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Sellers in the West, Buyers in the East
Zillow, an online real estate site, recently released a study that listed the markets for sellers and buyers in the United States. The study showed that there is an east/west divide. Basically, if you’re on the West Coast, it’s a seller’s market. If you’re on the East Coast (or Midwest), it’s a buyer’s market. Obviously, if you compare New Jersey to California, there’s a lot of difference, and not just in terms of miles. Things are different out there. But why is one coast showing one market, and the other coast an entirely different market?
For starters, there are relatively strong job markets on the West Coast, which is helping to create more demand. Since there is a limited supply, this is causing a rapid appreciation for homes and giving sellers the edge. And, housing prices and interest rates are still favorable, so some buyers want to buy NOW. They’re willing to pay a bit more for a home because they know it’s still a great deal, and the sellers get to take more of a profit than they would have a few years ago.
Here in New Jersey and our surrounding areas, however, the housing market is appreciating more slowly. Homes are staying on the market for a bit longer, and this gives buyers the edge. If a seller wants to take advantage of the market and sell off their existing home, they’ll be much more willing to take a little less and move on rather than holding onto the property. This isn’t the case in every township, but it is the picture for things at large.
So, what can you be looking at this fall? It depends on who you are. If you’re the buyer, then you can expect to have the upper hand, and you may be able to land your NJ dream home by asking the seller to come down in price. If you’re the seller, on the other hand, expect to have your home on the market a little longer and perhaps have to lower your asking price. Or, you could always wait for that perfect buyer to come along, which isn’t asking too much in this market. New Jersey does, after all, have unique, one-of-a-kind homes.
Tips for Winning a Bidding War
You don’t have to be a bidding man to win a bidding war. Even though the housing market has been slow to recover, many areas are seeing bidding wars on for-sale properties. In fact, it’s not uncommon for some areas to see 10-15 offers on homes the day they go on the market. Low mortgage rates and housing prices make it a good time to buy, and low inventory creates these bidding wars. To compete in these wars, you’ll need to be financially prepared to make the investment. You should also be familiar with the neighborhood and exactly what you’re looking for.
Here are a few helpful tips for winning a bidding war in today’s market.
Have Your Lending in Place
Too many buyers start working with lenders when they begin looking at homes. If you’re going to make a bid, you need to have your lending in place. Talk to lenders in advance and have a preapproval letter in hand before making a bid. This way, you’ll be more likely to win the war because financing is already in place.
Put Cash Aside
Financing is good, but so is cash. A down payment of at least 20% is ideal, but more cash is better. You want to show the sellers that you have the funds to close on the home, and the ability to make up the difference if the appraisal comes out low.
Make a Fast Offer
You can’t wait in today’s market. When you see a home you like, set up a time to view it as soon as possible. Not only should you make a fast offer, but also personalize it. You can talk to the realtor to determine what motivations the sellers need to close the deal and use this to your advantage. The goal is to make your offer look attractive compared to all the others.
Eliminate Contingencies
If you can, eliminate contingencies so that nothing slows down your offer. Common contingencies include financing, appraisals or home inspections. If you can’t waive these, at least find a way to shorten them. You want to make your offer strong and avoid having the sellers wait on things that may not come through. So, if you don’t need that home warranty after all, don’t ask for it.
Making the Most of an Open House
As a prospective buyer, open houses are a wonderful opportunity to drop by, view a home and meet others in the neighborhood in a semi-relaxed environment. The advantage to an open house is that it’s completely open, and you can drop by during the specific window without an appointment or even being a serious buyer. Below are helpful tips for making the most of an open house.
Attend open houses early on in your search.
Before committing to a realtor, attend a few open houses and get a feel for the market. Seeing what homes are on the market, what they look like on the inside and how much they are selling for are all important criteria to learn about. Plus, it puts you in a position where you can meet realtors and agents who may be a good fit for your needs.
Introduce yourself when you walk in.
