Mercer County NJ Buyers - Mortgage Rates are Starting Up

It appears the window for buyers to find loans with low mortgage rates is closing.  The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent in just the past week.  Many analysts forecast rates will rise as high as 6 percent by early next year.

If you were hoping to obtain financing, but were relying on a certain low rate, you may soon be priced out of the market to buy a New Jersey home.   For every 1 percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.

Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper.  U.S. government debt, a safe haven during the recession, is losing its appeal as investors turn to stocks and riskier corporate bonds.  Also, Last week, the Fed ended its program to push mortgage rates down by buying up mortgage-backed securities.

The rule of thumb is that every 1 percentage point increase in mortgage rates reduces a buyer's purchasing power by about 10 percent.  This may be good news for sellers, as buyers race to complete their purchases and lock in rates before they rise farther. 
 
For example, taking out a 30-year mortgage for $300,000 at a rate of 5 percent will cost you about $1,600 a month, not including taxes and insurance. But the same monthly payment at a rate of 6 percent will only get you a loan of $270,000.

So, start looking now.  Think of a new home in Hamilton NJ which is more affordable now than in many years, or a resale in Ewing or Lawrence or West Windsor.  Foreclosures are plentiful too.  Think about your buying power and plan ahead to purchase that Mercer County home this Spring or Summer.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/

Mercer County NonProfits Forced to Get Creative

In a recent article on nonprofits for Hamilton Space, Rob Anthes addressed the problems nonprofits in New Jersey have had just trying to stay in business during this rough economy.  Many have changed the basic way they operate, including doing with fewer people, fewer resources, and fewer outreach programs.

Anthes states, "Half of New Jersey nonprofits responding to a survey conducted by the Center for Nonprofits had frozen staff salaries, 33 percent had cut staff and 42 percent expected to spend more money than they earned in 2009.

"But while 61 percent of respondents experienced decreased funding between January 2009 and October 2009, demand for service increased for 54 percent of organizations in that time period. Throw in the looming threat of cuts in state funding, and many organizations have started to wonder how much longer they can continue to hold up under the opposing forces of more need for services and less money to provide those services.

"It’s a hefty problem for a sector of New Jersey’s economy that spent $33 billion in 2007."

Mercer County is home to 2,524 nonprofit organizations, according to the Center for Nonprofits. Mercer has the third most nonprofits of any New Jersey county.

An example of changing strategies is Allies NJ, a Hamilton, NJ-based organization that helps people with disabilities find housing, health care and employment. Allies receives much of its funding from the state, not a reliable source as state officials try to solve the budget shortfall.  In response, Allies has partnered with the New Jersey branch of the Friends of the Guard and Reserve, which supports military personnel from the National Guard and the Reserves, in its fundraising efforts.

Anthes reports, "The Center for Nonprofits’ survey showed 39 percent of nonprofits that responded to its October survey had formed similar partnerships in 2009, with 42 percent working on launching new partnerships."

He cautions, "That nonprofits could be approaching their breaking point is a thought some municipal governments — beneficiaries of the work of nonprofits — don’t want to consider. Lawrence NJ Mayor Michael Powers pointed to several projects in his town that wouldn’t have happened without an organization offering the government assistance. Neighborhood groups like the Greater Eldridge Park Neighborhood Association and Lawrenceville Main Street have offered to help with rejuvenation projects.

"'They’re a true community partner,' Powers said. 'We wouldn’t be able to do half of what we do without them. We really appreciate their help. It makes my job as mayor easier. The town tries to meet the nonprofits halfway. We try to help them out when we can.'”

What's the solution?  With 2,524 nonprofit organizations in our Mercer County back yard, we can each see if we can help at least one with time, if not money.  Their work is too important and valuable to find out how we can serve the community without them.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/

New Mortgage Plan for Hamlton NJ

The government has released another program to stimulate the real estate industry, which will be helpful to buyers and sellers in Hamilton Township, and Mercer County, NJ.

