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5 Tips for Buying a Home
Now is a great time to buy a home: home prices are low and interest rates are low, but they are climbing steadily. The New Jersey market has seen more home sales and faster selling times, reassuring us that the market is indeed improving. If you don’t want to miss out on this buyer’s market, now is the time to buy a home and lock in low interest rates.
Here are five tips for those who are interested in buying a home.
1. Keep Your Finances Steady
When you apply for a loan, lenders will want to see that you’re reliable and have a good paper trail. Don’t open new credit cards, move money around, buy many big ticket items or accumulate too much debt, or these will be red flags to lenders.
2. Start the Pre-Approval Process
There’s nothing wrong with getting a pre-approval, even if you don’t end up buying a home. Anyone can be pre-approved for a loan, as this means that a lender has looked at your finances and determined that you can afford to make the mortgage payments.
3. Go with Your Instinct
You’ll hear a lot about the market in NJ: it’s slow, it’s competitive, it’s laden with foreclosures. Don’t worry about when the best time is to make your move. Instead, focus on the available properties and what’s right for you. Real estate is always fluctuating.
4. Hire an Inspector
When you find a home that you’re willing to purchase, make sure you hire a home inspector first. It will cost about $200-$300, but it could end up saving you thousands. A home inspector is a third-party who will tell you whether the house is worth buying.
5. Remember Hidden Costs
It’s easy to look at a mortgage payment and assume that you can pay it, but remember that homes come with a lot of hidden costs, otherwise known as “sleeper costs.” These added finances include homeowner’s association fees, utility bills and property taxes. Don’t forget routine maintenance and repairs. If you’re falling short, it’s better to buy a home that is lower priced than stretch yourself too thin.
What is the Multiple Listing Service (MLS)?
If you’ve been working with a realtor or will be in the near future, you will definitely hear a lot about the MLS system. MLS stands for Multiple Listing Service, and it refers to one large database with many of the listings that are currently available on the market. When a property is sold, it is then taken off the database. The MLS is a fast and convenient way to access the homes that are available for sale at any given moment. After all, being a good realtor means that you need to have quick knowledge of what properties are out there.
Let’s take a look at the advantages to using the MLS for your home buying or selling experience.
Benefits to Buyers
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Convenient. The majority of homes for sale in your area are placed on the database, so you don’t have to bounce back and forth to various websites.
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Easy to use. A few simple clicks of a mouse give you access to all the properties for sale in your area.
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Up-to-date and relevant. The MLS is continuously updated, so what you see reflects the current market, unlike other sites that are out of date.
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Free service. The MLS does not cost a penny for buyers to use.
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Sorting features. Instead of sorting through hundreds of homes, you can use the handy sorting features to find homes based on the square footage, number of bedrooms/bathrooms, zip code and so on.
Benefits to Sellers
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More exposure. You want to sell your home fast, so putting it in front of the most buyers makes this possible. The MLS gets you the largest number of buyers in a short amount of time.
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Help from a professional. To get your listing on the MLS, you’ll need a real estate agent or broker to list the property. Not only do you get your home on the MLS, but also you get professional assistance from a realtor who can help get your home sold quickly and for the most money possible.
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Increased competition. The more buyers that see your home, the more competition it will create. Competition is good for sellers since it puts more power in your hands as you price your home and sell it quickly.
Vampire and Zombie Homes Continue to Grow in NJ
Just because it isn’t Halloween season it doesn’t mean that it’s the end of zombies and vampires. A real estate firm coined the term “vampire houses” to represent the many homes that have gone into foreclosure, but the original owners continue to live there. Vampire homes are slightly different from zombie homes in which no one lives in. These homes are going through the foreclosure process, but they have been abandoned by the owners. Which one is worse? It’s hard to say. All we know is that both vampire and zombie homes continue to grow in NJ.
Why So Many Foreclosures in NJ?
It’s no secret that the Garden State has been hit hard by foreclosures. In fact, as much of the country is seeing a reduced rate of foreclosures, the number of foreclosed properties is still increasing in NJ. This is largely due to the fact that New Jersey is one of 17 states that requires foreclosures to go through the court system. With so many homes in foreclosure, the state has a lot of paperwork to process, and foreclosed homes keep piling up.
In the meantime, zombie homes continue to sit, and more homes turn into vampire lots where the family continues to live in the home until they are forced out. Currently, there are more zombie homes than vampire homes, with a staggering 14,000 homes sitting empty, accounting for 17 percent of the NJ population. The vast majority of these homes come from Cape May, Hudson County, Camden, Gloucester and Somerset.
Will Any Good Come out of Vampire and Zombie Properties?
Of course, no homeowner who pays their bills and mortgage on time wants to hear that they have zombies and vampires for neighbors. But, is there any good that could result from this?
Hopefully, yes. As New Jersey deals with more paperwork and processing, the banks are going to want to sell homes sooner. This leaves a good opportunity for buyers to purchase a home that they want, in an area that they want and for a price that they want. With so many homes in the foreclosure process, buyers will have the upper hand, because at the end of the day, these homes are better off being sold and having real owners live in them rather than sitting vacant or with “vampires.”
