Mike Downer

Central New Jersey Property Values Benefit from Spring Ritual

May 1, 2013 By Mike Downer Leave a Comment

The first day of spring fell on the 20^thof April marking the day many homeowners start planning their ritual seasonal maintenance. Spring is also the traditional launch of the busy season in real estate, when safeguarding Central New Jersey property values can become a less abstract matter.

Because water damage is Public Enemy #1, homeowner checklists should always highlight three points:

First: the Roof

As soon as March’s lion turns a bit more lamb-like, it’s time to get out the ladder to survey roof damage. Leaves, twigs or other storm debris that have clogged gutters during the weather months can allow moisture to penetrate the roofing and below, in the worst case triggering mold or rot. Look for holes or rust in the flashings or metal seals around roof joints, chimneys, skylights or any other structures that penetrate the roof.

Second: Down Under

Now it’s time to go down. While spring rains are still falling, put fresh batteries in your flashlight and head to the furthest reaches of basement or underneath the house to check for puddles. Even when it’s raining outside, the your home’s foundation should remain dry. When it comes time to sell, Central New Jersey homes’ property values are seriously affected by water damage, some of which might not appear upstairs until later. If you see signs of trouble, it’s time to call an expert.

Third: the Exit Routes

That is— the drains. Backed-up plumbing is a nuisance you can avoid if you clean all the drains two or three times a year. Don’t forget the garbage disposal, either. My trick is to pour in equal parts salt, baking soda and vinegar, followed 30 seconds later by two quarts of boiling water. Then give the mixture a chance to work overnight before running water again.

With the sales market poised for spring action, the protection careful homeowners have given to their own property values will make a material difference. But you don’t have to be selling your home for this time of year to trigger the maintenance efforts your property may need. Got a property-related question? Give us a call!

The DoorPath Team is the most comprehensive online source for Central New Jersey real estate information and services. Whether you are looking for the latest sales, trends or homes for sale in Somerset, Middlesex, Union or Hunterdon Counties in New Jersey, The DoorPath Team at Coldwell Banker Residential Brokerage has it all at your fingertips. Browse information regarding short sales, foreclosures, new construction, investment property, land sales or commercial locations throughout Central New Jersey plus much more at www.DoorPath.com or call Elizabeth “Liz” Brain at 848-448-3132 or Michael “Mike” Downer at 732-302-1771.

Filed Under: Home Maintenance Tagged With: Central New Jersey, Coldwell Banker, Doorpath Team, Elizabeth “Liz” Brain, foreclosures, home maintenance, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, new construction, short sales, Somerset County, Spring Cleaning

Some Bridgewater Listings Should Trigger an Audit!

April 30, 2013 By Mike Downer Leave a Comment

…an energy audit, that is. That’s a lot more than a piece of tax-time humor – it’s a growing trend that rising energy costs have made ever more practical.

A survey by Fannie Mae found that the cost of heating, cooling, and hot water is now the highest single cost of homeownership, second only to the cost of the loan on the property. When buyers are prowling through the Central New Jersey listings this season, the more savvy among them are beginning to look for a HERS number: its Home Energy Rating System audit score.

HERS was developed by the Residential Energy Services Network (RESNET). This score represents the foremost nationally recognized system for calculating energy efficiency. Even if a formal HERS audit hasn’t been conducted (local listings feature those that have), knowing how they calculate their findings gives buyers and sellers a conceptual basis for comparing prospective Central New Jersey property purchases. Items inspected include:

Building envelope features (windows, doors, insulation, ducts) and ages
Heating, cooling and ventilation equipment types, characteristics and ages
Appliance and lighting characteristics
Comfort complaints
Visible moisture issues
Visible health and safety issues

When a full HERS Index is calculated, the lower the score, the greater the home’s energy efficiency. According to RESNET, more than 1,100,000 homes now have a HERS score — including 40% of all new homes. It’s why more and more existing homeowners find that including a HERS score in their Central New Jersey listings adds a powerful competitive selling point.

Contact us if you would like help preparing a marketing package. It could one that features your own HERS score: if your home is energy efficient, that’s one audit we’ll want to volunteer for!

