Think You’re Living Space is Small and Cramped?

Think you’re living space is small, feeling a little cramped like a sardine in a tin can or squeezed into a cardboard box? You just may have it a lot better living in a mansion compared to these people

  Warning, Not for claustrophobe's!

I suppose “city living” is for those not so attached to personal possessions either. I don’t know about you but I for one couldn’t live in the city just because I have so much “stuff”, little things that would break the bank to keep if living in NYC like… a car, automotive tools, ladders and other large tools, all my furniture, my atv and motorcycle, a snow blower, all my electronics toys a pool and so on.

Granted if living in the city some of these items would not be needed like the snow blower, a ladder and so on but I like my stuff, I like having a yard and I like having my space. Sure, city living has it’s advantages but if you examine them they are more beneficial for either older folks (if it weren’t for the cost) or the young party crowd,  I’d say the city favors them a bit more. I can’t see any advantage to living in the city other than there is a store outside your front door, you live blocks from bars, clubs and entertainment and….um… yeah, that’s about it.

The point of my rambling here is actually an amusing one, check out how this couple lives, personally I think their nutz paying $150,000 to buy this place plus pay a $700 monthly maintenance fee.

That being said, I’d like to introduce you to New York City’s Smallest Apartment - $150K for 175 Sq Ft., yes you heard that right, my dining room is about that size!

I can understand staying in the city one or two nights a week
hobnobbing in the neighborhood, networking, promoting one’s self and business or for entertainment purposes but to live like this is just a bit strange in my book.

I’m not claustrophobic or anything but imaging this apartment would not be a safe place for those who are to live. I would go absolutely crazy having to live in such cramped quarters alone forget about with another person and two cats! Oh, they also need to take an elevator and then the stairs to get to nicely tucked away apartment. I would be afraid of fire in this building seeing that it’s hard enough to get to under normal conditions.

Not many couples could live in complete harmony in a space the New York Post calls the “smallest apartment in the city,” but Zaarath and Christopher Prokop — plus their two cats — live in a 175-square-foot “microstudio” in Manhattan’s Morningside Heights.

Purchased for $150,000 three months ago, the co-op is 14.9 feet long and 10 feet wide and is on the 16th floor of a building on 110th Street, but, get this — it’s only accessible by a staircase from the 15th floor.

The couple has:

• a queen-size bed (about 1/3 of their living space)
• mini-fridge and hot plate (they don’t eat in very often)
• one kitchen appliance (a cappuccino maker)
• closet-sized bathroom with shower with sink and toilet (no long, luxurious baths here)
• kitchen cabinets that are used for their clothing (they don’t eat here, remember?)

With a space this small, they jog to work, picking up their clothes along the way at various dry cleaners around the city and some clothes are kept in their offices.

Curbed figures they spent about $857 per square foot in one of the priciest cities in the world. The Zillow Home Value for Morningside is $641,600 and the median value per sq ft for Morningside is $726.

The Prokops plan to pay off their mortgage in two years and then plan to remodel by installing a Murphy bed and larger windows. Their only cost at that point will be a maintenance fee of $700 a month.

Reference Source: Read the full story and see the comments of others on zillow.com

If you agree with me or not on what living comfort means, that’s a personal choice and either way our agent’s would love to help you find your mansion or tiny love nest to call home.

No matter where in the country or the world you’d like to live, call us and we will either personally assist you or match you up with an experienced agent in your area that would be happy to assist in your search, obtain financing, etc.

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330
Office: 732-650-9911
Toll Free: 1-866-745-4622

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

Click here for Door to Door Directions

Rates WILL Rise a Good Reason to Buy Now?

This article is related so can be considered as a follow up to the last article “If You Don’t Buy a House Now, You’re Stupid or Broke. The answer to that question is… Well that it really depends on you and your debt to income ratios and ability to repay and previous repayment history of debt.

Lenders are subject to extreme scrutiny at the moment. Above average defaults can have drastic consequences and no lender is immune. This has led to over the top caution and excessive documentation and underwriting requirements.

It is what it is, so we’ll have to deal with it and only deal with mortgage reps on top of their game and don’t make promises they can’t keep!

FYI Rates continue to be at or near historic lows.

Given the eternal optimism that is inside all of us we believe the low rates are here to stay (or go lower yet) but think again.  The writing is on the wall for higher rates next year!  With the Fed buying approx 80% of all mortgage loans now, they will stop doing this by March, and there are few other buyers at current price and interest rates.

As the Federal Housing Administration (FHA) considers  raising the minimum credit score requirement for new borrowers to reduce risks to the single-family insurance fund, Fannie Mae (FNM: 1.04 +13.04%) has increased the minimum borrower credit score from 580 to 620.

Brian Faith, a Fannie Mae spokesperson confirmed the minimum hike, adding that the adjustment reflects a careful analysis of borrowers’ ability to repay their mortgage obligations over the life of the loan.

Faith said “Our experience with recently delivered loans with credit scores below 620 is that they reached a level of serious delinquency at a rate approximately nine times higher than other acquisitions during the same period.”

Fannie also reduced the allowable debt-to-income (DTI) ratio to 45% when executing loss mitigation efforts under the Home Affordable Modification Program (HAMP). Under HAMP, the US Treasury Department provides allocated capped incentives to servicers for the modification of loans on the verge of foreclosure.

Faith said that “high DTI ratio loans also have higher levels of serious delinquency. “In other words if you have a lot of debt and keep stacking it on with new cars, credit card bills and other investments and leveraged to the hilt, maybe you shouldn’t be buying a home until you pay down some of that debt first.

