Weekend Open Discussion – Part II

Posted on March 9, 2008 by grim

Now Open, Part II!

Prior weekend thread closed due to comment overflow.

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107 Responses to Weekend Open Discussion – Part II

grim says:

March 9, 2008 at 6:32 am

From the Home News Tribune:

Q&A: Things you need to know about the budget

It’s time for New Jersey citizens to have their say on Gov. Jon S. Corzine’s budget proposal that could cut funding for property tax rebates and major state programs, including state parks and motor vehicle agencies.

Corzine and the Legislature must agree to a plan by July 1, so nothing is finalized, but lawmakers in the coming week will hold their first public hearing.

Assembly Budget Chairman Lou Greenwald hopes residents attending this year’s sessions come with ideas and suggestions.

“It is imperative that everyone who comes before this committee not just bring a list of problems, but a list of potential solutions,” said Greenwald, D-Camden.

The first hearing is scheduled for Wednesday by the Senate budget panel. It’s slated for 9 a.m. at the Rutgers University Student Center in New Brunswick.
grim says:

March 9, 2008 at 6:36 am

From the Boston Globe:

The ‘R’ is not for rich

The definition of a recession – two consecutive quarters of negative growth – is meaningless to most of us. It’s like saying there’s ice on Mars.
…
These distinctions are gobbledygook. Ben Phillips put it best. Phillips, a cabbie, comes out of the Dunkin’ Donuts in Jamaica Plain one morning last week. I ask him if we’re in a recession. He replies: “I don’t know what a recession is. All I know is that things are not right now.”

His calls are down about 40 percent. No tips. Gas is killing him. And he’s spending a lot less on himself.

Later that day, I’m up on Beacon Hill, the plummy side that slopes to Charles Street. An older gent with silver hair in a yellow foul-weather-gear jacket is walking his two dogs past DeLuca’s, the ancient grocery store on Charles where a friend once told me you have to take out a second mortgage to buy an orange.

I ask the man if we’re in a recession. He nods. I ask him if this is affecting him personally. In an elegant minimalist move, he moves his head back and forth ever so slightly, his eyes radiating a bemused “surely you jest.” The man finally breaks into speech with this: “The past 10 years have been very kind to the rich.”

Back on planet Earth, I’m reminded of the probate judge who said divorce is meaningless to the very rich and the very poor and a financial disaster for pretty much everyone else. So is recession.

“Absolutely we’re in one,” says Chris Fahey, who works for an affordable-housing nonprofit. “We’ve tried to refinance our house but the interest rates are much higher. Our children are struggling to find work,” she adds. “We’re rethinking a trip to Ireland to celebrate our 25th anniversary. It’s all too tight. There’s no flexibility.”
grim says:

March 9, 2008 at 6:36 am

Interesting news from Canada..

Hold off on that U.S. vacation home, guru advises

John Talbott has some advice for Canadians looking for cheap vacation homes in the United States: Don’t buy. At least not yet.

While American brokers are filling newspapers (including the Toronto Star) with advertising enticing Canadians to take advantage of depressed housing prices and a high loonie, Talbott says there is more pain to come.

“We haven’t seen the bottom yet,” says the author and former investment banker with Goldman Sachs. “There are going to be a lot more For Sale signs.”
grim says:

March 9, 2008 at 6:39 am

From the Star Ledger:

STANDING UP TO A CRISIS

The van turned down 11th Street in Newark and Kathe Newman started shouting out house numbers again: “107, 114, 127, 126.”

Then on 10th Street: “186, 182, 169.”

And Norwood Street in Irvington: “25, 46, 64, 66, 72.”

Then Ellis Avenue: “311, 324, 315, 312.”

It almost sounds like a game of real estate bingo, except Newman is reading off a list of addresses that have gone into foreclosure in the last two years.

In Newark, about 1,400 owner-occupied houses — out of 21,295 in the city — are under foreclosure, according to preliminary data from Rutgers University’s Bloustein School for Planning and Public Policy, where Newman is an assistant professor. City officials expect at least another 1,000 foreclosures within the next 18 months.

In response, an unprecedented coalition of government officials, community development corporations, financial institutions and nonprofit groups have formed a task force to address the growing crisis. Rising vacancy levels could imperil or even reverse progress the city has made toward renewal in the last decade.

“This is a real threat to our communities,” said Newman, whose research group is part of the Essex-Newark Foreclosure Task Force. “Right now we have a moment to intervene before there is too much additional decline. But if we don’t intervene quickly, we’re going to lose that moment.”

Tuesday in Trenton, state Sen. Ronald L. Rice (D-Essex) will introduce modifications to the state’s foreclosure laws and the establishment of a crisis fund — financed by a new, $2,000 fee charged to lenders when they begin foreclosure proceedings — that will at least attempt to close the proverbial barn doors before too many more horses escape.

