A Moving Day Tale (you have to read it to believe it)

I have had a lot closings with DRAMA before, but this recent one was so crazy that I just had to share this story with others – if not to warn people buying/selling/renting/moving in general, but at least to get you to shake your head and mutter, “are you kidding me?”

Last month, I had a closing on a lovely split level in Westfield – the transaction itself was smooth as silk.  The sellers were dreamy and responsive to remediatory requests.  The buyers were financial stalwarts – inspector was fantastic…heck even the mortgage guys were able to watch the rates and shortly before closing, they RE-LOCKED for a LOWER RATE!  (Mortgage Master in Fairfield, by the way – amazing…).  Aglow with an over-inflated sense of accomplishment and security, I told me client, “this has been the best transaction – literally nothing but cotton candy and puppy dog tails…I would hate to see the other shoe drop!”  We laughed and laughed…

…Until we stopped laughing.  2 days prior to closing, the owners of the house had made arrangements with movers – a company that they and other in their family apparently had used before.  To make a long story short, during the process of the move, the homeowner was dismayed to discover that their bathroom light fixture had stopped working – after all, the buyer walk through was only 2 days away – how quickly could he find an electrician to fix the problem?  In a fit of frustration, the homeowner removed the sconce from the wall, and was shocked to find that behind the fixture was a string, tied to a plastic bag hidden behind the wall of his bathroom.  In that plastic bag was family jewelry, his camera and other sundry small valuables.  Items that were being moved that day. 

Needless to say, there was much consternation and hand-wringing.  The supervisor on the move was called forward to explain, he said he knew nothing about it, and that it was best to call the owner of the moving company.  When the owner had no explanation (and I credit the supervisor of the job for his upstanding decision), the supervisor then strongly advised that the homeowner call the police. 

When the police arrived, an immediate search turned up a second hiding spot with yet another bag of goodies, secreted away behind the bathroom vanity.  Police made off with some bath fixtures to be dusted for fingerprints and used as evidence – the attornies had to escrow some small amount to cover some costs in case those items were never returned to the house by the authorities.  They also made off with a young employee who, when searched, turned up carrying some amount of marijuana – whether or not that had any connection with the theft, who knows?  What I do know is that the police haven’t yet returned the fixtures, so I am really glad we left some escrow!    Oh, and in case you are wondering which moving company it was?  Well, innocent until proven guilty so I don't want to potentially malign a business...but I suppose if you really want to know, give me a call.

Tricks (and Traps) of the Trade – Buying a Home in NJ

Often, as a real estate professional, I make assumptions about what my clients do and do not know, prior to the onset of a transaction.  For any first time home buyer – or even a buyer who hasn’t done so before in NJ or in the past few years, can find the process to be a bit of a mystery.  There are a number of tips that I feel are incredibly useful – to help your transaction move along just a bit more smoothly…

Contract details can be very important, and while I am sure your agent is very good, there are a couple of things to watch out for, as a rule of thumb:

1)    Make sure that you have adequate time to obtain your mortgage commitment – 3 weeks is pushing it, and with any non-conventional loan, you may need 4-5 weeks at least – so make sure you have enough time to get your paperwork in and have the appraisal done by the bank.

2)    Additional provisions in a contract can be useful, especially to protect buyers from difficulty.  One way to ensure the ability to negotiate is adding an appraisal clause – so if the home does NOT appraise, there is a clearly outlined ability to cancel the contract if you choose not to continue with the transaction.

Inspections are a vital part of the home buying process:

1)    An average home inspection for a single family home in NJ should take about 2.5 to 3.5 hours, including the termite and radon.  Inspectors should take the time to speak to you about issues, as well as of offer tips for safety and maintenance.  Oh, and anyone that is charging more than $600 (including radon and termite) is taking you for a ride.  As a matter of fact, most inspections will cost less.  Don’t be dazzled by price – it isn’t necessarily an indication of quality.

2)    If you have a fireplace, you may want to consider bringing in a chimney inspector – you have to pay for it, but worth the money if there are expensive issues that can’t be easily seen.

