How to Find an Ethical & Honest Realtor

In light of the recent Gallup Poll where only 17% of the public rated Real Estate agents favorably in terms of honesty and ethics, it begs the question, "How do I find an honest and ethical Realtor?"

This is a great question. For example, if you're looking for a home in my home town of North Brunswick, you couldn't simply open the phone book or google "Honest Ethical Realtor North Brunswick". After all, how would you know? How would you avoid getting this guy?

While there are no guarantees, here are a couple of things you can do:

1) Research prospective agents on the Internet. Check out their website and/or blog, as well as other Real Estate sites, such as Realtor.com, Homes.com, and Trulia.com.

2) Find out what other people’s experiences are with that agent. A great source of information is http://www.incredibleagents.com/.

3) Visit Open Houses. This is a great opportunity to interact with agents on a preliminary basis before committing to anyone in particular.

4) Select three agents and interview each one. During that process, have a list of questions to help determine their qualifications and ability to best serve your needs.

Finally, if you're unable to find a Realtor you feel you can trust in the area you are searching, you can always ask another Realtor for a referral. This is a great way to get a professional recommendation from someone who knows the business, but isn't trying to earn your business.

If you have any other questions or thoughts, feel free to contact me. I'd be happy to help!

Public Rates Honesty & Ethics of Realtors

In a recent Gallup poll, Americans rated the ethics and honesty of different professions. Nurses came up at the top, along with pharmacists and high school teachers.

What was a bit of a disappointment was the real estate agents ranked so low. Only 17% of people surveyed rated them as very high/high, while 25% rated them as low/very low.

It's a sad state of affairs when a majority of people feel that can't trust the very people who are guiding them in making some of their most significant financial and life decisions.

At the same time, we, as Realtors, need to do a better job of setting a higher standard and earning the trust of the general public (and it certainly doesn't help when NAR come out with bogus statistics). It's our fault as a profession if the public doesn't view us highly.

Real Estate Market Report (3rd Quarter) - North Brunswick, South Brunswick, East Brunswick

With the economic events of the last few weeks, I've been keeping a close eye on our local market. Before the bailouts, many people were predicting that we were close to the bottom, and though prices may continue to drop, the number of homes sold would go up. Now, with this economic uncertainty, its hard to say. Let's take a look at the market data...

As we've been seeing in national trends, based on data from the Middlesex MLS, the average price of a single family home in the Brunswicks have gone down, though the reality is that we haven't seen such a sharp decline until this past quarter.

While its early on in this quarter, based on current trends, we'll probably see the average price drop into the 450-455K range, though in these times, anything is possible.

Something I've been watching closely is the number of closed sales. While the numbers are down, they aren't that far off. If we see this number go up year over year in the 4th quarter into 2009, we could be looking at the bottom of the market. However, if we continue to have economic turmoil or rates rise significantly, we may continue to see a drop in number of home sales.

Once we see a stop to a drop in number of sales, that'll be great news, because prices will follow. Perhaps not immediately, but they will follow.

Sellers - The Bottom Line

If you saw the graph of the Case-Shiller Index in my previous post, you can see that average prices in decline and are predicted to do so. So, what does that mean for a Home Seller?

1) If you wait to sell your home or to price it where it will sell, the price of the home will continue to decline into 2009-2010, perhaps even into 2011, in the case of a severe recession.

2) In a more normal scenario, your home will be worth what it is now in 2011 (3 years from now).

3) In a severe recession scenario, your home will be worth what it is now in 2013 (5 years from now).

The Bottom Line - If you want to wait to get a certain price for your home, you may be waiting a very long time. However, if you need to move, don't wait. Inaction could be very costly!

Real Estate National Market Forecast

With all the craziness going on in the stock market and our economy, people are wondering, "What about home prices?" According to the Case-Shiller price index, a lot depends on our economy. Take a look at this graph...



In a normal market, we can expect to see the bottom somewhere in 2009, with prices equivalent to 2004. However, in a severe recession scenario, we're looking at a bottom in 2011, with prices equivalent to 2001/2002, meaning an additional 25% decline.

Granted, here in New Jersey, while we've had our decline, prices haven't dropped as signficantly as the rest of the nation. However, whichever scenario happens, we're in for a bumpy ride.

Stay tunes for practical implications for Buyers and Sellers...

First Time Home Buyer Tax Credit!

It's a great time to be a first time home buyer. Yes, the new housing bill passed. Among many of the new provisions, there is a tax credit up to $7500, which can be used on a home sale closing on or after April 9, 2008 and before July 1, 2009. Coupled with low mortgage rates and stablized prices in the Brunswick area, home buyers are in a great position to pick up a great deal.

