The document provides an overview of real estate market conditions in Princeton, NJ and surrounding areas from June 2017. It discusses national economic factors and trends positively impacting the housing market. At the local level, it analyzes housing inventory, demand, prices, and days on market in municipalities like Plainsboro, West Windsor, Lawrenceville, and Princeton. Strategies are presented for buyers and sellers to take advantage of the seller's market, including pricing competitively and acting quickly.

1. Princeton Area
Real Estate Market Update
June 2017
Josh Wilton
Managing Broker
Weichert Realtors
Princeton Office

2. “
Dave Ramsey
Financial Guru
When getting help with money,
whether it is insurance, real estate or
investments you should always look for
someone with the
heart of a teacher,
not the heart of a salesman.

3. Agenda
The Market: The Big Picture
Understanding the Local Market(s) You’re Buying
Into or Selling Out Of
Process and Strategies for Buyers and Sellers
Real Estate Market Update
Agenda

4. Real Estate Market Update
What are you hearing about the market?

5. The National Picture

6. Economic factors
6
Now ** 2013 2010
Gas per gallon (NY area) $2.45 $3.81 $2.73
Stock market (Dow Jones) 21,344 14,776 11,578
Avg. 30-year fixed rate 4.25%* 4.43% 4.71%
Consumer confidence rating 117.7 76.2 63.4
Household income $56,516 $53,046 $49,276
Unemployment rate 4.5% 7.4% 9.3%
Foreclosures 848,609 1,369 ,405 2,871,891
2010 to Current Comparisons

7. Listing Inventory
7
• BIG deal in 2016
• BIGGER deal in 2017
• Existing inventory levels down 11% over a year (nationally)

8. Median Seller Tenure In Home
8

9. First-Time Homebuyers make up
Majority of 2017 Home buyers*
9
• 52% First Time Homebuyers
• 61% Millennial Buyers (35 years and under)
• Millennials skip over starter homes for move-up properties
• NAR reported in 2016 17% of buyers under 25 year saved down
payment monies within one year

10. The boom….The New Jersey MarketThe Statewide Picture

11. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

12. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

13. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

14. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

15. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

16. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

17. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

18. The New Jersey MarketThe Statewide Picture
Source: NJAR 10K Research

19. The Local Market
Real Estate is Local
It’s Local to the County
It’s Local to the Town
It’s Local to the Price Point
It’s Local to the Neighborhood/Development
It’s Local to the Street
Real Estate is Local

20. ‘I can do my own local
research online…’
You’re probably thinking….

22. Online Estimates
If the estimate is accurate within 5% you’re
talking about a
$50,000 spread on a $500,000 estimate
The home value could be anywhere from
$475,000 - $525,000
And they’re only that close
a third of the time

23. The boom….The Local MarketThe Local Picture

24. Mercer County
Supply & Demand
Price Trends
Source: NAR, November 2008 Forecast
The Local Picture

25. Long Term Demand …
Source: NAR, November 2008 Forecast
http://lwd.dol.state.nj.us/labor/lpa/dmograph/est/est_index.html
Long Term Demand for Housing
2008 2009 2010 2011 2012 2013 2014 2015 2016

26. Long Term Demand …
Source: NAR, November 2008 Forecast
http://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf
Long Term Demand for Housing

27. Source: NJAR 10K Research Data
No jobs…no market

28. Source: NJAR 10K Research Data
Mercer/ Middlesex County
Market Drivers
1. Trains/Schools/Affordability
2. Schools/Trains/Affordability
3. Convenience/Town Center/Lifestyle
4. Affordability
5. Schools
6. Trains

29. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

30. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

31. Plainsboro Market Activity
Single Family Homes
Average Sale Price
2012 2013 2014 2015
Source: Middlesex MLS
2016
YTD 2017
$550,250*

32. Plainsboro Market Activity
Single Family Homes
Average Days on Market
Source: Middlesex MLS
2012 2013 2014 2015 2016
YTD 2017
11 days

33. Plainsboro Market Activity
Single Family Homes
List to Sale Price Ratio
Source: Middlesex MLS
2012 2013 2014 2015 2016
YTD 2017
99.7%

34. Plainsboro Market Activity
Condos & Townhouses
Average Sale Price
Source: Middlesex MLS
2012 2013 2014 2015 2016
YTD 2017
$271,000

35. Plainsboro Market Activity
Condos & Townhouses
Average Days on Market
Source: Middlesex MLS
2012 2013 2014 2015 2016
YTD 2017
70 days*
YTD 2017
49 days
w/pendings

