Feb 2013 market seminar

1. Weichert, Princeton Office February 2013 Market Update/ Forecast Seminar Offers analysis of the Princeton & Greater Princeton, NJ real estate markets & effective strategies to buy and sell.

2. Presented by: Joshua D Wilton Broker/ Sales Rep. Weichert Realtors Princeton, NJ (o) 609-921-1900 weichert-princeton.com facebook.com/weichertprinceton

3. 2012 NAR Home Buyer & Seller Profile

4. Agenda 1. The Market - A History - Forecast for 2012 2. Strategies for Buying 3. Strategies for Selling

5. Agenda 1. The Real Estate Market 2. (a brief history)

6. Agenda Then…

7. The boom…. Otteau.com

8. Otteau.com

9. Unsold I nventory from t he MLS in Weichert Market Areas November 2004 thru November 2010 * added Waters & Williams Region to Totals 11/ 13/ 06 11/ 12/ 07 11/ 17/ 08 11/ 15/ 04 11/ 14/ 05 11/ 16/ 09 11/ 15/ 10 84,621 88,414 84,942 31,676 41,156 77,985 92,096 25,000 20,000 Variance % 2010 to 2009 NY (Ashby) +13.11% CT (Doepper) +118.53% Passaic/Hudson/Bergen NJ (Bixon) +5.86% Western Central NJ/Lehigh Valley PA (McDonald) +6.78% 15,000 Northern and Central NJ (Prevete) +9.24% Eastern Central/Shore Points NJ (Waters) +10.63% Southern NJ (Williams) +10.87% 10,000 5,000 0 1/20/2004 2/20/2004 3/20/2004 4/20/2004 5/20/2004 6/20/2004 7/20/2004 9/20/2004 1/20/2005 2/20/2005 3/20/2005 4/20/2005 5/20/2005 6/20/2005 7/20/2005 8/20/2005 9/20/2005 1/20/2006 2/20/2006 3/20/2006 4/20/2006 5/20/2006 6/20/2006 7/20/2006 8/20/2006 9/20/2006 1/20/2007 2/20/2007 3/20/2007 4/20/2007 6/20/2007 7/20/2007 9/20/2007 1/20/2008 2/20/2008 3/20/2008 4/20/2008 5/20/2008 6/20/2008 7/20/2008 8/20/2008 9/20/2008 2/20/2009 3/20/2009 4/20/2009 5/20/2009 6/20/2009 7/20/2009 8/20/2009 9/20/2009 1/20/2010 2/20/2010 3/20/2010 8/20/2004 5/20/2007 8/20/2007 1/20/2009 4/20/2010 10/20/2003 11/20/2003 12/20/2003 10/20/2004 12/20/2004 10/20/2005 11/20/2005 12/20/2005 10/20/2006 11/20/2006 12/20/2006 10/20/2007 11/20/2007 12/20/2007 11/20/2008 12/20/2008 11/20/2009 12/20/2009 11/20/2004 10/20/2008 10/20/2009 ASHBY TOTAL DOEPPER TOTAL BIXON TOTAL MCDONALD TOTAL PREVETE TOTAL WATERS TOTAL WILLIAMS TOTAL In our local area (CT/NY/NJ Lehigh Valley, PA), the number of homes for sale (Weichert and non-Weichert listings) has steadily increased over the past four years.

10. The NJ version of the bust... Otteau.com

11. The Market Last Year…

12. 2012: State of the Market Affordability will Spur Recovery

13. Affordability Index Definition: A measure of the financial ability of US Families to buy a house. 100 means that families earning the national median income have just the amount of money needed to qualify for a mortgage on a median priced home. Higher than100 means they have more than enough. Lower than 100 means they have less than enough. Source: NAR Housing Affordability Index 1971 to 2010

14. 194.5 Nov 2011 Affordability Index

15. 2012: State of the Market Historically Low Interest Rates

16. 30 Year Fixed interest rate 3.94% Lowest in recorded history

17. How Long Will Interest Rates Remain Low? 5-6 months absorption rate indicates a normal market.

18. What will the future bring…?

19. What will the future bring…?

20. What will the future bring…? http://money.cnn.com/2011/03/15/real_estate/rent _rise_housing/index.htm

21. 2012 Better Year… 2013…

22. Fiscal Cliff Legislation ~ Good For Real Estate • Mortgage Cancellation Relief is extended for one year to January 1, 2014. • Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012. • The 10% tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012

23. Fiscal Cliff Legislation ~ Good For Real Estate • The tax exclusion for gains on the sale of a principle residence remains in effect for sellers whose income is above $450,000 (for those filing a joint return). • Continuation of Mortgage Interest deduction on Federal Income Taxes.

