Hoboken Real Estate Podcast with Brian Riolo

Here are three mistakes to avoid when listing your home in Hoboken this year:  The first common seller mistake is not taking time to prep your home. For our part, we’ll have an interior designer come out to your home to determine where we should focus our preparation efforts. Using their feedback, we’ll have your home looking like a model property before we introduce it to the market.  We all know that exciting, warm feeling that stems from walking through a model home, and our goal is to elicit the same response from the buyers who see your home. When a buyer gets excited about your home, it means more money in your pocket at closing and a quicker sale. “As the old saying goes, “You get what you pay for,” and that’s no less true in real estate.” Secondly, overpricing your home can have major consequences. I understand if you feel that your home is special and unique, and it is, but we need to make sure we price it based on what the market says it’s worth—not what we think it’s worth. We in the real estate business rely heavily on comps, or comparables, to help us determine a home’s value. Comparables are properties that have been on the market for a short time and are similar to yours.  They’re an important tool in keeping us from doing what no seller should do: price their home above market value. Your home will have the most buyer exposure in its first two to three weeks on the market, and we want to be sure to take advantage of that momentum.  If we overprice right from the start, three weeks or a month could go by with little to no buyer interest, forcing us to reduce your home’s price. Price reductions tend to attract the sharks (i.e., lowball offers)—something we wanted to avoid in the first place. It’s very important to look at similar homes and stay in line with current market conditions. It’s last on the list, but hiring a bad agent is just as big a mistake as the others. Everywhere you look, you see marketing and ads from other agents battling to be the cheapest agent in the area. As the old saying goes, “You get what you pay for,” and that’s no less true in real estate.  Now, I’m not suggesting you shouldn’t give a discount agent a chance. Feel free to meet with them to see what they have to offer, but also interview a few others like the Riolo Residential Group. Who you work with matters; we have a proven strategy that will achieve the results you are looking for with the sale of your home.  If you have any questions or you’re curious about your home’s value in today’s market, please feel free to give us a call at 201-253-5594 or email me at Brian@RioloResidentialGroup.com. We hope to hear from you soon!

If you’re looking to purchase property in the Hoboken area in 2019, there are three points to keep in mind as you’re searching for property: 1. Don’t focus solely on getting a deal. All the time, we see too many people focusing on getting the best deal to the point where they forget the fact that they actually have to live in the house with their family. Make sure you’re buying a house that’s best for your and your family’s situation, not just one that looks like a good deal. If you can get a great home for a great deal, then that’s just icing on the cake. 2. Get pre-qualified by a lender before you start searching for homes. Don’t put the cart before the horse! By that, we mean that buyers go property hunting before they even talk to a lender. By sitting down for the pre-qualification process with a lender, you’ll learn where you stand in terms of buying power and how much you’ll need to budget in order to make your home purchase work. They’ll also help you assess your plan so that you can find the right mortgage product for you; there might be a particular program that makes more sense for you to choose. I’ve had buyers in the past look for $500,000 houses, only to later find out that they were approved to look for houses a few hundred thousand dollars more than that. “Make sure you’re buying a house that’s best for your and your family’s situation, not just one that looks like a good deal.” 3. Have a proper buyer consultation. All too often, we read feedback and reviews about agents where buyers express that they were unhappy with the home buying process they experienced. Many of them later learn that they should have sat down for a proper consultation with their Realtor, where they would’ve discussed their needs, their goals, the market, and what makes the most sense for them. All three of these points will help your home buying experience go smoother and ensure that your and your family’s needs are met. If you have any questions about buying a home, feel free to reach out to us. Let’s get to the heart of your home buying needs together.

Staging your home is vitally important to selling it quickly and earning a higher sale price, and it’s all the more important if your home is sitting vacant.  Many sellers falsely assume that a vacant house appears smaller. By bringing in the right kind of furniture and making sure that it’s well placed, however, you can actually make your home appear larger.  The key to staging is to paint a perfect picture of the home’s potential. Too many sellers rely on buyers’ imaginations for this, but in actuality, many buyers don’t see what the seller hopes for in their mind’s eye.  “Staging your home is vitally important to selling it quickly and earning a higher sale price, and it’s all the more important if your home is sitting vacant.” Therefore, it’s up to the seller to aid that buyer’s imagination along through the use of staging, which allows buyers to develop a mental image of themselves enjoying a holiday dinner with their family, entertaining guests, and just living there.   On a related note, the NAR came out with a recent study in which they found that professionally staged homes will sell 79% faster and for 6% more money. On average, home sellers see an 8% return on just a 1% to 3% investment.  We have some outstanding stagers that we’d love to get you in touch with. If you’d like to speak with them and set up a free consultation or you’d like help preparing your home for the market, please give us a call at 201-253-5594 or you can send me an email at Brian@RioloResidentialGroup.com. We look forward to talking to you soon! 

