Archive for the ‘Information for Sellers’ Category

First let’s congratulate the Morris Plains Marlins Swim Team for their third undefeated season.  The Marlins are 21 and 0 over the last three years.  Coach Tina Cecala and her staff should be congratulated for their tremendous effort.  The swim team is one of the best recreation programs in the county.  The coaches have succeeded   in combining personal achievement and solid team work to produce a great summer swim team.  Good luck in the County Championships

There are at least 11 million people in the US that owe more than their home is worth, and a ton more whose property is worth a bunch less than they paid for it.  If you fall in this category you may not be as trapped as you think. 

According to the Wall Street Journal, record low Mortgage rates and a new slump in home prices are presenting some unusual opportunities in the housing market.  Even underwater home owners may benefit.

Many home owners are intentionally taking a hit on their current house writing a check to retire the loan in order to buy a much larger house for not that much more money.  Some are throwing conservative financial advice to the dogs.  They are opting to cash in refinancing.   They are paying thousands out of their pocket to settle their loans and then taking out new mortgages with lower payments and shorter terms.

Essentially these people are doubling down on their homes and taking a chance that when the economy recovers they will have put themselves in a position where there new properties will appreciate faster than if they had waited for their older home to do so.  Economists are saying that this may not be such a bad idea.  Christopher Mayer from Columbia Business School says that “If you are trading up, what better time than now”  Interest rates are rock bottom and the cost of a larger home is much less then what it was 2,3 4 years ago. Someone who wants to refinance is home could plunk down cash to retire the  higher rate loan then refinance the new loan and might be able to reduce his monthly payments as well as shortening is loan term.  Look at the graphs below

For example, 2 years ago someone bought a home for 246,000. That same home has appraised for 228,000 today.  Our home owner has paid 29,000 in principle and closing costs to refinance his current 30 year loan at 5.87% into a 20 year loan at 4.5%.  This will save the home owner 95,000 in interest over the life of his loan and lowers his monthly payment by 148.00 dollars.  If you do the math our home owners not only saves the 95 grand over the course of his loan.  He also earns a return of about 10% a year for 5 years on his investment of 29,000.

It is not easy for many of us to accept the fact that we have lost tens of thousands of dollars on our homes.  However for scores of home owners summoning the courage to take a loss now could lead to large gains later. 

This is agreat time to be a buyer especially in Morris Plains.  There are a number of homes in town that are competively priced to the current market.  These homes will sell very quickly, I know of one that already has had alot of interest in it.  If you need any information about the town give me a call and I will be happy to assist you.

Thanks for reading my blog on Morris Plains Homes NJ and here is the Quote.”Go back a little to leap further.”  John Clarke

There is trouble brewing for the housing market in Morris Plains.  It is a well-known fact in the real estate world that when a home hits the market it gets the most traffic in the first 30 days.  If it is correctly priced, it will sell within that time period.  If within that 30 days there is plenty of traffic but no offers the home price should be lowered 5 percent.  If a home has had little or no traffic the price should be lowered 10 percent.

In Morris Plains there are 31 homes for sale in Morris Plains that have been on the market for an average of 100 days.  They range on the market from 32 all the way up to 271 days.  10 homes have been on the market for 4 months or more.  Now before you say “well that is because of the economy or the market”.  The truth is there are currently 10 homes under contract that where on the market for an average of less then 30 days.

Why did these homes sell in such short time?  They were all correctly priced to the market when they were listed.  These 10 homes where not all inexpensive properties, six where priced over 549,000 dollars.  The highest priced one was priced at 699,000.  Four of these  homes sold in under two weeks. 

It is not rocket science, there is a lot of competition in the market.  If a buyer cannot find the home he wants at the price he wants in Morris Plains he will go to Denville or Morris Township or Hanover to find his home.  Remember the market dictates what your home is worth.  The current average absorption rate for Morris Plains is up around 6 months.  In the long run incorrectly pricing your home will cost you tens of thousands of dollars.  Hoping to get your asking price is not a strategy it is a mistake.

Thanks for reading my Morris Plains Real Estate Blog:  Here is the quote: “This country will not be a good place for any of us to live in unless we make it a good place for all of us to live in”.  Theodore Roosevelt

It has been a few weeks since the last time I wrote.  The past few weeks have been very busy but I am back.

