Real Estate Looking Up For 2009
January 10th, 2009
Happy New Year Everyone! Jewell Real Estate Agency had a good 2008, and we are looking forward to an even better 2009. The year started off with a bang on January 2. Our office was so busy and crowded you couldn't move. Both Douglas and I had people in our office looking to buy and there were people in the front office waiting to talk to us. Instead of all the doom and gloom that you read in the newspaper, the people we talked to were upbeat and felt it's the right time to buy. We couldn't agree more. Interest rates are at an all-time low.
I received a rate sheet today from Wells Fargo that had a 4.75% 30 year fixed mortgage rate with 0 points. Other rate sheets I received were slightly higher but in the same range. How long will this last? No one knows.
Here's some stats for Cape May County that may interest you. Last year (2008) there were over 1900 properties sold. The year before had over 2200 properties sold. Properties available now in the Wildwoods (Wildwood, North Wildwood, Wildwood Crest, and West Wildwood) number around 1192. Other areas: Avalon - 297; Lower Township - 386; Middle Township - 425; Upper Township - 83; Dennis Township - 137; Cape May - 300; Sea Isle City - 252; Stone Harbor - 149.
If you're considering whether to buy, now is a good time to see what's out there. There are some great properties to be had. If you're looking to sell, it's still a great time because the low interest rates are helping to get a lot of people off the fence and making an offer.
If the past week is any indication of what's to come, it's going to be a good year. Check out our Featured Listings and the entire MLS on our website. Give us a call or send us an email. We'd love to hear from you.
Joyce Jewell, GRI, ABR, ePRO, ASP - http://JewellRealEstateAgency.com
FOUR'S NOT ENOUGH
We usually only hear one complaint about our newsletter - there aren't enough issues each year. In this ever-changing real estate market, and in response to our readers, we will now publish at least six newsletters per year. And so, here is our first extra edition.
ANOTHER HIGH-RISE APPROVAL
The second of seven proposed high-rise hotels has received its CAFRA approvals from the NJ Department of Environmental Protection.
Martinique Resort LLC received the go ahead for constructing a 23-story, 253-foot tall hotel with 289 units. The project will also include a 180-seat private restaurant for hotel guests only and a 120-seat restaurant open to the public. The approval requires 578 parking spots, plus another 94 spaces off-site.
The developers are now searching for a national chain to put their brand on the hotel and operate it. There will not be sale of any units as condominiums. The high-rise will be located between Wildwood Avenue and Oak Avenue just west of the Boardwalk, the site of the former Martinique Motel.
In May, the Starlight Resort Hotel became the first to get the coveted nod from CAFRA. That 23-story complex is approved for 264 residential units, a 200-seat restaurant, 654 parking spaces, a fitness club, spa and swimming pool. Starlight developers had to fork over $445,000 to the newly-formed Wildwood Parking Authority. Martinique was no doubt hit for a similar fee.
The Starlight project, which is being shopped in the hope of landing a big developer to bankroll the construction, is located between Juniper Avenue and Poplar Avenue along Ocean Avenue.
The next high-rise to gain NJDEP approvals should be the Nouveau Wave, located between Rio Grande Avenue and Andrews Avenue across the street from the Wildwood Convention Center parking lot and the Boardwalk.
WILDWOOD SELLS OLD LANDFILL
The City of Wildwood pulled off a last minute sale of the 24-acre old landfill for $5 million, with $3 million up front, to roughly cut in half a projected 25-cent tax increase. The purchaser was Brian Horn of SLRD Company of Mullica Hill.
The project had originally named K. Hovnanian as the developer about six years ago. They paid $1 million to the city in 2003 and another $1.5 million in 2006. They spent another $5 million on environmental studies, permitting, etc. They proposed 222 residential units. In 2007, with another payment to the city on the horizon, K. Hovnanian pulled the plug and walked away.
The redevelopment area is located on the west side of Wildwood, in a five block wide area between Baker Avenue and Garfield Avenue directly on the backbay. The landfill needs to be remediated, meaning either the buried trash has to be dug out and removed, or a 10-foot cap of clean fill must be placed on top. SLRD, a company whose business is reclaiming landfills, chose the latter.