36. Plainsboro Market Activity
Condos & Townhouses
List to Sale Price Ratio
Source: Middlesex MLS
2012 2013 2014 2015 2016
YTD 2017
96.6%

37. Source: NJAR 10K Research DataSource: NJAR 10K Research
Plainsboro, Year over Year, Jan – May
2014 2015 2016 2017
Listed 122 153 189 149
Pended 82 99 110 125
Sold 55 70 77 73
Avg List Price $426,563 $424,319 $509,000 $468,000

38. Source: NJAR 10K Research Data
West Windsor
Train
Schools
Lifestyle
Affordability

39. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

40. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

41. West Windsor Market Activity
Single Family Homes
Source: Trend MLS
2012 2013 2014 2015 2016 2017

42. West Windsor Market Activity
Source: Trend MLS
2012 2013 2014 20162015 2017

43. Open House Report

44. Source: NJAR 10K Research Data

45. West Windsor Market Activity
SF DOM
Source: Trend MLS
2012 2013 2014 20162015 2017

46. West Windsor Market Activity
Source: Trend MLS
2012 2013 2014 20162015 2017

47. West Windsor Market Activity
Source: Trend MLS
2012 2013 2014 20162015 2017

48. West Windsor Market Activity
Source: Trend MLS
2012 2013 2014 20162015 2017

49. West Windsor Market Activity
Source: Trend MLS
2012 2013 2014 20162015 2017

50. West Windsor Market Activity
Source: Trend MLS
2012 2013 2014 20162015 2017

51. West Windsor Market Activity
Source: Trend MLS
2012 2013 2014 20162015 2017

52. Source: NJAR 10K Research DataSource: NJAR 10K Research
WW, Year over Year, Jan – May
2014 2015 2016 2017
Listed 246 250 288 250
Pended 156 163 176 170
Sold 90 100 112 114
Avg List Price $608,000 $609,843 $613,471 $633,369

53. Source: NJAR 10K Research DataSource: NJAR 10K Research
East Windsor
Train
Schools
Lifestyle
Affordability

54. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

55. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

56. East Windsor Market Activity
Single Family Homes
Average Sale Price
2012 2013 2014 2016
Source: Trend MLS
2015 2017

57. East Windsor Market Activity
Single Family Homes
Average Days on Market
Source: Trend MLS
2012 2013 2014 20162015 2017

58. East Windsor Market Activity
Single Family Homes
List to Sale Price Ratio
Source: Trend MLS
2012 2013 2014 20162015 2017

59. East Windsor Market Activity
Condos & Townhouses
Average Sale Price
Source: Trend MLS
2012 2013 2014 20162015 2017

60. East Windsor Market Activity
Condos & Townhouses
Average Days on Market
Source: Trend MLS
2012 2013 2014 20162015 2016

61. East Windsor Market Activity
Condos & Townhouses
List to Sale Price Ratio
Source: Trend MLS
2012 2013 2014 20162015 2017

62. Source: NJAR 10K Research DataSource: NJAR 10K Research
EW, Year over Year, Jan – May
2014 2015 2016 2017
Listed 230 226 242 243
Pended 126 135 172 197
Sold 100 97 122 142
Avg List Price $241,839 $266,928 $261,421 $288,000

63. Source: NJAR 10K Research Data
Lawrenceville
Train
Schools
Lifestyle
Affordability

64. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

65. Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/

66. Lawrenceville Market Activity
Single Family Homes
Average Sale Price
2012 2013 2015
Source: TrendMLS
2014 2016 2017

67. Lawrenceville Market Activity
Single Family Homes
Average Days on Market
Source: TrendMLS
2012 2013 20152014 2016

68. Lawrenceville Market Activity
Single Family Homes
List to Sale Price Ratio
Source: TrendMLS
2012 2013 20152014 2016 2017

69. Lawrenceville Market Activity
Condos & Townhouses
Average Sale Price
Source: TrendMLS
201420132012 2015 2016 2017

70. Lawrenceville Market Activity
Condos & Townhouses
Average Days on Market
Source: TrendMLS
2012 2013 2014 2015 2016 2017

71. Lawrenceville Market Activity
Condos & Townhouses
List to Sale Price Ratio
Source: TrendMLS
2013 20152014 20162012 2017

72. Source: NJAR 10K Research DataSource: NJAR 10K Research
Law, Year over Year, Jan – May
2014 2015 2016 2017
Listed 292 276 288 288
Pended 153 135 170 200
Sold 102 103 121 152
Avg List Price $327,000 $404,000 $364,000 $378,000

