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

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.

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.