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Weichert, Princeton Office October 2011 Market Update/ Forecast Seminar Offers analysis of the Princeton & Greater Princeton, NJ real estate markets & effective strategies to

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Page 1: October 2011

Weichert, Princeton Office October 2011

Market Update/ Forecast Seminar

Offers analysis of the Princeton & Greater

Princeton, NJ real estate markets & effective

strategies to buy and sell.

Page 2: October 2011

Presented by:

Joshua D Wilton

Broker/ Sales Rep.

Weichert Realtors

Princeton, NJ

(o) 609-921-1900

www.weichert-princeton.com

www.facebook.com/weichertprinceton

Page 3: October 2011

Agenda

1. The Market

- A History

- Forecast for 2012

2. Strategies for Buying

3. Strategies for Selling

Page 4: October 2011

Agenda

1. The Real Estate Market ( a

history brief history)

Page 5: October 2011
Page 6: October 2011

Unsold Inventory from the MLS in Weichert Market AreasNovember 2004 thru November 2010

0

5,000

10,000

15,000

20,000

25,000

10/2

0/20

0311

/20/

2003

12/2

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2/20

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43/

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20/2

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/20/

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/20/

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20/2

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/20/

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/20/

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12/2

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/201

03/

20/2

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4/20

/201

0

ASHBY TOTAL DOEPPER TOTAL BIXON TOTAL MCDONALD TOTAL PREVETE TOTAL WATERS TOTAL WILLIAMS TOTAL

11/ 15/ 0431,676

11/ 14/ 0541,156

11/ 13/ 0684,621

11/ 12/ 0788,414

11/ 17/ 0884,942

* added Waters & Williams Region to Totals

11/ 15/ 1092,096

11/ 16/ 0977,985

In our local area (CT/NY/NJ Lehigh Valley, PA), the number of homes for sale (Weichert and non-Weichert listings) has steadily increased over the past four years.

Variance % 2010 to 2009NY (Ashby) +13.11%CT (Doepper) +118.53%Passaic/Hudson/Bergen NJ (Bixon) +5.86%Western Central NJ/Lehigh Valley PA (McDonald) +6.78%Northern and Central NJ (Prevete) +9.24%Eastern Central/Shore Points NJ (Waters) +10.63%Southern NJ (Williams) +10.87%

Page 7: October 2011

Affordability Index

Source: NAR Housing Affordability Index 1971 to 2010

Definition: A measure of the financial ability of US Families to buy a house. 100 means that families earning the national median income have just the amount of money needed to qualify for a mortgage on a median priced home.

Higher than100 means they have more than enough. Lower than 100 means they have less than enough.

Definition: A measure of the financial ability of US Families to buy a house. 100 means that families earning the national median income have just the amount of money needed to qualify for a mortgage on a median priced home.

Higher than100 means they have more than enough. Lower than 100 means they have less than enough.

Page 8: October 2011

183.7Aug 2011

Affordability Index

Page 9: October 2011

1st Time Home Buyer Index

Page 10: October 2011

2011: State of the Market

+8.29%1 yr change‘09 vs ‘11

Page 11: October 2011

2012: State of the Market

Historically Low Interest Rates

Page 12: October 2011

30 Year Fixed interest rate

3.94%Lowest in recorded history

Page 13: October 2011

So why is the market so tight…?

Page 14: October 2011

5-6 months absorption rate indicates a normal market.

How Long Will Interest RatesRemain Low?

Page 15: October 2011

What will the future bring…?

Page 16: October 2011

What will the future bring…?

