Posted by
admin on Jul 30, 2010 in
Market Analysis,
Marketplace
JULY 2010 Newsletter Housing Trends eNewsletter
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
Please click here to view the JULY 2010 Newsletter Housing Trends eNewsletter.
If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.
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Tags: enewsletter, housing market, housing trends, housing values
Posted by
admin on Jul 30, 2010 in
Buying,
Real Estate The economy is stabilizing and home prices seem to be holding. It’s not just as good a time as ever to buy a house, it’s a great time to buy a home! Here are some key reasons why now is a great time to buy a house:
1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.
2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.
3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.
4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines…again. Now that appraisers have more flexibility to set values that reflect the current market, today’s deals will make it over the finish line.
5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by “workforce housing” programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates.
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Tags: buying a home, home buying
Posted by
admin on Jul 17, 2010 in
legislation On July 13, 2010, Governor Christie signed a property tax cap into law which states that municipalities cannot increase their property taxes by more than 2.0 percent annually. There would be four limited exceptions to the property tax cap, which include healthcare and pension costs, as well as debt payments. Towns would also be granted leeway under the proposal in the event of an emergency, and voter approval of 51 percent would be required to exceed the cap. For further details, view the text of the bill.The state Legislature will now move forward in considering the 32 other bills included in the Governor’s property tax reform package. REALTORS®, through NJAR® , will continue to urge the Legislature to work with Governor Christie to enact proposals that will not only slow the rate property taxes increase, but eventually lower them.
Tags: Governor Christie, property tax, property tax cap
Posted by
admin on May 11, 2010 in
Market Analysis In March there were 3745 homes for sale in the county. March of last year we had 3784 homes for sale in the county. This means that the amount of months it will take to sell off these homes, without adding more homes to the market, is approximately 11.5 months, whereas in March 2009 it was 12 months to sell all of the homes.
In March 2010, 309 homes were sold for a mdeian price of $180,000; which was 90.6% of the asking list price. Same month in 2009 there were only 256 homes that were sold for a median price $166,000; which was only 88.7% of the asking list price. Year-To-Date figures for 2010 ending in March showed a total of 692 homes sold for a median price of $173,000 that was 89.54% of the homes’ median asking price Year-To-Date for 2009 ending in March showed only 660 homes sold for a median price of $168,000 and was only 88.44% of the homes’ mdeian asking price.
This shows that now is a good time to look to sell your home. Buyers are getting past the memory of having overpaid in the last few years and are not forcing prices down too much to counter those previous years. The current inventory of homes (is a calculation of total number of homes on the market divided by the average number of homes sold per month) is decreasing and the excess inventory is being sold off, as shown by the higher numbers of homes that were sold this year versus last year.
And the interest rates are not out of reach for the average first time home buyer. Remember, the key factor for anyone that is looking to buy a homes is the price of money (interest rate) as opposed to the price of the home. As important as the price of the home may be to a home buyer, more important to them should be the price of money. The price of the home is what they will pay one time…the price of money is what they will be paying each month with their mortgage payment.
© 2009 Freddie Mac. Averages are for conforming mortgages with 20% down.
Loan Type Avg. Rate Fees & Points Margin
30YR FRM 5.03% 0.7 N/A
15YR FRM 4.40% 0.6 N/A
5YR ARM 4.11% 0.7 2.73
1YR ARM 4.09% 0.5 2.71
If you want to find out if this is the right time to sell you homes, give me a call to scheduel a no cost, no obligation Comparative Market Analysis or go to http://www.sellmysnjhome.com and complete the form.
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Tags: camden county, camden county market stats, market analysis for camden county, market statistics
Posted by
admin on May 7, 2010 in
Buying,
Editorial,
Misce4llaneous Property is, typically, a big investment and new property owners want to protect the money that they invest in their property. One of the fundamental things that property owners want to protect is their ownership rights. Accordingly, it is important to have a title search conducted on the property and to purchase title insurance in case anything was missed during the title search.
Title Search
A title search, if done properly, will give you a chain of title for the property, show any restrictions on the property, such as easements, and identify any outstanding liens on the property. A title search is done by searching the local land records in the town, city or county where such records are kept for the property.
