Here is some information for both home owners and home buyers that is worth a re-blog. If I can help you resolve your real estate problems - that's what I'm here for. Give me a call or send me an email - I will response.
For Homes on the Jersey Shore.....always Ask 4 Greg.
Many times there are circumstances that real estate professionals don't have to deal with on a regular basis, and power lines are one of them. Understanding what to do will keep your sale from being....Zapped!!!
I recently had a Realtor friend call me in a panic; a house he had just sold (a short sale he had been working on for months) was located near High Voltage (HV) power lines, and the underwriter didn’t want to approve the loan due to the property being located near the HV power lines. This was for a FHA loan, and there was some confusion as to the interpretation of the FHA guidelines.
What does FHA have to say:
The guidelines for this are pretty straightforward; however, the challenge is proving the property is located outside the easement.
The guideline from the HOC Reference Guide (Hazards and nuisances 1-18) states (this is also reaffirmed in HUD’s FAQ’s):“If the dwelling and related property improvements are located outside the easement, the property is considered eligible and no further action is necessary.”
To help my friend satisfy the underwriter (this wasn’t my appraisal) I put together a plat with the power line and easements, and the estimated location of the subject property. A better solution would have been to obtain a copy of the actual survey with the house and power company’s easements located on it, however, this is all I had access to (see photo below).
Below is an example of what to show the underwriter:
With this picture the Realtor was able to show the underwriter that the property met HUD (FHA) guidelines of being located outside of the easement for the power line. The actual location of the house could be verified with the plat from the title company, or one could be obtained from other sources. The main point is to show that the house is outside the easement.
What to do if built within the easement:
The real challenge comes when you’ve had someone who built a portion of their home, or added other improvements (fence, pool, garage, shed, etc.) located within the easement. HUD’s guideline for this is the following: “If the dwelling or related property improvement is located within such an easement, the DE Underwriter must obtain a letter from the owner or operator of the tower indicating that the dwelling and its related property improvements are not located within the tower’s (engineered) fall distance in order to waive this requirement.”
Below are two examples of where you might have a hard time proving that the improvements are not under the HV lines. Both pictures clearly show that the owners have built improvements under the HV lines, although the actual house wasn’t under the HV lines.
With improvement located under the HV power lines I would get the letter from the owner of the power lines indicating that the actual house isn’t under them. I would then seek a waiver from HUD (HOC). This is something that the lender has to do. But knowing what can and can’t be done can make all of the difference.
Similar comparable sales are needed:
The appraiser still has to address the effect on the marketability due to the property being located near a hazard or nuisance (external obsolescence), in this case the power line. The best way to do this is to have at least one or two comparable sales that similar exposure to the same type of hazard or nuisance.
If you are unable to find any similar sales that have sold near a HV line, then try to find similar sales near one of the following: a major freeway or busy road, radio or transmission tower, heavily used commercial property. Your goal is to find a similar sale that suffers from similar external obsolescence; in layman’s terms, something that buyers are going to have similar objections too and that can't be corrected.
How to keep your sale from being electrocuted:
In summary if you’re getting ready to list or sell a property that is located near high voltage transmission lines, I would do the following:
Get a plat of the property that shows the location of all of the improvements, as well as the easements.
Locate all improvement on the plat, measure the actual distance from the lot lines if necessary.
If there are no encroachments to the easement, then the property would qualify for FHA financing.
However, if there are encroachments the lender will most likely require a letter from the owner of the tower stating the designed fall distance of the lines (get the letter).
Have some similar comparable sales that sold near the same power line or something similar, even if they’re older sales (12-18 months).
With some proper pre-sale legwork you’ll be able to have a smooth transaction from start to finish, and no last minute shocking surprises.
If you have any questions, or Minnesota real estate appraisal needs (divorce, bankruptcy, tax appeal, or estate planning) please contact Michael at 612.599-2581, or use the form on the contact page.
During their real estate careers, many real estate professionals have watched a certain number of buyers trying to obtain their first home, lose homes they have found and would love to buy.There are a number of reasons this may happen.
