Ocean City Homes | South Jersey Real Estate - Jeff Quintin

What To Expect in Real Estate for 2012 – Jeff’s Real Estate Predictions

2012-01-19T14:03:00.000-08:00

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Very often, Realtors are asked about the current state of the real estate market and though it’s an ever-changing industry involving volatility at times and major upswings at others, knowledge alone can change one’s experiences in real estate. ( I did this last year as well. Check out my 2011 predictions here.) So to provide some insight and guidance into what we can expect to see in the coming year. Based on years of experience and after following trends that have led us up to this point, here are ten real estate things that I predict will be occurring in 2012.

Unremarkable Appreciation Values

Even though we can see the market heading in the right direction, it appears that 2012 will be yet another year where there will be little to almost no appreciation on properties. Prices will continue to fall, often as a result of buyers bidding that driving down the very prices they are concerned about as homeowners. Keeping in mind that still more inventory will be coming in this year, noteworthy appreciation is still a thing of the distant future.

Unscrupulous Short Sale Activity

Surprisingly, there is a lot of short sale fraud going on in the nation and as short sales continue to control a sizable portion of the market we will continue to see fraudulent activity in that area of real estate. Seller payoffs by investors wishing to cash in on short sale deals, secondary lien holder payoffs or cases where a buyer purchases a short sale only to resell it back to the seller again – all are examples of what we are seeing and what we will see more of in 2012.

Government Programs Providing Little Relief

Though their hearts are in the right place, government agencies that are providing relief through programs such as HARP (Home Affordable Refinance Program) will continue to offer them however homeowners will receive little relief. Loan modification programs stop the bleeding but they do not reduce the principal, effectively leaving homeowners to find themselves in default once again.

Bulk Foreclosure Sales

There has been significant controversy over the term “shadow inventory” in the recent past and this coming year a lot of this shadow inventory will find itself on the market. Banks will unload many foreclosure properties on the market this year, selling them in bulk with the intent to sell them quickly and more efficiently. The sale prices will also reflect this convenience for banks with discounts for buyers buying several properties at one time.

Short Sales On the Rise

As we have seen during the past few years, short sales have been a popular solution for homeowners facing default and a favorite for buyers looking for a great deal on a home. In 2012 we will see short sale trends continuing to rise. Looking at the numbers from 2009 to present, there is a huge upward trend on short sales that is predicted to be as many as 150,000 this year.

Veteran Loans Increasing

Now that the war in Iraq is over we will see a large number of veterans returning from overseas looking for housing. Loans supported by the Veterans Administration will be on the rise this year across the nation with such benefits as no down payment or waived funding fees.

Lease Option Sales Offered By Banks

A new, and very viable, alternative for homeowners facing foreclosure is the concept of lease option sales. More and more lenders are offering this option to homeowners as a chance for them to rebuild their financial lives yet remain in their homes. Banks go ahead with foreclosure but then offer the same home back on a lease option. With demonstrated timely payments as they rebuild their credit, homeowners will have a chance to buy back their home.

Renovations and Remodels Replacing New Purchases

The economy is improving but ever so slightly and as we deal with still very high unemployment numbers, the trends in real estate that is currently owned will reflect that. Rather than move into new homes, we will see homeowners working to repair or renovate their existing homes to save money.

Mortgage Holders Will Move to Shorten Terms

Interest rates have been in the news for a long time and they will continue to dominate the real estate industry. With no immediate change in the history low interest rates we have been seeing for the past two years or so, more and more people will move to shorter amortization terms and effectively pay their homes off in half the time, if not more.

Surge in Second Home Sales

Given the ripe market for buyers we will continue seeing a huge surge in the purchase of secondary properties this year. Whether looking for resort locations, vacation properties, rental properties or even retirement homes – consumers will take advantage of the low prices, low interest rates and high inventory.

Happy Holidays from The Jeff Quintin Super Real Estate Team!

2011-12-23T09:14:00.000-08:00

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As we approach the turn of another great year together, I wanted to wish you and your family on behalf of my team, our families and I – a wonderful holiday season. As always, we are ever thankful for your presence in our lives and strive to continue our lasting relationship. May you and yours enjoy good health and prosperity – now and always. We’ll be back in 2012 with a whole new insight, plus lots of perspective and ideas on your real estate endeavors. Happy Holidays!

Sell Now, Then Enjoy Next Spring & Summer As a Successful Seller

2011-12-07T08:22:00.000-08:00

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Why is there such a stigma against selling your home in the cooler months of the year? Sure, it may not be as easy to jump in one’s car and drive over to the next open houses, but if you think about it – there is really no reason why a home couldn’t sell just as easily during the off-peak season as it does in the spring and summer.

One of the most common things we see as Realtors is that homeowners will list their home on the market – and given the state of our market lately – if it doesn’t sell within a certain time frame leading up to the fall season, they proceed to take the property off the market. The general consensus is that there will not as many buyers out there and since the market will be slow, best to wait until things pick up again.

This school of thought is contrary to what most real estate agents already know. When you get into the months that end in “er” (September, October, November, December) and onwards, the buyers that are looking are truly serious contenders for the properties that are currently on the market at the time. As a seller, nothing could be better for you than knowing whatever offers are coming are solid, quality offers coming from people who have made the effort to seek out the perfect property despite the cooler weather, holidays or lesser inventory.

The single best advantage you will have over others if selling during the fall and winter seasons, is to be able to gain exposure to quality, serious buyers.

Serious Buyers Have Less Homes to Consider

Keep in mind that come early spring when everyone else jumps on the bandwagon and lists their property, there will suddenly be an influx of new listings and equally, if not more, new buyers to go along with it. More competition? Sure. But it also means that you will have a lot more browsers rather than actual prospective buyers.

Fewer Inventory Means Your Home Can Be One of the Better Properties

It goes without saying that the more competition you have, the harder it will be for you to sell your home. When your home is listed during less busy time of the year in terms of real estate, your chances of being a stronger contender are significantly higher. Yours will likely stand out from other properties and you will have the opportunity to have one of the better ones available to buyers looking to close on a deal now.

Market Conditions Are Ripe for Buyers and Buyers Know It

Many potential investors and existing homeowners are seizing the opportunities that present themselves these days given the record low interest rates as well as significantly lower property values. Oftentimes the people seriously looking to buy are either upgrading into a new property or they want a second or subsequent one. These buyers know that the current market conditions will not last forever and they are ready to purchase the right property when it comes along.

Rental Homes Are Done Earning Peak For the Year

Owners of rental properties often use the home during off-peak times of year. Since the end of July and early August provide the biggest yield in terms of rental income, by the time the fall and winter months approach, the owners utilize that income to carry them through the rest of the year. While they are enjoying one of the most beautiful times of year in the area, they begin to look for new opportunities; once again – a very high quality buyer profile.

A Look At How the Numbers Compare

Since it is a common misconception that more homes sell or at least a lot more homes sell in the warmer months of early spring, a look at the numbers provides a good benchmark for sellers to gauge the so-called “huge” difference.

As of the end of November, 2011 the total number of homes listed for sale and currently on the market in our area was 1,037. If you go back to April of the previous year, what would demonstrate a fair assessment of how the market might perform in the coming year at the same time, the number of homes on the market was 1,187. In other words, there were only 15% more homes on the market in the spring (2010) as compared to the fall/early winter 2011.

Focusing specifically on Ocean City, in October of this year the total number of homes sold was 56. And very surprisingly to those who still feel off-peak season is off-limits, the number of homes sold in April of 2010 was also 56. The one major difference between the two times of year is inventory levels.

Now, why wouldn’t you want to be among a smaller pool of available top-quality homes? Put your home on the market – and leave it for sale during the whole time – and you will very likely sell your home faster than you imagined.

The Little Known Secret That Will Get Your Home Sold

2011-10-21T10:28:00.000-07:00

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We all want our real estate buying and selling transactions to run smoothly, efficiently and with minimum hassle. This holds true even more so these days with the real estate market the way it has been lately. With just a few simple things, many buyers and sellers today have a huge hand in how their transactions end up happening and as a seller there is one thing you can do that will sell your home in less time, get you more money and in a way that everyone is happy.

The Big Secret is to Be Prepared in Advance

Sure it makes sense to be prepared to sell a home in the traditional ways, such as cleaning up all the extra clutter, making it ready to show to prospective buyers and sprucing up the home’s curb appeal. But market-savvy sellers are going one step further. Instead of just relying on what they think might be the issues that need resolution prior to sale, they are going out and actively trying to find out.

Get a pre-sale home inspection done, saving you lots of money on the transaction and potentially saving you the risk of losing the sale altogether.

With things the way they are in the market today, plus as we head into the cooler months and slowing down sales – now is a time when there is a lot of seller and buyer remorse going on. Sellers feel they are getting a bad rap with the amount of concessions they have to offer in order to get their home sold. Meanwhile, buyers get upset when they go through all the motions only to find that after having a home inspection done they have uncovered some concerns and want to renegotiate the price.

The simple secret that many successful sellers engage in is to have their own pre-sale home inspection performed. Whatever the items are that show up on the inspection report can then be included in the seller’s disclosure. Not only that, the existing homeowners can then work to address the issues that seem like potential deal breakers. In case potential buyers request further information about the items on the report – anything that has been resolved by the seller after the fact can be proven with receipts and contracts from contractors.

Home Inspections Will Typically Uncover Structural, Maintenance or Aesthetic/Cosmetic Concerns

Another advantage the seller has by being able to present a completed home inspection report done by a certified, local home inspector is that buyers will be more confident in the sellers’ disclosure. It demonstrates integrity on the part of the sellers to present a full report on their home from top to bottom. There are several levels of inspections that can be requested and depending on the amount the seller is willing to spend, they can provide detailed reports on many systems of the home, including plumbing and electrical, water and sewerage, foundation, structure, heating and cooling plus aesthetic aspects. All systems in the home will also be checked for adequate functionality.

A Little Investment Goes a Long Way

It does not cost a lot of money to have a home inspection performed on your property. By spending no more than a few hundred dollars you can count on selling your home for a better price, often a premium price that might not have been possible without a formal inspection report and corresponding repairs.

