Extending the Credit

Late last week a bipartisan plan emerged in the Senate that would continue the $8,000credit for first time purchasers beyond November 30, but would create a new, smaller credit of $6,500 for people who've owned and lived in their houses for five consecutive years and now want to buy another as their principal residence.

That would still be enough, sponsors of the plan believe, to encourage people now on the sidelines to get into the market for new and existing homes in early 2010 -- and thereby help stimulate the economy and create jobs.

The Senate plan would also raise household incomes limits for the credit to $125,000 for single buyers and $250,000 for married couples - far more generous than the current $75,000 and $150,000 maximums.

Is the Hoboken Real Estate Market Just Right?

You probably remember the line about porridge from Goldilocks: It wasn't too hot, it wasn't too cold, it was ... just right. Last week's new housing starts in Hoboken were reported by the media as further evidence of the deep hole the home building industry is in: Starts were up by barely half a percent nationwide, and permits for future construction were down.

But is that "cold," or maybe something else? If you dig below the anemic sounding half a percent gain, you discover something very different: New starts by builders on single family homes were actually up by nearly four percent for the month nationwide.

Now a 4 percent gain, combined with lower permits, are hardly dramatic enough to say new home building is heating up. Then again, they're definitely not stone cold.

The Montrachet is Now Open and We are conducting an OPEN HOUSE THIS WEEKEND from 1-4!

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The New Market

Despite what we know about the market and what could possibly happen, we have data that backs a recover that we have not seen before. is it possible that we have learned from our mistakes in the past and used this downturn to our advantage?

I believe so and heres why:

As I have said in previous posts, real estate has not come down since 1945. Buyers, instead of fearing the market they lean right into it hoping to make a killing once the market bounces. I believe this may be cause of a new kind of american investor or home buyer willing to take on risk in turn for big gains in the future.

The only problem hovering over the horizon is the dollar. The dollar is dropping and dropping fast. Real Estate is measured in dollar value. Hence if the dollar drops then purchasing power of the investor drops as well causing overall market values to disintegrate.

As I always tell my clients, no one has a crystal ball, however we can give our best guess if we do enough research and work hard at understanding how our economy works.

Refusing To Give In

This market has made or broken realtors dreams of being a success. As a professional who still is number one in my Hoboken office, its essential to see what is happening in the trenches in terms of the real estate market. Housing prices have been up despite market sentiment. Data from August 27th to September 27 states housing prices have risen 3.7% up .5% from previous July to August data.

With the government proposing to extend the $8,000 tax credit, buyers are jumping at the chance to buy while prices are still stabilizing and in an upward trend. Bottom line figures prove the bottom has come and gone and now more than ever should be the time for you to jump on buying the home of your dreams.

For more information please call 201-410-3020

Every Agent is Not Created Equal

We hear of horror stories working with the wrong agent. Most of us use an agent from a friend that has used him or her in the past. Sometimes this works, sometimes it doesnt. Bottomline is most agents do mean well however now is the time that working with an agent who has experience really helps you go the distance.

First time home buyers have taken control of this market, they call a broker, they go out and never seem to feel as comfortable enough to make an offer on a property. If an agent isnt taken the time to explain to you the market and the way a transaction should work, then your agent is not a good agent, plain and simple, thus you should move on to someone who knows. there should be three things you should watch for when selecting an agent to work with.

1) Does he/she have a good grasp on the market?

2) Has he/she explained to you the process?

3) Do you trust him or her?

if you answered yes to all these questions, your working with the right agent.

Fixing Our Hard Wired Mind

Its important to understand that buying low and selling high is what most primary resident buyers and investors do. However sifting through this market working with buyers and sellers on a daily basis, its amazing how almost 60% of people feel like the market isnt good so im not going to buy. WHAT?! The fact of the matter is most people just cannot help themselves but wait until we get into a bull market to buy a home.

