The good news for cost-conscious homeowners is that investing in your home in a way that pays off at resale doesn’t have to cost a lot. The high value of most replacements can be contributed to the relatively low cost of these projects. What’s more, the majority of replacement projects immediately improve curb appeal, making the home more attractive to buyers.

Based on interviews with real estate professionals throughout the country, the Remodeling report found that the top project is fiber-cement siding, which typically recoups 78 percent of costs. Fiber-cement siding has been in the No.1 spot for six of the seven years since it was added to the report.

Moving up two spots in the rankings is the minor kitchen remodel, now coming in at fourth place at 72 percent. Considered an “interior replacement” project, this is the least expensive way to give an existing kitchen a complete facelift. It is typically done by adding new cabinet door and drawer fronts and hardware, new countertops and new appliances.

The right remodeling project, when done well, also has the potential to make for a quicker sale and reduce negotiations with buyers over perceived shortcomings.  I have highlighted this sentence because I think it is very important to point out that renovations and repairs may NOT directly increase the sale price but rather will have an impact on time on market and quality of the negotiation.

If you are thinking of perhaps putting your house on the market, please feel free to give us a call, and we would be happy to meet with you and answer any questions you might have about getting your house or townhouse ready to sell. Also, feel free to go to our Basking-Ridge-Real-Estate website for more valuable information about buying and selling in Basking Ridge.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

Total housing inventory at the end of December dropped 9.2 percent to a 6.2-month supply at the current sales pace. Available inventory has trended down since setting a record in July 2007, and is at the lowest level since March 2005.

“The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future,” Yun said.

Regionally, existing-home sales in the Northeast jumped 10.7 percent in December and are 3.3 percent above a year ago.

I did  a quick comparison of December sales in Basking Ridge each year since I started selling Real estate (2002 through 2011) according to the MLS:

Year/Sales

2002/26
2003/26
2004/25
2005/28
2006/27
2007/14
2008/15
2009/22
2010/16
2011/29

Sales in Basking Ridge in December, 2011 were way up over December 2009.  I’m not sure what this data tells us – but it’s kind of interesting to look at.  This sort of post always makes me think about the fact that sometimes we need to reconsider why we are buying real estate… everyone needs a place to live.  Real estate as an investment is only one way to look at things.  To own real estate as a way to have a vested interest in your own home is another.  Something to think about….

If you are looking to buy or sell in Basking Ridge, check out Basking Ridge Real Estate today!

Submit questions here, I will do my best to answer them here on the blog or via email.

Q. How do I go about buying a foreclosure?

A. Realtors often only have access to foreclosures once they have been fully foreclosed and are owned by the bank. These are actually easy sales – they are listed in the MLS, they are typically offered at or under market value and you have an opportunity to inspect them (though you won’t get much from the seller in way of repairs, these are typically as-is sales).

You can also buy a foreclosure at auction – this is a little trickier – you have to watch the sheriff sale website or the newspaper for the schedule, often you have to bid without seeing the property, you may have to assume a lien (tax or otherwise), and you need to have 10% in cash on the day of the auction (or something similar … I have only been to one sheriff sale and it was more of an informational experience than anything else…) You wouldn’t need a Realtor for this type of purchase except maybe to act as an advisor or consultant.

Another option is to purchase a short sale. If you have the time to wait around for an approval these can be really good deals. They can be a real pain in the tush to get through, but as I said, they are often a really good deal.

Foreclosures and short sales are often in poor condition – the owners didn’t have money to pay the mortgage, they weren’t paying for repairs or upkeep either – again, if you can get a deal, that may not matter.

Let’s consider this too: in spite of the economy and the nose-dive the real estate industry took over the last five or six years, I still believe it’s a good long  term investment.  There are some really good deals out there that aren’t short sales or foreclosures.  You can get a two bedroom two bath condo with garage and basement for around $225,000 in Basking Ridge.  Search here for all available townhouses and condos in Basking Ridge, or here to see single family homes for sale in Basking Ridge.

Is this for an investment? You need to do the math – to see if it makes sense – knowing what you can get for rent, what the mortgage payment would be, maintenance… etc. And the fact that you’d be a land-lord, you’d want it to be conveniently located. There is a lot to think about.

Basking Ridge absorption rate is 6.2 months – there are only 132 properties available.  In my network – both socially and professionally, I know of at least six homes getting ready to list…  I’m hopeful that this will be a great selling season for both buyers and sellers!

Surrounding areas:

In Bedminster there were three closings this week: 77 Sage Court, a condo in the Mayfield section, closed for $189,000; 19 Eton Court a townhouse in Stone Run II sold for $363,500 (Judi and I sold this one!), 200 Old Farm Road a cape cod off of Lamington Road sold OVER ASKING for $801,000.   Absorption rate in Bedminster is just under seven months – with 83 properties available, 25 under $300,000, and interest rates under 4%, it’s a great time to buy!

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It is always recommend that a buyer test for this gas during their home inspection.  If the levels of Radon are greater than 4.0 picocuries the seller of the house has an obligation to remediate.

The remediation process involves installing a fan in the attic that is attached to a pipe that pulls air from below the foundation and sends it out over the roof-line.  These systems are essentially fool-proof and bring the levels in to acceptable range – I’ve never seen that not happen.

