Weichert, Princeton Office October 2011
Market Update/ Forecast Seminar
Offers analysis of the Princeton & Greater
Princeton, NJ real estate markets & effective
strategies to buy and sell.
Presented by:
Joshua D Wilton
Broker/ Sales Rep.
Weichert Realtors
Princeton, NJ
(o) 609-921-1900
www.weichert-princeton.com
www.facebook.com/weichertprinceton
Agenda
1. The Market
- A History
- Forecast for 2012
2. Strategies for Buying
3. Strategies for Selling
Agenda
1. The Real Estate Market ( a
history brief history)
Unsold Inventory from the MLS in Weichert Market AreasNovember 2004 thru November 2010
0
5,000
10,000
15,000
20,000
25,000
10/2
0/20
0311
/20/
2003
12/2
0/20
031/
20/2
004
2/20
/200
43/
20/2
004
4/20
/200
45/
20/2
004
6/20
/200
47/
20/2
004
8/20
/200
49/
20/2
004
10/2
0/20
0411
/20/
2004
12/2
0/20
041/
20/2
005
2/20
/200
53/
20/2
005
4/20
/200
55/
20/2
005
6/20
/200
57/
20/2
005
8/20
/200
59/
20/2
005
10/2
0/20
0511
/20/
2005
12/2
0/20
051/
20/2
006
2/20
/200
63/
20/2
006
4/20
/200
65/
20/2
006
6/20
/200
67/
20/2
006
8/20
/200
69/
20/2
006
10/2
0/20
0611
/20/
2006
12/2
0/20
061/
20/2
007
2/20
/200
73/
20/2
007
4/20
/200
75/
20/2
007
6/20
/200
77/
20/2
007
8/20
/200
79/
20/2
007
10/2
0/20
0711
/20/
2007
12/2
0/20
071/
20/2
008
2/20
/200
83/
20/2
008
4/20
/200
85/
20/2
008
6/20
/200
87/
20/2
008
8/20
/200
89/
20/2
008
10/2
0/20
0811
/20/
2008
12/2
0/20
081/
20/2
009
2/20
/200
93/
20/2
009
4/20
/200
95/
20/2
009
6/20
/200
97/
20/2
009
8/20
/200
99/
20/2
009
10/2
0/20
0911
/20/
2009
12/2
0/20
091/
20/2
010
2/20
/201
03/
20/2
010
4/20
/201
0
ASHBY TOTAL DOEPPER TOTAL BIXON TOTAL MCDONALD TOTAL PREVETE TOTAL WATERS TOTAL WILLIAMS TOTAL
11/ 15/ 0431,676
11/ 14/ 0541,156
11/ 13/ 0684,621
11/ 12/ 0788,414
11/ 17/ 0884,942
* added Waters & Williams Region to Totals
11/ 15/ 1092,096
11/ 16/ 0977,985
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.
Variance % 2010 to 2009NY (Ashby) +13.11%CT (Doepper) +118.53%Passaic/Hudson/Bergen NJ (Bixon) +5.86%Western Central NJ/Lehigh Valley PA (McDonald) +6.78%Northern and Central NJ (Prevete) +9.24%Eastern Central/Shore Points NJ (Waters) +10.63%Southern NJ (Williams) +10.87%
Affordability Index
Source: NAR Housing Affordability Index 1971 to 2010
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.
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.
183.7Aug 2011
Affordability Index
1st Time Home Buyer Index
2011: State of the Market
+8.29%1 yr change‘09 vs ‘11
2012: State of the Market
Historically Low Interest Rates
30 Year Fixed interest rate
3.94%Lowest in recorded history
So why is the market so tight…?
5-6 months absorption rate indicates a normal market.
How Long Will Interest RatesRemain Low?
What will the future bring…?
What will the future bring…?