Since homebuyers do not usually pay commissions on homes, it is important for them to understand that without professional real estate representation, they could be unnecessarily putting themselves at risk - Especially in today’s real estate marketplace.
Here are important points to consider:
(1) A desirable well priced home in a good neighborhood, can command a great deal of interest from homebuyers.Especially if it is in a brisk real estate market.A buyer who is slow to make a decision, and move quickly, will often watch someone else buy the house.
(2) If a buyer’s offer isn’t made attractive enough, they can lose out.A lowball offer on a house that is already well priced, and receiving loads of interest from several homebuyers, can find the buyer outbid.
(3) Failing to get prequalified by a lender, or being slow to answer questions from a lender, can cause a buyer to miss out on the best deal.Working early on with a lender, helps homebuyers determine how large a mortgage they can qualify for, and informs them of different types of available mortgages.
(4) They don't consider the resale value of the house before purchasing. There are certain features that can hinder a property in marketing - That 1 car garage for example; or 1 bath home. Cosmetic issues with a house - like that peach colored shag carpeting and 1970s wallpaper, can easily be remedied. But it is costly to overcome the need of an additional bathroom, or that small garage.
(5) An important thing some homebuyers sometimes fail to do, is find the best real estate professional, willing to work with them through the home-buying experience and process.
Working with an experienced real estate professional, provides important education about the home-buying process and information about vital issues, which require consideration and understanding.This greatly enhances chances for a successful acquisition of a first home.Fewer roadblocks and a more joyful experience is the reward!
I have a friend who listed her house with one of the top agents in her area. They went on the market about two months ago, at the exact price the agent recommended and supported with his market analysis. Showings were brisk at first, then trickled off, as typically happens. Feedback has been generally positive, although the home is rather unique and simply not practical for many buyers, and the feedback has reflected that.
A few weeks ago, out of the blue, the agent recommended a $50,000 price reduction. This caught my seller friend by surprise since the feedback she'd received never mentioned that pricing was an issue; most of the negative feedback centered on the unique features of the home that made it "not work" for the buyer. But no one, to her knowledge, had mentioned price as an obstacle. My friend asked the agent for an explanation of his recommendation, but no explanation cometh, the agent simply reiterated his recommendation that she reduce her price.
My friend came to me for advice. I suggested she ask him the following questions as to the WHY of his recommendation:
Has there been consistent feedback that we are overpriced? (If so, it has not been shared with us.)
How is the overall market right now? Is anything in our price range selling? Is the market typically slower this time of year?
If the market is not interested in our home at the current price, would your recommended price reduction change that?
Will reducing the price by $50,000 overcome buyer's objections to the unique character of the home, or will buyers still expect a more traditional home?
Are homes in your recommended price range getting more activity than homes in our current range?
and the kicker...
6. Has the market changed significantly since you recommended the price we listed at?
My friend is not categorically opposed to reducing her price if that's the right answer, or to withdraw the home from the market and wait for a better time to sell. But she wants (and deserves) information. A coherent explanation. Some evidence that her agent (who is supposed to be looking out for her best interests) put a little effort and thought into her situation -- and his recommendation.
Contrary to what we like to believe, our sellers are not stupid and they aren't unreasonably stubborn. But when we recommend a list price, back it up with data, and then, like clockwork, push for a reduction to that price six weeks later without explanation or exploration of other solutions, home-sellers have every right to be frustrated with us and to question our credibility. To doubt our commitment to their best interests. Or perhaps, to reach the conclusion that we're just lazy.
(My friend is thinking all these things about her agent and I can't blame her).
The moral of the story... before you recommend a price reduction, make sure you have answers to all the questions YOU would ask if it were YOUR home on the market and your agent advised you to give up a chunk of your equity. DO your homework, not just to pacify the seller, but also to determine if, indeed, a price reduction is the right solution. Maybe it is, maybe it's not. But be a PROFESSIONAL real estate agent and find out.
Oh, and it wouldn't hurt to price it right in the first place.