It’s not enough to help borrowers buy a home – we must also ensure that they can stay in the home over the long term. Repeat business through ill-gotten gains is rare, immoral and unethical, at least in my book.

Contact us today for a free consultation to see if home ownership may be in your future.

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330
Office: 732-650-9911
Toll Free: 1-866-745-4622

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

Click here for Door to Door Directions

NEVER MEET ANYONE ALONE AT A VACANT OR UNOCCUPIED HOME

REAL ESTATE AGENT SAFETY ALERT

!!! ATTENTION !!!
REALTOR SAFETY ALERT BULLETIN

We care about agent safety, buyers please be understanding about our caution and probing questions, there are many valid reasons. Agents don't be too eager to help everyone that must see NOW, they’re not going to buy NOW! It’s a process…

Agents you can’t please everyone all the time and your safety should come first above all. Don't be afraid to turn down or reschedule requests from potential clients. Being too eager to help every client can be dangerous!

NEVER MEET ANYONE ALONE AT A VACANT OR UNOCCUPIED HOME

Bulletin Release from Middlesex County Association of Realtors December 12, 2009

In May of 2007, we sent an email advising that several members of  MCAR were receiving phone calls from man from a "restricted number". The caller would say he saw their picture in a real estate magazine and ask the agent to go out with him on a date. He first started making calls in 2006 and continued to call agents in 2007.

This week, one of our members called our office to tell us she received a call from a man at an "unknown" number who asked her out on a date. She told him she was married and hung up. The next day she received a call from a man named "Mavi" with the phone number - 000-012-3456 (a computer generated number) - who wanted to see a home which happened to be vacant. She didn't realize it was the same man from the day before until she met him at the home and heard his voice. At the home, he asked if he could kiss her and he leaned toward her. She got out of the house and called the police. He did not have a car parked by the home. He may have parked down the street or around the corner.

She described him as 5' 11" tall, 130 lbs. and between the ages of 25-30. She also said his hair was a little long and straggly and he had a strange look in his eyes.

 We are asking all our members, especially the women, to BE CAREFUL and NEVER MEET SOMEONE ALONE AT A VACANT OR UNOCCUPIED HOME. It might also be wise to avoid advertising any property as vacant, even if it is vacant.

You can read more about keeping safe by going to the Field Guide to Realtor® Safety at: http://www.realtor.org/library/library/fg201

If You Don't Buy a House Now, You're Stupid or Broke

Have you read this article yet? It was featured in Business Week. 

My first thought, wow! That’s blunt and kind of rude, a very harsh statement. But the writer, Mark Roth, uses this  head turning title to get your attention to make excellent points for those who are on the fence.  Namely that interest rates are at an all time low, in fact, the lowest in 40 years. He noted that in the late 70s, rates hit a high of 18%!

Can you ever imagine buying a house at 18%?  I  can't fathom the thought however not all too long ago in the grand scheme of life my parents did it, as probably yours depending on your age, as of this writing I’m 37.

Most of my friends and people buying homes in this generation either bought a home using an FHA loan in the 6%-9% range depending on how good or bad their credit was. Imagine having excellent credit and only being able to fetch a best rate of 17-18%, that’s just nuts, but possible to happen again in the not too distant future. 

In the 80s rates dropped from 12% to 9%, many people were thrilled, while most peoples reaction today today would be more like WHAT!!!! Well if you were previously at 17% or 18% you’d be dancing in the streets at the opportunity to refinance at those low by comparison rates. We’ve had it pretty good for so long now that most people can’t imagine rates so high these days.  

Generation X'ers probably would never dream of purchasing a home above 7% given all we’ve ever known are super low rates between 5% – 6%. Mr. Roth points out the history of previous interest rates as well as their impact on purchasing power. I happen to agree with his prediction that as the economy becomes more stable, interest rates WILL rise to hedge inflation as it wildly spins out of control thanks in part, a big part due to out of control government borrowing and spending. Heck even our country’s credit rating is in danger of losing its triple AAA credit rating.  I’ll make the prediction that by this time next year, rates will have risen at least 1%-2% higher than today.

Now let’s keep in mind if rates go up as expected, refinancing at a lower rate should not be counted on given the history and how long it may take in years for rates to even begin to fall without further government intervention.

These numbers are just examples but lets just say the average sale is $250,000. Assuming a 5% down payment at 5% interest on a 30 year fixed, your monthly principal and interest payment would be $1275.  If rates rise to 7%, your payment increases to $1580/month. 

Some buyers may be on the fence because they fear prices may drop further. Consider this. If there is a 10% decrease in price and the $250,000 falls to $225,000 in one year, but you wait to purchase and the interest rate rises to 7%, your payment will be $1422.  You spend more money per month plus at the higher interest rate, you pay more interest over the life of the loan.  Real estate appreciation is always a cycle and as the economy stabilizes, values will level out. 

Data being analyzing by many of the trend trackers are having the experts already saying this is happening in many markets and that this will occur by 2014 in many states. Making a home purchase is still a decision that should be weighed carefully, being a home owner is not for everyone. Some people with poor credit and personal financial habits or others with other reasons should probably remain renters. One important consideration will depend on how long you plan to stay in the home.  

Mark Roth summed up the article, "What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime." Depending on where you live I’d also have to add that you should also take into consideration funds from additional sources such as local government down payment and closing cost grants as well as the federal home buyer tax credit currently being offered while it lasts and not wait until last minute this time. The government will not be extending it again, this time they will actually have a phase out plan giving people plenty of opportunity to take advantage without just yanking the offer away.

