Real Estate Beyond Four Walls

It is always interesting to take a look at what the trends are with home buying and selling. Here are some of the top trending items--take a look.

1. The typical homebuyer searched for a new home for 12 weeks and viewed an average of 12 homes before making a decision.
2. 37% of all of the home buyers were first time buyers, which was down from 50% the previous year (probably due to the first time homebuyer credits that were offered in 2010).
3. 88% of homebuyers used the internet to search for a home; down from 90% previous year.
4. Nearly 1 out of 4 buyers said the application and approval process for a loan was somewhat more difficult than expected and 16% said it was “much more difficult.”
5. About half of the home sellers traded up to a larger home.
6. The top factors influencing neighborhood choice were: quality of the neighborhood, convenience to the job, and overall affordability.
7. The typical seller lived in their home for 9 years. That number has increased from 6 years which was the trend in 2007.
8. 61% of the sellers indicated that they reduced their asking price at least once, but the average home nevertheless sold for 95% of the list price.
9. Only 10% of sellers sold their homes without the assistance of a real estate agent. Of that number, 40% knew the buyers prior to the sale.
10. The number of buyers who purchased their home with the help of a real estate agent has climbed to 89%. This has seen a steady increase since 2001 when the percentage was at 69%.

2011 was a fairly decent year in terms of number of houses sold in the area and we expect 2012 to be a vibrant year yet. Here are some interesting statistics:

	# of houses sold in 2011	Current Active Properties	Under Contract Since 01/01/12
Maplewood	227	126	4
South Orange	146	80	2
Millburn/Short Hills	218	74	3
Summit	201	71	5
Livingston	243	98	3
Montclair	297	142	3
Westfield	313	109	7

One interesting thing to note is how incredibly active the Westfield market has been. The population of that town is just under 30,000. The population of West Orange is about 46,000 and the population of Montclair is about 39,000. These are the two towns who have performed similarly to Westfield. Given the lower population in Westfield, it is clear that the town is outperforming some others in the area.

For further comparisons:

Maplewood population: 24,000

South Orange: 17,000

Millburn/Short Hills: 20,000

Summit: 21,000

Livingston: 35,000

Buckle your seat belts as I believe we are in for an amazing Spring Market 2012! There is pent up demand out there along with crazy low interest rates and an affordability index that has not been present in this area for a very long time!

If you are looking to sell your home this Spring, please call me for a consultation ASAP. If you have any friends or colleagues who are looking in any of these or surrounding areas, please think of me. I am never too busy for your referrals and they are greatly appreciated!

Before you even begin looking at a Maplewood home, you may want to take a look at your credit score first.  Your FICO score is a major factor in determining how much interest you have to pay on a mortgage loan.  The higher your score, the less you pay.  If your score is below 620, you may have a particularly difficult time obtaining a home loan.  First and foremost, pull a copy of your credit report from all three credit reporting agencies (Experian, Equifax and TransUnion).  You are legally entitled to one credit report per agency per year for free.  Go to AnnualCreditReport.com to obtain your free credit report.  This is the only site authorized by the Federal Trade Commission to provide you with a free report every year.  You may find a big discrepancy in your credit scores from agency to agency.  For example, Experian may show your FICO to be 685, Equifax says it's 705 and TransUnion has you at 640.  The difference in scores is accredited to the fact that not all loan companies report to each agency.  Each credit reporting agency uses the information they are given.  That's why you need to get a copy of your score from each of the three agencies. Once you receive your report, go through it to check for errors: credit cards you never had, loans that say you owe a different balance than you do, a debt that may show as a charge off (the company couldn't collect on the debt) instead of paid off (you completely paid it off), etc.  Any error you find can hurt your credit score.  When you find an error, write to the reporting agency directly explaining the mistake, provide proof of the mistake and request that they correct this error on your report.  Also, contact the company that reported the erroneous information to dispute it.  Make sure to request that they provide you with written documentation that this was indeed an error as well in case it does not get taken off your credit in a timely manner. Pay down your credit cards.  Part of your credit score is determined by your debt-to-credit ratio.  Financial experts recommend that you keep the balance of your cards below 30%.  For example, if you have a credit card with a $1500 limit, you need to keep your balance below $450.  Maxing out your credit cards, even if you pay your monthly payment on time all the time, will hurt your credit score.  If you have been a long-time customer in good standing, you may want to contact your credit card company to request an increase in your line of credit.  Don't use this extra credit, though.  This will lower your debt-to-credit ratio on that card, increasing your credit score. Never be late...ever!  Payments that are late even just a couple of times can have a negative impact on your credit score.  The other positive to paying on time is that you won't have to pay those nasty late fees.  Instead, that money can go towards paying down your balance/principal. Don't apply for new credit within three to six months before applying for a Maplewood home loan.  Anytime you apply for credit, whether it is a major credit card, department store credit, car loan or other, your credit score is reduced by 5-10 points.  This can quickly reduce your "good" credit down to "fair" or worse, increasing your interest rate and lowering your chances of being approved for your home loan.  The same rule applies after you have applied for your home loan.  Put a freeze on applying for any new credit until after close of escrow.  If your credit score changes while you are going through the home loan process, it can significantly hurt your chances of actually getting approved. This blog post is provided for information purposes only.  I am not a credit expert nor a certified financial adviser.  If you do have any questions about how you can get your credit score in order before you buy a Maplewood home, please contact your accountant or other financial adviser.  Let me know when you're interested in searching for your Maplewood dream home.  I'm always here to help. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood is Home real estate blog here: http://maplewoodishome.com/2012/01/credit-score-and-buying-a-home/.