We’re so excited to announce that we’re holding a one-of-a-kind seminar right here at our office on June 25 from 5:30 p.m. to 7:30 p.m. and we’re extending an invitation for you to attend! We’ll feature three special guests including Sue Nickason from Dart Real Estate, Lee Beghani from Gloria Nilson & Company Real Estate, and James Rogan from Advisors Mortgage. All of them will lend their insight and expertise on some wonderful tips and opportunities to purchase property. This is one event you won’t want to miss. You can RSVP here. We look forward to seeing you there!

How does the first quarter of 2019’s Jersey City market compare with 2018? Here are the latest year-over-year numbers: Sold inventory rose 13.28% The median sales price dropped by slightly less than 2% The average sales price fell by just over 1% The average days on market increased, but the absorption rate decreased from 5.3 to 4.5 months “Though there’s been greater stabilization in the market, conditions still favors sellers.” Basically, since there’s more inventory, buyers have a greater opportunity to find a home that fits their needs. Though there’s been more stabilization in the market, conditions still favors sellers. As long as you price your home right and market it correctly, you’ll get the desired result from your sale.  If you’re curious what your home is worth or if you have any other real estate questions, don’t hesitate to reach out to me. I’d be happy to help you.  

Today let’s take a look back on the market over the first four months of 2019 and compare them to the first four months of 2018. Earlier in the year, we predicted that the Hoboken market would stabilize, and comparing the numbers from the first four months of 2019 to those of 2018, it looks as though that prediction is coming true. In Q1 of 2018, we had 92 unsold units. This year, that number is up slightly, with 108 unsold units. “All in all, we’re seeing some great opportunities in our market.” The number of closed units decreased year over year from 250 to 210, though the average sales price went up by 2.79%, and the days on market rose from 41 to 44 days. The absorption rate in our market went from 2.75 months in 2018 to 2.35 months in 2019, which really shows the strength of our current market. For reference, a normal, stable market has between five and six months of inventory available. All in all, we’re seeing some great opportunities in our market. For buyers, there’s more inventory to choose from. For sellers, the market leans in your favor, meaning that you’re in a good position to get your home sold quickly and for a great price. To get the results you want, you just need to put the right marketing plan behind your listing. If you’re interested in selling your home or have any questions about the market, feel free to reach out to us.

As you prepare your home for the market, certain renovations are a must. You want to renovate in ways that will attract buyers without spending excessively (and sometimes unnecessarily).  Here are three renovations you can make that will add value to your home at little cost:  1. Paint your home. By adding a fresh, neutral coat of paint to your walls, you’ll bring greater energy and life to your home. As a bonus, it’ll actually aid you in the decluttering process so your home will be in shipshape for showings.  “After all, first impressions are everything.” 2. Renovate your hardwood floors. If your wood floors are scuffed up or looking a little dull, make sure to repair them and renovate them in such a way that buyers will take notice of and respond positively to them. After all, first impressions are everything, and floors with scuff marks are one of the first things that will catch a buyer’s eye. If your home is carpeted, in most cases, it’s best to remove it and showcase the wood flooring.  3. Ensure your kitchen and bathrooms are show-ready. Data tells us that buyers who do a total rehaul of their kitchen don’t tend to see much of a return on their investment, but making yours look clean and tidy is very important and can be done at low cost.   I hope these three quicks tips gave you some valuable insight into what buyers want to see from your home once it’s on the market. If you’re curious about what else you can do, we do have a list of ten, so feel free to give us a call at 201-253-5594 or send me an email at Brian@RioloResidentialGroup.com. We look forward to talking to you! 

You’re probably aware of the commission you pay an agent during a home sale, but are you aware of what the commission gets you? Here are four things to keep in mind when you hire us for your real estate needs: 1. Real estate agents are marketing specialists. We specialize in marketing your property and getting it seen by the most buyers possible. We put it in the MLS, take professional pictures of your home, send out mailers and ads, create emails, call potential buyers, and much more. There’s a lot that goes into getting your home prepared, and agents handle all of it for you. 2. Agents bring qualified buyers to your home. When we consult a buyer, we go over their wants and needs in order to find if your home is the right fit for them. We also make sure they’ve spoken with a lender already. We handle showings, scheduling, and appointments on your time. “Homes sold by the owner typically stay on the market longer and sell for less.” 3. Agents are expert negotiators. There is a lot of skill involved in negotiating the purchase price, terms, and the contract. We don’t only negotiate with buyers—we deal with appraisers, inspectors, attorneys, and title companies as well. 4. Agents understand contracts. Contracts have a lot of legal writing, and many things may be unclear. We’re here to clarify everything and ensure that important dates are met. Though we’re not allowed to give legal advice, we do make sure that contracts are written correctly. Research shows that homes sold by the owner typically stay on the market longer and sell for less. If you’d like to ensure a quick sale that nets you top dollar, it’s in your best interest to use an agent’s expertise. Whether you’re buying, selling, or looking for more information, feel free to reach out to me. I look forward to hearing from you soon.

