Archive for August, 2010

Why Houses Aren’t Selling.

Despite what you see in the national media, houses in our market ARE selling. Seriously! I know of 2 local homes that went under contract last week at or above list price. Bother were on the market less than 3 days. And get this…one of them was not being actively shown because the homeowner was in the hospital. The offers were made sight unseen!!

In The Market, Out Of The Market, And No Man’s Land

Today’s housing market is fundamentally no different than any other. It’s just that there are fewer houses now that are truly “in the market”…meaning that buyers are seriously considering buying them. It’s all about a home’s price and condition.

Jap Papasan, best selling real estate author and VP at Keller Williams Realty put this short video together to go over the key issues. As always, Jay nails it. Check it out…

For information on how to properly price your home, contact Hal Benz -Westfield NJ’s Home Sale & Short Sale Specialist. 908-216-4836

Tags: Home Sales, Jay Papasan, marketing

Building Permits Part 2: The High Cost Of Doing It Wrong

In Part 1 of “Building Permits”, we reviewed when you might and might not need a building permit for a home improvement project. We learned that failing to obtain the proper building permits can complicate a real estate deal down the line, and can potentially cost the seller a lot of money. But who should be responsible for pulling the permit? And when you’re buying or selling a home, who should check?

Whoever Pulls The Building Permit Takes Responsibility

In most of the country, a homeowner can legally do most home improvement projects on their own (check in your local area). According to Jan Burchett, Executive Director of the National Association of the Remodeling Industry, it’s a good idea to have your contractor pull the building permit. While you might need to pay a little more for their time to do this, it’s worth it. “In most jurisdictions” says Burchette “the person obtaining the permit is considered to be the contractor and therefore the one liable if the work does not comply with building code.”  

Translation: If the job was done wrong, the homeowner will  be held responsible for correcting the problem…NOT the contractor! How many homeowners are prepared to take this on?

And here’s something I bet you didn’t know: If a home renovation project is done without the required building permits, you may inadvertantly VOID coverage for claims under your homeowner’s insurance policy. This issue alone makes the cost of the permit look more appealing, don’ you think?

So when you’re buying a home, how can you tell if the proper permits are in place?

One way to check this out is to review the Seller’s Disclosure Form. It asks whether the proper permits were obtained for a variety of jobs. If the homeowner answers “no”, then be careful. I’m NOT suggesting that the workmanship will always be poor and there is a safety risk.  But I AM saying is that without having an inspector come and check it out, you won’t know for sure. And we already know how complicated and costly that can be!

Another way is to check the home’s Property Card. The local building department maintains a record of permits obtained on every property in town. It is often referred to the “property card” for the home.

One of the most important tasks that a real estate agent can provide (and unfortunately, one that most fail to do) is to get a copy of it for their client. It’s a public record, and is available to anyone. (Here is a copy of a property card that I pulled for a buyer client last week. The identifying information was blacked out, since this is still an active contract)

By reviewing this card, you’ll see which jobs had permits pulled, and which ones didn’t. I can’t tell you how many times I find finished basements or additional bathrooms in a home that the town has no record of. Not only does this raise a safety concern, it also means that when the town catches on, the assessed value of the home could increase…sometimes significantly. And that means the property taxes will too!!

You should also find out if all open permits are CLOSED. I once represented a buyer in a sale where the contractor got all the permits, but never had the inspector come out to sign off that the job was finished.  The job was a large addition, and when the homeowner found out that the permits were still open (10 year later) the builder was out of business!! In the end, the homeowner had to escrow $60,000 at closing until everything could be resolved. What a mess!!

So to me, the takeaway here is simple: Don’t do a home renovation project without getting the required permits. And if they’re not in place, take care of the issue BEFORE the house goes on the market. Believe me, you’ll be glad you did!!

Tags: building permit, Home Improvements, property card

Building Permits Part 1: What To Know When Buying Or Selling A Home

Building permits are one of the most overlooked parts of many home improvement projects. Why? Because many homeowners don’t know when they’re needed, and some contractors don’t want to deal with them.  But when it comes time to buy or sell a home, the issue WILL come up. And when it does, hang on. It can be a rocky (and expensive) ride!!

When And Why Are Building Permits Needed?

