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Weichert, Princeton January Market Recap & Forecast

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Want your Phd in Princeton area real estate? Have a look at some of the most detailed data on the Mercer, Middlesex and Somerset County real estate markets. Whether you are buying or selling this will give you insight into both.

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Weichert, Princeton January Market Recap & Forecast

  1. 1. Princeton Area Real Estate Market Update January 2018 Josh Wilton Managing Broker Weichert Realtors Princeton Office
  2. 2. Agenda Review of the New Tax Law The Market, State, County and Local Process and Strategies for Buyers and Sellers Real Estate Market Update Agenda
  3. 3. Dec 22, 2017 Tax Cuts and Jobs Act (TCJA) into law.  A Realtors Guide to U.S. Tax Reform
  4. 4. Your should continue to get tax advice from their accountant or financial advisor, who can explain the entire new tax code and how it will impact their tax return and real estate position. A Realtors Guide to U.S. Tax Reform
  5. 5. 1. Changing the requirements for the exclusion of gain on the sale of a principal residence. 2. Reduction of the limit of the Mortgage Interest Deduction (MID). 3. Elimination of the State and Local Tax deduction (SALT), which includes property taxes. Three Major Proposed Changes
  6. 6. Exclusion of Gain on Sale of Primary Residence Although the House and Senate were aligned throughout the tax reform process, in the approved bill, there are no modifications to the rules under Internal Revenue Code Section 121 governing how the calculation of the gain on the sale of a primary residence is calculated.
  7. 7. As such, the current rules would remain in effect, whereby an individual must live in and own the property for two out of the previous five years prior to sale in order to qualify for the full exclusion of the capital gain ($250,000/single; $500,000/married). Exclusion of Gain on Sale of Primary Residence
  8. 8. Original Proposal: The elimination of the state and local tax deduction (which includes property taxes). The New Tax Code: Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes. Impact on the Market: Most experts agree that higher taxed regions will be impacted as those homeowners now have a cap on their deductions. State and Local Taxes (SALT)
  9. 9. The deduction limit for mortgage interest was reduced to $750,000 going forward. Mortgages taken prior to Dec. 15, 2017, can still claim mortgage interest deductions on up to $1 million in debt. It is worth noting that the law will revert back to a limit of $1 million for all mortgages beginning in tax Notes About Mortgage Interest Deduction (MID)
  10. 10. As mentioned previously, state and local property, sales and income taxes are subject to a combined cap of $10,000 for single or married filers. This means that individuals living in high-tax states like California, New Jersey and New York could see a significant reduction to their itemized deductions. Likewise, individuals living in low- or no-tax states like Texas or Florida may see little or no impact Notes About State and Local Taxes (SALT)
  11. 11. •The new tax brackets are 10%, 12%, 22%, 24%, 32%, 35% and 37%. •The highest tax rate was reduced from 39.6% to 37%. •For U.S. expats, outbounds tax equalized to the U.S. will require a recalculation of their hypothetical tax. • Inbounds and permanent relocations into the U.S. will generally experience an overall reduction in U.S. tax cost based on the lower tax brackets. • Individual circumstances need to be considered. Overall Reduction in Individual Income Tax Rate
  12. 12. Comparison of Tax Brackets
  13. 13. • IRS Publication 121, Exclusion of Gain from Sale of Principal Residence • Tax Cuts and Jobs Act Bill Released Dec. 15, 2017 • Government Affairs Update, 12/18/17: Tax Reform Set for Enactment, Worldwide ERC Sources
