Happy New Year!

To our clients, friends and family who celebrate the Jewish New Year,

Mark, Mitch and Alli want to wish you and your families a very happy, healthy and properous new year!

HURRY UP HONEY..We Forgot to Buy A House!!!

As predicted, the pent up demand to buy a home has reached a breaking point. People are now looking to buy Real Estate all over the country. Factors contributing to this are a strong and stable stock market, banks willing to lend money, and a stabilization of home prices.

If you follow the news, you have been relieved lately to hear some very positive things about the economy and about the National housing situation across the country. Home sales leaped unexpectedly in July to hit their highest level since last September, and this upward swing has continued through August and into September.
Here at the Shore, we have been inundated with prospective Buyers . . . and it’s a good thing. Now even REALTORS® who found themselves developing a great tan are scheduling home tours on a regular basis. But while being overwhelmed with Buyers may sound like a good thing, a REALTOR® can quickly turn into an unpaid tour guide if Buyers (and Sellers) are not educated about realistic home prices and the home buying process.
There are many kinds of prospective Buyers (first time buyers, investors, second home buyers, etc.) but they all have one thing in common: everyone wants the best possible deal. In order to get the best deal for a Buyer, a REALTOR® needs to know what the Buyer’s top requirements are (e.g.:3 bedrooms, 2 baths, porch, no more than 3 blocks to the beach, price range, conditions, pet requirements . . . the list goes on). This way the REALTOR® can select properties specifically geared to the Buyer’s needs. The REALTOR® will guide and educate a Buyer as needed about the area and the houses on the market, including days on market, current sales and homes under contract. The REALTOR® should also make sure that the Buyer’s expectations are realistic. And to some requirements, the only reasonable response may be: “You want a beachfront house for under $500K? Me too, but it’s not happening!” Now there are less extreme examples, but honestly, with what has gone on in the rest of the country, the expectation of a lot of Buyers is “I want to steal something”.
So make a list, be realistic, and above all PRIORITIZE! Together with your REALTOR®, eliminate and pare down all of the properties currently on the market based upon your price range and priorities. If at this time, there isn’t anything that meets all of your needs, you either need to adjust your priorities or look at the next price point to see if it includes a property that you might consider the “right one” for you. In the meantime, and this is key, a relationship is being built between a Buyer and REALTOR® and when the right property comes on the market, or when a price change occurs on one that you are interested in, your REALTOR® will contact you.
If nobody knows what you want, you risk missing out on the perfect property. Some Buyers prefer to be “free agents” and not work with a REALTOR® beyond a particular home they find on the Internet or a yard sign. They call the specific REALTOR® for one house and will only work with that REALTOR® on that particular house. When they find another house, they move to the next REALTOR® and do the same thing. Unfortunately, if you are not working with a REALTOR® who knows what you are looking for, when that next perfect property does “pop up” or has a price reduction, there will be nobody to notify you. So it pays to have a REALTOR® working just for you, keeping an eye out for the properties you are looking for.
Sellers want to sell and Buyers want to buy, so deals are happening, but only when everyone involved is realistic. While there is optimism in the air and Buyers are plentiful, one must temper these factors with the reality that Buyer and Seller must still have a meeting of the minds. Buyers must realize that while they are going to get a great value on a good property, they are not going to “steal it”. Conversely, similar concepts must be applied to Sellers when they are presented with an offer on their home, and every consideration should be given by both sides to try to arrive at an agreement that both can live with.
So sit down today and make a list of your priorities, ranking them in order of importance. Call your financial institution to determine your price range and call your REALTOR® of choice to assist you to find a great property. Chicken Little can, literally, GO HOME: The sky has stopped falling and so have housing prices!

Hot Times At The Shore - Summer Update

June and July have been very busy months for us. The shore seems even more crowded than it did last year and Buyers have been out in number looking for a good buy. The national news certainly fuels our Buyer's optimistic view of the economy since home sales Nationally has been up for the last three months and whether you agree or not, the cover of Newsweek last week proclaimed, "The Recession is Over".

