How can I get a discount when purchasing a new home?
New Jersey new homes are more attractive than ever thanks in part to generous builder incentives. With nationwide new home sales dropping nearly 30% from this time last year, builders are feeling the pressure to reduce inventory. To counter the negative impact of falling home prices, builders are offering major incentive or rebate packages rather than discount prices. Savvy buyers searching for homes for sale in New Jersey can use this to their benefit.
1. Reduced Prices: Reports from around the nation indicate discounts of up to 20% compared to 2005-2006 highs. Ask your real estate agent which builders are offering discounted prices when viewing New Jersey real estate listings.
2. Freebies: Rather than reduce the selling price, many builders are offering a variety of freebies instead. From spas to sun-rooms, finished basements to upgraded appliance packages now is the time to negotiate amenities you might otherwise have gone without.
3. Rebates: If cash at closing sounds exciting then a rebate might be the way to go.
4. Closing Costs: Savvy home buyers are insisting upon the builder picking up the majority of closing costs. Before deciding on a discount versus other incentive packages take time to do the math in order to determine which saves you the most money in the long run. For example, rather than take the full MSRP or Manufacturer’s Suggested Retail Price on an appliance package, find out how much the same appliances would cost on sale at the local big-box discount store. The same applies for closing costs - while many are legitimate fees, you might be saving less than you think if higher than average costs and "junk fees" are included.
It is possible to save thousands of dollars when purchasing a New Jersey new home by negotiating discounts and builders’ incentives.
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What should I know about buying a new home?
Buying a New Jersey new home can be a great investment especially while interest rates remain at historic lows. Many people mistakenly think that purchasing a new home is a safer decision than buying a pre-existing home; after all, the house is brand new with fewer things to go wrong. Unfortunately, it isn't always that simple. Here are some tips on how to find a bargain when purchasing a new home in New Jersey while avoiding potential problems.
1. Steep Discounts: Nationwide new home sales have declined significantly over the past year leading many builders to offer discounts or incentives. It is a great opportunity for buyers to upgrade amenities or pay less for a brand new home but caution is still advised. Beware of builders offering excessively steep discounts such as those above 30%. It may be an indication of much deeper financial woes that could potentially impact your investment.
2. Bankrupt Builders: Some small builders may not be financially solvent or even on the verge of bankruptcy themselves. One of the benefits to buying new is the warranty that comes with each and every new home sold. Unfortunately if the builder is out of business then the warranty may be worthless. Issues related to the quality and construction are left without remedy.
3. Incomplete Communities: New subdivisions or brand new communities also may be at risk if a builder or buyers fail to follow-through. Unlike mature areas that have fully established roads, schools and community features, if a builder or other buyers begin to bail out then incomplete projects might be delayed or abandoned.
4. Competition: One of the most frustrating aspects for new home buyers is to pay more for the price of a home than the new homes are selling for so be sure to negotiate every aspect of the purchase including closing costs, amenities and other discounts. Competing directly with the builder can be difficult should you need to sell your home before prices increase. Many buyers prefer to select their own colors or live in a brand new home. Find out the future plans for the community and consider your own plans before making a final decision. The advice of a knowledgeable real estate agent can be invaluable when it comes to negotiating the final purchase price and amenities.
5. Quality of Work: Not all builders are equal. Don't assume that a new home is automatically better built without knowing the materials used in the construction of the home. Inferior products may lead to decreased energy efficiency, costly repairs and expensive maintenance issues.
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What is the historic average selling price of a home?
The media is filled with news about real estate. Prices are holding steady while sales are stagnating. There seemed to have been a bubble in many areas while other parts of the country continue to hold firm or even increase. Depending on where you are located and what you are reading the news, information seems to conflict and outright contradict itself. So, how can the average home buyer decipher fact from fiction...and even more importantly, determine the best price for a property?
First, it is important to understand that all real estate is local. Buyers searching for New Jersey real estate will encounter a vastly different market than those buying in Ohio. The media reports on nationwide trends which may or may not resemble the local conditions in your housing market.
Next, not all properties are impacted the same way. For example, the market for a $200,000 New Jersey condo is much different than the market for a $750,000 condo. There are simply fewer buyers of the higher priced properties. Naturally, the top prices often experience a greater decline which can result in the overall average selling price declining while prices for more affordable homes simultaneously increase or remain the same.
One way to calculate the fair cost of a home is by using historic averages for the cost of housing and real estate. Historically, home prices have remained in a range of 2.7 to 3.2 times household income which is, incidentally, roughly the same range most lenders use when calculating your ability to repay a mortgage. So, if your household income is $100,000 annually then you could afford (roughly) a $300,000 New Jersey home. Of course, your individual situation will vary depending upon other existing debt and assets but it provides a general rule of thumb that has worked well for decades.
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What do I need to know about permits when purchasing a home?
Building permits are something few people think about when viewing New Jersey homes for sale but that can be a big mistake. According to research conducted by ASHI, the American Society of Home Inspectors, over 60 percent of home owners fail to pull a permit when having work performed. Here is what you need to know about permits when shopping for New Jersey real estate.
