What Roberta Thinks...Excerpt from her weekly
e-newsletter...Headline Mania...March 17, 2008
Recent headlines: "Market Mayhem" : Waking Up to a Recession" "Forclosures Jump to Record High"...
Enough to scare anybody? Or are they? In fact, buyers are swarming in some areas, determined to buy what they need to buy, despite fear in the air. This weekend, I jotted down just who's buying right now: young professionals, people having babies, growing families, upsizers, downsizers. Not much different from before, except these are the brave ones, willing to see through their deals despite doom and gloom around them, in headlines and party conversation.
The "just looking" crowd was also out over the weekend looking at open houses. We welcomed a handful into one of our open houses, most not yet at the working-with-an-agent stage, and that's fine, too. Take your time. Find the right fit!
On the sell side, we're increasingly having to tell people who bought over the last 1-4 years that profit margins for them may be slim to none after expenses, especially if they bought at a premium and immediately did major updates. For those who have owned 10, 20, 30 years, appreciation remains terrific, while off from the highs of 2005 and early 2006. But, remember, if you are selling and buying something else, especially something that's more expensive, your reduced profits on the sell side will be offset on your purchase.
We're also looking closely at seller taxes. If you're thinking of a move in the next year and you know you're taxes are high for your particular house and location, you have til April 1 to appeal those taxes. Just call your municipal office for more info on tax appeals. Successfully reducing your taxes could impact favorably on an eventual sale.
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The Wise Selling Book
It's available now, the new NATIONAL ASSOCIATION OF REALTORS® Guide to Home Selling, by Blanche Evans, which outlines the process of selling a home. Evans, a well-known real estate columnist, presents a variety of issues for home owners to consider and provides consumers with as complete a picture of the process so they can make the best decisions with the help of their real estate professionals.
In this weightly tome, you'll find A to Z info, including
-- Hiring a great agent - Making preparations to a home before listing it for sale - Home staging to maximize profits - Understanding the housing market - Analyzing offers - Dealing with legal issues and paperwork - Handling the closing and other final issues - etc.
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Interpreting the Latest Fed Fund Rates Reduction
The Fed is expected to cut the Fed Funds Rate by another .75%. However, as we've seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut...which results in higher rather than lower home loan rates. NJ Mortgage guy David Rubenstein explains it this way: "This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases...and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on." You'll notice ads in newspapers and online that suggest that a Fed Fund rate cut will lower interest rates...don't believe it. Ask your banker or email us for some referrals to the best mortgage reps we know.
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Leader of the Pack
Just behind the #1 REALTOR.com website, RE/MAX Real Estate's RE/MAX.com Web site hopped into second place among the most popular real estate industry Web sites anywhere in February 2008 , up from its fourth-place ranking in January, Web metrics company Hitwise reported Friday. HomeGain tumbled from second place in January to fifth place in February.
RE/MAX is # 1 in New Jersey
The stats are out. Did you know that RE/MAX is No. 1 in NJ statewide sales for 2007, as it was in 2006? Growing market share is an indication of success with clients, both on the buy and sell side. It's a reflection of how the thousands of RE/MAX agents conduct themselves in transactions and get things done. In both total units (about 34,000) and volume (near $12 billion) we have surpassed all others in the Top Ten: Weichert, Coldwell Banker, Centry 21, Prudential, ERA, KEller WIlliams, Exit and the now defunct Foxtons in 10th place.
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Book of Winners
And check out the great new RE/MAX success stories book, "RE/MAX Winners in Business and Life," which highlights "some of the best accounts of what it takes to be successful in almost any endeavor". Just published, it features a profile of guess who -- NJDreamHouses.com's Roberta Baldwin -- and recounts in my own words how the Baldwin Dream Team at RE/MAX Village Square was launched.
Keep us in mind when you're doing a transaction!
Below, please find so many great local listings in various price ranges. We're happy to help with your search or help you sell your home for top dollar, even in an uncertain market.
Best wishes, as always from The Baldwin Dream Team @ RE/MAX Village Square -- Roberta, Tamima, Nancy, Sidney, Nick and Sam.
What Roberta Thinks...Excerpt from her weekly e-newsletter...We All Live Somewhere, Don't We?...February 4, 2008
These days, if you listen with even one ear to anecdotal evidence, it seems as if nobody is buying and everybody is selling. Not true, of course. "People still need to live someplace," one analyst commented in a New York Times article last week, "and [they] move from time to time." His words may sound obvious but they’re more than that; they remind us that, despite sub-prime issues, general sluggishness of sales, and the overall fear element that buyers today carry with them, people are still buying and selling if they’re ready, willing and able.
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Location Still Rules
The other day, I was browsing through the listings in one of Essex County, NJ’s formerly-o-fire towns and it hit me that the idea that location as very important indicator of price seems to have been ignored. How can it be that homes in the most desirable, tucked-away locations and those on that are busier thoroughfares or sometimes less lovely inside, are often on the market for the same prices? In the high market, when everything sold with gusto right away, buyers often resorted to Plan B -- buying in their second or third favorite place -- and those less popular neighborhoods took on what today looks like a false cache. If the country's well-reported housing market woes prove to be temporary, perhaps high asking and selling prices will resume everywhere. Right now, sellers need adjust to the reality that not every neighborhood has Location with a capital L. Not all agents understand neighborhood (and school) nuances, so find one who is able to get the price right for where you live or you'll be spinning your wheels.
