Real Estate is a funny thing, it goes up and down and most of the time no one really pays attention to it. That is unless your a Realtor, or your looking to buy or sell. But what causes this fluctuation of price? Before I got my license I thought that it was just made up. I can assure you- it's not. Real Estate prices are set by the market. The market is determined by the law of supply and demand. Anyone involved in any sort of business knows that when a tangible good is desirable, the prices for that good goes up because it is in short supply. When that good is not so desireable anymore, the prices go down because there is a lot of inventory that needs to be sold.
In 2006-2007, the real estate market was at it's highest. There were a lot of seller's and not a lot of buyers. The prices for homes were (as we would say today) astronomical. Interest rates were higher, but people were buying. I bought a 1BR, 1BA condo in Mays Landing for $130,000 at a 6.25% interest rate, AND that was a good buy! At that time, it was a "let's make a deal" situation. Seller's always want to leave "cushion" room so that they can leave room for negotiating. You had buyers fighting over homes with highest and best offers. It was a sellers market.
In 2008 everything changed. The economy took a crap, and the housing market fell. People started to lose their jobs, their adjustable rate mortgages kicked in and they weren't able to afford their homes anymore. Foreclosures were on every corner, and you could get them dirt cheap. This is the market I started selling in. I don't know what it was like before, and my description of the boom above could be a little off. My purpose of telling you all this is because there is so much misconception out there, and it's time someone sets it straight.
When I started selling, I was told to list my seller's at market value- that is what has most recently sold in the last 3 months in your area. That tells you what buyers are willing to spend for a home just like yours. I used my judgement, and listed about 6 homes in my first few months. My very first listing sold in 30 days. It was priced right! Buyer came in relatively close to asking price, and my seller's were buying something bigger. It was a match made in heaven.
In today's market, seller's aren't leaving negotiating room (especially if they are listed with a good realtor). They are pricing their homes realistically to sell. Buyers are recognizing this, and they are putting in offers close to, or even in some cases, above asking price. It's even been in my experience that there are bidding wars for properties!
Most of the cheap cheap properties are gone, and now your looking at homes in which seller's have taken the time to make them ready for sale. If you think you are going to steal a home because there is a preconceived notion that the seller "has to sell," your looking for a needle in a haystack. You may miss out on the best time to buy. In some cases, a little elbow grease is all you need to bring your property value up. In 5-10 years when your ready to sell, if you took advantage of today's market you will make money. No one has a crystal ball to tell you what will happen in the future, but if you follow history there is always a shift in the real estate market.
There are other factors that have effected the real estate market. Most recently, our market in Atlantic County has pretty much stabalized. Home sales have gone through the roof with the tax credit, consumer confidence is on the rise now that most of the lay offs have come to a halt, and overall economic outlook is starting to show some light. We are not out of the woods yet, and we have some recovery to do, but you can start to see the light at the end of the tunnel.
If you want to know how much your home is worth in today's market, email me at abeich1219@gmail.com with your propery address, full name and contact information. There is no obligation to list, my theory is knowledge is power.
For more information on the real estate market in your area, visit http://www.realtor.org/
Wednesday, May 5, 2010
Tuesday, April 20, 2010
When you are purchasing your first home, there is so much emotion that goes through your mind. First is the initial excitement of owning this beautiful home! Your in a complete state of euphoria. Then the nervousness kicks in with whether you can afford it or not. Then your family and friends give you their two cents, and all of the sudden it feels like you just made the biggest mistake.
STOP! Stop right now. Let's be realistic. Before you start looking you most likely have been pre-qualified with a mortgage company. They make a decision based on your debt to income ratio what you can afford. You know in your mind what you can afford based on what you bring home each month, what your monthly expenses are, and what lifestyle you are accustomed to. No matter what anyone says, the home you buy is your decision, your the one who has to live there, no one else.
The most important thing when buying your home is making sure that it makes you happy, no matter what anyone else says. Here are few statistical facts to help support your purchase if you are buying a home now and someone is trying to tell you that your crazy.
