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

2. Chrysler in Bankruptcy…GM
Next…Over 1000 Chrysler Dealers
to be shuttered…
Source: Autodata

3. Consumer Sentiment Not This Low
Since Early 1980s
1966Q1 = 100
Source: University of Michigan

4. Employment Year over Year Percent Change

5. Good news, we only lost
slightly under a million jobs
in April and May 2009…!

6. Thursday, January 1, 2009

7. Less New Construction in Mercer
Source: NAR, November 2008 Forecast
Richardson Commercial

8. But what about the impact of
foreclosures on the market…?

9. 2009: Foreclosure Forecast
Within Company-Owned Footprint
Region 12/22/2008 12/29/2008 1/5/2009 1/12/09 1/19/09
NY, Ashby 12,001 15,003 14,736 14,778 13,837
NJ,
Bixon 6,844 6,682 6,605 6,638 6,546
PA,
CT, McDonald 7,064 7,194 7,121 6,216 7,333
DE
Minsky 14,411 14,468 15,224 15,453 16,253
Prevete 8,425 8,300 8,150 8,116 8,077
Waters 9,627 9,602 9,620 9,514 9,474
Williams 6,158 6,108 6,225 6,236 6,255
DC, Huffman/Chappel
MD, l (MD/DC) 16,953 16,376 16,522 18,112 18,232
VA Green (VA) 23,722 23,554 23,570 23,561 23,403
Totals 105,205 107,287 107,773 108,624 109,410

11. 2009: Foreclosure Forecast
Within Company-Owned Footprint
Over 1800 Foreclosure in Mercer
County.
Less than 72 foreclosures in 08540 (3
townships).
Less than 27 foreclosures in West Windsor.
Majority of the 1800 are in Trenton.
- foreclosurepoint.com

12. Home Price Trends in Down Markets:
Big Declines in Subprime Neighborhoods
Yellow – Conforming Loans Only (OFHEO)
Orange – All Loans including subprime and jumbo loans (Case-Shiller)
Red – Subprime Loans (NAR estimate based on subprime weight)

13. Where is the bottom of the market?
“The effects (of foreclosures) are continued declining
prices….probably another 5-8%* to the bottom. As for the
effect of foreclosure pricing, all of these problems are
causing home prices to go lower than is necessary from an
affordability perspective.
That’s because everyone is now worrying about job
security.
As a result, the recovery will take place at a faster pace
once it gets started.”
– Jeff Otteau (otteau.com- January 2009)

14. “Everything I am
seeing tells me we
have arrived at the
bottom of the market,
specifically in the
popular and
affordable price
ranges.”
J. Weichert
6/2009

15. Recovery Has Begun
49.8%
Increase in Sales
$300,000 & Under
May YTD reported internal revenue units

16. Sales by Price Range

17. Positive Indicators Across the Board….1st
time in 4 years….!
Source: NAR

19. Where is the bottom of the market?

20. 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

21. 1. Understand the Local Market That
You are Buying into…

22. Market Absorption Scale
(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.

23. Town by Town Analysis: 6/16/09
Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed
Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings Listings Listings
30 Days Months 30 Days Market in 30 Reduced
Days
Princeton Boro:
All Styles 52 5 10.4 7 2 10 19.2% 5 4 8
Pton -Boro
Condo/ Thouses 12 0 99 2 2 3 25% 0 1 2
Pton-Boro
Single Family 40 5 8 5 0 7 17.5% 4 3 6
Pton Twp: All
Styles 151 31 4.9 32 1 33 21.9% 6 8 11
Pton Twp:
Condo/ Thouses 22 8 2.8 3 -5 5 22.7% 0 1 2
Pton Twp:
Single Family 129 23 5.6 29 6 28 21.7% 6 7 9

24. Town by Town Analysis 6/16/09
Towns Active Pending Absorption New Net Listings % of Expired W/drawn Closed
Listings in Last Rate in Listings in Gain Reduced Invent. Listings Listings Listings
30 Days Months 30 Days (Loss) to in 30 Days Reduced
Market
West
Windsor:
130 43 3.O 33 (10) 41 31% 7 5 28
All Styles
West
Windsor
23 16 1.4 4 (12) 9 39% 0 2 10
Condo/
T.Houses
West
Windsor
6 0 99 - - - - - - -
55+
West
Windsor
101 27 3.7 2.9 2 32 32% 7 3 18
Single
Family
Lawrence:
All Styles
197 35 5.6 37 2 57 29% 15 8 20
Lawrence:
Condo/
85 15 5.6 20 5 20 23 5 3 13
THouses
Lawrence:
55+
11 0 99 - - - - - - -
Lawrence:
Single
101 20 5.0 17 7 37 37% 10 5 7

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

26. 0
20
40
60
80
100
120
8
0
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/
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6
Rate
Hopewell Twp. Condo/Townhouse Absorption Rate
Hopwell C/T Abs.

