Home Buying in 07083>Question Details

Stan Foyson, Home Buyer in Union, NJ

I'm thinking about buying a townhome at the Pointe in Union. There seems to be a lot of units for sale there.

Asked by Stan Foyson, Union, NJ Fri Apr 29, 2011

Is there any particular reason why? Just curious.

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9
If your thinking about it hurry up and get in before July 15, have you been pre-qualified yet, if not check out my website no personal info required. Search rates in seconds
0 votes Thank Flag Link Fri Apr 29, 2011
There are several reason why there a number units available.

1. People have children and need more room

2. People relocate out of the state

3. People lost their job
0 votes Thank Flag Link Fri Apr 29, 2011
Hi Stan,

There are a few possible reasons for the seemingly high inventory of available condos at The Pointe:

1) First of all, anyone who purchased there within the past 6-7 years will likely be taking a loss on their unit. Some may be unable or unwilling to absorb the loss. If they are not able to lower their price to the market level, their unit will remain on the market unsold.

2) Also, there may have been some recent major changes to the maintenance fees and/or some major maintenance issues that have arisen in the past year or so. You should consult with the HOA (they have an office right on the grounds) to get the deails.

3) The financial health of the HOA will be a major factor in determining if The Pointe will re-qualify for FHA Approval in their application for renewal of their FHA approval. You can go to the FHA website to try to learn more about this process. You can also find out more by speaking with the HOA office there at The Pointe. In general, you will find that it can be quite challenging to secure financing on any condo with or without FHA approval.

All of the above issues have created challenges for sellers at The Pointe, likely contributing to the high inventory levels. The good new for you is -- if you can overcome the obstacles, it is indeed a buyer's market there!!

Good Luck
-Donna Clayton
0 votes Thank Flag Link Fri Apr 29, 2011
Thanks for the answers everyone. Nelson, so what does that mean? How do I find out if it will be renewed?
0 votes Thank Flag Link Fri Apr 29, 2011
It's true that their FHA / HUD approved condos but that expires on 7/31/2011
0 votes Thank Flag Link Fri Apr 29, 2011
Stan,
How are you sir? I have a couple of ideas as to why there are a number of units for sale at The Pointe.
In general, I think you should know that there are a lot of homes for sale on the market, not just at The Point. The last time I checked, there were 365 homes for sale of which 31 have gone under contract in the past 30 days, which makes it a strong buyer's market.

Yes interest rates are historically very low and prices at the Point have come down a lot. A number of the home owners selling their homes at the Point may in fact be short sale sellers who purchased their units at higher prices a few years ago and could be experiencing an economic hardship. This could be the reason why they are selling. Some of the Point’s homeowners’ might want to trade up because it is cheaper to do so now. My personal belief is that Condo and Townhouse owners change ownership much faster than single family homes. I don’t want to rely on generalizations too much, but let’s just say for argument sake that if typical person stays in their home for 7, 10, 15 years, a condo/townhouse owner might stay for 3, 5, or 7 years.

There are certainly other reasons why people sell like relocation for work, divorce, marriage, etc.
I do know that the maintenance fees have increased over the past couple of years, which could be another why some of the Point’s homeowners are selling.

Having so many units for sale gives you the flexibility to decide which house would like to buy, which may not be a bad thing.

If you are concerned over the type of financing the unit would qualify for, you should speak to both a local agent, like me or someone else in the forum, and a loan officer, maybe even someone recommended by the agent who assist’s you on your home purchase.

Financing on Condos and Townhouses can be “tricky” for lack of a better word. If you are seeking FHA financing for example, the Community itself will have to meet specific guidelines before an FHA lender will approve your loan. Most lenders will have a condo questionnaire to give to the association to find out if they are in good standing financially and what is the rent to owner occupancy rates.

I have a sample questionnaire I can share with you. If you email or call me, I can respond back with a copy.
If I can be of any other assistance, please let me know.

Cheers and have a great day!

Additional reading if you have the time:
http://njretoday.com/2010/12/short-sale-buyer-know-how/
0 votes Thank Flag Link Fri Apr 29, 2011
Hi Stan,

There are currently 19 or more units for sale. Some of them are short sales BUT they are FHA approved. Unit owners move for different reasons. Location could be one of them, the entrance is from Rt 22 E. Some unit owners need more space or have to move because of job relocation, or cannot afford it any more.
Hope this help.

Best wishes.
0 votes Thank Flag Link Fri Apr 29, 2011
Well it is "gated" community, Beautiful grounds, in ground pool, buss to NYC from the main road and the interest rate are historicly low.

What about you? are you looking to buy or sell? Do you have a need for a Realtor?
0 votes Thank Flag Link Fri Apr 29, 2011
Make sure at least 50% are owned and not rented. Otherwise it's going to be tough to get financing. That could be the reason.
0 votes Thank Flag Link Fri Apr 29, 2011
I recently saw that one unit was for rent, is that typical? I did see the posting here on trulia and wondered if it was legit because I notice a lot of units are for sale, but none are typically being rented. Thanks!
Flag Wed Jun 27, 2012
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