Brokers Blog

Spending on remodeling is expected to reach $316 billion this year alone and the number is still climbing, according to the Home Improvement Research Institute. So make sure you know exactly how big a renovation you can afford and whether it justifies the time you intend to spend in your revamped home.

The Nest, a home-improvement Web site, says before making any big changes to your home you should ask yourself these big questions:

1. How long do I plan to stay in my house after the renovations? The longer you plan to live there, the more creative you can be. But if you're planning on selling the house in the next five years, keep potential buyers in mind with your choices. In the latter case, for instance, go with neutral colors in the kitchen and bathroom, and consider maple cabinets. Some people hate oak, others hate cherry, but the majority can live with maple.
   
   
2. Am I doing just cosmetic fixes or am I ready for an all-out overhaul? It's OK to make small changes one at a time, but think long-term about the next step. For example, if you're buying a new sink, buy one with enough holes on the deck for the faucet, sprayer and soap dispenser you might want to add on later. (Cutting more holes into stainless steel or porcelain after the sink is installed is an onerous job you don't want to get stuck with.) And if you know you're going to buy new cabinets later, don't replace the countertop with expensive granite now. The chances of reusing it are very slim -- either it breaks when you try to remove it, or it doesn't match the footprint of the new cabinets.
   
   
3. Am I prepared for the home upheaval? Be realistic about how long these changes might take. Renovations can go on for months, so you need to be prepared to make do without that bathroom, kitchen or bedroom. When checking references before you hire your contractor, be sure to ask if the company finished the work on time. You'd be surprised how quickly a week can turn into a month. And if you're bunking up with your in-laws during renovation, that month can seem like a year.
   
   
4. Are the renovations keeping with the style of my home? Any big changes you make to a home inside should reflect what future buyers will expect from the outside. If you live in a Victorian house, don't make it too contemporary. People who see a historical exterior will expect a historical interior, so stay true to the details. The same goes for a contemporary or modern home, where future buyers may not expect old-fashioned details like antique crown molding.
   
   
5. Are my DIY choices reasonable? You may consider yourself handy, but many do-it-yourself jobs demand your time more than anything else. If you have a full-time job, are you capable of taking on a second one? Some makeovers that are not technically difficult can take longer than you think. For that reason, if you start any job yourself, try to sample it before committing to the whole thing. For example, while refinishing cabinets with a new stain isn't rocket science, sanding down each one can take forever.

A final tip: if you do plan to follow through with a large-scale renovation, do the smallest room in the house from start to finish -- the insulating, rewiring, painting, refinishing, tiling -- so you gain a sense of accomplishment.

1.  All government-sponsored zero down payment assistance programs are eliminated as of October 1, 2008.  To be eligible for these programs, all home loans would need to be approved by September 30, 2008.

2.  The minimum down payment for Federal Housing Administration (FHA) loans, the largest purchaser of mortgages in the United States, would increase from 3 percent to 3.5 percent.

1. Who is eligible to claim the $7,500 tax credit?
   First time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.
   
   
2. What is the definition of a first-time home buyer?
   The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.
   
   
3. What types of homes will qualify for the tax credit?
   Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums.
   
   
4. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
   Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.
   
   In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
   
   
5. What is "modified adjusted gross income"?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
   
   To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
   
   
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.
   
   
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.
   
   Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.
   
   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
   
   
8. Does the credit amount differ based on tax filing status?
   No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.
   
   
9. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
   In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.
   
   
10. I heard that the tax credit is refundable. What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
    
    For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).
    
    
11. What is the difference between a tax credit and a tax deduction?
    A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.
    
    A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.
    
    
12. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    No. The tax credit cannot be combined with the MRB home buyer program.
    
    
13. I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
    No. You can claim only one.
    
    
14. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
    
    
15. Does the credit have to be paid back to the government? If so, what are the payback provisions?
    Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, 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.
    
    
16. Why must the money be repaid?
    Congress’s intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.
    
    
17. Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
    Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.
18. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
    Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
19. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

WASHINGTON, D.C. - The U.S. House of Representatives passed H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008.  The bill includes a temporary, $7,500 first-time home buyer tax credit which many believe will jump start the housing market and bring buyers off the sidelines.

Kieran P. Quinn, CMB, Chairman of the Mortgage Bankers Association (MBA) hailed the House of Representatives passage of the omnibus housing bill. The bill, which passed the House by a vote of 272-152, will now go to the Senate - where leaders have indicated it will pass - and then to President Bush, who has stated he will sign it.

