Archive for November, 2009

I am working on a market analysis for a listing appointment scheduled for Wednesday night.  The property is a lovely expanded bi-level with over 3000 square feet of living space.  Updated bathrooms and a kitchen with a very recent face lift – I am looking forward to getting it on the market!  Here is some of the analysis I have done so far.

Bernardsville, NJ Market Snapshot

5 properties under contract since 10/30/2009 

88 properties available (as of 11/30)

Overall Market Absorption: 17.6 months

Adjusted Market Absorption: eliminating luxury properties (over $1M): 39 available, 5 under contract = 7.8 months of inventory – not such a bad outlook.

What’s available? 

• 15% of the inventory is listed under $500,000 (13/3=4.3 months)
• 30% of the inventory is listed between $500,000 and $1,000,000 (27/2=13.5 months)
• 55% of the inventory is listed over $1M (can’t calculate)

Properties Comparable to this new listing: 

Sold:

Stay tuned for more information about the property and it’s list price!!

11/21/2009 – 11/27/2009

I am back from a long weekend spent with family; hoping that my readers have enjoyed their long weekend as much as I did!  I think that most buyers were also spending time with family – as there were only TWO sales last week here in Basking Ridge.

There are an additional 12 properties that are working through attorney review which means they have accepted offers and lawyers are working through the contract details. I guess not everyone was only thinking Turkey last week!

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

As of this evening there a total of 155 listings showing active in Basking Ridge in the MLS. With 19 going under contract in the last 30 days, Basking Ridge market absorption is 8.2 months.  Again, a normal fluctuation.

Visit my Basking Ridge website to search homes for sale in Basking Ridge and surrounding areas.

If you are thinking of moving, I can provide a free market analysis of your home’s value  in today’s market.

Just like there are many types of buyers — from investors to first timers — there are also many different types of homes available for purchase. Certain buyers choose a multi-family home so they can earn income renting out the second unit or if they want to live close to a relative, but not share a living space.

Because the law states that a buyer must use their new home as a principal residence in order to claim the tax credit, those considering a two-family dwelling may wonder if they are eligible. According to the Internal Revenue Service, these buyers may qualify for the tax credit for the unit they use as their principal residence, but cannot claim the credit based on the full purchase price.

To figure out the amount of the tax credit that can be claimed, a buyer must divide the purchase price of the home between the two units. The allowable tax credit would then be 10 percent of the portion of the total purchase price that was allocated to the unit used as a principal residence by the buyer. The maximum credit amounts of $8,000 for first-time buyers and $6,500 for repeat buyers still apply.

Click here for more information about the tax credit.  Or contact me directly for additional questions.

11/14/2009 – 11/20/2009

Six properties went under contract this past week in Basking Ridge.

There are an additional 8 properties that are working through attorney review which means they have accepted offers and lawyers are working through the contract details. Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate site for more information on what has sold by month over the past year.

As of this evening there a total of 161 listings showing active in Basking Ridge in the MLS. With 21 going under contract in the last 30 days, Basking Ridge market absorption is 7.6 months.  A normal fluctuation.

Visit my Basking Ridge website to search homes for sale in Basking Ridge and surrounding areas.

If you are thinking of moving, I can provide a free market analysis of your home’s value  in today’s market.

The website, www.Basking-Ridge-Real-Estate.com is about to see some enhancements!  We are working on adding quarterly reports – graphical representations of sale trends, list to sale price ratios, assessments, etc.  Please comment if there is anything in particular you’d like to see.

Additionally, I will be offering an opportunity for you to receive a Market Snapshot – for your home, or for a property which you might be interested in purchasing.  These market snapshots are easy to read and will be delivered at regular intervals so you can monitor activity in a given neighborhood.  Click here for an example or here to request one of your own!

If you are considering a move, please contact me for information about homes for sale in Basking Ridge, the tax credit, the purchase process – or anything else related to real estate.

I fielded a question today about whether open houses work and if they should be held weekly.  I absolutely believe in open houses! They capture buyers who wouldn’t otherwise see your home – either buyers not yet working with a Realtor, or buyers who have their agents looking for something so specific that they may not recommend your property. A person might walk through your home and call their sister or their best friend to tell them about it. You never know where your buyer may come from, so I think it is important to use every tool possible to get the word out about your house and all it has to offer! 

It is very hard to predict how the foot traffic will be - I’ve hosted open houses with only directional signs and internet advertising and have had ten parties through – I’ve hosted open houses with signs and internet advertising and nobody came.  We blame the weather for good traffic (it’s a nice day, people are out!) and for low traffic (it’s a nice day, people are enjoying it doing other things!).  Rain and snow are detractors for all but the serious shopper – and you DO want those serious buyers to walk through, right?  So why not have an open house on a grey day? 

Bottom line – open houses never hurt, and while they aren’t a silver bullet, they are a great tool! 

