Monmouth County Real Estate

So, I am sitting at my desk looking over articles about housing prices, the ups and downs of the market right now, and comparing sales in Monmouth County to the national home sales for the month of October and am bored to tears! Yes, I love real estate, it is a passion of mine and I am one of those rare people that can honestly say that I love what I do, but with the holiday coming, I just cannot stare at my numbers and stastics. Visions of sweet-potato & marshmallow casseroles, turkey legs, and buttery mashed potatos are all I can see when I see sale prices and closed deal totals. If I stare closely enough, I could even sware I see a little gravy stain over October home sales (which, to note, are up since the bottom level in January by 37%).

Instead of the usual blog, which I know, thousands of you will be oh-so-disappointed this evening, I am going to share some links and sites that you may enjoy as you prep for the holiday. Don’t worry, I have enough market trend information to share with you after Thanksgiving!

- Ever wonder about celebrity real estate? How much did Brad Pitt and Angelina sell their home for? Did you know Nicholas Cage’s home is in foreclosure? All this can be found out at Zillow.com‘s Celebrity Real Estate Blog. Let’s face it, everyone is curious about celebrities. Do not lie when you are flipping through channels and realize that you just spent 30 minutes sucked in by TMZ! Give this site a try – it can be entertaining http://www.zillow.com/blog/category/cele…

Thanksgiving Cocktails anyone: http://www.foodvu.com/content/top-10-tha…
Go for the Caramel Apple Martini!!!

Want to be prepared for all those holiday stains that are inevitable once your Great Aunt starts hitting the spiced cider or your little ones want to have cranberry sauce without a fork…
 http://www.cbsnews.com/stories/2009/11/2…(CBS%20News:%20Bob%20Schieffer)

And, lastly, even though I never go shopping on Black Friday, not because I want to be one of those people that say, “Oh, I don’t want to deal with the crowds,” but because I am still in a Turkey coma at 4am on Friday and never plan what I am getting anyone for a gift till the week before Christmas. Here is a site dedicated to the daily updates on all Black Friday sales:
 http://bfads.net/

Have a great holiday, be safe, and enjoy your family & friends!!

So, you decided to list your home with a for-sale-by-owner website instead of listing with a traditional agent. Why give a real estate agent a commission when you can pay a small fee to a website and have your home listed for you. Historically, 15-20% of the market was made up of for-sale-by-owner (FSBO) properties. More FSBOs pop up during an up-market and decline in a down-market and prices range from $59.95 a month up to $810 for a 6-month membership (note – prices may vary, these are just averages). Certainly sounds better than giving away 6% of your sale price, right? I cannot argue that.
I can argue that with a FSBO, your home’s public exposure will be less, your sale price will be lower, and the time of the market will be longer. And, these are not points that I am pulling out of my realtor cap, they are statistically proven. When you list with a traditional agent, your listing is put into your county multiple listing service (MLS). Each MLS syndicates their listings to hundreds of real estate sites across the Internet including Realtor.com, Trulia.com, Zillow.com, and even Craig’s List. Your home is listed on the agency site, agent’s personal sites, sent via an electronic flyer to other agents with listing updates, sent to prospective customers via e-greetings, and even posted on Facebook business/fan pages. You name the virtual outlet and most likely when you work with a traditional agent, your home will be listed on there. With FSBO sites, your home is listed on that site and some various partner sites but the exposure electronically. With a traditional agent, you do not have to pay extra for your home to become a “featured property” in print or online. FSBO sites require extra fees for that.
As for the listing price, because traditional agents are trained in determining the correct selling price based on comparative market analyses, the average listing price is higher than FSBOs. Last year’s median sale price on a FSBO was $153,000 versus $211,000 for owners who listed their home with a traditional agency and agent. This is based on information from the National Association of Realtors.
The National Association of Realtors is also showing that for the month of October, homes are staying on the market for up to 7 months. This is up from last year. With FSBOs, however, homes are staying on the market much longer due to less exposure and the amount of time selling your own home consumes. Most for-sale-by-owners throw in the towel after 30-45 days and hire a traditional agent. I could write page after page on why hiring an agent is worth the money. I could go on talking about dealing with the title companies and attorneys, home inspectors, insurance companies and even the buyers, however, I honestly think that if you are not sure about listing your home on your own, give yourself that 30-day trial period. Once you set up your first open house with balloons, signs, coffee & cookies, and wait by the door for potential clients on a Sunday when you could be out with your family or watching the football games, you may be surprised how signing a contract with a listing agent for a 4% commission (that is my standard listing rate), is a lot less headache and worth every penny!