But even the measure’s biggest advocates admit it is a mild breeze compared with the financial hurricane that’s been created as a once-superheated housing market goes into a deep freeze and the bills for years of frenzied real estate speculation and reckless loan origination finally come due.
grim says:

March 9, 2008 at 6:44 am

From the Record:

Road Warrior: Readers rank our ugliest landmarks

The votes are in. The biggest, ugliest, most persistent eyesore along North Jersey interstates isn’t located in any of our hard-pressed urban centers.

According to my own unscientific survey, this dubious distinction belongs to the Morris County suburbs — on westbound Route 80 in Parsippany-Troy Hills.

If you’ve driven past it for 20 years — Yes, 20! — you could not have missed this landmark. It’s the decaying, five-story erector set that often prompts this reaction:

“What is that?”

Call this one a rusty dream.

Developer William Foody planned a Class A office building there in 1988, but the bottom fell out of the commercial real estate market shortly after the girders went up. Foody and his Texas investors held on, however. They stayed one step ahead of township building code officials by doing just enough work to legally qualify the project as ongoing and viable as the years passed.
Frank says:

March 9, 2008 at 7:20 am

Inventory up by 2% since last week and by 200 since Friday. Those RE agents are hard working bees. Hoboken and JC inventory is up by 50 each.
grim says:

March 9, 2008 at 7:26 am

Interesting little snippet from JP Morgan. Hat tip Calculated Risk.

Banks face “systemic margin call,” $325 billion hit: JPM

The JPMorgan report included a revised bleaker forecast for subprime-related home prices. The bank now sees prices falling 30 percent, from its prior 25 percent forecast. Those prices have declined 14 percent since mid-2006, JPMorgan said.
Orion says:

March 9, 2008 at 7:34 am

From NYT:

Hoboken comes to Union City

http://www.nytimes.com/2008/03/09/realestate/09njzo.html?ref=realestate
grim says:

March 9, 2008 at 7:35 am

From the Asbury Park Press:

Borrowing today, with no regard for tomorrow, puts us in a jam

Seven years ago, with uncommon unity, lawmakers of both parties eagerly embraced a plan that would speed the state’s slide toward fiscal havoc.

Then-Gov. Donald T. DiFrancesco, a Republican, signed a bill to boost pensions for lawmakers, teachers and other public employees by 9 percent. It was a measure that gained quick and nearly unanimous support in the Legislature.

In the routine announcement of bills signed that day, June 29, 2001, the governor’s office made no mention of the price tag: $5.2 billion in additional pension liabilities. The pension boost took effect in October of that year.

Lawmakers thought the debt would easily be erased by a surging stock market, where much of the state’s pension money was invested. But as the economy’s fortunes soured, the state’s taxpayers found themselves on the hook for billions of dollars in unwanted debt.

It is a stark example of how, for more than a decade, governors and lawmakers from both sides of the political aisle have been addicted to debt. It was good politics: New Jersey’s government has borrowed money to boost pensions, pay for tax cuts, and, in at least one instance, to balance the state budget — all without asking voters to pay higher taxes.
…
From 1999 to 2003, the Legislature adopted, and governors signed, a series of laws that boosted the benefits of teachers and other state employees. The laws also added nearly $7 billion of future liability, according to a 2005 report by a Benefits Review Task Force that had been appointed by Democratic Gov. Richard J. Codey.

“I don’t think these politicians ever realized that all these pensions had to be paid,” Toms River resident Victor Antonelli, 67, said. “Now it’s time to pay the piper. … In my opinion, if they don’t straighten out, I don’t care if it’s Republicans and Democrats, this state is going to have a taxpayers’ revolt.”
hughesrep says:

March 9, 2008 at 7:43 am

Can anyone tell me what happened to MLS #20806673 in Howell?
Mikeinwaiting says:

March 9, 2008 at 8:02 am

CORZINE on WNJB now the budgst.
Cindy says:

March 9, 2008 at 8:40 am

Last week, some of you found this interesting so here are today’s results of the $1,000.00 Derby….in today’s Fresno Bee

“A weekly update on what $1,000 invested on Jan. 1 would be worth today. Investment returns are based on the performance of Dow Jones stock, bond, and commodity indexes, which include reinvestments of dividends, where applicable.”

“Commodities had a mixed week, but still outpace stocks this year. Soybean prices plummeted after China reportedly flooded its domestic market with soybean oil to ease the rising prices. Crude oil rose to a new record above $106 a barrel. Financial stocks were walloped again.”