3)    Tank sweeps are vital – an unexpected underground oil storage tank is a potential liability.  For any house with a live underground oil tank, make sure to test for particulates and that the owner has tank insurance.

Mortgages:

1)    The first thing I always tell me clients is “SHOP AROUND!”  The large banks are great, but individual mortgage brokers can have access to loan products that others don’t – and also have creative ideas on how to keep your costs down.  The one question to ask the broker is “DO YOU ORIGINATE YOUR OWN LOANS, OR DO YOU SELL THEM THE DAY YOU CLOSE THEM?”  This is important, because for any broker that sells immediately after closing, there can be a delay as they find a buyer for your loan. 

2)    Don’t lock your rate in to end on the proposed closing date for your home!  On the off chance that there are unforeseen delays, try to hold off on your rate lock to anticipate potential issues – much easier than trying to scramble for a rate extension, or having to pay points last minute.

3)    Make sure that you pay attention to your mortgage commitment expiration date – once again, no last minute scrambling.

Looking for the right attorney:

1)    Do they call you back?  They better call you back in a timely fashion.

2)    Flat fees – really no more than $1200-1400 for a transaction.

3)    Most importantly, are they a full time real estate attorney in NJ?  Don’t pick a trial litigator that only does real estate on Fridays – you won’t get the customer service that you need for a smooth transaction.  Trust me on this one!

So, just a few notes on things that might make your transaction a little easier – after, buying a home is stressful enough…

NJ Real Estate - Statistics for Buyers and Sellers

Statistics and I are NOT friends.  While I do have the innate, super-geeky, left-brain need to explore and appreciate the minutia that is statistics, I despise its chameleon like qualities.  Politics, for instance, clearly shows that the SAME set of facts, put through the filter of any specific agenda, can skew the data to anyone’s favor.  So therein lies the rub…who is most objective? 

Well, as it turns out, I TRY my best to be as objective as possible, so there are some sobering statistics I have heard that would like to share with you.  The following are some information distributed by the Otteau Valuation Group, Inc – a real estate valuation and consulting firm with a focus on accurate market analysis.  The can be found at www.otteau.com.  In the meantime, here are some recent snippets they have released:

• For every $10,000 over accurate market value a sellers lists their home, they are likely to eventually sell fro $4000 less than said market value. 

• The rate of decline on home prices sits around ½% to 1% per month. 

• It is likely that home prices, while they will start their recovery sooner, peak prices are likely to return around 2020.

• For every 1% rise in the mortgage interest rates, it translates to roughly a 9% rise in home price over the life of the loan.   

Okay, so what does this tell sellers?  First, if you must sell your home, then do NOT overprice it – you will eventually get less in the long run if you do.  Today’s buyers are savvy enough to be able to tell when a home is overpriced, and stay far, far away from it.  Eventually, you might get low-balled by a bargain hunter, who will simply move on to the next house if you “hold out for more.”  For anyone who is looking to hold out on selling their home until the “market recovers,” you will be waiting a LONG time.  This is a long, slow recovery folks – waiting 18 months isn’t going to bring back the numbers to 2006 levels.  All it does it hold up your life and the choices you want to make to be happy.  If you aren’t underwater, and you decide that moving to Maine is your dream, then you might as well make your move – luckily, while you will sell your house for less, you will be buying for less on the other end, too.

Now, what about you, buyers?  WHAT THE HECK ARE YOU WAITING FOR?  Prices and interest rates are both low right now – this is a historic time!  Don’t you watch CNBC or listen to NPR or read the WSJ?  In January, existing home sales went up again by 2.5% or so…January, which is usually NOT a huge month for sales.  If home sales do increase, the interest rates will rise, so do NOT lose out the ability to get more house for your money at this time.  Interest rates have already moved from 6 months ago…don’t miss out in the great deals…

Over the next few weeks, I will spend a little more time hammering out some of the statistics that we use to evaluate home prices in this area – hopefully, it will be information that helps potential buyers and sellers make the best choices with their homes. 

Welcome to the Punchline State: What Do End-of-2010 Economic Indicators Mean to the Early 2011 Housing Market?

Yeah, the title is so sexy, right?  Well, see for youselves...okay folks, let’s talk turkey about the housing market – for those of you that own homes in the NY/NJ area…and for those that are THINKING ABOUT buying a home here – you may want to read this.  What the hey, information is a good thing, right?

 

First of all, a very Happy New Year to you all – 2010 was a tough year for many of us – I myself had a very symbolic end of year moment.  A couple of days before Christmas, a neighbor of mine had a severe car accident and lost his life – a terrible tragedy that saddened our entire community.  Two days after Christmas, a friend of mine delivered a beautiful baby, and I couldn’t help feeling like life was delivering all too much for my emotions to process – great joy and such sadness, all turning on a dime.  And I think my psyche may have just had enough – because this is what my year has been like.  This is what it has been like for all of us – as …Americans in this mudslide of an economy.  The ups and downs have us reeling and we just need to slow down the ride so we can catch our breaths and make the room stop spinning.

 

So this posting is a quiet look at some statistics and what we may think they mean for the housing market in NJ/NY – not because I am such a great predictor of the economy, but because trends and statistics offer insight into the way things MAY be going…and like I said, more information is NEVER a bad thing, right?

 

Statistics of interest:  Reuters & Forbes are reporting a 12-15% increase on online holiday sales in 2010.  This is good new, because most importantly, it is not to the detriment of in store holiday sales – the posting for November sales statistics are starting to arrive, and we have some great results for lots of stores that traditionally carry holiday items.  Barnes and Noble, Target, among other big box, wholesale to public and mall based clothing stores are up anywhere from 4%-14%.  Oh, and if those numbers feel arbitrary, at least we know that spending may be up in general, as Mastercard reports holiday spending up 5.5% from last year. 

 

Also, according to the National Retail Federation’s BIGResearch Christmas Holiday Consumer Intentions and Actions Survey, there was a slight increase in Americans’ intended spending habits for the holidays this year over last year.  This, if nothing else, seems to indicate a little more pocket money, perhaps better budgeting and planning with money, or at least a perception that things are improving ever so slightly:

Average Amount Consumers Planned to Spend For Gifts:  $688.87 (2010) / $681.83 (2009) / $694.19 (2008) / $755.13 (2007)

Average Amount Consumers Planned to Spend for Holiday Decorations:  $41.51 (2010) / $40.70 (2009) / $42.90 (2008) / $46.01 (2007)

Total Amount Consumers Planned to Spend for Winter Holiday-Related:  $688.87 (2010) / $681.83 (2009) / $694.19 (2008) / $755.13 (2007)

 

Now, let us discuss – holiday spending is just that…for the HOLIDAYS, so we should expect an immediate slump in retail numbers for the first quarter of 2011 – people usually tighten up their belts after the holidays anyway – we diet with our budgets as much as we do with our food intake.  The question is going to be do we see a stable spending number as the winter months pass and people need to purchase for commercial holidays (like Valentine’s Day) and simply because they need to replace and purchase new retails goods.  We’re not looking for the numbers to shoot up – just stay on an even keel. 

 

On the job front, according to the US Bureau of Labor Statistics, 39,000 jobs were added in November of 2010, although those may be holiday based.  And as Friday, December reports will be out and apparently, if you believe ADP, 297,000 jobs were added in December (seasonally adjusted)!  Because employment tends to be a lagging indicator of the market, we have to hope that it stablilizes over the next 18 months – once again, let’s just hope we don’t lose more jobs,  and maybe even continue to add them.  Initial jobless claims are down, and the word on the street is that big banks are hiring again and are adding 6000+ jobs back on the roster.  Lastly, according to CNNMoney.com, there has been a 2% increase in childcare employment – an unofficial sign that people may be returning to work and therefore require more childcare. 

 

On the home sale front, November 2010 existing home sales jumped 5.6%, according the National Association of Realtors (although that followed slumpy sales July-October).  I know that with many buyers, there is a sense of wanting to find a home before the interest rates threaten to rise.  I have clients right now who are eagar to find a home quickly in order to lock in lower interest rates for their mortgage – this sense of urgency seems to have driven a tiny boost in the fall market.  I do think that we will have a winter slump (as per the season), but I do anticipate that spring will bring us a decent market for sellers and buyers.  And with a tiny 0.4% increase in median home prices in November, there is a glimmer of hope for the spring.  I think NAR would argue that low home prices, stable family incomes and low interest rates make this the perfect time to buy a home.

 

I have decided that statistics, in some ways, are meaningless.  While they seem to provide us with a sense of hopefulness for 2011, they still indicate a lengthy journey back to our “days of wine and roses.”  Our perception of homebuying has been distorted from years of homeowners using their homes as primary investments – looking for short term gains buying and selling, renovating and flipping.  Homeownership traditionally has been about the decision to set your roots in a community to live – I say, you buy a home when you need one – if your life takes you down that path.  A home is, after all, a place to live your life and raise your family, celebrate memories and feel safe.  You get a tax break for your mortgage interest, and we should all be so lucky if we make some money from the home in which we have invested our time, love and lives.

 

If you or anyone you know is searching for a home in the NJ area, please don't hestiate to contact me at http://us.mc328.mail.yahoo.com/mc/compose?to=nancychu_homes@yahoo.com or 917-992-3098.  And if you want to check out the most updated home search website, have a look at http://nancychusellsnj.findbestnjhomes.com/.

USA! USA! Growing NJ School Capabilities in an International Arena

Anyone read THE ATLANTIC?  I love this magazine – this publication has no qualms about pointing out the flaws in political “truthiness,” agreed?  The December issue has a fabulous article titled “Your Child Left Behind” which details recent Stanford based standardized ranking experiments, comparing school mathematics achievement in each of the 50 states to those in other countries.  Data is based on scores from PISA, taken periodically by high school 15 year olds here in the states. 

The results?  Yes, yes, Taiwan is #1 – way ahead of the pack – this is old news…but one bright glimmer of hope is shining in the distance – an indicator of future achievement (one would hope).  MA, MN, VT, NJ & WA rank higher than expected, in and among the ranks of countries like Germany, Denmark, the UK & Sweden – thank goodness.  I am nothing but pleased as punch to be able to count our fine state as among those with a fighting chance at completing on the international stage academically!  Your choice to move to NJ?  An excellent one…congratulations to you.  Eat my dust, CT!

Wanna hear the kicker?  The usual arguments of why our states are poor overall scoreres aren't holding water.  According to the experiments, there is very little direct correlation between the scoring and privilege.  Yes, you read it right…the scores were further broken down to isolate scores for only white students, as well as all students with at least one college educated parent, and the results indicate that just because you have a greater life advantage, it doesn’t necessarily translate to more competitive scoring in mathematical proficiency in comparison to average students from other countries!  Also, the results seem to indicate very little direct correlation between class size and dollar amount spent per student, as previously thought – smaller classes and spending more money per child is NOT a panacea for all our school ills.  This is news to me, but certainly piques my interest.  So…then what is the fix?

According to the article, there is a relationship between how teachers do on teacher-prep programs and how the students do – MA, for instance, is asking their incoming teachers to pass basic literacy requirements – the idea being that you can’t teach what you yourself don’t know.  It seems to be working…at least on paper…

Let’s hope NJ continues down the same path – I’d like to see my son beat out that Finnish kid for the same job 20 years down the line because he went to a competitive school right here in NJ… and I like our chances better and better.

The find out more about NJ schools and homes in the area, contact me at 917-992-3098 or nancychu_homes@yahoo.com.  To read more about the article, go to http://www.theatlantic.com/magazine/archive/2010/12/your-child-left-behind/8310/

Columbus Was an Immigrant!

