Home Buying and Selling 101: Steps New Jersey Residents Should Take to Make Sound Real Estate Decisions
Edison, NJ – September 2, 2008 – (RealEstateRama) — New Jersey residents who may be hesitant about buying or selling a home now have several ways to educate themselves about real estate opportunities and local market conditions in the Garden State.“In these challenging times, home buyers and sellers are playing a more active role and are keeping up to date with real estate market conditions in their respective towns and cities,” said New Jersey Association of REALTORS® (NJAR®) Executive Vice President Jarrod C. Grasso, RCE. “By being prepared financially and knowing what to expect, residents can take advantage of the many diverse opportunities that New Jersey continues to offer.”
Here are some of the best ways that buyers and sellers can educate and prepare themselves for a successful purchase or sale:
Understand your credit score. Mortgage lenders will take credit scores into account when assessing a loan application. The best interest rates and terms are offered to those with solid credit histories and scores. The most common credit score is the FICO score created by the Fair Isaac Corporation. Credit scores and reports can be checked through the federally-regulated source www.ftc.gov/credit.
Know your mortgage options. REALTORS® routinely suggest that buyers start the mortgage process well before bidding on a home. Mortgage rates still remain near historic lows so buyers should take time to shop around with different lenders to find the one that’s right for them. The terms surrounding the mortgage loan are equally as important as the interest rate. Buyers should meet with a loan officer to verify their income, review outstanding debts, run a credit check and obtain a preapproval letter that states the mortgage amount for which the buyer can qualify. Another important step is figuring out how much of a down payment can be afforded. Many lenders now have specific down payment requirements, although down payment requirements are significantly lower for FHA-insured mortgages and those obtained through the New Jersey Housing and Mortgage Finance Agency. The online version of the NJAR® Housing Opportunity Resource Guide lists state, federal and private sector housing programs, many of which offer down payment or other mortgage assistance.
For first-time buyers, as part of the Housing and Economic Recovery Act signed into law on July 30, 2008, Congress has created a new, temporary tax credit to provide an incentive for home buyers. The $7,500 credit will be available for the purchase of principal residences on or after April 9, 2008 and before July 1, 2009. More information about the tax credit can be found at www.njar.com/consumers/housingbill.htmll.
Explore local market conditions and opportunities. There are a variety of ways for buyers and sellers to find out more about their local markets and for a growing number of residents, the Internet is the first place to look. For 32 percent of buyers the first step in the home buying process was to look online for properties for sale, according to the 2007 Profile of New Jersey Home Buyers and Sellers. A new interactive map of the state of New Jersey can now also be accessed at www.REALstoryNJ.com, which provides average home sales prices, median household income, percentage of high school graduates and bachelor’s degrees, and other key demographics.
Additionally, by working with a REALTOR®, buyers and sellers can see comparable homes for sale, track sale prices in the desired neighborhood and provide insight on many other aspects of a real estate purchase.
For home sellers, it’s important to consider that many New Jersey homes have generally maintained their values, which relates directly to local sale prices. National news about tumbling residential real estate prices does not present an accurate picture of New Jersey’s local markets. The national seven year home appreciation rate is 37.8 percent, while New Jersey’s is more than double that amount at 80.4 percent. Sale prices are also a product of supply and demand. If a seller lives in a community with an expanding job base, a growing population and a limited housing supply, it’s likely that prices will rise. REALTORS® are active in the local marketplace and can provide assistance with pricing, marketing, negotiation and closing.
Be realistic. The average length of time it takes to find the perfect home varies depending on buyer expectations and local markets. Similarly, the average length that a home stays on the market can vary depending on location and other local market forces. Sellers should work with their REALTOR® to price a property realistically and properly stage the home to increase marketability. Buyers should also make reasonable offers and keep an open mind as the housing market continually changes. Uneducated buyers can run the risk of alienating the seller by going too low on an offer or asking for too many concessions.
“It’s important for buyers and sellers to have trustworthy sources of information to go to when they are evaluating their real estate options,” said 2008 NJAR® President Drew S. Fishman. “With the expert guidance of their REALTOR®, many buyers and sellers are being proactive and are finding they are able to capitalize on the opportunities today’s market has to offer.”
NJAR® is encouraging New Jersey residents to Get the REAL StorySM on real estate in New Jersey with a public education campaign that features an informational website, and a newly-launched advertising campaign that also features real stories from recent buyers and sellers. For more information on the campaign, or simply to Get the REAL StorySM on real estate in New Jersey, visit www.REALstoryNJ.com.
The New Jersey Association of REALTORS®, with approximately 53,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®‘s membership is comprised of real estate professionals who subscribe to a strict code of ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
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For all media inquiries contact:
Danielle Wyckoff
Media & Public Affairs Coordinator
Phone: (732) 494-4730
Fax: (732) 494-4723
E-mail: dwyckoff (at) njar (dot) com
