Notes From All Over

Residents of local school districts across NJ turned down 47% of the budgets proposed. Just 53% of the budgets were approved in 2006, compared to 71% in 2005. Expect more wetland development as private developers will be encouraged to join in wetlands credit trading, opening areas for commercial use. The prime lending rate went to 8% in May, 2006, raising the costs for adjustable rate mortgages. Nationally, commercial RE investment yielded 34% earnings 2005.

Hedging Your Housing Bets

In March of 2006, the Chicago Board Options Exchange announced the launch of housing futures contracts. Futures are a highly speculative investment strategy. The National Association of Realtor® sales statistics will be used to chart the contracts.

The program gives investors a vehicle for participating in the $20 trillion US real estate market through the purchase of contracts whose yields are based on the direction of home prices, nationally or regionally.

The program gives anyone with a stake in real estate – lenders, home-builders, home-owners and real estate practitioners a chance to enhance or protect their real estate investments through the same hedging strategies available to Wall Street investors. Largely untested, it’s hard to know how this strategy will be received.

Ocean County Tax Rate Cut

The Ocean County Board of Chosen Freeholders, directed by Freeholder Director Gerry Little, approved the county’s 2006 spending package which came with a decrease in the property tax rate yet still funds the programs and services needed for a growing population.

The new tax rate is 28 cents per $100 property value – down 4 cents and representing the largest percentage decrease in the history of the county.

Home Ownership = The Good Life

The NAR recently completed a systematic review of research which concluded that home ownership contributes strongly to the overall welfare of the community.

The study concludes home owners can expect:
· Higher educational performance of children
· Lower community crime rates
· Lessened welfare dependency among households
· More household participation in civic affairs
· Better household health

What Lurks Behind the Garage Door? Profit!

As the price of real estate has risen, sellers have found considerable extra value in their garage. This is prime square footage which can add to the appeal of the house and in many instances be the selling feature for a home.

Most often this is the most neglected, and underutilized area of the house. Clean and orderly garages stand out when showing a house. Often the garage is the largest room of the house and when uncluttered, leaves the imagination free to think of the myriad possibilities of how the space could be filled!

Adequate electric supply to the garage makes many hobbies possible and the space infinitely more useful. Inexpensive organizers and storage units can be filled by the buyers’ imagination, increasing the perception of storage in this home.

Cash in when you cash out by offering a great garage. Here are some tips:
* Declutter – Clear out & clean up!
* Clear the floor – and paint it!
* Add Storage – Shelves, wall systems, 2nd hand cabinets. Organize like things together.
* Add counter or work surface.
* Check door locks and garage door mechanisms.

Insurance Updates

In a bill signed by the President, Federal terrorism insurance has been extended another two years. This program was initiated after September 11th, 2001 to ensure the availability of reasonably priced policies for property owners. Some believe that the federal role is vital for keeping financing flowing to commercial real estate. The threshold for losses increased from $5 million to $50 million with the new extension and will increase to $100,000,000 in 2007.

The US House Financial Services Committee has moved forward with the development of the Louisiana Recovery Corp, an independent agency to spur rebuilding of the Gulf areas hit by hurricanes last year. The LRC would relieve hurricane victims of up to $500,000 in mortgage obligation if home owners transfer title to the LRC. The funds would be gained from proceeds of Treasury bond issues. The buildings would be rehabilitated and sold to private developers through a competitive bidding process. The bill, H.R. 4100, denies the corporation eminent domain powers.

Notes From All Over

Housing starts slipped about 10% to 1.85 million, with luxury properties suffering the biggest hit proportionately. Construction contribution to the GDP growth won’t shrink, as increased public and commercial building will offset home starts. Kiplinger projects that total home sales for the year face a 6% decline to 7.85 million. Fed’s 3/26/06 quarter % point increase was the 15th raise since 06/04. NJ inventory of unsold homes was 42,500 in Dec. 2005. Dec. 2004 was 31,000 homes.

Mortgage Rate Hikes Cut Buyer Purchase Power

When our new Fed Chairman, Ben Bernecke, implies more rate hikes in his efforts to curb inflation and stabilize the economy, it ripples through the mortgage community. In general, mortgage rates go up in response to rate hikes. Buyers are more concerned that the monthly payment is affordable, than with the bottom line cost of the house.

On 30 year fixed rate mortgages, when the rates go up 1%, buyers lose 8% of buying power. For example, the buyer looking for a $500,000 home at 5.78% interest, can only afford a $460,000 home when rates go to 6.78%.

Other costs such as tax re-evaluation, increased heating and cooling costs, increased transportation costs all add to monthly expenses which deduct from home buyers’ funds available for mortgage payments.

Eminent Domain Still Rumbling

There is an ongoing backlash to the Supreme Court decision ruling to allow eminent domain– the taking of private property for public purposes with compensation – to be used in private projects. Close to 40 states have initiated legislation limiting the scope of eminent domain.

Businesses that gain from this practice should be aware that boycotts by developers, lenders and real estate agents are possible. BB&T Corp., the 9th largest bank in the US already refuses to back projects involving eminent domain.

Baby Boomers Look to Local Communities

As we know, retirees are living longer and are perceiving retirement as a change in lifestyle. In New Jersey, 105,000 people are turning 55 each year. Though many will opt to own 2 homes for seasonal enjoyment, 59% plan on downsizing and maintaining just one home. 57% plan on staying within 50 miles of their current home. 33% will stay within their county. Just 25% plan to move out of state.

Do I Need A Broker To Sell My House?

Many people have heard that you can save money by selling your house yourself, without paying a broker commission. Though this may be true for a select group who has previous experience in real estate, with the market tightening, most for sale by owners (FSBO) will lose money doing it themselves.