Building permits are required to ensure that construction is safe and meets standard building code. But the problem is that there is never a single code that needs to be met. There are often national, regional and even local codes…which makes sense. Buildings in an earthquake prone region would have different requirements than those that are not, right? But the inspection process can slow things down. Towns often have a limited number of inspectors to do handle the workload. This causes contractors to slow down, which drives costs up. Sometimes, a shady contractor will offer a “discount price” if the homeowner agrees to do the job without permits. (This is a major red flag. RUN…don’t walk…to a more reputable professional).

For the “do-it-yourself crowd”, the best advice is to call your local building office before starting any job you’re not sure about. You probably need a permit if you plan to do something major like:

• Change the footprint of your home,
• Move a load bearing wall,
• Change the roof line,
• Add electrical wiring,
• Open the wall to add a door or window,
• Add or move a fixture that requires venting to the outside – like a sink, toilet or gas burning appliance.

You probably don’t need a permit if you’re doing something small like:

• Replace a faucet,
• Replace floor covering,
• Change countertops,
• Replace doors or windows without altering the structure.

But remember – everything about real estate is local…including the permit process. I needed to get a permit to have a security system installed in my Westfield home. Don’t assume that you know…call the town and find out for sure.

If you are trying to buy or sell a home that has not obtained the required permits for renovation work, expect the transaction to become complicated. Typically, the buyer will want an inspector to come out after the fact, and certify that the work was done properly. This often requires walls to be opened up, and fixtures to be removed. It can be a costly and time consuming process…paid for in most cases by the seller.

A seller can refuse to participate and attempt to sell the home “as-is”. But if the failure to obtain permits was not properly disclosed prior to the negotiation of the contract, the seller should expect the buyer to re-negotiate the price…or terminate the contract. If the buyer decides to walk away, the sellers find themselves in the unenviable position of having to disclose the lack of permits to all future buyers. This is NOT good for your marketing plan!

In Part 2 of this series, I’ll review some of the risks associated with not properly resolving permit issues, as well as a simple way for both buyers and sellers to protect themselves.

Tags: building permit, Home Improvements

Why People Hate Realtors.

Realtors have an image problem. Whether we like it or not, most people dislike us! In fact, a recent Harris Poll shows that Realtors are held in lower regard than farmers, actors, union leaders…pretty much everybody. At best we’re seen as a “necessary evil”. We’re the gatekeeper to the thing that consumers really want…the sale or purchase of their new home.

When I first got into this profession, this fact really bothered me. Within the industry, it’s caused many to call for a “raising of the professional standards bar“. And while that’s a discussion for another day, today I saw yet another example of why this negative attitude about Realtors exists…and probably will for many years to come.  And I blame the big name/ old school brokerage companies.

Selling Your Soul For $50

Last week, I was scheduled to meet the structural and termite inspectors at a home for a current buyer. Unfortunately, the listing agent lost the keys to the place which required the owner to return home (after 1 1/2 hours) to let everyone in. But by that time, one of the inspectors left, which required a return visit at the cost of an additional $50. My client (who arrived 30 minutes early) asked the listing broker to pay the additional $50 for the return visit. He refused.

Keep in mind that this was a BIG NAME broker in our market…a name that would roll off the tongue QUICKLY if I asked you to name a local broker. (In fact, if I gave you the agents last name, most folks in our local market would know it. So I won’t.)

And here’s how our conversation went:

• [Me] The inspector won’t release the report to our client until it is paid for. My client already paid for this inspection, but needs to pay again because we couldn’t get in the first time. He’d like you and your company to cover this so we can move forward.
• [Him] That’s not going to happen. I’m not in the position to approve an expense like this, and I wouldn’t do it anyway. $50 isn’t a big deal…so why is your buyer making it into one?
• [Me] Well it’s an additional $50 that he needs to spend because you lost your sellers keys. And your client wants to close quickly, so who can approve this?
• [Him] Nobody. It’s just not going to happen!
• [Me] Wow…OK. I guess you can run your business whatever way you want. But sometimes, you just need to do the right thing. Never mind…I’ll take care of it.

So I called the inspection company, gave them my credit card, and got a copy of the inspection report within 15 minutes. Problem solved.

When The Broker’s Need Comes First

So why would I write this post? I’m not going to name the other agent or company, and I’m certainly not looking for someone to give me a cookie for doing the right thing. It was only $50…hardly a “game changer”. But that’s the point!