A STRONGER NJ!

FROM TEMI'S DESK!!

“I was reading in the Home News Tribune that the $200 million State Department of Transportation project on route 18 will be completed this fall. This new project is great for the North Brunswick, New Brunswick, and East Brunswick area because it causes better traffic flow on town roads. Rutgers University is also benefiting from this new development by adding a new interchange under Douglass Campus. I am really looking forward to its completion.”
CLICK HERE FOR MORE INFO!!

House left off North Brunswick tax rolls since early 1990s

Here's one way to avoid property taxes in New Jersey...

(Copied from MyCentralJersey.com)

House left off North Brunswick tax rolls since early 1990s

By RICHARD KHAVKINE
STAFF WRITER

A Forest Lane lot has been continuously assessed by the township as vacant land even though a sizable home was built on the parcel in or about 1991.
Township officials are combing municipal records in an attempt to determine how the home at 262 Forest could have been left off the assessment rolls. "(The house) hasn't been assessed since it was built,'' the township assessor, Diane Walker, said.While township officials initially thought that no permits of any kind, including construction permits and a certificate of occupancy, were ever issued for the home, those all turned up last week, said Michael Hritz, the township's director of community development."We've determined it did have building permits. ... It was properly inspected through the construction process, and ultimately was issued a certificate of occupancy'' in 1992, Hritz said.Hritz said the error occurred either because an appraiser failed to correctly assess the property or because the certificate of occupancy was never sent to the Tax Assessor's Office.The property owner's name is listed in Middlesex County records as Klein Development Group. According to telephone records, a Ted Klein has lived at 262 Forest since 1992. "It's not something I'm aware of,'' said a person who answered the phone at the house last month and confirmed he was Ted Klein. "It's in the business' name,'' he added before hanging up.Klein has not returned phone messages requesting further comment.The 105-foot-by-412-foot lot is assessed at $72,800. Total taxes owed on the lot in 2007, including those due to the North Brunswick school district and to Middlesex County, were $3,087, according to municipal records.The owners of a similar home, though on a smaller lot, on the quiet cul-de-sac near Church Lane owed $14,908 in taxes in 2007.Following initial inquiries by the Home News Tribune, township officials at first could not find the construction, inspection or occupancy permits and were confounded as to how the home could have remained unassessed for 16 years.But officials then realized that Forest Lane was first named Adams Lane. They searched further and found the permits filed under the Adams Lane address. The house was one of the first two lots developed on that street, Hritz said."It was really a matter of how we were searching for it,'' he said.Walker also said the missing assessment could be tied to a faulty revaluation initiated by the township in the mid 1990s. The fallout from that revaluation led to fraud charges against a New Brunswick-based appraiser, Anthony J. Billings, who later admitted to tampering with public records, turning in assessments of homes that did not exist, and reporting that he inspected houses he never visited, among other misdeeds."(Billings) skipped it over, as far as I can tell,'' said Walker, township assessor since 2002, referring to the untaxed house."It will be assessed in October,'' Walker said of the elegant, roughly, 3,600-square-foot, two-story home. ""As of that time, it will back taxed two years.''Among the things to be determined is how responsible the property owner is for back taxes, given that the required paperwork was filed with the township.Still, Mayor Francis "Mac'' Womack said the township would make a concerted attempt to recoup what it could in back taxes."We've turned it over to authorities to make sure we can recover anything we can‚.‚.‚.‚by law,'' either by way of damages or fines, Womack said. ""We're going to do everything that we can legally.''The township attorney, Ronald Gordon, could not be reached for comment.Womack said that while few details about the matter could be gathered so far, township authorities are looking into whether it is a unique instance. "When we hand it over to the investigative authorities, there are no conditions on what, where and whom. They'll follow the trail wherever it goes,'' Womack said. "It does the raise the question: Is this an isolated situation or part of a potential larger problem, and the burden is on different departments ... to show that this is an isolated incident. We won't assume it isn't until we review our systems and make sure we have no reason to believe there's anything else out there.''All township officials with oversight at the time the house was built, including the assessor and inspection and construction personnel, are no longer with the township, Hritz said.The lack of institutional memory is hampering the township's efforts to find out how the home was never assessed, he said. "The existing professional staff has been researching this with no existing knowledge of this issue,'' Hritz said.

