REAL-ity Bites - As long as homeowners continue to overprice their homes in the market for sale, the longer it will take for the real estate housing market to recuperate.
If you are a homeowner and NEED to sell your home then by all means SELL IT but do yourself a favor price it at the right price - which means if your home is not in foreclosure, you would still need to price your home according to the comparable in your block - short sale, foreclosure or not.
I just received a phone call from a friend of a friend who wants to sell their condo because they want out. The condo is not a foreclosure, however, if they wanted to sell right now, in this market, in this very current market, they would have to sell very low, which means that according to the comparable in the same building and even the one next door, they would have to sacrifice $50K, maybe even more or double that amount, depending on how long the property sits on the market and how low the other comparable keep lowering their prices until they find a buyer or buyers, (a bid or bids).
I talked the sellers out of placing their property out of the market and even convincing them through an hour of consultation NOT to sell For Sale By Owner. They are better off holding on to the property than to sell it now.
So if you are in need of selling, do so, if not, hold on to your property until the market picks back up again...in the meantime, save yourself the time, trouble and energy on putting your home on the market, especially if your home is not in foreclosure...hold on, the right time will come along...
To end the story in a sweet note, 'sellers' thanked me and are willing to wait - and they gained real estate market knowledge...
Homeowners' Perception of Home Values Not Grounded in Reality - South Florida Business Journal 10/29/08
©2008 Diana Pѐrez
"The fog that thickens the mirror habitually prevents us from seeing beyond ourselves". Diana Perez Rivera
When was the last time you looked at yourself in the mirror? No, not that mirror, the mirror of your soul.
Too many of us focus on our exterior looks yet fail to look from within. You get up in the morning and go about your morning routines. Before you leave your home you do a quick glance in the mirror to double check that you hair is combed, your shirt collar is neatly tucked in place, your teeth are clean and your breath is fresh.
But have you checked yourself lately? You know, the one that has been screaming at you for your undivided attention but you demisely ignore?
We all fall victims of our hurried worlds, trying to get things done, meeting deadlines, going to work, dealing with the kids, our family, friends, our bosses or employees even our collegues. When do we ever stop to enjoy a few minutes to take an actual break? Yet we continue to try to be the best worker, the fastest and highest closer at our jobs. We have to be the one with the biggest homes and fanciest cars - the ones with the most money in the bank, the best golf course memberships - yet we discriminate our spouses, our family, friends, and peers, even ourselves.
Well, what's wrong with obtaining the best things if life? That is why I work my butt off! I am a good father/mother, son/daughter, boss/employee, I work hard and deserve the best and treat myself.
Congratulations! But let's go back a minute here. Does the money that you make really make you happy and give you joy and peace within yourself? Uh-huh. Stop for a second and ask yourself, "When was the last time I actually appreciated and thanked God for the things that I have and for the things that I don't have?
No matter what your religion is, give thanks for the riches of your material possessions for not many are as fortunate as you, especially in today's real estate market and financial crisis. But most importantly give thanks for the richness of your soul, for they truly are the most significant possessions that any human can ever possess, the one's that we can't see, the gem that is so hard to polish and preserve.
Dedicate some time during the day to reflect and meditate; shut your mind off and 'be' in the moment. You are a wonderful human being! By looking within, you will be able to see beyond Your Mirrored Self.
© 2008 Diana Pѐrez
Federal Reserve Chairman Ben S. Bernanke's' speech on October 15, 2008 at The Economic Club of N.Y., N.Y., titled, "Stabilizing the Financial Markets and the Economy", rallies an unfathomable and rather revolting speech.
Ignoring the core problem of the financial disaster that we are facing in today's economic woes does not prevail the Federal government tiptoeing on people's heads and brainwashing them to believe that part of the root of 'the' problem is a loss of confidence by investors...in financial institutions...wanting to bring investors back into the market by ignoring the overall taxpayer's that will be responsible for executives' unscrupulous behavior and unethical business practices in the financing realm.
In the past, the Fed's waited too long before the crash hit in 1929 leading the country into a financial disaster and insolvency almost a century ago. But according to Bernanke's speech, "The economic challenge that we face today are due largely to the complex and sophistication of the financial and economic crisis and the remarkable degree of global financial integration...allowing financial shocks to be transmitted at a speed of light".
With so much sophistication and specialization in technology and financing, how many decades, maybe even centuries will it take to repair and reform our perpetual financial system to restore prosperity in America, yielding financial setbacks to the hard working individuals that do not deserve to pay back money that they did not ‘steal'?
