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Insulted, angry, ready to walk away…does this describe you when you get that dreaded low-ball offer? 

Well, let’s face it, selling your home feels personal doesn’t it.  It’s where you live, the furnishings and design are yours, so it’s natural to feel not just criticized, but a little insulted when that low offer lands on your kitchen table for your review.  Remember, you can’t “shoot the messenger”  in a situation like this.  Your Realtor is required to present every offer to you…including the insulting ones.  Even the best of agents have had to present the most ridiculous of offers at some time or another.  This is never fun.

Before you react consider the reaction of this seller:

A CBSHome Realtor recalled the actions of one of her sellers.  She had been working with a seller for some time, and received a contract for the sale of their home.  As she read it, she knew this was not going to make her seller happy.  In fact, she dreaded presenting the low offer so much that she broke one of her “Golden Rules” and called the seller to buffer the news.  Later that evening she met with her clients.  She felt certain this would not go well.  Then something surprising happened.  Rather than alienating the would-be-buyers her client decided to write a letter.  This letter expressed that while they appreciated the time taken to view, consider and ultimately write a contract to buy their home, they would have to respectfully decline the offer.  No counter offer was made.  The seller went on to say that the contract simply didn’t meet their objective and that they wished they buyers the best of luck in finding a new home for their family.

Fast forward now,  after more showings the couple could not find a home they liked more than the home on which they first made an offer.  They came back to their “original” house, and made a second offer that was completely acceptable to both buyer and seller.

This illustrates that there is “A High Road”, and this seller took it.  He could have cursed, blamed his agent, and alienated this couple.  Instead he acted with a cool head, and instead of offending this couple he kept them on his radar screen by writing a personal letter.  The fact that he had the forsight  to react with class and dignity no doubt led to this ultimately happy outcome.

If you are thinking about purchasing a home anytime in the near future and qualify for the $8000 Tax Credit, DO IT NOW.  To be able to get the $8000Tax Credit, the home you are purchasing must be CLOSED   on or before Nov 30, 2009, no exceptions.  This is what the law reads as of this posting.  There are those who think the credit will be extended, but I wouldn’t wait to see if that happens and MISS OUT ON THIS GREAT OPPORTUNITY. 

Some of the qualifications are

1. you must be a first time home buyer
2. there are income limits
3. can’t have owned a home in the past 3 years
4. you don’t have to repay it if you live in the home for 3 years. 

Feel free to call us or your Realtor to find out more information and to see if you qualify.

Today’s big news is the new federal regulations regarding real estate mortgage closings.

The fours key elements you need to know:

1. If the homebuyer is financing the property, these new regulatory and investor guidelines will impact and will dictate the closing date.

2. Upfront fees cannot be collected by the lender (except for credit report fee) until initial disclosures are received.

3. The homebuyer must be provided with a copy of their appraisal a minimum of 3 business days prior to closing.

4. An increase of more than .125% in the Annual Percentage Rate (APR) from the initial Truth in Lending Disclosure (TIL) requires the TIL disclosure to be revised and reissued to the homebuyer. The homebuyer must receive a revised TIL disclosure at least 3 business days before closing, providing the homebuyer with the time required to determine if the homebuyer is comfortable with their loan choice.

Potential impacts to the APR:

• Unlocked Rate
• Change in loan amount
• Product change
• Rate re-lock due to market improvement
• Change in closing date
• Changes to fees, inclusive of settlement agent fees

The combination of these items will make anything less than 30 days closing very difficult and 45 days is a more likely scenario. Now more than ever the buyer, lender, real estate agent and title agent will need to communicate and cooperate to ensure a successful and timely closing.

For those who may still want to take advantage of the $8,000 tax credit; it is imperative that you start your search for your new home as soon as possible. Remember, you have to close on your new home prior to December 1st to qualify.

For a more detailed handout outlining the new mortgage process, complete with a sample ’closing calendar’ email bill.swanson@cbshome.com.

Bill is an agent with over 20 years experience at CBSHome Real Estate; an affiliate of Berkshire Hathaway.