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Ertie asked a question on Trulia, he indicated that he felt that Basking Ridge had taken another 10-20% dive in the past year. He requested that Realtors need not reply to the question. I couldn’t resist – I answered the question…as did a handful of other Realtors. I told Ertie that I didn’t think we were down that much, I showed him some research I had done for a potential client: A client who had purhcased his home in 2005 for a lot of money and wanted to put it on the market now and not lose anything. I found six houses (between $900,000 and $1,500,000) that sold in 2005 and again in 2009 or 2010. I did the math – based on the closed sale prices – and I found that the average decrease in sale price was 10%. Ertie came back to Trulia to read our answers and still disputed our position – turns out he was basing his conclusion on LIST PRICE, not sale price. List price is not a reflection of market value – it is a reflection of what a seller believes his house is worth, most likely leaving room for negotiation. Market value cannot be determined with both a buyer and a seller… so, to further prove my point – because it keeps coming up again and again – I did some more reasearch. I opened up the price range and searched for sale house sales. I found 23 homes that sold in 2005 and again in the last 12 months. The average change in closed sale price was only 13%.
Yes, Ertie, values are down in Basking Ridge – but not 10 or 20% every year. And there is nothing wrong with a price adjustment! In fact, if your home isn’t selling (and it shows well), you SHOULD adjust the price. As evidenced each month on the page of my website where I track closed sales – Basking Ridge averages 96-97% of list price. And when a home hits the “right price”, it will sell within 30 days (I know, I’ve done the research!).
I really don’t want to go too far astray from Basking Ridge specific information, but I thought this top 10 list would give you something to think about if you are considering a move into or out of Basking Ridge and don’t know whether to buy or rent. I’ve been spending a LOT of time recently trying to find a tenant for one of my favorite customers, he might rather I not talk about this today… but it looks like we may have a lease signed today or tomorrow so I’m in the clear!
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Get a good deal – Prices have come down, and affordability is close to an all time high.
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Mortgages are cheap – Rates are at 50-year lows.
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Save on taxes – Homeowners can deduct the mortgage interest and real estate taxes from their income taxes, and get a tax break on any capital gains when they sell.
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You own it – Owners have options over renters. Choosing paint colors, moving walls, planting a garden, etc.
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You’ll get a better home – It can sometimes be difficult to find a good rental. Generally speaking, consumers who want the best home in the best neighborhood are better off buying.
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It offers some inflation protection – Studies have shown that over the long term, housing has tended to beat inflation by a couple of percentage points a year.
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It’s risk capital – Having equity in a home links part of your portfolio to the long-term growth of the economy without having to manage separate investments.
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It’s forced savings – Even if renting a home is less expensive than purchasing, most people won’t save the difference.
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There is a lot to choose from – That means great choice, as well as great prices.
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Sooner or later, the market will clear – Demand and supply will meet, and we will be back to a normal market.
Search for condos and townhouses or single family homes on my Basking Ridge website.
There were three closed sales and three contract sales in Basking Ridge this week:
Closed sales included:
23 Arbor Circle, The Cedars $475,000/$475,000
25 Georgetown Court, Patriot Mews $749,900/$720,000
14 Old Coach Road, Liberty Corner $1,049,999/$999,999
Contract sales included one town house in The Cedars which had been listed for $280,000, one bi-level in the Cedar Hill school section which had been listed for $649,900 and one colonial in the Mt. Airy Estates section which had been listed for $825,000.
There were five new listings – four of which are townhouses or condos in Spring Ridge (2), The Ridge and Hamilton Crest. The other is a single family home in the Oak Street school section which is a ranch listed for $429,000.
Inventory levels in Basking Ridge have climbed up over 9 months – this is one of the biggest jumps we’ve had in a while. We had been hovering between 5 and 6 months. I’m not concerned… yet.
Contact me directly for information on any of these properties or transactions, I’m happy to help. I’ve been on several listing appointments since the beginning of September – some of these considering listing before the end of the year, but some are preparing for spring. I continue to anticipate that Basking Ridge will remain strong in terms of existing home sales – even if prices continue to come down a bit. Price it right and it will sell!
I was having lunch with friends last week and we were talking about how secure our homes were – - that led to a discussion on alarm systems, where keys were hidden, safes and fireproof boxes. I also recently refinanced and ran into an issue with the discharge of a previous loan – had no idea where to find the HUD-1 from that transaction and found that I had held onto dozens of documents and although they were all in one place, they weren’t very organized!