So you’ve picked the price you’re comfortable with and your listing has gone live: If you find you aren’t receiving many showings or offers as you should be, your price may need some readjustment. Here are three things you need to analyze in order to make that decision: 1. The feedback you receive. This information is invaluable in illustrating how buyers in the real estate community perceive your home. 2. The number of showings per week. You should be getting two to three showings each week. “If you find you aren’t receiving many showings or offers, your price may need some readjustment.” 3. Whether the showings have procured an offer. You should receive an offer by no later than the 10th showing.  If you’re not seeing these results, it’s time to have a conversation with your agent and see what you can change. Is there a small issue you need to fix, such as a cluttered living area or peeling paint? If it’s something out of your control—your location or the amount of traffic, for example—a price reduction may be unavoidable. By taking a look at the feedback and factors we discussed, you should be in a good position to come up with a new strategy in order to sell your home quickly and efficiently. If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon. 

So the time has come to sell your home. Before you list, however, you’ll need to choose between the three different strategies you can employ when pricing your home for sale. Be careful, though—each of these options will impact the level of exposure you achieve in different ways. Here are the three main ways you can go about pricing your home: 1. Price it above market value. This strategy may have been effective in the past, when sellers had more leverage, but it is now quite risky. You aren’t likely to gain much exposure by listing this way. 2. Price it at market value. This strategy is much more effective than the first in this list. More buyers will likely be drawn to your home, which means your chance of selling will also increase.  “Counterintuitive as it may seem, pricing below market value is a great way to earn top dollar for your listing.” 3. Price it below market value. It may surprise some of you to learn that this strategy is actually ideal. Why? Well, when you price below market value, you gain maximum exposure. And with several interested buyers in the picture, you’ll have the power to negotiate a higher price. Counterintuitive as it may seem, pricing below market value is a great way to earn top dollar for your listing. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

You’re invited to our first homebuyer seminar. It’s going to be held at our office in Hoboken (80 Hudson St.) on February 21 from 6:00 p.m. to 8:00 p.m. We’ll have representatives from the real estate, mortgage, and investment worlds. This is going to be an extremely informative event for you, no matter what your home buying goals are. Make sure you register for the event here, because space is limited.

Today we’re going to give you some tips on how to get your home ready to be photographed when you’re preparing it for sale. This can be a daunting and nerve-wracking process, so here are a few tips to help ease that stress: 1. Ensure your yard is neat and tidy. The outside of the home should look great. All cars should be out of the driveway. 2. Make sure that all trash cans and other items have been removed from your curb, especially in the city. “The outside of your home should look fantastic, too.” 3. Have all of your blinds up. Don’t just have them twisted open—have them fully open so more light comes into the home. 4. Turn all your lights on and all of your fans off. All the lightbulbs should be double checked as well. 5. Declutter. Do this in your kitchen, bathrooms, living room, and more. Also, make sure that all of your beds are made. We hope these tips are helpful to you. If you have any questions for us about getting your home ready for photography or anything else related to real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Now that we’ve entered another new year, it’s time for another market update. This time, we’ll recap the conditions we saw in 2018 and review a few predictions for what might lie ahead. One of the most notable developments we observed in 2018 is the 30% increase in unsold inventory in Hoboken’s condo market. But don’t panic. While the media may attempt to make this seem as if our market is crashing, this isn’t true. We’re actually experiencing some stabilization. For one thing, the average price in our condo market rose 8% in 2018, with the year’s final list-to-sales price ratio closing out at 98%. “Our absorption rate may be less aggressive than in the recent past, but this simply signifies that our market is balancing out.” The main indicator of our market’s health, though, is the absorption rate, which is currently sitting at 3.37 months. It may be less aggressive than the one- to two-month absorption rate we observed earlier on, but this is still a good rate. All it means is that our market has begun to balance out. With this rise in inventory, of course, the time it takes for homes to sell has also risen, with the average days on market going up 25%. This has left us with an average of 34 days. What does all of this mean for you? If you’re a homebuyer, it means you now have more opportunities and leverage than you would have in the recent past. And if you’re a seller, now is the chance to sell your home at peak value. As we move further into 2019, stabilization will continue. Inventory and the number of days on market will continue on their upward trend, but it’s important to realize that all of this is normal. If you’re thinking of buying or selling a home, have any other questions, or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Happy Holidays! In the spirit of the season, our team would like to extend our warmest thanks to all of you for the amazing year we’ve had. Your continued support means so much to us. The success we achieved in 2018 wouldn’t have been possible without you. We look forward to continuing to serve our community and are excited to work with you all in the new year to come. Merry Christmas, Happy Holidays, and Happy New Year!

We’ve been having a lot of conversations lately with people who want to sell their homes, but they are waiting until the day before they want to list to contact us. The challenge here is that it really takes time to get a home ready to list for sale and sell for top dollar. Here’s what the ideal process looks like. First, we’ll want to have a professional designer take a look at your home and determine how we can show it in its best light. It could be something as simple as a pop of color or some furniture rearrangement, or as complex as new windows, paint, or flooring. We want to take the time to make sure your home is presented as perfectly as possible. “Building hype for your home online is an essential step.” Second, we’ll send out our marketing team to make sure they take great photos, great video, and have everything they need to showcase your home online to the highest number of potential buyers possible. While this is all happening, we also want to build hype for your home online. On social media, Zillow, and other websites, we can let people know that the home is coming soon and they should come see it. If you are thinking about selling your home this spring when the market heats up, now is the perfect time to get the ball rolling. If you have any questions or want any advice at all, don’t hesitate to reach out and give me a call or send me an email today. I would love to hear from you soon.  

By now, most of us have seen and felt a lot of changes in the marketplace. Right now, we’re looking at a 3.73-month supply of inventory, which is an increase from the period between 2014 and 2017, where there were only 1.5 months of supply. This is a big rise in inventory and a big change from the strong seller’s market we knew in that period. The current market is still good for sellers, but the shift has changed how we should strategically place your property. We’ve also noticed an increase of expired condo listings in the market. In 2017, there were 44 expired listings. Currently, there are 59 expired listings. “You need to speak with a professional who has their finger on the pulse of the market and who understands how to best present your home in our market.” What does this mean for you? It means that as you’re preparing to list your home in the first quarter of 2019, who you work with really matters. You need to speak with a professional who has their finger on the pulse of the market and who understands how to best present your home to get it sold for the most money possible in the shortest amount of time. Hopefully this information is helpful to you. If you have any questions, feedback, or are in need of an agent who understand the market, please reach out to the Riolo Residential Group.  Until then, enjoy the Thanksgiving holiday season. Cheers!  

Buying a new home is a very exciting time, but it can also be confusing trying to figure out where to begin. So before you purchase your new home, there are a few things you’ll want to do to ensure the process goes smoothly. Here are five steps to keep in mind: 1. Speak with your lender about a budget. You need to understand your budget and know what price point you can actually afford. You don’t want to end up living paycheck to paycheck because you overextended your purchasing power. 2. Determine what features are essential. What must you have and what would you simply like to have? If you can find 80% of what you’re looking for in a home, you’ve most likely found the right one. Draw that line between a necessity and a nice bonus. 3. Research your neighborhood. Take a drive down the street, walk its sidewalks, peruse local shops, enjoy dining experiences, check out schools and churches—get a feel of where you’d be living. “Draw that line between a necessity and a nice bonus.” 4. Pick the right style for you. Are you looking for a charming rowhouse? Do you want an elevator in your building? What about full amenities? These are things to think about when looking for a home that will facilitate your needs. 5. Document your visits. Keeping track of homes and neighborhoods you’ve seen is a great way to weigh out your options. After seeing three or four properties, everything can begin to sort of blend together. Pictures, videos, and notes can help you remember what your experience was. If you have any questions or would like some information, feel free to reach out to us. We’d be more than happy to help and look forward to hearing from you.  

Currently, interest rates are sitting at about 4.77%. Up 1% from where we were last year, this rate is a seven-year high. Home affordability, meanwhile, has reached a 10-year low. However, we believe that the double-digit price increases we’ve seen over the last few years, not the increase in interest rates, are the primary factor behind this drop in affordability. “Supply has dropped, leading to an increase in demand, and, therefore, an increase in price.” It’s a simple matter of supply and demand. Supply has dropped, leading to an increase in demand, and, therefore, an increase in price. All in all, it’s still a fantastic time to sell. Those looking to buy, though, will have a little bit of a harder time due to our fluctuating rates. Even so, buyers who are backed by an experienced, professional agent can still be successful in our market. Just as every market is different, so are the circumstances of every buyer and seller. If you have any other questions, would like more information, or would like to know how we can help you reach your real estate goals, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Today I want to give you three reasons you should list your home this fall instead of waiting until next spring. 1. Less competition. Since all of your neighbors are thinking that they will wait until the spring to list, doing so now will give you more leverage. You will also have a larger pool of buyers to choose from at this time of year. 2. More motivated buyers. Some buyers may have already sold their homes in the summer months and are now in need of a new home before the holidays begin. There are also many people in our area who are relocating and want their children to be acclimated to a new school system as early in the school year as possible. Motivated buyers like these can give you more leverage when negotiating the value of your home. “Motivated buyers can give you more leverage when negotiating the value of your home.” 3. Neighbors have decorated. Your neighborhood will be warm and inviting, with decorations and the red leaves falling off of the trees helping the ambiance. Your neighborhood will make it feel like a home to potential buyers. If you have any questions about this, or if you’re looking to buy or sell, please feel free to reach out to me. I look forward to speaking with you soon.  

You just finished watching a show on HGTV or a video on YouTube and now you want to renovate the kitchen and bathroom in your home. Should you do it yourself, or should you hire a professional? Today I want to talk about the three biggest challenges that you’ll face if you try it on your own: 1. Overestimating your skill and time. It is my job to deal with your home and it is your job to deal with your job and family. You may be able to pick up a lot of information from YouTube videos, but once you start tearing walls apart and dealing with electrical and plumbing work, you really should have a professional on your side. You may be thinking that you can save time and money, but it usually costs you more of each. 2. Underestimating your budget. Everyone goes into a project thinking they are going to spend X amount of money and it rarely ever happens. There are always things that are going to come up. Any contractor will tell you once you open a wall, you do not know where the project will lead. For this reason, it is good to estimate about 20% over what you are expecting so that you can get a grasp on your true budget. 3. Minimizing your timeline. If you want to tackle a project in your new home or before you sell your old one, know that timelines rarely ever work because other things come up in life. Your job, family, etc. all affect your timelines and that project you thought you could finish in four weeks before your family comes to visit may be unrealistic. “You may be thinking that you can save time and money, but it usually costs you more of each.” The final thing you need to remember is that your time is valuable. So, although you may save your money on a contractor, you may spend more overall. If you have any questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.

