspection period
• On closing costs
• On anything

Now, just because they’re trying to negotiate doesn’t mean they aren’t qualified buyers. You may have a very qualified potential buyer trying to negotiate with you.

Warning: at this point, your competitive nature may try to rise up and crush the negotiating potential buyer. Restrain yourself – strenuously if you have to.

While dealing with offers, counter offers and counter-counter offers, ask yourself if you’re being competitive, silly or surprisingly realistic. Are you turning down their offer because it isn’t an exact fit for you? Do you have a legitimate reason for the counter offer, or are you trying to “one-up?” Will a requested change really make that much difference to you?

Although I’m not suggesting that you take the first offer that comes along without looking at it, or that you take an offer that is less than you can afford to take, I am suggesting that you remember there are alot of people with a homes for sale on the Jersey Shore. As you look at the offers, keep this in mind. Shut down that competitive nature and remember that the only way you really win is when you sign the papers and hand over the keys.

Fannie Mae announced on Thursday 11/12, that mortgage loan limits in high cost areas will be extended for all of 2010. For those of us in the Jersey Shore area, this is good news.
The mortgage loan limit for high cost areas will remain at $729,750. What this means is that instead of mortgage loans above $417,000 being considered jumbo loans, which carry a higher mortgage rate, the amount borrowed can be up to $729,750 and still be considered a conforming loan. While mortgage rates between $417,000 and $729,750 do carry a higher interest rate, it is usually minimal. The interest rate on jumbo loans is significantly higher than those on conforming loans, maybe 1% higher.

Early this morning, my oldest daughter Maggie gave birth to my first grandchild. What a thrill and what a satisfying experience. I remember the day Maggie was born vividly. My wife Peggy was in labor for a long time with Mags. Witnessing firsthand the effort women endure in giving birth to a child was an experience, at least for me, that put in perspective the respect we guys owe women for carrying and giving birth to our children. No wonder it’s called labor.

God bless Kherri Ann Kinkela and her parents Justin and Maggie.

Some welcome good news:

Yesterday, President Obama signed a bill extending and expanding homebuyer tax credits. The bill is effective immediately and extends the $8,000 first time homebuyer tax credit deadlines to April 30, 2010 for contracts and June 30, 2010 for closings. The bill adds a new $6,500 tax credit for homebuyers meeting the same deadlines who have resided in their principal residence for at least 5 of the last 8 years. Finally, income eligibility limits have been increased to $125,000 for single filers and $225,000 for joint taxpayers.

I’ve summarized the credits and eligibility criteria here:

Tax Credits Explained: The tax credits are applied for by homebuyers when filing tax returns. The tax credits reduce tax liability to the federal government dollar for dollar. If no taxes are owed, the IRS will issue a check for the amount of the credit. The credits in the current bill do not need to be repaid, however, homebuyers must maintain the home as their principal residence for at least 3 years.

First-Time Homebuyers: As under the initial tax credit, first-time homebuyers are deemed to be people who have not owned a principal residence within the last 3 years. For a married couple, if either spouse has owned a primary residence in the last 3 years, neither would qualify. If an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. The credit is calculated as 10% of the purchase price of the home up to $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount. Unmarried purchasers of a single home may split the eligible credit amount.

Current Owners: Current homeowners who have owned and occupied their principal residence for 5 consecutive years in the last 8 years may be eligible for a tax credit up to $6,500. This aspect of the bill should appeal to the so-called “trade-up” market.

Deadlines: For either credit, contracts need to be effective not later than April 30, 2010 and close not later than June 30, 2010.

Income Limitations: For either credit, single tax filers who earn up to $125,000 are eligible for the total credit amount and those earning up $145,000 can receive a partial credit. Joint filers who earn up to $225,000 are eligible for the total credit amount and those who earn up to $245,000 are eligible for a partial credit. Taxpayers earning in excess of $145,000 and $245,000, respectively, are ineligible for either credit.

Purchase Price Limitation: The maximum purchase price for a home in an eligible transaction is $800,000.

      According to Reaty Times the Senate now appears likely to pass a bipartisan compromise extending and expanding a tax credit for homebuyers.
     The deal would extend the $8,000 credit for first-time homebuyers for sales contracts entered into by April 30, 2010, and closed within 60 days. It would also add a $6,500 credit for some owners of existing homes as long as they have been in their homes for five consecutive years in the past eight.
     The income cap would be raised to $125,000 for individuals and $225,000 for married couples, up from $75,000 and $150,000, respectively.

You’ve reached that time in your life where you’re ready to buy Jersey Shore real estate.  Even though the mortgage approval process can be intimidating, you can get yourself ready to apply for a loan.  These are the first steps to buying your home:

Make a List

First, make a list of your finances.  Include all your income, and factor in your normal monthly debts.  Miscellaneous bills, like your daily coffee or weekly magazine, should be listed too.  Write down everything that you spend each month.

Calculate what 28% of your income is.  Most loan officers recommend not spending more than 28% on your housing costs.  You may not want to take on a mortgage loan for the maximum amount offered without consulting your list to see what money is actually available for you to spend.

Decrease Your Debt

Once you’ve have detailed your finances, it’s time to make a budget.  A good budget can help you eliminate wasteful spending which will allow you to pay off more of your debts.  When planning your budget, don’t forget to include some personal money. 

Start with the small debts first.  Pick the credit card with the highest interest rate and smallest balance and work from there.  After one debt is paid off, use the extra money that you’re saving from the first card, and pay off the next.  This way, you should be able to pay your balances down quickly.

It only takes a couple of months of good payment practices to begin to see your credit score go up. With a good credit score, you can get a better interest rate.  This will save you thousands of dollars in mortgage payments over the life of the loan.

Save For the Down Payment

You’re ready to start saving for the down payment.  It has to be paid up-front at the loan closing, but sometimes the seller will pay the closing costs.

If you’d like more tips on how to buy Jersey Shore real estate, subscribe to this blog.  It’s free and easy.  Just enter your email address in the subscription section, and you’ll automatically receive tips like this in your email inbox a couple of times a week.

Keyword/Tag: Jersey Shore real estate

LINKS:

Decrease your debt:

http://www.wisebread.com/six-steps-to-eliminating-your-debt-painlessly

Make a budget:

http://www.mrcheapstuff.com/deals/2009/06/how-to-create-a-budget-the-painless-way/

Credit score:

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm