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Weichert, Princeton Office
         July Market Update Seminar




Offers analysis of the Princeton
and Greater Princeton, NJ real
  estate markets & effective
   strategies to buy and sell.
Presented by:

      Joshua D Wilton
Broker/ Sales Representitive
     Weichert Realtors
       Princeton, NJ
      O 609-921-1900
Agenda



1. The Market
2. Strategies for Buying
3. Strategies for Selling
Agenda



1. The Market:
  - The National Economy…
Chrysler in Bankruptcy…GM
Next…Over 1000 Chrysler Dealers
        to be shuttered…




      Source: Autodata
Consumer Sentiment Not This Low
      Since Early 1980s
•   U.S. Economy: Consumer Sentiment Falls on Job Losses

•   By Shobhana Chandra and Bob Willis
•                        1966Q1 = 100
    July 10 (Bloomberg) -- Sentiment among U.S. consumers, whose spending is critical to
    an economic recovery, dropped in July after four months of gains as unemployment
    approached 10 percent.
•   The Reuters/University of Michigan preliminary index of consumer sentiment fell by
    more than forecast to 64.6 from 70.8 in the prior month. A separate report from the
    Commerce Department showed the trade deficit unexpectedly narrowed in May to the
  lowest level in almost a decade.
• Unemployment is rising even as economists predict an end to the recession in
    coming months. Consumers in the survey said they are less likely to buy cars or appliances,
    suggesting that the recovery may be weaker than anticipated.


                                                www.bloomberg.com


               Source: University of Michigan
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?
data_tool=latest_numbers&series_id=LASST34000003
                                            Thursday, January 1, 2009 
2009: Foreclosure Forecast
Within Company-Owned Footprint
 Over 1800 Foreclosure in Mercer
 County.
Less than 72 foreclosures in 08540 (3
townships).

Less than 27 foreclosures in West Windsor.

Majority of the 1800 are in Trenton.
                      - foreclosurepoint.com
Home Price Trends in Down Markets:
 Big Declines in Subprime Neighborhoods




Yellow – Conforming Loans Only (OFHEO)
Orange – All Loans including subprime and jumbo loans (Case-Shiller)
Red – Subprime Loans (NAR estimate based on subprime weight)
Where is the bottom of the market?
   “The effects (of foreclosures) are continued declining
prices….probably another 5-8%* to the bottom. As for the
   effect of foreclosure pricing, all of these problems are
causing home prices to go lower than is necessary from an
                   affordability perspective.

    That’s because everyone is now worrying about job
                       security.

As a result, the recovery will take place at a faster pace
                  once it gets started.”

         – Jeff Otteau (otteau.com- January 2009)
What about the Real Estate
       Markets….?
Pending Home Sales Record Fourth Straight Monthly Gain
Washington, July 01, 2009
Pending home sales show a sustained uptrend, rising for four
consecutive months with very favorable housing affordability
and a first-time buyer tax credit boosting activity, according to
the National Association of Realtors®.
The Pending Home Sales Index,1 a forward-looking indicator
based on contracts signed in May, increased 0.1 percent to
90.7 from an upwardly revised reading of 90.6 in April, and is
6.7 percent higher than May 2008 when it was 85.0. The last
time there were four consecutive monthly gains was in October
2004.
“Everything I am
 seeing tells me we
 have arrived at the
bottom of the market,
  specifically in the
     popular and
   affordable price
       ranges.”
               J. Weichert
                   6/2009
Recovery Has Begun

       49.8%
   Increase in Sales
  $300,000 & Under

  May YTD reported internal revenue units
Sales by Price Range
Positive Indicators Across the Board….1st
            time in 4 years….!




        Source: NAR
The Otteau Report comes from an objective third-party
appraisal company that provides regular market updates to
developers and consumers.
Where is the bottom of the market?
Where is the bottom of the market?
Share   Yesterday at 12:43pm
           Quick Take: Housing Starts and Bank Profits




                         Where is the bottom of the market?
                                   July 17, 2009
                         By Lawrence Yun, Chief Economist
                                  www.realtor.org

•Homebuilders are getting busier. Housing starts rose 4
 percent to 582,000 annualized unit pace in June, the
 highest six months and over 100,000 higher from the
 pace just two months ago. The construction of single-
 family homes advanced while that of multifamily units
declined. But even with the latest rise, new construction
 activity is still down by 46 percent from one year ago.
   Recent prior months data were modestly revised
                          upward.
Share   Yesterday at 12:43pm
           Quick Take: Housing Starts and Bank Profits




                         Where is the bottom of the market?
                                    July 17, 2009
                  By Lawrence Yun, Chief Economist
                            www.realtor.org
•At the bubblish peak in 2005, new home construction totaled 2.1
  million units. So the current activity is only about one-quarter of
 the peak level. Clearly unsustainable then, but the four straights
   years of housing starts decline has translated into over one
million job losses in the residential construction sector. The latest
      rise in building could arrest further job cuts in the sector.

    •Perhaps the worst is over. Home sales have been rising
  modestly in the past few months. The builders took our more
 housing permits, a good indicator of future housing starts. Still
inventory of existing homes remain elevated (nationally) and
        the builders will have difficult time competing….
Less New Construction in Mercer




Source: NAR, November 2008 Forecast
Richardson Commercial
The Local Inventory and Sales Patterns:




Source: NAR, November 2008 Forecast
07                             07 Active   08        08              08 Active
               Inventory 07 Pending 07 Abs.   w/          Inventory Pending 08 Abs. w/        09      09
               Ct        sales      Rate      Contracts   Ct        Sates Rate Contracts Inventory Ct Pendings 09 Abs. Rate
Pton Boro          72           3      24.0       2           51        2     25.5      6         47     15          3.1
Pton Twp          136          14       9.7       3          113        6     18.8      9         152    15         10.1
W. Windsor        179          19       9.4      11          140       24      5.8      24        107    41          3.0
Lawrence          230          22      19.1       8          209       19     11.0      14        187    34          5.5
East Windsor      228          16      14.3       4          214       24      8.9      12        191    32          6.0
Ewing             289          22      13.1       5          244       11     22.2      7         237    29          8.0
Hamilton          562          57       9.9       0          640       41     15.6      24        583    101         6.0
Hopewell Twp. 208              11      18.9       9          144       16      9.0      18        175    14         12.5
Cranbury           36           5       7.2       1           37        2     18.5      3          0      0          0.0
Plainsboro        151          16       9.4       4          113       13      8.7      7          0      0          0.0
South Brunswick 241            32       7.5      19           0         0      0.0      0         223    21         10.0
Montgom.          171          38       4.5      68          140       36      3.9      40        148    38          3.9
Cum.              2503        255       9.8      134         2045 194         10.5     164       2050    340         6.0

