Central New Jersey Real Estate News

 Edison NJ is helping to live up to the “Garden State” image.  Edison residents can now enjoy a Farmers’ market every Sunday morning in the parking lot of th Provident Bank at 980 Amboy Avenue in the Clara Barton section.

The market is busy and offers wonderful, fresh produce from local farms - tomatoes and corn are the best-selling items.  Besides the produce, the market is also selling baked goods and pickles.

This market is part of Edison Township’s Neighborhood Preservation Program which is designed to revitalize the Clara Barton neighborhood area.  This is the first farmers’ market in Edison since 1980.

If you are thinking of moving to Edison NJ or Central New Jersey, let me know and I’ll be glad  to advise  you.

My last post dealt with the bones of the new tax credit.  Now thanks to Realtor Tim Burrell of Raleigh NC, I can give you a more detailed account of how this new credit will work for you.

The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time homebuyers.  When is the last time someone gave you a $7,500 loan, that has no interest, no payments for two years, and if you do not make enough profit when you sell, you do not have to pay back the loan?  That is what first time homebuyers get.  Call everyone you know who wants to buy their first home, this is too good to miss.

If you have not owned a home in three years, you are a first time home buyer.  If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for a credit.  Call your friends who just bought a home and tell them they may take $7,500 off their tax bill if they qualify.  It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500.  So, if the home costs $65,000, your tax credit is $6,500.  If the home cost $100,000, you would get a credit of $7,500.  This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit.  In other words, you take $7,500 off your tax bill.  What if your tax bill is only $5,000?  The IRS will send you the additional $2,500 as a refund.  When was the last time the IRS sent you a refund because you bought something?

The loan has no interest, and will be paid back over 15 years.  You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment.  You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year.  If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house?  You pay the balance back at the closing.  So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house.

What happens if you do not make enough money when you sell your house?  They forgive the rest of the debt.  In other words, get $7,500 now and pay back nothing if your house only breaks even, or loses money, at closing.  When was the last time you got a loan on a speculative venture where the person who gave you the loan forgave the rest of the loan if you did not make enough profit on the sale?

The risk of loss in buying now is on the government.  In other parts of the country where real estate is going down in value, you can lose 10% of the value of the home (up to $7,500) and the loss is covered by the fact that you do not pay back the tax credit.  The Raleigh real estate that first time buyers can aford is going up in value, so we are not as worried about the risk of loss.  Even a bad buy that does not go up in value is covered by the tax benefit because you get $7,500 no matter what happens.

 Similarly, if you die before repaying the debt, it is forgiven.  There are special rules for sales as a result of divorce or if the government takes your property by condemnation.

There are restrictions on the amount of income that you can make and still get the credit.  But the restriction is $75,000 per year for a single person and $150,000 for a couple filing jointly, so the vast majority of people qualify.   If you make more than that, you can still get some of the tax credit, but there are complicated rules about phasing out the credit as the income goes up.  If you make that much money, you can afford to hire someone to figure out the formula.

The restriction on the location of the property is minimal, it has to be in the United States.  Not too tough, huh?

There are minimal restrictions on the financing.  If you use a loan that is supported by mortgage revenue bonds, you do not get the tax credit.  These loans are normally made by North Carolina housing agencies, but there are not many of them available, and the qualifications limit their use.  In other words, nearly every loan allows you to get the tax credit.

What is the catch?  You have to buy your first house in three years before July 1,2009, not have super high income, not use bond financing and buy anywhere in the US,   Not too difficult, right?

If you know someone who wants to buy a home, call them.  If they want to buy in the Central New Jersey area have them call me and I will take exceptional care of them.  If they want to buy anywhere in the US, call me and I will find them an exceptional agent anywhere in the US.

The government gives tax credits to huge companies, here is one for the little guy.  Don’t miss it.

Great News!!   The Housing and Economic Recovery Act of 2008 has just been signed into law.  This is a major victory for consumers who will soon have access to more affordable financing.  First time homebuyers (those who have not owned a home for 3 years) will receive a tax credit to help them enter the home market. 

