Real Estate Information

A “buyer’s market” occurs when there are a lot of homes for sale and they are staying on the market for a long time.  During times like this, home buyers are in a great position to negotiate for lower prices and incentives.

The guidelines for buyers' incentives vary among loan options, so make sure to get pre-qualified first so you can ask your loan officer about the allowable incentives for your loan program and down payment.

So, what can you ask for?  Here are some ideas:

If you are putting ten percent or more down, you can ask for up to six percent of the price of the home. If you are putting less than ten percent down, you can ask for three percent of the price.  This “cash back” could be used to cover your non-recurring closing costs (things like points and mortgage fees that you only pay one time), or to cover the cost of extensive repairs to the home, if they are needed.    Most loan programs will only allow you to apply incentives toward non-recurring closing costs.  Your Realtor will make sure that the incentive request is spelled out clearly and thoroughly in your offer to purchase the property.

When asking for incentives in an offer, it is important to make sure you do not get taken advantage of by a lender who may inflate your loan costs to “use up” the incentives you negotiated.  An experienced and perceptive Realtor will be able to help make sure you are protected.

It is important to avoid “loading up” your offer with a lot of contingencies (such as offering to purchase the home, but only after your current home has sold), especially when you are pursuing incentives.  Doing this makes it less certain you will actually close, so a seller will be less likely to offer financial incentives in hopes of a quick sale. The one contingency you always want to include, especially in a buyer’s market, is that your offer is contingent upon the property appraising at or above the purchase price by the lender's appraiser.

For more information about Ringwood NJ real estate, please visit HomesByOrly.com or call me at 973-962-5410.  You may also begin searching the MLS here!

It’s official – tax time is upon us.  If you are like many Americans, just the thought of getting organized enough to start the paperwork can be overwhelming.

This article from BankRate.com details 7 steps to help get you ready to file your 2007 taxes.  I’ve listed the steps below, but please check out the article for more helpful hints!

• Prepare for the arrival of your records (designate an envelope or folder to store all of the records you’ll receive in the mail)
• Track down social security numbers (make sure you have the correct SSN’s for everyone in your family)
• Find your forms (if you are not filing electronically, download the necessary forms or pick them up at a post office)
• Decide how you want to do your taxes (Do-it-yourself or hire a pro?  Paper and pen or computer software?)
• Consider electronic filing (find out if you qualify for Free File!)
• Use direct deposit (it may not be as exciting as receiving that refund check in the mail, but it’ll save you a trip to the bank!)
• Don’t panic!

I’d like to add my own advice: if you bought or sold a home in 2007, pull out those closing documents and start making copies!  You will need to provide proof of your purchase or sale (usually a closing statement will suffice), along with any loans that were taken out or paid off in 2007.  If you have lost any of these important documents, contact your Realtor who can help you track them down.

If 2008 is going to be the year for you to invest in a home of your own, please visit HomesByOrly.com and begin searching Ringwood NJ real estate here.  You may also call me at 973-962-5410.

When the Fed lowers interest rates, as it continued to do this week, everyone gets excited and there is a lot of buzz about the real estate market.  But – when it comes to you and me – what do these lower interest rates really mean? Here are some examples:

Homeowners: If you already have an adjustable-rate mortgage (ARM) on a home, you could save hundreds of dollars a month if your loan is pegged to Treasury rates, which have fallen considerably thanks to the Fed's recent cuts.  The catch is that many buyers in more expensive areas resort to “jumbo loans,” which are typically pegged to slower-moving indexes that remain elevated.  If you have a fixed-rate mortgage (not a jumbo loan), you could consider the cost of re-financing (think origination fees, appraisal fees, closing costs) against the savings of a lower interest rate for your monthly payment.

Borrowers: Several banks lowered their prime rate, which forms the foundation for car loans, home equity lines and other loans.  But you must carry a whopping $5,000 credit card balance to save just $12.50 annually from a quarter-point rate cut.