Open House - North Brunswick

For anyone who wants to stop by, I'll be hosting an Open House at 642 Wood Ave. in North Brunswick tomorrow (7/20/08) from 1-4 PM. It's a 3 Bedroom, 1 Bath Ranch listed at $249,900 with taxes just under $4000/year. It's in really great condition and is a wonderful alternative to living in a condo (with no maintenence fees!). See you then!

Closed! - Ken Chan, Piscataway, NJ

Ken Chan - Piscataway, NJ

Ken was looking for a home that he could both move into and expand later on. Additionally, as a medical professional in New Brunswick, he also wanted to be close by in Piscataway. After searching for a while and watching the market come down, we found him a young bi-level on a 100x200 lot with 3 bedrooms and 2 full baths. Though we hit a couple of bumps in the road, we made it through and closed July 1st.

Congratulations!

Work With the Best and Help Your Friends, Too!

Plenty of people have a friend that has their real estate license. For one reason or another, they normally wouldn't use them, whether it's because they only work part-time, don't know an area, or are inexperienced. Yet, they will still use them, because that person as a friend. They would never use them, but for fear of offending them or hurting their friendship, they will, despite believing deep down (and they'll never say it) that they might have done better with someone else.

Here's a solution for you. Be upfront, be honest, tell that person you'd like to work with Realtor A, but that you would like to get them a referral fee to help them out (usually 25-30% of the commission). Have your friend call Realtor A and refer you to them. You're now getting the best service available and your friend is getting paid for making a phone call. Not a bad deal!

North Brunswick Transit Village Update

From the Home News Tribune...

June 20, 2008
State DOT to fund $3 million study of North Brunswick Transit Village proposal

By GENE RACZ
STAFF WRITER

Proposed plans for a North Brunswick Train Station and Transit Village just got a $3 million boost from the state Department of Transportation, which will help fund a feasibility study.

The grant will be given to Middlesex County, primarily to examine ways to connect Route 130 and Route 1 in the vicinity of the station proposed for a 212-acre former Johnson & Johnson campus. In addition to a new stop along the New York to Trenton Northeast Corridor rail line, initial plans include a hotel and commercial and residential sites.

The former J&J site, including its 1.2 million square feet of building space, was purchased by North Brunswick TOD Associates, LLC, an affiliate of Garden Homes and Garden Commercial Properties, in summer 2006.

"The overall project is not one that's just good for North Brunswick, but one which would be good for the entire region and the entire state," North Brunswick Mayor Francis Womack said. "It is good that the state and the county are having the foresight to do this study not only when you look at the long-term economics for the region, but the day-to-day battle everyone has with gas prices. This is the kind of thing we need to be doing, and you can't have a Transit Village without the infrastructure.

"A study showing how much it will cost is a step in the right direction."
In a letter to Middlesex County Freeholder Director David B. Crabiel, dated May 28, state DOT Commissioner Kris Kolluri noted that the area between Route 130 and Route 1 in the proposed location "is made up of large expanses of wetlands, streams and forested areas." Kolluri added that the key for success in coming up with a viable plan will depend upon "coordination with the Department of Environmental Protection, New Jersey Transit and Amtrak."
Kolluri's letter proposed that Middlesex County assume the lead for the initial phases of the study and that in order for the DOT to fund successive phases of work, "this initial study must conclude that the project is feasible and fundable."

A new train station in North Brunswick would fill the largest gap in the New Jersey Transit System — a 14-mile stretch between the New Brunswick/Jersey Avenue stop and the Princeton Junction station.

North Brunswick has held a series of town meetings regarding the project which is conservatively estimated to cost about $100 million to complete. Womack noted that NJ Transit has plans to install a loop for trains to turn around just south of the proposed station.

"We do know that the bigger picture is that in terms of the state of New Jersey and the towns, we've all got to get together and get our economic situation straightened out so that the Department of Transportation will have money to give us so we can actually have these things that we need."

It's a Matter of Trust

I often run into people who don't trust Realtors. Sometimes, I can understand why. They feel that agents simply want to sell them something, and will do anything to get them to, whether it's bending the truth to outright deception. Instead of real service, it's all about getting paid, and once they're locked into a contract, it's all downhill from there. It certainly is a challenge building trust in this kind of environment.

Of course, then you have NAR making a drastic mistake on numbers in NJ, which doesn't help. (I believe them when they say it's an honest mistake, but for the skeptics, it only fuels the fire... Like any professional, whether contractors, attorneys, mechanics, you name it, there are always those you can trust and those you can't. Trust can be earned, but I know it's a challenge.

NAR owns up

Star Ledger, June 14, 2008 -

"When the National Association of Realtors issued its first-quarter report on the health of the housing market last month, New Jersey was singled out as one of only three states that saw the volume of home sales increase during the first three months of the year.