A quick round-up of the law is:

Amount of Credit:  10% of cost of home, not to exceed $7,500.

Eligible Property:   Any single family residence (including condos) that will be used as a primary residence.

Income Limit:  Yes.  Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000 respectively).

Refundable:  Yes.  Reduces income tax liability for the year of purchase.  Claimed on tax return for that tax year.

First-time Homebuyer Only:  Yes.  Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.

Recapture:  Yes.  (6.67% of credit) to be repaid each year for 15 years.  If home sold before 15 years, then remainder of credit recaptured on sale.

Effective Date:  Purchases on or after April 9, 2008

Termination:    July 1, 2009

Right now is a great time to buy and there are plenty of homes to search from.  I specialize in helping first time homebuyers, so if you would like more information, please contact me.  You can also visit me on the web.

New Jersey has announced it’s SAT scores for 2007.  SAT scores in New Jersey have dropped slightly from 2006.  In 2006, the overall average was 1503 and in 2007 it was 1489 - not really a great difference.

The top eight high schools were all vocational schools that concentrated on math, engineering or economics.  Haddonfield Memorial High School in Camden made Number 9 and Milllburn Senior High in Millburn, Essex County came in at Number 10.

In Middlesex County:

J.P. Stevens in North Edison was Number 36 with an average score of 1682.

East Brunswick High was at Number 40 with an average score of 1662

Highland Park was at Number 45 with an average score of 1653.

Metuchen High School was at Number 82 and Edison High was at Number 107.

If you are looking for a wonderful area to live with good schools, take a look at the towns of Middlesex County.  Let me know if you would like further information.

On August 15th the price of a ticket in New Jersey is going to be increased.

The price of a ticket for the violation of failing to show your driver’s license, registration or insurance card at the time you are stopped is going from $44 to $173.  Please make sure all your vehicles have the proper documents in them at all times.

If you jump in the car to run to the store and forget your wallet with your license in it and you are stopped….. there goes $173.  And the fine for not having all three documents is $519 (ouch).

Also be aware that the fine for hand held cell phone use while driving will be going up to $180 - a very expensive phone call.

If you are thinking of moving to New Jersey or even within New Jersey, please contact me for information.

This Could Be Your New Home!!

Stunning colonial home set on a tree lined street in Livingston Acres, one of North Edison’s most desirable neighborhoods.

This lovely home offers 4 bedrooms and 2 full bathrooms and a powder room. There’s an entertainment sized living room and a spacious formal dining room. The eat-in kitchen will satisfy any cook and is open to the light and bright family room with a fireplace and french doors. There’s also a large open study leading into the family room. Across the gleaming hardwood floors in the foyer you will find the laundry/mud room leading to a 2-car garage. There’s a full basement which has been partially finished as a den/rec room. All this on nearly half an acre of property.

The beautiful brick patio surrounded by green lwn, flowering shrubs and trees provides an oasis for peaceful relaxation. The wooded area at the back of the property adds to the privacy.

This very special home is close to Metro Park train station with a direct line to Manhattan and Princeton, shopping and major highways.  It is located in the North Edison J.P. Stevens school district.

Asking Price: $685,900

If you would like a private showing of this special home, located in this desireable neighborhood in North Edison, please contact me by phone or e-mail.

WESTFIELD

The median single family home price in Westfield for the week of June 15, 2008, is $883,500.

Market action has been trending down lately, while inventory and days-on-market are climbing.  The trends imply a weakening market in Westfield NJ.

Price:  There is a downward trend for prices which have been weak in recent weeks.

Supply and Demand:  Local conditions are causing a strong buyers’ market with several months of inventory available.  At the current sales rate, buyers should find ample choice.

                           SCOTCH PLAINS

The median single family home price in Scotch Plains for the week of June 15, 2008, is $709,000.

Inventory and days-on-market are both experiencing a higher trend recently.  However, an improving amount of market action implies some increased demand will temper the negative trends.