What’s going on in the world economy?  Most people think very little.  However things are getting better.  The trade deficit in the US widen in May.  The cause of this is that the value of the dollar has gone up making US goods less attractive to foreign buyers, the European debt crisis has limited overseas demand, and China’s economy slow down have all contributed to the increased. 

Although the deficit has grown what is important to note is that the business is still picking up.  Exports grew in May with the sales of industrial equipment, business machines, and semiconductors.  Imports rose as well with an increase in cars, pharmaceuticals toys and clothing. 

The shining star is the earnings report from Alcoa Inc.  They have reported an increase in sales to the automotive industry by 8 percent and sales to the truck and trailer manufactures by up to 17 percent.  The business environment continues to get better and the Alcoa news is important.  A few weeks ago I spoke of the world wide increase in demand for diesel fuel.  The increase in sales of aluminum to the truck manufactures indicates an increase in demand for trucks.  Trucks haul the majority of goods in the world and more trucks on the road indicate and greater demand for consumer goods Consumers are coming out from under the bed and are back buying.

The Housing Market in Morris Plains has slowed down for the summer.  35 Homes are for sale.  The absorption rate is about 8 to 9 months.  Things should pick up as we move into the fall when people are back from vacation. 

Interest rates for a 30 year fixed rate loan are around 4.5 to 4.75 percent.  Recently I entered the interest rate market for a 5 year adjustable rate loan.  I have been quoted a rate of 3.5.  Not bad mi amigo.  Low interest rates, contrary to popular opinion, are here to stay for at least another 6 months or so.  There is no inflation and unemployment although high has stabilized.  This news maybe an  indication of an improving  economy at least on the local level three people on my street have found jobs. 

So things are getting better just keep the faith and keep moving forward.  Remember “Be the Shark always swimming always moving “

Thank you for reading my Blog Morris Plains NJ Homes.  Here is the Quote;   Act as if what you do makes a difference. It does. “   William James

Well last Saturday I held my first garage sale.  When I told my neighbor what I was doing she told me “that garage sales are a whole lot of work with very little reward”.  She could not have been more correct.  I met a lot of very nice people and I learned a lot.  First no one wants any VHS tapes VHS players or tube TV’s.  No one wanted any of my hand carved ducks. No one wanted my20 year old micro wave oven.  My 90 year mom stopped by and was my greeter.  I finally had to ask her to leave when she insisted on telling some of my lady patrons that they are too”large” to wear those jeans.   I was mostly successful in selling most of the crap but toward the end I was just giving stuff away so I did not have to but it back into the basement.

A woman from the Morris County Women’s Shelter came by and did take some of my son’s sweat shirts and pants.  It broke my heart when she told me that many of the kids show up at the shelter with the clothes on their backs.   I wish I had more to give them.

What’s going on in Morris Plains?  Well we have 27 homes for sale in April. They have been on the market for an average of55 days.  5 homes are in Foxwoods, 3 homes are priced lower than 400,000, and we have 3 priced lower than 500,000.  6 homes are priced lower than 600,000 and 2 homes priced under 700,000. We have one home at 724 and one home at over 1million.

14 homes are under contract so far in April and where sold on average in 87 days. Three homes have closed as of April 22 and where on the market on average of 103 days.  The ratio between list and sale price in Morris Plains is about 95%.

The absorbtion rate for Morris Plains is 2 months for homes priced under 500,000 and 4 months for homes priced over 500,000.  If your home has been on the market for longer then the above reference months you may want to review the marketing plan your current realtor has in place.  Are you priced competitively?  Morris Township Denville Hanover all have home that are competitive to Morris Plains.  If your home is on the market for over 30 days with no offers lower your price 5 percent.  In this market no one is going to overpay for a home when they do not have to.  Yes we live in a great town but we have to be realistic in our home pricing.  I have a client who is looking at homes priced between 300 and 400,000.  They have been in one home a number of times and they really are interested in it but the price is just too high. 

 This is a great house great town great location in a really good shape it has everything.  The problem is that the home is over priced.  The house has had a ton of activity. No offers.  The listing agent called me today to see if my people will make an offer.  She told me that the owner is discouraged that no one has made an offer on her lovely home.   All this house needs to do is lower its price by 5% and it will get multiple offers and will be sold in no time.

If you are going to sell your home listen to your agent about pricing.  They know what your home’s value is in today’s market is.  If you are not willing to listen to a professional’s opinion then why are you hiring them?    A lot of head aches and heartaches can be avoided.

