These days, finding a really good mortgage seems like a daunting process.  With all the negative press surrounding the industry the thought of finding the best choice can be scary.  Your Summit NJ real estate agent won’t be able to give you legal counsel or financial advice, but he can point you to some excellent resources.  Here are a few to get you started.

HUD-Approved Counselors
Making an appointment with a HUD-approved mortgage counselor is a good idea, especially for first time home buyers.  Their services should either be very reasonably priced or free.  Don’t fall for any pay-up-front scam artists.  A counselor can walk you through the various types of loan and teach you about the pros and cons of each one.  He can help you understand concepts like points and closing costs as well as interest rates and how each one will affect your monthly payments.  It’s important to go into this process with a proper education.  A good counselor can provide it.

Credit Reports
Your credit score will be a major factor in determining what interest rate you qualify for and in some cases, what type of loan.  (Some lenders specialize in working with only high- or low-risk buyers.)  Knowing your score will help you judge your readiness to buy.  You are entitled to a free report from all three major credit reporting agencies once each year.  You can go to www.annualcreditreport.com to request your report.

Mortgage Brokers
You can go to your local branch bank and talk to a loan officer about a mortgage.  Most banks have several options.  However, all of these will originate from the same lender.  If you are turned down or do not get the rate you want, you will have to start over with another bank.  Shopping around this way can be time consuming and discouraging.  Mortgage brokers offer many different types of loan from a variety or providers.  You may be able to find a better loan without the hassle of crafting a new application or each one.  Ask around for references and try to find a local broker.  It’s best to work with someone who knows what is required in your particular area.

At the end of the day, the choice is still yours to make.  Use all the resources at your disposal to make an educated decision.  The best thing you can do is take the time to shop around, compare rates and features and learn everything you can.

The “Baby Boomers” have been driving nearly every market trend for decades now.  Any Summit NJ real estate agent can show you how much they have affected local real estate.  From three-car garages to outdoor kitchens to the luxury real estate bracket – all of these were practically created by Boomers.  But now that this huge group of people is growing a bit older, what do their real estate needs look like now?

“Boomer”angs
If you’re a Boomer, you may be experiencing a phenomenon common to many of your generation: the boomerang effect.  This occurs when your grown children, instead of moving out after college, move back in with you.  The economy has forces many young people to return to the family nest.  Some Boomers are coping with this by keeping the family home for a bit longer instead of selling it to fund retirement.

Others are reveling in it, buying larger homes so that everyone can be more comfortable and settling in for a long partnership with their kids.  It often gives them more frequent access to their grandkids and many enjoy the close ties with their children.

Renovations
Some Boomers are putting off listing their home with a Summit NJ real estate agent for economic reasons.  Their home just wouldn’t sell for the right price right now so they are waiting out the market.  For those who are keeping the family home, renovating is often a perfect solution.  Renovating adds value to the property when done properly.  Updating can make a home more appealing and thus more sellable when the time comes.

Downsizing
There are plenty of Boomers who have chosen to sell the family home and downsize.  Those who have been able to sell at a good price are looking at a whole new range of products that were not available to their parents.  The Boomer generation has prompted the construction of specialized condos and communities, patio homes and townhomes.  Amenities like lawn care and included maintenance make these dwelling very attractive to this generation.

They are also looking at smaller, single family homes.  Boomers are enjoying better health and vitality than many prior generations so they may not yet need to give up doing their won gardening.  Many Boomers cherish the privacy they have so long enjoyed in their home and are reluctant to give it up for a condo.

No matter what trends arise, expect the Baby Boomer generation to be at the wheel, driving the market.

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.

Advice abounds about preparing a home for sale.  There is no shortage of information of how to get your primary residence looking good for the listings.  But is the process any different for preparing a rental or investment property for resale?  There are several similarities but a few differences as well.  Talk to your Summit NJ real estate agent about what your property needs.

Occupancy
When selling a primary residence you will likely be living in the home as it is being shown.  This means someone who cares will be there to keep the home looking livable but not “lived in”.  When you have a rental property, there situation can be drastically different.

In some cases the tenant still occupies the property.  Your tenant could be a meticulous house keeper or a total slob or anything in between.  You can’t count on a renter being as conscientious as you would be when the realtor is on the way.  If you have a smoker or a slob as a tenant you may need to wait until the lease is up and the tenant has vacated to show the property.  If you have a neatnik for a tenant, count yourself lucky and show him some appreciation (perhaps in the form of discounted rent) for the trouble of dealing with showings.

Cleaning
Cleaning takes on a whole new meaning when dealing with a rental property.  Not all tenants take care of their rented home in the same manner as they would one they owned.  Even “nice” people or “good” tenants can be a little careless.  A rental property will probably need a professional cleaning from top to bottom if you want to put it on the market.

Carpets should be steam cleaned, grout whitened and exteriors pressure washed.  You may need to apply a coat of primer to cover any wall or ceiling stains before painting.  Bathroom and kitchen floors can also be professionally steam cleaned.  Don’t forget to clean up the exterior as well.

