1. Weichert, Princeton Office
March 2013 Market Update/
Forecast Seminar
Offers analysis of the Princeton &
Greater Princeton, NJ real estate
markets & effective strategies to
buy and sell.
7. Unsold I nventory from t he MLS in Weichert Market Areas
November 2004 thru November 2010 * added Waters & Williams Region to Totals
11/ 13/ 06 11/ 12/ 07 11/ 17/ 08
11/ 15/ 04 11/ 14/ 05 11/ 16/ 09 11/ 15/ 10
84,621 88,414 84,942
31,676 41,156 77,985 92,096
25,000
20,000
Variance % 2010 to 2009
NY (Ashby) +13.11%
CT (Doepper) +118.53%
Passaic/Hudson/Bergen NJ (Bixon) +5.86%
Western Central NJ/Lehigh Valley PA (McDonald) +6.78%
15,000
Northern and Central NJ (Prevete) +9.24%
Eastern Central/Shore Points NJ (Waters) +10.63%
Southern NJ (Williams) +10.87%
10,000
5,000
0
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ASHBY TOTAL DOEPPER TOTAL BIXON TOTAL MCDONALD TOTAL PREVETE TOTAL WATERS TOTAL WILLIAMS TOTAL
In our local area (CT/NY/NJ Lehigh Valley, PA), the number of homes for sale (Weichert
and non-Weichert listings) has steadily increased over the past four years.
9. 2012: State of the Market
Affordability
will
Spur Recovery
10. Affordability Index
Definition: A measure of the financial ability of US
Families to buy a house. 100 means that families
earning the national median income have just the
amount of money needed to qualify for a mortgage
on a median priced home.
Higher than100 means they have more than enough.
Lower than 100 means they have less than enough.
Source: NAR Housing Affordability Index 1971 to 2010
24. Fiscal Cliff Legislation ~ Good For Real Estate
• Mortgage Cancellation Relief is extended for one
year to January 1, 2014.
• Deduction for Mortgage Insurance Premiums for
filers making below $110,000 is extended through
2013 and made retroactive to cover 2012.
• The 10% tax credit (up to $500) for homeowners for
energy improvements to existing homes is extended
through 2013 and made retroactive to cover 2012
25. Fiscal Cliff Legislation ~ Good For Real Estate
• The tax exclusion for gains on the sale of a principle
residence remains in effect for sellers whose income
is above $450,000 (for those filing a joint return).
• Continuation of Mortgage Interest deduction on
Federal Income Taxes.
26. 2013 Economic Indicators
GDP Growth: 2% growth in 2013, about the same as last year
Interest Rates: Little or no increase in short-term rates in
2013
Inflation: Rising slightly this year, to about 2.3%
Business Spending: About a 4% gain in 2013
Unemployment: Falling gradually over 2013 to around 7.5%
Housing: Up 8% in 2012; helping GDP in 2013
Energy: Crude oil holding steady at $90-$95/barrel through
early spring
Consumer Confidence: Rising this winter.
27. NAR 2013 Projections
• Affordability Index a record high in November
2012 at 194 projecting 160 for 2013.
• Total Sales projecting 5.08 Million or 8.5%
increase in 2013.
• New Home Sales projecting 533,000 in 2013 a
46% increase.
• Average Home Sales Price $185,800 or 4.2%
increase in 2013.
*Source: NAR News Release 12/20/12
29. February 2013 Real Estate Headlines
From Lawrence Yun, NAR chief economist. [NAR Release 2/11/13]
• “Unsold listing inventory is the lowest level in 12 years.”
• “In fact, buyer traffic is 40 percent above a year ago.”
• “Total housing inventory at the end of January fell 4.9
percent…which represents a 4.2 month supply. It’s the
lowest housing supply since April 2005.”