I am sure now more than ever, as you walk down your neighborhood streets, you look into the window of a locally owned small business that sells nothing but, say, flags, and wonder, “In this economy, how are they still in business?” I mean, really, is there a large demand for flags year round? How do they make rent? Do they have a large online business for flags? It just doesn’t add up. The best of luck to them because obviously they are doing something right since they are still standing! Karma is certainly on those small businesses that are making it through this tough market. Asbury Park, NJ has their fill of local business owners that are staying alive through the tough times and our community is here to support them!
Our community here in Asbury Park is welcoming a new small business duo to our downtown area that is already proving to be worthy of our patronage. Husband, Enrique Wegel, and wife, Reggie Flimlin, have taken over the ground floor of the old home of the Asbury Park Press. They own a business that is all about “positive energy, healthy living, and building a broadminded community.” Scheduled to open this week into the weekend, “Yoga Basin & Juice Bar”, will offer hot yoga and zumba classes, as well as an all-natural juice bar. The hot yoga will vary in temperature depending on the style of the class and the participants. The juice bar is all about purging the body of impurities and replacing it with all the healthy stuff.
“Flimlin and Wegel are a perfect example of the alternative and creative businesses now locating here in the wake of all the economic changes in the past year… Flimlin and Wegel are particularly impressed by what Reverend David Stout has built at Trinity Episcopal Church and what Marilyn Schlossbach and crew have developed at Langosta Lounge on the boardwalk. They want to emulate both.” I can certainly see why they would want to follow those footsteps. Stout and Schlossbach’s places are both broad-minded, creative, and diverse. It is exactly what our community is looking for.
The couple opening the Yoga Basin is Asbury Park property owners and plan to live here full-time next year once their children have graduated high school in Montclair. They were even married by Reverend Stout five years ago! For five years their hearts and spirit have been a part of the Asbury Park community.
Another great piece of information about this couple is that they are living up to their beliefs. When renovating the space, all new building material is at least 80% recycled and they insisted on recycling all the reusable material being ripped out. And, I mean everything from a nail, a screw, to a door. It was all reused and if they had no need for it; it was donated to Habitat Restore or In need Contractor. If you can believe it, Flimlin and Wegel never had a dumpster during construction! They did not need it.
This couple is truly remarkable and Asbury Park is extremely lucky to have them. Cultural diversity is going to play a large role in the Yoga Basin and Juice Bar. Besides offering culturally diverse consumer products, they have plans to work with state and local organic farmers to use their products at the Juice Bar.
It looks like Asbury Park’s downtown area is showing us how and why these small businesses are surviving this economy. They are not just about flags or yoga and juice. They are part of a very special network of owners who are cooperative and friendly. They are the reason Asbury Park is reaching its goal faster than expected of becoming a center for the alternative, creative, and broad-minded. They are people who are unconventional and do not rely on walk-in traffic.

New Jersey, including the Jersey Shore is famous for our diners.  Everyone from New Jersey knows that at any time of the day, you can get breakfast at the diner.  24 hours a day, 7 days a week, breakfast is served.  It is a unique quality New Jersey has, especially since breakfast food is oh-so-delicious, and till you come check it out for yourself, you have no idea. 

Metromix ranked the best of the Jersey Shore for breakfast… 

Best of the Jersey Shore: Breakfast | Metromix Jersey Shore

What is your favorite breakfast spot?  I have broken down my favorites on the list…

Frank’s – Asbury Park Love there Turkey Club and the Pork Roll really is the best!

Sunset Landing – Asbury Park  Love the rustic look and the pineapple app!