  14. 14. Real Estate Market Update
  15. 15. Economic factors 2010 to Current Comparisons Now 2013 2010 Gas per gallon (NY area) $2.45 $3.81 $2.73 Stock market (Dow Jones) 25754.30 14,776 11,578 Avg. 30-year fixed rate 4.1%* 4.43% 4.71% Consumer confidence rating 122.1 76.2 63.4 Household income $59,039** $53,046 $49,276 Unemployment rate 4.1% 7.4% 9.3% Foreclosures 848,609 1,369 ,405 2,871,891
  16. 16. Market Update Source: NAR Economic & Housing Outlook November 3, 2017; Lawrence Yun
  17. 17. Market Update Source: NAR Economic & Housing Outlook November 3, 2017; Lawrence Yun
  18. 18. Real estate experts and economists agree sellers will continue to hold the cards  With inventory at historically low levels and demand for housing skyrocketing in most markets, economic analysts and real estate experts believe 2018 will be the Year of the Seller.  Analysts forecasted yet another year in which a scarcity of homes for sale will allow sellers to keep prices high, especially as a growing segment of 1st time millennial buyers take the homeownership plunge.  The inventory drought will continue to be enough of a factor to keep supplies below normal. Most markets will continue to be sellers’ markets, especially for entry-level homes, hotter markets and markets where prices are high and new construction is costly Will 2018 be a Buyer’s Market or a Seller’s Market Market Update Source: Inman.com 12/26/17
  19. 19. Listing Inventory • Was a BIG deal in 2016 • BIGGER deal in 2017 • Even BIGGER Deal in 2018 • Existing inventory levels down 11% over a year (nationally)
  20. 20. First-Time Homebuyers make up Majority of 2017 (2018) Home buyers* • 52% First Time Homebuyers • 61% Millennial Buyers (35 years and under)
  21. 21. The boom….The New Jersey MarketThe Statewide Picture
  22. 22. Listings Closed Sales
  23. 23. The Local Markets 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
  24. 24. 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
  25. 25. The boom….The Local MarketThe Local Picture
  26. 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. 27. http://lwd.dol.state.nj.us/labor/lpa/content/njsdc/2013WU%20PopLFProj2030.pdf
  28. 28. Mercer/ Middlesex County Real Estate Market Drivers 1. Trains/Schools/Affordability 2. Schools/Trains/Affordability 3. Convenience/Town Center/Lifestyle 4. Affordability 5. Schools 6. Trains
  29. 29. Plainsboro Real Estate Market Drivers 1. Trains/Schools/Affordability 2. Schools/Trains/Affordability 3. Convenience/Town Center/Lifestyle 4. Affordability 5. Schools 6. Trains
  30. 30. Source: Middlesex MLS
  31. 31. Source: NJAR 10K Research Data Plainsboro, Year over Year
  32. 32. Plainsboro Market Activity Single Family Homes Average Sale Price Source: Middlesex MLS
  33. 33. Plainsboro Market Activity Single Family Homes Average Days on Market Source: Middlesex MLS
  34. 34. Plainsboro Market Activity Condos & Townhouses Average Sale Price Source: Middlesex MLS
  35. 35. Plainsboro Market Activity Condos & Townhouses Average Days on Market Source: Middlesex MLS
  36. 36. Plainsboro Market Activity Walker Gordon Farm Average Sale Price Source: Middlesex MLS
  37. 37. Plainsboro Market Activity Walker Gordon Farm Average Days on Market Source: Middlesex MLS
  38. 38. Plainsboro Market Activity Princeton Landing Condo/Townhouse Average Sale Price Source: Middlesex MLS
  39. 39. Plainsboro Market Activity Princeton Landing Single Family Average Sales Price Source: Middlesex MLS
  40. 40. Source: NJAR 10K Research Data West Windsor Train Schools Lifestyle Affordability
  41. 41. Source: Middlesex MLS
  42. 42. Source: NJAR 10K Research Data Source: NJAR 10K Research WW, Year over Year
  43. 43. West Windsor Market Activity Single Family Homes Average Sale Price Source: Trend MLS
  44. 44. West Windsor Market Activity Single Family Homes Average Days on Market 2012 2013 2014 2015 2016 2017 Source: Trend MLS