Now, isn’t that what you’d expect us to say! A recent report by the Otteau Group, independent market analysts not affiliated with brokers or multiple listing services, discloses that the median selling price of FSBOs is 15.4% less than realtor transactions. Since most realtors earn about 6% of the sales price, a FSBO who lists with a broker gains 9.4% over what he would have by going it alone.

With more than 4000 Ocean County realtors affiliated with the Monmouth/Ocean MLS, there is no other tool which exposes your house to more qualified buyers. A Realtor® assumes the risk of investing in advertising, signage, and promotions to market your property with no out-of-pocket costs for you. And most important, a Realtor® has been trained in savvy negotiating skills and has the confidence and the credibility to ask for, and get, the top sales price for your home.

Housing Supply Approaching Saturation Point

Each morning when realtors check the “Hot Sheet” of daily real estate activity, more houses are coming on the market than are going into contract. As real estate inventory increases, it exerts pressures on the market. Some of the effects of increasing inventory are:
· Homes take longer to sell.
· Slower pace of price increases.
· New construction welcomes broker participation and offers incentives for buyers. Quick delivery discounts, builder financing and discounted options and upgrades increase new construction appeal.
· More inventory eliminates urgency in buyers.
· Indicates over pricing of homes for sale.

Notes From All Over

According to the American Farm Bureau, should the realization of the House passed bill on border security which omits inclusion of a temporary worker status become law, the loss of labor availability will impact the economy to $9 billion and eliminate 1/3 of the produce farms in the US. Office rents increased about 6% during 2006 compared to a 4% hike in 2004. Vacancy rates are about 14%, the lowest since 2003. New Fed chairman Ben Bernanke said he expects the nation’s interest rates to be raised a bit further in response to inflationary pressures still present in the economy. Of the AFB Top Ten Concerns, 7 impact real estate.

Crossroads Hosts Otteau Seminar

On February 28th, 2006, The Quality Inn of Toms River was the scene of Crossroads on-going training for its agents and support staff with a seminar given by Jeffery Otteau, owner of The Otteau Group. The Otteau Group are real estate appraisers and consultants which offer a concise over-view of the real estate market and the trends that will impact future real estate sales.

Because he believed this information to be so important, Mark Kotzas, president of Crossroads Realty, had extended an invitation to this vital presentation to all realtors of Ocean and Monmouth County.

Mr. Otteau and associates gather data from a variety of sources, not just MLS reports, to understand and forecast the direction of the real estate industry.

The information presented in this 4 hour seminar was made available to all agents and staff via email after the presentation. Market insights will be shared with Crossroads’ clients to help buyers and sellers understand and respond to the latest trends in local real estate.

West Dover Office Takes New Name

In 1986, when Crossroads West Dover Office was established, Toms River was referred to as Dover Township. Now, and especially with the publicity it received, Toms River is well known. After several instances of being asked “Where’s West Dover?”, we changed the name of our office to Crossroads Realty Toms River West Office. Our great agents work with buyers and sellers in Ocean & South Monmouth Counties.

“Green” Tax Breaks

Homeowners who installed energy-efficient doors and windows in 2006 or made other energy saving home improvements qualified for up to $500 in income tax credits. You can claim the credit only if you make improvements to your existing house and only for a portion of the qualifying improvement cost. Go to www.energytaxincentives.org for the latest information on Fed guidelines and N. J. updates.

National Association of Realtors® on Fed Tax Reform

Changes to the Federal Tax Regulations as proposed by an advisory panel to President Bush threaten the vitality and the future strength of the real estate industry. The recommendations currently with the US Treasury Department make several policy changes that would undermine current advantages of home buyers and investors.

The advisory panel released these recommendations for tax reform.

*Replace the existing $1 million cap on mortgage interest deductions with the local FHA loan limit which ranges from $172,000-312,000, and change the deduction to a 15% credit taken against the amount of mortgage interest paid.

*Eliminate the deduction for state and local taxes, including property taxes, and the deduction for mortgage interest on second homes.

*Increase the gain to be excluded on the sale of a principle residence but reduce the frequency the deduction can be taken.

*Eliminate deductions for interest and taxes on commercial and investment properties.

While the recommendations are with the US Treasury Dept., under review for the President, the NAR Federal Taxation Committee has bolstered a campaign to spread the word on how harmful this would be to national home ownership. NAR and other industry groups are getting the word out of the potential economic impact on the housing market should these guidelines become official.

More On Eminent Domain

The American Farm Bureau released a national opinion poll that Americans are unified nearly 2 to 1 against government misuse of eminent domain powers. The phone poll was conducted by Zogby International, a nationally prominent pollster, during October 29th thru November 2, 2005. Results indicate that unless the land taken is for a public purpose such as a road or utility expansion, more than 60% of respondents are against it. When eminent domain is used to benefit private development, 83% of those polled oppose such action.

Notes From All Over

By early October 2005, more than 11,000 Realtors® had contributed toward the National Assn. of Realtors® donation of $1.1 million toward Hurricane Katrina relief. In 2005, 43% of first time buyers bought their home with zero down payment. According to the Kiplinger Letter, the Dow will hit a new high, not seen since 2000 because of less competition from real estate and an end to the Fed’s rate hikes by midyear. Global housing needs are being driven by a population shift in developing countries where people will be migrating from rural to urban areas in search of economic opportunities. Half the global population lives in urban areas and the predicted population burst will require infrastructure redevelopment and housing solutions for 3 billion more people by 2030.

National Association of Realtors® Code of Ethics

“Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. Realtors® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.”

This Preamble of the NAR Code of Ethics and Standards of Practice imposes a reverent obligation to all real estate practitioners. In 2005, amendments created greater obligations to clients and customers, duties to the public and duties to other Realtors®.

Senior Common Interest Bills Quashed

It was announced that S-2016, S-2344 and A-3855 have died in committee without approval by the state Legislature before the end of the 2004-2005 session. These bills proposed increased government oversight of Senior Community Associations by creating an office of ombudsman which would be paid for by increased fees for homeowners. Watch to see if the administration recalls these bills.

