Understand "Fair Market Value"and price it right!
Location is key, but it's the right price that brings buyers to the door! To determine fair market value, make a point to know 2 important pieces of information and price accordingly: (1) what similar homes have recently sold for (within the last 3 months) and (2) what similar properties are currently on the market for. Price within $5,000 of the averages, or slightly below. DO NOT OVERPRICE!
Comparison-shop!
Buyers comparison shop...you should do the same. They determine value based on features and benefits of your home and compare it with the features and benefits of other homes that are currently on the market. Today's buyers won't overpay for anything, whether it's a coat or a car or a house...period!
Understand buyer mentality
Buyers who seek out FSBO properties do so because they are looking for a deal! Often, they are much more knowledgeable and aware of market activity than sellers, because they are out shopping. And because they know that FSBOs are not paying the Broker commission, they will discount their offer price by at least the amount of $ you are saving.
Stay on top of market changes
Prices do not stay static. They go up and down, subject to any recent activity surrounding a subject property during the time it's on the market. Changes (new listings, new pendings, new sales) will affect your price. You can list today, but your neighbor can undercut your price tomorrow or sell for higher next week. Keep your eyes on the market and adjust accordingly.
More Tips:
Expose, expose, expose!
The more buyers that know about your home, the faster it will sell and the higher the price you will get. Post the listings to as many of the top real estate sites as possible. Some free sites: craigslist.org, backpage.com, postlets.com.
Prospect like the Pros!
Simply posting ads and putting a sign out front aren't enough. You will need to spend the time actively seeking out buyers. Hardworking Realtors actually pick up the phone and call around the neighborhood and alert other Realtors who have recently sold or currently have homes listed for sale in the area to see if they know people who might be interested. Let your neighbors, friends, sphere of influence know you are selling!
Dress for success
Make sure your home is show-ready at all times. De-clutter, remove personal items, clean and use home design magazines as inspiration for staging. Fresh paint, clean carpets and new light bulbs go along way. When showing, open windows and turn on all the lights.
Wednesday, October 27, 2010
Thursday, September 2, 2010
Monday, August 23, 2010
Zoning law seen as boon to development in Jersey City
A dilapidated industrial area in Downtown Jersey City could betransformed into a neighborhood resembling Hamilton Park, thanks to a state zoning law.
The area is along Jersey Avenue, between 10th and 18th streets. The law, called Transfer of Development Rights, would allow some developers to build at a higher density while encouraging others to turn their land into open space.
It could also result in the development of parking decks and ground-floor businesses along Montgomery Street.
For the full story, see today's Jersey Journal.
Source: http://www.nj.com/hudson/index.ssf/2010/08/zoning_law_seen_as_boon_to_dev.html
The area is along Jersey Avenue, between 10th and 18th streets. The law, called Transfer of Development Rights, would allow some developers to build at a higher density while encouraging others to turn their land into open space.
It could also result in the development of parking decks and ground-floor businesses along Montgomery Street.
For the full story, see today's Jersey Journal.
Source: http://www.nj.com/hudson/index.ssf/2010/08/zoning_law_seen_as_boon_to_dev.html
Tuesday, August 10, 2010
Jersey City Tax Reassessment - Are Tax Abated Properties Included In The Revaluation?
Yes, even though abated properties make payments according to different rates and schedules, they are still required to be reassessed. This is so that when the tax abatements expire, they will be taxed according to their correct assessment value.
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
Friday, August 6, 2010
Jersey City Tax Reassessment - Are My Property Taxes Going to Go Sky High?
No. Most people, when they hear the term "property revaluation", incorrectly believe that a reval raises all the taxes on all the properties in the city.
A property revaluation is mandated by state law so that assessments of all properties in a municipality are brought up to, or as near as possible to, 100% of market value. This is the best way to insure that every property, based on its market value, pays its fair share of the municipal, school and county tax burden.
While all property revaluations are different, the general "rule of thumb" for a property revaluation is that 1/3 of the municipal properties will see their share of the tax burden go down, 1/3 will see their share of the tax burden go up, and 1/3 of assessed municipal properties will see no change at all.
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
A property revaluation is mandated by state law so that assessments of all properties in a municipality are brought up to, or as near as possible to, 100% of market value. This is the best way to insure that every property, based on its market value, pays its fair share of the municipal, school and county tax burden.