DEAL OF A LIFETIME
Every once in a while, a real estate property comes up for sale that offers the type of monetary return that is usually associated with winning the LOTTERY. It just so happens that Jewell Real Estate Agency has recently acquired such a listing.
Let us start by saying that we can't recall ever promoting in our newsletter a property we had listed for sale. This is a first. That's how good we think this deal is.
The property is nine city blocks in West Wildwood, with zoning allowing 114 single family homes. It totals 11.87 acres and is being sold at the fire-sale price of just $2 million. CAFRA approval is close on 1½ of the blocks for 25 single family homes.
Here's the strategy to cash out. Apply for CAFRA and city approvals for the balance of the property. City approvals should come in less than six months, NJDEP approval will take 2-3 years. So now it's 2011, the real estate market is booming again, and you've spent under $3 million. Put the property up for sale for $8 million to $15 million. You do the math.
In 2005, we were close to selling this land to a big developer for $18 million. So now it's for sale for 11 cents on the dollar. Wow!
We also have an adjacent island for sale for $900,000. It also nearly went in that same 2005 deal for $4.5 million. It's now 20 cents on the dollar. It's 68 acres, with about 20 acres of it an upland island that is zoned for one single family home per acre. Just imagine the possibilities!
Call Douglas at 609-780-7129 to discuss either of these incredible deals. And remember me in your will.
DEVELOPERS ARE BUSY
While everyone sits home and listens to the national media trash the real estate market, developers are snatching up large properties and getting approvals for big projects. Like us here at JREA, they know that the market is going to come roaring back. They are positioning themselves to be ready to make windfall profits.
The owners of the Wharf restaurant on West Burk Avenue in Wildwood have one such project on the drawing board. On the south side of Burk Avenue they've proposed a five-story building, with the Wharf and parking on the first floor and 27 condominiums above. Across the street, they've slated 63 residential units in a six floor building.
A boardwalk would run 460-feet along Otten's Harbor, then another 300-feet or so to the restaurant. There would be 28 floating boatslips along OH, with 15 more for restaurant patrons.
The entire project will need Wildwood approvals and CAFRA approvals. If everything proceeds as planned, expect construction to commence in 2011 or 2012.
FALSE HOPES
Unfortunately, some sellers are stubbornly refusing to admit to themselves that there is nothing so special about their property that buyers are willing to fork out about $100,000 more than its real value. Their expectations are too high, as is their asking price.
In today's real estate market, it's all about PRICE. If the price is right, the property will sell. It's as simple as that.
For sellers, that means coming to the realization that it's not 2005 anymore. Those inflated prices of three or four years ago don't hold water today. If you really want to sell, you've got to be realistic.
Another reality of today's market is that the upgrades you may have done on your unit - such as granite countertops, hardwood or ceramic tile floors, ceiling fans, a ventless fireplace, etc - may not particularly add the money spent to the value of the home. That's especially true for properties purchased in 2004 or 2005, when properties were appreciating three percent a month.
Holding an overpriced property can cost you money. Add a monthly mortgage of $2,000, plus taxes, condo fees, etc, plus decreased value, and an extra year on the market can cost you $50,000. Drop your price instead and sell it now.
JEWELL REAL ESTATE AGENCY
We love to talk about real estate and our island. We're always glad to share our insights, observations, and vision with you.
Stop by our office at 5602 New Jersey Avenue and chat. Or give Joyce or Douglas a call at 609-729-8505. We answer phones 6am to 9pm EVERYDAY. That's service!
www.JewellRealEstateAgency.com
If anyone has ever had the pleasure of attending a Terry Watson seminar, you'll know what I mean when I say it's an experience you don't want to miss.
I attended the Triple Play Convention in Atlantic City along with another agent on Wednesday and went to Terry's seminar on Feng Shui. Needless to say, it was great. Terry keeps you laughing while giving you loads of information. Two hours is never enough to listen to Terry.