Crossroads Realty ~ Ocean County’s #1 Again!

Since the turn of the century, each year Crossroads Realty has closed the greatest number of units, in total combined classes (adult, residential, commercial, condo, rental) of all real estate companies in Ocean County according to MLS statistics. With 15 offices, affiliation with “Leading Real Estate Companies of the World”- a relocation service, Home Capital Network– our in-house mortgage company, a Distinctive Property division, Commercial division, enhanced presence on realtor.com, and more than 270 hardworking and devoted agents, Crossroads has been forging their brand of professional real estate services for 40 years.

In fact, Crossroads celebrated its 40th year in business in 2006. Byron Kotzas founded the business in 1966 with a single office on Route 37 East. In the years since, Crossroads has grown. In 2000 there were 220 real estate companies in Ocean County, in 2003 there were 267. In 2005 there were 324 companies. One may think that this would have diluted the business available to each real estate company. But by keeping abreast of technology, real estate trends and customer satisfaction, Crossroads has managed to capture the largest share of business, consistently.

Crossroads has been bringing buyers and sellers together for 40 years, with great results!

Booklets For Seniors

The National Council on Aging has two new booklets to help consumers understand how home equity might assist them to “age in place” by paying for immediate health expenses or planning ahead for future in-home service needs.

"Use Your Home to Stay at Home: A planning Guide for Older Consumers" and "Use Your Home to Stay at Home: A Guide for Homeowners Who Need Help Now" address the benefits of using home equity to meet financial challenges. To print copies of the publications, go to www.ncoa.org , click on the "Staying Independent" tab, then click "Find Programs" on the side bar.

Notes From All Over

In mid-December of 2005, the NJ Assembly Environmental Committee approved a bill (A-3560) which exempts solar panels and similar equipment from property tax assessment. The bill is expected to be passed into law. Another approval (A-2342) was for a $.03/1000 gallon water tax statewide on water produced by utilities. The proceeds are expected to be $12-18 million annually and would go toward conservation projects and protection of watershed land. Seniors identify “safety” as their top reason for living in a retirement community. In the wake of Katrina, property owners can expect to pay higher premiums for flood insurance. A revised flood law will widen coverage to 500 year floodplains from the 100 year plains now. Congress will trim flood program subsidies.

Prepare To Add Value For Good Return On Investments

Despite the fact that the market has cooled, you can still make money investing in real estate. The key is not to rely on inflating prices to boost the value of your property, but to be prepared to add value. Run down houses, structures that can be readapted for another use and sub-prime neighborhoods beginning to turn around all offer opportunities to make money.

When interest rates rise, the resale value of speculative properties could go down. Investors are better off with small professional buildings, apartments for middle income rentals, or retail space with established tenants. In residential, investments that add real value such as a new master suite, outdoor entertaining areas and modernizing are the best bet.

Risky Mortgage Lending Warning

Federal regulators are concerned about the expanding use of interest-only adjustable rate mortgages and option ARMs. With both loans, payments are kept low for a few years before being raised. In 2006, about $300 billion worth of ARMs were due to be reset at higher rates. The economic cost of this restructuring will be felt as homeowners pay more in interest on their loans and less on appliances, furniture and other home improvements. The Feds will tell lenders to fully inform applicants of the risks with these types of loans.

Crossroads IT Guy!

With more than 50 company owned computers, and with many of the 270 real estate agents owning laptops, computer repair and maintenance is a high priority for Crossroads and adds to the efficiency of our work. RJ Ponzio, our IT Director, will keep the Crossroads web site up to date and lead computer workshops at our training facility at the Toms River West Office. RJ got his computer training in the Army and comes to us after completing military service in Iraq.

The Boom Years Have Ended, But No Crash In Sight

In 2006, the housing market completed its transition, begun in the summer of 2005, from five years of boom and escalating prices to a period of healthy and sustainable activity. In most areas of the country, as well as in New Jersey, this means a moderate deceleration of price increases.

In recent years, investor purchases of residential properties has contributed significantly to the pace of the boom market. With appreciation slowing, investors will be looking for other things to do with their money.

Home builders will feel the pinch of rising cost of building materials. The increased cost of plywood alone is expected to add $1200 to the cost of an average new home. Costs of plastic pipe, cement, steel and gypsum are also on the rise, with much of this material being directed to hurricane reconstruction sites.

Inventory of unsold homes is increasing as days on the market are lengthening.
The volume of home sales nationally eased to about 7.8 million in 2006 from the record 8.3 million in 2005. Condo sales were around 820,000 down from the 2005 sales of 900,000.

Population trends will continue to fuel demand for new housing and despite higher interest rates, steady employment and wage growth will mean that consumers still have the means to buy homes.

Open House – Helping Your Agent Help You

“Open House Sundays” have been very successful in bringing buyers to preview our listings. This is one more way your agency exposes your property to more buyers. For a successful experience, your cooperation is needed. There is much you can do to ready your home for showing, protect your valuables and create a home someone else can imagine themselves moving into.

Call the Toms River West Office for our "Open House Tips", Report #1155. (732)244-2200 or 1800-847-4255.

Notes From All Over

New regulations adopted by the EPA makes it explicit that current owners of idle industrial sites are not responsible for contamination that occurred under prior owners. Housing price indicates a national gain of 4% in 2006, down from 10% in 2005. Good real estate investment can be found by developing a commercial portfolio – 30% offices, 20% retail, 20% industrial, 20% multifamily 10% other property. Hotels yielded a 10-14% return on investment in 2005 and stayed strong in 2006 thanks to booming business travel. An estimated $160+ billion spent on home remodeling in 2006.

Leading Real Estate Companies of the World™

Crossroads has long been affiliated with Leading Real Estate Companies of the World™, an international relocation company created to help move buyers and sellers to new, and often unfamiliar places. We’ve boasted that we can find you a garret in Paris, a chalet in the Alps, a log house in the Rockies or a cozy home in the town next door. And it’s nice to know that we can!