How do you handle a counteroffer in our market? There are three key points to focus on. First, you need to understand why your offer was countered. If you are a buyer, was your offer priced correctly? If you are in a multiple offer situation, are there contingencies you need to be aware of? Second, remember that knowledge is power when negotiating. Whoever can capitalize on their knowledge will win the bidding situation. If you are a buyer, you need to know why the seller is selling, what condition the property is in, and whether they are looking to buy right away after they sell. If you are a seller, you need to know if the buyer has a lease that is extending or they are looking to sell their home as well. “In a negotiation, knowledge is power.” In either case, make sure you work with a good Realtor because they will be able to understand what is going on behind the scenes and they will be able to gather the data you need to put yourself in the best possible position. Third, know what your response will be. If you are a buyer, are you putting yourself in a position where you will be working every day to pay your mortgage or do you have enough financial leeway to live your life and make updates as needed? As a seller, have you figured out your bottom line and do you know where you can sell your home at? Ideally, you will talk about these things with your Realtor before you enter into negotiations, but they are still crucial to the overall process. As always, if you have any other questions or real estate needs I can help you with, please give me a call or send me an email. I would be happy to speak with you.

A client of mine recently asked me to clarify a few important points on the subject of homeowners associations (or HOAs), so I wanted to share some of this information with all of you today. One of the main things to keep in mind when purchasing property in an HOA is that your home’s square footage will determine the percentage you pay in HOA fees. The type of building you live in will also play a role in how much you can expect to pay. A luxury building will be much different than a row house, for example. But even properties of the same type may have different items and amenities included in the HOA fee, so it’s important to carefully review what you’re paying for before making your move. “It’s important to carefully review what you’re paying for before making your move.” Specifically, you should look into what is included in your utility bill, and also whether you’re paying any insurance on the building. And beyond what’s included in your fees, you should also find out whether the building has plans for assessments or if there are any updates in the works. All of these things will come into play for buyers who are considering a purchase within an HOA. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

The other day I was speaking with a neighbor who had a friend who was looking to sell their home as For Sale By Owner (FSBO). They were asking me to give them ideas and highlight some of the differences between FSBO sellers and those who enlist the help of a Realtor. Here are four reasons why it makes more sense to hire an agent to sell your home: 1. The contract. Buying a home is likely the largest asset you’ll own, and the process of drawing up a contract is extremely important. As Realtors, we study contracts, so we’re well versed in how to write and negotiate them. We also recommend that you hire an attorney to protect you in the process. 2. Marketing. An agent’s marketing will likely be more extensive than a FSBO seller’s marketing. I’m not entirely sure how FSBO sellers market—they might be able to make a flyer and post the listing on a few different sites. But we have an extensive plan that includes hiring a designer, strategic Facebook marketing, Fusion photography, Matterport 3-D tours, phone calls to the neighborhood and high-producing agents, as well as a database of over a thousand people. Do you have time to manage all of those avenues on your own? Probably not, and not all of these outlets are even accessible to people who aren’t agents. “You need someone who knows exactly what’s going on in the market today, how to price your property to get the most exposure, and how to get the most money for your home in the quickest amount of time.” 3. Pricing. Incorrectly pricing your home can be devastating, especially in a changing market. We know Zestimates and other, similar online tools are inaccurate—you need someone who knows exactly what’s going on in the market today, how to price your property to get the most exposure, and how to get the most money for your home in the shortest amount of time. 4. Buyers may take advantage of FSBO sellers. Spending a long time on the market will give your home a stigma, causing buyers to attempt to take advantage of you by lowballing their offers. They know you’re not a professional, so they think they’ll be able to cut themselves a deal. The National Association of Realtors consistently shows that FSBO sellers often make around 18% less than those who sell with the help of an agent. In some cases, that figure can be even more. Our job is to market your property for the most exposure possible so you can get more money in as little time as we can. If you or someone you know is debating about whether or not they should try to sell their home on their own, please reach out to me. We will show you how we do what we do to get homes sold.

