Real Estate Beyond Four Walls

The 2012 Spring market is off to a great start. There was actually a 31% increase in homes going under contract in January--up from last year. Certainly the weather has had a lot to do with this along with more consistent job creation, low mortgage rates and overall improved consumer sentiment. The housing affordability index is now at 131%. What this means specifically is that the median income of the consumer now affords them the ability to afford a home. If you have a job, good credit and enough savings for a down payment, this year offers a huge opportunity for home ownership.

The most vibrant part of the market is the lower price points, but once again, movement in this lower area paves the way for demand on the higher priced homes. I just listed 27 Roosevelt Road in Maplewood for $829K. The amount of traffic visiting this house reminds me of five years ago when the market was crazy! We hope to have an offer this week (fingers crossed)!

Now is the time to list your home! If you have any desire to move this year, your plans need to be underway now. Don’t wait to find the perfect home that you wish to purchase before you put your property on the market. Let’s face it, you can find that perfect home, but you cannot buy it if your home is not on the market. It will most likely be gone by the time you are ready for it. The days of the banks issuing a line of credit to allow you to purchase before you sell are long gone!

Here are the most recent town statistics. The first number is the Active properties and the second number is the properties that have gone under contract since Feb.1:

Town	Active Inventory	# of properties under contract since Feb 1
Maplewood	136	31
South Orange	92	23
Millburn/Short Hills	101	33
West Orange	337	60
Montclair	144	45
Summit	103	41
Westfield	141	36
Chatham	110	17
Madison	62	16

High school seniors in Essex County schools can now apply for a $500 Nancy and Robert Eskow NCJW Community Award that can used towards their college education.  This award is given out by the Essex County Section of the National Council of Jewish Women.  Any high school senior who has made a committed effort to making life for local citizens as well as citizens of the world better through school or community groups is eligible for this award. To apply, simply talk to your guidance counselor or contact the NCJW's Essex County Section at (973) 740-0588.  Only students graduating this year (2012) who attend a public or private Essex County school can be eligible.  All applications much be completed and turned in by the April 2, 2012 deadline to be considered.  Last year, three Essex County graduating seniors were each given $500 for their involvement and contributions to community projects and service programs. The National Council of Jewish Women is a nonsectarian organization comprised of volunteers and advocates who strive to improve the quality of life for all citizens, no matter what their age, religious affiliation or social standing is and to safeguard the rights and freedoms of women, children and families throughout the country.  The Nancy and Robert Eskow NCJW Community Award was set up to reward those individuals throughout the NCJW network's reach who have made a concerted effort to follow the ideals set forth by the NCJW.  If you or an Essex County high school senior you know has made these efforts, please encourage them to download and fill out an application for the community service award.  They deserve to be rewarded for their unselfish efforts. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood is Home real estate blog here: http://maplewoodishome.com/2012/03/apply-for-essex-county-high-school-service-award/.

It's almost here!  Restaurant Week 2012 in Maplewood, NJ begins Monday, March 19th and continues through Sunday, March 25th.  At this time each year, Maplewood residents' mouths begin watering at the thought of this most delectable of events.  This year is no exception.  Twenty-five Maplewood restaurants will be offering specials on their edible creations.  Whether you're in the mood for steakhouse staples from Churrasco, a sweet treat from Edo's Cakes, deli favorites from Maplewood Deli and Grille or a bite on the run at 7 Eleven, you'll satisfy any craving and get a great deal in the process. Restaurants participating in this year's Maplewood Restaurant Week include:

• Arturo's Osteria & Pizzeria (180 Maplewood Ave)
• Cactus Charly (6 Highland Pl)
• Churrasco (1844 Springfield Ave)
• Coda Kitchen & Bar (177 Maplewood Ave)
• Da Kitchen (1901 Springfield Ave)
• Dipietro Foods (1701 Springfield Ave)
• East Wok (1878 Springfield Ave)
• Edo's Cakes (1883 Springfield Ave)
• Highland Place (5 Highland Pl)
• HLS (1859 Springfield Ave)
• Hunan Wok (1767 Springfield Ave)
• Maple Leaf Diner (165 Maplewood Ave)
• Maplewood Deli & Grille (149 Maplewood Ave)
• Maplewood Pizzeria & Family Restaurant (489 Valley St)
• O'Reilly's Pub (2208 Millburn Ave)
• Papa John's Pizza (1863 Springfield Ave)
• Park Wood Diner (1958 Springfield Ave)
• Parteaz (1860 Springfield Ave)
• Restaurant Lorena's (168 Maplewood Ave)
• Sona Indian Cuisine (61/2 Highland Pl)
• St. James's Gate (167 Maplewood Ave)
• Verjus Restaurant (1790 Springfield Ave)
• Village Burger (181 Maplewood Ave)
• Village Trattoria (2 Inwood Pl)
• 7 Eleven (1712 Springfield Ave)

Each restaurant has its own specials.  Please feel free to stop in or call and inquire about their offerings to Restaurant Week 2012 in Maplewood, NJ.  This is a great way to sample some of the best cuisine Maplewood has to offer at a discounted price.  Drinks and gratuities are not included in the discounted prices.  So, please tip your wait staff accordingly. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood is Home real estate blog here: http://maplewoodishome.com/2012/03/restaurant-week-2012-in-maplewood-nj/.

