orly chen – bergen county's premier
real estate agent
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for homes are available at record-low interest rates,
as well as extremely affordable prices."
County Real Estate in a Tough Real Estate Market
Whether someone is a seasoned
home owner or a first time buyer, purchasing a home in today's
faltering economic climate is not one of the most pleasant experiences
to undergo--and survive at the same time. For individuals who
have less than a perfect credit history or must sell the current
home they own in order to purchase another home, the prospect
of buying property seems daunting and perhaps a little dangerous,
to say the least.
New Jersey foreclosure sales have declined, influenced by a
moratorium issued by the court last December that prevents banks
from immediately processing foreclosure claims, giving home
owners more time to salvage their mortgages if possible. In
addition, loans for homes are available at record-low interest
rates, as well as extremely affordable prices. This attractive
situation is enticing people who realize an opportunity like
this may not appear again for awhile. While wanting to seriously
investigate the housing market options, people may not know
what to expect or where to start, which makes them hesitate
to take the plunge.
For those who find themselves in this situation, here is some
information about what to expect when selling and buying a home.
If you are a Buyer
Buyers who possess home equity remain the principle entities
driving the market. These are the people who recognize opportunities
exist to profit from purchasing loan-delinquent homes. For example,
according to the National Association of Realtors, nearly 29%
of buyers paid for their homes with cash rather than credit.
Foreclosed homes represented almost 29% of the purchases, while
another 12% consisted of "short sales", an agreed
upon price by the lending institution to pay the balance of
someone's mortgage in order to prevent foreclosure.
If someone does not currently own a home that must be sold,
this type of housing market epitomizes the perfect situation
to easily own a home. In fact, first-time home buyers constitute
30% of the market, simply because they realize this optimal
economic condition for owning a home is not going to last.
However, be aware that purchasing a home does not happen overnight.
A recent survey conducted by the New Jersey Association of Realtors
found that most people searched for about four months before
finding the house of their dreams.
What to Expect from the Market
Due to the present market condition, New Jersey offers thousands
of homes for sale at prices about which buyers used to dream.
However, with economic volatility provoking a feeling of hesitancy
among home buyers, many are waiting to see which way the market
is going to head, even as property prices continue falling.
In New Jersey, the average price of a single-family dwelling
decreased from about $350,000 four years ago to $300,000 last
year. During the first four months of 2011, prices fell even
further to $280,000.
Today, North Jersey boasts the most flourishing housing market
because that is where the jobs are, in addition to its nearness
to New York City and easy access to public transportation services.
In addition, the counties of Union, Monmouth, Morris, Essex,
Bergen, Somerset, Passaic and Middlesex all have enough homes
to sell that would take almost a year before all would be sold.
If a buyer takes the time to investigate foreclosed properties
and withstand the complex and sometimes aggravating process
of purchasing such a home, they can take delight in knowing
they have permanently improved their financial situation by
taking advantage of a once-in-a-lifetime bargain.
If You are a Seller
Advice given by experts in the housing market to sellers today
suggests that if it is not absolutely necessary to sell your
home, don't do it. However, if you must sell your home, realtors
recommend that you take an assertive stance with your price
and move out as fast as possible. In addition, many sellers
reduce the asking price once the house has been on the market
for two or three weeks, rather than waiting several months,
a behavior practiced before the recession.
Because of the economic downturn, banks and other lending institutions
practice stringent guidelines regarding credit requirements
when approving home loans. Interest rates are low but unfortunately,
many home buyers may encounter difficulties in securing financing.
While interest rates are at an all-time low, the biggest challenge
facing many home buyers is securing financing. Banks have tightened
credit requirements, as has the government for those applying
for FHA-backed loans. Most mortgage lenders now require anyone
wanting a loan to possess a credit score of 620 or higher. FHA
loans, which are backed by the government, require a score of
no less than 580.
At the moment, the market is somewhat stable, but it is also
waiting for the impending discharge of thousands of foreclosed
properties from limbo, which will make a definite impact on
the future condition of the market. Because of such turbulent
conditions, people who purchase homes today do so not because
they view it as an investment, but because it represents a better
place to live than their previous residence.
RE/MAX of Tenafly
Associates lead agents
competing companies in
specialized training and
They dominate the Accredited Buyer Representative (ABR), Certified Relocation
Professional (CRP), Certified Residential Specialist (CRS) and Leadership Training
Graduate (LTG) ranks. Read
About Orly Chen
Chen is a leading
Tenafly real estate agent
in Northern New Jersey
specializing in the Bergen
County area. Her
integrity make Orly
one of the most sought-
after agents in the
Northern New Jersey
real estate market