Real Estate Market Stats for Millburn & Short Hills, NJ in 2011

by Karen Eastman Bigos on January 24, 2012

For over 27 years I have been listing, selling and renting homes and condos in my hometown of Millburn, NJ and each year my company, Towne Realty Group, compiles the monthly stats on what is happening in the market. Millburn Township also includes Short Hills, NJ which comprises the larger and more expensive homes in the community. While both towns have a separate zip code, train station, post office and distinctly unique neighborhoods, They share the Town Hall, government, tax rate, school system and are all mixed together as one township in the Garden State Multiple Listings known as Town 1612.

Here is what has happened in the last year for both towns. As you will see. Prices are down, inventory is down, but for 2012, I predict that demand is UP because the commute to Manhattan and the Millburn public schools are still among the best in the state and prices are still very high, incomparison to many neighboring or nearby communities. We are also seeing a spike in our Sunday open house activity, an increase in our Internet leads across many high traffic real estate websites and the first two weeks of January we had contracts and multiple offers on many local properties. In fact, a brand new listing in Short Hills for $1,150,000 at 173 Tennyson Drive, garnered 11 offers in less than a week.

Millburn NJ Real Estate Stats for 2011

The Millburn Market had fewer homes for sale and this chart breaks down the new listings coming on the market in each month, as well as the average list price (which dropped from January 2011 to December 2011), the average days on the market, the list price to sale price (although this does not include what the original list price may have been and a number of properties were reduced in price before they sold). This shows the number of closings by month ( a total of 75 homes for the year) and you can see that the market dropped significantly as we suffered setbacks from Hurricane Irene at the end of August.  One thing is clear, the inventory built up towards the end of the year, the prices dropped (possibly because of an early and debilitating snow storm in late October) and prices were the highest with the most trades in the spring and lots of closings in summer, starting with the end of the school year in June.

 

Short Hills, NJ Real Estate Stats for 2011

The market in Short Hills, with much higher prices and a larger volume of inventory overall, followed similar patterns in many of the categories. The most expensive homes (over $2,ooo,ooo) came out in the spring market and the bulk of the closings took place largely over the summer months. In January the average list price was just over $1,300,000 and by the end of the year that number had dropped to $1,182,571. A similar pattern was established from the average closed prices as January started out at approximately $1,286,000 and by December the average closed price dropped to $1,218,000. From July to the end of the year there were only 2 closings at $2mm and over. The luxury market completely dropped off and there was a direct correlation to a slow down in the month of November, following the damage of the freak snow storm on October 30th. November was not a good month in comparison to other years.

 
To view the active multiple listings in Millburn, Short Hills or any of the local communities in the Garden State Multiple Listing Service, just visit our website. We also have many exclusive listings coming to the market and we track all of the new construction, tear downs and sales and listings in every price range and neighborhood.
 

Our sold signs are all over TOWNE

For an update on the market in your neighborhood, call us and we will be happy to consult with you. 973-376-8300. With the mild winter in 2012, the market has been very active with many buyers trying to buy early and take advantage of low interest rates.

 

{ 0 comments }

 

A New Year - Some New Ideas

 

Looking back on 2011, it was a very tough year in Residential Real Estate in my hometown of Millburn and Short Hills, NJ, there were many factors that made it harder than ever to sell or buy a home. Some obstacles are out of my control (like the behavior of the buyers, Realtors, lawyers, extreme weather, lenders and appraisers) but others can be avoided and for the New Year, I’m turning over a new leaf and keeping my eyes open on what can, and will go awry.

Don’t get me wrong; I’m not afraid of hard work, in fact, I enjoy challenges and I actually derive a lot of satisfaction from throwing myself into difficult projects and conquering them. Since I opened Towne Realty Group in 2006, I have to commited to working hundreds of hours of labor without pay (which is exactly what Real Estate agents do every day.) I don’t get paid one dime until after a closing, the first month’s rent is paid, or passing of title. Even better, I usually spend thousands of dollars of my own funds to promote a property (with floor plans, photos, brochures, web postings, videos, postcard mailings, ads in local papers, open house luncheons and other expenses) for weeks, months and even years, without ever getting paid; that’s right, I lay out the money, work for free and earn nothing, sometimes for over a year, until a buyer is found and the closing has passed.

Starting with sellers – there are some things must be addressed.

