When you think about it, what could be more obvious than realtors joining hands with an organization like Bridges for a clothing drive?!Bridges, a local non-profit organization founded in 1988 by suburbanites Geoff and Ginger Worden and based in Summit, NJ, supplies food, clothing and toiletries to the homeless taking shelter under the bridges of New York City, Newark and Irvington.   Home buyers and sellers alike are frantically looking to clear out their closets before moving, so what more logical service could we offer them than a place to drop their gently used but unwanted belongings and know that they will be safely delivered into the hands of the homeless in our area.  Bridges provides the vehicle for pick-up and delivery from our storage space at Claremont Corporate Center to their facility for sorting and then on to the homeless who can use the donations. If you would like to make a clothing donation to Bridges you can schedule your drop of with CRG by calling (908)343-2122. Clothing should be contained in a black garbage bag and labeled “BRIDGES”.  Please bring all donations during normal business hours to Claremont Realty Group’s office on the first floor of the Claremont Corporate Center at 535 Springfield Avenue and we will store in our basement for the next scheduled pick up/delivery.

Real estate has long been a good investment.  Wise investors have been including it in their portfolios for generations.  The recent changes in the market may have made investing in real estate work a little differently but that doesn’t mean it isn’t working.  Many investors are using the current climate to acquire even more real estate.  Your Summit NJ real estate agent can give you more details on how investing in real estate can benefit you.

There are at least two different strategies for investing in real estate and the market usually decides which is more profitable at any given time.  One strategy is short-term and the other is long or medium-term.  Each has benefits and draw-backs.

Short-term real estate investment, also called “flipping”, was very popular when prices were at their peak.  It was popularized on television and praised in the press.  In this strategy, one buys a low-priced property then makes improvements quickly and resells.  The timeline must be very short to avoid paying out more in mortgage payments and construction than can be made in profit.  Typically, the turn-around between buying and selling is between a few months and a year.  Some properties can take up to two years to complete and resell and still be considered short-term investments.

Flipping makes a good strategy when the initial buying price is quite low and there is a good market for the end result.  Construction cost cannot be allowed to exceed the budget or they can eat away any potential profit.  In any market where inventory is high, flipping is a risky investment.  When inventory is low, it can yield an excellent payoff.

Medium-term or long-term investing is a “buy and hold” strategy.  Long-term investors may own rental properties or vacation homes.  A primary residence can be called a long-term investment as well.  Usually, at least 5 years is required to cover enough of the expenses to make reselling a profitable endeavor.

Making money from a long-term investment requires patience.  You may have to wait through a few bad years before finding the best market conditions for selling.  However, during that time most investors are able to enjoy the property themselves, whether it is vacation property or a private home.  The biggest risk in long-term investing is in choosing a property that will appreciate in value over time.

Investing in real estate may still be a good idea, but it’s not a strategy to be taken on without help.  An experienced Summit NJ real estate agent can guide you to the investment that’s right for you.

Painting with A Purpose

When it comes time to sell your home, painting is among the first tasks your Summit NJ real estate agent will ask you to take on.  A fresh coat of paint can make a home look new and clean and much more attractive to buyers.  But not every kind of paint will be up to the task of helping you sell your home.

Decorating vs. Staging

When your home is listed for sale, it’s time to arrange it to appeal to the widest pool of buyers that you possibly can.  That’s called staging.  It’s different from decorating and many sellers fail to see the distinction.

Decorating makes your home reflect yourself, your family, your tastes.  It’s about highlighting all the people and things you love the most.  This is where you use your favorite colors and textures to express your personality.

Staging is very different.  Staging seeks to remove the personal touches and presence of the home owners in order for the buyer to imagine himself in the space.  You may have to relinquish your favorite colors and go with subtle neutrals when selling your home.

Color Theory

Your choice of colors will influence how buyers feel in your home.  You want them to feel at home and at ease.  Neutrals are the best choice for staging but you need not limit your palette to shades of beige.  A little bit of color theory can help you choose paints to accomplish this goal.

Soft blues are soothing and cool, great for bedrooms.  Warm colors like tan are friendly and homey.  They work well in public areas like the living and family rooms.  Light greens are fresh and reflect lots of light.  The can brighten a dark room and make it seem larger, which is ideal for a small bathroom.  A light yellow, the color of fresh butter, can have the same effect.  Ask your Summit NJ real estate agent what colors resonate with buyers in your area.

Finishing Touches

Once you picked paints and applied them to your walls with care, don’t forget to finish the job well.  Baseboards and trim, crown molding and doors must all get a fresh coat as well.  A crisp white or soft cream sets off most neutrals well and won’t be distracting to buyers.  Use blue painter’s tape to achieve a clean line if you don’t have a steady brush hand.