East Hanover, as I discovered, has the region’s largest Columbus Day Parade & celebration, which I attended today, along with my 4 year old, who is a SUCKER for a marching band (when asked what he wants to be when he grows up, his standard answer is “bagpiper, because they march in parades”).  As I was returning to the shady spot I had staked out along the massive parade route from the port-o-potties (yes, this parade is big enough to have port-a-john stations…), I crossed the parking lot where a wide array of vintage and muscle car collectors were displaying their vehicles.  One gentleman in a gorgeous, baby blue 1956 Cadillac was pulling into the lot, and arguing about the spot he had been directed to.  “I don’t want to be with all them damn foreign cars, I wanna be there next to the American cars!  It’s Columbus Day and this car is American!”  There may have been an epithet or two as well, but who needs to share that, right?

I found myself really perplexed by the comment, which seemed to be somewhat paradoxical…or at least going against the grain of the very holiday itself.  This is the commemoration of the day that Christopher Columbus (an Italian), sailing for Spain, landed in the New World, and specifically, the Bahamas.  The Italian immigrants that came to this country in the mid-19^th century were seen for generations to come as foreigners themselves, fighting for homes, jobs and the right to worship God as Catholics.  Columbus Day is a symbol of that struggle, a celebration of Italian heritage and the collective strength of a people who came as “Italians” and remained as “Americans.”  I found the man’s comment shocking because I just couldn’t comprehend the idea that being co-opted into the American melting pot gives license to any man to separate himself from anyone else who also seeks that privilege and right.  I imagine that he may have been a proponent of “buying American,” but the “foreign” car he was referring to was a Japanese brand, undoubtedly now built in a US plant.   

As part of the Asian immigration wave that began after 1965, and myself being foreign-born, this comment cuts me to the core.  Because I am like that Japanese car – I am a real estate agent, a home owner and a tax payer.  I’m a member of the PTA, attended Sunday school, vacation at Disney World and VOTE my heart every time.  Maybe I’m not Italian, but my husband is, and my son carries proudly his father’s name and MINE…”Chu-Ricci.”  I guess my perspective is that I am just as thankful to Christopher Columbus and Queen Isabella of Spain for finding the Americas, setting into the play the events that lead to my American life.  Columbus Day, to me, is not just for Italian Americans, but for all immigrants, especially those that have the honor of calling themselves American, by birth or by naturalization.  And some grumpy old guy in a classic car can never take that away.

Columbus Day is essentially a patriotic holiday much in the vein of the 4^th of July, only without the fireworks or sheet cake with strawberry stripes and blueberry stars.  However, as far as patriotic holidays go, this one always seems flooded by politicians with their shiny teeth and lacquered hair, waving from vintage American cars – an image that brings to the surface a sense of nostalgia, of a time when things were better and life was easier and honest work was all a man expected out of life.  Perhaps it’s because Columbus Day is so close to November elections…the flesh-pressers just can’t pass up the chance to campaign.  This tinges the holiday for me…an underlying, subtle sense of discontent that follows politicians around like a lingering odor…”vote for me…I’ll make you rich…I’ll keep you safe…let’s take back America…”  From who?  From your neighborhood Vietnamese shop owner?  From the Greek family who runs the diner on Valley and Main?  From the ex-pat Brits who moved down the street 5 years ago when he was transferred by his company?  From the guy who owns the garage in town who you can’t tell where the heck he’s from because you’ve never heard a name like his before and he looks like he could be any number of things?  Why can’t this holiday just be about loving this country, no matter who you are?

And to the gentleman in the Caddy – remember, it’s only been about 6 decades since the end of WWII, and discrimination against Italians began to decline.  That’s not that long ago – it certainly isn’t long enough ago to forget what it means to be an immigrant in America. 

So You Think You're Moving to Jersey!: Columbus Was an Immigrant!

So You Think You're Moving to Jersey!: Columbus Was an Immigrant!: "East Hanover, as I discovered, has the region’s largest Columbus Day Parade & celebration, which I attended today, along with my 4 year old,..."

How I failed my son in school...and what I can do the FIX it...