Page 17: October 2011

A long term outlook in NJ & Mercer County

‘Supply & Demand’

Source: NAR, November 2008 Forecast

Page 18: October 2011

NJ Housing Permits

Source: CensusSource: Census

In thousand units

Page 19: October 2011

NJ Housing Permits

Source: CensusSource: Census

RESIDENTIAL BUILDING PERMITS AUTHORIZED 2000-2008

COUNTY 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total

Atlantic County 1,625 1,685 2,020 2,285 2,075 2,002 1,893 1,136 794 15,515Bergen County 2,847 1,784 1,771 1,289 2,142 2,972 2,164 2,957 1,311 19,237Burlington County 2,775 2,184 2,359 1,805 1,516 1,475 2,784 1,037 976 16,911Camden County 796 757 1,160 1,934 1,413 1,706 1,183 1,191 895 11,035Cape May County 1,242 1,403 1,422 1,693 2,149 2,433 1,580 1,081 485 13,488Cumberland County 255 256 310 374 566 630 737 683 336 4,147Essex County 1,491 1,548 1,588 2,235 2,343 3,128 3,284 1,854 1,314 18,785Gloucester County 1,337 1,635 1,802 1,859 2,050 2,075 1,141 920 788 13,607Hudson County 1,338 1,116 1,534 2,116 3,808 4,498 4,275 3,081 3,229 24,995Hunterdon County 616 685 602 814 648 506 350 316 206 4,743Mercer County 1,283 1,355 1,428 1,188 1,641 1,296 847 700 625 10,363Middlesex County 2,460 1,884 1,999 2,306 2,622 3,206 2,567 1,597 1,020 19,661Monmouth County 2,912 2,194 2,372 2,756 2,628 2,584 2,820 2,060 1,526 21,852Morris County 2,684 1,577 1,914 1,555 1,427 2,503 1,670 1,052 795 15,177Ocean County 5,633 3,830 3,534 4,009 3,818 2,904 2,114 2,160 1,527 29,529Passaic County 457 631 689 829 763 647 850 760 432 6,058Salem County 161 180 170 307 334 297 298 148 198 2,093Somerset County 2,282 1,439 1,530 1,260 1,362 1,220 1,058 926 791 11,868Sussex County 719 808 679 587 612 668 603 360 302 5,338Union County 776 551 681 1,198 1,399 1,278 1,593 1,123 673 9,272Warren County 896 765 877 585 620 560 512 258 146 5,219 New Jersey 34,585 28,267 30,441 32,984 35,936 38,588 34,323 25,400 18,369 278,893

Page 20: October 2011

Long Term Supply …

Source: NAR, November 2008 Forecast

Richardson Commercial

Page 21: October 2011

Long Term Demand …

Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf

Page 22: October 2011

Long Term Demand …

Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf

Page 23: October 2011

Long Term Demand …

Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf

Page 24: October 2011

Long Term Demand …

Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf

Page 25: October 2011

Long Term Demand in Mercer County …

Source: NAR, November 2008 Forecast

Source: https://edis.commerce.state.nc.us/docs/countyProfile/NJ/34021.pdf

(Mercer County) Population & Growth Population Annual Growth Rate2013 Total Population 383,677 0.6%2008 Total Population 371,963 0.7%2000 Total Population 350,761

Page 26: October 2011

Affordabilitywill

Spur Recovery

2012: State of the Market

Page 27: October 2011

1. Real Estate is Local

Top Five Rules for Understanding the Real

Estate Market:

2. Real Estate is Local

3. Real Estate is Local

4. Real Estate is Local5. Real Estate is Local

Page 28: October 2011

Mercer County SF Inventory 01-10

Trendmls.com

Page 29: October 2011

Mercer County SF Settled Units 01-10

Trendmls.com

Page 30: October 2011

2010 v 2011 Market ComparisonTown 2011

Listed2011 Sold

2010 Listed

2010 Sold

2011DOM

2010 DOM

2011 Sold $

2010 Sold $

2011 Avg. $

2010 Avg. $

Pton Twp.

306 142 290 135 100 95 $134K $119K $950K $889K

Pton Boro

121 50 115 51 887 117 $42K $48K $842K $942K

West Windsor

382 224 469 264 72 57 $116K $140K $521K $532K

Lawrence 429 192 495 242 97 87 $59K $81K $310K $335K

Hope-well

296 119 350 146 111 115 $54K $73K $460K $504K

Ewing 513 168 575 210 116 94 $29K $44K $178K $211K

East Windsor

400 119 411 156 118 96 $30K $40K $252K $260K

Plains-boro

285 147 298 169 82 60 $56K $70K $319K $329K

Page 31: October 2011

1. You Understand the Local Market That You are Buying into or Selling out

of…-Inventory- Location

- Sales Patterns- Neighborhood, Location

- Style of Home, Beds, Baths, etc

Page 32: October 2011

Market Absorption Scale(Absorption Rate in Months)

5-6 months absorption rate indicates a normal market.