Turning Point – LB in Pier Village always a great hearty breakfast

Let’s talk breakfast…  during the holiday season it is always great to gather with friends and family  for brunch.  Where do you like to go?

The Langosta Lounge in Asbury Park is a very unique restaurant that features Vacation Inspired Cuisine brought to you from the places they go and the passionate people and cultures which shape them.

The triCityNews originally reported on the coming of Langosta Lounge and Marilyn Schlossbach to Cookman Avenue. For the past 20 years, Schlossbach, 39, has been behind some of the most progressive restaurants in our area (Oshin, Labrador Lounge, Rosalie’s Kitchen). A surfer and environmental activist, Schlossbach is simply one creative surfer chick! Schlossbach wants to be in Asbury because of the urban feel, as well as the proximity to the beach.

She’s exactly what we want here, and the type of person who will help keep Asbury on track to where it should be going.

A great weekly event that Langosta hold is Dinner & a Movie on Wednesday nights. An affordable yet sinful 3 course meal is included with free tickets to the screening of an independent film. The perfect date night!

This is just another reason for anyone looking to relocate to a small shore town but still get the feel of urban life. Does anyone have a favorite of Asbury Park’s these days? It seems that each week something new is opening up. Give it a try and come down to Asbury Park, stop at Langosta Lounge for a drink, and then walk around the area, see the revitilization taking place. You won’t want to leave!

When you listen to the news or read the papers these days, you would never know if the economy is getting better or worse.

The other day I posted an article from the Wall Street Journal reporting that the U.S. Federal Housing Administration announced that their cash reserves have dropped below the congressionally mandated level. Sounds like more bad news at first, but there is some good that comes from this annoucement. It is time to BUY, BUY, BUY! If you have a home to sell, it is time to LIST! Reason being, the buyers are out there. They have been given the green light to purchase a new home right now. The annoucement concerning the low level cash reserves with the FHA means that soon, major changes are to come. That could mean more money down, higher credit score requirements along with a higher up front premiums… so buy now before changes are implemented! Also, more homebuyers have been added to the pool for receiving tax credits with the new extended & expanded tax credit program. Lastly, homes in NJ are hanging their “for sale” signs for a lot less time than a year ago (see chart below, © Copyright 2009 by Otteau Valuation Group, Inc.).  The amount of inventory/competition is lessening.  So, to sum up this posting, look for the silver lining in this economy and search for your dream home today before the changing times make it less attainable.

Projected to open around Christmas, Pat Fasano, a real positive influence in Asbury Park, has set into a motion a new bar called the Bond Street Bar. The space has been a bar, what was history can tell, since Prohibition, but Fasano has completely gutted it and replaced it with interesting & historic pieces from previous rehab projects. It is as if he is recycling old Asbury Park into the new Asbury Park since many of the aspects are from previous Asbury landmarks.
The vision for this space is simply to be a watering hole in downtown Asbury Park for the locals, namely those who live and work in downtown Asbury. “Because of the project’s simplicity and beauty – and the local talent he’s hired to put it together – we predict this will grow into a big success. It will be a magnet for the alternative and creative community that is so vital to our city. And, the Bond Street bar will mix excellenty with other downtown places like the Annex at the Brickwall, and potentially the reopened Tap Room if that place develops a broadminded bent.” (triCityNews).

Straight from Pat Fasano, he explains that the bar’s theme will be “a low-price neighborhood bar for the downtown locals. For people who live upstairs in the buildings and those who work in the downtown. It will be known as the Bond Street bar, but I don’t want an official name. I don’t want a phone number or a fax machine. Someone will have to take you here.”

Well, for myself and the rest of the Asbury Park locals, we are excited for the Bond Street Bar and hope to see everyone out there!

Here is the article from the Wall Street Journal today discussing the FHA’s reserves dropping below levels required by Congress.
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NOVEMBER 12, 2009, 1:42 P.M. ET
FHA’s Reserves Drop Below Level Required by Congress
By JESSICA HOLZER

WASHINGTON–A key measure of the U.S. Federal Housing Administration’s cash reserves has dropped sharply to well below the congressionally mandated level, according to an actuarial study of the agency’s finances released Thursday.

