Lower Township Fire Inspections Due

Don’t delay and risk a fine!  If your rental home is located in Lower Township, make an appointment to get your inspection done today. 

The following notice was recently received by our rental team for properties located in the Township of Lower.  All weekly rental properties must be registered and pass fire inspection prior to June 1, 2011.  A mercantile license is also required for each property. 

  

Our rental team can assist you with both of these requirements for a handling fee of $50.00.  To take advantage of this offer please contact our rental team today! 

  

If you choose to complete these on your own, please provide our office with a copy of both the fire certification and the mercantile license so we may keep them on file.

Investment Property – How Did I Do?

   Since I have just sent all my tax information to my accountant,  I thought it would be a good opportunity to review the first year on my investment property and see if I made any money.  Of course, the numbers are a little off because we did not finish the house until the last week  of July 2010.  That means no income until July 24, 2010, when our first weekly tenant moved in.  That being said, my partners and I are happy with the results.

We took in $22,500 in rental income.

Our expense were:

• Account/Legal $1,000
• Advertising $175.00
• Cable $915
• Cleaning $750.00
• Merc/Dues $225
• Lawn $200
• Taxes $3,500
• Trash $300
• Utilities $2000
• Insurance $1000
• Total $10,065.00

That means there was a profit of $12,435.00.  That profit was split between 14 share, so each share earned $890.00.  That was only a return of .0178.  Not the profit I was hoping for, but, everything is paid for and this year we will have a full year of rentals. 

   These numbers do not include the two trips to Urgent Care for my girlfriend and I for treatment of the WORST poison ivy I have ever experienced in my life.

   I am sharing these numbers because I feel it is important for anyone thinking about investing or buying a second home that the payoff is LONG term, and it is not a sure thing.  When deciding whether or not to purchase a second home, be prepared for unexpected expenses and do not buy if you are totally relying on the rental income to cover your expenses. 

   But, if you are prepared, there has never been a better time to enter the market.  Inventory is high, prices and interest rates are low.  I am doing everything I can to encourage qualified Buyers to jump in now.

TRUE TRAVEL TALES-HOW TRAVEL GUARD CAN PROTECT YOU

A Cozumel Christmas Cancellation

 Paul and Nancy L of Commerce, Michigan had their big winter family vacation all planned.  Their destination?  Cozumel, Mexico where they had planned several scuba diving excursions and their children had planned to swim with the dolphins. 

 Then, it happened.  The day that they were supposed to depart, sever winter weather hit, and their flight was cancelled.  Because of the severity of the storm, the best the airlines could offer was to re-route them on a flight that would depart 36 hours later which would mean the family would have to spend a night in Cincinnati, and a night in Atlanta at their expense, before leaving for Cozumel.

 “We would have arrived 3 days late for our 7 day vacation,” said Paul.  “Obviously not worth going through with.”

 As you might imagine, having their long-awaited tropical trip cancelled on the day of departure was devastating for the family.

 “The only thing that kept us from going off the deep end of despair was the knowledge that we had a travel insurance plan through Travel Guard,” said Paul.

 With a simple call to Travel Guard, Paul and Nancy were able to set things in motion to be completely reimbursed for the non-refundable parts of their winter trip.  Within a short amount of time, the couple had the full reimbursement in their hands.

 “The claim process was very clear and uncomplicated,” exclaimed Paul.  “We received a check for $5125 which covered every non-refundable expense we had incurred and each person I spoke with at Travel Guard was understanding and helpful.  The service they provided has earned them a lifetime customer.  We had never before purchased trip insurance.  Now I can say we will never again plan a trip without trip insurance.”

