Mar. 29, 2008 - Lower price equals value

Study finds low list price works

New data from a New Jersey consulting firm suggests over-priced homes not only take longer to sell, they consistently sell for thousands of dollars less than similar homes that were priced lower in the first place.

The study by Otteau Valuation Group measured and analyzed more than 15,000 transactions annually over a period of several years. The same pattern emerged in every price range, regardless of whether the properties in question were entry-level or luxury million-dollar homes: Sellers who priced their home below the market from the beginning, often received a higher price and a faster sale.

"We haven't hit bottom yet," said Jeffrey Otteau, a long-time consultant and appraiser. "For every buyer that comes to the market there are two, or three or more sellers who put their home on the market."

Read the entire article at NJ.com

Mar. 25, 2008 - Is it the time to buy now?

The answer could be...yes

Well, the super rich certainly think it’s the time to buy real estate!  The Wall Street Journal and Business Week magazine both published articles about business titans, foreigners and celebrities who are buying up luxury properties.  Granted, financing might not be as crucial for them as it is for others.

So, what does this trend mean for mere mortal buyers cautious about making an offer on a home they really like today?  The reality is that serious buyers might not want to wait.  Inventories are high, giving a tremendous choice of homes.  Local home prices have come down and mortgage rates are historically low. 

What are the benefits of not delaying a planned home purchase?  

1. The tax deductions you’re eligible to take for mortgage interest, property taxes and Private Mortgage Insurance (PMI), for those who qualify, greatly increase the financial benefits of homeownership. You will reap these benefits sooner. 
2. Buying sooner gets you away from paying rent and starting to build equity in your home over the long term.  Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated.
3. Waiting could mean the home that you really want went to another buyer. 
4. Waiting for lower home prices might not equate into the overall savings buyers might expect. Recently, Time magazine made the argument that home prices and mortgage rates do not necessarily sync. 

The article explains the purchase of a $218,900 home today with an interest rate of 5.5% ends up with monthly payments less than a dollar apart when compared to purchasing the same home a year from now at $197,010, a decrease of 10% in price, but with an interest rate of 6.0%.  The selling price savings evaporates with the increase in interest rates.

Mar. 22, 2008 - Private Mortgage Insurance short on money

PMI must raise cash

Private mortgage insurer PMI Group Inc. acknowledged it will need to raise "significant additional capital" in order to continue writing new business after posting a $1 billion net loss in the fourth quarter -- much of it through its ownership stake in troubled bond insurer FGIC Corp.  Although PMIs own mortgage insurance operations generated a $236 million net loss in the final quarter of 2007, it was the company's 42 percent stake in FGIC that put the biggest dent in the company's bottom line, accounting for $776.1 million of the net loss for the quarter. PMI's net loss for the full year was $915.3 million.

Source: Inman News

Mar. 19, 2008 - Somerset youth get to party, play and learn

Safe Night program scheduled for Friday, April 5th 

“2008 marks the ninth year that the county has been holding a ‘Safe Night’ program, which brings youth together to openly discuss important and relevant topics such as resolving conflicts peacefully, managing emotions and preventing violence in a fun-filled, safe environment,” said Freeholder Deputy Director Rick Fontana.

Somerset County's youth program is open to students in grades seven through 12.  The evening is planned by their peers and adults in a safe environment..  This year’s “Safe Night’ program is scheduled for Saturday, April 5, from 6 to 10 p.m. at Franklin Middle School, located at 415 Francis St., Somerset.  This year’s theme is “Mardi Gras,” and students are invited to wear a mask and beads.   The registration deadline is March 28, and seating is limited to the first 200 registrants.There is a $5.00 admission fee which includes refreshments and door prizes. 

For tickets and more information about the “Safe Night” program, call Sarah Murchison of the Somerset County Department of Human Services at 908-704-6307 or e-mail her at: murchis@co.somerset.nj.us.  Click here for a brochure and registration form.

Mar. 17, 2008 - CENTURY 21 is now on YouTube.com

And you could win $21,000

Last Friday, CENTURY 21 launched the housing industry's first branded channel on YouTube.com.

To engage both consumers and agents during the Channel launch, the CENTURY 21 System will also host the My CENTURY 21 Open Home Contest, a user-generated video contest where sellers can work with their CENTURY 21 agent to create an “open house” video for submission on www.youtube.com/century21.  The videos should feature a 60-second clip of the seller and home, accompanied by a 15-second introduction or closing by the agent. 

Contest entrants are encouraged to conduct an emotional walkthrough of the home, using humor and creativity to provide an entertaining tour of their homes.  Participants should be mindful of appropriate language, dress and topics in order to qualify for the grand and runners-up prizes.

