A few days ago I met a real estate appraiser named Rosalyn at one of the Monmouth County NJ homes I have listed. Within less than 2 months of being on the market, this home had 3 offers to purchase and was now under contract...Yay!
Rosalyn the appraiser was very focused on what she needed to observe as it pertains to the home. Once she was finished, she was willing to indulge my curiosity as whether or not the changing real estate market has affected the appraisal process.
Being the sponge that I am, I looked at this as a great opportunity to "pick her brain" and ask a few questions that might be helpful to my clients. I chose the 5 questions below, because they often lead to spirited debates between myself and other Realtors, as well as first-time buyers or home owners who are in the process of selling.
Thanks to Rosalyn for sharing her expertise!
1. The square footage of a home also includes the total square footage of the basement.
FALSE: According to Rosalyn, a home's true square footage only includes the actual living space. If an area is a below grade basement (meaning underground and not a walkout), then that basement is NOT considered actual living space, and should NOT be calculated as part of a home's square footage. She said in NJ and in many states it is acceptable to measure the actual square footage of the basement and note that separately as additional square footage but NOT as living space.
2. A home's appraisal value should be equal to or greater than the home's tax records assessed value.
FALSE: Although many cities and towns across America are reconfiguring their tax rate calculation formulas to reflect current real estate market values, there are thousands of cities who have not. Therefore, you cannot always expect a home's appraised value to be equal to or exceed the "tax assessment value."
3. If you're selling your home, you are entitled to receive a copy of the appraisal the buyer's mortgage lender ordered.
FALSE: Neither the buyer or their mortgage lender are required to share the appraisal information with you. The appraiser is not allowed to share their evaluation results with you either.
4. If you give your home an extra good cleaning and de-clutter, your home will appraise for more money.
FALSE: According to Rosalyn, appraisers do not base their evaluations on how "neat & tidy" your home is. The things that will likely have the greatest impact on what they assess your home's value at will be size, condition, upgrades, location, view (ocean, beach, etc) closeness to amenities (pool, golf course, etc) and/or facilities (bus, ferry, train, etc) and recent sales of comparable homes.
5. If you add certain upgrades to your home you will get a dollar-for-dollar return on your investment when you sell the home.
FALSE: Many appraisers will agree that updating things like a kitchen or bathroom or finishing a basement can definitely be a positive step toward increasing a home's value. However, despite how wonderful the upgrades may be they won't necessarily increase the value of your home to the extent where you'll get a 100% percent return on the money you spent. Here's a great article from the NAR (National Association of Realtors) that explains "cost vs. value" in greater detail.
Information courtesy of:
AMBER NOBLE-GARLAND
Waterfront Homes Expert & Short Sale Specialist
Weichert, Realtors
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office
www.AmberLovesRealEstate.com
"Your Reliable Resource For NJ Real Estate, Local Info & More"
I imagine that the new $8000 tax credit is on the tip of most people's tongues these days...at least I know it is in my corner of the world. Whether you agree with the basis of the $8000 tax credit or not, there's no denying that millions Americans are looking for a reprieve or any sign of "light at the end of the tunnel."
Below is a collection of a 5 different questions I've received over the past couple of weeks from buyers, sellers, family members and former colleagues who are considering home ownership. The people asking the questions might be different, but it seems like everyone is curious about the same thing. Questions #1, #4 and #5 seem to be the ones I keep getting the most.
I've too have asked a bunch of questions and enslisted assistance from two reliable CPAs (certified public accountants) I've known for years. See the Q&A below.
1. Q: I'm hearing conflicting information about this tax credit bill President Obama signed. Is the $8000 tax credit for "first-time home buyers only" or all buyers? I am so confused about how this thing works!
AMBER: The $8000 credit included in the final version of the economic recovery/stimulus plan is for first-time home buyers. By definition (for the purpose of this government plan) a "first-time home buyer" is someone who has not owned a principal residence for 3 years before prior to buying a different house.
