Archive for May, 2009

Many people are wondering if foreclosure properties or short sales are they way to go in this market. I wanted to share some information with you about the sale process for these types of transactions. As of 5/29/2009 there are 9 listings out of 264 in Basking Ridge that are disclosed as bank owned or short sale properties requiring third party approval.

Bank owned: these properties have already been foreclosed and are now owned by the banks. When purchased, clear and marketable title is conveyed; in fact you can probably get a break on the title search since the bank had so recently completed one. They have not had prior home inspections and are typically sold “as-is”. Often they are in deplorable condition and we can get no information from prior owners as they are completely out of the picture. Though you are able to perform a home inspection the results are for your knowledge only. Generally you will have the ability to back out of the contract after the home inspection if there were more troubles than you anticipated and you would get back any deposit monies. These properties are usually priced at or below market value and often have multiple offers; we are seeing them sell quickly and sometimes at or over asking price. (Keep in mind that if you pay list price on a perfectly or competitively priced property you are still getting a deal. Many people define a “deal” relative to list price when it should be defined relative to “market value”).

Short Sales and/or 3rd Party Approval required: These properties are not necessarily foreclosures; while they are still owned by the residents of the house, they might be in pre-foreclosure for failing to keep up with mortgage payments despite sufficient equity in the house, or it just might be that the owner while current on their mortgage payments is upside down – they owe more than the house is worth and are seeking a short sale rather than having to bring money to the table at closing. Getting short sale approval from the bank relieves the homeowner of the difference between market value and mortgage balance. The owner needs to get approval from the bank for the short sale and the buyer also needs to be approved by the same bank. Pricing is inconsistent on these properties because sellers and Realtors set the price, the banks do not. Often you can negotiate the price down from list on a short sale property as the owner has probably priced the property to cover the difference between market value and mortgage amount, but the banks are more concerned about NOT carrying inventory and will often negot iate further than the owner will; however, you do not get to negotiate directly with the bank.

When you purchase a short sale or pre-foreclosure property it is imperative to work with a real estate attorney who has experience in this type of transaction. There are a lot of unknowns – how many liens are there against the property? Is there a second mortgage with a different bank? An unpaid tax debt, contractor lien, or even an American Express bill? It is hard to tell if you will receive clear and marketable title and if you buy a house with a lien against it – it becomes your lien even if you were unaware of it at the time of closing.

Often pre-foreclosure properties are scheduled for sheriff sales – your attorney (or your Realtor) needs to ensure that delays are filed for – because if the property goes to sheriff sale and someone bids on it, you could lose it even if you have had an offer on the table for weeks already. I have seen short sale transactions go on for months and months without a set closing date.

If you are curious about these properties in Basking Ridge or the surrounding areas, I am more than happy to help you find these properties and guide you through the process.  Visit Basking Ridge Real Estate for more information.

72 Victoria Drive, Basking Ridge, NJ

This traditional center hall colonial in Basking Ridge features an updated kitchen that is open to the family room which boasts sliders to a wonderful deck that is perfect for entertaining. Upgrades include refinished hardwood floors, new Trane®/Aprilaire® heating and air conditioning systems, Anderson® sliders, stainless steel GE® appliances and an updated main bathroom. A finished basement completes the picture.

The average tax assessment in this terrific Basking Ridge neighborhood is over $800,000 – it is a fantastic neighborhood and the opportunity to buy into it now will pay off later when the market starts to climb again!  This property is close to school (The Liberty Corner Elementary school is an award winning school that covers kindergarten through fifth grade.) and also to Rebel Hill Park.  The park is in walking distance and has tennis courts, soccer fields where the Somerset Hills Soccer club plays and a Basking Ridge Little League field.  It also has a playground and a sledding hill.  Harry Dunham Park isn’t far either, that park features walking trails, a roller hockey rink, a playground and an indoor pavilion that residents can reserve for parties through the Bernards Township Recreation Department.  With easy access to Route 78, Route 287 and the Lyons train station, this location is second to none in Basking Ridge. 

For more information visit www.72VictoriaDrive.com.

that Basking Ridge has declared their playgrounds and athletic fields pesticide free?  Township residents are also asked to do their part to reduce the use of pesticides in our environment.  Look for the Ladybug logos at our parks! 

Visit www.Basking-Ridge-Real-Estate.com for more information about the town of Basking Ridge and and the current Basking Ridge Real Estate market.

Amazing builder’s model – this Toll Brother’s Elkins model features an extended breakfast area and a two story family room with floor to celieing windows. Custom moldings and a coffered ceiling highlight this room which also boasts a brick fireplace and French doors to the deck. The cherry kitchen boasts an oversized granite island, newer appliances and a pantry. A back staircase leads to four bedrooms – the master with a sitting area and large master bath with jetted tub and dual sinks as well as a walk-in closet that is beyond big! The finished walkout basement features a full bath and a legal fifth bedroom. The house is wired for sound and security and has an underground irrigation system. What a great opportunity to live in the Hills! A double lot provides back-yard privacy and a three car garage places this home at the top of the list!

Basking Ridge is celebrating the 249th year of their Charter. Charter Day in Basking Ridge is on Saturday, May 16th, 2009 starting at 11:00 am and going through until 10:00 pm.  There will be food and entertainment all day!  Local businesses, community groups and service organizations will be showcasing their services and sponsoring rides games and attractions.  Art shows and historical displays.  There will be a battle of the Bands on the Henry Street stage – come vote for our local teens! 

The Basking Ridge office of Weichert, Realtors will be there with information on the First Time Homebuyer Tax Credit.  We will also be showcasing that weekend’s Basking Ridge featured listings and open houses.  If you have questions about the Basking Ridge Real Estate market or the selling or buying process, come by and ask for Jennifer Blanchard.

Big events are planned for 2010 – the 250th anniversary of Basking Ridge!  A special committee has been appointed to plan for this special occasion.  If you have an interest in participating in the planning of this exciting event please contact me at http://www.basking-ridge-real-estate.com/contact-jennifer-blanchard.htm  and I will share what I know.

If you are thinking about buying or selling a home, contact me today for all of your Basking Ridge real estate needs or visit my website to search homes for sale in and around Basking Ridge, NJ.

Closed Home Sales in Basking Ridge in April of 2009 were stronger than they were a year ago in April of 2008. Prices have not gone up, but the number of sales has and list price to sale price ratio was stronger in most cases. I attribute this to sellers becoming more realistic in how they are pricing their homes.

There were 25 closed sales over all in Basking Ridge in April of 2009 compared to 22 in April of 2008, not a big difference, but the segment of the market that saw the biggest change was the Basking Ridge Townhouse and condo market outside of the Hills.

This is the lowest priced segment of the Basking Ridge market with an average sale price in April, 2009 of $244,500, compared to $305,083 in April of 2008.

This is a significant drop – also significant is the fact that this segment is selling with a 98% sale to list price ratio. In some cases we are even seeing multiple offers!