With Rates & Prices on the Rise, Do You Know the True Cost of Waiting to Buy A Home in Nutley NJ?

Waiting to buy  a home in Nutley NJ?

Buying A Home in Nutley NJ

We, at KCM, have often broken down the opportunity that exists now for Millennials who are willing and able to purchase a home NOW… Here are a couple other ways to look at the cost of waiting to buy a home in Nutley NJ.

Let’s say you’re 30 and your dream house costs $250,000 today, at 4.41% your monthly Mortgage Payment with Interest would be $1,253.38.

But you’re busy, you like your apartment, moving is such a hassle…You decide to wait till the end of next year to buy and all of a sudden, you’re 31, that same house is $270,000, at 5.7%. Your new payment per month is $1,567.08.

The difference in payment is $313.70 PER MONTH!

That’s like taking a $10 bill and tossing it out the window EVERY DAY!

Or you could look at it this way:

  • That’s your morning coffee everyday on the way to work (Average $2) with $12 left for lunch!
  • There goes Friday Sushi Night! ($80 x 4)
  • Stressed Out? How about 3 deep tissue massages with tip!
  • Need a new car? You could get a brand new $22,000 car for $313.00 per month.

Let’s look at that number annually! Over the course of your new mortgage at 5.7%, your annual additional cost would be $3,764.40!

Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining.  We could come up with 100’s of ways to spend $3,764, and we’re sure you could too!

Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $112,932, all because when you were 30 you thought moving in 2014 was such a hassle or loved your apartment too much to leave yet.

Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready, but if they showed you that you could save $112,932, you’d at least listen to what they had to say.

They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now in Nutley

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    Where to Look for Hidden Gems in Nutley Real Estate

    Pricing a home in Nutley is more art than science.

    Get beyond the standard information you can search online like square footage, bedrooms, bathrooms, year built, etc. Homebuyers in Nutley should be on the lookout for some of these hidden gems that may undervalued (or not even included) in the listing price.

    We asked the ActiveRain community to tell us what they thought were some of the hidden gems in real estate, it’s no surprise that some people thought certain features ‘a waste of money’ while others thought the exact same feature ‘worth every penny!’

    But at the end of the day, Nutley real estate professionals are in agreement, there are certain hidden gems in a home that have the potential to add long term value for a buyer and might not be actually reflected in the selling price.

    This community sourced data, which we turned into an infographic, allows a buyer to look beyond the obvious things that affect price and identify hidden gems that could add value to the next home they purchase.

    Nutley Real Estate

     

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      How To Negotiate A Great Deal On Your New Home in Nutley

      Keep your emotions in check and your eyes and a new house in Nutley is the goal, and you’ll pay less when purchasing a home.

      Here are six tips for negotiating the best price on a home on a new home in Nutley.

      1. Get prequalified for a mortgage

      Getting prequalified for a mortgage proves to sellers that you’re serious about buying and capable of affording their home. That will push you to the head of the pack when sellers choose among offers; they’ll go with buyers who are a sure financial bet, not those whose financing could flop.

      2. Ask questions

      Ask your agent for information to help you understand the sellers’ financial position and motivation. Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.

      3. Work back from a final price to determine your initial offer

      Know in advance the most you’re willing to pay, and with your agent work back from that number to determine your initial offer, which can set the tone for the entire negotiation. A too-low bid may offend sellers emotionally invested in the sales price; a too-high bid may lead you to spend more than necessary to close the sale.

      Work with your agent to evaluate the sellers’ motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.

      4. Avoid contingencies

      Sellers favor offers that leave little to chance. Keep your bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Do keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.

      5. Remain unemotional

      Buying a home in Nutley is a business transaction, and treating it that way helps you save money. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.

      Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.

      6. Don’t let competition change your plan

      Great homes in Nutley  and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions—such as waiving an inspection—that aren’t in your best interest.