With production quotas as a criteria of admission, all companies in the affiliation are sales leaders. Like a hotel name that you feel comfortable with in any town, our relocation service adds branding confidence in real estate.

Market Adjusting, Several Factors Add Influence

The Otteau Group conducts an in depth review of the N.J. real estate market, with particular insights to the influences and trends affecting the real estate industry. Their information is not limited to Multiple Listing Service reports, but is compiled from all data reporting services and county sales.

Some highlights of their 3rd quarter 2005 meeting, was the slow down of real estate activity in the residential market. It was reported that unsold inventory was up 20%. Prices had accelerated in the first half of the year, up 14% on average, but approaching 0% in the 2nd half. Housing strengths include job creation, gradual rise of interest rates, population growth and high oil prices holding back interest rates.

And for the same reasons, buyers have hit the brakes on buying. Interest rates are rising. Energy prices will take a bite out of spending. N.J. job growth is disappointing. Absorption of new homes is slowing, leading to a sharp, quick rise in unsold inventory.

It has been found that buyers are taking on a more European stance and planning home purchases later in life. Baby boomer parents offer a comfortable, and sometimes affluent home life. Home prices have outpaced salaries. With interest rates rising, buyer price resistance is increasing. According to Otteau, more than half of current inventory is overpriced. Entry level and waterfront properties will outperform the market.

Can Your Employees Afford to Live Here?

As home prices remain high for moderately skilled employees, some of our best, and most reliable employees find it harder and harder to provide housing for their families. Fannie Mae, a large mortgage company, suggests that employers offer to help their employees with seed money to buy a house. This can be done by forgivable loans, grants or matched savings to be used for down payments or closing costs. Employers recoup costs by trimming turnover and training budgets. Employers can reap a share of the profits when the homes are sold.

Notes From All Over

The average home heating bill for winter 2006 was up 50% from the previous year. The upside of high energy prices is a surge in investment in the energy sector…probably a good place to put stock allotted moneys for the next year.

Consumer spending will ease with mortgage rates increasing. Fewer home owners will be willing to tap into their home’s equity for cash. Expect to see built-in escalation clauses in new construction contracts as costs of cement, gypsum, plastic pipe are being driven by damage to Gulf Coast oil refineries. From late 2005 til 2007, over 60% of all homebuyers in the US will be minorities.

Eminent Domain Tested – the Farmer Wins!!!!

It was only a matter of time before a New Jersey community would try to make history as being the first town to test the Supreme Court decision made famous during the summer of 2005 on Eminent Domain.

The township council of Sandyston in Sussex County attempted to take a 42 acre farm for ball fields and a park. The new owner of the farm, Rajesh Sinha was surprised to receive a letter announcing the intent by the council to have appraisers evaluate the site for a ball field. Through the creative use of a web site and an aggressive door-to-door campaign, the owner rallied local residents to his position. The council backed down, and the mayor announced that the council was no longer interested in the site and would not resort to eminent domain seizure.

Hunger Relief of Ocean County

Please keep Ocean County Hunger Relief in mind for your donations all year round. Canned goods and boxed dry goods are always needed to help local families. OCHR is located at 917-5 North Main Street in Toms River for direct donations.

Mama Mia! That’s A Lot of Spaghetti!

Back on October 23rd, 2005, Crossroads Realty, Basil T’s and St. Barbara’s Church hosted a benefit spaghetti dinner for the Red Cross in support of Katrina hurricane victims. Mike Little, Tina Orth and Tony Verikios, agents at Crossroads Executive Office organized the event. Crossroads agents sold tickets, promoted the event and served the dinner. More than $17,600 in contributions was collected for the Red Cross!

Market Normalizes, Prices Drop for Residential Sales

A real estate slowdown that began at the end of the summer in 2005 has affected most of the national hot markets and has crept into the Ocean County market place.

Agents who check the MLS “hot sheet” for daily real estate activity notice more expired listings, price reductions and listing withdrawals. The days on the market have also been steadily increasing. Another indication that the market may have seen its peak, is that executives at large home building companies have sold billions of dollars worth of company stock.

One reason that properties are remaining on the market longer is over pricing. Based on the sale price of a neighbor’s home which sold earlier that year, some sellers want to price their house as if the frenzy is still on going. Indications are that incentives will be needed to get top dollar.

The slowdown has also jolted the people who have gotten their real estate license recently, encouraged by the perceived ease of income in the real estate market. In 2005, the Monmouth/Ocean Board of Realtors had 2000+ agents join.

Mortgage rates are creeping up giving buyers less purchasing power and some lenders have started to tighten credit standards, making it harder for buyers to get loans.

Indications are that home sales will level off at the usual 6-8% annual appreciation. This marks a normal trend.

Couch Potatoes Can Earn More on a Resale!

There’s a wealth of information available on TV that can help you capitalize on your biggest investment – your home – when it’s time to sell. Channel 71 – HGTV– has programming suggesting ways to increase the value of your home with little investment and some sweat equity. Value is in improvements that freshen, brighten, and give a contemporary edge to a home’s appeal. Designed to Sell, Curb Appeal, Trading Up are just a few of the many shows with great ideas to get top dollar.

Notes From All Over

Investment risk is rising in real estate with some buyers spending so much to purchase, the rent doesn’t cover their expenses. If prices fall they will be loosing money in two ways. You can still find some good yields (about 7%) in REITs (Real Estate Investment Trusts) in bank and hotel property investments.

Selling Your Home in a Buyers Market

Because prices have gotten higher, and interest rates are on the move up, we are seeing an accumulation of inventory in the residential market.

Monmouth County buyers who were considering moving to Ocean County for reduced property taxes are aware that the increase in gas prices will impact their daily commute. And the rumors about increased fuel costs has people rethinking the move they had been planning.

