Luxury Home Listings & Springtime Romance

May 23, 2013 By Leave a Comment
 

Ah, spring is truly in the air…the traditional time when people can fall in love at first sight!

I’ll try not to dampen those springtime spirits too much, but for anyone currently looking into the Central New Jersey luxury home listings, some advice may be in order:

Online love at first sight is a really bad idea.

Those Central New Jersey luxury home listings can indeed be truly alluring, and using your computer (or iPad, or smartphone) to winnow through the current crop of terrific local luxury home listings is a supremely practical approach.

But do remember that any warm glow you experience after checking out a particularly fetching online tour is best held in check until after you have paid an in-person visit. Then the love affair is more likely to be the real thing.

Especially when it comes to the luxury home listings, they have been created by talented professional stagers and photographers (not to mention musicians, when a video is part of the presentation). We work with them to create an immersive online experience, which is all to the good.

The only drawback comes if we do such a good job that Central New Jersey luxury home prospects fall head over heels.  If reality can’t possibly match the romance of their mind’s eye abstraction, well…just ask a teenager’s parents about what the falling out of love experience is like! Until you have contacted me and we’ve made a real life, in-the-flesh house tour, what we are dealing with is — let’s face it — puppy love.

Seasoned buyers know that stunning photos can’t begin to reveal all the details that make for ‘the real thing.’ Does the kitchen fit a family’s cooking style? Is that gorgeous landscaping a good setting for kids and pets? Is the neighbourhood right for a particular family?

If your own home belongs among our eye-catching Central New Jersey luxury home listings, you probably also know that prospective buyers will be genuinely impressed when they visit in person. If that’s the case, I hope you’ll be contacting me soon for a complimentary consultation.

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, luxury home sales, investment property, land sales or commercial locations throughout Central New Jersey plus much more at  www.DoorPath.com or  call Michael “Mike” Downer  at 732-302-1771.

 

 

 

 
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Supply of Central New Jersey Homes for Sale Struggles to Keep Pace

May 22, 2013 By Leave a Comment
 

 

So the market’s recovering, interest rates are low, and you think you’re finally ready to buy a home? Not so fast. Buyers across the country are running into a new roadblock: there don’t seem to be enough homes for sale.

Anyone who has looked at entry- to mid-level homes for sale in Central New Jersey neighborhoods probably knows what I mean. Mortgage rates remain near historic lows, and as the prices of homes for sale continue to rise, fears that we could soon see a repetition of a real estate equity loss seem increasingly unlikely.

Why the lack of inventory? There are several reasons. Buyers may be ready to buy again, but some sellers are still not in a position to offer their homes for sale. When the housing market collapsed seven years ago, some homeowners’ equity loss was such that they remain unable to sell. Prices may be on the rise, but some need more time to return to pre-crash values.

Buyers always want to buy at the bottom, but sellers want to avoid selling there. Buyers are watching that bottom fade into the distance, but some sellers, pleased to watch their homes growing in value, are content to wait longer.

NAR says that there were just 1.93 million existing homes for sale on the national market in March, down nearly 17% from the prior year. In a well-balanced market, what had been a six month’s supply fell to just 4.7 months’ worth.  Nationally, homes for sale now stay on the market for just 62 days, down from a median of 91 days only last year. Glenn Kelman, CEO of an online national real estate brokerage, put it succinctly: “Somebody rang a bell and said the boom is back, and nobody wants to be late to the party.”

Homeowners who have been thinking about selling are increasingly liking what they see in today’s market — including the prospects for trading up. Even those whose previous evaluations were unsatisfactory are finding it worth another look. If you would like to find out what your home is worth today, give me 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 Michael “Mike” Downer  at 732-302-1771.

 

 

 
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Central New Jersey Real Estate Market Balancing Act: Rates vs. Rises

May 21, 2013 By Leave a Comment
 

logoWhen the Wall Street Journal or Forbes run mortgage rate stories as their lead items, those of us who keep an eye on the Central New Jersey real estate market pay close attention. I frequently share what they say here. But when even the non-financial outlets like USA TODAY and the cable TV news channels give top billing to real estate market news, it’s a real attention-grabber.