      More from HouseLogic

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      Keep your home purchase on track

      Plan for a stress-free home closing

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        A Few Reasons Why That Extra Bedroom Might Be Worth It

        Buying A home in NutleySo you are looking at buying a home in Nutley NJ, but you are wondering whether or not it is worth it to pay a little extra for a home with one more bedroom in Nutley.

        It’s a tough decision to make, especially when balancing other factors such as location and the other features of the home. However, having one more bedroom than you think you need could end up being a good thing for a number of reasons.

        Expanding Family in Nutley

        Perhaps you only planned on having two children, but a third one might come along as an unplanned surprise… will you have enough room for everyone in your new Nutley Home?

        One of your children’s friends might have a bad home situation and need a place to crash for a while. One of your elderly parents might need to live with you for a while in Nutley.

        There are many situations when the family living under your roof might expand, (even if it’s just having guests over the weekend) so make sure that you have the space to accommodate.

        A Home Office in Nutley

        If you are working from home or have your own business in Nutley, a private space in the home to work can be worth its weight in gold. It’s really difficult to be productive when you are trying to work at the kitchen table with the rest of the family buzzing around you, so turn your extra bedroom into a home office.

        Rental Income in Nutley

        An extra bedroom might be a great source of income, especially if it can be turned into a basement or attic suite. As long as you don’t mind the responsibility of being a landlord, you could rent out the room to a tenant in Nutley and let their rent help you cover the mortgage payment.

        Resale Value in Nutley

        Buying a slightly larger house in Nutley with one more bedroom means that the home will be easier to sell in the future. This is especially true if all of the other homes in the area have similar amounts of bedrooms.

        These are just a few reasons why an extra room can really come in handy. If you want to know more about home buying, you can contact me your trusted real estate professional.

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          Nutley FSBO Home Buyers Look to Agents for Safety

          Nutley For Sale By OwnersAccording to the National Association of Realtors, last year there was a 14% decline in the number of For Sale By Owner (FSBO) properties. Despite that decline, FSBO properties are still available in Nutley – and in an inventory-challenged market, you might find one of them is a pretty tempting buying opportunity.

          But here is where caution is warrented — and where you may be amply rewarded by seeking a Nutley buyer’s agent to represent you. There’s more than one reason why:

          FSBO owners may, er, hide things

          It can be tempting for FSBO sellers to cover up problems that would have been picked up if a seller’s agent had been involved. By using an experienced buyer’s agent, you stand a much better chance of identifying those common problems. A qualified inspector (your agent will recommend a good one) can help you spot the more well-hidden ones.

          FSBO properties usually cost more!

          Statistics bear it out: it’s estimated that FSBO properties can cost 10 to 20% more than those listed via real estate agents. Owners in Nutley just tend to overestimate their property’s worth and selling potential. And without the counsel and guidance of a real estate professional, sellers usually establish a stronger emotional attachment to their first listing price. The presence of your buyer’s agent (with a notebook full of comps) is sure to power up your negotiating stance!

          Legal issues

          One of the main reasons to team with an agent is the plethora of legal issues that are interwoven with residential real estate sale transactions. By using an agent, you stand to identify any contractual mishaps before they are executed — and well before costly repercussions materialize. Since many owners who take the FSBO route in town are usually short when it comes to real estate transactional expertise, there may be required disclosures and important paperwork that they have missed. You don’t want to find that out too late.

          If you wind up seriously eyeing a Nutley FSBO home this summer, save future headaches by including your buyer’s agent commission in your offer. More questions? I’m available for consults this week!

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            The Search for the Perfect Nutley Listing Agent

            No matter what triggers your decision to sell, a crucial next step for every homeowner is selecting the Nutley listing agent who will bring in the best results. If you don’t already have a bead on a leading area star producer, there are any number of factors that can help guide your listing agent choice. Some will be narrowly applicable to your home’s special characteristics, and some will be more universal.

