December 2011 Market Seminar

Weichert, Princeton Office January 2011

Market Update/ Forecast Seminar

Offers analysis of the Princeton & Greater

Princeton, NJ real estate markets & effective

strategies to buy and sell.

Presented by:

Joshua D Wilton

Broker/ Sales Rep.

Weichert Realtors

Princeton, NJ

(o) 609-921-1900

www.weichert-princeton.com

www.facebook.com/weichertprinceton

Agenda

1. The Market

- A History

- Forecast for 2012

2. Strategies for Buying

3. Strategies for Selling

Agenda

1. The Real Estate Market

2. (a brief history)

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

0/20

031/

20/2

004

2/20

/200

43/

20/2

004

4/20

/200

45/

20/2

004

6/20

/200

47/

20/2

004

8/20

/200

49/

20/2

004

10/2

0/20

0411

/20/

2004

12/2

0/20

041/

20/2

005

2/20

/200

53/

20/2

005

4/20

/200

55/

20/2

005

6/20

/200

57/

20/2

005

8/20

/200

59/

20/2

005

10/2

0/20

0511

/20/

2005

12/2

0/20

051/

20/2

006

2/20

/200

63/

20/2

006

4/20

/200

65/

20/2

006

6/20

/200

67/

20/2

006

8/20

/200

69/

20/2

006

10/2

0/20

0611

/20/

2006

12/2

0/20

061/

20/2

007

2/20

/200

73/

20/2

007

4/20

/200

75/

20/2

007

6/20

/200

77/

20/2

007

8/20

/200

79/

20/2

007

10/2

0/20

0711

/20/

2007

12/2

0/20

071/

20/2

008

2/20

/200

83/

20/2

008

4/20

/200

85/

20/2

008

6/20

/200

87/

20/2

008

8/20

/200

89/

20/2

008

10/2

0/20

0811

/20/

2008

12/2

0/20

081/

20/2

009

2/20

/200

93/

20/2

009

4/20

/200

95/

20/2

009

6/20

/200

97/

20/2

009

8/20

/200

99/

20/2

009

10/2

0/20

0911

/20/

2009

12/2

0/20

091/

20/2

010

2/20

/201

03/

20/2

010

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%

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.

183.7Aug 2011

Affordability Index

1st Time Home Buyer Index

2011: State of the Market

+8.29%1 yr change‘09 vs ‘11


Historically Low Interest Rates

30 Year Fixed interest rate

3.94%Lowest in recorded history

So why is the market so tight…?

5-6 months absorption rate indicates a normal market.

How Long Will Interest RatesRemain Low?

What will the future bring…?

A long term outlook in NJ & Mercer County

‘Supply & Demand’

Source: NAR, November 2008 Forecast

NJ Housing Permits

Source: CensusSource: Census

In thousand units

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

Long Term Supply …


Richardson Commercial

Long Term Demand …

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

Long Term Demand in Mercer County …


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

Affordabilitywill

Spur Recovery


1. Real Estate is Local

Top Five Rules for Understanding the Real

Estate Market:



4. Real Estate is Local5. Real Estate is Local

Mercer County SF Inventory 01-10

Trendmls.com

Mercer County SF Settled Units 01-10

Trendmls.com

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.

328 167 313 161 103 98 $156m $142m $937k $883K

Pton Boro

130 66 125 66 81 109 $56m $59m $857k $899k

West Windsor

412 251 497 311 72 60 $132m $166m $522k $536k

Lawrence 461 217 550 284 101 91 $66m $96m $305k $339k

Hope-well

321 137 380 168 121 122 $62m $88m $455k $528k

Ewing 574 195 642 252 119 98 $34.3m

$52m $176k 208

East Windsor

452 138 453 176 120 97 $34.5 46 $250k $263k

Plains-boro

310 167 327 200 82 61 $65m $78m $328k $391k

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

Market Absorption Scale(Absorption Rate in Months)


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.

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.

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.

