Berlinnhrealestateblog.com: January 2009

5 biggest Real Estate Myths Please click the link for a video clip of the 5 biggest real estate myths.

The top 5 Home Buying Real Estate Myths for 2009

5 Biggest Real Estate Myths:

1. Sellers are desperate
2. Don't buy before prices have bottomed
3. You can't buy a home unless you have 20% down
4. Now's the absoulte worst time to sell
5. Before you refinance, shop around.

Seller myth No. 1: Now's the absolute worst time to sell. Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you're a homeowner who wants to trade up, the loss you'll take on your current home will be more than offset by the bargain you'll get on the next one.

Seller myth No. 2: Never respond to a low-ball bid. All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.

Seller myth No. 3: The first offer is never the best offer. Most sellers believe that it's smart to hold out for something better. But four times out of five, the first offer is the best you'll ever see.

Seller myth No. 4: 'I can always reduce my price later.' Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you'll just help sell everyone else's home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.

Seller myth No. 5: Before you refinance, shop around. You can if you want, but you'll usually get the best deal from your current lender. And you'll be able to negotiate your closing costs.

Buyer myth No. 1: The longer the house is on the market, the more you can negotiate. When buyers ask, "How long has this property been on the market?", they think "six months" means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.

Buyer myth No. 2: The sellers today are desperate. Most aren't. Always ask why the sellers are selling. It's the key to finding how motivated and anxious they are. "I'm being transferred to Dallas" is a very different answer than "We'd like to find something bigger." The first homeowner is hot to trot.

Buyer myth No. 3: You can't buy a home today with less than 20 percent down. FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.

Buyer myth No. 4: You need good credit to get a good loan. Once again, the FHA to the rescue! They're happy to lend money to buyers with bad credit.

Buyer myth No. 5: You shouldn't buy before prices have bottomed. You can't sharpshoot the real estate market. Once you identify the "bottom," prices have already moved up.

Berlin NH Federal Prison Update: The calender states winter but the construction of the Federal Prison is still going smoothly with minor delays. Estimates for the completion of the prison are late 2010 early 2011. I have spoken with a source that stated the hiring process could begin in the summer 0f 2009.

The Federal Prison will be located on East Side River Road in Berlin, NH. The prison site is located north of the city of Berlin and abuts the town of Milan, NH. The Federal Prison much like the State of NH Prison will be out of plain view and tucked away amongst the miles and miles of forest. They cannot be seen from the road. East Side River Road is a less traveled road and is in noway a major traffic route. Please click on the link to view a Google Map of the State of NH Facility: Please click here. Type in State of NH Prison. Once there scroll to your right, you'll see Success Loop Road, this is where the Federal Prison will be located.

For more information on the prison sites or information on Homes for sale in Berlin NH & the surrounding towns please don't hesitate to contact Matt Martel from RE/MAX Northern Edge Realty (603) 723-0521 or matthewmartel@remax.net

If you are unable to make your mortgage payments under any circumstances and wish to avoid foreclosure, the following options may be available:

• Short Sale

• Allows you to sell your home and use the proceeds to pay off your mortgage loan. This option may be available even if your home's market value is less than the total amount you owe.

• Debt Forgiveness

• In certain circumstances, you may be eligible to have part of your principal balance forgiven in order to help you to refinance your home or modify your mortgage loan.

• Deed in Lieu of Foreclosure

• Allows you to voluntarily transfer legal ownership of your property to the lender when you are unable to sell your home at current market value.

What is a Short Sale?

A short sale is when a homeowner facing FORECLOSURE sells his or her property for less than what is owed to the mortgage lender. The sale has to be approved by the lender.  

Are you behind on your mortgage payments due to an adjustable-rate loan, job loss, sickness, divorce or for another reason not specified. If so, please contact me today for a FREE CONFIDENTIAL APPOINTMENT, I may be able to assist you out of your current situation via a Short Sale.  

It is possible to walk away free & clear of a Foreclosure with NO MONEY out of YOUR pocket!   Contact me today for addtional information (603) 723-0521 or matthewmartel@remax.net  

Is foreclosure looming? I can help! Contact Matt Martel from RE/MAX Northern Edge Realty today! (603) 723-0521!

Are you looking to purchase a bank owned home in the winter? If so, you should read this post.

1) Bank owned or foreclosures as they are also known are a great way to get a home on the cheap. Banks have very high inventories and they are ready to get these homes off their books.

2) Most if not all bank owned homes are sold "As Is"- Let the buyer beware....Why? The banks (sellers) are not local, most are thousands of miles away from the location of the home you want to buy. The bank has no idea about the home, it's condition or any problems associated with the home.

3) You have to remember the real estate agent who you are working with is in the same boat as you, he/she knows nothing about the home unless they can see it, smell it, hear it etc...

4) My point: Please get a home inspection, not from an uncle or a friend of the family either! Contact a professional home inspector in your area to inspect the entire home.

5) For example: Why is this so important? Well in the winter months beginning in northern NH around October, owners who are in the process of getting foreclosed on usually could careless what happens to the home, they feel they are gonna lose the home anyway so who gives a %#@&!

