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