Buyers are NOT… One Price Fits All!

  Why would Investors continue to pour money into these losers? Fannie Mae and Freddie Mac, have together received more than $100 billion in emergency federal aid from the U.S. Treasury to cover their losses, plus they have more than $5 Trillion in outstanding liabilities.* Investors have been willing to lend Fannie Mae and Freddie Mac’s hundreds of billions of dollars, and buy their mortgage securities, despite overwhelming financial losses WHY??? Why would Investors continue to pour money into these losers? Because they believe the U.S. government will make them whole on any losses. Why? Because the Obama administration has gone to extraordinary lengths to assure investors around the world that they will always be paid back, offering unlimited financial assistance to Fannie and Freddie. So if this is true then why is Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee saying, “People who own Fannie and Freddie debt are not in the same legal position as those who own Treasury bonds, and I don’t want them to be.” Frank said, however, the government might decide to pay back investors 100 cents on the dollar even if it has the legal right to make them suffer losses. “The fact is they have to do some of this to avoid loss of foreign investment,” he said. “We may now decide to bail you out. . . . But that’s different from being legally obligated.” Is this about more broken promises and political double speak? Is Barney pushing our housing finance system off the track, Fannie Mae and Freddie Mac, and come on let?s be honest, will we get our money back? *Obama administration has rejected incorporating that debt onto the federal books.

If you are considering Selling your home within the next year or two… there is no time like the present. Rather than sitting and waiting on the sidelines…it may be time to Get in the Game! There are signals (sirens) you need to consider: 1.) increase in the discount rate 2.) phasing out of special loan programs; tax credits; concessions  3.) by the end of March the Fed will complete its purchase of $1.25 trillion in mortgage-backed securities.  4.) Warnings of a double-dip recession We do not know for certain what impact these steps will have on the value of your home. (More than likely, it will not help to increase the value.) However, you do know where you stand right now as far as what your home is presently worth. Why not list your home at a fair market price (based on input from comparables made available by top local agents) plus offer incentives; Closing costs or discount points at closing to reduce the Buyer’s interest rate and payment. Try to capture Potential Buyers who are interested in taking advantage of the tax credit. If the credit is not extended, or expanded, you only have a small window of opportunity. Get in the game. If your home sells now, it will be one less thing to concern yourself with as you prepare for the next chapter in your life. Enjoy!  

The home buyer tax credits are expiring on April 30, 2010. To qualify for the credit, a contract must be signed and sealed by that date and delivered/closed by June 30, 2010. First-time buyers can get up to $8,000 and move-up buyers can qualify for up to $6,500. First-time is somebody who has not owned a home in three years. Move-up buyers are those that have lived in their home for at least five out of the last eight years. Again, these both expire April 30, 2010 and no one knows if Congress will renew it.

Time is running out for those who are thinking about Buying Now.

We represent Motivated Sellers who are looking for a competitive edge in today’s market. In addition to your Realtor’s marketing plan, open houses, newspaper ads, internet listings… Just as you may choose to hire a Home-Stager, 321ADVANTAGE provides a value-added service that infuses energy and excitement into the marketing of your property. We do not discriminate! We team up with ALL Sellers, ALL Realtors, Builders and Lenders and act as “Financial Home Stagers” - we make your home more attractive, interesting and appealing FINANCIALLY.   Win! Win! Opportunity!

Example: Buyer is approved for a $300,000 mortgage at 5.5%/30 year fixed.

321ADVANTAGE Seller has agreed to a 3 2 1 Seller-Funded Temporary Buydown.                                     (Seller pays $12,690.37 at closing.) Year 1: 2.5% x $300,000 = $1,182   ($518/month savings) Year 2: 3.5% x $300,000 = $1,343   ($356/month savings) Year 3: 4.5% x $300,000 = $1,514   ($183/month savings) Year 4-30: 5.5% x $300,000 = $1,695

In this market you have to add creativity and value to create a competitive edge and expand your pool of potential buyers. Real Estate Expert, Barbara Corcoran suggests that if you really want to sell your home, you might consider: Renting a local billboard in your neighborhood. That’s pretty funny stuff!  Barbara C. also suggests a financial goody bag and hiring a professional home-stager. We recommend that you combine the two and consider “financial home staging”. Make your home more interesting, attractive and appealing FINANCIALLY. We provide a special, value-added service that infuses energy and excitement into the marketing of your property. We disagree with Barbara when she says, “Offer a big broker incentive”. We believe in improving market psychology through incentivizing the BUYERS, not the Realtors. You need to sweeten the deal so that you open the door to entice BUYERS by enhancing affordability. How do you make a home more affordable? Lower their monthly payments and allow them to comfortably and confidently ease into homeownership. Join the 321ADVANTAGE NETWORK! SELL SMARTER! SELL FASTER! NEt MORE!