6) The owners vacate the home never getting the home winterized thus the home freezes up! Pipes will burst & in the worst case the furnace will be ruined! Sometimes the bank will have a company winterize the property, this company will leave notices through out the property indicating that the property was winterized with a date when it took place. That may put you at ease and you will think all is well with the furnace etc... Please get a Home Inspection! You never know and you should expect the worst when purchasing a bank owned home. Don't be afraid to purchase a bank owned home just be pro-active when doing so. A home inspection in northern NH ranges from $350-$500 which is alot better than not having one and then finding out the home froze up and it could cost you in the thousands! Remember these homes are sold "As Is" and you will sign many documents explaining just that. Your signature states you understand this. So if you waive your right to an inspection and you come to find out the home froze up and the furnace and the plumbing are ruined, please don't blame the real estate agent or the bank, you had your chance!  Please get a Home Inspection! you'll be happy you did! Good luck.

First-time homebuyers in the Berlin, NH area would you like to receive $7,500 from Uncle Sam?

First-time home buyers -the government enacted a benefit to help you make your first home purchase? The incentive gives first time home buyers a federal income tax credit up to $7,500. Part of the "Housing and Economic Recovery Act of 2008″, creates a temporary, federal tax credit to provide incentive for first-time home buyers to purchase a home. 

 Rob Dietz, economist for the National Association of Home Builders (NAHB) points out, the effects of the credit may extend far beyond the first-time home buyer; as first-time home buyers purchase homes, many home sellers will be able to move up and invest their sales profits into new homes as well.

Since the money must eventually be paid back, the tax credit essentially acts as a no-interest loan that reduces your tax liability for the year it is claimed.  For instance, home buyers who close on a new home purchase in 2008 (after April 9) can claim the credit on their 2008 tax return.   If their tax liability for the year is $5,000, applying the $7,500 tax credit would cover their tax bill and provide a $2,500 refund.  Any taxpayers already due a refund would still receive the full amount, plus the $7,500 tax credit for buying a home.

First-time home buyers who claim the tax credit are expected to begin repayment starting in the second tax year after they close on their home and continue the pro-rata payback on their federal taxes for a 15-year period.  For home buyers who claim the full $7,500 credit, the payments would amount to $500 a year.

If the buyer sells the home before the 15-year period, the remaining credit would be due from whatever profit was made on the sale.  In cases where profits from the sale were less than what was owed for the credit repayment, the remainder would be forgiven.

Consider this illustration given by the NAHB: at 7% interest, a $7,500 loan would cost the borrower about $4,200 in interest over a 15-year period.  To finance the $7,500 through your 30-year mortgage at a 7% interest rate, a homeowner would pay $8,100 in interest over the life of the loan.  If you have already closed on a new home since April 9, 2008, the tax credit is retroactive back to that date, so you may be eligible to take the tax credit this year.

Here are some quick facts to determine if you qualify for the first-time home-buyers tax credit:

First Time Home Buyers - to be eligible, an individual must not have owned a primary home for the past three years, but may have owned a home prior to that.

Taypayers - U.S. citizens and resident aliens who file income taxes qualify for the tax credit.  Non-resident aliens are not eligible.

Income Range - to qualify for a full tax credit of $7,500 (or 10% of the cost of the home), someone filing their taxes as single or head of household can earn no more than $75,000.  Couples who file a joint return must earn $150,000 or less.

Individuals whose incomes fall between $75,001 and $94,999, or married couples who file jointly with incomes from $150,001 and $169,999, are still eligible for partial credit.

Taypayers earning more than $95,000 (single) or $170,000 (joint) are not eligible for this credit.

What do you have to do to claim the tax credit? If you meet the criteria, you have to do is request the credit on either your 2008 or 2009 federal tax return that will be amended for that purpose. 

 Home buyers who close in 2008 can take the credit on their 2008 return.  First-time home buyers who purchase a new home in 2009 before the July 1 cut-off can choose to file an amended 2008 return or request the credit on their 2009 tax return. Please not this is not tax advise. consult your on tax person for all the details of the bill and how it relates to you.

Have great day

 For more information don't hesitate to contact Matt Martel from RE/MAX Northern Edge Realty (603) 723-0521 or send me an email: matthewmartel@remax.net

Visit me online at www.ask4mattmartel.com

For sale by owners:

1) Most often For Sale by Owners do not have their home listed with an agent because their asking price is above the market price and often times their assessment of value is not objective. They may also feel they are not required to tell the Buyer any of the negative details of their property or the area. It is best to have an agent working for you, with your best interest as their number one goal,and with an objective view of each property as an investment.

Buying a home without a real estate agent:

2) Assuming you can do it all yourself. The Internet allows users to handle for themselves many of the tasks that could once only be performed by real estate agents. The NAR profile, for example, found that the number of home buyers who first learned of their homes on the Internet has been rising in recent years-to 32 percent in 2008, up from a tiny 2 percent in 1997. Accordingly, the number of home buyers who first learned of their homes through agents has been declining-it was at 34 percent in 2008, down from 50 percent in 1997.

But although the Internet can provide heaps of helpful tips and research, it would be a mistake to assume that the Web is all you need to buy a house-unless you are an experienced real estate investor. The process of purchasing real estate can be extremely complicated from a legal standpoint, and it's easy to make a mistake if you don't have an expert advising you. And when it comes to something as expensive as real estate, those mistakes could cost you thousands of dollars. "Doing all the paperwork yourself is a huge mistake," says Joshua Dorkin, CEO of BiggerPockets.com, a real estate networking and information site. "There are so many things you can miss on a contract."

For more information on buying or selling a home in Berlin, NH please don't hesitate Matt Martel from RE/MAX Northern Edge Realty (603) 723-0521 or email me at matthewmartel@remax.net

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Northern NH Real Estate visit RE/MAX Northern Edge Realty online.