$1,000 on 1/1 worth today one week change

Natural gas $1,298 one week change $54
Copper 1,293 one week change 22
Wheat 1,221 one week change 21
Corn 1,176 one week change -20
Cotton 1,170 one week change -8
Gold 1,159 one week change -1
Soybean 1,149 one week change -104
Crude oil 1,095 one week change 30
Corporate bonds 1,002 one week change -14
Latin Amer. stocks 998 one week change -25
Oil & gas stocks 931 one week change -31
Middle East stocks 927 one week change -24
Industrial stocks 898 one week change -23
Health care stocks 896 one week change -30
Mid-cap stocks 895 one week change -34
European stocks 891 one week change -19
Large-cap stocks 886 one week change -25
Asian stocks 883 one week change -49
Small-cap stocks 880 one week change -34
Financial stocks 849 one week change -49
Tech stocks 825 one week change -12
Telecom stocks 808 one week change -10
njcoast says:

March 9, 2008 at 8:47 am

#11 hughesrep

MLS #20806673- 1043 6th Ave. in Wall

Under contract- 3/7/08
Projected close date-5/1/08
Orig. list- 3/06-$409,000
Current list-$369,900
hughesrep says:

March 9, 2008 at 9:08 am

njcoast

Thanks.
Confused In NJ says:

March 9, 2008 at 9:33 am

Blood-thinner’s contamination raises inspection, safety issues
Sunday, March 09, 2008
BY GEORGE E. JORDAN
Star-Ledger Staff
The Food and Drug Administration suspects a counterfeit substance from China figures in illnesses and 19 deaths in the United States linked to the blood-thinner heparin.

As the heparin crisis grows — authorities last week said they were investigating German dialysis patients on the drug who had taken ill — it stokes the worst fears of consumers, an overwhelmed FDA and drugmakers, which import the lion’s share of their raw goods from overseas.

“It highlights the need for the pharmaceutical industry to be extra vigilant in doing solid and consistent vendor audits of companies,” said Mark Hassenplug, a pharmaceutical analyst at Ernst & Young in Manhattan. “We think the industry would be wise to double-check itself and its sources of all these raw materials.”

The agency said it relies primarily on border examinations, label reviews and testing of finished products to identify problems.
bi says:

March 9, 2008 at 9:46 am

13#, cindy, good summary. anybody has any insight on why telcomm service stocks got beaten so hard?
Fiddy Cents on the Dollar says:

March 9, 2008 at 9:49 am

hughesrep
njcoast

That thing in Wall is the Classic Case of re-listing to keep the days on market nice and low.

I count 5 separate MLS # attached to this property since 3/06. Same Realtor….5 listings.

I hope the current buyer has done his homework. The current U/C listing shows 21 days on market. If our buyer has not asked the right questions of the listing agent…..he probably thinks he’s getting a jump on the spring selling season.
Stan says:

March 9, 2008 at 9:52 am

Could someone post the sales history of this Murray Hill Sq. condo?

MLS #2484696

Thanks
YankeeGal says:

March 9, 2008 at 9:54 am

Is anyone familiar with Vail Mansion in Morristown? I just saw in the real estate transfers section of the Daily Record that a handful just sold these past few weeks, ranging in price from $819K to over $1 million. I can’t imagine why anyone would spend that much money to live in that part of Morristown, but I guess they must be really nice!!!
Bloodbath in Winter 2007 says:

March 9, 2008 at 10:02 am

Clot – Went looking at rentals (in PA) yesterday. Along the way, met three agents. We mentioned to them we want to rent for a year and then buy. Two of the guys seemed like people we’d actually use to buy the house.

1) How early is it to get a guy as ‘your agent’

2) rude to ask for recommendations?

3) is it best to tell him up front, ‘hey, we’ve been following this market for awhile, and we know the re-listing trick, we do our homework, and we want you to be brutally honest with us throughout this process. don’t sugar coat s*it or this won’t work.’ or is that too rude? Basically, we don’t want a guy telling us crap like, ‘know is the best time to buy, etc, etc.’ Best way to convey this sentiment?
Cindy says:

March 9, 2008 at 10:05 am

(17) bi
I have no idea why telecom is on the bottom. I just type this in on Sunday when the “derby” comes out.

history I have re: telecom

2/10 868 one week change -52
3/2 818 one week change -12
3/9 808 one week change -10

It looks like something happened a month or more back..
Secondary Market says:

March 9, 2008 at 10:06 am

major Realtor propaganda in philly going on. i will some what agree however on the relatively conservative inflation bubble in comparison to other cities and states.
although it’s only a matter of time that inventory becomes as much as a problem as over pricing. people can list their homes for only so long before they get desperate (or realistic) and drop their price.

http://www.philly.com/philly/business/

http://www.phillymag.com/articles/everything_you_know_about_philly_real_estate_is_wrong/
Fiddy Cents on the Dollar says:

March 9, 2008 at 10:24 am

telecom-

I’d like to know which stocks are in their “basket” for the derby.

