FOURTH Of JULY

How to Display the American Flag

Wondering how to appropriately hang the flag? Here are some basic guidlines:

• If hung on a flagpole, the Union (stars) should be at the top.
• If hung on a wall, the Union should be viewed on the left. This applies when displayed either vertically or horizontally.
• No other flag should be raised higher or be larger than the American flag. The exception is another national flag, which may be the same size and the same height.
• The flag should never touch the ground.
• The flag should always fall freely.
• The flag should/can be displayed from dawn to dusk unless properly illuminated at night.
• The flag can be mended, but if badly tattered should be respectfully disposed of. You can contact an American Legion Post with respect to such worn flags.

Unique Property - Buyer With Imagination Required

Viewing the property from the street gave not a clue to what we were to find within. It was older and charming, on a lovely street, in a very desirable neighborhood. There were wildflowers jutting from a long fogotten garden and the trees were lush green from the recent rains.

The home was brick and cottage like. We entered planning to find a dated but cozy environment. It was dark despite many windows, disjointed rooms defied description, and then there was the wing!! A garage, my clients thought, because of the all-glass garage door. They asked me what it could be. "Looks as if someone was interested in atriums," I replied. But then they spotted the basketball hoop, and an area which could only be described as a suspended shelf-like deck for observing activity below. The room, if you choose to call it one, was all glass with a rustic brick floor and more than two stories high.

Absolutely not for them, and from the length of time it has been on the market not appealing to many others either. So many good elements going for it and yet no takers.

What this property needs is a "hook." The property is not old enough to claim that "George Washington Slept Here," but there are more recent Mercer County celebs. How about Dennis Rodman . . . . . . . . there is a basketball hoop? Or maybe Samuel Alito, or Joyce Carol Oates might lend their name to concoct this homes brush with fame.

There are homes all around the country that are unique to their owners. Seattle, Washington, artist Kelly Lyles decorated the outside of her abode with hubcaps. John Milkovisch quenched a tremendous thirst when he used more than 50,000 beers cans to build his home in Houston, Texas. And he was quite creative, too. The pull tabs were strung together for curtains. And, I can't forget the Mother Goose House - a Hazard, Kentucky landmark. Homeowners who made a statement all their own.

But it's best to remember that if you eventually need to sell your home, they may not have the same vision.

If you're interested in unique homes, check out these websites:
unusuallife.com/category/unusual-homes and hazardkentucky.com/more/goose.htm

New Jersey Real Estate Market Slowdown

Yesterday I heard an interview regarding the New Jersey real estate market. The real estate market is in the midst of an "adjustment," and we are seeing "more homes for sale than we have in the last several years." Both, of course, are fact. The slowdown was attributed to the increased mortgage rates, and the availability of more choices.

Perhaps my perspective is different because my memory of history is better, because I realize that there is a cycle to the business or because I listen to what people say. My previous experience of the real estate slowdown in the 1980s had been accompanied by mortgage interest rates in the 17 and 18 percent range. This rate almost made people stop and stutter, and homes still sold.

The years of steady growth and often double-digit appreciation could not continue indefinitely.

And what do people say? Doing my own exit polls at "open houses" in the Princeton and Hopewell area gives me a much different view of the buyer standoff. The cost of a home is negotiable, the cost of money is adjustable, but property taxes are the dollar signs that are making the buyer cringe. When buyers tally property taxes with increasing energy/maintenance costs (gas, electric, water, sewer, garbage, association fees, etc.) the total is unacceptable.

There is no doubt that the boom is over, but it's not due to mortgage rates. Blame the inflated prices, greater competition, high taxes, and increasing energy costs. Faced with a new Governor who is asking New Jersey Legislators to increase the State sales tax, tax additional categories, and tax services provided by attorneys, accountants, realtors, and others will not help matters.

Increasingly, residents in New Jersey and across the nation are looking for areas with less taxes and more affordable homes. These towns are and will continue to experience growth. We must ask, how long before they too must raise taxes to better the schools, increase the fire department, hire more police . . . . . . . . . . provide all the services a growing community demands.

Each year the National Association of Home Builders compiles the Housing Opportunity Index,
which calculates the percentage of the population that can afford the areas median home (28% of total household income).