Filed Under: Uncategorized Tagged With: Central New Jersey, Coldwell Banker, Doorpath Team, Elizabeth “Liz” Brain, Fannie Mae, foreclosures, HERS audit, HERS score, Home Energy Rating System, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, new construction, Residential Energy Services Network, short sales, Somerset County

Central New Jersey Investment Properties Offer Long Term Potential

April 29, 2013 By Mike Downer Leave a Comment

Never mind what those TV get-rich-quick infomercials would have us believe: building long-term wealth requires focus and patience. Patience, because a steady growth is a more reliable strategy than flashier single investment ‘wins’ — and focus, because opportunities slip past when daily demands soak up all our attention.

For financially secure individuals, current real estate trends deserve some attention. Right now we have an environment that may be unique in our lifetimes — one that calls for seriously considering the long-term potential investment properties offer. If you agree that investment properties in Central New Jersey are worth investigating further, you will discover multiple financing alternatives:

Finding a mortgage for Central New Jersey investment properties is the choice most people think of first. However, since the lending market is still in recovery mode, it may be a while before most down payment requirements drop below 20%-30%
By setting up a self-directed IRA, you may be able to make investments through your existing savings. Such investments come out of your IRA, and the profits generated remain there and grow tax-free until you retire. There are limitations to this method of financing: don’t rely on this route until you have sought the advice of a qualified financial advisor or your tax attorney.
For anyone 62 or older, an idea that is not often considered is the reverse mortgage. The object is to allow you to access equity from the property you currently own without having to sell it. Unlike a regular mortgage, the equity released need not be repaid until the mortgaged property is sold or the borrower dies; but it may be repaid with the interest accrued without penalty at any time.

To be sure this or any of the other financing paths work to your advantage, you’ll need a sharp pencil — and guidance from a reliable licensed financial counselor. If you’ve already been thinking that the time is right to start or grow your investment portfolio through the purchase of real estate, contact us for hot leads on some of today’s best investment properties in Central New Jersey.

Filed Under: Buyers Resources, Finance, Investment Property Tagged With: accrued interest, Central New Jersey, Coldwell Banker, Doorpath Team, Elizabeth “Liz” Brain, foreclosures, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, new construction, Reverse Mortgage, Self Directed IRA, short sales, Somerset County

Central New Jersey Mortgage Snoozers Could Be Losers!

April 19, 2013 By Mike Downer Leave a Comment

Your mortgage: you only think about it once a month (if you’re on autopay, maybe not even that often). Why worry about it? If it ain’t broke, don’t fix it, right?

Wrong!

Like all aspects of your big-picture financial planning, keeping an eye on that mortgage can be an extra wealth-building move. We can point to three reasons why re-evaluating your Central New Jersey mortgage could pay dividends:

Down, Down, Down…

Ok, with interest rates continually making headlines, this one might be a no-brainer. But some folks don’t realize just how attainable significant savings may be: a drop of just a single percentage point in the local mortgage rate can make a gigantic difference. A general rule of thumb is that if you can lower your interest rate by a percent or more, it usually makes sense to refinance. It’s certainly worth looking into.

Pay More Sooner (Build Wealth Quicker)

Nobody wants to part with more hard-earned cash than necessary, but extra money out now can wind up saving a lot of greenbacks later. Making just one extra payment a year will have you owning your home free and clear sooner – whereupon those payment dollars become yours!

Sound too painful? It needn’t. See if you can set up bi-weekly payments of half your monthly mortgage amount. You’ll be making 26 payments annually: the equivalent of 13 monthly payments! Confirm with your lender that the extra payments go toward principal.

Eye That Equity

If you’ve got a PMI payment, you know that extra insurance doesn’t come cheap. So why make the extra payment a single month longer than necessary? By law, your lender is required to stop charging you PMI after you accrue 22% equity in your home. But in many cases, once you hit 20% equity, simply writing a letter to your lender will prompt them to allow you to stop paying PMI then and there.