Prospective buyers are often concerned that if they sign in, they’ll be hassled for the next few months by the realtor. This can happen, but it’s not the norm. Still, if you don’t feel comfortable signing in, that’s okay. Politely decline. But, you should introduce yourself and be polite, as it’s important for safety reasons for the agent to know who is coming into the home. And, if you’re a serious buyer, make yourself known to the agent. Putting a name to a face is helpful when reviewing offers.
Ask the listing agent questions.
The realtor may ask you questions, but don’t be afraid to ask your own. Listing agents know the most about the property, and they can direct questions to the seller if need be. Some things to ask: how long the property has been on the market, why the home is being sold, what costs are attached to the property and what fixtures/furniture are being sold with the property.
Watch the other buyers.
If you notice that people are leaving as quickly as they came in, that’s a sign that there are issues with the property on some level. If people are asking questions, sticking around and envisioning their own stuff in the house, you know that it’s probably a good property you’re looking at. Take direction from the other buyers and gauge their confidence level.
Real Estate Agent vs For Sale By Owner
If you’re considering putting your house up for sale, you are probably concerned about the costs related to selling, moving and repurchasing a home. After all, you may not be getting what you thought from the sale of your home, so it’s a good idea to be financially smart.
One of the first questions that you may have is whether you should sell your home on your own or hire a real estate agent. At first thought, it may seem best to sell your home on your own, as this is the ‘free’ route to go. But, even financial experts recommend using a real estate agent.
Here’s why.
They know their stuff.
You want to sell your home fast. This means that it needs to be cleaned up, repaired and placed on the market at a competitive price. Real estate agents can offer suggestions on what needs to be done to get your home up to par. They know what’s selling in your area and at what prices. Basically, they know their stuff. You’re not just paying for a service; you’re paying for essential knowledge as well.
They will give your home maximum exposure.
Nowadays, people comfortably search for homes through the Internet. You want your home to found online, don’t you? If you list your home on your own, you’re more limited on where you can post. Active real estate agents have access to all listing sites, including the MLS database. This means that your home will be placed in front of the biggest pool of buyers so that it gets maximum exposure. This leads to more traffic, a faster sale and perhaps even more than one offer!
They handle buyer calls and showings.
Chances are, you have a full time job, or at least a busy schedule. Do you really have time to handle all calls and emails from prospective buyers? Do you plan on being available for the showings? With a real estate agent, all of this is handled for you. The real estate agent will answer questions, handle phone calls and emails and arrange for showings. All you have to do is sit back, relax and let the house sell itself.
They handle the negotiating.
Will you know what to do when an offer comes in? Do you know how to negotiate? Active realtors do this all of the time, and they know how to negotiate in your best interest while also closing the sale. The final decision will be up to you, but at least you have an expert negotiating on your behalf.
Tips for Selling Your Home – Fast!
The spring season is one of the most popular times to list a home for sale. Of course, you don’t want to miss out on this short window. Summer is still a great time to have your home up for sale, but people get busier with summer vacations and other plans. So, to make the most of the spring selling season, follow these tips.
Separate Yourself from the Neighbors
Just because there isn’t a lot of inventory on the market doesn’t mean that your house shouldn’t stand out. Find ways to attract attention and distinguish your home from every other one on the block. When potential buyers turn onto your street, you want them to see your home and think, “I hope this is the one for sale.” Ideas include freshly planted shrubs and flowers, landscape lighting, energy efficient windows, a new roof, newly painted shutters, professional landscaping or a functional backyard.
Stage Your Home
We all think our homes are the greatest, but remember that potential buyers will have a completely different idea of what’s attractive. Therefore, all of your personal belongings and clutter should be removed so that your home is a clean, neutral palate. You can hire a professional stager to help with this step, but even realtors can offer a few pointers. You’ll be moving in the near future, so now is a great time to de-clutter anyway.
Add an Incentive
Selling your home quickly offers plenty of rewards: you get to move on sooner, and you don’t have to have any more showings. So, don’t be afraid to sweeten the pot a bit. Money toward closing costs, a transferable home warranty or fast closing times are all examples of what can be done to get you that contract sooner.
