Jamie Stimpson\’s Blog

I hear it all the time, œWow, my home looks so  good, I wish I could stay.    

We all do our spring and fall cleaning so maybe it™s time to take it a step further. When we get a home ready for placing it on the market we take it to the next level. OK, maybe it is not how we live on a daily basis. I know because with 5 children I have as much clutter as the next person. The challenge I put out is to pretend you are cleaning to sell. It is amazing all we accomplish when a goal is in sight. Really look at how you live and the things that take up space in your home. There are tons of things we could all live without. There are also dozens of small repairs we put off until tomorrow and get so used to seeing that it doesn™t even seem like an issue anymore. Believe me, the feeling of satisfaction I see after a home is œshow ready is the best!

Why not have that special feeling of a crisp clean home for our own benefit every day of the year.

See what was posted today

http://www.inman.com/news/2009/07/31/survey-consumers-want-added-services

Check out this great video from Keller Williams explaining the first time homeowners tax credit:

http://www.youtube.com/watch?v=h_AO1LCw-_g&feature=related

Despite the fact that declining home prices have been grabbing headlines for several months now, it can be a challenge for any of us to let go of what we had hoped our home would sell for.  

It’s often the case that, prior to listing their homes, sellers interview a few agents, with a plan to sign on with the one who agrees to list it at the highest price. With the understanding that the listing price is ultimately the decision of the seller, not the real estate agent, I™d like to explain one of the most critical dynamics that impacts the actual sales price of a home.

Whether we are in a buyer™s market or a seller™s market, the same principle applies. The most effective pricing strategy for getting top dollar for a home is to price it competitively. This might not seem to make sense at first, but study after study, as well as my own personal experience, has proven that when a competitively priced home hits the market, it generates an instant buzz. Agents begin calling their prospective buyers and lining up showings to ensure that they don™t miss out on a great buy. Bidding wars can even break out.

Let™s contrast this situation to what happens when a home is priced higher than comparable properties. Neighbors and prospective buyers take one look at the listing sheet, and dismiss it as overpriced. The home sits on the market and sits some more. Eventually œREDUCED PRICE! signs go up. The market starts to wonder what™s wrong with the house since it hasn™t sold.

Eventually, sellers take it off the market or agree to sell it for a much lower price than they had originally hoped.

In any market, competitively priced homes sell quicker and command a higher selling price than homes that factor high hopes into the pricing equation.

As a real estate professional specializing in the  Freehold area  market, I diligently track trends as they pertain to the pricing and demand of homes. Want to learn more about how to sell your home quickly and at the best possible price?   I™d love to talk with you.   Contact me any time at JStimpson@kw.com or (732) 513-3624.

On Tuesday, March 31st a special meeting is scheduled regarding school consolidation.     The meeting will be held at Centra State Hospital at 7:30 p.m.   This is a topic that is unfamiliar to most of us, and will not only have a major impact on our school environment but our entire community and neighborhoods.  While I’m told this issue is in it’s fact-finding, discovery stages it could ultimately become a reality.     For us, that means that  the Freehold Twp. school district may merge with Freehold Boro school district, combing schools, students, staff, resources, etc.   Taxes and the real estate market could be greatly impacted by such a decision as well.  

I attended the meeting at Catena school on March 24th and urge everyone to get involved and  find out all they can about this possible consolidation at  this next meeting.  It is  important  to attend   to hear the discussions and questions.   We can’t complain about what may happen if we don’t make the committment to hear first hand what is going on and express any concerns you may have. A link with more agenda details is attached for your review.

Click here: http://www.freeholdtwp.k12.nj.us/ConsolidationForum.pdf

http://monmouthhomesnj.vflyer.com  

Check out my current listing here.

According to   U.S. News and World Report Freehold Borough High school was named as the only traditional public school in Monmouth and Ocean counties to be ranked among the top 504 schools.

Those of us already districted to that school already know what we have. Many residents would rather not share that news; as we call it ‘Monmouth counties best kept secret”.

I will admit I have had children attend other schools, the opportunities are tremendous in this area to seek out specialized areas of interest.

My oldest attended Howell H.S. for the theater program, and was able to get into Wagner College for their theater program. O.K. she left after 1 year to live out her dreams in the city, but that’s another story.

My 2nd attended Communications H. S. in Wall NJ. This school is also ranked in the top schools as well. It is a program offered for Monmouth county residents. Her SAT’s reflect the college level curriculum and she just finished her  applications . We are really hoping for the academic scholarships she deserves.

My third was able to grab the best of both world’s as he was accepted into the Computor Science program at the Freehold Borough H.S. this is one of the learning centers that students can apply to throughout the district.

My 8th grader is applying to Communications as well, and said he would be happy to attend Freehold Borough and take honors and AP classes if he not accepted.

While I do not expect my youngest in 5th grade to want to take advantage of all the opportunities that the Freehold Regional High School District and Monmouth county allow her to, I will very happy that her fallback is one of the top rated schools in the country.

Oh and yes the gray hairs are coming in quickly.

Stumped about the ever-shifting market?

Hello Neighbors!