The market for home sales has been up for eight of the last nine months! The Spring Market is definitely underway.

As a matter of fact, since the weather has been so cooperative, we actually saw the market begin by January 15th this year. People are not “just looking.” They are coming out here ready, willing and able to be educated quickly and to jump on the first house that they see that suits their needs. Many are first time homebuyers who are fueling the lower end of the market and many are in the price point of under $450K. This is, however, very significant since the vibrancy in the lower end of the market eventually translates into sales increases for the more expensive homes. This is a key element for a healthy real estate market. When first time homebuyers purchase the lower end homes, it allows the people living in them to often move up into their slightly larger one to accommodate a growing family. That is what a normal real estate market is like.

The rise in purchase activity is not a surprise since the housing affordability index is at a record high. We also continue to enjoy record low mortgage rates, modest job increases and an overall rise in consumer confidence. One additional factor not to be overlooked is that the available inventory, at least as of this moment, is lower than where it was last year at this time. This creates some additional demand in the marketplace when a great house comes up that is priced right.

All of this indicates that we will have a very vibrant home selling market in this area of New Jersey during the next few months.

Here are some specific town statistics. The first number is Active Inventory and the second number is the #of properties that have gone under contract since January 1, 2012.

Town	Active Inventory	# of properties under contract since Jan 1
Maplewood	134	34
South Orange	84	28
Millburn/Short Hills	93	33
West Orange	325	52
Montclair	154	35
Livingston	109	27
Summit	99	36
Madison	60	10
Chatham Twp	64	7
Chatham Borough	30	13

One final thought…your property taxes!

You can appeal up until April 1. Give me a call or shoot me an email because I can help you figure out if you are a good candidate.

If you are planning to sell your home and you think your taxes are too high, please file an appeal. If YOU think your property taxes are too high, so will the buyers out there. You want to be able to say that a tax appeal is in process.

Many first time homebuyers focus their efforts primarily on saving money for a downpayment.  They don't realize that there are other expenses involved when purchasing a Maplewood NJ home.  They are then surprised when they are expected to come up with additional money in order to get the home of their dreams.  To avoid any unpleasant and completely unnecessary surprises, here is what you can expect to pay when buying a home: Downpayment - Of course, you will need to come up with some money to show that you are serious about investing in your Maplewood NJ home.  Most financial experts recommend putting at least 20% of the purchase price down on your home loan.  This will help keep your mortgage payments down.  If you are unable to come up with 20%, there are loan programs that will allow you to purchase a home with less.  Talk to your REALTOR® to determine your best course of action. Private Mortgage Insurance (PMI) - If you have to borrow more than 80% of the purchase price of your Maplewood NJ home (you put less than 20% down), you have to pay a mandatory PMI premium every year until your principal is less than 80% of the value of the home.  Loan companies require borrowers to pay for this insurance under these circumstances to protect themselves in case you default on your loan. Property Taxes - These vary depending on where you live and the value of your property.  Check with the local tax assessor's office to see what you can expect to pay. Homeowners' Insurance - This is another requirement by the loan companies for anyone borrowing money on a Maplewood home until they either sell it or pay their loan off.  Think of it in the same vein as when you buy a car.  If you borrow money to pay for the car, you have to have car insurance on it until the loan is paid off.  The same goes for a home loan.  Closing Costs, Inspections and Other Fees - While some sellers offer to pay closing costs as an incentive for buyers to purchase their Maplewood home, this is not typical.  Closing costs consist of the fees involved in handling the paperwork, recording the title and document fees amongst other miscellaneous fees.  These costs typically run around 2-4% of the home's sales price.  You are legally entitled to a Good Faith Estimate before the close of escrow that will give you a detailed list of everything involved in the closing costs.  Go over this thoroughly and make sure to ask your REALTOR® if you have any questions.  Also, the buyer is usually held accountable for payment of a home inspection and appraisal.  These typically cost a few hundred dollars. Don't be caught offguard by unexpected expenses at the end of your real estate transaction.  Know what to expect to pay when buying a Maplewood home so you can be prepared well ahead of time.  Let me know when you're interested in looking for your dream home in the Maplewood area. Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood NJ real estate blog here: http://maplewoodishome.com/2012/02/what-to-expect-to-pay-when-buying-a-home/.