Buyers need to understand, real estate is not stocks, gold, bonds or any other asset that fluxuates on a daily basis and is effected in a way when the economy is bad real estate is bad.

Keep in mind, real estate HAS NOT GONE DOWN FOR 60 YEARS! Despite recession and wars fought over the years. What does this mean? The fact is if a home is undervalued back to 1996-2000 levels, buy.

The facts are facts:
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.

Mortgage Rates Close to Yearly Lows

In the beginning of 2009, we saw a steep drop in sales and mortgage rates. Since then with spring and summer that rolled around afterwords, we had a surge of prices and rates. As of 9/21/09, the 30 year fixed rate with 10% down is at 5%!

What does this mean to you (buyer). Rates this low most likely wont happen again if we start to pick up. Since we have a divergence in the prices of homes sold in the hudson county area related to the mortgage rates, now should give you plenty of reason to buy (if the $8K tax credit isnt good enough already)

The Market Conditions

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.

This is a good sign and one that just may be the most optimistic we have seen in recent months. Since we are still at a stand still with investory levels at highs and demand low, we hope as realtors we can see a significant movement in the time to come. Hoboken and Jersey city statistics have reflections this increase in the existing home sale sector

Banks and Their Short Sales

Short sales have been flooding the real estate market since the end of 2007. Now, more than ever in certain areas, there is an influx of unattended properties being foreclosed on.

In 2008, banks were accepting 50k to 60k less than the asking price, now its 5 to 10k off the asking if your lucky, why?

1) Banks want to hold until things get better
-the basic premise of this is even though they are taking a hit, they figure we will take the losses once things turn around and in there own way they believe that banks (the ones that got us into this mess) can get us out by selling nothing less than the appraised value.

2) Local vs. National
- you will be lucky to get a local but a national can take months and I mean months, thus it wont be worth if you have to move at a certain time. Try to find one that is local, they have less inventory and it will be more personable to the agent who listed the property.

3) Deal with the Bank Directly
- its as simple as that, you have the authority to ask the seller for permission to speak with the bank directly, in the hopes for getting things moving forward in a timely manner.

Steps to Purchasing Your First Home Successfully

I have been getting many calls regarding first time home purchases. It seems like there is a lack of understanding because everyone, instead of taking the time to research what to do and what they need, thinks buying a home in this market is easy. This point of view cannot be further from the truth. Thus, I made up the best list I could think of, of what first time buyers/investors need to do before talking to an experienced professional:

1) Getting a "Preapproval" letter
- this is huge and probably the biggest step in the process because it proves to us, the realtor, that you have the money for a mortgage thus the bank trust to give you x number of dollars for a mortgage etc...

2) Time frame of the move
- if you are looking to move within 6 months to a year or have NO time frame, what does that tell realtors? It tells us that you cant be serious enough if you have a time frame longer than 3 months. Look, we know this is the biggest decision of your life, financially speaking however if you have the funds, think this is the time in the market to buy, always waiting for the perfect opportunity why are you waiting.

3) Have you been looking for a while?
- if you just started chances are you wont by for a while, you have to get used to the area, used to professionals you want to work with, and used to what you want, without this experience by yourself it is hard for you to say ok this is what I want, now im ready to pull the trigger.

- so look for a while on your own, once you feel that your "ready" and say i want to move as soon as possible and have a preapproval, then you are officially a "buyer" and congrats :)

Knowledge is Power

Hope this helps, any questions regarding the buying process, contact me directly at (201) 533-3070

Realtor Mumbo Jumbo

Recently I was searching for a website to give my clients a dictionary in regards to real estate "mumbo jumbo". this site http://www.realestatewiki.com/ is a pretty good source that shows you the terms and phrases used by real estate professionals.

Given market conditions, there are ALOT of first time home buyers that need guidance so this site should definitely help you out.