24. 2013 Economic Indicators GDP Growth: 2% growth in 2013, about the same as last year Interest Rates: Little or no increase in short-term rates in 2013 Inflation: Rising slightly this year, to about 2.3% Business Spending: About a 4% gain in 2013 Unemployment: Falling gradually over 2013 to around 7.5% Housing: Up 8% in 2012; helping GDP in 2013 Energy: Crude oil holding steady at $90-$95/barrel through early spring Consumer Confidence: Rising this winter.

25. NAR 2013 Projections • Affordability Index a record high in November 2012 at 194 projecting 160 for 2013. • Total Sales projecting 5.08 Million or 8.5% increase in 2013. • New Home Sales projecting 533,000 in 2013 a 46% increase. • Average Home Sales Price $185,800 or 4.2% increase in 2013. *Source: NAR News Release 12/20/12

26. Pending Home Sales 105 100 = Historically Healthy Level 100 95 November 2011 – November 2012 90 85 80 November 2010 – November 2011 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov NAR 12/2012

27. Month’s Inventory of Homes for Sale 10.0 9.0 8.0 7.0 6.0 5-6 Months = Normal Market Inventory 5.0 4.0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov NAR 12/2012

28. Absorption Rates by Region Local MLS

29. S&P Case-Shiller Home Prices 5.0% Year-over-Year Change in Prices 4.3% 4.0% 3.6% 3.0% 2.0% 2.0% 1.1% 1.0% 0.6% Jan Feb Mar Apr May 0.0% Jun Jul Aug Sep Oct -1.0% -0.5% -2.0% -1.7% -3.0% -2.5% -4.0% -3.5% -3.9% -5.0% S&P Case Shiller 12/2012

30. Projected % Change in Home Prices Source 2013 JP Morgan 9.7% Barclays 5.5% Capital Economics 5% Freddie Mac 2-3%

31. Average Annual Appreciation 12.0% 10.0% 10.4% 8.0% 6.0% 4.0% 3.6% 3.3% 2.0% 0.0% -2.0% -4.0% -5.7% -6.0% Pre-Bubble (1987-1999) Bubble (Q1 2000 - Q2 2006) Bust (Q3 2006 - Q2 2012) Expectations (2013 - 2017) Home Price Expectation Survey 12/2012

32. Mercer County ‘Supply & Demand’ Source: NAR, November 2008 Forecast

33. NJ Housing Permits In thousand units Source: Census

34. Mercer County Housing Permits 2000- 2009 Source: Census

35. Mercer County Housing Permits 2012 Single- Single- Two- Two- 3-or-4- 3-or-4- 5-or-More 5-or-More Total Family Family Family Family Family Family Family Family Mercer Units Units Value Units Value Units Value Units Value East Windsor township 27 27 5,264,144 0 0 0 0 0 0 Ewing township 85 3 2,378,118 4 4,000 3 55,000 75 6,603,330 Hamilton township 31 22 3,285,541 2 150,000 0 0 7 114,762 Hightstown borough 3 3 411,900 0 0 0 0 0 0 Hopewell borough 0 0 0 0 0 0 0 0 0 Hopewell township 68 8 3,115,896 0 0 0 0 60 5,779,000 Lawrence township 2 2 383,650 0 0 0 0 0 0 Pennington borough 0 0 0 0 0 0 0 0 0 Princeton borough 8 6 2,998,400 2 474,527 0 0 0 0 Princeton township 14 14 6,938,120 0 0 0 0 0 0 Robbinsville township* 85 0 10,021 4 329,000 0 0 5 9,156 Trenton 9 21 5,188,122 0 0 0 0 64 5,411,451 West Windsor township 115 6 1,262,785 0 0 0 0 109 7,729,428 Mercer County Total 447 112 31,236,697 12 957,527 3 55,000 320 25,647,127 Source: Census

36. Long Term Supply … Source: NAR, November 2008 Forecast Richardson Commercial

37. Long Term Demand … Source: NAR, November 2008 Forecast http://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf

38. Top Five Rules for Understanding the Real Estate Market: 1. Real Estate is Local 2. Real Estate is Local 3. Real Estate is Local 4. Real Estate is Local 5. Real Estate is Local

39. Trendmls.com

40. 1. You Understand the Local Market That You are Buying into or Selling out of… -Inventory - Location - Sales Patterns - Neighborhood, Location - Style of Home, Beds, Baths, etc

41. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.