1. Permits Protect You: Permits are required in nearly every area of the country to demonstrate that work was performed in accordance to local building requirements and other regulations of the area. Each permit requires an application, fee and final approval which provides assurance the work was performed to minimal standards in effect as of the date of the modification or repair.
2. Penalties: Failure to obtain a proper permit can result in zoning or other problems when it comes time to buy, sell or assess the value of the home. For instance, an illegal mother-in-law apartment might result in zoning problems and an inability to properly finance the home or obtain full insurance coverage.
3. Updates: Many home buyers first learn about a permit problem when they remodel or improve the home after buying it and find the old work must be completely redone in order to comply with building codes and permits. Now the new work cannot be completed until the old work is torn out and replaced making the entire project much more expensive than originally anticipated.
Protect yourself against potential permit related problems by asking the real estate agent for copies of the tax assessment showing all structures on the property as well as information on who performed the work.
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What can I do to refresh a house?
Interested in buying a bargain priced New Jersey home? One way to save money is to purchase a cosmetically challenged piece of real estate in need of a gentle "make-over". It’s easier than you think to rejuvenate a dull lifeless house into an exciting and stylish home that anyone would be proud to own. Here are a few creative ideas to keep in mind when it comes to renovating your New Jersey real estate.
1. Upscale Garage: Clear out the clutter and then transform a garage into a useful area for recreation, hobbies or – gasp – work area. Install durable cabinets and accessible over-head compartments for additional storage, add a mini-fridge and stereo speakers plus a fan or small AC unit to have a fully functional area.
2. Avoid the Glare: Ultra shiny fixtures and appliances are out. Replace knobs, handles and other fixtures with brushed nickels, pewter or other easy to maintain neutral finishes.
3. Update the Stairway: Spiral stairways and other aged options appealed to home buyers in the 70's but are now tight and hard to manage. Although not inexpensive, a new staircase can completely transform a tired room into a modern marvel while making it more manageable.
4. Bowl-Shaped Sinks: These great looking sinks are rapidly losing popularity due to the splash factor. Unless you enjoy constantly cleaning the countertop, search out new colors or other design choices.
5. Cabinet Doors: Cabinets can be expensive to replace but often you can achieve the same results simply by replacing the doors. Smoking damage, hard to keep clean glass doors and other out of favor designs can be easily and affordably updated simply by purchasing new doors. Most are easy enough to install for an average do-it-yourself project.
6. Paint: Painting still rates as the number one way to refresh a tired looking home. Not only is it affordable but well within the ability of most home buyers.
7. Landscape: Add a few solar lights to a new low maintenance xeriscape lawn and viola' you have an entirely new yard that not only looks great but takes less time and money to maintain.
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How can I change the look of my entry or exit?
In psychology and marketing it is common wisdom that the most memorable events are those at the beginning or end. Smart New Jersey home buyers and sellers can use the same concept applied to real estate to create a smart-looking home that will appeal to buyers or freshen up a home in need of renovation. Here is how to create an exciting entry and exit without spending a fortune.
Entry. The entrance of any piece of property is the first thing buyers will encounter when searching for New Jersey real estate.
Walkway. It should be completely free of clutter with a wide and inviting walkway leading to the front door. If the walkway is narrow, consider adding a border or extension to give the feeling of more space.
Doors. Unless the door is not functional, it is often possible to completely change the look and feel of the entrance by painting the front door in a contrasting but complimentary color. An exterior, semi-gloss paint is easy to keep clean and fresh. Replace old door knobs with a stylish brushed pewter knob and lock set. Remember, the door knob will be the very first thing potential buyers actually touch so make it sturdy and strong.
Lighting. A custom light fixture beside or above the front door can add a nice touch as well as bit of ambiance to an otherwise plain location.
Exit. In most homes the exit door is located toward the back of the home so there is more variability in terms of the type of structure and design but a few "must haves" can make a big impression in any setting.
Sound. A wind chime or small fountain provides a sense of serenity that invites the visitor to explore.
Security. All exits should have some privacy combined with attractive lighting and durable locks.
Smell. Gardenia, Roses or other fragrant plants can have a dramatic impact on visitors.
Sight. What do the eyes see immediately when walking out the door? Make sure it is attractive and inviting by adding seating, potted plants or a small outdoor sanctuary.
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What are vitual tours and other search technology?
Research indicates that nearly 80 percent of home buyers use the Internet when searching for their next home, so it should come as no surprise that nationwide listing sites like HomesandLand.com are valuable resource when it comes to buying or selling New Jersey real estate. Today, more people than ever have access to high speed Internet which is fueling the growth of virtual tours and online video tours. Here is how to make the most of technology while buying or selling New Jersey homes or properties.
1. Find an agent that understands technology: While using the nationwide HomesandLand.com website to search New Jersey properties, pay attention to those agents that use plenty of pictures and have links to virtual tours. The additional exposure not only saves time but provides a much better overview of the entire property.
2. Distribution: Many properties now put entire video tours online so you view several potential listings from the comfort and convenience of your own home.
3. Talking Tours: One of the newest innovations is having directions or even access codes emailed or sent to your cell phone in order to access a vacant house or view a home you just happened to drive by. Other talking tours include a small description of the home you can obtain by calling a phone number or tuning into a radio station listed on an outdoor sign.
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