On Friday, the Realtors' group issued a huge correction, saying that instead of a slight increase, New Jersey's housing market actually saw a 30 percent drop in home sales during the first quarter compared with the same period last year. "It happened in the crunching of the numbers," said NAR spokesman Lucien Salvant. "It was just a mistake and we owned up to it."

As it turns out, only 114,100 homes were sold across the state during the first quarter - nearly a third less than the 163,000 sales recorded in the first three months of 2007. "

Local Market Update

Well, if you were waiting for the best time to buy a home, you may have just missed it. Prices have come down 10-20%, and rates have been at historical lows, where you could get a fixed rate mortgage for under 6%, perhaps even less than 5.75%. In the last week or so, rates have been moved up to 6.5%, perhaps more. So, while you may be buying a house for less than a year ago, your monthly payment may be very similar.

The good news is that rates are still at historic lows and the local market prices seem to be stablizing (especially Renaissance in North Brunswick - man, its hot!), so all is not lost. However, with rising inflation, I'm not sure how much longer the rates will stay where they are before they go up again.

From the Desk of Gloria...

REAL ESTATE UPDATE 2008

Gloria Zastko and Andrew Zastko,
co-owners of Gloria Zastko, Realtors®
feel that a message was heard…
"The lowest interest rates in over 40
years, stabilized prices, a great
selection of inventory, mega tax
advantages and, of course, historically
proven evidence that the best long
term investment is real estate.
The first 5 months of 2008 prove that
"Affordabillity" in both pricing and
interest rates is the keynote to the
American Dream." The Zastko firm
reported its best May since 2005 and
feels this is a good sign pointing
towards stabilization in the real estate
market. The firm posted over 50 sales
transactions, not including new listings
taken for the month.
Zastko feels, "Barring any unforeseen
obstacles, and if interest rates remain
low and prices remain stable, the
remainder of 2008 should maintain
the status quo," further advising,
"Act now or wish you had!"
Gloria Zastko, founder and a 37-year
veteran in New Jersey Real Estate
cites, "At Gloria Zastko, Realtors®
we don’t just list homes, we sell them.
We know the market, tell the truth,
work hard, work smart and deliver
beyond our client’s expectations".
The firm enjoys a solid reputation in
Central Jersey. The firm is open
seven days a week and is located
on the Route 130 corridor in the
Farrington Plaza in North Brunswick.
It’s web site, www.zastko.com prides
itself as "Everything you want to know
about Real Estate." To reach the firm,
email gloria@zastko.com or call
732-297-0600.

NEW JERSEY DEFIES NATIONAL HOUSING TRENDS: HOME SALES UP 4 PERCENT

NJAR Press Release - May 13, 2008

(Edison, NJ) Sales volume of existing single-family homes, condominiums and co-ops in the first quarter of 2008 increased 4 percent from the same period last year, indicating New Jersey continues to defy national real estate trends. According to statistics released by the NATIONAL ASSOCIATION OF REALTORS® (NAR) today, New Jersey's seasonally adjusted annual rate of home sales equaled 169,600.

"Unlike most of the nation, the New Jersey housing market remains stable," said 2008 NJAR® President Drew Fishman, CRS. "Nationally, total sales for single family homes, condominiums and co-ops dropped by 22 percent from the previous year, while New Jersey was one of three states to show an increase. This is just further evidence that New Jersey does not follow national real estate trends."

(For the entire article, click below)

http://www.njar.com/pressroom/releases/2008/051308.html

Featured Home of the Week

This 5 Bedroom, 2 Full Bath Home in North Brunswick just finished getting a complete makeover and is now available! I don't have all the Before and After photos yet, but this should wet your appetite a little bit. It's currently being offered at $319,900, which is a steal at that price! (I don't know where else in North Brunswick you'll find a Remodeled 5 bedroom home at that price.) I'll be doing an Open House there this Sunday, 5/18, 1-4 PM. Feel free to stop by!

How to Pick a Realtor - Disclaimer

I'm biased. I'll put it out there. I have an opinion, and I'm a Realtor, so I'm biased, but that's ok. I think most people realize that anyway.

When I first started the home buying process (before becoming a Realtor), I had no idea what the process involved, so I asked someone I knew who was a Realtor, who referred me. I didn't know if she was good or not, or even how to tell. In the end, we felt she was pushy and didn't represent our interests well. The following year, we started again, using someone different we knew from our church. He did a good job for us, and we ended up using him for several transactions. However, once again, we didn't even know how to evaluate.