The single best reason to engage in this technique to successfully sell your home is to prevent the premature fall-through of your home’s sale. Since buyers today have the upper hand in this soft real estate market, you need to have an edge over others sellers because they can easily lose interest and move on to the next prospective property on their list. Demonstrating you are serious about selling your home, a home inspection only makes it easier for all sides of the transaction – not to mention that buyers will be requesting a home inspection at some point in the process too.
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Most Realtors have a list of preferred vendors who are local and that have served their area for many years. To find someone within the preferred vendor circle of your Realtor, ask for a list of their contacts and request a reference as well.

A Bird’s Eye View Comparison of Prices, Rates and Costs Clearly Shows Today’s Golden Opportunity

2011-09-08T07:45:00.000-07:00

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Typically homeowners and potential homeowners measure the financial viability of their purchase in two ways; the price of the home and the monthly payment. Very surprisingly to most, they both do not depict the same overall picture when examined in comparison to other factors affected by the current economy at the time.

To help illustrate exactly what benefits lie in seizing the low interest rate and housing price opportunities that are out there right now, we’ve assembled a simple comparison chart (also explained on the video blog). This chart shows you exactly how much you are getting for your monthly payment. If you haven’t been convinced already, this will surely convince you that buying now is the single best thing you can do for yourself and your family.

	1989	2010	2011
Bread (one loaf)	$0.67	$2.49	$2.49
Gasoline (one gallon)	$0.97	$2.73	$3.87
New Car (average)	$15,350	$28,400	$28,400
Median Home Price	$94,000	$173,000	$156,100
Mortgage Rate	10%	4.69%	4.91%
Monthly Payment	$825	$896	$829

As a Realtor, the most exciting thing to witness in terms of how much (or how little, I should say) it costs each month to be in a home these days. The reason this is especially exciting is apparent when, looking at the chart, the other things are compared.

Living Today With a House Payment From Yesterday

Take a look at what happened to the average cost of a new car between 1989 and today. It jumped up to a few hundred dollars short of double the average price! Bread rose in price almost four times as much and the same holds true for gasoline. But what is very interesting is how the numbers look for housing, mortgage and monthly payments.

What you’re seeing is mainly a demonstration of just how significant the impact of interest rates is on relative affordability for housing. Despite such huge jumps in cost for the other items on our chart, the median home price has increased 70% and interest rates are at less than half of what they were twenty-one years ago.

In fact, the most noteworthy figure that does not deviate at all from that of almost a quarter century ago is the monthly payment. A very eye-opening way to say this: you can buy a home today and pay the same monthly payment as in 1989.

Pick Your Battles When Negotiating

Considering how the market is today and the impending rise of interest rate that will occur – it is imperative that homeowners, potential buyers and investors keep their eyes on the prize when it comes to negotiating a final price. There is nothing more disappointing for me as a Realtor than to see a buyer wasting the long-term savings and investment opportunity that is gained by these low rates and prices, on a few thousands dollars or a couple percent of the total price. If you work out the numbers, there is a very good chance that the savings from today’s interest rate alone will pay you back multiple times over the years. To calculate this, use an online tool to estimate your amortization schedule. You will be surprised.

Remember, if you compare the difference between a slight decrease in the price of a home versus a slight increase in interest rates – there is a far more significant impact on the overall cost of the loan with the interest rate increase.

Things Will Not Stay This Way Forever

We have been watching the market continue to allow us fantastic rates for several years now but when you factor in the financial volatility we are experiencing lately, with the stock market as well as the overall economy – there is no telling just how soon those interest rates will creep back up. Not only that, let’s hope they don’t go back up to the astronomical rates we saw in the low to mid- 80s, reaching levels as high as 18%!

People who are in tune with the ins and outs of the real estate industry are buying and investing in homes as much as they can these days. Top Realtors, including myself, are taking advantage and getting into second homes, vacation and rental properties and anything else they can afford at the moment. At the end of the day, these properties will appreciate. The market will recover. And those people who were smart enough to get in on the action today, will end up with low, locked-in mortgage rates and monthly payments plus plenty of equity in homes worth far more than they are today.

Update on Hurricane Irene

2011-08-26T07:56:00.000-07:00

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I am writing this to you at 7:47 AM Friday August 26, 2011. Here is the latest up to date information and recommendations regarding hurricane Irene.

City officials have announced a mandatory evacuation as of 8 am this morning. This does not mean that you have to be off the island by 8 am. This simply is the start time of the evacuation. The island is 100% accessible and will be all day and into tomorrow am. If you have tenants coming to check into your property for this Saturday check in, please tell them that Monday is the day to come down and check in. depending on the storm, access on Saturday on the island will be limited. The city encourages all home owners to come to the shore today to secure your property. Here are the following recommendations:

1. All outside furniture stowed away, removed from all decks. Anything that can blow off your deck secure and or stowed inside.

2. All items that are in the garage and around the property on the ground level, get up off the ground and put up high.

3. If you have a boat, get it out of the water today. All public boat ramps are open, free and accessible.

4. Take pictures of the inside and outside of your property and all personal property. Use a digital camera with a date on it.

5. Make sure all your insurance is up to date, and bring all the documents with you so that you have them in a safe place. McMahon and Heist Ins. Agencies also have information on their websites.

6. If property typically doesn’t get water at high tides and storms, act as though it does and get everything up off the ground.

On Saturday sometime in the late am or afternoon (city officials are waiting to see what time) the ocean city bridges inbound will be shut down. Only outbound will be open, so once you leave, you will not be able to re-enter. If anyone decides to ride out the storm and not leave the island, the city will not guarantee if there is an emergency that the calls will be responded too. It is possible that 911 calls may not get answered.

City officials and emergency management are watching the hurricane, and expect either tons of rain and wind, or heavy storm surge with flooding and major high tides. Depending on if the eye of the hurricane passes us either on the left or the right.

THE ISLAND IS OPEN TODAY, AND ACCESSIBLE. COME DOWN AND SECURE YOUR PROPERTY TODAY. If there is any further updates I will send another email. Also will be sending a voice broadcast to you as well.

Be Safe!

Need to Sell Your Home? Here Are Three Great Ways To Get It SOLD!

2011-08-16T08:47:00.000-07:00

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The challenged market these days makes it very difficult for homeowners to get their houses to sell. A few years ago, it was more than enough to put up a listing and let the home sell itself. But now, during a time when in most markets inventory levels exceed six months or more, it is no wonder that people need as many tools as possible to help the process along.

Factor in that you are competing directly with your neighbors also vying to sell their homes and you really have to get an edge somehow. In this article, there are three smart ways to make sure your home sells and does so within a reasonable time.

Accurate Pricing Sets the Precedent for Successful Selling

It used to be that it was all about location. You know the famous phrase: “Location, location, location!” but in today’s tip, it is not so much about location as it is about price. Simply put, your price advertises your motivation. If you are a homeowner who refused to budge on a selling price despite getting no offers even after the property has had over 90 Days On Market– maybe it is time to rethink your strategy. Similarly, homeowners who price too low give off the impression that there must be something wrong with the property.

It is important to price accurately and realistically. Study the prices of similar homes sold in the same area. Consider a consultation with a Realtor to obtain in-depth studies and reports that demonstrate a wider scope of statistics that will help you set your price. Examples of things that may affect your price are the amount of tax, the age of your community development, whether or not it is located near a commercial zone, etc.

Making Sure Your Home is Dressed to the Nines Attracts More Buyers

Sure in the dating scene we need to look our best if we want to “sell” our look and get people interested. Houses are not much different. If you dress up your home to perfection, set it up in a way that will have potential buyers “oohing” and “aahing” over features that are highlighted because of the way you have it arranged, you’re in great shape.

Many people have no idea how to stage homes, so there are professional stagers that can come out and help you set up your home and make it display ready. Keep in mind that the standard you should maintain is similar to that of a design magazine. Imagine that a professional crew will photograph your home, so you need to make sure there is no clutter and personal items are put away.

Being Accessible To Show Your Home Shows You Are Serious About Selling

These days buyers are much more savvy than they used to be. They know they have the upper hand with inventory levels as much as they are nowadays and with the amount of competition some sellers have to face in today’s challenged real estate market. So making your home available to show, as per the convenience of potential buyers, can really make a significant difference in your success rate.

There are several factors to keep in mind when your house needs to be shown. First, declutter the space and remove all personal artifacts that might hinder potential buyers from envisioning themselves in the home. Second, make sure there are no pets or signs of pets left behind as this can be a put off for those people who do not have pets or who might have allergies. Third, invest some time to ensure there is sufficient curb appeal. Buyers should begin to fall in love with the home starting from the moment they see it, throughout their time inside and on the way out.
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If you want to sell your home then you will have to consider things from both sides of the fence. What amount is it that you need to sell the home for in order for it to make sense? What would buyers be willing to pay based on other properties sold in the area? How attractive is the space? Could it become home for the people that are showing some interest? Finally, are you around to make the home available for serious buyers who don’t have time to waste? Are you wiling to accommodate requests to see the home at times that may not always be the most convenient for you? Selling success, while largely depends on the market and trends dictated by other buyers, will also largely depend on how you – the seller -- set the precedent.

Should I Stay Or Should I Go? When You Owe More Than Your Home’s Worth

2011-08-08T10:33:00.000-07:00

More and more often we are seeing homeowners who bit off way more than they could chew, without realizing it. Of course, in 2008 when the housing market was booming and mortgages were easier to obtain than a library card, no one could know that a few relatively short years later America would be dealing with one of the worst real estate crisis situations in recent history.

So now that we have been dipping into the trenches of the market bust and as we head toward rock bottom (but are not quite there) many people are facing the very difficult decision of what to do with their home that is worth less than what it owed on it.

Short Sales; An Option For Many

By now, you have probably heard of the term “short sale” and you may even understand fully what it means. Almost right up there with “foreclosure”, the term represents a distressed sale or situation where the homeowner owes the bank or lender more than what the property is worth.

After applications have been submitted, myriad processing takes place, and months and months of careful consideration on the part of the lender, a short sale granted offers middle ground to the homeowner while still allowing the bank to recover some of the monies owed on the property. During a time when many consumers were literally walking away from their mortgage obligations, the influx of short sales offered a creative alternative that kept the situation at bay. Homeowners were not ruining their credit to the maximum potential, lenders were able to recover at least some of the balance owed on their mortgages and foreclosure was spared. Lenders much rather prefer a short sale to a foreclosure because of the intense time, energy and costs involved to litigate a foreclosure.