42. Absorption Rate by Price Range Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values. As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually.

43. Sample Market Absorption Rate Anytown., NJ 107 current active listings 24.3 = months absorption 4 reported sales in last 30 days rate 5-6 Months Market Absorption Rate indicates a normal market.

44. 44 Market Scale for Supply & Demand High Supply/Low Demand Low Supply/High Demand Normal 1 Market Absorption in Months Weichert has been 2 studying market conditions for more than 3 3 decades and has found a direct correlation between 4 market absorption and 5 property values. Normal 6 As absorption rates 7 increase beyond a normal market level of 5-6 8 months, property values depreciate annually. 9 Note: This Market Scale is valid 10 only for absorption rates between 1 and 12 months. 11 12

45. 1/28/13 Towns Active Pending Absorption New Listings Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in in 30 Days (Loss) to Reduced in Invent. Listings Listings Listings 30 Days Months Market 30 Days Reduced West Windsor: 64 4 16.0 19 15 6 9.4% 4 1 12 All Styles West Windsor 12 2 6.0 6 4 1 8.3% 1 1 5 Condo/ T.Houses West Windsor 8 0 99 1 1 _ _ 0 0 0 55+ West Windsor 44 2 22.0 12 10 5 11.4% 3 0 7 Single Family Lawrence: All Styles 121 13 9.3 23 10 13 10.7% 11 2 18 Lawrence: Condo/ 37 6 6.2 5 (1) 7 18.9% 3 1 0 THouses Lawrence: 55+ 8 3 2.7 1 (2) _ _ 1 0 0 Lawrence: Single 76 4 19.0 17 13 6 7.9% 7 2 18 Family

46. 1/28/13 Towns Active Pending Absorption New Net Listings % of Expire W/drawn Closed Listings in Last Rate in Listings in Gain Reduced Invent. d Listings Listings 30 Days Months 30 Days (Loss) in 30 Reduced Listing to Days s Market Plainsboro All Styles 61 10 6.1 14 4 10 16% 11 0 8 Plainsboro Condo/ 30 5 6 9 4 7 23% 7 0 4 THouses Plainsboro 55+ 17 3 5.66 2 (1) 2 12% 1 0 1 Plainsboro Single 14 2 7 3 1 1 7% 3 0 3 Family Cranbury: All Styles 12 1 12 5 4 2 16% 3 0 3

47. 1/28/13 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings 30 Days Months 30 Days Market 30 Days Reduced Ewing: All Styles 198 17 11 33 16 33 17% 16 5 16 Ewing : Condo/ 29 3 10 6 3 6 21% 1 3 0 T.Houses Ewing 55+: 8 1 8 2 1 --- --- 0 0 0 Ewing: Single 161 13 12 25 12 27 17% 15 2 16 Family East Windsor: 139 12 12 26 14 18 13% 11 2 11 All Styles East Windsor: 85 7 12 16 9 13 15% 7 1 8 Condo/ Thouses East Windsor: 8 0 999 1 1 --- --- 0 0 1 55+ East Windsor: 46 5 9 9 4 5 11% 4 1 2 Single Family

48. 1/28/13 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings 30 Days Months 30 Days Market 30 Days Reduced Hopewell Twp. 101 6 16.8 16 10 12 11.9% 11 8 7 All Styles Hopewell Twp. Condo/ 2 0 99 1 1 1 50% 2 2 2 T.Houses Hopewell Twp.: 1 0 99 0 0 -- -- 0 0 1 55+ Hopewell Twp Single Family 98 6 16.3 15 9 11 11.2% 9 6 4 Hamilton: All Styles 390 26 15 70 44 67 18.6% 25 9 32 Hamilton: Condo/ THouses 79 6 13.2 12 6 16 20.3% 5 2 4 Hamilton: 55+ 21 1 21 7 6 -- -- 1 1 2 Hamilton: Single Family 290 19 15.3 51 32 51 17.6% 19 6 26