Marivic GMAC Real Estate specializes in helping families make good decisions. We do NOT think you are stupid or broke if you don't buy a house right now.  But if you are considering purchasing a home and would like a FREE consultation, we'd love to sit down with you and help you weigh your options and direct you to a qualified, caring mortgage professional that will help you with the numbers.

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330
Office: 732-650-9911
Toll Free: 1-866-745-4622

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

Click here for Door to Door Directions

Are Free Credit Report Offers Really Free

  Are all the free credit report offers we always hear about on television and radio really free and if so what’s the catch?

The only real way I know of to get a copy of your credit report Free No Strings Attached from all three of the major credit reporting agencies FREE is by contacting them for a copy when and if you are ever turned down for credit. That is a requirement by law!

The other and most pro-active way of staying on top of your credit is by requesting a free copy of your report from all three credit reporting agencies every year. Federal Law requires credit reporting agencies to supply you with a free annual report if requested by the consumers themselves, so the question is why would you ever buy one or use one of the so called Free credit report agencies getting in your face via every form of multi-media out there?

DON’T!!! The bottom line is, unless you want to subscribe to their monthly credit monitoring services or other collateral services they’re pushing, there is no need.

I’m writing this article because it seems to be a topic that must be repeated and a constant reminder.

No matter if your going to rent a house or purchase one, your credit report will be needed, no if’s and’s or buts about it. The question is how and where do you get it, how much does it cost, are the free offers really free?

A simple internet search for the term “free credit report” will return 108,000,000 pages on google, WOW! Somebody is makin’ money on all those sites, many are scams, many legitimate but locking you into a monthly service charge that you cannot cancel if you order the “Free” credit report and many others talking about or reselling the services.

The ONLY place I would recommend you go to get your truly FREE no strings attached credit report from all 3 agencies once a year is from https://www.annualcreditreport.com/ or by calling

You can also opt to contact each of the credit reporting agencies directly via their websites or calling them for a copy of your report from each of them. It is important to check all three reporting agencies reports to get a truer picture of your credit score and any reports sent to one agency and not the other which will be reflected on your report.

• http://www.experian.com/
• http://www.transunion.com/
• http://www.equifax.com/

The FTC created a site to better educate consumers about all the credit report hoopla and even made a few commercials spoofing some of the services are using to bait and switch to get your free reports. Check out the government site for all the PSA’s and additional info http://www.ftc.gov/freereports .

Okay, I Got my 3 Free Credit Reports Now What?

Once you get a copy of all three of your credit reports, a quick way to get a quick overview of your credit is to look at the score from all three reports and pick the number in the middle, not the highest or lowest. This is how mortgage companies determine your score. The big misconception is that you score is figured out by average the three scores, lenders don’t do that, they also don’t just pick the highest number of the three, sorry if I just burst your bubble.

Okay so you now know your number, what’s a good score?

This chart can help you determine how good your score is, please note only the very best scores get the very best rates usually quoted on the commercials or in ads. The lower your score, the higher the risk a lender takes letting you borrow money. In exchange for taking that higher risk, banks expect some sort of compensation, they get that by charging you a higher rate.

So how can I fix my credit score if it’s crap or less than perfect?

Well it all depends how your credit got that way?

Late payments - How long ago was the late payment(s) and how late were they?

Judgments, Foreclosure, Short Sales, Settlements, Charge-offs, etc. these are all items that can have a negative effect on your credit but the question is to what degree?

For example a selling a house via a short sale is MUCH better than letting the bank foreclose on the home, it will also affect your score a lot less similar to a credit card settlement for less than what is owed vs. a charge-off where  a creditor gives up on you, writes off the money you owe as a loss and then run the collection agencies after you.

If you just screwed up, make late payments, have collection agencies calling you for unpaid debt, had a court judgment for collection, etc. and don’t know what to do yourself, there is help to be had by working with credit repair agencies.

BE CAREFUL… Do a search on google and I’m sure you’ll find 10 times as many companies claiming to help here, most are scam artists. Credit counseling is a rip off, basically you’ll pay someone to nag you that it’s time to make a payment, if you lack that kind of discipline your hopeless.

There is a difference between credit repair and counseling and many more names they have out there with deceptive or misleading names.

I personally am seeing more and more mortgage companies retaining on contract credit repair agencies to help their would be clients for free or at low cost in hopes of future business from that person.

I have referred a few clients over to this agency, I’m not endorsing them over any others out there but they’ve helped several clients I was working with that had imperfections in their credit that needed help to clear up off their reports with pretty good success.

There is a cost and this particular service will work for a full year to continue monitoring and restoring your credit to the best of their ability. Expect to pay around $1,000 for this level of credit repair assistance. I liked their service because they will give both the client and mortgage rep or real estate agent a login with the persons permission to see the progress and updates to each clients account to see exactly what is being done to repair the credit.

Once again, I’m posting their info but don’t endorse or recommend any credit service.

Better Qualified
119 e River Rd.
Rumson, NJ 07760
1-888-533-8138
http://www.betterqualified.com/

Paul Oster
732-203-7377
credit@betterqualified.com

Shannon Macaluso
Cell: 732-768-0518
shannon@betterqualified.com

If you’re looking to repair your credit to purchase a home feel free to call me and I’ll give you a mortgage company’s contact info that helps their clients repair their credit when a little repair is needed before you can qualify for a mortgage.