Page 33: October 2011

Absorption Rate by Price Range

Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market

absorption and property values.

As absorption rates increase beyond a normal market level of 5-6 months, property

values depreciate annually.

Page 34: October 2011

Sample Market Absorption RateSample Market Absorption Rate

107 current active listings

4 reported sales in last 30 days

=

24.3months absorptionrate

Anytown., NJ

5-6 Months Market Absorption Rate indicates a normal market.

Page 35: October 2011

35Market Scale for Supply & Market Scale for Supply & DemandDemand

High Supply/Low Demand Low Supply/High DemandNormal

Ma

rke

t A

bso

rpti

on

in M

on

ths 1

2

3

4

5

6

7

8

9

10

11

12

No

rma

l

Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values.

As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually.

Note: This Market Scale is valid only for absorption rates between 1 and 12 months.

Page 36: October 2011

2007 thru 2011 Market Activity Comparison: Week of 10/22

2007

Active

Inventory

2007 Pending

Sales

(prev. 30 days)

2008

Active

Inventory

2008

Pending

Sales

(prev. 30 days)

2009

Active

Inventory

2009

Pending Sales

(prev 30 days)

2010

Active Inventory

2010

Pending Sales

(prev. 30 days)

2011

Active Inventory

2011

Pending Sales

(prev. 30 days)

Pton. Boro 52 3 42 3 44 7 46 2 44 7Pton Twp 118 5 100 3 122 11 134 9 158 3

W. Windsor 151 21 108 9 104 28 127 14 107 15Lawrence 235 9 196 10 197 30 207 15 195 10

East Windsor 214 11 200 15 164 35 225 7 225 7

Ewing 277 14 259 6 243 35 289 11 290 14Hamilton 596 37 594 36 534 107 639 40 640 49Hopewell

Twp. 186 5 125 5 153 24 159 3 169 5Cranbury 31 0 30 1 34 1 20 0 23 0Plainsboro 122 16 101 6 59 11 81 10 95 6

South Brunswick 202 16 211 16 164 18 259 13 258 13

Montgomery 137 16 117 12 128 23 159 13 139 20

Page 37: October 2011

10/18/11Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

Princeton Boro: All Styles

44 7 6.3 11 4 17 38.6% 0 3 5

Pton -Boro Condo/ Thouses

20 3 6.7 6 3 8 40% 0 2 2

Pton-BoroSingle Family

24 4 6 5 1 9 37.5% 0 1 3

Pton Twp: All Styles

158 6 26.3 21 15 29 18.4% 5 6 13

Pton Twp: Condo/ Thouses

24 1 24 5 4 4 16.7% 0 0 3

Pton Twp:Single Family

134 5 26.8 16 11 25 18.7% 5 6 10

Page 38: October 2011

10/18/11Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Li1stings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

West Windsor: All Styles

107 15 7.1 21 6 37 34.6% 7 8 21

West Windsor Condo/ T.Houses

21 2 10.5 7 5 3 14.3% 0 1 6

West Windsor55+

14 1 14 6 5 -- -- 0 0 1

West Windsor Single Family

72 12 6 8 -4 34 47.2% 7 7 14

Lawrence: All Styles

195 10 19.5 30 20 51 26.2% 17 5 12

Lawrence:Condo/THouses

58 4 14.5 5 1 22 38.4% 6 2 2

Lawrence: 55+

19 0 99 2 2 -- -- 1 0 1

Lawrence: Single Family

118 6 19.7 23 17 29 25.6% 10 3 9

Page 39: October 2011

10/18/11

Towns Active Listings

Pending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

PlainsboroAll Styles

95 6 16 20 14 28 29% 19 0 10

PlainsboroCondo/ THouses

56 3 18.66 11 8 17 30% 12 0 6

Plainsboro55+

14 1 14 2 1 2 14% 1 0 3

PlainsboroSingle Family

25 2 12.5 6 4 9 36% 6 0 1

Cranbury:All Styles

23 0 99 1 1 7 30% 4 0 3

Page 40: October 2011

10/18/11Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

Ewing: All Styles

290 14 20.7 37 23 64 22% 14 9 23

Ewing : Condo/ T.Houses

36 2 18 6 4 8 22% 3 4 5

Ewing 55+:

11 1 11 2 1 --- --- 0 0 1

Ewing:Single Family

243 11 22.1 29 18 56 23% 11 5 17

East Windsor:All Styles

225 7 32.1 34 27 42 19% 23 12 15

East Windsor:Condo/ Thouses

132 1 132 18 17 23 17% 17 7 6

East Windsor:55+

14 0 999 3 3 --- --- 0 0 0

East Windsor: Single Family

79 6 13.2 13 7 19 24% 6 5 9

Page 41: October 2011

10/18/11Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

Hopewell Twp.All Styles

169 5 34 27 22 35 21% 6 8 13

Hopewell Twp. Condo/ T.Houses

14 2 7 3 1 4 28.5% 0 0 4

Hopewell Twp.:55+

6 0 0 0 0 -- -- 1 1 1

Hopewell Twp Single Family

149 3 50 24 21 31 21% 5 7 8

Hamilton: All Styles

640 49 13 107 58 157 24.5% 42 20 58

Hamilton:Condo/ THouses

98 7 14 19 12 20 20% 11 5 6

Hamilton:55+

45 4 11 9 5 -- -- 2 2 3

Hamilton: Single Family

497 38 13 80 42 137 27.5% 29 13 49

Page 42: October 2011

10/18/11Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

RobbinsvilleAll Styles

139 19 7 22 3 38 27% 11 8 13

RobbinsvilleCondo/ T.Houses

57 11 5 8 (3) 19 33% 4 5 5

Single Family

82 8 10 14 6 19 23% 7 3 7

Hightstown Boro: All Styles

69 3 23 9 6 16 23% 12 1 6

Pennington

18 3 6 3 0 5 27% 1 1 3

Hopewell Boro

13 1 13 2 1 3 23% 1 0 2

Page 43: October 2011

10/18/11Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

South

Brunswick

All Styles

285 13 22 44 31 66 23 33 4 25

South BrunswickCondo/ T.Houses

88 6 14.7 13 7 26 30 12 2 4

South Brunswick

55+

34 1 34 2 1 5 15 2 1 5

South Brunswick

Single Family

163 6 27 29 23 35 21 19 1 16

Monroe:

All Styles504 8 63 89 81 86 17 6 62 54

Monroe:

55+312 5 62.4 67 62 54 17.3 3 29 48

Monroe:

Single Family

192 3 64 22 19 32 17 3 33 6

Page 44: October 2011

10/18/11Towns Active

ListingsPending in Last 30 Days

Absorption Rate in Months

New Listings in 30 Days

Net Gain (Loss) to Market

Listings Reduced in 30 Days

% of Invent. Reduced

Expired Listings

W/drawn Listings

Closed Listings

Montgomery

All Styles 139 20 6.9 25 +5 26 19% 14 7 13

Montgomery

Condo/Twnhms 26 5 5.2 6 +1 1 4% 3 0 2

Single Family113 15 7.5 19 +4 25 22% 11 7 11

Hillsborough

All Styles 288 24 12 51 +27 63 22% 28 9 33

Hillsborough

Condo/Twnhms 106 10 10.6 22 +12 27 22% 13 7 11

Hillsborough

Single Family 182 14 13 29 +15 36 20% 15 2 22

Page 45: October 2011

Understand the Market That You are Buying/ Selling in…

I want to live/ sell in West Windsor…..

Page 46: October 2011

Sample Market Absorption RateSample Market Absorption Rate

107 current active listings

4 reported sales in last 30 days

=

24.3months absorptionrate

Anytown., NJ

5-6 Months Market Absorption Rate indicates a normal market.

Page 47: October 2011

West Windsor Colonials By Price

5-6 months absorption rate indicates a normal market.