Consumers: Lower rates threaten to boost inflation and the price of imports.  So far, inflation has been held in check, and foreign companies generally are holding the line on prices.

Savers: Falling interest rates normally would whack rates on CDs and other savings.  But the cash crunch has spurred many banks to prop up such rates.

Travelers: International vacations and business trips cost more because the dollar has sagged in the wake of the Fed's cuts.  But it could be buoyed if other central banks trim rates.

To sum it up: unless you are about to purchase a new home and can take advantage of the new lower interest rates by locking in a fixed-rate mortgage now, you may not end up seeing a whole lot of benefit to the interest rate cuts.

If you would like more information on Ringwood NJ real estate, please visit HomesByOrly.com and begin searching Ringwood NJ real estate here.  You may also call me at 973-962-5410.

If you made a new year’s resolution to finally get around to those fix-up projects around the house, you may quickly find yourself overwhelmed – and under-funded – if you try to tackle everything at once.

RealEstateJournal.com has put together a list of pitfalls to avoid when remodeling your home in 2008.  Read the full article here, or check out the highlights below:

1. Ask for advice.  Talk with a local, experienced Realtor who can help you gauge your home’s current value.  Before you go pouring money into a remodeling project, it is valuable to know where your home currently stands and what you stand to gain by making improvements.  To request a complimentary market analysis of your Ringwood NJ home, please click here. 
2. Dig deeper.  Considering getting a home inspection before you remodel or put your home on the market.  This will give you a very clear idea of where you need to focus your fix-up efforts.
3. Look outside.  Pay attention to the condition of the exterior of your home – including the siding and windows.  Sure, you may want to put all of your money into those new hardwood floors, but structural repairs should always be the first priority.
4. Spend time in the bathroom.  Even small upgrades to a bathroom – new hardware or fixtures – can give it a whole new feel.  If you are thinking of selling your home this year, remember that buyers want to see a bathroom that can be used right away and is not in need of major repair.
5. Keep it small in the kitchen.  We’ve all heard that “the kitchen sells the home,” but remember that, if you are planning on selling your house, every buyer has their own taste in the kitchen, so it is best to keep things neutral and let the buyer customize it as they wish. 

If you are planning to buy or sell a home in 2008, please call me 973- 962- 5410 or visit HomesByOrly.com to learn more about Ringwood NJ real estate.

The National Association of Realtors has published its predictions for the 2008 housing market and, so far, the data looks positive.  Most noteworthy is the trend toward improving existing home sales. 

Lawrence Yun, senior NAR economist, said “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.” 

Existing home sales are expected to rise to $5.7 million in 2008 – making it the fifth highest year on record.  Existing home prices, which declined 1.9% to a median of $217,600 in 2007, are expected to go back up about .3% in 2008.  As Yun noted late in 2007 “even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the US are showing price increases … the apparent disparity results from fewer sales in high-cost areas, so a change in the mix is dragging down the national median home price.”

To find out the latest trends in Ringwood NJ real estate, please call me at 973-962-5410 or visit HomesByOrly.com.  To begin searching for Ringwood NJ homes, please use my complimentary MLS search.

Happy new year, Ringwood!    I hope that you and your family enjoyed a very happy holiday season, and that 2008 is off to a great start for you.  Did you avoid making a new year’s resolution this year?  It’s not too late to make a few resolutions that are easy to keep . . . and why not make them real-estate-related?  Here are some ideas to get you started:

• Know your credit!  Make a resolution to stay on top of your credit in 2008.  Begin by getting a detailed credit report so that you know where you stand as the year begins.  Check again at the end of the year to see how much your credit has improved!
• Keep a budget.  This can be a difficult one to stick to.  Many people start the year with an idealistic budget, but soon let it go out the window – oftentimes, along with any hopes of saving for real estate investment!  Begin with a goal of either setting aside a certain amount for a down payment on a real estate investment or putting away enough to make one extra mortgage payment in 2008.
• Research real estate web sites.  Be a snoop in 2008!  Use web sites like mine to keep tabs on what homes in your neighborhood are selling for, where the foreclosures near you are, and what the general market is like in your area.  When you are ready to make a real estate investment, you will already have a good feel for the local market.
• Out with the old!  Even if you are not planning to move in 2008, it never hurts to clean out your closets, garage, or attic and donate to charity.  You’ll make your home more appealing to prospective buyers if you are selling, and you’ll feel more organized if you are staying put.

