Real Estate Information

Passaic County homeowners can get an income tax deduction on the mortgage interest they pay. But there are other tax deductions you can take on your principal residence or second home, such as property taxes, and in some cases, for Private Mortgage Insurance. Read 2008 guideline from Turbo Tax:

You can deduct:

• Your property taxes. And if you bought the home in 2008, you may be able to deduct more than you think. Don't forget to include real estate taxes you reimbursed the seller for - taxes the seller had already paid for the time you actually owned the place after your purchase. That amount will be shown on the settlement sheet.
• Property taxes for taxpayers who don't itemize. New for tax year 2008, if you do not itemize deductions for 2008, you can increase your standard deduction by up to $500 of real estate taxes paid in 2008 if you file as a single person, or by up to $1,000 of property taxes paid if you file jointly.
• The mortgage interest on your primary residence, as well as any secondary residence you own. (There are limits, but relatively few taxpayers are affected.)
• The interest on up to $100,000 borrowed on a home-equity loan or home-equity line of credit, regardless of the reason for the loan.
• Points that you paid when you purchased the house (or those that you convinced the seller to pay for you).
• The premiums paid for Private Mortgage Insurance (PMI) in 2008, but only for policies issued after 2006. (The right to this deduction disappears as Adjusted Gross Income rises from $100,000 to $110,000 on a joint return, and from $50,000 to $55,000 on a single return.)
• Home improvements required for medical care.

How much can I save? 

The actual amount of money you save on your annual income tax bill depends on a variety of factors:

• Your filing status (single, head of household, married filing jointly, married filing separately)
• Your standard deduction amount
• Your other itemized deductions
• Your taxable income

Your home-related deductions, plus your other itemized deductions must add up to more than the standard deduction (increased by the amount of property taxes noted earlier that are allowed to non-itemizers), or they won't save you any money.

What can't I deduct? 

• You can't deduct the following payments for your primary residence:
• Dues to a homeowners association
• Insurance on your home
• Appraisal fees for your home
• The cost of improvements to your home. (But keep those receipts. They may help you reduce your taxes when you sell your home.)

Learn how you can save money on your taxes with Passaic County real estate.

Pending home sales declined on the heels of a weakening economy and with some buyers waiting for clarity on housing stimulus provisions, according to the National Association of Realtors^®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, fell 7.7 percent to 80.4 from a downwardly revised reading of 87.1 in December, and is 6.4 percent below January 2008 when it was 85.9. The index is at the lowest level since tracking began in 2001, when the index value was set at 100.

Lawrence Yun, NAR chief economist, said the downturn in the economy also weighed heavily on the data. “Even with many serious potential home buyers on the sidelines waiting for passage of the stimulus bill, job losses and weak consumer confidence were a natural drag on home sales,” he said. “We expect similarly soft home sales in the near term, but buyers are expected to respond to much improved affordability conditions and from the $8,000 first-time buyer tax credit.”

Let’s take a look at the Passaic County real estate sales statistics for February to see how the market looks in our area:

The number of active listings in Ringwood have have decreased by 12% in February 2009 when compared to February 2008. Sold listings have remained consistant and the median sales price has decreased by 8%.  The average sales price has decreased by 6% to $342,533 with market times decreasing 32% or 51 days. 

In 2008, the Wanaque market saw a 14% increase in active listings compared to February 2008.  There were no homes sold in February 2009.  Wanaque potential buyers seem to be waiting as Yun stated above.

Pompton Lakes saw a decrease of 3% in active listings in February 2009 compared to February 2008.  Average sales price decreased by 24% and the median sales price has decreased by 23%.  The number of sold listings increased by 14%. Homes remained on the market an average of 68 days longer with a 37% increase in market times.

For the latest Passaic County real estate market conditions, please call me at 973-962-5410 or visit HomesByOrly.com.

The ‘American Recovery and Reinvestment Act of 2009' which became law on February 17, promotes energy independence and green jobs through tax credits and government grants. This is part of an effort to make Passaic County homes and buildings more energy efficient. 

Energy saving provisions include: 

• $6 billion to state and local governments for energy efficiency and conservation grants for energy audits, retrofits and financial incentives.
  
•  30% tax credit (increased from 10%) to homeowners for new furnaces, windows and insulation. 

• $5 billion to modernize the nation's electricity grid and install smart meters on homes, saving homeowners money. 

• $5 billion for weatherization assistance for low income households. 