Regardless of the seeming relief available from a short sale, the fact is that homeowners engaging in this option will suffer credit dings. That’s not to say that the damage done to their credit will be as severe as that of having a foreclosure – but for about 2 to 3 years, credit reporting will show the short sale. For this reason, consumers often find themselves sitting in limbo and afraid to take the next step toward resolution through a short sale.

Case Study; Cold Feet About Credit Crunch

In a nice resort community, a property was bought in 2005 for about $875,000 during the real estate market peak. Steadily, the value of this property declined [] to where it is today at a maximum value of $640,000. The mortgage that remains is approximately $700,000 – well above the amount that the property is worth. If sold, after deducting all real estate transaction costs and other expenses, the seller would net no more than $600,000 – leaving a huge gap and a major loss on all sides.

The big question: Does it make sense to cut the losses, sell the property now before the value declines further – or wait the market out until the property regains its value so that the owner can break even?

Keeping in mind that this home is located in a resort location where the annual rental income yields a fair amount, the owner has to decide whether it is worth it to carry the property, its expenses and costs while waiting for it to increase in value.

Let’s examine the numbers a little more closely: if the property is worth no more than $625,000 to $640,000 gross, they would end up with not much more than $600,000. Assuming that they will attempt to sell the home for upwards of $750,000 to recover at least $700,000 at the end of the sale, the chances of a successful sale are next to impossible. Why would anyone agree to purchase the property for $150,000 more than its net value?

This leaves the owner with the alternative to consider carrying the property year after year until it does appreciate and recover value enough to cover the mortgage before it can be sold to break even.

Carrying The Property Till the Market Jumps Back

Here is how this property’s monthly expenditure works out:

Principal paid each month    $4,200
Taxes                        500
Insurance                   200
Total:                              $4,900

Based on this rough monthly expenditure, this homeowner will end up spending almost $60,000 annually to maintain the property. Given the rental income that averages about $40,000 each peak season, and taking into account extras such as maintenance, commissions, utilities and miscellaneous expenses, the net is about $30,000 annual rental income.

The equation is simple: Every single year, the owner of this property will have to deal with $30,000 in negative cash flow, just to carry it through.

Waiting the Market Out – Indefinitely

The amount this property will need to appreciate to break even is $150,000 on $600,000 – a 25% appreciation. Assuming the average annual appreciation in a normal market is about 3%, it would take eight years for the home to appreciate the difference in amount needed to accommodate the mortgage so the owner can break even. When you factor in carrying the property for eight years while waiting for its value to increase, the total losses incurred are $240,000 just to keep the property alive for that period.

Conclusion; No Sense In Waiting It Out

The numbers speak loud and clear. Spending $240,000 to keep the property alive, only to wait eight years, allows the property to age and depreciate in the process and simply does not make sense. In this scenario, clearly the better choice is to sell short while the property has not gone even further down in value.
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No two real estate scenarios are exactly the same. Whether the variant is in the amount left on the mortgage, the owners’ credit outlook or individual circumstance that dictates the ability to maintain the property – it is essential to understand the options. While there are not too many alternatives, there are indeed a few ways to manage things during this intense time with lower than average housing values. Trust your Realtor to sit with you and discuss the options you do have so you can collectively work toward a stronger outlook in the future.

Things You Should Know About Home Insurance, Before Buying a Home or Condo

2011-07-07T13:51:00.000-07:00

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There is an endless amount of information available about the many aspects of buying a home, including the ins and outs of home insurance. But who has time these days to sift through everything that’s out there? To make it easier, we’ve put together a list of questions that are often asked for coastal and island regions, making it one step easier for you when you go to purchase insurance on your new property.

INSURANCE FOR SINGLE-FAMILY HOMES

What are the insurance amount requirements of the home I own?

You need to be able to recover the cost it would take for your property to be replaced.

Do I need to insure the amount of the loan, the amount I paid for the home or the replacement cost?

The cost to replace a home or property is the amount that should be insured. Mortgage companies may try to get homeowners to insure the loan amount but they will waiver from that if there is replacement cost coverage on the policy.

How do I know what the replacement cost is?

Replacement cost is determined based on the square footage of the property, as well as other determinations made on a case-by-case basis.

INSURANCE FOR TWO-UNIT CONDOMINIUMS

How does home insurance work for a two-unit condominium?

Given there is a master insurance policy for the existing condo, the new buyer would assume insurance from the seller, sharing the cost of the master flood policy, fire policy and liability policy. Individually, however, there should be a policy for each unit, that covers their own domain and usually entails the interior of their unit portion of the condominium.

WAITING PERIOD AFTER PURCHASE FOR INSURANCE COVERAGE

Is there a set waiting period before I can get insurance coverage on my new property?

Depending on the type of property and conditions of sale, the waiting period can vary. For purchases of single-family homes there is a 30-day waiting period unless the homeowner is closing on a federally funded loan. The same applies to two-unit homes. Condominium owners have a 30-day waiting period unless there is an existing master policy in place, in which case there is no waiting period prior to coverage.

When does the waiting period start?

The waiting period begins from the day of the application.

HOME INSURANCE PREMIUM RATES

Are home insurance premium rates higher for coastal and/or island properties?

In general premiums are calculated by a few factors, however the main determining aspect is whether or not the home was built according to FEMA (Federal Emergency Management Agency) guidelines. As a rule, all homes built after 1974 do comply with the federal government’s guidelines and those properties will see premiums that are less than those on older homes.

Secondary owned properties have higher premiums than if it were the primary residence. Also those homes owned by people with negative credit scores and ratings will also have a higher premium calculation.

FLOOD INSURANCE

What are the various options available for flood insurance?

The Federal Emergency Management Agency (FEMA) completely mandates all primary flood insurance coverage. Rates, rules and regulations are all controlled and underwritten by FEMA but for property owners who want to extend their coverage beyond FEMA’s coverage, additional coverage for added premiums is available through private underwriters.

How is the premium amount on flood insurance determined?

The main factor that determines the premium amount is elevation. Rates are regulated using the home’s elevation certificate, taking into consideration how high above sea level the property is built. Another aspect used to determine premium rates is ventilation in the home. Note: Proper venting may be installed, crawl space may be filled or other adjustments made based on assessments by the underwriter; all things that will impact the premium amount.

What is the typical flood insurance coverage provision?

The maximum coverage through FEMA is $250,000 for single-family homes, two or four-family units and condominiums while the maximum coverage amount for commercial properties is $500,000.

ISLAND AND/OR COASTAL PROPERTIES

Given the potential volatile weather faced by properties housed on islands or on the coast, is home insurance difficult to obtain?

While all companies may not provide home insurance for such properties, there are many insurance underwriters that do provide coverage. It is merely a matter of the homeowner researching the right company for their needs.
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Though this article covers a good deal of questions and clears up some myths that come up for home insurance, there are still going to be some nuances that remain unanswered. The best solution remains getting in touch with your Realtor, tapping into their resources and having a sit down with a home insurance specialist that is on their list of preferred vendors/partners.

Yesterday’s Tenant is Today’s Buyer; Tips on Resort Buying and Selling

2011-06-22T12:53:00.000-07:00

We can all use some good insight into the real estate market. What sets the Ocean City area apart from the rest of the nation’s real estate market is the resort nature and prime rental property opportunities that are unique to beachfront areas. Activity goes both ways, of course, and in this article we cover important factors on how to effectively sell and buy properties in this resort market.

SO YOUR THINKING OF SELLING?

For many sellers the waiting game that is happening these days is too much to take. And just as they approach the time that their property will likely sell, they consider pulling the listing off the market and “waiting the market out” for a while. Maybe they shouldn’t. This is not the best choice when it comes to selling your property in a resort environment. At a time when many buyers who may have been tenants in the same area for years are looking to buy their own property, exposing your home to the buyer audience is paramount.

The people that will be looking at your home are those who are used to spending thousands of dollars per week on rentals in the same area. They are eager to buy in time for the upcoming summer months. One of the major plus points they perceive of buying during this time of the year is the fast turnaround for income revenue, given that the peak season for rental incomes in a resort environment is June through August.

Homeowners in these markets have the misconception that putting their property up for sale in the fall is a better option. They could not be further from the truth. In the fall season, a lot of inventory pops up, buyers are typically the ones with the upper hand and it can become an intense scene of wheeling and dealing. Not to mention the very important fact that buyers in a resort property will not benefit much from having a property whose mortgage must be carried through until the following summer, in terms of rental revenue.

SEE SOMETHING YOU LIKE?

Who doesn’t like the idea of instant return on investment? When buyers seek out properties in a resort community, looking for revenue streams that will flow during the peak months June, July and August are the single best months. Far better than seeking out these properties in the fall, buyers can expect to almost instantaneously reel in the cash as soon as they put their new property up for rent. We’ve mentioned in previous blogs that the peak rental season is July and August and within that time, the peak peak time is the last week in July and the first week in August. This is when you can pull in enough rental income to carry through the mortgage payment nearly nine months! So if you are in the market to buy a property in a resort community this is the BEST time to do so. Sure, you can wait until the fall, but then carrying it through until the following summer can be a tedious undertaking.

Timing Your Way Through An Entire Year of No Mortgage Payments

2011-05-25T08:21:00.000-07:00

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This time of year is an important time for the real estate market, in many ways. In terms of buyers, there are usually a good number of properties available to choose from. In terms of sellers, the plenty of buyers out there means that there are people looking to buy your home and there should not be too much Days On Market to contend with.

But this time of year is also a very good time for those individuals who are able and in the market to buy a secondary or resort home and put it up for rent. Investing in this type of property can be done throughout the year, but if you get in on the deal now, you can ride the wave of rental income that comes through in the peak months, for the rest of the year.

Peak Season, Piques Interest of Investors

For resort properties, there is a clear-cut and definitive peak season, defined by the summer months that run from Memorial Day through to Labor Day. Giving this season a good solid ten-week period of time, property owners typically reap the bulk of their benefits from renting out during this time frame. Including the last two weeks of June through the first couple weeks of September, you have plenty of time to earn higher rent – enough to make up for the rest of year. But the peak, peak season is an even shorter window within this time that falls in the last week of July and the first week of August. This is when families are eager to get in their vacations. This is when weddings are at an all-time high. This is the time that working professionals get their annual time off. And these are the weeks when summertime is at its best.