The FHA’s excess reserves available to cover losses have fallen to an estimated 0.53% of the agency’s total book of business as of the end of September–down from 3% last fall, said the U.S. Department of Housing and Urban Development. That is well below the 2% cushion mandated by Congress.

Still, the FHA, which is located within HUD, had total reserves of $31 billion, more than 4.5% of outstanding FHA-insured loans. Total reserves have grown by $3 billion over the past year, even as the share of reserves compared with the FHA’s book of business has shrunk.

“We take potential risks to FHA … very, very seriously,” HUD Secretary Shaun Donovan said.

However, he noted that in almost every economic scenario contemplated under the study, the FHA still has enough reserves to cover projected claims on outstanding loans. If the FHA’s reserves vanished, the agency would need an appropriation from Congress for the first time in its 75-year history. The agency would still honor claims against its fund, Mr. Donovan said.

The FHA, which insures mortgages for eligible borrowers, has seen its business swell to meet demand as private-sector lenders have pulled back amid the housing downturn. Rising defaults on FHA loans have stoked fears the agency will need a taxpayer bailout. Defaults on FHA backed loans reached 8.24% in September, up from 8.1% in August and 6.1% one year ago.

FHA Commissioner David Stevens denied the agency would need a taxpayer bailout in testimony before Congress last month. However, on Thursday, officials appeared to soften that stance, saying it was difficult to predict how the U.S. economy would fare.

“There’s a significant chance that the housing recovery we’ve seen doesn’t continue,” Mr. Donovan said, adding that the government needs to be prepared for “a range of scenarios.” HUD, in recent weeks, has taken steps to tighten appraisal standards and requirements for mortgage lenders that underwrite FHA loans. On Thursday, it named Robert Ryan to a newly created position as FHA’s chief risk officer.

Mr. Donovan also said HUD was “actively looking” at raising borrower premiums and minimum down payments for borrowers as a way to restore the cash cushion.

Borrowers currently are required to pay a 1.75% upfront premium and ongoing monthly premiums of at least 0.5%, depending on a mortgage’s loan-to-value ratio. Rep. Scott Garrett (R., N.J.) is pushing legislation that would lift FHA’s down payment requirement to 5% from 3.5%. On Thursday, he said the actuarial study “calls into question the fiscal soundness of the agency.”

HUD officials had planned to unveil the results of the study last week, but delayed the announcement when they detected a problem with the results of various stress tests, Mr. Donovan said. When the firm conducting the study made adjustments to its assumptions, the ratio of the FHA’s excess reserves to outstanding loans fell from 0.8% to 0.53%.
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It seems to be perfect time to buy… rates are low, the homebuyer credit has been extended so you will get $8000-$6500 back, and the inventory is out there! If you want to buy, don’t hesitate any longer. Basically, all the cards are in place for an opportune time to purchase a new property.

Before we discuss the update on the tax credits, let’s all say together, “AND THE YAAAANNNKKEEEE WIIIIIINNNNNN!!!!” CONGRATS TO THE NEW YORK YANKEES FOR THE 27TH WORLD SERIES TITLE!

I posted last night that the U.S. Senate voted 98-0 passed the homebuyer tax credit extension. Earlier today, the House concurred on the Senate Bill by a vote of 403-12. This bill now moves to the President for his signature. President Obama is expected to sign the bill Friday and will become effective after he signs.

Here is a brief description of the tax credit:
The tax credit is available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.

The credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser. A new $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010 has been instituted. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years. Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.

Here is a list of questions and answers the National Association of Realtors has been receiving:

1. Existing homeowner credit: Must the new house cost more than the old house?

A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

2. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

3. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?

A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).

4. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

5. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.

6. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
 http://tinyurl.com/yh652qr

Brian Williams reported tonight that the Senate voted 98-0 to extend unemployment benefits this evening. In this bill, the extension of the First Time Buyer Credit has also been extended. Click on the link below to read the latest from Bloomberg.com News, a major global provider of 24-hour financial news and information
 http://www.bloomberg.com/apps/news?pid=n…