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.