Real Estate Information

Finding the right home in the area of your choice is exciting. Buying the right home should not be an emotional decision. Do a little extra work:

• Drive by the home of your choice during day time and night time. You might learn that the quite street you visited day time transformed into a noisy place at night time.
• Talk to people living in the neighborhood. They will give you more information about the safety of the area.
• Do not go with how you “feel” about the house. Visit the house at least two or three times. Make sure to ask questions about the plumbing, electricity and roof. Keep your eyes open for marks on the ceiling which can indicate roof leakage. Windows and doors that are “sticky” can be because of the building’s foundation.

Once you arrived at your new home and you are ready to move in, there are a few more things you have to do:

• Remember to replace the locks of the entry and exit doors. You do not know who has spare keys to the doors;
• Make sure your utility services are connected;
• Ensure the smoke detector  and security system are in working order;
• Confirm with your previous Post Office that your mail will be forwarded to the new address;
• All electrical appliances should be inspected for possible damage in order to make an insurance claim.
• All electronic devices should be inspected as soon as possible for damages in order to make the necessary insurance claim.

Your Real Estate Agent will assist you in finding the best suitable home where you can live your happiest moments.

Alterations and renovations not only add to the value of your property, but also improve your living environment. It is always a pleasure to improve one’s living conditions. People tend to move less since the property market dip. The author of “Location, Location, Location”, Phil Spencer, emphasized in his new book: “Adding Value to Your Home” the importance of “enhancing your property so it is a place to take pleasure from; it is not about simply turning a fast buck with some profit on top”. He said: “There is no point improving your home just before you sell. You might as well do the work straightaway if you can and get the benefit out of it yourself”. Most importantly, be smart on how you add value to your home.

The well-known Real Estate author suggests that you consider long-life ideas such as: adding an extension; converting the loft or basement; or knocking down a wall to gain more light and space. Space is cheaper to build than to buy. Phil says: “Square footage equals money”.

An extension can add what Phil calls “no-nonsense” space: a proper kitchen, extra bedroom, utility room, home office, garage or a bedroom if your family is bursting at the seams. But Phil also applauds “an extension that simply brings delight to your life”, a bonus room. “We work terribly hard and should remember that our homes are sanctuaries from the outside world.” Building yourself a new mini-gym, garden, steam or hobby room will give you pleasure and in many cases can add value later on when you sell. Make better use of your existing space, reorganize rooms and, if practical, knock down some internal walls to create flow. Phil has removed wood panels to open up a boxed-in staircase in his house, ending up with a smart first impression and focal point for the hallway. Once you’ve taken care of the basics, you may choose to install some breathtaking features. Phil’s top tips are:

• Invest in a superb sliding door system that takes up a large part of the back wall of your house and leads visitors out onto the terrace, patio or garden. For light and an all-year-round uninterrupted view of the garden it can be worth the money you spend. Add skylights for drama and much-needed light to dreary corners.
• Replace internal doors with floor-to-ceiling doors. This makes the house look bigger; the ceiling feels higher and gives a rather grand effect. Opt for smart wood in a period property.
• Layer blinds in natural fabrics – a developer’s trick. Use the same color as the walls to make the room look larger and more streamlined, or opt for rich colors to lift the room out of the ordinary. Good-quality shutters can add timeless elegance.

“Do the job properly,” Phil implores. “Spend money on a good boiler and quality taps, as there’s nothing worse than a leaky tap”. This way you will enjoy using them and future buyers will recognize what you’ve done. Simply maintaining your property regularly is another wise way to add to its worth.

It is difficult to imagine anything more nourishing to the soul than family life (by Thomas Moore).The economy is a living breathing entity one constantly needs to adapt and overcome. Pealing back the complexities of the economy and narrow down the fiscal policies, one will get to the naked chore of what America is all about. To provide, and if possible in abundance, to those closest to you: family. A dream you ought to live to the fullest. Now is a great time to invest in a home. Speak with a local real estate agent who holds these family principals in high regard.

At the peak of the housing boom, homeownership in America reached an all-time high at 69.2 percent. Today that number has plummeted to fewer than 67 percent, which may not sound like a huge drop, but that represents roughly 3 million households that were owner-occupied and are now tenant-occupied. The percentage of renters is on the rise, the number of households is increasing, and more Americans are downsizing, all of which point in a single direction: rents are on the rise. In order to take advantage of the current home supply in the market you can make an offer while the home prices are low and move closer to achieving your investment objectives.

