Local Real Estate Sales Data Is Important Information

Real Estate Sales Data

Real estate is local.

Whether buying or selling a home, obtaining local real estate sale statistic information is important, whether your search for a home or sale of a home is in Iselin, New Jersey, Colonia, in Middlesex County or in any other County or State.

This type of information can help you see the factual average trends of real estate sales and sale prices in particular Towns of interest as compared to reading about regional or national statistics. While statistical information is important to review, knowing the average sale prices is just part of the process of understanding the current trends in real estate values for a particular location, especially when buying or selling home.

Other important information to obtain would be the comparison of closed sales from one year to another, the comparison of active homes on the market to sold and closed sales and a list of recent homes which were taken off the market unsold, commonly referred to as expired listings.

Obtaining local, reliable real estate information is extremely important to home buyers and home sellers, especially in a real market like this one in 2009. Obtaining this type of information, and more information about a particular area, is not difficult. Most all real estate agents can provide it. However, it is the interpretation of this information and data which becomes even more important in making home buying or selling decisions. And that leads to another very important consideration in buying or selling a home, selecting the REALTOR to help.

For home buyers, find a REALTOR who has recently sold homes in the desired areas of your home search, is very familiar with market values and continually shows various homes in the price range and area desired. Lastly, select a REALTOR who is not hesitant to provide all the real estate statistical information pertaining to the home purchase decision.

For home sellers, find a REALTOR who has recently sold homes in the surrounding area, is very familiar with market values and continually shows various homes in the price range and area the home is located.

Lastly, select a REALTOR who is not hesitant to provide all the real estate statistical information pertaining to the home buying or selling decision.

Click Here to Middlesex County Sale Statistics obtained from the Middlesex County Multiple Listing System.

For More Detailed Information, Click Here.

A Home Is Worth What It Is Worth_Part Five

Factors That DO NOT Affect the Value of a Home_Continued

• How Much the Seller Needs
  

Whether a home owner has owned their home for 30 years and has paid off their mortgage, or is one who has owned their home for only a few years and has an equity loan on top of the original mortgage, the market value of their home is what it is. Market value has nothing to do with mortgage balance.

Likewise, where the owner is planning on moving to another home, what they need to spend for their next home does not have an affect on the value of their current home. Their home is worth what is worth, whether they are moving into a home they already own, buying a less expensive home or are purchasing a much more expensive home. Market value has nothing to do with the amount the owner needs to purchase another home.

In either scenario, there is a reality however. In order to sell a current home, there needs to be sufficient sale proceeds to pay off the existing mortgage(s) and, or, provide enough equity to enable the purchase of the next home. For many owners, it is a matter of choice. Is it worth it to sell my current home and move forward or not? For others, the options are not that simple.

Home buyers make their purchase price decisions based on how much a home is worth to them, not on how much the seller is asking or how much the seller needs. Buyers look and compare one home to another. They ask to see comparable sales, and they base their contract offer on what the real estate market is saying the value of the home is. A home buyer will not pay more for a home than it would cost them to find a similar home, in similar condition and with similar amenities.

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A Home Is Worth What Is Is Worth_Part Four

Factors That DO NOT Affect the Value of a Home_Continued

• Actual Cost of Improvements and Repairs

While it is true that that the condition of a home has a definite affect on its market value, and that a well maintained home will sell for more than a home in need of updating and repair, the actual cost of making repairs and improvements may not be equal to the increase in market value. Why? Cost does not necessarily equal value in real estate.

Repairs and improvements are two different things. A repair corrects something that is broken or not working properly, and does not necessarily add value to a home when fixed. Some types of repairs are considered necessary repairs. A leaking faucet, broken windows, clogged drains, screens with holes, gutters hanging from the roof, missing downspouts, cracked concrete walkways, among others. Repairs like these can be considered deferred maintenance, are considered minor repairs. They are maintenance related and are easily noticed by buyers. They draw attention and become distracting.

If not taken care of, conditions like these will definitely have a negative impact on the marketability of a home which will then have a negative affect on market value. When repaired or fixed, these type repairs make a home more saleable, not necessarily more valuable. In other words, just because repairs cost $1,500 does not mean that they have increased the value of the home in that amount. However, if not repaired, they could result in a loss in value of more than the cost to repair and, maybe more important, the loss of potential buyers because they feel the home needs too much work.

What about the roof, exterior siding, windows, heating system, electrical system, central air conditioning system and hot water heater? These type improvements are more costly than the repair items noted above and can have a larger impact on marketability and market value. While a buyer may not rave about how beautiful the furnace looks because it is now, they will definitely have negative thoughts on a home where the furnace is original and is 50 years old. A new or newer furnace will be more efficient than the original, save the buyer money in monthly fuel bills and, more importantly, is an item that will not need to be replaced by the buyer in the near future.

