Mullica Hill, NJ

With rising Mullica Hill real estate sales, many people looking to invest are starting to wonder if Real Estate Investment Trusts are once again a potential opportunity. Home sales have gone up for the past six months in a row, homebuilding price indexes are rising and investors are turning optimistic. Is it really a good time, though?

What are REITs?

REITs are Real Estate Investment Trusts. These trusts invest in property then sell shares to people or businesses. If the REITs make a profit, that profit is split between shareholders as dividends. Many investment trusts cover a full portfolio of Mullica Hill real estate and other real property, rather than just one property. In the past, they've been incredibly popular because they trade like stock and dividend yields are normally at the top of the market.

Not All REITs Are Created Equal

It's important to remember that real estate investment trusts come in different shapes and sizes. As well, REITs report rental income, rather than sales, as revenue. Keeping rental income in mind, it becomes obvious REITS with long-term leases and high occupancy rates are generally better than others to invest in. Also, the higher the occupancy, the easier it is to raise rental rates (although this is probably not good business at this time due to the current real estate market).

Investing in REITs Now

If you're thinking of investing in REITs now, don't forget that they may only benefit in a particular market. For instance, many individual investors are purchasing unfinished homes at steep discounts, investing a little more to finish the homes and then renting them out. As most real estate agents, blogs, articles and magazines will tell you, the rental market is doing quite well, so this may be a viable option for you.

No matter what type of Mullica Hill real estate you're thinking of investing in, however, remember that any type of investment is risky. Is it time to invest? Ultimately, only you can make that decision. Do your research, check your funding, then - and only then - make an informed decision.

If you're interested in real estate investments, I can help. Call me at 856-308-5989 or email me at kim@kimcanhelp.com for more information.

Links: www.KimCanHelp.com www.KimThomasHomes.com

Real Estate Investment Trusts

http://investopedia.com/terms/r/reit.asp

Dividends

http://www.finpipe.com/divexpl.htm

Rental income

http://www.irs.gov/businesses/small/industries/article/0,,id=98895,00.html

I'm going to tell something that may (or may not) shock you - Mullica Hill real estate agents are a dime a dozen. No, no, really. However (and this is a big "but"), great agents are few and far between. Does that mean the others are out to scam the unwary buyer and seller? Not at all.

So what's the difference? One of the biggest differences is in what they know. A great agent knows what's going on in their chosen city and throughout the neighborhoods. They do their homework and are seldom surprised by rising trends.

What kind of homework? I'm glad you asked!

1. Keeping an eye on local pricing. Mullica Hill real estate agents have to pay attention to the prices in their area. Are they high? Are they low? Are they steady? They have to know so they have an idea of which houses are priced at "fair" market value and which are overpriced or underpriced.

2. Knowing what's up-and-coming. Agents have to stay aware of new infrastructure possibilities. For instance, there may be plans for a new shopping center to be built. That shopping center will help the community grow, and could become an attractive addition for homebuyers in the area.

3. Who's taxing and how much? In large metropolitan areas, you have two towns side by side with completely different tax bases. Town one may have rising property taxes, while town two has consistently low property taxes. Those towns with lower property taxes are generally in higher demand than others.

4. Watching the surrounding area. If a large area is overpriced, that generally means the outskirts are going to become more in demand. As well, if there are any major train or bus routes getting ready to be installed, these places may become more desirable.

5. Which school ranks best? Schools moving up the A-list of a state mean desirable places for parents. Agents who keep their eye on school rankings are agents who know a particular area's target market!

In short, great Mullica Hill real estate agents keep their fingers on the pulse of the city's real estate market. This helps buyers looking for the perfect place, and sellers looking for the perfect buyer. Remember - your agent doesn't have to know everything. They just have to know what's important to your housing needs!

If you're ready to work with a real estate agent who's in the know on what's happening in this area, give me a call today at 856-308-5989 or email me at kim@kimcanhelp.com

Kimberly Thomas, Broker-Associate; www.KimThomasHomes.com

Links:

1. Market value

http://www.wisegeek.com/what-is-market-value.htm

2. Property taxes

http://www.life123.com/career-money/real-estate/property-taxes/what-you-need-to-know-about-property-taxes.shtml

3. School rankings

http://www.greatschools.net/

Are you looking to buy new construction? Many people are, but just as many aren't aware that their newly built Mullica Hill real estate can come with options and add-ons. In addition, they see a handsome price on new construction and think they've stepped into an unbelievable deal, not understanding that the price they're looking at is for "bare bones."