    Inventory is a combined 20% lower in the above communities than in 2007.
Lawrence Active Inventory



300
250
200
150                               Lawrence Actives
100
 50
 0
Princeton Twp. Inventory



180
160
140
120
100                              Twp. Inventory
 80
 60
 40
 20
  0
Princeton Boro. Active Inventory




80
70
60
50
40                                      Boro Activities
30
20
10
 0
West Windsor Active Inventory



250

200

150
                                West Windsor Actives
100

50

 0
Plainsboro Active Inventory



180
160
140
120
100
                                Plainsboro Actives
 80
 60
 40
 20
  0
50


    0
             100
                                          150
                                                200
                                                      250
6
0
2
1
/
4
0
2
1
/
6
6
0
2
1
/
8
6
2
/
0
1
6
0
/
2
1
7
0
1
/
2
7
0
2
1
/
4
7
0
2
1
/
6
7
0
2
1
/
8
7
2
/
0
1
7
0
/
2
1
8
0
1
/
2
8
0
2
1
/
4
8
0
2
1
/
6
0
2
1
/
8
8
2
/
0
1
8
0
/
2
1
9
0
1
/
2
9
0
2
1
/
4
9
0
2
1
/
6
                                                            East Windsor Active Inventory




                   East Windsor Actives
•With few exceptions (Princeton Township, Hamilton and
Ewing, Inventory in Mercer County is down compared to the
                     last several years.

   •Absorption Rates in the majority of towns are lower,
suggesting an improved sales performance, specifically in the
 lower price ranges in each town and product line (is single
                  family, townhouses, etc.
•The most expensive homes in each Community will have the
      slowest pace of sales and continued depreciation.
  • The 55+ Active Adult market will continue to struggle.
While continuing economic challenges lie ahead, it’s
instructive to remember that the housing market tends to lead
            the economy in-to and out-of recession. …
   Building on last month’s column as to what a housing recovery
  will look like – more homes selling and fewer to choose from –
       the New Jersey market continued in the direction of
   stabilization last month. In May, Contract-Sales continued to
 rise by equaling the pace from one year ago and appear poised to
   exceed last year’s sales pace soon. Such a break-through above
the prior year’s pace has occurred only 3 times in the past 5 years,
  in early 2007 and again in July 2007, as the market attempted to
   stabilize before being swamped by mortgage foreclosures. But
    different from 2007 when home sales slumped in the critical
     spring month of April amidst rising foreclosures and falling
  consumer confidence, this year’s sales pace has risen steadily in
   each month and now stands 86% higher than the January pace.


        Source- www.otteau.com
Top Five Rules for Understanding the
        Real Estate Market:

      1. Real Estate is Local
     2. Real Estate is Local
     3. Real Estate is Local
     4. Real Estate is Local
     5. Real Estate is Local
1. Understand the Local Market That
       You are Buying into…
Market Absorption Scale
  (Absorption Rate in Months)




    5-6 months absorption rate indicates a normal market.
Town by Town Analysis 7/12/09
Towns        Active     Pending   Absorption   New           Net Gain    Listings   % of      Expired    W/drawn    Closed
             Listings   in Last   Rate in      Listings in   (Loss) to   Reduced    Invent.   Listings   Listings   Listings
                        30 Days   Months       30 Days       Market      in 30      Reduced
                                                                         Days




Princeton
Boro:        47         7         6.7          10            3           12         25%       4          2          6
All Styles

Pton -Boro
Condo/       13         0         99           5             5           2          15%       1          2          0
Thouses

Pton-Boro
Single
             34         7         4.85         5             (2)         10         29%       3          0          6
Family




Pton Twp:
All Styles   152        8         19           31            23          26         17%       8          9          22
Pton Twp:
Condo/       21         1         21           5             4           3          14%       1          1          7
Thouses

Pton Twp:
Single
             131        7         18.1         26            19          23         18%       7          8          15
Family
Town by Town Analysis 7/12/09
Towns        Active     Pending   Absorption   New           Net         Listings     % of      Expired    W/drawn    Closed
             Listings   in Last   Rate in      Listings in   Gain        Reduced      Invent.   Listings   Listings   Listings
                        30 Days   Months       30 Days       (Loss) to   in 30 Days   Reduced
                                                             Market

West
Windsor:
             107        41        3            23            (18)        40           37%       8          9          49
All Styles
West
Windsor
             18         11        2            10            (1)         8            44%       1          5          18
Condo/
T.Houses
West
Windsor
             6          0         99           -             -           -            -         -          -          -
55+
West
Windsor
             83         31        3            13            (19)        32           39%       7          4          31
Single
Family



Lawrence:
All Styles
             187        34        5.5          39            5           54           30%       11         12         35
Lawrence:
Condo/
             82         14        6            19            5           21           26%       5          5          18
THouses
Lawrence:
55+
             13         0         99           -             -           -            -         -          -          -
Lawrence:
Single
             92         20        5            20            0           33           36%       6          7          17
Town by Town Analysis 7/12/09
Towns        Active     Pending   Absorption   New           Net Gain    Listings     % of      Expired    W/drawn    Closed
             Listings   in Last   Rate in      Listings in   (Loss) to   Reduced      Invent.   Listings   Listings   Listings
                        30 Days   Months       30 Days       Market      in 30 Days   Reduced


Ewing:
All Styles
             237        29        8            58            29          47           20%       20         5          26
Ewing :
Condo/
             42         8         5            6             (2)         10           24%       2          1          4
T.Houses
Ewing:
55+
             2          0         99           -             -           -            -         -          -          -
Ewing:
Single
             195        21        9            52            27          37           19%       18         4          22
Family



East
Windsor:
             191        32        6            42            10          35           18%       14         6          34
All Styles
East
Windsor:
             95         18        5            26            8           18           19%       7          32         15
Condo/
THouses
East
Windsor:
             20         0         99           -             -           -            -         -          -          -
55+
East
Windsor:
             76         14        5            16            2           17           22%       7          4          19
Single
Family
Market Absorption Scale
  (Absorption Rate in Months)