49. 1/28/13 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings (Loss) to Reduced Invent. Listings Listings Listings 30 Days Months in 30 Market in 30 Reduced Days Days 71 11 6 17 6 13 18% 11 4 13 Robbinsville All Styles 35 6 6 7 1 6 17% 6 1 8 Robbinsville Condo/ T.Houses 36 5 7 10 5 7 19% 5 3 5 Single Family 51 6 9 8 2 15 29% 5 0 6 Hightstown Boro: All Styles 14 3 5 3 0 2 14% 1 0 2 Pennington 6 3 2 1 (2) 5 83% 0 2 1 Hopewell Boro

50. 1/28/13 Towns Active Pending Absorption New Net Gain Listings % of Invent. Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced Reduced Listings Listings Listings 30 Days Months 30 Days Market in 30 Days Princeton: All Styles 111 9 12.3 18 9 14 12.6% 8 7 20 Princeton: Condo/ Thouses 28 4 7 3 -1 4 14.3% 3 1 4 Princeton: Single Family 83 5 16.6 15 10 10 12% 5 6 16

51. 1/28/13 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings Listings Listings 30 Days Months 30 Days Market in 30 Days Reduced South Brunswick 149 9 16 28 19 14 9 32 6 36 All Styles South BrunswickCon do/ T.Houses 53 4 13 12 8 8 15 10 1 9 South Brunswick 34 0 99 2 2 4 12 1 2 4 55+ South Brunswick 62 5 12 14 9 2 3 21 3 17 Single Family Monroe: All Styles 401 25 16 109 84 17 4 48 8 45 Monroe: 55+ 268 15 18 76 61 9 3 27 4 34 Monroe: Single Family 143 10 14 33 23 8 6 21 4 11

52. 1/28/13 Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings Listings Listings 30 Days Months 30 Days Market in 30 Reduced Days Montgomery All Styles 90 18 5 23 +5 14 15% 14 5 12 Montgomery Condo/Twnhms 11 3 3.7 6 +3 2 18% 3 2 5 Single Family 79 15 5.3 17 +2 12 15% 11 3 7 Hillsborough All Styles 174 24 7.2 49 +25 23 13% 18 10 14 Hillsborough Condo/Twnhms 70 9 7.8 22 +13 11 16% 9 5 8 Hillsborough Single Family 104 15 6.9 27 +12 12 11% 9 5 6

53. 53 Market Scale for Supply & Demand High Supply/Low Demand Low Supply/High Demand Normal 1 Market Absorption in Months Weichert has been 2 studying market conditions for more than 3 3 decades and has found a direct correlation between 4 market absorption and 5 property values. Normal 6 As absorption rates 7 increase beyond a normal market level of 5-6 8 months, property values depreciate annually. 9 Note: This Market Scale is valid 10 only for absorption rates between 1 and 12 months. 11 12

54. Understand the Market That You are Buying/ Selling in…

55. Sample Market Absorption Rate Anytown., NJ 107 current active listings 24.3 = months absorption 4 reported sales in last 30 days rate 5-6 Months Market Absorption Rate indicates a normal market.

56. Market Absorption Rate West Windsor BedroomTownhouses 3+ Bedroom 3 current active listings 1.5 months = absorption 2 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

57. Market Absorption Rate West Windsor Condos/ Townhouses 8 current active listings 1.6 months = absorption 5 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

58. Market Absorption Rate Princeton Condos/ Townhouses 24 current active listings 4.8 months = absorption 5 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

59. Market Absorption Rate Lawrence Condos/ Townhouses 46 current active listings 5.75 months = absorption 8 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

60. Market Absorption Rate West Windsor Single Family Homes Less than $600K 29 current active listings 7.24 months = absorption 4 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

61. Market Absorption Rate West Windsor Single Family Homes $600K - $800K 18 current active listings 18 months = absorption 1 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

62. Market Absorption Rate West Windsor Single Family Homes $800K + 4 current active listings 4 months = absorption 1 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

63. Market Absorption Rate Princeton Twp & Boro Single Family Homes $600K - $800K 11 current active listings 11 months = absorption 1 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

64. Market Absorption Rate Princeton Single Family Homes $800K - $1M 13 current active listings 99* months = absorption 0 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

65. Market Absorption Rate Princeton Twp & Boro Single Family Homes $1M - $2.0M 28 current active listings 14 months = absorption 2 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

66. Market Absorption Rate Princeton Single Family Homes $2 million + 18 current active listings 99* months = absorption 0 reported ‘pending’ sales in last 30 days rate Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market

67. Buying/ Selling Strategies Source: MLS

68. ‘I don’t want to buy a house and then watch it drop in value!’