A client of of mine recently expressed concern about her younger son, who is undoubtedly, advanced academically – I mean, I have seen this kid read AND comprehend material that many high schoolers would have difficulty with. Despite being in a multi-age class, the material being presented in his 1^st & 2^nd grade classroom just wasn't compelling to him. Now, mind you, he goes to a good school. A VERY good public school – great test scores, great faculty, and as much as you can get from a public school in a country where public school funding is the government wallflower of “let's-just-take-a-little-more-from-you.” It reminded me that no matter how good your school is, public or private, the most important thing to ensure your child excels, is parental involvement.

My own son attended a local Montessori pre-school last year for his 3's, and it was, needless to say, an experience that I found to be an ill fit. Now, regardless of the whole set of Montessori principals, which I do believe in for the right child (my son, is NOT ideal for a self-directing environment...), I found that he left to his self-direct, would wander aimless from activity to activity. Being somewhat precocious on some skills and behind on others, I found that casual interactions...even parent-teacher conferences weren't sufficient in getting to the root of how best to TEACH him. The school was lovely, but they did little to further his already advancing reading and comprehension skills, and instead focused much of their efforts on socialization and direction following. This is not a surprise – my son could use work on both. But without a way to engage him on what he DOES love, they had a hard time getting him to do what he DIDN'T want to do.

I, of course, missed all of this – went right under my radar – I mean, when we talked, he was always “improving at listening” and “getting better at following directions.” This sounded like progress, right?  Until the very last two months of the school year, when the headmistress advised that I consider “getting him tested.” “For what?” I ask, completely blindsided. “Well, ask your pediatrician – he just can't sit still and follow direction,” they tell me. I think that is teacher codes for “attention deficit,” but since he is only 3, no one wants to be the one to start THAT ball down the aisle... So with one sentence, everything I thought I knew about my son and his educational standing was completely blown out of the water.

I then proceeded to discover, a week later, at a field trip to a giant petting zoo disguised as a farm (Green Meadows in Hazlet – lovely day trip, by the way...), that despite my telling them several times, they hadn't realized the extent of my son's reading capability. When standing in front of the donkey paddock, my son looks at the sign and says “Pancho? That's not a Pancho, it's a donkey!” (obviously the name of said donkey). The teacher next to him was amazed that he had read the word on the sign – a word he was unfamiliar with and had to sound out with a solid grasp of phonics. At that moment, I realized just how little they knew of my son's capabilities, and how little they were equipped to deal with his potential attention-based issues. I also realized, with great humiliation, how little I had understodd of the situation and done to advocate for him. I walked away feeling it was a waste of year - not to mention the pricey tuition – but mostly, I was sad that he didn't get the most he could have from the experience.

So I set out to find ways that a parent can take a more active role in their child's educational process, and my sister-in-law, an elementary school teacher in CA who has taught in every environment possible – from inner city schools to Jewish day school - helped me to define a few key points on how to keep the lines of communication open with your child's school:

• Go to the first meet and greet – even if you have to take part of the day off work – it's worth it to know who will be shaping your child's mind/body/soul for the next 9 months. Make sure you also know any of the paraprofessionals that may be working with your child.
• Find a small block of time, even if it is just 10 minutes, to introduce what your child's strengths are – trust me, they will find the weaknesses after just two weeks in the classroom, but a child's strongest suits can often be hidden in shyness or even lost on a sea of children with greater immediate needs. A good teacher will cleverly use your child's strengths in the classroom to positively affect the entire class.
• Volunteer, volunteer, volunteer. It's time consuming and we all cringe at the idea of a bake sale fundraiser, but find the time to do at least one event per year – it's the best way to keep your ear to ground about new developments at school and how they may affect your child.
• If you feel that the material is not working for your child – be it too basic or too advanced, bring in supplemental materials that your child may enjoy working on at home, and ask the teacher to find ways to implement them. They should be able to find ways to integrate the material, and if they resist, you can always continue the work at home on your own.
• When you prepare for parent conferences, have your questions ready to go – this way you can make the best use of your time with the teachers.
• If issues do arise in the classroom, ask your teachers how they are addressing them, and find ways to support at home. Since my preschooler has some early signs of potential attention-based issues, the teacher's approach at school, which does seem to be having a positive affect on his abilities to focus, we mirror at home as much as possible.
• Funding is always an issue with schools, and with budgets slashed for “non-essential” programs, such as art, music and drama, look for ways in which you can either help provide funds for specific projects (getting a local business to sponsor) or if there are talented members of the community who may be interested in giving their time for a special class event here or there.