BE PREPARED TO SELL by Dagmer Chew

January is coming to an end and the spring is just around the corner. NOW is the time to start preparing your home for the spring market. That’s right preparing your home which entails the following list of tasks. Even if you complete the entire list below but you do not combine your efforts with the right price you will be sitting a very long time on the market. If you do not choose to listen to your Realtor by staging the home and pricing your home to sell then don’t be mad or disappointed 6 months to a year later when your home has not sold. Preparing your home to sell and choosing the right professional to guide you through the process is more important than ever before.
1. De-Clutter every room.
2. Clean a SUPER DUPER cleaning – better than your best spring cleaning.
3. Clean the kitchen every inch. Remove everything off the counters with the exception of the coffee maker only. That’s right everything off the counters. Remove any and all pictures or magnets on the outside of the refrigerator door. If your appliances are avocado green or mustard yellows it is time to replace them. You would be surprised the price difference you will receive if you replace the out dated Formica counters with granite. If the flooring is outdated it is time to replace that as well.
4. First impressions are lasting. Your front door MUST be shiny clean and freshly painted or replaced. A beautiful welcome mat and a fresh pot of pansies alongside the doorway or leading up the walkway. Replace the broken down mailbox with something fresh new and clean.
5. Curb appeal is so……..important. If I drive up with clients to the front of your home often times they will say no……just drive on we are not interested. The potential buyer needs to be excited from the moment they pull up out front. A brand new American Flag flying high and a nicely manicured lawn and manicured shrubs is imperative. NO junk in the yard, NONE!!
6. Beds Made – that’s right everyday make your bed and if the bedspreads are old and worn out a trip to the linen outlet is a must.
7. Clean the Carpets – shampoo the rugs and clean and polish the hardwood floors. If the rugs are stretched out call a professional to fix them. Replace the carpet if necessary.
8. Prepare to Move by boxing up the extras and begin to store things in the attic or in a storage unit off premises. It is important that you make the home warm and inviting but devoid of clutter and collectables. If you are starting to pack now it won’t be as overwhelming once the house is sold.
9. Bathrooms need to shine like a new penny. All new shower curtains and rugs are imperative! Add new modern fixtures and lighting to give your bathrooms a bright new appearance. New faucets and lights from Lowes or Home Depot are affordable and imperative to get your home sold quickly.
10. Lighting and lighting fixtures throughout your home need to be updated and or shining clean. If they are outdated, replace. Lighting should be bright and welcoming.
11. Curtains and Drapes need to be clean and less is best. Open up the house with lots of light shining in. A most often complaint from buyers is not enough light, too dark. Brighten up the house let the light shine in!!
12. Animal smells – this can be highly offensive to potential purchasers. Put the kitty litter away out of sight out of mind. Animal bowls, toys and cages out of sight. Do you want to sell your home? Then listen to your professional. Animals are often a huge turnoff. Clean up the yard; doggie diamonds must be removed daily. Have the animals out of the house for your showings. Some buyers will not even go past the front door if an animal is on the premises. Put your pets in the car and take them for a drive while the house is being shown.
13. Do not be home during a showing. I know you think that you will be able to assist in the showing of your home because you know it best but a good professional will insist that you not be home during showings. Buyers need to feel comfortable and need to be able to picture themselves in your house. They need to make an emotional connection without the owner following them from room to room. I just recently purchased a new home in Florida and the owner literally led the way from room to room standing in the doorway of each room pointing out its every feature. He talked to us from the moment we entered to the moment we left. We were never able to really get a good look. My Realtor even started to body block him and tried to keep him distracted in order for us to get a moment in peace but to no avail. Since I’m in the business I knew I needed to come back a second time and this time without the owner being home. I had my realtor make that request to the Sellers’ Realtor; it was not well received by the Sellers but we insisted anyway. After our second showing without the home owner I was able to really envision myself and my things in this home. I was then able to make the decision to purchase. This well intentioned owner felt that he was insuring the sale by being home and informing his buyers of every detail. What he did not realize was that his overzealous showmanship had quite the opposite effect. That home was on the market for over a year and my suspicion is that it would have sold sooner and for perhaps a higher value had it not been for the owner showing his home for sale.
I have tried to give you as many helpful hints as possible and I can hear many of you saying oh my goodness is she kidding this is simply too much to do. I need you to know that I told you about my purchase experience but I also had to sell a home in Florida in order to purchase that new home. I listed my house in one of the toughest selling markets in the country in May only to get it sold to the very first buyer who looked. By June 10th we were at the closing table. There were four identical units for sale in our development similarly priced and unfortunately today they are all still for sale.
It was not a coincidence my home sold to a well qualified cash buyer in a timely manner. They went on to look at many homes but my house kept drawing them back. Do you want to know why? Remember the list above. That is why, because I had replaced the outdated kitchen counters, all the hardware throughout the cabinets in the kitchen and bathrooms were updated, the old wallpaper was removed and the entire house interior was freshly painted throughout. My front door was replaced; the house was decorated with warm and inviting materials indicative of a beach house, the lighting fixtures were updated throughout, my garden beds were mulched and filled with fresh plantings. I had wonderful soft music playing throughout the house and all the lamps were on in the house and lights were lit throughout. Our home was immaculate shining from head to toe and we left the house prior to the showing allowing for them to arrive in comfort and we made it as easy as possible for the Realtor. We had a lockbox on our front door allowing ease of access. Most importantly we were nowhere around allowing the potential buyers to make a true emotional connection. We staged the house allowing for the experience that every buyer wants.
Do you want to sell your home in a timely manner? The first two weeks of a showing are the most important. Price it right which means competitively. Stage your home; hire a professional. Follow my suggestions and you too can be in your new home in no time.