  45. 45. West Windsor Market Activity Single Family Homes List to Sale Price Ratio Source: Trend MLS
  46. 46. West Windsor Market Activity Condos & Townhouses Average Sale Price 2012 2013 2014 2015 2016 2017 Source: Trend MLS
  47. 47. West Windsor Market Activity Condos & Townhouses Average Days on Market Source: Trend MLS 2012 2013 2014 2015 20172015
  48. 48. West Windsor Market Activity Condos & Townhouses List to Sale Price Ratio 2012 2013 2014 2015 2016 2017 Source: Trend MLS
  49. 49. West Windsor Market Activity Condo/ Townhouse– Canal Pointe Average Sale Price 2012 2013 2014 2015 2016 2017 Source: Trend MLS
  50. 50. West Windsor Market Activity Condo/ Townhouse– Canal Pointe Days on Market 201 2 201 3 201 4 2015 2016 2017 Source: Trend MLS
  51. 51. West Windsor Market Activity Condo/ Townhouse– Canal Pointe List to Sale Price Ratio 2012 2013 2014 2015 2016 2017 Source: Trend MLS
  52. 52. West Windsor Market Activity Canal Pointe – Single Family Average Sale Price 2012 2013 2014 2015 2016 2017 Source: Trend MLS
  53. 53. West Windsor Market Activity Canal Pointe – Single Family Average Days on Market Source: Trend MLS
  54. 54. West Windsor Market Activity Canal Pointe – Single Family List to Sale Price Ratio Source: Trend MLS
  55. 55. West Windsor Market Activity Single Family – Estates @ Princeton Jct Average Sale Price Source: Trend MLS
  56. 56. West Windsor Market Activity Single Family – Estates @ Princeton Jct Average Days on Market Source: Trend MLS
  57. 57. West Windsor Market Activity Single Family – Estates @ Princeton Jct List to Sale Price Ratio Source: Trend MLS
  58. 58. West Windsor Market Activity Single Family – 0-$650,000 Average Sales Price Source: Trend MLS
  59. 59. East Windsor Train Schools Lifestyle Affordability
  60. 60. Source: NJAR 10K Research DataSource: NJAR 10K Research EW, Year over Year
  61. 61. East Windsor SF Average Sale Price Source: Trend MLS 2012 2013 2014 2015 2016 2017
  62. 62. East Windsor SF Average Days on Market Source: Trend MLS 2012 2013 2014 2015 2016 2017
  63. 63. East Windsor SF List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 2015 2016 2017
  64. 64. East Windsor CT Average Sales Price Source: Trend MLS 2012 2013 2014 2015 2016 2017
  65. 65. East Windsor CT Average Days on Market Source: Trend MLS 2012 2013 2014 2015 2016 2017
  66. 66. East Windsor CT List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 2015 2016 2017
  67. 67. East Windsor CT Single Family 0-$399,999 Average Sales Price Source: Trend MLS 2012 2013 2014 2015 2016 2017
  68. 68. East Windsor CT 0-$399 Average Days on Market Source: Trend MLS 2012 2013 2014 2015 2016 2017
  69. 69. East Windsor CT 0-$399 List to Sales Price Ratio Source: Trend MLS 2012 2013 2014 2015 2016 2017
  70. 70. East Windsor CT $400-$699 Avg Sales Price Source: Trend MLS 2012 2013 2014 2015 2016 2017
  71. 71. East Windsor CT $400-$699 Days on Market Source: Trend MLS 2012 2013 2014 2015 2016 2017
  72. 72. East Windsor CT $400-$699 List to Sales Price Ratio Source: Trend MLS 2012 2013 2014 2015 2016 2017
  73. 73. Source: NJAR 10K Research Data Lawrenceville Train Schools Lifestyle Affordability
  74. 74. Source: https://education.state.nj.us/pr/
  75. 75. Source: NJAR 10K Research Data Law, Year over Year
  76. 76. LawrencevilleMarket Activity SingleFamily Homes AverageSalePrice 2012 2013 2015 Source: TrendMLS 2014 2016 2017
  77. 77. LawrencevilleMarket Activity SingleFamily Homes AverageDayson Market Source: TrendMLS 2012 2013 20152014 2016 2017
  78. 78. LawrencevilleMarket Activity SingleFamily Homes List to SalePriceRatio Source: TrendMLS 2012 2013 20152014 2016 2017
  79. 79. LawrencevilleMarket Activity Condos& Townhouses AverageSalePrice Source: TrendMLS 2012 2013 20152014 2016 2017
  80. 80. LawrencevilleMarket Activity Condos& Townhouses AverageDayson Market Source: TrendMLS 2012 2013 20152014 2016 2017