Staging
Staging may be a touch more difficult when you are preparing a rental for sale.  After all, you won’t have your own furnishing to fill the space.  If your property is still occupied, it may be impossible to really stage the home for sale.  The best you can do is to ask the renter to straighten up and minimize the clutter.  If you have waited until the property is vacant, consider renting basic furnishing or hiring a stager to give the home a cozy feeling.

Your Summit NJ real estate agent can give you more advice about getting your rental property ready for the market.  Be prepared for some hard work.  It will pay off at the closing table.

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.

Once you’ve decided to make the jump into real estate investment, you may find that you need some help.  Your Summit NJ real estate agent will be able to guide you toward properties that will make good rentals. However, finding renters may be harder than you think.

There are a number of factors that make a good renter.  It’s not always easy to find these qualities on your own.  As an independent landlord, you may not have the time or resources available that will sift out the good applicant from the bad.  You’ll need to have a carefully written contract, perform a background check and secure at least a few references.

Many property owners find this process to be daunting and time consuming.  For this reason, they choose to employ a rental agency to take care of all the details.  If you intend to use a rental agency, make sure you’ve chosen one that is trustworthy and will be able to fit your needs.

Check References.
When you choose your Summit NJ real estate agent, you probably asked around for references.  You checked with coworkers, friends and family to see who had good experience and who was not happy with their realtor.  You should do the same thing with a rental agency.  Talk to both owners and tenants so you get a full picture of their services.  Ask for references and call them.

Know your Needs.
Some agencies specialize in long-term rentals while others solely serve owners of vacation properties.  Still others so double duty and serve both needs.  Be sure you are choosing the right type of agency for your property.  The agency you choose should have experience in the type of rental you own or are planning to buy.  You don’t want to be the guinea pig for a start-up operation or an expansion.

Understand the Fees.
If an agency is securing, screening and checking the backgrounds of potential renters plus collecting rent and taking care of maintenance they will naturally expect to be compensated.  Make sure you’ve discussed their fees and services and are satisfied that the charges are fair.

Stay Informed.
Many property owners make the mistake of assuming the rental agency is taking proper care of their property, renting to only the best tenants and charging only necessary fees.  They sometimes get a nasty surprise when they decide to sell and find the condition of the property has become deplorable.  Don’t fall into the trap of complacency. Check up on your property and keep an eye on the bills.  A service call or two is expected but if the same item keeps showing up month after month they could b e padding the bill.

Real estate can be a solid investment.  A rental property can help subsidize your income and give you a nice nest egg for retirement.  Be sure you leave its management in capable hands.

You’ve finally found the right house.  The price is good and your Summit NJ real estate agent asks if you’re ready to write an offer.  What is your answer?  Do you even know how to make an offer on a piece of real estate?

The actual writing of the offer and subsequent contracts is, of course, up to your agent and real estate attorney.  As a buyer, you do have a responsibility to understand the process.  There are a few things you need to know and do in order to make a strong offer to a seller.

Secure your financing.
Before you even start house hunting with a Summit NJ real estate agent, choose a lender and get preapproved for your financing.  Having financing in place not only makes things go more quickly and smoothly for you, it also gives you negotiating power.  An offer from a buyer with secure financing may be taken more seriously than one from a buyer without it, even if their offer is higher.

Determine the price.
Your agent will help you determine what a good price for the home is by checking recent sales of comparable properties in the area.  Get advice from your agent on how much to offer.  There is something of an art to selecting that perfect number.  Unless you know that the seller is highly motivated or the property is a short sale, offer a price worthy of the house.  “Low ball” offers risk offending the seller and making him unwilling to work with you.  Offering too much, on the other hand, is a waste of your resources.

List contingencies.
If you won’t buy the house unless the siding is fixed or the plumbing repaired, make sure that contingency is written into your offer.  Details are important.  Be sure any deal-breakers are in writing so you don’t get stuck paying for a costly fix later.

Set an expiration date.
Unless you like waiting around, write in a date that the offer will expire.  Be sensitive to the seller; he may be out of town or have an emergency.  However, you shouldn’t let him keep looking for higher offer while keeping you on the back burner.  The seller should be able to decide on whether to accept you offer within a reasonable length of time.

There are a number of other details that you should talk to you Summit NJ real estate agent about before making an offer.  The more you know at the beginning of the process, the more ready you’ll be to move on that perfect property when you find it.

When it’s time to sell your home, the single most important decision you will make with your Summit NJ real estate agent  will be setting the asking price.  This may sound like a huge overstatement, but it isn’t.  Pricing really is that important.

Some sellers think that all you have to do to set the price is to look at what you paid when you bought the home and add appreciation.  Others just look at the home they want to buy next and set their selling price to match.  Both are very poor strategies, especially in a buyer’s market.  When you set a price for your home, you aren’t just making a reasonable assessment of its value although that is a large part of pricing.  You are also choosing your buying pool.

