4 Reasons to Sell This Fall

4 Reasons to Sell This Fall 

Buyer Demand is Strong

Buyers are out in force looking for their dream homes. Buyers are often competing with one another for the available listings. According to NAR, listings were only on the market for an average of 31 days last month. 

There Is Less Competition Now

Housing inventory is still under the 6-month supply that is needed for a normal housing market. This meant that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. 

There Will Never Be a Better Time to Move UP

Prices are projected to appreciate by 5.4% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in both down payment and mortgage payment if you wait. 

It's Time To Move On With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Perhaps the time has come for you and your family to move on and start living the life you desire.

All of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

One of the Top Reasons to Own a Home

 

One of the benefits of homeownership is that it is a “forced savings plan.” Here’s how it works: You make a mortgage payment each month. Part of that payment is applied to the principal balance of your mortgage. Each month you owe less on the home. The difference between the value of the home and what you owe is called equity.

If your home has appreciated since the time you purchased it, that increase in value also raises your equity. Over time, the equity in your home could be substantial. Recently, CoreLogic revealed that the average homeowner gained more than $65,000 in equity over the last 5 years.

Unlike the last decade, homeowners are no longer foolishly tapping into that equity. In 2006-2008, many owners used their homes like an ATM by pulling equity out to purchase new cars, jet skis, or lavish vacations. They were pulling out cash (equity) from an appreciating asset, and then spending it on rapidly depreciating items. That is not happening anymore. Over 50% of Homes Have at Least 50% Equity

The number of homeowners that currently have at least 50% equity in their home is astonishing. According to the Urban Institute, 37.1% of all homes in the country are mortgage-free. In a home equity study, ATTOM Data Solutions revealed that of the 62.9% of homes with a mortgage, 25.6% have at least 50% equity. That number has been increasing over the last five years: By doing a little math, we can see that 53.2% of all homes in this country have at least 50% equity right now. Of all homes, 37.1% are mortgage-free and an additional 16.1% with a mortgage have at least 50% equity.

The bottom line is that homeownership is different than renting. When you own, your housing expense (the mortgage payment) comes back to you in the form of equity in your home. That doesn’t happen with your rent payment. Your rent helps build your landlord’s equity instead.

All of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

Cristina Munoz: 5 Reasons to Sell This Fall

Cristina Munoz: 5 Reasons to Sell This Fall

Cristina Munoz, ERA Justin Realtor Agent offers the following, "Below are 5 compelling reasons listing your home for sale this fall makes sense.

1. Demand Is Strong
The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase…and are in the market right now. More often than not, in many areas of the country, multiple buyers are competing with each other to buy the same home.Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now
Housing inventory is still under the 6-month supply that is needed as a normal market. This means that in the majority of the country, there are not enough homes for sale to satisfy the number of buyers. Historically, a homeowner would stay an average of six years in his or her home. Since 2011, that number has hovered between nine and ten years. There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move. Many homeowners were reluctant to list their homes over the last couple of years, for fear that they would not find a home to move to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you decide to sell.

3. The Process Will Be Quicker
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and simpler, as buyers know exactly what they can afford before shopping for a home. According to Ellie Mae’s latest Origination Insights Report, the time needed to close a loan is 43 days.

4. There Will Never Be a Better Time to Move Up
If your next move will be into a premium or luxury home, now is the time to move up. There is currently ample inventory for sale at higher price ranges. This means if you’re planning on selling a starter or trade-up home and moving into your dream home, you’ll be able to do that in the luxury or premium market. According to CoreLogic, prices are projected to appreciate by 5.2% over the next year. If you’re moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage) if you wait.

5. It’s Time to Move on with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than having the freedom to go on with your life the way you think you should Only you know the answers to these questions. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire. That is what is truly important.

Cristina and all of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.





 

Homeownership Will Always Be a Part of the American Dream

According to Morgan DePalma, "On Labor Day we celebrate the hard work that helps us achieve the American Dream. Growing up, many of us thought about our future lives with great ambition. We drew pictures of what jobs we wanted to have and where we would live as a representation of a secure life for ourselves and our families. Today we celebrate the workers that make this country a place where those dreams can become a reality.

According to Wikipedia,

“Labor Day honors the American labor movement and the contributions that workers have made to the development, growth, endurance, strength, security, prosperity, productivity, laws, sustainability, persistence, structure, and well-being of the country.” Morgan continued.

The hard work that happens every day across this country allows so many to achieve the American Dream. The 2019 Aspiring Home Buyers Profile by the National Association of Realtors (NAR) says, "Approximately 75% of non-homeowners believe homeownership is part of their American Dream, while 9 in 10 current homeowners said the same. Looking at the number of non-owners, you may wonder, ‘If they believe in homeownership, why haven’t they bought a home yet?’. Well, increasing home prices and low inventory can be part of the reason why some haven’t jumped in, but that does not mean there is a lack of interest. The same report shows the increase in the desire to buy in the last year."

Morgan concluded, "As we can see, there are more and more people each quarter who want to buy a home. The good news is, as more inventory comes to the market, more non-homeowners will be able to fulfill their dreams. Finally, they’ll be able to move into that home they drew when they were little kids! If you’re a homeowner considering selling, this fall might be the right time, as there are buyers in the market ready to buy. Let’s get together to determine how you can benefit from the pent-up housing demand."

Morgan and all of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

5 Easy Steps to Avoid Overwhelm from Media Overload

 

5 Easy Steps to Avoid Overwhelm from Media Overload

According to ERA Justin Realtor agent, Beth Albanese, "When someone is thinking about buying or selling a home, they want to be well-informed. They want to make the right decision for themselves and their family. They scour the internet for any information they can find about the housing market."