A long term outlook in NJ & Mercer County
‘Supply & Demand’
Source: NAR, November 2008 Forecast
NJ Housing Permits
Source: CensusSource: Census
In thousand units
NJ Housing Permits
Source: CensusSource: Census
RESIDENTIAL BUILDING PERMITS AUTHORIZED 2000-2008
COUNTY 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total
Atlantic County 1,625 1,685 2,020 2,285 2,075 2,002 1,893 1,136 794 15,515Bergen County 2,847 1,784 1,771 1,289 2,142 2,972 2,164 2,957 1,311 19,237Burlington County 2,775 2,184 2,359 1,805 1,516 1,475 2,784 1,037 976 16,911Camden County 796 757 1,160 1,934 1,413 1,706 1,183 1,191 895 11,035Cape May County 1,242 1,403 1,422 1,693 2,149 2,433 1,580 1,081 485 13,488Cumberland County 255 256 310 374 566 630 737 683 336 4,147Essex County 1,491 1,548 1,588 2,235 2,343 3,128 3,284 1,854 1,314 18,785Gloucester County 1,337 1,635 1,802 1,859 2,050 2,075 1,141 920 788 13,607Hudson County 1,338 1,116 1,534 2,116 3,808 4,498 4,275 3,081 3,229 24,995Hunterdon County 616 685 602 814 648 506 350 316 206 4,743Mercer County 1,283 1,355 1,428 1,188 1,641 1,296 847 700 625 10,363Middlesex County 2,460 1,884 1,999 2,306 2,622 3,206 2,567 1,597 1,020 19,661Monmouth County 2,912 2,194 2,372 2,756 2,628 2,584 2,820 2,060 1,526 21,852Morris County 2,684 1,577 1,914 1,555 1,427 2,503 1,670 1,052 795 15,177Ocean County 5,633 3,830 3,534 4,009 3,818 2,904 2,114 2,160 1,527 29,529Passaic County 457 631 689 829 763 647 850 760 432 6,058Salem County 161 180 170 307 334 297 298 148 198 2,093Somerset County 2,282 1,439 1,530 1,260 1,362 1,220 1,058 926 791 11,868Sussex County 719 808 679 587 612 668 603 360 302 5,338Union County 776 551 681 1,198 1,399 1,278 1,593 1,123 673 9,272Warren County 896 765 877 585 620 560 512 258 146 5,219 New Jersey 34,585 28,267 30,441 32,984 35,936 38,588 34,323 25,400 18,369 278,893
Long Term Supply …
Source: NAR, November 2008 Forecast
Richardson Commercial
Long Term Demand …
Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf
Long Term Demand …
Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf
Long Term Demand …
Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf
Long Term Demand …
Source: NAR, November 2008 Forecasthttp://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf
Long Term Demand in Mercer County …
Source: NAR, November 2008 Forecast
Source: https://edis.commerce.state.nc.us/docs/countyProfile/NJ/34021.pdf
(Mercer County) Population & Growth Population Annual Growth Rate2013 Total Population 383,677 0.6%2008 Total Population 371,963 0.7%2000 Total Population 350,761
Affordabilitywill
Spur Recovery
2012: State of the Market
1. Real Estate is Local
Top Five Rules for Understanding the Real
Estate Market:
2. Real Estate is Local
3. Real Estate is Local
4. Real Estate is Local5. Real Estate is Local
Mercer County SF Inventory 01-10
Trendmls.com
Mercer County SF Settled Units 01-10
Trendmls.com
2010 v 2011 Market ComparisonTown 2011
Listed2011 Sold
2010 Listed
2010 Sold
2011DOM
2010 DOM
2011 Sold $
2010 Sold $
2011 Avg. $
2010 Avg. $
Pton Twp.
306 142 290 135 100 95 $134K $119K $950K $889K
Pton Boro
121 50 115 51 887 117 $42K $48K $842K $942K
West Windsor
382 224 469 264 72 57 $116K $140K $521K $532K
Lawrence 429 192 495 242 97 87 $59K $81K $310K $335K
Hope-well
296 119 350 146 111 115 $54K $73K $460K $504K
Ewing 513 168 575 210 116 94 $29K $44K $178K $211K
East Windsor
400 119 411 156 118 96 $30K $40K $252K $260K
Plains-boro
285 147 298 169 82 60 $56K $70K $319K $329K
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
Market Absorption Scale(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.