Here are the key points:

• As much as $14 billion of the Troubled Asset Relief Program (TARP) will be made available to pay for writing down second liens for loans whose borrowers refinance through the Federal Housing Administration.
• Lenders that facilitate refinances through the FHA will be required to write down the principal of the first mortgage by at least 10 percent so the home owner has a loan-to-value ratio no higher than 97.75 percent.
• Lenders of second liens will be offered incentives of 10 cents to 21 cents per dollar of principal they write down in connection with an FHA refinance.
• Borrowers who lose their jobs can apply to have their mortgage payments reduced for three to six months while they search for a new job.
• Borrowers with a payment still greater than 31 percent of income after they find a job will be considered for a permanent loan modification.
• To encourage more short sales and “deed in lieu” of foreclosure transactions in which the lender settles the loan for less than is owed, the government will double assistance to borrowers to $3,000 and increase incentives to subordinate lien holders and investors to $6,000.

If you are having problems paying your mortgage, you do have options to foreclosure.  Contact me right away so we can work on some of these modifications and get your house on the market to sell.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/

February Real Estate Report by NAR Mirrors Hamilton NJ Home Activity

The National Assn of Realtors reports that existing-home sales declined slightly in February, with modest gains in the Northeast and Midwest offset by softer sales in the South and West.

Existing-home sales, which are finalized transactions that include single-family, townhomes, condominiums and co-ops, slipped 0.6 percent nationally to a seasonally adjusted annual rate of 5.02 million units in February from 5.05 million in January, but are 7.0 percent higher than the 4.69 million-unit pace in February 2009.

Those of us in New Jersey can certainly agree with Lawrence Yun's, NAR chief economist, conclusion that widespread winter storms in February may mask underlying demand. "Some closings were simply postponed by winter storms, but buyers couldn't get out to look at homes in some areas and that should negatively impact near-term contract activity," he said. "Although sales have been higher than year-ago levels for eight straight months and home prices are much more stable compared to the past few years, the housing recovery is fragile at the moment."
 
He continued, "The key test for a durable recovery comes in the next few months as the tax credit deadline approaches.  If we see a surge in home buying comparable to last fall in the months leading up to the original tax credit deadline, then enough inventory should be absorbed to ensure a broad home price stabilization."
 
The national median existing-home price for all housing types was $165,100 in February, which is 1.8 percent below February 2009. Distressed homes, generally sold at discount, accounted for 35 percent of sales last month.

A parallel NAR practitioner survey shows first-time buyers purchased 42 percent of homes in February, up from 40 percent in January. Investors accounted for 19 percent of transactions in February, compared with 17 percent in January; the remaining sales were to repeat buyers.

Regionally, existing-home sales in the Northeast rose 2.4 percent to an annual pace of 840,000 in February and are 12.0 percent above a year ago. The median price in the Northeast was $254,700, up 7.5 percent from February 2009.
 
The numbers will improve as Spring arrives and it warms up.  Search homes for sale in Hamilton, NJ on my web site.  You'll be amazed at what you can purchase now at low prices.  Remember, the 1st Time Buyer tax credit expires April 30, so start looking now.
 
Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.newjerseynewhomes.blogspot.com/
http://www.joegiancarli.com/

New Federal Program will Encourage Short Sales in New Jersey

Beginning April 5, the administration will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales by streamlining the process.

The program will offer a cash payment to the home owner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance.

To curtail fraud, lenders will have to consult real estate practitioners to assess home value and minimum acceptable offer; they then must accept any offer that is equal to or higher than that.

If you are having trouble making your mortgage payments, realize there are options to foreclosure.  Contact me today - don't get too far behind.  I can help sell your Mercer County home.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://newjerseynewhomes.blogspot.com/

Remodeling your Hamilton, NJ Home

With the weather we've had lately, you are probably thinking of Spring projects.  If you aren't ready or willing to sell in the New Jersey real estate market of today, remodeling - at least small projects - probably sounds intriguing.  It could be a way to change part of your home to make it more livable for you, or perhaps add an improvement for when you do sell.  Here are 5 Tips for Remodeling your Mercer County home.

1.  Make a list of ideas and prepare a budget
You probably already have some projects in mind.  Prioritize them, then invite a professional remodeler to visit your home and give you cost estimates.

2.  Hire a Professional
Start by searching NAHB's Directory of Professional Remodelers at www.nahb.org/remodel. You'll get a list of nearby remodelers to contact. Asking realtors, friends, and neighbors for names of qualified remodelers will also help you find a match for your project.