2. Q: We are thinking about continuing to live with our in-laws in Marlboro until the baby arrives. We bought a modest vacation condo down the shore last year in the Spring before we met you. Will that count as our $8000 tax credit? What if we decide to still purchase a primary residence before the end of 2009, can we still be eligible for the $8000 credit?
AMBER: No, if you've owned a "vacation home" but not a principal residence within the past 3 years, you would still qualify for the $8000 tax credit, and would be eligible to receive it as long as you purchase a "primary residence" within that 2009 timeframe. To be sure, double check with your accountant.
3. Q: We have friends in Freehold who bought their first home in July of 2008. They said if we buy in 2009 we'll have to pay back the tax credit just like they will. Is that true?
AMBER: If your friends are entitled to a $7500 tax credit and they purchased in 2008, the money they will receive will likely have to be repaid over time. However, if you buy a home between January 1, 2009 through December 1, 2009, you shouldn't have repay the $8000 credit.
4. Q: We heard the $8000 tax credit is for low income families only. We make a little over $100,000 in combined income. Does that fall within the financial requirements?
AMBER: The $8000 tax credit comes with income limitations, but it's not for low-income families only. Married couples must have a modified adjusted gross income (better know as AGI) of no more than $150,000 and $75,000 per year is the cap for single people in order to qualify for the full credit. There is a possibility that any first-home buyers earning more than $150,000 may qualify for a reduced tax credit, but this hasn't be fully determined or approved yet.
5. Q: What happens if we buy a home in 2009, but for some reason we have to sell it within the next 2 years?
AMBER: In order to receive the $8000 tax credit and not have to pay it back to the government, you cannot sell the home in a time period any less than 3 full years from the date that title/deed was actually transferred into your name. If you do sell in less than 3 years you will very likely have to pay the $8000 back to the US government. They might make an exception for justifiable and unforeseen circumstances such as death, armed forces deployment or death, but that is not a guarantee.
NOTE**I encourage anyone who has additional questions about tax credits or anything related to the IRS, to check with their own licensed CPA and go to www.IRS.gov for the most comprehensive and up-to-date professional advice.**
Information courtesy of:
AMBER NOBLE-GARLAND
Weichert, Realtors (Marlboro ~ Manalapan office)
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office
www.AmberLovesRealEstate.com
"Your Reliable Resource For Monmouth & Middlesex County Real Estate, Local Info & More"
Freehold's Neighborhood Pride Committee to Host Gardeners' Workshop
The Freehold Borough Neighborhood Pride Committee has announced that it is sponsoring a Gardeners' Workshop for all Freehold Borough gardeners and potential gardeners on Saturday, February 28, at 2:30 p.m. at the YMCA located at the intersection of Center and Jackson Streets.
Bob Mellert, a Monmouth County Master Gardener, will conduct the workshop. Mellert has been gardening for a half century and, thanks to their freezer, he and his wife enjoy eating the produce they grow in their own back yard all year long. "Can you imagine never having to buy another vegetable and having fresh, healthy, 95% organic food available at all times?" asks NPC member Donna Koloski. "Bob will help others get started or improve their own gardens by discussing soil preparation, what, when, and where to plant, and will answer your gardening questions."
Koloski stresses that gardening is not an expensive endeavor and it is rewarding as well as stress relieving. Further benefits include a sense of pride and accomplishment, plus added personalized beauty to a home's landscape. "A lovingly tended garden represents personal artistry, sustenance and life. Neighborhoods with abundant gardens add a sense of wholesome beauty for neighbors and visitors alike," she says.
Koloski adds that the Committee is encouraging all participants to bring non-perishable food items for donation to area food banks. "The Neighborhood Pride Committee was founded on the belief that helping others creates a healthy and positive experience for all of us. We are proud to support our local food banks with our Gardeners' Workshop."
The Gardeners' Workshop is free and registration is not mandatory. Those who do sign up for the workshop will be eligible for door prizes provided by the Freehold Borough Recreation Commission. To register, contact Donna at pd2535k@verizon.net or 732-866-9648.
