Princeton NJ Real Estate Blog

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Princeton Town Topics – July 6, 2011

MOVING WITH CHILDREN

July and August are America™s biggest home moving months, where as much as 60 percent of this year™s homebuyers will relocate to new and unfamiliar places. Moving can be exciting, but it can also be stressful – especially for your children. So they may need some extra help to work through some issues before they can feel positive about the change.

Don™t wait to tell your children. Make it clear that the move will definitely happen and why, but listen to their concerns. Help them come to terms with saying goodbye to friends and places; get them involved with learning about the new area; and create family time around planning your new life in your new home.

Moving can be a stressful event for everybody involved, but if you give your children the time and support to make the adjustment, it can also be an exciting and happy adventure for everyone. Check out www.moversdirectory.com for more tips on moving with your children.

Whether you™re ready to Plant &

Buy, Bloom & Change or Grow & Sell, Contact Beatrice Bloom first!  

Real Estate Expert in Princeton, NJ

Market Highlights Entering the Second Half by Tim McLaughlin

CoreLogic, a leading provider of information, analytics and business services, released its May Home Price Index (HPI) last week which shows that home prices in the US increased on a month over month basis. According to the CoreLogic HPI, national home prices, including distressed sales, increased by 0.8% in May 2011 compared to April 2011, the second consecutive month over month increase.

 Summertime means barbecues, outdoor fun and lots of sunshine, flowers and greenery. The commonality among all of those rites of summer is that they draw attention to a home™s landscaping and outdoor spaces. Homeowners who are selling their home in the summer months should make an effort to highlight their home™s usable outdoor space.

In addition, sellers with their home on the market during the summer should keep these considerations in mind:

• œStage your backyard so that buyers can envision themselves relaxing and entertaining there. Power wash your deck or patio as well as your outdoor furniture, replace worn-out cushions and make sure to have a few simple outdoor accessories.
• A fully landscaped yard will save buyers time and money. Ensure your front and back yards appear maintained by trimming overgrown trees and shrubs, and making sure your lawn is manicured regularly.
• Inside, keep your home cool for showings and Open Houses. Setting the air conditioner to a comfortable level, or using fans and opening windows to let in a cool breeze, will help buyers focus on your home and not how warm they are.
• Guard against heat-related smells by emptying all garbage cans and fully cleaning your home before any showings, focusing specifically on bathrooms, laundry rooms and kitchens.

Princeton Town Topics – June 29, 2011

TARGET MARKETING  

As soon as the listing agreement is signed, your Realtor will begin the search for a buyer for your home.   This means directing our marketing efforts to target groups of individuals who are likely to be attracted to the amenities offered by your home and neighborhood.  

If your property is near a new office park, your Realtor will look there for prospects who want to live near their work place.   If it is an historic property, the local preservation society may have a publication in which to advertise.   Your Realtor may call or write to the neighbors who may know someone who would be attracted to your home.   Your Realtor may check with other cooperating MLS brokers to see if they have buyers.   When your home is being marketed professionally, your Realtor will do a lot more than just feed the listing into the MLS and place an occasional ad.  

Whether you™re ready to Plant &

Buy, Bloom & Change or Grow & Sell, Contact Beatrice Bloom first!  

Real Estate Expert in Princeton, NJ

Princeton Town Topics – June 22, 2011

IS IT BETTER TO RENT OR BUY?  

For the first time in years, owning a home may be more affordable than renting. Is this a good time for you to finally buy that home you™ve always wanted?

To make the right choice, there are a few issues to consider: Are local rents on the rise? Have home prices dropped to a level where mortgage, taxes and maintenance costs compare with your rent?

If the real estate climate looks good, then you should look at your personal situation. In these economic times, homeownership is a long-term investment. Do you have stable income for the foreseeable future? Do you plan to stay in the area for 7 to 10 years?

Right now is a magical moment where historically low mortgage rates and home prices converge. But this won™t last for long. Interest rates are set to rise significantly later this year and stay that way for a long time. If you are ready to buy, now is the perfect time to take the leap.  

Whether you™re ready to Plant &

Buy, Bloom & Change or Grow & Sell, Contact Beatrice Bloom first!  

Real Estate Expert in Princeton, NJ

Factors Impacting Rates this Week by Tim McLaughlin

Europe/Greece Debt Issues: The US financial markets are extending its high level of volatility as the euro zone debt crisis remains in focus, with growing uncertainty regarding Greece’s ability to avoid a sovereign default. Treasuries and Mortgage Backed Securities are higher throughout the week (prices up/rates down) amid the euro-area debt uneasiness.