That’s what happened last week. USA TODAY’s online headline focused on the 15-year fixed mortgage rate, “at a record low 2.61%.” The cable news channels talked about record low rates, too (although if you hit the ‘pause’ button long enough to read the TV graphics, you saw that the national average for 30-year loans was still a shade away from the actual record low).

Never mind that; it’s still surprising that mortgage rates continue to linger at such tempting lows.

The reason is hardly a secret: the Federal Reserve is holding rates down to energize the real estate market — a key element of the overall economy. Yet, with existing home sales notching up in the first quarter at the briskest pace in four years, you would have thought that mortgage rates would have been loosened up at least somewhat. And with new home sales doing their best since 2008…

Of course, it doesn’t matter what anyone expects: the results of dipping mortgage rates is just plain good news for everyone in the Central New Jersey real estate market: buyers and sellers alike. Those low mortgage rates act to offset the rising U.S. house price index. The result for buyers is a more valuable home without the expected increase in the monthly payment. What more of an inducement to enter the real estate market could there be?

In short, if you’re considering whether it’s time to buy (or to sell your current home and trade up without busting the household budget), last week’s national and local market signs are even clearer than they have been recently. There are definitely opportunities out there! Why not give me a call for an up-to-the-moment Central New Jersey real estate market evaluation?

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 Michael “Mike” Downer  at 732-302-1771.

 

 

 

 
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Central New Jersey “Boomerang Buyers” Enter the Picture

May 16, 2013 By Leave a Comment
 

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“Time flies when you’re having a good time” we hear. But time can also pass quickly for those who’ve had to go through difficult times. Case in point is a million and a half borrowers who have recently experienced the pain of a foreclosure. That’s the estimated number of those who, by this time next year, will have waited long enough to again become eligible for an FHA loan.

Anyone interested in buying a Central New Jersey home after a foreclosure has come through a tough period. The standard waiting period for an FHA-guaranteed loan is 3-4 years following a foreclosure or short sale (though individual circumstances vary). Now that the weeks and months have ticked by, this sizable crop of newly eligible prospective ‘boomerang buyers’ may soon find themselves contemplating the option of buying a home after a foreclosure.

That estimate of the size of the newly eligible was provided by Moody’s Analytics. Since they are key players in determining creditworthiness, it’s a source I trust. A chart of Moody’s count from the second quarter in 2011 (when their number was a mere 285,000) to next year’s second quarter 1,500,000 provides a convincingly uphill slope.

Still, being eligible to apply does not mean automatically qualifying for an FHA (or any other) loan. Success in buying a Central New Jersey home after a foreclosure continues to depend on the same standards that always apply. After the waiting game is over, having cured credit damage will become the prime requirement.

To increase their chances of successfully buying a home after a foreclosure, Central New Jersey prospects will have paid existing credit card and loan debts with the kind of unfailing regularity that reassures loan officers and credit analysts alike. If that hasn’t been the case, the time to begin is ASAP.

Website Zillow predicts the next most influential group of buyers will be those who are looking to buy a home after a foreclosure or short sale. Central New Jersey residents who are among them — and who are ready to make this their turnaround season — should give me a call. We can get started with the pre-approval process!

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 Michael “Mike” Downer  at 732-302-1771.

 

 

 
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Best and Final: the Dreaded Multiple Offer

May 16, 2013 By Leave a Comment
 

 

Those who have been paying close attention to how the houses for sale in Central New Jersey have been performing may have observed the results of the dreaded “multiple offer situation.” When a closing price seems to rise unexpectedly, it could be because of something called the “Notice of Best and Final.”

