Lawmakers Tout Tax Credits For NJ Home Buyers

as reported by BRUCE SHIPKOWSKI, Associated Press Writer
TRENTON, N.J. (AP) ― Concern over New Jersey’s struggling housing market has spurred state lawmakers to develop a proposed refundable tax credit program for home buyers.

Proponents say the measure, which was passed Thursday by the Assembly Appropriations Committee and sent to the full chamber for a likely vote this week, gives potential homeowners a strong incentive to buy now.

And those purchases would likely provide a boost to other businesses, such as furniture makers and sellers, hardware stores and insurers.

The program would apply to homes bought in 2010, which would then have to be the taxpayer’s principal residence for three years. Home buyers would get tax credits of up to $15,000 — or 5 percent of the home purchase price, whichever is less — that would be divided into three equal credits that could be claimed over three taxable years.

The total credits available under the program would be capped at $100 million, with $75 million allocated for the purchase of new homes and $25 million for previously occupied homes. Home buyers would be able to determine their eligibility for the program through an automated process administered by the state Division of Taxation.

“This is a creative and sensible way to revitalize our housing market and our economy,” said Assemblyman Vincent Prieto, D-Secaucus, who is among the bill’s primary sponsors. “Much direct and indirect economic activity is generated through new home construction and home re-sales, so this is the smart thing to do in this tough economy.”

Shopping for a Condo? Ask These 4 Questions before You Buy

Condominium homes have always been, and will likely always be, an efficient and economical route to becoming a first-time homeowner. They can offer the comfort, prestige, and even luxury appointments that apartment living may lack, often at a cost that is not much different than rent. With the current first-time home buyer tax credit and the deadline for the move-up tax credit fast approaching, I advise you move fast on any condo purchase you may be considering.

With my experience as Member of the Top 5 in Real Estate Network®, I am well aware that not all condominiums are the same, however, so make sure you ask the following four questions before you buy:

What will you own? Read the bylaws and be sure you understand what you will be responsible for and what belongs to the condo association. Will you own the boat dock at the back of your unit? Can you elect to build a spa on your patio? Generally, unit owners own and are responsible for the interior of their condos, while costs for outside maintenance including common areas and sewer lines are the association’s responsibility.

Who lives there? Are the majority of residents owners or renters? Owners generally take more interest in proper maintenance and are more willing than renters to serve on the association board and enforce complex rules and regulations–including the regular collection of homeowner dues.

How effective is the homeowner’s association? Do they have legal counsel, reasonable funds and a capable, caring volunteer board? One way to judge is to check with residents about restrictions, oversight and timeliness of repairs and upgrades. Another is to take a hard look at the grounds and be wary of signs of neglect.

What about special assessments? The association should have the power to special assess for needed, one-time large expenditures. Otherwise, things that need to be done may never get done at all, leaving the complex vulnerable to disrepair and lowered property values.

Don’t miss this great opportunity to become a homeowner or to downsize by buying a condo (remember, the move-up tax credit does not require you to move to a larger or more expensive home). Please e-mail me for more tips on buying a condo and forward this information to any family and friends who may be in the market as well.

Relocating? Top 5 Reasons to Find the Right Real Estate Agent

Believe it or not, even though selling and buying a home is one of the most stressful, most important financial and lifestyle investments you’ll ever make, most people spend very little time in selecting a real estate agent to work with. Even worse, most people tend to believe that all real estate agents are the same and possess the same skill sets and capabilities.

As a member of the Top 5 in Real Estate Network®, an elite group of real estate agents that requires members to meet a series of stringent criteria before joining, I know all too well how wrong the above perceptions are. When confronting any real estate decision, especially one that involves relocating to a different region or state, it is critical to select an agent with the necessary skills, experience and proven results.

Here are the top 5 reasons to use a professional real estate agent to handle your relocation:

1. The amount of homework involved. Moving to a new area means conducting a lot of research to learn about school systems, recreational activities, community services, etc. A seasoned, qualified agent will do most of this work for you and will suggest accurate resources for you to search out on your own.

2. The need for sounding boards. A relocation places a fair amount of stress not just on you, but on your entire family. There will be lots of concerns, questions and anxieties involved. A professional real estate agent has dealt with this situation hundreds or thousands of times and will know how to listen and respond with the right information to allay the fears of your entire family.

3. Settling into the new area. Successfully acclimating to the new area means quickly finding access to your favorite sports, hobbies, interests, etc. A professional real estate agent is well-steeped in his or her community and will help get you and your family involved in the things you love to do right away.

4. Gathering the right paper work. From school records to medical information, there is a lot of paperwork that needs to relocate with you. Your real estate agent should be able to provide you with a checklist of all the materials you will need to gather and transport well in advance.