All facts came from http://www.realtor.org/research/research/reportsstatistics
STOP! Stop right now. Let's be realistic. Before you start looking you most likely have been pre-qualified with a mortgage company. They make a decision based on your debt to income ratio what you can afford. You know in your mind what you can afford based on what you bring home each month, what your monthly expenses are, and what lifestyle you are accustomed to. No matter what anyone says, the home you buy is your decision, your the one who has to live there, no one else.
The most important thing when buying your home is making sure that it makes you happy, no matter what anyone else says. Here are few statistical facts to help support your purchase if you are buying a home now and someone is trying to tell you that your crazy.
- Economic forecasts show an almost $72,000 equity gain in your home if purchase now. That means your home will appreciate within 7 years of purchase (just don't pull your equity out!)
- Within 3 years they are estimate an 11% appreciation in home values.
- By the 2nd quarter in 2011, existing home prices are expected to increase 4.3%
All facts came from http://www.realtor.org/research/research/reportsstatistics
Monday, April 12, 2010
Real Estate Outlook
The world is not coming to an end! Even better, the real estate market is looking up. In Sunday's paper here in Atlantic County the Press of Atlantic City had a entire section devoted to the real estate market in our area. It was a breathe of fresh air to get out hard facts for people to see that everything isn't as bad as most news outlets makes it out to be.
Some key points that I thought were interested was number one chart on median home prices in Southern New Jersey. The most important thing to take from this is that real estate is NOT A BAD INVESTMENT! It's one of the best investments you will ever make, if you do it right. You see, you hear so much about people losing their homes to foreclosure and short sales that you wonder why would I ever buy something so big! Yet if you really look at it, for what you have paid in rent for the last 10 years you probably could have bought 2, maybe 3 houses!
In Atlantic County, over 5 years "they" are projecting that in most towns you will see between a 2%-61% increased return on your investment! In some towns, median home prices even INCREASED from 2008-2009. For example, Galloway Twp saw a $20,000 increase in median sales price. That's substantial considering the market. Overall sals volume has increased each month from last year to this year, but sales priced did fall. So, homes are selling, but the prices are becoming more realistic. You have to remember, for a long time you were paying "bubble" prices on a home.
It's important for everyone reading this to realize that it isn't all bad. There is substantial opportunity out there for those brave enough to reach out and ask the right questions. Anyone purchasing a home right now during this first-time homebuyer surge, if they are smart, will see a return on their investment when they are ready to move again 5-10 years from now. Those who pull out all their equity to buy other things when the market turns around will be the ones suffering years from now, just as some are suffering now.
The point is, invest in your lives the smart way. Buy a home that you can afford based on your own judgement of monthly budgeting. Buy a home you can see yourself living in for the next 5-10 years while you start your family, establish your career. And most of all, buy a home that you can call your own. The tax benefits, tax credits, and pride greatly outweigh the what-if scenerios you could play all day.
I can help you get there. I can show you how much you can afford, I can estimate your payments. I can show you how you can buy with no money down. It's your choice, it's your life, I am only the road-map to get you home. So if you or someone you know is looking to buy or sell, send them my way, they won't be dissappointed.
Some key points that I thought were interested was number one chart on median home prices in Southern New Jersey. The most important thing to take from this is that real estate is NOT A BAD INVESTMENT! It's one of the best investments you will ever make, if you do it right. You see, you hear so much about people losing their homes to foreclosure and short sales that you wonder why would I ever buy something so big! Yet if you really look at it, for what you have paid in rent for the last 10 years you probably could have bought 2, maybe 3 houses!
In Atlantic County, over 5 years "they" are projecting that in most towns you will see between a 2%-61% increased return on your investment! In some towns, median home prices even INCREASED from 2008-2009. For example, Galloway Twp saw a $20,000 increase in median sales price. That's substantial considering the market. Overall sals volume has increased each month from last year to this year, but sales priced did fall. So, homes are selling, but the prices are becoming more realistic. You have to remember, for a long time you were paying "bubble" prices on a home.
It's important for everyone reading this to realize that it isn't all bad. There is substantial opportunity out there for those brave enough to reach out and ask the right questions. Anyone purchasing a home right now during this first-time homebuyer surge, if they are smart, will see a return on their investment when they are ready to move again 5-10 years from now. Those who pull out all their equity to buy other things when the market turns around will be the ones suffering years from now, just as some are suffering now.