Information courtesy of:
AMBER NOBLE-GARLAND
Weichert, Realtors
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office
www.AmberLovesRealEstate.com
"Your Reliable Resource For Freehold Real Estate, Local Info & More"
WOULD YOU LIKE TO REDUCE YOUR AUTO INSURANCE?
DO YOU HAVE 2 NAGGING POINTS YOU'D LIKE TO HAVE REMOVED FROM YOUR DRIVING RECORD?
Well read below, because you may possibly be in luck!
NATIONAL SAFETY COUNCIL
"DEFENSIVE DRIVING COURSE"
Sponsored by Manalapan Venture Crew 120
This class is taught by certified instructors of the
NATIONAL SAFETY COUNCIL
SATURDAY, MARCH 14, 2009
9:00am-4:00pm
MANALAPAN TOWNSHIP MUNICIPAL BUILDING
Route 522 & Taylors Mills Rd.
The cost of $30 per person includes lunch, certifications and materials. An additional $15 will be charged for those New Jersey State residents who want to be considered for insurance discounts up to 10% and/or a possible reduction of up to 2 points off your motor vehicle drivers license.
NOTE: Keep in mind that any discount off your automobile insurance is subject to approval by your insurance carrier - some restrictions may apply.
The purpose of this course is to teach you to drive defensively. This 6 hour course includes a discussion of the behaviors that influence driving habits, as well as vehicle characteristics, the National Safety Council's "Collision Prevention Formula" the effects of drugs and alcohol on driving, and anticipating potential hazards. In fact, a similar event was sponsored by the Manalapan High School marching band in January.
If you'd like to participate in the March 14th seminar, by no later than March 7, 2009, send payment (along with the registration form below) to the following address:
Manalapan Venture Crew 120
C/o Manalapan Township Board of Health
120 Route 522
Manalapan, NJ 07726
-----------------------------------------------------------------------------------------------------------------------
**Make checks payable to: Manalapan Venture Crew 120**
Name _____________________________________________________
Years Driving ________________________
Home Address ___________________________________________________________________________________
Email ___________________________
Daytime Phone ____________________________
Evening Phone ________________________________
Course Fee = $30 p/person _____________
Insurance and/or Point Reduction (if applicable) = $15 p/person ________________________
For additional details e-mail Manalapan.Crew120@gmail.com. Participants must be no younger than 15 years of age to attend.
Information courtesy of:
AMBER NOBLE-GARLAND
Weichert, Realtors
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office
www.AmberLovesRealEstate.com
"Your Reliable Resource For Manalapan Real Estate, Local Info & More"
UPDATE: Due to the heavy snow NJ experienced, this FREE seminar was canceled for March 2nd. The NEW date is Monday, March 9, 2009, 6:45pm-8:30pm at the same location.
Monday, March 2, 6:45pm - 8:30pm, the Freehold Township Democratic Club presents a FREE seminar on how to appeal your property tax assessment.
The seminar will be held at the Monmouth County Library, Headquarters, 125 Symmes Road, Manalapan, NJ 07726.
The speaker will be Beverly Bova-Scarano, Former Commissioner of the Monmouth County Board of Taxation, Past President NJ Association of County Tax Board Commissioners & Administrators, and Licensed Residential Real Estate Appraiser, State of NJ.
*This event is free and open to the public! Light refreshments will be served*
Topics to be covered include:
RSVP's are appreciated but not necessary. Please RSVP by calling 732-616-8855 or emailing vegand@verizon.net.
*Please park in the side lot, off Alexandria Drive*
The Freehold Township Democratic Club was re-established in 2005 by residents who want to ensure positive and balanced growth for our community.
Information courtesy of:
AMBER NOBLE-GARLAND
Weichert, Realtors
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office
www.AmberLovesRealEstate.com
"Your Reliable Resource For Manalapan Real Estate, Local Info & More"
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YOUR needs are priority #1! I'd love to be YOUR reliable resource for real estate, short sales, local info, events & more. Covering Monmouth, Middlesex & Ocean County. www.AmberLovesRealEstate.com
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