  81. 81. LawrencevilleMarket Activity Condos& Townhouses List to SalePriceRatio Source: TrendMLS 2012 2013 20152014 2016 2017
  82. 82. LawrencevilleMarket Activity SingleFamily $500,000+ AverageSalePrice Source: TrendMLS
  83. 83. LawrencevilleMarket Activity SingleFamily $500,000+ Dayson Market Source: TrendMLS 2012 2013 20152014 2016 2017
  84. 84. LawrencevilleMarket Activity SingleFamily $500,000+ List to SalePriceRatio Source: TrendMLS 2012 2013 20152014 2016 2017
  85. 85. LawrencevilleMarket Activity Adult Communities AverageSalePrice Source: TrendMLS
  86. 86. LawrencevilleMarket Activity Adult Communities AverageDOM Source: TrendMLS
  87. 87. LawrencevilleMarket Activity Adult Communities List to SalePriceRatio Source: TrendMLS
  88. 88. LawrencevilleMarket Activity Yorkshire AverageSalesPrice Source: TrendMLS
  89. 89. LawrencevilleMarket Activity Yorkshire AverageDOM Source: TrendMLS
  90. 90. LawrencevilleMarket Activity EaglesChase AverageSalesPrice Source: TrendMLS
  91. 91. LawrencevilleMarket Activity EaglesChase AverageDOM Source: TrendMLS
  92. 92. LawrencevilleMarket Activity EaglesChase List to SalePriceRatio Source: TrendMLS
  93. 93. Source: NJAR 10K Research DataSource: NJAR 10K Research Princeton Train Schools Lifestyle Affordability
  94. 94. Source: NJAR 10K Research Data Pton, Year over Year
  95. 95. Princeton Market Activity Single Family Average Sale Price Source: TrendMLS
  96. 96. Princeton Market Activity Single Family Average Days on Market Source: TrendMLS
  97. 97. Princeton Market Activity Single Family List to Sale Price Ratio Source: TrendMLS
  98. 98. Princeton Condo/ Townhouse Average Sales Price Source: TrendMLS
  99. 99. Princeton Condo/ Townhouses Average Days on Market Source: TrendMLS
  100. 100. Princeton Condo/Townhouse List to Sale Price Ratio Source: TrendMLS
  101. 101. Princeton Single Family Under $1 million Average Sales Price Source: TrendMLS
  102. 102. Princeton Single Family Homes Under $1 million Average Days on Market Source: TrendMLS
  103. 103. Princeton Single Family Under $1 million List to Sales Price Ratio Source: TrendMLS
  104. 104. Princeton Single Family Littlebrook Neighborhood Average Sold Price Source: TrendMLS
  105. 105. Princeton Single Family Littlebrook Neighborhood List to Sale Price Ratio Source: TrendMLS
  106. 106. Princeton Single Family Riverside Neighborhood Average Sales Price Source: TrendMLS 2012 2013 2014 2015 2016 2017
  107. 107. Princeton Single Family Riverside Neighborhood Average Days on Market Source: TrendMLS 2012 2013 2014 2015 2016 2017
  108. 108. Princeton Single Family Riverside Neighborhood List to Sale Price Ratio Source: TrendMLS
  109. 109. Princeton Single Family Witherspoon-Jackson Historic District Average Sales Price Source: TrendMLS
  110. 110. Princeton Single Family Washington Oaks Condo Townhouse List to Sales Price Ratio Source: TrendMLS
  111. 111. Princeton Single Family Washington Oaks Condo Townhouse List to Sales Price Ratio Source: TrendMLS
  112. 112. Source: NJAR 10K Research DataSource: NJAR 10K Research Ewing Train Schools Lifestyle Affordability
  113. 113. https://www.niche.com/k12/d/ewing-township-public-schools-nj/#report-card Source: NJAR 10K Research
  114. 114. Source: NJAR 10K Research Data Ewing, Year over Year
  115. 115. Ewing Market Activity SingleFamily Homes AverageSalePrice Source: TrendMLS 2012 2013 2014 2015 2016 2017
  116. 116. Ewing Market Activity SingleFamily Homes AverageDayson Market Source: TrendMLS
  117. 117. Ewing Market Activity SingleFamily Homes List to SalePriceRatio Source: TrendMLS
  118. 118. Ewing Market Activity Condos& Townhouses AverageSalePrice Source: TrendMLS
  119. 119. Ewing Market Activity Condos& Townhouses AverageDayson Market Source: TrendMLS
  120. 120. Ewing Market Activity Condos& Townhouses List to SalePriceRatio Source: TrendMLS
  121. 121. Hamilton Train Schools Lifestyle Affordability
  122. 122. Source: NJAR 10K Research
