My New Blog

   I can not understand why my deal went south. Oh Yeah! That is because my client did not take my professional advice. When you see a great deal and you call your client up after doing all your homework on the prospective purchase.You tell them its a great deal and is priced at fair market value. You explain that 8,000 to 10,ooo would be a good starting point to negotiate an agreeable price. They call you back and want to offer 50,000 below asking price. I advise them that is extremely low but I am a professional and owe my client fiduciary responsibility. I then present the offer with no response and my client does not understand why they have not responded in the timely manner that  contract stated. I advised them that we can look at homes in a lower price range. They said no that they wanted to make another offer on the same house 40,000 below asking price. Once again I owe my professional  service to them and advise we offer 10k to 15k below. (this is were I got out). They refused and asked me to make the offer 30k below. I faxed the offer with no response I asked to be released from the contract and move on.....I am a professional.

Even though the market slow let the bad client go!!!

BARNABY INN

Fabulous Cape Cod Bed & Breakfast

Drastic price reduction!

$495,000

It seems impossible! It’s not!

You could own this famous Cape Cod Bed & Breakfast for a mere $495,000!

(Price has been drastically reduced!)

The Barnaby Inn, renowned for New England hospitality, convenient location, lovely guest rooms, and fine breakfasts is now offered for sale. The stars are aligned. The combination of a slow economy, temporarily deflated property values, college tuitions, and divorce, prompt this offering at the extraordinarily low price of $495,000.

Is there a catch? Not really! You may purchase this fully operating Bed & Breakfast, located one mile from the warm waters of Nantucket Sound at this low price. You may also, if you choose, purchase two other buildings that share this unique property, at an additional price.

The Inn building consists of six well appointed guest rooms. All guest rooms have full private baths, new wall to wall carpeting, color cable TV’s, DVD players, refrigerators, air conditioners, hairdryers, and more. Two of the six rooms are “deluxe”, with special amenities including fireplaces, and Jacuzzi tubs built for two. The Inn also boasts a large living room with a gas fireplace, a large dining room with seating for 16, a large laundry room (3 washers, 3 dryers), and a large semi-commercial kitchen. Upstairs is a three bedroom owners quarters with its own full bath, living space and kitchen. This entire 5,200 square foot established Bed and Breakfast (building and business) can be yours for $495,000. Look at it this way. A three bedroom home the size of the owner’s quarters, in this location, would cost about $300,000. So you are getting the six room B&B for $195,000! Contents, furniture, equipment, client list, goodwill, website, phone number, and mail box are included for free!

The Inn building shares the large lot (.8 acre) with two other buildings. Each unit is deeded as an individual condominium unit.

The entire Inn building (with owner’s quarters) is one condo unit.

The next unit is a two bedroom, one and a half bath, modern, (only eight year old) cottage that has traditionally been used as a very popular and lucrative weekly rental ($900.00/ week in season). It has been utilized as a winter rental in the past for additional income, or could easily be rented year round for $1100.00 to $1200.00/month. The third unit sharing the property is a three bay garage with a large, modern, year-round studio apartment on the second floor (currently bringing in $800.00/month).

You may purchase all three units for $795,000

Why would we sell the Inn itself and not the cottage and garage? Frankly, because we don’t want to leave. We love it here. Our personal life circumstance dictates that we reluctantly must sell the Inn. We do however have to live somewhere, and we like it here. We have offered the three buildings as a package though, in case you prefer to have more control over your neighborhood.

This is a very unique opportunity. There is absolutely no other property like it. It would be impossible to purchase another Bed & Breakfast, or even a house of this size and quality for a price anywhere near this. Don’t want to be an Innkeeper? The Inn would make a perfect retreat for a large or extended family, or group of close friends.

You can get a better idea of the Barnaby Inn property and philosophy and see some pictures by checking out the website www.barnabyinn.com

Without even considering the B&B income, the value of the real estate more than justifies the asking price. You would be purchasing a three bedroom home on central Cape Cod with six lovely additional guest rooms (and an additional living room, dining room, laundry and kitchen) for $495,000.

The cottage and garage with studio apartment, pay for themselves. You may purchase both of these units for only $300,000 (when purchased in combination with the Inn). At $300,000, the rent from these units will more than cover a full mortgage and taxes. Utilities, paid by the tenants.

Crunch the numbers. It works. Then call the owners to make an appointment to see this unique property.

Fairly quiet week in terms of Economic Data releases. However Initial Jobless Claims out on Thursday, considering the recent extension of Jobless Benefits we should expect to see a spike in this number, as those who lost benefits sign back up.

Tax Credit for First-Time Homebuyers
FTHBs (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the timelines available.

Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

Tax Credit Ends Soon:
The wildly popular first time home buyer’s tax credit is set to expire in November. This is a tax credit of $8,000 for anyone that has not owned a home in the last 36 months. It takes an average of approximately 30 days to close on a mortgage once you find your dream home. So that basically means that you have until October to put in a contract on a home to take advantage of this great tax credit.

Both existing and new home sales have climbed for the past 4 months and inventories are decreasing. With 30 year fixed mortgage rates consistently in the mid 5% range for an average conventional mortgage, it seems that all the stars are aligned for a final push in demand for homes. Don’t assume that you will be able to go back and forth between several homes with low-ball offers. The market has changed and you have very little time to make sure that you the best of everything: Low rates, $8,000 tax credit, and great selection at fair prices.

What happened to rates last week?

Mortgage backed securities gained +122 basis points last week which helped to push 30 year fixed mortgage rates to their lowest levels in the last two weeks. The primary reason for the gain was due to some economic reports that showed some additional weakness. We had dismal retail sales and consumer confidence and we also were the beneficiary of some profit taking and a selloff in the stock markets.

What to watch out for this week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.

I know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. I monitor the trading of Mortgage Backed Securities; the only thing conventional mortgage rates are based upon. So I know if there is going to be a trend reversal in mortgage rates.

More Positive News for Housing:
Many news outlets and economists are finally calling it an official “housing bottom”. This is the result of the progress in the housing market over the past three months. We added to that pool of positive housing news last week.

The Case-Shiller Home Price Index showed that home prices were either flat or increased in 16 out of the 20 major markets that they monitor. In a separate report, New Home Sales were up 11% which was the largest gain in over eight years. While higher priced homes will continue to struggle for some time, mid to lower priced homes are really heating up.

What happened to rates last week?

We had a huge gain in mortgage backed securities last week which helped to push mortgage rates to their lowest levels in months. The weak Initial Claims and GDP data along with a very successful 7 year Treasury auction combined to temporarily lower rates. We need to take advantage of these great rates before this rate rollercoaster changes again.

What to watch out for this week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.



I know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. I monitor the trading of Mortgage Backed Securities; the only thing conventional mortgage rates are based upon. So I know if there is going to be a trend reversal in mortgage rates.

Call on me anytime for an industry update.

Respectfully,

To unsubscribe, please email me at: mdoucette@mortgagecorpeast.com