The Fed/China: We saw two drivers on Wednesday have a direct impact on the markets from the Fed. First, pre-market open, there were a series of hawkish comments from Fed President Fisher (Dallas), in addition to a Chinese report signaled accelerated inflation, inciting the Peoples Bank of China to raise reserve requirements by 50bps, all of which provided a pre-market pop to Fixed Income. And then in the latter half of the day Fed Chairman Ben Bernanke was on the tape commenting on the US debt ceiling, stating it should not be used as a mechanism to force budget cuts: “Failing to raise the debt ceiling in a timely way would be self-defeating if the objective is to chart a course toward a better fiscal situation for our nation,” the Federal Reserve chairman said in some of his strongest words yet on fiscal policy, a subject on which he is normally cautious. His comments raise the stakes for both sides if they fail to reach a deal to increase the debt limit but are likely to prompt a backlash from Republicans who want spending cuts in return for an increase in the amount the government can borrow.

Whether you™re thinking of buying a home with an in-ground pool or toying with the idea of having one built, there are many important considerations to take into account. In addition to significant installation costs for those building a new pool, all homeowners with a pool will need to be mindful of ongoing maintenance expenses as well as insurance and tax implications.

If a swimming pool is in your future, here are some things to keep in mind:

• Installation costs for a 600-square-foot concrete pool average around $30,000. Less expensive options include fiberglass shells and pools with liners; however, pool liners need to be replaced approximately every 10 years, raising ongoing maintenance costs.
• Other equipment you will need to maintain your pool include an energy-efficient pump, chemical balancing supplies, cleaning, and fees for opening and closing the pool for the season. A rule of thumb is homeowners should budget around $600 annually for maintenance in a seasonal swimming climate and between $15 and $25 per week in a year-round climate.
• Homeowners with a pool should increase the liability portion of their homeowners insurance policy from the standard amount. In addition, many underwriters require you to fence in the pool so that children can™t wander in unsupervised.
• There is no guarantee that adding a pool will add to your home™s selling price. Experts advise keeping building costs between 10 percent and 15 percent of what you paid for the house to help assure you don™t invest too much money that you won™t necessarily recoup on resale.

Random Tidbits for the Past Week  by Tim McLaughlin

Federal Reserve Chairman Ben Bernanke spoke earlier this week, reiterating the previous Fed stance: they are looking for a second half bounce. Bernanke expects growth to “pick-up somewhat in the second half.” The economic recovery, broadly speaking, is continuing at a “moderate pace.”. Looking at inflation, Bernanke reiterated his core position: first, the slack in the US labor market “should continue to have a moderating effect on inflationary pressures.” Second, inflation expectations remain well anchored and “reasonably stable.” It was encouraging words to hear that they anticipate an uptick in 2H11.

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The Fed released its Beige Book Report on Wednesday and the message was relatively upbeat. The report “finds cause for optimism” by one traders account, as the US economy continued to grow this spring despite the hurdles of supply chain shocks, high food and gasoline prices, and severe weather. The report, a summary of economic conditions across the central bank’s 12 regional districts, said the economy “kept expanding” over the prior period. The tone of the release was “much more optimistic than most on the street expected” by one account.

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The interest rate rally continued for the eighth consecutive week, as the slow, steady decline in mortgage interest rates continued. 30 year mortgage rates are in the mid-4% range, 15 year offerings in the high-3™s, and midterm hybrid ARM™s trending down in the low-3% range (and even the high-2% range in some cases). Given the decline, both spring market purchase buyers and opportunistic refinance seeker are capitalizing on the lowest interest rates of the year.

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Things we are watching for to see if this interest rate rally sustains/holds into 2H11: What happens when the Fed Bond Purchase program ends on June 30th? The turmoil in Europe (Will Greece “go under”? Will Germany look to break up the EU?), and the global macro-economic impact that will have. What does next weeks inflation data tell?

Princeton Town Topics – June 14, 2011

WHAT DO BUYERS WANT?

This year™s buyer is price conscious and highly discriminating. According to surveys conducted by Coldwell Banker and Avid Ratings Co., affordability is the first priority for today™s homebuyer. So sellers should be careful to price their homes competitively from the beginning. The other top requirement is move-in readiness. A home that needs even minor repairs will be more difficult to sell. So sellers should have all the necessary repairs and cosmetic improvements completed before listing.

Features that rank at the top of this year™s wish lists are modern kitchens, energy efficient upgrades, a home office, a main floor master suite, an outdoor living room, extra storage and easy access to community walking areas. While you can™t control some of these things, if your home does have any of these details, you should highlight them in your marketing.

Every neighborhood and individual buyer is unique, so be sure to ask your REALTOR ® for a list of the most popular œmust-haves for buyers in your area.

Whether you™re ready to Plant &

Buy, Bloom & Change or Grow & Sell, Contact Beatrice Bloom first!  

Real Estate Expert in Princeton, NJ