There are 5 homes in Morris Plains that have been on the market for over 100 days.  Some of the homes that are listed have been listed multiple times with different agents and have been on the market for years.  These houses have been seen by every agent in Morris County and they all know that the home is over priced.   Selling a home is not magic, buyers do not just appear.  Remember in selling your “hope is not a strategy”   A seller in today’s market must know what they are up against not only in their town but other towns in the area.  Sellers need to have realistic expectations about the value of their home.  If 3 Cape Cod style homes in your town sell for 425 your house will not sell for 500. If they are hoping to get their price on an over priced home they could be hoping for a long time.   

If you know of a home in your neighborhood that has been on the market for longer then 3 months and you have any questions about it give me call.  Thanks for reading my Blog Morris Plains Homes. 

Here is the Quote   “There are so many men who can figure costs, and so few who can measure values.”  Author Unknown

You all have read my blog extolling reasons why now is a good time to buy a house,  well don’t take my word for it.  Donald Trump, I think we all know who he is, was being interviewed on the Howard Stern Show yesterday morning.  Howard asked “the Donald” what investment advice he had.  His reply was real estate.  He felt that there was no better time to buy then right now.  Rates are low and there are still some good deals to be had.  He also went on to describe his latest acquisition of land along the Potomac River.  He went on to described that this window of opportunity will not last long.  So the time is right now to buy.

The number of properties in Morris Plainsfor sale is down to only 24.  6 properties are in Foxwoods, we only have 2 properties priced under 400 and only 3 under 500,000.  Those first time home buyers really took a chunk out of the affordable home inventory in town.  6 homes are priced under 600,00 and only 3 under 700.  We still have one home priced over a million dollars.  Morris Plains has a little over 2100 homes in town and only .012 percent are for sale.  The average number of day these homes have been on the market is less then 2 months. 

Guess what it is a sellers market in Morris Plains.  Wait a minute but be for we take to the streets in celebration we need to remember that it is well priced well marketed homes that are selling.  Morristown Morris Township, and Denville also offer a lot of the same amenities that our town does and they have many homes that will compete in the market for our buyers.

We went to the Saint Patrick’s day Parade in Morristown last Saturday it was a great sunny day for a parade.  I would be for having the parade in April every year when the weather is nice and warm. 

Thanks for reading my Morris Plains Homes Blog.  Here is the Quote; “Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make “  Donald Trump

Hey all you Manhattanites that are thinking of moving New Jersey think on this:  Morris Plains and Chatham NJ both have a lot in common.  They both are located in desirable Morris County New Jersey.  They both are about the same size ,2.5 square miles, they are both pedestrian friendly and they are both on the Morristown Line of New Jersey Transit with direct service to NY Penn Station and Hoboken. 

But there the similarities end. Chatham’s population density is almost 40 percent higher then Morris Plains.  Also the Average active listing for a home in Chatham currently is 35% percent higher then a home in Morris Plains.  In the last year on average buyers have paid 800,000 dollars for their home in Chatham where in Morris Plains homes on average have sold for 520,000 dollars.  That is almost a 300,000 dollar difference.

Lets break this down further.  In Morris Plains a 7 room 3 bedroom with 1.5 to 2 baths is currently selling on average for 460,000 dollars, while the same size home in Chatham is on the market for 550,000.  In the last year this same size home in Morris Plains sold for 425,000 dollars while in Chatham it sold for 565,000.  I don’t know too many people that have an extra  135 “G’s” to toss around do you?

In Morris Plains an 8 room 4 bedroom 2.5 bath home on average is selling for 550,000 while the same size home in Chatham on average is selling for 740,000.  Last year buyers in Chatham paid on average 290,000 dollars more for their 8 room 4 bedroom 2.5 bath home then the buyers in Morris Plains did for theirs.

What is really interesting for the price of a 7 room 3 bedroom 1.5 to 2 bath home in Chatham you could have an 8 room 4 bedroom 2.5 bath home in Morris Plains with a nice size lot and have money left over for food.

So let’s review.  Morris  Plains has less people, an easy rail commute to NYC, a friendly downtown with shops and restaurants  plenty of parks and recreation oh yea and home values that don’t take a chunk out of your ass. 