Price Actives Pendings Ab. Rate

$300-$500 17 3 5.6

500-$650 12 3 4

$650-$799 14 4 3.5

$800-$999 6 0 99

$1 million + 2 1 2

Page 48: October 2011

Princeton Twp. Single Fam. by Price Alone

5-6 months absorption rate indicates a normal market.

Price Actives Pendings Ab. Rate

$400-$600 16 1 16

$600-$799 19 2 9.5

$1.0 – 1.35 14 2 7

$1.36-$1.65 16 0 99

$1.65-$2.0 10 0 99

Page 49: October 2011

Princeton Twp. Single Fam. by Price Alone

5-6 months absorption rate indicates a normal market.

Price Actives Pendings Ab. Rate

$2.0 - $3.0 9 1 9

$3.0-$5.0 15 0 99

$5.0+ 3 0 99

Page 50: October 2011

Buying/ Selling Strategies

Source: MLS

Page 51: October 2011

‘I don’t want to buy a house and then watch it drop in value!’

Page 52: October 2011
Page 53: October 2011

 Purchase Price $329,000 Loan Amount $317400

Down Payment $11,515 Monthly P&I $1802

Appreciation/Depreciation Home Value1st Year -3% $319,1302nd Year 0% $319,1303rd Year 1% $322,3214th Year 3% $331,9905th Year 5% $348,5905 Year Appreciation/Depreciation $19,500

Tax Benefit  Vs Paying Rent @

$1600/mo1st Year $5,000 $19,2002nd Year $5,000 $19,2003rd Year $5,000 $19,2004th Year $5,000 $19,2005th Year $5,000 $19,2005 Year Total $25,000 $96,000

Total Gain $44,200Create Equity

v Pay Rent

Page 54: October 2011

 Purchase Price $329,000 Loan Amount $317400

Down Payment $11,515 Monthly P&I $1802

Appreciation/Depreciation Home Value1st Year 5 $319,1302nd Year 3% $319,1303rd Year 2% $322,3214th Year 2% $331,9905th Year 2% $348,5905 Year Appreciation/Depreciation $48,590

Tax Benefit  Vs Paying Rent @

$1600/mo1st Year $5,000 $19,2002nd Year $5,000 $19,2003rd Year $5,000 $19,2004th Year $5,000 $19,2005th Year $5,000 $19,2005 Year Total $25,000 $96,000

Total Gain $73,529Create Equity

v Pay Rent

Page 55: October 2011

+ The Amortization Schedule on a Loan

Yearly Schedule of Balances and PaymentsYear

Beginning Balance

Payment Principal InterestCumulative

PrincipalCumulative Interest

Ending Balance

2010 $315,646.96 $21,625.92 $4,374.96 $17,250.96 $6,128.00 $24,508.72$311,272.0

0

2011 $311,272.00 $21,625.92 $4,621.30 $17,004.62 $10,749.30 $41,513.34$306,650.7

0

2012 $306,650.70 $21,625.92 $4,881.98 $16,743.94 $15,631.28 $58,257.28$301,768.7

2

2013 $301,768.72 $21,625.92 $5,157.36 $16,468.56 $20,788.64 $74,725.84$296,611.3

6

2014 $296,611.36 $21,625.92 $5,448.28 $16,177.64 $26,236.92 $90,903.48$291,163.0

8

Page 56: October 2011

Appreciation (conservitive): $19,500

+Amortization: $20,109

+ Tax Benefit of Home Ownership

$25,000+

Low Interest Rates: $5000___________________

total 5 year gain = $69,609

Page 57: October 2011

How Long Will Interest RatesRemain Low?

• “It's hard to imagine that the rates can go much lower than they are.” ~ Amy Crews Cutts, deputy chief economist at Freddie Mac2

Page 58: October 2011

Market Absorption Scale(Absorption Rate in Months)

5-6 months absorption rate indicates a normal market.