  123. 123. Source: NJAR 10K Research Data Hamilton, Year over Year
  124. 124. Hamilton Market Activity SingleFamily Homes AverageSalePrice Source: TrendMLS
  125. 125. Hamilton Market Activity SingleFamily Homes AverageDayson Market Source: TrendMLS
  126. 126. Hamilton Market Activity SingleFamily Homes List to SalePriceRatio Source: TrendMLS 2012 2013 20152014 2016 2017
  127. 127. Hamilton Market Activity Condos& Townhouses AverageSalePrice Source: TrendMLS 2012 2013 2015 201720162014
  128. 128. Hamilton Market Activity Condos& Townhouses AverageDayson Market Source: TrendMLS 2012 2013 2014 2015 2016 2017
  129. 129. Hamilton Market Activity Condos& Townhouses List to SalePriceRatio Source: TrendMLS 2012 2013 2014 2015 2016 2017
  130. 130. https://www.niche.com/k12/d/hopewell-valley-regional-school-district-nj/ Hopewell
  131. 131. Source: NJAR 10K Research Data Hopewell, Year over Year, Jan – May
  132. 132. Hopewell Twp Single Family Average Sale Price Source: Trend MLS 2012 2013 2014 20162015 2017
  133. 133. Hopewell Twp Single Family Average Days on Market Source: Trend MLS 2012 2013 2014 20162015 2017
  134. 134. Hopewell Twp Single Family List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 20162015 2017
  135. 135. Hopewell Twp Condo/Townhouse Average Sale Price Source: Trend MLS 2012 2013 2014 20162015 2017
  136. 136. Hopewell Twp. Condo/Townhouse Average Days on Market Source: Trend MLS 2012 2013 2014 20162015 2017
  137. 137. Hopewell Twp Condo/Townhouse List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 20162015 2017
  138. 138. Hopewell Twp Brandon Farms All Styles Average Sale Price Source: Trend MLS 2012 2013 2014 20162015 2017
  139. 139. Hopewell Twp Brandon Farms All Styles Average Days on Market Source: Trend MLS 2012 2013 2014 20162015 2017
  140. 140. Hopewell Twp Brandon Farms All Styles List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 20162015 2017
  141. 141. Montgomery Twp, NJ Real Estate Trends
  142. 142. Montgomery Woods Average Sales Price Source: Garden State MLS
  143. 143. Montgomery Woods Days on Market Source: Garden State MLS
  144. 144. Montgomery Woods Market Activity List to Sale Price Ratio Source: Garden State MLS
  145. 145. Montgomery Hills Market Activity Average Sale Price Source: Garden State MLS
  146. 146. Montgomery Hills Market Activity Average Days on Market Source: Garden State MLS
  147. 147. Montgomery Hills Market Activity List to Sale Price Ratio Source: Garden State MLS
  148. 148. Princeton Village Market Activity Average Sale Price Source: Garden State MLS
  149. 149. Princeton Village Market Activity Average Days On Market Source: Garden State MLS
  150. 150. Princeton Village Market Activity List to Sale Price Ratio Source: Garden State MLS
  151. 151. Montgomery Twp Market Activity Cherry Valley Average Sales Price Source: Garden State MLS
  152. 152. Montgomery Twp Market Activity Cherry Valley Average Days on Market Source: Garden State MLS
  153. 153. Montgomery Twp Market Activity Cherry Valley List to Sale Price Ratio Source: Garden State MLS
  154. 154. Prepared by: Joshua D Wilton Broker/Sales Associate North Brunswick Real Estate Trends 2012-2017
  155. 155. Prepared by: Joshua D Wilton Broker/Sales Associate
  156. 156. North Brunswick Market Activity Single Family Homes Average Sale Price 2012 2013 2014 2015 Source: Middlesex MLS 2016 2017
  157. 157. North Brunswick Market Activity Single Family Homes Average Days on Market 2012 2013 2014 2015 Source: Middlesex MLS 2016 2017
  158. 158. North Brunswick Market Activity CT Average Sales Price 2012 2013 2014 2015 Source: Middlesex MLS 2016 2017
  159. 159. North Brunswick Market Activity Condos & Townhouses Days on Market 2012 2013 2014 2015 Source: Middlesex MLS 2016 2017
  160. 160. Strategies for Buying and Selling in Today’s Market
  161. 161. When’s the best time to Buy/Sell? Source: Trend MLS