You've decided to place your Maplewood home on the market.  Before you begin showing it to the public, however, there are a few things you should do first to get your home ready to sell.  Making sure your home is in tip-top shape before potential buyers see it will help increase your home's value and can have a huge impact on how long your home stays on the New Jersey real estate market. First and foremost, do a deep cleaning.  Most homeowners do a general pickup throughout the day and/or week.  But THEY aren't trying to sell their Maplewood home.  Home buyers look at everything...and I do mean EVERYTHING.  Wipe down walls, crown molding and baseboards.  Move your refrigerator, dishwasher and oven to get to the dirt and grime buildup behind and underneath.  Scrub the backsplash as well as the hood above your stove where grease can spatter.  Wash the windows both inside and out until they are gleaming.  Clean up any wall smudges.  Wipe down the outside of your cabinets and appliances where greasy fingers leave their imprint.  Spring cleaning is good anytime of year when you are trying to get your Maplewood home ready to sell! Get rid of any clutter (knick-knacks, personal photos, collections of any sort, extra books).  You want to keep kitchen countertops, bathroom space, living room bookshelves and bedroom furniture clear of clutter.  Whatever you don't use on a daily basis should be packed up and stored neatly away, preferably at a storage facility if that is in your budget.  Remember that you are going to have to pack these items up when you get ready to move anyway.  Doing it now makes your Maplewood home seem larger, brighter and cleaner AND it reduces how much you have to pack up later.  If you can't afford a storage facility, stack these boxes neatly in the attic or garage.  Buyers are going to look there, too.  You want your home to look model perfect when buyers look through them.  Get a home inspection.  They're not just for home buyers anymore.  A professional inspection will show you what issues need to be addressed immediately.  Home buyers tend to double the actual cost to make repairs.  In turn, they will offer much less for your Maplewood home.  You can usually fix these issues easily and for much less, which makes your home more attractive to a buyer.  This cuts down on your home's time on the market as well as increases what a buyer considers your home to be worth at the negotiations table. Finally, now is the time to make those minor repairs you have been putting off.  The creaky door should be oiled.  The broken lock on the gate needs to be fixed.  Replace or repair torn window screens.  Loose railings should be tightened.  Your doorbell definitely needs to be in working order.  These may seem like minor things to you but they make a buyer wonder what larger issues haven't been taken care of, which can affect their offer price. Getting your home ready to sell doesn't necessarily mean breaking the bank.  Sometimes, just a little elbow grease and careful planning can turn your Maplewood home into a real showpiece.  Please contact me if you're considering selling your home soon.  I'd love to work with you. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Real Estate Beyond Four Walls blog here: http://maplewoodishome.com/2012/01/get-your-home-ready-to-sell/.

Ah…the $64,000 question!

Many of you may have heard that the Federal Reserve had promised to keep rates low through 2013. That is surely great news, but the question is, "How low is low?” For the past two months, the rates for a 30-year fixed mortgage have been at or just below 4%. Housing affordability is through the roof right now and will continue to be for the foreseeable future.

The rates are in fact expected to move up to about 4.5% during 2012 and into the lower 5% range for 2013, this is still very low based on history. Until the year 2000, rates were typically around 8%. If you think that is bad then you probably do not remember the rates during the early 80’s which were hovering around 16%.