Note to My Readers -Selling Soulfullyblogs are written with the goal of inspiring intelligent discussion and good-natured debate among readers - not just a back and forth between me and you. Feel free to 'hijack' any of my posts with your own relevant links, opinions, rants or discussions - no need to ask for permission - just go for it!
The same good advice applies here in New Jersey. It won't cost anything to call your insurance agent to verify your property is not in a FLOOD zone.
When you are ready to buy or sell here on the Jersey Shore - Call me. 609-290-7962 direct or at my office Mezzina Real Estate and Insurance - 609-296-8116
I received two calls today from my blogs about FEMA from local residents! It is a double edged sword since I am reporting and explaining bad news. August 16, 2011 the new FEMA flood maps became official.
As of today, Wells Fargo customers are receiving their Flood Certification Notices. Others may be too. The new maps are now replacing the old and the perimeters are much, much different. Homes that once showed in the "safe zone" or the "C zone" are now showing in the "A zone". What does this mean? This means that their property has just been bumped into the "YOU HAVE TO PAY EXTRA FOR FLOOD INSURANCE" zone. All maps have been re-zoned to include many more properties and acres in the 100 year flood zone.
A nice local gentleman said, "hi, I came across your blog on FEMA and the new Flood Zones and I have some questions. I received a notice from my lender, Wells Fargo today stating that I am in the "A zone". I read your blog where it said you were getting quotes for as much as $20,000 per year for properties that are in this zone". I explained that I managed to find a man that could cover the home for as little as $569.00 per year with a request for grandfathering.
Problem is, the gentleman I spoke to today purchased his property in 2009 and I am not certain how long you must be in your property before you can become grandfathered.
Oh "sigh". I was afraid of this. All chaos is about to break loose.
This is going to cause a great many FORECLOSURES AND SHORT SALES.People are not going to be able to afford this kind of money on or near the water.
For all new closings: A lender must provide a notice of SFHA (special flood hazard area) to a purchaser within ten days of the closing. If the borrower does not comply by purchasing the insurance within 45 days the Federal Government will require the lender to force and choose insurance for the homeowner. This price on the insurance can be exorbitant!
ADVICE: If you feel your property is above the water level of the dam then I recommend a survey. It is called an Elevation Certificate and runs around $350.00 in this area. Most surveyors are equipped with laser equipment that can handle the job. Once you receive your survey with the elevation, photos, legal description you will turn this in to FEMA. If it shows a mistake then you will be re-zoned. This could help on your price.
Be sure and check with your insurance provider and then check with the FEMA certified insurance providers for separate quotes. The quotes can vary by a huge amount of money. My personal recommendation is:
Brooks Prime Properties, LLC Waterfront Real Estate Specialists 936-295-0005 Lake Conroe Real Estate, Lake Livingston Real Estate Your Waterfront Realtor® Deb Brooks
Here is a blog where agents tell what they tell customers about the current market. Make sure you check out the original post at Chatter from Active Rain to see their comments.
I've been too honest. Follow the link below to read the agents comments. Click back to me for Honest in Southern Ocean County, New Jersey (the Jersey Shore).
Here is an interesting collection of comments made by home buyers after they visit a home for sale. Take note and you will soon realize (I hope) why your house has not SOLD.
If you are a home owner looking to sell, ask for the hurtful, constructive criticism as a just that - constructive. Now go build a better presentation to your home.
In southern Ocean County. Ask4Greg. www.Ask4Greg.com to get your home SOLD!
Yes, Zillow has answered the question regarding the return of the stock bubble of the 90's. A fool and his money are soon parted. The set price for their initial public option (IPO) was set at $20 and soared to over $60 before it settled at around $35 a share. Not bad for a company that shows nothing but red ink on its books.
Now don't get me wrong. I have never liked Zillow. But, I respect them. They just did to real estate agents what the Broker's wanted to do to us salesmen along time ago. In fact, the new, Realtor Property Resource (RPR) is really just a copy of what Zillow started providing home owners and buyers since 2005 with its Zestimates. Of course, the regime at the National Association of REALTORS (NAR) will deny the allegation. But, come on. Look at Zillow, Trulia and Realtor dot com and tell me which is the better web site.
