Franklin Lakes, NJ

I lived in Franklin Lakes for 20 years, and most of my sales and listings are in Franklin Lakes, so I know the town very well. Franklin Lakes' taxes have always been on the low side --- lower, for instance, than Allendale, Ramsey, Wyckoff, HoHoKus, Ridgewood, and especially Glen Rock. So when buyers complain to me about the taxes on my $1.7 mil listing, I launch ionto my soliloquy about how taxes work. All too often, towns over-assess homes, then make the rate lower thinking that homeowners can't figure out their taxes are still higher than they think they should be. For most of the 23 years I've been in the real estate industry, I've complained to various towns that it would make everyone's life easier if they would assess homes at their real market value, and not some random number a company in East Jabib comes up with. Then, you go over the town budget, and figure out how much tax revenue you'll need to pay the town's bills. That gives you the tax rate! So much easier to explain to a homeowner! And you don't end up with hundreds, even thousands, of tax appeals.

The simple truth is that when you choose to live in a town with great schools, a lot of services, and access to NYC transportation, somebody has to pay for all that, and it's always the taxpayer. If you want really low taxes, move to Florida. But, like a lot of my clients, you'll probably end up moving back North. Bergen County, and especially NW Bergen County, is a wonderful place to raise a family, it's close to NYC, ski resorts, hunting and fishing (two of my least favorite sports), and, of course, the "Jersey Shore." (For those who need something more upscale, the Hamptons and Montauk are only 3 hours away.)

If you want to be concerned about taxes, start wondering what will happen to tax rates when the backlog of mega-mansions don't sell. After all, it wasn't just the middle class that got whacked by this recession. Buyers of all incomes have begun to rethink their housing priorities, and most of them have realised they don't need a 10,000 sf home that needs renovating. They're now looking at 5-6,000 sf newer homes, and considering a vacation home. What happens to the town's budgets when no one is paying those $50k tax bills?

That's another blog.

New Trails at Franklin Lakes Nature Preserve

The New York-New Jersey Trail Conference has agreed to blaze and maintain trails at the Franklin Lakes Nature Preserve, located on Ewing Avenue and High Mountain Road. The Trail Conference has already cleared and blazed the two main trails: the Preserve Shoreline Loop, a 1.5 mile loop trail that circles the entire upper basin of the Nature Preserve; and the Island Bridges trail, a .5 mile trail which starts at the Preserve Shoreline Loop trail and extends into the scenic island areas. Another new feature is the informational kiosk which is located adjacent to the dam and parking area. The kiosk will exhibit maps and other Nature Preserve information.

John Moran, chair of the North Jersey Trails Committee of the New York-New Jersey Trail Conference, who was instrumental in blazing the new trails, commented on the new trail network: "Helping to build the trails at Franklin Lake Nature Preserve has been a wonderful experience, with more improvements to follow. The Preserve is truly an amazing crown jewel amid attractive surrounding suburbs. The big beautiful lake is an eye catcher--with fishing, birding, and picnic opportunities along with plenty of scenery for photography. The forests, islands, dikes, dams and smaller ponds provide a wide variety of terrain and habitat to amble along with family and friends."

Since 1920, the New York-New Jersey Trail Conference has partnered with parks to create, protect, and promote a network of 1,800 miles of public trails in the New York-New Jersey metropolitan region. The Trail Conference main office is located in Mahwah, New Jersey.

The Franklin Lakes Nature Preserve, formerly known as the Haledon Reservoir, was acquired by the Borough of Franklin Lakes in 2006 from the Borough of Haledon, and was opened to the public in June 2011. It is a 120 acre site dedicated to hiking, fishing and birdwatching, which is open dawn to dusk every day. The entrance to the Nature Preserve is located on High Mountain Road.

Franklin Lakes Councilman Bill Smith encourages the public to experience the new trails, "When one considers the potential alternative uses of this property by private developers I believe the permanent preservation of these beautiful 120 acres in Franklin Lakes was essential to maintain the character of this community. I am thankful for the foresight of former Mayor Donch and the public officials who negotiated the purchase and obtained the State and County grants which financed the majority of the cost. I encourage everyone, especially anyone who still questions the decision, to spend a few hours on one of the trails now available to the public."

I moved to Franklin Lakes NJ from Asbury Park, in 1971. To say it was a huge transition would be the consummate understatement. There was no place in Asbury Park, or the surrounding communities, that you couldn't get to by bus. I was so used to mass transit that when I moved to Franklin Lakes, my first visit was to a neighbor to find out where the bus stopped. The quizzical look on her face should have told me everything I needed to know about living in Franklin Lakes. Her response to my question, "Where does the bus to town stop?," was "First of all, there's no bus, and second, there's no town in Franklin Lakes." Well, to be fair, there was and is a town. It's just not the kind of town you walk or take a bus to. Asbury Park had the traditional butcher, baker and, yes, even the candlestick maker. In fact, there wasn't much you wanted or needed that Asbury Park didn't have. That all ended with the riots of 1968. But, I digress.