Weichert, Realtors reported today that this past weekend was a busy one for consumers excited about the extension and expansion of the homebuyer tax credit.  The number of people attending Weichert Open Houses was up 13% compared to the same weekend in 2008.  In addition, the average number of attendees at each Weichert Open House was 32% greater than last year! This was the 10th straight week where average attendance was better than the prior year!

If you are thinking of putting your Basking Ridge home on the market, let me know, I’m happy to provide a no-obligation market analysis for you.  Just starting your search for your next home?  Click here for information on houses for sale in Basking Ridge.

11/07/2009 – 11/13/2009

Only 2 properties went under contract this past week in Basking Ridge.

There are an additional 10 properties that are working through attorney review which means they have accepted offers and lawyers are working through the contract details.  I think it is interesting that although there were NINE properties in attorney review this time last week – that only two have made it to contract.  I wonder why attorney review is taking so long on some properties.

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

As of this morning there a total of 164 listings showing active in Basking Ridge in the MLS. With 23 going under contract in the last 30 days, Basking Ridge market absorption is 7 months.  A normal fluctuation.

Visit my Basking Ridge website to search homes for sale in Basking Ridge and surrounding areas.

If you are thinking of moving, I can provide a free market analysis of your home’s value  in today’s market.

Now that my Basking Ridge Real Estate blog is 100 posts old (Happy Birthday to me!), I think it’s time to graduate from the plain-vanilla WordPress theme that I grew up with.

Please make some comments!  Let me know what you think of the blog; of the design; of the content!

Thank you!

Jennifer

Don’t hesitate to search Basking Ridge homes for sale while you are at it!

These frequently asked questions have been taken directly from the NAR Government Affairs Division website.

Question: Existing homeowner credit: Must the new house cost more than the old house?

Answer: No; Individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.  So will homeowners who are downsizing.

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.  Will I qualify for the new $6500 credit?

Answer: Yes. The exiting homeowner credit goes into effect for purchases after the date of enactment (when the bill was signed – November 7th, 2009.  There is no reference to the date of contract for the new credit. T he provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first-time homebuyer who was not within the income limits at the time I entered into my contract to purchase on October 30, 2009.  Since the limits have changed, am I eligible for the credit even though I have already closed on my purchase?

Answer: Yes. the new income limitations went into effect as soon as the President signed the bill.  The income limit and other eligibility rules will look to your status as of the date of the purchase. 

Question: I am an eligible existing homeowner.  I have a fair amount of equity in my home.  I have found a home with a non-negotiable price of $825,000.  Will I be able to use any of the $6500 credit?

Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above the $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 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.  Becuase if you lived in the home for mor than 5 consectutive years of the previous 8, you will qualify fo rhte $6500 credit.  For example, say John and his wife bought a home in 2000 and lived there until 2008 when they got a divorce. Whether John has been renting or has 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 consectutive 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 in the last 3 years does not impact eligibility.

Question: I am an eligible first-time 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 was signed, the November 30 date disappeared.  SO, as long as the contract settles before June 30, 2010, the purchaser will be eligible for the credit.

If you have other questions that aren’t covered here, please, by all means, call me at 908-432-0318 or email me at jennifer@jenniferblanchard.com.  All inquiries are confidential!

If you are ready to start looking, click here for information on homes for sale in and around Basking Ridge, NJ.

I had to update this post to acknowledge and celebrate the fact that it is the ONE HUNDREDTH post for the blog at www.Basking-Ridge-Real-Estate.com!!!

10/31/2009 – 11/06/2009

6 properties went under contract this past week in Basking Ridge (twice as many as last week!)

There are an additional 9 properties that are working through attorney review (all under $650,000) which means they have accepted offers and lawyers are working through the contract details. 

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

As of this morning there a total of 171 listings showing active in Basking Ridge in the MLS. With 34 going under contract in the last 30 days, Basking Ridge market absorption is 5 months.  The absorption rate has been decreasing quite steadily; I have to attribute this to listings expiring or coming off the market for the holidays as much as I can say it’s because there are buyers out there.  There ARE buyers out there – between 30 and 36 on a rolling 30 day basis – but there are also many listings that are simply coming off the market. I am SURE we will see a surge of “new” listings after the first of the year.  Some of these will be new to the market and some will be returning to the market after not selling this past 6-12 months.  Pricing is going to be key for these properties.

A note to sellers who are considering waiting until after the new year:  The first time home buyer tax credit was extended AND it’s been expanded to include repeat buyers so if you list now, you may capture people moving up from a condo or a townhouse into your single family home.  Buyers have to be under contract by April 30th to qualify. I do not think the winter market is going to slow down. If you wait until March you will miss anyone looking to capitalize on the credit.  Just something to think about!

Visit my Basking Ridge website to search homes for sale in Basking Ridge and surrounding areas.

If you are thinking of moving, I can provide a free market analysis of your home’s value  in today’s market.