73. Source: NJAR 10K Research DataSource: NJAR 10K Research
Princeton
Train
Schools
Lifestyle
Affordability

74. Source: NJAR 10K Research DataSource: NJAR 10K ResearchSource: TrendMLS

75. Princeton Market Activity
Source: TrendMLS

76. Princeton Market Activity
Source: TrendMLS

77. Princeton Market Activity
Source: TrendMLS

78. Princeton Market Activity
Source: TrendMLS

79. Princeton Market Activity
Source: TrendMLS

80. Princeton Market Activity
Source: TrendMLS

81. Princeton Market Activity
Source: TrendMLS

82. Princeton Market Activity
Source: TrendMLS

83. Princeton Market Activity
Source: TrendMLS

84. Source: NJAR 10K Research DataSource: NJAR 10K Research
Pton, Year over Year, Jan – May
2014 2015 2016 2017
Listed 246 266 282 241
Pended 155 143 174 157
Sold 98 90 101 113
Avg List Price $1.105 $1.164 $1.257 $1.263

85. Source: NJAR 10K Research DataSource: NJAR 10K Research
Ewing, Year over Year, Jan – May
2014 2015 2016 2017
Listed 264 288 327 291
Pended 111 145 197 216
Sold 105 104 167 183
Avg List Price $199,000 $222,000 $185,000 $213,000

86. Source: NJAR 10K Research DataSource: NJAR 10K Research
Hamilton, Year over Year, Jan – May
2014 2015 2016 2017
Listed 764 951 836 784
Pended 351 512 491 549
Sold 279 402 374 443
Avg List Price $233,000 $240,000 $226,000 $237,000

87. Source: NJAR 10K Research DataSource: NJAR 10K Research
Robbinsville, Year over Year, Jan – May
2014 2015 2016 2017
Listed 164 222 200 196
Pended 87 115 111 128
Sold 71 89 82 84
Avg List Price $381,000 $397,000 $410,000 $407,000

88. Source: NJAR 10K Research DataSource: NJAR 10K Research
Hopewell, Year over Year, Jan – May
2014 2015 2016 2017
Listed 248 283 240 254
Pended 102 133 145 140
Sold 54 87 113 104
Avg List Price $594,974 $583,488 $682,000 $703,000

89. The Local Market
Real Estate is Local
It’s Local to the Town
It’s Local to the Price Point
It’s Local to the Neighborhood/Development
It’s Local to the Street
Real Estate is Local

90. Strategies for
Buying and Selling
in Today’s Market

91. Source: NJAR 10K Research Data
When’s the best time to Buy/Sell?
Source: Trend MLS

94. Lawrence
6/15/17
Style Active Listings
Under
Contract in 30
Days
Absorption
Rate
New Listings in
30 Days
Net Inventory
Gain/Loss
Price
Reductions in
30 Days
% of Invent.
Reduced
Closed Sales
in 30 days
All Styles 161 32 5 42 10 85 53% 29
Single Family
11 22 5 26 4 56 50% 19
Condo/
Townhouse 45 9 5 14 5 27 60% 9
Adult
Community 6 1 6 2 1 1 17% 2

95. Lawrence
6/24/17
Style Active Listings
Under Contract in
30 Days
Absorption Rate
0-500 127 23 5.52
Single Family
500-700 22 5 4.4
Single Family
700-999 9 1 9
Single Family
$1.0+ 9 0 99*

96. East Windsor Market Activity
Style Active Listings
Under
Contract in 30
Days
Absorption
Rate
New Listings in
30 Days
Net Inventory
Gain/Loss
Price
Reductions in
30 Days
% of Invent.
Reduced
Closed Sales
in 30 days
All Styles 87 31 2.8 37 6 21 24.1% 31
Single Family
41 15 2.7 15 0 14 34.1 10
Condo/
Townhouse 41 13 3.2 19 6 7 17.1 18
Adult
Community 5 3 1.7 3 0 0 0 3

97. Hightstown Market Activity
Style Active Listings
Under Contract
in 30 Days
Absorption Rate
New Listings in
30 Days
Net Inventory
Gain/Loss
Price Reductions
in 30 Days
% of Invent.
Reduced
Closed Sales
in 30 days
All Styles 32 4 8.0 12 8 10 31.3 7

98. Hamilton Market Activity
Style Active Listings
Under
Contract in 30
Days
Absorption
Rate
New Listings in
30 Days
Net Inventory
Gain/Loss
Price
Reductions in
30 Days
% of Invent.
Reduced
Closed Sales
in 30 days
All Styles 381 83 4.6 134 51 17 4.5 99
Single Family
291 71 4 99 28 17 5.8 80
Condo/
Townhouse 74 10 7.4 30 20 0 0 15
Adult
Community 16 2 8 5 3 0 0 4

