September Market Seminar Par II

2. ‘I am going to time the Market and buy at

the peak inventory level and when no one else

buys…’Source: MLS

Source: MLS0

20

40

60

80

100

120

140

160

180

1/7/2007 4/1/2007 6/24/2007 9/23/2007 12/16/2007

Gross # of Guests 2007

Gross # ofGuests 2007

Weekly Guests Thru the Weichert Princeton Open Houses, 2007

Source: MLS

Inventory Levels, Princeton, New Jersey, 2007

0

50

100

150

200

250

1/8/07 3/5/07 4/30/07 6/24/07 8/20/07 10/16/07 12/11/07

3. ‘I am going to wait until the price comes down further and then make an

offer…’Source: MLS

Source: trend mls

Relationship of Price Reductions to ‘Pending Sales’

0

10

20

30

40

50

60

70

Princeton Pendings

Princeton Price Reductions

Town by Town Analysis 8/18/09Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

South

Brunswick

All Styles

208 24 8 43 19 35 16% 27 6 4

South Brunswick

Condo/ T.Houses

70 9 7 21 12 19 14 6 3 1

South Brunswick

55+

31 6 5 2 (4) 4 12 4 0 0

South Brunswick

Single Family

109 9 12 20 11 21 19 17 3 0

Monroe:

All Styles487 39 12 92 53 105 21% 41 7 9

Monroe:

55+312 29 10 53 24 68 21% 22 6 1

Monroe:

Single Family

175 10 21 39 29 37 21% 19 1 0

Source: trend mls

Relationship of Price Reductions to ‘Pending Sales’

0

10

20

30

40

50

60

70

Princeton Pendings

Princeton Price Reductions

Source: trend mls

Relationship of Price Reductions to ‘Pending Sales’

0

20

40

60

80

100

120

West Windsor Pendings

West Windsor Reductions

Source: trend mls

Relationship of Price Reductions to ‘Pending Sales’

0

10

20

30

40

50

60

70

80

90

100

Lawrence Pendings

Lawrence Reductions

Seeing the Opportunity.Seeing the Opportunity.

Seeing the Opportunity.Seeing the Opportunity.

Q. If this were 2005, where would you place the Price and Rate dots?

Prices Rates

High

Mid-Range

Low

A. In 2005, the V would look somewhat like this one, where prices were on the high end of the scale and rates were in the lower range.

Seizing the Opportunity.Seizing the Opportunity.

In recent history, there has never been an opportunity like this, with low prices and low rates. In real estate, this circular area at the bottom of the V is called the “Buying Zone” – it’s an unbelievable time to buy.

Prices Rates

High

Mid-Range

Low

Jeff Smith,

Gold Services Manager/ Loan Officer

Financial Benefits and Financial Benefits and Process of Home-Process of Home-

Ownership.Ownership.

‘I don’t want to buy a house and then watch it drop in value!’

 Purchase Price $329,000 Loan Amount $317400

Down Payment $11,515 Monthly P&I $1802

Appreciation/Depreciation Home Value1st Year -3% $319,1302nd Year 0% $319,1303rd Year 1% $322,3214th Year 3% $331,9905th Year 5% $348,5905 Year Appreciation/Depreciation $19,500

Tax Benefit  Vs Paying Rent @

$1600/mo1st Year $5,000 $19,2002nd Year $5,000 $19,2003rd Year $5,000 $19,2004th Year $5,000 $19,2005th Year $5,000 $19,2005 Year Total $25,000 $96,000

Total Gain $44,200Create Equity

v Pay Rent

+ The Amortization Schedule on a Loan

Yearly Schedule of Balances and PaymentsYear

Beginning Balance

Payment Principal InterestCumulative

PrincipalCumulative Interest

Ending Balance

2010 $315,646.96 $21,625.92 $4,374.96 $17,250.96 $6,128.00 $24,508.72$311,272.0

0

2011 $311,272.00 $21,625.92 $4,621.30 $17,004.62 $10,749.30 $41,513.34$306,650.7

0

2012 $306,650.70 $21,625.92 $4,881.98 $16,743.94 $15,631.28 $58,257.28$301,768.7

2

2013 $301,768.72 $21,625.92 $5,157.36 $16,468.56 $20,788.64 $74,725.84$296,611.3

6

2014 $296,611.36 $21,625.92 $5,448.28 $16,177.64 $26,236.92 $90,903.48$291,163.0

8

= Total 5 Year Gain: $59,922

Incentive From the Government

First-time homebuyers can receive a

tax credit up to $8000!

Tax Credit OverviewAmount Ten percent of the cost of home, not to exceed

$8,000

Property Any single family residence that will be used as a principal residence

Refundable

Reduces income tax liability for the year of purchase

Income Limit

Adjusted gross income of $75,000 single or $150,000 joint tax returns

First-Time Must not have owned a principal residence in 3 years prior to purchase

Distribute NAR Tax Credit Overview handout

Tax Credit FAQs

• Can individuals with incomes higher than the income limits still benefit from the tax credit?