Out office is located at:

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330

Office: 732-650-9911 Ext.302
Contact: Victor Kaminski

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

Click here for Door to Door Directions

2009 Teddy Bear Collection for Children

Around this time every year our office serves as a teddy bear drop  spot in coordination with the Middlesex County Association of Realtors community service committee.

We help select charities where and when we can, sometimes through civic service, sometimes donations but either way Realtors always give back to their communities and this is one small but important way to give back.

We collect new or “used but clean” and in good condition teddy bears that have been emotionally starved lately and still have the ability to spread some joy to children ready to shower them with love who are in need of a smile and some cheering up themselves.

These bears will be donated to the Child Life Program at Robert Wood Johnson University Hospital where specialists care for outpatients and overnight patients at the Bristol-Myers Squibb Children’s Hospital at Robert Wood University Hospital.

Buy a new bear or donate one that has already brought joy to children elsewhere but is still in excellent condition to spread more joy.

Teddy Bear Collection Dates

NOW thru Tuesday 12/8/2009

Please Note: Dirty, dusty, smelly old bears will be disposed of, as these bears cannot be handed to sick children.

 

 

Out office is located at:

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330

Office: 732-650-9911 Ext.302
Contact: Victor Kaminski

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

Click here for Door to Door Directions

Teddy Bear Collection Dates at additional drop spots
Tuesday 12/1/2009 thru Tuesday 12/8/2009

Additional Drop Off Locations:

• Gloria Nilson GMAC, Monroe Twp.
  (609-395-6600) Contact: Regina Haimer
  1600 Perrineville Rd., Suite 30, Monroe Twp.,NJ
• Gloria Nilson GMAC, Kendall Park
  (732-398-2602) Contact: Anthony Doceamore
  3430 Route 27, Kendall Park, NJ
• Prudential Fox & Roach
  (732-297-5000) Contact: Roy Minieri
  1500 Finnegans Lane, North Brunswick
• Coldwell Banker, East Brunswick
  (732-254-3750) Contact: Dorothy Bellas
  269 Route 18 South, Suite A, East Brunswick, NJ
• Century 21 Charles Smith Agency, South Amboy
  (732-721-9000) Contact: Peggy Yanuzzelli
  150 Morgan Avenue, South Amboy
• Re/Max Hometown, Metuchen
  (732-548-5555) Contact: Murielle Ferino
  195 Main Street, Metuchen, NJ
• Petra Best Realty, Perth Amboy
  (732-442-1400) Contact: Rosanna Moquete
  329 Smith Street, Perth Amboy, NJ

Tax Credit Boosts October Home Sales 10.1%

A last minute rush of home purchases by first time home buyers wanting to take advantage of the expiring federal housing tax credit was the cause of home sales far exceeded expectations last month, surging to the highest level in 2 1/2 years.

The National Association of Realtors said Monday that home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September.

The tax credit of up to $8,000 for first-time owners was originally set to run out on Nov. 30, but Congress renewed it earlier this month and broadened its reach. Now even existing home owners who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. To qualify, buyers must sign a purchase agreement by April 30.

The Realtors report on October home sales reflect offers made before buyers knew the tax credit would be extended. "There was a lot of rush and hurry to complete sales" before the deadline.

Home sales are likely to drop over the winter as buyers hibernate for a few months without the looming tax credit deadline making this winter possibly the best time to begin shopping for a home. 

With a large inventory of homes for sale and limited time for sellers to sell with the threat of foreclosure hanging over their heads, there just may be some spectacular deals to be had and many options to choose from with little competition from other buyers.

The new deadline means that we're going to see some good activity coming out of the spring.

Sales, which were nearly 24 percent above last year's level, had been expected to rise to an annual pace of 5.65 million, according to economists surveyed by Thomson Reuters.

The median sales price was $173,100, down 7.1 percent from a year earlier and off 1.6 percent from September.

In addition to lower prices, mortgage rates have been hovering around 5 percent since the spring, largely because of government intervention. That has helped restore housing affordability in large swaths of the country.

The inventory of unsold homes on the market fell about 4 percent to 3.6 million. That's a 7 month supply at the current sales pace, and close to a healthy stock of about six months.

Over the summer, the housing market started to rebound from the worst downturn in decades, aided by aggressive federal intervention to lower mortgage rates and bring more buyers into the market.

But experts forecast that prices will fall again. Most say they will hit  a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.

But the government support can't last forever. For example, the Federal Reserve is likely to curtail its effort to push down mortgage rates next year. If rates then rise too high, it would make home purchases less affordable and dampen housing demand.

"When we do kick those crutches out from under the housing market, will it be able to stand on its own?" said Mark Fleming, chief economist with real estate information company First American CoreLogic. "It's really hard to tell."

A record-high 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September, the Mortgage Bankers Association said last week. The worst damage is still concentrated in the states hardest hit from the start: Florida, Nevada, California and Arizona. Together, they accounted for 43 percent of new foreclosures.

So what does this mean for New Jersey home buyers? It’s hard to say but not being at the top of the foreclosure list of states could possibly mean we’ve hit bottom or already very close, couple that with very low mortgage rates and buyers will need to decide if now just may be the optimal time to make a purchase or wait to see if prices drop a little more and risk higher interest rates in the spring.

The great news is New Jersey has several local state, county and federal finance assistance programs available that could add up to $20,000 in home purchase discounts in the form of government grants. (depending on your location, price, income etc. and of course the knowledge of these programs available by your realtor and mortgage representative.)