  162. 162. Princeton All Styles Style Active Listings Under Contract in 30 Days Absorption Rate 0-700 9 3 3 701-999 10 5 2 1000-1499 15 1 15 1499-1999 14 1 14
  163. 163. Lawrence All Styles Style Active Listings Under Contract in 30 Days Absorption Rate 0-500 83 12 6.9 Single Family 500-700 13 1 13 Single Family 700-999 4 0 99 Single Family $1.0+ 8 0 99
  164. 164. Princeton Single Family $1-1.5 million Average Sales Price Open House Traffic Source: TrendMLS
  165. 165. West Windsor SF Market Activity Style Active Listings Pending in last 30 Days Absorption Rate SF 0-650 13 6 2.1 SF 650-799 5 3 1.6 SF 800-999 3 0 99 $1.0+ 2 0 99
  166. 166. Open House Report
  167. 167. Hopewell SF Market Activity Style Active Listings Pending in last 30 Days Absorption Rate SF 0-650 41 4 10.2 SF 650-799 14 1 14 SF 800-999 17 0 99 $1.0+ 15 0 99
  168. 168. Financial Services Carlos A. Machado Gold Services Manager Princeton Office NMLS #4384 Weichert Financial Services 908-307-8317 cmachado@weichertfinancial.com
  169. 169. •For Sellers: To make sure they have all the information they need to choose an offer •For Buyers: Buying Strategy, Buying Power & Documentation My Job…
  170. 170. 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
  171. 171. 2018 Top Buyer Negotiating Strategies… 1.Get out now, before the Spring springs, 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)
  172. 172. 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
  173. 173. Weichert Financial Carlos Alberto Machado Gold Service Manager cmachado@weichertfinancial.com 908-307-8317 Princeton Office NMLS#4384
  174. 174. 2018 Top Seller Strategies… 1.Stage it (Pretty it Up) 2.Fix it First (Pre Inspect) 3.Price it Right (Set the Market) 4.Stay in Control
  175. 175. All Negotiations, including real estate, are all about negotiation and control. Home Pricing Who is in control?
  176. 176. 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?
  177. 177. Clean & In Good Repair
  178. 178. “Wow…. I could live here!”
  179. 179. Buyers Only Know What They See …
  180. 180. Buyers Only Know What They See …
  181. 181. … Not The Way It Is Going To Be.
  182. 182. 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!”
  183. 183. 22 Dogwood Princeton Non Staged Suggested Price: $1.009m Staged Suggested Price: $1.323 Staged ($20k) Sold: $1.326/ 12 days
  184. 184. All Negotiations, including real estate, are all about negotiation and control. Home Staging Who is in control?
  185. 185. Fall Thru Analysis 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%
  186. 186. 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
  187. 187. • 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
  188. 188. All Negotiations, including real estate, are all about negotiation and control. Pre - Inspection Who is in control?
  189. 189. • 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
  190. 190. • 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:
  191. 191. 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
  192. 192. 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
  193. 193. Princeton 36 Mercer St. The Price Trend Analysis suggested Market Value of $1.250 We recommended listing at $1.1 million
  194. 194. Princeton 36 Mercer St. • Pre-inspection • Staged • Right Pricing Sold for $1.350 million, cash in 7 days. No contingencies.
  195. 195. 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
  196. 196. 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)
  197. 197. Hamilton ---the other at $112,900 so far on for 66 days (listing broker placed one photo on the MLS)
  198. 198. 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
  199. 199. Weichert Family of Companies What will a real estate company do for me?
  200. 200. 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.
  201. 201. Thank You.
  202. 202. 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/

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