Purchasing a home is undoubtedly one of the largest and most important transactions a person will conduct in their lifetime. Along with a great new home, buyers of real estate are also left with a large stack of papers documenting their purchase. It can be overwhelming if you don’t know what all of these papers are for and which ones are important to keep.The following list details documents that should be saved, preferably in a fire-proof safe. You may also choose to contact your lender or real estate agent for additional information about these items and others.
- HUD-1 Settlement Statement: Itemizes your closing costs and may be necessary to reference when paying income taxes.
- Truth in Lending Statement: Summarizes the details of your mortgage, including the interest rate you are paying.
- Deed: Provides proof that the property has been transferred to your ownership.
- Insurance Policy: Serves as proof of coverage and is good to have on hand should you need to make a claim.
For more information about what to expect at closing or to start the search for your next home in or around Basking Ridge (or anywhere in NJ for that matter!), visit my website and I will help you get started.
This new to me listing was just reduced to $312,000! It will be hosted open Saturday, 1:00-4:00 and on Sunday, 1:00-5:00. Check out www.41WoodwardLane.com for more information.
Now that Ridge High is NUMBER TWO in the state (according to Newsweek Magazine) – how can you not want to move here? Visit my website for more information on Basking Ridge Real Estate.
There have been eight closings in Basking Ridge so far this September:
79 Smithfield Court (Spring Ridge) $230,000/$220,000
330 English Place (Society Hill) $239,900/$235,000
259 Penns Way (SOciety Hill) $309,000/$300,000
96 Dorchester Drive (Hamilton Woods) $539,000/$530,000
63 Lurline Drive $580,000/$550,000
176 Lake Road $799,000/$750,000
46 E Craig Street $935,000/877,000
45 Jeffrey Court (Prince Edward Point) $995,000/$950,000
There were 32 contract sales in August, so I anticipate lots more closings between now and the end of October! I’m actually pretty impressed that we had so many sales in August – it’s typically slow. I’m attributing it to low interest rates. It’s best to act now!
We’ve been busy here in Basking Ridge this week! I am happy to announce the following information:
36 Kensington Road has adjusted from $895,000 to $875,000! And they have painted the living room a nice neutral color – brightening things up a bit. If you considered this property once before and decided against it, you might want to come back. It will be hosted open on Sunday from 1:00-5:00.
58 Dyckman Place is a great house in a close-to-town location listed for $834,500. Four bedrooms, two and a half baths, updated and expanded kitchen/family room. The sellers have stripped wall paper and pulled up carpets – the basement was recently re-finished and the master bathroom has been updated. It will also be hosted open on Sunday from 1:00-5:00.
210 Irving Place is a first level condo in Society Hill. Two bedrooms, two bathrooms for $259,000. A great location close to the pool and the playground. Laminate floors, newer furnace and central air; six panel doors, updated appliances. A great first time home buyer opportunity – especially with interest rates so low! This home will also be hosted open on Sunday from 1:00-4:00.
There were only three sales here in town this week – one at just under $400,000, one at just under $600,000 and one at just over $1,500,000 – all price points represented! With 186 active listings and 26 contract sales in the last 30 days, Basking Ridge is currently at a 7.15 month absorption rate. This is higher than it’s been in quite some time - but is not unexpected given the time of year.
If you are considering a move into or out of Basking Ridge or Bedminster, or anywhere in the surrounding areas, please start with a search of available properties and contact me with any questions you may have. If you prefer townhomes, check here.
Most importantly, have a great weekend!
Celebrating 100 Years of Service
The Liberty Corner Fire Company will celebrate its 100th Anniversary with a Celebration featuring a FIREMEN’S PARADE & FAMILY CARNIVAL on September 25th 2010.
The Parade will start at 11 am and proceed down Church Street to the Liberty Corner Firemen’s Field.
A Family Carnival held at the Firemen’s Field on Church Street will start at Noon following the parade.
Join the Fire Company for Food, Fun, Amusement Rides and Live Music!
The members of Liberty Corner Fire company are looking for any past members interested in marching in the parade on the 25th. Feel free to contact me and I will put you in touch with the right people.
For more information on the 100th contact me and I will get you what you need.
Fear not my loyal fans! I’m back from my summer hiatus and I am ready to go! I listed 21 Irving Place this morning; a two bedroom, two bath first floor condo with many terrific updates. We will be hosting an open house soon - not this weekend, but I will post the date as soon as it’s scheduled. I’m off this evening to another listing appointment – hopefully will be listing that terrific home as well!
I am honestly very happy to be back!