Cash That Flows For the Entire Year

So here is how this works. With just the peak, peak weeks’ rental income alone, you will have enough in-pocket funds to carry the property’s mortgage payments through to the next year. Does this sound too good to be true? It isn’t. Consider the following equation:

A mortgage at 4.5%, 30-yr term, 30 year payoff, fixed loan on a $400,000 home that had an $80,000 down payment equals monthly mortgage payments of $1621. Add a few hundred for tax payments each month and it comes to under $2000 per month for this rental property, covering the principal loan and taxes which, by the way, have their own advantages for this type of home. (For the same equation demonstrated on a home you may want to buy for this purpose, come in to our office and we’ll work out the number for you).

If you buy now, or by June 15th (making August 1st your first and only out-of-pocket payment), you will immediately begin receiving the highest rent income for the property, in the entire year. After receiving three months’ rental income, all at once, you will be in a position to pay eight and a half months of rent, absolutely “free” and with no out of pocket “cost” to you.

One Size Fits All

This formula works – tried and true – for properties of all shapes and sizes. Whether you are interested in purchasing a three million dollar beachfront estate or a small and cozy summertime cottage with a listing price of $200,00 – the peak rental season and concept mentioned here, stays the same and it applies just the same to properties of all price ranges.

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This is positive cash flow at its best and the present condition of the real estate market has no bearing on the success of resort and secondary property sales and rentals. Even with the agent commission for rental, utilities and other things that may be needed during the three main months, the amount on our example property above still yields a sizable $16,000 net, after all is said and done.

The deal is simple. Buy NOW. Rent it out NOW. Enjoy mortgage payment-free months ahead until the next cycle repeats itself. And don’t worry – these properties are renting way in advance. In fact, in early May, most (if not all) rental properties in Ocean City are already spoken for. The resort/secondary home market is definitely a hidden ‘asset’ to be tapped into!

Understanding the Difference Between Online Resources and a Realtor When Pricing Your Home

2011-05-17T07:34:00.000-07:00

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The Internet can be a great resource for a host of things centered on buying or selling your home but in some cases, the most you can expect to gain is a basic understanding of things. For something as serious and important as pricing your home to either value it or sell it, relying on the Internet can only go so far. Here we’ve outlined some key differences between the figures you will yield from online sources versus those that have been compiled by your local Realtor.

ACCURACY IS VITAL

In today’s market especially, accurately pricing your home to sell is essential. With it being a buyers’ market, you will have to gain a solid understanding of all factors that contribute toward your property’s value. There can be negative repercussions of pricing a home either too low or too high. One such scenario is if there was a seasoned buyer who had taken the time to research in advance of searching for homes. That buyer’s knowing what to expect in the local market seeing your overpriced home could result in a turn-off and you could lose the sale. By the same token, you stand to get the shorter end of the stick in case of not knowing what you could have charged. Spending a little more time and/or expense can make a huge difference in the end outcome.

ONLINE TOOLS AND CALCULATORS

There are more than several websites where anyone can log on, put in their zip code and be given an instant “analysis” of their real estate value. The figures that appear as results from searches made through online resources stem from a conglomeration of several weeks and sometimes months of data collected from a particular region.

Websites such as www.zillow.com, www.realtytrac.com orwww.trulia.com offer a great way to get a generic idea of the value that homes in your region are going for or have gone for recently. As an added resource to other services also offered on these sites, the goal is not to assist homeowners in assigning a selling price on their property based on the data, rather to offer a snapshot on sales and pricing data for the area. In fact, for many people it is the perfect tool to add an extra edge when determining the fair market value of your home, along with other factors.

PROFESSIONAL COMPARABLE MARKET ANALYSIS

While online real estate tools are a great way to get a preliminary idea, they are only going to yield a figure that will show you where to start. To get an accurate assessment, you will need to avail the professional services of a Realtor. The only way to get an accurate “reading” of what the market rates are for homes in your vicinity and your neighborhood in particular, is to have a comparative market analysis conducted by a Realtor who understands your neighborhood. There is a good chance that they have dealt with properties in the area on a first-hand basis, regularly interact with the agencies and organizations that deal with very homes in your neighborhood and are familiar with the people in various facets that you will end up needing to interact with yourself, as the seller of your home.

Realtors conduct a detailed Comparable Market Analysis (sometimes also called Competitive Market Analysis) through a series of data compilation of area homes and properties, considering factors such as amount of land, the square footage and number of bedrooms or typical amenities in the neighborhood. But homeowners can also opt to delve into accurate detail about their property’s value by relying on an independent appraiser. Also, through the use of CMA data the County Tax Assessor determines the value of your property taxes.
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When you are pricing your home to sell, it is vital that you use all available resources. At first, it makes sense to “shop around” and get to know the generalities before you head for the specifics. And as with most transactions dealing with your real estate world, it is always best to rely on your Realtor for quality, effective and accurate information that is relevant to you and YOUR market.

Five Valuable Steps That Will Get You Through the Short Sale Buying Process

2011-04-25T07:17:00.000-07:00

Most of the time short sales are a seller-centric phenomena that comes up as an option one step better than a foreclosure. But not too much attention is often paid to the other end of the transaction – the buying end. When a buyer is interested in a short sale property, there is much to be aware of a lot that they must consider, heading into it. Literally, the process of buying a short sale property can be a long, drawn out journey. By keeping in mind these five key aspects, the process will be smoother and easier throughout.

Put Your Strongest Virtue Into Play: Patience

Short sales run on anything but a short time frame. The single most valuable trait you can have as a buyer of a short sale property is patience. The level of ups and downs experienced in a typical short sale journey can be harrowing for anyone but the patience required can make all the difference. From start to finish, the entire process can take several months and sometimes even longer. Agents often expect homebuyers to commit to 120 days for the entire negotiation and deal process. The opportunity is an incredible one and if you’re one of the lucky ones, the deal you will secure will be worth all the extra time and frustration that ensues.

Expectations And Predictability; Strangers In A Short Sale

A very normal expectation would be to know each and every stage of a home buying process. To understand exactly what is going on at what time and to be able to get regular updates. With short sales, things are so unpredictable that often none of these normal expectations are fulfilled. Repeated calls to your agent will prove counterproductive and end up in frustration on all sides. Keep in mind that at any given time a loss mitigation officer or loan negotiator will have up to several hundred applications on their desk at one time. In a nutshell, things take time.

Knowledge Is More Than Power; It’s Leverage

A listing agent often represents sellers and it is essential that the agent understands the short sale process entirely. With the plethora of applications on the negotiator’s desks, the need for sellers’ listing agents to be fully aware of all that is entailed in the transaction is very important. When something is needed to be submitted, it is the listing agent’s job to make sure the sellers provide that information on time and in its entirety. Having a listing agent who does not have enough experience can be detrimental to your experience.

There Are No Guarantees, But Often Worth The Wait

Yes, short sales can be a great opportunity to pick up a property for less than the market value. But this is not a simple feat. You must remain patient and willing to accept that it is not a surefire guarantee that the price you end up getting is the best deal possible. Keep in mind that the very nature of this process is volatile. One day a price might be agreed on with the seller, but the next day you both are unable to see it through after the lender reviews it and comes back with a different answer. The way it works is that the application is made to the lender, after which they have an appraisal done and depending on what the Broker’s Price Opinion (BPO) is they come back with an answer. The frustrating part is how long this can take. It has happened that a buyer is let down at the last minute after hearing back from the lender that the price is unacceptable.

Lenders Have Their Own Way Of Thinking

In this time of many homes risking going under, and after a period of many foreclosures, banks are very cautious. Now, more than ever, they have very stringent and careful loan approval processes. The thing that remains most challenging for buyers and sellers in a short sale transaction is that lenders do not operate in a way that makes logical and practical sense to the rest of us. In looking out for their own interests, they often appear removed from the human and emotional aspects of the deal. The best way to handle this is to fulfill all requirements as quickly as possible, including lending inspections, securing funds for the deposit, etc. As soon as the lender issues an approval, they want the money fast – anywhere from two weeks to one month from the approval date.
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All in all, you stand to get a great deal! Just be sure to follow our guidelines and keep your eye on the prize. Be prepared for blips in the system and if things don’t turn out the way you’d expected them to, know in advance that there is a chance for that to happen. No one more than your trusted real estate agent knows how frustrating this process can be, that’s why it’s important to maintain a solid relationship with

Real Estate Market Trends Looking Up at the End of First Quarter 2011

2011-04-08T13:03:00.000-07:00

We have all been coping with a great deal of ups and downs during this roller coaster ride through our real estate market lately but it’s the ups that make the journey both worthwhile and promising. As I’m vacationing with my family in beautiful Italy, the numbers for March 2011 came in and there is good news. As you can see from the stats at the end of this year’s first quarter, things are looking up!

Record Sales In Over FOUR Years

I’m proud to announce that for the first time in four years, our numbers have reached a super high in terms of units under contract for Ocean City. We ended the month of March with a figure of 1,132 units, with 175 that came on the market and a whopping 84 homes that went under contract!

The details read this like:
Single-Family Homes - 21
Condominiums - 58
Vacant Lots - 2
Multi-Family Properties - 1
Commercial - 1

Homes are Selling Quicker

With the average Days On Market (DOM) rate of 127, more than seventeen percent lower than the previous figure of 154, the trend looks to be a positive one. This good news means that more homeowners can expect faster results hopefully in the months to come.

With an average sales price of $370,175, shorter DOM and increasing performance overall, right now we’re one of the top performing markets in South Jersey. The trend is a positive one!

Strike While The Real Estate Iron is HOT! It’s the Perfect Time to Buy AND Sell!

2011-02-22T07:25:00.000-08:00

Jeff Quintin 30 Under 30 Special Update

As they say, timing is everything – and with the current economy, there is never any telling as to what is the perfect time to invest or hold back because there’s been so much uncertainty in the market lately. But in terms of real estate, right now is an ideal time to sell your home because there is a fast-rising demand out there for properties – and by the same token, buyers also have a major advantage because of the super low interest rates. To put it simply: The market is on fire! Here’s how you can seize the opportunity that is best for you.