31. February 2013 Real Estate Headlines
6.0% 5.5%
Year-over-Year Change in Prices
4.3%
4.0% Increase of 3.6%
7.3% 2.0%
2.0%
Jan for 2012 Apr
Feb Mar 1.1%
May
0.6%
0.0%
-0.5%
Jun Jul Aug Sep Oct Nov
-2.0% -1.7%
-2.5%
-4.0% -3.5%
-3.9%
-6.0%
S&P Case Shiller 2/2013
32. Spring 2013 Market Conditions
• Dramatically reduced listing inventory levels.
• Multiple Offers on the vast majority of houses
going under contract.
• Homes selling fast.
• Heavy buyer demand especially in the more
popular neighborhoods and price points.
33. Why is This Happening?
• Improved job market
• Fiscal Cliff behind us
• Consumer Affordability and stronger
consumer confidence
• Post election pent up demand
• Low interest rates
• Overall positive real estate industry news
• Wasn’t the world suppose to end on 12/21/12
according to the Mayan calendar?
39. Mercer County Housing Permits 2012
Single- Single- Two- Two- 3-or-4- 3-or-4- 5-or-More 5-or-More
Total Family Family Family Family Family Family Family Family
Mercer Units Units Value Units Value Units Value Units Value
East Windsor township 27 27 5,264,144 0 0 0 0 0 0
Ewing township 85 3 2,378,118 4 4,000 3 55,000 75 6,603,330
Hamilton township 31 22 3,285,541 2 150,000 0 0 7 114,762
Hightstown borough 3 3 411,900 0 0 0 0 0 0
Hopewell borough 0 0 0 0 0 0 0 0 0
Hopewell township 68 8 3,115,896 0 0 0 0 60 5,779,000
Lawrence township 2 2 383,650 0 0 0 0 0 0
Pennington borough 0 0 0 0 0 0 0 0 0
Princeton borough 8 6 2,998,400 2 474,527 0 0 0 0
Princeton township 14 14 6,938,120 0 0 0 0 0 0
Robbinsville township* 85 0 10,021 4 329,000 0 0 5 9,156
Trenton 9 21 5,188,122 0 0 0 0 64 5,411,451
West Windsor township 115 6 1,262,785 0 0 0 0 109 7,729,428
Mercer County Total 447 112 31,236,697 12 957,527 3 55,000 320 25,647,127
Source: Census
40. Long Term Supply …
Source: NAR, November 2008 Forecast
Richardson Commercial
41. Long Term Demand …
Source: NAR, November 2008 Forecast
http://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf
42. 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
43. 1. You Understand the Local Market
That You are Buying into or Selling
out of…
-Inventory
- Location
- Sales Patterns
- Neighborhood, Location
- Style of Home, Beds, Baths, etc
44. Market Absorption Scale
(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.
45. Absorption Rate
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.
46. 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.
47. 47
Market Scale for Supply & Demand
High Supply/Low Demand Low Supply/High Demand
Normal
1
Market Absorption in Months
Weichert has been
2 studying market
conditions for more than
3 3 decades and has found a
direct correlation between
4
market absorption and
5 property values.
Normal
6 As absorption rates
7 increase beyond a normal
market level of 5-6
8 months, property values
depreciate annually.
9
Note: This Market Scale is valid
10 only for absorption rates
between 1 and 12 months.