While all property revaluations are different, the general "rule of thumb" for a property revaluation is that 1/3 of the municipal properties will see their share of the tax burden go down, 1/3 will see their share of the tax burden go up, and 1/3 of assessed municipal properties will see no change at all.
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
Tuesday, August 3, 2010
The Purpose of Jersey City Tax Reassessment
The purpose of this revaluation is to ensure a fair and equitable redistribution of the City's tax levy so all property owners are shouldering their fair share of the City's tax burden. This will be the first property revaluation since 1988.
The property revaluation is being done for several reasons. The New Jersey Constitution requires that all real property be assessed according to the same standard of value; and such property shall be assessed for taxation under general laws and by uniform rules. According to state law, every property's fair share is based on its market value as of the assessing date.
Currently, most properties in Jersey City no longer reflect the assessed value which was assigned to them during the last property revaluation, which was conducted 22 years ago
in 1988.
During those 22 years many changes in the real estate market have taken place-new housing and commercial properties have been constructed while older, dilapidated structures have been torn down, rehabilitated or replaced. Prices have fluctuated. Houses which appear exactly the same from the street may be drastically different inside due to renovation, repairs, deterioration or lack of maintenance, the addition or removal of a rental unit, or a change of property class from residential to commercial.
When you compare the current true market value to the assessed market value (set in 1988) of many properties across the city, you can see that they are dramatically skewed and out of line with the average assessed market value of city properties as a whole.
This means that instead of each property paying its fair share of city taxes based on its assessed value (which should be an accurate reflection of each property's value in today's real estate market), many properties are under assessed and are therefore under paying property taxes.
When this happens, other property owners are picking up the extra tax burden. An example of this would be someone who bought and renovated a house a few years ago when the real estate bubble was at its peak. Now that the real estate market has collapsed, that homeowner may be paying taxes on a property which is no longer worth anywhere near its 2006 assessment. That property owner is probably paying more than her fair share.
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
The property revaluation is being done for several reasons. The New Jersey Constitution requires that all real property be assessed according to the same standard of value; and such property shall be assessed for taxation under general laws and by uniform rules. According to state law, every property's fair share is based on its market value as of the assessing date.
Currently, most properties in Jersey City no longer reflect the assessed value which was assigned to them during the last property revaluation, which was conducted 22 years ago
in 1988.
During those 22 years many changes in the real estate market have taken place-new housing and commercial properties have been constructed while older, dilapidated structures have been torn down, rehabilitated or replaced. Prices have fluctuated. Houses which appear exactly the same from the street may be drastically different inside due to renovation, repairs, deterioration or lack of maintenance, the addition or removal of a rental unit, or a change of property class from residential to commercial.
When you compare the current true market value to the assessed market value (set in 1988) of many properties across the city, you can see that they are dramatically skewed and out of line with the average assessed market value of city properties as a whole.
This means that instead of each property paying its fair share of city taxes based on its assessed value (which should be an accurate reflection of each property's value in today's real estate market), many properties are under assessed and are therefore under paying property taxes.
When this happens, other property owners are picking up the extra tax burden. An example of this would be someone who bought and renovated a house a few years ago when the real estate bubble was at its peak. Now that the real estate market has collapsed, that homeowner may be paying taxes on a property which is no longer worth anywhere near its 2006 assessment. That property owner is probably paying more than her fair share.
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
Wednesday, July 28, 2010
Jersey City Tax Reassessment
Key Dates
Nov 1, 2010 - Data Collection Begins
April 30, 2012 - Data Collection Ends
July 15, 2012 - Notices to Property Owners
August 15, 2012 - Informal Hearing with Property Owners
January 1, 2013 - New Values Applied
May 1, 2013 - Formal Assessment Appeal Deadline (Reval Year Only)
Note: Property Taxes will not be levied on new assessments until the year 2013
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
Nov 1, 2010 - Data Collection Begins
April 30, 2012 - Data Collection Ends
July 15, 2012 - Notices to Property Owners
August 15, 2012 - Informal Hearing with Property Owners
January 1, 2013 - New Values Applied
May 1, 2013 - Formal Assessment Appeal Deadline (Reval Year Only)
Note: Property Taxes will not be levied on new assessments until the year 2013
Source: http://www.cityofjerseycity.com/tax_assessment.aspx?id=6312
Sunday, June 13, 2010
Facts about Jersey City
• Jersey City is located only 1 mile from lower Manhattan and is easily accessible by ferry, PATH, bus, train or car.