99. West Windsor Market Activity
Style Active Listings
Pending in last
30 Days
Absorption
Rate
New Listings in
30 Days
Net Inventory
Gain/Loss
Price
Reductions in
30 Days
% of Invent.
Reduced
Closed Sales
in 30 days
All Styles 127 20 6.35 52 32 40 31.5 34
Single Family
103 15 6.9 34 19 37 36 23
Condo/
Townhouse 18 3 6 16 13 2 11 9
Adult
Community 6 2 3 2 0 1 17 2
6/15/17

100. West Windsor Market Activity
6/24/17
Style Active Listings
Pending in last
30 Days
Absorption
Rate
SF
0-650
54 14 3.8
SF
650-799
27 9 3
SF
800-999 30 3 10

101. Open House Report

102. Robbinsville Market Activity
6-15-2017
Style Active Listings
Under
Contract in 30
Days
Absorption
Rate
New Listings in
30 Days
Net Inventory
Gain/Loss
Price
Reductions in
30 Days
% of Invent.
Reduced
Closed Sales
in 30 days
All Styles 115 29 4.0 35 6 2 1.7% 23
Single Family
55 15 3.7 11 -4 0 0.0% 9
Condo/
Townhouse 56 14 4.0 24 10 2 3.6% 14
Adult
Community 4 0 99 0 0 0 0.0% 0

103. 2017
Top Buyer Negotiating Strategies…
1.Pay Now or Pay More Later (based on core market, schools,
trains and towns)
2.Don’t Wait to Offer on an ‘Over-Priced’ Home, its fun to
negotiate 1:1
3.Use an Escalation Clause in High-Demand Markets & in
multiple bid situations
4. ‘Thin Slice’ the Market. Get hyper local (ab rate,
inventory, pricing etc)

105. Buyer Negotiation Tips in a Fast Market
1. Understand the process before you start shopping.
2. Have mortgage pre-approval from a local, respected,
reliable lender
3. Put a significant amount in escrow if possible
4. Be as flexible as possible with your closing date
5. Remove as many contingencies as possible (inspection,
appraisel, etc)
6. Use an Escalation Clause

107. Financial Services
Carlos A. Machado
Gold Services Manager
Princeton Office
NMLS #4384
Weichert Financial Services
908-307-8317
cmachado@weichertfinancial.com

108. •For Sellers: To make sure they have all the
information they need to choose an offer
•For Buyers: Buying Power & Documentation
My Job…

109. As the seller, do I get to see the
pre-approval letter?
• The Pre-approval letter must be with all the offers.
• Cash deals should be accompanied with a "proof of funds"
which is a bank statement or letter from the bank or escrow
agent
• Make sure the letter is not a pre-qualification (this is only an
opinion letter)
• Let me help you review and confirm the pre-approvals you
have when you go to select an offer

110. We will help you to find out your
Purchase Power !

111. Your Mortgage Loan Checklist
• Two Forms of identification (including 1 government
photo ID.
• Pay stubs for the past 30 days.
• Your most recent last two years' W-2.
• All pages of your signed personal tax returns, for the
two most recent years.
• All pages of your most recent bank statement.
• (sellers, make sure that this was done)

112. Negotiating Your Purchase

113. Experience a smooth closing!
• Don’t apply for credit.
• Don’t be late with payments.
• Don’t make a large purchase.
• Don’t be late with documents.
• Try not to change jobs.
Following these tips can ease you down the road toward a smooth
closing.

114. Weichert Financial
Carlos Alberto Machado
Gold Service Manager
cmachado@weichertfinancial.com
908-307-8317
Princeton Office
NMLS#4384

115. I look forward to meeting with you
Carlos A. Machado
Gold Services Manager
Princeton Office
NMLS #4384
Weichert Financial Services
908-307-8317
cmachado@weichertfinancial.com

116. 2017
Top Seller Negotiating Strategies…
1.Stage it (Pretty it Up)
2.Fix it First (Pre Inspect)
3.Price it Right (Set the Market)
4.Stay in Control

117. All Negotiations, including real estate, are all about negotiation and control.
Home Pricing
Who is in control?

118. 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.
What is Home Staging?

119. Clean & In Good Repair

120. “Wow…. I could live here!”

121. Buyers Only Know What They See …

122. 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!”