1.  Are the mortgage and taxes current? (These days, I don’t always get the truth so I need to conduct my own mini title search to be sure.)
2.  Is there enough equity to sell the house for less than the ‘dream’ price and still pay closing costs and commissions?
3.  Does this person/family need to move or is this just a passing fancy, if the price is right? How strong is the motivation?
4.  Can the seller afford to buy if they don’t sell first? Should I be running out to show this prospect homes if the sale of their own home is the only way they can qualify as a purchaser?
5.  If this seller is also a buyer: Have they spoken to mortgage lender or a bank to have credit checked and get pre-approved for a loan? With banks tightening up their lending requirements, if a credit score dips below 700, that alone can kill a deal. 

6.  Can the seller say out load: “I know I may need to sell for what I paid or less than what I paid for this house, and I can live with that.” If those words cannot be uttered, this could be a dead end. 

Knowing what the clients have paid and invested, and understanding their expectations of what they will net, is critical to the process of listing, selling and getting to a closing.  If a seller is moving into rental, rather than buying another home, this becomes less important, but they still need to have decent credit or enough cash to get into a rental. Landlords often require credit checks with decent scores or several months of rent paid up front, if there is a problem with the tenant’s financial history.

One of the things that takes the most time is going over the seller disclosures and understanding the history of the house and the land.

IS THERE A SURVEY? I will look for a copy of the survey and really push them to find it in their papers, the safety deposit box or with the last attorney or agent who assisted them in a closing or refinance. In some cases, I have requested that they get a new one. It can cost up to $1,000, but not having a survey has caused delays and it can force a seller to leave money on the table.

Easements, boundary disputes, and tax records with incorrect lot sizes and acreage can be instant deal killers. If the land is measured incorrectly, it can also impact the tax assessments and create a higher and unfair property tax.

In 2012, I will be reviewing the old sold and expired listings, making sure the lot size adds up and doing my own math on the measurements. I was shocked to find that the municipal and multiple listing tax records were wrong on many properties. Lots sizes were off by as much as a QUARTER OF AN ACRE on one lot I examined. It is easy to calculate the lot size of a basic square or rectangular lot, but irregular shaped lots need to be evaluated by a qualified surveyor or architect so the acreage is listed accurately. A lot that is listed too small or one which has the size is overstated, is sure to have financial repercussions later.

Many disclosure items are obvious to the naked eye. I don’t need to interview a home inspector to see that a driveway is cracking, the front steps are deteriorating, the paint is peeling or that there has been water in the basement. What I can’t see is what is happening inside the chimney, whether there are hidden termites, if there is high radon level or whether an oil tank has leaked deep into the soil.

Even with all the proper papers showing an underground storage tank was abandoned properly, or a tank scan showing that there is no buried tank on the property from the previous owner, I can no longer trust those records and feel safe. Several of our listings in 2011 had serious problems with tanks that had long ago been emptied and filled with sand. If someone wants to hire me to list his house, the tank must come out first. If they do not agree, I will not move forward with the listing.  

This is my New Year’s Resolution: Remove that empty, abandoned tank, or I  will not accept the listing. Too many months and hours of my life have been spent arguing and discussing what I knew from the start – the tank must come out. We maintain a list of companies that will scan, dig, clean, and/or remove tanks. 

When was the last time someone poked his head inside that little trap door that leads to the attic? My last listing that had one of those hard-to-reach-attics that required a ladder to gain access through a small closet. The mold was so thick, that all new roof sheathing was required (meaning a new roof) and expensive mold remediation plan was needed to the tune of over $45,000.

NEVER AGAIN will I take a listing and not have someone qualified to peek into that crawl space in the attic and also the basement!  

A pre-listing home inspection is critical for sellers who have been in their homes for several years. Let’s just say I don’t like surprises. When it comes to selling a home, I call the building department and find out if there are open permits. I don’t want to find out later, that something easy can be resolved before I get started. Some open permits might actually trigger a tax increase or make it impossible for a seller to appeal his taxes.

Here are some other deal savers that I will be working on for 2012:

1.  Does the sump pump have a back up battery? If not, get one installed or consider a generator. In a year when Hurricane Irene and a freak autumn snow storm cut off power and gas for over week, twice within 2 months, many typically dry basements, took water. 

2.  Have you had any issues with your neighbors? On either side, behind you and across the street. I want to know about this up front so when the buyers are talking to the man raking the leaves, we don’t get a charming anecdote that can kill the deal.

3.  What insurance claims have you made on your home? Sometimes too many claims will be recorded on a particular home and make a house harder to insure, as if it has a pre-existing condition.

4.  Knowing some of the answers to feng shui questions up front can also help. Since approximately 40% of our buyers are foreign born, the direction of the house, the way the stove faces and the energy or karma of the house can be vital to the deal.

5.  Can you and should you get flood insurance? It can’t hurt to review the flood maps in any area and make sure that this property is or is NOT in a flood plain or zone.