• The Statue of Liberty is at our doorstep. Located only 2,000 feet from our shore, catch the ferry in Jersey City’s Liberty State Park.
• Our world-class hotels and restaurants are less expensive. Indulge without the NYC price tag. We haveofferings to please every budget.
• We are a shopper’s paradise! In Jersey City you will pay no sales tax on clothing and only 3.5% tax at participating locations in our Urban Enterprise Zones (UEZ).
• Explore the Liberty Science Center where learning’s fun, and catch a movie at the Nation’s largest IMAX theater.
• Stop by the Jersey City Museum where contemporary art & culture unite. We are steeped in history, Bergen Square’s Apple Tree House, was deeded back in 1658. Harsimus Cemetery was the site of many Revolutionary War battles.
• Jersey City is home to two of the best preserved movie palaces. Catch a film at the Landmark Loews, or take a tour of the old Stanley Theater.
• We’re home to 90 different nationalities…the perfect place to soak up culture. Explore the richness of Little India in the heart of Journal Square.
• The Statue of Liberty is at our doorstep. Located only 2,000 feet from our shore, catch the ferry in Jersey City’s Liberty State Park.
• Our world-class hotels and restaurants are less expensive. Indulge without the NYC price tag. We haveofferings to please every budget.
• We are a shopper’s paradise! In Jersey City you will pay no sales tax on clothing and only 3.5% tax at participating locations in our Urban Enterprise Zones (UEZ).
• Explore the Liberty Science Center where learning’s fun, and catch a movie at the Nation’s largest IMAX theater.
• Stop by the Jersey City Museum where contemporary art & culture unite. We are steeped in history, Bergen Square’s Apple Tree House, was deeded back in 1658. Harsimus Cemetery was the site of many Revolutionary War battles.
• Jersey City is home to two of the best preserved movie palaces. Catch a film at the Landmark Loews, or take a tour of the old Stanley Theater.
• We’re home to 90 different nationalities…the perfect place to soak up culture. Explore the richness of Little India in the heart of Journal Square.
Friday, May 7, 2010
Jersey City's "The Beacon" & Sarah Jessica Parker on Vogue
http://www.nj.com/hudson/index.ssf/2010/05/sarah_jessica_parker_poses_for.html
Wednesday, April 28, 2010
State of the market - Jersey City, NJ
Home sales rose as a result of 1st time buyers’ tax credits and are expected to improve in the 1st half of 2010. Home values are still falling however, despite rising sales. Forecast of prices per www.housingpredictor.com for Jersey City is expected to go down additional 9.3% thru end of 2010.
Tuesday, April 6, 2010
Grand Opening this weekend - Trump Plaza Residences, JC
This Saturday and Sunday, join me to tour the Trump Plaza Residences in Jersey City. Grand opening tour hours are from 12p to 5p on Apr 10 & 11.
They will be showcasing 1 & 2 bedroom models as well as the their newly finished penthouse-level sales suite at 88 Morgan Ave. Prices for 1-bedrooms start in the mid $400,000s while 2-bedrooms start in the mid-$600,000s.
Part of the allure of this property is the feeling of stepping into the foyer of a grand mansion of the Trump family estates. Aside from the lavish amenities which include heated outdoor pool, Concierge service & sophisticated design elements, the building offers oversized windows that open to magnificent Hudson River views, Statue of Liberty & New York City skyline.
I'm excited to see the newly unveiled model units!
An on-site Wells Fargo Home Mortgage representative will be available to offer financing guidance & consultation to buyers.
They will be showcasing 1 & 2 bedroom models as well as the their newly finished penthouse-level sales suite at 88 Morgan Ave. Prices for 1-bedrooms start in the mid $400,000s while 2-bedrooms start in the mid-$600,000s.
Part of the allure of this property is the feeling of stepping into the foyer of a grand mansion of the Trump family estates. Aside from the lavish amenities which include heated outdoor pool, Concierge service & sophisticated design elements, the building offers oversized windows that open to magnificent Hudson River views, Statue of Liberty & New York City skyline.
I'm excited to see the newly unveiled model units!
An on-site Wells Fargo Home Mortgage representative will be available to offer financing guidance & consultation to buyers.
Friday, March 19, 2010
10 Staging Tips to Help You Sell
Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.
“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.
But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”
Rinomato offered the following tips for staging a home:
1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.