The point is, invest in your lives the smart way. Buy a home that you can afford based on your own judgement of monthly budgeting. Buy a home you can see yourself living in for the next 5-10 years while you start your family, establish your career. And most of all, buy a home that you can call your own. The tax benefits, tax credits, and pride greatly outweigh the what-if scenerios you could play all day.
I can help you get there. I can show you how much you can afford, I can estimate your payments. I can show you how you can buy with no money down. It's your choice, it's your life, I am only the road-map to get you home. So if you or someone you know is looking to buy or sell, send them my way, they won't be dissappointed.
Monday, April 5, 2010
What Do We Do Now?
The weather is nice, the kids are starting to get anxious for spring break, and your home is starting to feel a little "full." It's time you think about moving up. You've thought about selling, you know what you owe on your mortgage, and you've read so much about the market and how bad it is, your afraid you might not be able to get what you owe. You could think of 101 what-if scenerios to talk yourself out of looking for a new home. What you need to do is get facts. All good decisions are made when you have the facts to make the best decision possible for you and your family. I believe that with a little knowledge, you can stop all of the what-if scenerios and the uncertainty and make the decision to sell or stay.
If this sounds like you, email me with your property address, a brief description of your home, and what you owe on your mortgage. I will provide you with a market analysis so you can see what your home may sell for, with absolutly no obligation to list your home. I am confident that I will be able to answer any questions you have, and give you peace of mind to make a decision.
I am a Realtor because it's what I do. I love making people's dreams come true, expecially when they think something is not possible. Email me today at abeich1219@gmail.com, all I need is 5 minutes of your time, and your willingness to listen.
If this sounds like you, email me with your property address, a brief description of your home, and what you owe on your mortgage. I will provide you with a market analysis so you can see what your home may sell for, with absolutly no obligation to list your home. I am confident that I will be able to answer any questions you have, and give you peace of mind to make a decision.
I am a Realtor because it's what I do. I love making people's dreams come true, expecially when they think something is not possible. Email me today at abeich1219@gmail.com, all I need is 5 minutes of your time, and your willingness to listen.
Monday, March 29, 2010
Mortgages.. What do I Need to Know?
Buying a home is all about knowing what you can afford. This way, you can enjoy the home your in and not work to pay your mortgage. For anyone who hasn't purchased a home in a while, the mortgage business has changed drastically. What you could do 3 years ago you can't do now, and what you could do yesterday you may not necessarily be able to do today. Here is a rundown of some mortgage basics that you should know if you are thinking about buying:
1. There are two main types of mortgages: FHA and Conventional. A conventional loan is 20% down and no mortgage insurance. FHA loans are 3.5% down (may increase to 5% down), and has mortgage insurance included in your payment. Most all loans are FHA loans.
2. Minimum credit score needed is a 620. If your close, mortgage brokers can do a credit scrub for you, which will show you what you need to do to get your score up.
3. You can mortgage up to 3% of your closing costs. That means you can include additional monies in your mortgage to reduce your total amount due at settlement.
4. USDA has a NO MONEY DOWN mortgage for qualified buyers, and is great for low income families, or people short on cash. There is no money down, and no mortgage insurance. It is only available for purchases in rural areas.
5. There is a construction loan available called an FHA 203K. This allows you to purchase distressed and bank owned homes without having to make any repairs prior to settlement. This loan requires a licensed contractor, and allows you to mortgage money to make upgrades and repairs to any home.
6. Your approval amount is based on your debt to income ratio. Car insurance, cell phone bills, and utilities do not count as debts, so be careful when you get your pre-approval letter that you budget for the amount you can actually afford.
7. Not all condo/townhome associations allow FHA mortgages. Check with a Realtor or Mortgage Broker to find out if they are approved before you begin looking.
If you are thinking about buying a new home, the first step is to contact a Realtor. Any good Realtor can provide you with an estimate of what you can afford, as well as estimate closing costs and payments on a home to give you an idea of what it takes to afford the home you love. They also have a network of mortgage professionals that they can call to get you pre-qualified. It's one-stop shopping and makes the process much smoother.