In any case it is nice to hear some positive news from the media for a change.
In addition to the sales that did settle in June and July there are many more deals finalized that will not close until after the summer. In some situations the Sellers wants to enjoy one last season in their home or perhaps the Buyers already have a place and don't want two; or the property being sold is already rented for the season and the new Buyer can not gain possession until after the season.

In any case, the market is HOT and the shore is selling. This month we even had to deal with several properties that received multiple offers. In this case, the Seller will either select which ever Buyer has offered the most favorable terms, or the Seller may go back to and ask all potential Buyers to bring their "highest and best offer". Potential Buyers then have the option to keep their original offer or make any changes they want. This can include an increase of the amount of money being offered, how quickly they want to settle, or even removing contigencies, like obtaining a mortgage or doing a home inspection.
In the end, it will be the Seller's choice in selecting the Buyer they feel is offering them the best deal. Your Realtor will act as your trusted advisor to guide you in making the best choices.

NEW SALES IN JUNE & JULY!!!
Please join me in sending out congratulations to the Buyers and Sellers I represented in the past few weeks in successful transactions:

CONGRATULATIONS TO:

Dawn & Jerry C. on the purchase of their townhouse in Galloway

Larry & Alise O. on the purchase of their condo in Margate

Mark & Cass B. on the purchase of their Duplex in Margate

Aliza R. & Bryan C. on the sale of their home in Ventnor
Kim F. & Michael S. on the purchase of their home in Northfield
Lila B. on the purchase of her home in Margate
Shirley & Sunny B. on the sale of their duplex in Margate
Harry H. on the sale of his home in Margate
Mark & Beth S. on the sale of their home in Margate
Joe D. on the purchase of his home in Absecon
Erik & Bryna on the purchase of their home in Margate
Bill & Janice E. on the purchase of their home in Margate
Shirley & Sunny B. on the purchase of their home in Ventnor

UPCOMING SALES!!!

In addition to these completed sales, I currently have 11 more properties under contract and scheduled to close in the coming weeks. Good news for you and good news for the shore. Still a great place to invest your money and great place to share with friends and family.

SHOULDA, WOULDA, COULDA...

I fell in love with the Jersey Shore in October of 1999, while visiting friends in Ventnor. The mixture of classic beach cottages and impressive grand estates all within a small area, close enough to a city and yet secluded enough to enjoy solitude, appealed to me. That weekend I made a call to a Realtor on a random yard sign and after an afternoon of searching, I made an offer on the first house I saw and fell in love with. What eventually became my first shore home was a 100 year old Victorian masterpiece just a block and a half from the beach. I shocked and amazed my neighbors, in January 2000 by paying $302,500 for my home, a number they thought to be outrageously high, since no home on my block had ever sold for more than $150,000. Times they were a-changing.

That first summer in Ventnor, I met many long-time summer residents who rented homes every season. They’d tell me about the homes they almost bought, or that their parents or relatives had owned a home at the shore and had sold it years ago for almost nothing. Loving the area, they continued to return to the shore, renting a house or condo for the season, looking for a great opportunity that would enable them to own again. Knowing their parents and friends had sold their homes for so little money somehow prevented them from buying these homes for more money. So they continued to rent and the prices of homes continued to climb. I had conversations with these summer neighbors, and they were determined to buy “someday” when the prices came back down. Someday…….
Over the next few years, home prices climbed rapidly and lost opportunities became the stories at cocktail parties for years to come. The homes in the area continued to sell, and the people that purchased them, more often than not, improved them. “Shoulda, Woulda, Coulda”, became the anthem for many who stood by and watched others purchase and improve the homes throughout the area.

By 2005, everybody who could buy at the shore was buying. Real Estate became the tech stock of the 90’s and homes which didn’t have multiple offers, drew investors who were buying them, renovating them and “flipping” them to other buyers. During these years that “bargain” purchase just wasn’t there. The market was booming and it seemed like home prices would never go down.