For most of us, our home in Central New Jersey is one of the largest investments we’ll ever make. Got a real estate question? We are here all the time to supply you with friendly help and advice!

Filed Under: Finance, Sellers Resources Tagged With: autopay, Central New Jersey, Coldwell Banker, Doorpath Team, Elizabeth “Liz” Brain, foreclosures, home mortgage, Hunterdon County, interest rates, investment property, land sales, loan modification, Michael Downer, Middlesex County, mortgage refinancing, new construction, PMI, short sales, Somerset County

Part 2: What First Time Central New Jersey Homebuyers Aren’t Told

April 16, 2013 By Mike Downer Leave a Comment

Of all the things first time homebuyers in Central New Jersey are told, some that turn out to be pretty important are too often overlooked. Here are four items first time homebuyers will find useful to know:

4. Remodeling costs more than you think

You’ve found a fixer: your energy is to be applauded. But before you write that offer, if you are one of our Central New Jersey first-time homebuyers, be certain to have penciled out the bottom line cost of bringing the home up to the standard you require to be move-in ready. You may well be able to live with some items that you will fix over time, but in all areas, budget 20% more than your estimate.

5. What matters is what the bank’s appraiser thinks the house is worth

Getting a loan approved isn’t as simple as having great credit and a down payment. Your offer also has to pass the bank’s approval process before they will okay the loan.

6. Getting inspected doesn’t mean there won’t be problems

Should you skip the inspection process? Absolutely not. You need to know if the home is structurally sound. But owning a home involves continuing expenses — and problems can pop up even on Day One of ownership. Make sure you have funds set aside.

7. Buying your first house can be stressful…really stressful!

One of the absolute best pieces of advice we can give is to relax — expect the unexpected! Buying your first house is scary only if you allow it to be. Since it is all but certain that there will be ups and downs, allow the possibility that may not get any particular house. Veteran homebuyers come to understand the cost of overly emotional involvement — when you do, too, you will be better able to roll with the punches…and to make financially sound decisions.

If you missed the first three items in our list, check back to Part 1 – or just call us! We’ll fill you in on everything Central New Jersey first time homebuyers need to know.

Filed Under: Buyers Resources, Central NJ Property Information, Home Improvement Tagged With: bank appraisal, Central New Jersey, Coldwell Banker, Doorpath Team, Elizabeth “Liz” Brain, First Time Buyer, foreclosures, home inspection, home remodeling, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, new construction, short sales, Somerset County

Part 1: What First Time Central New Jersey Homebuyers Aren’t Told

April 15, 2013 By Mike Downer Leave a Comment

First time homebuyers in Central New Jersey are told a lot of things —

“Save your money,” their parents advise.

“Location, location, location!” their friend’s friend cautions.

Reasonable advice, for certain. But there some important elements of the home buying process which a typical Central New Jersey first time homebuyer doesn’t usually hear. We’ve listed some of the most important ones, in no particular order:

1. Mortgage rates you see advertised aren’t usually what you get

The banner ads are everywhere online: “3.2% rates!” “No money down!” But the truth is, mortgage rates vary greatly. The only way you’ll know what rates you actually qualify for is to go through a complete mortgage application including credit pulls and income verification. One more point to consider: online mortgage calculators, while handy, can be deceptive if you do not factor in the real cost of tax, insurance and PMI when you’re looking at an FHA-loan.

2. Every Tiny Bit of Debt Counts

Think that $1400 left on your Visa isn’t going to matter? Think again. Every iota of debt weighs in when your credit is scored. What many Central New Jersey first time homebuyers aren’t told is that when you apply for a mortgage, nearly every element of your financial history is going to be analyzed with a fine-toothed comb. All debt will be factored in as the bank figures out how much it is willing to lend. Standards have stiffened, so the earlier you dispose of even small issues, the better.

3. Your Choice of Agent Makes All the Difference

Let me guess: your friend’s friend also has an agent to recommend (she carpools with his sister’s next door neighbor). There’s no reason you shouldn’t interview her: maybe that’s the right fit for you. But don’t just sign up with the first agent you find: this is a working relationship that can shape your family’s future. Your agent’s connections, experience, and market knowledge will be key — and can well make the difference between your writing an offer that gets accepted or not.

