Firstly, any Millennial and First Time Home Buyers are lost when it comes to Real Estate. Trying to Figure out the Real Estate Market can be daunting. Especially the current one we are in. Secondly it takes a Team to get you the Home You Want!
We Specialize in Helping First Time Millenials Buying Real Estate
Finding a home is tedious, when the average days on market is only 14. This is why the McLain Realty Team specializes in working with Millenial Home Buyers Minds are at Ease. Our Team gets buyers the home they want and at the Price and Terms they want. But that is not all. Finally, we offer our Exclusive Program. Our 2 Year Love It or Leave It Guarantee! When a Millenial Home Buyer purchases a home through our team, and doesn’t love it, we will buy it back or sell it for free!* Our goal is to provide you with the information you will need to make the best decision for you in regards to homeownership. We will break down the myths and stereotypes that have long been believed to be true. We also will shed light on the opportunity you have to build wealth using your monthly housing cost.
Call us Today is you are feeling lost.
McLain Realty Team of RE/MAX 365 John McLain-Owner 908-878-9356
At RE/MAX 365 We cover the entire state of NJ from Cape May to Bergen County!
A short sale transaction is VERY different from the a “usual” home buying process. It involves more time to wait, and more leg work for your Real Estate Agent. Due to the rise of short sale properties on the market, training companies see it as an opportunity to train agents specifically in this area, giving them certification upon completion. Although it’s a plus to have your agent be trained in short sales, it’s better that they have actual experience doing the work that goes behind a Short Sale, Especially in NJ. Here are some pointers on short sales. Focus on the qualities you should seek when hiring an agent for this type of transaction.
What is a short sale?
A short sale is when Real Estate is sold for less than its unsettled mortgage. The value of the properties put up for a short sale has usually dropped by 20% or more. Ex. The Mortgage owed is $500,000, and the new Market Value is $400,000.
How does a short sale work? Let us Explain it to you.
How to Find the Best Agent for a Short Sale in New Jersey will Explain it all to you!
If a homeowner is in financial strife and there is not enough equity in the home to pay off the mortgage after paying for the costs of sale, they may consider a short sale. A short sale allows homeowners to avoid incurring a bad record of foreclosure on their credit rating. To do so, they must present documents that support their claim of inability to pay off their remaining mortgage balance to their lender. These documents are subject to the approval of the lender before the house can officially be put up for sale.
A prospective buyer will have to make an offer to the seller, and also to the lender, and wait for their short sale approval letter.
As a home buyer, what are the advantages and disadvantages of buying a short sale?
It’s cheaper than the usual house prices in the market – The last thing that the bank/lender and the homeowner want is for the house to remain for too long on the market, so they price it low to attract buyers.
Less competition with fellow buyers – Most buyers are not prepared to wait, and since the process of buying a short sale can take time, this trims down the number of prospective buyers that can make an offer on the property.
The process is long – Processing the escrow is a long haul, and the approval of your offer is passed on from the seller to the lender.
You may need to pay costs that are not included in the selling price – Included in these costs are the closing costs, which the lender will not agree to split. There may be additional costs as well.
You buy the house as is – Contrary to the norm of buying a property and asking for a decrease in price based on necessary repairs, price reductions for a short sale will usually be declined. Importantly, you may counteract this by including contingencies on home damage and repair on your purchase contract.
You may need to pay part of the agent’s commission – It’s the lender who calls the shots on commissions for the agents in a short sale transaction. They typically pay more to the seller’s agent. Buyer’s agents know this is the case, and may request a higher commission be included in the buyer’s brokerage agreement.
What agent qualities should I look for when deciding to buy a short sale home?
They Have handled short sales before – Most Importantly, an agent who’s not only handled but closed a short sale. If they’ve closed a handful, that would be even more ideal because. What this means is they know the necessary (and tedious!) legwork short sale transactions require. They could also acquaint you with lawyers to aid you in the negotiation process with the banks.
