David Fialk, REALTOR... All Real Estate Talk

A Realtor Website should be more than "just homes for sale"!

I have now added even more content for home owners, information which is vital to protecting, improving and maintaining one of the largest investments they have made, their home. It's all about being a more educated and a smarter homeowner.

The additional home ownership content is provided by the National Association of REALTORS, is designed by HouseLogic and is an inter-active website specifically targeted for current homeowners. This website offers information of value for homeowners. The content and consumer oriented design provides homeowners with the ability to view, read and print valuable real estate home ownership information on protecting, maintaining and improving their home. It provides the abilty to log on and create a personal account.

With a personal account, the consumer/homeowner can then obtain and receive more personalized information, and experience a more personalized involvement in the information they need or would like to have regarding home ownership, home repairs or home remodeling. Upon creating a personal account, articles can then be saved or printed.

Additional benefits include step by step instructions on how to complete many home improvement projects important to owners. A homeowner can then organize home projects, create to-do lists, set reminders, set goals and then measure the progress as they move forward in improving and repairing their home.

Begin helping yourself in protecting, maintaining, improving and enhancing your home. Help and assistance is now available online on a consumer oriented Website developed by REALTORS for Homeowners!

Visit my Website to begin obtaining vital home ownership information and to creat your personal account. There are numerous categories and lots of good reading on topics such as:

• Tax Credits for Home Owners(You may surprised at the amount of money you can get back when making improvements)
• IRS Home Buyers Tax Credit for Current Home Owners and First Time Buyers • Essential Home Maintenance
• Repair or Remodel
• Repair or Replace
• Things Homeowners May Not Know
• Homeowners Can Save Money, Go Green
• Important Information For Homeowners

And more articles will be added! Be sure to Bookmark www.DavidFialk.com for easy access to valuable home ownership information.

Sitting on the fence wondering if you should purchase a home?

Wondering if real estate values will drop futher?

Wondering if mortgage interest rates will drop further? Hoping to take advantage of the $8,000 First Time Buyer Tax Credit?

If the $8,000 First Time Buyer Credit is important , the time to act is quickly approaching. To qualify, a First Time Buyer must close on their purchase by November 30, 2009. Again, that is close title on the purchase, not be under contract to purchase. With the recent changes in mortgage processing, a  time frame of two months to accomplish everything and close on a real estate purchase will be close.

Coincidently, August under contract sales were extremely robust. Coincidently, buyer activity, contract offers and sales have been very robust the last week of August and into this end of Summer Labor Day weekend. Apparently, many other First Time Buyers are realizing that the time to purchase is now!

As important, mortgage rates are very favorable, currently hovering around 5.25 %, based on the buyer's mortgage loan program. Opportunities to otain such favorable mortgage interest rate financing like this cannot last much longer. If real estate sales and mortgage applications increase, as they have been in the past 3 months, how much longer will it be before lenders increase the mortgage interest rate?

What about real estate values? Yes, they are much lower then they were in 2006. Too much attention is given to when they will hit bottom. The bottom will only be known when prices begin to increase. More attention needs to spent on affordability, and affordabilty is a combination of purchase price, interest rates and, yes, having the opportunity to receive the $8,000 First Time Buyer Credit.

If purchasing a home is in your plans, invest some time now and meet with a REALTOR in the area you would like to move to and meet with a Mortgage Representative to see what mortgage options are available to you and obtain a Mortgage Pre-Approval.

Interested in viewing real estate statistics in Iselin, New Jersey, Colonia, Edsion or any other town in Middlesex County? There's lots of information here.

A Look at Real Estate in Middlesex County

Real estate values are local.

Home values differ from one neighborhood location to another. They differ from one Town to another, from one County to another and from State to State. Obtaining reliable local home sale real estate information is important, whether you are just curious about home values or are looking to buy or sell a home, whether the home is in Iselin, New Jersey, Colonia, Edsion, in Middlesex County or any other State.

Obtaining reliable local real estate home value information is important when looking to buy or sell a home. Real estate statistics are helpful, but they cannot provide market value estimates. When there is a need to obtain reliable information, contact a local REALTOR who can provide a detailed "Market Analysis"

I am providing real estate real estate sales information for one family homes and condos/townhouses in Middlesex County, New Jersey as provided by the Middlesex County Multiple Lisitng System.

View the May, 2009 Year to Date Sales Comparison Report for Middlesex County Real Estate.
For more detailed reports, visit www.RealEstateSalesData.DavidFialk.com.

Conditions in the Contract Offer

A contract to purchase real estate includes a sale price, a mortgage amount to be obtained and a closing date whether the home being purchased is in Iselin, New Jersey, in Middlesex County or any other state.

However, there is more to a contract to purchase than these details, and that includes the content language in the contract document. The form of the real estate contract prepared by a REALTOR® or real estate licensee can be different from one real estate company to another, from county to county and from state to state.

