Princeton Real Estate Market Presentation June 2017

1. Princeton AreaPrinceton Area Real Estate Market UpdateReal Estate Market Update June 2017June 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 UpdateReal Estate Market Update Agenda

4. Real Estate Market UpdateReal 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. Source: 5 Real Estate Trends That Will Dominate 2016. Realtormag.realtor.org. • Rental costs are skyrocketing, and the costs are likely to only go up in the new year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. • YTD in Princeton landlords have retained nearly 100% of their asking price. Rents go up even higher

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

12. 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. Icando myownlocal researchonline… You’re probably thinking….

21. The boom….The Local MarketThe Local Picture

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

23. 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

24. 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

25. 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

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

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

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

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

31. Open House Report

32. Source: NJAR 10K Research Data

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

42. Week of 6/15 Year over Year Inventory 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 Princeton 181 160 203 190 224 221 187 162 139 123 134 WW 149 118 151 135 165 140 135 80 100 101 104 Lawrence 201 221 206 242 239 234 199 157 167 175 145 East Windsor 196 204 195 195 235 236 191 142 140 131 90 Ewing 251 258 217 258 305 306 265 200 206 226 149 Hamilton 486 517 609 569 606 671 548 431 494 487 376 Hopewell 193 161 170 183 173 158 164 156 191 183 167 Cranbury 20 38 31 29 27 27 19 23 21 28 28 Plainsboro 138 119 88 77 117 118 90 57 62 65 61 SB 241 223 230 216 305 301 236 196 166 198 171 Montgomer y 180 150 157 158 182 171 156 165 120 124 137

43. Week of 6/15 Year over Year Inventory 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 Princeton 181 160 203 190 224 221 187 162 139 123 134 WW 149 118 151 135 165 140 135 80 100 101 104 Lawrence 201 221 206 242 239 234 199 157 167 175 145 East Windsor 196 204 195 195 235 236 191 142 140 131 90 Ewing 251 258 217 258 305 306 265 200 206 226 149 Hamilton 486 517 609 569 606 671 548 431 494 487 376 Hopewell 193 161 170 183 173 158 164 156 191 183 167 Cranbury 20 38 31 29 27 27 19 23 21 28 28 Plainsboro 138 119 88 77 117 118 90 57 62 65 61 SB 241 223 230 216 305 301 236 196 166 198 171 Montgomer y 180 150 157 158 182 171 156 165 120 124 137

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

65. Princeton Market Activity Source: TrendMLS

75. 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

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

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

78. Be Strategic Think Hyper Local

79. Stats for Hamilton Township May 16 – May 31 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 377 85 4.43 124 39 111 29.44 101 Single Family 297 73 4.06 96 23 92 30.97 85 Condo/ Townhouse 66 7 9.42 22 15 17 25.75 12 Adult Community 14 5 2.8 6 1 2 14.28 4 Hamilton $0-125 54* (10) 14 3.8 (3.1) 16 2 12 22% 23

80. 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 26 4.8 50 24 40 31.5 37 Single Family 104 17 6.1 35 18 35 33.7 23 Condo/ Townhouse 16 7 2.3 12 5 2 12.5 12 Adult Community 7 2 3.5 3 1 3 42.9 2 SF 450-750 46* (10) 10 4.6 (3.6) 10 8 9 19% 21 6/1/17

81. Plainsboro 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 66 20 3 32 12 26 40 21 Single Family 33 5 7 13 8 13 39 6 Condo/ Townhouse 26 15 2 18 3 10 38 15 Adult Community 7 0 99 1 1 3 43 0

82. South Brunswick 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 188 39 5 59 20 52 28 43 Single Family 124 22 7 39 17 32 26 23 Condo/ Townhouse 45 16 3 16 0 17 38 17 Adult Community 19 1 19 4 3 3 16 3

83. Lawrence 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 34 5 49 15 82 51% 28 Single Family 113 19 6 32 13 52 46% 16 Condo/ Townhouse 44 13 3 16 3 29 66% 11 Adult Community 4 2 2 1 -1 1 25% 1 Lawrence 800+ 17 1 17 3 2 4 23% 0

84. Robbinsville Market Activity 6-1-2017 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 26 4.4 38 12 19 16.5% 19 Single Family 60 14 4.3 20 6 6 10.0% 7 Condo/ Townhouse 51 12 4.3 18 6 13 25.5% 12 Adult Community 4 0 99 0 0 0 0 0

85. 2017 Top Seller Negotiating Strategies… 1.Stage it (Pretty it Up) 2.Fix it First 3.Price it Right 4.Stay in Control

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

87. 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?

88. Clean & In Good Repair

89. “Wow…. I could live here!”

90. Buyers Only Know What They See …

91. 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!”

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

93. 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

94. • 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

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

96. The Impact of Your Initial List Price

97. • 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

98. • 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:

99. Negotiations are about leverage, use the listing price as yours… PTA suggested Market Value of $780,000 Listed at $769,000 8 Days on Market 11 Offers Sold for $805,000 The seller had control West Windsor

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

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

102. 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

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

104. 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

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

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

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

108. 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)

109. 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)

110. Negotiating Your Purchase

111. 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.

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

113. 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

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

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

116. 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%

117. MakingMaking Your Purchase asPurchase 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.

118. Thank you for your time today

119. 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/