Whenever your ready, Marivic GMAC Real Estate will be here to keep you informed and let you decide, remember we’re here to help.

www.MarivicRealty.com
Local: 732-650-9911
Toll Free: 1-866-745-GMAC(4622)
Facebook Blog: www.realrep.com

This article is based on excerpts of a 11/23/09 story by ALAN ZIBEL
AP Real Estate Writer. Additional story contributions from Victor Kaminski Broker of Record of Marivic GMAC Real Estate.

Commercial real estate crisis a buyer opportunity

There may just be some great deals to be had for commercial property investors. Is now a good time to start a business?

One mans loss is another's gain, with commercial real estate that  old adage holds true as well. With prices dropping and more foreclosures in the commercial real estate sector and incentives for employers and business expansion coming about it just may be. 

“Here come the real estate vultures”

“(Fortune Magazine) -- These are tempting times for real estate bargain hunters. Whether it's the tony house down the street with an asking price that keeps dropping or office space at a deep discount, if you have the means, there are deals to be had. Individual investors snapping up foreclosed houses have helped boost home-sale figures sharply in recent months (although prices have remained depressed). And now some real estate investment trusts are raising money to fund acquisitions of distressed commercial properties.”

By Michael V. Copeland 
June 22, 2009
Fortune Magazine Full Article here

“Distress among commercial real estate mortgages in New Jersey is intensifying”

“with more properties in the state going back to the lenders. Some industry insiders say a crisis may be in the works if the economy continues to falter.

You’re certainly seeing an increasing rate of foreclosures, and of lenders taking back properties,” said David Bernhaut, executive vice president at the East Rutherford office of Cushman & Wakefield, a commercial real estate brokerage. “It’s distress that everybody feels and senses.

New Jersey currently has nearly $3.6 billion of distressed commercial assets, according to Real Capital Analytics, a New York-based research and consulting firm. Distressed assets include those in foreclosure or bankruptcy, have been restructured or modified, or have been taken back by the lender through foreclosure. “

So can now be a great time for the commercial investors to begin peaking their heads out? I would say that it depends on your financial ability to maintain the property if it should experience a lower than normal occupancy for a while.

“Lenders are currently lending at a 50 percent to 65 percent loan-to-value ratio, compared to 70 percent or 75 percent five years ago, said Kenneth Pasternak, chairman of KABR Real Estate Investment Partners LLC, a Paramus-based opportunistic real estate investment fund. Meanwhile, real estate is being appraised at values that are off by 25 percent of what they were five years ago, he said.”

 

Source: NJ Biz Article by Evelyn Lee 11/9/09
Full Article here: Fearing a commercial Real Estate crisis

This may just be putting current owners between a rock and tight place presenting the kind of opportunities and deals investors generally look for.

www.MarivicRealty.com
Local: 732-650-9911
Toll Free: 1-866-745-GMAC(4622)
Facebook Blog: www.realrep.com

Home Buyer Tax Credit Extended and Expanded

Good news for home buyers, Not just a first time buyer credit anymore. Once again Uncle Sam is firing up the printing press to give home buyers money as incentive to purchase a first home or to move and buy another (not for investors). The federal housing tax credit (H.R. 3548) for buying a home has been extended from the November 31st deadline to June 30, 2010 and now expanded to offer the credit to current home owners looking to move.

TAX CREDIT OVERVIEW

Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.

 
What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

• They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
• They do not use the home as your principal residence.
• They sell their home before the end of the year.
• They are a nonresident alien.
• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.

Below is a quick overview of the program and the changes, for details or to get the info from the source see these resources.

www.MarivicRealty.com
Local: 732-650-9911
Toll Free: 1-866-745-GMAC(4622)
Facebook Blog: www.realrep.com

TAX CREDIT ADDITIONAL RESOURCES
Government Site http://www.federalhousingtaxcredit.com/
NJ Home Buyer info site http://www.realstorynj.com/
Tax Credit FAQ’s - PDF document

ADDITIONAL REAL ESTATE NEWS RESOURCES
Marivic Realty Facebook info page http://www.realrep.com
Realty News Videos http://realtytimes.com/
Inman News http://www.inman.com/
WSJ Real Estate http://www.realestatejournal.com
NJ Real Estate Report Blog http://njrereport.com/
Star Ledger NJ.com Real Estate http://realestate.nj.com/
NJ Business & Economic Issues http://www.njbiz.com/

Why NOW is a Good time to Buy?

Below is a neat little video explaining why it’s a good time to buy real estate now courtesy of Lennar Home Builders.

For any real estate questions and for all your real estate needs contact us any time.

Marivic GMAC Real Estate
www.MarivicRealty.com
Local: 732-650-9911
Toll Free: 1-866-745-GMAC(4622)
Facebook Blog: www.realrep.com

Cap and Trade Can Cost You Dearly, Find out How!

Will the new Obama initiative called Federal 'Cap and Trade'
Energy Policy effect you?

Under my plan of a 'Cap and Trade' system electricity rates
would necessarily skyrocket" - President Barack Obama

The following petition, along with the names of those who sign it through the form below, will be printed and mailed to: Every United States Senator, The National Association of Realtors, and Every State Real Estate Association.

I hereby petition Congress to reject any and all legislation, or regulatory action by the EPA, that would enact new energy taxes and/or establish a national cap and trade system for carbon dioxide
I hereby petition the National Association of Realtors to oppose any and all legislation, or regulatory action by the EPA, that would enact new energy taxes and/or establish a national cap and trade system for carbon dioxide.

Link to the Petition:
http://www.brokeragentsocial.com/Petition-EnergyPolicy.htm

Watch the news clip video, and sign the Petition if you want to avoid this, join real estate brokers and agents and get your voice heard.