Demand is RISING

With the latest reduction of interest rates, going further down another five percent, it is not surprising that the demand for properties is on the rise. Particularly for homes in the 300-500k range buyers are literally swiping up the deals they seem to be finding on these listings.

Inventory is GOOD

Even though there is a fair amount of inventory, it is flying very fast considering the excellent rates being offered to buyers these days. The property inventory for those homes in the range of up to 500k is definitely shrinking because there is clearly a greater demand than there is supply. Keeping this in mind, now is not the time to “wait it out” until the late spring market rolls around – rather it makes more sense to seize the opportunities that exist these days.

Interest Rates are LOW

The most common mortgage loan taken out is a 30-year fixed and with the recent reduction of yet another 5% for 30-year fixed loans, zero points, it makes it the perfect time to sell properties. The only thing to keep in mind though is that most buyers are looking to buy in time for summer – whether they want to use the property during the summer months or use it to gain rental income.

What Are You Waiting For?

Memorial Day is the drop dead selling date for properties. And if you’re looking to buy – don’t waste another day. Each day you stand to lose more opportunities, particularly those homes that are in the 300k-500k bracket. Looking at the same 100 odd days before Memorial Day from a buyer’s perspective – it is essential to include at least a 45-day window to accommodate the settlement process, after the buyer goes under a contract.
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Keeping timing in mind – as soon as Memorial Day does come around the corner, property values are going to drop, right along with the demand that is rich and hearty at the moment. The bottom line is this: If you’re thinking of selling, get in now while the demand is here and high. And if you’re thinking of buying, get in right now, because interest rates are very low and who knows how long they’re here to stay!

Top 10 Real Estate Predictions for 2011

2011-02-03T11:45:00.000-08:00

Wonder what the real estate market will do in 2011? Only time will tell, but we can examine some trends from the past and look at what is happening today to get a pretty good idea of what this year will mean for home buyers and home sellers.

Here are 10 things I predict will happen in 2011’s real estate market:

1. “Recovery” is the Hot Buzz Word. In a market that appears as if it can do nothing but go up, a majority of everyone’s focus this coming year will be on recovery. The not so great news is that recovery is around the corner, but not necessarily the immediate proverbial corner. The better news is that recovery is in sight. Home prices may fluctuate a little, moving up or down just a bit, but they should remain relatively flat for 2011.

2. Real Estate Brokerages will Merge. In a desperate market, many find the need to consolidate in effort to stay afloat. Smaller real estate companies are struggling to keep their doors open with expenses and a slow market. As a result, many of them may merge with larger companies better able to sustain the ups and downs of the market.

3. Sales of Entry Level Homes will Dominate. With the lower prices of homes today and decreased insurance prices, those looking to get into their first home will be commonplace in the market. These affordable prices mean someone who has never owned a home should and will take advantage of the state of the real estate market today.

4. Some Luxury Homes Will Sell as Short Sales. Nicer homes are often bought with a larger down payment. While this gives a certain amount of wiggle room in the short term because mortgage payments are typically lower, the owners of these homes are worried.

The wealthy who buy the large luxury homes usually count on a nice retirement in their later years. As the market continues to decline or plateau, so are retirement accounts. Some are choosing to get out of their homes as quickly as possible to funnel more money into retirement before it is too late. This trend will likely continue in the new year.

5. Mortgages Will Continue to Be Cheap. Since credit score requirements to receive a loan have gone up, it is more difficult to get a loan. As a result, experts predict the federal government will likely keep interest rates low to stimulate the real estate market.

6. Mortgage Interest Deductions will Remain. There has been worry that Congress may take away mortgage interest deductions from Americans. Most believe, however, this is unlikely to happen since it would cripple the already handicapped housing market.

7. Loan Modifications will Fail. More than half of all loan modifications are in default. Simply put: Loan modifications don’t work. They fail to reduce the principal amount of the loan so a homeowner is still left owing more than they are able to pay. Six to nine months after the modification, the homeowner is typically right back where they started: unable to pay their mortgage.

8. Cash Investors will Win. Cash talks much louder today than credit. Obtaining a loan you will pay out over time is much riskier to a seller than putting down cash on something. Sometimes you can even pay less on an investment if you pay in cash.

9. Many Mortgage Brokers will Fold. A law passed in 2008 which dictated new guidelines for mortgage brokers went into full effect on January 1, 2011. These new rules are much stricter and make being a mortgage broker more difficult. Many will simply go out of business.

10. Foreclosure and Short Sale Lawsuits will Start. Think you are off scot free once you have a foreclosure or short sale? Think again! In fact, lenders can still pursue you after you think you’ve washed your hands of a bad home loan. In many states, you can be sued for the liability of the remainder of a loan. This means if your home went into foreclosure or short sale and the lender didn’t retrieve the total amount owed, they can still pursue you for the remaining amount.

Ten Reasons Why It Makes Sense to Hire a Real Estate Agent When Selling Your Home

2011-01-10T13:39:00.000-08:00

It’s no secret that real estate agents are often the “middle-man” between buyers and sellers of property. So why, then, would anyone want to hire one if they can do the job themselves? The answer is a simple one, and in technical terms it’s called Buyer’s or Seller’s Value Proposition. What does this mean exactly? It’s a list of items that an agent will help you with while you are undergoing what will probably be one of the largest transactions of your life. We’ve already gone over why it’s useful to have this assistance from a buyer’s perspective, but now we’re going to explain why the same benefit holds true for sellers.

Needs Analysis

A thorough assessment of your needs is conducted, leaving you very little guesswork and a solid understanding of exactly what you need, how you can get it and how long it will take to achieve those requirements. Furthermore, the assistance received is also focused on pricing the property – something that sellers are often at a loss of how to handle, given market fluctuations.

Price Strategy

Helping sellers to understand pricing strategies is something of which agents have significant expertise. Knowing how to realistically price your property while keeping in mind your expectations based on your needs analysis is an important part of the services offered by an agent when you are selling your home. Also provided to you a part of the Seller’s Value Proposition is a Net Sheet – a financial workup of exactly what the bottom-line net result will be once you sell your property.

Property Preparation

An often understated and misunderstood part of the selling process, preparing property for sale prior to putting it on the market is a big consideration; one that your agent will help you accomplish through a series of advice sessions and staging strategies.

Marketing Strategy

Developing a marketing action plan is an essential part of the home-selling process. With a step-by-step list of objectives and goals that outlines the process from beginning to end along with a timetable, an agent will help guide you to and through a successful sale.

Receive an Offer

When offers begin to pour in, it’s important to evaluate each one and make sure that negotiation points are identified and strategized. Agents see offers on a daily basis and are familiar with the negotiation opportunities that present themselves, therefore getting you a better price wherever possible.

Negotiating to Sell

Each counter offer that goes back and forth for all parties is negotiated by your agent, plus advice and consultation is given regarding any final terms and conditions needed to finalize the sale.

Sell the Home

The peace of mind sellers get from having the helping hand of their trusted agent looking over their shoulder as they sign on the dotted line is paramount. Not only that, each document is prepared and perused in advance, so that all you have to do is sign. Plus another very important aspect of selling the home is dealing with repairs and vendor services that must be done prior to the sale being finalized. Your agent will advise you on what needs to be done and they will be working with vendors such as home and termite inspectors, your title company and others.

Pre-Close Preparation

Coordinating and supervising all the document preparation right before the closing can be a hefty job for someone selling a home. There are already many things you have to deal with let alone the processing of paperwork. An agent’s role is key in providing all pre-closing consultation, making sure the closing runs smoothly so you can concentrate on other things like your upcoming move.

Closing of title

As the title of your home is drawn up, most home-sellers are anxious to seal the deal and look ahead to their new destination. As a member or your home selling team, your agent will thoroughly study all documents and contracts to make sure everything is up to par and in order. They make sure your sale goes to settlement and ensure that the process is completed through and through.

Post-closing

As you move away from you old home and into your new one, many issues can come up that can be easily resolved with a little help. Your agent sees you through the final stage of one of the most significant events of your life at the time. Offering help with many aspects of the move, they will assist with anything from straightening out any last-minute post-closing concerns that may come up to helping you move your furniture into the new home.

The fact of the matter is that when you trust professionals to assist you in transactions that they are well versed in and have years of experience with – you simply cannot go wrong. While it is definitely an option to conduct the entire process without the assistance of an agent, having the consultation services and expertise of a real estate agent available has a significantly positive impact on the sale and ultimately you.

Ten Things Real Estate Agents Help Take Care of When Buying a Home

2010-12-27T10:28:00.000-08:00

You may have heard the common question asking why anyone would want to hire an agent to help buy a home. The fact of the matter is that real estate agents have many services to offer on all sides of the real estate equation. We all know what they do to assist us in selling our homes but did you know that there is equally as much, if not more, that they can assist us with when buying? Industry jargon coins it Buyer’s Value Proposition – and to make it simple we’ve listed ten things, from start to finish, helping to clarify exactly why, if you’re in the market to buy a property, hiring a real estate agent is a very smart initial move to make.

Needs Analysis

Agents thoroughly assess your needs as a buyer and assist you with identifying how you define the ideal home. They focus on the things that matter most to buyers in a home so that finding the right home is a much more fruitful endeavor.

Pre-Qualification and Pre-Approval

Choosing a loan officer can be a daunting task if you are out there on your own. An agent has a solid rapport with qualified loan officers in the region and they connect you with one to suit your needs, see through the process of getting pre-qualified and then approved. Terms are then negotiated to be in the buyer’s favor and assistance with finding the best possible mortgage financing is also provided.

Neighborhood Profiles

Understanding and listing a buyer’s selection of neighborhoods, real estate agents also compile data for each locale that helps to center in on which neighborhood is the right one.

Home Search Multiple List Services

Helping you to gain access to a large number of properties, agents arrange a home search process that makes accessing and perusing a MLS much simpler and useful at the same time. Not only that, your agent will keep you updated regularly, provide you assistance with drive-by home visits and coordinate home showings of the ones you are interested in.

Making Offers

When you center in on a home after going through the entire prequalification and then search process, the last thing you want to do is to make a decision that could hurt your chances of getting that ideal home. Agents go through the process with you, offering advice on terms so that you can be confident in your decision. Once the offer is decided, the contract is filed out with your agent’s help.