The spring selling season is here, so it’s time to decide—will you stay in your current home, or will you sell it and move? Should you stay or should you move now?  Over the last couple videos, we’ve discussed a few key things happening in the market. Interest rates are rising, the median sales price is stable, and we shouldn’t be heading toward a bubble.  There are a lot of situations where quality equity has been built into homes because 20% down payments are a standard in our area. Throughout the nation, large deposits and cash deals are integral in the market.  After you’ve spent all winter on Zillow and other home valuation websites trying to determine what your home is worth, now is the time to decide whether it makes sense for you to move. That’s where we come in.  We’ll ask you a few important questions. For example, when did you buy your home? Did you buy a new construction home recently? If so, have the gains in the market equaled what you need from your home sale? Did you buy before the market crash, or did you buy a foreclosed property when the market started to adjust? These questions will help us determine if there is enough equity for you to take the next step. “Since a 20% down payment is the standard for our area, many homes have built up some quality equity.” We’ll also help you figure out if it makes sense for you to refinance. If you are interested in selling, is your plan to move again in the next three to five years, or are you looking to establish some roots and stay somewhere 20 to 35 years?  You can use our home value tool to get an idea of what your home is worth. We can even come over and see what updates you’ve made to your home in order to tighten up those numbers and see what makes sense for you. If you have any questions about what your home is worth in today’s market or about real estate in general, just give me a call or send me an email. I would be happy to help you!

Over the last few weeks, we’ve seen a steady increase in interest rates. It’s been one of the key notes that keeps coming up with clients at open houses, listing appointments, or showings, so I wanted to talk about it a little bit today. For the first time since last summer, the average interest rate for a 30-year mortgage is above 4%. One of Freddie Mac’s chief economists, Leonard Kiefer, says that he believes we have seen the end of sub-4% interest rates. “Rising interest rates might reduce inventory further.” Mortgage applications have increased by 4.1%, although a key aspect of that is people refinancing their homes. We are also seeing 10% fewer homes on the market nationally. Here in Hoboken, we’ve seen a 3.92% decrease in active inventory compared to this time last year according to the Hudson County MLS. Rising interest rates might reduce inventory further, as sellers will lose some incentive to sell their home and purchase a new one. With that said, there are still a bunch of great homes hitting the market, and we still have less than a three-month supply of inventory, which is great for sellers. If you have any other questions about rising interest rates or buying or selling a home, just give us a call or send us an email. We would be happy to help you!  

In our last video, we mentioned that the average list-to-sales price ratio is just over 100%. That means a lot of people are ending up in multiple offer situations and bidding wars. For buyers, especially first-time buyers, it’s important that you know what to expect and how to best position yourself to win in a multiple offer situation. There are a number of factors to consider, such as your asking price, your contingencies (like inspections and appraisals), and even something as small as including a personal letter to a seller. Work with a knowledgeable, professional agent like me to guide you to the right strategy. “Work with a knowledgeable, professional real estate agent who will guide you to the right strategy.” As a seller, it’s very important to understand what’s going on in the market and position your property perfectly for this situation. If you price your home too high and the home sits on the market for too long, people start to wonder what’s wrong with it. The average days on market in our area is 28 days. If you price your home at or below market value, then you are in the best position to get as many eyeballs on your property and get as many offers as you can. That way, you can get the best sale price for your home. To discuss which strategy would be best for you, just give me a call or send me an email. I would be happy to help you!

All numbers/sources are from Hudson County MLS We’ve received a lot of questions about what’s going on with taxes and how they will affect the market. We’ve also gotten a lot of questions about interest rates. Rates have been increasing over the last few weeks, and we anticipate that the Fed will raise rates soon. So, how has the Hoboken real estate market doing so far in 2018? In January, we had 131 active condos on the market, with 65 going under contract in the last 30 days. That gives us an absorption rate of just over 2%, which means that if nothing new hit the market, we would be out of inventory in two months. “The list-to-sales price ratio is just over 100%.” Over the course of last month, 48 homes closed. The average sales price is $856,281, and the median sales price is $767,500. The average days on market is 32 days, and the median days on market is 26 days. Once homes are under contract, the list-to-sales price ratio is just over 100%, so we are continuing a strong trend here. As of right now, there is nothing but positive results in our market. I hope you found today’s market update helpful. Next time, I’ll go over what you need to know about bidding wars. In the meantime, if you have any other real estate questions, just give me a call or send me an email. I would be happy to help you!

My team and I often hear from people who want to buy a home but are afraid they can’t afford the down payment. If this sounds like you, I’d like to offer you some advice. Today, I’ll be sharing 10 tips to help you save for your down payment. 1. Set a target goal. Talk with your accountant and a mortgage representative so that you can put together a plan to meet that goal. 2. Assess your spending habits. The new year is a great time to reflect on where exactly your money is going. Once you really look at your habits, you’re likely to find that there are several ways you could be cutting back. 3. Shrink your TV package. A great way to save money is by considering affordable alternatives to your current plan. Streaming services are a great option. 4. Drop the gym membership. A run around the block will be a lot cheaper than paying an expensive monthly fee. You don’t need to visit a gym to work out. 5. Sell some items. You would be surprised how many items in your home you would be willing to part with. Even selling small items can really add up. “Once you really look at your habits, you’ll see that there are several ways you could be cutting back.” 6. Downsize. If you’re in a position to do so, the switch to a more compact home could help you save. 7. Get a second job. If you have the time to take on another job, the extra paycheck will really help. 8. Get high-yield checking and savings accounts. Doing this will help you make money on your money. 9. Get cash back on your credit cards. There are a ton of cash-back options that can help you earn a little extra while you spend. 10. Save your tax refund. When you get your tax refund, don’t go out and spend it all. You should be saving your tax refund instead. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How can you get a fresh start for 2018? I do a lot of coaching with Tom Ferry, and one thing he always stresses is to find your “why.” Whether it’s business-related or personal, find out what motivates you and keeps you going every day. Within that, you have to set both long-term goals and short-term goals. What are the little steps you’ll take every day, every week, and every month to achieve those goals? Make those goals visual—have them in front of you so you have something to strive for and you see them every day. Our brain is like a sponge—you don’t want to leave it sitting on the shelf, you want to keep it saturated. Read books and find something that will motivate you and help guide you down the path you’re looking to go. “What is the legacy you want to leave at the end of the day?” Ask yourself: What is the legacy you want to leave at the end of the day? Whether it’s with your family or career, at the end of the day, what is it that you want people to say about you? In that regard, who you spend time with is extremely important. There’s a famous Jim Rohn quote I’d like to share with you that applies to this principle: “You are the average of the five people you spend the most time with.” Make sure you’re spending your time wisely. In the meantime, let us know what you’re doing and what motivates you. If you have any questions or there’s anything we can help you with, don’t hesitate to reach out to us. We’d love to help you and keep you on track.

