Michael Adams

What happened in our marketplace January

According to the Garden State MLS, the month of January, 2010 ended with 25 Franklin Township single family residences sold. Sale prices ranged between $120,000 and $649,000. The average** selling price for the month is $407,340. Average days on the market (DOM) for January was 74.

The month ended with 343 active listings on the market ranging in price from $110,000 to $999,500. The month ended with 82 residential properties under contract.

That's what is happening in the marketplace now, February 8, 2010.

If you have a question about a specific property in town, or stats for surrounding areas, please don't hesitate to contact me.

**A mean or average price is calculated by adding up all the values in a distribution and then dividing the sum by the total number of values contained in that distribution. To find a median value, one takes all of the values in the distribution, sorts in ascending order, lines them up and finds the middle value.

*Info. deemed RELIABLE but not GUARANTEED - ALL Room Sizes are Approx. The links will expire 60 days from 2/08/2010.

What's happening in the marketplace

Carriage Homes at Quailbrook townhomes are located near Demott Lane featuring models ranging from the 2 bedroom, 2 bath ranch style homes to 2 bedroom, 2.5 baths two story homes with family room and a second floor den. Then there are 3 bedrooms, 2 ½ bath homes with family room. All homes have single car garages. Many have a fireplace which might be either gas or wood burning. Some units offer French doors leading into the large master bedroom and some have a greenhouse windows in the kitchen. Some units also have decks.

According to the Garden State MLS, currently there are 3 homes actively listed for sale in this Franklin Township Townhouse development, at the time of posting. One is a 3 bedroom-2.5 bath, 2 story townhouse. The other two are single story ranch style 2 bedroom, 2 bath townhomes. View these three active listings

There has been one Carriage Homes at Quailbrook sale since my last report to you; 331 Hazlitt Way, $250,000, a 2 bedroom 2.5 bath two story townhouse. This transaction was a short sale.

That's what's happening in the marketplace, now. February 8, 2010

If you have specific questions regarding a Carriage Home property, email me at mjadams@century21.com, follow me on twitter, facebook or call directly: 908.583.0409

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Source: Garden State MLS, L.L.C. **Info. deemed RELIABLE but not GUARANTEED - ALL Room Sizes are Approx.** The links will expire 60 days from 2/08/2010.

The ten basic steps of purchasing a home - Finding your home and making the offer

So, now you have shopped for a mortgage and have been pre-approved for a mortgage loan. That's fantastic! You are armed with the advantage of having a lender's backing. That send a strong message to your seller. And, most importanly at this stage, DO NOT make any major purchases before closing on your new home. I will repeat this; over and over!

The National Association of REALTOR® (NAR) states that nearly 90% of home buyers begin their search online. It's very likely that you have already been seaching on Trulia.com, Zillow.com or another third party real estate site. It's time to increase the accuracy of what homes are actively listed by using real time Multiple Listing data. Before you begin your advanced search, you might wish to decide which home features you feel are essential and which are optional, such as a backyard, basement, number of bedrooms/bathrooms, etc; as well as what to stay away from. The Department of Housing and Urban Development (HUD) offers a basic but useful wish list that you can work from and share with your REALTOR®.

Now that you have your wish list completed, you can continue searching for your dream home on your own or seek the assistance of a local REALTOR® by have him/her send regular emails or alerts that fit your criteria. If you remain on your own, I recommend searching on a local REALTOR® website, such as mine, that offers a wide search or Realtor.com.

If you are considering homes that are undergoing a distressed sale due to financial hardship such as the purchase of a short sale, bank-owned property or foreclosure be advised that these transactions often take longer because a third party must approve the sale. Frequently these homes are also sold "as is" and may need repairs. Partcularly, if the house needs repairs you might wish to concider HUD's 203K mortgage program.

It's important to keep an open mind when visiting properties your REALTOR® feels may work well for you, just as it's also vital to be upfront and honest with your REALTOR® about your preferences and financial situation to ensure that you purchase the best home for your needs. Focus on the house, not how it is furnished. A little trick when assesing the true size of a room is to look at the ceiling to determine it's size. Oversized furniture may give the illusion that the room is smaller than it actually is. Also, try to look beyond the things that can be easily changed such as wall coverings and carpets.

Work with your REALTOR® when attending public open houses. When looking in Somerset, New Jersey and surrounding areas, you can find them easily at the blog: Somerset08873. You want your REALTOR® to accompany you. I covered agency when choosing your REALTOR®, but it is worth repeating because you do not want to weaken you negotiating postion by providing too much information to the seller's agent: (http://tinyurl.com/rdo7vq) Another thing with having a buyer's agency agreement; it ensures your REALTOR® is paid after negotiating a sale with a FSBO owner.