As we all now know, in the past few years, the market has changed. In most parts of the country there has been a “housing crisis”. Yet during this time, the Jersey Shore experienced merely an adjustment, not a crisis. Prices have come down, but unlike in most of the rest of the country, homes at the shore continue to sell.
In January 2008, after working with contractors to figure out the cost of expanding my home, I decided I would be better off selling, and buying a new place to meet my needs. After preparing my home for the market, I listed it and it sold to the first person that saw it for $925,000. Something I have learned in this business: your first offer is usually your best offer. I wish my stocks had done as well as my Real Estate.
So now in 2009 we have an opportunity again at the Jersey Shore, and this is a bit of “déjà vu” for me. Only I have clients telling me that they want to rent right now because they think the prices will go down more. Do you smell the coffee? Home prices are lower than they have been in years and mortgage rates, while not as low as they were a few months ago, are still very reasonable and attainable. It’s not 1999, it’s a decade later, but it’s never been better!
So here’s my question: Ten years from now, will you still be renting and saying,

BUYER & SELLER CONNECT – DEAL OR NO DEAL?

Having found the perfect Buyer’s agent to help you find the perfect home, most buyers believe that their biggest hurdle will be finding that property that includes all of the top requirements on their list. The same can be said for the seller, once a worthy Seller’s agent has been employed to market their home. Both believe they have achieved their goals when the two worlds meet. As exhilarating and exciting as this event can be, it is just the beginning of a process that has many twists and turns. You will need a skilled agent to advise you through each step of the process. Step One - The Art of The Deal – Finding the right house, in the right location, with all the right “extras” in the right price range is truly a relief and joy for the buyer. Equally pleased will be the seller who has now attracted a buyer who appreciates the value of their home, for the seller’s asking price and who is “ready, willing and able” to make the purchase. The new hurdle becomes finding a middle ground regarding price.

Both seller and buyer need to depend upon their agents to provide them with comparable sales in the past 3-6 months. While it is important to know what other homes are currently on the market and at what price, the reality is that unless they have sold it is not relevant. Something is only worth what another person is willing to pay for it.

Beyond these numbers, the factors that will affect the choices the Buyer & Seller make may dependent upon personal finances (“I must sell so I will take less” or “I don’t have to sell so I will wait for my price”.) or emotional connections (“I know this house is more than I wanted to spend, but it feels like home!”)

In determining an opening offer, buyers will often want to know two things about the property. 1) How long has it been on the market? , and 2) What was the original price? People often conclude that if a home has been on the market a long time, the seller is desperate. It is also assumed that lowering the price indicates desperation on the part of the seller. While the answer both of these questions can be yes, at times, it is a mistake to assume that to be the case. Unrealistic pricing or poor marketing are just two reasons that a property could have “missed the boat” when it first was introduced to the market.

So you make your initial offer accompanied by a check or money order called “earnest money”. Earnest money, not to be confused with a “down payment” is the money provided to secure the agreement to show “good faith”. If the seller does not accept your initial offer, they will make changes to your agreement and present the signed agreement back to your agent with the changes initialed. This is called a “counter offer”. This process continues until parties agree on price and terms and there is a “meeting of the minds.” Step Two – The Waiting Game – In New Jersey, when you sign an Agreement of Sale, the agreement is not legally binding until the end of a three day period (business days) following the last date of signing and the agreement has been delivered to both parties. The purpose of this review period is to give both parties the opportunity to review this agreement with their attorney and to make any additional changes if needed. This means that during this three day period, the Seller is still allowed to show the property and if another offer is received that the Seller prefers, the Seller can cancel the agreement already signed. The Buyer has the same option. If during this three day period, the Buyer contracts a case of “Buyer’s remorse”, the Buyer can cancel the agreement. Cancellation for either party must be submitted in writing through an attorney’s letter. Step Three – Looking Under The Hood – Unless the property is sold “AS IS”, most agreements provide a home inspection paragraph. It provides the Buyer to arrange a home inspection, with a QUALIFIED home inspector within a given time period after the attorney review period. Generally, the Seller will be expected to deliver a home with a working heating and air conditioning systems, roof and flashings free of leaks, no structural issues with the foundation and no problems with the plumbing or the electrical systems.