Tired of all the government spending on your dime? Tired of being taxed? We'll I’ve got news for you, many more taxes are coming and existing taxes will rise for everything you buy and ever service you use.

Make your voice heard today, you CAN make a difference!

To make a meaningful impact signatures are needed - Which may be difficult to do alone given our modest reach in cooperation with Broker Agent Social and you, we can make a difference.

Please feel free to share the petition with others through your email, blog postings, etc. to help ensure those who wish to be heard may.

As a reminder, anyone in the real estate industry is welcome to join the petition as well (realty sales, lending, title, appraisal, etc.)

Here’s a link to the petition, which you are free to share at your discretion, send it to family, friends, everyone, post it on your blogs, twitter, facebook and get the word out and sign the petition today:

Link to the Petition:
http://www.brokeragentsocial.com/Petition-EnergyPolicy.htm

Stated efforts of H.R. 2454, otherwise known as Cap and Trade, are to create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.
Primary objections related to the legislation are: 1. Government control and taxes necessary to affect the bill which may drive housing markets in to a deeper recession. 2. Energy taxes forcing US jobs overseas which could put further pressure on housing markets and defeat the bills purpose by shifting pollution to other parts of the globe with less regulation.

Federal Energy Compliance Audits on Every Home Sold?
The National Association of Realtors was effective at having this exacting legislation removed from the original bill. This effort does not prevent the government from instituting audits at a later time, at a potential cost of thousands to home sellers, in order to affect the following provision of the most current bill:
H.R. 2454 Page 350 - Line 13 - The Administrator shall develop and implement standards for a national energy and environmental building retrofit policy for single-family and multifamily residences .... to facilitate the retrofitting of existing buildings across the United States to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes ....

Top 15 Things A Listing Agent Won’t Tell Sellers … But REALLY Should

We’ve all been there: something happens and you feel like you just HAVE to say something. However, common sense and the manners your mother pounded into you during your childhood keep your lips planted together and those thoughts remain inside your head.

As I talk to a lot of REALTORS, they share with me things they’ve often wanted to say to sellers but never had the guts to do so. But deep inside they felt they really SHOULD have said something. And so … since they won’t say those things out loud, I will!

Here are the top 15 things listing agents want to say to sellers, but won’t …
And I didn’t make ANY of this up. I also know that one or two of these things may offend someone, so please accept my apologies right up front!

1. “I know it’s hard to believe, but as professional Realtors, we actually do know more about selling your house than you do.”
You might be an engineer, doctor, lawyer or tribal chieftain … but as a licensed, highly trained full-time REALTOR, we do this all day long every day. And just like we’d never presume to tell you how to do your job, we REALLY don’t like it when you presume to know more about selling houses than we do.

2. “You have a nice house, but it’s not anything really special.”
We know you live there and have your emotions tied to your home, but as Realtors, we see hundreds and hundreds of homes every year and trust me, yours is … ok. There is absolutely no reason it should be priced higher than other comparable homes in the area. None. Zip. Nadda. In fact, if you want it to sell in the current market, it should actually be priced a bit LESS …

3. “Your upgrades don’t deserve the extra amount you want added to the price.”
We’re glad you’ve added crown molding everywhere. And paid for Ralph Lauren suede paint. And new carpet. Your new toilet seats are great. And we’re really glad you sanded out the dog pee stains in the hardwood floors and refinished them. However, none of your upgrades add a single penny’s value to your home. In the new economy, new windows, nice flooring and a newish roof should be considered standard. Buyers today demand a whole lot more before they are willing to start paying premium prices. They expect designer kitchens with custom cherry cabinets, recessed halogen lighting, new upscale appliances, solid granite counters and more. They want totally upgraded baths with Jacuzzi tubs, tumbled marble, frameless glass doors. And so on …

4. “I know what you think your house is worth.”
Now get real! The seller doesn’t set the price, the market does. And the simple truth is that lower priced homes sell while higher prices homes sit and sit and sit. Sorry. And I truly AM empathetic that you bought your home in 2005 or 2006. At the top of the market. Please remember that I own a house too and my property value has also gone into the toilet …

5. “I’m glad you collect things. We’re selling your house, not your stuff.”
You’re moving anyway, pack all your collections away. Now. And the talking fish needs to be the first thing off the wall and in a box …

6. “Agents are willing to do open houses because they get prospective buyers – who want to buy somebody else’s house, not yours.”
Open houses REALLY are not an effective way to sell your home. Even though they sometimes work, they are the least effective way of getting the job done. Trust us. See point #1 above.

7. “We have some issues with your decorating …”
The Caltrans orange room has to be repainted. And the lime green one. While you are at it, get the midnight blue room as well. Whatever were you thinking? Did you scrounge through the “ooops” bin at Home Depot? It’s nice that you have wallpaper from 1978. Please remove it and repaint the wall. And whatever you do, DON’T paint over it …

8. “I really don’t want to get intimate with your dog.”
I especially don’t like what he’s doing to my leg. And the smell in here is really bad. Please keep Fido in the garage during the time you are selling your home. And the doggy bombs in the back yard gotta go as well.

9. “I will not be responsible for your cat.”
If you are concerned it will bolt out the door when prospective buyers arrive, then please keep Fluffy in a Kitty Crate while you are gone.

10. “Don’t put up ANY roadblocks that may keep sellers out.”
Don’t even THINK about showing your home by “appointment only.” Don’t want a lock box? Trust me, your stuff isn’t that valuable. Don’t want buyers after 5:00 p.m. at night? You’re kidding, right? If a buyer can't get in when it works for them, they are gone.