After you find a home that you are serious about buying, work with your REALTOR® to come up with an appropriate offer. Be mindful of your financial circumstances, down payment amount and closing costs when negotiating the sale price. Each house and case is different. There is no uniform method for making an offer. Supply, demand, the condition of the home, how long the house has been on the market, and your personal circumstances with regard to how soon you need to close on a home all come into play when framing your offer. You might also weigh in how much you really want it. If you REALLY want it, make your best offer. Keep in mind that a properly priced or under priced home may draw multiple offers and quickly.

Have your REALTOR® run a Comparative Market Analysis (CMA) for homes that sold within the last three months and work from there. If the price of the home is on target with the market, then you may have to go with market price unless you get really lucky and/or the seller is highly motivated. In an active market, you're likely to lose out bymaking a low bid or lowball offer; that's a discison and strategy you will have to make.

If you have additional questions or comments, please contact me here, by phone or email, on facebook and/or twitter. Next, attorney review and shopping for home owners insurance.

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The ten basic steps of purchasing a home - shopping for a mortgage

Ok, so you've figured a ballpark figure of how much house you can afford and you have checked your credit score. Now it's time to shop for a mortgage; step three. It is recommended that you check with several mortgage lenders to compare costs and interest rates. Although there are different types of mortgage lenders, such as brokers and direct lenders, it is often more important to choose a good loan officer, not the institution.

Each type of lender has strengths and weaknesses. Quality within each branch or office can vary, depending on the loan officer, the support staff, and a variety of other factors.Loan officers have two jobs. One is to be your advocate in getting the loan approved. The other is to deliver quality loans. You want someone who has proven dependable and ethical in the past someone you can trust. Don't forget to check with your credit union, if applicable.

You will want to obtain a mortgage pre-approval, not just get pre-qualified; which will require reviewing your outstanding debts, income and running a credit check. A pre-approval signals to a seller that you are in a strong financial postion when making an offer.

Currently, the overwhelming number of mortgages written are FHA loans. Effective January 1, 2010 new Real Estate Settlement Procedures Act (RESPA) rules went into effect. RESPA is a consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by the US Department of Urban Housing and Development HUD. Additionally, there are still conventional and VA loans.

Here is a list of questions you might consider asking the lenders you meet with:

· What is the interest rate? How long is that rate available?

· Are the rates fixed or adjustable?

· If it is adjustable, how will the rate and loan payment vary?

· What is the length of the loan?

· Can you quote points in a dollar amount? Finding out this amount in dollar figures will help you make an informed decision.

· What fees are there? What does each of these fees include?

· What are your requirements for down payments? Are there any special programs available?

• Is PMI (private mortgage insurance) required? What would the total cost be?

Under the new rules you will recieve a Good Faith Estimate. Here is a quick breakdown of the new (GFE) form.

· The first page contains basic information about the loan product, applicable deadlines, and escrow requirements.

· The important dates section states the deadlines after which the loan terms contained in the GFE are no longer available

· The loan summary details the specific terms of your mortgage.

• The second page is a list of settlement service charges such as loan origination charges, title services, transfer taxes*, etc.

*Homes sold for more than $1 million in New Jersey are subject to a transfer fee that must be paid by the buyer. All other transfer taxes are usually paid by the seller. Calculate the NJ Realty Transfer Fee

On the GFE, you'll see costs categorized by tolerance. Tolerance categories indicate how definitive the estimates are, and which ones might change from the GFE to the HUD-1 form.

· Zero tolerance category - The actual charges at settlement may not exceed the amounts on the GFE.

· 10 percent tolerance category - The sum of the actual charges at the time of settlement may not be greater than 10 percent of the cost on the GFE

• No tolerance category - The amounts charged for all other settlement services on the GFE may change at settlement because these items are usually obtained by the borrower, separate from the lender.

Your mortgage lender can provide a more comprehensive explanation of the mortgage buying process. If you don't already have a loacal mortgage lender, I would be happy to provide list for you. As always, you can ask a question here, facebook or contact me directly. Next time....Finding your home and making the offer

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Franklin Township - Sunday, January 31, 2010

If you qualify, there are only 91 days remaining to take advantage of the first-time and repeat home buyer tax credit! If you wish more information, don't hesitate to contact me.

Regardless of the listing agent, office or MLS service; if you are not already contracted with an agent, give me a call or send an e-mail and I will be happy to arrange a personal tour of any listed property or open house that you might find on the Internet, print media or yard sign.

There is no need to feel overwhelmed. Click for Buyer Advice. And most importantly, as a buyer read why you might not want to venture out on your own... http://tinyurl.com/acv5zx

At the time of posting the following properties are scheduled for an Open House, this coming Sunday. Click here to view pictures of this week's Open Houses. The following are featured homes this weekend in Franklin Township and surrounding areas from Century 21 Moretti Realty http://tinyurl.com/c64npd

Listing information provided by Garden State MLS **Info. deemed RELIABLE but not GUARANTEED - ALL Room Sizes are Approx.** The links will expire 60 days from 1/29/2010.