Make an offer to purchase a home at a real estate agent. You can get an analysis of every potential property. Obtain the detailed pricing, location and rental income to growth potential and more. Make an offer subject to inspection. The analysis of the figures is of utmost importance. You need a truthful and exact indication of what to expect from your property investment. You should be able to make an educated decision on your property investment. Good communication with your real estate agent is vital. A lapse in communication can sometimes tear a deal apart. This is another reason to let a real estate agent manage the process.

To all my clients, friends and family: I wish you a happy and prosperous 2012!

Potential buyers have a general perception newly built houses are in good condition and are therefore in good condition. But what if the builder used substandard material and practices? So, this statement is not necessarily true. There are houses that have been tested by years and years of use and negligence. Houses built years ago and that stood the test of time. An inspection to determine the quality and condition of the house is recommended in both cases.

• Take a good view at the house from a distance to see if the walls are smooth and flat. If you see cracks discuss it with a professional. It might mean nothing, but it is wise not to ignore it;
• The roof should be properly applied and appear neat;
• Check to see if there is any water damage proof. The excess water must be carried away from the house by the drainage pipes and downspouts;
• Doors must be inspected for open spaces between the door and frame;
• Make sure there is sufficient water pressure. You can turn on the faucets and flush the toilet;
• Are the air conditioners, furnace and heater in good condition and proper working order;
• Make sure the pipes between the fixtures and the heater is copper manufactured;
• The bath fixtures and kitchen fixtures should be in proper working order and of good quality;
• Make sure the main circuit breaker indicates a minimum of 100 amps;
• Quality workmanship should be reflected by the tile work and paint;
• Inspect the stairway. A tilted stairway indicates movement in the foundation.

Look in the attic to ensure the insulation has been done to the correct standard. In moderate climates the recommendation is R-19 (6 inches of fiberglass).

The above list can provide enough information to avoid the costs of a house inspector. If there are any concerns about the home you are about to buy, discuss this with a professional home inspector.

High cost of living, being over indebted or losses of income can worsen the default on mortgage payments. A short sale deals with the lender when the mortgagor can no longer keep up with the payments and the outstanding mortgage is higher than the property market value of the specific area. A short sale must be well explained for the benefit of the seller and the buyer. This process takes longer and is not the same as buying a marketable home.

When investing in a short sale thorough market analyzes and calculations are recommended. The property can be in a condition where renovations and reconstruct ions are required or hidden defects that will impact the repair budget. A contractor is usually of great help to estimate costs. These costs, together with the cost of maintaining the property, are an expense one should spread over a reasonable period. Maintenance, renovations and reconstruction is used to generate sales and can be seen as an expense. Over capitalizing happens when what one indebted costs more than the original value of the home.

Each short sale is different and has its own merits. A lot depends on the lender and on the listing agent. This is a time consuming process. Banks request a broker price opinion which takes a while. To convince the bank to accept your offer, the comparable sales have to support the sales price. The market value is determined by comparable sales of the same area similar to the home in question and with a similar floor plan.

The expertise of a real estate agent is essential when buying a short sale property. This is not a process that you would undertake without being educated, having sufficient knowledge about. For the best professional assistance we encourage you to contact us.

Extensive research was done by Business School professors Eli Beracha of East Carolina University and Ken H. Johnson of Florida International University to prove which makes more sense financially: to rent or to own a home. In their paper “Lessons from over 30 years of Buy versus Rent decisions: Is the American Dream always wise?” the professors do not dispute the social benefits of homeownership: “Home ownership is touted as the American Dream. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”

The professors researched the idea that homeownership is not a better investment plan than renting. “After setting the holding period to the average American’s tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the study period… Individuals, on average, were better off in economic terms to have rented for most of the years in the study period. This first result is strongly dependent upon fiscally disciplined individuals that, without fail, reinvest any residual savings from renting.” The Joint Centre for Housing Studies at Harvard found of a recent study that people do not actually reinvest savings successfully.

Both professors Beracha and Johnson came to the same conclusion: now is the time to buy. “Fundamental drivers now appear to be in place that favor homeownership over renting in the near term future and the second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”The research was concluded with: “Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”The finding of this research came to only one conclusion: Now is the best time to invest in a home.