I have a special place in my heart for the Marshall School in South Orange – this is the school that my son will be attending once he hits Kindergarten. In my duties as a real estate agent, I often arrange and attending school tours with my clients, and I was especially impressed by this school. You could tell at the end of last year that the schools were really smarting after the funding cuts, and on a tour of the Marshall School, I saw a beautiful quilt, clearly a proudly displayed class project. Out of curiosity, I asked the tour guide (one of the administrators) where they got the money for this project. She replied, “The teacher who did this researched, wrote and received a grant for this project. We're very proud of how proactive our teachers are.” I can't wait for my kid to get her!

I suppose that there is no panacea for the issues with our American public school system, but it really is a choice to make the most of what it provides to our children. I hope I don't appear to be overbearing, but better that than oblivious as before. I see now that I am the best advocate for my child in the system, and I won't fail him again. Oh, and by the way, now he knows that “Pancho” is the name of the donkey...

Don't Miss the SUPER SALE on NJ Homes!

There is no doubt that you have noticed an increase in homes on the market - many sellers waited out the spring market to gauge recovery, and because of the home buyer tax credit, etc., we had a bit of a false positive on the state of market recovery.  So many would-be sellers, anticipating a good summer/fall season, put their homes on for sale.  The result was a mini-glut of homes, some priced to sell, others priced to sit...some priced to sit until they became as stale as last week's bread.

Increased home inventories in our local towns seem to have had a strange effect on the local buyers as well - with so many homes on the market, all sense of urgency to buy is gone.  The few buyers that are qualified to buy are reveling in towns with inventories of 4 to 8 months worth of homes for sale - nearly double the amount of inventory as we are accustomed to.  So...the result?  Buyers take twice as long to wade through the inventory...and even then, they seem to be suffering a little of the "gotta be a cheaper gas station at the next rest stop" syndrome.  Without any sense of urgency, they pass on beautiful, lovely homes in the elusive search for the "PERFECT" home (I know I can get a 2 car garage, master suite AND a full finished basement if I just look hard enough...I can wait...).

Now, I, as a real estate agent, am all for buyers getting what they want - I myself stalked my current house for 6 months before making a move, so I know the impulse.  But there are a few caveats to this strategy that will help us to balance the delicate need to find a home we love, as well as "play the game" to our advantage in price:

1) Do not let "PERFECT" become the enemy of the "GOOD" - buyers remember, this part of NJ is full of sturdy older homes - if you are looking for a house with a master suite walk-in closet, unless someone has chewed up a second bedroom to make it, it probably doesn't exist.  When these houses were built, no one had 50 pairs of designer sandals, so you aren't going to find the storage for them in your room.  Temper your expectations in a reasonable fashion in relation to the kinds of homes in the area, and if you choose to live this close to NYC, you might have to choose between a family room and a 5 minute stroll to the train station.

2) Record LOW interest rates not appealing enough for you?  Conventional wisdom says that they will stay low through the November elections, after which, historically, there is a bump in rates.  While a quarter of half point bump doesn't do a lot of damage to your buying bottom line, for first time home buyers, it can seriously affect what you can afford.  Remember, a 1% increase in interest rates means a reduction in your home buying power by 9%.  And with interest rates already well below 5% for most qualified buyers, this is the time to borrow - money has never been cheaper, and no, I don't see them dropping further.

3) Oh, let's not forget the record low home prices.  In this area, we thank our lucky stars for the proximity to NYC because we know that we didn't lose value like Nevada or Florida or Michigan.  Homes have lost on average between 10%-25% of their values from the height of the market, and if you want to get a good price on a home, offer strategically and make an evaluation of why the seller is doing so.  It will help you to get the best price for a home - of course, that is why you work with a realtor, too - to help you make these decisions and negotiations.  And please note, around here in northern NJ, there are towns that still have bidding wars on homes, so don't think we aren't still somewhat strong as far as housing markets go.  Oh, and all the experts (Case-Schiller index for instance reported that prices were up slightly in September in the top metro areas, which does include north NJ), say that prices are trending back up -  the overall national average for September is up 4.2% over this same time last year.

