Monday Morning Coffee with Melissa

NEW GUIDELINES FOR FHA LOAN REFINANCING

The doors to FHA mortgage refinancing appear to be open once again and it appears that literally overnight, getting approved for an FHA refinance has become faster, easier and more streamlined.

First of all - what is an FHA mortgage?  The FHA (Federal Housing Administration) has been in existence since 1934 when it was founded in the course of the Great Depression.  An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan that is provided by a FHA approved lender.  These loans require a mortgage insurance premium (MIP) equal to a percentage of the loan amount that is required at closing.  FHA loans are more accommodating than other mortgages and because they require less down payment than a conventional mortgage have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford.  FHA mortgages has become more popular due to the favorable terms they offer compared to other loan types.  

It appears FHA wants to see more homeowners qualify for the FHA Streamline Refinance so it's making a small change to the rules.  Now FHA-backed homeowners will get access to refinancing programs with no income verification, no employment verification and no credit check.  In a nutshell - if you have an FHA mortgage, you can refinance it!  EVEN if you are underwater (you owe more on your home than what it is worth in this market).

Why would FHA want to offer this?  Because it is in their best interest to put all FHA-backed homeowners into the lowest mortgage rates possible because with lower payments, in theory, come fewer defaults and fewer claims.  

If you have been turned down in the past for any of the above reasons, try again.  Call your lender and find out if you now qualify.  If you have further questions on this program I recommend contacting Jason Levine at Mortgage Capital Associates in Freehold, NJ. He will be happy to provide you with the latest information and is a lender I trust and know will provide you with the best rates and service in the industry.

I am hoping we start to see more of these programs available in the future.  We need to help all families who are truly struggling and want and need to stay in their homes. 

FULL DAY KINDERGARTEN OFFERED IN FREEHOLD & MANALAPAN TOWNSHIPS

This year Marlboro introduced its Kindergarten Complement Program (KCP) and it was a huge success.  Due to the favorable outcome, Marlboro will once again offer the program in 2012-13.

You can get detailed information from their website: www.marlboro.k12.nj.us.  Here you will find the application, tuition costs, lottery drawing date and frequently asked questions. 

This program is available to Marlboro residents only and is designed to complement the schools current half-day kindergarten program by providing an additional fours hours of time at the Marlboro Early Learning Center.   

Selection of the five KCP classes will done via one lottery.  If more students apply, a waiting list will also be selected via lottery.  The lottery drawing is being held March 14 at 10 AM at the Marlboro Learning Center and the tuition for the school year is $4,750.

Freehold Township implemented full day kindergarten in September 2004 and has since been well received by parents, teachers and children.  This program took four years to develop and involved researching community trends, gathering input from teachers and studying many curriculum models.  The township gives credit to the community’s support of the school budget and vision of their Board of Education for making this program possible.

As a mother of 2 ½ year old twins, residing in Manalapan Township – I would like to know when Manalapan Township will be offering this program? And hopefully it will be within the next 2 ½ years!

 

 

9 TIPS FOR GETTING YOUR HOME SOLD IN 2012

In this competitive real estate market of 2012 - many sellers ask me how do I sell my home quickly and for top dollar?  Here is my advice and tips on selling your home quickly and for top market in today’s market:

• PRICE!!!! Price it right from the start.  Homes priced correctly from the beginning will sell much quicker than a home that is overpriced and then slowly reduced several times.  In this market - the best strategy is to price it right from the beginning.  I am not saying you should under price your home but in today's market being priced "competitively” is not enough.  You need to a COMPELLING price! I understand many sellers are afraid of doing this because they feel they will end up negotiating down from the list price, however a good agent can defend your price aggressively and buyers will easily see they are getting a great value even if they have to pay full price.  It is possible you could start a bidding war and get more than your listed price.  As a seller you cannot be committed to both your price and committed to moving. 

• MARKETING & EXPOSURE - Over 90% of buyers search for their new home online.  Having your home on all major real estate websites is key.  Not only having it on the websites but also making sure the description is accurate and describes the home in detail, along with several professional photos.  Social Media is also a great way to expose your home: Facebook, You Tube and Twitter are resources your agent should utilize to get the word out and market your home.