            The first consideration should be deciding whether you will be best served by tapping a specialist. Perhaps your property cleanly falls into the luxury category; perhaps it could best be offered as a supremely rentable vacation property. If it belongs in a specialized real estate niche, your first move may be to seek an agent who promotes his or her expertise dealing with that specific market.

            If that’s not the case, and if you know somebody who has sold a home recently, ask him or her for details about the experience. While online forums offers plenty of reviews, the most dependable way to get a candid and unbiased opinion on a Nutley listing agent is to ask someone who has had recent personal dealings. Ask what they liked best about their listing agent, and what, if anything, they would have changed.

            In any case, before settling on the listing agent in Nutley who will be your marketing partner, speak to an alternate candidate or two. Don’t be afraid to offend them if they don’t wind up as your first choice: remember, they are pros. And (incidentally) it won’t hurt that more than one agent has advanced knowledge that your property will soon be on the market!

            Even when time is a factor, don’t rush too much in choosing your listing agent. A few extra days devoted to making the right decision can save weeks (or months!) later. If you are preparing to bring your home to market, I always offer you a no-obligation in-home consultation — and always put the strength of my network to work for you.  For proof — just ask!

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              Nutley Mortgage Rate Hikes Pose Riddle

              This is one of those multiple-choice questions: which is true – A, B, C, D, or E?

              A) If the headline reads NUTLEY MORTGAGE RATES ON THE RISE! it means it’s time to buy (quick) before they go up further!

              B) If the headline reads NUTLEY MORTGAGE RATES FALL! it means it’s time to buy (quick) to cash in on the savings!

              C) If the headline reads NUTLEY MORTGAGE RATES UNCHANGED! it means it’s time to buy (quick) while the rates are stable!

              D) All of the above.

              E) None of the above.

              My answer is below (and it’s not even upside-down), but before anyone even looks down there, I’d like to mention that there is an equally valid second question, which would read ‘sell’ instead of ‘buy.’

              This week is a good time to be pondering both questions. It looks as if the long-lived swoon in mortgage interest rates is about over. “Looks as if” is a carefully chosen phrase, because what seems inevitable in finance has a strong track record of proving wrong. One of the dangers that our current environment presents is that everyone has been correct (about mortgage rates staying in the cellar) for such a long time that they’ve grown accustomed to rates being predictable. They aren’t.

              So the answer to the question is (drum roll, please): E).

              It’s a trick question: when it comes to buying or selling a home, doing anything “quick!” just because of a one-week dip or rise in Nutley mortgage rates is a bad idea. It’s a big decision, one that should be entered into with care and forethought. But if you were to remove the “quick!” from the question, I’d personally tend a little more toward D), but only because I don’t think local mortgage rates are likely to fall right away. And rates today are still, historically, very low.

              Good time to buy, good time to sell. Thoughtfully.

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                Getting a mortgage in Nutley these days can be more involved than in years past, not least because their historically low rates make them so desirable. That loan can make or break a fantastic deal — the kind of deal you don’t want to lose when you come across it! Central to the process of getting a mortgage is your mortgage broker…but how do you know when you’ve found a great one?

                These are some of the qualities I believe most often point to the answer:

                • Truly outstanding mortgage brokers get tons of referrals from previous clients and their real estate agents…while other less well-appreciated or experienced brokers must constantly solicit new business. BUT (a very important ‘but’) that is not to say that a mortgage broker who solicits isn’t perfectly well qualified; simply, if you have selected a broker through his marketing, be sure to ask for a few recent references — and speak with them!
                • Getting a mortgage often obligates as much as a third of a household’s income, so it’s vital that it fit properly into the overall financial picture. A great mortgage broker asks the right questions to find a product that best fits your long-term goals, even when they aren’t the easiest ones to ask.
                • The rules governing mortgage transactions have changed significantly in the last few years — and they were plenty complicated to begin with. Learning much of the process on the fly is part of the challenge facing brokers who are new to the field. When you are getting a mortgage in Nutley, if you suspect yours will be anything other than a straightforward process, it may be best to look past a newly licensed broker. An easy way to learn how much experience your broker has is to inquire about his work experience over the last 10 years.

