Happy Spring ; the weather is surely making everyone feel cheery.

The market demand is showing its face. A new listing in Bridgewater last
week saw 16 showings in the first 5 days that produced 4 offers and a result
in an accepted offer “over-asking”.

Proof of homes in good condition/updated that is priced fairly will produce
top dollar for the seller.

This month I have a few new listings that I would like to give you a “head’s
up” on.

14 Hickory Rd, Greenbrook.$850,000. 5 BRs. 3.1 bath finished basement.

This home will hit the MLS around 4/15/10.

Beautiful raised patio and landscaping!

21 Briarwood Drive E., Warren

$985,000

5BR, 3 full baths, finished basement, fabulous backyard, nicely decorated.
Truly move in condition.

In the Warren market, there is an obvious void of good valued homes, in
general.  But more evident, is the $1MM-$1.4MM price range and the
$700K-$1MM price point.

Even with the news stating the market prices are down, I see LOW INVENTORY
which translates to higher pricing.

I just attended a seminar sponsored by KHOV at the Warren 55+ community. The speaker was Jeffrey Otteau of the Otteau Valuation Group, the leading analyst that looks at the NJ real estate market. I have talked about him before, as he has a huge following as he examines SOLD data and UNSOLD inventory.

He began by saying that this is a “window of opportunity” for buyers and sellers. There are 10,000 fewer homes on the market than last year, the lowest since the high inventories of ’07,’08 & ’09.
There is pent up buyer demand, homes are now more affordable with lower price AND lower interest rates and the incentives of the federal tax credits as I mentioned before in my previous blogs.
This is the time for sellers to get the best prices and buyers the best “payment”. Just FYI, for every 1% increase in interest rate, a buyer will lose 9% of purchasing power (or another way to say it is, it will now cost that buyer 9% more for the SAME house. Mortgage experts say that in preparation for the government ending their support of keeping interest rates artificially low at the end of March 2010, bond prices have already started to edge up. Many believe we will be at 6.5% interest rates in no time. It is/was foolish for buyers to wait until the last minute to capitalize on the federal tax credit deadline of going under contract BEFORE April 30, 2010, before the making their home purchase, as you will now have to pay more.

He reiterated that the recession most likely ended in Oct 2009, but we won’t see confirmation on that until this summer 2010. We are in a housing recovery and prices have stabilized! In NJ, the 1st quarter of 2009, prices went down 12%, 2nd quarter – down 10.4%, 3rd quarter – down 7.4% and 4th quarter – down 6 % compared to the 12 months prior.

More good news…In 2009, no increases in foreclosures in NJ.

We are now back to end of 2004 housing prices. Last year, pricing was down a gentle 4-5%.
When comparing to other states in the US, NJ has outperformed US average, up 129% since 1991. A very nice investment. NY has increased 105% and CA only 66% over the same time period.

Mr. Otteau admits that the future of the housing market in the 2nd half of 2010 is still questionable. The tax credit will now be gone, interest rates will be higher, prices have edged up a little higher—about 2% this year. The job market is still not clear. Thus a “slump” could begin in July 2010.

Regarding commercial real estate, NJ has suffered about a 5% loss as compared to Atlanta GA suffered a 50% loss of value.

UPDATE: Regarding this lovely home in Warren, it is now in attorney review after multiple offers!

I wanted to inform you of a brand NEW listing in Warren that just hit the market today. 40 Casale Drive So., Warren.

Great price of $799,900!

This home is meticulously maintained on a great, quiet cul de sac street!

Call me today!

This one won’t last.

I wish we were watching the NY Jets tonight in the Super Bowl. Oh well, at least the music at halftime was entertaining with The Who. Actually the onside kick was pretty aggressive of a tactic. Well speaking of aggressive…with regard to the real estate market, those homeowners pricing aggressively are seeing positive results, in my opinion. A client of mine put an offer on a home in Westfield. Great house in nice neighborhood, kind of small, but totally redone and updated. This home got 7 offers after being on the market 5 days. I am certain it sold WAY over asking price. That leave 6 other real buyers out there still desiring to purchase a home. The demand is out there for sure. In Warren as well. A couple of homes came on the market in nice locations with an appealing price and both under contract in days! As agents we see the market activity way before it is reported. Sales and prices will be up in the first quarter of 2010, at least in our market area of Somerset & Union Counties. Homes in updated condition and priced fairly are the ones flying off the market.

I have a great home listing in Warren that will be coming on the market in Warren. Here is a head’s up… 40 Casale Drive So., Warren will go on the market at $799,900. I believe there is a strong demand in this price point with available inventory being limited. This home is just lovely…updated, gorgeous kitchen with vaulted ceiling, Skylights, granite counters, Maple cabinets, professional grade stove and hood, sub zero refrigerator. My homeowner was very savvy to listen to advice and price it every aggressively. I hope and expect the result will by multiple interest.

