Archive for the ‘General Real Estate Information’ Category

Yes, 2010 tax assessments have been published. And yes, they are lower than they were last year.  Mine dropped almost 7%.  But this does not mean that all listings currently on the market are overpriced! (okay, I will admit that there are probably lots of listings on the market that are overpriced, but that’s not because of the 2010 tax assessments and we can talk about that later.)

Tax assessments in Basking Ridge follow the market – NOT the other way around.  I wrote about this in June and I do often analyze sale price to tax assessment when working with buyers and sellers – either to set a list price or to make an offer.  But – we only have past data to look at.  We KNOW how properties are selling relative to 2008 and 2009 taxes, we do not know yet how properties will sell relative to these new 2010 tax assessments.  I have told all of my current seller clients that my pricing recommendations will not change just because we got our new green tax cards.  And to any potential buyer who brings up the new assessment, my counter offer will be this: “we cannot base a current sale price on the new 2010 tax assessments, we can only look at what we know – which is relative to 2009 tax information, not 2010.” 

Another angle – Jeffery Otteau, at his last seminar, stated that prices have dropped approximately 4% this past year.  My tax assessment dropped 7%.  There’s a 3% discrepency there – why would I base a negotiation on the lower number?  I’d rather base it on recent comparable sales.

Visit Basking Ridge Real Estate for information on the value of your Basking Ridge home – relative to current tax assessment or not.

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Ahhh, another snow day here in Basking Ridge.  This time I am letting my kids sit in front of the television!  I will be posting Basking Ridge sales activity shortly, but I also wanted to share some information that I received from my broker.  One of the reasons I like working for Weichert, Realtors is that I feel that the management team does a great job of staying on top of the market – at a level one (or two) higher than I sometimes do.  It is so important for your agent to be clued in to the LOCAL market and sometimes people forget to look at the bigger picture.  Weichert makes it impossible for that to happen to me.

This news release was issued about a week ago.  Buying a Home Offers Many Happy Returns:

Investors who are uneasy with the ups and downs of an unpredictable stock market might be interested in a more reliable, steady option. If history is any indicator, perhaps the best decision those investors can make at the moment would be to purchase a home.

Since the 1940s, home prices have risen an average of 4 percent a year. However, since most buyers only put down a small percentage of the home’s total cost, a buyer who pays 20 percent down still gets to enjoy all of the appreciation. That turns a 4 percent increase in home prices into a 20 percent yield on the money actually invested by the buyer.

“Today’s market gives individuals a chance to enjoy some of the lifestyle perks associated with owning real estate that they might not otherwise be able to afford. This might be the only time they can move to the more prestigious neighborhood, trade up to the larger home or get that cabin by the lake they always wanted,” said Jim Weichert.

Even with real estate’s proven track record of financial returns, perhaps the best reasons to buy now are the personal benefits associated with homeownership that you just can’t get from other investments.

“Many Americans successfully fund their retirement in large part through the equity they earned by owning a home over the years. Why not use that same investment practice for other purposes? Instead of buying mutual funds which are just paper until you cash them out, buy a vacation property that you can enjoy for 10 or 15 years and then sell when it comes time to finance your child’s education. Not only will you have a place to build great family memories, you’ll also see a healthy financial return,” added Weichert.

This press release supports and maybe illustrates my most recent negotiation.  I negotiated a contract yesterday – the property was priced in the low $800,000’s and we offered a very strong bid in the high $700,000’s expecting to negotiate and hoping to end up with a price that would allow my clients to qualify for the tax credit which caps at properties priced over $800,000.  The seller came back with a terrific counter offer but presented it as their bottom line which was higher than my clients had wanted to go.  After much discussion among themselves, they told me that they decided to meet the counter.  Their reasoning:  “it doesn’t make sense for us to be stubborn about $8,000 or $10,000 when we are discussing a property that is going to be our home for many years to come.”  Sometimes, it makes sense to look past the dollars and cents and realize that you are talking about your home.  (Please don’t misunderstand, I am not advocating for spending more than you can afford or for spending more than a property is worth – this example assumes that we are working within the parameters set by your comfort level, your mortgage rep and the appraiser of the subject property.)

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My new article is up at Basking Ridge Patch – check it out!  I think it’s a great time to have your house on the market – buyers are buying, really!!  No need to wait for the snow to melt.  All the factors are in place making it a great time to buy which can only be good for sellers!  Interest rates are low, the government is funding tax credits and right now, in Basking Ridge, inventory isn’t too high.  If you are planning a move, now might be the time to do it!  Contact me and we can review your needs.