    5-6 months absorption rate indicates a normal market.
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 Rate

                        Anytown., NJ



      107 current active listings                    24.3
                                                   = months
                                                     absorption
    4 reported sales in last 30 days
                                                     rate




 5-6 Months Market Absorption Rate indicates a normal market.
Princeton Borough Absorption Rate By Price

     Towns       Active Listings   Pending in Last    Absorption Rate in
                                      30 Days              Months




                 8                 1                 8
0-$500
$500-750k        8                 3                 2.6

$750-999         7                 2                 3.5

$999-$1.5        11                0                 99
million
$1.5 million +   13                1                 13
Princeton Township Absorption Rate By Price

     Towns          Active Listings   Pending in Last    Absorption Rate in
                                         30 Days              Months




                   12                 1                 12
0-$500
$500-999k          54                 4                 13.5

$999-1.5           29                 1                 29

$1.5-2.5           34                 1                 34

$2.5 +             21                 1                 21
West Windsor Absorption Rate By Price

    Towns         Active Listings   Pending in Last    Absorption Rate in
                                       30 Days              Months




                 46                 12                3.83
0-$500
$500-750k        36                 11                3.27

$750-999         20                 3                 6.6


$999 +           6                  0                 99
Lawrence Absorption Rate By Price

    Towns       Active Listings   Pending in Last    Absorption Rate in
                                     30 Days              Months




               134                16                8.3
0-$400
$400-650       44                 7                 6.2

$650-999       11                 1                 11


$999 +         8                  0                 99
Ewing Absorption Rate By Price

       Towns     Active Listings   Pending in Last    Absorption Rate in
                                      30 Days              Months




                 30                3                 10
0-$150
$150-250         126               12                10.5

$250-450         80                4                 20


450+             9                 0                 99
Hopewell Absorption Rate By Price

    Towns       Active Listings   Pending in Last    Absorption Rate in
                                     30 Days              Months




               63                 4                 15.7
0-$400
$400-$650      46                 1                 46

$650-999       39                 1                 39


$999+          33                 0                 99
10
                             15
                                            20
                                                 25
                                                      30




            0
                5
8
0
9
/
2
1
        9
        0
        2
        5
        /
        1
    9
    0
    2
    /
    1
    0
    2
    9
    /
    1
    9
    0
    6
    2
    /
    1
        9
        0
        /
        2
        0
        9
        /
        2
    9
    0
    6
    1
    /
    2
    9
    0
    3
    /
    2
        9
        0
        2
        /
        3
        0
        2
        9
        /
        3
    9
    0
    2
    6
    1
    /
    3
    9
    0
    2
    /
    3
    9
    2
    0
    /
    3
        9
        0
        2
        6
        /
        4
    9
    0
    2
    3
    1
    /
    4
    9
    0
    2
    /
    4
    9
    0
    7
    2
    /
    4
        9
        0
        2
        4
        /
        5
    9
    0
    2
    1
    /
    5
    9
    0
    2
    8
    1
    /
    5
    9
    0
    2
    /
    5
        9
        0
        2
        1
        /
        6
        9
        0
        2
        8
        /
        6
    9
    0
    2
    5
    1
    /
    6
    9
    0
    2
    /
    6
    0
    9
    2
    /
    6
        9
        0
        2
        6
        /
        7
    9
    0
    2
    3
    1
    /
    7
                                                           Lawrence Single Family Absorption Rate




                         Lawrence Single
                         Family Abs. Rate
Princeton Twp. Single Family Absorption Rate


 90
 80
 70
 60
 50                              Princeton Township Single
 40                              Family Abs. Rate

 30
 20
 10
 0
Princeton Boro. Single Family Absorption Rate



 120

 100

  80
                                        Prin ceto n Bo ro
  60                                    Sin g le Family
                                        Abs. Rate

  40

  20

   0
West Windsor Condo/Townhouses Absorption Rate



30

25

20

15                                    West Windsor C/T
                                      Abs. Rate

10

 5

 0
West Windsor Single Family Absorption Rate


80
70
60
50
                                   West Windsor
40                                 Single Family Abs.
                                   Rate
30
20
10
0
East Windsor Condo/Townhouse Absorption Rate



50
45
40
35
30
                                    East Windsor C/T
25
                                    Abs. Rate
20
15
10
 5
 0
East Windsor Single Family Absorption Rate



90
80
70
60
50                                  East Windsor Single
40                                  Family Abs. Rate
30
20
10
 0
Understand the Market That You are
          Buying into…

  I want to live in Hopewell Twp…
Town by Town Analysis 7/12/09
Towns           Active     Pending   Absorption   New           Net Gain    Listings   % of      Expired    W/drawn    Closed
                Listings   in Last   Rate in      Listings in   (Loss) to   Reduced    Invent.   Listings   Listings   Listings
                           30 Days   Months       30 Days       Market      in 30      Reduced
                                                                            Days




Hopewell
Twp.            175        14        12.5         31            17          40         23%       11         7          17
All Styles



Hopewell
Twp. Condo/     25         5         5            7             2           6          24%       1          2          1
T.Houses



Hopewell
Twp.:           4          0         99           -             -           -          -         -          -          -
55+



Hopewell
Twp:            146        9         16           24            15          34         23%       10         5          16
Single Family
Market Absorption Rate
                        Hopewell Twp.

                              Townhouses
                              Under $500,000


              24 current active listings    8 month
                                            =absorption
 3 reported ‘pending’ sales in last 30 days rate


Market Absorption Rate is the number of months it will take to sell the current inventory of
homes if nothing new comes on the market and the rate of sales stays the same

5-6 Months Absorption Rate indicates a Normal Market
Market Absorption Scale
  (Absorption Rate in Months)




    5-6 months absorption rate indicates a normal market.
Market Absorption Rate
                        Hopewell Twp.

                               Townhouses
                               $200-400k


              22 current active listings    5.5 month
                                            =absorption
 4 reported ‘pending’ sales in last 30 days rate


Market Absorption Rate is the number of months it will take to sell the current inventory of
homes if nothing new comes on the market and the rate of sales stays the same

5-6 Months Absorption Rate indicates a Normal Market
Market Absorption Rate
                        Hopewell Twp.