"This legislation will do so much good for so many people," said Quinn.  "The FHA modernization and GSE oversight reform provisions will help stabilize the housing market.  The FHA rescue plan will help thousands of families across the country refinance their mortgage and stay in their homes, while the tax incentives will encourage potential buyers to get off the sidelines and help stabilize home prices.  And the GSE backstop provisions will help quell the turmoil in the credit markets.

"And not to be overlooked is an effort by Chairman Frank and Chairman Rangel to spur development of affordable housing by harmonizing the Low Income Housing Tax Credit and FHA multi-family insurance programs.  This is a cost free way to make these two important programs work together to build more affordable housing across the country."

"Considering the current state of the real estate, mortgage and credit markets, I can confidently say this is the most important piece of housing-related legislation that we have seen in more than a generation.  It will help stabilize the mortgage market, stop the downward spiral of home prices in parts of this country and provide additional tools for lenders to work with borrowers to avoid foreclosure whenever possible."

Among the provisions in the bill:

• FHA Modernization:  Authorizes a $25 million appropriation to improve technology, processes, program performance, eliminate fraud and provide appropriate staffing. Effective January 1, 2009, it also increases the FHA loan limit to the lesser of 115 percent of the local median home price or $625,500 with a floor for lower priced markets of $271,000, establishes a 12-month stay on FHA's proposal for risk-based premiums, sets the down payment requirement at 3.5 percent and prohibits seller-funded down payment assistance (both direct or through a third party).
• GSE Oversight Reform:  Creates a new regulator (five-year term, appointed by the President, confirmed by the Senate) with oversight authority similar bank regulators, establishes a new affordable housing fund and capital magnet fund to be funded by a 4.2 basis point fee on all new loans, significantly changes the affordable housing goals and raises the conforming loan limit to the higher of $417,000 or 115 percent of the local median home price, not to exceed $625,500 (the stimulus limits remain in effect until January 1, 2009).
• FHA Rescue: Creates a voluntary program for lenders to write down the loan balance in exchange for an FHA guaranteed loan not to exceed 90 percent of the newly appraised value of home. The lender would pay a 3 percent FHA loan origination fee.  To qualify, the borrower must have a debt-to-income ratio above 31 percent on the original loan.  The program is capped at $300 billion.
• Tax Incentives:  Creates a $7,500 refundable tax credit for first-time home buyers, expands the volume cap for the low income housing tax credit, allows for tax-exempt treatment of bonds guaranteed by the Federal Home Loan Banks and exempts the low income housing tax credit from the alternative minimum tax.
• Low Income and Affordable Housing:  Encourages the development of low-income and affordable housing by harmonizing multi-family FHA mortgage insurance programs with the low income housing tax credit.  Allowing these two programs to work together will result in more effective uses of both programs.
• GSE Backstop:  Authorizes the Treasury Secretary to temporarily increase the GSEs' line of credit and to, if necessary, buy equity in the GSEs in order to provide confidence to credit markets. Also provides a role for Treasury and the Federal Reserve in GSE oversight to ensure safety and soundness.
• TILA Reform:  Requires TILA disclosures to be delivered seven days prior to loan origination, requires that disclosures include examples of how payments would change based on rate adjustments in addition to disclosing the maximum possible payment under the loan terms and mandates that the consumer receive early disclosures before paying anything more than a nominal fee that covers the cost of a credit report.
• Empowering States:  Raises the cap by $11 billion on tax-free bonds that state housing finance agencies may use to help at-risk homeowners by refinancing troubled loans and appropriates $4 billion for states to purchase and renovate abandoned and foreclosed properties.
• Licensing:  Encourages state officials to create a national licensing system for residential loan originators, allows HUD to create a licensing system for those states that fail to enact their own, establishes minimum qualifications for all loan originators and requires federal regulators to create a registry for banks and thrift employees who originate loans.  

Buying bank owned properties
There is a lot of interest in buying bank owned properties these days. A lot of information, some good and some bad, is floating around about the subject.   Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”.  The fact is that there are no secrets, and to make money does require effort.

What’s an REO?
REO stands for “Real Estate Owned”.  These are properties that have gone through foreclosure and are now owned by the bank or mortgage company.  This is not the same as a property up for foreclosure auction.  When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process.  You must also be prepared to pay with cash in hand.  And on top of all that, you’ll receive the property 100% “as is”.  That could include existing liens and even current occupants that need to be evicted.  A REO, by contrast, is a much “cleaner” and attractive transaction.  The REO property did not find a buyer during foreclosure auction.  The bank now owns it.  The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing.  Do be aware that REO’s may be exempt from normal disclosure requirements.  In Oklahoma, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell you about any defects they are aware of.

