What's living in my basement?

It may be lurking in your basement, hiding behind your walls, or finding safe harbor in your attic. No, the answer is not goblins. It may be October when small gnomes and fairy tale characters descend on your abode goblin up your Halloween treats, but the real answer is mold.

Mold is a fungus that has replaced radon as the homeowner nightmare. There are many species, far too many to list here. It is present everywhere in the air, but can become a problem when it takes up residence in your home. Over the long term it can contribute to respiratory problems and compromise the health of those with weakened immune systems and allergy.

This living spore organism takes hold in warmth and moisture. If you have a leaky window - seal it; leaky roof - repair it; damp basement - dehumidify it.

Be aware that the sale of your home may require disclosure, monetary contingency clauses, inspection, and remediation prior to closing.

We can't condems all mold however. What would that fabulous steak and peach salad be without that great blue cheese dressisng?

For more exploration:

http://www.42explore2.com/ghosts.htm
for Halloween history, crafts, costumes, cards, party planning ideas, etc.
http://www.epa.gov/mold/moldguide.html
for expanded/related mold information
http://www.foodnetwork.com/food/recipes/recipe/0,,FOOD_9936_16096,00.html
recipe for grilled steak and peach salad with creamy blue chees dressing

Sellers Horror Story

Just in time for Halloween is the seller's horror story.

Your home has been on the market for months and months with barely a nibble. Your agent has been able to hold you at bay, with the help of the press, with general comments regarding the market and comments about your home. Straighten up, shine it up, paint it up, trim it up. Unfortunately, these endeavors did not happen to "hurry up" a great offer.

Why is your home not selling? It's a combination of things.

When you interviewed your agent, did they alert you about the market conditions?
How did you and your agent set an asking price?
Did you review your competition in the marketplace?
As other homes sold, did your agent reassess the competition?

We are in a buyer's market. It's a great time to purchase a home. Mortgage rates are low, inventory is higher than it's been in years and the increased surplus of homes has reinstated negotiation.

If your agent has not helped you set a realistic/competitive price for your home and/or has not been able to successfully negotiate an offer you may be one of those languishing on the market.

As stated before, choosing an agent is more than a shot in the dark. It's not your friend who just got their license, a friendly parishioner at your church, the most popular mom in the neighborhood, your friends brother, etc, etc, etc.

Be wise in picking someone to represent you in this very pricey transaction. In-experienced people will cost you thousands of dollars.

The most frustrating part of the real estate business is the fact that the majority of people never realize when they have been poorly represented.

Please read "The Three marketers."

Where Have All The Investors Gone?

Where have all the residential investors gone? Housing flippers have disappeared and the seller's market is now a buyer's market. Have they just gone away to reappear when the lull is over?

No! The investors have just refocused. . . . . . . they have refocused on commercial real estate. Investment opportunities today are trending upward in pricing and purchase numbers as noted by the National Association of Realtors, which monitors commercial activity through its CLI - Commercial Leading Indicator.

Investors know that their investment here is safe. We have a strong economy despite the declining value of the U.S. dollar overseas.

• Bank of America Plaza in Atlanta recently sold for $435 million, almost $348 a square foot
• New York City 28 Park Avenue recently sold for $1.2 billion, about $1,000 a square foot, to a Dubai based firm, Istithmar PJSC

Australian and German companies and individuals are scooping up commercial properties for refurbishing or conversion to suburban medical facilities.

The prediction is that this trend will continue for at least the next year.

Real Estate Auctions
As previously discussed across the nation new incentives are being thought of each day to breath life into the softened real estate market. One of the tactics written about recently is the real estate auction. A well known eastern real estate company has just linked to a large auction firm. The plan, of course, is to cash in on what they believe is the new marketing tool for selling real estate. Current published articles outline the plus of such auctions to homesellers presently at a loss for buyers. No mortgage contingencies, no home inspections and a "trouble free" sale in 75 days or less. Why is an auction producing buyers when the traditional method did not? That brings us back to incentives and the publics desire for a bargain. A builder hoping to reap some expended monies is auctioning off condos in a New Jersey shore town. Will people come? They sure will if reported figures are correct. These properties will have a start bidding point of 55% below previous asking price. Hence, the bargain. Then again . . . . . . . . . . . . . Do you think bids will not go higher? Whether their call on this investment pays off remains to be seen. Will sellers embrace the home auction? Would you?

Weakening Real Estate Market

Real Estate has not hit bottom yet and there is not even a glimmer of light at the end of the tunnel. But there is no mistaking the slowdown as impatient sellers, reluctant buyers and home builders step back to reevaluate a serious market adjustment.

Many builders market numbers have fallen to a 52-week low and some are attempting to renegotiate their more recent land deals. The slowdown is national with sharp declines in the southeast, southwest and northeast (including New Jersey).