Featured in Brokers Weekly

As of Wednesday, July 22, Brokers Weekly put out an article about the ardan house, one of the best craftmenship jobs I have seen in a while. This 12 Unit complex had everything you can think of under the sun in terms of layouts, materials and perfection. Raffi Arslanian is the builder who Griselle and I work with to get his properties sold. Raffi was named a "visionary" in union city urban development by coldwell banker.

There is one more left, so I suggest any one of my clients reading this article should schedule an appointment very soon!

Toll Brothers Project

On June 8th, the toll brothers corporation was said to receive a court decision in there favor for building a new luxury building where an old rail station stood for 80years.

It is going to be a three tower 925 unit building, plus they have agreed to build a performing arts center on the ground level preserving some of the sights old but rich in character buildings.

Market Analysis for First 6 Months of this year

Buyers are still cautious with the current economic enviroment. The problem is 6 months from now can be a completely different market. Its quite amazing, no matter how many times you tell people to buy low, sell high, buy when people are fearful and sell when people are greedy, no one seems to care, I think a large part due to laziness.

Opportunity is here, if you have been dreaming of owning property, if you can afford and are in the market to buy, BUY! The median sales price dropped 10% from the beginning of the year to $535K in Hoboken. Jersey City new median price for May is $257K. What this is suggesting is that a "depression" is virtually not going to happen, it stills makes me wonder why people are still getting cold feet and/or not pulling the trigger when they have all the financials.

I came up with a few reasons why maybe buyers are not pulling the trigger:

1) Laziness, plain and simple, look if you do not want to the research on the financials to make yourself feel secure then its your fault why your not pulling the trigger

2) If you are working with a good realtor, then TRUST them! If a realtor is bending over backwards for you and hes smart about the market knows what hes doing then ask him questions until you feel comfortable.

3) They talk to there friends or people at work! this is the WORST! plain and simple.

Overall reasons for this happening can span on or for a number of different issues. But the reasons stated above seem to be the most apparent.

4 Months and Counting

If you waited in 2008 and seriously looking in 2009 this might just be your big break. Realtors are busier than ever and I have seen bidding wars spur up. The bottom line is buyers know the opportunity is here but please don't wait long. As a wise man once said, "having no plan is a fool, having a plan with no action is a worse off fool."

Under the new stimulus plan, the incentives to buy are of the essence. The $8,000 tax credit ends on December 1st therefore with closings typically running 60-90 days September is the month where you should have your offers in and getting them accepted.

There is a buzz about a second stimulus plan that is being set in place for the creation of jobs. http://www.debtkid.com/2nd-second-stimulus-checks-could-be-coming-soon

Why Havent You Offered Anything For That House!

the bottom line is most buyers are aware of the stimulus package for first time home buyers. Money is "cheap' now to borrow, in fact the lending rates have never been so low! First time home buyers are also temped with a generous tax credit of 8,000. But buyers must keep in mind that in order to benefit from this tax credit, their purchase must close by the end of November.

Most transactions average approx, 60 days to close. It is important to remember that you need to be under contract by the beginning of September or earlier to factor in a sefety net of time - in case YOUR home purchase needs more than 60 days. Inspection issues can add some time.

Properties involving the sellers bank (short sales) can take much longer to close, depending on the circumstances. So remember, it is not too soon to look for your first home.

#14 in Top 50 of Coldwell Banker

Out of all New Jersey and Rockland County, NY, I hit number 14 overall for the end of 2008. Not bad for a tough and exhausting year. Im proud of myself and my accomplishments and wanted to share the amazing news with everyone who reads my blog. Thank you for your continued support.

Also the Hoboken office in the volume of sales generated has reached #1 for entire hudson county, im proud of not just myself but everyone who keeps on making coldwell banker #1 on the charts! :) $93,000,000! GO CB!

(201) 533-3070

$8,000 Tax Credit is to YOUR advantage

The “American Recovery and Reinvestment Act of 2009,” which was signed into law last week by President Obama provides an $8000 tax credit for first-time Passaic County home buyers.