• How does a tax credit work?

• How do I apply for the credit?

• Is there a way to get the credit before I file my tax return?

Distribute NAR Frequently Asked Question handout

How much house can I really afford?

• The first step is to meet with me!

Establish Establish YourYour Buying Buying PowerPower

Factors to consider Factors to consider when buying and when buying and

selling…selling…

Source: MLS

Inventory(supply and Inventory(supply and demand)demand)

Interest RatesInterest Rates

Interest Rates Remain Interest Rates Remain LowLowAverage Annual Rate (30-year fixed rate mortgage)

5%

7%

9%

11%

13%

15%

17%

19%

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Year

Percent

Source: Freddie Mac

Joshua D. Wilton, Manager

Strategies for Strategies for SellingSelling

Understand the Market You’re Selling Out Of

Princeton Boro & Twp

5-6 Months Market Absorption Rate indicates a normal market.

Active Pending Absorption Rate

$0 - $700,000 48 11 4 months

$700,000 - $999,000

35 1 35 months

$1M - $1.5M 28 4 7 months

$1.5M + 59 3 20 months

The Impact of Pricing on the Salability of Your Home..…

‘Great speech but does it really work?

We know the best way to evaluate pricing

Does this really work?

We know the best way to evaluate pricing

Does this really work?

22. . The Effect of The Effect of StagingStaging on the on the Value of a Value of a YourYour

HomeHome..

The process of preparing homes for sale regardless of

Price, Location, or Condition

To achieve the maximum sales price in the minimum marketing time.

The GOAL is to appeal to the broadest range of BUYERS.

The Way You Live In Your Home…

… And The Way We Market And Sell A House Are Two Different

Things.

“The Investment in Home Staging

is Always Less than Your First Price Reduction!”

Buyers Only Know What They See …

… Not The Way It Is Going To Be.

Based on a StagedHomes.com survey of over 400 homes across Canada & the Continental US prepared for sale by an

Accredited Staging Professional (ASP™) from June 2007 through November 2007.

The average increase in sales price of an ASP Staged vs. non-Staged home is

6.9%.That is an additional

$31,050 on a $450,000 sale.

The average marketing

time of an ASP Staged vs. non-Staged home is 80%

less.

3.3.The Effect of ‘The Effect of ‘Pre-Pre-Inspection’Inspection’ on the Sale of on the Sale of

YourYour Home. Home.

What is

‘Pre-Inspection?’

Home Inspection

WHAT DOES PRE-INSPECTION INCLUDE? The standard home inspector's report will review the condition of the home's heating system, central air

conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the

foundation, basement, and visible structure.  

PRE-LISTING Home Inspection

DOESN’T THE BUYER DO THE HOME INSPECTION?

All Negotiations, including real estate, are all about negotiation and control.

Who is in control?

Right Price

Right Staging

All Repairs are done in advance.

Offer a Home Warranty to the buyer..

PRE-LISTING Home Inspection

Data on where most sales fall apart: attorney review, home inspection.

Fall Thru Percentage 2007: 26%Fall Thru Percentage 2008: 10.2%.

Home Improvements

I am moving out of the house, I do not want spend too much money to move.

Or

I just spent $$ on a new kitchen, I want $$$$$$ back on that investment when I move.

Reality of today’s market is that you will see the return on your investment not in an inflated sales price but in retaining the highest percentage of your list price and staying on the market the fewest # of days.

Please consult with your Realtor & staging professional as to which improvements you should finish to make your home the most salable.

Weichert Family of Companies

What will a real estate company

do for me?

Making Your Purchase as Making Your Purchase as Smooth as PossibleSmooth as Possible

Buying a home involves the careful coordination of many people.

Choosing a real estate team you can count on will make the process smoother

and easier.

• Time is money.

The Weichert The Weichert DifferenceDifference

• Stress kills.

• Time is life.

Educate You.

Negotiate on your behalf.

Offer advice on due diligence.

Manage all aspects of the transaction

process.

What Will a Weichert Agent Do for Me?

We’re Here to HelpWe’re Here to Help

The Entire Process is reviewed by Legal Council.

Become a Fan!

www.facbook.com/weichertprinceton

www.slideshare.net/jdwiltonwww.slideshare.net/jdwilton

www.twitter.com/joshuawiltonwww.twitter.com/joshuawilton

Presentation available at all 3 sites, download file through Monday.

Resource and website list:

Realtor.org

http://www.facebook.com/pages/

NAR-Research/73888294183#

Remodeling.com

Resource and Website Resource and Website ListList

http://www.realtor.org/research/research/housinginx

Remodeling.com

www.Otteau.com

www.Pre-listing-inspection.com

Resource and Website Resource and Website List:List:

www.Housemaster.com

www.Stagingshoppingcenter.com

Resource and website Resource and website list:list:

www.Stagedhomes.com

www.realestatestagingassociation.com

www.foreclosurepoint.com

www.realtytrac.com

Good Luck with your Good Luck with your Move!Move!