(Coming Next: Another 4!)

Filed Under: Buyers Resources, Central NJ Property Information, Finance Tagged With: Central New Jersey, Coldwell Banker, credit pulls, Doorpath Team, Elizabeth “Liz” Brain, FHA Loan, First Time Home Buyer, foreclosures, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, mortgage calculator, mortgage rates, new construction, no money down, short sales, Somerset County

The Most Important Part of Curb Appeal

April 14, 2013 By Mike Downer Leave a Comment

“Curb appeal” is an instantly understandable byword: one every home seller hears. You can see for yourself how Central New Jersey property listings that feature sparkling exterior shots with superior ‘curb appeal’ instantly draw your attention — and often, higher offers.

Hearing the phrase makes you picture potential buyers standing at the curb, viewing your property. Yet the most important part of ‘curb appeal’ is the second word, not the first. “Appeal” should be an active concept: one that’s about reaching out, roping potential buyers in. Successful sellers create appeal by making every part of a home’s presentation — from its debut in the Central New Jersey property listings to final inspection and closing — as actively appealing as possible. It’s a frame of mind that brings results.

“Nice idea,” you might be thinking; “but how do I put it into action?”

Try viewing today’s Bridgewater property listings from a buyer’s perspective: notice how a mish-mosh of dark or bright colors can make rooms look detached from one another. A home’s ‘flow’ is important, but you can’t see that from the property listings. But you can work to neutralize your home’s color scheme. When your selection of wall colors makes a coherent whole, your home looks like an appealing place instead of a collection of disjointed rooms.

It won’t matter how well your home fares in the local property listings if visitors are greeted with strong pet or any other blend of objectionable odors. Strong cooking aromas are right up there with cigarette smells to top off the quickest turnoffs to prospective buyers. In doubt? Ask a friend for their honest opinion.

A clean, clutter-free home adds appeal to any property, and is especially beneficial for those with smaller rooms. A Saturday spent cleaning out the house and boxing up as many superfluous items as possible is guaranteed to pay off.

You can’t appeal to everyone — and you don’t need to. But you can set the stage for success.

Filed Under: Home Improvement, Home Maintenance, Sellers Resources Tagged With: Central New Jersey, Coldwell Banker, curb appeal, Doorpath Team, Elizabeth “Liz” Brain, foreclosures, Home Staging, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, new construction, short sales, Somerset County

Will Prices on Central New Jersey Homes for Sale Match 9.7% Rise?

April 1, 2013 By Mike Downer Leave a Comment

When real estate occupies most of your day (as it certainly does ours), you find yourself receiving no end of information. Some summarize points of view that are available elsewhere; some provide original information that isn’t particularly relevant to our local market.

One piece that gets more than the usual quick-scan-then-into-the-recycle-bin treatment is the HPI Data Report. It comes in once each month from the demographers at CoreLogic^®. This group knows what they are talking about: among other things, they collect the most comprehensive property database in the U.S.

Last week was relatively quiet on the news front, so when they checked in, we were able to give their report a thorough going-over. What we found:

Holy smoke! Prices of homes for sale nationwide made the biggest year-over-year increase in seven years!

Yikes! Year-over-year, even including distressed sales, prices of homes for sale jumped by an average 9.7% That’s just a whisker short of double-digits!

Good golly! Those homes for sale price jumps were taking place everywhere — in 49 out of the 51 states (the only exceptions were Illinois and Delaware).

One more exclamation! (we’ve run out): As if the trend direction isn’t already crystal clear, this represents the 11^th consecutive monthly increase.

As we prepare for Central New Jersey’s spring selling season, it’s noteworthy how much this year promises to be a notch up from even last year’s —already a noticeable improvement.

If you have a property that is a good candidate to join this spring’s complement of homes for sale, now is a good time to give us a call. Rising prices mean that the buyers are out there!

