Archive for July, 2009

Since 7/25/09

Only 3 properties went under contract this past week in Basking Ridge.  That means offers were negotiated, attorney review was completed and inspections are underway on the following properties:

169 Alexandria Way had been listed for $247,500
36 Chestnut Court had been listed for $355,000
10 Butternut Lane had been listed for $1,825,000

There are an additional 12 properties that are working through attorney review.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate website for more information on what has sold by month (July numbers will be posted on Monday).

New to the Basking Ridge market are the following 11 properties (note that some of these have been available for quite some time but have been relisted):

125 Potomac Drive listed for $254,750
218 English Place listed for $265,000
2003 Rose Court listed for $314,999
261 Penns Way listed for $325,000
2104 Rose Court listed for $345,000
23 Lindbergh Lane listed for $439,900
92 Dorchester Drive listed for $510,000 (my listing – click for info)
41 Harrison Brook Road listed for $599,000
76 Culberson Road listed for $699,999
6 Honeyman Road listed for $765,000
150 Bernards Drive listed for $1,149,000

As of this afternoon, there are a total of 233 listings showing active in Basking Ridge in the MLS.  With 39 going under contract in the last 30 days, Basking Ridge market absorption is 5.97 months.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge website to sign up for listing alerts in and around Basking Ridge.

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Did you know that Basking Ridge is holding a “Community Shred Day“?! – Bernards Township residents are invited to have personal documents shredded at a free, on-site, mobile paper-shredding event Saturday, October 17, from 10 a.m. to 2 p.m. in the Bernards Township Engineering Services Building parking lot at 277 S. Maple Avenue, Basking Ridge. This event will be held rain or shine. “Community Shred Day” is sponsored by the Bernards Township Committee. Documents will be commercially shredded safely, privately and properly by trained, licensed and bonded document-destruction specialists. Residents may bring documents in whatever type of container they wish. Staples and paperclips do not have to be removed. Papers will be dumped and the container will be returned to the resident. Participants may stay and watch the process, if they wish.

Basking Ridge Property Tax Summary – William Draper, the Bernards Township Demographer has put together his latest report for the residents of Bernards Township. This report describes the history of property taxes in Bernards Township from 1993 – 2009.

Milling and Paving – On July 23rd, The Bernards Township Department of Engineering Services started to mill and pave Spring Valley Boulevard from Valley Road to English Place. Construction is weather dependant and all dates are subject to change without notice. During paving operations, vehicular access will be restricted. Traffic will be maintained in one direction towards Acken Road.   Also scheduled are Pheasant Run Drive, Ridgeview Drive, and St. Nickolas Way. Milling is scheduled to start on Pheasant Run Drive and St. Nickolas Way on Monday, August 3rd. Ridgeview Drive is scheduled for milling on Tuesday, August 4th. And all streets are scheduled for paving on Thursday, August 6th.

Stay up to date on Basking Ridge information by frequently visiting my website - no obligation, just information!

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This new listing is a stunning 1900 Hamilton Crest model with a versatile loft that can easily be converted to a third bedroom.  Upgraded kitchen with patio access – private back yard!  At the end of a cul-de-sac it’s location in the development affords ample guest parking. Hardwood floors throughout the first floor, corian counters, ceramic tile in the kitchen.  Finished basement offering space for an office or a guest.  The Hamilton Crest community (spotlight blog post for the Hamilton developments to follow) is a premier town house community in Basking Ridge, close to school, shopping and the Hills recreation center. 

Contact me for more information on the benefits of owning a home; I can also tell you about the first time home buyer credit or set you up for listing alerts.

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A report this week from the National Association of Realtors (NAR) presents more evidence that a housing recovery is under way in much of the country. According to NAR, existing home sales rose for the third consecutive month in June to the highest level since October 2008. The last time home sales rose for three straight months was in early 2004 during the housing boom.

According to NAR Chief Economist Lawrence Yun, “The increase in existing-home sales occurred in all major regions of the country. We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions.”

There are clear signs that buyer interest is high. A NAR practitioner survey in June showed that first-time buyers are continuing to respond to the limited-time $8,000 federal tax credit. In addition, the number of buyers looking at homes in June was up nearly 12 percentage points from June 2008.

Contact me for more information on the benefits of owning a home; I can also tell you about the first time home buyer credit or set you up for listing alerts.

