George Conklin, SRES, e-PRO

Every real estate agent has heard, at some time or other, from a potential buyer that he or she would prefer to work only with the listing agent on a property. In fact, this seems even more common in the current marketplace. Their reasons can be many. The listing agent knows the property the best, or can work better with the seller, or may even be able to get the buyer a better deal. On the surface, these reasons may sound logical, but do they really make sense?

Traditionally, the real estate business has been based on the concept of cooperative competition. Agents compete with each other for listings and buyers, but they cooperate with each other to bring about successful buyer - seller transactions. Occasionally, the agent that lists a property will also be the one who finds a buyer, but this is the exception. The use of multiple listing services as well as the Internet and other forms of advertising means that every agent in a particular market is trying to sell not just their own listings, but every other agent's listings as well.

So what do we say to the buyer who only wants to work with the listing agent? We must show why this may not be in their best interests. We must be in a position to explain to them that while the listing agent may know the property best, he may not be in the best position to compare his listing with other similar properties for sale in the neighborhood. We must show that the buyer may very well be best served by working exclusively with an agent who, rather than being focused on trying to sell one particular property, will be focused on the buyer's wishes and needs. This buyer's agent will seek out properties that meet those needs, make sure that the buyer has an opportunity to compare those properties, and will then represent that buyer throughout the negotiations to ensure that those needs continue to be met.

In short, the buyer who insists on working only with the listing agent limits his choices and weakens his level of representation. On the other hand, the buyer who works closely with one agent and develops an honest and trusting relationship with that agent is in the strongest position in this, and any other, market.

As summer winds to a close and days at the pool dwindle to a precious few, that can only mean one thing: Back to school time is here again! Because Labor Day falls so late this year, the first day of classes is a bit later than normal. Consider it a chance to get in a few extra days at the pool, or better yet the beach.

Here's the schedule for 2009 as it stands today:

Bedminster School District (K-8): Thursday, September 10th

Bernards Township School District: Tuesday, September 8th

Branchburg School District: Thursday, September 10th

Bridgewater-Raritan School District: Wednesday, September 9th

Somerset Hills School District (Bernardsville, Far Hills, Peapack-Gladstone): Thursday, September 10th

Here's wishing everyone a great school year ahead.

As American’s, we live in one of the most mobile cultures in history. On average, we move from one home to another once every five to seven years. These moves take place for a wide variety of reasons, including the need for more space, job transfers, the desire for better schools, and much more. As a real estate agent working in New Jersey, I am always surprised by the pre-conceived notions many people have about my home state. In short, we’re not just an exit off the turnpike, but a widely diverse state with something for everyone, especially the home buyer.

Recently, the New Jersey Association of Realtors published an article highlighting some of the practical advantages New Jersey has to offer. First on the list was our state’s significant advantage in employment opportunities. In 2007, New Jersey had the second highest median income in the country ($64,470 vs. the national median of $48,451). Second on the list were the educational advantages New Jersey has to offer. New Jersey ranked seventh in the nation in high school graduation rates (behind Nebraska, Wisconsin, Vermont, Iowa, North Dakota, and Minnesota). Even more impressive is the fact that 8 out of 10 high school graduates enter college. These are probably just some of the reasons Money Magazine named ten towns in New Jersey to its list of the 100 best places to live in the United States for 2008.

For me, these facts and figures are impressive, but they don’t tell the whole story. I would rather think in terms of the less practical, but maybe more important, advantages New Jersey has to offer. I live and work in Somerset County. When I look out my window in the morning, I can see across miles of lush green hills. There are streamside paths, horse farms, and pre-revolutionary historic sites within walking distance of my home. If I am prepared to take a short drive or train ride, I have all the advantages of New York City, the greatest city in the world with its Broadway shows, museums, and fabulous restaurants. You name it, New York has it. A short drive to the south brings me to the Jersey Shore. Whether it’s hot dogs on the boardwalk, arcade games, glitzy casinos, or secluded beaches, there is nothing like going “down the shore” as we say here. I could go on and on listing the things I love about owning a home and living in New Jersey. Instead, I suggest you just try it yourself.

One of the biggest concerns facing the housing market and the economy in general is the drop in home prices. Nationally, home prices are at four year lows, maybe worse. That means that, on average, four years of appreciation have been wiped away. This is quite a shock to the system. As homeowners, we tend to assume that home values will always appreciate, and over the past decade or so we have even seen the growth in home prices outpace most other investment options. This housing "boom" has become to some the norm. In reality, however, market ups and downs are really the norm. In fact, there have been as many as eleven housing downturns since World War II. This one is clearly the roughest most of us have experienced, but it too shall come to an end.

A bigger issue facing potential buyers is whether this news means it's a bad time to buy. Is real estate no longer a good investment? Well, nobody has a crystal ball, but history tells us that prices will stabilize and begin heading back up again. There is only so much land and so many homes, and the forces of supply and demand will win out in time. In fact, for many people this may be the perfect time to buy. Let's look at two scenarios:

1. The First Time Buyer: Clearly, falling prices can be a friend of the first time buyer. A 15% price drop from year to year means that $300,000 townhouse you looked at last year could possibly be purchased today for $255,000. The 20% down payment you were considering isn't $60,000 anymore. Now it's $51,000. If you have a stable income and a secure job, what's not to like?
2. The Upsizing Buyer: This scenario is a little more complicated, but often the answer is the same. Consider a couple with two small children whose home a year ago was worth $500,000. They were considering upsizing to a larger home then priced at $800,000. This could have involved borrowing an additional $300,000 to make the leap. Now, a year later, their home is worth $425,000 (assuming a 15% drop). This is not good news. However, the home they were looking to buy may now be available for only $680,000. That means they could make the same move they were considering last year by borrowing an additional $255,000. The drop in home prices may have saved them $45,000!

Naturally, these are two very basic scenarios. Every person has individual circumstances that must be carefully considered before making any financial decision. For example, someone who has seen most, if not all, of their equity eroded by the drop in home prices would not necessarily be in a position to take advantage of a similar drop in the new home they were considering buying. What is clear, however, is that a drop in prices is not always a warning sign not to buy. It is just one of the many factors to be taken into consideration when making your decision.