Ability to explain the whole process of a short sale to you in a comprehensible manner – Have them explain to you all the legwork and necessary measures involved in a short sale transaction. That way, you are able to prepare what needs to be done, and ascertain whether they have enough knowledge to handle the transaction.
They’ve a trained eye for spotting red flags – An agent with a good amount of experience in short sales can easily detect if there are possible legal or tax consequences. Once they spot something fishy in the transaction, they can direct you to consult with your hired attorney on how to address the issue.
They are knowledgeable on lenders and banks –The lengthy part of the short sale process is really at the bank. The agent will need to call for regular updates. Also, an agent who has closed a lot of short sales will know how the lenders/banks fare in the process. This can shorten the process significantly. There would be no guessing game on your side of the equation. Your agent would already know how to strategize in order to expedite the process and make it as smooth as possible.
Firstly, every day that passes, people have a need to buy and sell homes. Especially if they are wondering what if I need to sell my home during the pandemic. It has not stopped during the current pandemic. If you’ve had a major life change recently, you may be in a position where you need to sell your home. And Fast! While you probably feel like timing with the current pandemic isn’t on your side, that is false. Making a move is still very possible. Rest assured, with our technology at your side and fewer sellers on the market, you can list your house and make it. Most Importantly make it happen safely and effectively. Especially when following the current COVID-19 guidelines. Furthermore these were set forth by the National Association of Realtors (NAR) and the Centers for Disease Control and Prevention (CDC).
You may have a new baby, a new employment situation, or you just built a home that’s finally ready to move into. Maybe even some other major part of your life that has changed in recent weeks. Buyers have those needs too! You can rest assured that someone is likely looking for a home just like yours.
According to the NAR Flash Survey: Economic Pulse taken April 5 – 6, real estate agents indicate, not surprisingly, that there’s a noticeable decline in current homebuyer interest. That said, 10% of agents stating in the same survey that they saw no change or even an increase in buyer activity. So, while buyer interest is low compared to normal spring markets, there are still buyers in the market. Don’t forget, you only need one buyer – the right one for your home.
Here’s the other thing – people are spending a lot of time on the Internet right now. Buyers are actively looking at homes for sale online. Some of them are reaching out to real estate professionals for virtual tours and getting ready to make offers. Homes are being sold in many markets.
There Is Less Competition Right Now , so What I Need to Sell my Home During the Coronavirus
Furthermore, 56% of home sellers are removing their homes from the market. This can definitely work in your favor. Although other sellers are removing their listings, your home has a better chance of being notived. Keep in mind, listings will pick up again soon. This is because 57% sellers are only planning to delay the process. If you need to sell right now, don’t wait for the competition to get back in!
Delayed listings from the typically busy spring season will push into the summer months, so more competition will be coming to the market as the pandemic passes. Getting ahead of that wave now might be your biggest opportunity.
The McLain Realty Team can Help Selling your home during the Pandemic
Furthermore, our Real estate team is working hard every single day. Under traditional circumstances, utilizing technology to help both buyers and sellers who need to continue with their plans.
We’re using virtual tours to show homes currently on the market
We are holding Online Virtual Open Houses
We constantly stay connected with the buyers and sellers through video chats, leveraging resources to complete transactions electronically.
Most Importantly, we’re making sure the families we support remain safe especially as life is changing so rapidly.
Finally, homes are still being bought and sold in the midst of this pandemic. If you need to sell your house and would like to know the current status in our local market, let’s work together to create a safe and effective plan that works for you and your family.
Firstly, the Coronavirus disease (COVID-19) has created volatility and uncertainty. Secondly, this is the expected to be the best real estate market in history. How is this unprecedented health crisis impacting people looking to buy or sell a home this Spring?
How has it lead to an all-time low in interest rates?
Why are the costs of housing commodities dropping?
Can real estate activity (i.e. Open Houses and showings) raise virus exposure?
Contact Us Today, to discuss this current market and the opportunity it raises.