Negotiation to Buy

One less thing for you to worry about, your real estate agent will handle the process of taking your offer to the seller and his/her agent and negotiate the purchase on your behalf.

Coordination of Vendors

With so many vendors also in the picture for things ranging from the mortgage, title and insurance to other important aspects of the real estate deal, some coordination is required. As real estate agents, most deal with vendors on a regular basis and your own agent can help connect you to reputable vendors.

Preparation Prior to Closing

The main thing to be careful on is the documents right before closing on your new home. With assistance on all pre-close preparation, including document generation, agents also provide consultations to make sure the buyer is comfortable with all stages of the process and is ready to proceed.

Closing of the Sale

Providing a watchful eye and a helpful hand, real estate agents play a pivotal role in making sure all things are lined up during the closing stage of your new home purchase. Working to make everything as smooth as possible, you will be guided and then provided help throughout, until the final transaction is successful.

After Closing Assistance

Once all is said is done, the real work begins. Your agent will provide you support and backing to make the move-in process as smooth and effortless as possible. Whether assistance with moving your household items or learning about the new neighborhood you will be given ample help on that front, or in any thing you may need.

It’s an often misconstrued fact that real estate agents are very useful for the all-around real estate process; whether you are looking to sell or buy, you can definitely benefit from the supportive hands of your local agent.

Happy Holidays!

2010-12-21T14:45:00.001-08:00

When Will the Housing Market Recover?

2010-12-15T07:03:00.000-08:00

A recent survey reveals some surprising results of what Americans believe about the housing market and how quickly it will recover. Trulia.com, a top real estate website, and RealtyTrac.com, the top online marketplace for foreclosure properties released the somewhat startling results last week that gives a glimpse into the minds of Americans’ attitude toward the current housing market crisis.

When Will the Housing Market Recover?

The first item the survey addressed is exactly when Americans believe the housing market will recover from its current crisis. The results are revealing of how much faith Americans put into our current real estate situation.

Year % of American adults who believe housing will recover

Already recovered 4%

2010 1%

2011 10%

2012 27%

2013 24%

2014 12%

2015 or later 22%

These results are revealing of how we view the current real estate crisis. In fact, over half of Americans believe it will take two years or longer for the real estate market to recover from its current situation. This certainly shows most people are ready for a long and possibly bumpy road until the housing market returns to an optimal level.

Would You Walk Away from Your Mortgage?

Almost half (48%) of homeowners who have a mortgage said they would consider walking away if their mortgage was underwater. This figure is up from a similar survey released in May 2010 which showed only 41% would consider this a viable option.

An interesting aspect of this survey is men reported they were much more likely to walk away from their mortgage than women. Of the men surveyed, 57% said they would consider walking away from their mortgage, while only 40% of women reported they would consider this an option.

Calling in the Reinforcements

In lieu of walking away from a mortgage, the survey also showed two-thirds of home owners would consider calling a lender in an attempt to modify the current terms of their mortgage as their first option. Ten percent said they would actually have a tenant move into their home in an attempt to recover their mortgage.

As this survey shows, a majority of Americans believe we may be in for a longer than expected ride as we wait for the real estate market to recover. For some who are in the midst of struggling with their mortgage, the survey also shows nearly half of Americans believe they might walk away if they were in over their heads. While others would also consider a mortgage modification or some other creative means to restore their mortgage.

For more information on this interesting survey, visit this article.

Four reasons to sell NOW. (And a few on why not to sell, too.) You decide.

2010-11-23T13:17:00.000-08:00

Even though the country is sitting still waiting for the recession to recede, homeowners and prospective homeowners are practically pacing back and forth during this nail-biting period when no one’s sure of anything. You might think that there is absolutely no good reason to sell right now – but then, again, you may think it’s a perfectly good time. No matter which side of the coin you’re on, there are valid arguments on both. Here, we’ve assembled a list of tips on both ends of the spectrum and hope it’ll help you come to some sort of consensus on your real estate marketplace.

Yes, there has been activity in the real estate marketplace in general. Don’t be surprised to hear that a good number of homeowners are opting to buy new properties, others are selling theirs and of course, others still are waiting it out, even if it means their property is currently suffering a loss. Even though some of the sales are taking a bit longer than average, the sales are definitely there.

Now, if you’re like most people, you are just plain not sure what to do next. So as you hang out with your friends and the conversation turns to real estate, you don’t know what to answer to the question that comes up, “Why would anyone sell at a time like this?” Well. We’ve got a few reasons to share with you.

1. Buyers have been shuffling money from their savings only to fund their properties – and they just don’t want to tap into their secondary resources like their retirement fund anymore. Add negative cash flow to inflated expenses versus rental income – and you have a recipe that calls for SELLING.

2. People with no mortgage and some equity want to get that cash out of the property FAST and put it somewhere safer. So the equation here is lower risk=lower return; they don’t want to take any chances and they’d rather sell to be on the safe side.

3. Homeowners feel they might as well cut their losses while they’re still ahead, instead of waiting 5-7-even 10 years for the market to turn around. They are simply of tired of paying the negative cash flow month after month after month.

4. With interest rates as low as they are, buyers have a TOTAL advantage in this market, so naturally if you want to sell – DO it. There’s a good chance it’d be a successful sale.

Of course, there are many people sitting tight with their pocketbooks clamped shut and their doors locked, just waiting for the right time. Here are a few things to know on why some people are NOT going to be selling anytime soon.

1. Some homeowners are banking on the fact that the market will make a speedy recovery, their equity will return and all will return back to normal soon enough. Who knows? It could happen.

2. Owners of multiple properties are getting great use of their vacation or second home – and figure that the enjoyment gained from the use of these places, far outweigh the negative cost to run those properties. So even though they are experiencing losses every month, the price is worth the enjoyment.

3. Properties that generate a decent amount of rental income only need a little extra to top off the negative expenses and owners are willing to take the chance and wait the time out till the market gets better.

The bottom line is, you have to decide what your situation is, what your priorities are and as you head toward a real estate goal, where you want to end up. There’s a misconception that the real estate market is practically stalled right now. This is so far from the truth. Actually, the trend for the past several months and even leading into the holidays, is that buyers are doing up contracts as we speak. Contrary to popular belief, foreclosures are currently on the decline and not on the rise like most believe to be the truth. In fact, short sales are on the rise. When you factor in that aggressively priced properties are selling super fast and sellers are getting multiple offers on them, you can see that there definitely is activity in the real estate arena these days.

Obviously, the choice is yours and we hope we’ve effectively shared with you that you DO have choices in this market – and we’re here to help make sure you make the right ones for you.

Clinch the Deal with Curb Appeal!

2010-11-15T13:36:00.000-08:00

Believe me, great curb appeal is everything when it comes to getting potential buyers into your home! Plus, outstanding curb appeal can not only make the sale but increase your profit from that sale as well!

The benefits don’t stop there. Curb appeal can actually be achieved with very little money (depending on the size and condition of the home, of course). So, don’t think of it as cash spent; it’s actually an investment in more profit!

Below, I provide you some very low-cost and sensible methods for making your home “shine!”

Clean – Then Clean Again!

I don’t know about you but when I see dirt and grime in a house, it’s a turn off because, as a buyer, I certainly don’t want to end up cleaning it all out!

But, there’s another negative to a messy house – it tells potential buyers, “The owner doesn’t seem to care about his property, so why should I care?” Granted, this is not always a fair conclusion, but, remember, we’re dealing with the “emotional” side of the buyer. What they see is what forms their opinion of a property.

So, don’t risk the possibility of a negative opinion! From top to bottom, clean your home or have it cleaned by a professional service. Especially pay attention to getting rid of any odors!Unpleasant smells have a particularly negative impact upon potential buyers since odors create an immediate impact upon the most primitive and powerful part of the brain.

Get Out the Paint Brush…Roller…Sprayer!

The big temptation here is to go with the cheapest paint possible. Don’t give in to this urge. Go with good quality paint for both the interior and exterior! It simply looks better and emphasizes the quality of care you’ve put into your home. Buyers will notice that!

Roll Out the “Red” Carpet!

If your present carpet is at all worn or threadbare, consider replacing it with new carpet. I know, I know, it can be expensive, but new carpet can also add several thousand dollars to the final sale price! Once again, think of it as an investment, not as an expense.

At a minimum, if your current carpet is in good shape, have it professionally cleaned to make it look even better.

Repair All the Little Things!

By themselves, a missing knob, a crooked gutter, an ill-fitting door, etc., don’t have much of a negative impact upon a buyer’s perceptions. However, when they see all these things together, they definitely get a sour attitude very quickly. So, repair all the little things to enhance exterior and interior curb appeal. Replace/repair gutters, rotted wood, broken door latches, leaky faucets, etc.

Manicure That Lawn!

A mowed and edged lawn really enhances the curb appeal of your home and shows potential buyers that you take good care of your place. To really put the “icing” on the curb appeal “cake,” add plantings like flowers, bushes, etc. They add color and delightful smells.

If you really want to make your home stand out in terms of terms of exterior and interior, consider hiring an accredited, professional “home stager” (ASP).

What’s a Home Stager?

Home stagers work with the “flow” of a home. Think of them as similar to set designers for plays and movies. They know how to “set the stage” in exactly the right way to impress any potential buyer visiting your home.

Overall, they eliminate clutter, arrange furniture, and help you enhance interior/exterior curb appeal in every way possible. Their charges may be on an hourly basis or a flat fee.

For information on home staging professionals, google “Home Staging Professionals” to see who’s available in your area. Or, check out these sources on the Internet:

STAGEDHOMES.COM and The Real Estate Staging Association

If you’d like more information on home staging or any other methods of increasing your home’s curb appeal, contact me today.

What Determines the Value of Your Home?

2010-11-01T09:32:00.000-07:00

Basically, a home's worth is determined by its market value. How is "market value" determined? Most often, it's figured by a comparison ("comp") with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it's likely that the value of your property will fall in the same range. But market value is also determined by a number of factors including the following:

External Factors

There can be several external factors influencing the value of your home. One is "curb appeal", or the first impression your property makes upon prospective buyers. A home that's in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc.

Internal Factors

The condition of a home's interior also has a huge influence on prospective buyers. When you've demonstrated "pride of ownership" and kept up the maintenance (quality paint, trim, molding, etc.), a buyer's interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc.