• PHOTOS & VIRTUAL TOUR - When a buyer comes to view your home that is really their second showing.  Their first showing is online and as they say "you never get a 2nd chance to make a 1st impression".  This is even more so when selling your home.  You should provide as many photos as possible and preferably by a professional photographer.  If you have a pool and it is the winter months, try to obtain a picture when the pool was opened during the summer months so buyers can get an idea of how it looks during the summer season.  Adding a virtual tour provides the buyer with different angles and views of your home and in my opinion is a must have for every home being sold.  

• DEPERSONALIZE & DECLUTTER: Removing photos and personal items is important because you want the prospective buyer to visualize themselves living in your home. If you have photos of your children, grandchildren, pets etc... everywhere in the home it makes it difficult for the buyer to do this.  Declutter, Declutter, Declutter.... no one wants to see all your collections and other stuff.  Again, they want to imagine their own items in your home.  Too many things can make rooms appear smaller.  Leave enough furniture to make it look livable and put the rest in storage.

• HOME STAGING - Many homes can benefit from home staging.  I provide my sellers with a home staging consultation.  In this market it is the crème puffs that sell (the ones that look beautiful!).  It is important to take the time and incur the expense to make your home look its absolute best.  The national statistics state that 94% of staged homes sell on an average of 29 days or less and for every dollar invested you will get a $3.00 return.  Many buyers today can not see past things and have difficulty visualizing what could be - you need to make it as easy as possible for them - staging your home does this and will provide you with more money in your pocket at closing.

• CURB APPEAL - The little things do matter: clean windows, edging sidewalks, trimming bushes, plants and flowers and other small maintenance items go a long way.  It also shows the buyer that you care about your home and have maintained it throughout the years.  

• FLEXIBILITY - Make your home easy to view.  Many sellers may not want a lockbox or may want to be home when buyers view their home.  My recommendation is to always have a lockbox on your property and whenever possible to leave your home when the buyers preview it.  If you must be home, DO NOT follow the agent and buyers throughout your home and point out every detail about your house - buyers do not like this and it makes them feel very uncomfortable.  If you have to be home step outside or stay away and allow the buyers agent to do her job.  If there are specific things you want people to know about your home make sure to convey this to your listing agent so that she can communicate it clearly to all the buyers agents.  

• COMMISSION - Always offer the buyers agent at least 2.5% commission.  There are 2 sides of the commission - the buyers agent commission and the listing agent commission.  Agents do not like to show homes that offer less than 2.5% commission.  I know it may sound harsh but that is the reality.  In fact, some agents, (I will not mention names) will not show a buyer a home if the commission is below 2.5%.  You want to give the buyers agent the incentive to sell your home.  If you can offer 2.75% or 3% even better.  Another idea is to offer the agent a bonus if they sell your home within a specific time frame.  

• THE RIGHT AGENT - Lastly but probably most importantly - hire the right agent!  You don't have time to quibble over a percentage point on commissions.  Hire the best agent.  How do you determine the best agent?  You want an agent that is determined, aggressive, passionate and committed to getting your home sold.  You also want an agent who knows your area, competition and local market.  In my opinion there are 2 types of realtors: a real estate agent and a real estate expert advisor - You want the expert advisor.  An agent will deliver you information, list your home, put a sign in the yard, do an open house, put it on the MLS and internet and pray they get a buyer.  An expert advisor will advise you and consult you, educate and guide you, hire a professional photographer, staging consultant and SEO company and then aggressively market your home, provide you with communication and feedback and not just "list" your home but "sell" your home!

There you have it - my 9 tips for getting your home sold as quickly as possible!  A few other things I would like to mention.  I do not believe in advertising your home in the newspaper.  In my opinion this is a waste of money! Also I feel agents that advertise your home in the newspaper are not promoting your home they are promoting themselves and/or their company.  Buyers are not looking in the newspaper anymore they are looking online.  An educated experienced agent will allocate your marketing dollars online.  One other thing I don't believe in is Open Houses.  In my experience buyers that come to open houses are not serious buyers.  They are usually noisy neighbors or people driving around with nothing to do.  If a person is serious about buying a home they are going make an appointment to see your home at their convenience with a realtor.  Open houses again, provide the agents the opportunity to market themselves and try to obtain new buyer leads for themselves.