                        Townhouses
                        $200-400k
                        3 bedrooms

              17 current active listings     4.25 month
                                            =absorption
  4 reported ‘pending’ sales in last 30 days rate


Market Absorption Rate is the number of months it will take to sell the current inventory of
homes if nothing new comes on the market and the rate of sales stays the same

5-6 Months Absorption Rate indicates a Normal Market
2. ‘I am going to time the
      Market and buy at the peak
      inventory level and when no
             one else buys…’

Source: MLS
Weekly Guests Thru the Weichert Princeton Open Houses, 2007



                      Gross # of Guests 2007

  180

  160

  140

  120                                                        Gross # of
  100                                                        Guests 2007

   80

   60

   40

   20

     0
Source: MLS 0
     1/7/2 7
          0     4 /2 0
                 /1 0 7   6 4 0 7
                           /2 /2 0    9 3 0 7
                                       /2 /2 0   1 /1 /2 0
                                                  2 6 0 7
Inventory Levels, Princeton, New Jersey, 2007



   250


   200


   150


   100


    50


     0
     1/8/07   3/5/07   4/30/07   6/24/07   8/20/07 10/16/07 12/11/07
Source: MLS
3. ‘I am going to wait until
             the price comes down
           further and then make an
                     offer…’
Source: MLS
Relationship of Price Reductions to
     ‘Pending Sales’

      70

      60

      50
                                      Princeton Pendings
      40

      30                              Princeton Price
                                      Reductions
      20

      10

       0




Source: trend mls
Town by Town Analysis 5/11/09
Towns        Active     Pending   Absorption   Active w/    New Listings   Net Gain    Listings     % of      Expired    W/drawn
             Listings   in Last   Rate in      Contract     in 30 Days     (Loss) to   Reduced in   Invent.   Listings   Listings
                        30 Days   Months       in 30 Days                  Market      30 Days      Reduced



Hopewell
Twp.:
             172        10        17.2         14           38             14          55           32%       7          4
All Styles
Hopewell
Twp. :
             21         5         4.2          0            6              1           9            43%       2          0
Condo/
T.Houses
Hopewell
Twp.:
             3          0         99           -            -              -           -            -         -          -
55+
Hopewell :
Single
             148        5         29.6         14           32             13          46           31%       5          4
Family



Hamilton:
All Styles
             583        47        12           41           160            72          143          25%       41         21
Hamilton:
Condo/
             88         6         15           6            35             23          38           43%       11         5
THouses
Hamilton
55+
             37         0         99           -            -              -           -            -         -          -
Hamilton:
Single
             458        41        11           35           125            49          105          23%       30         16
Family
Relationship of Price Reductions to
     ‘Pending Sales’

      70

      60

      50
                                      Princeton Pendings
      40

      30                              Princeton Price
                                      Reductions
      20

      10

       0




Source: trend mls
Relationship of Price Reductions to
     ‘Pending Sales’

        120

        100

         80
                                    West Windsor Pendings
         60
                                    West Windsor Reductions
         40

         20

          0




Source: trend mls
Relationship of Price Reductions to
     ‘Pending Sales’

        100
         90
         80
         70
         60
                                      Lawrence Pendings
         50
         40
                                      Lawrence Reductions
         30
         20
         10
          0




Source: trend mls
Seeing the Opportunity.
Seeing the Opportunity.

                           Prices   Rates
Q. If this were 2005,
                                         High
where would you place
the Price and Rate dots?

A. In 2005, the V would               Mid-Range

look somewhat like this
one, where prices were
on the high end of the                   Low

scale and rates were in
the lower range.
Seizing the Opportunity.

                              Prices   Rates
In recent history, there
has never been an                           High

opportunity like this, with
low prices and low rates.
In real estate, this                     Mid-Range

circular area at the
bottom of the V is called
the “Buying Zone” –
                                            Low
it’s an unbelievable
time to buy.
Financial Benefits and Process of
      Home-Ownership.




                        Jeff Smith,
                Gold Services Manager/ Loan
                           Officer
‘I don’t want to buy a house and
  then watch it drop in value!’
 
                             Purchase Price       $329,000        Loan Amount $281,000

                         Down Payment              $11,515         Monthly P&I   $1,590

       Appreciation/Depreciation                               Home Value
1st Year                                               -3%          $305,970
2nd Year                                                0%          $305,970
3rd Year                                                1%          $309,030
4th Year                                                3%          $318,301
5th Year                                                5%          $334,216
5 Year Appreciation/Depreciation                    $5,216


               Tax Benefit                                   Rent @ $1600/mo
1st Year                                            $5,000             $19,200
2nd Year                                            $5,000             $19,200
3rd Year                                            $5,000             $19,200
4th Year                                            $5,000             $19,200
5th Year                                            $5,000             $19,200
5 Year Total                                       $25,000             $96,000

                                                             Create Equity
                                   Total $30,216               v Pay Rent
Incentive From the Government


               First-time
            homebuyers can
           receive a tax credit
              up to $8000!
Tax Credit Overview
Amount            Ten percent of the cost of home, not to exceed $8,000

Property          Any single family residence that will be used as a principal residence

Refundable        Reduces income tax liability for the year of purchase

Income Limit Adjusted gross income of $75,000 single or $150,000 joint tax returns
                  Must not have owned a principal residence in 3 years prior to
First-Time        purchase




                   Distribute NAR Tax Credit Overview handout
Tax Credit FAQs
• Can individuals with incomes higher than the 
  income limits still benefit from the tax credit?
• How does a tax credit work?
• How do I apply for the credit?
• Is there a way to get the credit before I file my tax 
  return?
• How does the repayment work? 
             Distribute NAR Frequently Asked Question handout
How much house can I really afford?
Establish Your Buying Power

 • The first step is to
    meet with me!
Factors to consider when
            buying and selling…
   Inventory(supply and demand)
               Interest Rates

Source: MLS
Interest Rates Remain Low
               Average Annual Rate (30-year fixed rate mortgage)
Percent
 19%
 17%
 15%
 13%
 11%
  9%
  7%
  5%
    1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
                                        Year

    Source: Freddie Mac
Strategies for Selling



Joshua D. Wilton, Manager
Understand the Market That You are
         Selling Out of …

       I live in Montgomery
The Impact of Pricing on the Salability
         of Your Home..…
‘Great speech but does it really work?
We know the best way to evaluate pricing

Does this really 
work?
We know the best way to evaluate pricing

Does this 
really work?
2. The Effect of
Staging on the
Value of a Your
     Home .
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.
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 average
marketing time of
an ASP Staged vs.
non-Staged home
   is 80% less.
3.The Effect of ‘ Pre-
Inspection’ on the Sale of
       Your Home.
What is
‘Pre-Inspection?’
Home 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?
All Negotiations, including real estate, are
     all about negotiation and control.
 Right Price

Right Staging

All Repairs are done in advance.