Supply and Demand

"Supply and demand" simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell. Location More than likely, you already know the old saying, "There are three main factors in real estate - location, location, location." While that's not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc.

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood

Aren't Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties.

Where Do I Find Sales Comparison Information?

The easiest source to access is your Realtor. After all, it's his or her business to know such information! But, there are also other sources you can tap into in order to get a complete picture of your home's value in comparison to others in your neighborhood. Here's an overview of them:

1. ) The Local Assessor's Office

It's very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service.

2.) Online Private Companies

You can search for these companies using the Google search engine and the keywords "comparable home sales" or "comparable sales." Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google "real estate database" and type in the name of your particular state to get additional property information.

3.) Your Local Newspaper

It's likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want (or Close To It) for Your Home

The key to getting the best value is finding and matching the right buyer to your home. And that's the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out "lookers" and other unsuitable buyers as a first step in working with you. See how I do that for you by calling me today!

A Story of Two Buyers: How to Haggle $12,000 On A Newly Built Property

2010-10-15T11:12:00.000-07:00

Inventory in certain Southern Jersey markets is starting to decline - most specifically in the area of new construction. Demand is going up because buyers are factoring in the low cost of interest to finance the 'buyer and seller gap,' and are less fixated on the final purchase price

I had two buyers competing on a home.

The first buyer wanted a better price just for the sake of getting a 'steal', while my second buyer realized the long term savings using the low mortgage rates the Federal Reserve has blessed us with.

For both buyers, there was a $12,000 difference between their offer, and the seller's asking price. Buyer one didn't get the property, because he was fixated on saving $12,000 upfront on the initial purchase price.

Buyer two, matched the seller's asking price and 'ate' the $12,000 difference. Why?

My second bidder got the home because he factored in his TRUE price, which includes the cost of mortgaging the property. Right now, rates are between 4.25 and 4.5 for a 30 year fixed mortgage - an unprecedented rate in recent history.

For every $10,000 you borrow to finance a home, you pay about $50 of interest. For buyer one to give up a BRAND NEW, BEAUTIFUL PROPERTY in a limited market with demand going up while interest rates are so low is - in my opinion - an uninformed decision.

That's why I'm writing you this blog post today.

If you're on the fence about purchasing a property, factor in the cost of financing the difference between what the seller is asking, and what you're willing to offer.

In certain markets (the most desirable ones) demand is going up because interest rates are so low, and buyers are no longer sitting on the fence to own the right home in the perfect location.

So, take a second look at the property you want in South Jersey and factor in the cost of financing, and difference between your offer and the seller's asking price. Is owning the home of your dreams worth the marginal interest? Call me and I'll help you determine your true purchase cost.

Why Use the Services of a Real Estate Agent?

2010-10-01T08:43:00.000-07:00

This question is often asked, especially by homeowners who consider selling their homes by themselves.

The fundamental first answer to this question is that an experienced realtor is an expert at what he or she does. Through hard work and education, they’ve acquired a set of skills that make the process of home buying and selling a lot easier than it would be by doing it yourself.

So, what are the skills in the set I’m talking about?

Well, for one thing, we have the skill of being the go-between. We’re the people who handle people and calls and separate the “wheat” (real buyers) from the “chaff” (non-buyers) without you ever having to deal with such situations. In Internet terms, we make sure you’re not “spammed” with worthless offers and target real deals for you.We’re also the ones who save you a lot of time by making sure you’re looking at appropriate properties and neighborhoods right from the get-go.

And, speaking of neighborhoods, an experienced realtor will know them inside-out or will know how to find the latest information on them. That means he or she can get you into neighborhoods where the crime rate is low or non-existent, find you ones with great school systems, rising property values, etc.

And what about the prices of homes? Well, some people believe that we select them for our clients. Not true! We have no way of setting prices. They’re set by the market! However, we can guide you toward properties that fit your individual needs and are comfortably within your price range. Frankly, it’s not in our best interests to put you into a home beyond your means or that’s not right for you. When that happens, we lose clients and money!

So, we’ll do our best to work within your price range and, based on current information (market supply, demand, etc.), we’ll come up with the best negotiation strategy possible. Current information can include cost-per-square-foot of homes, ratios of list-to-sold prices, knowledge of the buyer/seller, etc. All this information is gathered by the agent and used to formulate solid offers.

Another important skill experienced Realtors possess is objectivity. We have the ability to stay out of the emotional process that often occurs with the buying and selling of a home. Instead, we present your case in the best light possible, all the while holding your information confidential from any competing interests.

One realtor skill that’s often not apparent is our ability to network with other service providers (housing inspectors, title companies, etc.) Professionally, we can’t recommend one specific vendor over another. However, we do keep lists of vendors with excellent reputations as well provide references for the vendors. This service allows you to choose the best provides for your particular situation.

Now, here’s one realtor skill that everyone truly appreciates – the ability to handle tons of paperwork! Today, purchase agreements can run 10+ pages, and that doesn’t even include all the state and federal disclosure statements that are required in the current market! Heck, a real estate file can end up being 2-3 inches thick with paperwork these days!

And it’s not only the heavy paperwork handled by realtors; it’s also the attention to detail within that paperwork. It’s their job (or a lawyer’s, depending on the state) to make sure all the information is correct because if it isn’t, it can end up costing the client hundreds of dollars.

So, as you can see, there are many reasons why it’s wise to use an experienced Realtor for the purchase or sale of a home! To find out about the services I haven’t mentioned in this article, contact me today.

Selecting the Best Contractor for a Home Improvement Project to Increase the Value of Your Home!

2010-09-09T09:25:00.000-07:00

A special thanks to Steve Howard of Pinnacle Construction Management for taking the time to participate and educate all of us in this video. Call him at 609.399.0428 with any questions.

Whenever selecting a contractor for a home improvement project, ask first for word-of-mouth recommendations by family, friends, neighbors, or business associates.

This is the acid test. Great contractors know that personal recommendations are the absolute best method of gaining new business and will work hard to make sure their reputation is sterling.

By the same token, poor contractors or scam artists hate word-of-mouth because it exposes their incompetence and lack of ethics.

If personal recommendations aren’t available, ask the contractors for references and then check out three or four of them.

Again, great contractors will be eager to provide you with these contacts because it means more business. On the other hand, poor contractors or scam artists will either refuse to give references to you or play down their importance.

But, don’t stop at checking references! Also, check out the contractor’s personality. Can you work easily with him or her? You want a person who will listen to your suggestions and do their best to incorporate them into the job. If the contractor is abrasive or dismisses your suggestions, choose another one!

Here’s another suggestion: If a contractor tries to bully you into signing with him or her with a big price drop at the last minute, simply tell them, “I’m going to get other bids and compare them, so just give me your best price now without the price drop.” If they don’t agree to your suggestion, tell them to take a hike.
By the same token, don’t work with a window, siding, etc. contractor who tries to get you to change what you want to put into your home.

Often, this means that they’re only comfortable installing the product they normally deal with and want the easiest job possible. Again, it’s your money and you’re the boss, so insist on the product you want.
Finally, don’t let contractors make misleading product comparisons. They should be able give you an informed opinion on, say, the difference between the performance of old siding and new siding and the difference in costs between the two.

However, those comparisons should never lead to a product that more expensive than your budget will allows or isn’t really appropriate for your home.

The bottom line – with contractors, you should get straight-forward honest bids with no surprises! To learn more about how to deal with contractors, contact me today, and we can talk dollars and “sense!”

Wealth Building Strategies

2010-08-25T09:39:00.000-07:00

How Does a Wealth Building Real Estate Investment Strategy Work?

Any equity/wealth building real estate investment strategy has the aim of securing your financial future through sound investments. There are three basic long-term strategies in this category, and I describe them below. Remember, they all work well; it’s all a matter of matching a strategy to your style and personality.

1. The Lease Option Strategy

A real estate lease option is also known as “Rent to Own” or “Lease with Option.” The option gives you the right to control a propertywithout the obligation to buy it. With this right, you can purchase the property during a specific period of time (agreed on by both parties when an option agreement is made). However – and this is key - you’re not required to make the purchase. Therefore, if you don’t exercise this option, it expires, and you have no further obligation to the seller. In most cases, as a buyer, you have to pay an option fee (which may or not be applied to the purchase price of the property). Within this strategy, you have several methods to achieve cash flow--Lease Option In, Lease Option Out, or both.

a. Lease Option In

This occurs when you negotiate a lease on a property (usually 2-5 years) and include an option to buy at the end of the period at a pre-negotiated price. Once you gain the right to lease the property, you can then lease it at a higher payment to a lease-to-own buyer. The difference between the lease payment and the occupant rent constitutes your cash flow.

b. Lease Option Out

This happens when you rent a property you own to a tenant with the option to buy at the end of the lease period. With this strategy, you gain increased cash flow during the lease period and equity as well. It’s also low cost since you need only a small percentage of cash to gain control. Then, there’s the fact that you limit your risk while saving capital for other investments (leverage). Another advantage is the potential for a substantial return on your investment through property appreciation. A final advantage is that you don’t have to be a full-time investor in order to get started in the real estate market. You can use this method as a stepping stone to a full-time career as an investor. Due diligence on your part can prevent many of the disadvantages of the lease option strategy.

What are those disadvantages? Well, the seller may be experiencing financial problems. This can result in liens on a property or delinquent property taxes, and it can get very expensive and time-consuming to get all these legal issues sorted out. Another possible disadvantage occurs in a situation when the property doesn’t appreciate. If it doesn’t do that before the option expires, then the lease-option holder won’t be able to buy unless he or she is able to bring in the cash for the difference between the appraised value and option price.

2. The Buy and Hold Strategy

With this strategy, you buy a property and lease it out. Unlike the Lease Option strategy, you’re now the actual owner and have all the responsibilities that go along with ownership. Buy and hold has several advantages. One is low risk, since, generally speaking, holding on to properties long-term brings in appreciation and income that’s hard to beat. Buy and Hold also provides you more flexibility than with the lease option strategies listed earlier. By that, I mean that you have the option of selling at any time or holding onto the property for the cash flow and equity buildup as long as you care to! This strategy is also a good way to build up investment capital.