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How Many Days on Market? That is the Question!
Most of you probably never heard the phrase market absorption rate, but it's wise to understand it now, be you buyer or seller. Market absorption data shows you the likelihood of a house selling quickly, given what’s recently sold and what hasn’t. During a market downturn, more listings appear and demand falls, leading to an excess of unsold properties. In order to sell, homeowners must reduce prices or see their homes sit with showings and expire. To compute the MAR percentage, divide the number of listings that are sold in a given time period by the number of new listings that have come onto the market. If only one or two homes in a price range are under contract, three have closed and there are 30 others still unsold, then the market absorption rate is, well, not good!
As a buyer, if you know that houses in the area in which you're looking are selling slowly, right now, and there are a lot of them sitting on the market, you may well have success negotiating a great sales price. If you're looking in a market like Montclair, NJ, where some houses still sell with multiple, over-asking offers and inventory is relatively low, even a house that’s sitting longer than the average days-on-market (85 days right now for single family homes; 124 for multis) will profit from the town’s higher market absorption rate. Interesting.
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Let Us All Praise the Train Towns Near NYC!
Sunday's New York Times predicts "a harder economic hit for suburbs farther from Manhattan." Appraisal guru Jeff Otteau believes that suburban homes within an hour’s commute from New York City will experience only half the decline in prices that will affect "outer suburbs" this and next year. Essex County, NJ's location, as we've often bragged before, is just the best, with most commutes to the city under an hour.
Otteau's most salient comment, though, was aimed at sellers 'waiting' for the market to rebound and believe it will relatively quickly. "For those sellers who’ve decided to wait until spring to get what they think their house is worth, the spring they’re waiting for is a very long time off," he told the Times.
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Market Readiness Is All
So, how do you get a house ready to sell? Well, you don’t wait 'til the last moment. I often visit prospective seller’s homes weeks or months before their target market date. You'd be amazing how many small changes to living and basement spaces can really make a difference. So, devise a plan, consult professionals, and meet your target without making yourself crazy.
What Roberta Thinks...Excerpt from her weekly e-newsletter...A Wise-Buyer's Market...January 24, 2008
Thirty and 15-year fixed mortgage rates tumbled this week to their lowest rate since Spring 2004. What does this mean? For those looking for a place to live (as opposed to those who want to flip or invest), the rates are a gift when combined with the decline in housing prices in many places around the country. While there are some rate differences depending on region, check with your mortgage rep or email us for a reference if you’d like to go over your numbers.
The Foreclosure Mess -- Who's to Blame?
A majority of US adults in a new WSJ Online/Harris Interactive Personal Finance Poll said the government should not provide financial assistance to borrowers who can no longer afford to pay their mortgages to keep them out of foreclosure. Some 25 percent felt the government should provide financial help, while 42% disagreed (including 22% who strongly disagreed). Most among the 2,028, 18-and-over adults - more than half of whom are homeowners – felt that mortgage brokers should be better regulated.
Who’s responsible for the mortgage quagmire? Half (52%) of those polled said it was mortgage lenders and brokers; 21% fingered government regulators; 16% faulted home buyers, themselves; 11% blamed someone else. Direct lenders, nearly half (48%) in the poll felt, are most responsible for making sure borrowers are able to pay their mortgages and should be required to modify loan terms for mortgage holders who couldn’t afford their current terms.
“Even though the sub-prime crisis directly affects only a small proportion of Americans, the damage to Americans’ trust of direct mortgage lenders is widespread and may long outlast this crisis. Direct lenders should reach out to their customers and potential customers now to begin to restore their trust,” commented Harris Interactive’s financial services Sr. VP, Peggy Lebenson.
Young & Fearless
To paraphase an old song, thank heaven for first-time buyers...who are continuing to show interest in a complicated housing market. Thirty-nine percent of all 2007 home purchasers were first-timers; 68 percent of them were under 35. Almost 90 percent were under 45. Tamima Friedman, my colleague on The Baldwin Dream Team and a first-time buyer specialist, offered these thoughts about the richness of the first-timer market from the perspective of going out in a car with them and showing them what’s what: A.They’re enthusiastic, positive and grateful to get a house and for your help in educating them. B. They have nothing to sell at a time when something to sell is a liability in the marketplace. C. They're likely to move on and up, eventually, which is great for Realtors! Thanks, Tamima.
When Will the Spring Market Spring?
We're seeing the first new listings of the season.While it's not quite spring yet, the trickle of new listings is a bit of a test. In Montclair last weekend, the most desirable new listings actually had multiple offers. Clients of mine just won a home in West Orange in their second bidding situation in two weeks. As I've said so often before, well-priced, well-presented homes win the day; that are aren't, sit. If you're wondering how to make your home a more attractive competitor, call us for a no-cost consultation.
A Word About Short Sales
We'll be seeing more and more of these properties, which are considered pre-foreclosures. At this stage, if a seller is seriously in arrears with mortgage payments, the lender must approve a sale, often "short" of what is owed. The process can be lengthy -- 30, 60, 90 or more days for a decision to be made, often on as "as is" basis. Still, if you're a buyer-in-waiting, you probably won't want to spend any money or time on inspections before you're offer is formally accepted. In one recent case, where the buyer promised to close in 30 days, the bank responded on the 29th day, demanding a closing the next and monetary penalties for every day he didn't come to the table. It was all too much for that buyer, who fled the scene. Sometimes, you can get a great deal on a short-sale property, if you have the patience and determination to wait for it.
