General Home Information

Converging Positive Trends for Buyers

2009-06-03T15:39:00Z

Many anxious buyers have been sitting on the sidelines waiting for the time to finally make their move. Four factors are making that time now.

First , sellers are realizing that proper positioning allows buyers to see value. They understand they need to list at realistic prices to stand out from the high level of current home inventory reflected in the attached graphs.

The second factor is the historically low interest rates currently below 5% that allow a buyer to get more house with the same monthly income. The National Association of REALTORS® recently released a Housing Affordability Index which stated , “the relationship between home prices , mortgage interest rates and family income is the most favorable since tracking began in 1970.” Homes are now more affordable for buyers.

A third significant factor is the federal government’s 2009 tax credit of up to $8,000 for first-time homebuyers and buyers who have not owned a home in the last three years. To take advantage of this credit , the home purchased must be the buyer’s principal residence and the transaction must be completed before December 1, 2009. This is already spurring new buyers who have been waiting for the right time.

The fourth factor addresses current homeowners who need to move , but have to sell first. Even though their current home may have decreased in value ,so has the home they will buy. The value lost in the sale is essentially regained in their purchase in our current market.

We are experiencing one of the most favorable markets in years for buyers to take action. If you or someone you know would like to discuss these positive factors, please contact me.

Coldwell Banker Residential Brokerage

FDIC - Emergency Economic Stabilization Act of 2008

2008-12-01T18:21:00Z

U.S. Congress in 1933 to help maintain public confidence in the nation's financial system. Sovereign has been FDIC-insured since March 10, 1938.

FDIC deposit insurance is backed by the full faith and credit of the United States government. There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

On October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008, which temporarily raises the basic limit on federal deposit insurance coverage from $100,000 to at least $250,000 per depositor. The legislation provides that increased coverage will expire on December 31, 2009.

Sovereign is and will remain, even after the acquisition by Santander, an FDIC-insured bank. As such, your deposits are FDIC insured up to the maximum limits allowed by law, which is at least $250,000 ($250,000 for IRAs) through the end of 2009. You may also be eligible for additional insurance if your accounts are held in different categories of ownership.

Standard FDIC Maximum Deposit Insurance Coverage Limits Through December 31, 2009^*

Single Accounts (owned by one person)	$250,000 per owner^**
Joint Accounts (two or more persons)	$250,000 per co-owner^**
IRAs and certain other retirement accounts	$250,000 per owner
Trust Accounts	$250,000 per owner beneficiary subject to specific limitations and requirements^**

The Transaction Account Guarantee Program
Sovereign is also participating in a program that will temporarily provide full deposit insurance coverage for business and consumer non-interest bearing checking accounts in FDIC-insured institutions regardless of dollar amount. This means that all checking accounts that do not earn interest are 100% insured by the FDIC. Coverage through the FDIC Transaction Account Guarantee Program is available through the end of 2009, and is in addition to the FDIC Standard Maximum Deposit Insurance Amount coverage noted above for interest-bearing accounts.

What is not insured by the FDIC?
Sovereign also offers a range of investment accounts that do not qualify as deposits, and are not covered by FDIC insurance. Examples of non-deposit investment products not covered by FDIC deposit insurance include:

Investments in mutual funds
U.S. Treasury bills, notes, and bonds purchased through an insured institution
Annuities
Stocks, bonds, or other securities
Contents of a safe deposit box

FDIC Resources

If you have questions about FDIC coverage limits and requirements, please visit www.myFDICinsurance.gov or call toll-free 1-877-ASK-FDIC (1-877-275-3342).

*	These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met. See the links above for more detailed information on ownership categories.

**	The FDIC adds all accounts within the same ownership category together to calculate the coverage for a depositor. Each ownership category is separately insured. So a depositor that has $250,000 in individual accounts as well as $250,000 in their share of jointly owned accounts would have $500,000 of FDIC insurance. The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2009. See the links above for more detailed information on ownership categories.

Submitted by:

Charlie O. Vieni
Reverse Mortgage
Specialist

Mortgage Development
Officer
Sovereign Bank
Northern, NJ

FHA, Fannie Mae and Freddie Mac - Coming in 2009

2008-11-22T03:09:00Z

Federal Housing Administration (FHA) will require a higher down payment percentage after January 1, 2009.
FHA, Fannie Mae and Freddie Mac mortgage loan limits will drop after January 1, 2009.
First-time home buyers can only take advantage of a $7,500 tax credit until July 1, 2009.

Condo and Townhouse Living

2008-11-01T20:27:00Z

Questions People Ask

What is condo living? Is Condo a style, a type of ownership, a way of life? What do I own? What is included with the maintenance fee? Do some condos come without maintenance fees? What about townhouses; are townhouses different from condos? These and many more questions are constantly asked about condos and townhouses. I will try to shed some light on this subject.

What is a Condo?