Real Estate predictions for 2012:

According to the NAR’s chief economist, Lawrence Yun, the housing market is slowly recovering with a predicted 4% increase in sales for 2012. Celia Chen of Moody’s Analytics projected sales to increase over 20% in 2012. The next six months will reflect if the rumors about the possibility of a loss of consumer confidence hold water. Consumer confidence, as measured by the University of Michigan, has seen modest improvement in the last few months after taking a dip over the previous months. A hit in consumer confidence can have an impact on the Real Estate rebound.

Prices are predicted to decrease through the first two quarters of 2012. Decreased prices will force more homeowners into a position of negative equity. Being underwater is one of the reasons that cause people to strategically default on their mortgage payments. If this continues, there will be an increase in the number of foreclosures and cause a setback in consumer confidence. 

Home ownership is better than renting. By owning a home one invests into the property, so the money that you would normally use towards rent now goes into ownership. Once you know which home you want to buy, you should make an offer. Your real estate agent can assist you with the offer. Factors to consider are: The price should be in line with prices of similar homes in the area; the condition of the home (will it cost you a substantial amount of money to refurbish); has the home been on the market for some time now (the seller may be eager to accept a lower offer); make sure you can afford the offer. The closer your offer is to the asking price, the more likely your offer will be accepted. Offers often get rejected. The real estate agent will negotiate on your behalf.

When families enter into a contract to buy or sell a house, two things are true:

·         The buyer wants to own the home.

·         The seller wants to sell the home.

In order for both these things to take place, the transaction must be completed. That is not an easy task in the current market.  The National Association of Realtors (NAR) released their Existing Homes Sales Report yesterday. In the report, NAR announced that one out of every three contracts to purchase a home in October never made it to a closing table.  How does that ratio stack up against previous numbers? Cancelations have more than quadrupled in the last 14 months!  According to NAR, cancelations are caused by: “declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses. ”

Having someone who truly knows the market is crucial if you are planning to buy or sell a home. This expert should know what is happening in real estate, understand why it is happening and be able to simply and effectively explain each point to you and your family.  There can be consequences if you don’t have a true industry professional on your side.

No one can guarantee you won’t face challenges. However, the best agents and mortgage professionals know how to manage the expectations of all the parties involved thus dramatically increasing the chances your deal will close and you and your family will be able to move on with your lives.

Amazing Christmas events are soon to be here:

• 4^th of December: The Annual Christmas tree Lighting.
   
• Join the Women’s Club of West Milford, the Ringwood Manor Citizen Advisory Committee, and Ringwood State Park Staff in celebrating the 36th Annual Victorian Christmas at Ringwood Manor. This is a lovely way to experience the magic of the holidays at a beautiful and historic North Jersey landmark. Tour dates are Saturday, December 3rd, Sunday, December 4th, Saturday, December 10th, and Sunday, December 11th 11:  am-5:00 pm on all four days.
   
• Christmas is also a time to give: Call your local Ringwood, NJ florist and send a gift of flowers along with warm holiday wishes for Christmas, Dec 25th, 2011.
  
  
  The movers just left leaving you alone at your new property.  It is time to sit down and list all those things you will have to do before relaxing on your couch and admiring your new possession:
   
• Install new locks. Since you probably have no idea who has a copy of your current keys, it is best not to take any chances. Consider making an extra set of keys and giving the copy to your parents or best friend.
   
• Purchase a fire extinguisher for the kitchen and keep it handy. Check and replace if necessary, all the batteries in the smoke detectors. If the house needs any preventive maintenance do it as early as possible. It will be really frustrating having to deal with contractors or paint while all your possessions are located inside the house.
• Check to see that all possible damage, like wet wood conditions or walls' deterioration.
   
• Clean the gutters and downspouts and check that drain water is directed away from the house.
   
• Service all heating equipment and check the chimney of the fireplace for possible damage.
   
• All medicines, poisons, or other dangerous elements have to be kept in child proof cabinets and cupboards.
   
• Keep flashlights, batteries, matches and candles in a special child proof drawer in an easy to reach place.
   
• Consider recording all the important house data and keep the papers related to your house in a safe or a drawer that locks. Also save all receipts of money spent for permanent improvements, repairs and any damage you had to fix. These can later be used for tax deduction purposes.

After you are settled in, introduce yourself to your neighbors and offer them a "hello" gift. Usually people are shy to bang on your door and introduce themselves, so it is better if you break the ice by introducing yourself. One of the reasons people enjoys living where they live is they know their neighbors. 