3.  Check his or her references
After you narrow down the professionals who match your project's needs, conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.

4.  Prepare and sign a contract
Don't hire any professional without a thorough understanding of what they will accomplish and charge and get it in writing.  You'll want to check the remodelers' insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits, and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.

5.  Use the energy efficiency tax credits now available
There are credits for doors, wndows, insulation, heating, air condtioning, water heater, energy-generation products, and more.  Make sure the professional you hire uses the latest green materials and design, and informs you of the tax savings for each item.

I've had many years of experience in the building trades and can help you choose a remodeler or advise on which projects will bring you the most value for the cost.  A good place to start thinking of what remodel you might want is to look at the sales prices of your neighbors' homes.  Use the search page on my web site, and contact me for real estate specifics on any Mercer County or Hamilton NJ community.

Joe Giancarli, Sales Associate
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.net/
http://www.newjerseynewhomes.blogspot.com/

Tips for Staging your Hamilton NJ Home to Sell

In the market we've experienced for the last year, Buyers are in the driver's seat and sales have been driven totally by what buyers want.  It has been, and still is, imperative that if you want to sell your property, you need to make the home stand out from your competition.  The competition means foreclosures, short sales, and fixers - in other words, Deals for Buyers.  If your home is in good condition, then you need to maximize the value - or stage the home to sell - before the buyers walk through your front door.

Here are some tips to stage your Hamilton home so you will be able to sell it faster for a better price.

1.  You only get one chance to make a first impression.  More than 50% of buyers won't even get out of the car to come to your door, so you have to make it inviting for the rest as they pull up to the curb.  Repair, clean, do what you can about the weather (don't leave the snow shovel by the driveway), and set the tone to entice buyers.

2.  You will strategize with your Realtor (hopefully me) about the best way to market your home, both online and through open houses and showings.  Staging takes this strategy one step further.  It allows the buyer both the mental space to imagine their own belongings in the rooms and the ability to get excited about the life they could have in your home.

3.  Declutter:  remove unnecessary momentos, trinkets, pictures and more.  Rule #1 - you will be moving. Start the process now.  The buyer wants to see themselves in your home, not you.

4.  Remove furniture:  this goes a long way to helping declutter.  Keep enough furniture to show how a space could be used but not so much that the room will seem smaller and stuffed with pieces. 

5.  Single spaces:  if you have a great room, or bonus room, don't try to show more than one use for that space.  For instance, stage a family room or office but not both in the same space.

6.  Along this same idea, if you have a "themed" room, get rid of the theme and make it neutral.  No buyer wants to see your idea of the best football team or rock band.  Rule #2 - you need to appeal to the largest number of buyers.  Don't discourage anyone by showcasing your own tastes.

7.  Neutrality:  good in color, good in decor.  Many homes now have a wall that is painted an offset color.  Just be sure you don't have a totally pink or purple room.  Think of all those buyers who don't like pink or purple.  They won't buy your house.

8.  Clean and clean again:  even if you have to hire help, the importance of this step cannot be overemphasized.  Think of what appeals to you - probably not fingerprints on the windows and mirrors, hair in the shower, brown on the white tile grout - you get the idea.

9. Use your senses - no pet odors, no diaper odors, no heavy use of scented candles.  Remember #8 - neutrality applies here too.

10. Finally, staging usually means accessorizing.  Do what you can with your budget - throw pillows for color, a kitchen cookbook opened to an appealing photo, dinner table set with attractive mats and flowers.

If you can, complete some inexpensive updates.  I can help advise you which will bring you the best return.  Outdated light fixtures can be changed rather inexpensively. Paint or stain patios and concrete that look dingy. Vinyl tile can be laid using easy snap lines. Carpet squares can be pieced together to freshen up tired flooring. Think about buying new appliances; these are great selling points, especially ENERGY STAR, and the stainless steel version.

Contact me to develop a marketing plan for your home, to discuss how you can attract the highest number of buyers, and present your "product" in the most attractive way.  I have the experience in Mercer County real estate to help you stage your home to sell.

Joe Giancarli, Realtor
609-658-2612
jgiancarli@remax.net
http://www.jgiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/