The factors of increased housing inventory, longer days on the market and higher interest rates add up to a buyers market. Although our market is actually normalizing and becoming more typical of the slow and steady equity gain realized in other parts of the country, the past few years have made real estate sales easy, for agents and for sellers.

As we’ve seen in the auto industry, incentives can do a lot to attract buyers and in real estate there are a number of low cost incentives that give your house super appeal.

It’s a good deal when buyers can incorporate as many updates and appliances into their mortgage as they can afford on a monthly basis and spread the cost over 30 years rather than charge these items to a charge account at higher interest rates. Offer to include appliances, a carpet allowance (if carpet is dated or worn), or to pay for the first years heat. Consider offering a sales bonus to the sells agent to encourage the showing of your house.

Pricing is important as well as the experience of your agent to generate buyers to your home.

Dover Institutes “No Knock”

After a tragic murder of an elderly resident of Toms River who opened her door to a salesman who has been accused of the killing, Dover Township Council passed an ordinance requiring that such sales people register with the Township and be licensed before making door-to-door solicitations. Employees of licensed door-to-door enterprises will be processed through criminal history background checks by the Chief of Police.

The Council has also provided for residents to add their address to the “No Knock” registry. More Info? Call 732 341-1000 x 8206.

Repeal of Estate Tax Would Benefit Property Owners

In the fall of 2005 there were attempts to permanently repeal the federal estate tax. The 2002 tax law adopted a multi-year phase-out of the tax ending in 2010, but that repeal suddenly expired and the tax is automatically readopted if no further action is taken.

The stumbling block in the way of a permanent repeal is the opinion in the Senate to not let the super-wealthy completely off-the-hook. A compromise position which would especially help self employed individuals might be to substantially increase the per person/per spouse exemption, perhaps as high as $5 million.

For Baby Boomers, the wealthiest generation and ones with the greatest inherited assets, estate planning could take on a whole new meaning!

Understanding the Discount Broker

During years of record home prices and record home sales, as was a few years ago, the real estate climate can create an atmosphere where so called discount brokers make false and misleading claims, detrimental to the home sellers’ interests.

After using the slogans like “Pay high commissions? Or pay less and get more”, discount brokers are luring sellers into listing with their companies without understanding the consequences.

When a broker secures a listing, the broker and homeowner agree on a commission to be split between the listing company and the buyers agent. Under most discount brokers commission structures, they have passed the entire commission reduction on to the buyers agent, keeping the higher percentage for themselves.

The buyers’ agent plays a crucial role in the sale of a home. Although the listing agency is responsible for all the advertising, signage, and other promotions associated with selling the property, it is the buyers agent who brings in the qualified buyer. Buyers agents will naturally focus their efforts by showing homes offering more generous commission splits. Over 87% of buyers rely on real estate agents as their primary resource to find a home. Homes which are shown more often, sell faster and for higher prices.

Crossroads understands that to market a home successfully for our clients, we must work effectively with the entire real estate community.

States Take Action

State legislators across the country moved quickly to introduce bills to curb the use of eminent domain by local governments. One estimate showed that half the states had or were about to see action on such bills. N.J. Senators Gill and Allen, introduced S-2739 which prohibitted the condemnation of property for economic development objectives when that property is legally occupied for residential purposes and maintained in accordance with housing codes. No action would take place on the bill until the Senate ended recess in the fall.

In the Congress

Regarding Eminent Domain, House members wasted no time in introducing legislation to stem the impact of the Supreme Court ruling in 2005. The bill was entitled “Strengthening the Ownership of Private Property (STOPP) Act”.

Introduced by Bob Goodlatte (Va.), chairman of the House Agriculture Committee, the STOPP Act would prevent governments from taking property from one private party and giving it to another private party. Goodlatte said “he was committed to the principles of private property… and wanted to insure that homes, farms, and businesses will not be bulldozed in abusive land grabs that only benefit private individuals”.

New Jersey FOR New Jersey

Doug Forrester and Jon Corzine both stepped up, in 2005, to take issue with the high court’s decision on eminent domain. Forrester appeared in Camden to decry the $1 billion redevelopment plan of the Cherokee Corporation which threatened to uproot 1200 working class homes in the city. Corzine said, while campaigning for Governor, if elected, “there should be no taking of homes for economic development except in rare and exceptional circumstances.”

In the Wake of the Property Rights Decision

The biggest news in real estate during the summer of 2005 was the decision by the Supreme Court relaxing eminent domain requirements. Eminent domain is the right of government to seize private property for public use (with compensation).

The high profile case, Kelo vs. the City of New London (Conn.) raised key property rights issues. The high court sided with New London officials whose economic development plan called for taking homes in a working class neighborhood to make way for private developers which would provide a greater tax base for the city. The ruling reaffirmed New London’s right to act based on its economic development plan. The opinion set forth did not preclude states from maintaining public use requirements that are more strict than the one involved in this case.

Typically, cities have exercised their eminent domain rights for projects with a direct public purpose, such as schools, road expansion or bridges. This was the first instance of eminent domain transferring ownership to private corporation to boost investment in the city and increase tax dollars.

The National Association of Realtors had filed a “friend of the court” brief, arguing for a stricter standard on the public use question. The court rejected the NAR”s position, determining it was inappropriate for others to second guess the city’s development plan. The NAR is developing resources to assist townships and citizens concerned about the impact of this decision .

One Man's Trash is Another Man's Treasure

Clear Clutter, Get Cash !

Think summer, think garage sales. This has become a serious pastime for collectors and a great way to meet the neighbors.

If you need help organizing your garage sale, call and ask for our special report, Yard Sale Success. (732) 244-2200 or 1800-847-4255

More Difficulty Getting Insurance

Home buyers across New Jersey are finding it more difficult to obtain homeowners insurance at an affordable rate when buying a home, according to the New Jersey Association of Realtors ™ .