• $2 billion for federally assisted housing (section 8) efficiency efforts. 

This bill is good news for Passaic County homeowners wanting to make their homes more energy efficient. Interested in buying a Passaic County home? Visit OnlyOrly.com and learn how. 

Search all Passaic County homes for sale.

Buying a Passaic County home is a big step whether you are buying for the first time of fifth time. Below are 10 steps to prepare for Passaic County homeownership:

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don't forget to factor in closing costs. Closing costs - including taxes, attorney's fee, and transfer fees - average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options - such as 30-year or 15-year fixed mortgages or ARMs - and decide what's best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you've saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Give me a call. I am glad to guide you through the Passaic County home buying process.

Search all Passaic County homes for sale.

Reprinted from Realtor Magazine with permission from the National Assocaition of Realtors.

The “American Recovery and Reinvestment Act of 2009,” which was signed into law last week by President Obama provides an $8000 tax credit for first-time Passaic County home buyers.

Important Facts To Know:  

1. It is a tax credit to home buyers, not a loan as in last year's program;
2. It is only for first time home buyers, defined as someone who has not had an ownership interest in a principle residence in the 3 year period prior to the date of the 2009 purchase;
3. The buyer must remain in the home for a minimum of 3 years;
4. It is applicable to purchases between January 1, 2009 and December 1, 2009; and
5. Full credit is available to those with adjusted gross income of $75,000 or less ($150,000 for married filing jointly). The credit is phased out entirely for those with adjusted gross income over $95,000 ($170,000 for married filing jointly).

If you bought a home last year under the old $7,500 tax credit rules, those rules still apply to your 2008 home purchase.

If you purchased a home after January 1, 2009, or are thinking of buying a Passaic County home this year and want to learn more about the $8,000 tax credit, give me a call or visit OnlyOrly.com.

Issues you will want to consider are the definition of adjusted gross income, how to apply for the credit, what happens if your total tax liability is less than the credit, definition of 'principle residence', and other issues. I am happy to advise you as to how you can benefit from the tax credit.

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The following is a statement by National Association of Realtors^® President Charles McMillan:

An economic recovery is not possible without a housing recovery, and the legislation contains two important housing provisions championed by NAR. The final stimulus bill increases the first-time home buyer tax credit to $8,000 and eliminates the repayment requirement of earlier legislation.  In addition, the credit availability has been extended until December 1.

“These important provisions will help bring first-time home buyers to the market and reduce housing inventory,” said McMillan. NAR estimates that the home buyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from being “underwater” on their mortgage, which can often lead to foreclosure.?

The bill also reinstates the 2008 higher loan limits for FHA, Fannie Mae and Freddie Mac. “These higher loan limits are important to make mortgages affordable regardless of where you live. This will also help reduce inventory and improve liquidity in the overall mortgage market,” McMillan said. 

Let’s take a look at the Passaic County real estate sales statistics for January to see how the market looks in our area:

The number of active listings in Ringwood have have decreased by 6% in January 2009 when compared to January 2008. Sold listings have decreased by 55% and the median sales price has decreased by 18%.  The average sales price has decreased by 17% to $339,250 with market times increasing 27% or 25 days. 

In 2008, the Wanaque market saw a 15% increase in active listings compared to January 2008.  Homes sold were the same in January 2009 as they were in January 2008.  The average sales price decreased 19% to $246,129, and median sales price has decreased by 25%.  Market times have decreased by 8 days or 9%.

Pompton Lakes saw a decrease of 18% in active listings in January 2009 compared to January 2008.  Average sales price decreased by 38% and the median sales price has decreased by 46%.  The number of sold listings dropped 67%. Homes remained on the market an average of 91 days longer with a 62% increase in market times.

For the latest Passaic County NJ real estate market conditions, please call me at 973-962-5410 or visit HomesByOrly.com.

We have a new feature on our website, OnlyOrly.com: Passaic County Best Buy List

These are Passaic County homes for sale, that we consider a 'Best Buy' either because of either because of competitive pricing, seller concessions, superior location or condition.

Below is our current list, but check back often as we update the Best Buy list weekly. Take a look and contact us for more information, 973-962-5410 or Orly@onlyorly.com.