27. 10
20
30
40
50
60
70
80
90
100
0
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6
Hopewell Twp. Single Family Absorption Rate
Hopwell Single
Family Abs. Rate

28. 10
12
14
16
18
0
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/
2
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6
Rate
Lawrence Condo/Townhouse Absorption Rate
Lawrence C/T Abs.

29. 10
15
20
25
30
0
5
8
0
9
/
2
1
9
0
2
5
/
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6
Lawrence Single Family Absorption Rate
Lawrence Single
Family Abs. Rate

30. 0
20
40
60
80
100
120
8
0
9
/
2
1
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0
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5
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6
Princeton
Princeton Twp. Condo/Townhouses Absorption Rate
Township C/T
Absorption Rate

31. West Windsor Condo/Townhouses Absorption Rate
30
25
20
15 West Windsor C/T
Abs. Rate
10
5
0

32. West Windsor Single Family Absorption Rate
80
70
60
50
West Windsor
40 Single Family Abs.
Rate
30
20
10
0

33. Understand the Market That You are
Buying into…
I want to live in West Windsor because
of the schools and the trains

34. Town by Town Analysis 5/11/09
Towns Active Pending Absorption Active w/ New Listings Net Gain Listings % of Expired W/drawn
Listings in Last Rate in Contract in 30 Days (Loss) to Reduced in Invent. Listings Listings
30 Days Months in 30 Days Market 30 Days Reduced
West
Windsor:
144 35 4.1 48 52 (31) 38 26% 5 3
All Styles
West
Windsor
34 11 3.0 14 18 (7) 7 20% 2 0
Condo/
T.Houses
West
Windsor
9 0 99 - - - - - - -
55+
West
Windsor
101 24 4.2 34 34 (24) 31 31% 3 3
Single
Family

35. Market Absorption Rate
West Windsor
Single Family Only
Under $700,000
66 current active listings 3month
=absorption
22 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

36. Market Absorption Rate
West Windsor
Single Family Only
Over $700,000
36 current active listings 3.6month
=absorption
10 reported ‘pending’ sales in last 30 daysrate
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

37. Market Absorption Rate
West Windsor
All Townhouses
13 current active listings 1.08 month
=absorption
12 reported ‘pending’ sales in last 30 daysrate
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

38. Market Absorption Rate
West Windsor
Single Family Homes
$999k +
8 current active listings 99 month
=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

39. 2. ‘I am going to time the
Market and buy at the peak
inventory level and when no
one else buys…’
Source: MLS

40. 3. ‘I am going to wait until
the price comes down
further and then make an
offer…’
Source: MLS

41. Relationship of Price Reductions to
‘Pending Sales’
70
60
50
Princeton Pendings
40
30 Princeton Price
Reductions
20
10
0
Source: trend mls

42. Town by Town Analysis 5/11/09
Towns Active Pending Absorption Active w/ New Listings Net Gain Listings % of Expired W/drawn
Listings in Last Rate in Contract in 30 Days (Loss) to Reduced in Invent. Listings Listings
30 Days Months in 30 Days Market 30 Days Reduced
Hopewell
Twp.:
172 10 17.2 14 38 14 55 32% 7 4
All Styles
Hopewell
Twp. :
21 5 4.2 0 6 1 9 43% 2 0
Condo/
T.Houses
Hopewell
Twp.:
3 0 99 - - - - - - -
55+
Hopewell :
Single
148 5 29.6 14 32 13 46 31% 5 4
Family
Hamilton:
All Styles
583 47 12 41 160 72 143 25% 41 21
Hamilton:
Condo/
88 6 15 6 35 23 38 43% 11 5
THouses
Hamilton
55+
37 0 99 - - - - - - -
Hamilton:
Single
458 41 11 35 125 49 105 23% 30 16
Family

43. Relationship of Price Reductions to
‘Pending Sales’
70
60
50
Princeton Pendings
40
30 Princeton Price
Reductions
20
10
0
Source: trend mls

44. Relationship of Price Reductions to
‘Pending Sales’
120
100
80
West Windsor Pendings
60
West Windsor Reductions
40
20
0
Source: trend mls

45. Relationship of Price Reductions to
‘Pending Sales’
100
90
80
70
60
Lawrence Pendings
50
40
Lawrence Reductions
30
20
10
0
Source: trend mls

46. Seeing the Opportunity.

47. Seeing the Opportunity.
Prices Rates
Q. If this were 2005,
High
where would you place
the Price and Rate dots?
A. In 2005, the V would Mid-Range
look somewhat like this
one, where prices were
on the high end of the Low
scale and rates were in
the lower range.