2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.
3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.
4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.
5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.
6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.
7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.
8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.
9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.
10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.
(c) 2010, The Orlando Sentinel (Fla.) by Jean Patteson
RISMEDIA, March 19, 2010—(MCT
Article from http://rismedia.com/2010-03-18/10-staging-tips-to-help-your-home-sell/
“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.
But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”
Rinomato offered the following tips for staging a home:
1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.
2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.
3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.
4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.
5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.
6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.
7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.
8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.
9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.
10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.
(c) 2010, The Orlando Sentinel (Fla.) by Jean Patteson
RISMEDIA, March 19, 2010—(MCT
Article from http://rismedia.com/2010-03-18/10-staging-tips-to-help-your-home-sell/
Wednesday, March 17, 2010
Did you know?
You can get crime statistics on property and violent crimes on trulia.com by going to Stas & Trends from the Menu and clicking on Community Info!
Good to know!
Good to know!
Sunday, March 14, 2010
Qualifying Reasons for Hardship (Short Sale or Loan Modification)
-Failed business
-Unemployment or Job cut
-Reduction in salary/curtailment of income
-Excessive use of credit
-Relocation of job
-Military duties
-Illness of borrower or someone in family
-Medical bills
-Death in family
-Payment adjustments or ARM due to increase to an unaffordable amount
-Divorce
-Marital difficulties
-Loss of renters/tenants
-Unemployment or Job cut
-Reduction in salary/curtailment of income
-Excessive use of credit
-Relocation of job
-Military duties
-Illness of borrower or someone in family
-Medical bills
-Death in family
-Payment adjustments or ARM due to increase to an unaffordable amount
-Divorce
-Marital difficulties
-Loss of renters/tenants
Tuesday, March 9, 2010
It's Almost Festival Time Again in Jersey City!
The Central Avenue S.I.D. Management Corporation (CASID) is pleased to announce that the annual Everything Jersey City Festival will take place on Saturday, May 22, 2010.
The 2009 festival was GRAND SUCCESS with an estimated 15,000 people in attendance! CASID is now in the planning stages to make the festival even bigger and better then previous years.
For more information, check out http://www.centralavesid.org/atwork-EJCF_2010.shtml
The 2009 festival was GRAND SUCCESS with an estimated 15,000 people in attendance! CASID is now in the planning stages to make the festival even bigger and better then previous years.
For more information, check out http://www.centralavesid.org/atwork-EJCF_2010.shtml
Tuesday, February 23, 2010
Jersey City Streetscape Plan
Newark Avenue Streetscape - Update from Councilman Fulop
All but a few small projects in Phases I and II of the Newark Avenue Streetscape project are complete. Phase III, beginning at Coles and ending at Summit Avenue (Five Corners), will see the same streetscaping that has been completed in Phases I and II, from Grove Street to Coles. Phase III will include repaving of Newark Avenue, benches, trash cans, lights, new sidewalks and crosswalks.
The contractor is slated to start work in the next 2-4 weeks. Work must start by March 13th or we risk losing the federal funds utilized to complete the Newark Streetscape project. Therefore work will be resuming shortly.
Many people have asked about the unfinished crosswalks. Due to the cold weather some polymer resin crosswalks and thermoplastic ladder striping crosswalks were not completed. For the work to be done effectively, the temperature has to be 40 degrees and rising -- preferably at least 50 degrees. In March or April, the contractor and subcontractors will return to the site and complete all missing or defective work.
A public ceremony will take place in Mercado Park to celebrate the revitalization of Newark Avenue when it is complete
All but a few small projects in Phases I and II of the Newark Avenue Streetscape project are complete. Phase III, beginning at Coles and ending at Summit Avenue (Five Corners), will see the same streetscaping that has been completed in Phases I and II, from Grove Street to Coles. Phase III will include repaving of Newark Avenue, benches, trash cans, lights, new sidewalks and crosswalks.
The contractor is slated to start work in the next 2-4 weeks. Work must start by March 13th or we risk losing the federal funds utilized to complete the Newark Streetscape project. Therefore work will be resuming shortly.
Many people have asked about the unfinished crosswalks. Due to the cold weather some polymer resin crosswalks and thermoplastic ladder striping crosswalks were not completed. For the work to be done effectively, the temperature has to be 40 degrees and rising -- preferably at least 50 degrees. In March or April, the contractor and subcontractors will return to the site and complete all missing or defective work.
