REAL ESTATE IN KEARNY/NEWARK....FROM A REALTORS VIEW

I DON"T KNOW.  People are still working and paying the bills.  People are still striving for the best for them and their families.  People are still looking at the Real Estate advertisements and Homes Magazines and all those internet sites that offer glimpses into other peoples homes (As they look for homes).  MMM, I think it's called window shopping for window shoppers.

So, why isn't anyone buying?  Why do they look and not sign on the dotted line and make offers?

I think it's because they've all bought into the mass hysteria of Wall Street (whose creative financing helped develop this real estate lull).  They (they means you, the news reporters, the economists, and some of the "people") believe that this is not the time to buy a home. This is not the time to trade up, trade down, buy a vacation home, buy a retirement home, etc.  This is a time to wait.

WAIT?  Who the heck is kidding "Them"?  This is the same group telling us to wait, that tells us to income average when you buy stock, or to make monthly payments towards a retirement account and not wait for the big deposits.  Why, and who are "They" to tell us to NOT buy a home?  I don't understand.  Someone is spreading the word NOT to buy homes, all the time the value of the dollar is dropping and WE keep on paying rent.  I understand that there are an unfortunate few that can no longer afford to keep their homes, and for them, I am sorry.  I am not sorry for the greedy leveraged investor that bought homes with nothing down at high interest rates and counted on the constant appreciation.  They teach you better in school, but it was a time for easy money and many took advantage of it.  (Nationally, the average is 3% turnover at any given time due to affordability, death, divorce or the need to move.)  What I don't understand is why wait?

Home prices are lower than last year, AND the interest rates are the same or better than last year. (Don't "They" tell us never to try to time your stock purchase or your investments... just do it?)  There is a good amount of inventory, and the realtors are more than happy to help ANY buyer.

Realtors have access to the local banks, loan officers, termite inspectors, know the local construction office official and inspectors. WE are waiting for YOU the public, to stop listening to THEM and start looking for a home for YOU and YOUR FAMILY.   Wouldn't you like to stop paying rent?  Wouldn't you like to sell your home and move into a bigger/smaller/condo/beach home/retirement community?  What's stopping you?

1. "I'll wait until the market gets better".  Yep, that always works, right? (please stand up if you sold your tech stock before the last crash).  Don't you realize that if you sell cheaper, you can buy cheaper?

2. "I'm not going to give it away".  You're right. You won't be giving it away.  You'll be selling your home in a fair market economy driven by supply and demand and affordability, and a little bit of dreaming and wishing.  You will sell it for whatever the current market will pay.  It's not giving it away.

(I can hear it now... go to number one, see the cycle?) 

3.  "These buyers just want to lowball my home"  Nope, they are testing the market, the same you do when you listed the home for $5000 above what the realtor recommended.  Be honored that they at least offered.  That shows some interest and a real buyer, not a lookie loo.

4.  "Last year, I should have sold".  Why?  last year you were not ready, and the home you want to buy now, was more money.  Aesop's fable about the sour grapes comes to mind

SUPPLY and DEMAND, dictate the market .... and consider this

The longer YOU wait, the more YOU help create this cycle.  "Now it's my fault?   It's the lenders, the bankers, the greedy purchasers that bought BIG homes with no downpayments, it's the builders, it's the ....._______fill in the blank"  No, it's YOU.  YOU ARE THE MARKET.  YOU wait, and so does everyone else that should/would buy a home.  Sellers that have to sell keep on reducing their prices while you wait it out.

"Great!  I can get the home cheaper!"  Maybe.  While you waited, inflation ate your savings or you bought a car/went on vacation/lent it to your brother..., and with fewer buyers, many people that don't have to sell, wait to sell.  No buyers and fewer sellers, and what happens?  Back to supply and demand?  Maybe but let's look at the bigger picture.  The bigger picture is the economy.

15 years ago, while the government helped the auto industry retool, it was mentioned that each new car sold was 180 jobs.  Each new home is over 300 new jobs, or the continuation of old jobs.  (contractors, supply stores, lenders, attorneys, accountants, oh.. realtors, insurance people, surveyors, bringing into community new students, teachers, firemen, police men, government workers)... WOW.  How many jobs/people can you think of that touched your life when you bought a home?

And now everyone is waiting to buy their dream home "later".   Makes no sense to me.  www.MCoutoRealtor.com, www.MyKearnyHome.com

 What do you think?