The real estate industry is full of disempowered agents…sent by their brokers to represent them…until they make a mistake. Then, they’re suddenly “unauthorized” to make things right for their clients…especially if it costs the broker money.  And I think that’s just the way some of the big companies like it!

Believe me…I know this first-hand. I spend nearly 4 years managing for one of the big name/ old school brokers. I remember getting calls from agents at the closing table looking to authorize what seemed like a legitimate expense so that some sticking point could be resolved and everyone could go home. After being chastised one day for authorizing just such an expense, I remember being told ”the buyers and sellers have too much at stake to let their deal die for $X. Don’t let your agents give in. Don’t let them back down.” Wow… Really??

And so “we’re not authorized to approve this expense” became the mantra in the office. In fact, it’s still the mantra in most offices in most of the big name companies. I deal with it day after day after day.

It’s one of the reasons I left managing for the big name, and joined my current company. My current company ”authorizes me make my own decisions”…and trusts me to do the right thing. My current company believes that when I do the right thing for my client, I’m doing right by their brand name. What a concept!

But what worries me most for our industry is that the big, old school brands will continue to send their “unauthorized agents” out to do their bidding. They will continue to coach their agents to not back down, and not give in…even when they screw up. The perception of Realtors will continue to rank at the bottom of the public opinion polls.

And life will continue to be that much harder for the rest of us.

Tags: Harris Poll, Public Perception, Realtors

Westfield NJ Homes: How To Choose A Realtor.

 

Westfield NJ Homes have long been sought after by local home buyers. By offering beautiful parks & neighborhoods, high quality schools, an award winning downtown and a wonderful quality of life, the Westfield housing market has remained among the area’s strongest in the midst of our current housing downturn.

 

With so much to offer, you might think it wouldn’t matter which Realtor was chosen by those selling their Westfield NJ homes. And you’d be wrong.   Keller Williams…a relative newcomer to the Westfield NJ’s housing scene… leads the pack when it comes to delivering the best outcomes to Westfield NJ home sellers.

 

Picking The Best When Selling Your Westfield NJ Home.

How does anyone become “the best” at anything? I’ve always believed it had to do with results. But how do homeowners decide which Realtor to use when selling their Westfield NJ homes? Usually, they go with familiar names or recommendations from a friend. They often go to the web to check out the presence that their agent has online. And sometimes, they pick up the local paper to see who is advertising the most listings.

 

But surprisingly, most homeowners do very little real research about the agent or the company that they choose to represent them. In fact, studies conducted by the NJ Association of Realtors show that a full 2/3 of home sellers interview only ONE Realtor for the job!

 

The agents and companies with the strongest name recognition love that!

 

But what does the research show about the agents and companies serving the Westfield NJ market? I have long believed that there are 2 key indicators to look for in choosing a Realtor: 1) Who gets the home sold for the highest percentage of the original asking price, and 2) Who gets the home sold the fastest.

 

So I decided to run a little search in the MLS.

 

I compared Keller Williams (whose Westfield Team is currently working out of their Summit office until they secure office space here in Westfield) with some well known local real estate companies. I looked at ALL SALES reported in the first half of 2010 by these offices in the MLS…not just those taking place in Westfield. After all…these agents do business in lots of great towns. By expanding the study in this way, you’ll get a better picture of how successful these agents and offices are in a wide range of markets.

 

Included in the study were Coldwell Banker (both CB East and CB West, both in Westfield), Weichert – Westfield, RE/MAX – Westfield, Prudential NJ Properties – Westfield, Century-21 Taylor & Love – Westfield, ERA Meeker- Cranford, and Keller Williams- Summit/Westfield.

 

So what does the study show?

 

Keller Williams delivers the HIGHEST sale price /original list price ratio of any major player in the Westfield NJ home selling market. Keller Williams also has among the LOWEST days on market for their listings of any major player in the Westfield NJ home selling market.

(This data represents ALL transactions posted through the Garden State Multiple Listing Service in Union, Morris, Essex, Middlesex, Somerset and Hunterdon Counties for the target offices. Transactions took place between January 1, 2010 – June 30, 2010. All information is deemed reliable, but is not guaranteed by GSMLS.)

 

Being able to consistently deliver outcomes like these for my clients is one of the reasons that I joined Keller Williams (after leaving a management position for one of the other real estate brands in this study). And delivering outcomes like these are helping to make Keller Williams the fastest growing real estate company in America!