Christmas Time in Cape May

Cape May is not just a sand in your shoes kind of town.

Cape May offers so much more, especially during the

Holiday Season!

Come visit our beautifully decorated stores.  Stroll our vibrantly lighted streets.  Snuggle under a blanket and tour our town by horse drawn carriage.  Take a trolley tour and experience sing-song rides with Mrs. Clause or expect a visit from 3 ghost during the Ghost of Christmas Past tour. 

Don’t forget to shop!  Yummy fudge, unique jewelry, stylish clothing and much more can be found in the shops of

Cape May.  Consider gift card to one of our fabulous restaurants for someone who visits in the summer months. 

 From wine tasting to winter walks through the Washington Street Mall there is plenty to do this holiday season.

 Happy Holidays from your friends at

HomeStead Real Estate.

 For more information and details on events visit:  http://www.capemaymac.org

2010 Reflections – by Dagmer Chew

Dagmer Chew, Broker/ Owner, GRI, ABR

Finishing up the year 2010 brings my reflection on the Real Estate Market in general.  We have been on a downward spiral after an over inflated few years of what some would remember as a real estate frenzy.  Ever since the close of 2005 real estate has become more and more difficult to buy and to sell.  Being overly qualified is a necessity for those looking to purchase.  No longer available is the stated income, no doc loans that were so prevalent.  People were buying beyond their means with their hopes filled with “speculation” of the market bubble never bursting. 

Now in the end of 2010 we have seen this year prove that inventory is high and interest rates are at their all time low but buyers are still moving with great caution, as well they should.  With jobs being in question the lack there of or the fear of the unknown has made many qualified buyers sit the fence.  Many second home buyers, which is our primary market share, have the old adage we don’t “need” a home so we will just wait it out till the bottom of the market hits.  Well folks it looks like we are at the bottom and the interest rates are starting to climb so there is “No better time to buy than now and no better place to be then here”.

HomeStead offers the experienced and knowledgeable agents that you need in order to navigate your way through the more challenging days ahead.  When buying or selling Real Estate Call a HomeStead professional who will guide you through the process with professionalism and ease.