Part of the problem with other recessions were precipitated by "military cutbacks", prolonging or deepening a costly recession, or exacerbating a boom and overheating the economy even more despite the repercussions.
With so many liar loans through state-chattered banks which are less closely regulated by the Fed and are often insured by state agencies instead of the FDIC, Adjustable Rate Mortgages (ARMs), were risk-taking loans from individuals that did not even qualify for a loan and the banks KNEW it.
We may see the financial crisis come out of the dark but it IS a scary thought of what top executives are willing to do next to destroy the financial system in an unlikely endeavor. Financial executives know how to play the 'game' and it's time that the public becomes aware of the risks involved when a country once thought of as 'moral', devalues and demoralizes the dignity and self-worth of the meaning of what it is to be a normal human being and live the 'life' without having to sacrifice 'others'.
This old cliche reminds me of the times that we are facing today but after doing some careful thought and trying to decide whether to blog about the economy, the latest real estate trends and statistics, and so on and so forth, I have come to the conclusion about one thing:
No matter what the news and media say about the economy, especially about real estate, it is the inner peace that we conjure within us that will determine our success at the end of the tunnel. We have to believe in ourselves with conviction that the capabilities and capacities that we set ourselves up to will embark an intangible inner strength that no one can take away.
There is a sense of negativity that is emitted through the television channels and radio stations, and even though we should keep up with the latest news on what is evolving around us, we should not let the news and the media strip away the inner peace and tranquility that we so value as human beings - even if it seems that this country has lost it's core values; that does not apply to everyone.
I don't think that there is any one person not being affected by the uncertainties of the economic times that we are facing today or even tomorrow ~and~ it does not matter if we are wealthy or if we are poor.
It is within this Inner Peace (peace of mind) that we possess that will help us stay alive and will depend on whether we are successful in defeating the worries that mark the financial hardships that we, as a nation, and as a human race, are facing.
This is the time to put our trust and our faith to the test to be able to stay afloat and above ground. I am not implying that we forget about our financial burdens and worries and drop everything, on the contrary. It is how we let these worries affect us that we fret about so much that we forget the familiar terrain of our spiritual essence. These are the times that we sometimes have to put some things to the side and look within us to value what is most important - that we keep our minds sound and our hearts tranquil that after all, everything is going to be alright.
How many times have we not faced fears in our lives that were/were not financial? Have we not been able to find a solution? The only thing that does not have a solution is death. But we are alive and still breathing, right? So, pull up your sleeves, fight for your life, and claim what is yours. Go for it! It is right around the corner... Your Success in Life and in Real Estate!!!
'Happinness Index' Bucks Financial Woes by Eric Weiner
Understanding the Housing and Economic Recovery Act of 2008
By Matt Kombrink
Don't be frightened by the title - this is really good news for the first time homebuyer that has been converted to "user-friendly" language! So, why should you be interested in this information? Read on . . .
If you have purchased, or plan to purchase, a home between April 9, 2008 and July 1, 2009, and have not owned a principal residence for a period of three years prior to this purchase, you are considered to be a first time homebuyer and may be eligible for up to a $7,500 tax credit. This means now is the time to buy!
This sounds too good to be true, right? Well, let's take a look at the requirements:
• Your home must be purchased in the timeframe noted above - 4/9/08 to 7/1/09 • There are income requirements (modified adjusted gross income level of $95,000 for singles or $170,000 for marrieds) • If you are over these income levels, you may still qualify for partial tax credits
Now, don't worry that you will have to go through a ton of paperwork and meet with a financial guru to set things in motion. You simply claim the tax credit on your federal income tax return. According to the NAHB, "Buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding."
Still think there must be some kind of catch? This is really very straightforward, but you need to realize that we're talking about a tax credit here. That means you will eventually repay the government, interest-free, over the next 15 years from the date of your purchase (closing date), or when you sell your home (if there are sufficient capital gains from the sale.)
The NAHB explains it this way - "A home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven."
All things considered, this is a great deal for the first time homebuyer and something that should stimulate the economy.
Matt Kombrink has been working in his family-owned real estate business since 1997. Specializing in Geneva, St Charles and Batavia Illinois residential real estate his team stays on top of the latest trends while maintaining superior customer. Learn more about his team at http://www.kombrink.com or email team@kombrink.com
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