2012 is looking positive for the real estate market and I am confident if you follow my recommendations your home will sell faster and for more money.

 

PRICE & NEGOTIATION

Many buyers who are fortunate enough in this economy to make a cash offer feel that cash is king and that they are owed a price concession because they are able to pay cash with no mortgage which means no lender issues, appraisal contingency and a quicker and smoother closing.  However, not all sellers agree with this.  Sellers who feel there home is valuable and desirable may prefer to work with an offer from a well-qualified buyer who will need to obtain a mortgage but who will also pay a higher price.  It all depends upon the sellers’ situation.  Therefore, before presenting an offer and negotiating it is recommended that you try and understand as much as you can about the other party and their situation.  

For example if a seller is relocating and moving to an area where home prices are higher, they most likely will go for the highest-priced offer in a multiple-offer situation rather than a lower but all cash offer.  In this particular situation every penny will count for the seller when purchasing their new home.  However, if it is an estate or inheritance property the seller may want to close on the home as quickly as possible, with as few headaches as possible and in this case would most likely choose the cash offer over a higher priced offer with a mortgage.  

If you are a buyer and house hunting in this market it may be very likely that you don't want to negotiate.  However, the only time this is usually effective is if your offer is the only offer and if there is little or no activity on the property.  And even in this scenario if the house is priced correctly, it may only be effective if you make a full price offer.  In this market you are better off assuming there will be some negotiation involved and not putting everything upfront at once.  When negotiating on a home it is more than just price.  The fewer contingencies you have, the more money you are putting down and the cleaner the contract, the more attractive it will be to the seller.  One other point - if you are a buyer in this market -  don't waste your time with sellers who are firm at an unreasonable price.  Continue to look at homes and wait until these sellers become more realistic.  

It is very important to have an expert buyer's agent to guide you through the transaction.  The agent can advise you on the best way to proceed in order to secure a successful outcome.  For further information, please do not hesitate to contact me at: mdesantis@melissadesantis.com or via cell phone at 732-757-2522.  My team is dedicated to providing expert advice and guaranteed results.

 

REAL ESTATE APPRAISALS

In this competitive and challenging real estate market real estate appraisals can often make or break a deal.  First off I want to explain what a real estate appraisal is.  A real estate appraisal helps to establish a property's fair market value - it is an expert opinion of a certified, state-licensed professional who determines the value of the property.  

How does this professional determine the value of the property?  There are two primary methods for residential real estate: The Sales Comparison approach and the Cost Approach.  The cost approach is primarily used for new construction and is based on reproduction costs.  In this method the appraiser will determine the cost to replace the structure on the property if it were destroyed.  The sales comparison approach compares the subject property with with three or four similar homes that have sold within the area, preferably in the last six months and within a 1 mile radius.  This comparison considers specific elements such as, lot size, square footage, garage, basement - unfinished or finished, age of home and recent upgrades or additions to the home.  

The process begins with an inspection of the property by the appraiser and usually includes a detailed report explaining how the appraiser determined the value of the property.  The appraiser will note the size and condition of the house, improvements made, any serious structural problems, such as cracked foundations or wet basements and comments about the neighborhood and surrounding area.  

The appraisal is a very important piece of the home buying process and as I stated before - it can make or break a sale.  For example: let's say you find your dream home and the purchase price is $450,000.  You've already been pre-approved by your lender and both buyer and seller have agreed upon this price.  You've submitted all your paperwork to your mortgage broker and your are already deciding where your furniture will go and what paint colors you will choose.  However, you get an unexpected call from your lender saying the property did not appraise at $450,000.  Now you discover that your dream home is only valued at $375,000.  Your lender will not loan you more than the value of the home and in this market most buyers wouldn't pay for a home that did not appraise.   So now what happens?  Is the deal over?  Can anything be done?

First, you must look at what may have caused the low appraisal.  It could be a number of factors including the appraiser may have been from out of the area and did not use valid comparable sales, the appraiser used distressed properties and/or foreclosure as comparables, the home was just overpriced to begin with or it may be due to factors that the homeowner could correct, such as repairs or maintenance.  Most banks have a process by which you can dispute an appraisal.  The buyers or sellers real estate agent can supply other comparable sales and explanations as to why they think the appraisers value if off.  This dispute will take some time and if it fails you may still have options.  Other options could include, switching lenders and ordering a new appraisal, reducing the purchase price of the home or the buyer could bring more money to closing.  It is important that all parties work together if this happens so that you can try to find a suitable solution for both the buyers and sellers.  