Realtors across the state have reported working with clients who could not find coverage for a new home purchase even though the home was already insured. Reports indicate underground storage tanks, certain types of synthetic stucco, knob and tube wiring and older homes in general, are being denied coverage. In many cases buyers are forced to settle for less coverage at a higher premium.

The New Jersey Association of Realtors™ has formed a task force to study the issue and propose solutions.

The President Stands By NAR

President Bush attended the National Assn. of Realtors™ midyear Expo in 2005 and subsequently asked Congress to let small groups pool risk across state jurisdictions to make affordable health care more widely available to Realtors™ . The organization of 1.2 million members has no group insurance plan. This has been a NAR priority.

The President also told NAR members he would protect mortgage interest deductions in any tax reform proposal his administration presents to Congress.

Home Buyers: Discover How To Avoid These 6 Costly Mistakes Before You Buy

A report has been released which identifies the 6 most common and costly mistakes that homebuyers can make when buying a home.

Mortgage regulations have changed significantly over the last few years making your options wider than ever. Financing determines the amount you can pay for your home. Subtle changes in the way you approach mortgage shopping and even small differences in the way you structure your mortgage, can cost or save you literally thousands of dollars and years of expense.

Whether you are about to buy your first home, or are planning to make a move to your 2nd home, it is critical that you inform yourself about these factors before you buy.

In answer to this issue, we have prepared a special FREE report entitled “6 Things You Must Know Before You Buy”. To order your FREE copy of this report, call (732) 244-2200 or 1800 847-4255 and ask for REPORT # 1104.

Other Ways To Invest In Real Estate

Going away on vacation? Or would you like to go farther? Rent out your home for less than 14 days and the rent you receive is tax-free.

Verify the standing of the renter by asking for his or her credit report and references. Always get a security deposit.

Some travel agencies are affiliated with travel clubs which offer house swaps for two families wanting to travel to the others’ locale. Overseas destinations can be arranged with people wanting to visit the US.

On Line News Update

Crossroads Realty’s is partnered with www.realtor.com, the National Association of Realtors™ web site. Our enhanced presence on this site showcases our inventory and gives browsers more features to view. A link to www.crossroadsrealtynj.com. will substantially increase our ability to assist you with local real estate.

First Impressions

Most Buyers Make a Real Decision About A House Within the First 30 Seconds of Seeing It

If you don’t think “curb appeal” is important, consider this fact. Spring's a great time of year for making outside improvements which add real value to your home. It is estimated that $500 in landscape improvements adds $1835 in sale value!

Seven Tax Deferred 1031 Exchange Rules You Can’t Ignore

Tax deferred exchanges are great ways to postpone capital gains taxes on your real estate investments. But be sure you follow the rules!

1) Exchanges can be used only for investment properties.

2) Exchanges must be made between like kind properties – investment or business. But they do not have to be the exact use. A small business property can be exchanged for an apartment complex.

3) To meet the IRS guidelines for an exchange, you must identify the replacement property for the one you exchange within 45 days of the initial property transfer date. You may identify up to 3 properties to total fair market value of the property being sold.

4) You must close on the replacement property within 180 days from the initial transfer date of your property to the other party. It is also possible to buy the replacement property first in a reverse exchange.

5) If the property exchange is not simultaneous, you must use a qualified intermediary to hold the money until the exchange is completed.

6) Any cash left from the exchange (boot) will be taxed at capital gains rate.

7) Properties must be in the USA

Like kind exchanges are often complicated. Failure to follow the rules can result in a disallowing of the exchange. Check with an attorney or other investment professional.

Find Virtually Every Listing...

on the Monmouth/Ocean MLS at www.crossroadsrealtynj.com with it's many features makes it extremely user friendly. Vacation rentals are listed, making it fun to plan for summer in January! Search amenities include waterfront/water view features. Additional content includes hints for buyers and sellers.

Other Ways To Invest In Real Estate

Becoming a Landlord

Another way to invest is to buy a smaller second property using a home equity loan for your down payment. Condos are a good opportunity, as well as homes in adult communities where carrying costs tend to be more predictable.

If the rental income covers the costs of financing, taxes and association fees, appreciation of the property and depreciation on your income tax will work in your favor.

A $25,000 down payment on a $100,000 property that appreciates 10% annually would be worth $68,000 after taxes if sold 5 years later– for a 22% return on investment.

It’s Easy To Get There From Here

Ocean County Park was originally part of financier John D. Rockefeller’s vacation estate. Located on Route 88 in Lakewood, this 323 acre park is decorated in white pine, hemlock and unique specimen trees, imported by Rockefeller, from all over the country.

There is no charge for use of the park. Tennis courts, open play fields, beach volley ball, cross country skiing in winter are just some of the activities enjoyed in the park. Playground equipment is available. The large, clean lake has a life guard through the summer months. Private picnic space can be reserved for groups up to 700 people.

Call (732) 506-9090 for more information or to arrange reservations for large group outings.

Crossroads Gives the United Way

Crossroads Realty has, in the past, matched any Crossroads agent contribution to the Ocean County United Way during it's fundraising campaign.

Ocean County United Way has 50 partner agencies who work to provide legal, health and emergency services to those in need in our county. More info? Call us. (732) 244-2200 or 1800-847-4255

How To Avoid Failing Your Home Inspection

While home buyers are as individual as the homes they plan on purchasing, one thing they share is the desire to insure that the home they purchase is structurally sound. Home buyers will seek professional help in determining the condition of the home by having a home inspection. All real estate contracts provide an inspection contingency.

There are at least 33 areas of your home which will be scrutinized during a home inspection. We have identified the 11 most common problems revealed in a home inspection which, if not dealt with, can cost the seller dearly in repairs and can even cause a buyer to back out of a out of a sale.

