Home Equity Sees Recovery in Millburn-Short Hills Area

Fewer homes are underwater in value, according to the latest report from CoreLogic. Improvements in home values are being seen nationwide as well as in Millburn-Short Hills!

I won't keep you in suspense! CoreLogic says that 88.1 percent of homes in the New York-White Plains-Wayne N.Y-N.J. statistical area have positive equity!

While we are a few miles away from the core metropolitan area, our home values have seen a similar, progressive rise in recent months. Please keep in mind that this is a broad statistic and home values will vary by neighborhood.

CoreLogic's report also shows that homes at the higher price ranges are gaining equity at a quicker pace. Here are some more findings:

86 percent of homes valued at $200,000 or more have equity, compared with 72 percent of homes valued at less than $200,000.

  

Homes with a combination of outstanding primary mortgages and home equity loans accounted for $315 billion of negative equity nationwide. 

 

6.5 million negative equity borrowers hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $213,000. The average underwater amount is $45,000. 

3.9 million negative equity borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $296,000.The average underwater amount is $80,000! 

In other words, the total amount of mortgage debt outstanding plays a role in how quickly homes recover equity. And because second mortgages were used as a down payment method during the boom, some homeowners were heavily leveraged from the beginning. These homeowners have deeper hole to escape, but fortunately the market trends are cooperating. 

If you are preparing to sell your Millburn-Short Hills home, let's start with a comparative market analysis to find out your home value in today's market! I will also provide a net sheet to show your estimated sale proceeds. 

As your Millburn-Short Hills real estate professional, I will provide the expert guidance you need for a successful home sale! Contact me today, and let my 18 years of experience be your market advantage!  

Elaine Pruzon
Coldwell Banker Residential Brokerage
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New Credit Scoring Model Could Help New Jersey Home Buyers

Most New Jersey home buyers are familiar with FICO - the traditional credit scoring model that is used by lenders to determine borrowing risk. While FICO has dominated the credit scoring market for the past 20 years, the new VantageScore model is gaining momentum. Here is what it could mean for New Jersey home buyers!

Per a recent CNN Money article, VantageScore is now used by 4 of the 5 top mortgage lenders in the country. VantageScore is also used by:

7 of the top 10 financial institutions
6 of the top 10 credit card issuers
4 of the top 10 car loan companies

VantageScores have been around for a few years, but have been somewhat confusing to consumers because the numerical range has been different than FICO. However, the 3.0 version of VantageScore solves this. In the future, both VantageScore and FICO will follow a credit score range of 300 to 850. The higher the number, the better the score

There are a few other differences in the scoring models that could benefit home buyers and other credit applicants. VantageScores consider rent payments, utility bill payments and public records in their computations. This will provide credit scores for consumers with little or no borrowing history who fall through the cracks with FICO.

And because VantageScore was developed by the "big three" credit reporting agencies, the logistics in scoring are more uniform. Some variety in score between one bureau and other is normal, since not all lenders report to all bureaus.VantageScore claims to "lift" consumer credit scores in general because there are fewer variances in score tabulation.

Another big plus of VantageScore: collection accounts will not hurt your score if the balances are zero.

In other respects, the two scoring models are very similar - and neither one is going to tell you exactly how they come up with your score. Nor is your lender likely to tell you in advance which credit score company they will use in their lending decision. It's possible that lenders may use both FICO and VantageScore for a more complete picture of creditworthiness.

Understanding how credit scores work can help you get approved for a mortgage and help you save thousands of dollars in interest charges. No matter the scoring model used, the same basics of good credit apply: pay your monthly bills on time, and keep your credit use to a minimum!

As your real estate professional, I'm happy to share consumer information that benefits the residents of Millburn-Short Hills, Livingston, and Summit. Please feel welcome to pass this information along! 

When you have questions about New Jersey real estate, I will be here to help you! Just give me a call!

Elaine Pruzon
Coldwell Banker Residential Brokerage
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New Jersey Home Prices Begin 2013 on Positive Note

Recent information from CoreLogic shows that home prices moved higher in January 2013, giving optimism for continued price growth through the rest of the year. There's no hibernation for the real estate market, with sales activity up sharply as well!

Here is a look at the big picture, along with the latest news for New Jersey real estate!

Nationally, the Home Price Index in January 2013 scored 9.7% higher than January 2012. This includes distressed property sales as well as equity sales. This is the biggest leap in prices since April 2006, and also represents the 11th consecutive month of price gains.

Taking peek at home sales activity in comparison, the National Association of Realtors® reports that the Pending Sales Index for January 2013 was 9.5% higher than January 2012. This index looks at contact activity in the market; namely the volume of homes for sale that receive accepted offers.

Looking at the two sets of analytics, it's easy to see that prices are following demand, and that 2013 is starting off well for most housing markets in the country.

Closer to home, CoreLogic shows that the region of New York, White Plains and Wayne, NJ reflected a January 2013 Home Price Index 11.2% higher than a year ago.