• Rockford, Illinois $ 99,000 89.4%
• Kokomo, Indiana 99,000 88.4%
• Springfield, Illinois 100,000 88.3%
• Syracuse, New York 80,000 88.2%
• Binghamton, New York 72,600 85.5%
• Elkhard/Goshen, Indiana 117,000 85.5%
• Wilmington/Newark, Delaware, Maryland 89,000 85.5%
• Dayton/Springfield, Ohio 106,000 85.3%
• Vineland/Millville, Bridgeton, New Jersey 89,000 85.2%
• Lima, Ohio 97,000 85.8%

Foreclosure - Eastern States

The "buyer's market" is in full swing and investors have cash in hand as foreclosure numbers grow. While mortgage rates are still relatively low, the upward climb in home prices has been halted. The prices are soft, some prices have fallen dramatically, and the "days-on-the market" increased.

The increasing rates of adjustable mortgages coupled with higher energy costs have put a crunch on homeowners. Unfortunately, this scenario has propelled a glut of homes into the marketplace.

Foreclosure numbers are growing each month. In May 27,064 homes were thrown into the mix (an increase of 16.6% from April). The total nationwide is now 89,327.

Here's a rundown of the forclosure numbers (thru May) of eastern states:

• Connecticut - 189
• Delaware - 84
• District of Columbia - 22
• Florida - 1,232
• Georgia - 9,998
• Maine - 135
• Maryland - 453
• Massachusetts - 567
• New Hampshire - 132
• New Jersey 474
• New York -- 2,520
• North Carolina - 4,843
• Pennsylvania - 3,781
• Rhode Island - 101
• South Carolina - 2,879
• Virginia - 668
• Vermont - 51

Buyer's Market - You Were Ready, Set, Now Go

The tide has turned. The years of the seller having the upper hand in the "for sale" market place is over. No longer the scant inventory that has driven buyers into a desperate competition with one another; my drives through New Jersey provide evidence that the stockpile of homes continues to grow.

Buyers again have a choice. But no matter who appears to be in control, it's important that buyer's protect themselves. Having a good agent is step number one. Your agent will certainly advise you of the following:

• Prepare - If you're a serious buyer you should be pre-approved for a mortgage. Being pre-qualified doesn't carry the same weight.
• Protection - If you haven't been pre-approved for a mortgage, you need a mortgage contingency in your contract. It states that you can opt out of the contract if you are unable to secure a mortgage. You also need an inspection contingency, which states that you can opt out of the contract if the inspections find significant flaws with the property.
• Don't Wear Your Heart on Your Sleeve - You love the house, you've always admired it, your friends/relatives live nearby, you think it's underpriced or similar such admissions of adoration have no place in conversations prior to the turning over of the keys.
• Homework - Your agent is legally unable to provide you with information regarding neighborhood - community ethnicity, religious makeup, age of residents, number of children on street, etc. You must conduct your own survey, if you are interested in such things.

It's a great time to buy a home. The interest rates continue to be low, the choices are greater than we have seen in a long time, and negotiating ability is high. Don't miss the opportunity.

How Do I Stage My Home?

The new buzz word in real estate is staging. What is it? It's preparing the home for showings. Some are now "staging" experts - creating an atmosphere of optimal presentation.

Many agents have done this for years and granted some are better at it than others. But, of course, most of my messages here do point out that all agents are not created equal.

Remember how we think about first impressions. You've only got that first time to make your home the object of someone desire.

• Landscaping - Prune bushes, remove any plant debris, maintain the lawn adding a few colorful plants would be helpful.
• Home - Take a good look as you approach. Do you see crumbling sidewalks, missing shutters, peeling paint, broken windows? And how's the roof?

Today's buyer is interested in several things. They do not want a property that requires work. Properties with lots of light and space are winners.

Paint - decors of today are not color shy, but unless they have your color scheme in mind, neutrals work best. If they are scuffed and marred, repaint them. The cost of paint is an inexpensive fixup.

Carpet - neutrals work best. It's also a good idea to have them cleaned.

Furniture - less is more. Store it, sell it, remove it. The objective is to create spaciousness in every room.

Personal Objects - you may be proud to display your hobbied collection, or personal photos, but it is best to remove them. We want them to picture themselves in your space without the competition.

Clutter - remove half of the clothes in your closets, lots of the food from your pantry, and any items on your kitchen and bathroom counters, clear out your basement. Create a clear view.

Drapery - remove heavy draperies that restrict light.

Light - clean your windows and make sure lighting fixtures work, and have sufficient wattage.

Things that we become used to in our own homes can be offensive to a potential buyer. Clients often comment on odors that they notice during a showing from pets, cooking, smoking, hobbies, etc. Eliminate them. Sprays and candles won't do here, but heavy-duty cleaning will.