Wouldn't it make sense, though, that if you're making what could be consider the most significant investment of your life, that you'd get the best person available to help you? Similarly, when it comes time to sell your home, shouldn't you use the person whom you can trust to do the best job in selling your home?

I could be wrong, but I don't think people realize there's a difference between Realtors. They figure that everyone is the same. However, as someone on the inside, I can tell you it's far from the truth.

The Inside Scoop #1

People fall for these. Usually, it's because they don't know any better. So, like the magician who tells all the secrets about his illusions, I'm letting everyone know. Why? I figure people appreciate honesty and integrity, rather than being dooped into something.

Recently, I heard that there are Realtors in Central Jersey who are asking for 6% commission, with 3.5% to them as the listing broker and 2.5% to the Buyers end. (FYI - All commissions in the state of NJ are negotiable. There is no such thing as a standard commission.) The reasoning is to get you to believe that with all those listings out there, their company will push yours more, since you're paying more. Hogwash!

The reality is that whether you pay 2.5% or 3.5%, the listing agent and their company are pushing your listing just as hard. Simple reason is that no matter what the commission, they want to get your home sold. So, they will use every means possible. For example, for Open Houses in the newspaper, are they somehow calling extra attention to homes with higher commission? Absolutely not! How about the Internet? Are they doing anything special for the 3.5% home they aren't for the 2.5% home? I doubt it. In fact, I'd be curious to hear what they'd say if you flipped it on them and asked if they would perform worse for you if you gave them 2.5% instead of 3.5%.

So, all this being said, if an agent and their agency is worth it, you should pay them what is fair. However, don't be tricked into believing that paying them more will somehow get your home sold faster. It just ain't so.

Dual Agency in NJ - Right or Wrong???

I recently read through a post on Trulia where a seller asked about the pro's and con's of a dual agency agreement. For those who are unaware, in NJ, agents can act in four different ways, depending on who they are advocates for. Principally, people will function as Buyer's agents or Seller's agents, meaning that while they will treat all others fairly, they are working for the best results for whom they represent. In some cases, agents will function as Dual Agents, which means that their real estate agency represents both the buyer and seller. Sometimes, it will be one agent, but most often, it will be two who both happen to work for the same agency. This is legal in the state of NJ as long as there is disclosure and written consent. What ends up happening is that the agent(s) cannot disclosre confidential information that might be helpful to the other party, usually in negotiations. In the end of the day, the agent(s) ends up functioning as a facilitator or mediator.

There seems to be a growing debate on this topic. I may be wrong, be personally, while it's not ideal, I feel it's the best option out there. Granted, you won't get the same kind of representation as you would from a Buyer's or Seller's agent working solely for you. However, without dual agency, losing an agent entirely means you've lost someone whom you've potentially grown to trust, connect with, and perhaps even given confidential information to. More so, that agent may be obligated to use that information against you, because they now represent the other side! (How's that for messed up?)

Is it ideal? No. However, I don't have any better ideas. Anyone else?

Why I Love What I Do!

I've been out about several times during the past two weeks, trying to find a first home for a couple who's rental house is about to be sold out from under them. Tonight, we may have found the one! Somehow, you can just see the excitement in their eyes as they go from room to room, checking everything out, planning where their furniture is going to go, talking about who they're going to have over first. Sometimes, the hours are late and long, but on nights like these, it's absolutely worth it.

Coolest Wine Bottle Ever!

Last week, a client of mine brought me a great thank you gift for helping him find a rental. Check it out! It's a Meeker Merlot 2004. I have no idea who thought of this, but this is so cool! You've got hundreds, if not thousands of possible wines to choose from, and perhaps there are others that are a better tasting wine (I haven't opened the bottle, so I'm not really sure...), but the bottle itself truly is a novelty. Perhaps I'll never drink it and just keep it around to show friends. (Maybe free advertising was the intent...)

Thanks Gill!

North Brunswick Transit Village in the Works

Attended a meeting Wednesday evening surrounding the planned development of the old Johnson and Johnson site off of Rt. 1 across from Aaron Rd. Check out the details at http://ourtowncenter.info/. In short, the plan is to create a community around a train station on this site. Personally, I think it's a great idea for the town as a whole. With the rise of gas prices and congestion in NJ, you'll have an entire community within walking distance to a train station (and probably buses too). They are also planning to preserve a lot of existing open land around the community as well. Finally, it shouldn't be a burden on the school system, because you'll mostly have young professionals in the area, rather than families with several children, who would probably prefer a single family home. It means more tax dollars from homes that don't require public education, which is definitely a win in the area of property taxes!