Wow, when they called today™s real estate market a “shifting market,” they were right on target. It keeps shifting, and shifting, and shifting …  Every time we turn on the news there™s a new development that affects our economy and therefore the ability of buyers to “buy” and the sellers to “sell.”

SHIFT, the most recent book by Gary Keller, co-founder and Chairman of Keller Williams Realty Inc., begins with the following paragraph: “The Real Estate Market has shifted drastically and dramatically. Sales volume and the number of transactions have dropped significantly. Inventory has reached an all-time high. Buyers have never been more reluctant.  Fear is rampant, anxiety is high, and people are getting out of the business left and right. Sounds familiar?  Sure it does. The year was 1979!”

Does it make us feel better to know that this has happened before? What did we learn from it in 1979? Fast forward to 1987 and it happened again. Changing tax laws this time had a disastrous affect again. Well guess what? History repeats itself. Now we are faced with this again, in 2008 but this time there are real differences.

In 1979 mortgage interest rates topped 18 percent. Last week buyers were still getting approved at under 6 percent through local lenders. That is a huge difference! Today™s sellers, with the help of their real estate agents, are becoming realistic with today™s pricing, bringing our market back on track.

The real estate business is “cyclical.” An experienced real estate agent and a mortgage broker will understand this and be prepared to give counsel that is in tune with the current market. Remember though, the news you heard last week is “old news,” so stay in touch with your local, trusted real estate agent for updates on this ever changing market.

We are participating in seminars, conference calls, webinars, and many other training events to stay on top of the game to better assist you.

 Real estate remains your single most valuable asset if handled correctly.

Your real estate consultant

The Housing and Economic Recovery Act of 2008, the most sweeping housing legislation since the Depression era, was passed by the U.S. Senate and House of Representatives at the end of last month and was signed into law by President Bush.  The new law addresses various aspects of the housing downturn, including assistance for homeowners who are behind on their mortgages, federal oversight of Fannie Mae and Freddie Mac, and funding for cities to buy and fix up foreclosed properties. Many of the provisions of the new law go into effect October 1, 2008 but for first-time home buyers who bought, or will buy, their home between April 9th of this year and July 1, 2009, there™s an immediate bonus ” a tax credit of up to 10 percent of the sales price, up to $7,500.   Note that this is a tax credit, not a tax deduction. A deduction is an item that is subtracted from your annual income before income taxes are calculated. A tax credit is subtracted from the amount of taxes you owe.  

œFirst-time home buyer is specifically defined in the new law, and includes those who may have owned a home in the past, but not within the last three years.   To qualify, be prepared to show your last three years™ worth of income tax returns to prove that you did not pay mortgage interest during that period.  There are also income limitations on the tax credit – $3,750 per year if you™re single and $7,500 jointly if you™re married.  

By the way, the tax credit isn™t a gift – you have to pay it back.   Nevertheless, it provides an initial reprieve, as repayment doesn™t begin until two years after purchase, and is payable over a 15 year period.  If you sell the property before the tax credit has been fully repaid, any remaining amounts owed are due to the IRS upon closing.

Applying for the tax credit isn™t mandatory, but for many, it will make home ownership feasible in the coming year ” and that™s exactly what the tax credit is intended to accomplish.

Written by David Reed, Texas-based mortgage banker with more than 20 years experience

Getting a gift in the form of cold, hard cash to buy real estate is a wonderful thing. Gift funds are a common way parents help their kids buy a home, but there are certain requirements to follow to ensure the gift transfer goes smoothly.

What exactly is a cash gift? Technically, it is a transfer of funds from one party to another without any expectation of being paid back. This non-repayment factor is a key element because lenders can™t accurately calculate debt ratios if the gift is in fact a loan. How do lenders determine this? The œgivers are required to sign an affidavit stating that the funds being given are a gift with no repayment expectations.

Who can give a gift? Gifts can come from family members (parents, siblings or grandparents), non-profit agencies, local or state agencies, churches, domestic partners and trade unions.  

The party that furnishes the gift must show an œability to give, which means they have the money available in an account they own. This is documented by providing account statements showing the funds are available. Finally, it must also be documented that the gift funds were transferred from one party to the next and the lucky recipients (and future home buyers) must provide a bank statement showing the gift was received.

While the need for documentation might sound heavy-handed, the truth is lenders need to take every precaution to make sure that the œgift isn™t a œloan. So if you know what the lender expects ahead of time, the gift transfer can be seamless. Just remember, financial gifts over a certain limit may have income tax implications, so be sure and consult with an accountant or tax specialist before getting the mortgage process underway.

One final note to consider. Conventional loans differ from FHA programs in their requirements for reporting gifts to be used toward the purchase of a home. Buyers using conventional financing need to prove that they have at least 5 percent of their own funds in the purchase transaction. However, that requirement is waived if the gift represents more than 20 percent of the purchase price. The FHA loan, on the other hand, merely requires the buyers have at least $500 of their own money at closing, regardless of the amount of the gift.

Written by David Reed, Texas-based mortgage banker with more than 20 years experience

and author of Mortgages 101 and Mortgage Confidential.