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Real
Stories
Despite national
headlines suggesting that the real estate market is stagnant, New
Jersey residents have recently found opportunities in the state's
real estate market. These real life experiences have been compiled
by the New Jersey Association of REALTORS® (NJAR®) in an effort to
highlight the opportunities that exist in the state's local markets.
Newlyweds Start
a Family in Mays Landing
First time home buyers and newlyweds,
Anthony and Danielle, began their search for a home when they
realized their apartment would not accommodate their desire to start
a family. The couple began searching online, and visited a few areas
with the initial idea, like so many in today's market, that the
homes in the town they wanted would be out of their price range.
"I guess we didn't believe it was a
buyer's market at first," said Anthony. "But once we started our
search, it seemed that there were a variety of homes that were
definitely available to us."
The couple landed a beautiful home in
September 2008 in Mays Landing, home to Atlantic County's
breathtaking scenery and historic attractions, at an affordable
price and perfect for raising a family. "We knew we didn't want to
live in an apartment forever," said Anthony. "We want to have kids
in two or three years and we wanted to buy a house that we didn't
have to upgrade when we decided to have kids."
With so many conflicting reports about
real estate prices and tight mortgage lending circulating in the
news, the couple relied on the help of a REALTOR® for guidance and
expertise through the process of buying a home. Ultimately, Anthony
and Danielle came to believe the process is not as complicated as
people think. "It turned out to be a lot easier than some people
make it out to be," said Anthony. "Of course it's stressful because
you are about to go into debt, but it was very easy for us,
especially the closing of the house."
Anthony continued, echoing the thoughts
perhaps of many young couples in New Jersey thinking about buying a
home of their own. "I'm probably the only crazy one to buy a house,"
he said. "But we are looking to the future."
Hardyston Family
Earns Double on Home After Unexpected Move
When Mary Lee was offered a new job
position far from her home in the tranquil Sussex County town of
Hardyston, she and her husband had to decide if they wanted to move
their two children, ages 8 and 11, in pursuit of this new
opportunity. Ultimately opting for a more spacious and comfortable
home, they sold their home for double the amount they paid for it
with the help of their REALTOR®.
Given the uncertainty in the current
market, Mary Lee wasn't hesitant about selling her home because she
believed it was appealing to buyers. "I thought my home was in good
shape," said Mary Lee. "We just did a huge renovation and the move
was unexpected."
The family's REALTOR® provided them with
an accurate picture of the market and helped them determine an
appropriate asking price. "I chose her because she had sound
reasoning around why a certain price would be beneficial," said Mary
Lee. "She had a full understanding of today's market and how people
are shopping and helped make me comfortable putting it up for a
lower price when I originally thought it was worth more." In
trusting her REALTOR®, Mary Lee and her family generated traffic
flow and several return viewings, while securing a price they were
comfortable with in less than a month.
Mary Lee believes the reporting on
current market conditions is far from accurate.
"I think the media harp on the areas that have the most potential
for swing and they talk more about the swing as opposed to the
reason for it," she said. "I sold my home for double what I paid for
it, plus $5,000. They say the market should double every 10 years -
it was pretty much on track."
First Time Home Buyer Scores Touchdown with Barnegat Home
Single first-time home
buyer and NFL employee, Matt, knew that the current market would
provide a wide variety of homes. Originally from Toms River, Matt
became interested in the Barnegat area to be closer to his friends
and family who live near this historic sea port town, which features
sprawling parks, quaint antique stores, gift shops, ice cream
parlors, restaurants and museums. It was also family that helped
guide Matt along the way to purchasing his dream home.
"My father works in the
mortgage business so I knew from him that it really was a buyer's
market," said Matt. Combined with the help of his REALTOR®, Matt
gained a good perspective on his local market once he decided to
look for a home.
"I did some searching
online on my REALTOR®'s website and then I called him to let him
know what I wanted to go out and see."
Matt ended up scoring
big, buying a larger home than he set out for - a 3,000 square foot
home, constructed by a home builder specializing in Ocean County
developments. "I have friends who are now also interested in buying
a house because they see particularly how big of a house I was able
to get for such a good price."
Ultimately, Matt
attained his goal of making a good investment and finding the
perfect place to build a household. "I really wanted to settle down
and stay in one place," said Matt. While it might not be the best
time for everyone to purchase a home, Matt spoke highly of his
experience in the real estate market, simply stating: "For me,
everything went perfectly."
Sayreville Couple Lands Dream Home For Affordable Price
When John and his girlfriend, Priscilla, received the news that the
house they rented in South Amboy was being sold by the owner, they
started to evaluate whether or not they could become homeowners
themselves. They decided to explore houses for sale in their area
and settled on a home in Sayreville after a thorough search.
Recently they shared with us their buying experience in the
Sayreville housing market.
Given current speculation about the real estate market, the couple
set out hoping to capitalize on local opportunities, but had no idea
they would be able to find their dream home for such a reasonable
price. "It surprised me how much the previous owner of our home had
come down (on price) because originally we thought it was out of our
price range," John said. "Our REALTOR® helped us negotiate to a
point where we could afford it."