Absorption Rate by Price Range
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.
Sample Market Absorption RateSample Market Absorption Rate
107 current active listings
4 reported sales in last 30 days
=
24.3months absorptionrate
Anytown., NJ
5-6 Months Market Absorption Rate indicates a normal market.
35Market Scale for Supply & Market Scale for Supply & DemandDemand
High Supply/Low Demand Low Supply/High DemandNormal
Ma
rke
t A
bso
rpti
on
in M
on
ths 1
2
3
4
5
6
7
8
9
10
11
12
No
rma
l
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.
Note: This Market Scale is valid only for absorption rates between 1 and 12 months.
2007 thru 2011 Market Activity Comparison: Week of 10/22
2007
Active
Inventory
2007 Pending
Sales
(prev. 30 days)
2008
Active
Inventory
2008
Pending
Sales
(prev. 30 days)
2009
Active
Inventory
2009
Pending Sales
(prev 30 days)
2010
Active Inventory
2010
Pending Sales
(prev. 30 days)
2011
Active Inventory
2011
Pending Sales
(prev. 30 days)
Pton. Boro 52 3 42 3 44 7 46 2 44 7Pton Twp 118 5 100 3 122 11 134 9 158 3
W. Windsor 151 21 108 9 104 28 127 14 107 15Lawrence 235 9 196 10 197 30 207 15 195 10
East Windsor 214 11 200 15 164 35 225 7 225 7
Ewing 277 14 259 6 243 35 289 11 290 14Hamilton 596 37 594 36 534 107 639 40 640 49Hopewell
Twp. 186 5 125 5 153 24 159 3 169 5Cranbury 31 0 30 1 34 1 20 0 23 0Plainsboro 122 16 101 6 59 11 81 10 95 6
South Brunswick 202 16 211 16 164 18 259 13 258 13
Montgomery 137 16 117 12 128 23 159 13 139 20
10/18/11Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Princeton Boro: All Styles
44 7 6.3 11 4 17 38.6% 0 3 5
Pton -Boro Condo/ Thouses
20 3 6.7 6 3 8 40% 0 2 2
Pton-BoroSingle Family
24 4 6 5 1 9 37.5% 0 1 3
Pton Twp: All Styles
158 6 26.3 21 15 29 18.4% 5 6 13
Pton Twp: Condo/ Thouses
24 1 24 5 4 4 16.7% 0 0 3
Pton Twp:Single Family
134 5 26.8 16 11 25 18.7% 5 6 10
10/18/11Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Li1stings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
West Windsor: All Styles
107 15 7.1 21 6 37 34.6% 7 8 21
West Windsor Condo/ T.Houses
21 2 10.5 7 5 3 14.3% 0 1 6
West Windsor55+
14 1 14 6 5 -- -- 0 0 1
West Windsor Single Family
72 12 6 8 -4 34 47.2% 7 7 14
Lawrence: All Styles
195 10 19.5 30 20 51 26.2% 17 5 12
Lawrence:Condo/THouses
58 4 14.5 5 1 22 38.4% 6 2 2
Lawrence: 55+
19 0 99 2 2 -- -- 1 0 1
Lawrence: Single Family
118 6 19.7 23 17 29 25.6% 10 3 9
10/18/11
Towns Active Listings
Pending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
PlainsboroAll Styles
95 6 16 20 14 28 29% 19 0 10
PlainsboroCondo/ THouses
56 3 18.66 11 8 17 30% 12 0 6
Plainsboro55+
14 1 14 2 1 2 14% 1 0 3
PlainsboroSingle Family
25 2 12.5 6 4 9 36% 6 0 1
Cranbury:All Styles
23 0 99 1 1 7 30% 4 0 3
10/18/11Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Ewing: All Styles
290 14 20.7 37 23 64 22% 14 9 23
Ewing : Condo/ T.Houses
36 2 18 6 4 8 22% 3 4 5
Ewing 55+:
11 1 11 2 1 --- --- 0 0 1