Feng Shui dates back over 4,000 years and is the belief that energy flows through buildings, and as a result, everything in your home or office should be arranged in a way that lets in the "good" energy.
Some of the interesting things mentioned were: You should put your bed where you can best see the door. This protects your head from a fast flow of energy. You should not be facing a mirror while you sleep because mirrors reflect your own chi (energy) at you while you sleep and block you from getting rid of past emotions. This is something that I had heard but never really paid attention to. I'm now driving my husband crazy trying to rearrange our bedroom.
Here is a list of Terry's top 10 energy drains: 1) worry; 2)debt; 3)overweight; 4)disrepair; 5)unfinished or unresolved issues; 6)filth; 7)disorder; 8)food; 9)negative people; 10)fear.
More and more people are using Feng Shui to bring health, wealth and happiness in their lives. I love to hear what experiences and thoughts other people have.
I wish you all a Merry Christmas and a happy, healthy and prosperous New Year.
Wildwood's SENSATIONAL 60s WEEKEND
April 23rd, 2008The Greater Wildwood Chamber of Commerce is presenting a fabulous weekend of fun at the shore. Starting with Friday, April 25th, Jerry Blavat will be hosting a '60s Record Hop. What a great way to start the weekend. Grab your honey and dance the night away!
Then on Saturday afternoon there is a Street Fair with free live entertainment featuring "TRU" and The Mahoney Brothers, contests galore, all kinds of street vendors, the Classic Car Show, a Doo Wop Back to the '50s Tour and so much more. How can you resist?
Saturday night is the Sensational '60s Concert featuring The Temptation Review, The Miracles, The Family Stone Xperience, and "Tru". I've been to the show every year, and it keeps getting better and better!
The festivites wrap up on Sunday with free entertainment in North Wildwood. For more information, visit http://www.gwcoc.com/ or call 609-729-4000.
You won't want to miss out on this great fun-filled weekend.
The Cape May County Association of Realtors is sponsoring a county-wide open house weekend Saturday, April 26 and Sunday, April 27. It will be widely advertised. It's a great opportunity for buyers to view a variety of properties and help them find just what they are looking for.
Jewell Real Estate Agency will be showcasing the following properties. For more information, feel free to call or email anytime. Contact Joyce Jewell at 609-729-8505 or cell # 609-780-7131. Check out our website for more details and all our featured listings and the entire MLS. http://www.jewellrealestateagency.com/
Wildwood Crest - 119 East Morning Glory Road - Saturday, April 26 and Sunday, April 27 - 1:30pm to 3:30pm.
2600 SF. 4 bedrms, 4 baths, 2 master suites , fireplace, sunroom, garage, $569,000
Wildwood Crest - 7601 Atlantic Avenue, Unit 203 - Saturday, April 26 and Sunday, April 27 1:30pm to 3:30pm
3 bedrooms, 2 baths, 1600 SF , ocean views, fully furnished, Pool $499,000
Wildwood Crest - 401 East Miami, Unit 401 -Penthouse - Saturday, April 26 and Sunday, April 27 11am to 1pm
Entire top floor - 4 bedrooms, 2 1/2 baths, fully furnished Oceanviews - $845,000
Wildwood Crest - 135 East Wisteria Road - Saturday, April 26 and Sunday, April 27 1:30pm to 3:30pm
4 bedrooms, 3 1/2 baths. Fireplace, garage, outside shower, fully furnished. $875,000
North Wildwood - 507 East 14th Avenue, Unit 101 - Saturday April 26 and Sunday April 27 11am to 1pm
3 Bedrooms, 3 baths, 2-story condo. Beach block. Fully furnished. $685,000
North Wildwood - The Tuscany - 1900 Surf Avenue - Saturday, April 26, 11am to 1pm
Several units available starting at $179,000. Pool. On-site property management. Laundry facilities.