It may be hard to cover your favorite colors with less distinctive shade, but it’s all for a good purpose.  The more appealing the home, the faster it will sell.

Newlyweds

Many couples think that getting married and starting a new life together must be accomplished in a new home.  Other would say that the changes wrought by a new marriage are tumultuous enough.  Why add the strain of first house hunting and then a mortgage payment to the mix?  But the dream of home ownership does not die easily.  It sends many engaged couples and newlyweds to the office of their Summit NJ real estate agent every month.  Here is some advice and encouragement for prospective buyers embarking on their new life together.

Save Up

In simplest terms, the more you can pay up front for a home the lower your fixed monthly payments will be.  If you’ve saved up a hefty down payment, you‘ll have a lower monthly mortgage payment.  A large enough down payment, 20% or more of the purchase price, might even save you cost of mortgage insurance.

You’ll need to save for other reasons, too.  You’re not only saving for the down payment, you’re saving for your own protection.  If one of you loses your job, become sick or injured or the house needs a sudden repair you’ll need solvent funds to take care of the bills.  About 3 months of expenses in an accessible account is the amount advised by most financial counselors.  That’s what your need to have after you’ve paid the down payment.

Budget

Saving like that requires some solid budgeting.  Ask your Summit NJ real estate agent what you can expect to pay in insurance, utilities, taxes and the other assorted costs of home ownership.  You’ll have to decide for yourselves if buying a house is within your budget, but your realtor can give you some realistic ideas about the costs.

Be sure to resist the urge to overspend if you do choose to buy.  House-love can strike without warning so be careful what properties you choose to visit.  Being “house-poor” is a hard way to start a marriage.  You’ll want enough wiggle room in your budget for some fun, not just the house payment.

Homework

Buying a house is not as simple as most purchases.  It takes some work and some planning; you don’t just jump in if you’re wise.  You’ll want to do a good bit of research on mortgages, first-time homeowner programs and other issues before you start the house hunt.  Steer clear of dangerous loans, like interest-only and adjustable rates, which sound good on the surface but can get you into big financial trouble.  The buyer must truly beware when shopping for loans.

Your Summit NJ real estate agent is a great source of information.  Ask lots of questions and then decide if you want to start your new life together in a new home.

Buying a Foreclosure

Buying a foreclosed home is not the easiest real estate purchase you can make.  That said, the rewards for enduring the process might be worth the effort required.  There are certainly deals to be found when looking at foreclosure listings.  Most buyers will have lots of questions for their Summit NJ real estate agent when they are considering buying a foreclosed home.

What is a foreclosure?

Foreclosure occurs when a home owner is unable to pay his mortgage.  The lender takes possession of the home and attempts to recoup as much of its losses as possible.  The selling price may be significantly lower than the actual value of the home.

What help will I need?

A Summit NJ real estate agent who is experienced in dealing with foreclosures will be a huge help to you in this process.  You may also need the assistance of a real estate attorney.  This is not a process to take on alone unless you have a great deal of experience in these matters.

Where do I find one?

There are websites and magazines dedicated to foreclosure listings.  Government agencies like Fannie Mae and HUD advertise foreclosure listings on their websites.  An industrious buyer can also look through public records for the notice of default that a lender must file at the county clerk’s office.

What should I do?

Do the leg work on the property.  Tour it yourself and get an inspection.  Don’t rely on old data.  Foreclosures are sold “as is” so be sure you know what you’re buying.  Take the initiative and pay for your own inspection.  Check everything, especially if the property has been unoccupied.  Test the pipes for leaks from freezing, all the electrical outlets and switches and every other little detail.  Make no assumption of good condition.  Have your agent check the comps to see if the property really is the deal you think it is.  Check for liens and taxes against the home and find out what your liability will be for those costs.  Don’t go into this purchase without knowing every detail.

What should I expect?

Expect paperwork, lots of paperwork.  Buying a foreclosed home may take more time than a typical home purchase.  Be prepared for a no-negotiation situation.  The lender is trying to minimize their losses so there will be no concessions and no bargaining.  Be prepared to pay for any and all repairs needed on the property. 

Buying a foreclosure isn’t easy; it takes work.  But if you can find a great deal in a down economy, it will be worth your time and effort.

The Best Laid Plans

Even the best laid plan can go awry.  This homily holds true for real estate transactions and every Summit NJ real estate agent has a few horror stories they could tell.  Truthfully, every once in a while a transaction can encounter serious problems.  More often, though, it’s the avoidable things that plague us.

Inspection Failures

On the selling side, bad inspections are usually the deal-breakers.  A bad report from a home inspector can sour a deal in a heartbeat.  Unless a buyer is specifically looking for a “fixer-upper”, they will want to see a nearly perfect report. 