Offer a Home Warranty to the buyer..



               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 2008: 10.2%.
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.
Reality of today’s market is that you will see the
return on your investment not in an inflated sales
price but in retaining the highest percentage of
your list price and staying on the market the fewest
# of days.

Please consult with your Realtor & staging
professional as to which improvements you should
finish to make your home the most salable.
What will a real estate
company do for me?


       Weichert Family of Companies
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.
The Weichert Difference
• Time is money.
• Stress kills.

• Time is life.
What Will a Weichert Agent Do for Me?

                        Educate You.
                      Negotiate on your
                            behalf.
                     Offer advice on due
                           diligence.
                     Manage all aspects
                      of the transaction
                            process.
We’re Here to Help

The Entire Process is reviewed by 
          Legal Council.
Weichert Princeton on Facebook
Weichert Princeton on Facebook
Resource and website list:

          Realtor.org
http://www.facebook.com/pages/
 NAR-Research/73888294183#
        Remodeling.com
Resource and Website List

http://www.realtor.org/research/resear
         www.Otteau.com
   www.Pre-listing-inspection.com
Resource and Website List:

   www.Housemaster.com
www.Stagingshoppingcenter.com
Resource and website list:

      www.Stagedhomes.com
www.realestatestagingassociation.com
    www.foreclosurepoint.com
        www.realtytrac.com
Good Luck with your Move!