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RESPA Reform, Mortgage Disclosure Improvement Act and Truth in Lending

For the first time in more than 30 years, the U.S. Department of Housing and Urban Development (HUD) has issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs.  Up until now, this wasn’t required – though you could ask for a GFE, it wasn’t always guaranteed that you would receive it. HUD estimates its new regulation will save consumers nearly $700 at the closing table.

When the Real Estate Settlement Procedures Act was designed in 1974, the intent was to help simplify the mortgage shopping process and reduce consumer settlement costs.  The current changes will make the process even more transparent and understandable for consumers.  RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

This new federal regulation has been created as a way to protect consumers from deceptive loan practices. As a result, there are new requirements and timelines for disclosing information, collecting fees and scheduling closings/settlements. FINALLY!

The Mortgage Disclosure Improvement Act (MDIA), part of the Housing and Economic Recovery Act, affects mortgage disclosures, closing dates and fees. MDIA represents a major shift in the way our industry does business: All lenders (including brokers) must comply.

As of July 30, 2009, no fees (except for a credit report fee) can be collected by the mortgage broker/originator until the initial disclosures are received by the borrower.  If disclosures are mailed they are considered “received” three full business days after mailing, allowing the fees to be collected on the fourth business day.

The earliest possible closing date is the 8th business day after initial disclosures are provided to the borrower.

An increase or decrease of more than 0.125 percent in the Annual Percentage Rate (APR) from the initial Truth in Lending disclosure (TIL)** requires that a revised TIL disclosure be issued to the borrower.  If the TIL must be revised, the borrower must receive the revision at least three business days before closing and the TIL disclosure is not considered “received” until three business days after mailing.

**Why would the APR change? 

- if the loan amount changes UP or DOWN
- if the loan program changes.
- if fees are higher than initially disclosed (including attorney fees)
- if additional fees not originally disclosed must be charged.

What does this mean for us?

- More transparent, level and fair regulation of our industry.
- Consistent lending practices among all lenders.
- Additional controls to prevent deceptive lending practices.
- Even more consumer protection.
- Consumers that are better informed and more confident about the mortgage process.

Contact me for more information.  If you are looking for a new home and I am happy to help.  You can receive listing notifications, or search for properties yourself at www.Basking-Ridge-Real-Estate.com.

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Absorption Rate is a way to measure current inventory levels.  It is based on the number of current listings and the number of contract sales in the last 30 days. Market absorption is an indicator of who is favored in the market: buyers or sellers, and it directly correlates to appreciation or more recently, depreciation.  As of last Friday, absorbtion rates in my key market areas were as follows: 

As I have said many times before, monitoring absorbtion rate on a daily or weekly basis is like getting on the scale too often when dieting; we have to look at the big picture – or the trends.  Rates will vary based on typical seasonal cycles.  They also vary greatly by price point or community. 

This information is something that I monitor pretty closely for each of my seller and buyer clients – if I have your home listed, you can expect this information on a regualar basis and you can be confident that my recommendations and marketing  are based a thorough understanding of what is happening in your market segment.

I am happy to provide information on the impact of absorbtion rate on the value of your home.  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.

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Some rules to follow when selling your home