123. All Negotiations, including real estate, are all about negotiation and control.
Home Staging
Who is in control?

124. The Impact of Inspection & Repairs
on the Salability of Your Home..…
A Certified Home Inspector’s report will review:
Condition of the home's HVAC, Plumbing and Electrical Systems
The roof, attic, and visible insulation
Walls, ceilings, floors, windows and doors
The foundation, basement, and visible structure
It will also advise if any potential environmental hazards were observed

125. • Why do a Pre-Inspection?
– Fix/ Disclose/ Permit EVERYTHING before going on
market
– Removes buyer objections/ fears
– Reduce the risk of going ‘off market’ for a buyer
who ends up killing the deal
– You stay in control
Pre-Inspection

126. All Negotiations, including real estate, are all about negotiation and control.
Pre - Inspection
Who is in control?

127. The Impact of Your Initial List Price

128. • Promotes a sense of urgency among buyers & agents
(fear of loss)
• Generates interest and showings
• Sets the stage for multiple offers in the first 30 days
• Offers tend to be higher in relation to list price
• Results in highest price in shortest time
Effects of “Right” Pricing

129. • Buyer excitement diminishes quickly
• Extends time house is on the market
• Results in price reductions
• May attract “bargain hunters” and discounted offers
• Results in a lower selling price
Effects of Over Pricing:

130. Negotiations are about leverage, use the listing
price as yours…
PTA suggested Market Value of
$840,000
Ab Rate of 12.5 months
Listed at $799,500
1 day on the market
4 Offers
Bidding wrapping up today
The seller had control
West Windsor

131. Negotiations are about leverage, use the listing
price as yours…
5 Lost Trail: listed by another Broker on
7/31/16 for $695,000. Decrease price
on 9/24/16 to $650,000. Listing with
Broker expired on 2/28/2017 after being
on the market for 216 days.
Wct listed their property on 4/7/2017 at
$680,000. Used Professional
photography & 3D Matterport,
recommended contractor work to be
done, used professional staging,
Property went to pending on 4-22-
17------closed on 5-19-17 at $10,000
over listed price $690,000 after
receiving multiple offers.
Lawrence

132. Princeton
36 Mercer St.
The Price Trend Analysis suggested Market Value of $1.250
We recommended listing at $1.1 million

133. Princeton
36 Mercer St.
• Pre-inspection
• Staged
• Right Pricing
Sold for $1.350 million, cash in 7 days. No contingencies.

134. Hamilton
1715 Silver Ct.
Hamilton N J 08690
2 Bedroom 1.5 Baths
Presented at $115,000
Listed 6/5/17---
1 open house 6/10/17 received multiple offers starting
6/11/17 at full asking and then at over asking contract
signed on 6/14/17---Closing date of 7/17/17

135. Hamilton
Two other units on the
market for sale in the
same community-1 at
$122,000 was on
originally at $129,000
so far for 166 days.
(listing broker placed this one photo
on the Internet)

136. Hamilton
---the other at
$112,900 so far on for
66 days
(listing broker placed
one photo on the MLS)

137. Negotiations are about leverage, use the listing
price as yours…
Listed at $544,900
Reduced to $535,000
Reduced to $509,000
Reduced to $499,000
96 Days on Market
1 Offer
Sold for $490,000
The buyer had control

138. Fall Thru Analysis ~ Past 90 Days
Reason for Fall Thru Total # Fall Thrus % of Total Fall Thrus
Home Inspection 659 39.2%
Buyer Financing 416 24.8%
Buyer Changed Mind 185 11.0%
Attorney Review 72 4.3%
Appraisal 71 4.2%
Contingency of buyer/seller house purchase 44 2.6%
Short Sale Declined 39 2.3%
Another offer (buyer) came in 30 1.8%
Seller Changed Mind 23 1.4%
HOA Docs or Board not approved 21 1.3%
Buyer/Seller Passed Away or illness 14 0.8%
Foreclosure or Bankruptcy 14 0.8%
Title Issues 13 0.8%
Deal Came Back together & Closed or Set to Close 11 0.7%
Other 36 2.1%
Unknown 31 1.8%
Total 1679* 100%

139. Weichert Family of Companies
What will a real estate
company do for me?

140. Source: 2012 NAR Profile of Home Buyers and Sellers
This is
where
you win
or lose
the sale

141. Making Your Purchase as
Smooth 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.

142. Thank you
for your time today

143. Resource and Website ListResource and Website List
www.trendmls.com
www.realtor.org
www.njar.com
www.Otteau.com
www.Pre-listing-inspection.com
www.Housemaster.com
www.Stagingshoppingcenter.com
www.realtytrac.com
www.njar.com/10k
www.keepingcurrentmatters.com
https://education.state.nj.us/pr/