Price:  There has been relatively little price change this week.  However, there has been a continuation of a slight trend upwards over the last several weeks.

Supply and Demand:  Local conditions are causing a trend quite strongly in the Buyers’ market zone.  There are several months of inventory available and at the current sales rate, buyers should find ample choice.

If you are thinking of living in Westfield or Scotch Plains NJ and would like further information, please let me know.

 

EDISON

For the week of Sunday June 8, 2008, the median single family home price in Edison is $482,450.  The amount of inventory is up and market action by buyers is down.  While days on market appear to be trending lower, the overall conditions are weakening just a little.

Price:  The market has been on a downward trend recently and while this week was essentially flat, the cycle continues.

Supply and Demand:  Local conditions are currently quite strongly in the Buyer’s Market zone.  With several months of inventory available at the current sales rate, buyers should find ample choice.

                       METUCHEN

For the week of June 8, 2008, the median single family home price in Metuchen was $479,900.  Inventory is up and Market Action is trending down.  While days on market appear to be trending lower, conditions are weakening a  bit.

Prices in Metuchen have been on a downward trend recently and this week, while essentially flat, doesn’t break us out of that cycle.

Supply and Demand:  real estate conditions in Metuchen are currently quite strongly in the Buyer’s Market zone.  With several months of inventory available, buyers should find plenty of choice.

If you are looking for an Edison or Metuchen home, now is a great time to buy.

 

Following right along from my previous posting, there are several things a real estate professional can do to improve a home’s chance of being well positioned in the market and selling faster.

Finding the Silver Cloud:

• What makes this home unique?
• What was it about the home that made the current owner purchase it in the first place?
• Publicizing the good aspects of the home and trying to address negative factors in a positive manner.

Easy Access to Showings.

The very best way is for the agent to “call the listing office first” and then be allowed to enter by lockbox.

Good Photographs & Virtual Tours

High resolution, informative photograph attract buyers.  A good virtual tour with lots of views is an enormous positive.  Most buyers prefer not to look at fast spinning virtual tours.  The ability to download photos so buyers can e-mail listings to their family or friends.

Broker Open Houses

Broker Open Houses are invaluable to get the local agents in who sell the homes in the area.  If they see the home, they are more likely to bring their buyers to it.  Food motivates: offering a lunch makes the Open House more appealing.

If you would like more tips on selling  your home, just let me know.

With the New Jersey real estate market slowing down, inventory has increased and the numbers of buyers have decreased.  Obviously, this makes it harder to sell your home.  But, some homes still sell.  So why do some homeowners have a successful sale while other people experience their homes sitting on the market for long periods?

While, obviously, some of this is due to the location, price and condition of the home, sometimes it’s the result of poor marketing efforts.  Here are some mistakes you may want to make sure you avoid:

Putting Poorly Shot or Dark Photograhs Online.  The idea of a photograph is to attract a buyer not to turn them off or frustrate them.

Restricting Showing Hours.  If an agent can’t easily show your home, they will just pass on to another.  Don’t forget there’s lots of inventory out there.  Unless you have a very good reason not to, have a lockbox placed on the property.  Don’t have restricted hours and don’t ask for 24 hours notice.

Low Commission.   This is not greed.  It just causes agents to suspect that the seller isn’t very motivated to sell unless they are getting their asking  price.  If the seller isn’t offering a competitive commission - it would seem that they won’t be negotiable on their price.

Keeping the Sale of Your Home a Secret.  Allow your agent to put a sign in the front yard.  The neighbors are going to suspect something is going on anyway when they see strangers visiting  your home on a regular basis.  You can’t sell a home if it’s a secret!

Poor Descriptions.  With so much competition on the market, make sure your marketing material lists all the attributes of the home and makes it appealing.

No Virtual Tours.  Buyers today start off their search online.  Many don’t bother to even look at your listing if they can’t see a virtual tour with good photographs.

This is just a short list of things you need to avoid when selling your New Jersey Home.  Let me know if you would like to know more.