1. Hire a good agent - A professional who knows your neighborhood and has a good track record in the community.  Don’t hesitate to ask how many sales they handle in a year, how much of that business has been local and what percentage was representing sellers vs. buyers.  A good balance of both is important.  It’s good for a listing agent to represent buyers sometimes – it helps to understand both sides of the transaction.
2. Clean out the clutter – you are moving: start packing!  Closets count too!  Don’t just shove your stuff in a closet – those doors will be opened!!  I read somewhere that when kitchen counters are free of appliances and other clutter, the kitchen will appear 40% larger.  I’m not sure if that’s exactly true, but you get the picture!
3. Spiff things up – make any improvements that will make a a difference in how the house shows.  A fresh coat of paint goes a long way, a throw on the couch, clean windows!  Keep the front walk swept, the front door should be in good shape, the hedges trimmed and the lawn mowed.  Buyers make a decision within the first 10 seconds – not whether they’ll buy a particular house, but whether they will even consider the house.  First Impressions count for a lot!
4. Determine the worth of your home – Knowing the fair market value of your home is so important as it allows you to play the market smarter.  Contact me for information on the value of your home, and then,
5. Price it right! – I can help you be objective when pricing your home.  We need to set the price so that it is as close to market value as possible.  The price must reflect trends in the market and take into consideration what has sold in and around the neighborhood.  Visit my website for more information on what has sold in Basking Ridge.
6. Have a plan; and share this plan with your realtor.  Are you set on your price or eager to move?  Have you already purchased your next home?  How low are you willing to go to make the deal happen?  Let’s run through scenarios – be prepared for when that first offer comes in.  Typically, the first offer is the best offer, even if it doesn’t appear that way initially.
7. Figure out your selling costs: understand the taxes due, attorney fees, township inspections, etc.
8. Set the stage – open the curtains, turn on the lights, put away the dog’s dishes.  Don’t cook spicy foods, put away the laundry.  Place cut flowers on the table.  A bright home is a welcoming home.   Make it easy to show – don’t require 24 hour notice unless there are extenuating circumstances.  It’s hard, but be ready to show the home even on short notice; hopefully this inconvenience will be temporary!

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7/12/09 – 7/18/09

9 properties went under contract this past week in Basking Ridge.  That means offers were negotiated, attorney review was completed and inspections are underway on the following properties:

350 Potomac Drive had been listed for $245,000 (sold in under a week!)
148 Woodward Lane had been listed for $269,000
243 English Place had been listed for $270,000
124 Potomac Drive had been listed for $284,474
48 Countryside Drive had been listed for $379,900
30 Lake Road had been listed for $515,000
113 Constitution Way had been listed for $529,999
13 Dexter Drive South had been listed for $578,500
19 Eton Place had been listed for $814,900

There are an additional 11 properties that are working through attorney review.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate website for more information on what has sold by month.

New to the Basking Ridge market are the following 9 properties (note that some of these have been available for quite some time but have been relisted):

149 Potomac Drive listed for $212,500
119 Potomac Drive listed for $249,000
72 Jamestown Road listed for $285,000
30 Battalion Drive listed for $499,900
18 Mt Airy Road listed for $559,000
128 Sunset Lane listed for $649,900
49 Watchung Drive listed for $879,000
14 Byron Drive listed for $914,900
94 South Stone Hedge Drive listed for $1,299,000 

As of this morning, there are a total of 242 listings showing active in Basking Ridge in the MLS.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge website to sign up for listing alerts in and around Basking Ridge.

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The market in Basking Ridge is currently at an inventory level of 7 months (246 available properties, 35 sales in the last 30 days).  This is a very healthy market – especially given the negative press that the real estate market is getting!

There have been 10 sales in Basking Ridge so far in July – at various price points as follows:

• under $300,000: 4 sales
• $300,000 and $500,000: 1 sale
• $500,000 and $800,000: 2 sales
• $800,000 and $1,000,000: 1 sale
• over $1,000,000: 2 sales 

Breakdown of absorption rate by price range:

• under $300,000 there are  33 available properties, 8 sales in the last 30 days, absorption rate: 4.1 
• $300,000-$500,000 there are 49 available properties, 5 sales in the last 30 days, absorption rate: 9.8
• $500,000 and $800,000 there are 81 available properties, 8 sales in the last 30 days, absorption rate: 10.1
• $800,000 and $1,000,000 there are 24 available properties, 3 sales in the last 30 days, absorption rate: 8
• over $1,000,000 there are 61 available properties, 11 sales in the last 30 days, absorption rate: 10.1

Weichert has been studying market conditions for more than three decades and has found a direct correlation btween market absorption and property values.  As absorption rates increase over the normal rate of 5-6 months, property values decline annually.  I emphasize annually because as I have mentioned before, looking at absorption rates too frequently is like getting on the scale every day when you are trying to lose weight!  They tend to fluctuate regularly, so it is important to look at them as they trend in one direction or the other.  Compare today’s absorption rate to the last time I reported it in June.  The theme I continue to notice is that the rates are decreasing in the lower price ranges first!   I believe that the real estate market recovery will be a bottom up trend driven by the first time home buyer. Once again, fueled by the first time home buyer tax credit!

Are you interested in what is available in Basking Ridge – or any of the surrounding areas?   You can search for listings on my website.  As always:  no obligation, just information!

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