Meanwhile, the National Association of Realtors® Pending Sales Index for the Northeast came in 10.5% higher in January 2013 over January 2013.

When the State of New Jersey is separated out by itself, the increase in the Home Price Index is more reserved, showing a gain of 1.5% over a year ago, including distressed sales. Locations that are closer to major metropolitan areas, with public transportation access, are faring better than the outlying communities.

What does it all mean for Millburn-Short Hills home values? We are seeing gradual price improvement as home inventories are absorbed, and so long as the economy remains stable and job prospects are good, we can expect continued gains. Please remember that all real estate is local, however, and to find out how home values are doing in your neighborhood, just give me a call!

As your Millburn-Short Hills real estate professional, I am here to help you whenever you are thinking of buying or selling a home! Contact me today, and let my 18 years of experience give you the advantage in our real estate market!

Elaine Pruzon
Coldwell Banker Residential Brokerage
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Home Buyer Wish List Includes Bells and Whistles

A new home buyer survey by the National Association of Home Builders reveals the home features, amenities and locations most coveted by today's buyers. While the survey isn't necessarily scientific, it's interesting to look at the sale points the survey revealed. Here are some examples, in random order!

1. Double sinks in the kitchen; a "prep sink" as well as a full, traditional sink.

2. Energy-star rated appliances.

3. Energy-efficient and convenient laundry facilities.

4. French doors.

5. Wireless home security systems.

6. Whole-house technology, allowing entertainment and utility controls in virtually every room.

7. Well-appointed bathrooms with both a tub and a shower stall.

Please keep in mind that this is a "wish list" and that home buyers are not necessarily willing to pay more for any of these features. But these are the "wow" factors that could influence buyers, potentially, to choose one home over another, according to the survey.

What turns off home buyers? Laminate counter tops.

The survey also indicated surprising results about location preferences. We've been hearing about "walkability" and "infill" development trends, but according to the survey, suburbia is alive and well:

• 30% of buyers prefer close-in suburbs
• 36% of buyers prefer to live in the outer suburbs
• 27% would prefer rural living

What's out? Golf-course homes. Unless, of course, the buyers are avid golfers! Meanwhile, gated communities that offer walking and jogging trails, and amenities like pools and tennis courts, still hold buyer appeal.

What matters the least? If you can believe it...home size! According to the survey, home buyers would cheerfully take a smaller home over a larger one, if it had the upscale features they desired. They would also choose a home with energy efficiency, over one that is not efficient, even if the non-efficient home was less expensive.

Before you run out to the local home improvement store to invest in upgrades, talk to me first! If you are preparing to sell your Millburn-Short Hills home, you should obtain a comparative market analysis to find out your home's price range before you make improvements. I will also provide you with a net sheet to show your estimated sale proceeds, and I will counsel you on competitive marketing strategies.

 As your Millburn-Short Hills real estate professional, I will provide the expert guidance you need for a successful home sale!

Elaine Pruzon
Coldwell Banker Residential Brokerage
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Property Inspections and Your Millburn-Short Hills Home Purchase

A recent article by Inman News states that property condition is among the top concerns of home buyers. This is understandable in light of the number of foreclosures and short sales that remain on the market. Deferred maintenance can be an issue with any home, in any type of sale.

For these reasons, home inspections are playing a larger role in today's home buying process!

While home inspections are not required when you purchase your Millburn-Short Hills home, they are highly recommended. However, you should understand what a home inspection is, and know what it will accomplish for you.

The first thing to keep in mind is that home inspections are a visual examination of the property condition. Nothing is taken apart; no warranties are issued.

Home inspections in the State of New Jersey are regulated. Home inspectors are required to meet education and experience criteria before receiving a license. You should always screen your home inspectors to make sure they hold an active license. I can also refer you to several home inspectors in our area, but the choice of inspector is yours.

Next, the definition of a home inspection, according to the State of New Jersey Division of Consumer  Affairs, is as follows:

A home inspection is a visual, functional, non-invasive inspection conducted for a fee. It is performed without moving personal property, furniture, equipment, plants, soil, snow, ice or debris. It examines the readily accessible elements of a residential building in order to report the condition of:

• structural components
• exterior components
• roofing system
• plumbing system
• electrical system
• heating system
• cooling system
• interior components
• insulation components
• ventilation system
• fireplaces and solid fuel burning appliances

Home inspections are paid for by the home buyer. Again, they are optional but highly recommended. The cost of a home inspection varies; it can run anywhere from $250 to $400.You will want to be present during the inspection, if possible. In any case you will receive a written report of the inspector's findings.

Last but not least, remember that no home is completely perfect! The inspection will help determine if there are any obvious flaws that need attention. You will then have the opportunity to negotiate any repair issues - or, to exit the deal, if you have made the proper contingencies in your purchase offer. I will help you with this!