If your appliances are old and there are coats of dust on your furnace, water heater, etc. a potential buyer will assume that they have not been maintained.

Make the effort to stage. Your home was a big investment for you, and it's a big investment for the next buyer. The impression you make can put you steps ahead of your competition and additional dollars in your pocket.

Delaware River Development

Waldo the whale was quite a sight in 1995, when he was spotted in the Delaware River. It signaled that cleanup efforts were indeed positive. The 10-12 foot Beluga whale known as Helis caused an equal stir in the spring of 2005. Now developers have paid a visit, and they are deciding to stay. A 3-mile long section of the once global shipping center, will be transformed. Old warehouse sites will be replaced by casinos, restaurants, enhanced walkways and even a skating rink.

Democrat Governor Edward G. Rendell obviously saw an opportunity slipping through Pennsylvania State fingers. Land along the Delaware River has skyrocketed as developers (Donald Trump included) considered and some gobbled up available land.

On April 14, Rendell declared a moratorium as city leaders create an agency to oversee projects along the Delaware. Presently under consideration is a charge of 5% of the projects total cost to proceed.

Boston, Baltimore and Cleveland have plans in place for the development of their waterfront. Philadelphia's plans for a master plan fell apart in the 90's when real estate prices had plummeted.

Currently halted are condo projects, until the completion of a 4-month review. But given the go-ahead are the proposed casinos. Licenses for two slot parlors have been granted with hope for quick completion. How plump the State coffers become, since casino revenues will be taxed at 50%, remains to be seen. Development creates jobs. . . . . . . . jobs bring people. . . . . . . and people need housing.

Identity Theft - You're The Victim

Your about to make an offer on a rental and your real estate agent pulls your credit report. A few quick glances sets your heart racing. Seems you have been a victim of identity theft.

No longer the crime of the 90's, the cons have become techies. No need to assault you while accessing your money, or have a bird's eye view of your PIN login. They have engineered new systems that don't hurt you, at least physically. You can have your wallet stolen, but you are also at the mercy of dishonest employees and "dumpster dippers" who go through the garbage of banks, auto dealers, restaurants, etc. The damage to your assets, however, can be quite extensive and the maze of remedial effort on your part is tedious. More disturbing is that less than 10 percent of the perpetrators are ever caught.

Nationwide there are more than 371,000 ATMs, one for every 296 households. No longer bank lobby territory these handy machines have appeared everywhere - convenience stores, supermarkets, coffee shops, etc. For our convenience we are paying a hefty price.

It's fairly easy to install alternate card readers on top of or behind existing bank systems. And in our hurried world, they are just as easily overlooked by the consumer. Then again, ever wonder what happened to that server who disappeared with your credit card for just a bit longer than expected? How about that good Samaritan, who was too too helpful at the ATM. Have you questioned that strange sign that says "Swipe Here First." My advice to you "DON'T."

New systems being used operate on a manual insertion, where the parts are less accessible than the swipe card machines. The industry change over to a "Jitter" system - using speed variation, direction and random reversal - outsmarts the skimming systems need for smooth operation.

If you are a victim of identity fraud you must first notify one of the credit card companies. That one company will contact the other two, and all three will place a "fraud alert" notification within 24 hours on your file. This will stop any application for credit cards from going forward for those creditors who check. (Please be aware that all creditors are not as concerned about checking for alerts.)

Notify the police departments in both your home city and the city where the theft occurred. Ask for the name of the investigator and his number. Also notify the Federal Trade Commission, which monitors identity theft.

You will receive a credit report from each of the three agencies. Complete a "ID Theft Affidavit" and have it placed in your file. It's very important that you document everything, and supply copies to law enforcement as well as the credit bureaus.

Password/PIN, Credit Tips

• Never use your mother's maiden name
• Never use the last four digits of your Social Security number
• Save your receipts to check against your statements
• Track all your accounts
• Check your credit report periodically

As the victim you may also need to contact the Department of Motor Vehicles, telephone company, and utility companies. Receipts and your license are often used as ID for the thief to substantiate proof of residence.