70. Purchase Price $329,000 Loan Amount $317400 Down Payment $11,515 Monthly P&I $1802 Appreciation/Depreciation Home Value 1st Year -3% $319,130 2nd Year 0% $319,130 3rd Year 1% $322,321 4th Year 3% $331,990 5th Year 5% $348,590 5 Year Appreciation/Depreciation $19,500 Vs Paying Rent @ Tax Benefit $1600/mo 1st Year $5,000 $19,200 2nd Year $5,000 $19,200 3rd Year $5,000 $19,200 4th Year $5,000 $19,200 5th Year $5,000 $19,200 5 Year Total $25,000 $96,000 Create Equity Total Gain $44,200 v Pay Rent

71. Purchase Price $329,000 Loan Amount $317400 Down Payment $11,515 Monthly P&I $1802 Appreciation/Depreciation Home Value 1st Year 5 $319,130 2nd Year 3% $319,130 3rd Year 2% $322,321 4th Year 2% $331,990 5th Year 2% $348,590 5 Year Appreciation/Depreciation $48,590 Vs Paying Rent @ Tax Benefit $1600/mo 1st Year $5,000 $19,200 2nd Year $5,000 $19,200 3rd Year $5,000 $19,200 4th Year $5,000 $19,200 5th Year $5,000 $19,200 5 Year Total $25,000 $96,000 Create Equity Total Gain $73,529 v Pay Rent

72. + The Amortization Schedule on a Loan Yearly Schedule of Balances and Payments Beginning Cumulative Cumulativ Ending Year Payment Principal Interest Balance Principal e Interest Balance 2010 $315,646.96 $21,625.92 $4,374.96 $17,250.96 $6,128.00 $24,508.72 $311,272.00 2011 $311,272.00 $21,625.92 $4,621.30 $17,004.62 $10,749.30 $41,513.34 $306,650.70 2012 $306,650.70 $21,625.92 $4,881.98 $16,743.94 $15,631.28 $58,257.28 $301,768.72 2013 $301,768.72 $21,625.92 $5,157.36 $16,468.56 $20,788.64 $74,725.84 $296,611.36 2014 $296,611.36 $21,625.92 $5,448.28 $16,177.64 $26,236.92 $90,903.48 $291,163.08

73. Appreciation (conservitive): $19,500 + Amortization: $20,109 + Tax Benefit of Home Ownership $25,000 + Low Interest Rates: $5000 ___________________ total 5 year gain = $69,609

74. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.

75. 1. ‘I am going to time the Market and buy/ sell at the time when inventory & buyer count is in my favor…’ Source: MLS

76. Listing v Contracts: Dec – Jan 2011, Mercer County

77. Listing v Contracts: Dec – Jan 2012, Lawrence Twp.

78. 3. ‘I am going to wait until the price comes down further and then make an offer/ if I lower my price I will get lower bids…? Source: MLS

79. Don’t Wait Hopewell Twp: 82% Homes currently Under Contract: 17 Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market : 14 Princeton 63% Homes currently Under Contract: 19 Under contract within 30 days of Listing at the Right Price or Re-positioning in line with the market : 12

80. It’s About Price Sellers, if your listing hasn’t gone under contract in the last 30 days and the price is not adjusted it will not go under contract in the next 30. If the home your buyer wants has not had a price adjustment in the last 30 days it is the perfect time to go face to face with the seller to negotiate!

81. Financial Benefits and Process of Home-Ownership. Brian McDaniel, Loan Officer Weichert Financial Services

82. Pop Quiz… If you take out a $200,000 30 year fixed payment loan from the bank, what is your monthly payment? A. $1901. B. $1640. C. $1201. D. $969.