11. “Prospective Buyers DO NOT want you to give them a tour of your home.”
They actually want you out of the house … so resist the urge to be a tour guide and go for a walk around the block. They’ll find out on their own that you’ve carefully lined the cupboards with new floral shelf liners and put a new TP holder in the master bath.

12. “STOP SMOKING IN YOUR HOUSE!!”
Especially the pot …

13. When a Realtor calls to let you know they’re coming at 11:00 a.m., rings your door bell, knocks VERY loudly, opens your front door and yells, “HELLO, REALTOR,” …
Please get out of bed BEFORE we get to your bedroom … and put some clothes on when you do …

14. What is that smell???
Whatever it is… it’s gotta go … and please don’t cook with curry until you are in your new home … or fry fish right before people come to see your home …

15. “We’re worth our commission.”
Every penny of it. Selling a house is actually hard work. And, for those of us who market extensively, it costs a lot of money that we pay out of pocket up front. You really do get what you pay for. In the same way you’re not going to be able to buy a Honda at a Daewoo or Suzuki dealership, you are not going to get full support, service and top-notch professional representation at bargain basement prices. There’s a very good reason many discount brokerages are going out of business in the current economy. Anyone who is willing to take a cut-rate commission structure is simply not going to be able to make enough off your listing to do the types of advertising necessary to get you top dollar. And since you are competing against REOs and Short Sales, if you go cheap, you will lose every time.
Well … there they are – I've probably managed to offend everyone! I know you will have some of your own to add ... please, be my guest!

HUD FHA Condominium Complex Approvals

I’ve been coming across this issue more and more lately so decided to write this article to address the issue of condo complexes being approved so that would be buyers can use an FHA loan to fund the purchase.

 
Since condominiums are becoming more popular across the country, I think this information will be helpful to you if you are new to FHA or if you are in need of a refresher on condominium requirements.

There are two types of condominium approvals for FHA:

• Full project review and approval by HUD
• Spot loan review and approval by the lender

To check see if a condo complex is HUD approved for FHA loans the first step would be to determine the name of the condominium project and conduct a search at HUD’s website to see if the project is currently approved. You’ll need to go to https://entp.hud.gov/idapp/html/condlook.cfm where you can search by condo name, condo id, alias name, city, state or zip code.

If the search concludes that the project is not currently approved, your mortgage rep would want to do one of two things:

1. Determine if the property is eligible for spot loan review and approval or
2. Determine if it’s best to gather project documentation and submit to the HUD Homeownership Center that oversees the jurisdiction of the property for full project review and approval.

For Spot Loan Approval
To proceed with spot loan approval, you would want to refer to Mortgagee Letter 1996-41 which explains spot loan approval requirements. You will find a spot loan questionnaire/checklist attached to ML 96-41. You will need to have an officer of the condominium project’s homeowners association or a representative from the company that oversees and manages the association complete the spot loan questionnaire as early in the process as possible. With the completed spot loan questionnaire, you will need to obtain a copy of the association’s most recent annual budget and you will need to obtain a copy of the certificate of insurance for the subject unit of the project. The association must have appropriate insurance coverage for the common areas and exteriors of the buildings within the project.

Most lenders also require a copy of the condominium declarations and bylaws to be submitted with the questionnaire, annual budget and certificate of insurance for the subject unit. You will want to check the specific lender procedures for spot loan approval because some lenders actually employ their own department for project reviews and approval. Most underwriters are able to determine project acceptability at the same time they underwrite the rest of your credit package but there are a few that differ in their processes. Make sure you’re clear up front on the exact process with the lender of choice.

One thing worth mentioning that you will not find within the Mortgagee Letter or the questionnaire: To be eligible for spot loan approval, the project must consist of no less than four units. This eliminates two unit duplexes and three unit triplexes which have been zoned as condominiums from being eligible for spot approval.

For full project review and approval
For cases where a particular originator has the potential to land a number of deals within the subject project, HUD advises pursuing full project approval. You will find full condominium project requirements at CFR-234.26(i) and also in HUD handbook 4150.1 Chapter 11. Each HUD Homeownership Center has their own specific project review process so you will want to be clear on what to include in your project submission, where to send the documents and to whose attention you need to address the documents.

For more information about purchasing or selling a home call
Marivic GMAC Real Estate
www.MarivicRealty.com
Local: 732-650-9911
Toll Free: 1-866-745-GMAC(4622)
Facebook Blog: www.realrep.com

We've Gone Geek! Find us in any Social Network

It's official, we're social networking geeks too.

Don't worry, we don't pester people only post helpful information and resources.
Check us out on facebook, twitter and myspace, pay us a visit and say hi. You may find us on other sites online as well but these are a few of the most recent biggies!

New Program offers up to $5,000 cash to qualified buyers as Downpayment

NJ Housing Mortgage Finance Agency Offers Cash Advance for First-time Buyer Down Payment Costs

Program offers up to $5,000 cash to qualified first-time home buyers

The New Jersey Housing Mortgage Finance Agency (NJHMFA) is offering cash payments of up to $5,000 for qualified first-time home buyers to help defray closing costs or satisfy down payment requirements and help new buyers to get into the housing market.

The loan, offered as part of NJHMFA's "Prefund" program, would function like a cash advance against the $8,000 tax credit being offered to first-time buyers who purchase a home between April 8 and December 1 of this year. In its simplest terms, purchasers would be provided with the payment as a loan and would be required to repay the advance when they receive their federal tax credit.