5. A network of professionals. Successfully relocating to a new area requires not just working with a professional real estate agent, but many other credible professionals as well, such as builders, landscapers, handymen, child care providers…the list goes on. The right agent is well entrenched with many proven professionals in all of these fields and more, and can serve as a single hub for great referrals. Top 5 Members have access to a large network of other Top 5 Members across North America, ready to assist in your successful relocation.

Handled correctly, a relocation is a positive, exciting experience—a fresh start, not a painful mistake. If you’d like to learn more about ensuring a smooth and happy relocation, feel free to e-mail me and I’d be happy to share what I know. Please pass this e-mail along to family and friends who might also have a relocation in their future.

Sincerely,

John Bendall
RE/MAX Classic Group
Office: (908) 231-0700 650
Mobile: 908-578-1485
john@bendallgroup.com
http://www.centralnewjerseyhomes.com

SCARPA NAMED AS NEW MANAGER AT RE/MAX CLASSIC BASKING RIDGE

(January 28, 2010) – John Bendall, broker/owner of RE/MAX Classic Group Realtors, announces that Anthony Scarpa has been named Manager of the RE/MAX Classic office in Basking Ridge, NJ.

“We are thrilled to welcome Tony to our RE/MAX Classic team and to have him in charge of our Basking Ridge operation,” Bendall said. “Not only does he bring 30 years of experience to the job, but he also has an extensive background in several key real estate market segments.

“This move clearly demonstrates our ongoing commitment at RE/MAX Classic to give our Realtors the best support possible in the industry to help them capture more market share,” Bendall continued.

During his career, Scarpa has served as a vice president of three different REO divisions, as a branch office manager and as a broker/associate. He is a certified specialist in such areas as relocation and luxury home marketing as well as in land and new construction, the segment in which he got his start in 1980.

Scarpa, who also a New Jersey registered builder, has amassed a total sales volume of more than a quarter-billion dollars over the past three decades and has won numerous state and national awards as a top-producing real estate professional. In addition, he has wide-ranging knowledge in both the foreclosure market and in lender relations.

The RE/MAX Classic Group Realtors office in Basking Ridge is located at 47 South Finley Avenue (ZIP 07920) and can be reached at (908) 766-9300.

In addition to its Somerset County-based offices in Basking Ridge and nearby Branchburg, RE/MAX Classic Group Realtors has operations in Berkeley Heights, Union County, and in West Milford, Passaic County. You can learn more about RE/MAX Classic by visiting their Web site at www.classicgroup.remax-nj.com.

Lower Your 2009 Tax Debt

As a Top 5 in Real Estate Member, I counsel many clients on a wide range of financial concerns, not just their real estate investments. As 2009 comes to a close, I wanted to alert you to some important information that could save you money come tax time.

In addition to the $8,000 tax break for first-time home buyers and the newly expanded tax credit that includes move-up buyers, new tax-relief bills passed in 2008 provide for a number of other tax breaks that may lower your 2009 tax debt. Plan now and review these breaks with your accountant to see if they could help reduce your tax liability in 2009 and beyond:

• Payroll Tax Credit. For 2009 and 2010, Congress gave workers a 6.2% credit on earned income, applied as lower income tax withholding (there are caps based on income). Recipients of Social Security, Railroad Retirement benefits or Supplemental Security Income, some federal workers, and veterans with disability pensions will get a one-time $250 check. Self-employed workers may be able to reduce quarterly estimated payments to get advance benefits.
• Larger Personal Exemptions. For 2009, each personal exemption you can claim is worth $3,650—up by $150 over 2008.
• Higher Standard Deductions. The standard deduction for married couples filing jointly rises to $11,400 up by $500 from 2008. For singles, the amount increases to $5,700—up by $250 over last year, and heads of households can claim $8,350, a jump of $350.
• Tax Credit for College Tuition. For 2009 and 2010, the Hope credit is replaced by a new credit of up to $2,500 per student a year for four years of college, not just the first two years. It now also covers the cost of books, but begins to phase out based on higher incomes.
• Child Tax Credit. If the credit exceeds the filer’s tax liability, all or part of the credit will be refunded if the filer earns more than $3,000 – down from $12,550 in 2008. (Also, for families with three or more children, the maximum earned income tax credit for 2009 and 2010 rises by $628.50)

Other changes that could affect you include higher income limits for deductible IRAs and Roth IRAs, higher estate tax and gift tax exemptions, credit for energy-saving home improvements, and partial exclusion of unemployment benefits.

To understand how the new tax breaks could save you money, consult with your financial advisor or e-mail me for more information. Be sure to pass this email along to your family and friends—in these tough economic times, we could all use a tax break!

As a leader in real estate, I am repeatedly asked specific questions about today’s market – especially in today’s economy. In an effort to provide more information to my community, I am sending you this Top 5 Real Estate Social Networking Systemsm “e-Article,” in which I provide useful real estate information to my real estate networks. If you find the enclosed information beneficial to your family and friends, I encourage you to forward it to your “social network” as well.

