Market conditions dictate list price

When you list your home you want to get the best possible price and that is what your listing agent wants too.  In the current market it is difficult to hit on the right number until the home has been shown and buyer and agent feedback is accumulated.  Even high end homes are affected and it is the listing agent's duty to analyze the data and explain the results to the seller in terms they can understand.

Our office currently has a listing on Eileen Dr. in the Park Ridge section of Cedar Grove that, historically speaking, should be in the million dollar price range.  Market conditions and buyer feedback have caused a major price reduction and this custom home with 4 bedrooms including a huge master suite, a massive great room with fireplace, dining room that currently houses a table for 14 and a finished basement complete with a full bath, bonus room, access to rear patio, family room and gourmet kitchen.  This home is now listed at $875,000.  

If you are thinking of listing your home, please keep current market conditions in mind when setting an asking price.  If you are buying a home remember that the listing agent should be on top of prices in the area and the home may be priced to sell in today's market.

If your interested in seeing this home on Eileen Dr. or any other home in the area, please let me know.

Has your listing expired?

In this market many houses come on the market and never sell, there are a number of reasons for this that can be overcome by your agent.  Market positioning is key, this means if your home is overpriced for the neighborhood you will not get the buyers you are looking for. Below is a check-list developed by Real Estate Marketing Experts that can help you discover the reason for your disappointment.  Go over it, answer the questions truthfully and if you have any questions or would like me to help make a marketing correction please feel free to contact me.

North Jersey Short Sales (Part 2)

Once you have decided to try to short sell your home call your lender and see if they have a pre-sale approval process.  Not all lenders do this but you can ask.  Most lenders will give you a short-sale information package to fill out.  This will include a hardship letter where you explain why you can no longer pay you mortgage, copies of the past 2 years income tax returns, a list of all outstanding debt, a list of all recurring payments you must make (utilities, water, groceries) pay stubs and other financial paperwork.  This package must be completely filled out and returned to the bank before you can accept an offer.  You can list your house with a realtor.  A short sale must be listed with a licensed real estate agent who has no relationship to the seller, all short sale transactions must be arm's length, which means that the seller, the agent and the buyer can have no relationship. 

North Jersey Short Sales (part 1)

If you are one of the many homeowners in North Jersey who is finding themselves underwater in their home you need help. Your first step should be to contact your lender and request a loan modification. If you really can't make your full mortgage payment every month and the recommended sales price of your home is less then you owe on it your bank may approve a reduction in your monthly payment. This is often the only help a distressed homeowner needs to move forward and continure living in their home.

If you are not approved for a modification and you can't make your mortgage payments you are risking foreclosure. In a foreclosure the mortgage holder takes the house back and you are forced to move. A possible alternative to foreclosure is short selling your home. In a short sale you maintain some control of the sale and the timing of your move.

If a short sale is the road you decide to travel keep in mind you will need a Real Estate Agent who is specially trained in short sales and a Real Estate Attorney who is experienced in the short-sale process.

I hold the SSFR designation which is the Short Sale and Forecloser Expert designation earned through the Board of Realtors. A short sale is anything but short and does have credit ramifications but in a desperate situation it is a viable alternative to foreclosure.

Selling your Home - Not Really

If your planning to sell your home there is one critical thing you have to remember from day one.  Your are not selling a home, your are selling a house.  The buyer needs to make it his home.  The memories and decor that make this house your home have to be packed away before you list your house.  Thinking of the property as your home once you decide to list will expose you to many problems.  Pricing is effected by this thought process, you really can't put a price tag on a home.  You need to remove your emotions and think of this as a business deal.  Your Real Estate Agent will give you advise as to price that will not include the value of the time you have spent in the home. 

My best advise is to not be home when the house is shown.  Buyers like to put their own spin on a house and if you cringe knowing they are taking out the shelves you so lovingly built into the nursery wall it may effect the way you negotiate a sale. 

You may have spent hours finding just the right color orange for the kitchen but the buyers want a green kitchen. 