Ewing:Single Family
243 11 22.1 29 18 56 23% 11 5 17
East Windsor:All Styles
225 7 32.1 34 27 42 19% 23 12 15
East Windsor:Condo/ Thouses
132 1 132 18 17 23 17% 17 7 6
East Windsor:55+
14 0 999 3 3 --- --- 0 0 0
East Windsor: Single Family
79 6 13.2 13 7 19 24% 6 5 9
10/18/11Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Hopewell Twp.All Styles
169 5 34 27 22 35 21% 6 8 13
Hopewell Twp. Condo/ T.Houses
14 2 7 3 1 4 28.5% 0 0 4
Hopewell Twp.:55+
6 0 0 0 0 -- -- 1 1 1
Hopewell Twp Single Family
149 3 50 24 21 31 21% 5 7 8
Hamilton: All Styles
640 49 13 107 58 157 24.5% 42 20 58
Hamilton:Condo/ THouses
98 7 14 19 12 20 20% 11 5 6
Hamilton:55+
45 4 11 9 5 -- -- 2 2 3
Hamilton: Single Family
497 38 13 80 42 137 27.5% 29 13 49
10/18/11Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
RobbinsvilleAll Styles
139 19 7 22 3 38 27% 11 8 13
RobbinsvilleCondo/ T.Houses
57 11 5 8 (3) 19 33% 4 5 5
Single Family
82 8 10 14 6 19 23% 7 3 7
Hightstown Boro: All Styles
69 3 23 9 6 16 23% 12 1 6
Pennington
18 3 6 3 0 5 27% 1 1 3
Hopewell Boro
13 1 13 2 1 3 23% 1 0 2
10/18/11Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
South
Brunswick
All Styles
285 13 22 44 31 66 23 33 4 25
South BrunswickCondo/ T.Houses
88 6 14.7 13 7 26 30 12 2 4
South Brunswick
55+
34 1 34 2 1 5 15 2 1 5
South Brunswick
Single Family
163 6 27 29 23 35 21 19 1 16
Monroe:
All Styles504 8 63 89 81 86 17 6 62 54
Monroe:
55+312 5 62.4 67 62 54 17.3 3 29 48
Monroe:
Single Family
192 3 64 22 19 32 17 3 33 6
10/18/11Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Montgomery
All Styles 139 20 6.9 25 +5 26 19% 14 7 13
Montgomery
Condo/Twnhms 26 5 5.2 6 +1 1 4% 3 0 2
Single Family113 15 7.5 19 +4 25 22% 11 7 11
Hillsborough
All Styles 288 24 12 51 +27 63 22% 28 9 33
Hillsborough
Condo/Twnhms 106 10 10.6 22 +12 27 22% 13 7 11
Hillsborough
Single Family 182 14 13 29 +15 36 20% 15 2 22
Understand the Market That You are Buying/ Selling in…
I want to live/ sell in West Windsor…..
Sample Market Absorption RateSample Market Absorption Rate
107 current active listings
4 reported sales in last 30 days
=
24.3months absorptionrate
Anytown., NJ
5-6 Months Market Absorption Rate indicates a normal market.
West Windsor Colonials By Price
5-6 months absorption rate indicates a normal market.
Price Actives Pendings Ab. Rate
$300-$500 17 3 5.6
500-$650 12 3 4
$650-$799 14 4 3.5
$800-$999 6 0 99
$1 million + 2 1 2
Princeton Twp. Single Fam. by Price Alone
5-6 months absorption rate indicates a normal market.
Price Actives Pendings Ab. Rate
$400-$600 16 1 16
$600-$799 19 2 9.5
$1.0 – 1.35 14 2 7
$1.36-$1.65 16 0 99
$1.65-$2.0 10 0 99
Princeton Twp. Single Fam. by Price Alone
5-6 months absorption rate indicates a normal market.
Price Actives Pendings Ab. Rate
$2.0 - $3.0 9 1 9
$3.0-$5.0 15 0 99
$5.0+ 3 0 99
Buying/ Selling Strategies
Source: MLS
‘I don’t want to buy a house and then watch it drop in value!’
