Not just selling shore homes, selling a shore way of life. Your resource for the best homes, hotspots, & happenings in Margate, Ventnor, & Atlantic City.

Friday, October 29, 2010

The Price Is Right...or Is it?

By Mark Arbeit
You’re selling your home, you’ve called a Realtor®, and now you need to decide on PRICE.  Sure, you want to hear what the Realtor® has to say, but you probably already have an idea of how much you want to ask, and it’s probably based upon a number of factors:

• What you originally paid
• How much you spent on improvements
• What you want to do with the proceeds
• What your neighbors are asking for their homes
• How much you owe on the property

While all these factors are important to you financially, and key to your decision to sell, none should influence the selling price. Why? Because none of these factors determine Market Value. 

How is Market Value Determined? 
The Market Value of a property is based upon just three things: (1) condition, (2) location and most importantly, (3) recent comparable sales (“comps”) over the last six months...that’s it!

If you want to sell your home, asking price must be consistent with Market Value. 
If you purchased at the height of the market, chances are you paid top dollar for your home.  This does not mean you overpaid, because that is what your home was worth at that time. However, if the market has declined in your area (as it has in most) and comparable homes are selling for less than you originally paid, Buyers will not pay it now, nor should they, because it would mean overpaying based on current Market Value.

Unfortunately, many Sellers resist pricing their homes at current Market Value. 
They believe pricing realistically will hinder their ability to negotiate.  They want that “extra cushion” for the “lowball offer”. Although this sounds like a good idea, it is not.  When you put a property on the market, you want as many showings and as many offers as soon as possible, and the more realistic the price, the better chance you have.  You impede this marketing process by overpricing. 

Here are 6 proven reasons why overpricing is dangerous:
1. Overpricing may make you miss out on pent-up demand. 
Most activity on a listing comes within the first 30-45 days. An initial high price can discourage Buyers – causing you to miss out on pent-up demand – or tempt Buyers to wait for the price to drop.
2. Overpricing may result in few or no showings. Too high a price will eliminate qualified Buyers, because many Buyers won’t look at homes priced above their ceiling. And Buyers who can afford the price won’t waste time looking at an overpriced listing because they know they can get more house for their money elsewhere.
3. Overpricing helps sell the competition. 
Realtors® may actually use your home’s high asking price to underscore what a good deal their comparable but lower priced listing is, and that other home will probably sell first.
4. Overpricing could frustrate prospective Buyers. 
Prospective Buyers who might stretch their best offer become frustrated when they can’t buy the home they want at fair market value because a seller is being unrealistic.
5. Overpricing will frustrate your own timetable. 
You could become frustrated too when your house fails to sell in a reasonable time, leaving your plans in limbo. Only a price reduction will sell your house faster and meet your "move out" timetable – and in the interim you will have lost time without gaining money.  
6. Overpricing risks lender rejection. 
If you do get a sales contract, it may fall through because of a market based home appraisal significantly lower than the selling price. The Buyer may not be able to borrow enough to proceed with closing.

Just because some Realtors® are willing to take your overpriced listing does not mean it will sell at that price.  Why would they take it?  Perhaps in hopes of persuading you to reduce the price when the home fails to sell, perhaps out of “excessive optimism.”  Regardless, this is never in your best interest: Your home is unlikely to sell until “the Price is Right”, but by then it will be "stale inventory" and may even be suspected of have structural or mechanical shortcomings.

BOTTOM LINE: Buyers are smart educated consumers.  Armed with the right information, smart Sellers are pricing their homes correctly and smart Buyers are making realistic offers.  
Properly priced homes are selling!

(This article will appear in the November 2010 issue of Homes and Land Magazine on stands and on-line 11/5/2010)

Thursday, October 28, 2010

It's Always Sunny in South Jersey!

It's hard to believe it's the end of October when we look outside at the beautiful weather! Blue skies, bright sun--who said the beach season was over?! Here at Mark Arbeit and Co. down the Jersey Shore, it's always sunny!



New-home Sales Climb 6.6 Percent in September by Steve Goldstein

New-home Sales Climb 6.6 Percent in September

By Steve Goldstein

RISMEDIA, October 28, 2010--(MCT)--Sales of new homes climbed 6.6 percent in September, figures released by the federal government on Wednesday showed, representing the second straight month of gains, but still well below the pace when a tax credit existed.

Sales of new single-family homes rose 6.6 percent to a seasonally adjusted annualized rate of 307,000, which is stronger than the 300,000 that economists expected in a MarketWatch-compiled poll.

On Monday, a report showed sales of existing homes also were stronger than expected, rising 10 percent, and the two reports lend support to some economists who believe housing demand hit a bottom in late summer.

"After dropping precipitously following the expiration of the first-time homebuyer tax credit, it looks as though new home sales have stabilized," said Nicholas Tenev, an economist at Barclays Capital. "We expect a gradual recovery over the coming months."

Still, the pace of new-home sales is 21.5 percent below the same level of last year.