We're happy offer area tours, info on towns, commutes and schools. Whatever you need to give you an understanding of the New Jersey market.
Have a Happy Weekend, from The Baldwin Dream Team at RE/MAX Village Square -- Roberta, Tamima, Nancy, Nick, Sidney & Sam -- the market leaders in Montclair and all of Essex County real estate. Thanks to all of you for your support and attention
What Roberta Thinks...Excerpt from her weekly e-newsletter...Sniff, Sniff, Stand Back and Wait...January 18, 2008
Best Time to Sell?
Through the last decade’s "high" market, we could safely say there was NO time NOT to sell. Some Decembers, even, we did record-breaking business. It's not so perfect a time, right now, although interest rates are down and in our area, inventory has actually diminished over the last couple of months and some terrific houses are selling -- dare I say?-- above asking. Houses that aren't selling are ever more negotiable, however. Buyers sniff, stand back, sniff again and again, and come in with low offers, just to prove they can. Pristine presentation and correct price-positioning are so very important.
If you need to sell soon, a smart target time to introduce your home would be March –April – May. That gives you time to obtain professional advice, clear the clutter and make necessary repairs and improvements, Early spring is also good time to trim mature landscaping so buyers can actually see your house in photos on the local MLS and on internet real estate portals everywhere. Great photos will take your 'round the world! Fresh paint, clean grout, working cabinetry, clean basements, spotless rugs if you’re not going to remove them and refinish your floors, are among the necessary presentation tasks. Need references for what you can’t do yourself? – just email us. We only refer tradesmen we’ve personally used ourselves!
Guaranteed to Expire
Arizona RE/MAX agent Paul Pastore offered up his "top ten ways any seller can practically guarantee their home will expire." Here’s an abbreviated version of Paul’s commentary in Brokeragentnews.com sprinkled with some of my own snarky comments. The list says it loud and clear: There’s no place for quirkiness in today’s marketplace and you may well see your listing expire if you’re:
1. Not serious about selling. Telling people who walk through the door that your don’t have to sell is a bummer. Discretionary sellers should wait for a less competitive market.
2. Not pricing properly. No amount of expensive ads, glossy flyers, virtual tours, agent luncheons and weekend public open houses will compensate for a wacky asking price. You're not fooling anyone.
3. Not listening to your agent and micromanaging the deal. Doctors don’t self-diagnose. If you’ve chosen a talented real estate professional, listen!. Share your concerns and timelines but leave the details to the listing professional.
4. Clinging to old furniture, rugs, and extraneous possessions. Someday orange shag carpeting, mirrored walls and Elvis paintings on black velvet will come back, just not right now.
5. Giving animals the run of the house, especially when it’s being shown. Nobody likes slobber on their slacks or seeing hairballs in the stairwell.
6. Yapping with buyers. Don’t grill them or become their best friend the moment they step into the house. They're not here to visit.
7. Selling personal items. There’s a time and place for selling your stuff and it’s not when you’re looking for a buyer. No for-sale signs on the furniture!
8. Clearing out odors! Pet odors, spice residue, diapers and kitchen waste…not nice when you're have guests.
9. Avoiding feedback. What do buyers know anyway? If they don’t appreciate your rusted old fence, backyard rock collection or Sixties paneling in the den, what does that mean?. You may just have to wait forever and a day for that one brave soul who loves what nobody else can.
10. Refusing to negotiate. If 25 people traipse through your house and do not come back, something’s very wrong. If you do get an offer…if you really want to sell….then be a willing participant in the give and take that is real estate.
Taking the Plunge
Should we or shouldn’t we? That is the question buyers are asking these days because they fear prices will decline even more in coming months. It’s so much a function of where you’re looking. Let us explore with you what changes have already occurred in your particular market area and how you can make a deal now that will stand up, no matter what the market trends are later this year.
Understanding the Buying Process
In New Jersey real estate, by convention or law, we do things differently from many other states. We require more money down early in the deal, rather than at closing. We write a contract before making an offer, rather than after. In North/Central NJ, we generally use attorneys to move the process for ward after offer acceptance, while, in many other places, title companies provide that function. If you are a little confused about it all, we’ll be happy to send you a feature sheet on the buying process from the exclusive buyer’s kit our customers receive when they work with us.
Falling Behind
Realtors are beginning to hear from sellers who need to sell to stave off foreclosure proceedings, or so they think. We always ask: Have you contracted your mortgage company yet? I don’t know about others in my field, but my first instinct is to help sellers keep their home.
Inman.com columnist Ilyce R. Glink, writes trenchantly about this:
"Once you know that you won't have enough cash to go around, it's tempting to skip the biggest bill, which is typically your mortgage payment. But in some states, foreclosure is fast-tracked, which means you could find yourself receiving a foreclosure notice from your lender in as little as 60 days.
"So let's back up: Once you know there isn't enough money to go around, and you know you'll be missing a payment, you need to call your lender. If you've already missed a payment, and your lender has called you, you need to pick up the phone and return the call. Talking to your lender is the best way to stop foreclosure.
"Many borrowers have complained that when they call their mortgage company, no one picks up the phone. Or, they get transferred from department to department. The truth is, if you don't talk to the lender, and it doesn't get recorded in your file, it doesn't matter how often you tried to call. When it comes to foreclosure, ‘trying’ doesn't count.