Pinecliff Lake Charmer in West Milford! Bedrooms:  2 Baths:  1 $158,000 Pinecliff Lake charmer! Huge dining room with fireplace and great room with fireplace. Newer kitchen, laminate floors, and wood floors, large deck, garage, basement, barbecue large property.   This property is a competitively priced for the neighborhood making it a great buy.                   MLS #2633186    Cupsaw Lake Log Home Bedrooms: 2 Baths: 1 $225,000 Cupsaw Lake area with lake rights... Brand new gas heating system and hot water heater. Very quaint log home on the interior. Loft storage.  MLS#:  2627766   Winter Views Of Beautiful Cupsaw Lake Bedrooms: 3 Baths: 1.5 $329,900 Wonderful Opportunity. Atrium Room..Gas Fireplace. Updated Bath. Hardwood Floors. Family Room. All Close to Beautiful Cupsaw Lake. New Septic & Roof Being Installed. Seller has found new home & motivated to sell. MLS#:  2586641   Wonderful Erskine Lake Bedrooms: 4 Baths: 2 $369,900 This colonial home has it all! Inviting Living Room, Formal Dining Room with Fireplace, Updated Kitchen with Breakfast Bar, Family Room.  MLS#:  2626781   Glorious Mountain Views Bedrooms: 2 Baths: 2.5 $259,900 Not the average unit at Brookside!!! This unit will amaze you with it's added space in the basement, you don't want to miss this! Enjoy beautiful views of the mountains from the brand new deck off the master suite. MLS#:  2629503 Lovely Log with lots of character! Bedrooms: 2 Baths: 1 $289,900 Lovely updated Pinecliff Lake log on a large corner lot. Maple kitchen, stone fireplace, hardwood floors, loft, sunroom and more! Relax on the back deck and enjoy the outdoors! MLS#:  2508751   Beautiful Lakefront Bedrooms: 3 Baths: 3 $559,000 One of a kind original Log home enhanced with a large addition that includes Living Room, Dining Room and Master Suite. Lower level den, bath and more! Located on a quiet street on the lake. Sellers are packed and ready to go! MLS#: 2598634                                                     A Great Find! Bedrooms: 3 Baths: 2.5 $339,500 This beautiful home boasts two living areas. The ground level has a Full Kitchen, 3 Bedrooms, 1.5 Baths. The lower level has Kitchen, Family Room, and 2 Bedrooms. Great for "live-in" guest or entertaining. This is a must see!  MLS#:  2570929                                                            Owner Motivated! Bedrooms: 4 Baths: 2 $384,900 This beautiful home boasts is nestled in a wooded setting with gorgeous views from the huge deck. Once you step through the door, you won't want to leave. Every room is oversized, and there is lots of storage space. Lovely floor plan and room flow! MLS#:  2578125

Saving Money To Buy Your Passaic County Home

This is a great time to think about buying a Passaic County home. Home prices have dropped and interest rates are at all time lows. The biggest hurdle for many Passaic County home buyers is saving money for a down payment. Here are 25 things to do on a regular basis to save money:

1. Make it automatic. Before you see your paycheck, have a percentage of it automatically deposited into your 401(k) and savings.
2. Keep minimum funds in checking account. Transfer extra funds into your savings account where it will earn more interest than in our checking account.
3. Don’t pay banking fees! Use your bank’s free bill pay, automatic deposits, free checks, and free reimbursements for all ATM fees.
4. Use rewards credit cards. Use a credit card offering cash back on every purchase and pay the card off each month to eliminate interest fees.
5. Actively search out deals. It never hurts to try and find a better deal, or request a better deal from your service providers.
6. Use a programmable thermostat. Programmable thermostats save you an estimated 10-20% on your heating and cooling bills.
7. Use ceiling fans, floor fans, and space heaters. Turn your thermostat down, close the doors to unused rooms and use a space heater for heat. Use ceiling fans and floor fans to assist with heating and cooling - depending on the season of course!
8. Install CFLs to save energy. Compact fluorescent lights use about a quarter of the electricity of normal incandescent bulbs. They also need replaced much less often.
9. Drive smoothly. Accelerate smoothly and at a reasonable rate, and coast to a stop as often as possible. Also use cruise control on the highway. My car is rated to get 26 mpg around town and I regularly get 29. You can also use these tips to save money on gas, and use gas rewards credit cards to save money on fuel costs.
10. Plan and research major purchases. Take the time to research the best deals when planning a vacation.
11. Buy quality products. Quality items may cost more up front, but they last longer and generally provide better results than cheaper, inferior products. Examples of items you should buy higher quality - furniture, clothes and shoes, vehicles, and other items that will see a lot of use.
12. Buy generic where applicable. You can save a lot of money on generic items for which the brand name product is essentially the same as the store brand. Food and medicines come to mind as items where generic products are good deals.
13. Use coupons and rebates. Use coupons for oil changes, groceries, books, on-line purchases, and just about anything else we can find.
14. Use store rewards cards. Many grocery stores have their own ‘reward cards’ saving you money each time your shop. If you are a senior, shop on designated senior citizen discount days.
15. Cook at home.  Limit restaurant dining to once a month.
16. Eat leftovers. You can save a minimum of $20 a week by bringing your lunch to work. It is also healthier. On the rare occasion you go out to lunch with coworkers, you’ll enjoy it more.
17. Use the library. Borrow books and movies from the library. New movie releases aren’t always available, but there are usually plenty of classics from the 40s and 50s.
18. Use parks. They are great for hiking and outdoor recreation.
19.  Take care of things. Treat the tings you own with respect and take good care of them. This includes doing things such as cleaning the house, washing your cars, and polishing shoes. Things last much longer when you take good care of them.
20. Buy insurance. Health insurance, home owner’s insurance, auto insurance, and other types of insurance are designed to save you money! Sure, you may end up paying premiums for years and never file a claim, but in the event you need to file a claim, your premium will likely be small compared to what you would have had to pay. You’ll be very happy if you ever need it!
21. Bundle cable and internet. You can save a lot of money by bundling these together rather than purchasing the separately. You can save more if you bundle your phone as well.
22. Use cell phones - skip the landline. Depending on your plan, it can be a real cost saving.
23. Cancel subscriptions. Almost everything you want can be found on-line for free.
24. Home improvement. Try making your own repairs before calling a professional.
25. Avoid debt. If you don’t have the money for it, don’t buy it.

Saving money and watching your savings account grow is a rewarding experience…especially if it can help you purchase a Passaic County home of your own.

Learn more about buying a Passaic County home at OnlyOrly.com or give me a call for more personal service.

Search all Passaic County homes for sale.

Passaic County Real Estate: Short Sale Could Be An Option

If someone has fallen behind or is having difficulties handling their monthly mortgage payment, foreclosing on their home does not have to be their only option- a short sale should be considered.

Many people go straight to foreclosure without trying to put their house on the market, or attempting a short sale or communicating with anyone because they are unnecessarily embarrassed.

A Passaic County real estate short sale provides an opportunity to get out from under a home you owe more money on than the current market dictates it is valued at. It is possible to negotiate with mortgage companies and pay less than your full mortgage balance.  It's as if you borrowed $10 and can only pay back $8. The lender agrees to accept $8 as payment. To qualify for a short sale you usually do have to demonstrate a hardship like a job loss, family illness or a change in your economic circumstances.

There are usually no up-front fees involved with a short sale because the bank will negotiate the commission. You will need to leave your home, but your credit will be repaired after two years versus several years if you were to be foreclosed on or claim bankruptcy.

I have recently undergone rigorous training on this issue and have been awarded the CDPE (Certified Distressed Property Expert) designation.

If you or someone you know could benefit from a confidential consultation, please feel free to contact me at 973-962-5410.

What's the value of my Passaic County home?

After holding fairly stable for a year, pending home sales declined in the face of job losses and an eroding economy, according to the National Association of Realtors^®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.

Lawrence Yun, NAR chief economist, said a weakening was inevitable. "Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November," he said. "December's housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed."

Let's take a look at the Passaic County real estate sales statistics for the year 2008 to see how the market looks in our area:

The number of active listings in Ringwood have stayed consistant from January to December 2008 year as compared to 2007 and sold listings have decreased by 2%.  The average sales price has decreased by 4% to $393,163 with market times increasing 12% or 11 days. 

In 2008, the Wanaque market saw a 14% decrease in active listings compared to January to December 2007.  Homes sold were down 20%.  The average sales price decreased 11% to $314,991, while market times have decreased by 12 days or 13%.

Pompton Lakes saw a decrease of 6% in average sale price in 2008 compared to 2007.  Active listings dropped 8% and the number of sold listings dropped 15%. Homes remained on the market an average of 17 days longer with a 16% increase in market times.

For the latest Passaic County NJ real estate market conditions, please call me at 973-962-5410 or visit HomesByOrly.com.

Statistics are based on information from the Garden State MLS. They are deemed reliable, but not guaranteed.