2007 thru 2011 Market Activity Comparison: Week of 12/10

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 32 2 39 2 30 2 37 3 39 3Pton Twp 102 3 86 7 87 5 117 8 122 4

W. Windsor 112 9 102 5 90 18 91 15 91 12Lawrence 197 15 175 9 195 26 179 14 175 5

East Windsor 183 18 187 14 157 20 211 2 216 12

Ewing 199 12 218 8 225 17 267 7 256 20Hamilton 553 30 534 31 484 56 580 23 585 30Hopewell

Twp. 172 20 100 13 138 14 139 1 142 8Cranbury 28 1 21 0 26 2 21 0 21 0Plainsboro 94 5 88 5 86 9 82 5

South Brunswick 175 10 206 11 147 18 259 12 242 9

Montgomery 95 9 99 8 95 10 140 22 106 24

12/6/11Towns 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

91 12 7.6 20 8 15 16.5% 9 7 13

West Windsor Condo/ T.Houses

19 6 3.2 4 -2 2 10.5% 0 0 2

West Windsor55+

12 0 99 1 1 -- -- 0 0 3

West Windsor Single Family

60 6 10 15 9 13 21.7% 9 7 8

Lawrence: All Styles

175 5 35 16 11 29 16.8% 15 9 13

Lawrence:Condo/THouses

59 3 19.7 8 5 11 18.6% 6 2 2

Lawrence: 55+

13 1 13 1 0 -- -- 1 3 0

Lawrence: Single Family

103 1 103 7 6 18 17.8% 8 4 11

12/6/11Towns Active





Listings Reduced in 30 Days


Expired Listings

W/drawn Listings

Closed Listings

Ewing: All Styles

256 20 12.8 34 14 55 21% 19 9 16

Ewing : Condo/ T.Houses

27 8 3.5 6 -2 12 44% 2 3 3

Ewing 55+:

10 0 999 0 0 --- --- 0 0 1

Ewing:Single Family

219 12 18.3 28 16 43 20% 17 6 12

East Windsor:All Styles

216 12 18 32 20 39 18% 22 6 14

East Windsor:Condo/ Thouses

127 5 25.4 22 17 27 21% 15 4 6

East Windsor:55+

14 1 14 2 1 --- --- 1 0 1

East Windsor: Single Family

75 6 12.5 8 2 12 16% 6 2 7

12/6/11Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Hopewell Twp.All Styles

142 8 18 15 7 21 15% 10 10 12

Hopewell Twp. Condo/ T.Houses

12 1 12 2 1 3 25% 1 2 2

Hopewell Twp.:55+

6 0 99 0 0 -- -- 0 0 0

Hopewell Twp Single Family 124 7 18 13 6 18 14.5% 9 8 10

Hamilton: All Styles 585 30 19.5 76 46 99 17% 38 20 47

Hamilton:Condo/ THouses 95 1 95 13 12 20 21% 6 4 11

Hamilton:55+ 40 1 40 8 7 -- -- 4 2 6

Hamilton: Single Family 450 28 16 55 27 79 17.5% 28 14 30

12/6/11Towns Active







Expired Listings

W/drawn Listings

Closed Listings

RobbinsvilleAll Styles 123 14 9 12 (2) 23 19% 9 2 21

RobbinsvilleCondo/ T.Houses

50 9 5.5 9 0 12 24% 4 1 12

Single Family 73 5 15 3 (2) 11 15% 5 1 9

Hightstown Boro: All Styles

57 5 11 8 3 8 14% 12 2 3

Pennington 18 2 9 1 1 4 22% 1 2 0

Hopewell Boro 7 3 2 0 (3) 0 0 3 1 2

12/6/11Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Princeton Boro: All Styles 39 3 13 4 -1 8 20.5% 2 3 9

Pton -Boro Condo/ Thouses 20 0 99 3 -3 3 15% 0 3 3

Pton-BoroSingle Family 19 3 6.3 1 3 5 26.3% 2 0 6

Pton Twp: All Styles 122 4 30.5 10 6 13 9.9% 11 7 16

Pton Twp: Condo/ Thouses 16 1 16 1 0 4 25% 5 0 4

Pton Twp:Single Family 106 3 35.3 9 6 9 8.5% 6 7 12

12/6/11Towns Active







Expired Listings

W/drawn Listings

Closed Listings

South

Brunswick

All Styles

242 9 27 22 13 117 48 31 5 31

South BrunswickCondo/ T.Houses

72 2 36 8 6 43 60 10 1 10

South Brunswick

55+

35 1 35 3 2 20 57 0 0 1

South Brunswick

Single Family

125 6 21 11 5 54 43 21 4 20

Monroe:

All Styles 482 27 18 75 48 174 36 75 5 46

Monroe:

55+ 303 19 16 54 35 109 36 41 2 41

Monroe:

Single Family 179 8 22 21 13 65 36 34 3 5

12/6/11Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Montgomery

All Styles 106 24 4.4 15 -9 17 16% 17 9 15

Montgomery

Condo/Twnhms 19 6 3.2 2 -4 3 16% 3 3 4

Single Family87 18 4.8 13 -5 14 16% 14 6 11

Hillsborough

All Styles 255 32 8 33 +1 31 12% 19 8 24

Hillsborough

Condo/Twnhms 109 7 15.6 17 +10 16 15% 6 4 9

Hillsborough

Single Family 151 25 6 16 -9 15 10% 13 4 15

Understand the Market That You are Buying/ Selling in…

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

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.

West Windsor Colonials By Price


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

Princeton Twp. Single Fam. by Price Alone


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

Buying/ Selling Strategies

Source: MLS

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

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

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

+ 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

Appreciation (conservitive): $19,500

+Amortization: $20,109

+ Tax Benefit of Home Ownership

$25,000+

Low Interest Rates: $5000___________________

total 5 year gain = $69,609


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

Market Absorption Scale(Absorption Rate in Months)


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

inventory & buyer count is in my favor…’

Source: MLS

Listing v Contracts: Dec – Jan 2011, Princeton Twp.

Date Units Listed

Listed Volume

Listed Average

Pended Units Sold

Sold Volume

Sold Averag

e

Average DOM

Dec 2011 1 975,000 975,000 1 7 6,049,810 864,258 127Nov 2011 12 13,448,470 1,120,705 7 14 13,615,375 972,526 121Oct 2011 19 30,493,500 1,604,921 17 8 4,701,870 587,733 125Sep 2011 27 32,652,276 1,209,343 14 18 19,890,800 1,105,04

491

Aug 2011 16 12,546,300 784,143 9 28 26,741,650 955,058 89July 2011 19 14,944,800 786,568 16 20 27,159,000 1,357,95

068

June 2011 39 41,836,900 1,072,741 19 21 15,886,499 756,499 122May 2011 52 65,734,444 1,264,123 35 15 13,484,100 898,940 72Apr 2011 40 40,740,062 1,018,501 13 8 6,756,950 844,618 133Mar 2011 51 68,914,088 1,351,256 22 14 12,117,000 865,500 128Feb 2011 32 23,239,909 726,247 8 6 4,103,000 683,833 128Jan 2011 20 24,895,499 1,244,774 6 8 6,051,000 756,375 99

Totals: 328 370,421,248 1,129,333 167 167 156,557,054 937,467 103

Listing v Contracts: Dec – Jan 2011, West Windsor.

Date Units Listed

Listed Volume

Listed Average

Pended Units Sold

Sold Volume

Sold Averag

e

Average DOM

Dec 2011 4 2,286,700 571,675 1 1 585,000 585,000 57

Nov 2011 23 14,398,655 626,028 13 14 7,265,295 518,949 79Oct 2011 22 10,658,488 484,476 12 24 14,353,000 598,041 87

Sep 2011 25 12,208,440 488,337 24 23 12,385,025 538,479 61Aug 2011 27 12,722,210 471,192 25 34 17,294,750 508,669 54

July 2011 35 18,198,790 519,965 20 37 20,523,900 554,700 56

June 2011 45 26,025,988 578,355 36 34 17,281,476 508,278 70May 2011 48 26,107,288 543,901 35 21 11,744,500 559,261 76

Apr 2011 64 34,006,062 531,344 32 14 6,025,000 430,357 63Mar 2011 56 32,541,174 581,092 14 21 10,676,000 508,380 83

Feb 2011 35 19,939,237 569,692 15 11 4,379,000 398,090 113Jan 2011 28 14,258,350 509,226 21 17 9,720,500 571,794 101

Totals: 412 223,351,382 542,115 248 251 132,233,446 526,826 72

Source: MLS

Inventory Levels, Princeton Twp. New Jersey, 2010

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

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

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

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!

Jeff Smith,

Loan Officer

Weichert Financial Services

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

Ownership.Ownership.