Recently, someone asked me, “What questions should I be asking before purchasing a home?” I believe there are three main questions that you should focus on. 1. What is the offering price based on? Make sure that your Realtor has a good idea of the market and that they have run the correct comps. That way, you are making your offer price based on what other homes in the neighborhood have sold for and current market conditions. 2. Ask about the home’s condition. If the home has been renovated, what are renovated homes selling for in the area? If the home has not been renovated, does the price reflect that? Also, I recommend getting an idea of what it would cost to renovate the home yourself. Talk to a professional to see what those costs would be. “The location of the home will definitely impact its value.” 3. Ask about the location of the home. Are you on the waterfront? Do you have a city view, a western view, or are you looking right into your neighbor’s house? Is the house close to schools and parks? The placement of the house in a building or town can have a huge impact on the home’s value. Is the property a three-floor walkup? Is it a single-family home on a corner lot? There are a lot of key factors that go into buying a home and writing the best offer. It’s important that you have a Realtor on your side who knows the market and its intricacies to help you make the best decisions moving forward. If you have any other questions about buying a home or about real estate in general, give me a call or send me an email. I would be happy to help you!

I’ve been getting a lot of great feedback from a lot of you recently, so I wanted to take some time to answer a few of the most common questions I keep seeing. Here are five important questions with five (equally as important) answers. 1. What are closing costs and who pays them? Closing costs are paid by both the buyer and the seller. They include, but are not limited to, title fees, insurance fees, HOA dues, attorney fees, and escrow application fees. 2. What is a contingency? Essentially, it’s a get out of jail free card for the buyer. One of the most common contingencies out there is the home sale contingency. This is something buyers use when they need to sell their current home in order to afford the purchase of a new one. In an aggressive market like ours, you will actually see people waive certain contingencies, such as the appraisal and inspection contingencies. “Whether you buy or rent, you’re paying a mortgage.” 3. Should I buy or rent a home? Either way, you’re going to be paying a mortgage. You might as well pay your own and start building towards your retirement. With low rates right now, there is a great opportunity to take advantage of a low interest rate. 4. Do I need to be there for the home inspection? If you’re a seller, no. If you’re a buyer, absolutely. You don’t want anything to get lost in translation between you, your agent, and the inspector, so being there is very important. 5. What kind of credit score do I need to buy? Anything over 700 is good, but there are plenty of loan programs out there for those with lower scores. If you have any additional questions for me or need any help buying or selling a Hoboken home, give me a call or send me an email. I look forward to hearing from you soon.

Thanksgiving is almost here. We wanted to take just a moment to express our gratitude for everyone who has allowed us to help them achieve their real estate goals. In the last year, 60% of our business came from referrals so we also want to thank you for trusting us to help your family and friends. Without you, our business wouldn’t be what it is today. To see our full holiday message, watch this short video. “60% of our business has come from referrals”

Once you’ve decided that it’s time to list your home, it’s time to find the right listing agent. It’s important that the person you hire is someone you trust. After all, your home is one of your largest assets, if not the largest.  To gain that degree of trust, an agent must be concerned first and foremost with you and your family. Steer clear from a Realtor who only brags about themselves or their agency. It’s important that the person you hire is successful of course, but you want your agent to leave their ego at the door to focus on what you need and what you expect from the transaction. “Look for an agent with the heart of a teacher.” Look for an agent with the heart of a teacher, who comes in prepared to explain the current market and is patient enough to take the time to talk you through everything. If you’re looking for an agent who is going to put you and your needs first, look no further. If you have any questions or if you’re thinking about buying or selling, don’t hesitate to give me a call or send me an email. I would love to hear from you.