Remember, you are selling a house not a home

Finding the Home Thats Right for You

With all the choices in today's market, how do you go about finding the right home? It seems the more research you do, the more confused you get.

It's important to understand your needs and plan for them. Know what you want in a home, what's important to you, and what you can live without. Many of us start out with a champagne taste and a beer pocketbook, so it's important to be realistic.

Where and what you buy will affect you for as long as you live in the house, If you make the wrong purchase that may seem like a very long time. Get your priorities in order before you start looking or even talk to a real estate broker or sales associate.

For first-time home buyers this is a new experience, so it's especially important to do your homework. Ask people who have previously purchase a home about their experience, but don't ask for advise.  Only you can know what you really want and how much you are willing to pay for it.  If you currently own a home, you know exactly what's lacking. You may need another bedroom or bathroom, or a good school nearby.

First, decide where you want to live. A big part of the answer hinges on where and how you earn a living. If your job requires a lot of reading or is quite stressful, public transportation may offer valuable time to sit quietly. Regardless, you should practice the commute at the time you would be traveling before you make a commitment. A 15 minute drive on a Sunday afternoon may be a 60 minute stop and go during rush hour.

People with children have other major considerations: school and safety. If you plan to send your children to private schools, you can live where you want assuming you can easily arrange transportation. Call the local Board of Education and arrange a tour of the school you children will attend, preferably during school hours.

Obviously, lifestyle is an important consideration. People who frequently dine out, go dancing and attend the theater probably belong in the city or a close-in suburb,  make sure you're in close proximity to the things that matter most.

It used to be that homes came in a limited variety, but today, you have many choices. In addition to the traditional single-family home, you can buy a townhouse, condominium or apartment condominium or co-op. 

In condos and other such communities, make sure the rules and regulations, as well as the by-laws, match your lifestyle. This type of housing is great for people who want to own their own space without being responsible for mowing the lawn or repairing the roof; a management company handles that.

On the other hand, you'll pay fees for these services. In addition to checking the documents and financial soundness of the homeowner's association, you must determine if the monthly fees are worth the services and additional amenities such as a swimming pool or exercise room. Another consideration, if you are using an FHA mortage is if the develpment is FHA approved.  Not all complexes qualify for FHA funding.

Affordability can be a factor not only in the type of housing, but whether it's new or an existing home. Old houses often have fine woodwork or interesting nooks and crannies not normally found in new homes. They generally sit on landscaped lots with mature trees and grown bushes.

New homes may cost more, but you can make many more decisions on amenities, colors, carpeting and fixtures. Make sure you're dealing with a reputable builder, and have an attorney review all documents,

Selecting a real estate professional is an important first step in beginning your search. Ask for personal recommendations to find an individual who is knowledgeable about the neighborhood and has access to the local Multiple Listing Service. Make sure you feel confident about his or her knowledge and skills, and understand the business relationship that you have established between you.

If you are searching for a home in the Northern NJ area I would be happy to help.

Gail Vinnal                                                                  Accredited Buyer Representative (ABR)

My new designation

Today I received a new designation through the National Association of Realtors, I am now an Accredited Buyer Representative (ABR).  What this means is that I have attended continuing education classes geared specifically to a Real Estate Agent who works with the buyer end of a Real Estate Transaction. 

As a Buyer Representative I offer a higher degree of service to a homebuyer making the buyer the center of the sale.  Working with buyer's is my favorite part of the Real Estate Business and finding them the perfect home is a game I always like to win.  Some agents prefer the listing side of the business but, although I do take listings and am very good at working them, my favorite part of the job is matching up a buyer's wants and needs with properties currently on the market. 

Although all agents can and do work with both buyers and sellers most transactions lean to the side of the seller, after all, the seller is the one who has the property, sets the price of the home and pays the Real Estate Commission out of the proceeds of the sale.  In the past the general feeling has been that all agents work for the seller because that is who pays them.  The educational materials we received  in this class point out that at a closer look the seller may possess the property but the price is actually set by the buyer, The seller has the option of accepting or refusing an offer but if he wants to sell his home he has to negotiate with what the buyer offers him.  The same with the Real Estate Commission, the commission is paid out of the proceeds of the sale according to the terms of the listing agreement but, the commission is based on the sale price that was offered by the buyer and, in normal sales the only person actually bringing money to the closing table is the Buyer so, although the seller negotiates the sales commission the buyer really pays it.