Anyone can go to the office where land records are kept and perform a title search. However, many people choose to employ a title search company or an attorney to do the title search for them. It is important that a title search be thorough and reveal all encumbrances, liens, and owners of the property so that a person buying the property knows:
- that he is buying a piece of property that can be legally sold to him; and
- if there are any restrictions or encumbrances that he will become subject to or liable for when he becomes the property owner.
For these reasons, prospective property buyers should have a full title search done. Limited title searches may be done if property owners are not changing such as during a refinance of the property.
Title Insurance
While a thorough title search will reveal potential problems and give a buyer the opportunity to rectify them, it is always possible that the person conducting the title search missed something. Since the government only provides a method for checking property ownership and encumbrances and does not verify such ownership or encumbrances, it is important to protect your investment with title insurance.
Title insurance protects property owners from incurring financial losses because of a problem with the property’s title. Title insurance companies require policy owners to have a title search done before obtaining insurance. Most banks require mortgage applicants to obtain title insurance prior to issuing a mortgage so that they can be assured that their interest in the property will be honored if a previous lien, owner or other encumbrance should come to light in the future. Title insurance policies may be issued as an owner’s policy if it is purchased by the homeowner or a lender’s policy if it held by the mortgage lender. Typically, the cost of title insurance is a one-time fee and the insurance remains in effect as long as the same owner maintains ownership of the property. A subsequent owner would need to purchase his or her own title insurance policy as they are nontransferable.
Most United States jurisdictions maintain public, yet complicated, systems of land records. Home buyers should conduct title searches, or hire someone to conduct a search, and purchase title insurance in order to make sure that their property purchase is protected.
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Tags: home buyers, protecting your property, protecting your title, titel insurance policies, title insurance
Posted by
admin on May 6, 2010 in
Editorial,
Investments
If you are lucky enough to own a piece of property that has a backhouse, cottage or granny flat on it then you may wish to rent that structure out for additional income. In fact, the opportunity to use that structure to help pay your mortgage or provide you with additional income may be one of the reasons why you bought the property in the first place. However, if you are thinking about becoming a landlord and renting out part of your property there are some important things to consider and to decide before you begin looking for a tenant.
The Landlord Tenant Agreement
Whenever you become a landlord, your landlord tenant agreement, or rental agreement, is always very important. It is especially important when you are going to be sharing the property with your tenant. In addition to the standard terms of a landlord tenant agreement such as the amount of the rent, when the rent is due and describing who is responsible for maintenance, repairs and insurance, an agreement to rent a backhouse should include information about:
· How common areas such as lawns and pools are going to be shared. Are you going to allow your tenant to access them at all or only at certain hours?
· The number of guests your tenant can have on your property at one time. Are you concerned about parties and how that will affect your ability to relax or work at home?
· How many tenants are going to occupy the rental space. You may be concerned about the safety of the tenants, the potential noise and the wear and tear on the structure.
· The presence of children and / or pets both of whom can damage your property and create unwanted noise.
The Tax and Legal Implications of Renting a Backhouse
There are always tax implications to being a landlord. However, if the tenant shares your property then your tax liabilities are a little more complicated than if you have a separate property to rent. It is important to keep track of the expenses for the part of the property that you use and the part of the property that you rent. Your tax deductions are dependent on you keeping careful records and taking proper deductions for the part of the property that you use personally and for the part of property that you rent to others.
Since you will be living in close proximity to your tenant, it is best to have a real estate attorney review your landlord tenant agreement before you provide it a tenant for his or her signature. A real estate attorney can also advise you concerning the tax implications of your arrangement. Then, you can be confident that the rental will provide you with income and that you are protecting your property interests.
If the rental of a backhouse, cottage or granny flat is done in the correct manner then it can provide real benefits to the property owner / landlord. Therefore, it is important to consider your options and create an agreement that will be beneficial to you now and in the future.
Tags: rental, rental properties, rentals, tenants
Property is often bought and sold for business purposes. It makes sense, from a public policy perspective, to encourage the buying and selling of property so that business owners purchase the property that is best suited for their use. Property may include real estate, personal property such as equipment, tools and motor vehicles, or livestock, for example. The government, recognizing that the possible capital gain taxes on the sale of property might prevent some businesses from buying and selling property, has enacted what is known as the 1031 Exchange Rule.
What is the 1031 Exchange Rule?