A public ceremony will take place in Mercado Park to celebrate the revitalization of Newark Avenue when it is complete
Sunday, February 21, 2010
10 big-impact, low-cost enhancements to help your home sell
1. Tidy up inside kitchen cabinets and closets - potential buyers open them! And they want to make sure there's plenty of room for their stuff.
2. Add or replace tile to give a kitchen and baths an updated look.
3. When a wall separates the kitchen from the family room, add a breakfast bar by simply cutting out an opening in the wall. This will make both rooms appear bigger and add an eating surface where one didn't exist before.
4. Use granite tiles instead of one big slab.
5. Put in a new medicine cabinet, change the faucet, and update the light fixtures in the bathroom.
6. Fill in cracks in basement, paint with waterproof paint and top with color to give a finished look.
7. Update kitchen cabinets byreplacing doos and/or simply changing hardware.
8. Replace tired-looking overhead light fixtures and put light sources where they didn't exist before to give more light and brighten up the space.
9. Tech-up the garage by installing a remote touch-pad system.
10. Paint!
2. Add or replace tile to give a kitchen and baths an updated look.
3. When a wall separates the kitchen from the family room, add a breakfast bar by simply cutting out an opening in the wall. This will make both rooms appear bigger and add an eating surface where one didn't exist before.
4. Use granite tiles instead of one big slab.
5. Put in a new medicine cabinet, change the faucet, and update the light fixtures in the bathroom.
6. Fill in cracks in basement, paint with waterproof paint and top with color to give a finished look.
7. Update kitchen cabinets byreplacing doos and/or simply changing hardware.
8. Replace tired-looking overhead light fixtures and put light sources where they didn't exist before to give more light and brighten up the space.
9. Tech-up the garage by installing a remote touch-pad system.
10. Paint!
Friday, February 19, 2010
Short Sale Buyers Face Difficulty Closing Deals Quickly
This Article came from: http://rismedia.com/2010-02-18/short-sale-buyers-face-difficulty-closing-deals-quickly/ by Mary Shanklin
Rachel Nacion-Ograyensek and her husband are getting nervous. The house that the two apartment dwellers want to buy—the one with the double oven, pool and tiled patio—may slip away from them.
It’s on the market as a short sale, so the owner can’t act until the mortgage holder approves the discount price. But the Altamonte Springs, Fla. couple insists on buying their first home in time to take advantage of the federal government’s home buyer tax credit, which now expires April 30, 2010.
“The house is our dream house—it’s perfect for us,” Nacion-Ograyensek said. “We are trying to get in on the tax credit, but it’s done in April, and it’s already February. We’ve gotten to the point where we’re passively looking for other houses, but none are quite right.”
Under pressure from the real estate industry, Congress extended and expanded the tax credit last fall. It was to have ended November 30, 2009 and benefit only buyers who had not purchased a home in the past three years. Like the original, the latest version is worth as much as $8,000, but it gives both first-time buyers and qualified existing homeowners until April 30 to secure a contract on a home, and until June 30 to close the deal.
Though real estate agents and homebuilders hope the measure boosts sales, as the previous version was credited with doing, some fear that buyer’s intent on getting a short sale bargain will not make the new deadlines.
In the Orlando area, 67% of Realtors’ existing-home sales in December 2009 were distressed sales—and about half of those were short sales, known for taking at least three months to complete. Even buyers who nail down a contract with the seller by the April 30 deadline can’t be sure the purchase will close within the required two months. “That’s where you get into that riverboat-gambling mentality,” said Jim Ruddy, the longtime real estate agent representing Nacion-Ograyensek and her husband. “Is it worth gambling that $8,000?” At this point in the tax credit countdown, buyers interested in purchasing a short sale must decide whether they are really committed to that property—enough that they would still want to purchase it if they miss the June 30 tax credit deadline, Ruddy said.
Nacion-Ograyensek said she and her husband recently revisited the short sale house in Altamonte Springs and decided it was worth the gamble. The kitchen is ideal for cooking, and the backyard is large enough if they have children or adopt a dog. They have decided to stick with their plan; still, each day that passes makes them more anxious.
In hopes of capturing tax credit-motivated buyers who aren’t focused on distressed properties, Florida’s real estate agents have scheduled an unprecedented statewide open house of properties listed for sale. The event, organized by the Florida Association of Realtors, is set for April 10-11—just two weeks before the tax credit deadline.
