Halloween was the only reason to be scared in Ocean Township…
Our beloved Ocean Township is by no means immune to the economy but don’t ever forget, people will always need places to live and people will always own places to sell - No matter what the media says, no matter how low the market may go, no matter how many banks fail, Real Estate will always happen. Since the Stock Market and the Housing Markets are inversely related, the good news is that with a soft stock market, now is a great time to make solid, logical, long term investment in Real Estate. With so many good deals on the market and a 40 year low on interest rates falling below 6% and quite possibly more over the next few months, wise investors committed to a long term gain and maybe open to rentals, have a great selection to choose from. We need to turn off the television and call a Realtor to show us how our local market is doing. Now, more than ever, is it time to get buying advice from a person committed to Ethical transactions. Real Estate is local and a Realtor and neighbor like me is the best person to guide you through the purchasing process as well as the selling process.
Why hire a Realtor? A qualified, competent real estate agent will help you navigate the myriad of decisions that arise when buying and selling a home. An agent provides value to the homeowner in many ways:
1 Pays for all marketing and advertising costs.
2 Adds experience and expertise in all aspects of the sales process including marketing, financing, negotiations and more.
3 Handles all showings.
4 Brings an entire network of known, trusted real estate professionals. If your agent doesn’t have the answer, he or she likely knows someone who does.
5 A Realtor always has your interests in mind so you always have someone on your side.
6 Can handle and advise on all price and contract negotiations.
7 Provides you with all the possible options and opportunities without holding back.
8 Gives an unbiased, realistic view of your home and your options. Unlike buyers and sellers, an agent has no emotional attachment to property.
9 Has the knowledge to help you ask the right questions.
10 Being a third party, potential buyers are more likely to tell your agent the truth about your home, even if it is unflattering. This objective viewpoint will help you make the necessary changes to get your home sold.
11 Your time is valuable. A real estate agent allows you to spend your time how you want, when you want.
In September, 15 sales closed in Ocean Township, the same amount as in August with a few differences. The average closed price rose by almost $35,000 per transaction, the average list price rose by over $55,000 and on average people are still receiving over 91% of their asking price with average days on market being 87 versus 103 in August. As long as sellers stay realistic in their asking price and are willing to entertain offers and negotiate, things will continue to move smoothly throughout Ocean Township.
First time home buyers can get a $7,500 tax credit. Congress intends for the credit to make housing more affordable. This tax credit is only available for purchases closed by July 1, 2009 so if you’re thinking taking advantage of this, start your search through your agent very soon.
• There are income limits: $75,000 for single purchasers, $150,000 for couples.
• The credit is not made to the buyer in the form of a check instead the credit is an itemized deduction on federal tax returns. Consult with your tax advisor.
• It effectively reduces the purchase price by $7,500.
• The credit is limited to first time buyers.
• The credit must be repaid (at no interest) at the rate of $500 per year for 15 years.
• However, if the home is sold, the seller will not repay more of the credit than they realized in profit.
Recent federal housing legislation did home buyers a favor in high-cost housing markets by raising Federal Housing Administration (FHA) loan limits. If you’re not aware of the term ‘loan limits’, you should be.
Loan limits are the ceiling amount for FHA insured loans which are generally viewed by lenders and Realtors as a lower cost funding option, especially for first time buyers. Here’s why:
• Loan limits have increased to $729,750 in Monmouth County. That’s nearly double the former limit.
• FHA loans require as little as a 3% down payment.
• Credit scores, while important, are not as stringent for FHA loans.
• FHA loans can be fixed rate or adjustable.
When we listen to the media they focus on the negative because it is easy drama. Instead of stating: “The largest single day drop in Market History”, they could have and should have said something more like: “Today was a roller-coaster ride full of excitement with a stronger finish than expected”! Both are interesting and I prefer the latter, unfortunately American media loves the former. Keep up the positive outlook, even if the media won’t! I strongly believe in realism, but there is no advantage in being negative. When the real estate market was at its boom, there were challenges just like this market brings its unique challenges. You have to learn to adapt and keep a positive attitude.
If you or anyone you know have any Real Estate related questions, feel free to contact me via telephone or email 7 days a week, because your goals are my priority.
Scott A. Miller
Realtor Associate
Prudential Zack Shore Properties
Cell 201-538-4177
BeachViews.com email: Smiller@pruzack.com