The 1031 exchange rule is part of the IRS Code. It allows people to replace business or investment property without having to pay capital gains taxes at the time of the sale. It is meant to encourage the productive use of property in trade and business. Property that is bought with the intent of creating a quick resale and private residences will not qualify for a 1031 exchange. The potential tax benefits of a 1031 exchange are significant. Therefore, the IRS has established some strict guidelines about the types of properties and the types of transactions that are eligible for this tax break.
Does My Transaction Qualify as a 1031 Exchange?
If you are trying to determine whether your real estate transaction would qualify as a 1031 exchange then consider:
- Whether the properties involved in the exchange are held for valid trade, business or investment purposes;
- Whether the properties qualify as eligible for a 1031 exchange. Section 1031 b of the IRS Code explains what is and is not eligible for a 1031 exchange. For example, real estate is eligible but stocks and bonds are not eligible;
- Whether the properties are of like kind. For example, both properties are real estate in the United States and not other types of personal property or international real estate.
- Whether you identified the replacement property within 45 days of closing on your current property and closed on the replacement property within 180 days of closing on your other property.
- Whether the proceeds from the sale of your current property must go to a qualified intermediary until you purchase your replacement property. The qualified intermediary enters a written contract with the person who is buying and selling property. The qualified intermediary holds the funds from the sale of a property and acquires the next property and then transfers the property to the taxpayer.
All of the funds must be reinvested in the replacement property. Any cash that is left over after the purchase of the replacement property is called “boot” and will be taxed.
As is the case with many tax breaks, the requirements for a 1031 exchange are strict and the penalties for not complying with all of the requirements can be significant. It is, therefore, important to work with an attorney versed in 1031 exchnages before entering a 1031 exchange transaction. If you don’t have one or are not currently working with one, you can give me a call and I will recommend one that we have that we can recommend. The attorney can make sure that all of the requirements have been satisfied and that the exchange is made pursuant to section 1031 for the benefit of your business.
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Tags: 1031 exchange, 1031 exchange rule, 1031 exchanges, investments, irs code
Posted by
admin on May 5, 2010 in
Editorial 
That’s the question I tend to ask when I come across a listing with no photos and/or no public remarks/description.
Now, right from the outset let me say that I see a large amount of listings each and every day. I do this as a part of my real estate business. Besides completing CMA’s for prospective customers/clients, search out homes for my buyers, prepare potential properties for my expired listing marketing campaign, I also complete 5-7 BPO’s for lenders each day. For all of those I have to research acceptable comps and therefore I need to view the listings in the general vicinity of the subject properties. With that said, I have lost count of the number of listings I have seen that have been on the market for over 90 days and have no photos of the property at all. Also, in some cases there has been no description, at any level, of the home. How are you trying to market the property? I can see that there may not be any photos after 6-8 days after getting the listing. You intend to go back and take photos during better weather or give the home owners a opportunity to properly stage the home. But after 90 days, you should at least have a photo of the exterior of the property. What is the listing agent thinking? That buyers will be interested in seeing the property just out of curiosity? I doubt it. Buyers feel if there are no photos showing any aspect of the home that it probably isn’t worth even viewing. Leave out interior photos and they will presume that the interior is in such bad shape that the listing agent didn’t want to scare off the buyers. So, they move onto other listings.
As for the lack of property descriptions, I just don’t understand this. The listing agent has been in the home. They had to be in there to make their presentation as to the market price and their marketing plan, so why not just pit down some basic information about the home…a verbal narrative of what the buyer can expect to see when they view it, highlights of the key areas of the house. I don’t know which is worse, have a blank and empty public remarks/description section or stating “Property description to follow” still showing after over 90 days on the market.
As a professional marketer and businessman, it sets my teeth on edge whenever I see such listings. The listing agent took the time to make their presentation to the home owner, establish an agreed to marketing price, and then had the home owner to sign a listing agreement. For what? To have the home owner’s home wallow on the market with no activity and a very slim chance to sell? These agents are my colleagues, my competitors, and I wish they’d find another line of work. They are tainting the market for the rest of us. We have to follow behind them and apologize for their lack of skills, knowledge, and professionalism.