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July 2009 Market Seminar

  • 1. Weichert, Princeton Office July Market Update Seminar Offers analysis of the Princeton and Greater Princeton, NJ real estate markets & effective strategies to buy and sell.
  • 2. Presented by: Joshua D Wilton Broker/ Sales Representitive Weichert Realtors Princeton, NJ O 609-921-1900
  • 3. Agenda 1. The Market 2. Strategies for Buying 3. Strategies for Selling
  • 4. Agenda 1. The Market: - The National Economy…
  • 5. Chrysler in Bankruptcy…GM Next…Over 1000 Chrysler Dealers to be shuttered… Source: Autodata
  • 6. Consumer Sentiment Not This Low Since Early 1980s • U.S. Economy: Consumer Sentiment Falls on Job Losses • By Shobhana Chandra and Bob Willis • 1966Q1 = 100 July 10 (Bloomberg) -- Sentiment among U.S. consumers, whose spending is critical to an economic recovery, dropped in July after four months of gains as unemployment approached 10 percent. • The Reuters/University of Michigan preliminary index of consumer sentiment fell by more than forecast to 64.6 from 70.8 in the prior month. A separate report from the Commerce Department showed the trade deficit unexpectedly narrowed in May to the lowest level in almost a decade. • Unemployment is rising even as economists predict an end to the recession in coming months. Consumers in the survey said they are less likely to buy cars or appliances, suggesting that the recovery may be weaker than anticipated. www.bloomberg.com Source: University of Michigan
  • 9.
  • 10. 2009: Foreclosure Forecast Within Company-Owned Footprint Over 1800 Foreclosure in Mercer County. Less than 72 foreclosures in 08540 (3 townships). Less than 27 foreclosures in West Windsor. Majority of the 1800 are in Trenton. - foreclosurepoint.com
  • 11. Home Price Trends in Down Markets: Big Declines in Subprime Neighborhoods Yellow – Conforming Loans Only (OFHEO) Orange – All Loans including subprime and jumbo loans (Case-Shiller) Red – Subprime Loans (NAR estimate based on subprime weight)
  • 12. Where is the bottom of the market? “The effects (of foreclosures) are continued declining prices….probably another 5-8%* to the bottom. As for the effect of foreclosure pricing, all of these problems are causing home prices to go lower than is necessary from an affordability perspective. That’s because everyone is now worrying about job security. As a result, the recovery will take place at a faster pace once it gets started.” – Jeff Otteau (otteau.com- January 2009)
  • 13. What about the Real Estate Markets….?
  • 14. Pending Home Sales Record Fourth Straight Monthly Gain Washington, July 01, 2009 Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®. The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.
  • 15. “Everything I am seeing tells me we have arrived at the bottom of the market, specifically in the popular and affordable price ranges.” J. Weichert 6/2009
  • 16. Recovery Has Begun 49.8% Increase in Sales $300,000 & Under May YTD reported internal revenue units
  • 17. Sales by Price Range
  • 18. Positive Indicators Across the Board….1st time in 4 years….! Source: NAR
  • 19. The Otteau Report comes from an objective third-party appraisal company that provides regular market updates to developers and consumers.
  • 20. Where is the bottom of the market?
  • 21. Where is the bottom of the market?
  • 22. Share Yesterday at 12:43pm Quick Take: Housing Starts and Bank Profits Where is the bottom of the market? July 17, 2009 By Lawrence Yun, Chief Economist www.realtor.org •Homebuilders are getting busier. Housing starts rose 4 percent to 582,000 annualized unit pace in June, the highest six months and over 100,000 higher from the pace just two months ago. The construction of single- family homes advanced while that of multifamily units declined. But even with the latest rise, new construction activity is still down by 46 percent from one year ago. Recent prior months data were modestly revised upward.
  • 23. Share Yesterday at 12:43pm Quick Take: Housing Starts and Bank Profits Where is the bottom of the market? July 17, 2009 By Lawrence Yun, Chief Economist www.realtor.org •At the bubblish peak in 2005, new home construction totaled 2.1 million units. So the current activity is only about one-quarter of the peak level. Clearly unsustainable then, but the four straights years of housing starts decline has translated into over one million job losses in the residential construction sector. The latest rise in building could arrest further job cuts in the sector. •Perhaps the worst is over. Home sales have been rising modestly in the past few months. The builders took our more housing permits, a good indicator of future housing starts. Still inventory of existing homes remain elevated (nationally) and the builders will have difficult time competing….
  • 24. Less New Construction in Mercer Source: NAR, November 2008 Forecast Richardson Commercial
  • 25. The Local Inventory and Sales Patterns: Source: NAR, November 2008 Forecast
  • 26. 07 07 Active 08 08 08 Active Inventory 07 Pending 07 Abs. w/ Inventory Pending 08 Abs. w/ 09 09 Ct sales Rate Contracts Ct Sates Rate Contracts Inventory Ct Pendings 09 Abs. Rate Pton Boro 72 3 24.0 2 51 2 25.5 6 47 15 3.1 Pton Twp 136 14 9.7 3 113 6 18.8 9 152 15 10.1 W. Windsor 179 19 9.4 11 140 24 5.8 24 107 41 3.0 Lawrence 230 22 19.1 8 209 19 11.0 14 187 34 5.5 East Windsor 228 16 14.3 4 214 24 8.9 12 191 32 6.0 Ewing 289 22 13.1 5 244 11 22.2 7 237 29 8.0 Hamilton 562 57 9.9 0 640 41 15.6 24 583 101 6.0 Hopewell Twp. 208 11 18.9 9 144 16 9.0 18 175 14 12.5 Cranbury 36 5 7.2 1 37 2 18.5 3 0 0 0.0 Plainsboro 151 16 9.4 4 113 13 8.7 7 0 0 0.0 South Brunswick 241 32 7.5 19 0 0 0.0 0 223 21 10.0 Montgom. 171 38 4.5 68 140 36 3.9 40 148 38 3.9 Cum. 2503 255 9.8 134 2045 194 10.5 164 2050 340 6.0 Inventory is a combined 20% lower in the above communities than in 2007.
  • 27. Lawrence Active Inventory 300 250 200 150 Lawrence Actives 100 50 0
  • 28. Princeton Twp. Inventory 180 160 140 120 100 Twp. Inventory 80 60 40 20 0
  • 29. Princeton Boro. Active Inventory 80 70 60 50 40 Boro Activities 30 20 10 0
  • 30. West Windsor Active Inventory 250 200 150 West Windsor Actives 100 50 0
  • 31. Plainsboro Active Inventory 180 160 140 120 100 Plainsboro Actives 80 60 40 20 0
  • 32. 50 0 100 150 200 250 6 0 2 1 / 4 0 2 1 / 6 6 0 2 1 / 8 6 2 / 0 1 6 0 / 2 1 7 0 1 / 2 7 0 2 1 / 4 7 0 2 1 / 6 7 0 2 1 / 8 7 2 / 0 1 7 0 / 2 1 8 0 1 / 2 8 0 2 1 / 4 8 0 2 1 / 6 0 2 1 / 8 8 2 / 0 1 8 0 / 2 1 9 0 1 / 2 9 0 2 1 / 4 9 0 2 1 / 6 East Windsor Active Inventory East Windsor Actives
  • 33. •With few exceptions (Princeton Township, Hamilton and Ewing, Inventory in Mercer County is down compared to the last several years. •Absorption Rates in the majority of towns are lower, suggesting an improved sales performance, specifically in the lower price ranges in each town and product line (is single family, townhouses, etc. •The most expensive homes in each Community will have the slowest pace of sales and continued depreciation. • The 55+ Active Adult market will continue to struggle.