Pre-Recession Pricing

In my reading today of the Kiplinger Report my thoughts went to so many of our clients that have been effected by the most current recession and the disappointment in the current recession pricing of the housing industry. Kipplinger reports, “the sad fact is, it will take a decade to regain the pre-recession high sales of homes” “Even a return to the pre-bubble levels will take years”. This is often a hard pill to swallow but none the less a reality check for all who want to sell their homes today. When all efforts are exahusted such as staging, fresh painting inside and out, landscaping etc it more often then not comes back to pricing. The market is often unable to sustain the clients desired price. My job is to tell the client the truth and that truth is that they will need to reduce the price immediately in order to attmept to bring about a sale. Unfortunatley the market conditions have changed drastically and none of us could have predicted this. The market will only bare certain prices and I do not have any control over that factor. With the cooperation of the client in reducing the price or properly pricing from the onset we can get a well qualified buyer to purchase the home but until the price matches the market condtions we will all be simply spinning our wheels. Frustration on our part is when inexperienced or over zealous fellow realtors go in with Over inflated pricing we can not compete with that listing strategy. Our policy at HomeStead is to tell the potential client the TRUTH because the first two weeks of any new listing is the most important time to have the home priced accurately. When you or someone you know over inflates the true market value you will lose out to a REAL qualified buyer to the homes around you that are priced properly. Our Job at HomeStead is to NOT tell the client what they want to hear but tell them the truth right up front. Don’t always be fooled by high pricing stategies these will work to get you to list but it will not get your home sold in a timely manner for the highest and best TRUE market value.

Renovation Progress

     It has been a while since I have had something to blog about… but finally some progress on our rental property.

     The whole permit process took longer than expected, and the addition of new storm drains on the street really added to the problem.  It was difficult for workmen to get to the property, deliveries were at a standstill, and to deliver the dumpster for the demolition work was an engineering feat in itself.

     All that aside, the demotlition work is all but finished, and the framing of the kitchen is complete.  Unfortunately, when we went to have new windows added to the porch, the whole structure was sitting on just a few cinderblocks.  We decided that we needed to correct that situation and not just try to make it cosmetically pretty. 

     That being said, it is important for Buyers to remember that even though a property looks great, they should still spend the extra money to have a home inspection prior to buying.  Also, if the home has been recently renovated, make sure you ask your agent to get the permits.  If the Seller has done everything above-board, they will have no problem producing the necessary paperwork.

     Hopefully, things are in full swing now and we’ll be in full swing by 4th of July.

Value of the Team

Well, here it is Friday morning and I’m not in the office! Since this is one of those rare days when I am still home ( mini-working) I have the time to realize what it took for me to take this day. I certainly could not have done it without the help of other agents in the office. Most people don’t realize that besides writing contracts and listing  properties, most agents are scheduled to be in the office during certain time frames. Our office having 7 full time agents ( we only have full time sales agents) schedules our time a month in advance. This is great except when the “phone call” comes. Now this” phone call” can be many different things. Client that is coming down last minute, closing that is re-scheduled,appointments cancelled or even something on a personal note such as doctors appointment. Or it can be something like the call I had last week, you know the call, Mom, could you? Well, let me say I am happy to get those calls since my children are adults and anytime I can be with them I do my best. But in today’s life my best is really “we.” Thus the “Value of the Team.”  It takes team work to be able to rearrange my schedule. Another agent is covering my office time and if a client needs to see a property there are 5 other agents there to help. I can do more than one thing at a time but can only be in one place at a time.  In our HomeStead office we work together.  The Broker could not  give me this benefit. It comes with working with a group of good people. Well, I’m off to Belmar today to be with my daughter, the Principal. Thanks. Team!

Thumbs Up for Spring! Thumbs Down for Parking Meters…..

Well yes, we are all very happy that spring has finally sprung here in Cape May, New Jersey but the dark cloud that shadows that silver lining is that the parking meters in Cape May are also active.  Yes it is true, as of May 1, 2010 you will need to keep an abundance of quarters handy in your motor vehicle if you plan on visiting this popular shore town in the near future.  Remember most businesses cannot or will not supply you with the quarters you need so plan ahead!  Also remember that you will only get 15 minutes for every quarter.  Cape May does have some high-tech meters which allow you to pay by credit/debit card and/or cash.  These meters are mostly located near the center of town, near the Washington Street Mall and the surrounding area.  Happy parking spot hunting!