As your Millburn-Short Hills real estate professional, I will provide you with expert assistance throughout  the home buying process! I will be your professional guide during the home search, negotiations and the closing! 

Contact me today, and let my 18 years of experience be your home buying advantage!

Elaine Pruzon
Coldwell Banker Residential Brokerage
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Facts About Credit Report Errors and Credit Fraud

Most of us don't think about our credit report unless we are buying a home or making some other major purchase. But you don't want to wait until a loan denial to find out there's a problem!

Here are some eye-opening facts about credit report errors and credit fraud that everyone in Millburn-Short Hills should know!

According to the Federal Trade Commission, one in four consumer credit reports contain errors. In most cases the errors do not affect the credit score computation, but 5% to 10% of them do. Erroneous data can come from the creditor who is reporting payment history, or from the credit bureau's handling of the consumer file.

Errors can be corrected, but you must bring them to the attention of the credit bureau! This is just one more reason why pulling your free credit report once a year is so important. The official consumer-access site is annualcreditreport.com. Beware of imitations!

Another issue is the growing problem of identity theft and credit fraud. The FTC estimates that over 9 million people are victims of credit fraud every year! Look at these facts:

• 16% of fraud victims were victimized by someone they knew.
• 84% of fraud victims did not know who obtained their personal information.
• Of the above, over half of the victims did not know how their info was stolen.
• 37% of fraud victims became alerted to the fraud by monitoring their accounts. 

High-tech thieves are capturing credit and debit card data by placing skimming devices and micro-cameras on outdoor ATM machines and gas pumps. There are also more pedestrian methods of fraud, such as phishing scams that collect banking and credit card data from unwary e-mail users. 

Again, you don't want to wait until you've applied for a mortgage to find out something is amiss on  your credit report. The longer a fraud issue or error continues undetected, the greater the damage. 

You can nip problems in the bud by pulling a copy of your credit report at least once a year. You should also examine your bank statements and credit card statements each month with a fine-tooth comb. If you haven't looked at your statements in awhile, go back and check the last quarter of 2012 on forward. Fraud is at its height during the holidays. 

As your real estate professional, I'm happy to share information that benefits the communities of Millburn-Short Hills, Livingston, and Summit. Please feel welcome to share this information with anyone it could help! 

When you have questions about New Jersey real estate, I will be here for you! Just give me a call. 

Elaine Pruzon
Coldwell Banker Residential Brokerage
Visit My Website
See My Listings
Become My Fan on Facebook
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Contact Me  
 

New Jersey Home Buyers Face Changes in Markets and Mortgages

2013 is presenting a different real estate market and lending environment for home buyers! If you are thinking of buying a home in New Jersey, keep these facts in mind!

First, CoreLogic reports that the New Jersey home market is showing improvement, but of course we still have a wide variety in market condition. Neighborhoods that have good commuter access are seeing more buyer demand and shrinking home inventory. In other areas there is still an impact to home prices caused by foreclosures and the past recession's unemployment trends.

What this means is, there are attractive deals for first-time home buyers in New Jersey, but you need to know where to look. Home inventory is limited, and as we near the spring season, buyer competition will heat up.

Next, there are 3 changes to the mortgage environment in progress, and while these won't be show-stoppers, you need to be aware of them!

1. Mortgage interest rates are trending higher and are expected to gradually climb up throughout the rest of the year. You can watch rates by looking at the weekly rate survey by Freddie Mac; it's at the bottom left of the home page. Please keep in mind that the actual interest rate you may qualify for could be different.

2. FHA-backed mortgages, which are popular for first-time home buyers, have new qualifying guidelines. The mortgage insurance premiums have also increased in cost, and you can no longer waive them as your loan matures. Mortgage insurance covers the lender in case of default. I can refer you to a good mortgage lender who can explain FHA loans in more detail.

3. The new Consumer Protection Act changes the way lenders must look at loan applications. The rules basically abolish the risky mortgage practices that led to the housing crash. Lenders must prove that the borrower has the ability to repay the debt; not just during an introductory interest rate, as in the case of adjustable-rate mortgages, but also through the life of the loan. It means that new ARM loans will be phased out, for all practical purposes. Self-employed loan applicants will continue to face tough criteria. Get used to the picky underwriting process; it's here to stay!

All together, it means that home buyers shouldn't take anything for granted. The markets change, rates change, mortgage rules change. This is why you need expert guidance to help you capture the best opportunities and succeed in your home buying plans!

When you are looking for the ideal Millburn-Short Hills or Summit home, let me be your guide to the market! I have the latest information about home prices, neighborhood trends, schools and more - everything to help you find the best home for your needs!  

As your Millburn-Short Hills real estate professional, I will give you expert assistance with the home buying process from A to Z, from home search, to negotiations and closing. Contact me today, and let my 18 years of experience be your home buying advantage!

Elaine Pruzon
Coldwell Banker Residential Brokerage
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