4) Motivated sellers - enough said.  It's a buyers market.  We all know this.

5) Motivated lenders - underwriting standards seem to finally be settling down from the subprime disaster, and fund are available.  If you have a job (with decent credit) and can afford the payments, chances are, you can afford a mortgage.

Have you ever noticed that when there is a table of shirts for sale, no one seems interested unless you see another shopper thumbing through them with a stack of shirts that they are considering buying?  And then all of the sudden, that microfiber lightweight windbreaker that woman has in her hand is "just what you were looking for, too...oh, and it's the last one..."  We all understand the law of supply and demand - if the demand goes up as it does in the spring, supply will go down, and prices will start to inch up.  Don't miss the clearance sales going on right now!

We shall see what this fall brings - I have a handful of hardy, intrepid buyers that see the value of buying now, not only because of the rates and prices, but because they see the market over the next few months being especially fruitful as sellers may look to get out before the holidays and winter.  I know these buyers are going to get a great deal on a home...and I am going to make sure they get the most for their money.  Because in the spring, as always, there will be a bump in prices - small or not, a bump is a bump.  Come check out the sale table while you can...

High Essex County Property Taxes? File an Appeal? What's to Lose?

In a market where prices have come down, home owners have a lot to gain by appealing their property assessments - especially for owners who may be looking to sell in the next year or two, higher taxes can really deter potential home buyers.  If you are planning on selling your home soon, now is the time to organize an appeal of your assessment - the timeframe is January 1st-April 1^st, 2011 to file the appeal - don't miss it!

The best avenue of appeal is hiring a tax appeal attorney, and barring that, hiring a professional appraiser who can testify at your appeals hearing.  Those solutions are all quite pricey, costing at a minimum, $1000.  If you are an intrepid home owner and would like to give it a shot on your own, please note the instructions forwarded to me.

TAX APPEAL INSTRUCTIONS
The form (A-1Petition of Appeal) for an appeal to the County Board of Taxation may be downloaded from the NJACTB site. The link is: http://www.njactb.org/
At the Home/Welcome page, select "Forms" from the list near the top. At the "page not found" page that follows, type "A-1 Petition of Appeal" in the search window at the top right and click on Submit. THE FORM MUST BE PRINTED ON LEGAL SIZED PAPER.
Information needed to fill out the form may be obtained by selecting "Record Search" at the NJACTB Home/Welcome page. Form may be filled out by hand.

1. Select County
2. Select Municipality
3. Type Street address in the "Location" section, i.e. 123 Chestnut

General Information:
Property Class is "2" for 1-4 family residences.
Cite your name & contact information.
Cite attorney name and contact information as "person or attorney to be notified".
Requested Assessment can be any amount, or can be noted "appraisal to be provided", leaving the requested assessment blank.
Reason for Appeal should be "Assessment exceeds market value".
Note "Appraisal to be provided" in the COMPARABLE SALES section.
You will need 3 copies of the completed appeal form
Date and sign as petitioner.
Deliver a copy to the Municipal Tax Assessor office, noting date and name of town as indicated. Date and sign.
Deliver a copy to the Municipal Clerk's office, noting date and name of town as indicated. Date and sign.
Mail (return receipt recommended) a copy with a check in the appropriate amount (see instructions on page 2 downloaded with form) to:
Essex County Board of Taxation
50 S. Clinton Street
East Orange, NJ 07018
The forms must be filed no later than April 1, 2011.  After the filing deadline the County Board will establish hearing dates. Hearings will not begin until May and may continue into August, depending upon the number of appeals received. You and your lawyer will be notified of the hearing date 10-12 days in advance. Hearings are usually scheduled in order of Block #. The appraisal is filed with the town and county 7 days before the hearing.