"Indeed, every time you talk to an operator at a bank’s debt collection department, your conversation will be recorded in a computer file, providing a record of your interest in clearing up possibly debt."
This is great advice. Call us if you're worried, if you need to talk it through.
And Now, Our Featured Listings
As always, here are some of the best listings in the area right now. If you don't see your price range, home style or Essex County location, we can send you listings tailored to your needs. Take a look below at the sample Belleville condo at attractive Essex Park. This week, an low-low mortgage option is available for those with excellent credit, is being offered if you close by March 31. It can save you more than $10,000 in interest payments in the first two years. Email or call us (973-509-2222 x 104) for more info.
Best wishes from all of us on The Baldwin Dream Team @ RE/MAX Village Square -- Roberta, Tamima, Nancy, Sidney, Nick and Sam
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What Roberta Thinks...Excerpts from her weekly e-newsletter...Happy 2008, Let's Buy A House, Maybe...January 5, 2008
NEW-YEAR REFLECTIONS
Real estate agents in 2007: We practiced in firestorm of dire economic predictions, relentlessly glum media coverage, and local expressions of fear and concern from the buyer and seller communities. It was a hazardous occupation, right up there in the acid-producing company of techies, doctors, and teachers. As buyers reclaimed the right to negotiate down rather than bid up, they also made offers often wildly under the asking price, compiled lists of things they wanted fixed before their home inspections, and, after the deals were done, sometimes tried to renegotiate accepted offers downward. With more to choose from in many markets, buyers also focused a relentlessly critical eye on properties that, just a year or two back had commanded sell-in-one-weekend, top dollar attention: lack of smooth commute, quiet location, kitchen and bath updates, garage and storage space, small yards and big bedrooms were among most-cited imperfections. And with imperfections came lower offers or no offers at all.
Sellers, meanwhile, put up moats around their homes, figuratively speaking, by listing at impenetrable prices. Some took their homes off the market or rented when it became clear there would be no sale without compromised expectations. Those who recently purchased and quickly spent more on expensive home improvements, were not likely to get their money back right now or make a profit, no matter how nice the house looked.
In one national survey, the divide between buyers and sellers was said to be no more brutal than where we live in NJ. Except for those unusual properties that defied expectations and flew off the market with multiple offers still, days-on-market, always swift in the past, grew to about 3 months in popular towns like Montclair, NJ; to much more in towns without train commutes.
The Good News?
The National Association of Realtors, correctly suggests that we always go back to our professional mantra: "All real estate is local." Indeed, seen that way, Essex County looks rosier. With our plentiful commuter options, high-ranked school districts, diverse cuisines, children's activities and array of entertainments for grown-ups -- and, yes, our trees and yards, the Montclair-Glen Ridge-West Orange-South Orange-Maplewood- Millburn is a winning daisy-chain. Given Essex County NJ's natural proximity to the City, we are in a good position to stay strong in this confusing market.
Neighboring Essex County towns, too -- Bloomfield, Belleville, Nutley, Verona, Cedar Grove, The Caldwells, Essex Fells, etc. -- help create this attractive, well-rounded environment for the county, with options both affordable and luxurious, depending on where you are on the buying spectrum. And all of these towns are less than 20 miles from The City.
Last weekend, in my appearance on MSNBC, I mentioned what I really believe: Sellers need more help than ever these days working through the issues that stand between them and the market. Professional real estate agents who can lay out the problems, the statistics and the opportunities, help fine-tune a home's presentation, price correctly and negotiate intelligently, will make all the difference these days on how effective the selling process is, so make sure you, as homeowner, choose wisely and well.
About The Kids:
The other day I was in Macy's. Nearby, two Gen X women exchanging thoughts about houses from adjacent cubicles. One said she was sick of renting and was going to buy a house in the next two years because "all you have to do is fix it up and make a profit." Her friend popped out of her dressing room to say she didn't think it was that easy -- hadn't she heard about all those mortgage troubles? -- but both agreed it was on their 5-year wish list.
Indeed, while their parents may have waited much longer to buy, a new, survey from Anderson Analytics, a firm focusing on the 'next generation,' found owning a home to be the #1 aspiration of nearly half of all young college women (49 percent) and men (41 percent). A car ranked second. Experts say the proliferation of TV shows on the joys of home ownership has much to do with this change -- up more than 20 percent from just 2 years ago -- as well as these Gen Xers profound belief in the so-called American Dream -- white picket fence included, one college professor who polled his students told me recently. Those with Baby Boomer parents who have seen the appreciation of the homes they grew up in feel especially entitled to home ownership, experts say, while children of immigrants see home ownership as the ultimate achievement inherent in acquiring a good education and a job.
While on the short term, many Americans may be soured about home ownership, the survey shows there will be a societal rebound when these college kids make their way in the world and to the streets where they want to live.
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A Word About For Sale By Owner Transactions:
Given the market slow-down, sellers thinking about eliminating agents should know that for-sale-by-owner success diminishes accordingly in a low market -- and they already have this year. FSBOs, according to the NAR, are down to 12 percent from 14 percent of homes sold in the US recently, and half of all FSBLS already sell to neighbors and friends.