 

Here’s a few more things I bet you didn’t know:

• In 2009, Keller Williams surpassed RE/MAX to become the 3rd largest real estate company in the country.
• In 2010, Keller Williams won the prestigious JD Power and Associates Award for Buyer Satisfaction…for the THIRD year in a row!
• Locally, the Keller Williams Summit office (which currently includes my Westfield team) has done over $1 BILLION dollars in volume since it opened in 2005. So far in 2010, we are the #3 office for total sales volume in the Garden Sate MLS (out of about 2000 offices)!

So the next time you or someone you know needs to sell your Westfield NJ home, I encourage you to give me a call. Let me show you how we do things differently from the other real estate names you know so well. And experience for yourself what I call the Keller Williams Difference!

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” – Mark Twain

 

Tags: Home Sales, Keller Williams, Westfield

Mountainside NJ Home Sales – July 2010

Mountainside NJ Home Sales - July 2010

(The following data is provided by the Garden State Multiple Listing Service, LLC. It is deemed to be reliable, but is not guaranteed.)

• Average List Price For Active Listings     =     $766,674
• Number of New Listings Entering Market     =     8
• Number of Listings Placed Under Contract     =     11
• Absorption Rate     =     6  Months
• Number of Sales Closed During Month     =     6
  • Average Original List Price     =     $705,583
  • Average Sale Price     =     $681,667
  • Average OLP/SP Ratio     =     96.61%
  • Average Days on Market     =     42

The Following Is The List of Sold Homes Sorted by Closing Date

Street#	Street	Town	OLP	SP	CD	DOM
339	ROLLING ROCK RD*	Mountainside Boro*	$989,000	$960,000	7/1/2010	18
329	LINDA DR*	Mountainside Boro*	$699,900	$690,000	7/9/2010	38
1501	FORCE DR*	Mountainside Boro*	$469,900	$460,000	7/10/2010	49
267	OLD TOTE RD*	Mountainside Boro*	$559,800	$510,000	7/22/2010	89
254	HICKORY LN*	Mountainside Boro*	$715,000	$695,000	7/23/2010	34
1437	WHIPPOORWILL WAY	Mountainside Boro*	$799,900	$775,000	7/27/2010	23

For additional information on these or any other homes sold in Mountainside, contact Hal Benz - Mountainside NJ’s Home Sale & Short Sale Specialist. 908-216-4836

Tags: Home Sales, market report

Springfield NJ Home Sales – July 2010

Springfield NJ Home Sales - July 2010

(The following data is provided by the Garden State Multiple Listing Service, LLC. It is deemed to be reliable, but is not guaranteed.)

• Average List Price For Active Listings     =     $454,931
• Number of New Listings Entering Market     =     20
• Number of Listings Placed Under Contract     =     14
• Absorption Rate     =     7.43 Months
• Number of Sales Closed During Month     =     11
  • Average Original List Price     =     $378,418
  • Average Sale Price     =     $355,364
  • Average OLP/SP Ratio     =     93.91%
  • Average Days on Market     =     60

The Following Is The List of Sold Homes Sorted by Closing Date

Street#	Street	Town	OLP	SP	CLOSED	DOM
14	PITT RD*	Springfield Twp.*	$259,900	$250,000	7/2/2010	29
92B	TROY DR BLDG 16*	Springfield Twp.	$229,000	$214,000	7/6/2010	68
6	CLEARVIEW Road	Springfield Twp.*	$749,000	$737,000	7/6/2010	22
67	TOOKER AVE*	Springfield Twp.*	$340,000	$349,000	7/7/2010	149
26	CAMBRIDGE TER*	Springfield Twp.*	$287,900	$225,000	7/16/2010	29
13	COTTLER AVE*	Springfield Twp.*	$419,900	$388,000	7/16/2010	77
40	DIVEN ST*	Springfield Twp.*	$469,000	$440,000	7/19/2010	50
87A	TROY DR	Springfield Twp.*	$219,000	$185,000	7/20/2010	95
23	ARCHBRIDGE LN*	Springfield Twp.*	$494,900	$475,000	7/26/2010	18
80B	TROY DR BLDG 17*	Springfield Twp.*	$219,000	$180,000	7/29/2010	99
52	COLFAX RD*	Springfield Twp.*	$475,000	$466,000	7/30/2010	20

For additional information on these or any other homes sold in Springfield, contact Hal Benz -Springfield NJ’s Home Sale & Short Sale Specialist. 908-216-4836

Tags: Home Sales, market report

Roselle Park NJ Home Sales – July 2010

Roselle Park NJ Home Sales - July 2010

(The following data is provided by the Garden State Multiple Listing Service, LLC. It is deemed to be reliable, but is not guaranteed.)