48. Seizing the Opportunity.
Prices Rates
In recent history, there
has never been an High
opportunity like this, with
low prices and low rates.
In real estate, this Mid-Range
circular area at the
bottom of the V is called
the “Buying Zone” –
Low
it’s an unbelievable
time to buy.

49. Financial Benefits and Process of
Home-Ownership.
Jeff Smith,
Gold Services Manager/ Loan
Officer

50. ‘I don’t want to buy a house and
then watch it drop in value!’

51.
Purchase Price $329,000 Loan Amount $281,000
Down Payment $11,515 Monthly P&I $1,590
Appreciation/Depreciation Home Value
1st Year -3% $305,970
2nd Year 0% $305,970
3rd Year 1% $309,030
4th Year 3% $318,301
5th Year 5% $334,216
5 Year Appreciation/Depreciation $5,216
Tax Benefit Rent @ $1600/mo
1st Year $5,000 $19,200
2nd Year $5,000 $19,200
3rd Year $5,000 $19,200
4th Year $5,000 $19,200
5th Year $5,000 $19,200
5 Year Total $25,000 $96,000
Create Equity
Total $30,216 v Pay Rent

52. Incentive From the Government
First-time
homebuyers can
receive a tax credit
up to $8000!

53. Tax Credit Overview
Amount Ten percent of the cost of home, not to exceed $8,000
Property Any single family residence that will be used as a principal residence
Refundable Reduces income tax liability for the year of purchase
Income Limit Adjusted gross income of $75,000 single or $150,000 joint tax returns
Must not have owned a principal residence in 3 years prior to
First-Time purchase
Distribute NAR Tax Credit Overview handout

54. Tax Credit FAQs
• Can individuals with incomes higher than the
income limits still benefit from the tax credit?
• How does a tax credit work?
• How do I apply for the credit?
• Is there a way to get the credit before I file my tax
return?
• How does the repayment work?
Distribute NAR Frequently Asked Question handout

55. How much house can I really afford?

56. Establish Your Buying Power
• The first step is to
meet with me!

57. Factors to consider when
buying and selling…
Inventory(supply and demand)
Interest Rates
Source: MLS

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

59. Strategies for Selling
Joshua D. Wilton, Manager

60. Understand the Market That You are
Selling Out of …
I live in Montgomery

61. The Impact of Pricing on the Salability
of Your Home..…

66. ‘Great speech but does it really work?

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

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

69. 2. The Effect of
Staging on the
Value of a Your
Home .

70. 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.

71. The Way You Live In Your Home…

72. … And The Way We Market And Sell A
House Are Two Different Things.

73. “The Investment in Home
Staging
is Always Less than Your
First Price Reduction!”

74. Buyers Only Know What They See …

75. … Not The Way It Is Going To Be.

76. 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.

77. 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.

78. The average
marketing time of
an ASP Staged vs.
non-Staged home
is 80% less.

79. 3.The Effect of ‘ Pre-
Inspection’ on the Sale of
Your Home.

80. What is
‘Pre-Inspection?’

81. Home Inspection
WHAT DOES PRE-INSPECTION INCLUDE?
The standard home inspector's report will review the
condition of the home's heating system, central air
conditioning system (temperature permitting), interior
plumbing and electrical systems; the roof, attic, and visible
insulation; walls, ceilings, floors, windows and doors; the
foundation, basement, and visible structure.

82. PRE-LISTING Home Inspection
DOESN’T THE BUYER DO THE HOME
INSPECTION?

83. All Negotiations, including real estate, are
all about negotiation and control.
Right Price
Right Staging
All Repairs are done in advance.
Offer a Home Warranty to the buyer..
Who is in control?

84. PRE-LISTING Home Inspection
Data on where most sales fall apart: attorney review, home
inspection.
Fall Thru Percentage 2007: 26%
Fall Thru Percentage 2008: 10.2%.

85. 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.

88. Reality of today’s market is that you will see the
return on your investment not in an inflated sales
price but in retaining the highest percentage of
your list price and staying on the market the fewest
# of days.
Please consult with your Realtor & staging
professional as to which improvements you should
finish to make your home the most salable.

89. What will a real estate
company do for me?
Weichert Family of Companies

90. 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.

91. The Weichert Difference
• Time is money.
• Stress kills.
• Time is life.

92. What Will a Weichert Agent Do for Me?
Educate You.
Negotiate on your
behalf.
Offer advice on due
diligence.
Manage all aspects
of the transaction
process.

93. We’re Here to Help
The Entire Process is reviewed by
Legal Council.

94. Resource and website list:
Realtor.org
Remodeling.com
NAR.

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

96. Resource and Website List:
www.Housemaster.com
www.Stagingshoppingcenter.com

97. Resource and website list:
www.Stagedhomes.com
www.realestatestagingassociation.com
www.foreclosurepoint.com
www.realtytrac.com

98. Good Luck with your Move!