That notice can be issued by a listing agent as soon as more than one offer is on the table. Experienced real estate agents sometimes choose this strategy to win the best price for their client. It instructs all interested buyers to submit their “best and final offer” by a deadline (usually within 24 – 48 hours). Since no counters or escalation clauses are allowed, one blogger has aptly called it Multiple Offer Sudden Death. Here’s how it works:

  • The seller’s asking price is listed at, say, $320,000.
  • Buyer A is interested; bids $310,000.
  • After a few rounds of negotiation, the seller and Buyer A near agreement at $316,000, when-
  • Buyer B, not knowing that the seller is nearing agreement with Buyer A, submits her own bid.
  • The seller initiates Notice of Best and Final, giving both parties two days to submit their last offer.
  • Buyer A begrudgingly goes up to the full list price: now offers $320,000.
  • Buyer B shoots all the way up to $329,000 – the offer which is accepted.

In this scenario, Buyer B not only paid $13,000 more than Buyer A was about to pay, but also paid $8,000 more than needed to beat Buyer A’s top price.

Great news for the seller, for sure — but less exciting for the buyers, since what was a great deal just becomes so-so. That’s why I advise my buyer clients to do their best to remain emotionally detached. I suggest deciding on the true value you believe the home is worth, then sticking to it, no matter what!

Whether you are selling or buying houses for sale in Central New Jersey, I’m here to watch out for your best interests in every situation. Call me today to discuss a plan that works for you!

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 Michael “Mike” Downer  at 732-302-1771.

 

 
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Appraisal Lag Hurting Buyers and Sellers

May 8, 2013 By Leave a Comment
 

Despite the uptick in prices in the Central New Jersey Grove real estate market, buyers continue to have issues with their appraisals.   Property values are increasing significantly over a short period of time (particularly here in Somerset County) and appraisers are hesitant to use the higher sales figures in their analyses. We are seeing a lag of about three months in appraisal decisions reflecting the current value of homes.

With this in mind we caution sellers to be realistic in their pricing.  Every home has to sell three times; once to the agent who agrees to put it on the market at that price, once to a buyer who agrees to the price and lastly to the mortgage company who is investing in the home.  If a home does not appraise in most cases it will kill the deal or cause a major adjustment at the last minute to the agreed upon terms.

Sellers will take a cash deal over a financed deal any day because it gives them peace of mind that they don’t have to worry about the appraisal.  Failing that a larger down payment will allow for many appraisal issues to vanish.

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 Michael “Mike” Downer  at 732-302-1771.

 
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Wider Choices Greet Central New Jersey First-Time Home Buyers

May 7, 2013 By Leave a Comment
 

pricesThe concept of “starter homes” cropped up after the end of the Second World War, when millions of young families took advantage of low-cost new developments to gain a foothold in homeownership: the emblematic first step in fulfilling the American Dream.

Today’s first-time Central New Jersey home buyers are a lot less predictable—just as the market itself is altogether different. As we recover from the previous years’ economic declines, which temporarily suppressed the number of area home buyers, the combination of low interest rates and historically affordable home prices allows many to aim for bigger and more accommodating housing— skipping the starter home altogether.

For sure, the market hasn’t completely abandoned the starter home idea—especially if you include Central New Jersey REO and foreclosure fixer-uppers as financially rewarding targets for handy young householders. The FHA 203(k) loan, which includes a built-in “limited repair” budget, can enable that route. But new home buyers also find other prospects can be newly within reach— among them, larger older homes and newer condominium and townhome choices.

If the combination of bargain prices and low mortgage rates isn’t enough to call prospects to action, the clear trend toward rising prices may do the trick. As inventories of the best bargains begin to shrink and mortgage rate rises look more and more inevitable, Central New Jersey home buyers could well imagine a ‘tick-tock’ sound growing louder. For area sellers waiting to make a move upward on the housing ladder, the same conditions could well make this spring’s real estate market the one they’ve been waiting for.

It all means that prospective home buyers in Central New Jersey stand to be rewarded by keeping an open mind about the variety of properties they may now find within reach. By seeking the help of an experienced agent, the widest choice of possibilities will be open for consideration.  If you are looking for the area’s most up-to-date market advice, I’m here to make sure you have access to the tools you need to make the right decision—the first time around, and every time after!