Bush: Housing weakness not nationwide

Nope, made you look again.  I know, Blogs are wonderful places for the self proclaimed experts to tell you their opinions of the market.  What makes it better is when they are (fill in the blank... right or wrong)  ________ , and you can say "See, I knew it all along."

The real estate market, from a financial point of view, has some way to go before improving.  That's what you are hearing from the Wall Street crowd.  The Real Estate market is not an area to buy and sell homes like commodities, but represents dreams and values of the American public.  It's a chance for Home Ownership, is basically what the National Association of Realtors is saying.  Whom do you believe?

I would believe the Realtors.  Not just because I am a Realtor, but because it's true. Fannie Mae, Freddie Mac, Countrywide, Bank of America, Hudson City, Wells Fargo and how many other lenders all offer access to the American Dream.  So much so that the same Wall Street doom and Gloom crowd started lending money at lower and looser requirments that helped the American Economy plow ahead for the longest Real Estate Expansion in history... and now it's present downturn.

mmmmm, Whom do I believe, whom do I believe?

Yep, Realtors. Why? They help people buy and sell homes. Realtors are your front line in knowing and following market trends.  Realtors are your friends, neighobors, and family members. No, they're not in it to make quick money and run when the market changes. Nope, they're here, and they're here to help you buy or sell your home.  I have 25 years experience and take as many training classes as I can every year, to do the best job possible for my customers and clients.  All trying to make the American Dream come true.

Not, increase your rate of return 3%-5%, or guarantee you no future payments on your annuity... no.  What Realtors do is help make the American dream obtainable.  Banks and lenders finance that dream, and the public  really does seem to want that dream to become reality.  I am sure you want a private yard to relax in, or your own space that you can call "Mine", right?  It's not something you look at every 5 minutes like a stock ticker, or interest rates on a CD.  It's something tangible and real.  Your Home, YOUR HOUSE, YOUR memories, Your dreams... it's what we, as Realtors do. 

So, in this short ramble remember that the real estate market as an economic vehicle has some rough roads ahead, but as a way to your dream home, this may be the best time to buy. 

If you are selling, please log into www.NJHOMETAX.com and see what your legislators are trying to pass to raise more money, on the sale of YOUR home.  It's an important informational site being offered and sponsored by the New Jersey Association of Realtors.

Thanks for reading, and send over your opinions. 

Mannie

Ok,

so I really didn't tell the truth. There is nothing on Town Politics here.  Just a ramble on how some towns grow and flourish while others just slowly die away.  The office I work in, is in Kearny NJ.  A suburban/urban town of single and multi-family homes mixed into commercial and light industrial properties.  Kearny is a typical working class blue color town.  Lower Kearny vs middle Kearny vs upper Kearny. Each group of residents believe their section is best, and their school district has and offers the most potential to the residents.

GREAT!  But the problem isn't the schools (you can double check the neighborhood at www.MCouto.IsAnExpert.com ) but the town. There is a need and a desire among the business and community leaders that the town has to grow, or die.  But how do you best support your business'?  Is it by bringing in a Farmers Market once a week in front of Town hall?  I don't think so.  Is it a new statue, or more fireworks?  Maybe an Urban Enterprise zone for lower taxes?  Who knows, but it does not seem to be working.

I watch as new sidewalks unify the town design, but the empty stores are stark reminders that the economy has changed.  At night, there are few families taking walks along the Avenue, or classy restaurants and coffee shops. 

What's missing appears to be unified central business district.  Midland Avenue started to grow... but stopped.  Bergen Avenue has some growth and great potential, but it was never exercised while there was a hospital in the town.  Schuyler Ave?  Nope.  Nothing there yet even though the plans call for a major bypass for trucks and more shops and residents developing.  River Road (Passaic Ave).  Great spot and great plans, but nothing has really happened.  The stores are not being remodelled, no real River walk has tied Kearny to Harrison or N. Arlington, and the Park system along the river has not been fully utilized as anything more than a snow dumping ground when it gets real ugly during the winter.

Yep, I've been in town 20 years, and the chief complaint I hear from residents that want to move out is that they can no longer afford the taxes.  I wonder if it's town, county or school budget increases taht hurt the tax base?   The older Scottish and Irish population gave way to the Portuguese immigration wave, that is now giving way to a S. American immigration wave.  The town welcomes them all, but the families have to be better involved in the community and school system to bring the town forward.