Once the levels are down, the risks are gone!

On a lighter note – the headline on the article in the Bernardsville News says, “Radon KIDS available in Bernards”.  I just thought that was funny.  Especially because the last time they ran this article was in 2010 and they didn’t get it right then either!  ”Free Radon Kits available in Basking Ridge”

Have any questions about the real estate transaction process?  I am happy to help, click here to contact me directly.

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Basking Ridge Real Estate – Questions and Answers

Submit questions here, I will do my best to answer them here on the blog or via email.

Q. If my house is listed with a realtor and someone calls me directly and I show them the house and they make an offer, do I have to pay the commission?

A. The short answer is Yes.  Probably not what you want to hear, but it’s in the listing agreement.  Paragraph 2 of the listing agreement used by all brokers listing in the Garden State MLS states the following: “GRANT OF EXCLUSIVE RIGHT TO SELL, LEASE, EXCHANGE OR OTHERWISE TRANSFER AND TO MULTIPLE LIST PROPERTY. In consideration of the Listing Broker listing and endeavoring to find Buyers/Tenants for the Property at the Listing Price, the OWNER, (or their legally authorized representative) grants the Listing Broker the exclusive right to sell, lease, exchange or otherwise transfer the Property, at the Listing Price and on the terms as stated in this Agreement, or upon such other Price and/or terms as may be acceptable to the Owner. The Listing Broker is directed by the Owner to list the Property with the SERVICE and to distribute this listing to Service participants.” 

This basically means that the broker is due a commission regardless of who introducest the property to the buyer.  It is very likely that the buyer knew of the availability of the property due to your agent’s marketing efforts.

The other pertinent paragraph is number 11. “REFERRING INTERESTED BUYERS TO BROKER/NEGOTIATIONS THROUGH LISTING BROKER. The Owner shall refer to the Listing Broker every prospective Buyer/Tenant who contacts the Owner during the term of this Agreement. The Owner directs that all negotiations for the purchase or lease of the Property shall be conducted through the Listing Broker.”  

This really is in your best interest – as a REALTOR® and an unbiased third party, I am less likely to say something that might hurt your negotiation.  Seemingly innocent interactions between a seller and a potential buyer can muddy the waters.  There are some things that are better left unsaid – I’m not talking about hiding material information, I’m referring to things like where you are moving, why you are moving, when you are moving, etc.

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The beginning of a new year is always a time to reflect and consider goals and opportunities for the year ahead. As we begin 2012, there are many reasons for encouragement when it comes to the economy and real estate. If recent economic and real estate trends are any indication, 2012 will be a year when good things can happen not only for potential homebuyers and sellers, but for the country as a whole. For example:

• Existing-home sales rose again in November, and remain at levels above those of a year ago. What’s more, pending home sales also continued to gain in November, reaching the highest level in 19 months, an indication that there will be more future sales.
• In November, sales of new single-family houses rose 1.6 percent from October and were 9.8 percent above November 2010. Additionally, housing starts surged to a one-and-a-half year high in November, and permits for future construction were the highest since March 2010.
• In a sign that the overall economy is strengthening, U.S. employment has grown solidly for the past six months, generating 100,000 jobs or more in each month for the first time since April 2006.
• The Conference Board’s Index of Leading Economic Indicators showed two months of solid gains, signaling that the economy was gaining momentum and the risks of a recession were receding, and its Consumer Confidence Index improved to levels seen in April 2011.

Basking Ridge Market Activity

Two closings so far this year:

• 2 Commonwealth Drive, 2 bedroom Fairfax model in Spring Ridge, listed for $248,000 and sold for $232,500.
• 72 Gerard Avenue, 4 bedroom bi-level, listed for $549,000 and sold for $540,000 in only 36 days.

Eleven new listings – one condo, two townhouses, a bi-level and seven colonials.  Many of these homes were listed last year, came off the market for the holidays and are now back on the market.

There have been five contract sales since the first of the year – actually, only four.  11 Archgate Road was logged into the MLS once it was already under contract (it is scheduled to close at the end of the month).

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Are You Listing Your House To SELL or To SIT?

The most valuable piece of information in this post: “If you don’t grab someone’s attention in the first two weeks, your chances of getting your asking price start to diminish.   Once listed, a house on the market ages quickly.”

This is why I start to talk to my sellers about their list price not being the right price before even 30 days on the market!

It’s the truth – the longer you wait to get the price right, the lower the final sale price will be!  Well said, Sharon!

My opinion is this: If you don’t want to go over $800 then looking up to $850 might be frustrating … Here in Basking Ridge most properties close between 94% and 96% of list price at time of sale. Many properties are not priced right and will sell for less than that – but not necessarily before the seller adjusts the price. As much as we want it to be, it is not a science… by knowing the inventory and using my network, I can help you determine a good offer that takes motivation and market value into account.

The other point that many people – buyers and sellers alike – lost sight of is that an offer should be relative to market value NOT list price.  This is a tough one and sometimes you have to test the market (as a seller) or test the seller (as a buyer).

It’s more art than science…

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Basking Ridge Home Value; Basking Ridge Townhouses for Sale; Basking Ridge Condos for Sale; Basking Ridge Homes for Sale; Contact Jennifer Blanchard; Get Basking Ridge Listing alerts in email