Kathleen McIver-Gallagher, chairman of the Orlando Regional Realtor Association, said buyers intent on getting the tax credit should be concerned if they are trying to purchase a short sale through lenders known for slow responses to short sale offers.
As the April tax credit deadline nears, buyers will probably become more interested in homes other than distressed sales, McIver-Gallagher said. “There are plenty of regular homes out there,” she added.
Compounding the delays are new reporting rules that lenders must now follow. Nate Morris, vice president of Thomas Mortgage and Financial Services, said the new requirements involve good faith estimates and HUD closing documents. “It certainly could further complicate things,” said Morris, a board member of the Mortgage Bankers Association of Florida. “I don’t see this working out till the middle of the year. Everyone in the mortgage business talks about it on a daily basis.”
(c) 2010, The Orlando Sentinel (Fla.).
Rachel Nacion-Ograyensek and her husband are getting nervous. The house that the two apartment dwellers want to buy—the one with the double oven, pool and tiled patio—may slip away from them.
It’s on the market as a short sale, so the owner can’t act until the mortgage holder approves the discount price. But the Altamonte Springs, Fla. couple insists on buying their first home in time to take advantage of the federal government’s home buyer tax credit, which now expires April 30, 2010.
“The house is our dream house—it’s perfect for us,” Nacion-Ograyensek said. “We are trying to get in on the tax credit, but it’s done in April, and it’s already February. We’ve gotten to the point where we’re passively looking for other houses, but none are quite right.”
Under pressure from the real estate industry, Congress extended and expanded the tax credit last fall. It was to have ended November 30, 2009 and benefit only buyers who had not purchased a home in the past three years. Like the original, the latest version is worth as much as $8,000, but it gives both first-time buyers and qualified existing homeowners until April 30 to secure a contract on a home, and until June 30 to close the deal.
Though real estate agents and homebuilders hope the measure boosts sales, as the previous version was credited with doing, some fear that buyer’s intent on getting a short sale bargain will not make the new deadlines.
In the Orlando area, 67% of Realtors’ existing-home sales in December 2009 were distressed sales—and about half of those were short sales, known for taking at least three months to complete. Even buyers who nail down a contract with the seller by the April 30 deadline can’t be sure the purchase will close within the required two months. “That’s where you get into that riverboat-gambling mentality,” said Jim Ruddy, the longtime real estate agent representing Nacion-Ograyensek and her husband. “Is it worth gambling that $8,000?” At this point in the tax credit countdown, buyers interested in purchasing a short sale must decide whether they are really committed to that property—enough that they would still want to purchase it if they miss the June 30 tax credit deadline, Ruddy said.
Nacion-Ograyensek said she and her husband recently revisited the short sale house in Altamonte Springs and decided it was worth the gamble. The kitchen is ideal for cooking, and the backyard is large enough if they have children or adopt a dog. They have decided to stick with their plan; still, each day that passes makes them more anxious.
In hopes of capturing tax credit-motivated buyers who aren’t focused on distressed properties, Florida’s real estate agents have scheduled an unprecedented statewide open house of properties listed for sale. The event, organized by the Florida Association of Realtors, is set for April 10-11—just two weeks before the tax credit deadline.
Kathleen McIver-Gallagher, chairman of the Orlando Regional Realtor Association, said buyers intent on getting the tax credit should be concerned if they are trying to purchase a short sale through lenders known for slow responses to short sale offers.
As the April tax credit deadline nears, buyers will probably become more interested in homes other than distressed sales, McIver-Gallagher said. “There are plenty of regular homes out there,” she added.
Compounding the delays are new reporting rules that lenders must now follow. Nate Morris, vice president of Thomas Mortgage and Financial Services, said the new requirements involve good faith estimates and HUD closing documents. “It certainly could further complicate things,” said Morris, a board member of the Mortgage Bankers Association of Florida. “I don’t see this working out till the middle of the year. Everyone in the mortgage business talks about it on a daily basis.”
(c) 2010, The Orlando Sentinel (Fla.).
Tuesday, February 2, 2010
Friday, January 15, 2010
10 New Jersey Real Estate Facts for 2010
1) First-time buyers are taking action, and for good reason. In 2009, first-time buyers made up 52 percent of the New Jersey real estate market, compared to 49 percent in 2008 and 36 percent in 2007. First-timers were spurred by high affordability, low rates, and the $8,000 federal tax credit, which has been extended to April 30, 2010. An estimated 45,700 first-time buyers took advantage of the credit last year, and it is expected to be a strong incentive for first-time buyers early this year.