With money cheap to borrow, and a Lack of Inventory, it is the Best Time to Sell, with Proper Precautions. Only 16% of Realtors have decreased nationwide decrease in Buyer Demand. With our 87 Step Marketing and Innovation System, we are adding and adapting with Video Tours to make viewing homes easier.
We have been fully trained on the methods to keep your home safe during the times of NJ Coronavirus Real Estate Market pandemic.
John McLain – Team Leader of the McLain Realty Team of RE/MAX 365
Office: 908-923-4538 Cell Phone: 908-878-9356 Call or text 24/7
Firstly, the number of building permits issued for single-family homes is the best indicator of how many newly built homes will begin to come to market over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Construction Report, the number of building permits issued in January was 1,551,000. This is a 9.2% increase from December.
How will this impact buyers?
New inventory means more options. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR),explained how this is good news for the housing market – especially for those looking to buy:
“More construction will mean more housing inventory for consumers in the later months of this year…Spring months could still be quite tough for buyers since it takes time to convert housing starts into actual housing completions.”
How will this impact sellers with New Construction Homes in NJ.
More inventory means more competition. Yun continues to say:
“As trade-up buyers move into these newly completed homes in the near future, their existing homes will be released onto the market.”
Today, because of the tremendous lack of inventory, a seller can potentially anticipate:
A great sale price on their house as buyers engage in potential bidding wars.
A quick sale as buyers have little inventory to choose from.
Fewer hassles as buyers want to smoothly secure a contract.
If you’re considering selling your house, you’ll want to list sooner rather than later. This way, you’ll get ahead of this new competition coming to market and ensure the most attention toward your listing and the best price for your house.
Firstly, Coronavirus (COVID-19) has caused massive global uncertainty. This includes a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.
With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans?
“At the very least, the coronavirus could cause some people to put home sales on hold.”
While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future.
For example, when there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.
“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”
This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.
The full impact of the Coronavirus is still not yet known. It is in times like these that working with an informed and educated real estate professional can make all the difference in the world. Finally, we do not anticipate much effect for the Coronavirus on the US Housing Market.
Firstly, there is a BIG Opportunity in the Luxury Market This Year for Luxury Real Estate Near Me!
Luxury Homes priced in the top 25% of a price range for a particular area of the country are considered “premium homes.” At the start of last year, many of the more expensive homes listed for sale hadn’t seen as much interest. Much of the demand for housing over the past few years has come from first-time buyers. It looks like buyer activity, however, is starting to show a shift in this segment.
“In a snapshot of 2019, despite pessimism at the start of the year, the last quarter showcased a strengthening, with an upswing in the luxury market for sales in both the single family and condo markets.”
So Where are we Heading?
Momentum is growing, and those looking to enter the luxury market are poised for success in 2020. There is more inventory available at the upper-end. The historically low interest rates and increasing wages help. The stage is set for buyers with an interest in this tier to embrace the perfect move-up opportunity.
The report highlights the increase in buyer activity in this segment, resulting in growing sales toward the end of 2019:
“According to reports from many luxury real estate professionals, the significant increase in number of properties bought at the end of 2019 versus 2018 is reflective of an early 2019 holding pattern.”
With evidence of strong buyer confidence, this is great news, as more homeowners are building equity and growing their net worth throughout the country:
“Many homeowners are now diversifying their wealth, owning several properties rather than a single mega mansion. In addition, there have been an increase number of home purchases taking place in smaller cities, reflecting the rising number of people relocating from major metropolises.”
It is a great time to explore the luxury market. Luxury can mean different things to different people, too. To one person, luxury is a secluded home with plenty of property and privacy. To another, it is a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent understand.
Getting an accurate value of your home can be difficult. Firstly, without understanding the nuances of the real estate market, establishing the market value can prove difficult.
Moreover it is very important to establish a relationship with a real estate team. For Instance, the McLain Realty Team conducts hundreds of Broker Price Opinions each and every year. This process will lead one to get the most accurate NJ Home Value. As a result, we have established a site with the most up to date information and algor
It can be difficult at times to get an accurate value of your home. Without understanding the Real Estate Market fully, getting an accurate NJ Home Value Online would prove impossible. Similarly most of the popular websites will give you absolutely inaccurate information. Further, they take all of the sales in the area near your home. These include foreclosures, short-sales, etc. Again, these homes should not be taken into account with your valuation.