Top Remodeling Projects for Boosting Your Home’s Value

Whether you are thinking about putting your home on the market or you are concerned about increasing your home’s equity in a time of depreciating house values, knowing which remodeling projects yields the best return on investment, is critical.

Not all home remodeling projects are equal in terms of ROI, however. Here are the National Association of Home Builder’s suggestions for the best ways to add value to your home:

• A Home Office Remodel
With more and more people telecommuting in today’s difficult business climate, home offices are becoming less of a luxury and more of a necessity. Creating a state-of-the-art space for potential teleworkers is a surefire way to increase your home’s value.

• Renovate or Add a Family Room
A family room is an excellent way to make existing homes more like new construction. Take into account what homes in your area are like. People like to purchase homes that blend with other homes around them.

• Replace the Roof
The roof is one of the first impressions people have of a home. Replace an old roof or change the character of your home by looking into architecturally styled roofing tiles.

• Landscape Your Yard
Landscaping is also an integral part of your home’s first impression. A professionally landscaped yard adds value to your home and increases your living space.

• Replace Old Windows
Thirty percent of a home’s energy is lost through its windows. Replacing old windows with energy-efficient ones ups the overall quality of the house and saves you money on monthly utility bills.

• Remodel Your Basement
Do you have space that serves as a black hole of unused items…like your basement? Remodeled basements make excellent game rooms or guest suites, adding value to your home without adding space.

• Paint, Paint, Paint
It’s been said over and over but can’t be emphasized enough. Hire a professional if you need help and keep the colors neutral if you’re looking to sell.

• Remodel Your Kitchen
Kitchens sell a home, and in this case, size does matter. But a kitchen remodel is a long-term investment; you’ll see payback 10 years down the road. Sometimes doing it yourself can save money, but always bring in a professional for the big jobs.

• Remodel or Add a Bathroom
A bathroom remodel can mean making the most of your current space by upgrading fixtures, flooring and lighting. Or add a bathroom and automatically increase the value of your home.

For more information on adding value to your home, visit www.nahb.org/remodel, or in Canada, www.chba.ca.

As a Member of the Top 5 in Real Estate Network®, I am happy to provide specific remodeling suggestions based on your individual needs and home values in your neighborhood. Please e-mail me for more information or to receive a complimentary copy of Top 5’s Home Improvement Q & A Guide. Also, if you feel this article can be of benefit to your family and friends, please feel free to forward this email to them.

Joel L. Naroff
Chief Economist

INDICATOR: June Existing Home Sales
KEY DATA: Existing Home Sales: +3.6%; 1-Family: +2.4%; Condos: +14.0%

IN A NUTSHELL: “The turnaround in the housing market appears finally to
be here and indeed may be gaining some speed.”

WHAT IT MEANS: Housing may no longer be the weakest link. Existing home
sales rose in June, the third consecutive monthly increase. Demand has clawed itself back to where it was a year ago, a very nice signal that the market has not only hit bottom but is making its way back. Importantly, demand rose in every region of the country. In the West, which is the poster child for problems, sales were well above what they were a year ago.
Yes, many of those purchases were for foreclosed homes, but a sale is a sale. While demand was stronger for condos and coops than signal-family structures, we shouldn’t take much from that. The condo market is more volatile. Meanwhile, sales of single-family homes were actually higher in June than they were in June 2008. The inventory of homes for sales fell a little but is still too high and median prices are down by over 15% for the year.

MARKETS AND FED POLICY IMPLICATIONS: This was a very good report. One or two months of gains doesn’t tell us a lot. Three consecutive months of rising sales provides so hope that an upward trend is actually under way.
The increases are also well distributed across the country. While some
may argue this is just a rally being caused by tax incentives and foreclosures, I disagree. Does it really matter what type of home is sold?
Not really. I believe that prices have come down significantly enough to encourage buyers to start making offers. We are also seeing prices start to rise off the bottom. Given that so many of the sales are foreclosures, the increase in the purchase price, even if it is not adjusted for seasonal trends, is still a good sign. When buyers see prices rise they get off the fence so they don’t get priced out of the market. In addition, the belief that if they wait they can get a lower price disappears. Thus, look for demand to continue to improve. The markets should like this report.
Investors are looking for reasons to believe earnings will rise going forward and a turn in the housing market can only improve expectations. As for the Fed, Mr. Bernanke commented that he thought the market was stabilizing (Fed Chair rarely goes out on a limb) and that indeed seems to be the case. This report reminds us that investors will soon have to focus more closely on when the Fed will start removing some of the stimulus in the system and also how fast they will do so. When we get to that point in psychology, we can really believe the recession is over.