Page 59: October 2011

1. ‘I am going to time the Market and buy/ sell at the time when

inventory & buyer count is in my favor…’

Source: MLS

Page 60: October 2011

0

20

40

60

80

100

120

140

160

180

1/7/2007 4/1/2007 6/24/2007 9/23/2007 12/16/2007

Gross # of Guests 2009

Weekly Guests Thru the Weichert Princeton Open Houses, 2010

Page 61: October 2011

Source: MLS

Inventory Levels, Princeton Twp. New Jersey, 2010

Page 62: October 2011

3. ‘I am going to wait until the price comes down

further and then make an offer/ if I lower my price I

will get lower bids…?Source: MLS

Page 63: October 2011

Don’t WaitWest Windsor: 75%

Homes currently Under Contract: 32

Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :

24

East Windsor: 76%Homes currently Under Contract:

21

Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :

16

Page 64: October 2011

Don’t Wait

Plainsboro: 95%

Homes currently Under Contract: 21

Under contract within 30 days of Listing at the Right Price or Re-

positioning in line with the market : 20

Page 65: October 2011

It’s About Price

Sellers, if your listing hasn’t gone under contract in the last 30 days and the price is not adjusted it will not go under contract in

the next 30.

If the home your buyer wants has not had a price adjustment in the last 30 days it is the perfect time to go face to face with the seller

to negotiate!

Page 66: October 2011

Jeff Smith,

Loan Officer

Weichert Financial Services

Financial Benefits and Financial Benefits and Process of Home-Process of Home-

Ownership.Ownership.

Page 67: October 2011

Pop Quiz…Pop Quiz…

If you take out a $200,000 30 year fixed payment loan from

the bank, what is your monthly payment?A. $1901.

B. $1640.C. $1201.

D. $969.

Page 68: October 2011

1 Source: Freddie Mac 2 As reported in the Washington Post 12/26/09 3 As reported on CNBC 12/22/09

• “It's hard to imagine that the rates can go much lower than they are.” ~ Amy Crews Cutts, deputy chief economist at Freddie Mac2

How Long Will Interest RatesRemain Low?

Page 69: October 2011

Monthly Payment Savings

• Interest rates have dipped to 50-year lows, increasing buyer affordability.

One Year Ago Today

Mortgage Amount $300,000 $300,000

Monthly Payment (P&I) $1,704 $1,476

Savings $228/month

Monthly payments are based on interest rates of 5.5% on 9/13/2009 vs. 4.25% on 9/13/2010.

Page 70: October 2011

The interest rate assumption is based on a 30-year fixed rate mortgage.

Bought 2005:

$272,800Bought 2011

$245,000

$252 difference per month for 30 years

The Opportunity in 2011

Page 71: October 2011

• The first step is to meet with, me, Jeff

Smith!

Establish Establish YourYour Buying Buying PowerPower

Page 72: October 2011

The Impact of Pricing on the Salability of Your Home..…

Page 73: October 2011

All Negotiations, including real estate, are all about negotiation and control.

Home Staging

Who is in control?

Page 74: October 2011

It’s About PriceWest Windsor: 79%

Homes currently Under Contract: 33

Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :

26

East Windsor: 77%Homes currently Under Contract:

31

Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :

24

Page 75: October 2011

It’s About PricePlainsboro: 100%

Homes currently Under Contract: 14

Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :

14(7/7)

Robbinsville: 70%Homes currently Under Contract:

13

Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :

9

Page 76: October 2011

It’s About Price

If your listing hasn’t gone under contract in the last 30 days and the price is not adjusted

it will not go under contract in the next 30.

Page 77: October 2011

Negotiations are about leverage, use the

listing price as part of yours…

Source: MLS

Page 78: October 2011

Princeton Twp. 2010

The Price Trend Came up with a price of $850,000. I recommended a price of $799,000.

Page 79: October 2011

Negotiations are about leverage, use the listing price

as yours…

Listed at $799,000. 5 offers, sold at $942,000.

The seller had control.

Page 80: October 2011
Page 81: October 2011

One AimDetermining your best asking price.

Our unique method goes beyond the traditional assessment of comparable home prices by anticipating changing marketing conditions in your area.

Page 82: October 2011

Princeton Sold Homes, 2010

Days on Market

Page 83: October 2011

List to Sales Price Ratio 2010

Page 84: October 2011

Local Market Update

Page 85: October 2011

Local Market Update

Page 86: October 2011

2. The Effect of Staging on the Value of a Home.

Page 87: October 2011

All Negotiations, including real estate, are all about negotiation and control.

