Archive for November, 2009

I regularly recommend the seller to purchase a home warranty when they list their property if their home is over ten years old.  The cost is minimal compared to the cost of replacing mechanicals, plumbing repairs, appliances, etc.  The home warranty covers the seller until closing as well then it is passed on to the buyer for one year.  The buyer has the option to renew thereafter.  The seller does not pay for the home warranty until closing and the cost is around $425.  There is a flat fee for each service call which is about $100.

Recently however I have been hearing stories about the nightmares of getting things repaired by the home warranty companies.  There are conditions under which the home warranty will not cover the repair.  If the item has not been maintained in the past or if negligence is involved the home warranty company can decline the repair.

My personal experience has been generally positive.  I followed my own advice and purchased a home warranty when we downsized to a smaller older home about 3 years ago.  The day after we closed, one of our sump pumps stopped working.  I called the home warranty company and they replaced it the next day.  Savings of about $800.  A few months later my refrigerator that we moved from the kitchen to the garage stopped working. A lot of food was spoiled.  I called the home warranty company again.  Oops.  They do not cover garage refrigerators.  I should have left it in the kitchen!  The built in microwave went next.  Since it was too old to find repair parts the home warranty company offered me $350.  I took the check!  This was all within the first year!

Air conditioners are covered EXCEPT when chipmunks decide to nest inside and eat the wiring! I found this out the hard way — twice!

After we remodeled the kitchen with all new appliances the trash compactor stopped working right after the warranty on it ran out after one year.  This time the home warranty company had to send the repair technician to my house three times before they replaced the entire motor.

I think the positives far out weigh the negatives and I for one am glad to have this home warranty and plan on renewing every year.  Just remember to read the fine print!

Remember, Fridays are for fun.  Blogging isn’t always about Real Estate.  And I don’t want anyone to expect a clever story that ties my rescue cat to real estate … or does it?

Pets are amazing.  You can tell a lot about a person by their pet. Some people search the Internet for months analyzing which dog or cat would be the perfect pet for their family.  Some people go to the infamous pet stores that sell the ones that always turn out to have one infliction or another. Other people often just “find” a stray that has been hanging around. Then there’s me who having grown up with animals my whole life decided to adopt a “rescue” cat from one of those adoptive agencies that display the cats at Pet Smart.

I wasn’t planning on getting another cat after my beloved William passed away suddenly just before Christmas a couple of years ago.  He was the best cat I ever had.  We had conversations.  I talked to a pet psychic about him.  He understood me and was a real companion.  When we downsized to our current home I had him in mind thinking he could watch all the birds and squirrels he wanted from every room with the large windows all on one level. But, he didn’t make it. I thought I would never get over that loss.

But I was lonely and missed having a pet.

Then, several months later, we were just going to stop by the store to see what they had and I met Carrie.  Carrie looks just like William and I had never had a female cat before.  Carrie came with history and they said she was 7 years old.  She was literally a “fraidy cat” and not very friendly. She had lived so long in a cage that her little legs could hardly walk. Oh and did I mention someone had removed all her claws on all four paws?

I decided I was up for the challenge and going to make a difference in her life. 

A week later she was hiding under my couch (did you know they can even get under there) and wouldn’t come out.  Oh, they told me she had a “slight bladder infection”.  Right.   As if the trauma of a new home wasn’t enough I took her to the vet for a check up right away. They wanted her to have physical therapy for her legs but I said I would take care of that.  Long story short and $3,000 later she had major surgery to remove a severely infected portion of her bladder and was sent home with a morphine patch that she was not supposed to touch.  So they put on one of those “cones” like they put on dogs.  One minute later as she was trying to get under the couch it broke open.  What to do to save this precious little thing the vet now calls my miracle kitty!  Ah ha!  Onesie!  (For those of you that don’t know what a onesie is as a new mother).  One of those little T-shirt thingys with snaps. After the initial hurdle of her taking them off in a record 10 seconds and realizing they weren’t that bad she conceded.   Carrie now had onesies for every day of the week.  Babies r Us was having a sale.  She had white, pink, yellow and assorted tie dye ones.  They said “BUG”, “Princess” and “Angel”.  Carrie now became “Carrie Angel”.

Her previous foster homes did not treat her very well and her history showed she was over 18 pounds at one point and needed to be shaved because she has long hair that was severely knotted.  After the recovery from the surgery and the fact that I didn’t know where she had been we decided she needed a bath.  How fun that is!  I think I was wetter than she was and thank goodness I could close off the kitchen while we sprayed water everywhere.  I did this BEFORE the kitchen remodel! Cats can really howl when they want to!  But she was clean and dry and smelled like strawberries.

Today Carrie Angel is a trimmed down 12 – 13 pounder (depending on how many Greenies she gets).  We throw the Greenies and she runs (okay actually waddles) to get them thereby getting her exercise.  She has beautiful coat that we brush and comb every evening ( for a treat of course). She is still skittish and hides (especially from the vacuum) but I make a “cave” on our bed with the throw pillows and she likes it there. Her food dispenses from a “timed” food dish and she is healthy and more friendly. She has a favorite “perch” on the couch overlooking the yard and the birds and the squirrels.  I don’t think she ever had a real cat’s life before and she looks at them in wonder or maybe boredom.  She won’t get on my lap but the last couple of days she has gotten on the bed and slept next to my knees.  This gives me great comfort that she may be happier here and has finally found the perfect home.

As you all know, New Jersey Real Estate has declined in value just like every other real estate market in the nation.

As fall appears here are some observations about Real Estate in Basking Ridge and surrounding areas:

RENTALS

The price of rentals of condominiums and townhouses have fallen approximately 18% in the last 3 years.

Vacancies are abundant and most landlords are offering various types of incentives in order to get their units rented.  Where it once was common for the tenant to pay the commission fee, today most rentals offer a split of the fee between landlord and tenant or in some cases the landlord is paying the fee.

In some cases there is room for negotiation on the rental price.  Although I just had an experience where my client put an offer on a rental and there turned out to be multiple offers.  We “won” the rental by offering over asking price and my tenant offered to pay a portion of the fee (where the landlord was offering to pay the entire fee) and then he also offered to make cosmetic improvements to the  unit.  So we can get creative even in this market.

Job loss, minimal hiring and high unemployment rate are fueling the decline in the rental market.  In addition to this with the first time home buyer credit, many renters are buying.  When you think of it, the month security, first month’s rent and the fee add up to quite a some of money and the tenant might just as well buy something.

If you or anyone you know  has a question about the current rental market please let me know! Not all realtors like to do rentals because the paperwork involved is as much a selling a home and the income earned is minimal.  I love rentals!  I have everything on line and down to a science!  And everything is doable via email for out of town investor rentals!

SALES

Sales in our area have fallen approximately 17% in the last 3 years.  In the single family home market you will notice your assessments have decreased this year.  Homes are selling at or around assessed value.  Obviously there are exceptions to this.

Condominiums and townhomes are holding their value better than single family homes with the lower 20% of the market selling faster due to the First Time Home Buyer Tax Incentive. This in turn will allow those homeowners to move up to the next level and eventually our market will recover.

Right now product is abundant with many vacancies.  Homes are on the market an average of 6 months or more.

Mortgages are very difficult to obtain.  Great  credit is key.

The good news is that the market has picked up in the last several months with homes and condos that are priced right selling very fast – some with multiple offers!

If you or anyone you know is looking for market expertise or have any questions about the real estate buying or selling process please let me know!