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I love Thursday afternoons – it’s the little things that make me happy and one of them is reading the Bernardsville News every week!   This week there was an article announcing free radon kits available to all residents serviced by the Bernards Township Health Department (Chester, Mendham, Long Hill, Bernardsville and Peapack-Gladstone).  This is great information and I couldn’t wait to share it with my blog-friends.  However, there are two fundamental crazy things about this particular article.  The kits are not free, they cost $10.00 and they are only available until the end of January, which means you need to get your kit before 4:00 TOMORROW….. go figure.  Anywho – here’s the information:

January is National Radon Action Month and the Bernards township health department is offering home radon kits during the month January.  If you are interested in having your home tested, visit the health department at 262 South Finley Avenue between 9:00 and 4:00 – through tomorrow. 

Bernards Township Public service announcement over. 

What is radon?  Radon is a colorless, odorless, tasteless radioactive gas that comes from the decay of naturally occuring urnanium in the soil.  It is actually quite common in our area and most buyers test for it during the inspection period of the transaction.  A seller has an obligation to remediate of the results are 4.0 picocuries or greater.  It is actually very easy to remediate.  A pipe is installed in the basement – under the foundation – and snaked above the roofline.  A fan creates a vaccuum that pulls the radon out and disperses it into the air where it is diluted to a point where it is no longer harmful.  For a 3200 square foot house it typically costs about $1100.

If you are considering a move into or out of Basking Ridge, please contact me for a buyer consultation or a market analysis of your current Basking Ridge home.  Visit my site to search Basking Ridge Real homes for sale – whether you are looking for a condo, a single family home or a luxury property.  I’m happy to help!

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You are invited to a free Home Buyer Seminar Saturday, January 23rd at 11:00 in my office at 22 Henry Street in Basking Ridge. I will be there along with other real estate professionals, including my broker, our mortgage representative and a real estate attorney. We’ll address local market conditions and buyer incentives, including the Federal Tax Credit as well as current mortgage products. 

If you want to get ahead of the game, click here to search homes for sale in Basking Ridge as well as all other areas covered by the Garden State MLS.   Space may be limited, so please RSVP today by calling me directly at 908-432-0318 or emailing me at jennifer@jenniferblanchard.com. Please let me know how many will attend and if you have can stay after the seminar or come back on Sunday to get started!

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I love this time of the year in the real estate world!  There are so many more inquiries to field, lots of new listings to preview and this year, there are tons of excited buyers to work with.  I have been hanging out on Trulia – marketing my listings and answering questions on Trulia Voices.  This afternoon, someone posted a question looking for advice about how to choose a house; she admitted that she actually has offers accepted on THREE different houses in three different towns.  The question generated several answers from Realtors across New Jersey – almost all of the responders blasted this person and their real estate agent for making offers on multiple properties.  I would reprint the question here, but the original author has already deleted it!  My response was a little kinder than the others and I got an email a little while ago from Trulia saying that I gave the Best Answer!  Woo Hooo!  Anyway, here is what I said,

“Only you can decide which house is best for you. While getting a “bargain” is a great thing in the short term, don’t lose sight of the fact that this will be your HOME, maybe for years to come. You want to be comfortable there and a difference of a couple of thousand or even $10,000 in the long run really doesn’t compare with being happy with where you are living.  Also, while I agree in principal with the agents who stated that there might be ethical issues with making multiple offers on different houses – I don’t think there are any rules preventing it. Nothing says your realtor is lying – the offers can be presented in such a way as to let the seller know that their house is one of several in which you are interested and that you are hoping to find the best value possible. Not too different from a seller receiving multiple offers and choosing only one. Good luck to you!”

How do you feel about writing offers on multiple properties at the same time?  Please comment – let’s breathe a little life into my blog, I’d love to hear from you!

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While I just posted about sellers who aren’t quite ready to put their houses on the market – I don’t want you to think that I’m not acutally listing properties! 

This wonderfully updated Bernardsville home will be the MLS and available for showings on Monday, January 18th!  Five bedrooms, three full and one half bath, an updated kitchen, hard wood floors, a finished walk-out lower level and  a gorgeous master suite featuring a huge walk in closet, sitting room & terrific bathroom.  I can’t show you the home before Monday, but I can certainly answer questions or make an appointment!