While on their search for a new home, the couple's REALTOR® kept in
constant contact with them to ensure their buying experience was
positive and they remained informed on the current logistics of
their market. "She was nice and informative," John said. "She helped
us out a lot. We would look online and she would get us the listings
we asked for along with information about the location – she was
very honest with us."
As a designer, John knew he was ultimately looking for not only a
home for a great price, but also a place that allowed him to express
his creativity. "We were really looking for something with more
space, a backyard and being able to have a place of our own with the
freedom to do what we wanted was a major factor," he said. "As a
designer, it was important to me to be able to not have to deal with
white walls anymore!"
Manahawkin Couple Sees Opportunities in Current Market
John, a Stafford Township property owner on the brink of
retirement, once heard a speaker accurately describe wealth and it
has stuck with him to this day. "The difference between being rich
and being wealthy is that when you are rich you have money, however
being wealthy, your money makes more money for you." This buyer's
unique perception of the real estate market has helped him and his
wife, Helen, close their fourth investment property to date.
Recently, they shared with us their buying and selling experience in
Manahawkin.
Despite current speculation, the couple believes that many
opportunities exist in the New Jersey real estate market. "This is a
perfect market to purchase an investment property," John said.
"There are some really good opportunities out there right now."
The couple used the 1031 property exchange process to help them
meet their goals in the current market. Through the 1031 exchange,
they were able to put off paying capital gains in order to
effectively use the money they earned from selling to purchase their
next property.
As a cost analysis expert, John understands the importance of
investing and the necessity of generating a solid return on
investment (ROI). "What you get back in positive cash flow plus
payments toward principle, and any increase in equity or value of
the house is your return on investment," he said. "In addition you
also have certain write-offs such as depreciation, and tax
advantages that further add to your return on investment."
The couple's REALTOR® played an intricate role in their success
with the 1031 exchange. "Using our REALTOR® as an agent was a great
asset due to her in-depth knowledge of how 1031 exchanges work,"
John said. "We identified the size and type of house we were looking
for in advance of the actual sale of our one investment property. We
were able to close on the property we were selling and close on the
property we were purchasing within the same week."
As someone who has a personal interest in the Stafford Township
area as councilman, John likes the idea of investing in his
community. "Finding homes that needed some work (mostly cosmetic)
allowed us to buy homes at a low price, put in improvements that
significantly increased the value of the house." he said. "Improving
these homes has improved our communities and neighborhoods."
When it comes to reports on the current market, the couple
believes the media should consider location. "The media is reporting
the housing market on a national level. Each geographic area is
different," John said. "Also, keep in mind that although home values
have come down recently, if you take a longer term look, and go back
five, ten or more years you still did quite well. You need to
recognize real estate as a long term investment."
The couple has several friends who remain nervous about the
market. However, the couple believes many are missing out. "If the
property is in a desirable place to live the house will hold or only
have a slight decrease in value, and may even slightly increase its
value even in a depressed market. Too many people don't look at this
as an opportunity to buy low, and they miss the opportunity," John
said. "I have friends who ask me if I am sorry I invested so much in
the real estate market now that it is dropping. I remind them that
my properties are still worth much more than what I paid for them,
they still give me a monthly income, and I actually have a limited
amount of my own money invested."
Whether buying or selling a home, the couple feels the best part
of homeownership is owning real property. "With real estate I only
pay a one time fee when I sell," John said. "Having control of your
own money and tax advantages are the primary benefits to
homeownership."
Growing Family Counts on Inherent Value of Bergen
County Homes
After selling their home in Tenafly in August 2007, Jonathan, his
wife, Allison, and their two children relocated to Amsterdam. It
wasn't until they discovered they were expecting their third child
that they decided to travel back to their home state to raise their
new baby, closing on a new home in Northern New Jersey this past
July. Recently they shared with us their experience with buying and
selling in Bergen County within a one year span.
Before deciding to sell their home in Tenafly, the couple was
somewhat skeptical of being able to draw in a good offer. "Everyone
is aware that the housing market has pulled back from its highs and
that there is a lot of uncertainty in the market place," said
Jonathan. "Our concerns were not just that we would receive a good
offer, but also that the buyer would qualify for a mortgage."
They
discussed setting a realistic price with their REALTOR® that would
attract buyers and also help them obtain the highest value. With
current speculation about the housing market in their minds, the
couple looked to their REALTOR® for guidance to help them achieve
their goals. "I think the media has focused on the extremes in the
housing markets, areas that experienced hyper-growth in housing
prices over the past decade and are now experiencing the largest
declines," said Jonathan. "Our REALTOR® gave us a good feel for the
market and helped us negotiate a fair price on the house," he said.
When the couple decided to buy a home several months later in the
same area, they considered their family's individual needs. After
having bought their first home as a young couple when their life
together was just beginning, they entered the market looking for a
good investment. Now with two kids and a baby on the way, they
wanted a house with plenty of growing room and one they could live
in for a long period of time. "In both cases we selected the best
neighborhood, with the best school systems that we could afford,"
said Jonathan.
With the help of a REALTOR®, the couple found a home to fit their
growing family in Closter. "We found the Northern New Jersey real
estate market to be more mature, meaning housing prices have not had
the same rise and fall as other places. There is still an intrinsic
value for homes that are located so close to New York City," said
Jonathan. | 