Is it a bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity for easy money.  This simply isn’t true.  You have to be very careful about buying a REO if your intent is to make money off of it.  While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it.  When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale.  The bargains with money making potential exist, and many people do very well buying foreclosures.  But there are also many REO’s that are not good buys and not likely to turn a profit. 

Ready to make an offer?
Typically the REO department will use a listing agent to get their REO properties listed on the local MLS.  Before making your offer, you’ll want to contact the listing agent and find out as much as you can about what they know about the condition of the property and what their process is for receiving offers.  Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it.  As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender.  After you’ve made your offer, you can expect the bank to make a counter offer.  Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer.  Realize, your Realtor will be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends.  It’s not unusual for the process of offers and counter offers to take days or even weeks. But if you play your hand right it'll be well worth he wait.

Why use a Realtor?

Should I sell by myself (FSBO)?

If you're thinking about buying a home in Oklahoma you had better do it fast.  But, if you're thinking about selling, you may want to postpone the notion for a few years. 

Despite the fact that the national housing market is in a slump, the Oklahoma Association of REALTORS® (OAR) says Oklahoma is seeing great numbers on average, and the western part of the state is really booming.  It seems that home prices keep rising in Lawton.  "You can see just driving around looking at all the new construction in all the different areas...It's wonderful," says President of the Lawton Association of REALTORS® Betsy Parks.

It's not just Lawton, either.  "It's in Duncan and Altus, and all the areas in our Western District," says Parks.  In 2007, home values in Lawton increased by 5.68%, in Duncan they increased by 17.4%, and in Altus, the number of homes sold increased by 34% - a sharp contrast with the country as a whole.

The majority of people in western Oklahoma probably believe the housing market is down, and while that may be true for other states, it isn't for Oklahoma.  "In fact, ‘the sky isn't falling' on Oklahoma real estate market," says CEO of the Oklahoma Association of REALTORS® Lisa Yates.  "According to our MLS numbers Oklahoma housing values statewide were up 4.2 percent in 2007."

So, OAR is making Oklahomans aware of the fact that the market is strong.  Their campaign is called "Good Thing You're in Oklahoma," and there's at least one new home buyer who is glad.  Dustin Stanton is building a new home in east Lawton.  "I didn't know what to expect.  We had good luck in selling our house in Jenks, so my thought is that maybe in Oklahoma there's not been a negative crunch on real estate," he said.  "Our house sold in less than 2 weeks in Jenks, so we've been very happy with the Oklahoma real estate market at this time."

Real estate agent Alan Boggs sold Stanton his home.  He says the market crunch is more of a coastal problem.  "Here in the heartland, we took care of business, and so it's taking care of us," he says. 

OAR says as far as the housing market is concerned, it's like comparing Oklahoma's weather to New York's weather.  Why would you check the weather in New York if you live in Oklahoma?  So, why worry about the real estate market in other areas of the nation when it's good right here at home? 

OAR says the increase in Lawton home values has continued to climb for seven straight years.

OKLAHOMA CITY, Oklahoma, March 6, 2008 -- Home values in Lawton increased in 2007 by nearly six percent, according to a report released today by the Lawton Board of REALTORS®. The report, based on local and statewide polling sponsored by the Oklahoma Association of REALTORS® (OAR) contradicts national media coverage on a national residential housing downturn.

“The housing market in our part of the state is trending in a positive direction and not reflecting what's happening on a national level. That's why we believe it’s important that Lawton residents know the facts about our community,” said Betsy Parks, 2008 president of the Lawton Board of REALTORS® – one of the 25 OAR local boards in the state. “The most important fact emerging from our research is that home values remains a bargain, compared to almost any housing market in the nation, and a great investment in terms of the increasing value of our residential property”.

Home sales were up slightly in 2007 based on a year-by-year comparison. The Lawton Board of REALTORS® reported sales of 1,716 existing homes in the Lawton MLS (multiple listing service) area in 2007. The average annual sales total of existing homes in Lawton over the three-year period of 2005 – 2007 is 29.70 percent higher than the average sales total in the previous three-year “window,” 2002 – 2004. An average of 1,692 homes sold per year from 2005-2007, compared to 1,304 homes sold per year between 2002-2004.

The 2007 increase in home values in the Lawton area and across Oklahoma is in sharp contrast to the national home real estate picture. The National Association of REALTORS® recently reported that the national median existing home price for all housing types decreased by 1.4 percent in 2007, from $221,900 in 2006 to $218,900 last year.