Realtors are also familier with appraisals, and what it takes to get your mortgage appraisal to be clean and at the price you need it. There is a lot more about appriasals which you can read in a future blog, but the long and short of it is to contact a Realtor so they can provide you with the information you need based on a specific property.
There is much more to the mortgage world then what I have posted here and any questions or concerns when it comes to obtaining a mortgage should always be presented to a mortgage professional. I work with many mortgage brokers in the area and can refer you to someone I know and trust will provide you with the level of service I feel my clients deserve.
If you are thinking about buying or selling, or not sure if you can, email me at abeich1219@gmail.com and I will go over some information with you. Give me 5 minutes, you will be glad you did.
1. There are two main types of mortgages: FHA and Conventional. A conventional loan is 20% down and no mortgage insurance. FHA loans are 3.5% down (may increase to 5% down), and has mortgage insurance included in your payment. Most all loans are FHA loans.
2. Minimum credit score needed is a 620. If your close, mortgage brokers can do a credit scrub for you, which will show you what you need to do to get your score up.
3. You can mortgage up to 3% of your closing costs. That means you can include additional monies in your mortgage to reduce your total amount due at settlement.
4. USDA has a NO MONEY DOWN mortgage for qualified buyers, and is great for low income families, or people short on cash. There is no money down, and no mortgage insurance. It is only available for purchases in rural areas.
5. There is a construction loan available called an FHA 203K. This allows you to purchase distressed and bank owned homes without having to make any repairs prior to settlement. This loan requires a licensed contractor, and allows you to mortgage money to make upgrades and repairs to any home.
6. Your approval amount is based on your debt to income ratio. Car insurance, cell phone bills, and utilities do not count as debts, so be careful when you get your pre-approval letter that you budget for the amount you can actually afford.
7. Not all condo/townhome associations allow FHA mortgages. Check with a Realtor or Mortgage Broker to find out if they are approved before you begin looking.
If you are thinking about buying a new home, the first step is to contact a Realtor. Any good Realtor can provide you with an estimate of what you can afford, as well as estimate closing costs and payments on a home to give you an idea of what it takes to afford the home you love. They also have a network of mortgage professionals that they can call to get you pre-qualified. It's one-stop shopping and makes the process much smoother.
Realtors are also familier with appraisals, and what it takes to get your mortgage appraisal to be clean and at the price you need it. There is a lot more about appriasals which you can read in a future blog, but the long and short of it is to contact a Realtor so they can provide you with the information you need based on a specific property.
There is much more to the mortgage world then what I have posted here and any questions or concerns when it comes to obtaining a mortgage should always be presented to a mortgage professional. I work with many mortgage brokers in the area and can refer you to someone I know and trust will provide you with the level of service I feel my clients deserve.
If you are thinking about buying or selling, or not sure if you can, email me at abeich1219@gmail.com and I will go over some information with you. Give me 5 minutes, you will be glad you did.
Wednesday, March 24, 2010
Spring is here- have a yard sale!
If you've thought about selling your home, but have no idea where you want to go- and where you will put all of your stuff- have a yard sale! Clean out the attic, get down in the basement, and get those old tools out of the garage and get rid of them! You know what they say, one man's trash is another man's treasure.
The weather is getting nicer, and there are avid yard sale goers out there getting ready for the season. This is the best way to get rid of some items you may not necessarily need anymore, plus it will put into prospective how much "stuff" you really have. Plus its a way to get the whole family involved. Your teaching your children the value of items, and teaching them about money. Let them play cashier and help them count back change.
Another way to get rid of old stuff, there are websites that will buy your old electronics. You input the condition of them, and it tells you how much money they will pay you for it. They will even take old broken electronics and properly recycle them for you. Try out http://www.gazelle.com/.
All of this will help you clean out the junk in your home and help you get it ready to sell. Here are some tips to get your home "show ready" to make the most of every showing.
1. Clean up the clutter. Make sure all the toys are put away, beds are made, and clothes put away. Everything should be surfaced cleaned.