Home Staging

Who is in control?

Page 88: October 2011

The process of preparing homes for sale regardless of 

 Price, Location, or Condition

To achieve the maximum sales price in  the  minimum marketing time.

The GOAL is to appeal to the broadest range of BUYERS.

Page 89: October 2011

The Way You Live In Your Home…

Page 90: October 2011

… And The Way We Market And Sell A House Are Two Different Things.

Page 91: October 2011

“The Investment in Home Staging is Always Less than Your

First Price Reduction!”

Page 92: October 2011

Buyers Only Know What They See …

Page 93: October 2011

… Not The Way It Is Going To Be.

Page 94: October 2011

Home Staging

*Based on a StagedHomes.com survey of over 400 homes across Canada & the Continental US prepared for sale by an Accredited Staging Professional (ASP™) from June 2007 through November 2007.

“The investment in home staging is always less than your first price reduction!”

Page 95: October 2011

Home Staging

*Based on a StagedHomes.com survey of over 400 homes across Canada & the Continental US prepared for sale by an Accredited Staging Professional (ASP™) from June 2007 through November 2007.

The average increase in sales price of an

ASP Staged vs. non-Staged home is 6.9%.

That is an additional $31,050 on a $450,000

sale.

“The investment in home staging is always less than your first price reduction!”

Page 96: October 2011

One AimDetermining your best asking price.

Our unique method goes beyond the traditional assessment of comparable home prices by anticipating changing marketing conditions in your area.

Page 97: October 2011

All Negotiations, including real estate, are all about negotiation and control.

Home Staging

Who is in control?

Page 98: October 2011

What is

‘Pre-Inspection?’

Page 99: October 2011

Pre-Inspection

WHAT DOES PRE-INSPECTION INCLUDE? The standard home inspector's report will review the condition of the home's heating system, central air 

conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and 

doors; the foundation, basement, and visible structure.  

Page 100: October 2011

PRE-LISTING Home Inspection

DOESN’T THE BUYER DO THE HOME INSPECTION?

Page 101: October 2011

All Negotiations, including real estate, are all about negotiation and control.

Home Staging

Who is in control?

Page 102: October 2011

PRE-LISTING Home Inspection

Data on where most sales fall apart: attorney review, home inspection.

Fall Thru Percentage 2007: 26%Fall Thru Percentage 2010: 10%.

Page 103: October 2011

Home Improvements

I am moving out of the house, I do not want spend too much money to move.

Or

I just spent $$ on a new kitchen, I want $$$$$$ back on that investment when I move.

Page 104: October 2011
Page 105: October 2011

Weichert Family of Companies

What will a real estate company

do for me?

Page 106: October 2011

Making Your Purchase as Making Your Purchase as Smooth as PossibleSmooth as Possible

Buying a home involves the careful coordination of many people.

Choosing a real estate team you can count on will make the process smoother

and easier.

Page 107: October 2011

• Time is money.

The Weichert The Weichert DifferenceDifference

• Stress kills.

• Time is life.

Page 108: October 2011

Educate You.

Negotiate on your behalf.

Offer advice on due diligence.

Manage all aspects of the transaction

process.

What Will a Weichert Agent Do for Me?

Page 109: October 2011

We’re Here to HelpWe’re Here to Help

The Entire Process is reviewed by Legal Council.

Page 110: October 2011

Become a Fan!

www.facbook.com/weichertprinceton

www.weichert-princeton.com

We post a ton of great market data on these two sites.

Page 111: October 2011

Resource and website list:

Realtor.org

http://www.facebook.com/pages/

NAR-Research/73888294183#

Remodeling.com

Page 112: October 2011

Resource and Website Resource and Website ListList

http://www.realtor.org/research/research/housinginx

Remodeling.com

www.Otteau.com

www.Pre-listing-inspection.com

Page 113: October 2011

Resource and Website Resource and Website List:List:

www.Housemaster.com

www.Stagingshoppingcenter.com

Page 114: October 2011

Resource and website Resource and website list:list:

www.Stagedhomes.com

www.realestatestagingassociation.com

www.realtytrac.com