McCullar says homeowners in our state should be confident about the value of their homes, given that 2007 marked the seventh year in a row in which Oklahoma home values have appreciated. The Association’s consumer Web site, WhyRealtorsWork.com, will be a source of information regarding the benefits and value of home ownership throughout the “Good Thing You’re in Oklahoma” campaign.

The Oklahoma Association of REALTORS® is a professional trade association that represents nearly 11,000 of Oklahoma’s real estate professionals involved in all aspects of the real estate industry.

The term REALTOR® is a registered trademark, which identifies real estate professionals who subscribe and adhere to a strict code of ethics as members of the National Association of REALTORS®.

These REALTORS® are also members of OAR as well as their local board or association of REALTORS®,including the more than 80 real estate professionals who are members of the Lawton Board of REALTORS®.

OKLAHOMA ASSOCIATION OF REALTORS® 2002-2007 SUMMARY

Spring has Sprung!

A key to protecting the investment you’ve made in your home is by following a regular maintenance schedule. By performing preventative maintenance on an on-going basis, you’ll avoid many of the big ticket repair items that can lower the value of your home.

Here’ a helpful checklist for SPRING maintenance of your home:

Inside

Check furnace air filters each month during the heating season. Clean or replace as necessary.

Inspect fireplace, wood stove and chimneys. Have each clean and serviced as needed.

When heating season is complete, shut down and clean furnace humidifier. Close the furnace humidifier damper on units with central air conditioning.

Check air conditioning system and clean or replace air filters. Have system serviced as need (recommend every 2 to 3 years).

Check and clean dehumidifier as necessary.

Where possible, turn off furnace and fireplace pilot lights.

Outside

If applicable, have well water tested for quality

Examine foundation walls for cracks, leaks or signs of moisture. Repair as required.

Check paint on outside walls and fence. Repair and paint as necessary.

Check level of any exterior steps or decks which may have moved due to frost or settling. Re-level as necessary.

Check and clean out gutters and downspouts. Repair loose joints and ensure secure attachment to your home. Clear any obstructions and make sure water flows away from your foundation.

Prune and fertilize landscaping as necessary.

We get asked so much about the "We guarantee to sell your home in so many days or we'll buy it" ads. And the question everyone is asking is  "What's the catch?"

Our professional advice to them is: The only way you'll know for sure is to call that Realtor and get a listing appointment.

Many of our Sellers have taken this advice. 

You may think we're crazy to send a prospective client to the competition, but chances are that if the homeowner is asking us this question, something we advertised made them call us first instead.

This is how many of these programs work: 

These billboard and radio ads bring many calls into a Realtors office. When you call they (actually one of their assistants) don't want to know anything about what you think your home is worth, where you will be moving to etc. They don't want you to give them any information that would obligate them to tell you that you do not qualify for their special program. If they told you that you didn't qualify, you might call the next Realtor on your list and their advertising dollars would have been lost. Their goal is to make a listing appointment with you. PERIOD.

Then they send out a listing Realtor to tell you how many homes their team of 15-20 Realtors has listed and sold over the past year or so (but nothing about the number of listings they've lost - in some cases up to 30% of their listings taken) and in general do their best to gain your confidence, BEFORE they let you know that you do not qualify for their special home buying offer.

The sad fact is, most homeowners do not fall within the strict guidelines of their program. Buy hey, it's not their fault, and while they're here they might as well list your home for 6-12 months anyway because chances are (70% chance as a matter of fact) that they will sell your home...... eventually.

Even if you are lucky enough to fit into the stringent guidelines that these programs sometimes require such as:

You must buy your next home from this Realtors currently listed homes

You must buy a home locally (doesn't help our transferring Military families much)

You must list at the Realtors price (which may well be under market in order for them to fulfill their guarantee to sell)

You cannot buy a home of lesser value than yours (so much for empty nesting)

You cannot have a home in the least expensive or most expensive range for your area, etc. etc.

who would benefit from such sale?

Lets just say that your home is listed and does not sell in the days promised. Then the Realtor buys your home for the promised amount (most Realtors will give you 70-75% of the market value). What are they going to do with your home? They're Realtors, of course they'll sell it. And at market value. Even after the expenses they incur, they stand to make a 10-15% profit which is much more lucrative than the 5-6% commission they agreed upon when they listed your property. How would they, or could they possibly be motivated to sell your home??

I know one thing for sure. If the general public would offer me their homes to buy at 70 cents on the dollar.... I’d surely buy one or two a day!

Just my opinion folks………………..