As with any investment strategy, there are disadvantages. One is low liquidity. In other words, you can’t simply sell most properties overnight if you need cash Another disadvantage is the potential for unforeseen problems; e.g. building code violations, rezoning, etc. Such troubles can lower the value of the property. A third possible disadvantage is dealing with difficult tenants in properties and also the usual problems that come with such properties (leaky faucets, electrical malfunctions, etc.).

3. The Buy, Improve and Hold Strategy

This is the strategy many investors feel is the best one for building cash flow and equity. You buy a property, improve it, and then hold onto until it reaches your target level of appreciation. Overall, it’s a fact that properties tend to appreciate over time (despite fluctuations in market prices), so you gain value with a “hold’ strategy. And, of course, when you make improvements, you gain the potential for higher rents (more cash flow) and greater equity buildup.

And, in regard to those improvements, some of them are classified as capital improvements by the IRS, so you have the potential for the reduction of your taxes paid on the cash flow earned from the property. Finally, you have the potential for re-zoning. If you can get a property approved for a different use, you can then create more income and profit. The disadvantages are the same as the Buy and Hold Method.

Want to learn more about Buy, Improve and Hold strategies?Contact me today and I’ll provide you with answers or direct you to someone who can! Look forward to talking with you!

How Do I Find the Property Value Trends in My Area?

2010-08-16T13:39:00.000-07:00

Knowing property value trends can be very helpful to you as a buyer, seller or investor. As a buyer, you can pinpoint bargains in areas that are trending upward (or downward) in price. As a seller, you can use the information as part of the bargaining process to get the maximum price from the sale. As an investor, you can use the latest forecasts and trends to determine whether you want to invest, when you want to invest, and how much to put into a property.

Remember, the trends are not guarantees of future performance; they're an educated guess as to which way the market is moving.Whatever your real estate goals, you want the latest and best information, and you want it from experienced professionals. In terms of your neighborhood and/or city, your local real estate agent is the best source for weekly and monthly trends. After all, it's their job to stay on top of such trends in the markets they serve.

Other organizations provide state, regional and national forecasts. They're often updated on a monthly or quarterly basis. Sources of Information Thanks to the Internet, there are many, many sources for data on real estate property value trends.

For state trends, go to the Federal Housing Finance Agency website (http://www.fhfa.gov/Default.aspx?Page=215). Click on your state to get the Housing Price Index (HPI).

If you're wondering exactly what the HPI measures and how it's calculated, here's what the site says: "The HPI is a broad measure of the movement of single-family house prices. The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or re-financings on the same properties.

This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975. The HPI serves as a timely, accurate indicator of house price trends at various geographic levels. Because of the breadth of the sample, it provides more information than is available in other house price indexes." So, if you want property value trends for Nebraska from the FHFA site, click on "State HPI Summary" and scan down the list of states until you find Nebraska. The handy table gives rankings and trends in quarterly, 1 year, 5 year and "Since 1991Q1" columns.On the same site, you can also click on "Research and Analysis," and you'll get a list of government and industry sites which will provide you with information on property trends. Note: The FHFA site doesn't provide predictions; it simply reports data. To get analysis and predictions, try the respected RealtyTimes.com. It reports on current market conditions and provides advice to consumers as well. Another site for information on residential properties is Zillow.com.

To find local information, fist click on the "Local Information" tab. That takes you to the page where you'll find the "State," "City," and "Nearby Neighborhoods" tabs. Click on the appropriate names, and you have local information! There are many, many other websites from which you can gather property value information.

I don't have the space to list them all, so here's a partial list of major industry and governmental agencies:

- National Association of Realtors = Freddie Mac
- National Association of Home Builders
- Census Bureau

Of course, the network, cable, and satellite channels report many of the finding from the sources listed above on a national basis. But, if you want local information, I recommend you work with your local real estate agent! He or she is best positioned to give you the latest information on property value trends.

To see what I can do for you in that regard, please contact me today.

What is a Real Estate Short Sale? Here are My Frequently Asked Questions...

2010-07-26T09:36:00.000-07:00

Who Qualifies for a Short Sale?

In order to qualify for a short sale, the seller must prove to the bank one or more of the following conditions:

- Loss of job, and difficulty in finding new suitable job
- Job Relocation, when equity is deficient
- High medical expenses due to disability, injury or illness in family
- Divorce
- Unable to afford the loan from the beginning
- House needs unexpected major repairs
- Overextended Credit
- Changing Economy
- Adjustment in mortgage payment due to interest rate or an unforeseen increase in living expenses
- Incidentally, these are also the most common reasons for a foreclosure.

Why Would a Lender Accept a Short Sale?

Why would a lender accept less than they are owed? Simply stated, the alternative is a foreclosure. Just as with the borrower, there are significant consequences to the lender if they foreclose.

- The legal costs of eviction and repossession,
- The loss of loan payments during the foreclosure process until it is re-sold
- A foreclosed house will need work before it can be resold
- After the foreclosure, the bank has two options: Sell it at the courthouse steps, or try to resell in the market.

If they resell in the market, they are penalized by the government by freezing 3-10 times the loan amount so that the lender cannot lend those funds to another borrower.

Will my lender consider a Short Sale if the mortgage is current?

Sometimes, some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent.

What if a property needs work, can I still apply for a Short Sale?

Yes. In fact, lenders are more motivated to do a Short Sale on a property that needs work than on a property that doesn’t. The lender knows the risk of loss goes up when they foreclose on a property that needs lots of work.

What is a Short Sale Packet and What Needs to be in it?

A short sale package it used to determine whether a homeowner can afford the property. Our team will work with you and your realtor to gather the information needed to meet the bank guidelines and streamline the process as efficiently as possible. Below are some of the standard items needed to complete a short sale proposal:

- The Listing Agreement
- Authorization to Release form (to allow agent to discuss with bank)
- Hardship Letter (see “How to Qualify” above)
- Financial Statement
- Seller Net Sheet (a copy of the HUD form with offer)
- Contract (when offer is accepted)
- Buyer’s Proof of Funds (with offer)

I have more than one mortgage on my property . Is that a problem?

No. Subordinate lenders are more flexible than 1st mortgage holders.

What if I have 2 mortgages held by different Lenders?

When you have 2 loans with the same lender, it is more beneficial to them, as there is no need to negotiate
with another lender. When the two loans are with different lenders, the process is a little longer, but the second lender is the one who has more to lose if they don’t reach a settlement. This is because if the property goes to foreclosure, the first loan is the first one to be paid and the second usually nets nothing.

Do I have to be past due on my mortgage to be able to get the benefit of a short sale?

No, but it is likely that the lenders’ guidelines will prevent them from formalizing a short sale if the loan is not past due. This means, for them, that the borrower has the means and can continue to pay on the loan each month. Please understand, however, I AM NOT RECOMMENDING THAT ANYONE STOP PAYING THEIR LOANS. In the current market conditions, it is possible that a bank would accept a short sale, even when the borrower is current.

What is a hardship letter?

This is a letter that explains the borrower’s current financial circumstances. Which circumstances have changed from when the house was purchased, and why the mortgage payments can no longer be made. These circumstances are what led to a borrower’s inability to make payments and to pay off the loan in full. This letter must be written by the borrower, and be sincere in demonstrating (with documentation) that it is the truth.

How long does it take to complete a short sale?

The time frame for the lender to receive and evaluate the short sale proposal is about 8 weeks from the time the offer and Short Sale Package are received. Buyers need to realize that this is a lengthy process. This is why it is very important to work with a Short Sale Specialist who knows how to manage the transaction. The other agent and the buyer may get cold feet at the end, and the transaction may fall through.

Why does the bank accept less than they are due?

They lose less on a short sale. On average, lenders lose tens of thousands of dollars less on a short sale versus a full foreclosure. It is simply in their best interest.

Welcome to my NEW Video Real Estate Blog! - "What is a 1031 Tax Deferred Exchange?"

2010-07-12T08:23:00.000-07:00

There are three types of 1031 tax deferred exchanges that can take place:

1.) Straight exchanges—two parties trade properties of equal or approximate value. This is the simplest exchange.

2.) Multi-party exchanges—this involves three or more parties buying, selling, or exchanging properties. Don't attempt these exchanges without the aid of a tax professional; they tend to be very complex.

3.) Delayed exchanges—this exchange allows the sale of the relinquished property and the buying of the replacement property to occur at different times as long as stringent rules are followed. This is the exchange most often used.

What's the Advantage of the 1031 in Terms of Taxes?

As the law's title indicates, the capital gains tax is deferred, but not eliminated. However deferral is a great way to leverage small real estate holdings into larger ones! Since you can postpone gains, you're able to use a tax-deferred exchange strategy to transfer equity to a larger property, all without paying taxes!

Another advantage is that there’s no limit on exchanges. This means you can make as many exchanges as you want! So, over the course of your lifetime, you can keep growing income and appreciation by adding new properties without having to pay the capital gains tax!

If you specialize in buying and renovating properties and want to keep reinvesting your profits into larger properties, then this strategy is especially attractive.

Note: If you don’t keep reinvesting, you risk being classified as a real estate dealer by the IRS and will not be able to participate in exchanges.

What Are the Basic 1031 Qualification Rules?

There are some basic rules that must be followed in order to qualify for a 1031 exchange. These include the following:

1.) The properties to be exchanged must be located in the United States. Note: You can exchange foreign property for foreign property and domestic for domestic. However, you can’t mix these exchanges together.

2.) You must trade only like-kind real estate.

3.) An exchange must be made that’s equal to or greater in both value and equity. Any cash or debt relief received above this amount is considered “boot” and is taxable.

4.) The like-kind property must be identified within 45 days of the closing on the initial property.

5.) All proceeds from the initial sale must be turned over to a"qualified intermediary" (also called a QI, facilitator, exchanger, etc.) who is the person or company playing the role of middleman.

6.) Any of the proceeds not under the control of the middleman are subject to taxation.

7.) The middleman holds the funds from the initial property in escrow until such time as the closing on the second property occurs.

8.) The middleman also assists the owner with the preparation of paperwork and other services to ensure the transaction progresses in a smooth manner.

9.) The closing on the second property must take place within 180 days following the close on the first property.

Wow, as you can tell, this is pretty complex subject and can't completely covered here! But if you're an investor or plan to be one, I hope I whetted your appetite for this subject.

And please, if you have any further questions, feel free to call me! I'd love to tell you more!