Big issues like plumbing or structural problems will scare off potential buyers.  Major repairs can be expensive and might mark your home as a fix-up project.  If your home gets tagged with the “fixer” label, you will be hard pressed to get a full-price offer.  Buyers’ agents will advise their clients to make low offers and you will have little room for negotiation. 

If an offer is already on the table, more problems can arise.  The buyer can opt to reopen negotiations or ask for big concessions.  This will probably delay your closing date.  Some buyers may withdraw their offer entirely, leaving you to start the process over again saddled with a blemished report.

As a seller, you can have an inspection done before you list your home in the MLS database and avoid a nasty surprise.  Ask your Summit NJ real estate agent for a referral to an inspector, especially if your home is older.  Find out what needs to be done and invest in the fixes you can afford.  It may delay selling a bit, but it’s better to start with a top quality product.

Approval Failures

If an issue occurs on the buyer’s side of the table, it is usually stems from a mortgage approval issue.  For one reason or another, the buyer doesn’t get approved or doesn’t get the rate that he needed.  This can cripple a purchase.

If financing falls through or never materializes, the seller is not obligated to wait on you.  If you are lucky, the buyer may wait for you.  He may demand more earnest money to secure the promise of purchase.  However, he can also accept another offer and leave you to find another house once you do have your loans in order.

The best way to avoid this disaster is to get preapproved, not prequalified, by your mortgage lender prior to house hunting.   As a seller, you can require proof of preapproval before accepting an offer. 

These are both avoidable issues.  With a little proactive effort, you can help smooth the way to an easy closing.

The NATIONAL ASSOCIATION OF REALTORS® existing home sales data are estimates arising from a sample of Multiple Listing Service (MLS) sales. As time changes, so does the relationship between any sample and the universe the sample is representing.

Click here to download sample of Multiple Listing Service (MLS) sales

Green living is at the forefront of the minds of many these days, even those buying new homes. From trying to decide whether your neighborhood association might allow solar panels to carefully evaluating your carbon footprint, buying Short Hills NJ real estate may mean making a fresh start, ecologically speaking. Luckily, this area is one of the most environmentally responsible in the country.

A recent Summit NJ Recycling Advisory Board Meeting only serves to demonstrate the area’s overall commitment to the cause. Over the course of bi-monthly meetings for the last three years, a myriad of programs have been implemented to help make the area a bit greener. From extensive Earth Day programs to recycling cans sponsored by city merchants to the famed Green Fest events, the board is attempting to change the way Summit and the surrounding areas look at their impact on the earth.

Even the public library is getting in on the act. By hosting energy expert Dr. Phillip Eisner to discuss the “Science of Sustainability,” not only can the community learn more about what’s currently being done, but also what should be done to make certain both new and old residents are continually working to build a better future.

As you select the right Summit NJ real estate to meet your needs, maybe it’s time to think about your carbon footprint as well. What can you do to pitch in?

In the last post, we spent a bit of time discussing how great the area was for local golf, but that barely touches on the benefits of owning Summit NJ real estate. There are so many great things to do here, and perhaps one of the most important involves art. Whether you’re looking to see some of the best pieces in the country, take a class to enrich your own skills, or introduce your children to basic concepts, there are lots of great places to visit.

The Montclair Art Museum should be the first stop on your art tour of the area. Packed with both American and Native American art, this inventive collection offers a number of first-time presentations as well as unique thematic approaches. With a commitment to New Jersey artists, you’ll not only find the creativity you’re searching for, but a measure of local pride as well. The museum offers regular classes for children, local residents, and professionals in the area.

The Visual Arts Center located in Summit, New Jersey, includes three interior galleries and an outdoor exhibition space. Wholly devoted to contemporary work, it has been continually recognized for both its education and exhibition programs.

The Walsh Gallery on the campus of Seton Hall University was initially opened in 1994. With a constantly shifting exhibition area, you’ll find subjects of every shape and size from fine art to historical treatments.

It’s rare to find a home in an area with so much to offer, but from great art to phenomenal communities, choosing the Summit NJ real estate market over any other is an excellent decision.

The federal government recently approved funding for a second commuter rail tunnel under the Hudson River.

Work could begin as early as Fall 2009.  This new tunnel could double the number of trains going through the tunnel at peak hours from 23 to 48 trains per hour.

Transportation official also tout the benefits this project could have by producing 40,000 to 50,000 new jobs in the region by the end of the projected completion in 2017.  Also, eliminating approximately 22,000 car trips per day, cutting down on air pollution and congestion on the roads, bridges and tunnels.   The new tunnel could also result in fewer delays, fewer transfers and above all, an easier daily commute.

New Jersey Executive Director Richard Sarles said, “More than doubling train capacity to and from New York in peak periods translates into time savings, increased service reliability, more travel options and convenience.”

ALL GOOD NEWS TO THE COMMUTERS OF SUMMIT !