Now I start wondering if the property listing has no photos and/or description then how does the listing agent expect to market and sell the home? I’m left with one conclusion. Price. If you price something low enough you will definitely get lots of interest regardless of the property condition. But the days of overpaying on homes is over. Under pricing a home just to generate interest is not doing your home owner any favors. Buyers still remember what happened during the last real estate “boom” when people over-paid on homes, made offers over the asking price. They remember the end results of people who have a home that is now valued at less then what they owe. So, why would buyers want to pay over the asking price, even if it is considerably less then where it should be? The listing agents aren’t home marketers because they aren’t properly representing the home owners or giving a true picture of the home being sold. In the last year the actual sold price vs. asking price has been less then 95%:
1. Camden County - avg. actual sold price was 89% of the avg. asking price
2. Burlington County - avg. actual sold price was 90% of the avg. asking price.
3. Gloucester County - avg. actual sold price was 90% of the avg. asking price.
4. Cumberland County - avg. actual sold price was 91% of the avg. asking price.
So, you’ll note that the average price that a property sold for was less then the average asking price. The actual sold prices are NOT 100%+ of the asking price. Then why market via price only? The listing agent isn’t doing their client any favors.
Real professionals look out for their client’s best interest and make a point of knowing the market area and what it takes to insure that the property is sold at the optimal price. As important as price is, proper presentation and promotion is just as important.
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Tags: home listings, homes for sale, listing agents, listing photos, MLS listings, no photos
Posted by
admin on May 1, 2010 in
Finances,
Misce4llaneous,
Real Estate
RESPA is a federal regulation that governs certain aspects of the closing and settlement process in a real estate transaction. Designed to protect consumers who are buying houses, the U.S. Department of Housing & Urban Development (HUD) enforces RESPA. Essentially, RESPA requires that buyers be given certain disclosures or information at various points during the purchase process, and outlaws kickbacks that might increase the costs of closing and settlement.
RESPA applies to most mortgage loans taken out for primary homes. When you apply for a mortgage loan, the lender must give you certain information about various real estate settlement services, a Good Faith Estimate as to the amount of settlement charges you will face if your loan is approved, and a Mortgage Servicing Disclosure Statement, which addresses whether the lender intends to service the loan or transfer it to another lender, as well as procedures for resolving complaints that you might have. Lenders have to give you this information at the time of your loan application, or mail it to you within three business days of your application. The only exception is if the lender turns down your loan application within three days; in this case, the lender is not required to comply with this aspect of RESPA.
A lender must also make certain disclosures before settlement and/or closing on the loan occurs. RESPA requires that you receive a completed HUD-1 Settlement Statement at least one day before closing. This document sets forth all of the charges that apply to both the buyer and seller at the time of closing. RESPA also mandates that you receive an Affiliated Business Arrangement Disclosure prior to settlement, if the settlement provider has referred you to a provider with whom it has some sort of business arrangement.
Furthermore, in addition to the HUD-1 Settlement Statement, RESPA also provides that you receive an Initial Escrow Statement at settlement or within 45 days thereafter, which sets forth the estimated property taxes and insurance premiums that you will pay during the first year of the loan. This Statement also must contain the total amount of escrow payments you will make, as well as any required minimum amount that the lender requires to remain in your escrow account at all times.
Following settlement of your loan, RESPA imposes an obligation on lenders to send you an Annual Escrow Statement that gives an itemized account of all payments and deposits on your escrow account. At that time, you will be refunded any overpayments, or be required to make up any shortages in your escrow account. You also are entitled to a Servicing Transfer Statement at any time that your lender sells or otherwise transfers the servicing of your loan to another company.
Finally, RESPA prohibits any kickbacks, fee-splitting, or other unearned fees that might unfairly increase your settlement costs. Violations of these provisions of RESPA can result in both civil and criminal penalties. Additionally, RESPA places limits on escrow accounts and outlaws lenders from requiring that you use a particular title company.
Tags: hud-1, mortgages, real estate settlement procedures act, regulations, respa, settlement
Posted by
admin on Apr 19, 2010 in
Home Design/Remodelling Not HighTech Design. This company’s line of weird and wonderful bathroom sinks includes this fossil shaped basin that sends water twirling down the drain.
It is made of ammonite concrete.
The company also has designs featuring cubes, wedges, shallow pans, and even basins.
On the Web: hightech-design-products.com
Tags: home design, remodelling
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