As always, there are no guarantees that following these steps will make things easier. In fact, all of these recommendations take extra time, money, patience and may just end the notion of moving forward, but at least I will have the satisfaction of knowing that I did my homework and came into the transaction fully prepared. If you have questions about any of these points, please give me a call at 201.417. 1600.

Karen Bigos - Broker/Owner of Towne Realty Group in Short Hills, NJ

 
Karen Bigos has been listing and selling homes in her hometown of Short Hills, NJ for almost 30 years. She worked at Weichert Realtors and Burgdorff Realtors for over 22 years before opening her own Real Estate Boutique. Having closed on over 800 homes and condos in her career, Karen is a local expert with a great team. Working together with 25 full-time and only experienced agents, this group of local pros has amassed almost $500 million in sales since we opened our doors (starting with just 4 sales associates) less than 6 years ago. If you are thinking of making a move any time soon, why not let Towne help you find your way home?
 
Oh yes, and Happy New Year!

{ 0 comments }

Towne Realty Group partners with Jersey Cares on a Coat Drive

by Karen Eastman Bigos December 14, 2011 Community

Always eager to get involved in the community, the agents and employees of Towne Realty Group’s Short Hills, NJ office,  are collecting gently used coats to contribute to the Jersey Cares Coat Drive.  We are asking friends, neighbors and clients to look through your closets and see if you can find just one coat to [...]

Read the full article →

Staying Safe during the holiday season in Short Hills, NJ

by Karen Eastman Bigos December 6, 2011 Community

The holidays are a busy time and as everyone rushes around trying to get a million things done;  we let our guards down. Buying gifts, decorating homes and offices, planning parties, booking travel arrangemens and often out shopping and dining after dark, can be dangerous.  Millions of people come to Short Hills, NJ to visit our [...]

Read the full article →

Towne Realty Group creates a Millburn, NJ R.E. (Real Estate) Advent Calendar

by Karen Eastman Bigos December 2, 2011 Arts

R.E. (Real Estate) Advent in Millburn, NJ - What’s it all about anyway?  I don’t really know since I celebrate Hannukah, but my friend Stephanie Mallios and I are looking for ways to bring lots of attention to my hometown for holiday shopping.   Watch my video and come follow me as I figure it out! http://www.trghome.com/towne_realty_video13.asp   Downtown Millburn, NJ [...]

Read the full article →

Over 200 Residential Homes Sold in Maplewood NJ for first 3 quarters of 2011

by Karen Eastman Bigos October 26, 2011 Maplewood Village

From January – September of this year, 203 residential (single family) homes sold in Maplewood, NJ. The first 6 months of the year recorded 116 residential homes selling at an average sales price of $487,353 and 7 multi-family (2-4 family) homes sold at an average sales price of $326,771. Of the 116 residential homes that sold, [...]

Read the full article →

McCloone’s Boathouse Restaurant Opens in West Orange, NJ

by Karen Eastman Bigos October 23, 2011 West Orange

  McLoone’s Boathouse up close – what a handsome building October 21, 2011 is a day that many residents of North Jersey have been waiting for; the grand opening of a new and breathtaking restaurant called McLoone’s Boathouse, one in a chain with seven famous locations down at the Jersey shore and one in Maryland. Sitting [...]

Read the full article →

Selling your home is like dating

by Karen Eastman Bigos October 13, 2011 Helpful Hints in Selling Your Home

I’m sure there are people who can tell you they fell in love and got married after the first date. There are no studies on how many of those couples are still together and happily married, but it is rare when someone buys the first house they see after the initial visit.  The whole process of finding [...]

Read the full article →

Millburn NJ Street Fair – Come join the fun! Like the Chamber page & win $100 gift check!

by Karen Eastman Bigos October 2, 2011 Arts

Every autumn for over twenty years, The Millburn-Short Hills Chamber of Commerce sponsors a day of fun and games for the entire family to enjoy our wonderful shopping district.  The police close off part of Downtown Millburn, on Millburn Avenue to hold a street fair with artists, a food court, face painting booths, stationary pony rides and over 150 exhibitors who reserve [...]

Read the full article →

Roosters MGC Opens In Summit, NJ

by Karen Eastman Bigos September 20, 2011 Summit

It’s Official: The ribbon cutting ceremony and Grand Opening at Roosters MGC is Tuesday, September 20th from 5:30 to 7:30. A fun-filled event is planned as locals in Summit, NJ, along with Mayor Jordan Glatt and many friends and family of franchise owner Jody Frank, will appear to check out the newest store in the shopping strip at 545 Morris Avenue, near [...]

Read the full article →