Yes, our economy has gone through some dreadful times over the past few years and many still continue to face unemployment and other financial difficulties. Low mortgage rates are great for those who have good credit, a steady job and a down payment. This unfortunately does not apply to everyone right now, but if you are in the crowd who can make a purchase, then DO NOT WAIT! The Spring market is right around the corner and will offer a wide selection of properties in all price points.

Property Taxes in Maplewood

If you would like a professional opinion on where you stand with regard to the likelihood of successfully challenging your taxes, please email me. I will do a Comparitive Market Analysis on your home and supply you with some ammunition that will allow you to go to the town and file a tax challenge.

The end of 2011 showed that mortgage rates still hover near historic lows.  That makes financing a Maplewood NJ area home even more affordable.  While up only slightly over the previous week (0.04% to be exact), the average interest rate for a 30-year Fixed Rate Mortgage (FRM) was just 3.95%.  This marked almost a full percentage point less than the same time last year (when it ended at an average of 4.86%).  The 15-year FRM was also slightly up from the previous week (0.03%) at 3.24% but was also almost a full percentage point less than the end of 2010 (when it was 4.20%).  In fact, interest rates for Fixed Rate Mortgages were less than 4% for the last nine weeks in a row at the end of 2011 and were only above 5% twice for the entire calendar year.  That's quite impressive. Since your mortgage payment typically goes towards the principal, interest, PMI (if you put less than 20% down) and taxes (if you divide it up into 12 payments and include it in your monthly payment instead of having to come up with it all at one time during the year), the interest rate on your loan can have a significant impact on your monthly payment.  Let's say that you purchase a Maplewood home today for $320,000.  Your credit is good so you qualify for the 3.95% 30-year FRM.  Your monthly mortgage would be $1518.52.  However, the same loan exactly one year ago would have cost you $1690.55 per month.  That's a savings of approximately $2064 over the course of one year.  That's a lot of money! These interest rates will not stay so low forever.  Home prices in the Maplewood area also remain at affordable levels.  When coupled with the historically low interest rates and the Mortgage Interest Deduction, buying a home is a much more cost-effective way to spend your housing dollars than renting.  Besides the pride of ownership, your monthly payment can actually be less than your rent.  A 30-year FRM will ensure that your mortgage payment never goes up, either.  The same can't be said for rent, which will typically increase when your signed rental agreement is over. Take advantage of the low interest rates now.  They won't remain this low forever.  If one of your resolutions for 2012 is to be the proud owner of an Essex County home, contact me today.  I can help you find exactly what you're looking for now. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood is Home real estate blog here: http://maplewoodishome.com/2012/01/interest-rates-still-near-historic-lows/.

I hope everybody had a fantastic Christmas.  The day may be over, but the holiday season is not.  This Saturday is New Year's Eve in Maplewood.  That means lots of celebrating still to be had.  If you're in the Maplewood area on New Year's Eve, you may want to bring the family down to Maplewood Middle School (17 Burnet St) beginning at 4:30pm for circus performances as well as arts and crafts.  There will even be a fireworks celebration at 7:15pm in Maplewood Memorial Park.  Livingston Taylor will then perform a special program at 8:00pm. Singer-songwriter Livingston Taylor performs his own hits as well as others, including Broadway tunes, jazz, gospel, folk music and even pop.  Along with his musical compositions, listeners will be tantalized by his fascinating stories and warm anecdotes.  He is an artist in every sense of the word.  So, you don't want to miss this special New Year's Eve performance. For 20 years now, local entrepreneurs have been hosting First Night to ring in the New Year in the Maplewood/South Orange area in a fun, family-friendly manner.  Wristbands for the event can be purchased at Kings Supermarket (159 Maplewood Ave in Maplewood, NJ), Maplewood's Main Branch Library (51 Baker St in Maplewood, NJ), Cold Stone Creamery (3 Sloan St in South Orange, NJ) or the South Orange Library (65 Scotland Rd in South Orange, NJ) for just $10 each.  You may also purchase your wristbands online for $11 by visiting the First Night website here.  If you wait until New Year's Eve, wristbands will be available at the door for $15 each.   The special performance by Livingston Taylor is only available via special preferred seating.  Tickets for the concert are only available online (click here).  For $22, you will get a reserved seat to the concert as well as a wristband for admission to First Night.  Kids under 3 years old can attend the concert for free when accompanied by a paid adult but will need to sit on the lap of the adult for the duration of the concert. Enjoy a family-friendly New Year's Eve in Maplewood-South Orange this year by attending First Night at Maplewood Middle School.  There will be circus performers, hands-on arts and crafts, fireworks and music.  Ring in the New Year with your family in this fun, unique way.  Happy New Year, everybody! Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood is Home real estate blog here: http://maplewoodishome.com/2011/12/a-family-friendly-new-years-eve-in-maplewood/.