What are closing costs? How much are they? According to a recent survey of 1,000 first-time homebuyers by Closing Corp, 17% of buyers were unaware of closing costs and 35% were unaware of the actual dollar volume that came with them. Some of the factors involved in closing costs that surprised people were mortgage insurance, points, and taxes. In our area, if you’re buying in a condo market, you’ll see associations asking for three, four, or five months of HOAs up front. “Closing costs typically account for 2% to 5% of your overall sale price.” According to Freddie Mac, closing costs typically account for 2% to 5% of your overall sale price. This can be a large amount of money, and it’s why we sit down with our buyers before we look at properties with them to make sure we go over everything step by step and they know everything that’s involved with the home buying process. It’s important to speak with a lender before viewing any properties so you know what you’ll have to pay out of pocket for your down payment and your closing costs. If you have any further questions about closing costs or how to navigate the home buying process, don’t hesitate to give me a call or send me an email. I’d be happy to help you!

Recently I was able to sit in on a meeting with Greg Schwartz, the Chief Business Officer for Zillow. With all of his experience, connections, and knowledge, Schwartz’s input very much aligned with how my team and I want to run the real estate process for you. The age of the discount business model has peaked. When it comes to customer satisfaction, Realtors are toward the bottom of the list. Discounting has not equated to satisfaction or substantial market shares. “Simply put, you deserve better experiences.” For example, consider Amazon. Right now, 60% of U.S. households have an Amazon Prime account while 70% have cable TV. Amazon hasn’t reinvented the wheel. They run your card like any other business, and don’t offer particularly low prices. However, Amazon has made a business that is streamlined. Their business is predictable and consistent, which is what we really want. This is exactly the kind of process we want to bring to you. We have a persona-driven process where the flow of information is easy for you to understand. The flow of our real estate transaction is mapped out and we want to eliminate the stress involved in this process for you. This economy is highly concerned with the “ease of flow,” and we want to ensure that this translates to you and the service you receive. Simply put, you deserve better experiences.   If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

When people buy a home, a number of factors will influence their decision, including the home’s look, the number of bedrooms, the style of building, and what amenities come with the building. Child-related amenities are also important factors—is the school within walking distance, as well as any parks or similar facilities? A lot of people may not realize this as they look through the history of Hoboken being a popular spot for pub-crawling students out of college, but the community has become much more family-friendly in recent times. “Hoboken receives high scores for walkability, restaurants, and nightlife.” New construction and Quality Public and Charter Schools have encouraged families with kids to move to the area—here, schools for younger children are free to. In Hoboken Children ages 3 and up can enroll for a free highly praised Public education. Additionally, Hoboken receives high scores for walkability, restaurants, and nightlife. People come from the New York area to take advantage of the city’s schools to save money— private schools can cost thousands of dollars elsewhere. If you have any questions or topic ideas for future videos feel free to contact us. We look forward to hearing from you!

Is now the right time for you to sell your home? A lot of our clients are asking if they should sell now or wait until next year. So, how do you know when it’s a good time to put your home on the market? Harvard just completed their 2017 State of the Nation Housing Study and concluded that, for the fourth year in a row, national sales inventory has dropped. A normal, steady absorption rate is 6%. Nationally, sales inventory is at 3.6%. Locally, we’re at about 2% to 2.5%, which is an increase from the end of 2016, when we only had a 1.5% absorption rate. The absorption rate determines whether we are in a buyer’s, seller’s, or neutral market. Theoretically, with a 2% absorption rate, if no new homes came on the market, we would run out of inventory in just two months. Not only that, fewer homes have been built over the past 10 years. In fact, there are fewer new construction homes than at any 10-year period in recent history, since the 1970s. “The data shows that now is the best time to sell your home.” Homeownership has also declined for the last 12 years. The homeownership rate finally flatlined last year and now, it’s starting to increase. The National Association of Realtors has also found a steady rise in buyer demand. The main challenge for homebuyers is there are not enough homes on the market. Many of them have a difficult time finding one they want to purchase. Inventory is starting to creep up a little bit and, with more increases looming on the horizon, the numbers certainly indicate that now is the best time to sell your home. Of course, every situation is different. If you have any questions about selling your home in the current market, just give me a call or send me an email. I would be happy to help you.

Lately, a lot of people are asking, “Are we approaching another real estate bubble?” Here in Hoboken, the market trends are not pointing to another bubble. Right now, there is enough equity built into homes that we should be able to sustain any interruption in the market or any decrease in pricing. Historically, real estate trends on a seven-year scale. Since we are reaching the latter end of the scale, it makes sense that we’re starting to see a bit of a slowdown in the market, as well as an increase in the absorption rate this year as opposed to last year. In the higher end of the market, specifically above the $1.25 million price point, properties are staying on the market longer and the list to sales price ratio has gone down over the last year and a half. We are starting to see a similar trend in the higher hundred-thousand dollar price range, too. “In the higher end of the market, we are seeing a bit of a slowdown.” Interest rates will also play a major part in our market for the next six months to a year. The Fed is expected to raise rates again in the third quarter. However, positive job numbers should ease off some of the bond buying in our market. There has been a slight uptick in inventory. Due to a huge build up in rental properties along River Road and in downtown Jersey City, investors and landlords have seen a negative impact on their bottom line, as some of these investors have had to lower their rental prices. That said, every situation is different. If you have any questions about buying, selling, or investing in our market, just give us a call or send us an email. We would be happy to help you!