11
12
48. 3/26/12
Towns Active Pending Absorption New Listings Net Gain Listings % of Expired W/drawn Closed
Listings in Last Rate in in 30 Days (Loss) to Reduced in Invent. Listings Listings Listings
30 Days Months Market 30 Days Reduced
West
Windsor:
119 25 4.8 47 22 18 15.1% 2 3 13
All Styles
West
Windsor
13 3 4.3 6 3 1 7.7% 0 1 8
Condo/
T.Houses
West
Windsor
11 2 5.5 4 2 _ _ 0 0 1
55+
West
Windsor
95 20 4.8 37 17 17 17.9% 2 2 4
Single
Family
Lawrence:
All Styles
192 20 9.6 51 31 47 24.5% 5 8 9
Lawrence:
Condo/
55 8 6.9 17 9 21 38.2% 2 2 5
THouses
Lawrence:
55+
14 1 14 2 1 _ _ 0 1 1
Lawrence:
Single
123 11 11.2 32 21 26 21.1% 3 5 3
49. 3/19/13
Towns Active Pending Absorption New Listings Net Gain Listings % of Expired W/drawn Closed
Listings in Last Rate in in 30 Days (Loss) to Reduced in Invent. Listings Listings Listings
30 Days Months Market 30 Days Reduced
West
Windsor: 64 28 2.3 26 (2) 13 20.3% 2 0 16
All Styles
West
Windsor 7 7 1.0 3 (4) 1 14.3% 1 0 6
Condo/
T.Houses
West
Windsor 7 2 3.5 2 0 _ _ 1 0 3
55+
West
Windsor 50 19 2.6 21 2 12 24.0% 0 0 7
Single
Family
Lawrence:
All Styles 148 15 9.9 42 27 27 18.2% 8 1 18
Lawrence:
Condo/ 40 7 5.7 11 4 8 20.0% 4 0 9
THouses
Lawrence:
55+ 9 1 9.0 3 2 _ _ 1 0 2
Lawrence:
Single 99 7 14.1 28 21 19 19.2% 3 1 7
Family
50. 3/26/12
Towns Active Pending Absorption New Net Listings % of Expire W/drawn Closed
Listings in Last Rate in Listings in Gain Reduced Invent. d Listings Listings
30 Days Months 30 Days (Loss) in 30 Reduced Listing
to Days s
Market
Plainsboro
All Styles
82 17 4.8 25 8 15 18% 11 0 13
Plainsboro
Condo/
38 8 4.75 14 6 7 18% 9 0 6
THouses
Plainsboro
55+
14 3 4.6 1 (2) 1 7% 0 0 1
Plainsboro
Single
30 6 5 10 4 7 23% 2 0 6
Family
Cranbury:
All Styles
18 2 9 2 0 2 11% 0 0 3
51. 3/19/13
Towns Active Pending Absorption New Net Listings % of Expire W/drawn Closed
Listings in Last Rate in Listings in Gain Reduced Invent. d Listings Listings
30 Days Months 30 Days (Loss) in 30 Reduced Listing
to Days s
Market
Plainsboro
All Styles
59 16 3.6 22 6 8 14% 6 0 14
Plainsboro
Condo/
27 9 3 10 1 2 7% 5 0 6
THouses
Plainsboro
55+
12 2 6 1 (1) 0 0 0 0 5
Plainsboro
Single
20 5 4 11 6 6 30% 1 0 3
Family
Cranbury:
All Styles
14 3 4.6 4 1 2 14% 1 0 1
52. 3/26/12
Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed
Listings in Last Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings
30 Days Months 30 Days Market 30 Days Reduced
Ewing:
All Styles
250 14 18 55 41 44 18% 12 7 18
Ewing :
Condo/
30 0 999 8 8 6 20% 1 1 1
T.Houses
Ewing
55+:
14 0 999 2 2 --- --- 0 0 1
Ewing:
Single
206 14 15 45 31 38 18% 11 6 16
Family
East
Windsor:
193 18 11 40 22 38 20% 20 3 12
All Styles
East
Windsor:
110 8 14 22 14 17 15% 11 2 7
Condo/
Thouses
East
Windsor:
13 2 6.5 3 1 --- --- 4 0 1
55+
East
Windsor:
70 8 9 15 7 21 30% 5 1 4
Single
Family
53. 3/19/13
Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed
Listings in Last Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings
30 Days Months 30 Days Market 30 Days Reduced
Ewing:
All Styles
190 25 8 38 13 32 17% 19 1 12
Ewing :
Condo/
28 4 7 8 4 5 18% 2 1 3
T.Houses
Ewing
55+:
3 2 1.5 0 -2 --- --- 3 0 1
Ewing:
Single
159 19 8 30 11 27 17% 14 0 8
Family
East
Windsor:
140 21 7 32 11 22 16% 6 3 15
All Styles
East
Windsor:
69 14 5 13 -1 13 19% 5 2 7
Condo/
Thouses
East
Windsor:
8 0 999 2 2 --- --- 0 0 1
55+
East
Windsor:
63 7 9 17 10 9 10% 1 1 7
Single
Family
54. 3/26/12
Towns Active Pending Absorptio New Net Gain Listings % of Expired W/drawn Closed
Listings in Last n Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings
30 Days Months 30 Days Market 30 Days Reduced
Hopewell
Twp. 137 9 14.67 34 25 20 14.5% 3 4 15
All Styles
Hopewell
Twp. Condo/ 11 2 5.5 2 0 4 36% 0 2 0
T.Houses
Hopewell
Twp.: 11 0 99 5 5 - - 0 0 1
55+
Hopewell Twp
Single Family 140 7 20 27 20 16 14% 3 2 14
528 72 7.33 118 46 121 23% 19 11 50
Hamilton: All
Styles
101 25 4.04 8 -17 28 28% 6 3 5
Hamilton:
Condo/ THouses
33 3 11 8 5 - - 3 0 3
Hamilton:
55+
394 44 8.9 102 58 93 23.6% 10 8 42
Hamilton:
Single Family
55. 3/19/13
Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed
Listings in Last Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings
30 Days Months 30 Days Market 30 Days Reduced
Hopewell
Twp. 143 13 11 47 34 16 11.2% 8 2 7
All Styles
Hopewell
Twp. Condo/ 8 5 1.6 6 1 1 12.5% 7 0 0
T.Houses
Hopewell
Twp.: 3 0 99 2 2 -- -- 0 0 0
55+
Hopewell Twp
Single Family 132 8 16.5 39 31 15 11.4% 1 2 7
Hamilton: All
Styles 422 57 7.4 116 59 55 13% 23 13 49
Hamilton:
Condo/ THouses 82 8 10.3 18 10 1 12.5% 3 3 10
Hamilton:
55+ 25 7 3.6 7 0 -- -- 1 0 2
Hamilton:
Single Family 315 42 7.5 91 49 54 17.1% 19 10 37
56. 3/26/12
Towns Active Pending Absorption New Net Gain Listings % of Expired W/draw Closed
Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings n Listings
30 Days Months 30 Days Market in 30 Reduced Listings
Days
Princeton Boro:
All Styles 42 2 21 14 12 8 19% 0 2 1
Pton -Boro
Condo/ Thouses 20 1 20 4 3 5 25% 0 2 1
Pton-Boro
Single Family 22 1 22 10 9 3 13.6% 0 0 0
Pton Twp: All
Styles 127 11 11.5 42 31 14 11% 1 0 10
Pton Twp:
Condo/ Thouses 21 2 10.5 8 6 1 4.6% 0 0 3
Pton Twp:
Single Family 106 9 11.8 34 25 13 12.3% 1 0 7
57. 3/19/13
Towns Active Pending Absorption New Net Gain Listings % of Invent. Expired W/drawn Closed
Listings in Last Rate in Listings in (Loss) to Reduced Reduced Listings Listings Listings
30 Days Months 30 Days Market in 30
Days
Princeton:
All Styles 129 18 7.2 36 18 15 11.6% 4 4 9
Princeton:
Condo/ Thouses 31 2 15.5 8 6 4 12.9% 1 1 3
Princeton:
Single Family 98 16 6.1 28 12 11 11.2% 3 3 6
58. 3/26/12
Towns Active Pending Absorption New Net Listings % of Expire W/draw Closed
Listings in Last Rate in Listings in Gain Reduce Invent. d n Listings
30 Days Months 30 Days (Loss) d in 30 Reduced Listing Listings
to Days s
Market
South
Brunswick 328 14 23 47 33 38 12 17 2 23
All Styles
South
BrunswickCon
do/ T.Houses
80 5 16 23 18 13 16 9 0 8
South
Brunswick 33 1 33 1 0 2 6 0 0 1
55+
South
Brunswick 215 8 27 23 15 23 11 8 2 14
Single Family
Monroe:
All Styles 432 20 22 111 91 67 16 3 0 3
Monroe:
55+ 319 15 21 74 59 41 13 0 0 3
Monroe:
Single Family 173 5 35 37 32 26 15 3 0 0
59. 3/19/13
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
South
Brunswick 171 13 13 48 35 7 4 18 2 12
All Styles
South
BrunswickCon
do/ T.Houses
62 9 7 18 9 5 8 3 0 5
South
Brunswick 30 1 30 5 4 -9 -30 5 1 1
55+
South
Brunswick 79 10 7.9 24 21 11 14 10 1 6
Single Family
Monroe:
All Styles 427 32 13 108 76 40 9 26 3 71
Monroe:
55+ 268 25 26 70 45 25 9 16 1 52
Monroe:
Single Family 159 7 22 38 31 15 1 10 2 19
60. 3/26/12
Towns Active Pending Absorption New Net Gain Listings % of Expired W/draw Closed
Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings n Listings
30 Days Months 30 Days Market in 30 Reduced Listings
Days
Montgomery
All Styles 144 23 6.3 47 +24 16 11% 8 4 11
Montgomery
Condo/Twnhms 21 1 21 7 +6 4 19% 2 0 3
Single Family
123 22 5.6 40 +18 12 10% 6 4 8
Hillsborough
All Styles 265 36 7.4 84 +48 52 20% 16 12 9
Hillsborough
Condo/Twnhms 98 10 9.8 27 +17 19 19% 6 3 3
Hillsborough
Single Family 167 26 6.4 57 +31 33 20% 10 9 6
61. 3/19/13
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
Montgomery
All Styles 112 15 7.5 26 +11 14 12% 3 1 11
Montgomery
Condo/Twnhms 14 5 2.8 4 -1 1 7% 0 0 0
Single Family
98 10 9.8 22 +12 13 13% 3 1 11
Hillsborough
All Styles 167 39 4.3 42 +3 22 13% 5 2 15
Hillsborough
Condo/Twnhms 60 16 3.7 13 -3 14 23% 2 1 5
Hillsborough
Single Family 107 23 4.6 29 +6 8 7% 3 1 10
62. 62
Market Scale for Supply & Demand
High Supply/Low Demand Low Supply/High Demand
Normal
1
Market Absorption in Months
Weichert has been
2 studying market
conditions for more than
3 3 decades and has found a
direct correlation between
4
market absorption and
5 property values.
Normal
6 As absorption rates
7 increase beyond a normal
market level of 5-6
8 months, property values
depreciate annually.
9
Note: This Market Scale is valid
10 only for absorption rates
between 1 and 12 months.
11
12
66. Sample Market Absorption Rate
Anytown., NJ
107 current active listings 24.3
= months
absorption
4 reported sales in last 30 days
rate
Market Absorption Rate is the Absorption Rate indicates to normal current inventory of
5-6 Months Market number of months it will take a sell the market.
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
67. Market Absorption Rate
West Windsor
Single Family Homes
$600,000 - $800,000
22 current active listings 2.2 months
= absorption
10 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
68. Market Absorption Rate
West Windsor
Condos/ Townhouses
7 current active listings 1 months
= absorption
7 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
69. Market Absorption Rate
Robbinsville
Condos/ Townhouses
33 current active listings 3 months
= absorption
11 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
70. Market Absorption Rate
South Brunswick
Condos/ Townhouses
56 current active listings 6.2 months
= absorption
9 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
71. Market Absorption Rate
South Brunswick
Condos/ Townhouses
In Princeton Walk
2 current active listings 1 months
= absorption
1 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
72. Market Absorption Rate
Plainsboro
Townhouses
12 current active listings 3 months
= 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
73. Market Absorption Rate
Princeton Single Family
$500k - $800k
19 current active listings 3.8 months
= absorption
5 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
74. Market Absorption Rate
Princeton Single Family
$1.0-$1.5 million
19 current active listings 9.5 months
= absorption
2 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
75. Market Absorption Rate
Princeton Single Family
$2.5 million +
16 current active listings 99* months
= absorption
0 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
77. 2006 – 2012…
‘I don’t want to buy a house and
then watch it drop in value!’