Best wishes for a happy and prosperous 2008!

For more information about Ringwood NJ real estate, please visit HomesByOrly.com or call me at 973-962-5410.  To begin searching for Ringwood NJ homes, please use my complimentary MLS search!

Many homeowners have heard of a “1031 Exchange,” but few understand the basics of what an exchange actually entails.  This week I want to cover just a few of the basics of the process, as it can be an invaluable method of homeownership for investment homeowners.

What is a 1031 Exchange?

Put simply, it is the sale of one property in exchange for the purchase another property of similar value without the required payment of capital gains tax, all performed within a specific time frame.  An example of when you might use a 1031 Exchange, as opposed to selling a home and purchasing a new one outright:  you want to sell your current vacation home and purchase a new, similar one that has a few better features.  You have not yet owned your current vacation home for two years, so you are subject to substantial capital gains taxes when you sell it.  If you were to use a 1031 Exchange, you could “exchange” your current home for a new one and be relieved of the capital gains requirement.  It is this difference between "exchanging" and not simply buying and selling which, in the end, allows you, the taxpayer, to qualify for a deferred gain treatment. In a nutshell: sales are taxable with the IRS and 1031 exchanges are not. US CODE: Title 26, §1031. Exchange of Property Held for Productive Use or Investment

Important Rules of 1031 Exchange

1.       The total purchase price of the replacement "like kind" property must be equal to, or greater than the total net sales price of the relinquished, real estate, property.

2.       All the equity received from the sale, of the relinquished real estate property, must be used to acquire the replacement, "like kind" property.

1031 Timelines and Rules

Identification period – the seller has exactly 45 days from the sale of the original property to identify other replacement property(s) that he proposes or wishes to buy. 

Exchange period – the period during which the seller of the relinquished property must receive the replacement property.  This period ends exactly 180 days after the date on which the person transfers the property relinquished or the due date for the person's tax return for that taxable year in which the transfer of the relinquished property has occurred, whichever situation is earlier.

If you want to learn more about strategies for buying and selling investment properties, or are interested in Ringwood NJ real estate, please call me at 973-962-5410 or visit HomesByOrly.com.  To get started searching for Ringwood NJ real estate, please use my complimentary MLS search.

Happy new year - see you in 2008!

The whirring of the helicopter announced the arrival of Santa in the Fieldstone shopping center in downtown Ringwood on Skyline Drive on December 9, 2007.

Every year for as long as most of us can remember our shopping center is transformed into a magical place where Santas house awaits bright eyed and anxious children all waiting for Santa Claus to arrive by Helicopter ( provided by John Joseph).  The tradition brings with it the begining of the Holiday season whereby the children can take pictures with Santa in his little house provided by the Ringwood Womans Club.  Half the parking lot is blocked off by police tape making this the focus of the afternoon with Coldwell Banker provided hot cider, candy and balloons to the patiently waiting children.

At the end of the afternoon everyone gets ready for the Annual Tree Lighting which takes place on Skyline Drive by the Wachovia Bank.  Sponsored by the Ringwood Chamber of Commerce are refreshments of Hot Choclate, Coffee and doughnuts.  At 5:00 pm after the Lakeland High School Band has played some wonderful Holiday songs and the speeches have been made the Tree is lit with an adornement of lights.

What a wonderful way to bring the town together to mark a joyous occasion that can be shared by everyone.