These type items relate to the effective age of a home. The chronological age of a home can be different from its effective age. There is a life expectancy in how long a roof will last, how long a furnace will last, etc. A 50 year home can have an effective age of 20-30 years when improvements like these have been made. When comparing homes, buyers are concerned with near future essential improvements which need to be made, especially those that are costly, like these.

Quite often buyers will pass up on homes they are interested in simply because they need too much future updating, even if the asking price is appropriate considering the condition of the home. Why? Very often they just do not have the time or inclination to take care of major updating, but more importantly, they may not have the additional cash to make the improvements after closing as they have exhausted their savings for the down payment and closing costs.

Should a homeowner replace the original 50 year old furnace when they are ready to sell? Should they invest the $2,300 to $4,000 and have the furnace replaced? A furnace is an integral system to the home, and one buyers are concerned with. However, it is just one aspect of the home. The question relates more to whether it will cost more to sell the home with the original furnace than what it would cost to replace. If the furnace is the only item requiring immediate attention, it may not prevent a sale. However, if there are other must do improvements, it will have a negative impact on market value.

Decisions like this have to take into consideration the overall condition of the home. When investing in a new furnace today and spending $2,500, what is the likelihood of receiving a full return on the investment? The reality is that it will help sell the home, but not necessarily at a price to recapture the cost of new furnace.

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A Home Is Worth What It Is Worth_Part Three

Factors That DO NOT Affect the Value of a Home_Continued

• When the Home Was Purchased
  
  

Whether a home was purchased twenty five years ago, three years ago or just last year, the purchase price was the value when it was purchased, and has nothing to do with it’s market value when being sold. A seller with twenty five years of home ownership and substantial equity has the same right to fair market value as an owner with just 3 years of home ownership and perhaps little or no equity accumulation.

Decisions to sell may be difficult for owners with short term ownership especially when real estate values have not increased, or have possibly dropped since the home was purchased. Home owners with long term ownership and substantial equity can make selling decisions easier than owners selling their home without the benefit of real estate appreciation.

In either case, the market is the market, regardless of when the home was purchased, and the home is worth what is worth.

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$8,000 IRS Tax Credit is Like a Cash Reward For Buying a Home in 2009

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.Unlike the First Time Buyer Tax Credit passed in 2008, this First Time Buyer Tax Credit does not have to be repaid. A tax credit is not an income tax deduction. It is a reduction in income taxes owed.

$8,000 Home Buyer Tax Credit at a Glance
· The tax credit is for first-time home buyers only.
· The tax credit does not have to be repaid.
· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
· The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
· Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

For a qualified first time buyer, this tax credit can be compared to receiving a cash reward for buying a home. The cash reward is received when filing the 2009 income tax return. Most first time buyers utilize most all of their savings when purchasing a home. Wouldn’t it be advantageous to have $8,000 to replenish the savings account after the home purchase, have the money available to replace the older, less efficient furnace in the home purchased or replace the exterior siding? Perhaps paying down the outstanding mortgage balance, and saving even more money over the term of the mortgage? There are numerous options and opportunities this tax credit provides.

Mortgage interest rates are historic lows. Most areas have experienced an adjustment in home values. Uncle Sam has decided to give qualified first time buyers a cash reward for purchasing a home! If purchasing a home is something you are considering, explore all the available options whether you are looking to live in Iselin, New Jersey or any other city or state.
For more detailed information on the $8,000 First Time Buyer Credit!

A Home Is Worth What It Is Worth_Part Two

Factors That DO NOT Affect the Value of a Home_Continued

• The Price Paid For the Home
  

The price paid for a home one year ago, three years ago, five or ten years ago has nothing to do with what the home is worth today. Real estate values exist at a fixed point in time. A home may have been purchased for $300,000 three years ago, and may be worth $315,000 today. Someone else may have bought a substantially similar home for $250,000 five years ago and it is worth $315,000 today. That is a drastic difference in equity in a relatively short period of time.

Real estate ownership has been blessed with appreciation in home values, but that appreciation is not always in a straight line. Real estate values are not static. Over the long term, an investment in real estate is generally considered the most valuable type of investment, one with the best financial returns. Over the long run, it is probably the best investment people can make.

Depending on the market conditions when the home was purchased, some owners were fortunate and purchased in a buyers market before the increases in real estate values like we just recently witnessed between 2001 and 2006. Others may have bought at the end of a strong real market and were forced to pay top dollar in a highly competitive sellers market, as many owners are experiencing now who purchased their home late in 2006. It is economic market conditions, the economy, employment, mortgage rates, supply and demand, that create changes in the real estate market and cause real estate values to increase, remain stable and perhaps drop at different periods of time. These are the factors that are beyond an owner’s control.

All owners would like to get the price they feel they should get for their home when they choose to sell. The reality is, their home is worth what it is worth, and that is the price a willing buyer is willing to pay. A buyer will not pay more for a home than what they would have to pay for another home with similar features and amenities in a similar location, something called the “Principle of Substitution”.