Contact me directly for more information.  Sign up for listing alerts – ask for Bernardsville – and receive the MLS detail sheet as soon as this home gets listed!

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The spring market is here!  My phone has been ringing and my email has been busy!  I am fielding inquiries from both buyers and sellers – going on listing appointments and scheduling showings.  One thing I’ve noticed – year after year – is that buyers are always ready before sellers. 

While I am going on listing appointments, many potential sellers are waiting to put their houses on the market.  But the buyers I am speaking to are more than ready to get in the car and look at what’s on the market!

The home buyer tax credit is definitely fueling some of this activity, but I can’t attribute it all to the credit and I do wonder how much of a drop off we might have come May 1st when that window closes.  But that is more than three months from now! 

If you are considering putting your home on the market and sooner rather than later doesn’t interfere with your other plans or goals, then I would give serious thought to putting the house on the market now.  Before the sellers who are waiting to come on the market increase the inventory on April 1st!

If you are considering a move into or out of Basking Ridge, please contact me for a buyer consultation or a market analysis of your current Basking Ridge home.  Visit my site to search Basking Ridge Real homes for sale – whether you are looking for a condo, a single family home or a luxury property.  I’m happy to help!

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Well, it’s been about three days into the first work week of the year!  I already have one deal out of attorney review, I’ve had a new buyer client out looking (he found me via my website and I’ve gotten two phone calls from Basking Ridge homeowners who are ready to put their homes on the market (look for two new condo listings in the next few weeks)!  It’s going to be a good year!  I really believe that – though I will admit that it is a relative statement…relative to your position in the market – are you buying or selling and what is your motivation?

I do not expect that sale prices are to start climbing.  I don’t think they are going to drop much (if any) though so this might be the time to start getting serious about your Basking Ridge home search!   

If you are thinking of selling, you really need to trust your Realtor® and do your homework when setting your list price and keeping your expectations in check when negotiating.  Of course, I can help with that!  If you are curious about the value of your home, visit Basking Ridge Real Estate to review historic sales data and to request information about the value of your Basking Ridge home.

I hope we can get acquainted soon!  Remember, I always have time for referrals as well; maybe you know somebody who is considering a move.  Though my home base is Basking Ridge, I do lots of business in the surrounding areas (Bedminster, Long Hill, Bernardsville, etc.) and what I don’t cover myself, I can call in my favors!

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January 4, 2010 

The final two weeks of December have not been kind to mortgage rates. Stronger than expected economic data, comments from Fed officials, and a stock market rally all were negative for mortgage markets, and mortgage rates moved higher during the period.

Heading into December, mortgage rates were close to record low levels, but a combination of factors caused them to increase throughout the month. First, an improving economic outlook, which is good news for the country, is negative for mortgage markets because it generally leads to higher inflation. Second, the government already will need to issue an enormous amount of debt to pay for its spending, and it now looks more likely that additional expenditures are on the way for job creation and health care bills. Higher yields are required to attract investors to purchase the extra debt, pushing up yields for competing investments such as mortgage-backed securities (MBS). Finally, the Fed is winding down its $1.25 trillion MBS purchase program, reducing demand for mortgage investments.

With mortgage rates that are still historically low, high levels of affordability, and the homebuyer tax credit, the housing sector outlook for 2010 is for improvement from 2009. According to projections from the Mortgage Bankers Association (MBA), sales of existing homes are expected to increase by more than 10% next year. In addition, housing starts will rebound sharply from extremely low levels, and median home prices will move a little higher. Forecasts from the National Association of Realtors (NAR) and from Fannie Mae are generally consistent with the outlook from the MBA.

The biggest economic event next week will be the important Employment report on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before the employment data, the ISM manufacturing index will be released on Monday. Pending Home Sales, a leading indicator for the housing market, will come out on Tuesday. ISM Services and the minutes from the December 16 Fed meeting will be released on Wednesday. Construction Spending and Factory Orders will round out the schedule. In addition, the Treasury will announce the size of upcoming auctions on Thursday.

Copyright @ 2010 MBSQuoteline

At the date of this printing all information is deemed reliable but not guaranteed.  This publication is a service to our clients and friends.  It is designed only to give general information on the topics actually covered.  It is not intended to replace tax, legal or financial advice, for which you are encouraged to seek a competent professional advisor. 

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