Purchase Price $329,000 Loan Amount $317400
Down Payment $11,515 Monthly P&I $1802
Appreciation/Depreciation Home Value1st Year -3% $319,1302nd Year 0% $319,1303rd Year 1% $322,3214th Year 3% $331,9905th Year 5% $348,5905 Year Appreciation/Depreciation $19,500
Tax Benefit Vs Paying Rent @
$1600/mo1st Year $5,000 $19,2002nd Year $5,000 $19,2003rd Year $5,000 $19,2004th Year $5,000 $19,2005th Year $5,000 $19,2005 Year Total $25,000 $96,000
Total Gain $44,200Create Equity
v Pay Rent
Purchase Price $329,000 Loan Amount $317400
Down Payment $11,515 Monthly P&I $1802
Appreciation/Depreciation Home Value1st Year 5 $319,1302nd Year 3% $319,1303rd Year 2% $322,3214th Year 2% $331,9905th Year 2% $348,5905 Year Appreciation/Depreciation $48,590
Tax Benefit Vs Paying Rent @
$1600/mo1st Year $5,000 $19,2002nd Year $5,000 $19,2003rd Year $5,000 $19,2004th Year $5,000 $19,2005th Year $5,000 $19,2005 Year Total $25,000 $96,000
Total Gain $73,529Create Equity
v Pay Rent
+ The Amortization Schedule on a Loan
Yearly Schedule of Balances and PaymentsYear
Beginning Balance
Payment Principal InterestCumulative
PrincipalCumulative Interest
Ending Balance
2010 $315,646.96 $21,625.92 $4,374.96 $17,250.96 $6,128.00 $24,508.72$311,272.0
0
2011 $311,272.00 $21,625.92 $4,621.30 $17,004.62 $10,749.30 $41,513.34$306,650.7
0
2012 $306,650.70 $21,625.92 $4,881.98 $16,743.94 $15,631.28 $58,257.28$301,768.7
2
2013 $301,768.72 $21,625.92 $5,157.36 $16,468.56 $20,788.64 $74,725.84$296,611.3
6
2014 $296,611.36 $21,625.92 $5,448.28 $16,177.64 $26,236.92 $90,903.48$291,163.0
8
Appreciation (conservitive): $19,500
+Amortization: $20,109
+ Tax Benefit of Home Ownership
$25,000+
Low Interest Rates: $5000___________________
total 5 year gain = $69,609
How Long Will Interest RatesRemain Low?
• “It's hard to imagine that the rates can go much lower than they are.” ~ Amy Crews Cutts, deputy chief economist at Freddie Mac2
Market Absorption Scale(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.
1. ‘I am going to time the Market and buy/ sell at the time when
inventory & buyer count is in my favor…’
Source: MLS
0
20
40
60
80
100
120
140
160
180
1/7/2007 4/1/2007 6/24/2007 9/23/2007 12/16/2007
Gross # of Guests 2009
Weekly Guests Thru the Weichert Princeton Open Houses, 2010
Source: MLS
Inventory Levels, Princeton Twp. New Jersey, 2010
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 bids…?Source: MLS
Don’t WaitWest Windsor: 75%
Homes currently Under Contract: 32
Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :
24
East Windsor: 76%Homes currently Under Contract:
21
Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :
16
Don’t Wait
Plainsboro: 95%
Homes currently Under Contract: 21
Under contract within 30 days of Listing at the Right Price or Re-
positioning in line with the market : 20
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!
Jeff Smith,
Loan Officer
Weichert Financial Services
Financial Benefits and Financial Benefits and Process of Home-Process of Home-
Ownership.Ownership.
Pop Quiz…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.
1 Source: Freddie Mac 2 As reported in the Washington Post 12/26/09 3 As reported on CNBC 12/22/09
• “It's hard to imagine that the rates can go much lower than they are.” ~ Amy Crews Cutts, deputy chief economist at Freddie Mac2
How Long Will Interest RatesRemain Low?
Monthly Payment Savings
• Interest rates have dipped to 50-year lows, increasing buyer affordability.
