BUYERS BEWARE BIDDING WARS ARE HERE

People in general think that houses are selling at 80% of asking price. Trust me this could be no further from the truth. If a home has offers at 80% it is priced wrong. The buyer probably won't come up and the seller won't come down. The fact is homes might be selling at 80% of the marketing value in 2006 or 2007....but homes are selling usually higher than 95% of asking. This is because sellers are recognizing we are not in a 2007 market and have begun to price there homes correctly. In fact, I have been in 6 bidding wars this year alone. All went for above asking. If a home is competitively priced it will pull buyers in. My advice to sellers is look at your competition in your market and what went under contract quickly. Price your home at this level to generate significant interest instead of a slow grinding battle of price reduction after price reduction. My advice to buyers is to trust your realtor in the local area when placing bids. Don't look at house that are not priced right...chances are the seller won't move on price and chances are you will not offer the price they want so you will just be spinning your wheels. If you like a home don't try to be too cute in your offer either, you could lose if there is a bidding war. Trust me it only takes a buyer one time to lose a home until they realize that.... After all 10k on a 500k home is 2%. Happy buying and selling.

Morris County Stats

Ok so I have done some digging on the numbers in Morris County of the GSMLS from November 2010 to November 2012. Here is what I found. There was about 4000 sales in the area. There ehere about 50k listings and the average days on market or DOM was about 92 or three months. Homes that are price well sell at about 94% of asking. So what does this mean? Here are my thoughts and chime in if you have your own... When pricing take emotion out of the game and get it right the first time or you will chase the market. Pricing it right will also move your house in less than 92 days. If you do not want the hassle of keeping your home staged for three months or longer price as well as a good marketing plan will accomplish this. The average list price in Morris County is around 590k and the average list price when a home goes under contract is 480k which tells us that a big chunk of homes on the market are over priced. If you would like more details on stats by township I have them and you can contact me and I will share more specifics if you like.

Happy New Year! While you're getting back to business in finding a new home or selling, realtors across the country are putting together their 2012 sales plans.  I think if I could somehow magically see them all and do an analysis, my feeling is that this year will be better than last. Will it be much better? I think the answer will lay in mortgage rates. I am no money market expert but, if we see rates rise consistently for six months, we could see a buying frenzy. If rates don't move, buyers will wait for more price improvements. A good sign I have seen in the last few months is that short sales are not as good deals as they use to be. And frankly, they are more stress for the buyer in the end. My plan this year is modest, but yet better than last year. I plan a big increase in market spending in the Internet and to blog more and give advice. So here it goes. For sellers, I would give this advice. Price it right it will sell. Price it wrong and wait long. To Buyers, I would give this advice, prices and rates are low but the closing process is more complex than before. Be ready for the unexpected and you will get connected.

3 signs it's time to buy before the rush

1) The National Association of Realtors (NAR) recently released their 2011 3rd quarter housing report. In the report they showed sales of single family homes, condos, and co-ops increased in every state compared to 3rd quarter of last year,  more specifically, New Jersey was up over 13%.. Full data at http://www.realtor.org/research/research/metroprice

2) Consumer confidence was published today and was better than expected and was up significantly versus a month ago. In fact, it rose the most since 2003. Check out full story at http://www.bloomberg.com/news/2011-11-29/u-s-consumer-confidence-rises-by-most-since-april-03-amid-holiday-season.html

3) Interest rates remain at very competitive rates at close to or at their 52 week lows, these historic lows will not continue into the spring buying season. http://www.mortgagenewsdaily.com/mortgage_rates/

I think it is time to buy. I would also agree that now it is time to list if the property is priced right.

Did you know that most renters do not know they are eligible to buy. Many people think that lenders will not lend to them due to lack of cash to put down. This is simply not the truth. What is important is a good to above average credit score...and about 4% to qualify. This should put you up for an FHA loan.

Another fact renters who think they cannot buy are missing is that in (New Jersey at least) it is taxes and interest rate that will probably affect your monthly payment the most. Thus, given that interest rates are low, if you can find a place where the taxes are acceptable to your budget you should be in business.  Please do not use sites like Zillow as a tax gospel...time and time again sites like these are not always current. Talk to a realtor they can easily provide you that information for free.

With all that talk about moving renters to buyers I will say this. If you have a home and looking for some additional income you might want to consider buying a rental property if you have equity. I think the returns right now are great on residential rental investments. The only concern here is when will the tides turn and bring these renters to buyers.

What will it take to bring buyers out

For the first time in a long time, housing figures are coming in better than expected. The National Association of Home Builders' sentiment index jumped three points this month to 20, its highest reading in over a year. Last week, the Commerce Department said building permits and construction of single-family homes rose in October. The Federal Reserve's fourth-quarter loan survey showed a pickup in demand for mortgage loans.

Hmmm.....low interest rates, low prices, improved housing starts.... Something is a miss. Is there just too much inventory? Is credit too tough right now? The answer is simple...who cares.  If your buying and holding for up to 5 years. Hands down every time I can show that owning is better than renting or just putting your money under your pillow. My biggest worry is as soon as interest jump a little, there will be a mass entrance to the market...the only problem is, I can't predict when that will be...