More new listings coming on…watch my blog to see the listings before they hit the MLS.

I am finding that many people still are either unsure about the new tax credit information or don’t even know about it…especially that it isn’t just for 1st time buyers anymore.

Since 11/09 when the government extended the 1st time buyer tax credit AND expanded the program to include other buyers as well, for up to $6,500, I wanted to educate my clients to help  determine if going under contract before the 4/30/10 deadline is the right decision for you.

Just a basic definition of a tax credit…this is a figure that directly comes off the bottom line of your tax return, off the amount you owe the government. This is after tax dollars.

There are many details of the program, so if you believe you would like to purchase at this time and benefit from this tax credit, please consult a tax attorney or your accounting professional. The summary I am providing you on this website is just that…a concise summary of the guidelines.

Tax Credit Information

Basics of the Program
The American Recovery and Reinvestment Act of 2009 includes a provision for qualified first-time U.S. homebuyers to receive a tax credit of up to $8,000.

In November 2009, the provision’s deadline was extended and the credit was expanded to give most other homebuyers a tax credit of up to $6,500.

The credit amounts to 10 percent of the purchase price up to the credit limit. So a home purchase of $80,000 or more would be good for the full $8,000 credit for “first-time” buyers; and a home purchase of $65,000 or more would be good for the full $6,500 credit for qualifying “repeat” buyers.

No credit is available for home purchases that exceed $800,000. The credit never has to be repaid, provided that the buyer continues to own and live in the home as a principal residence for a minimum of three years straight.

Under the deadlines revised in November, buyers must have a written, binding contract in place before May 1, 2010 and close before July 1, 2010.

Note: As with any tax legislation, the details can quickly become complex with individual filers’ unique situations. I cannot provide tax or legal advice. Please confirm eligibility and pursue filing questions directly with the IRS or their own tax professional.
Program Details

• An individual qualifies as a first-time buyer if neither he nor she, nor their spouse, owned a principal residence in the United States in the three years prior to closing. 
• An individual qualifies as a repeat buyer if he or she, or their spouse, owned and lived in a principal residence in the United States for five consecutive years within the eight years prior to the closing date. 
• Even if a co-borrower (or someone providing help with the down payment) is ineligible for the credit, the otherwise qualified buyer remains eligible – meaning a parent can help a child (nondependent and at least age 18) buy a home – and the child can receive the credit.
• Buyers can receive the full credit even if they don’t owe any taxes for the year in which they file for the credit.
• There are income restrictions, which were revised upward with the November modification. The full credit can be taken by individual filers with Modified Adjusted Gross Incomes up to $125,000 and joint filers up to $225,000. The credit phases out after that and is eliminated at $145,000 for individuals ($245,000 for joint filing). Be aware of the distinctions between Adjusted Gross Income, Modified Adjusted Gross Income and Taxable Income. This IRS Web page has details on calculating Modified Adjusted Gross Income.

I encourage clients to consult the IRS, IRS Web site or a tax professional.

As the leaves on the trees finish their glorious metamorphosis and the colored leaves now lay on the cold, damp ground or blowing in the wind. This is a clear indicator that our year is coming to a close. The well known break in the public schools are happening now for “teacher’s convention”. Those school aged kids enjoy a nice break to relax or some families use it as a time for a quick vacation, since it is only Jersey school out at this time.  Also, we turn to thoughts of Thanksgiving creeping up on us.

For those of us who make real estate our career, we feel thankful today after learning that the government has decided to keep the incentives for 1st time homebuyers continuing into 2010. According to Charles McMillan, the 2009 National Association of Realtors (NAR) President, Congress passed a bill today that extends and expands the homebuyer tax credit. The extension and expansion will become effective as soon as President Obama signs the bill. The $8,000 tax credit will continue for 1st time homebuyers. For current homeowners to be eligible for the NEW $6,500 tax credit, they must have used the home, and sold the home or is being sold as a principal residence after living in it consecutively, for 5 of the previous 8 years.

This will hopefully be the boost to the real estate market continue upward in the sales activity for 2009-10. It should help more than just the lower end price points and first time buyers. Even before this positive news for the market, I have been very busy. This has not been a “typical” period, since by November; things typically start to slow down. I am not finding that to be the case this year. With interest rates still so low, the buyers that act now will look like a genius, as rates should only go higher from here. I believe, when we look back at the 2009 market trends next year, we will notice that June/July 2009 was a “low” and considered the right time to buy.

The commercial real estate market is another “bird” and an interesting one to evaluate in this market. Right now if you are a buyer in need of warehouse space in Central NJ, there is a glut of properties on the market. For many investors, the consideration to purchase a commercial property, one my evaluate  the rate of return—positive/negative cash flow. The deals that seem to make sense for people are one that have the buyer paying cash. The more money down, the smaller need for a mortgage payment-as this hurts your cash flow numbers when you need to borrow. And those that have so much cash on hand, would rather make a small positive cash flow, that have your money just sit in accounts making almost nothing.
 