Today, there is an abundance of information available. It is often conflicting news. It can easily lead to confusion and concern, perhaps even causing a potential buyer or seller to cancel their plans to move altogether. Instead, the best thing to do is sit down and take a deep breath.

In a recent article, Jeff Davidson, a recognized speaker on the subject of productivity, explained:

“The pace at which new information arrives will accelerate every day…Too often, the reflex to take action only exacerbates your time-pressure problems. Do not bite off more than you can chew, and acknowledge that often, the wisest response to too much competition for your time and attention is to simply slow down to assess the best way to proceed.”

Beth added, "To that point, here is an easy five-step process to follow if all of this information seems overwhelming:"

Calm Down – Don’t let the confusion lead to concern or panic.

Slow Down – As Davidson suggests, just 'slow down to assess.'

Think – Remember the reasons you wanted to move in the first place. Are they still important?

Plan – Determine whether or not the new information should change anything. If you need further clarification on some points, reach out to a Realtor professional in your area for a better understanding.

Act – After thorough consideration, feel good about your decision, whether you decide to move or not.

Beth's bottom line includes, "Don’t let the plethora of seemingly conflicting information on the housing market stop you from moving forward with your life. Let’s get together to ensure you get the valuable counsel you need so you can make the right decision for you and your family. Simply call me at ERA Justin Realty at (201)939-7500. I'm here to help along with our team of nearly 40 agents, management and administrative staff. We re always just a phone call away."

PEGGY McLAUGHLIN OFFERS TYPES OF REAL ESTATE

PEGGY McLAUGHLIN OFFERS TYPES OF REAL ESTATE

According to Peggy McLaughlin, an ERA Justin Realtor agent, "The Internal Revenue Service considers four different types of real estate when doing their calculations. Specific types of properties have benefits based on their classification. This determination does not depend on the property itself as much as it depends on how the property is used and what the owner's intentions are. As guidance, it is suggested that you review the following with your accountant or tax representative, as tax laws and incentives change without notification to the public."

Principal Residence ... a principal residence is a place a person lives or expects to return if they are temporarily away from it. It could be a single-family, detached home or condominium or a duplex, tri-plex or four-unit. The owner(s) can deduct the qualified mortgage interest and property taxes on Schedule A of their tax return. There is a capital gains exclusion on a profit of up to $250,000 for a single taxpayer and up to $500,000 for a married taxpayer.

Income Property - is improved property that is rented or leased to tenants as opposed to using it personally. It can include houses and condos, apartment buildings, office complexes, shopping centers, warehouses, and other commercial buildings. Depreciation is allowed on the improvements. For property held more than one year, the profits are taxed at long-term capital gains rates. This type of property is eligible for a tax-deferred exchange.

Investment Property ... can be raw land or improved property that is not rented or leased. This property is not subject to depreciation. If the property is held for more than one year, the profits are taxed at long-term capital gains rates. It is also eligible for a tax-deferred exchange.

Dealer Property ... this type of property is primarily considered inventory because the intention is to sell it without intentionally holding it for more than a year. It could be new construction such as a home builder. It could be an investor who buys a property and expects to sell it for more. There is not a requirement to make improvements. The profits on dealer property are taxed as ordinary, "sweat of the brow" income. Dealer properties cannot be exchanged.

A second home is like a principal residence in that you can deduct the interest and property taxes on your Schedule A, up to the limits. A second home, as well as a principal residence, can be rented out up to 14-days a year without threatening the status of the property. Seconds homes are not eligible for exchange because personal use properties are not allowed. A second home is not a principal residence and profits are taxed like an investment property. If you own it for more than a year, it is taxed at long-term capital gains rates.

Vacation homes are rented for more than 14 days a year and are like income property but with some additional rules that apply. If your personal use is 14 days or less or 10% of the time it is rented, your expenses can be deducted in excess of income. If you use it for more than 14 days or more than 10% of the number of days it is rented, it is considered personal use and your expenses are limited to the amount of income collected with no losses being deductible.

Taxpayers can strategically change the property type based on their intentions. A principal residence can be converted to income property. Dealer property could become a principal residence. A rental property could become a principal residence.

All of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

TV SHOW Myths vs. REAL LIFE

 

TV SHOW MYTHS vs REAL LIFE 

"Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of shows like “Property Brothers,” “Fixer Upper,” and “Love It or List It,” all in one sitting," said Rufina "Maggie" Rodriguez/ERA Justin Realtor agent. When you’re in the middle of your real estate-themed TV show marathon, you might start to think everything you see on the screen must be how it works in real life. However, not necessarily correct.

Myth #1: Buyers look at 3 homes and decide to purchase one of them.

Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors, the average homebuyer tours more as a part of their search.

Myth #2: The houses the buyers are touring are still for sale.

Truth: Everything is staged for TV. Many of the homes shown are already sold and are off the market.

Myth #3: The buyers haven’t made a purchase decision yet.

Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy.

Myth #4: If you list your home for sale, it will ALWAYS sell at the open house.

Truth: Of course, this would be great! Open houses are important to guarantee the most exposure to buyers in your area, but they are only one piece of the overall marketing of your home. Keep in mind, many homes are sold during regular showing appointments as well.

Myth #5: Homeowners decide to sell their homes after a 5-minute conversation.

Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives and goals.

Bottom Line: Having an experienced professional while navigating the real estate market is the best way to guarantee you can make the home of your dreams a true reality. 

All of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.