Hi David, I'm looking for a property just like yours! Could you email me some specifics? We aren't flippers but are looking for a value in the neighborhood that we can fix up ourselves over time. We live in South Orange and I'd be able to come take a look any time! Allisonfclark@gmail.com. Thanks!... more
Low interest rates are enabling people to bid up the value of limited housing stock. It's limited stock because 15-20% of total housing stock is still underwater w mortgages worth more than the house.
have a look here: http://www.bloomberg.com/news/articles/2015-06-12/scariest-u-s-housing-chart-shows-nasty-scar-years-after-bust
It appears that this 15% of housing stock that is underwater, is likely going to remain off the market bc few homeowners want to bite the bullet and take the equity loss on a short sale; and this also means that this 15% of total housing stock may NEVER actually come back on the market at the same or higher level, because existing owners who are underwater, have little free cash avail to spend on upkeep and home improvement... so we're looking at a reduced-supply of housing stock for the next decade. that creates an imbalance in supply/demand, so demand is higher than supply will be for quite some time, particularly in old neighborhoods where there's no room for new stock to come in... hence the location location location mantra. People are bidding up limited stock largely because of location.
So what you are seeing is tight covenant and valuation control at the banks. They use forward interest rate curves in their analysis of valuation. This means that while the valuations at t=o present moment are exactly what you're willing to offer, the valuation is done to protect you (and mostly the bank), by factoring in what the settling valuation of the house will be later... It is very likely that the valuation assessment for housing will drop 8-15% over the next 6yrs as interest rates come up, and tha bank can do this math very precisely, once they have decided what they think the forward interest rate curve forecast is. So if you're buying a house and not planning on living in it for 10yrs or longer that will give inflation a chance to bring your home value back above what you're bidding on the house today, then be VERY careful about bidding too far above the bank's appraisal valuation. If the appraisal of the house comes back lower than you want and you are challenged by the bank to put up more equity to close the gap difference between their appraisal value and what you bid for the house, the answer to this is to challenge the appraisor on the interest rate forecast they used in determining the value of the house. You need to argue "lower for longer", meaning that rates will stay lower for longer than people think, and that they will not race higher in the near term 1-3yrs.
Alternatively, if you want to get a feel for what the appraisor and the bank are thinking. To get a sense of how they arrive at the valuation of your house, imagine how much you could offer if you had to factor your mortgage at 3%-4% higher rates than the current level.... more
You could possibly negotiate a longer rental term beyond 1 year that adjusts the rent higher after year1. So the first year, see if you can pay the rent you can afford, and offer to adjust higher in year 2 and again in year 3 assuming you think you're finances will improve to cover that higher payment down the road. Or, offer a higher deposit as an incentive. Maybe borrow the money from a family member...or share the apartment with someone if you have the space and are comfortable with that. Tom Hinz www.shortsaletosell.com... more
Although most folks always think springtime, in the past few years more homes have gone under contract in June & July in Maplewood/South Orange than any other month!
Check out all homes for sale: http://idx.njmidtowndirectrealestate.com/idx/search/advanced
Amy Paternite/Coldwell Banker Maplewood
The one in the affordability part is just an estimate, or perhaps a national average. Regardless, it would do you well to ignore it unless you can change it in the calculator (it's been a while since I played with that, so I can't remember), especially if you're looking in Maplewood where taxes are especially high.... more
I am going to disagree a bit with my peers - while I caution buyers and sellers that there is no direct straight line relationship between market value and township assessed, I would not dismiss a correlation between the two among comparable properties.
Unwavering Commitment to Service, Unsurpassed Results... more
It is highly recommended that Buyers use the services of a buyer's agent, in fact it doesn't cost the buyer any money to have an expert adviser to help with understanding the value of the home you may want to buy. I am an Accredited Buyer's Representative--ABR designation. You get the most bang for you buck when represented this way as ABR certified agents have extra training that is specifically earmarked to use when working with buyers.
That being said, sometimes you can still end up in a dual agency scenario (your agent works for a broker that is actually responsible for the transaction) even when you have taken the above steps as many of the agencies in the area are corporately owned and by definition, that can ironically make a transaction with two different offices a Dual Agency transaction.
By law, your agent is supposed to supply you with the Consumer Information Statement (CIS) that helps to explain the different types of "agency."
Lastly, you should have an increased chance of preventing this situation if you use a Keller Williams agency as there are each independently owned and operated (as a franchisee).
In the end, you need to be comfortable with the person you chose to represent you as that is what is truly most important and you never know, your agent may have the perfect listing for you!... more
You can appeal with a lawyer or on your own. If you choose a lawyer i can recommend one who is very successful with tax appeals. if you choose to do it yourself, i'd be happy to provide comparable sales for you to use with the town. maplewood has had a revaluation fairly recently so some properties have come up and some have come down. tax appeals need to be filed in the spring. i'd need more specifics to be able to speak to the situation you describe. please contact me and i'd be glad to help and also help you negotiate a better price with the seller agent. 201 600 8141... more
I am finding that would have considered a significant locational issue at one time has turned into a huge selling point in my market place. Buyers are looking for proximity to the train station and Meeker is close to both S. Orange and Mountain Station. If you need more information about the area please feel free to contact me. You can also check out my website for Maplewood and S. Orange homes: www.bestnjtowns.com.... more
Forget owner financing. Owners are not going to want to accept your poor credit scores any more than conventional lenders. Just rent for now, rebuild your credit, and re-enter the market when you are an acceptable risk.... more
I am the HUD consultant mentioned in the derogatory posting and just seeing this today. Along with the contractor, I will make some clarifications and for the respect unlike the homeowners, I will leave their names out. But as you can see they are using an anonymous name.
Very simple this one. The homeowners decided to do work on the house simultaneously with the contractors work under way. The homeowner did work that required permits from the reviewing authority that they did not get under the advice of a relative. This held up the contractor for more than what was allocated for the construction duration. When they approached the contractor to do more work and not be paid for it, they got upset and went to the town. Pretty big mistake as they town came to the house and stopped the project because of the unauthorized work the homeowners was doing. Shame on you to have the nerve to post an extremely bogus story here on Trulia and attempt to slander professionals in their field.... more
No they cant move the date without you signing an extension. You can close sooner ,on or before xx/xx/xxx. Addendums have to be signed by both parties changing anything in the contract, Hope this helps.... more