To assist home sellers before they list their home for sale, we have created a FREE report which advises how to be prepared for this inevitable inspection and how to pass the test. If you would like to order this FREE Report, call (732) 244-2200 or 800 847-4255 and ask for REPORT # 1103.

Spring Sales Expected To Be Fabulous!

There’s no doubt, spring is the prime time to market your property for sale. Many buyers are looking to close their purchase at the end of the school year and establish their children in a neighborhood before school begins in the fall.

Our FREE MARKET ANALYSIS can let you know the value of your home in today’s market. Call us! (732) 244-2200 or 1800-847-4255

It’s Easy To Get There From Here

Spring is the time to turn the clocks ahead and turn our attention to the national past time of baseball. For the past several years, we’ve been privileged to have the Lakewood Blue Claws as our home town team, offering everyone the opportunity to catch a great game, right here at home. In the first season, the Blue Claws attracted more than 182,000 people to their games. To date more than 1.5 million have passed through the turnstiles to enjoy the sport.

Great seats are always available during the season. Call the ticket office for more information (732-901-7000) or visit the team’s official web site at www.lakewoodblueclaws.com.

Open Houses

When you are out for a Sunday drive, look for our red and white balloons advertising a Crossroads open house in progress! Easy to find on our web site www.crossroadsrealtynj.com is a schedule of times, locations and properties available to tour. Stop in our Toms River West office, 168 Route 37 West, for a free map of the area!

27 Quick and Easy Fix Ups To Sell Your Home Fast and For Top Dollar

Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make. And once you have made that decision, you will want to sell your home for the highest price in the shortest time possible. Before you place your home on the market, here’s a way to be as prepared as possible.

To assist home sellers, a new industry report has just been released called “27 Valuable Tips to Get Your Home Sold Fast and For the Most Money”. It addresses the important issues you need to know to make your home competitive in today’s tough, aggressive marketplace. Through these 27 tips, you will discover how to protect and capitalize on your most important investment, reduce stress, and be in control of the home selling process.

Using a common sense approach you’ll get the straight facts about what can make or break the sale of your home. Preparing your home for sale requires little investment to strengthen its appeal to buyers.

If you are considering selling your home, you owe it to yourself to get the information you need to make good decisions. Call 800 8847-4255 or (732) 244-2200 and request FREE Report # 1123.

Home Buyers: Avoid Costly Mistakes Before You Buy

We have prepared a NEW report which identifies the 6 most common mistakes that home buyers make which cost them dearly. Subtle changes in the way you approach mortgage shopping, and the way you structure your mortgage, can cost or save you thousands of dollars and years of expense. Call for REPORT #1104 (732) 244-2200 or 1800-847-4255

Tax Deferred Exchanges

Equal Smart Investment

The 1031 exchange allows sellers to defer payment of capital gain tax on the sale and purchase of like kind investment properties. It affords an opportunity for business owners to trade old buildings for newer ones. It enables a more expensive rental unit to be traded for two lower priced ones. Tax deferred exchanges allow investors to put their money where the opportunity for appreciation is the greatest without paying capital gains on the sale.

Call our office (732) 244-2200 or 1800-847-4255 for more information on 1031 Exchange.

Tuckerton Seaport It’s Easy To Get There From Here

The Tuckerton Seaport is a recreated 19th century seaport village in southern Ocean County which opened in May of 2000. The Seaport includes 15 buildings that demonstrate the life, art and work at the New Jersey shore and represent the maritime traditions of this region.

The Seaport is located on the Tuckerton Creek at 120 West Main Street in Tuckerton and strives to provide affordable family entertainment. General admission is $8.00 for adults, $6.00 Seniors, $3.00 for children under 5 years. Special rates are available for groups.

Travel by boat! Twenty-seven floating docks are now available without charge to paying Seaport customers. By car, GSP Exit 58, Rte 539S, Rte 9S.to entry.

Info/tickets at Tuckerton Yacht Club also. For more information call (609)296-3875 or web site @www.TuckertonSeaport.org.

Think Spring– Think Home Safety

Start a new tradition this year. When you turn your clocks ahead on March 11th, replace the batteries in your smoke detectors, whether they need it or not. If you don’t have a fire extinguisher in the kitchen, get one and instruct every family member on how to use it. In case of fire, create an exit plan that all family members know.

Best Returns on Your Spring Remodeling

If you’re thinking about doing any serious remodeling projects this spring, now is the time to start planning. Not only must the projects be decided upon, but the budget, financing and permits must be arranged. Consideration should also be given to the value these improvements add to your home when it comes time to sell. In other words, how much of the money you spend now will you get back when you sell your home? You need to compare construction costs for home improvements against the added value they bring at resale.

At the top of the list are kitchens, exterior siding, bathrooms and decks. These improvements, on average, recoup 85% of their cost at resale, but will cause your house to sell faster. Next are window replacements, family room additions and landscaping projects which add to the home’s curb appeal.

International Association of Realtors

Big Dreams? Think Leading Real Estate Companies of the World!

Crossroads Realty is affiliated with Leading Real Estate Companies of the World, an international association of Realtors who provide relocation services for folks on the move. If you’d like a home on the shore in North Carolina or the mountains of Colorado, if you’re looking for a garret in Paris or a villa in Italy, call our agents for more information. We help make dreams come true!

Become a VIP Buyer

Be the First to See Hot New Listings!

Call our office to register for this GREAT SERVICE. Your home buying criteria, price range and location will be put into our computer and every time a new listing that matches your home buying criteria becomes available, you will be notified. Your agent can call you, fax you or e-mail you these listings. Be one of the first to be able to make an appointment to see hot new listings!

