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This is the second installment of the “I couldn’t have said it better myself” post…
Some call it negotiating. Others call it playing mind games. Read Margaret Woda’s article about buyer’s playing mind games with sellers.
I was in a very similar situation last year. Except that I was the agent representing my brother and his wife in the sale of their home. Mixing family and business is never easy.
I can attest that my brother and sister-in-law felt the exact same feelings described in the article.
Remaining emotionally neutral is extremely important. But there were times when it was difficult for them to not take things personally.
“What do you mean _____ is too old? Its worked everyday we’ve owned the home (5 years).”
“Now you want us to replace it? At our cost!?!?”
It came to a point when they almost would have sold it to another person, at a lower price, than to finish the sale.
But in the end, being in a new home home won out. But just barely…
When you’re ready to make an offer, yes it seems impersonal. It’s just a house. But remember that this ‘house’ has been a ‘home’ for the current owner for years, maybe even decades.
Yes, you want to look out for your bottom line. But at what cost? Will it be OK if you lose this home? How much is it worth to you to be in your dream home?
There are two sides to every situation. Considering both can have a dramatic impact on your situation. For the better or worse.
Last chance to read the thought process a seller goes through when selling.
*Update*
Coincidentally after this post went live Jay Thompson of Thompson’s Realty in Phoenix, AZ posted an article discussing if you’re able to get proof of a competing offer. The interesting story is when another agent tried to bully a buyer into increasing an initial offer by flouting “another offer” in their face. And then the next day, the original offer is accepted…
Read Jay’s reasoning behind why, as a buyer, you’ll never know for sure if there is another offer. Plus reasons why agents are unable to disclose information relating to the offer.
Each is an example of why you shouldn’t play mind games in real estate.
Less than 75 days left… Then poof they’re gone.
Just realized that the tax credits are ending only a wee-little bit after taxes are due… Yikes. Hopefully taking advantage of the tax credits can put a smile on your face after the tax-man taketh away.
Corollary–we’ve already received our tax refunds AND they’re also already gone.
Poof, just like the tax credits.
What’s stopping you from getting me on the horn about a question or two? Even easier you could send me an email. Look up and to the left a little bit…
Check out the following links:
Stay classy Wisconsin Rapids!
…or how long it will take to sell all the homes currently for sale in Wisconsin Rapids…
I don’t like to make predictions. At some point in every listing presentation, usually after we start to discuss a listing price, a home owner will ask how long it will take to sell their home. And that’s an answer I really don’t have.
I could guess. But I always feel conflicted because in the end, the buyer will control how long the home is for sale.
I know what you’re thinking… I bet it’s something along the line of: Really?!?! The buyer has the last say in how long a home is for sale… I know, I know.
How about if I take out ‘buyer’ and insert ‘market’:
The market controls how long a home is for sale.
Does that make more sense?
But if I had to give you one piece of data to help answer your “how long” question, it would be the Absorption Rate. Remember, data never lies…
What exactly is the Absorption Rate?
The absorption rate is the calculation of how long it will take for all homes on the market in Wisconsin Rapids to be sold, or absorbed, at the current rate of sales.
Below you will find the activity for Wisconsin Rapids during the past 9 quarters:
As you can see the number of homes sold in the second half of 2009 was considerably higher than 2008.
You can guess why, right? (Hint: it was some type of tax credit)
And remember, the First-Time Home Buyer Credit has been extended AND they’ve also added a new tax credit for home owners who’ve lived in their home for at least 5 years. So if I had to predict (ignore, for a second, that I said I dislike predictions 
) I’d bet money that more homes will be sold during the first quarter of 2010 compared to 2009 as well.
Months of Inventory
Realtors generally agree that 6 months of inventory is the magic number. Below 6 months of inventory you have a sellers market. Anything above you have a buyers market. As you can see its been a buyers market for awhile.
But, as more and more buyers hit the market, the the number has been pushing itself back towards the magical 6 months of inventory. And when the number is close to six everyone wins. Why? Because a seller knows they should be able to sell in a reasonable amount of time and a buyer knows they still have choices and time to find the right home.