Through a popular vote on YouTube, the YouTube community will select the top 10 entries, and the grand prize winner will be selected by an executive committee within Century 21 Real Estate LLC.  Voting is open now through May 9, 2008.   The CENTURY 21 System will announce the winners via YouTube on May 13, 2008.

Contest winners will receive the following prizes:

•First prize-consumer winner will receive a $21,000 check and a high definition television; the accompanying agent will also receive a HDTV

•The second through tenth prize winners will receive a digital video camera (1GB)

In addition to the prizes listed above, consumers who log onto the branded CENTURY 21 YouTube Channel will have the opportunity to enter into a random drawing for a $25 gift certificate for music downloads. 

You can view my YouTube at: http://www.youtube.com/user/mjAdamsSellsHomes

Mar. 17, 2008 - Erin Go Bragh

Everyone's Irish on St. Pat's Day

Find fun St. Patrick's Day activities, recipies, and more at kaboose.com 

With Green being the color of the day...Here are a few video guides to "going green" and becoming more energy efficient at home. National Geographic's Green Guide provides more tips on going green.

Happy St. Patrick's Day!

Mar. 10, 2008 - The tech savvy and real estate agents

Do they really need us?

The Wall Street Journal recently asked the question, “Do Young, Tech-Savvy Buyers
Need a Real Estate Agent's Help?” Unfortunately, they never really answered the question. 

I will and my answer is, yes, they do.  Many generation X and Y home buyers don’t need the hand holding their parents wanted but there are tangible benefits provided by the use of a Realtor/real estate agent. Also, in a buyers’ market such as todays, it might seem overwhelming for some buyers to sort through all of the choices. A Realtor/real estate agent can help buyers focus on the homes that best fits their needs and wants.

Buying a home is likely to be the largest purchase you will ever make.  Realtors/real estate agents help you to keep it real.  A good agent will tell you when you are wrong and provide proper guidance.  

A good Realtor/real estate agent is like the conductor of a symphony orchestra. S/he helps to coordinate all the other professionals in de-stressing the home buying process for you; from getting pre-approved for a mortgage loan, to getting physical access to various homes meeting your specific criteria, to negotiating price/terms, to keeping the lawyer on track, to sitting with you at the closing table and the handing over of the keys. 

Regardless of the number of online photos or videos, there is nothing like seeing a property in person to help you visualize living there. Real estate agents provide access to millions of homes across this country.  Websites such as Realtor.com pull information from the local MLS (Multiple Listing Service) and those listings can appear to be "available" until they actually close. A home can show as available even though it could be well into the contract process! Also, many sites can be about a week behind current listings. So a new listing could come up, but might not show on that website until the following week.

It might not be widely known that in New Jersey a real estate contract or an Agreement of Sale filled in by a licensed Realtor/real estate agent automatically provides the both buyer and seller with three days in which to have an attorney review the document before it becomes legally binding. This is commonly called a "cooling off" period.  The three (3) day attorney review clause only applies to contracts prepared by a Realtor/real estate agent and does not apply to contracts which are privately prepared or prepared by an attorney.

In the end, we Realtors take on the tasks of being consultants and problem solvers who often make the deals happen for our clients…better.  Simply put, represented clients of better Realtors/real estate agents buy better homes at better prices.

Mar. 4, 2008 - February 2008 Residential Sales

Franklin Township Residential Sales

The month ended with 25 Franklin Township single family residences sold between February 1 - 29, 2008. These properties sold during this period at an average of 96% of listing price. 

The month ended with 566 active listings on the market, including 169 new listings.

If you have a question about a specific property in town, or stats for surrounding areas, please don't hesitate to contact me.

Source: Garden State MLS, L.L.C. **Info. deemed RELIABLE but not GUARANTEED - ALL Room Sizes are Approx.**

Mar. 3, 2008 - Do open houses sell homes?

Nearly fifty percent of buyers love them

Now that the weekend is over, when a number of open houses were held, let's have a conversation regarding their worth.  There is both good and bad news about open houses.  There are Realtors who hate them, claiming they are a waste of time. There are Realtors, sellers and buyers who love them. 

I think they serve sellers well, but buyers even more.  It is my opinion that open houses help buyers visualize what the want and don't want.  And, if your home is that "shiny penny" in the growing inventory of homes here in Franklin Township, it will stand out among the crowd and sell faster. 

According to the latest National Association of Realtors (NAR) buyer profile, 48% of all home buyers go to open houses. However, when asked where they learned about the home they purchased, `open house’ did not even show up. Statistically speaking, open houses don’t sell homes.  Buyers are always playing a game of elimination-even more so in a buyer’s market. They have so many houses to choose from, they are trying to narrow down their selections.*  

Get “The Truth, Sort Of, About Open Houses” right here.

* Source: RisMedia