The Buyer’s agent should be able to provide you with a list of local reliable Home Inspection companies that past clients have used.
Try to attend the home inspection. It only takes 2-3 hours. You will learn everything you ever will want to know about your home and more; so much more than you will get from the 30 page or more booklet that summarizes the visit. The home inspector will walk you through each nook and cranny pointing out things to look out for in the future.
You will receive a report within 24-48 hours from the home inspector detailing the inspection. Make sure you authorize your agent to receive a copy of this report so that your agent can go over this report with you. Together, you and your agent will determine what problems revealed as a result of the inspection that you will be requesting either to repair or as a credit. In some agreements, Buyers write a clause that gives them the option to cancel the agreement if they want to buy the property based upon the results of the home inspection. Typically the Buyer will have 5 days after the date of the home inspection to present a list of requests to the Seller.
At times this finally negotiation can sometimes be more difficult than the original price negotiation. Sellers feel that have already “discounted” their price sufficiently and are adamant to remain at the price that was agreed. On the other hand Buyers can feel deceived that the property they were sold is not the quality that they thought. At the end of the day, it will require skilled agents to keep both sides calm and their eye on the end goal. Some deals fall apart at this stage. However, most are able to work it out with a little give and take since both have the same goal. Step Four – Seal of Approvals – Every seller must get a number of certifications in order to sell their property. Many agents will handle the paper work and appointments required with regard to the city and the all important Certificate of Occupancy. What you need to know is that you can NOT sell property without it and it requires a city official to be scheduled to come out to check to make sure that you are in compliance. If you are not, the errors will be cited and you will need to make the correction and reschedule the official for a re-inspection. In some counties you can wait up to 2 weeks for an official to fit you in. It is true, you can’t fight city hall so work with your agent to get your home in compliance early so it only has to be done once.
Every home must receive a “clean termite certificate”. Most agreements allow the Buyer to choose the termite inspector. If you have termites or any other wood boring insect, you must get it treated and if there is any structural wood damaged you will have to have it repaired. Without this treatment and remediation you can not get a “clean cert” and without it you can not sell your home. This one is a no brainer. Step Five – The Finish Line – You are almost at the end of the road and you want to make sure things are going to run smoothly.

Here are the last few tips for both buyers and sellers for the last days before you close:

1 . Contact the utility companies to make sure start and stop dates are correct - Buyer & Seller

2. Don’t remove nails from walls when you take down pictures. Leave them or you will have to repair the walls - Seller
3. Bring a lamp to you walk through to check outlets - Buyer
4. Hire a cleaning service to give the place a “once over” after you have moved out –Seller
5. Make sure you obtain copies of all documentation, especially related to underground oil tank removal if applicable. - Buyer
6. Put a bucket, paper towels, window cleaner and cleaning solution in your car, just in case – Buyer
7. Bring all your keys, manuals and garage door openers for the buyers – Seller

8. Jot down questions ahead of time you might have about alarm codes, light switches etc to ask the sellers when you see them - Buyer

Clearly, the process of buying or selling a house does not end when the match is made. Hopefully this five step guide will prepare you in the future for your next purchase or sale.

Margate's Thrilling Thursdays Schedule

Now that Margate has begun "Thrilling Thursdays" I thought you might like to have a schedule of the upcoming event. Below please find the complete schedule. Just "click" on the schedule and it will enlarge so that you can print it.

Enjoy!!!

Making the Change From Renter to Owner

Home-price adjustments in markets around the country have opened doors of opportunity for many renters. This is true for the true first time home buyer and the people who own a primary residence and have been renting a secondary residence at the Jersey shore.

If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be.

Here are six common mistakes to avoid.

1. Not understanding the home buying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (www.hud.gov) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a Realtor, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.


2. Not asking questions. There are many facets and intricacies to the home buying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your Realtor know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.

3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your Realtor to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to so get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.

5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?

6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.

Above all, remember knowledge is key. No question is a silly question. Your real estate agent can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.