Source: 2009 Profile of NJ Buyers and Sellers
2) Homes in the Garden State are a good investment. The seven-year home appreciation rate in New Jersey is 37.1 percent, more than five times the national rate of 7.1 percent. Likely due to the inherent advantages that the Garden State has to offer (great schools, unique neighborhoods, proximity to New York and Philadelphia, and access to the shore), New Jersey outperforms the national average in home appreciation.
Source: NJ Market Summary, June 2009
3) It's a great time to trade up. The 2009 federal tax credit for first-time buyers has been expanded to include repeat buyers. That means that existing homeowners can qualify for up to $6,500 (or $3,200 for those filing separately) when they buy a home - a significant incentive to trade up to that dream home.
4) Waiting for prices to drop could cost you. A buyer obtaining a 30-year mortgage of $300,000 today at a 5 percent interest rate will pay approximately $1,610 each month in principal and interest. If that same buyer waits until sale prices drop five percent, he/she runs the risk of interest rates going up. A 30-year mortgage of $285,000 at a 6 percent interest rate will cost the buyer $1,708 per month in principal and interest. Those few percentage points can equate to thousands of dollars over the course of a mortgage.
5) Owning a home in New Jersey builds long-term wealth. New Jersey home buyers who purchased their homes seven years ago accumulated an average of $81,100 in home equity. Over the last decade (1998-2008), the median prices of homes in almost every metropolitan statistical area that covers the state have more than doubled.
Source: The NATIONAL ASSOCIATION of REALTORS®(NAR)
6) It's a prime time to buy a second home. Especially in a state like New Jersey, with a great second home market in shore towns and other vacation destinations, now is a great time to purchase a second home. The 2009 median price of a second home in New Jersey was $246,300. Because of the relatively high amount of inventory, there are plenty of affordable options that, when paired with low interest rates, could be once-in-a-lifetime opportunities. Who wouldn't want their investment to double as a vacation getaway and a foundation to build lasting memories?
Source: 2009 Profile of New Jersey Buyers and Sellers
7) There is still time to take advantage of historically low interest rates. Many experts agree that the rates won't stay too low for long, but there is still time in early 2010 to take advantage of rates that have dropped significantly. Consider that in the third quarter of 2008 the average Northeast rate was 6.27. For the third quarter of 2009, the rate was 5.22.
Source: Federal Housing Finance Board
8) Good news for sellers: New Jersey consumers are "buying in" to real estate. The vast majority of New Jersey buyers (86 percent) saw their purchase as a good financial investment, with 57 percent saying it is a better financial investment than stocks. Also, when asked about the primary reason for the timing of their home purchase, 46 percent of first-time buyers said it was just the right time.
Source: 2009 Profile of NJ Buyers and Sellers
9) Lower prices make homes more affordable. The median price of a single family New Jersey home in the 3rd quarter of 2009 is 11 percent lower than in the 3rd quarter of 2008. The housing affordability index during the same time period increased by 22 percent. NAR's housing affordability index measures whether or not a typical family could qualify for a mortgage loan on a median-priced, existing single-family home. Increasing levels of affordability mean a home purchase is within reach for more New Jerseyans than the same time the year before.
Source: New Jersey Home Sales Report, 3rd quarter 2009
10) There are 50,000 REALTORS® in New Jersey that can provide you with localized information. Whether you are buying or selling, REALTORS® provide expertise on market trends, property conditions, and many other aspects of a real estate transaction. 85 percent of home buyers used a real estate agent or broker to purchase their home, as compared to 84 percent in 2008 and 76 percent in 2007. 88 percent of sellers were assisted by a real estate agent in selling their home.