Here are just a few of the options and upgrades you might want to have your real estate agent talk about with your chosen builder. Your agent can be a great go-between for getting what you need from the builder, so don't overlook the value of bringing your own Realtor to the table when buying new construction:

• Flooring - The "standard" for flooring is cheap carpet and thin padding. If you're going for hardwood floors, you also may not get what you envision. An important thing to keep in mind is that most builders make their money on the upgrades and options. While they may offer upgrades for high quality flooring, it may actually be cheaper for you to buy it yourself and not through the builder. Do your research and either have your real estate agent try to negotiate down to a price closer to what it would cost you, or have the builder use the cheapest material possible and ask them not to glue or tack it down.
• Plumbing and fixtures - Whether you want improvements or additional plumbing and fixtures (such as for a wet bar or a different location for the washer and dryer), these are easier to do before your new home in Mullica Hill is finished.
• Appliances - Check to see what brand and model the builder expects to use for your appliances. Most times, your real estate agent can at least negotiate a better model, if not your preferred brand.
• Doors - Doors, especially interior doors, are usually thin, non-insulated and easily damaged. Although this may be fine in some areas, other areas may need better quality doors. This is a definite place for your real estate agent and builder to negotiate. A certain quality of product is expected in Mullica Hill real estate and new construction especially; make sure you're not skimping now, at the cost of having to upgrade to sell later.

Make sure you understand your options, upgrade packages, and deals for your new Mullica Hill real estate project that you're undertaking, before signing the contract!

If you're thinking of buying new construction, let me negotiate the best price, and all the details, for you. I've saved clients money and gotten them special deals that the builder wasn't offering to everyone. Call me before you start shopping for your new construction at 856-308-5989 or email me at kim@kimcanhelp.com for more information.

Kimberly Thomas, Broker-Associate

Realty Executives, Voorhees, NJ 08043

856-308-5989

Links:

www.KimCanHelp.com

www.KimThomasHomes.com

1. Options and upgrades

http://www.isnare.com/?aid=219903&ca=Real+Estate

2. High quality flooring

http://www.consumersearch.com/flooring

3. Interior doors

http://www.bobvila.com/HowTo_Library/Interior_Door_Basics-Interior-A1785.html

I came across a customer question this morning. A potential buyer had some confusion about the terms assessed value and appraised value. He asked if the home that he bid 119k on but was "appraised at 53k" would be OK to purchase and would the bank loan him the 119k. This happens a lot with buyers, so I thought I'd share. Here was my answer:

Hi JC,
I have a feeling that you are looking at the field in the listing for the "assessed value". That is the township's assessment of the value of the home at a certain point in time. In NJ that assessment date can be as far back as 10 years so it often does not accurately reflect the current market value of the home.

Yes, a bank will lend more than the assessed value, as (in NJ, anyway) it is often inaccurate and too low -not reflective of the market value of the home -- but it must appraise.

Here's the process: Once you place an offer on a home, your lender will send out an appraiser. He or she will look at recent sales comparables and other factors to determine a value. As long as the home appraises for what you offered or more, then you're fine. So in a case where a home is assessed at 53k, the asking price is 135k and you offer 119k, as long as the appraised value is 119k or more - you'll get the loan (subject to other qualifying factors).

However, NO, a bank will not usually lend more than the appraised value of the home. It's just not good business to do so. You could pay the difference of the contract price and appraised price - but that's just not smart (unless the difference is miniscule, and I'd never recommend that a client of mine do that - especially in this market).

That said, there is something called an FHA 203-k rehab loan which will give you additional money to fix up a property, but I believe the limit is 35k over the contract price. The property has to be able to appraise at total of the contract price + cost of repairs when all work is done. So, in a simplified example: If you're offering 50k on a home and it needs 30k in repairs, as long as the value of the home will be equal to or greater than 80k when all repairs are done, it will be eligible for the FHA 203k loan. Of course there are other limits and guidelines to this program. If you need information on good mortgage loan officers, I can provide you with a few referrals. Give me a call or shoot me an email.
Kim

email: kim@kimcanhelp.com

www.KimThomasHomes.com