The pace of new-home sales also is considerably below the 414,000 rate in April, when the market was buoyed by a tax credit that has since expired.

There's also still plenty of supply, with the government estimating supply of 8 months of unsold homes, though that's down from 8.6 months in August. The stock of unsold houses fell 1 percent from August and dropped 19 percent from Sept. 2009.

"With little new construction going on, inventories of unsold new homes at least aren't a problem even with sales at such a severely depressed level, with the number of new homes for sale extending a run of record lows," said David Greenlaw, an economist at Morgan Stanley.

The median sales price rose 1.5 percent from August and 3.3 percent from Sept. 2009 to $223,800 — about 30 percent above the median price of an existing home.

The margin of error for new-home sales is a considerable plus or minus 16.9 percent.

September's housing market was only partly affected by a foreclosure moratorium of some leading lenders, which gathered pace in October.

New-home sales, by definition, wouldn't be affected by foreclosure disputes and in fact could benefit by virtue of purchasers getting "clean" title when buying new properties.

(c) 2010, Inc.
Distributed by McClatchy-Tribune Information Services.

Tuesday, October 26, 2010

Two Open Houses This Weekend!

It's Halloween weekend, but these open houses are anything but frightening! Come join us on Saturday and Sunday at two beautiful properties. Ghosts and goblins, witches and warlocks, creepies and crawlies all welcome!!

When: Saturday, October 30, 12 - 2 P.M.

Where: 104 N. Clermont Avenue, Margate
Totally renovated to the studs by "Remarkable Renovations" in 2009, this showplace home is just 3 blocks from the beach in Margate, with 3 bedroom, 2.5 bathroom home (plus a BONUS ROOM with Murphy Bed too!) and features all hardwood floors, large eat-in kitchen with granite counter tops, central AC, first floor master bedroom suite, and an open floor plan with expansive great room. Outside highlights are attached garage, large covered porch, fenced yard with E.P. Henry Patio, enclosedoutdoor shower & gas line barbecue. Asking price: $569,000

See more pics below:



When: Sunday, October 31, 12 - 2 P.M.
Where: 709 N Harvard Ave, Ventnor (NEW LISTING!!)

Located across from the bay in Ventnor Heights on a most desirable street, this spacious 3 BD, 2.5 BA home features dramatic style with great living space. The 1st floor features a large living room and a family room-complete with cathedral ceiling with skylight & brick fireplace. The large eat-in kitchen can even fit a table for 8. Upstairs there's a master BD suite with a separate dressing area. Outside the backyard is enhanced by beautiful landscaping & an intimate patio with a built-in gas grill. New roof & siding! Asking Price: $365,000

See more pics here:

Even MORE New Listings!!

We're working hard here at Mark Arbeit and Co. to bring you the newest listings at the Jersey Shore! We have two more today that are guaranteed to make the housing crisis a forgotten memory:

3851 Boardwalk, Unit 905, Atlantic City
It will be hard to decide which is more beautiful - the inside of this totally renovated studio condo or the breathtaking panoramic ocean views from inside or from the large balcony. Being sold fully furnished, this large "L" shaped studio features a kitchen w/granite center island breakfast bar, spa bath w/custom tile & designer fixtures & state of the art engineered hardwood floors through out. Numerous building amenities include 24 hour front desk security, garage parking, health club facilities & pool.

709 N. Harvard Avenue, Ventnor

Located across from the bay in Ventnor Heights on a most desirable street, this spacious 3 bedroom, 2.5 bathroom home features dramatic style with great living space. The first floor features a large living room and a family room-complete with cathedral ceiling with skylight & brick fireplace. The large eat-in kitchen can even fit a table for eight. Upstairs there's a master bedroom suite with a separate dressing area. Outside the backyard is enhanced by beautiful landscaping & an intimate patio with a built-in gas grill. New roof & siding!



New Listing: Lowest Priced Studio at the Ritz!

It's the start of a brand new week, which means brand new listings for all of our Buyers and Friends! Our featured listing today is a studio at the Ritz--the same great Ritz quality for a very low price!

Come see why Investors are flocking to the Ritz. This is NOW the LOWEST priced Studio in the building! The unit sleeps 6 and being sold fully furnished with a custom wall unit that has a dining table, and TWO Murphy beds. The Ritz is perfectly located next to The Quarter, The Walk and right on the Boardwalk and the beach! Amenities include a brand new state of the art year round pool, gym, social room, 24/7 security, with all utilities included in the condo fee.

Friday, October 22, 2010

Another Successful Brokers Open Luncheon!

Every so often, we put our various other skills to use in the spirit of generosity and goodwill by holding a Brokers Open Luncheon for other real estate agents. On September 28, we combined a beautiful property with Mitch's gourmet cooking skills for a fantastic event at 104 N. Clermont in Margate.

The Event Invitation:

Everyone seemed to enjoy themselves (and certainly the food!) so much that we decided to take photographs of the occasion, and share them with all of you!

Stay tuned for future Brokers Open Luncheons!