Why is it so hard to do sell a house yourself? One reason is that competitive pricing offered by real estate agents is a marketing tool to get the house sold as fast as possible. Homeowners selling privately often position their homes at the top (or above the top) of what the market will bear as they wait for that one person who loves it enough to pay more. With more inventory on the market in most areas, buyers don't need to pay more, so while they may cruise the FSBO market, they will probably find a better deal on a home listed with an agency.
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And A Word to the Wise: If your home is on the market right now and has been so for some time without a buyer or price reductions, it's time to think about repositioning. As soon as new inventory arrives this spring, your home, in comparison, may look dreary. If you haven't made the improvements that really wow people, then the price must go down. It's a simple as that.
What Roberta Thinks...Excerpt from her weekly e-newsletter...Someone's Buying Houses in NJ...December 3, 2007
Turnaround Time, Anybody?
It's no secret that housing inventory on the GSMLS has been creeping up over the last several months to nearly double what it was in 2005. So, it's good to see (according to my unscientific observations), that over the last several weeks inventory's diminishing again locally...one house at a time. According to the Garden State MLS, there are more than 2000 fewer homes for sale than there were in the early fall. Could it be that after a cautious autumn, buyers are creeping back? "It's just weird," said one of my sellers this week, after her home attracted five showings last week, up from one or two in the weeks before.
Weird but refreshing and, given the opportunity that today's buyers have, one wonders why more of them aren't pouncing on some really good deals.
Michigan RE/MAX agent Tom Seelbinder, in a cogent letter to the editor at Inman.com, describes the year’s market changes as well as I could. So, here’s what he had to say this week:
“The demand for housing and the ability to create a sense of urgency in buyers is what drove the market. Sellers and agents were happy...buyers were slighted and less than thrilled...Now, with a glut of product, decreasing demand and the correction in financial markets, the 'worm has turned.' The buyer now calls the shots, as does the agent who can skillfully show a seller all the critical data. The truth is houses are still selling (even where I sell in Michigan, despite the economy and dismal political leadership), just not as many. They are also selling for market value -- what buyers are willing to pay. Now this may be a lot different from 'market value' of what buyers were willing to pay in previous markets. 'Market value' is fluid and it always has been," explains Tom.
This agent, and good ones wherever they hang their hats, are suggesting that (and, yes, sometimes pleading with) sellers to understand the changes in the market and adjust prices accordingly. The "I don’t have to sell/I’m in no rush" attitude, which usually goes along with being $10,000, $20,000 or $50,000 over what price will actually sell a house, is simply counterproductive. The longer a home stays on the market, the more vulnerable it will be in the eyes of today’s buyers – not the more valuable. Self-knowledge, says agent Tom, "along with the actual market data – active listings, pending sales, accurate days on market, percentage of listings that sell versus ones that don’t – will help sellers make educated decisions on how to price their houses." Well put, Tom.
After the holidays, we’ll surely see a new crop of listings. Sellers who understand the market will be the winners here. And buyers, creeping back, we hope, will be in wonderful position to find homes and condos at affordable prices -- something we haven’t seen in New Jersey in many a moon.
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Why First-Time Buyers are Scarce
“In many areas the low end of the market has been disproportionately hurt by the
recent subprime mortgage fallout,” says real estate columnist Diane Hymer in a recent Inman.com column. Why is this so? Because so many first-timers have that now-toxic combination of poor-to-middling credit and few savings. If there’s one loan area banks are loathe to help these days, it’s this. There's a new, very strong push in discussion right now to have banks freeze or refinance somje of these adjustables before they explode, which will be a godsend to sellers in trouble.
But many lenders are also punishing would-be first-time buyers who haven’t gotten themselves into a mess, and that will have to work itself out in time, as well. Hence, the adorable $400,000 home that has been sitting for 3 months without finding a friend to purchase it. If you're one of those buyers, the only sure ways right now that you'll be able to buy are to work to erase credit issues -- and many mortgage reps are happy to advise -- and/or find significant gift money from relatives so you can put significant money down, thereby lowering the bank's risk in your purchase.
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Planning for A Sale
Okay, it’s already December. If you are planning to sell in the first quarter of next year, for any reason, it’s time to start planning for that eventuality. Otherwise, you’ll be snowed under by last-minute attempts to get the house in order. Just go to the MLS and see photos of houses where no planning was done. Clutter reigns! And clutter is your enemy on the selling block. Please call us for a complimentary session to discuss how "staging" of your property, inside and out, can make a particular difference in this "iffy" environment. We offer staging as a value-added feature of listing with The Baldwin Dream Team @ RE/MAX Village Square, so it will cost you nothing!
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The Week's Best Bets
As always, this e-newsletter concludes with our featured homes and condos of the week, some new to market, others lingering, but all very nice. We can show you anything you see on the internet, so call us for an appointment. Snow, sleet, ice? Nothing keeps us from finding you the right living space! And the weather's cold outside!
What Roberta Thinks...Excerpt from her weekly e-newsletter...Up, Up and Away...November 16, 2007
We're a move-obsessed culture. More than 40 million Americans move every year, in fact, and more than half of them have already moved in the last 5 years; almost 30 percent have moved twice during that time. When you're living in a visually rich environment of beautiful homes on tree-lined streets within the towns in Essex County, NJ, the itch to move up, once you're in first house, can be fierce. Families grow, stuff accumulates, call your Realtor!