Best Counties for Middle Class NJ Residents
We may be biased, but New Jersey is one of the best states to live in!
The dynamic history, the beautiful Jersey Shore coastline and great eats from famous diners and local farmer’s markets make the Garden State a pleasant and entertaining place to live. We also have a dense population that keeps things interesting. Some residents were born and raised in NJ, while others have come to our state from NYC to seek a quiet, suburban lifestyle. Our close proximity to other cities, including Philadelphia, Manhattan and Boston, also make NJ a hotspot.
The one downfall to NJ is that we are an expensive state. In fact, a recent study from Trulia reported that in Bergen County alone, only 19 percent of homes are within reach for middle-class families. A family with a median income of $56,000 could afford a home in Bergen County priced at $274,000. Unfortunately, homes in this price range are rare. We are talking about some of the most expensive counties in the country after all.
So, if you’re currently looking for a new home in NJ and have moderate earnings, where are some of the best – but affordable – places to live?
Below is a great chart to reference, courtesy of Fred Kaimann/The Star Ledger, with data from Trulia. This comprehensive chart is an excellent tool for middle-class families looking for an affordable home in the Garden State.
|
County |
Percentage of homes within reach for middle class |
Median square foot of affordable homes |
Median household income for metro |
Maximum affordable home price |
|
Atlantic |
51% |
1,248 |
$51,191 |
$218,000 |
|
Bergen |
19% |
1,410 |
$56,007 |
$274,000 |
|
Burlington |
72% |
1,497 |
$68,241 |
$272,000 |
|
Camden |
86% |
1,376 |
$68,241 |
$272,000 |
|
Cape May |
37% |
1,040 |
$57,001 |
$270,000 |
|
Cumberland |
74% |
1,302 |
$47,072 |
$191,000 |
|
Essex |
55% |
1,760 |
$70,062 |
$294,000 |
|
Gloucester |
78% |
1,536 |
$68,241 |
$272,000 |
|
Hudson |
40% |
825 |
$56,007 |
$274,000 |
|
Hunterdon |
34% |
1,418 |
$70,062 |
$294,000 |
|
Mercer |
70% |
1,316 |
$67,991 |
$278,000 |
|
Middlesex |
63% |
1,432 |
$75,355 |
$326,000 |
|
Monmouth |
45% |
1,448 |
$75,355 |
$326,000 |
|
Morris |
32% |
1,353 |
$70,062 |
$294,000 |
|
Ocean |
66% |
1,437 |
$75,355 |
$326,000 |
|
Passaic |
42% |
1,503 |
$56,007 |
$274,000 |
|
Salem |
92% |
1,404 |
$62,075 |
$319,000 |
|
Somerset |
45% |
1,320 |
$75,355 |
$326,000 |
|
Sussex |
65% |
1,381 |
$70,062 |
$294,000 |
|
Union |
54% |
1,360 |
$70,062 |
$294,000 |
|
Warren |
55% |
1,389 |
$55,766 |
$249,000 |
7 Reasons to Move to New Jersey
Are you thinking about moving to New Jersey? Many New York residents are faced with this decision at some point as they contemplate leaving behind the busy city life for a quiet, suburban life. Here are seven reasons why moving to the Garden State may not be such a bad idea!
1. Jersey City: A Cheaper NYC
Jersey City has been growing for years and offers an abundance of restaurants, waterfront apartment buildings, farmer’s markets, theaters and state parks. It delivers stunning views, and real estate prices are far less than in NYC.
2. Fresh Garden Vegetables Off the Shore
The Garden State isn’t called ‘the Garden State’ for no reason. Find some of the freshest produce from farmer’s markets where you can support the local economy and eat sustainably. New Jersey corn off the shore is a local favorite.
3. Endless Diner Choices
Forget the five-star restaurants. There are plenty of diners in the Garden State, and they offer a great dining experience as well as equally great food. Some of the local favorites include boardwalk fries, hoagies, pizza, pasta and sandwiches.
4. No Need to Pump Your Own Gas
It’s basically illegal to pump your own gas in NJ. No matter where you go in the state, a gas attendant is standing by to do the hard work. There’s just simply no reason to get out of your car or smell like oil. Ever.
5. We’re Dense…Densely Cool That Is
New Jersey may have a dense population, but that makes our state all the more interesting. We have an intricate system of highways, major roads and railways that make getting to work on time actually doable. Also, New Jersey Transit can be seen in just about every town.
6. Access to Nearby States
Thanks to a strong system of roads, railways and public transit, NJ residents can get to cities like Manhattan or Philadelphia in a flash. This means that you can work in one of the cities, earning a higher income, yet retreat back to your quiet suburban household at night.
7. Geographically, we are Awesome
New Jersey is simply beautiful. We get to experience all four seasons and have the lovely Jersey Shore to spend the summer months at. Plus, we are minutes away from some of the best cities, including Manhattan and Philadelphia. Our state alone has over 75 historic sites and resort cities.
