Sellers are Holding Out for Higher Prices

This seems to be true. A colleague of mine has a listing that should be at least $30k lower (according to the comps) but her Seller is determined to keep the price where it is because she feels if the Buyer really wants the property, they will see the value as she does and pay the higher price.

Sellers seem to be willing to hold out especially if they don’t have to sell with any sense of urgency. There is a group of homes that I and other Realtors, developers, Investors were looking at over the past four years and come to find out the owner is very wealthy and is not sweating the taxes as he or she is paying them regularly and is in no rush to even do anything with the property so the units are sitting there empty when they could be providing homes for families. These particular properties are located on a prime waterfront location so there is the extra added value.

The link below shares the story,

http://www.marketwatch.com/story/home-sellers-hold-out-for-higher-prices-2013-04-19

What are your thoughts if you’re a Buyer or Seller? Comments are welcome.

If you are in the Atlantic County, NJ area or thinking of moving here, I would love to help you find what you’re looking for. Please use the comment area to connect.

Super Storm Sandy UPDATE!

Super Storm Sandy decimated many parts of South Jersey. Many homeowners are still in recovery mode and looking for answers. In order to assist from a Realtor standpoint, NJAR – New Jersey Association of Realtors held an information session earlier this month at the PNC Bank Arts Center – Robert Meyner Reception Center- in order to get as much information as possible about Super Storm Sandy. Representatives from all government agencies attended – National Association of REALTORS®, the Federal Emergency Management Agency (FEMA) the Department of Health (DOH), the New Jersey Department of Housing and Urban Development (HUD), the New Jersey Department of Environmental Protection (DEP), Department of Community Affairs (DCA), the New Jersey Department of Banking and Insurance (DOBI), the New Jersey Department of Housing and Mortgage Finance Agency (HMFA) and the Governor’s Office of Recovery and Rebuilding attended the REALTOR® Superstorm information session to provide answers and resources.
The two biggest concerns are the release of the new flood maps and how it will affect insurance rates.

Major Takeaways:
•Be sure to apply for assistance by May 1, 2013 if you suffered major damage to FEMA and/or SBA.
•The official flood maps will be released in summer 2013 but vetting could go on for up to 2 years.
•One of the most common reasons for application denial was incorrect paperwork.
•Increased Cost of Compliance (ICC) funds – up to $30,000 to raise, relocate or demolish a structure – are only available to structures which a) have a flood insurance policy b) have been substantially damaged 50 percent or more of the assessed value of the structure.
•The maximum amount of flood insurance money available from the federal government per policy is $250,000. For example, if a homeowner accepts a flood insurance settlement of $240,000, they are only eligible for $10,000 of ICC money.
•As of Oct. 1, 2013, flood insurance policies will no longer be able to be transferred upon the sale of a home.

If you need more information, contact your local Realtor.

Younger Workers Key to Growth

Atlantic City Convention Center is the meeting place for the New Jersey Builder’s Association Convention this week. The school of thought is that the market is growing but it is doing so too fast and that might not be the best thing because rising home values and expected mortgage rate increases will cause buyers who wait to have to accept smaller homes and further away from their work place. In our present economy in South Jersey, if younger workers are not able to secure jobs that will allow them to purchase homes there will be no growth.

http://www.pressofatlanticcity.com/news/breaking/homebuilding-forecast-growth-slow-analysts-tell-atlantic-city-audience/article_ac82608a-a147-11e2-8a79-0019bb2963f4.html

Tax Consequences For Selling Your Home

The last post I talked about buyers purchasing condos and the HOA fees and special assessment fees associated with them.

But this post I want to bring to your attention – Home Sellers and the Tax Consequences of selling your home.

…”That’s because the tax is on the sale-purchase price difference – not on the sale proceeds – and the bankruptcy law makes it impossible to discharge anything owed to the government right away.  “You have to wait two to three years after filing and not being able to pay your taxes to discharge them, so if you go bankrupt to discharge your other debts before then, you still owe Uncle Sam,” as Scott explains. ~~Gini Graham Scott, Author, Living In Limbo: From the End to New Beginnings~~

What does that mean? That means that if you sell your home in the early stages of foreclosure and use a bankruptcy filing to prolong the process, BEWARE and be sure to ask your attorney how much will your tax consequences be for taking that road. Find out if it will be better to stay in your home and ride it out.

 

Selling Your Home in the early stages of foreclosure could be a solution but make sure it won’t cost you an arm and a leg!

BUYER RESPONSIBLE for certs…..? Huh

These words mean that if you see a home that has all of the things that will make it “HOME” for you and your family then you will have to be prepared to pay for the privilege to move in.

What does that mean? Well, that means that you will be PAYING for ALL of the certifications and the certificate of occupancy that the seller normally pays when a home is sold. WHY is this happening? It could be a myriad of reasons? Usually, it is a short sale and the bank feels it is already letting the home go for less than is owed (hence the “short” sale) and they will not pay for you (the buyer) to move into the home. For example, if you will be living in Pleasantville, NJ you will be paying for a chimney certification (which may include a chimney cap), a hot water and furnace certification, a fire certification and depending on your lender, you may also need a termite inspection and a survey. Keep in mind the cost of all of these items will be coming out of your pocket.

So Buyers be prepared to make these extra expenses. You may be getting a bargain price for the home of your dreams but to actually get the certificate of occupancy, will cost you.

If you have questions, please feel free to send me a reply. I would be happy to serve.