I have a great investment property listed for sale in Bound Brook, NJ. Wonderful opportunity, especially for an “owner/occupier” need – someone who wants to use some part of the property for their own business use. This home is beautiful, fully renovated with the older Victorian charm from the late 1800s. Located in the “non-flood area”, this property could also be converted back to a single family use without need for a variance. The price is $429,000 with 6 units, huge on-site parking lot, and located within walking distance to Municipal Building, Police station, Post Office, Train , Business District(Main Street), Library, Schools, Houses of Worship, Theater, Firehouse, Banks and Route 28. All tenants have 1 year leases, separate utilities plus newer heating and cooling systems.

Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a firsttime homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phaseout range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he did since 3 years doesn’t impact eligibility.

Question: I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Today was a great day as I met up with my Metro Buffini Networking Group in Teaneck. This is a group of similar minded real estate professionals that synergize once every quarter on the real estate market, discuss hot topics and get educated on something related to our industry. This is a group of people I would trust to refer my clients and their friend to. So if you need real estate services out of this Central NJ area, I would be glad to refer you to the “best of the best” in the industry that will take care of you, the way I take care of my clients, with only the best service.

It was very interesting, as we met at Heritage Point in Teaneck for our meeting I was exposed to a very new idea to me. It was a retirement community, which looked more like a hotel than an apartment building. In fact, this “hotel” style was indeed a “rental” property for senior citizens. A fellow member’s dad is there having just sold his home in Bergen County and now lives in a brand new “apartment style” 2 BR, 2 bath, living room, dining area and kitchen with all the amenities!! The price is a bit steep, so it won’t be for everyone. But it provides a maintenance free lifestyle with nothing to worry about and it is close to the culture of Manhattan. Starting rent is $3,000 per month, there is fine dining on premises which the residents have 2 meals a day (which we all experienced firsthand as we dined during out meeting…and it was delicious), full daily activities, spa facilities, on-site health care, lovely “lobby area” with coffee and tea served throughout the day. My colleague’s dad even has “maid’s service”, but this is an optional service.  If this has any appeal, give me a call. I have a brochure I received from the community and would be glad to connect you to the right person, if you would like to learn more.

The rest of the meeting was a presentation by a professional organizer and a professional stager. The purpose of staging is to make conscious decisions on how to utilize your space to create a warm, inviting feeling. You need to remove all clutter and remove old wallpaper, for example, so the buyers will feel, “Yes, I could live here; this feels like home.”

The professional organizer is a benefit for anyone moving too. She can evaluate the space that you are moving to (assuming you are downsizing) and advise exactly how much kitchen equipment, towels, linens, etc you can take to your new home. She will work side by side with you to help you evaluate and make those difficult decisions on what to keep and what to purge and what to donate. She has a list of resources for your donations, so you feel it goes to a good cause.

After seeing their presentation, it solidified ever more to me, that preparing a home for sale is not an option anymore, but imperative. When you are ready to sell, your home must be ready too! Yes, it takes time…yes it costs money, but in the end, it is much less than any price reduction that you will do AND it will sell quicker and for more money!! These professionals can come into your home on a consultation basis and then can be hired on an hourly basis. A fully staged home can range from $1,200-$1,800 to stage using your own furnishings and the stager will provide accessories for your use free for 3 months. What dramatic before and after pictures.

1st Time Home Buyer Tax Credit:
The 1st time home buyer incentives that are set to expire on 11/30/09 have definitely given a jolt in the entry level home market in this area. However, now with the “buzz” that the government may extend and/or expand this incentive, all of a sudden 1st time buyers seem to have backed off the panic rush, as I saw last month, to make a decision. It will be interesting to watch the activity over the next couple of weeks. The first time home buyer market is essential to our real estate market turn around, since for every one 1st time homebuyer triggers 4 other home transactions until the 5th transaction is the empty nester selling to downsize.

NJ Jobs:
With some optimistic news…in July 2009, NJ jobs turned positive with a net gain of 5,900 jobs created. This helps change consumer optimism and thus can help the housing market.

NJ Contract Sales and Home Prices:
An update on the overall real estate market is pretty good as NJ real estate is outpacing the nation. According to the Otteau Valuation Group, sales contracts in NJ for August 2009 have matched in numbers to that of August 2007 and is posed to meet 2006 numbers over the next couple of months! This is terrific news. Now, to be clear, prices are down. Since the peak of the real estate market in Fall 2005, the NJ market has declined an average of 20%. From 2008 to 2009, NJ home prices fell 5.9%, while counties like Somerset, only fell 3.4%, and Hunterdon fell 13.1 %. With the amount of inventory now the lowest in 4 years, as new home builders have been waiting in the wings now for some time, NJ unsold inventory now stands at 9.2 months as compared to 16 months as of Jan. 2009. With all this good news on inventory stabilization, there is  still  a very strong sensitivity to price on the part of buyers.  Btw… check out the “How’s the Market” tab to see YOU specific towns’ SOLDS numbers.