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 Michael “Mike” Downer  at 732-302-1771.

 

 
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Web Appeal is Central New Jersey’s New Curb Appeal

May 6, 2013 By Leave a Comment
 

Remember the days when you didn’t have to rummage furiously through the house to find a ringing phone, because it stayed where it was supposed to be—plugged into the wall? You remember: it used to take less than 10 minutes to check out the TV listings because there weren’t hundreds of channels. And a gallon of gas cost less than a loaf of bread…

Of course, those days are long gone. Unless you want to live on an isolated island somewhere in an underdeveloped country, that’s that.

In the real estate profession, the good ol’ days are gone, too. When I’m helping a client sell his or her home, I make the most of the fact that the super-highway to today’s buyer is no longer the newspaper or snail mail. It’s the Web.

It’s the listings.

The first glimpse potential buyers get to any property is most often found through our Central New Jersey real estate listings. Those attention-grabbing real estate listings are the agent and seller’s best chance to attract an in-person visit—with all that follows.

So how do you help your agent ace the area real estate listings?

As in preparing for any performance: set the stage!

Photographs are your best listings allies, so “stage” the house before photography begins. Professional photographers know that the viewer’s eye will be attracted to any out-of-place detail: a dog bed in a corner, or one window with a blind pulled lower than the others will create a distracting element. What looks okay in real life is much less critical.

Savvy buyers will peruse real estate listings in Bridgewater for instance online before scheduling visits. They save time, effort, and expense—and for those not committed to a specific area, the wealth of information published online about the community helps narrow their search. If you’re looking to sell your house, be sure your listing catches the attention of those serious and educated buyers. They’re the ones who are likely to write an offer.

Ready to set the stage for a successful sale? I’d love to prepare a marketing plan for you this spring!

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 Michael “Mike” Downer  at 732-302-1771.

 

 

 

 
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Central New Jersey Short Sale Option: Action Steps

May 3, 2013 By Leave a Comment
 

A short sale is the option usually preferred by anyone who faces foreclosure. It’s the path that, with the approval of the mortgage lender, promises to ultimately minimize damage to the homeowner’s credit score.

According to Realty Trac, distressed sales of all kinds continued to decrease in the last reported quarter, yet the non-foreclosure short sale volume increased by 4%. That amounts to a significant 22% of all sales. Realty Trac’s are the most reliable national statistics, and our Central New Jersey short sale profile has likewise reflected the continuing working out of the distressed property phenomenon.

Completing a short sale in Bridgewater (or anywhere else, for that matter!) can be challenging. If you’ve decided that it is your best course, you can do a lot to help your agent accomplish it:

  • From the beginning of the short sale process, keep your agent informed of any changes in the financial picture. That means keeping up-to-date on the changing balance remaining on the mortgage, as well as the number of missed payments. When the information is at hand, your agent can impart the sense of urgency that gets your home sold as fast as possible.
  • The speed of sale is important, yet while a Central New Jersey short sale specialist is an expert in that arena, other important details regarding taxation and the law may influence the best overall strategy. By encouraging your real estate agent to work alongside an experienced attorney or tax specialist, you will form a team that can execute your short sale package more efficiently than if they worked independently.
  • Executing a short sale means meeting multiple demands—each with its own timing requirements. That can mean a lot of pressure: but if your agent asks you to do something or provide additional information, stand ready to do it! That speeds negotiations with buyers and lenders, increasing the chance that you will successfully close your short sale.

Short selling a home is a somewhat complicated process. I offer a no-obligation, in-home consultation to help assess your circumstances and the next steps to consider.

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 Michael “Mike” Downer  at 732-302-1771.

 

 

 

 
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Central New Jersey Investment Properties Offer Long Term Potential

April 29, 2013 By Leave a Comment
 

7593902-housing-market-bubble-burst-concept-photo-with-composition-of-home-floating-in-a-bubble-towards-a-haNever 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.

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.

 
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