How?  More town and community programs to teach english, to educate the population about the legal system (ever spend a day in municipal court?) as well as how they can take advantage of City/State and Federal programs for lunch menus, grants, and educational advancement. (how can this be achieved without an additional burden on the tax paying citizens of Kearny?)

Not an easy task, and one of the few things life has taught me is, The wheels of progress move VERY slowly.  Good luck Mayor Santos, and the City council.  I think Kearny is a great town to raise a family.  The shops, while not open late and trendy, have mostly a 3% tax base.  Kearny has two supermarkets, a large park system and Gunnel Oval has quite a few soccor fields and a great walkway along the marsh (bring mosquito repellant).  The Schools could use improvement, but the parents are caring and walk better for their kids.  Foreign language programs are offered by several community groups for their own kind.  Spanish, Portuguese, Peruvian, Columbian, Brazilian... all available to keep the micro communities comfortable in this new state, new city, and in many cases, a new country.

www.MCoutoisanexpert.com is a great place to check on community school statistics, and www.MCoutoRealtor.com is my site, www.MyKearnyHome.com is the site where I am trying to be more Kearny specific. Any suggestions or recommendations are always welcome.  Homes@MCoutoRealtor.com.    

http://njhometax.comHello faithful readers.  www.NJHometax.com is not getting the exposure or the attention this web site deserves.  www.TheObserver.com was nice enough to run an article in October 4, 2007 addition outlining the history of the Realty Transfer fee, and what it is used for now. 

The NJ Association of Realtors. www.NJAR.com has taken time and effort in trying to alert the public to the sneaky way that NJ is attempting to close their budget gap.

They tried with a Professional tax.  That's a tax on Real Estate Professionals, accountants, lawyers, dentists... and luckily that was stopped.  Now NJ has figured that by taxing the real estate sales further, and by allowing municipalities to create their own realty transfer fees,  they can raise more money and continue their spending without responsibility to the general public.  Since this Realty Transfer fees are really not Taxes, they can be passed without much fanfare and without the public being aware that next time they sell their home, you, as a seller will net less money.

I feel that this is an underhanded way to tax you, NJ residents.  Remember that any additional tax on your dream home, your investment home, your vacation home will net you less money. 

NJAR, is looking out for you, in trying to protect you and your hard earned dollars from the sale of your home.  Log into the web site, www.NJHomeTax.com and see how much of your money they want to keep, and how you can contact your representatives in the senate to voice your opposition to this raise in the Realty Transfer fee.

The biggest mistake that some Realtors, and sellers make, is not knowing the market and keeping up with trends and market conditions.

I know, many are thinking that the market is slow, or worse yet, DEAD.  No, it's not. The market is a function of supply and demand. Right now we have normal demand, low interest rates, and plenty of supply. Remember, the fewer homes, the higher the demand assuming the number of buyers remain stable.  Right now, fewer buyers, lower demand.  Pretty much like the stock market (ok, who has technology stocks from the 90's?) The supply right now in our area is about 8 months behind the demand.  What's that mean?  It will take 8 months to sell my home?  Maybe.  This will depends on the price you are willing to sell your home for.  Sell... NOT market.  Many sellers believe that placing the home in the local paper will generate a slew of phone calls.  OR, by creating a web page and placing it on the internet, the world will beat a path to your door.  Some Realtors believe the same thing.

Nope, it takes a combination of, staging your home for viewing (yes, you really should replace your light bulbs and freshen the house), and pricing it to sell.   How is that done?  Well, your Realtor Homes@MCoutoRealtor.com can help.  Remember, to maximize your sale, I have to know what the current market conditions are like.  Are prices going up or down?  How many homes are for sale (remember that these compete with your home for the limited buyers that are available), How long will the current inventory of homes satisfy the current inventory of buyers, and what are the most RECENT sales.  Not the ones from a year ago, or from 9 months ago, or from 6 months ago.  I am talking about what homes have been sold in the last 3-6 months.  Only then can you most accurately predict the market, and attempt to set up a market strategy.  Only by planning how you can market your home, can you attempt to sell it.  Gone is the "If my neighbor sold for x amount, I can get x amount more" days.

Now, you have to market your home to sell it.  That takes planning, knowledge, Experience, and a little luck.  Call me today 973-417-8060 on my cell or shoot me an email for a private appointment.  I'll discuss with you how I think we can most effectively market your home to SELL.  Homes@MCoutoRealtor.com