Get Your Home in “Move In” Condition
What this means is that your home is ready to be moved into. Families today are short on time and money, so being able to move in over the weekend and start enjoying a new home is invaluable. This equals more time and money for the buyers, and it will set your home apart from the many other short sales and foreclosures that still flood the market.
List at a Competitive Price
Most sellers are taking a hit on the sale of their home because of the housing market’s slow recovery, but there are gains to made on the other side. Instead of sticking it out to get a certain amount from your home, price it competitively and get it sold fast. If you’re planning to purchase again, you’ll be pleased to know that housing prices are still competitive and interest rates low.
What are the Benefits to Buying a Short Sale?
Even though the housing market is strengthening, current buyers will find that inventory is still rather low, and there is a good number of short sale properties to choose from. What is a short sale exactly, and are there benefits to you, the buyer?
During a short sale, the homeowners agree to sell the house for less than what they owe on the loan, which means the lender must also agree. If you are in the market for a new home, short sales are a good option to consider. They do take time, however, since the banks must approve the offer. This makes it difficult to pinpoint an exact closing date. Short sales are not recommended for people who need to move quickly or before a certain date, but if you have some flexibility, you can enjoy the following benefits with a short sale.
Low Housing Price
Short sales are listed lower than the normal selling price. Not only can you scoop up a nice property for less, but also you can negotiate with the seller and the banks, something that is hard to do with a foreclosed property. In a traditional sale, the homeowners would be responsible for fixing things up, but with a short sale, this will be your responsibility. It’s important to understand that you may have to purchase a fixer upper, but again, this will be reflected in a lowered cost.
Cooperation from Homeowners
With a short sale, the sellers are eager to sell their home. The sooner the house sells, the sooner they can move on and start repairing their credit. This is a much different scenario than if you were to buy a foreclosure where the people need to be evicted and may cause damage to the home out of anger. This cooperation between the sellers and the buyers is helpful in making the sale work to everyone’s advantage.
Favorable Financing Terms
Short sales are generally in the best interest of the bank. Instead of having to pay all the costs associated with a foreclosure – eviction, administrative costs and repairs to the home – a short sale allows the lender to take a loss on the loan, but then start getting some of that money back by approving the short sale and moving the new buyer into the home. Since sellers are behind on their mortgage payment by a few months, it makes sense to get someone in there who can pay. This often gives buyers the advantage by getting buyer-friendly terms such as low interest rates.
If you’re considering purchasing a short sale, call Cedarcrest Realty today!
New Jersey Housing Market Continues to Strengthen
According to the New Jersey Association of Realtors, the NJ market continues to strengthen thanks to a lower inventory of available homes, higher median prices and faster selling times. How do these numbers compare to last year?
According to NJAR, the number of homes for sale in all markets is down 15.5 percent from September 2012. Closed sales in all markets have risen 21.8 percent, though. Single-family homes have seen a median sale price of 7 percent more compared to September 2012, and single-family homes are spending less time on the market.
To add more good news to the picture, positive trends are being seen in the townhome and condo communities as well. While NJ isn’t back to pre-recession prices, at least the housing market is moving in the right direction.
Why Inventory is Low – But Maybe Not for Long
Part of the reason why inventory is low is because would-be sellers are holding onto their properties because they are not willing to sell their home at a discount. This deters many would-be sellers, so they either remain in their homes or rent them out to continue paying down their mortgage.
Over time, we can expect to see some of these sellers slowly listing their homes when they can finally make the numbers work for them, but in the meantime, inventory will remain relatively low – at least for these types of homes.
Foreclosed homes are a different story. With the high number of foreclosures, there are still many that need to make it onto the market. Once they are listed, we can expect to see them clear out very quickly, boosting sales and driving up the market, hopefully allowing today’s would-be sellers to finally list their homes without taking as much of a hit. This has been the trend for much of the country, and it has helped many states rebound to better sales.
We can only hope that the housing market bubble will be a thing of the past, and housing prices will continue to strengthen over time. We’re making positive steps in the right direction, making now – potentially – a great time to sell, buy or both.
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.