Here is an idea I will sell your home in Chatham I will find you a home in Morris Plains.  You take the 200,000 grand that is left over and  buy something really nice for your wife, maybe something shiney and sparkly with facets or buy your self that Red Corvette. Or you could do something mature and grown up and  invest it in the stock market where it may actually appreciate (because it isn’t happening in the real estate market in Chatham)   Give me a call at 862 222 4737 I can hook you up.

Thanks for Reading Morris Plains Homes, and here is the quote “Great minds discuss ideas, average minds discuss events, small minds discuss people”. Eleanor Roosevelt

Happy Saint Patrick’s Day

Every morning I get up make my coffee and then sit down and go through all the financial websites to see what is going on in the world.  What I have realized is all the bad news that is coming out about the economy centers around the housing market 

Like a lesson in the conjunction of Latin Verbs that Sister Hell on Wheels would pound into my 15 year old head in high school the bad news in the housing market is force feed to us every waking moment.  One report claims that 1 in 4 home owners are under water in their home loans.  Another claim the housing market is awash in foreclosures, and another warns us of the coming commercial real estate meltdown.   Ah duh this is the same crap we have heard for the last year.  Where were these people 2 to 3 years ago when we all could have used some of their bad news predictions?  All the bad news is in the market it is not relavent any more.  Now tell Bobby something that we  don’t know.

Ok how about I share this with you.  Did you know that 382 non financial firms in the Standard and Poor’s 500 have reported results for the fourth quarter and are now sitting on 932 billion dollars?  That is billion with a “B”.  What these companies have done is during the down turn they cut costs and capital spending looking to survive the storm.  What are these companies doing now?  They are coming out of their caves and are looking to spend.  Let’s face it a trillion dollars sitting in a bank account is not doing anyone any good.  That money needs to be put back into the economy.   Some of these companies have increased dividends and bought back stock but this signals to the market that they don’t have a better use for their cash.  Stockholders want value and growth.

What is happening now is companies are using their cash to buy other companies.  Bank of New York just spent 2.3 billion for PNC Financial Services, Diamond Foods Inc’s 615 million purchases of Kettle Foods, Air Products offer of 5.12 billion for Airgas Inc.   These are just a few examples of how these companies see positive signs where the economy is going.  Capital for expansion is more readily available and this capital is cheap.  Instead of using what many CEO’s consider their under valued stock to finance a merger these companies have leveraged their cash and the availability of cheap capital to expand through purchases and mergers.  Their view of the economy is that their stock is undervalued and when you compare that to the cost of cash and financing it is pretty easy decision to make, use the cash.

So what does this mean to the average home buyer?  Well 382 CEO’s are out looking to buy.  The reason they are buying is the same reason you should be buying as well.  Reason number 1: the market is at the bottom, in some metro areas the bottom is slipping away.  Reason number 2: interest rates have never been lower.  Everyone will agree that rates will not stay at these levels for long.  30 year mortgages have slipped under 5 percent once again. Reason number 3: waiting for prices to drop.  Home prices are at 2004  levels.  We have seen prices fall almost 5% a year since 2006. Will prices fall further I don’t think so. Why you ask? Because of, Reason number 4 the Economy is Improving.

Thanks for reading Morris Plains Homes   NJ Blog.   Here is today’s Quote   “Stay strong eat right and go for the gold”  John Sittmann

PS this just in    The Unemployment Numbers for February are in.   The  Consensus is that had we not been “snowed in” in February we would have seen a job gain instead of a job loss & this is perceived as a strong economic indicator

To my Readers I am sorry for the delay in a new post on the blog.  But  a spill on the ice trying to do a Triple Toe Loop (mind was willing but the body was not) and a bout with the flu have kept me out of the writtin biz.  I hope to make up for lost time. 

According to the Case Shiller Home Price Index home prices edged higher by .3 percent.  This is the seventh straight monthly increase and it is up nearly 3 percent since the lows of May 2009.  This is more evidence that the housing market is on the road to a recovery, a bumpy one but one none the less. 

This trend is important to the nation’s economic recovery as well.  To most Americans their home represents their biggest asset so as values climb homeowners tend to feel wealthier and are more comfortable spending .  The increase in values also helps home owners to rebuild equity.  As home values  rise it is further proof that conditions in the housing market continue to stabilize.  What would be really nice would to see the unemployment numbers start to come down.