There seems to be people scamming consumers on Craig’s list using realtor’s rental listings. They copy most of the details from a posted rental ad, change the price to make it cheaper. Then when potential renters get In touch with the scammer they get the renter to send them a deposit. If it all possible please do not put rentals onto Craig’s list.

The below listing is one of my agents and it is on the market for rent at a MUCH higher price, see what this guy did…..

——————————————————————————–

From: Gary Megson

To: potential renter
Subject: Re: townhouse for rent

Good day ,

Sorry for the late response.The Home is still available for rent for $1350.i am in West African,Nigeria and i will reside here for some time due to my current assignment.And we are on a campaign program to West African,Nigeria tagged “Empowering Youth to Fight Racism, HIV/AIDS, Poverty and Lack of Education”.I just need someone with an open heart,love and clean to occupy the home and put all my worries off concerning the maintenance of the home, since i am not residing there for now and presently my house is still available for rent for $1350 (per Month) including the utilities like hydro,washer,electricity and security..note that you are free to go and view the house but you will not be able to see the inside.

Also the keys to the Home are right here with me, and the lease document. Which i can send to you after all necessary agreement has be accepted. Also i will like you to know that the rent charges is not really the issue ,but your absolute maintenance of my Home , because that is the only valuable property my late father left behind, and it also took him so much time and money to put all those facilities in place.,so i will solicit for your absolute maintenance of this House and want you to treat it as your own,is that taken,it is not the money the main problem but want you to keep it tidy all the time….below is the location…

House Address: 171 Patriot Hill Dr
Basking Ridge, NJ 07920

Available Date: Now

N.B:Note that i am in West African , Nigeria and will not be able to show you the Home. You can go and have a look at the exterior and also you will be paying a deposit payment of $1000 which is refundable back to you OK.

Property Information
Type:Single Family Home
Bedrooms: 3
Bathrooms: 2
Square Footage: 1,450 square feet
Neighborhood:
School District :
Elementary School:
Middle School:
High School:
Interior
Kitchen
Dishwasher
Microwave Rooms
Amenities
Fireplace

Lease
Availability: Immediate Lease Terms:
3 Months
6 Months
9 Months
1 Year or More
Application Fee:
Deposit: $1000
Rent: $1350 per month
Policies
Pets: Allowed
Call for details Smoking:
Exterior
-2 Dedicated Garage Spaces Community:
lovable Arena
So if you are interested in the Home you get back to me by filling the Rent Application Form Below:
RENTAL APPLICATION attached

Also the keys to the place are right here with me in West African and the lease document. Which i can send to you after all necessary agreement has be accepted. Also i will like you to know that the rent charges is not really the issue , but your absolute maintenance of my place, because that is the only valuable property my late father left behind, and it also took him so much time and money to put all those facilities in place

Looking forward to hear from you with all this details so that i can have it in my file in case of issuing the receipt for you and contacting you.
Best Regards…
***********************************************************************

In this case a woman actually sent $1000 to the scammer and our office has gotten 2 other calls from potential renters who thought we were renting the property at the discounted price.

So if you are looking to rent or buy Real Estate contact your local Realtor

If the listing or marketing agreement you had with your real estate agent and his or her company has, as the real estate industry says, “expired,” and you are looking to relist your property, make sure you educate yourself on the many vital factors that will influence the sale of your home.

Remember, there is only one reason why your home didn’t sell…and it isn’t price. While price is certainly one of these marketing factors, it is not the only reason why your home did not sell. As you re-evaluate the proper pricing strategy for your home, request an updated market analysis from your real estate agent, and make sure it details the current pricing trends for your overall marketplace, including:

1. Days on the market for properties in your specific price range

2. The list-to-sales price ratios for homes that have sold (the more recent the better)

3. Square footage cost (ask agents how and if cost per square foot may be relevant to price)

4. The number of price reductions or, where applicable, the number of price increases

5. The number of homes currently active in your price point

When re-evaluating price, keep in mind that in specific circumstances, a lower listing price can actually lead to a higher selling price. Because the laws of supply and demand essentially govern all pricing, a lower asking price can generate more offers on your home, ultimately resulting in a higher sales price. Discuss the current supply-and-demand metrics that may be influencing home values in our neighborhood with any agent you’re considering working with.

As a member of the Top 5 in Real Estate Network®, I make it a point to keep clients, friends and their families informed regarding vital and relevant real estate information through our Real Estate Social Networking System. If you know anyone considering putting their home back on the market, please feel free to have them contact me for a copy of There’s Only One Reason Why Your Home Didn’t Sell…and It Isn’t Price or simply forward this email to them. This information is vital and I will provide it free of charge and with absolutely no obligation.

Note: Please disregard this information if your home is presently listed with a licensed real estate agent.

John Bendall- john@bendallgroup.com

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn’t receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at “The Real Estate Summit: Advancing the U.S. Economy,” at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.