And, so what if they never turned a profit. Can anyone say the REALTOR dot com web site would be profitable without the forced contributions from all the salespersons money being sucked out of our wallets? Nor, does it really matter that China has also entered into a dot com bubble similar to America's bubble and crash of the 90's.
No. Like the song says, Nothing really matters to me. However, I am curious as to how many shares were purchased by the National Association of REALTORS.
Yeah, that's right. This is the "NORMAL" Housing Market that you have been waiting on to return. I know this because the appraisal says it. Well, OK. Maybe it doesn't say that exactly but if you read the report you would think it is a pretty good market to sell a house. I remember talking to the appraiser before he went out to the townhouse and I asked how I could help with comps and what our current market was like. He seemed so nice on the telephone.
Yes, he says prices are still declining. But, the inventory is stable (?) and the number of distressed sales are not significant for my area (Really?). Who am I to argue with an expert. I mean after all he does have all the data from the Monmouth County MLS to back up his numbers. And, he found two recent (within a year) of similar homes that sold at a Fair Market Value (FMV). One sold for the new benchmark and the other for $5000 more.
And, yeah. I know you can't use other distressed properties in an appraisal. That's why when he couldn't find any other comparables in that housing community he had to look 2 miles down the street and use a single family detached home to help his averages for the home in the multi-family community (aka - attached dwelling). I fully understand. Why would anyone expect the appraiser to use other townhouses in another multi-family community of attached dwellings that lies a mile away?
What? You say Ocean County has its own MLS and that not all listing and sales in my area get posted in the Monmouth County MLS. Well, still, the apprasier must have enough data in that MLS to come up with his number. Heck, he even gave a discount of $7000 on my listing for necessary repairs of paint and some carpet (not all the carpet) because he did his due diligence and called the other agents to find out that those houses were in pristine condition.
Still, I got the $7000 off the FMV. And, using Federal Housing Administration (FHA) rules we can bring that amount down to a lower net. Wait! No, I didn't. The FMV is the same as that unit that sold as a private sale and was in pristine condition. And, didn't the private sale net less than the amount the property for what it was sold? Sure. That's right. If a person sells a house for $100,000 they don't walk away with $100,000. Their "net" is less commission and other expenses like the real estate transfer tax and attorney bill.
So, that's NORMAL, right? I'm sure I can explain that to a person sitting 2500 miles away in an office and that has never been to this state. The bank executive will just pull out a pen and make some adjustments to the number the appraiser gave to them. They wouldn't tell me that they are just following FHA rules on a short sale would he? Besides, the Monmouth MLS doesn't have this property listed so "it's not listed" and the owner is only allowed the higher percentage number to come up with the "net" figure the bank "must get" for the sale of the property.
Stop your belly aching. This is NORMAL in real estate. In the Army they just call it a Snafu.
August 2003. I was reminded of the hottest month in real estate just the other day. Someone was telling me how the housing market has improved and we were heading back to the good old days. Really? I’m struggling to make ends meet. So, I asked for some clarification and was told how busy her husband, a title clerk, is now a day. She doesn’t mention that the “husband” works four days a week because the company cut back his hours. She doesn’t mention that almost half the work force in the company was let go almost two years ago. She doesn’t mention that several title companies in the area are now closed, including their own small office.
At any rate I am now compelled to seek out the husband and ask first hand if his work load has increased. I mean other than the stock market catch phrase of “doing more with less”, or, “working smarter, not harder” that seems to gives justification for the CEO’s pay raise, is he busier? As I approach the man, I see his body stance and think to myself, he looks a lot like me, a little worn, subdued, trying to put on a good face but his smile is strained. I ask straight out, “so, how’s business? I hear you are very busy.” I get a look of shock. I further my questions with, “are you getting commercial accounts now? Because I see some activity on some business sites that had been dormant for years. Or, is it residential?” I tell him that I am not doing much.