While price and terms are important, the most overlooked aspect and perhaps a very important consideration for the seller are the conditions in the real estate contract offer, if any. All real estate contracts have conditions. A condition in a contract offer can be more easily explained as a subject to event.

The most common condition is that the contract is subject to the buyer obtaining mortgage approval and a written mortgage commitment within a certain time frame in the amount required to purchase the home.
  
Another very common condition is that the buyer performs a termite inspection, home inspection and  perhaps a radon inspection within a certain time frame. These type inspections are so common that they are pre-printed and included in the real estate contract. Read More

Terms of the Contract Offer

Initial Deposit

Be prepared to write a deposit check when making a contract offer to purchase real estate. Commonly referred to as a Binder, more commonly known as the initial deposit, this is the check made out to the Selling Real Estate Office when submitting a contract offer. In simple terms, it is a good faith deposit to express interest in purchasing real estate.

What is the required amount of a binder deposit? There is no law as to a required amount, but local real estate practices may determine what is acceptable. Common sense should prevail in determining the amount of the Binder deposit however. Writing a check for $100.00 shows good faith, but what kind of statement is that making to the owner when the contract offer is presented to them?

Would a more substantial initial deposit, say $1,000.00, make a stronger statement? How about $5,000 as an initial deposit, or even more? Wouldn't a larger initial deposit check make a stronger impression with a seller in making a decision to accept a contract offer or in contract negotiations? 

The Binder is generally not deposited by the Real Estate Broker until there is offer and acceptance, a signed contract of sale. However, there are State Real Estate Licensing Laws which regulate how long a Real Estate Broker can hold a deposit check without depositing it into the Company's Trust Account. In cases where contract negotiations are prolonged, perhaps beyond five business days, most Real Estate Brokers will either deposit the check into their Trust Account during contract negotiations, or ask the buyer to write a new check as contract negotiations continue.

If the contract offer is not accepted, the Binder is returned to the buyer. If the contract is accepted and signed by the owner, the Binder will be deposited in the Broker's Trust Account and will be applied to the buyer's down payment and the purchase price.

Earnest Money Deposit

Commonly referred to as the second deposit, this is the additional upfront deposit made in the purchase of real estate and is also part of the buyer's total down payment. The earnest money deposit could be 10% of the purchase price depending on the real estate market the home is being purchased in, the price range or the total amount of the down payment being used by the buyer.

It is quite common in many real estate markets that homes are purchased where the total down payment is less than 10% of the purchase price. In these type real estate transactions, the earnest money deposit will generally be some portion of the total down payment, or perhaps the entire amount of the down payment in a transaction where the buyer has a total down total payment of 3.5 % to purchase a home. The amount of earnest money deposit is something that may eventually be determined during contract negotiations.

The earnest money deposit is generally paid within a certain time frame or after completion of Attorney Review. It is generally paid to the Selling Broker, unless local real estate practices provide otherwise, or there is a change made to the contract of sale during the Attorney Review process where the Seller's Attorney requests to hold all deposit monies in their Trust Account.

There are times when a contract of sale is terminated after Attorney Review, such as home inspection problems, mortgage denial and others. In those situations where a contract to purchase is cancelled in accordance with the terms of the contract, all deposit monies previously paid by the buyer are refunded.

Many buyers, and buyer agents, under estimate the importance of these two aspects of contract preparation, and the benefits they can provide in contract negotiation. The Initial Deposit and Earnest Deposit can be the difference in whether a contract offer gets accepted and signed by the seller, especially in multi-contract presentations.

Read More

The Contract Offer: What Price to Start With

When a decision is made to make an offer to purchase a home, be sure to go back and take a second look. It is so much easier changing your mind about a home before a contract offer is made than after a contract offer is accepted and signed by the seller. This second appointment would be a perfect time to bring along others who may have an impact on a buying decision, such as parents, friend, contractor, etc.

Go through the home a second time and look beyond the owner's décor, whether it was the home just previewed, the first one seen earlier in the day or the one previewed last week. Why? There are many reasons, but most importantly is seeing if the second look creates the same good feeling as the first, and then taking a closer look to see if there are aspects of the home missed during the first preview which may alter the decision to submit a contract offer.

So what is the right price to start with?

Some Preliminary Information

Be it the real estate market in 2009 or any other real estate market for that matter, the structure of a real estate purchase contract offer can be the difference in it being accepted or rejected. No, the offering price is not the only factor in negotiating a contract to purchase a home.

Regardless of the number of pages in the sales contract, a contract offer can be broken down into 3 separate parts which can be important to the seller: price, terms and conditions. Each has to be satisfactory in order to obtain seller acceptance. In some situations, full price offers are not acceptable due to the buyer's terms and conditions in the contract offer. In other instances, contracts get accepted and signed even though the offer was much lower in price than other competing offers, but was more favorable for the seller in terms and conditions.