Unfortunately in this market this scenario is happening more than ever throughout the country.  I am dealing with this factor in more and more of my home sales than ever before.  For this reason, it is very important that the seller price the home correctly.  A seller should make sure their real estate agent provides them with accurate and timely information so that they do not waste time marketing and showing their home at a price it will not appraise at.  

A home appraisal is not just another cost added to the buyers bottom line.  It is a protection for everyone involved in the home buying process and will help you make a more informed decision about purchasing a home. 

 

 

 

MARLBORO WELCOMES WUJIANG CITY, CHINA AS SISTER CITY

Marlboro has signed an agreement with Wujiang City, China to formally establish an association between the two cities to allow an exchange program for teenagers from the two municipalities to experience life in another country, under the supervision of their host family.

The agreement which took nearly 3 years, was signed on December 9, 2011.  Marlboro Mayor, Jonathan Hornik, explained that the details of the program have not been outlined yet, however, said the planning process will not take much time.  Hornik commented, "We have opened up the sister city to allow our residents to go over and learn about the Chinese culture, the Chinese experience and to see what it's like on the other side of the world."

Both cities share similar climates so the exchanges will probably take place in the warm weather.  The signing of the agreement was celebrated by exchanging of gifts with delegates from China.  The mayor was given a silk portrait and a silk woven sign, which is a common product in China decorated with characters for harmony and cooperation. Members of the Marlboro Township Council presented Wujiang with a commemorative plaque and bottles of liqueur shaped in the image of the Statue of Liberty.  

This is a wonderful opportunity for Marlboro Township - it is an opportunity for students to benefit in ways a classroom cannot provide.  Although Wujiang has similar arrangements with cities in Australia, France, Japan and South Africa, Marlboro is the first and only American city to partner with Wujiang. 

ANNUAL HOLIDAY HOUSE TOUR - FREEHOLD, NJ

Melissa DeSantis

December 9, 2011

 

The Freehold annual Holiday House Tour will showcase several of Freehold Borough's historic properties.  The tour is scheduled to be held December 10, 2011.  Tickets are $15 for adults and $5 for children. You can purchase tickets at Borough Hall or contact Lynda Keller at 732-421-3750 or email her at bluefairy614@gmail.com

The tour begins at The American Hotel in downtown Freehold on East Main Street.  Warm beverages and baked goods will be served along with the sound of caroling.  A shuttle bus will transport between tour stops and pictures with Santa will also be available.  Included in the tour will be the First Presbyterian Church of Freehold, The Freehold firehouse, the Monmouth County Historical Association and homes located at 74 Broadway, 96 Broad Street, 47 Brinckerhoff Ave and 12 Vredenburgh Ave.  

The home on Broad Street may be one of oldest homes in the Freehold area dating back to 1860.  The house was renovated in 1995. The home at 47 Brinckerhoff is called Candyland Chateau and is a brick ranch.  It was built in 1939 and its beautiful Holiday decor has warmed families in the area for decades.  74 Broadway is a colorful French Second Empire home and is filled with an unusual collection of antiques, curios, photos and artwork.   The home at 12 Vredenburgh was built in 1924 and was one of several Sears Craftsmen homes.  It features a Santa collection in the home.  

Families are encouraged to enjoy this annual tour and it is a wonderful holiday celebration.

THIS HOLIDAY SEASON FOOD PANTRIES NEED OUR HELP

Don't forget to help food pantries help others

Melissa DeSantis
November 17, 2011

The holiday season is right around the corner and many of our local food pantries in Monmouth County are collecting items to help individuals who may be struggling financially during this time.  Unfortunately, according to the local pantries the number of individuals who need help has been rising every year due to the sluggish economy.  

Freehold Open Door in Freehold Borough on Throckmorton Street serves Freehold Borough and Township, Colts Neck and surrounding towns.  They are currently accepting turkey donations on November 20 from 12 to 5 pm.  You can also donate any Thanksgiving items as week: stuffing, corn, cranberry sauce, potatoes, etc... For more information visit Freehold open Door.