  • 34. While continuing economic challenges lie ahead, it’s instructive to remember that the housing market tends to lead the economy in-to and out-of recession. … Building on last month’s column as to what a housing recovery will look like – more homes selling and fewer to choose from – the New Jersey market continued in the direction of stabilization last month. In May, Contract-Sales continued to rise by equaling the pace from one year ago and appear poised to exceed last year’s sales pace soon. Such a break-through above the prior year’s pace has occurred only 3 times in the past 5 years, in early 2007 and again in July 2007, as the market attempted to stabilize before being swamped by mortgage foreclosures. But different from 2007 when home sales slumped in the critical spring month of April amidst rising foreclosures and falling consumer confidence, this year’s sales pace has risen steadily in each month and now stands 86% higher than the January pace. Source- www.otteau.com
  • 35. Top Five Rules for Understanding the Real Estate Market: 1. Real Estate is Local 2. Real Estate is Local 3. Real Estate is Local 4. Real Estate is Local 5. Real Estate is Local
  • 36. 1. Understand the Local Market That You are Buying into…
  • 37. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
  • 38. Town by Town Analysis 7/12/09 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings Listings Listings 30 Days Months 30 Days Market in 30 Reduced Days Princeton Boro: 47 7 6.7 10 3 12 25% 4 2 6 All Styles Pton -Boro Condo/ 13 0 99 5 5 2 15% 1 2 0 Thouses Pton-Boro Single 34 7 4.85 5 (2) 10 29% 3 0 6 Family Pton Twp: All Styles 152 8 19 31 23 26 17% 8 9 22 Pton Twp: Condo/ 21 1 21 5 4 3 14% 1 1 7 Thouses Pton Twp: Single 131 7 18.1 26 19 23 18% 7 8 15 Family
  • 39. Town by Town Analysis 7/12/09 Towns Active Pending Absorption New Net Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in Gain Reduced Invent. Listings Listings Listings 30 Days Months 30 Days (Loss) to in 30 Days Reduced Market West Windsor: 107 41 3 23 (18) 40 37% 8 9 49 All Styles West Windsor 18 11 2 10 (1) 8 44% 1 5 18 Condo/ T.Houses West Windsor 6 0 99 - - - - - - - 55+ West Windsor 83 31 3 13 (19) 32 39% 7 4 31 Single Family Lawrence: All Styles 187 34 5.5 39 5 54 30% 11 12 35 Lawrence: Condo/ 82 14 6 19 5 21 26% 5 5 18 THouses Lawrence: 55+ 13 0 99 - - - - - - - Lawrence: Single 92 20 5 20 0 33 36% 6 7 17
  • 40. Town by Town Analysis 7/12/09 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings Listings Listings 30 Days Months 30 Days Market in 30 Days Reduced Ewing: All Styles 237 29 8 58 29 47 20% 20 5 26 Ewing : Condo/ 42 8 5 6 (2) 10 24% 2 1 4 T.Houses Ewing: 55+ 2 0 99 - - - - - - - Ewing: Single 195 21 9 52 27 37 19% 18 4 22 Family East Windsor: 191 32 6 42 10 35 18% 14 6 34 All Styles East Windsor: 95 18 5 26 8 18 19% 7 32 15 Condo/ THouses East Windsor: 20 0 99 - - - - - - - 55+ East Windsor: 76 14 5 16 2 17 22% 7 4 19 Single Family
  • 41. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
  • 42. 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.  
  • 43. Sample Market Absorption Rate Anytown., NJ 107 current active listings 24.3 = months absorption 4 reported sales in last 30 days rate 5-6 Months Market Absorption Rate indicates a normal market.
  • 44. Princeton Borough Absorption Rate By Price Towns Active Listings Pending in Last Absorption Rate in 30 Days Months 8 1 8 0-$500 $500-750k 8 3 2.6 $750-999 7 2 3.5 $999-$1.5 11 0 99 million $1.5 million + 13 1 13
  • 45. Princeton Township Absorption Rate By Price Towns Active Listings Pending in Last Absorption Rate in 30 Days Months 12 1 12 0-$500 $500-999k 54 4 13.5 $999-1.5 29 1 29 $1.5-2.5 34 1 34 $2.5 + 21 1 21
  • 46. West Windsor Absorption Rate By Price Towns Active Listings Pending in Last Absorption Rate in 30 Days Months 46 12 3.83 0-$500 $500-750k 36 11 3.27 $750-999 20 3 6.6 $999 + 6 0 99
  • 47. Lawrence Absorption Rate By Price Towns Active Listings Pending in Last Absorption Rate in 30 Days Months 134 16 8.3 0-$400 $400-650 44 7 6.2 $650-999 11 1 11 $999 + 8 0 99
  • 48. Ewing Absorption Rate By Price Towns Active Listings Pending in Last Absorption Rate in 30 Days Months 30 3 10 0-$150 $150-250 126 12 10.5 $250-450 80 4 20 450+ 9 0 99
  • 49. Hopewell Absorption Rate By Price Towns Active Listings Pending in Last Absorption Rate in 30 Days Months 63 4 15.7 0-$400 $400-$650 46 1 46 $650-999 39 1 39 $999+ 33 0 99
  • 50. 10 15 20 25 30 0 5 8 0 9 / 2 1 9 0 2 5 / 1 9 0 2 / 1 0 2 9 / 1 9 0 6 2 / 1 9 0 / 2 0 9 / 2 9 0 6 1 / 2 9 0 3 / 2 9 0 2 / 3 0 2 9 / 3 9 0 2 6 1 / 3 9 0 2 / 3 9 2 0 / 3 9 0 2 6 / 4 9 0 2 3 1 / 4 9 0 2 / 4 9 0 7 2 / 4 9 0 2 4 / 5 9 0 2 1 / 5 9 0 2 8 1 / 5 9 0 2 / 5 9 0 2 1 / 6 9 0 2 8 / 6 9 0 2 5 1 / 6 9 0 2 / 6 0 9 2 / 6 9 0 2 6 / 7 9 0 2 3 1 / 7 Lawrence Single Family Absorption Rate Lawrence Single Family Abs. Rate
  • 51. Princeton Twp. Single Family Absorption Rate 90 80 70 60 50 Princeton Township Single 40 Family Abs. Rate 30 20 10 0
  • 52. Princeton Boro. Single Family Absorption Rate 120 100 80 Prin ceto n Bo ro 60 Sin g le Family Abs. Rate 40 20 0
  • 53. West Windsor Condo/Townhouses Absorption Rate 30 25 20 15 West Windsor C/T Abs. Rate 10 5 0
  • 54. West Windsor Single Family Absorption Rate 80 70 60 50 West Windsor 40 Single Family Abs. Rate 30 20 10 0
  • 55. East Windsor Condo/Townhouse Absorption Rate 50 45 40 35 30 East Windsor C/T 25 Abs. Rate 20 15 10 5 0
  • 56. East Windsor Single Family Absorption Rate 90 80 70 60 50 East Windsor Single 40 Family Abs. Rate 30 20 10 0
  • 57. Understand the Market That You are Buying into… I want to live in Hopewell Twp…
  • 58. Town by Town Analysis 7/12/09 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings Listings Listings 30 Days Months 30 Days Market in 30 Reduced Days Hopewell Twp. 175 14 12.5 31 17 40 23% 11 7 17 All Styles Hopewell Twp. Condo/ 25 5 5 7 2 6 24% 1 2 1 T.Houses Hopewell Twp.: 4 0 99 - - - - - - - 55+ Hopewell Twp: 146 9 16 24 15 34 23% 10 5 16 Single Family
  • 59. Market Absorption Rate Hopewell Twp. Townhouses Under $500,000 24 current active listings 8 month =absorption 3 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market
  • 60. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
  • 61. Market Absorption Rate Hopewell Twp. Townhouses $200-400k 22 current active listings 5.5 month =absorption 4 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market
  • 62. Market Absorption Rate Hopewell Twp. Townhouses $200-400k 3 bedrooms 17 current active listings 4.25 month =absorption 4 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market
  • 63. 2. ‘I am going to time the Market and buy at the peak inventory level and when no one else buys…’ Source: MLS
  • 64. Weekly Guests Thru the Weichert Princeton Open Houses, 2007 Gross # of Guests 2007 180 160 140 120 Gross # of 100 Guests 2007 80 60 40 20 0 Source: MLS 0 1/7/2 7 0 4 /2 0 /1 0 7 6 4 0 7 /2 /2 0 9 3 0 7 /2 /2 0 1 /1 /2 0 2 6 0 7