Wildwood - 204 West Pine Avenue - Sunday, April 27 - 11am to 1pm
Single Family Home or Duplex - 9 bedrooms, 2 baths, furnished $329,000
West Wildwood - 7 Venice - Saturday, April 26 and Sunday, April 27 11am to 1pm
2-story condo - 3 bedrooms, 1 1/2 baths, BOATSLIP - $389,900
West Wildwood - 757 W. Glenwood Avenue - Saturday, April 26 and Sunday, April 27 - 1:30pm to 3:30pm
New Townhome - 4 bedrooms, 3 1/2 baths, garage, wet bar water views - $395,000
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I am the Broker/Owner of Jewell Real Estate Agency. We are a small family-owned agency and specialize in personal service. We answer phones 6am to 9pm EVERYDAY. We're never too busy to talk to you.
Jewell Real Estate Agency is a family owned and operated realty that lives up to its motto, "Modern Technology, Old-Fashioned Service". We answer phones 6am to 9pm EVERYDAY. When you deal with us, you are always working with Joyce and Douglas Jewell, two experienced real estate brokers. The buck stops here.
Jewell Real Estate Agency offers the ultimate in client service - we answer our telephones 6am to 9pm, 365 days a year. That's right! You can reach us at your convenience without the confinement of the "9 to 5" mentality. You're able to talk business with your realtor before going to work in the morning, or in the evening when your day is winding down. And no more frustrating weekends where you have to wait until Monday when the office is open again to contact your agent about a promising property you spotted in your travels.
Our highly visible Wildwood Crest office is open 8am to 5pm. That makes buying or selling a property on the island easy and convenient. The Swainton office, which is attached to our home, is open 7am to 7pm. If you list "FOR SALE" property with us, you have comfort in knowing that buyers and other real estate agents have access to information about your property 15 hours a day, not just the standard 40 hours a week.
Jewell Real Estate Agency is all about "information". The latest technology, instant access to Cape May County's Multiple Listing Service, digital camera imagery, e-mail and faxing, plus our web site (http://www.jewellrealestateagency.com/), make the gathering and exchange of information fast and easy. The office also has information at its fingertips which others can't supply - that vital info you need about schools, ratables, recreation facilities, services, etc.
Jewell Real Estate Agency is a member of the Cape May County Association of Realtors, the New Jersey Association of Realtors, and the National Association of Realtors. The office serves 14 of the county's 16 municipalities (Ocean City and most of Upper Township belong to the Atlantic County Board of Realtors) with sales of residential homes, condominiums and townhouses, lots, and commercial properties.
Douglas Jewell
Douglas Jewell brings a unique perspective to the business with his background in surveying and having built two homes for himself from the ground up. As an active environmentalist, smart growth advocate, and former newspaper reporter, he has accumulated a keen knowledge of zoning, planning, infrastructure, land use, and future trends in the county.
Douglas specializes in finding commercial properties for buyers, especially restaurants and bars, motels, apartment buildings, and Boardwalk enterprises. He has a good command of profit/loss requirements and debt service, justifiable property upgrades for increased profits, and which businesses have been under-utilized or poorly managed and show future increased profit potential.
Douglas has earned the prestigious GRI designation - which stands for Graduate Real Estate Institute - a degree held by less than 5 percent of all realtors nationwide. He followed that by continuing his real estate education and earning his broker status.
Joyce Jewell
Joyce Jewell brings her many years of intimate knowledge and expertise about vacation home sales and rental property management to the family business. She is particularly familiar with condominium and townhome properties in the Wildwood Crest and Diamond Beach areas.
Joyce has an uncanny knack for finding the right property for her clients and helping make their dreams come true. One of her greatest pleasures is having continuing relationships with her past clients, and she truly enjoys spending time chatting with her frequent visitors.
Joyce is proud of her achievements as a realtor, having obtained her GRI and broker designations, plus numerous sales awards. She is also connected to her community by being a member of the Middle Township Zoning Board.
HOME STAGING
Experienced realtors know the tip off when Buyers have found the right property - it's the twinkle in their eyes. The potential purchasers thoughts are reverberating, "This is it. This is me. I fit here." The property seems to figuratively wrap its arms around the Buyers as if to say, "Welcome Home!"