2. Create ambiance. Play some light music, light candles that smells good, and leave the lights on. This will appeal to the senses of the buyers to try and help them feel at home.
3. Don't linger around. Buyers feel uncomfortable being in your home if your hovering. They will not be able to see themselved living there if they are distracted by you watching their every move.
4. Remove personal items as much as possible. It's hard for a buyer to feel at home when a huge family portait is hanging in the living room. You want to take yourself out of the picture and allow prospective buyers to try and fill it with their own belongings in their mind to see if the home works for them.
These are just a few tips, for more information on this topic and more visit http://www.century21.com/sellingadvice/. And as always, email me at abeich1219@gmail.com with any questions.
The weather is getting nicer, and there are avid yard sale goers out there getting ready for the season. This is the best way to get rid of some items you may not necessarily need anymore, plus it will put into prospective how much "stuff" you really have. Plus its a way to get the whole family involved. Your teaching your children the value of items, and teaching them about money. Let them play cashier and help them count back change.
Another way to get rid of old stuff, there are websites that will buy your old electronics. You input the condition of them, and it tells you how much money they will pay you for it. They will even take old broken electronics and properly recycle them for you. Try out http://www.gazelle.com/.
All of this will help you clean out the junk in your home and help you get it ready to sell. Here are some tips to get your home "show ready" to make the most of every showing.
1. Clean up the clutter. Make sure all the toys are put away, beds are made, and clothes put away. Everything should be surfaced cleaned.
2. Create ambiance. Play some light music, light candles that smells good, and leave the lights on. This will appeal to the senses of the buyers to try and help them feel at home.
3. Don't linger around. Buyers feel uncomfortable being in your home if your hovering. They will not be able to see themselved living there if they are distracted by you watching their every move.
4. Remove personal items as much as possible. It's hard for a buyer to feel at home when a huge family portait is hanging in the living room. You want to take yourself out of the picture and allow prospective buyers to try and fill it with their own belongings in their mind to see if the home works for them.
These are just a few tips, for more information on this topic and more visit http://www.century21.com/sellingadvice/. And as always, email me at abeich1219@gmail.com with any questions.
Tuesday, March 23, 2010
What can $8,000 do for you?
With the tax credit time frame windling down, some people may be thinking that they are too late to take advantage. YOU'RE NOT!! The key is you have to work with the right Realtor who knows how to handle the market. There are a lot of properties out there that are bankowned and shortsales, and if you want the tax credit you have to act fast.
Looking at anything that is a short sale is most likely a waste of time as they typically take approximately 60-90 days to close. An aggressive agent might call ahead of time and see if maybe it is possible, as they may have had a buyer that dropped out last minute and the bank is ready. Same goes for a bankowned/foreclosure property. All it takes is a little legwork.
Haven't been pre-approved yet? No problem! I work with mortgage brokers on a daily basis that can get you pre-approved an hour before our appointment. I have dealt with clients that had needed a credit scrub to get their credit up to par, and now they will be $8,000 richer after April 30th. It's a beautiful thing.
So, if your thinking about how $8,000 can change your life, (or even $6500 for you second-time homeowners), email me at abeich1219@gmail.com and let me show you how we can make it happen. You need someone on your team that cares just as much about your goals as you do, and I can promise you that your needs will always come first with me.
Looking at anything that is a short sale is most likely a waste of time as they typically take approximately 60-90 days to close. An aggressive agent might call ahead of time and see if maybe it is possible, as they may have had a buyer that dropped out last minute and the bank is ready. Same goes for a bankowned/foreclosure property. All it takes is a little legwork.
Haven't been pre-approved yet? No problem! I work with mortgage brokers on a daily basis that can get you pre-approved an hour before our appointment. I have dealt with clients that had needed a credit scrub to get their credit up to par, and now they will be $8,000 richer after April 30th. It's a beautiful thing.
So, if your thinking about how $8,000 can change your life, (or even $6500 for you second-time homeowners), email me at abeich1219@gmail.com and let me show you how we can make it happen. You need someone on your team that cares just as much about your goals as you do, and I can promise you that your needs will always come first with me.
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