What then is the secret in preparing and submitting a contract offer to buy real estate? This is where the value of an experienced Buyer's Agent is with providing assistance in preparing the contract offer and structuring the contract offer to purchase in a manner that does not create questions or concerns for the seller and their listing agent when it is presented to them.

There is more to purchasing a home than just looking at houses, whether the home is in Iselin or Colonia, New Jersey, in Middlesex County or any other state for that matter.

Read More

Closed Real Estate Sales Data

Obtaining reliable current information is a very important aspect of searching for, or selling a home, in Iselin, New Jersey or any part of the County or State. I am providing Sales Data from the Middlesex County Multiple Listing System for one family homes and condos/townhouses comparing closed sales in 2009 to 2008.

This type of information can help you see the factual average trends of real estate sales and sale prices in particular Towns of interest as compared to reading about regional or national statistics.

Real estate is local. If you are thinking of buying or selling a home in Colonia, the real estate market there may not be same as in Edison or Woodbridge. Real estate values vary from Town to Town, and from one neighborhood or section of a Town to another.

Read More

 Choice Realty Co. Celebrates 35^th Anniversary 

I am a REALTOR^®.

A REALTOR^® is a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS^®  (NAR) and who abides by its Code of Ethics.

I am a Member of the Middlesex County Association of REALTORS^®, New Jersey Association of REALTORS^® (NJAR) and the National Association of REALTORS^®.

Equally important to the Code of Ethics that all REALTORS^® must abide by is the fact that these Trade Associations are the premier advocacy groups for private property rights for both the consumer and real estate licensees.

In case you missed some important news affecting private property ownership, I am providing Press Releases issued by the New Jersey Association of REALTORS^®.

February 27, 2009

New Jersey REALTOR^®   Oppose Obama Plan To Slash Mortgage Interest Deduction

The New Jersey Association of REALTORS^® (NJAR^®) today said President Obama's budget proposal to reduce the amount of mortgage tax deductibility for families earning over $250,000 will negatively impact housing and economic recovery efforts in high cost areas like New Jersey.

"While New Jersey enjoys the second highest household median income in the nation, our taxpayers also bear the heaviest state and local tax burden in the country," said NJAR^® Executive Vice President Jarrod Grasso, RCE. "In a high cost state like ours, reducing the amount of mortgage interest a family can deduct from their taxes will have a devastating impact on housing recovery efforts and limit many people's ability to achieve the dream of homeownership."

President Obama's budget proposal would limit the tax rate at which high-income taxpayers, those whose family income is $250,000 ($200,000 for singles) or more, to 28 percent for itemized deductions. Even though the proposal would apply only to households earning $250,000 or more, home prices across the board would fall as home buyers discount the value of the deduction in their purchase offers. This will lead to a drop in all home prices because a fall in home prices at the top end will eventually filter down to lower priced homes.

"At a time when both our federal and state governments are grappling with massive budget deficits and attempting to jumpstart our economy, this is exactly the wrong message to be sending," added Grasso. "Discussing President Obama's ill-advised plan will be at the top of our agenda when the NJAR^® leadership team heads to Washington, D.C. next week. We are hopeful New Jersey's congressional delegation will see how this approach will undue the work they have already done to revitalize the housing market and work to change it."

The NJAR^® leadership team will visit Capitol Hill in Washington, D.C. next week to discuss key issues that have an impact on property owners and the real estate industry, including the proposed cut in the mortgage interest deduction.

March 10, 2009

Corzine Budget Proposal is an Assault on Property Owners

Today, to a joint session of the New Jersey Legislature, Governor Jon Corzine proposed the state's spending plan for the upcoming year. This year's budget proposal was an attack on property owners. Property owners took a major hit when he declared his goal to eliminate the property tax deduction next year on state income taxes for everyone but seniors.

Amongst the drastic cuts Governor Corzine announced was a 2 percent reduction in municipal aid, which is used to offset property taxes. He also stated his intention to gut the property tax rebate program. Property tax rebates would be maintained at current levels for seniors, the disabled and those earning less than $50,000 a year. Households making $50,000 to $75,000 a year would only receive two-thirds of the rebate they received last year.

Additionally, Governor Corzine is looking to increase payroll taxes for unemployment insurance, as well as place a one-year three-fourths of 1 percent rate increase on the taxes paid by residents with incomes of $500,000 or more. He is also seeking to make state workers take 12 days of unpaid furloughs.

Governor Corzine said the new state budget will be about $29.8 billion, approximately $3 billion below the current spending plan. He said budget decisions were made as a result of a shrinking revenue base due to a poor economy. The bulk of $2 billion New Jersey is set to receive from President Obama's federal stimulus aid will go to Medicaid and education.

NJAR^® is gearing up for a legislative fight to oppose Governor Corzine's proposal to do away with the deduction of property taxes paid on state income tax filings, as well as other proposals that will lead to higher property taxes. Stay tuned as we will need all New Jersey REALTORS^® to be united in their opposition to these ill-advised policies.