Become a VIP Buyer! CALL TODAY TO REGISTER! Toms River West Office (732) 244-2200 or (800) 847-4255

Stage Your House for a Successful Sale

A “successful sale” means different things to different people. For some, timing is most important, for others net proceeds determines “success”. Many home improvement shows demonstrate how to "show off" your home to its best advantage with fresh paint and a few new accessories. Local cable channel 71 features the team from “Designed To Sell”, who previews a home, decides on how best to compensate for its cosmetic weaknesses, and works with the sellers for a weekend and $2000 to update and refresh the home before a scheduled “Open House”. Quick sales and over list price bids are the results!

Design consultation is included in Crossroads Toms River West Office Listing Service. A small investment in time or money can yield thousands extra in the sale of your home and bring it to contract much sooner.

Stop In For Coffee and a Movie

Buyers Special Feature:
“How to Make the Most of Your Home Buying Experience”

Sellers Double Feature:
“How To Prepare Your House to Sell” and
“Dress Your House For Success”

9 to 5 Daily at our Toms River West Office

168 Route 37 West

The Coffee’s on us!

Don’t Get Caught Short When You Move to a Larger Home

As people find they have a lot of equity in their current home, it’s tempting to think of moving up, into a home that offers more space, better amenities and greater comforts for their families. Since many families are moving every 5-7 years to accommodate changing family size, moving from one home to another presents certain challenges.

A brand new FREE report has just been released which identifies the six most common and costly mistakes that almost all homebuyers should be aware of when moving to a larger home. Unlike the experience of buying a first home, when you are looking to move up, buying a home, selling a home and financial arrangements can be very complicated to coordinate. It would be difficult for most people to sell their home and be left with no place to live, or to buy a home before selling and have two mortgage payments to make each month.

In answer to this common problem, we have prepared a FREE special report entitled “6 Strategies to Avoid Trade Up Mistakes”. You may request a FREE copy of this report by calling our office and requesting Report # 1107. This report will help you make informed choices to initiate the home buying process.

Free Report on Selling Your Home

Thinking of Selling? Get Ready Now!
Call today for our FREE report “27 Valuable Tips To Get Your Home Sold Fast and For The Most Money”. This FREE report offers tips on getting your home ready for the inevitable inspection, preparing your house for showing and how to handle the details of a sale. Call our Toms River West office (732) 244-2200 and request REPORT # 1123.

www.crossroadsrealtynj.com

Back in the day, in 1999 that is, 23% of buyers began their search for a home on line. In 2004, 73% of buyers investigate their options on line before calling a real estate company.

Crossroads anticipated this trend early, and in 1999 hired a full time computer technician to service all of our offices and create and manage our web site. In July of 2003, we adopted a “dynamic content” format which makes the site exciting to visit. Tour at your convenience. New listings, open house schedules and more!

Open House – Helping Your Agent Help You

An “Open House” is one more way your agency exposes your property to more buyers. To insure your open house is a success, your cooperation is needed. There is much you can do to ready your home for showing, protect your valuables and create a home someone else can imagine themselves moving into. Call the Toms River West Office for Open House Tips, Report #1155. (732) 244-2200 or (800) 847-4255

Don’t Underestimate the Value of a Good Negotiator

Often, when considering listing their house for sale, homeowners are more concerned with the percentage of commission they will pay, than the qualifications and training of the agents they interview.

A Realtor™ who has excellent negotiating skills, a thorough understanding of the market, the resources to give your home the greatest exposure AND through marketing efforts, attracts a steady stream of qualified buyers, can net you more money for your home, regardless of the commission percentage paid.

Crossroads is a full service real estate agency, recognized for its outstanding agent training program.

Sell Your Home Fast for the Most Money

A new report has just been released which details 7 costly mistakes that homeowners make when selling their home. These mistakes could cost the homeseller, literally, thousands of dollars. The traditional ways of selling homes have become increasingly less and less effective in today’s market.

As many as three quarters of homesellers do not get what they want for their home and are financially disadvantaged when they put their home on the market for sale. The good news is that each and every one of these mistakes is entirely preventable. In answer to this issue, we have prepared a FREE special report entitled “The Nine Step System To Get Your Home Sold Fast and For Top Dollar”.

To request your copy of this FREE report, call 800 847-4255 and ask for Report #1124. If you are thinking of selling your home soon, you owe it to yourself to get this fact filled brochure.

Real Estate as a Career

Have you thought of a career in Real Estate? A career in real estate is not for everyone. But if you enjoy helping others, like looking at houses and décor, can see yourself developing a business with unlimited potential while creating your own schedule, real estate may be for you. Crossroads has an excellent training program. Call Sandy (732 244-2200) at our Toms River West office for a confidential interview.

Selling With Home Improvements

Sparkle!
Jewels Add A Lot To Make A Home Sell Fast

If you’re thinking about selling, some quick and inexpensive home improvements can be achieved by adding “jewelry” to your home. New kitchen cabinet pulls in brushed nickel, contemporary light fixtures, and shiny new sink faucets and handles can take a dated home and give it the WOW factor that buyers are looking for. Do-it-yourselfers are taking advantage of these tricks of the trade to brighten and refresh their home before putting it on the market.

Support Your Community

Support Ocean County Hunger Relief

All Crossroads Realty offices accept food donations from November until December. Please keep in mind that they need donations year-round.

For more information on Ocean County Hunger Relief's drop-offs you can contact them at (732) 505-4357.

Tips To Pass Your Home Inspection

While home buyers are as individual as the homes they plan on purchasing, one thing they share is the desire to insure that the home they purchase is structurally sound. Home buyers will seek professional help in determining the condition of the home by having a home inspection. All real estate contracts provide an inspection contingency.

There are at least 33 areas of your home which will be scrutinized during a home inspection. We have identified the 11 most common problems revealed in a home inspection which, if not dealt with, can cost the seller dearly in repairs and can even cause a buyer to back out of a sale. To assist home sellers before they list their home for sale, we have created a FREE report which advises how to be prepared for this inevitable inspection and how to pass the test.

If you would like to order this FREE Report, call (732) 244-2200 or 1 800 847-4255 and ask for REPORT # 1103.