Filed Under: Uncategorized Tagged With: Central New Jersey, Coldwell Banker, CoreLogic, distressed sales, Doorpath Team, Elizabeth “Liz” Brain, foreclosures, HPI data report, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, new construction, short sales, Somerset County

Homeowners Get Surprise Remodel

March 30, 2013 By Mike Downer Leave a Comment

Sometimes home values can undergo abrupt changes. One way that can happen is through the ‘Surprise Remodel’ phenomenon. That’s when you wake up one morning to find that your Central New Jersey house grew larger…overnight!

If you are one of the many Central New Jersey residents whose children have left for school, the Surprise Remodel is what happened the moment you realized that that you were, in fact, suddenly in possession of an extra room.

Sometimes it takes a few months, but as soon as you conclude that the sentimental value of leaving the high school memorabilia in place is outweighed by the value of transforming the room into more useful space, you have a number of ways to proceed:

Workout Area

Transforming the former kid room into an exercise area is one foolproof way local home values can be increased. Remove carpeting and add flooring as needed; place a floor-to-wall mirror to one side; then add any exercise equipment you choose (garage sales can be excellent sources).

Office Space

Have you always wanted a dedicated home office? Now is the ideal time. Paint the room a rich neutral color, add the desk (freeing up space it used to occupy elsewhere), and then add bookshelves and a guest chair or sofa. Voila!

Guest Room

In the likely event the kids will be back now and then, a subtler changeover to a universal guest room is a good answer. Memorabilia removal will go a long way toward accomplishing that goal, and home values always improve when fancier bedding and pillows are added to any room.

Central New Jersey home values may not seem important until you decide to put your own on the market, but I have often heard clients say they wish they had spruced up the place while they were still living there. Any Surprise Remodel moment is a perfect opportunity to do just that.

Later, when the time comes to list, don’t forget to call us!

Filed Under: Home Improvement, Sellers Resources Tagged With: Central New Jersey, Coldwell Banker, Doorpath Team, Elizabeth “Liz” Brain, foreclosures, garage sales, guest room, home remodeling, Hunterdon County, investment property, land sales, loan modification, local home values, memorabilia, Michael Downer, Middlesex County, new construction, office space, remodel, short sales, Somerset County, workout area

A Short Sale Can Aid the Seller, Too

March 29, 2013 By Mike Downer Leave a Comment

A Central New Jersey short sale represents real value for the homebuyer, of course. But to some extent, it is also a boon to the seller. Being able to unload a property that’s underwater helps avoid the most dire credit consequences of a foreclosure.

But lingering credit damage can still result from any short sale — if the short seller allows it to happen. Should you find yourself in the short sale situation, be proactive in protecting your credit score. You will put yourself in a position to re-enter the market sooner than you think if you take action to improve a damaged credit score following a short sale. Here’s how:

Sit down and write out a strategic monthly payment plan for all open credit accounts and loans. It becomes real when you put pencil to paper. If the total is unrealistically large, contact as many lenders as needed and ask to reduce the payment amount. Making on-time payments is how you will build and repair your credit.
Apply for a secured credit card. It is tempting to use only debit or prepaid cards, but this does nothing to rebuild credit. Secure a credit card with a deposit, and then use it to make calculated purchases you know you can repay on time.
Be on time with all rent, medical bills – and every other account. Immediately after a short sale in Bridgewater for instance is the right time to downsize and be frugal — but you need to keep certain accounts — bills, rent, etc. — open. It cannot be overstated: the key is to make all payments consistently on time.

Not everyone escaped unscathed from the recent downturn, but it’s also true that lenders are now a lot more familiar with good prospective borrowers who could not avoid its consequences. Whether you have been through a short sale in Central New Jersey or not, if you are looking to buy a home in Central New Jersey, do give us a call. We’ll put you in touch with our mortgage broker, and we will see how close you are to owning your next home!

Filed Under: Finance, Investment Property, Sellers Resources Tagged With: Central New Jersey, Coldwell Banker, Doorpath Team, Elizabeth “Liz” Brain, foreclosure, foreclosures, Hunterdon County, investment property, land sales, loan modification, Michael Downer, Middlesex County, new construction, short sale, short sales, Somerset County