For Sellers, their mission is to make their home as appealing as possible to potential purchasers. The Buyers need to be swept off their feet when they first enter your home. First impressions are everything. It's that "warm, fuzzy feeling" that turns prospects into Buyers.
In the tight Buyers real estate market of 2007, which is vastly different from the Sellers market of 2002-2005, a property needs to stand out from the others in order to be sold in a timely manner at a good price. Plainly stated, there is currently an overabundance of residential inventory.
A Seller needs an edge - an advantage - to make their property stand out in the crowd. That's where Cape May Home Seller Consulting can help. We offer a neutral prospective - a skilled and trained third eye to transform, mold, and showcase your property.
Joyce Jewell brings her 28 years of knowledge as a New Jersey licensed realtor to Cape May Home Seller Consulting. In the last 10 years alone she has sold over 300 homes worth over $125 million. She has personally toured over 7,000 homes and condominiums with her thousands of clients. She's judged their reactions, heard their likes and dislikes, and seen firsthand the qualities and characteristics that captivate Buyers.
Joyce, besides being the broker/owner of her own real estate firm, has earned the distinction of being an Accredited Staging Professional (ASPTM) and she belongs to the International Association of Home Staging Professionals (IAHSP).
Cape May Home Seller Consulting assists both the Seller and their realtor by presenting the buying public with the best possible product - at a minimal cost to the Seller.
Statistics show that a staged home sells on average for 7% more money than the same home if not staged, and it sells in half the time. Put into dollars, that means an unstaged home that would sell for $300,000 would fetch about $320,000 when staged, and an unstaged home that would get $500,000 would bring in $535,000 if staged. Hmmm. Prospective Buyers also spend twice as much time viewing a staged home versus a home untouched by a staging professional.
Visit us at http://www.capemayhomeseller.com/ for more information.Call for your FREE Market Analysis
In today's "technology age" of internet access and email, fax machines and cell phones, there is still one facet of the real estate business that separates the pack - SERVICE.
That's exactly what you get with Jewell Real Estate Agency. Here's what we can do for you:
What this all means is that we represent you and your interests and will be able to negotiate the best price and terms for the sale of your property. At Jewell Real Estate Agency, service is our specialty.....and as always, you're more than a client, you're a friend.
When you're looking for KNOWLEDGE and PERSONAL SERVICE, look to Jewell Real Estate Agency.
FREQUENTLY ASKED QUESTIONS
Douglas Answers Your Inquiries
Do you handle rental properties?
Have I missed my opportunity to make money in the real estate boom?
I see properties reducing their prices. Doesn't that mean prices are going down and the good times are over?
I own a vacation property in the Wildwoods. Should I sell?
Can you find me an investment property that will pay for itself?
Why should I use a realtor? Can't I sell my property myself and save that money?
If I use Jewell Real Estate Agency to help me find a property to buy, do I have to pay you a commission?
So what exactly does the realtor do for me, as a Buyer?
A: No, we discontinued managing rental properties after the 2003 summer season. At that time, we were handling about 110 units and had two full-time maintenance men on our staff plus several real estate agents. It was overwhelming and we basically had no life of our own in the summer time.
After some soul searching, we decided that we had veered away from our original mission to provide "individual, personal service". So, we dropped our rental program, reduced our staff, and got back to concentrating on real estate sales.
A: Only if you think you have.
In 2003 and 2004, property values in the Wildwoods and much of Cape May County were rising about three percent per month, or by about one-third each year. Many folks bought in the beginning and sold later at a significant profit. By 2005, that dramatic escalation had slowed. Now, in 2006, property values are rising at a more stable one percent a month, or about 12 percent a year. That's still a good investment.
A: No. It's more an indication that the Seller set an unrealistic price in the first place.
