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New Jersey Real Estate

Hillsborough, New Jersey

Real estate market information and occasionally spirited opinions about residential real estate in Somerset, Hunterdon, Mercer and Middlesex Counties by a REALTOR® with over a quarter century of experience. COMMENTS ARE WELCOME. Please use the Add Comment link at the bottom of the posting.

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New Jersey Real Estate

May 2009

New HUD Rules on Using Tax Credit for FHA

May. 29, 2009
Categorized in: First-Time Homebuyers

HUD Secretary Donovan announced today new rules for the monetization of the tax credit for first-time home buyers.  Click here to see the letter.  There are some obvious conditions, such as no cash back to the buyer.  It seems that it cannot be applied as a downpayment, except in excess of the 3.5% FHA minimum down.  There are some other, more subtle provisions.  Any processing fee to monetize cannot exceed 2.5% of the amount involved.

New Jersey will be coming up with some new rules of its own to monetize the tax credit with regard to the MFA (Mortgage Finance Agency) loans.  But unless they do something about the interest rate (currently much higher than the market), not many people will care.

Read the letter, but don't commit it to memory.  It may change again.  Keep in mind that the tax credit disappears on December 1 of this year.  To be eligible you must close on the property before then.  The clock is ticking and homes are selling....

HUD Says "Just Kidding"

May. 19, 2009
Categorized in: First-Time Homebuyers
Tagged with: homebuyers, homes, tax credit

Easy come, easy go.  Just when first-time homebuyers started drooling over the $8000 tax credit that was going to be made available at closing as part of the down payment, HUD withdrew the letter offering it. 

There were too many variables for it to work, and many people felt the credit should be "savings, not debt."  Back to the piggy bank....

The Commission Doesn't Really Matter, Does It?

May. 17, 2009
Categorized in: Service

This is one of my occasional rants, so if you're not in the mood, don't read it.  Other Realtors® will, however, so listen up.

This month I celebrated 30 years as a licensed Realtor®.  Since 1979 I have had the good fortune to work full-time at real estate.  I have sold and marketed a lot of homes for a lot of wonderful people.  For the past few years I've noticed that some prospective seller clients have chosen as their listing agent someone other than yours truly.  In virtually every case it was because the other agent commanded a commission less than I required.  After all, the sellers reasoned, if I can get someone with 20+ years of experience for thousands of dollars less, why not go that way?  Naturally, my marketing is superior (so I think) and I am a very skilled negotiator (a skill many sellers don't realize is important), so I believe I am worth every penny.  (By the way, as everyone knows, all commissions are negotiable.)

Lately, however, it has become apparent to me that I bring to the table something no agents in my market area have - a unmatched breadth of experience.  Yes, I have thirty years of experience, but so do many superannuated agents these days.  More important, I am beginning to think, is my practical experience on the local board level, where I have served in a number of offices, including president, as well as on the state level and even national level.  That level of service has contributed more to my skill and knowledge than an extra couple of listings or sales per year, or all the titles of "office top agent"(which I have also held for a few years). 

To a prospective seller my role as a state committee member or trainer, or national roundtable leader, seems unimportant, but those experiences have taught me a lot in the realm of negotiation as well as understanding how different agents approach real estate and/or negotiation.  I have been fortunate in being selected for those roles, and I value my experience dealing with legal affairs, professional standards, and political action on the local and state levels.  

It is arrogant to compare myself to a brain surgeon, but would you expect to pay the same for a surgeon who opens and closes his own procedures as one who steps in after the cut is made to do his magic and then retreats to have someone with less skill suture you up?  Would you expect to pay the same amount for a surgeon who speaks to her peers on the latest techniques as one who sits in the audience under duress?  How about for the surgeon who has studied with the best national "knives," vs. the one who keeps up with literature only as required by state requirements?

Yes, there are many out there with decades of experience like me.  There are many who have mastered the techniques of virtual tours and website optimization.  And there are many who, with a "team" of less-experienced agents conduct a quadrillion dollars a year in volume.  But if someone wants to hire an agent with 30 years of experience, shouldn't they get that person at all levels of the transaction?  Moreover, shouldn't that experienced person bring to the table something other than "just" listing and selling real homes for n-number of years?  I think so.