A condo is a home style and a type of ownership. A condo style is referred to as a “Ranch” style of living; all rooms are on one floor. Condos can be found in highrises, midrises, attached row housing, garden apartments, detached housing, or stand-alone houses. A townhouse can also be a condo. A townhouse is an architectural style meaning multiple levels. A townhouse may be a condo type of ownership or not. Merriam-Webster Online defines a townhouse as “a usually single-family house of two or sometimes three stories that are usually connected to a similar house by common sidewall”. However, I have seen townhouses only attached by an outside deck.

Condo/Townhouse Subdivisions.

A usual subdivision may have upwards of hundreds of units. These subdivisions may have many amenities for the residents. Some of the amenities could be a swimming pool, a clubhouse, exercise rooms, meeting rooms, play areas, and more. But there are many condo complexes that have no amenities and some with only a few amenities.

All condo complexes will have common areas for use by ALL residents, even if it is just the parking areas or hallways.

Condo Fees.

A condo community usually has a management association that is responsible for general repairs and maintenance of the common areas. Generally, all exterior repairs are the responsibility of the management association. Snow removal is also the responsibility of the association. However, it should be noted that there are a number of definitions of snow removal. The association would more than likely be responsible for the roadways. But some associations will shovel the general walkways, steps, and driveways to each condo unit. Other associations leave the sidewalks, steps, and driveways to the condo unit residents. Each condo unit is required to pay a monthly condo fee to cover all the association’s costs and to maintain a reserve for unexpected costs.

Some condos don’t pay any fees. These are usually small condo complexes or duplex homes. In these cases, the residents get together to share expenses.

Other Costs.

Ownership of a condo unit means that the interior, usually from the walls to the center, is the responsibility of the homeowner.

Advantages of Condominium Living

You are not responsible for outside maintenance. Your lawn will always be trimmed.
You can enjoy many amenities without worrying about cost or upkeep.
Transportation is usually close by.
Some condo communities are gated, giving the residents a greater sense of security.

Disadvantages of Condominium Living

You have to pay taxes and association fees.
You have to share all common areas.
The outside land is owned by the association and available to ALL condominium residents. You don’t have the privacy as with single-family homes.

Other Issues

Some associations allow pets and some do not. Some associations only allow small pets. Some allow only cats and no dogs.
Some condominium communities are adult communities with age restrictions.
Condominium association’s rules and fees can change.

When considering a condo ownership, you should know the financials of the association and the association’s rules. Do not rely on your Realtor, or anyone else, since the finances and rules are subject to change.

For more information, please reference:

NJ State Condo Web Page:
http://www.nj.gov/dca/codes/newhome_warranty/assoc_regs_initiative.shtml

Condo Listings

Published 10/2008

This article is subject to errors and omissions. It is the responsibility of the buyer to verify all information.

National Fire Prevention Month

2008-10-11T16:16:00Z

October is National Fire Prevention Month, which makes it an opportune time to review fire safety and prevention in your home. According to Meri-K Appy, president of the Home Safety Council, the time it takes to prevent fires is time well spent. In fact, Appy points out that purchasing only a few items can make all the difference in keeping every household safe.

Every household should have a fire escape plan, proper fire extinguishers, carbon monoxide detectors and smoke detectors on every floor. According to the United States Fire Administration (USFA), different types of fires require different types of extinguishers, so do your research. (Click here to review the different types, as well as other information on fire extinguisher safety.)

Other tips to keep your home safe from fires:

Watch what you eat: According to the USFA, cooking equipment left on the stove or range is the leading cause of reported home fires and home injuries. Always stay by the stove when cooking. If you do have to leave the room, make sure to turn off the fire.
Use caution with electric space heaters: In the winter, heating surpasses cooking as the most commonly reported cause of home fires. Make sure space heaters are positioned at least three feet away from furniture and draperies, while always out of reach of children and pets. Never use a space heater when you are not in the room or when you are asleep.

Follow electricity code requirements: Old wiring, flickering lights or too many things plugged into each outlet may be signs that you should consult a licensed electrician. Never use frayed or cracked extension cords and try to only plug one cord into an electrical outlet.

Light with caution: Candles, fireplaces, oil lamps and chimeneas should be carefully monitored when used. According to the USFA, candles cause an estimated 15,600 fires in residential structures each year. Try to use battery-operated electric candles or place wax candles and oil lamps in a sturdy, non-flammable holder.
For more tips on fire safety and prevention, please click here to visit the United States Fire Administration Web site and click here to visit the Home Safety Council site.
Northern NJ Real Estate

Making over a bathroom on a budget.

2008-09-24T12:11:00Z

According to the National Association of Realtors' (NAR) annual "Cost vs. Value Report," the bathroom is one of the most important features potential buyers look for in a home. What's more, NAR's 2007 report shows that a bathroom remodel recouped 93.2 percent of the initial cost upon selling the home.

Will Smith, celebrity interior designer, suggests that homeowners pay close attention to the bathroom mirror, paint, hardware and lighting. Each can easily and inexpensively be updated to provide a current look for a bathroom.