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.

Pop Quiz…Pop Quiz…

What does an average buyer need for a down payment?

A. 25%B. 20%

C. 10%D. 3.5%D. 0%

FHA Loan Limits Reinstated…The new limits are in effect for case numbers issued from

November 18th of this year through September 30, 2012.It also permits up to a 6% seller contribution from a seller to a

buyer for actual closing costs and escrows.

Local County Limits:Hunterdon $729,750

Mercer $440,000Middlesex $729,750Monmouth $729,750

Salem $420,000Somerset $729,750

Introducing the USDA Mortgage

OPPORTUNITY:

Customers want to purchase homes with little or no money down.

SOLUTION:

The USDA 100% Financing Mortgage will help your borrowers overcome one of the greatest obstacles to

homeownership – a down payment.

Information and Eligibility

• No down payment required.

• Property must be located in a “Rural Housing Designated Area” as defined by Rural Development.

• Borrowers must meet income eligibility requirements.

The USDA Rural Development Guaranteed Rural Housing Program is an affordable housing loan program guaranteed (insured) by the U.S. Department of Agriculture.

Your Gold Services Manager will help youdetermine borrower and property eligibility.

Buyer Profiles

*See your Gold Services Manager for details.

Perfect for customers looking to:

Purchase a new dwelling.

Improve an existing dwelling.

Refinance an existing rate/term Rural Housing Service (RHS) guaranteed loan.*

Features and Benefits

• Fixed rate mortgage:- 30-year term only. - ARMS are not available.

• No down payment is required.

• No pre-payment penalty.

• No PMI required.

• Maximum loan amount is $417,000.

This type of loan is mainly for purchase financing and primary residences only.

Features and Benefits

• Cash reserves are not required. Borrowers without savings, or those who wish to retain their savings, qualify.

• Seller contribution up to 6 percent. Borrower out-of-pocket expenses are minimal.

• First-time homebuyer qualification is not required. All homebuyers are eligible for benefits, but first-time buyers are required to complete an online course prior to closing.

Property Eligibility

Property must be in a “Rural Housing Designated Area.” Single-family detached PUD (attached or detached) Condominiums (attached condominiums must

meet FHA standards and be on the FHA’s approved condo list)

Factory-built/modular (new or existing) Leasehold End loans only (no construction loans)

Let’s indentify your listings thatqualify for USDA financing.

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


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.

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

• The first step is to meet with Jeff Smith!

Establish Establish YourYour Buying Buying PowerPower

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

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

Home Staging

Who is in control?

Negotiations are about leverage, use the

listing price as part of yours…

Source: MLS

Princeton Twp. 2010

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

Negotiations are about leverage, use the listing price

as yours…

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

The seller had control.

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.

Princeton Sold Homes, 2010

Days on Market

List to Sales Price Ratio 2010

Local Market Update

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


Home Staging

Who is in control?

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.

The Way You Live In Your Home…

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

“The Investment in Home Staging is Always Less than Your

First Price Reduction!”

Buyers Only Know What They See …

… Not The Way It Is Going To Be.

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!”

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!”

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.


Home Staging

Who is in control?

What is

‘Pre-Inspection?’

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.

PRE-LISTING Home Inspection

DOESN’T THE BUYER DO THE HOME INSPECTION?


Home Staging

Who is in control?

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%.

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.

Weichert Family of Companies

What will a real estate company

do for me?

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.

• Time is money.

The Weichert The Weichert DifferenceDifference

• Stress kills.

• Time is life.

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?

We’re Here to HelpWe’re Here to Help

The Entire Process is reviewed by Legal Council.

Become a Fan!

www.facbook.com/weichertprinceton

www.weichert-princeton.com

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

Resource and website list:

Realtor.org

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

NAR-Research/73888294183#

Remodeling.com

Resource and Website Resource and Website ListList

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

Remodeling.com

www.Otteau.com

www.Pre-listing-inspection.com

Resource and Website Resource and Website List:List:

www.Housemaster.com

www.Stagingshoppingcenter.com

Resource and website Resource and website list:list:

www.Stagedhomes.com

www.realestatestagingassociation.com

www.realtytrac.com

December 2011 Market Seminar

Real Estate

Transcript of December 2011 Market Seminar