"This is a powerful incentive that will allow potential first time home buyers to actually enter the market because this cash advance will help them meet down payment requirements or pay for closing costs that might otherwise be an obstacle to a first-time buyer," said Jarrod C. Grasso, RCE, executive vice president of NJAR®.

The cash advance is available to first-time home buyers who:

* Arrange their financing through the NJHMFA. (Obtain a list of participating lenders by calling (800) NJ HOUSE)
* Are qualified for the tax credit offered as a part of the federal stimulus program
* Pledge to apply the proceeds of their tax credit to repay the cash

View the full details of the NJHMFA's First-Time Home Buyers Tax Credit Loan Program (TCLP).
http://www.state.nj.us/dca/hmfa/consu/buyers/ownprg/tclp.html

Contact us for help or more info:
MARIVIC GMAC REAL ESTATE
Office: 732-650-9911
Toll Free: 866-745-GMAC (4622)
www.MarivicRealty.com

Ever Feel Like You've Been Robbed?

Ever notice how in real estate someone is ALWAYS trying to get one over?

Real Estate is a competitive industry, this article discusses some of the garbage a real estate salesperson namely me has to endure on a regular basis and is actually going through right now.

This past Friday a new client prospect called my office to get a little info about one of my listings, I setup a showing for him which after he said, he'd need "the boss" (his wife) to see it before making any decisions. I can surely understand that!

The buyer later told me he wanted me to search for other properties in the area so I can show him and went on with describing his wants and needs in further detail as well as the sections of town he wanted and didn't want. I went back to the office and searched for homes which doesn't take a second or two, if you really look for something a client will like and weed though the garbage, can take some time.

Saturday comes and the client calls me again, he now would like to show the property to "the boss" and his daughter and also wants me to get more info about a property he drove by a few minutes ago. Certainly, I asked if he wanted to me also print out a few more properties in the area and bring them to him so we can see a few, yes he replied and so I setup the showing for the property he asked about and printed out a few additional ones.

After seeing showing my listing to the family, they liked it but would like to see the other property now before any yeah or nay! So now we truck on over a few blocks over to the other property he drove by earlier wanting more info about and surprise, this home is much much larger inside and very nice as well. The exterior was deceptive as it looked dated with wood shingle siding and an old beat up front door that looks like it was home made.

The family absolutely loved this home and was not quiet about it, expressing how lovely the home was over and over to the seller (bad move from a negotiation stand point). So... we step outside and he tells me to write up the offer and call him when it's ready and they'll come by to sign the contracts.

I went back to the office wrote up the contract, called him.... called again.... left a message.... no answer...!!!!

Next day rolls around Sunday! I called.... called again... left a message... no reply...

Monday now rolls around and I get a call from the buyer ;-D smiles! But wait...
The buyer starts babbling and rambling on real fast, he is Hindu with a strong accent so I really cannot understand a word he is saying so I slow him down and ask him to repeat slowly. Apparently he was trying to slip one by me saying his wife's cousin or relative of some sort is a realtor and wanted to know how to get her involved in the transaction! WHAT???????????

He tells me he wants to keep the peace in the family and she contacted them asking if he checked his email because she emailed him this same property that I showed them, this other realtor also asked if I had them sign any paperwork and if not said they did not have to place an offer using me and could use her instead! Obviously a realtor that has no scruples or understands the concept of ethics. She should have never even asked if I had her sign any paperwork, just knowing he is working with another agent is reason enough to back off.

After this conversation he asks if he should have her call me to discuss how we should work this out, of course I said absolutely have her call me right away. Then he went on to ask for advice on pricing and maybe he should offer a little less for the house (Asking price was raised recently to $334,900 from $325K, buyer originally wanted to offer $310K now wants to lower that amount to $300K for negotiations. By the way he wants to put down $100K cash! I advised against that at least during the offer period for negotiations sake.)

Listen, I'm no sucker and it is clear that I was the cause of this buyer placing an offer on this property, besides New Jersey is a procuring cause state; meaning if a real estate agent is found to be the procuring cause of a purchase they will be due a commission whether an exclusive agency agreement is in existence or not. I bring this topic up because it’s not all too uncommon for a buyer to search for a home using one agent then writing the contract using another and I will pursue this matter further and file ethics complaints if it comes to that.

If this other agent has already had a buyers agency agreement signed with the seller like they are claiming now all of a sudden, that is an issue that the other agent will have to bring up with the buyer. I asked when I first met the guy with his wife if they were working with another agent in an indirect way, when I showed him the list of properties available in the area meeting his criteria he commented on a few that they already saw this one and that one so I asked how did you see these properties, he said ah... we've been looking for a while and go to open houses and we'll we've seen a lot. No mention whatsoever of another agent being in the picture.

I will follow up and if this property does go under contract I will place a complaint with the local association of Realtors and call for an arbitration meeting. I work too hard for a lazy agent to swoop in and take away commissions due to me.

There will be a follow up to this article...

Has the real estate market finally hit bottom?

Is it too late for buyers to get the best deals?
Has the real estate market hit bottom?

Interest rates are at all time historical lows, home prices have bottomed out and now the amount of homes sold are showing signs of being on the rise again.

So did you miss your opportunity to buy at the best time? Probably not, the rates are still low and there are many homes still on the market available for sale and many deals still to be had.

I would not suggest waiting too much longer if you intend on buying, with eminent inflation on the horizon due to Obama's careless spending of money we don't have interest rates WILL RISE AGAIN but how high?

Care to find out?

Read about recent home sales on the rise:
http://www.realtor.org/RMODaily.nsf/pages/News2009032301?OpenDocument