Who does your real estate agent represent?

When you walk into that cozy New Jersey real estate office for the first time, do you sit and talk with the agent who is planning to work with you?
If you don't . . . . . . . . . maybe you should rethink that!

Real estate representation is an area of my business that is not easily understood by the general public. Unfortunately, this is also true for some professionals. Years ago, everyone represented the seller. Today, buyers needs are also addressed.

Prior to dealing with any client, agents are legally obliged to explain and advise who they will be representing. After representation (known as "agency") is explained, the client is asked to sign a form to acknowledge that it has been discussed.

Clients are usually reluctant to sign anything presented by an agent they have just met. This understandable reaction on the part of the public is often reinforced by the agents inability to communicate what "agency" is. Because of this, many agents do not even broach the subject.

"Agency" is swiftly glossed over when formal contracts are being signed. Feeling some familiarity with the agent, the form is just another in a stack of documents needing signatures. "Sign here, please."

But it does matter! An agent who has been negligent in educating their client in "agency" has overlooked an important duty. This does not mean that the agent has improperly represented the client, but implies that the client may not know where the agents loyalty has been.

Before you decide to work with any agent, it is important to determine who and how that agent will be representing you. Ask to see the Consumers Information Statement and ask that it be explained to you.

Trends in Home Renovation

Home remodeling today is a $233 billion business, a significant 50% increase from 10 years ago. Of that figure, kitchen renovation represents $13.5 billion and bathroom improvement $10.5 billion. Over the last 10 years, 30 million homes have undergone major renovations.

Today's buyer expects more than the buyer of a decade ago. The simple "colonial with a fireplace" request has disappeared. Our technologically changed world dictates different needs and the desires of the public is fueled by what they see and what they can afford. Expectations of two-income families is primed by exquisitly appointed development models in every-expanding suburban sprawl and the constant barrage of "what's new and what's hot" by magazines, radio, television and the internet.

The stuffy formal living room is now replaced by a more casual family room/kitchen, where both family and guests are entertained. The move is toward more upscale appliances - professional-type stoves, ovens, warming drawers, beverage/wine refrigerators, drawer refrigerators, etc. - surrounded by gleaming granite.

Convenience dictates a bathroom for each bedroom. No more waiting in our "hurry up" world.

A media room is not just for the wealthy. Plush seating, surround sound, and projection screen with your latest movie request makes the trek to the theater obsolete. The buttery popcorn is just a microwave away.

Custom closets can compete with any retail store display.

The clutter busters are now tackling the last frontier - the garage. A coated (and maybe heated) floor, insulated doors, painted walls and ceiling, roomy cabinets, shelving and racks can transform that dusty environment into a ritzy space for garden tools, skates, bikes and cars.

Decks are now stain and splinter free. Beautiful composites allow more time for fun and less time for upkeep. A more fitting backdrop for the outdoor grill and outdoor furniture.

Walkways, driveways and patios are now paved to evoke the look of European courtyards.

Bathrooms can be equipted with warming drawers for towels and robes, messaging shower heads, and bidets as well as the more usual messaging tubs.

The ability to work from home has created the need for dual office space for many.

What tomorrow's needs will dictate we can only imagine. For now all the rules of yesterday have changed in a world where walls have tumbled down and the roads beyond stretch far and wide.

Appreciation on a Grand Scale

Is the real estate bubble over? News reports this morning reveal that those in the know say it is.

The market has definitely slowed. The balance between those selling and those buying has shifted. The rapid rate at which those willing to buy were snatching up those few properties that were available is no more.

Yet, even with the slight price adjustments presently seen, the appreciation has been phenomenal. During each upward climb the buyers were still there. Contracts in hand, agents presented pictures of perfect families to soften sellers in a grand contest called "Home."
Real estate agents, just like me, all over New Jersey wondered when it would all end and where was all that money coming from to keep up with the growing cost of real estate.
Of course, the increasing cost was not only in New Jersey.

It's been reported that the most expensive condo in the United States is a $70 million penthouse atop the Pierre Hotel in New York City, owned by financier Martin Zweig.

Where are the most expensive properties? Interestingly, of the top five - three are in the United States. (This list based on July, 2005 exchange rates and as reported by www.Forbes.com)

1. Windlesham, England $122.2 Million
2. Bridgehampton, New York $75 Million
3. New York, New York $70 Million
4. Malibu, California $65 Million
5. London, England $61.1 Million

The third wealthiest person in the world, Lakshmi Mittal, paid the most ever recorded for a private residence in April, 2005, when he plunked down $128 Million.

The most grand is a residence larger than the combined square footage of Buckingham Palace and Hampton Court in England. Updown Court in the London suburb of Surry sits on 58 acres. It has 22 bedrooms complete with private baths and boasts of 5 swimming pools, a heated marble driveway, cinema, bowling alley, helipad, an underground garage with room for 8 limos, a stable for 5 horses, and a panic room.
Askinig price for this grandiose real estate is approximately $135 Million (in American dollars).

This property was purchased in 2002 for $20 Million and another $30 Million went for improvements. Now this is appreciation!