                Getting a mortgage in Nutley can be complicated, but it’s often decisive for your real estate transaction. I’ll be happy to introduce you to some of my proven local favorites. It’s one way we’ll be ready to go when we find you the perfect house!

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                  Three Questions to Ask New Neighbors When Relocating

                  3 Tips For Buying A Home in Nutley NJ

                  Homes For Sale in Nutley

                  With more than 43 million people relocating throughout the U.S. every year, you don’t have to wait until you are surrounded by stacks of cartons to realize how important it is to make your next move the right one. If you’re buying a house in Nutley in the foreseeable future, it’s a particularly valuable idea to take the time to chat with some of your potential new neighbors. And while you’re at it, why not bring up a few relevant questions:

                  Which schools are best? 

                  School quality affects more than just property values. Especially if you have your own kids, buying a house in town is least disruptive when their new school is the best one available. You’ll make the soundest choice by comparing more than one parent’s opinion.

                  Is there a neighborhood watch?

                  You will have already aimed for the safest area possible. Now, getting involved with an active neighborhood watch can further ensure your family’s safety. When buying a house, the presence of a neighborhood watch is a good indicator of some solid community spirit…and if there isn’t one, make sure the reason is that everyone already feels secure in the area.

                  What events are available in town?

                  Buying a house means buying a home base for all your family’s activities. By asking your neighbors which Nutley events and activities they enjoy the most, you’ll get a glimpse of the scope and depth of the cultural life that’s going to surround you. As a side benefit, just inquiring shows you as someone who is sociable — and that you’ll be a good new neighbor to have!

                  The simple act of reaching out in this way lets you familiarize yourself with a new neighborhood faster, and ultimately leads to a better-informed long term real estate decision. Especially if the area is new to you and your family, buying a house in Nutley is actually a one-time opportunity to make a host of new friends. I have tons of information available for future residents. If you’re even considering buying a house in Nutley, don’t hesitate to call me today!

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                    Buying a Nutley Home from the Bank?

                    The difference between a ‘Foreclosure’ and a ‘Bank-Owned Home’ may be technical, but  important to understand.  Foreclosures are properties that are auctioned off in a court process. A bank-owned home, on the other hand, is one that has reverted to the mortgage issuer: a bank.

                    A foreclosure can change hands with the bang of the auctioneer’s gavel: it’s a cash-in-hand situation, carrying all of the excitement (and risk) of any auction.

                    With a bank-owned home, the ‘owned’ is attached by hyphen to a banking institution – a spot not exactly known for excitement. True, banks are eager to sell, since a bank-owned home represents an unprofitable financial and management burden. But banks are by definition cautious, thorough, and usually (unlike auctioneers) prone to moving like molasses in December. So, persistence and care will be needed to take advantage of the potential bargain a Nutley bank-owned home represents.

                    Since you will need to prove you are qualified to buy a bank-owned home, being pre-approved for a loan will come in handy.  It will also be important to have a good home inspector at the ready, since most bank-owned properties are sold as-is. You will want detailed information about the condition of the house and likely cost of repairs that need to be made.

                    And while there are many sources for identifying a suitable bank-owned home online, when it comes to the next step — putting together a successful offer — enlisting an experienced local real estate agent is standard practice.  Sometimes a bank-owned home can be priced under market, sometimes over — but if you want to write the winning offer, you need to examine and understand the latest numbers.  By looking up the market comps and procuring costs faced by banks, your agent will help you present an offer that is both attractive to the bank and to you.

                    This winter, whether you are looking for an entry-level condo, a bargain fixer-upper, or a luxury REO, as soon as you are ready to start the search, call me — I will get you a list of Nutley  bank-owned homes now accepting offers.

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