Archive for March, 2010

I received this information this morning in my sales associate newsletter.  Given that I am working with several people short sale or foreclosure issues, I thought it was improtant to share it.  The Home Affordable Foreclosure Alternatives (HAFA) program will go into effect on April 5, 2010. Part of the government’s Home Affordability Modification Program (HAMP), HAFA was designed to help stabilize the residential real estate market by allowing the short sale process to move forward more easily.

Under HAFA, borrowers will be allowed to receive pre-approved short sale terms before listing the property, as well as $1,500 in relocation assistance, and they will be fully released from any future liability for the first mortgage debt. In addition, HAFA prohibits servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement, up to 6 percent.

In order to be eligible, the property must be used as a principal residence, the first lien must have been originated before 2009, the unpaid balance must not exceed $729,750, and the borrower’s total monthly payment must be more than 31 percent of their gross income.

This new, streamlined process makes short sales a better option for mortgage servicers, who are expected to now choose short sales over foreclosures in many cases. The decrease in foreclosures should help to stabilize the housing market. In addition, real estate sales professionals will be able to close more short sales and keep more of their commissions.

For more information on this program, please contact me directly.  Once we have the Frequently Asked Questions document completed, I will be happy to share it.

As you know, Governor Christie announced his budget message last week.  This included massive changes to school budgets throughout the state.  Bernards Township is losing $4 million for next year and an additional $1.6 million this spring.

The new budget will be reviewed tonight Monday, March 22, at 8:00PM in the Community Room at Bernards High School.  The Board of Ed Vote on the Budget is scheduled for Wednesday, March 24 at 7:30PM in the Community Room at Bernards High School.

Please come out and support the vote! 

I spent an inordinate amount of time this past week on a potential deal for one of my listings.  We had seven offers on the table – yes, SEVEN, in this supposedly dead real estate market (more on that later as this market is certainly not dead!).  The subject of my commission came up several times – my seller and more than one of the bidders asked us to reduce our commission in order to pull the deal together.  I can’t let that go without some sort of comment … I have two messages:

1. To the Buyers, commission is between the seller and the listing agent, you cannot change that and if your agent wants to reduce his or her commission to make your offer stronger, he or she needs to present a letter from their managing broker agreeing to that fact before I will let my seller sign the contract. 
2. To the Sellers, you signed a listing agreement giving me and Weichert Realtors the exclusive right to sell your property and you agreed upon a commission rate at the time that you signed that contract – please don’t ask me to address my commission again when we are negotiating a contract. 

Take a look at my current article over at the Basking Ridge Patch, it addresses real estate relationships in the state of New Jersey.  It is important to understand the difference between Buyer’s Agents, Seller’s agents and Disclosued Dual Agents.  You won’t necessarily get a better deal as a buyer if you work with directly with the listing agent; and as a seller, if your agent brings the buyer,  he or she immediately becomes a disclosed dual agent and you will not have the upper hand in the transaction.

If you have any questions about agency relationships please don’t hesitate to contact me directly.

Considering a move into or out of Bedminster, NJ?  It’s a great time to make a move – buyers and sellers alike.  The market is moving in Bedminster, showing activity is up on most of my listings and as I said earlier, I am even entertaining multiple offers in some instances.  I can set you up for listing alerts in Bedminster or you can search Bedminster homes, luxury homes or townhomes yourself.

I must apologize for being away for so long – it’s been very busy in my little real estate world!  I’ve ben dealing with mulitple offers on several of my listings (something we hadn’t anticipated), an appraisal issue for a property which is the subject of a contingency on one of my deals that was under contract, and working with a couple who needed to make a decision about a competing offer on a property that they were hoping to purchase.  I am happy to report that the buyers with the appraisal issue selected another lender and were able to close their deal, two of the sellers looking at multiple offers selected one – one is under contract and the other will be signed today, and the buyers faced with competition for the home of their dreams made a decision and have already completed their home inspection!  I will admit that after all that hard work, it feels good to have a few closings on the horizon!

So, how are things going in Bedminster?  Market Absorption is at a healthy 6.9 months; a somewhat balanced market that is still favoring buyers to some degree.  I am anticipating a bit of a jump in contract sales due to the impending expiration of the tax credit on April 30th.  If you are considering a move – whether you are a buyer or a seller – now is the time to do it!  Stay one step ahead of the game by registering for listing alerts – be notified of new Bedminster listings within 24 hours of availability.  I can also provide you with a current market analysis for your Bedminster home.  If you just want to browse the inventory – you can do that too: Luxury homes, Single Family Homes, Townshouses and Condos.

Take a quick look at what has sold since I last reported (2/22/10):

30 Tansy Court List: $240,000  Sale: $235,000 Mayfield Condo
64 Foxwood Court  List: $279,999  Sale: $277,500  Fieldstone Condo
41 Pine Court  List: $289,900  Sale: $270,000  Pinevale Condo
102 Stone Run Road  List: $415,000  Sale: $414,000 Stone Run Townhouse

Have a great day!