Toll Brothers (a Pennsylvania based company) has reported a 37% decline in the mid-atlantic region (including Pennsylvania, Delaware, Maryland, and Virginia) as well as Chicago, Las Vegas, northern California and Florida. Nationally, Toll Brothers is experiencing a 48 percent decrease in new home contracts for the last quarter and a cancellation rate that has more than doubled from a typical 6-8 percent to 18%.

Centex (Texas based company) is offering "employee pricing" - 5% discount up to $20,000. Pulte Homes (Michigan based company) offers free heat for 6 months, a 42" plasma television, and free window coverings up to $5,000.

A 2-year lease on a Dodge Dakota pickup is a Detroit developers offer to hesitant buyers. Interested in a buy-back plan? That's the incentive of a Miami developer. Purchase one of his condos at a 10% discount and he will buy back the unit at a 12% markup in 18 months. Decide to keep the unit, you will ante up the $10,000 discount. Willing to purchase a spec home in Arizona and you can reap $70-100,000 discount.

Another Florida developer is offering paid club fees to the tune of $90,000 (covers golf ranges, swim and fitness facilities) with an added enticement of no maintenance fees for 30 months. This is to keep present owners at bay, by not depreciating unit value. You may have heard of "buy the house get a new car" in the garage incentive. It's happening in Michigan. One New Jersey builder is offering a large discount and encouraging agents to bring their buyers with a large commission.

Where and when will things stablize? Who can really predict? But those that are making the attempt are estimating 6 months to 2 years. Only time will tell the true story.

Best advice: Looking to make a deal . . . . . . . . ask for upgrades rather than discounts.

New Jersey Property Tax Reform

Discussion of New Jersey property taxes elicit disbelief from those of other states and fits of fury from New Jersey residents. It's often stated that we are the highest property taxed state in the nation. While that is debatable, we are certainly among the most highly taxed.

Property taxes are a driving force. And in New Jersey that force is driving people out of the state. People are leaving in record numbers all 21 counties to states where the tax impact is less. You may very well bump into an old New Jersey neighbor in Delaware, Pennsylvania or Florida.

These taxes are definitely having an impact on housing in New Jersey. Keeping New Jersey home ownership desirable and the business community growing should be a prime concern for all state residents.

Tax payers are calling for reform, and Governor Corzine has promised that there will be one.
Republicans New Jersey Assembly members are targeting a $3,000-$5,000 taxcut. Gov. Cozine is in opposition with the Assembly, saying an almost impossible 20% will not be accomplished this year.

What are they planning right now? The Assembly is proposing the consolidation and sharing of services, and a revamping of State worker benefits as has been done in the general populace. Gov. Corzine wants to re-negotiate government contracts and allow "local option" taxes (communities will be able to institute local wage taxes, special sales taxes and new construction assessments).

Of course, hand-in-hand with all government issues are committees and this tax issue is no exception. Four study committees have been formed, they are:

Joint Committee on Public School Funding Reform
Joint Committee on Consolidation and Shared Services
Joint Committee on Public Employee Benefit Reform
Joint Committee on Constitutional Reform and Citizens Property Tax Convention

These groups will consist of a 6 members panel, meet until November and then present reports to the Legislature.

The New Jersey School Boards Association is also gathering to present ideas for budget reform. The Association states that on the average each home pays $5,826 for the schools. There are 611 school districts and 566 municipalities in New Jersey.

The tax burden in New Jersey is impacting the quality of life for all who live here. The out of control New Jersey budget has imposed levies on business owners, home owners and will eventually curtail continuing economic growth. Hopefully, relief is on the way. Unfortunately, I don't have very high expectations.

Real Estate - Competition is Hot and Heavy

On July 25, 2006, testimony was given regarding the real estate industry at a hearing before The House Financial Services Subcommittee on Housing and Community Opportunities. The National Association of Realtors presented a picture of the business all too obvious to those who call this our profession. This is a dog-eat-dog business. Company to company, office to office, and agent to agent - competition is fierce. Even more intensified during a market that we now experience.

This was recently brought to the forefront in my own dealings with a client. Agencies and agents will say almost anything to capture business. Unfortunately, the public too often believes what they are told or buy into an innuendo that is all but hinted at. Casting doubt on other agencies and agents is nothing new, but in this indecisive business environment is ratchet up several notches.

Don't get caught in the crossfire of competing agents. We are all independent contractors for the agencies we work with. No one pays us for our time, our advice, our experience, our phone bill, or puts gas in our car. Our payment comes when a transaction is completed - a property bought or sold. Our thanks for a job well done is in the form of a happy buyer or seller, and an endorsement to their relatives, friends and acquaintances. And, always remember, a referral is only a starting point in deciding who will represent you in this very valuable transaction.

But, bottom line, the most important things to consider are not the lines of gossip delivered by the business-hungry agent or agency. It's the facts and nothing but the facts. My advice is basic and doesn't change. Don't hire an agent or agency for the wrong reasons. (Please read the Three Marketeers post)

If the agent you choose knows the marketplace, presents statistical information regarding listings/sales in your area, communicates well, is easily understood and provides you with necessary services, you have probably made a good decision.