83. Pop Quiz… What does an average buyer need for a down payment? A. 25% B. 20% C. 10% D. 3.5% D. 0%

84. Establish Your Buying Power

85. The Impact of Pricing on the Salability of Your Home..…

86. Home Staging All Negotiations, including real estate, are all about negotiation and control. Who is in control?

87. Negotiations are about leverage, use the listing price as part of yours… Source: MLS

88. Effects of Right Pricing… •Promotes buyer & agent interest • Generates home-viewings • Creates a Sense of Urgency • Sets the stage for multiple purchase offers during the 1st 30 days of marketing • Purchase offers tend to be higher in relation to asking price • Puts the seller in firm control of price negotiations • Likely to result in a higher home selling price in a shorter marketing time period Otteau.com

89. Effects of Over Pricing… In the final stages of Over Pricing – after extended days-on- market and several price reductions – a home begins to attract interest from buyers who are looking to profit from sellers under duress. These buyers, often referred to as bottom-feeders, tend to offer deeply discounted prices for homes. In the end, the Over Pricing scenario has many adverse effects, including: Eliminating all Sense of Urgency Extending marketing time in a price declining market Results in asking price reductions over time Forfeits price control to the buyer Encourages discounted purchase offers Attracts bottom-feeders Otteau.com Leads to lower selling price

90. Princeton Twp. 2010 The Price Trend Came up with a price of $850,000. I recommended a price of $799,000.

91. Negotiations are about leverage, use the listing price as yours… Listed at $799,000. 5 offers, sold at $942,000. The seller had control.

93. One Aim Determining your best asking price. Our unique method goes beyond the traditional assessment of comparable home prices by anticipating changing marketing conditions in your area.

94. 2. The Effect of Staging on the Value of a Home.

96. The process of preparing homes for sale regardless of Price, Location, or Condition To achieve the maximum sales price in the minimum marketing time. The GOAL is to appeal to the broadest range of BUYERS.

97. The Way You Live In Your Home…

98. … And The Way We Market And Sell A House Are Two Different Things.

99. “The Investment in Home Staging is Always Less than Your First Price Reduction!”

100. Buyers Only Know What They See …

101. … Not The Way It Is Going To Be.

102. Home Staging “The investment in home staging is always less than your first price reduction!” *Based on a StagedHomes.com survey of over 400 homes across Canada & the Continental US prepared for sale by an Accredited Staging Professional (ASP™) from June 2007 through November 2007.

103. Home Staging “The investment in home staging is always less than your first price reduction!” The average increase in sales price of an ASP Staged vs. non- Staged home is 6.9%. That is an additional $31,050 on a $450,000 sale. *Based on a StagedHomes.com survey of over 400 homes across Canada & the Continental US prepared for sale by an Accredited Staging Professional (ASP™) from June 2007 through November 2007.

104. One Aim Determining your best asking price. Our unique method goes beyond the traditional assessment of comparable home prices by anticipating changing marketing conditions in your area.

106. What is ‘Pre-Inspection?’

107. Pre-Inspection WHAT DOES PRE-INSPECTION INCLUDE? The standard home inspector's report will review the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

108. PRE-LISTING Home Inspection DOESN’T THE BUYER DO THE HOME INSPECTION?

110. Home Improvements I am moving out of the house, I do not want spend too much money to move. Or I just spent $$ on a new kitchen, I want $$$$$$ back on that investment when I move.

111. Return on Home Improvements http://www.remodeling.hw.net/2011/costvsvalue/division/middle-atlantic.aspx

112. What will a real estate company do for me? Weichert Family of Companies

113. Making Your Purchase as Smooth as Possible Buying a home involves the careful coordination of many people. Choosing a real estate team you can count on will make the process smoother and easier.

114. The Weichert Difference • Time is money. • Stress kills. • Time is life.

115. What Will a Weichert Agent Do for You? Educate You. Negotiate on your behalf. Offer advice on due diligence. Manage all aspects of the transaction process.

116. We’re Here to Help The Entire Process is reviewed by Legal Council.

117. Become a Fan! www.facbook.com/weichertprinceton www.weichert-princeton.com We post a ton of great market data on these two sites.

118. Resource and website list: Realtor.org http://www.facebook.com/pages/ NAR-Research/73888294183# Remodeling.com

119. Resource and Website List http://www.realtor.org/research/res earch/housinginx Remodeling.com www.Otteau.com www.Pre-listing-inspection.com

120. Resource and Website List: www.Housemaster.com www.Stagingshoppingcenter.com

121. Resource and website list: www.Stagedhomes.com www.realestatestagingassociation.com www.realtytrac.com

Feb 2013 market seminar

Feb 2013 market seminar

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