  • 65. Inventory Levels, Princeton, New Jersey, 2007 250 200 150 100 50 0 1/8/07 3/5/07 4/30/07 6/24/07 8/20/07 10/16/07 12/11/07 Source: MLS
  • 66. 3. ‘I am going to wait until the price comes down further and then make an offer…’ Source: MLS
  • 67. Relationship of Price Reductions to ‘Pending Sales’ 70 60 50 Princeton Pendings 40 30 Princeton Price Reductions 20 10 0 Source: trend mls
  • 68. Town by Town Analysis 5/11/09 Towns Active Pending Absorption Active w/ New Listings Net Gain Listings % of Expired W/drawn Listings in Last Rate in Contract in 30 Days (Loss) to Reduced in Invent. Listings Listings 30 Days Months in 30 Days Market 30 Days Reduced Hopewell Twp.: 172 10 17.2 14 38 14 55 32% 7 4 All Styles Hopewell Twp. : 21 5 4.2 0 6 1 9 43% 2 0 Condo/ T.Houses Hopewell Twp.: 3 0 99 - - - - - - - 55+ Hopewell : Single 148 5 29.6 14 32 13 46 31% 5 4 Family Hamilton: All Styles 583 47 12 41 160 72 143 25% 41 21 Hamilton: Condo/ 88 6 15 6 35 23 38 43% 11 5 THouses Hamilton 55+ 37 0 99 - - - - - - - Hamilton: Single 458 41 11 35 125 49 105 23% 30 16 Family
  • 69. Relationship of Price Reductions to ‘Pending Sales’ 70 60 50 Princeton Pendings 40 30 Princeton Price Reductions 20 10 0 Source: trend mls
  • 70. Relationship of Price Reductions to ‘Pending Sales’ 120 100 80 West Windsor Pendings 60 West Windsor Reductions 40 20 0 Source: trend mls
  • 71. Relationship of Price Reductions to ‘Pending Sales’ 100 90 80 70 60 Lawrence Pendings 50 40 Lawrence Reductions 30 20 10 0 Source: trend mls
  • 73. Seeing the Opportunity. Prices Rates Q. If this were 2005, High where would you place the Price and Rate dots? A. In 2005, the V would Mid-Range look somewhat like this one, where prices were on the high end of the Low scale and rates were in the lower range.
  • 74. Seizing the Opportunity. Prices Rates In recent history, there has never been an High opportunity like this, with low prices and low rates. In real estate, this Mid-Range circular area at the bottom of the V is called the “Buying Zone” – Low it’s an unbelievable time to buy.
  • 75. Financial Benefits and Process of Home-Ownership. Jeff Smith, Gold Services Manager/ Loan Officer
  • 76. ‘I don’t want to buy a house and then watch it drop in value!’
  • 77.   Purchase Price $329,000 Loan Amount $281,000 Down Payment $11,515 Monthly P&I $1,590 Appreciation/Depreciation Home Value 1st Year -3% $305,970 2nd Year 0% $305,970 3rd Year 1% $309,030 4th Year 3% $318,301 5th Year 5% $334,216 5 Year Appreciation/Depreciation $5,216 Tax Benefit   Rent @ $1600/mo 1st Year $5,000 $19,200 2nd Year $5,000 $19,200 3rd Year $5,000 $19,200 4th Year $5,000 $19,200 5th Year $5,000 $19,200 5 Year Total $25,000 $96,000 Create Equity Total $30,216 v Pay Rent
  • 78. Incentive From the Government First-time homebuyers can receive a tax credit up to $8000!
  • 79. Tax Credit Overview Amount Ten percent of the cost of home, not to exceed $8,000 Property Any single family residence that will be used as a principal residence Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $75,000 single or $150,000 joint tax returns Must not have owned a principal residence in 3 years prior to First-Time purchase Distribute NAR Tax Credit Overview handout
  • 80. Tax Credit FAQs • Can individuals with incomes higher than the  income limits still benefit from the tax credit? • How does a tax credit work? • How do I apply for the credit? • Is there a way to get the credit before I file my tax  return? • How does the repayment work?  Distribute NAR Frequently Asked Question handout
  • 81. How much house can I really afford?
  • 82. Establish Your Buying Power • The first step is to meet with me!
  • 83. Factors to consider when buying and selling… Inventory(supply and demand) Interest Rates Source: MLS
  • 84. Interest Rates Remain Low Average Annual Rate (30-year fixed rate mortgage) Percent 19% 17% 15% 13% 11% 9% 7% 5% 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 Year Source: Freddie Mac
  • 85. Strategies for Selling Joshua D. Wilton, Manager
  • 86. Understand the Market That You are Selling Out of … I live in Montgomery
  • 87. The Impact of Pricing on the Salability of Your Home..…
  • 88. ‘Great speech but does it really work?
  • 89. We know the best way to evaluate pricing Does this really  work?
  • 90. We know the best way to evaluate pricing Does this  really work?
  • 91. 2. The Effect of Staging on the Value of a Your Home .
  • 92. 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.
  • 93. The Way You Live In Your Home…
  • 94. … And The Way We Market And Sell A House Are Two Different Things.
  • 95. “The Investment in Home Staging is Always Less than Your First Price Reduction!”
  • 96. Buyers Only Know What They See …
  • 97. … Not The Way It Is Going To Be.
  • 98. 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.
  • 99. 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.
  • 100. The average marketing time of an ASP Staged vs. non-Staged home is 80% less.
  • 101. 3.The Effect of ‘ Pre- Inspection’ on the Sale of Your Home.
  • 103. Home 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.
  • 104. PRE-LISTING Home Inspection DOESN’T THE BUYER DO THE HOME INSPECTION?
  • 105. All Negotiations, including real estate, are all about negotiation and control. Right Price Right Staging All Repairs are done in advance. Offer a Home Warranty to the buyer.. Who is in control?
  • 106. PRE-LISTING Home Inspection Data on where most sales fall apart: attorney review, home inspection. Fall Thru Percentage 2007: 26% Fall Thru Percentage 2008: 10.2%.
  • 107. 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.
  • 108.
  • 109.
  • 110. Reality of today’s market is that you will see the return on your investment not in an inflated sales price but in retaining the highest percentage of your list price and staying on the market the fewest # of days. Please consult with your Realtor & staging professional as to which improvements you should finish to make your home the most salable.
  • 111. What will a real estate company do for me? Weichert Family of Companies
  • 112. 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.
  • 113. The Weichert Difference • Time is money. • Stress kills. • Time is life.
  • 114. What Will a Weichert Agent Do for Me? Educate You. Negotiate on your behalf. Offer advice on due diligence. Manage all aspects of the transaction process.
  • 115. We’re Here to Help The Entire Process is reviewed by  Legal Council.
  • 118. Resource and website list: Realtor.org http://www.facebook.com/pages/ NAR-Research/73888294183# Remodeling.com
  • 119. Resource and Website List http://www.realtor.org/research/resear www.Otteau.com www.Pre-listing-inspection.com
  • 120. Resource and Website List: www.Housemaster.com www.Stagingshoppingcenter.com
  • 121. Resource and website list: www.Stagedhomes.com www.realestatestagingassociation.com www.foreclosurepoint.com www.realtytrac.com
  • 122. Good Luck with your Move!