78. Purchase Price $329,000 Loan Amount $317400
Down Payment $11,515 Monthly P&I $1802
Appreciation/Depreciation Home Value
1st Year -3% $319,130
2nd Year 0% $319,130
3rd Year 1% $322,321
4th Year 3% $331,990
5th Year 5% $348,590
5 Year Appreciation/Depreciation $19,500
Vs Paying Rent @
Tax Benefit $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 Gain $44,200 v Pay Rent
79. Purchase Price $329,000 Loan Amount $317400
Down Payment $11,515 Monthly P&I $1802
Appreciation/Depreciation Home Value
1st Year 5 $319,130
2nd Year 3% $319,130
3rd Year 2% $322,321
4th Year 2% $331,990
5th Year 2% $348,590
5 Year Appreciation/Depreciation $48,590
Vs Paying Rent @
Tax Benefit $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 Gain $73,529 v Pay Rent
80. + The Amortization Schedule on
a Loan
Yearly Schedule of Balances and Payments
Beginning Cumulative Cumulativ Ending
Year Payment Principal Interest
Balance Principal e Interest Balance
2010 $315,646.96 $21,625.92 $4,374.96 $17,250.96 $6,128.00 $24,508.72 $311,272.00
2011 $311,272.00 $21,625.92 $4,621.30 $17,004.62 $10,749.30 $41,513.34 $306,650.70
2012 $306,650.70 $21,625.92 $4,881.98 $16,743.94 $15,631.28 $58,257.28 $301,768.72
2013 $301,768.72 $21,625.92 $5,157.36 $16,468.56 $20,788.64 $74,725.84 $296,611.36
2014 $296,611.36 $21,625.92 $5,448.28 $16,177.64 $26,236.92 $90,903.48 $291,163.08
81. Appreciation (conservitive): $19,500
+
Amortization: $20,109
+
Tax Benefit of Home Ownership $25,000
+
Low Interest Rates: $5000
___________________
total 5 year gain = $69,609
82. Market Absorption Scale
(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.
86. Escalation Clause Dialogue
What is an escalation clause:
“An escalation clause is simple
language we include in your offer that
authorizes your predetermined bid
increments over all of the other bids
up to your maximum purchase price.”
94. 3. ‘I am going to wait
until the price comes
down further and then
make an offer/ if I lower
my price I will get lower
Source: MLS
bids…?
95. Don’t Wait
Hopewell Twp: 82%
Homes currently Under Contract:
17
Under contract within 30 days of
Listing at the Right Price or Re-positioning in line with the market :
14
Princeton 63%
Homes currently Under Contract:
19
Under contract within 30 days of
Listing at the Right Price or Re-positioning in line with the market :
12
96. Don’t wait…
2/13/13 Listed at $614,999. No offers…
3/12/13 Reduced to $599,000….three offers.
97. It’s About Price
Sellers, if your listing hasn’t gone under contract
in the last 30 days and the price is not adjusted
it will not go under contract in the next 30.
If the home your buyer wants has not had a
price adjustment in the last 30 days it is the
perfect time to go face to face with the seller to
negotiate!
98. Financial Benefits and Process of
Home-Ownership.
Richard Moller,
Loan Officer
Weichert Financial Services
99. Pop Quiz…
If you take out a $200,000 30 year fixed
payment loan from the bank, what is
your monthly payment?
A. $1901.
B. $1640.
C. $1201.
D. $969.
100. Pop Quiz…
What does an average buyer need for a
down payment?