One Year Ago Today
Mortgage Amount $300,000 $300,000
Monthly Payment (P&I) $1,704 $1,476
Savings $228/month
Monthly payments are based on interest rates of 5.5% on 9/13/2009 vs. 4.25% on 9/13/2010.
The interest rate assumption is based on a 30-year fixed rate mortgage.
Bought 2005:
$272,800Bought 2011
$245,000
$252 difference per month for 30 years
The Opportunity in 2011
• The first step is to meet with, me, Jeff
Smith!
Establish Establish YourYour Buying Buying PowerPower
The Impact of Pricing on the Salability of Your Home..…
All Negotiations, including real estate, are all about negotiation and control.
Home Staging
Who is in control?
It’s About PriceWest Windsor: 79%
Homes currently Under Contract: 33
Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :
26
East Windsor: 77%Homes currently Under Contract:
31
Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :
24
It’s About PricePlainsboro: 100%
Homes currently Under Contract: 14
Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :
14(7/7)
Robbinsville: 70%Homes currently Under Contract:
13
Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market :
9
It’s About Price
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.
Negotiations are about leverage, use the
listing price as part of yours…
Source: MLS
Princeton Twp. 2010
The Price Trend Came up with a price of $850,000. I recommended a price of $799,000.
Negotiations are about leverage, use the listing price
as yours…
Listed at $799,000. 5 offers, sold at $942,000.
The seller had control.
One AimDetermining your best asking price.
Our unique method goes beyond the traditional assessment of comparable home prices by anticipating changing marketing conditions in your area.
Princeton Sold Homes, 2010
Days on Market
List to Sales Price Ratio 2010
Local Market Update
Local Market Update
2. The Effect of Staging on the Value of a Home.
All Negotiations, including real estate, are all about negotiation and control.
Home Staging
Who is in control?
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.
The Way You Live In Your Home…
… And The Way We Market And Sell A House Are Two Different Things.
“The Investment in Home Staging is Always Less than Your
First Price Reduction!”
Buyers Only Know What They See …
… Not The Way It Is Going To Be.
Home Staging
*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.
“The investment in home staging is always less than your first price reduction!”
Home Staging
*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.
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.
“The investment in home staging is always less than your first price reduction!”
One AimDetermining your best asking price.
Our unique method goes beyond the traditional assessment of comparable home prices by anticipating changing marketing conditions in your area.
All Negotiations, including real estate, are all about negotiation and control.
Home Staging
Who is in control?
What is
‘Pre-Inspection?’
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.
PRE-LISTING Home Inspection
DOESN’T THE BUYER DO THE HOME INSPECTION?
All Negotiations, including real estate, are all about negotiation and control.
Home Staging
Who is in control?
PRE-LISTING Home Inspection
Data on where most sales fall apart: attorney review, home inspection.
Fall Thru Percentage 2007: 26%Fall Thru Percentage 2010: 10%.
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.
Weichert Family of Companies
What will a real estate company
do for me?
Making Your Purchase as Making Your Purchase as Smooth as PossibleSmooth 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.
• Time is money.
The Weichert The Weichert DifferenceDifference
• Stress kills.
• Time is life.
Educate You.
Negotiate on your behalf.
Offer advice on due diligence.
Manage all aspects of the transaction
process.
What Will a Weichert Agent Do for Me?
We’re Here to HelpWe’re Here to Help
The Entire Process is reviewed by Legal Council.
Become a Fan!
www.facbook.com/weichertprinceton
www.weichert-princeton.com
We post a ton of great market data on these two sites.
Resource and website list:
Realtor.org
http://www.facebook.com/pages/
NAR-Research/73888294183#
Remodeling.com
Resource and Website Resource and Website ListList
http://www.realtor.org/research/research/housinginx
Remodeling.com
www.Otteau.com
www.Pre-listing-inspection.com
Resource and Website Resource and Website List:List:
www.Housemaster.com
www.Stagingshoppingcenter.com
Resource and website Resource and website list:list:
www.Stagedhomes.com
www.realestatestagingassociation.com
www.realtytrac.com
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