Even as housing prices flatten or decline, the urge persists. In today's market, smart homeowners know that, even if their house sells for less than they would have liked, on the buying end they probably will make up the difference. It's an important concept to understand, one that can free you from holding onto your house to prove you can net the most on the block. If your motivation is strong to make a move, spend time seeing how you can acquire another home reasonably before turning down an offer that's marginally lower than what you want --- or "need." We're hearing many sellers say that they need to make this or that amount before selling; the need should be in direct proportion to what they expect to buy. Every offer that comes in today should be considered in that light.
Where Are The Bargains?
I heard the oddest thing today. A client who has been looking on and off for a home for the last few years, commented that he wouldn't buy until he had proof the next upturn in the market. Come again? Given the downturn we have and the steadily adjusted prices in many towns, real bargains are here, now. The next upturn -- some say it will be in 18 months; others predict a longer wait, but who really knows? -- will mean rising prices. Once they appear, the bargains will be no more. Why would you wait for that moment, rather than seize this one?
Dealing with Fear
Other would-be buyers who are actively looking but not making decisions, are simply fearful of the changes we're seeing. Recently, an agent whose clients had been dancing around a property for months and most recently made a pretty-good-but-not-good-enough offer after a liberal price reduction, told me she'll advise her client to wait another two or three weeks before before resubmitting the offer. I wished her well. Ten minutes later, another agent called to let me know she was writing an offer for her clients, who had just seen it at the new price for the first time. That new price spoke volumes to the new buyer; to the old one, hanging on for the ultimate discount, it still didn't represent a bargain.
Right Pricing = Sales
So, my point is? Yes, there will be some homes that won't ever seem cheap enough. Others languishing on the market are simple overpriced -- for any market. And then, there are those that feel right. The real difference in the market now vs. before is that those 'right' houses aren't seeing wild bidding wars. Buyers may encounter some competition, but not at the previous, frenzied levels.
Mortgage loans are loosening up again, so that if you have excellent credit, 5 percent down is still acceptable to many lenders. As we quickly move into the holiday season, would-be buyers are, of course, preoccupied with other activities. Yet I've been hearing from quite a few people the last few weeks who want to get their feet wet now, so that in the New Year they'll be educated and ready to start in earnest. Incidentally, if you're planning to sell in 2008, don't wait 'til the last minute to de-clutter, paint, fix-up. A well-presented house is your best defense against market weakness.
What Roberta Thinks...Excerpt from her weekly e-newsletter...Condo Blast -- Essex County and Beyond!...November 8, 2007
I can't help but be a little envious of the people who will eventually purchase at Aurora Over the Hudson, the new, all-glass condominium, a YOO by Starck design on the Jersey side overlooking Manhattan. With over-the-top amenities including Zen relaxation room, spa amenities, grand salon, private dining and wine facility, screening room and game rooms, sports and fitness center, plus outdoor pool, gardens and a landscaped plaza that puts you face-to-face with the famous skyline just across the way, it looks just wonderful.
It's not precisely on our Essex County, NJ turf, but certainly worth looking into if you're after state-of-the-art surroundings and elegance all the way. (YOO, by the way, is Philippe Starck's new design-focused property development company and this Cliffside Park, Bergen County project is its first in NJ.)
Closer to home, we've got a lot going on. So let me review some of the highlights, some Essex County, NJ's new townhouse and condo options, many of them near transportation to the City and Newark corporate offices.
West Orange: Glam Living at Bel Air
Bel Air, a Matzel and Mumford/Hovnanian townhome development tucked away on a scenic, winding entry road off Mt. Pleasant Ave. near the Livingston border, will have 250 large, well-scaled, high ceiling-ed, 3,000 sq. ft.-and-up units when completed, with prices starting around $700,000. Sales are underway at Bel Air, with periodic opportunities for price adjustment on some units.
"Elevating your idea of luxury," Vizcaya's 130 luxury residences, penthouses and villas, 3000 sq. ft. and up, located on Northfield Ave., across from the Metro JCC in West Orange, will have valet service, concierge, fitness club and spa, indoor and outdoor heated pools, including one for children, tennis court, 24-hour concierge and valet service, with prices from $800,000 to $1.7 to "Live Like A Celebrity!," or so the official Vizcaya website promises! Built by Millenium Homes, these units are in early stages of construction.
Montclair: Pretty Siena Units Now
In Montclair, quite a few of Pinnacle Downtown's units at The Siena remain, priced in the fives and sixes, in a great, town-center location. Starbucks and Cosi have taken ground-level space in the building and a New York Heath Club is on the way. With Urban Outfitters across the street and charming <?xml:namespace prefix = st1 /><st1:Street w:st="on"><st1:address w:st="on">Church St.</st1:address></st1:Street>, with its array of cafe/restaurants (Raymond's, Cianci, Church Street Kitchen, Taro) and elegant shops, is just steps away.
Located at the south end of town, at the edge of the prestigious Estate Section, Montclair Heights, another attractive, luxury condo development with imposing brick facades, convenient to the DeCamp NYC bus line and Nishuane Park tennis courts and pool, is half-built. Units start in the mid-$600s, much less than originally advertised.
Glen Ridge: The Reserve Almost Sold Out
Down Bloomfield Ave., in its final phase, The Reserve has four remaining units priced from $599,900 to the high eights. Fabulously located just across the street from the Glen Ridge NYC direct train station (35 min. to Penn Station!), this interesting condo building with a Manhattan-ish lobby and cool, windowed, loft-inspired interiors, sold relatively quickly this past spring and summer.