When selling a Maplewood home, you want to make sure that the stage is set for the best impression possible on potential buyers.  Everyone remembers to declutter, clean, make necessary repairs and rearrange furniture to help open up all the rooms in your home.  There is one area of the house that tends to be overlooked when it comes time to home staging, however.  Don't forget the closet! Most homebuyers are NOT timid when they look through a Maplewood home.  They open cabinets, drawers, oven doors, pantries and closets.  Think about when you were looking at your home before you bought it.  Next to the size of the master bedroom, the size and configuration of the closet can be considered an asset or liability in a home sale.  Walk-in closets especially could do with a good staging. The first thing to do when staging your closet is to get rid of all the excess.  If you haven't worn it in the last 12 months, you probably never will again.  There are three ways to get rid of extra apparel in your Maplewood home: give away, garage/yard sale and donation.  Give your extra shoes and clothes to friends and families who might be able to use it.  A yard sale could bring in a few bucks that can be put towards creating more storage area in your closet.  Whatever items that are in good condition that are left after the give away and yard sale can be donated to a local charity, such as the Goodwill or Salvation Army.  If it's not good enough to donate, sell or give away, throw it away. Next, organize your closet space.  Put smaller luggage inside larger pieces.  Buy a shoe rack to keep them in order.  Small bins can be used to hold accessories such as hair pins, earrings, bracelets, sunglasses, etc.  Arrange your clothing by type (casual shirts, dress shirts, pants, jeans, etc).  For each type of clothing, group like colors together (reds, yellows, greens, blues, whites, blacks, etc).  Finally, consider installing shelves to increase the storage area.  There never seems to be enough storage in a home, no matter how large it is.  Shelving units make due of space above the clothing racks as well as on the sides of the closet.  If it is within your budget, you may want to install a custom closet organizational system.  Anything that will improve the use of space in the closet can make it more appealing to a Maplewood buyer. These tips can also be used when staging your pantry.  Remember, buyers look at everything when it comes to considering a Maplewood home as their own.  When staging your home to sell, don't forget the closet! Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes Originally posted on my Maplewood NJ real estate blog here: http://maplewoodishome.com/2012/02/seller-tip-dont-forget-the-closet/.

Yes, it's that time of year again...Tax Season! If you're a Maplewood NJ homeowner, you may be able to deduct your PMI (Private Mortgage Insurance) from your taxes at tax time. PMI is the insurance required of buyers by lending institutions when you borrow more than 80% of the sales price (put less than 20% down). This insurance is meant to protect the lender in case you, the borrower, default on your loan. While this is good for loan companies, it can also good for the homeowner since you may be able to deduct your premiums at tax time.

In 2007, the government began to allow deductions for all homeowners in New Jersey and around the country, including those who refinanced their homes that year, to begin deducting the premiums for PMI from their taxes. Originally, it was only meant as a deduction for that year. However, it has continued to be extended up through 2011 premiums. There is no guarantee that it will be allowed on 2012 premiums as of the time of this post. If you did pay PMI last year (2011) and your Maplewood NJ household income is below $100,000 (married filing jointly) or $50,000 (married filing separately), you may be able to deduct all your PMI premiums paid for 2011. If you have prepaid your PMI for future years, you cannot deduct them for the current year's tax filing. If your household income is between $100,000 and $109,000 (married filing jointly) or $54,500 (married filing separately), you may be able to deduct a portion of your PMI premiums for 2011. Any household with an income higher than $109,000 (jointly) or $54,500 (separately) is not eligible for the deduction.

In order to deduct your PMI premiums from your taxes, you will need to submit an itemized return (Schedule A). All qualified PMI premiums should be entered on line 13 of your Schedule A form. Talk to your accountant or tax preparer about this before you submit your 2011 returns. They will be able to answer any and all questions you have. You will also want to discuss your options with your tax adviser because rules for PMI vary with every type of loan.

Being allowed to deduct your PMI at tax time is nice. However, it's even better not to have to pay PMI any longer than you need to. Talk to your mortgage company to find out when you are no longer required to carry PMI on your mortgage loan. You don't want to have to pay any longer than you need to, especially since there is no guarantee that the tax deduction for PMI will continue to be extended.

* This post is meant for information purposes only. I am not a CPA nor a tax specialist.

Francine Lichtman, Real Estate Beyond Four Walls, New Jersey Homes

Originally posted on my Maplewood NJ real estate blog here: http://maplewoodishome.com/2012/02/pmi-deductions-at-tax-time/.

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/.