I can see right away that he is uncomfortable telling me about work. Not that he was shy about discussing his work back in 2003, 2004, 2005, 2006, or even, 2007. No, with his head down he states there is no commercial activity. There is no re-finance going on with his company anymore. He states that some weeks are busy and some are not. He tells me people still push for an end of month closings and most of the residential title searches are for short sales. Hmmm, seems kind of similar to my own business, or, the lack there of.He wants to drop the conversation. I take the hint and start anew with my observations about his favorite baseball team. It is a safe subject, that and weather, since we differ in our political opinions.
But, my mind is back in the day. The day my income helped support our family. It has not been that way for me for some time now. Back then Real Estate Brokers everywhere were recruiting (stealing) agents from each other or starting schools to train and recruit more agents from the student population. It seemed like Mortgage Representatives were growing on trees, stopping by our office with the promises of getting the best rates on no doc loans. And, the title companies sprung up over night. Those were the days I was remembering.
That’s right. August 2003 was the absolute peak in real estate sales for my immediate market area. The median price of a home sold during that month was $144,750 up about $10,000 from the previous year. The total homes sold for the month was a whopping 112 homes. Flippers were everywhere. And, that MLS count, does not include the many brand new homes from builders and that very special group of for sale by owners that did not list their homes with agents and share in the local Multiple Listing Service. It had been a steady climb in sales since the devastation of 9/11 in 2001 when al-Qaeda launched its attack on the Twin Towers and other targets in the US.
Area homes were believed to be undervalued by many investors. The market heated up with many home buyers coming from areas near the attack sites of 9/11. They sold their homes in North Jersey that were within commuting distance of the city for a great profit and then they came ready to pay top dollar for the home with the amenities their previous homes lacked. Corian and marble counter tops, crown moldings, stainless steel appliances, pavers, and the works. The prices of homes in our area would continue to climb until December 2005 when the median price peaked at $279,900 and days on market would fall. Imagine it taking only 29 days on the market before a house went to the closing table. That’s how it was in September 2005 – 29 days from start to finish. It wouldn’t be for another year before the then Federal Reserve Chairman, Alan Greenspan, would declare the housing market to be suffering from “irrational exuberance”. Something that some of those in the business of selling homes knew for a fact. Not everyone knew. There are enough mortgage brokers, real estate sales men and women that got caught up in the excitement and know firsthand about short sales because they had to sell their own home under those circumstances.
Many did know that the rising prices could not be sustained. Homes that were sold three months before were back on the market and selling a full twenty percent more. The flippers only had put in a minimal effort from the previous seller with a clean up, paint and new carpet. It seemed everyone was quoting Mark Twain with “buy land, they are not making it anymore.” Of course, the Arab World with its massive accumulation of oil wealth tried to mock that by building Dubai. A western lifestyle in the desert without any intimacey allowed. Those that foresaw the financial mess that was to be left behind were writing blogs predicting the end of the world as we knew it. Many predicted what other employment they could undertake when the market would no longer pay their bills. Some passed it off as just a mild adjustment.
The National Association of REALTORS launched a campaign telling the world “it’s a great time to buy” and then a new refined message with “each market was different” as soon as they were called upon to justify their first advertising blitz to the general public. To their members they sold the idea that it was a good time to hone in on your marketing skills and real estate knowledge by attending their many classes that offer the alphabet soup or letters to place at the end of their name and on their business cards. We were assured we would be in a position of advantage by paying the association to attend classes that would help our customers when they returned. It is the same organization that now says for forty bucks they will protect our jobs by sending lobbyists to Washington on our behalf.