• Average List Price For Active Listings     =     $279,976
• Number of New Listings Entering Market     =     17
• Number of Listings Placed Under Contract     =     7
• Absorption Rate     =     14.86 Months
• Number of Sales Closed During Month     =     4
  • Average Original List Price     =     $327,200
  • Average Sale Price     =     $287,500
  • Average OLP/SP Ratio     =     87.87%
  • Average Days on Market     =     102

The Following Is The List of Sold Homes Sorted by Closing Date

Street#	Street	Town	OLP	SP	CLOSED	DOM
533	ASHWOOD AVE*	Roselle Park Boro*	$450,000	$430,000	7/2/2010	23
160	E LINCOLN AVE*	Roselle Park Boro*	$289,000	$250,000	7/9/2010	128
122	HAWTHORNE ST*	Roselle Park Boro*	$209,900	$135,000	7/12/2010	181
318	E WEBSTER AVE*	Roselle Park Boro	$359,900	$335,000	7/14/2010	74

For additional information on these or any other homes sold in Roselle Park, contact Hal Benz -Roselle Park NJ’s Home Sale & Short Sale Specialist. 908-216-4836

Tags: Home Sales, market report

Kenilworth NJ Home Sales – July 2010

Kenilworth NJ Home Sales - July 2010

(The following data is provided by the Garden State Multiple Listing Service, LLC. It is deemed to be reliable, but is not guaranteed.)

• Average List Price For Active Listings     =     $407,065
• Number of New Listings Entering Market     =     8
• Number of Listings Placed Under Contract     =     5
• Absorption Rate     =     7  Months
• Number of Sales Closed During Month     =     4
  • Average Original List Price     =     $339,350
  • Average Sale Price     =     $287,500
  • Average OLP/SP Ratio     =     84.72%
  • Average Days on Market     =     158

The Following Is The List of Sold Homes Sorted by Closing Date

Street#	Street	Town	OLP	SP	CLOSED	DOM
741	UNION AVE*	Kenilworth Boro*	$254,400	$230,000	7/12/2010	59
152	S 23RD ST*	Kenilworth Boro*	$369,000	$275,000	7/13/2010	222
356	Coolidge Drive	Kenilworth Boro	$335,000	$265,000	7/27/2010	283
616	CRANFORD AVE*	Kenilworth Boro*	$399,000	$380,000	7/29/2010	67

For additional information on these or any other homes sold in Kenilworth, contact Hal Benz - Kenilworth NJ’s Home Sale & Short Sale Specialist. 908-216-4836

Tags: Home Sales, market report

Clark NJ Home Sales – July 2010

Clark NJ Home Sales - July 2010

(The following data is provided by the Garden State Multiple Listing Service, LLC. It is deemed to be reliable, but is not guaranteed.)

• Average List Price For Active Listings     =     $459,046
• Number of New Listings Entering Market     =     29
• Number of Listings Placed Under Contract     =     10
• Absorption Rate     =     10.8  Months
• Number of Sales Closed During Month     =     5
  • Average Original List Price     =     $442.300
  • Average Sale Price     =     $411,800
  • Average OLP/SP Ratio     =     93.10%
  • Average Days on Market     =     54

The Following Is The List of Sold Homes Sorted by Closing Date

Street#	Street	Town	OLP	SP	CLOSED	DOM
44	AMELIA DR*	Clark Twp.*	$549,000.00	$522,000.00	7/9/2010	54
61	PRESCOTT TURN*	Clark Twp.*	$458,500.00	$427,000.00	7/15/2010	27
106	SWEET BRIAR DR*	Clark Twp.*	$195,000.00	$180,000.00	7/27/2010	88
536	OAK RIDGE RD*	Clark Twp.*	$579,000.00	$530,000.00	7/27/2010	52
63	MALVERN DR*	Clark Twp.*	$430,000.00	$400,000.00	7/29/2010	51

For additional information on these or any other homes sold in Clark, contact Hal Benz - Clark NJ’s Home Sale & Short Sale Specialist. 908-216-4836

Tags: Home Sales, market report