Important Facts To Know:

-It is a tax credit to home buyers, not a loan as in last year's program;

-It is only for first time home buyers, defined as someone who has not had an ownership interest in a principle residence in the 3 year period prior to the date of the 2009 purchase;

-The buyer must remain in the home for a minimum of 3 years;

-It is applicable to purchases between January 1, 2009 and December 1, 2009; and

-Full credit is available to those with adjusted gross income of $75,000 or less ($150,000 for married filing jointly). The credit is phased out entirely for those with adjusted gross income over $95,000 ($170,000 for married filing jointly).

If you bought a home last year under the old $7,500 tax credit rules, those rules still apply to your 2008 home purchase.

W Marks the Spot

The internationally and locally famous descended on the W hoboken hotel last night for its grand opening bash. This brings alot of much needed attention to hoboken, which im very excited about.

The hotel is owned and operated by Starwood, and sits on the block Hoboken-based Applied Development sub leases from the port authority of ny and nj. the port authority actually leases the land from the city of hoboken.

One of our agents, Laura Knecht, has a listings there. Love that girl.

Housing project looking for new director

The Hoboken housing authority board of commissinoers voted thursday to begin a search for a new executive director, after years of rumors that they would like to move the agency's politically connected deputy director to the top spot.

The HHA - which oversees Hobokens 1,353 units of subsidized public housing on the west side of town is currently run by interim robert divincent, adding more validity to the town

Politicians need to be accountable and it seems like they have done a good job here in Hoboken.

This is when you know things have changed...

Pretty unbelievable to see two enormous homes in Weehawken going for $3.75 million, when only 3 years ago they went for $4.1 million each!

But again I disagree with the buying now considering home appreciation rates are negative. These were two multi level brownstones with crazy views of Manhattan skyline. 3700 square feet, i mean come on !!! :)

One of my properties has FULL PAGE SPREAD in newspaper :)

This was published on Saturday. One of my listings the ardan house was featured on a full page ad. People love the area and not only that price. The craftsmanship is out of this world as alot of my clients say. The property was done by a well known developer who sought out the opportunity to bring a little of hoboken sheikness to and up and coming area. The combination was great they raved!

Over 50% of the units have been sold! 4 more units are left. pricing ranges from $389,000 to $470,000.

The ardan house is exactly what union city needs.

Here are the facts

Real Estate Market Facts

Despite the national trends and statistics you might have heard, the old adage that all real estate is local has never been truer. Market facts in New Jersey, combined with national incentives, make now a good time to get active in New Jersey’s real estate market. Here's why:

- First-time buyers can get up to an $8,000 tax credit.

- Seven-year real estate appreciation in the Garden State at 80% is double the national average.

-Mortgage rates are near historic lows, (last mortgage I did for a client we locked in 4.7%!) giving buyers a better chance to secure low payments for years to come.

-Housing affordability, determined by home prices, income data and other factors, is high in New Jersey.

-Increased Federal Housing Administration (FHA) loan limits means more money is available, expanding your purchasing power.

Buyer incentives help sellers. The more buyers able to enter the market, the larger your potential pool of purchasers will be. Plus, sellers can utilize those buyer benefits if they decide to trade up.

Here are the facts of the real estate market today. Lets go people, get your property on :)

Tips on refinancing your mortgage

If you are thinking of refinancing your mortgage, remember to shop around, compare loan terms and negotiate with lenders. Refinancing allows you to switch to a different mortgage with terms that you think are more beneficial. If your credit score has improved, you may be able to get a loan at a lower rate. Or you may want to refinance for a longer term to lower your monthly payments. (suggestion from a seasoned real estate professional like myself, at least 3 or 4 opinions are necessary).

Be prepared however to pay closing or settlement costs to refinance. Lenders are required by federal law to provide a "good faith estimate" of your closing costs within three days of receiving your loan application.

A refinancing calculator that I use for my clients is located at www.federalreserve.gov