Returning to our current market conditions, I present you with the data to show that special someone that the market may in fact be returning to that hot August in 2003. The median price of homes sold in the MLS in April 2011 was $171,500 down a little more than a hundred thousand from the high of $279,900 back in December of 2005. Last month the average days on the market was 197 days. Brokers have got to spend a lot on advertising that does little to actually get the home sold and they must push for lengthier contracts than the typical six month listing agreement. Yet, I am sure someone somewhere will declare the market has rebound since there was four more house sold that the same month in 2010. Good Luck with that. The popular web site for REALTORS states there are 253 experienced agents available to sell one of 550 active listings that are on the market today. In April 2011, 28 homes located in Tuckerton and Little Egg Harbor were sold.
That's my take on the current market condition. No pictures. No change in type. Just an opinion. You got one?
The other month I got a little excited about the sales results for September. I was not sure how exactly to interpret the raw data. Looking for a silver lining I indicated that indeed we may very well have hit bottom and on our way to a rebound. I was wrong. It was just a strike of lighting - real estate still suxs.
Compare the numbers above to the same period last year and see if you agree with the Press of Atlantic City, which claims the price of homes is on the raise. Remember, numbers don't lie, but liars use numbers.
So, I don't know how they came up with the news article or who in the National Association of REALTORS would release such mis-information to the public. I admit I was wrong on my last month optimistic view of the sales trend. Will they come forward and admit no one really knows what is going on in real estate?
Just something I felt needed to be said. You can agree, disagree, or, well...........
Search for Jersey Shore Homes HERE:
Here are some great bargains that are available for sale in my market area:
Gregory Bain njhomes@hotmail.com | 609-290-7962
93 Lake Superior Drive, Little Egg Harbor, NJ
Little Treasure by the Bay
3BR/1+1BA Single Family House
offered at $258,000
Year Built
1964
Sq Footage
1,200
Bedrooms
3
Bathrooms
1 full, 1 partial
Floors
1
Parking
3 Uncovered spaces
Lot Size
4,791 sqft
HOA/Maint
$0 per month
DESCRIPTION
This is the reason Little Egg Harbor is called "Little Treasure on the Bay". This Great Waterfront home has good boating location and is a super opportunity for year round living enjoyment at the Jersey Shore, or, a summer getaway for the family. The contempory layout of this ranch offers the lifestyle one expects when they are at the Jersey Shore. It was designed to entertain with its wonderful open floor plan, deck, dock and screened porch. Owner says sell. Learn to relax. The yard is stoned landscape with multiple decks so there is nothing to do but read that book. Enjoy the outdoors even in the rain you are inside the screened patio feeling the summer breeze. This is a home where you can boat, fish, crab, and swim right off your backyard. Come take a look. You will treasure the times you will have in this three bedroom, one and a half bath waterfront home. All appliances are included and furnishings are negotiable so you may need to bring only a toothbrush to start enjoying this retreat. Located down the street from the Mystic Island Shoppes will make it convenient to walk for morning coffee, newspaper, and breakfast - who cooks on vacation? Captains Delight? Catch of the Day with crabs right from the traps at the dock.
This three bedroom Sportsman model was expanded and re-configured into a two bedroom with a peaked roof.
2BR/1BA Single Family House
offered at $219,000
Year Built
1963
Sq Footage
1,180
Bedrooms
2
Bathrooms
1 full, 0 partial
Floors
1
Parking
3 Uncovered spaces
Lot Size
5,000 sqft
HOA/Maint
$0 per month
DESCRIPTION
Jersey Shore waterfront home in great location of Little Egg Harbor (aka Little Treasury by the Bay) for boating access to Great Bay and Little Egg Harbor with all the off shore fishing spots. Wonderful opportunity to own waterfront before the prices are driven up by future development of the seaside condominiums slated to be built down the street with it's picturistic views. This two bedroom was originally designed and built as a 3 bedroom fisherman's cottage but has been expanded and reconfigured as a two bedroom home. Many improvements like thermal windows and vinyl siding have been done but it will need some updating. Come see how you can make this your family retreat. A great vacation spot were you are close to Atlantic City casinos and nightlife or the white sandy beaches of Long Beach Island
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
The guidelines for this are pretty straightforward; however, the challenge is proving the property is located outside the easement.
As of today, Wells Fargo customers are receiving their Flood Certification Notices.
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