The Samaritan Center on Route 522 in Manalapan is also accepting donations. The Samaritan Center serves residents of Manalapan, Englishtown, Marlboro and Millstone. for more information on this Pantry visit The Food Bank of Monmouth & Ocean Counties.

Many religious organizations also collect and donate to those in need as well. I encourage anyone who is in the position to do so to take the time this holiday season and help those less fortunate. 

ENGLISHTOWN TOUGH MUDDER IS A SUCCESS

The Tri-State 2011 Tough Mudder was held last weekend in Englishtown, NJ.  The weather was unseasonably warm for November and this particular Tough Mudder was the biggest event to date with over 10,000 participants running on Saturday and Sunday.  

What is the Tough Mudder?  Some consider it "The toughest Event on the Planet".  It is a 12 mile obstacle course designed to test your strength, staminia and endurance.  Although challenging, many feel it is one of the funniest events ever and say how they hate to love it so much!  This years course included 32 obstacles verses the 19 last year.  It is sprawled over the Englishtown Raceway Park in Englishtown, NJ, (the same motorrsports complex used for car racing).  It is filled with fun and camaraderie and many participants create teams wearing uniforms or costumes.  Some of the courses throughout the 12 mile event include: UNDERWATER TUNNEL- contestants pop up and down to pass through a series of underwater tunnels, MUD MILE - here they sludge through a stretch of mud waist high, BERLIN WALLS - work with other tough mudders to get over 12 foot high walls, RUBBER NECKING - Carry a car tire around a race track, FIRE WALKER - participants run down a path lined on both sides with blazing kerosene soaked straw which makes the flames hot and smokey and many other courses, however I feel the most challenging course would be ELECTROSHOCK THERAPY - where they run through dangling wires - some wires are dead but others carry a 10,000 volt shock!  One tough mudder commented "Yes, I think this is all a little crazy that is the point! Well...at least it's for a good cause."

The Tough Mudder supports the Wounded Warrior Project and to date has raised over 2 million dollars. The Tough Mudder was founded by William Dean, an Englishman,who was inspired to create something different that would test not only toughness but fitness, strength, stamina, mental grit and stamina as well.  

The Englishtown Tough Mudder was a huge success for all involved.  As a spectator, it was an "open" course so that you could cheer for family and friends while taking pictures - it was encouraging to see the wounded veterans running the course and comical to watch the man with a cigar in his mouth throughout the entire event.  

It has been suggested that if you decide to enter a Tough Mudder event to do so with a group of people.  It makes it more fun and rewarding.  For further information and photos on Tough Mudder and upcoming events you can visit: www.toughmudder.com.  If you have any questions about the Englishtown/Manalapan or Monmouth County area, as well as all of your real estate needs,  please do not hesitate to contact me, as I am always here to help in any way I can.  You can also join my Facebook Page.

 

 

 

I PLAY AMERICA OPENS ITS DOORS IN FREEHOLD

On 11-11-11, I Play America in Freehold NJ, opened its doors.  The indoor New Jersey amusement park, located at 110 Schanck Road in Freehold NJ had been anxiously anticipated in the community for months.  I Play America is an "innovative and upscale indoor theme park where city meets the boardwalk", described their Public Relations Representative Joanne Fischetti.

The day kicked off with a ribbon cutting and dedication ceremony with music by Jersey's Shores 94.3 radio station.  The doors opened when the clock hit 11:11 AM to the 115,000 square foot indoor theme park.  Inside guests found a wide variety of entertainment for all ages to enjoy including, indoor go karts, a 4-D move theatre, laser tag, bumper cars, midway games, bowling lanes, video games and a selection of boardwalk rides.

A variety of dining options pleased the crowd from pizza and burgers to fried oreos, funnel cakes and more.  At 4pm, the Englishtown, NJ based ICONic Boyz took the stage to entertain the families.  

I Play America is just what Freehold Township and the local community needed. This exciting upscale family entertainment center is sure to bring memories to young and old for years to come.  

For more information please visit www.iplayamerica.com.  If you are looking for further area information or considering moving to the Freehold orMonmouth County area, please visit my website at www.melissadesantis.com.