A. 25%
B. 20%
C. 10%
D. 3.5%
D. 0%
110. Effects of Right Pricing…
•Promotes buyer & agent interest
• Generates home-viewings
• Creates a Sense of Urgency
• Sets the stage for multiple purchase offers during the 1st 30
days of marketing
• Purchase offers tend to be higher in relation to asking price
• Puts the seller in firm control of price negotiations
• Likely to result in a higher home selling price in a shorter
marketing time period
Otteau.com
111. Effects of Over Pricing…
In the final stages of Over Pricing – after extended days-on-
market and several price reductions – a home begins to
attract interest from buyers who are looking to profit from
sellers under duress. These buyers, often referred to as
bottom-feeders, tend to offer deeply discounted prices for
homes. In the end, the Over Pricing scenario has many
adverse effects, including:
Eliminating all Sense of Urgency
Extending marketing time in a price declining market
Results in asking price reductions over time
Forfeits price control to the buyer
Encourages discounted purchase offers
Attracts bottom-feeders
Leads to lower selling price Otteau.com
112. Princeton Twp. 2010
The Price Trend Came up with a price of $850,000. I
recommended a price of $799,000.
113. Negotiations are about leverage, use the
listing price as yours…
Listed at $799,000. 5 offers, sold at $942,000.
The seller had control.
116. One Aim
Determining your best asking price.
Our unique method goes beyond the traditional assessment of comparable home prices
by anticipating changing marketing conditions in your area.
119. 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.
125. Home Staging
“The investment in home staging is always less than your first price reduction!”
*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.
126. Home Staging
“The investment in home staging is always less than your first price reduction!”
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.
*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.
129. Pre-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.
134. 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.
135. Return on Home Improvements
http://www.remodeling.hw.net/2011/costvsvalue/division/middle-atlantic.aspx
136. What will a real estate
company do for me?
Weichert Family of Companies
137. This is
where
you win
or lose
the sale
Source: 2012 NAR Profile of Home Buyers and Sellers
138. 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.
140. What Will a Weichert Agent Do for You?
Educate You.
Negotiate on your
behalf.
Offer advice on due
diligence.
Manage all aspects of
the transaction
process.
141. We’re Here to Help
The Entire Process is reviewed by
Legal Council
• Use a LOCAL attorney
• Use a REAL ESTATE attorney
• Please, please, please… don’t use your
brother’s cousin’s neighbor’s friend’s divorce
attorney in Bergen County. It will cost you more
than whatever “deal” they’re cutting you!
146. Resource and website list:
www.Stagedhomes.com
www.realestatestagingassociation.com
www.realtytrac.com
Hinweis der Redaktion
www.realtor.org
www.realtor.org
https://pulsenomics.com/Dec_2012_HPE_Survey.html
(elicit responses)
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Create your own table to approach the aspects of the marketplace that you consider most relevant and valuable to your associates. For ideas on what to cover, refer to the tables in the Planning Day Presentation on your Planning Day 2005 CD. For example, you might discuss the market conditions of different communities or price ranges each week.
Create your own table to approach the aspects of the marketplace that you consider most relevant and valuable to your associates. For ideas on what to cover, refer to the tables in the Planning Day Presentation on your Planning Day 2005 CD. For example, you might discuss the market conditions of different communities or price ranges each week.
Create your own table to approach the aspects of the marketplace that you consider most relevant and valuable to your associates. For ideas on what to cover, refer to the tables in the Planning Day Presentation on your Planning Day 2005 CD. For example, you might discuss the market conditions of different communities or price ranges each week.
Create your own table or put together a bulleted list that covers the aspects of the marketplace that you consider most relevant and valuable to your Associates. Examples of items that might be used on this slide include trends in sales, prices, inventory and/or foreclosures in the different communities in your local market; news from your local board of Realtors; what the competition is doing, etc.
Create your own table or put together a bulleted list that covers the aspects of the marketplace that you consider most relevant and valuable to your Associates. Examples of items that might be used on this slide include trends in sales, prices, inventory and/or foreclosures in the different communities in your local market; news from your local board of Realtors; what the competition is doing, etc.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