If you or anyone you know is thinking of buying or selling a home, or if you just have questions about the process feel free to contact me.

Gail
gailvinnal@verizon.net

Making an Offer

When you make an "offer" or "bid", the seller of the home can accept or reject it, make a counter-offer or not respond.

If the seller rejects your offer, makes a counteroffer or doesn't respond, your options remain open. You can accept the counteroffer, make another offer or reject it and keep looking.

It's important that you think through your decision before you make an offer. You won't be able to think it over more you have come to a meeting of the minds.

Once both parties have signed the offer the contract is sent to both attorneys for review.  The attorney review period is approximately 3 days or, until both attorneys are satisfied with the wording of the contract.  During the attorney review period either party can cancel the contract for no particular reason.  Once the attorney review period of over the contract is binding.  At this time you will be given a time frame in which inspections must be done and deposit money delivered to your attorney.  The contract will also contain a mortgage commitment date which is when you must have confirmation from your lender that you are indeed qualified for the mortgage you applied for and the lender is committed to lending you that money.

Real Estate Companys - Independent, Unknown National or Well Established Name?

At first glance the answer to which type of company should I choose is obvious.  Having worked for all of the above I'm here to tell you that the choice is not all that clear.  Over time, the benefits of each type of company have worked for different types of agents, buyers and sellers.

When I first was licensed in New Jersey to sell real estate I placed my license with an established national company.  This allowed me excellent training which is what all of my future success was built upon.  Being a small fish in a big pond however, did not give me the personal guidance someone with no clue about the actual customer service needed in the real estate world.

I moved to a local independent office where I received daily guidance and my hand was held through every aspect of my first deals.  An independent office allowed me to learn at my own pace with very little in the way of restrictions on my movement.  The drawbacks to this type of office became evident as I became more knowledgeable in the business and technology started to become a necessary tool in buying and selling homes.  An independent office does not usually have the funds required to establish a web-presence.  As the years went by this became a huge drawback when the person wanting to list their home started to search for the office.  Unless the owner of the independent company is very web savvy and is willing to invest in technology the independent office is not the best place for the business of real estate.
After 5 years I was once again on the move.

I moved to a larger, statewide, Internet based office.  The draw for this type of office was limited in office time was required, with the magic of the Internet most of our business could be preformed from home or on the road as long as there was Internet access.  This type of office worked very well for me as long as the market was booming.  As soon as things started to slow down the into the office mind set was important to keep my head in the game.  When there is alot of business you don't need to go to an office, you are out with buyer's and meeting with seller's, when business slows down if you don't have a business environment to go to life in general takes over and home chores become a focus and your business goes out with the trash.
4 years I was moving on out

The next 3 years found me back at an independent office, but with a twist.  We handled much of the foreclosure market.  I became very efficient at the distressed home sale but my heart was not in it, I do not enjoy profiting from others problems.  I don't think that agents who handle distressed property are wrong, they actually preform a necessary function and without them the people who have fallen on hard times would be in worse shape, this is just not the business for me.
So I moved yet again, hopefully for the last time!

I am now at a huge ,international, very well established company.  Ironically the same company I started with.  I feel they still have the best training.  Each office is independently owned giving it the small independent feel.  It is a huge company which affords an Internet presence that is unbelievable!
With the advent of Internet in Real Estate I have the choice of offices to work out of, so, of course, I've chosen one of the top 10% offices in the entire company even though there are offices closer to my home.  I am lucky enough to have an office full of successful agents behind me.   My new move, my last move looks to be my best move yet.

Century 21 Cedarcrest Realty in Caldwell NJ has welcomed me with open arms, and I thank them for that.  If buying or selling a home is in your future and you are located in northern NJ give me a call, I'd be happy to help!