Credit Bureaus: Equifax, Atlanta, Georgia
www.equifax.com
Experian (formerly TRW), Allen, Texas
www.experian.com
Trans Union LLC, Chester, Pennsylvania
www.transunion.com

Federal Trade Commission: http://www.ftc.gov

New Jersey Oil Tank Problems

Perhaps your noticing an increase in your oil consumption, and we're not experiencing a cold snap; odor or plantings dying off around the oil tank ground; stains on interior wall or floor near oil tank; problems with your oil burner or distinct oil smell; or a change in the odor or taste of your drinking water. These may be indications of a leak in your oil tank. As a homeowner you are responsible for cleanup and remediation and is not inexpensive.

If you presently have an oil tank and it's not leaking, removal is approximately $2,000. Fall into the leaking oil tank category and costs leap to $40, 000 to well over $100,000. Homeowners insurance will not cover these costs unless the leak has affected a public waterway or a third party. If you have a concern, call your insurance company and ask about special oil tank insurance.

Should a leak be discovered during the home inspection process step of a sale, cleanup will be certified by the State Department of Environmental Protection. Transfer of property will be stalled until the problem is rectified. The DEP is the regulatory agency enforcing conformation to state specifications.

Realizing the enormous costs involved, New Jersey has established funding for homeowners. Application is presently open to residents with incomes less than $200,000 and a net worth under $200,000 (not including their residence and pension). There is a bill pending that seeks to raise this limit. Once you apply it takes several months to receive financial assistance, however, most contractors usually cooperate with the extended payout.

To report a leak call the Environmental Action Hotline 877-927-6337

New Jersey Department of Environmental Protection
Site Remediation and Waste Management htttp://www.nj.gov/dep/srp

Motivation to Sell

Ultimately, the question comes up. Just plain curiosity? Best for you to answer that. "Where are they going?"

Too often the answer to that question is given without a second thought. But really, it has nothing to do with the transaction. Do the buyer's like the house? That's the real question.

More appropriate questions Buyers Should Ask are:

• Can we be provided with a "disclosure statement?"
• How many days has the property been on the market?
• Have they received any offers?
• Does the seller have a preferred closing date?

Seller's beware! Don't let your agent tip the scales on negotiating ability.

It is not the buyer's business that you desire to close before a relocation package must be accepted, that you are closing on your next home on a specific date, that your children need to start school in the new area on a certain date or that your spouse is already working in another area, etc. These things have absolutely nothing to do with disclosing defects of the property or misrepresentation. But they can have an impact on the price a buyer is willing to pay and the juggling of a closing date, when it's known that you are operating under a need, deadline or stress.

Any disclosure of motivation should be discussed with your agent.

The Governor's Mansion - Drumthwacket

William Penn obviously knew the value of Prince-Town real estate and I wish I had been his agent.
On a portion of the 5,500 acres that he originally owned now sits Drumthwacket (Scottish Gaelic word for "wooded hill"). This magnificent mansion is hard to miss as you drive along Stockton Street (Route 206) in Princeton. However the estate's beginnings were much more modest by today's standards.
The small cottage sitting on the lawn of today's estate, the Olden House, was built by John Hill between 1759 and 1765 on 300 acres. Thomas Olden, a descendant of one of the original Quaker settlers, purchased the property in 1772, and his grandson, Charles Smith Olden was born here in 1799.
When Charles Olden (Governor during the Civil War) purchased the property in 1835 Drumthwacket was born. The Greek Revival style home with porticos and large ionic capped pillars was inspired by his fondness for New Orleans architecture.
Purchased by Moses Taylor Payne in 1893 for $15,000, transformation began with the addition of greenhouses, gardens, bridal paths, a dairy farm and two wings to the building. Again changing hands in 1941 Abram Nathaniel Spanel, scientist, bought the house on 12 acres from Pyne's grandchild, Agnes. During his ownership, the Music Room was the invention workroom for the engineers in residence, who worked for his International Latex Corporation.
The State of New Jersey acquired the property in 1966, with plans to covert it to a mansion for the Governor, and established the Drumthwacket Foundation for its restoration and management.
Although it officially became the Governor's mansion in 1982, most have only occupied it on a part-time basis. James Florio and James McGreevey have been the only full-time residents.
The 11,700 sq. ft. Drumthwacket mansion has 20 rooms. As restored, the home's interior paint was analyzed and is a true representation of the period, with original flooring and cupboards, and antique furnishings. Hand-made brick fireplaces were taken apart and rebuilt.
Olden House, which is the Gift Shop, is a favorite among visitors. Its 18th century charm is still apparent, with no signs of its short stints as butler's home, rare bird aviary or "Monkey House."

More History/Take a Tour: www.drumthwacket.org