Think about your home buying process when you purchase the property.  When you sat down for the first time with your Summit NJ real estate agent, you didn’t start with a wish list.  You started with a budget.  You probably didn’t say “ I want a yellow house with 4 bedrooms,” until after you had said “I’m looking in the $300 to $500,000 price range.”

When you pick your price you are choosing the buyers who will come to see your home.  Using the range above, if your seller had set the price at $525,000 you might never have looked at your current home.  Smart, serious buyers know their budget and stick to it.  They don’t look at homes they know they can’t afford.  Don’t expect a buyer to figure out that you only really wanted $490,000 for the house.

Your pricing decision may also dictate how long your home will linger in the listings.  If you set the price to high, buyers will compare it to home in the same range with more features or a more desirable location. Placed side by side, your home will suffer in comparison and buyers will be looking at other properties.  A lack of activity can leave your home sitting on the market until it becomes a “stale” or even expired listing.

Setting a price can be a daunting process for a home seller.  With so much riding on the decision, actually making it can be nerve racking.  Count on your Summit NJ real estate agent to show you comparable listings and recent sales to help you pick a sellable price.

I wish I could tell you how many times my mother said “Don’t dawdle!” to me as I was growing up.  It’s turned out to be great advice for a career as a Summit NJ real estate agent.  This is one industry where you really can’t afford to waste time.  No matter if you’re a buyer or a seller, dawdling is deadly for your deal.

As a buyer, wasting time is trouble for several different reasons.  While you are waffling back and forth on whether or not the house is perfect, the seller goes on with his process.  Here’s what can happen while you’re thinking it over.

Another Buyer
The seller will continue to market the house to other agents and buyers until he has a contract in hand.  He won’t care much if that contract is from you or someone else if the price is right.  Another offer could be made and accepted in a matter of minutes so don’t count on having plenty of time to make up your mind.

Rates Change
Unless you’ve locked in a rate on your mortgage, the rate you’ve been quoted can go up.  Depending on the market the changes could be significant.  A few tenths of a point could cost you a bundle over the course of a 30 year mortgage, all because you didn’t make up your mind.

It’s not just buyers who suffer when they dilly-dally.  Sellers face problems for waiting around, too.  Think about these potential mishaps when you’re thinking over an offer.

Buyer’s Remorse
Sometimes a buyer will panic and back out of a deal if given too much time to think about it.  They may also start to mentally magnify flaws in the property while waiting for you to respond.  This might make the buyer less willing to negotiate and more willing to walk away.  Finish your deal before buyer’s remorse has a chance to set in.

Harmful Comps
Another sale could take place while you are wasting time.  If it’s a short sale, foreclosure or another sale below the market value it might affect your home’s value.  This will weaken your negotiating power.

How do you keep yourself from dawdling and damaging you deal?  Ask your Summit NJ real estate agent to help keep you on track, time-wise.  Figure out what you want before you start looking.  Be sure you’re ready to sell.  Try not to leave town during your home search or sale and definitely don’t get out of cell phone range.  Your agent may need you and in the real estate business, you can’t afford to dawdle.

If owning a home is the American Dream, finding a steal must be the American fantasy.  House hunters get a certain sparkle in their eyes when words like “price reduction” or “short sale” come up in conversation with their Summit NJ real estate agent.  When some buyers start talking about auctions, it turns into a gleam.

The idea of getting something very valuable for next to nothing is quite tempting.  However, making a real estate purchase at auction can be a bit tricky.  It’s not the best method for a first time buyer and even seasoned real estate veterans can make mistakes.  If you’re thinking about buying at auction, talk to your Summit NJ real estate agent about the pros and cons of this type of purchase.

Why do owners sell at an auction?
Real estate is typically auctioned off by a highly motivated seller who wants the process finished in the fastest possible manner.  The property may have been a foreclosure or an inheritance or anything in between.  Buyers come prepared to buy, not look.  The buying and closing period is accelerated and the owner doesn’t have to keep carrying costs.  Competitive bidding may also drive the purchase price to a better end for the seller.  There is no negotiation necessary.

Why buy at an auction?
A buyer may be able to find a piece of property at a price well below market value.  Not every auction will yield this kind of gem, though.  You can be confident of getting a property with a clean title at closing.  Again, there will be no negotiations and no hassles concerning price.  If you don’t want to pay beyond a certain price, don’t bid it.

Types of auctions
There are three basic types of auctions.
·    Absolute: highest bid wins, period.
·    Minimum bid: seller sets a starting point for the bidding and the price goes up from there.
·    Reserve: seller has the opportunity to accept or reject the winning bid, protecting him from selling below his needed price.

Cautions
Don’t think you’ll be able to browse all the area auctions till you find that diamond priced like a rhinestone.  Buyers may be required to produce a certified check for each property they intend to bid on to show they truly intend to purchase.  You can, and should, observe an auction or two before becoming a buyer to see how the system works.  Don’t buy a property that you cannot have inspected.  Buying “sight unseen” is never a good idea.  Your Summit NJ real estate agent can give you more precautions about buying at auction so talk to him before you pick up your bidding paddle.