Whether buying or selling a Maplewood home, a home inspection is an important piece of the puzzle.  For buyers, it helps identify potential problems that you may have overlooked on your initial visit to the property.  For sellers, a home inspection can point out areas that need to be addressed before you place your home on the market.  Since buyers tend to overestimate the actual cost to repair or replace large items in a home (such as carpeting, roofing, plumbing, etc) by as much as 100%, the amount they offer to purchase your property can be significantly smaller than it should be.  On the flip side, by fixing these problems before you sell your Maplewood home, you may actually get more than you thought for it.  It helps to know what you can expect in a home inspection and what isn't covered. A home inspector performs a visual inspection of your home's physical structures as well as the systems inside your home.  This includes the roofing, attic (any visible insulation), chimney (if applicable), visble ventilation, electrical system, heating and air conditioning systems, interior plumbing, ceilings, walls, floors, windows, doors, basement, foundation and decks/porches.  Basically, whatever is visible and accessible to a home inspector will be looked at and evaluated in the home inspection report.  Home inspectors are not legally bound to move any item in order to inspect whatever is behind it.  For example, if a homeowner decides to place a bookshelf in front of a stain on the wall to hide it, the inspector may not see it.  A home inspector will also not test for mold or pest/insect problems. An inspector may notate in their report that they have seen visible signs of mold or that there are signs of possible termites but they are not legally bound to.  Testing must be done through other sources.  You ask your REALTOR® for recommendations on who to use if you need to.  Additionally, a home inspection does not cover the septic system, burglar or fire alarms, sewer drain lines or phone/cable equipment. Knowing what to expect and what not to expect in a home inspection can help you make an informed decision on whether to purchase the property and for what price (if you are a buyer) or what needs attention before you place your Maplewood home on the market (if you are a seller).  An informed client is a happy client.  Contact me if you have any questions.  Please remember that I am not a professional home inspector.  This post is meant for information purposes only.  For more indepth information, please contact the American Society of Home Inspectors. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood real estate blog here: http://maplewoodishome.com/2011/12/what-to-expect-in-a-home-inspection/.

We are supporting Toys For Tots. You can participate by dropping off a new unwrapped toy at our office until December 21.   We are located at  181 Maplewood Avenue  Maplewood, NJ.

In an effort to provide some small sense of stability during the holidays, mortgage lenders are temporarily suspending all foreclosure evictions of loans that originated through Fannie Mae and Freddie Max until 2012.  Beginning December 19, 2011 and continuing until January 2, 2012, Fannie Mae and Freddie Mac will not evict any family who's property is in foreclosure.  This involves all occupied single-family homes as well as occupied two to four unit multi-family housing.  While that doesn't mean that Maplewood homeowners facing foreclosures won't be evicted at all, it does mean that they do have a roof over their head during the hectic holiday season.  Hopefully, this will give some sort of feeling of relief, no matter how small. Legal proceedings will continue throughout this time as well as all administrative activities.  Fannie Mae and Freddie Mac representatives have both said that they don't want any families without a home during the holidays.  That is why they have decided to suspend any evictions until afterwards.  Other mortgage lenders have adopted similar moratoriums.  Wells Fargo will suspend their evictions from December 19, 2011 to January 2, 2012.  Bank of America and JPMorgan Chase also announced that they would suspend foreclosure evictions during Christmas and it appears that Ally Financial will be following suit. If you are a Maplewood homeowner struggling to make your mortgage payments and foreclosure is looming steadily closer, you may want to take this time to find out about possible foreclosure alternatives.  There are several government programs in place that may be able to help you stay in your home rather than lose it.  But you must act now, before it is too late.  Suspending foreclosure evictions until 2012 is a lovely gesture on the mortgage companies' end, but not losing your Maplewood home is an even better option if you can do it.  Contact me now to see what options may be available for you today. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood NJ real estate blog here: http://maplewoodishome.com/2011/12/foreclosure-evictions-suspended-until-2012/.