Household expenses take up a large portion of most people's paychecks. After all, you have to buy groceries and light your home. However, there are many simple ways to prevent these expenses from eating up all of your income. Get a handle on your household outflow by knowing how you spend your money and plugging up some leaks. You'll be amazed how small adjustments can have a big impact on your checkbook balance, and this page shows you some of the best small (and big) changes you can make.

So get ready to make a budget, reduce your monthly bills, and examine your everyday expenses to reduce your debt and build some savings.

List Current Expenses:

In order to have a better idea of how you personally can cut household expenses, you need to determine what your current expenses are.

• Collect all the receipts, bills, and financial statements that you can find. If you haven't saved such things in the past, start saving now and take a look at them after a month or so.

• Create categories for your expenses. You don't want to make a separate budget amount to cover each expense. Instead, you should plan on spending a specific amount of money on areas of expenditure in your life. For example, group airfare, train fare, and gasoline for long trips under a single category: travel.
   
• Write down fixed costs. Bills fall into this category, as well as commuter passes and other items you spend a given amount on each month. Calculate the average monthly cost of other items. For instance, you may not buy clothes every month, and each time you purchase new items the cost differs. Try adding up how much you've spent on clothes during the year, if you have those records. Then divide by 12 to get the average cost per month.

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Create a Budget

Once you've got an idea of what you currently spend in different categories, create a budget for the future, choosing areas where you think you can cut back on expenses.

Try to spot categories you can cut back, but be reasonable. If you set unreasonable goals, you'll get discouraged and may give up.

• Estimate what you'd like to spend on categories for which you don't have records. If you don't have records of what you've spent on things like clothes over the year, try to make a guess at how much you spend each month.
   
• Keep close track of all your expenses over the next couple months. Accrue statements during the week. Keep them in a safe place where you can find them to record later. Don't forget to note cash transactions.
   
• Compare what you thought you spend to what you actually spend. Hopefully, your estimates were on par. If not, make changes to your budget accordingly. Identify more areas where you think you should cut back. Adjust the budget for that category, and discipline yourself to stick to it.
   
• Come back to your budget at the end of each month to see how you're doing. If you have some extra money, make a budget category for savings or debt repayment and put that money to good use.

For more on budgeting, see Mahalo's How to Make a Budget.

Your credit rating is a score calculated by the lender based on your credit file, the amount you want to borrow, existing borrowings and the security you can put up. Your credit file is reviewed when applying for a homeowner loan, mortgage, and car finance and sometimes when applying for a job. Your credit rating can be considered your trustworthiness to repay the amount borrowed. It’s important that you know what your credit rating is and how to maintain it.

Good, Bad or Wrong?

A bad credit rating can be repaired and is not something to worry about long-term. However, if you are looking for a loan quickly, you will find fewer lending institutions willing to lend you money. Lenders that are willing to consider a consumer with an adverse credit history will charge greater interest rates.

A good credit rating will attract more loan companies offering larger amounts of money, more competitive interest rates and more flexible payment agreements.

Research states that around 80% of the credit files maintained by credit agencies contain outdated or incorrect information.

How do I Access my Credit File?

The first step to maintaining a healthy credit rating is to request your credit file from Equifax, Experian and Trans Union. You are entitled to one free report per year, however, you should request a report from all three because the files that they hold maybe different.

Review your Credit File:

Following is some of the most common errors and problems to look for when reviewing your credit file. If you notice any inaccuracies contact the credit agencies immediately. Keep copies of any correspondence and log all phone calls. Send copies of any documentation that supports you claim – do not send originals.

·        Basic Inaccuracies: Look for payments or accounts that are incorrectly recorded as late or unpaid. This can happen through no fault of your own when checks are late arriving or go missing in the post.

·        Identity Theft: This is a major concern of today and is one of the fastest growing crimes worldwide. Look for accounts that have been opened in your name without your knowledge or consent.

·        Credit File Requests: When you apply for a loan the lender will request your credit file. Each request is logged; carefully check for any fraudulent activates that could indicate an attempt at identity theft. Too many requests can be seen as detrimental by some lenders making it difficult to secure a loan.

·        Credit Fraud – Unauthorized Charges: Unauthorized use of your Credit Cards to purchase goods or services may go unnoticed, particularly if the fraud is through an account that you do not use regularly.

Manage your credit worthiness:

Credit agencies do not check the correctness of any information that is passed to them from your creditors; it is your responsibility to ensure that your credit file is correctly maintained. Requesting your credit report once per year regardless of wither there is a problem obtaining credit or not is the best way to ensure the credit files held with the agencies are accurate.