I lived in Franklin Lakes for 20 years, and raised my three children there. It was a far cry from the 2-family house we had called home, but nothing quite like the luxury homes in and around Franklin Lakes I've been marketing for 23 years. Sadly, that market got hit hardest when the "real estate bubble" burst, beginning in 2006. While I don't expect the 10,000 square foot homes to bounce back, perhaps at all, the market up to $1.5 mil. seems to be reviving. It's hard to convince sellers whose homes have been devalued by 15-30% that things are "getting better," but they are. While no one believes it when it's happening, it's almost never good when real estate prices skyrocket. We saw that after the October, 1987 market crash. Although the housing market didn't feel it until the early 1990s, the result was devastating. I remember far too many sellers having to bring money to the closing in order to pay off their mortgages.

I had my own home on the market, starting in 1988. I listed it at $1,165,000. An offer of $1,065,000 came in very quickly. Unfortunately, my ex-husband thought we should wait for a better offer (this is why I call him "my ex"). Within 2 days, the buyers had bought a different home. It wasn't until 1991 that we sold our Franklin Lakes home --- for $715,000! So when sellers tell me I don't understand how difficult this market is for them, I tell them I understand better than most people.

The thing I also want them to know is that it took 15 years for that house to be worth over a million dollars again. This is what happens when the real estate market skyrockets. There's just no place else to go but down.

But, I'm optimistic about 2012. Franklin Lakes' Luxury Market is coming back! It's not going to skyrocket, but that's a good thing. Email me at kate@kateconover.com, and let's have a conversation about it.

If you've been looking for a home, you already know mortgage rates are ridiculously low. It's what's been fueling the increased activity in the luxury home market. Today's rate on a 30-year fixed mortgage, from $625,500 to $1 mil, is 4.375% A 15-year fixed rate is 3.375%. With prices and mortgage rates way down, luxury homes should be flying off the market. After all, there are still high-income buyers out there, But, I think there's something that keeps some luxury homes from selling, and it's not the price. It's the size., While some people still covet 10,000 sf homes, most buyers I'm working with are young, and they want a life outside their home. While they want a spacious home, preferably new or new-ish, they don't want a home over 6,000 sf. While I don't claim to know every luxury home buyer's wants and needs, the prototype of today's buyer seems to be:

* Under 40

* Needs 5 bedrooms, at least 3 baths and a 3-car+ garage

* Wants to spend $2-2.5 mil

* Doesn't want a pool, but wants property large enough to accommodate one should they change their minds

* Wants new or no more than 10 years old

* Wants a minimum of an acre of property

If the mega-mansions continue to sit on the market without selling, what happens to them? Even if these homes get reduced to make them affordable, what happens to the taxes on them? If the home is currrently assessed for $3 mil, but it only sells for $1.3, the taxes have to be reduced. In towns like Franklin Lakes, that would mean a huge loss in revenue for the town. How do they make that up?

We have already seen a marked change in new construction. First of all, there's very little, if any, spec homes going up, and when they do, the price is inevitably far lower than we've seen in towns like Franklin Lakes. My guess is buyers start demanding smaller homes with top-of-the-line luxury amenities. Builders have failed to stay current with who their buyers are and what they want. As Bob Dylan told us, "The times they are a-changin.'"

Franklin Lakes, NJ home sales update for 2010 vs 2011

Franklin Lakes 2010 Average Home Sold Price:$1,043,763
Franklin Lakes 2011 Average Home Sold Price: $1,036,301
-1% Change

Looking for a Franklin Lakes home for sale?

Visit: www.BergenCountyNJHouses.com or www.ReMaxAgentBergenCountyNJ.com

2010 Total Sold: 98
2011 Total Sold: 95
-3% Change

2010 Average DOM: 122.0
2011 Average DOM: 96.0
-21% Change


2010 Total $ Sold: $102,288,779
2011 Total $ Sold: $98,448,562
-4% Change


2010 Average Sold Price:$1,043,763
2011 Average Sold Price: $1,036,301
-1% Change

Looking to buy or sell a Bergen County home? Wondering what your Bergen County, NJ home is worth in today's real estate market? Have a Bergen County real estate question? Call your Bergen County real estate agent & Bergen County REALTOR©: JEANA COWIE at: Cell 201-982-2200 or email me at jmcowie@optonline.net. Visit my website at www.jeanacowie.net All information is deemed reliable, but is not guaranteed. Subject to errors and ommissions

JEANA COWIE ABR, GRI, SRES Broker Associate Office Phone: (201) 599-1100 Ext:348 Contact Phone: (201) 982-2200 jmcowie@optonline.net RE/MAX REAL ESTATE LIMITED

--- Information herein deemed reliable but not guaranteed. 1/27/2012 10:42:10 AM ---

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