Personally, I know the market is active. In the past month I’ll have added 3 new listings. In the past two days I’ve fielded calls from three different prospective buyers.
And I know I can tell them all that it’s a good time to be buying or selling a Wisconsin Rapids home…
Question: How much time, energy, research, and conversation will you put into choosing your Realtor?
Continue to ponder that answer as you continue reading…
First, I heart Seth Godin. You know Seth, the author of some really cool books like: Purple Cow
, The Dip
, Meatball Sundae
, and Tribes
. 
Click here the rest of his very cool and very thought provoking books.
Not only have I read all his books but I read Seth’s blog everyday as well. Why? I guess it boils down to his ‘perspective’ on all things.
Recently he wrote an article titled “The First Transaction.” His point being:
Why should a business expect a person who just walked into their store for the first time, or just found their website, or just met them at a Chamber of Commerce event to make a purchase that very moment?
What do you know about their business? About them? Do they create quality products? How do they treat you if it breaks and you need to return it? What are their current customers saying about them? Will they purchase from them again?
You’re not in the business of throwing your money away…
The digital world is making finding these answers easier and easier. Twitter, Facebook, Google search, blogs…
The internet makes it easy for us “to connect, transfer knowledge, engage in a way that builds trust” so that way one day you’ll “trust me enough to send some money my way.”
Or in my case, you’ll trust me enough to buy or sell your home with me.
Lets back-up to my original question: How much time, energy, research, and conversation will you put into choosing your Realtor?
First, if you’re selling your home, how much will you pay in commission fees to your Realtor?
If you’ve only just met, or you’ve only heard about your Realtor… Are you comfortable having your first transaction with this person being worth a few thousand dollars?
I bring this up because even if we’ve never met IRL (in real life) you’re able to know me by my 18+ months of writing about Wisconsin Rapids real estate here on this site. Or my 10 months writing on GoRapids.com. Or by following me on Twitter. Or Facebook. Or by Googling me.
By reading my articles you can see my ideas. You can know what’s important to me. You’ll know what to expect when we meet face to face.
I’m trying to make it easy for you to trust me… To make you feel comfortable…
How have I done?
Following are many of the most popular questions about changes made to the Homebuyer Tax Credit.
Remember, homeowners who’ve lived in the home for 5 out of the past 8 years now are eligible for a tax credit up to $6500… Have you called yet to get your home on the market? It’s free money…
Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit:
Question: Existing homeowner credit: Must the new home cost more than my old home?
Answer: No. If you move from a high cost area to a lower cost area you still meet the eligibility requirements for the $6,500 credit.
Question: I’m an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I’ve lived in my current home for more than 5 consecutive years and am within the new income limits. I went to closing on November 20. I accepted the offer before the bill was signed, but my closing happened after the signing took place. Do I still qualify for the new $6,500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of closing.
Question:I’m a first-time homebuyer, but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I’ll be covered, however, by the new income limits. Because the new rules will have been signed into law by the time I close on my home, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, with is the closing date.
Question:I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6,500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Question:I owned my home for 10 years, but sold it two years ago and have been renting since. If I purchase a home, will I be eligible for the $6,500 tax credit if I meet all the eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you’ll qualify for the $6,500 credit. For example, say Cathy and her husband bought a home in 2000 and lived there until 2008 when they divorced. Whether Cathy has been renting or bought in the interim, she WOULD INDEED be eligible for the credit because she owned a home and occupied it as her principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as she lived in that home for 5 years straight what she’s done since doesn’t impact her eligibility.
Question:I’m an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Did I have to go to closing before December 1? How does the extension affect me?
Answer: You did not have to close before December 1. Once the legislation was signed, it was as if the November 30 date never existed. Therefore, as long as the contract settles before April 30, 2010 (or July 1, worst case), the purchaser will be eligible for the credit.
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PHONE: (715) 572-8372
My name is Adam Holberg and I’m a Realtor with First Weber of Wisconsin Rapids. This website is designed to inform and help bring conversation to a topic I love, real estate.