Source: 2009 Profile of New Jersey Buyers and Sellers
The New Jersey Association of REALTORS®, with approximately 50,000 REALTOR® and REALTOR-ASSOCIATE®members, is one of the largest trade organizations in the state. NJAR®'s membership is comprised of real estate professionals who subscribe to a strict Code of Ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
Maria "Carme" de Sagun
Sales Associate/Coldwell Banker
15 Nardone Place
Jersey City, NJ 07306
Office: 201.963.1400 ext 156
Fax: 862.345.3480
Cell: 678.770.1400
www.mariadesagun.com
www.jerseycityexpert.com
Source: 2009 Profile of NJ Buyers and Sellers
2) Homes in the Garden State are a good investment. The seven-year home appreciation rate in New Jersey is 37.1 percent, more than five times the national rate of 7.1 percent. Likely due to the inherent advantages that the Garden State has to offer (great schools, unique neighborhoods, proximity to New York and Philadelphia, and access to the shore), New Jersey outperforms the national average in home appreciation.
Source: NJ Market Summary, June 2009
3) It's a great time to trade up. The 2009 federal tax credit for first-time buyers has been expanded to include repeat buyers. That means that existing homeowners can qualify for up to $6,500 (or $3,200 for those filing separately) when they buy a home - a significant incentive to trade up to that dream home.
4) Waiting for prices to drop could cost you. A buyer obtaining a 30-year mortgage of $300,000 today at a 5 percent interest rate will pay approximately $1,610 each month in principal and interest. If that same buyer waits until sale prices drop five percent, he/she runs the risk of interest rates going up. A 30-year mortgage of $285,000 at a 6 percent interest rate will cost the buyer $1,708 per month in principal and interest. Those few percentage points can equate to thousands of dollars over the course of a mortgage.
5) Owning a home in New Jersey builds long-term wealth. New Jersey home buyers who purchased their homes seven years ago accumulated an average of $81,100 in home equity. Over the last decade (1998-2008), the median prices of homes in almost every metropolitan statistical area that covers the state have more than doubled.
Source: The NATIONAL ASSOCIATION of REALTORS®(NAR)
6) It's a prime time to buy a second home. Especially in a state like New Jersey, with a great second home market in shore towns and other vacation destinations, now is a great time to purchase a second home. The 2009 median price of a second home in New Jersey was $246,300. Because of the relatively high amount of inventory, there are plenty of affordable options that, when paired with low interest rates, could be once-in-a-lifetime opportunities. Who wouldn't want their investment to double as a vacation getaway and a foundation to build lasting memories?
Source: 2009 Profile of New Jersey Buyers and Sellers
7) There is still time to take advantage of historically low interest rates. Many experts agree that the rates won't stay too low for long, but there is still time in early 2010 to take advantage of rates that have dropped significantly. Consider that in the third quarter of 2008 the average Northeast rate was 6.27. For the third quarter of 2009, the rate was 5.22.
Source: Federal Housing Finance Board
8) Good news for sellers: New Jersey consumers are "buying in" to real estate. The vast majority of New Jersey buyers (86 percent) saw their purchase as a good financial investment, with 57 percent saying it is a better financial investment than stocks. Also, when asked about the primary reason for the timing of their home purchase, 46 percent of first-time buyers said it was just the right time.
Source: 2009 Profile of NJ Buyers and Sellers
9) Lower prices make homes more affordable. The median price of a single family New Jersey home in the 3rd quarter of 2009 is 11 percent lower than in the 3rd quarter of 2008. The housing affordability index during the same time period increased by 22 percent. NAR's housing affordability index measures whether or not a typical family could qualify for a mortgage loan on a median-priced, existing single-family home. Increasing levels of affordability mean a home purchase is within reach for more New Jerseyans than the same time the year before.
Source: New Jersey Home Sales Report, 3rd quarter 2009
10) There are 50,000 REALTORS® in New Jersey that can provide you with localized information. Whether you are buying or selling, REALTORS® provide expertise on market trends, property conditions, and many other aspects of a real estate transaction. 85 percent of home buyers used a real estate agent or broker to purchase their home, as compared to 84 percent in 2008 and 76 percent in 2007. 88 percent of sellers were assisted by a real estate agent in selling their home.
Source: 2009 Profile of New Jersey Buyers and Sellers
The New Jersey Association of REALTORS®, with approximately 50,000 REALTOR® and REALTOR-ASSOCIATE®members, is one of the largest trade organizations in the state. NJAR®'s membership is comprised of real estate professionals who subscribe to a strict Code of Ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
Maria "Carme" de Sagun
Sales Associate/Coldwell Banker
15 Nardone Place
Jersey City, NJ 07306
Office: 201.963.1400 ext 156
Fax: 862.345.3480
Cell: 678.770.1400
www.mariadesagun.com
www.jerseycityexpert.com
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