It is for that reason why so much reliance is placed on sales data when establishing market value, and not personal emotions or personal circumstances.

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A Home Is Worth What It Is Worth!

Factors That DO NOT Affect the Value of a Home

• The Price Paid For the Home
• When the Home Was Purchased
• The Cost of Improvements and Repairs
• How Much the Seller Needs

When selling a home, there are many factors which affect market value and the eventual sale price of a home, such as location, condition, size, amenities, features, improvements and upgrades, local economic conditions, the current real estate market and mortgage interest rates, among others. Some of these factors are within the control of the owner, and others are beyond the control of the owner.

The definition of Fair Market Value includes various terms such as: the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale; the buyer and seller each acting prudently and knowledgeably; assuming the price is not affected by undue stimulus; normal marketing time period, informed buyer and seller.

In helping owners obtain a Market Value estimate for their home, REALTORS® can provide a Comparative Market Analysis (commonly referred to as CMA). A thorough Market Analysis will include full property details and pricing information of the most comparable type properties currently listed on the market for sale, recent pending or under contract sales, those where a contract offer has been accepted, recently closed sales transactions as well as listings which have expired, those that did not sell during the marketing time period.

The purpose of a report like this is to provide the owner with factual information to help them in their decision to sell by providing a recommended asking price and estimated sales price. While no two properties are truly identical, an analysis like this can provide home owners with the most reliable method of obtaining a market value estimate for their home.

In the process of reviewing the pricing information however, it is quite common for owners to question the market value estimate and pricing recommendations. The questions and concerns they have about price, while valid in their situation, do not have an affect in determining the market value for their home. What are some of the factors that do not have an effect in establishing Market Value?

Choice Realty Co. Celebrates 35th Anniversary

March, 2009
David Fialk, Broker Owner, is pleased to announce that Choice Realty Co. is celebrating its 35 Year Anniversary as a full service, independent, privately owned Real Estate Company. We would like to thank all of our clients for making the past 35 years as rewarding as they have been!

Established in 1974, Choice Realty Co. has been providing professional real estate services to home buyers and home sellers, with a commitment to service excellence since its inception.

Located at 1144 Green Street in Iselin, New Jersey, Choice Realty takes great pride in the ownership of real estate as evidenced by the “Beautification Award” given us by the Woodbridge Chamber of Commerce in 1998.

Choice Realty’s primary market area includes the towns of Iselin, Colonia, Woodbridge, Avenel, Fords, Port Reading, Sewaren, Keasbey, Carteret, Edison, Metuchen, Rahway and the surrounding areas.

The real estate business and real estate industry has witnessed many changes since 1974. The most profound change occurred in 1995 with the advent of the World Wide Web, now commonly referred to as the Internet.

Seeing the benefit of what technology could provide in the marketing and selling of real estate, Choice Realty Co. launched their Website, www.ChoiceRealty.com in the fall of 1995. Back then, with dial up Internet connections and no digital cameras, photos of homes for sale had to be mailed to the Website hosting company to be placed on the Company Website. With that came our first sale to an Internet based customer inquiry, and a real estate closing on a listed property in Iselin in February of 1996.

So much has changed! Consumers now have instant information readily available to them on the Internet, whether they are just curious about real estate or are in the process of buying or selling a home. It is the content and timely delivery of this information to the consumer which becomes the challenge of the successful Real Estate Company today.

Providing information to the consumer, in a format and a manner they prefer, has now become the standard by which many real estate agents and companies are compared. It is a real estate business where simply putting out a sign, putting a home for sale in the MLS and putting an ad in the newspaper does not provide the marketing results of years ago.

Adapting to constantly changing technology and staying abreast of the rules and regulations in the real estate industry are probably the two most important concerns a Real Estate Broker needs to focus on in today’s real estate industry in order to have continued success, and Choice Realty Co. is looking forward to continued success as a Market Leader in real estate for years to come.

A real estate company can be judged by the professionalism and ethics of their Sales Associates and we are proud of the support, professional experience and length of service of our REALTOR Associates.
* Jennie Esposito * Donald Bence * Thomas Wood * Michael Kertes * Maryann Crowley
* Marie Morrell * Susan Lasky * Robert Andersen * George Balboa * Maureen Balboa
* Robert Denton * Mahendra Kamdar * Adnan Yousaf * Peter Cantillo * Bart Flanzbaum
* Devakaran Hunt * Dawn Damatta * Janine Piscadlo, Administrative Assistant

You can contact any of our REALTOR Associates for assistance with your real estate needs.

Choice Realty is a Member of the Middlesex County Association of REALTORS, New Jersey Association of REALTORS and National Association Realtors and provides real estate services through membership in the Middlesex County Multiple Listing System, Garden State Multiple Listing System and the Monmouth County Multiple Listing System.
Info@ChoiceRealty.com 732-283-2100 www.ChoiceRealty.com