Making over a bathroom on a budget can be easily accomplished -- without sacrificing style. According to Smith, high-end looks for less include:

Mirror: A frame around the mirror gives a bathroom a finished, updated look. The mirror is the focal point in the bathroom and can make a real statement with the right frame.
Paint: A painted bathroom is a tried and true way to make a big impact with little cost. Create a spa-like setting with paints in beige and pale tones or use popular colors such as brown, aqua, olive and gold to make the bathroom stand out.
Hardware: Match the lighting, fixtures, bath bars, knobs and switches to create a cohesive look. Brushed nickel, pewter, antique or oil rubbed bronze finishes are all good options.
Lighting: Soft lighting makes more of a statement than harsh lighting, so select a fixture with shades or sconces. You can also contribute to the greatest focal point in the room by placing the fixture above or alongside the mirror.

Real Deals For Second-Home Buyers

2008-09-14T16:08:00Z

According to Forbes magazine, second-home buyers can pick up a real deal these days. Interest rates are low, prices are affordable and there are plenty of available homes to choose from.

According to the National Association of Realtors (NAR), many consumers are taking advantage of the current buyer's market. In 2007, the combined total of vacation- and investment-home sales accounted for 33 percent of all existing- and new-homes sales. The most commonly cited reason for purchasing a second home was to use the home for vaca tion or as a family retreat.

Tips from Forbes to maximize your second-home investment include:

Consider the surroundings: Bike trails and hiking paths are a big draw for second-home buyers.
Look at the taxes: Income tax policies differ from state to state.
Take distance into account: Second-homes that are within an easy drive can save money spent on gas.

Look near resorts: Locales that are close to a popular resort area can have similar amenities at a lower price than homes considered part of the resort.

Think local: Parts of the country that are regional rather than national vacation spots can prove to be a bargain.
www.BCNJRE.com

Garage doors are often overlooked

2008-08-29T21:31:00Z

Garage doors are often overlooked. However, according to a recent New York Times article titled "Garage Doors for All Seasons," this would be a mistake. Garage doors serve as a crucial component of a home's curb appeal.

In addition, garage doors can be a significant source of heat loss. Without breaking the bank, a typical wood or fiberglass garage door can be replaced with an insulated steel door that could save a homeowner hundreds of dollars a year in heating costs.

Installing an automatic garage door opener continues to be popular among homeowners. Newer automatic doors are quieter and many can be wired to run on a backup battery. Additionally, all new automatic openers have federally mandated safety features. For example, a photoelectric eye six inches from the bottom allows the door to immediately stop closing if a toy or child breaks the beam.

Garage doors should not be overlooked as they can increase curb appeal, protect against heat loss and be an attractive feature to potential homebuyers. Click here for more information on garage doors.

www.BCNJRE.com

Sellers - Presenting Your Home

2008-08-08T22:03:00Z

Living in a home and keeping it in good condition for showings can seem overwhelming.

This consideration, as well as several others, are addressed in the book House Hunting, The Take-Along Workbook for Home Buyers. Author Dian Hymer offers several suggestions for helping current owners keep their home in showing condition.

These suggestions include:

Buy a big plastic tub for each room. If a prospective buyer wants to see the home, you can quickly de-clutter by throwing unattractive essentials like toys and clothes into the tubs. Make sure to stow the tubs in the garage or closet.
Develop an escape plan. Decide in advance where you go when potential buyers are on their way over. It doesn have to be far – taking a walk through the neighborhood is probably good enough.
Be flexible with showing times. Setting severe limitations makes it harder to sell a home.

Not only will these tips help you keep your house tidy, but they will also help make the home selling process more manageable.

Tips on Homeowners Insurance

2008-07-11T17:32:00Z

When purchasing a home you will be required to show proof that you have homeowners insurance, also commonly called hazard insurance or home insurance. In fact, all lenders will require a policy to be in force prior to funding the loan.

The most commonly written policy, the HO-3, is designed to cover all aspects of the home, structure, its contents, loss of its use, loss of personal possessions and liability in the event of an accident.

It's important that your policy specifically names what will -- and what will not -- be paid in the case of various events. Typically, claims due to earthquakes, floods and other natural disasters are excluded (but often available for an additional premium). In addition, you should have your policy updated occasionally to reflect the current value of your property. Following are a few tips.

Don't Wait -- Find out if you have the right type and amount of insurance before something bad happens.
Increase Your Deductible -- Increasing it a little can make a big difference in your premium.
Discounts -- There are dozens available; ask your insurance agent about which ones might apply to you.
Purchase Enough Coverage to Replace What Is Insured -- "Replacement" coverage gives you the money to rebuild your home and replace its contents. An "Actual Cash Value" policy only covers what your property is worth at the time of loss (takes into account depreciation).
Special Coverage -- If you have valuable jewelry, coins, antiques, electronic equipment, etc., you may want to pay a little extra to have it covered.
National Flood Insurance Program -- Homeowners who live in areas prone to flooding should check into this program.
Shop Around -- Get at least three quotes as prices vary.
Choose Your Battles -- Once you have home insurance, be careful about making too many claims. Frequent claim activity can be grounds for non-renewal, so make sure your claims are reasonable.

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