Montclair: It's All About Downtown
Still to come in Montclair -- an attractive new townhouse development, The Commons at Bay Street Station, where you can literally roll out of bed, round the bend with your morning coffee and hop a 35-minute train to Penn Station, Manhattan. With upscale kitchens, individual garages, and easy access to Montclair Center and Walnut Street shops and restaurants, this latest entry in the whirl of Montclair townhouse and condo construction should sell swiftly when completed in 2008. Call us directly for more information on this special development expected to break ground shortly. Presales are expected any day.
Big Secret in Belleville: Gigantic Savings
City Homes at Essex Park, the pretty, tasteful, affordable townhome community just 4 miles from Montclair in neighboring Belleville, is in its final construction phases. This Saturday, there will be some gigantic bargains on some of the units normally priced at $379,000 and up. Built by Centex, a well-regarded Texas company, these units really are Essex County's current best buy. Centex periodically offers deep weekend discounting, so call me for the next sale days. Of course, you an go yourself, but it's wise to have an agent in tow to get you the very best deal!
Bloomfield: A New Turn to Trendy
Loft Life has arrived in Bloomfield by way of 13 available units in the Walnut Street Lofts development -- custom kitchens, windows, baths and other upscale amenties, located just a stroll from the town's charming village green, shopping, and nearby trains and buses to the city; jitney service, too. Ranging in size from 900 to 1700 sq. ft., these are really lovely conversions in an old brick and stucco warehouse with 11' ceilings -- pets permitted under 30 lbs! Prices are $299,900 for a 1-bedroom/1 bath, up to $499,900 for a 2-bedroom/2 bath, most units with courtyards or patios.
What Roberta Thinks...Excerpt from her weekly e-newsletter...Bidding War, Anyone?...October 28, 2007
The other night, one of my listings had 2 offers after 57 days on the market. A wonderfully vintage-y Craftsman cottage with ivy spiraling up the brick and stucco façade and beautiful original moldings, hardwood floors, stone fireplace and a newer kitchen within, this terrific home had more than its share of showings, with multiple return visits. Lots of lookers, yet nobody stepping forward at the original $489,000 price.
I encouraged my sellers, young and smart and eager to move, to adjust the price enough to make a difference in value perception among those who had seen it before and, of course, to encourage new opportunities. They had paid $425,000 for the house 3 years ago and were hoping for some profit after expenses when they sold.
Sure enough, the very first people to see the house came back and made an offer. So did another young couple, for whom it only took a half hour to decide they, too, loved it.
So, in the middle of the current sluggish market, we had a bidding situation, with a very nice outcome for the sellers.
Especially because, in West Orange right now, there are 65 active listings between $449,000 and $500,000, only a handful with accepted offers.
Sellers Stand Firm
What you can take from this exercise is that most sellers, right now, aren’t inclined to adjust prices enough to make a difference and so their houses are sitting. I remember what those houses were selling for a decade ago -- much, much less! -- and those who have been in the same house that long will do very well upon resale, even with asking price adjustments. Those who bought more recently and have to sell right now, won't see those returns...but maybe on the next house, if they stay long enough.
The Cycles of Real Estate
Real estate is and has always been cyclical. Nobody can predict when a high market will end, but now we see it has. Many astute buyers from that period will make money; others won't. But life goes on and people still need to adjust their living circumstances when marriage and babies require more space; when children off to college and divorce or death require other changes. Housing is also shelter of the most basic kind; without it, we're orphans.
Buyers Are Nervous
What we're seeing now, along with sellers who won't reduce their prices, are buyers just too fearful to buy. Very pretty homes in Essex County, NJ's 'starter' range are just sitting as buyers pour over pluses and minuses and, in some cases, develop paralysis over the notion that they'll make a mistake, buy the wrong one, spend too much money, get caught.
No Thanks to Banks
The trembling mortgage industry has a lot to do with making people crazy right now. Nobody can escape the relentless media coverage of foreclosures and the tightening of mortgage guidelines. Smaller houses call out for young buyers, but without real savings in the bank, it's harder to finance these purchases.
If buying Nirvana seems absent right now, all the more reason to find yourself a real estate advisor who can tell you everything you need to know about buying (or selling) in this confusing market. Please call us for a consultation. We'll hear out your fears.We'll see you through.
We also offer area tours to introduce you to our towns and we can fill you in on school and commute information.
What Roberta Thinks...Excerpt from her weekly e-newsletter...Essex County's Train Towns Rule!...October 16, 2007
The latest quarterly Otteau Report on New Jersey's real estate scene is relatively good news for several Essex County Towns -- the 'train towns,' to be exact. All with New York Direct service, Glen Ridge, Maplewood, South Orange, and Millburn/Short Hills are bucking the lazy-market trend.
In comparison to towns without trains, the stats look stellar, with an average of 90 days on market (for Montclair, Millburn, Maplewood); 120 days (for Glen Ridge) and 150 days (for South Orange). Essex County non-train towns also bucking the slump are Verona and Livingston (4 months), Bloomfield and Nutley (5 months). NOTE: Bloomfield is a train town, as well, although the stations are slightly less accessible from the higher-priced northern part of town encompassing the top three primary school neighborhoods (Oakview, Brookdale, Demarest) -- although there is some local jitney service to its two downtown stations.