Foreclosures:
Even with this good news, I do not feel that home prices have leveled off yet. Given the huge amounts of foreclosures and short sales in NJ, it is difficult to fully stabilize pricing. Mr. Otteau confirmed my hunch with the fact that the actual number of home foreclosures in NJ has reached its 2nd highest level of 4 years in August, with 887 total foreclosures. But determining where these foreclosures are, is a big piece to the puzzle, because I am not seeing any huge “bargains” in the “top” Central Jersey communities where towns with top school systems and easy commuting distance to NYC are still in high demand.

Mortgage Rates:
I personally think this is the time to buy! Home buyers MUST take advantage of record low mortgage rates. Rates this week were 4.98% for a 30 year fixed mortgage. Rates are so low because the Federal Government, through the Federal Reserve is buying mortgage back securities to keep interest rates lower. They realize that fixing the housing market first, will help the rest of the economy heal itself. The Fed has extended this program until March 2010, which should keep rates low for the spring 2010 market. However, there will be much more competition for buyers if you wait until the spring. So I believe, NOW is the time.

As experts all seem to agree, these record low rates will eventually start rising as inflation creeps into our picture and the Fed stops buying these securities which are artificially keeping rates down.
On a different note, we are all so proud to learn that RE/MAX is still #1 in New Jersey.

RE/MAX of NJ:

After the first six months of 2009, RE/MAX continues to be the number one real estate company in New Jersey in both volume and units. Also, 2.8 million visitors/month to REMAX.com. The RE/MAX Network has 93,848 Associates | 6,451 Offices | 78 Countries.

My Featured Property:
65 Loft Drive, Martinsville

$559,000; 3BR, 2.1 baths.

I have a featured property I want to share with you. A wonderful opportunity to own a home with one floor living–with the Master Bedroom on the first floor–in the desirable development of Loft Farms in Martinsville, NJ

CLIENTFULL

Check out interactive floor plan on Media Reports on the full listing

1st floor: 2 car garage leads to mud room/laundry room, powder room, gracious 2 story foyer, master bedroom with spacious master bath, bright and sunny kitchen with den/fireplace adjacent, dining room and living room.

2nd floor: 2 bedrooms, full bath and loft – currently used as an office/den

Basement: finished nicely PLUS huge unfinished space to store your belongings.

2 car garage leads to mud room/laundry room, powder room, gracious 2 story foyer, master bedroom with spacious master bath, bright and sunny kitchen with den/fireplace adjacent, dining room and living room.

After studying and attending seminars with mentors that I value and follow their advice and incite, many feel that home prices have definitely stabilized. That is really good news.

Brian Buffini just completed a webinar for his top coaching clients, and stated that we on the east coast follow the west coast… and since CA has suffered harder and prior to us, we can use that knowledge for what to expect here. He is seeing not only stabilization but in some markets out west, an increase in prices. He continued to state that 2010 will be up and down market as inflation tries to be managed. He spoke about the Eco boom generation as the current 18-28 year olds which represent 50% more people than the baby boomer generation. Eventually we will be dealing with a housing shortage as demand will continue to rise as this group becomes homeowners. So things are not bleak, by any means. However, we do still need to get out of this very tough financial picture with are currently facing.

In August, I earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. I want to share this invaluable knowledge with my clients at a time when many homeowners are in a “distressed” financial situations and may already be dealing with foreclosure proceedings. Here is some good information about the basics about foreclosure avoidance for you as a homeowner, and what your options are.

Foreclosure Avoidance Options
Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. The options available to residents for foreclosure are many, including but not limited to short sales. Here is a brief explanation of these solutions:

Reinstatement: A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeowner simply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will “reinstate” a mortgage up to the day before the final foreclosure sale.

Forbearance or Repayment Plan: A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

Mortgage Modification: A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

Rent the Property: A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, can convert their property to a rental and use the rental income to pay the mortgage.

Deed in Lieu of Foreclosure: Also known as a “friendly foreclosure,” a deed in lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.

Bankruptcy: Many have considered and marketed bankruptcy as a “foreclosure solution,” but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.

Refinance: If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.

Servicemembers Civil Relief Act (military personnel only):  If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.

Sell the Property: Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.

Short Sale: If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more. Many lenders are willing to do this, as it is a less costly option than owning your real estate.

This represents only a summary of some of the solutions available to homeowners facing foreclosure. I would be glad to evaluate your individual situation, property value, and possible options. Understanding your options now could help you make the best decision for you and your family.