There are still forces that could slow the recovery but for the most part buyers are beginning to realize that bottom is creeping away.  Homes that are priced right are selling a little bit faster.  More listings are receiving multiple offers at or above the asking price.  Some sellers are seeing all cash offers. 

On the economic side the stock market continues to settle above the 10,000 mark.  One should also take note on interest rates. Rising interest rates are not necessarily a bad thing.  Although it could signal the end of sub 5 percent rates for 30 year homes mortgages it also means the economy is on the road to recovery.  Rates for home mortgages could begin to move higher by the end of this year and certainly by early next.

For the Market in Morris Plain NJ February 2010 matched January 2010 in monthly home sales for Morris Plains.  Only one house closed for the month.  The good news is despite the horrible winter weather we have had in February people have been out looking at homes and 10 properties have gone under contract. 

Currently Morris Plains NJ has 27 homes on the market of that 6 are condos in Foxwoods.  Four Properties are under Attorney Review, leaving a grand total of 17 single family homes in town for sale. 

Of that, 7 are priced under 300,000, 3 are priced at 3 to 400,000.  Four homes are priced less  than 500.  There is a terrible shortage of homes in Morris Plains priced in the Mid 4’s.  It seems as soon as a house is listed it is snapped up.   Eight houses are priced fewer than six hundred and 3 priced over 600,000 dollars.

The Absorption rate in town is not too shabby either.  Right now on average the rate for homes in Morris Plains is around Five and ½ months.  What is a very interesting statistic is that the absorption rate for homes priced fewer than 500,000 dollars is 4 months and homes over 500,000 are 7 months.  Both numbers are still impressive.   An absorption rate of 5 and under is considered a sellers market and 6 to 7 months is considered about average.   Another item to note is that this statistic is telling us that the town is seeing an influx of first time home buyers that are looking to settle down and start their families in our lovely Community of Caring.

Thanks for reading Morris Plains Homes here is the Quote;” Success is not final, failure is not fatal: it is the courage to continue that counts”.  Winston Churchill

Below is a graph showing what the average sales price for a 3 bedroom 1 and 1/2 bath house from 1995 to 2009 in Morris Plains NJ.  In the last 15 years these homes have gained on average about 4 percent a year in equity with 2006 being the height of the market.  One thing to note is that the downward trend on home value has leveled off.   If the the historical rate of 4 percent a year returns to the market these homes will begin to increase in value.  The one thing to keep in mind is that in order to get back to the values we where at in 2005 and 2006 we will need 9 years of steady growth.

Manufactureing continues to pick up and unemployment has begun to level off.  These are all good things.

If you are interested in what your home is worth today in Morris Plains NJ or any other town in Morris County NJ Send me and e mail or give me a call and i can give you a customized and detailed report on the value.  www.Zillow.com and www.Trulia.com can not  give you the information you want.  Remember Good Information is Power, Power is Wealth. Bad information is Stupid.

Federal Reserve Chairman Ben Bernanke said Wednesday he doesn’t expect the central bank to sell its huge trove of mortgage securities anytime soon, easing fears the move would raise borrowing costs for home buyers.  The fed is not expected to raise interest rates until next year.

If you have any questions concerning the graph please give me a call or e mail me.

Thanks for reading Morris Plains Homes Here is the quote:  “There has never yet been a man in our history who led a life of ease whose name is worth remembering.“  Theodore Roosevelt

Below is a graph of what a 4 bedroom 2 and 1/2 half bath homes have sold for on average in Morris Plains NJ since 1995.  If you bought your home in 1995 you have seen on average an increase in equity of about 5 percent a year.  Not a bad deal.  The market in town peaked in 2006 and have fallen about 5 percent a year through to 2009.  What the chart is showing is that home values in town have started to bottom out.  You can see that homes on the high end have already started to rise as have houses on the low end of the spectrum have also begun to  rise in value.  These stats where taken from the MLS statistics on Morris Plains

This report was done on only 4 bedroom 2 and 1/2 bath homes but can be run for any type of propertyand any where.  If you are interested in what the real value of your home is e mail me and I would be happy to run a Home  Value History Report for your house.  My Email Address is rsittmann@weichert.com  Click on the graph to make it larger and to print it.

Thanks For Reading Morris Plains Homes NJ.  Here is the Quote:  “In wine there is wisdom in beer there is happiness in water there is bacteria”   Benjamin Franklin

Bob Sittmann