My point: We're so lucky: In the rest of the nation, according to the National Assn. of Realtors Pending Home Sales Index, days-on-market approaches 10 months. According to Mr. Otteau, in some unlucky NJ outposts with a surfeit of mansions and a decline in corporate opportunity, days-on-market approaches infinity.
Impatient Sellers
For many sellers, the idea of having a house on the market for anything more than a week or two is tantamount to failure. So, we’re seeing quite a few test-sales these days – 2,3,4 weeks on the market without offers or good-enough offers, and then…going to rental status rather than compromise price.
Sellers all have bottom lines, based on what they've spent to update and pamper their homes -- and, sometimes these days, just because. Of course, it's unfair that last year or the year before neighbors and friends fared better. But, according to theoretician Otteau, test-the-market pricing (high) just doesn’t work and further deflates a property's value. Right pricing, on the other hand, gets the job done.
Buyers Looking for A Deal
From the buyer's perspective, the lower the better, of course, but serious buyers do understand when the price is right. It's the moment when the house just looks great, shortcomings are minimized and it's all about love.
Good Realtors can help both sellers and buyers understand it better and be better prepared for the complexities of the current market, just as they can hand-hold depressed sellers. Despite an enormous amount of gloomy media coverage, houses continue to be bought and sold, to be used for shelter and protection and, in some cases, to return handsomely on investment. And, of course, if you are selling AND buying, you may get less for your home than expected -- but you'll make it up on your buy side!
Thinking of selling? More than ever, staged houses stand out. Don't wait til the last moment to consider how the right paint colors, flooring, and furniture rearrangement can distinguish your house in a crowded marketplace. Call us for our advice. We love giving it!
What Roberta Thinks...Excerpt from her weekly e-newsletter...Market Mania...Sept. 4, 2007
Up, But Down
US home prices rose 3.2% in second quarter compared with a year earlier, the slowest price gains in 10 years, according to a quarterly index released last week by the Office of Federal Housing Enterprise Oversight. Five states showed lower prices over the past year: Nevada, Michigan, California, Massachusetts and Rhode Island. Utah had the best gains at 15.3%.
And, by now we all know that our houses and condos are not going to add much to our economic bottom lines on the short term. For those who have been confidently borrowing against the rising value of their property, the gravy train has ended with a thud. Housing prices may still rise a tad, although not enough to fund vacations, home improvements, and other luxuries we’ve become used to. Those who purchased in the Garden State at the tail end of a decade of energetic appreciation are the most vulnerable. Putting a house on the market now after buying it in a bidding war just a year or two ago and making major renovations, may result in a flat or depressed outcome once real estate commissions, state transfer tax and inspection issues are computed.
Nonetheless, people’s lives change suddenly and selling the house you recently purchased or borrowed against or can’t afford now that a higher interest rate has kicked in, may be necessary. When that’s the case, more so than ever, sellers need expert guidance through the process. Being penny-wise and pound foolish at a time like this can be unwise. If you spent $35,000 on your kitchen last year and your basement is still scary, the time to lift it up is before you list. If your front steps are crumbling, fix them in preparation for the sale. First impressions are so important when you’ve got a “For Sale” sign in the yard because buyers can be brutal when comparing available inventory.
For Some, Help is on the Way
The Federal Housing Administration’s new FHASecure program will insure loans to delinquent borrowers threatened with foreclosure. The plan, announced by the Bush administration last week, will help a projected 700,000 homeowners. According to the press release, "The FHA-Secure program will help people who have good credit but who have not made all of their payments on time because of rising mortgage payments. For the first time, FHA will be able to offer many of these homeowners an option to refinance their existing mortgage so they can make their payments and keep their homes. FHA will also charge mortgage insurance premiums based on the individual risk of each loan, using traditional underwriting standards, so it can expand access and help even more families."
Banks holding the bad mortgages, however, aren’t eligible for bailouts. And it’s not clear whether homeowners with not-so-good credit (which a couple of missed mortgage payments will do to you!) will have the same opportunity to get back on track with their mortgages; or, those investors and flippers caught holding properties they can't sell quickly.
For more information about FHASecure and other FHA products, please call 1-800-CALL-FHA or visit www.fha.gov or www.hud.gov. For a list of your local homeownership center or a HUD-approved housing counseling center, go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
Those Boomers Again!
A recent study of Baby Boomers, Americans born between 1946 and 1964, shows that they’re not going to give up living well just because they’re getting older. One-third, in this National Assoc. of Realtors study, say they will work full-time into their 70s; another one-third plan to work part-time. A result of working longer: Boomer living spaces will be larger than those of seniors of the past and Boomers will want…demand… all the amenities and upgrades as long as they can afford them. Those of you who have seen the new 55-and-over developments such as Hovnanian’s Four Seasons on the Clifton-Montclair border, know what I mean! Lavish, lavish, lavish.
The Baldwin Dream Team, RE/MAX’s #1 Essex County Team in 2006 for closed sales, welcomes Sidney Simon and Nick Baldwin to the team this week. Sidney, a former bank executive, worked with Keller Williams in Atlanta before moving to Essex County with her family. Nick, a certified personal trainer and former actor raised in Montclair, will help with rentals and condo sales. If you’re just starting your search, we’re happy to provide an area tour. School and commute info? We know what we’re talking about. The Team wishes you a great autumn kickoff to all your activities and pursuits.
- NUMBER1EXPERT™ 