NJ Home Value Online takes the guesswork out for you. Ofcourse it is still absolutely necessary for the real estate agent to view the interior of the home in person. This will allow all of the improvements and small details that could possibly be missed with the result through our online purposes.
We’re currently in the longest economic recovery in U.S. history. That has caused some to ask experts to project when the next economic slowdown (recession) could occur. Two years ago, 67% of the economists surveyed by the Wall Street Journal (WSJ) for the Economic Forecasting Survey predicted we would have a recession no later than the end of this year (2020). The same study done just three months ago showed more than one third of the economists still saw an economic slowdown right around the corner.
The news caused concern among consumers. This is evidenced by a recent survey done by realtor.com that shows 53% of home purchasers (first-time and repeat buyers) currently in the market believe a recession will occur by the end of this year.
Wait! It seems the experts are changing their minds….
Strength of the Economy is Surprising for Real Estate
Now, in an article earlier this month, the Wall Street Journal (WSJ) revealed only 14.3% of those economists now believe we’re in danger of a recession occurring this year (see graph below):The WSJ article strongly stated,
“The U.S. expansion, now in its 11th year, will continue through the 2020 presidential election with a healthy labor market backing it up, economists say.”
This optimism regarding the economy was repeated by others as well.
“Just months after almost everyone on Wall Street worried that a recession was just around the corner, Goldman Sachs said a downturn is unlikely over the next several years. In fact, the firm’s economists stopped just short of saying that the U.S. economy is recession-proof.”
“When Barron’s gathers some of Wall Street’s best minds—as we do every January for our annual Roundtable—we expect some consensus, some disagreement…But the 10 veteran investors and economists who convened in New York on Jan. 6 at the Barron’s offices agree that there’s almost no chance of a recession this year.”
“The U.S. economy is heading into 2020 at a pace of steady, sustained growth after a series of interest rate cuts and the apparent resolution of two trade-related threats mostly eliminated the risk of a recession.”
Again, the debate rages on for FSBO VS Hiring Real Estate Agent.
Hiring a Realtor VS FSBO : Here are the top 5 reasons not to FSBO:
1. Online Strategy for Prospective Purchasers
Studies have shown that 93% of buyers search online for a home. That’s a pretty staggering number! Most real estate agents have an Internet strategy to promote the sale of your home. Do you?
2. Results Come from the Internet
According to NAR, here’s where buyers found the homes they actually purchased:
55% on the Internet
28% from a Real Estate Agent
6% from a Yard Sign
1% from Newspapers
The days of selling your house by putting up a sign in your yard or placing an ad in the paper are long gone. Having a strong Internet strategy is crucial.
3. There Are Too Many People to Negotiate With
Equally, here is a list of some of the people with whom you must be prepared to negotiate if you decide to FSBO:
The buyer, who wants the best deal possible
The buyer’s agent, who solely represents the best interest of the buyer
The buyer’s attorney (in some parts of the country)
The home inspection companies, which work for the buyer and will almost always find some problems with the house
The appraiser, if there is a question of value
4. FSBOing Has Become Increasingly Difficult
The paperwork involved in buying or selling a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.
5. You Net More Money When Using an Agent
Hiring a Realtor VS FSBO
Many homeowners believe they’ll save the real estate commission by selling on their own, but the seller and buyer can’t both save the commission.
A report by Zillow revealed that FSBOs are inclined to do so because they believe it will save money (46 percent cite this among their top three reasons), but they don’t actually save anything, and eventually end up listing with an agent.
The same report revealed that,
“While 36% of sellers that (at first) attempted to sell their homes on their own, only 11 percent of sellers—in other words, less than a third…actually sold without an agent.”
It appears working with a real estate professional is the best answer.
Lastly, before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.