Let's use a fictitious example. John Doe's property was worth $150,000 in 2001, before the boom. By 2003, it had jumped to $250,000, then $330,000 in 2004. So John Doe decides to list his property after the summer of 2005. After listening to advice from his neighbors and Uncle Harry, he figures it's now worth $440,000, so he lists it at $475,000. That's way too high. It's only going to fetch $370,000. Hence, you see an eventual price reduction when the Seller is getting no action on his property.
A: Often, the answer is NO. It all depends on what your next move would be. Are you leaving the island forever? Are you heading to the mainland to get more bang for your buck? Are you going from condo to single family home, or vice versa?
A common scenario is someone trying to sell their existing property, which may be outdated or in need of repairs, with the expectation that they can take those proceeds and buy a new condo or townhome and have no mortgage. That's unrealistic. A lateral move on the island is going to cost you money. If you are not willing to accept $100,000 to $200,000 in debt, you shouldn't sell. You won't sell your existing property for the same amount as you'll need to purchase new.
Selling that same unit with the hopes of finding a property on the mainland - which offers much more land, a garage, and room for a swimming pool - while not having to carry a mortgage, is possible. In that case, yes, put your property up for sale.
There are other good reasons to sell: 1.) you are looking to buy a vacation home in the mountains or another state, 2.) you don't use your vacation home down here much anymore, 3.) you're tired of lawn work and want a condo, 4.) you miss having a yard and are tired of the restrictions of condo life, or 5.) you like the prospect of selling this property and using that money to eliminate the mortgage on your primary home.
A: Probably not, unless you're willing to put a lot of money down - more than I'd recommend.
Some Buyers come into the market searching for a property that will carry the mortgage and taxes through rental income, whether it's a condo or a multi-family property. Putting a traditional down payment of 10-20 percent, that's not going to happen. It will be necessary to fund some of the yearly expenses out of your pocket. That's the reality.
That's not to say that you can't make money buying an investment property. However, your profit comes through the equity you build as prices steadily rise and you don't realize that profit until you sell the property.
A: Absolutely not! All commissions are paid by the Seller. That commission amount has already been agreed to and signed by the Seller and his realtor back on the day the Listing Agreement was originally signed. You owe no commission and we charge you no fees whatsoever.
A: In some instances, Sellers do successfully complete a real estate transaction on their own. But they have to know the pitfalls, or else their attempt to save themselves money can actually end up costing them money.
One problem with selling your own property is that almost every potential Buyer immediately starts calculating what the commission would have been with a realtor involved, then they deduct that from their bid. They feel that amount is theirs to save, not the Sellers. So you are back to the same amount of money, but without the expertise of a realtor.
Also, most people are not good negotiators. So the Seller tends to buckle under at a lower price, make concessions that are unfavorable, or settle for terms weighted toward the Buyer. Even if the Seller gets his way, there are often hard feelings between the two parties that fester during the one to three month duration of the transaction.
A: Let's compare your transaction to a football team. You are the owner of the football team. The realtor is your quarterback. You are in control, but the realtor oversees the action and makes sure all the team members are performing as required and in a timely manner. Other members of your team are a mortgage person, title company, insurance company, surveyor, home inspector, pest inspector, and fire inspector, and sometimes a plumber, electrician, contractor or other service specialist.
Your relationship with a realtor begins with the search for a suitable property. Especially in a vacation home market like Cape May County, the realtor has valuable local knowledge that is especially helpful. The realtor knows what neighborhoods have good resale value, what floor plans are outdated and not functional, where new construction projects might take away that nice view or a strip mall might change the character of an area. There are dozens and dozens of things that your realtor - who lives locally and follows local land use decisions in the newspapers - knows that can save you much heartbreak and sorrow. You can't put a price on that information!
Once you and your realtor find that right property, it's time to put in a bid. Your realtor knows how to structure that bid so that the terms are favorable to you and your circumstances, without going overboard and offending the Seller. The negotiations proceed between your realtor and the Seller's realtor, with each realtor reporting to his client every step of the way. The Buyer and Seller often never meet until the day of closing, and without the strain of having negotiated face-to-face the parties usually have an amiable transfer of title and part friends.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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