If Alcatel/Lucent is in there….it will bring the whole sector down.
HEHEHE says:

March 9, 2008 at 10:28 am

“bi Says:
March 9th, 2008 at 9:46 am
13#, cindy, good summary. anybody has any insight on why telcomm service stocks got beaten so hard?”

They were on your buy list?
njpatient says:

March 9, 2008 at 10:30 am

I post the following for Chifi and Dream to argue about:

http://www.nytimes.com/2008/03/09/business/09stra.html?pagewanted=print

Can You Beat the Market? It’s a $100 Billion Question

[/Runs away]
Cindy says:

March 9, 2008 at 10:38 am

(23) Fiddy Cents

It just says “Investments returns are based on the performance of Dow Jones, bond, and commodity indexes” so whatever telecoms are in the Dow is implied.

Mind you, I have no idea what any of it MEANS – I just like the analogy of a race horse and the whole starting with $1,000 deal (I’m very visual.)
gary says:

March 9, 2008 at 10:44 am

Burning question I need to know: Would the Knicks have a chance in the NCAA tournament?
Cindy says:

March 9, 2008 at 10:53 am

(25) njpatient

Thank you for the post. Someone like me, who has no real working knowlege of the market (or interest in driving myself crazy worrying about such things) yet is forced to put aside money in a restricted vendor market with dollar cost averaging each month (403b), finds it very comforting to be doing something rather than nothing at all.

This is a sophisticated crowd, with TONS of knowlege re: market matters. There are many of us who would be mentally tormented on a daily basis if we had to manage our own funds. Yes, I’m even willing to lose some MONEY to gain the mental space the convenience affords me. Money? Sanity?
I’ll chose sanity every time.
grim says:

March 9, 2008 at 10:59 am

Stan,

50 Murray Hill Square

Purchased: 12/15/2006
Purchase Price $399,000

MLS# 2484696

Listed: 2/2/2008
OLP: $412,000
LP: $400,000
DOM: 36

Doesn’t appear to be a short sale, at least the listing doesn’t say anything about being “Subject to lender approval.” Commission is 5%, so the seller is looking at taking a $20,000 hit if it sells at asking.
Happy Camper says:

March 9, 2008 at 12:13 pm

#13 Cindy

in what section is the Derby located? FresnoBee.com only shows news prior to friday, march 7th.

HC
skep-tic says:

March 9, 2008 at 12:26 pm

re: the phantom “other bidder”

Clot (or anyone else who has experience with this): is it reasonable to ask your agent (or the selling agent) to produce a copy of the bid, with the name/bid price redacted (just to prove that another bid in fact exists)?
lostinny says:

March 9, 2008 at 12:34 pm

Skeptic
Someone in the field will be able to answer better then myself but I could swear this was discussed previously and the answer was no.
njpatient says:

March 9, 2008 at 12:38 pm

27 gary
Knicks could definitely make it to the Sweet 16 – probably would be a 3 or 4 seed in any bracket. I see them breating a Bucknell in the first round, maybe getting by a WAS U in the 2nd (2 OT) and getting killed by a Memphis in the third.
bi says:

March 9, 2008 at 12:44 pm

24#, he, i am looking at it. but so far financials are my major focus. Citi and AIG are traded near the bottom of 87 crash. i posted this idea friday evening. barron’s made the same argument this weekend: it says P/E for S&P made new high while financials seem be over sold.

disclaimer: i am not recommending any particular stocks.
Sybarite says:

March 9, 2008 at 12:49 pm

(From a local Realtor’s Web Site)

Morris County, New Jersey
Market Condition Report
(February 2008)

In Morris County it is an active buyers market, despite what the media has been reporting. Not only that, but to put things into proper perspective, according to the National Association of Realtors (NAR), the number of existing home sales in 2007 was the fifth highest on record. Also, in Northern New Jersey, actual foreclosure numbers are very low compared to the national average, and significantly lower than standardly reported (according to the Otteau Appraisal Group). Meanwhile, take note of this fact: The NAR predicts existing sales in 2008 to be fourth highest on record.

The media has been presenting the housing data in such a ‘doom and gloom’ way as to frighten many prospective home buyers. That, coupled with the real fallout problems that have stemmed from the unfortunate loose lending practices from many greedy mortgage providers over the past several years during the unsustainable boom, has resulted in a further softening of the market, despite the very desirable buying environment: historically low interest rates, coupled with a high inventory of homes to choose from. Home prices are now at healthier, more affordable levels, which is beneficial for the local Morris County Real Estate market in the long run, a desirable location where the demand will predictably continue to be high. Morris County, overall, boasts a high quality of living in green suburbia, with top schools, and an easy commute to New York City.

It is interesting to note that in Morris County, average home prices in 2007 were virtually unchanged over the course of the year, compared to that in 2006, while average yearly prices increased 43.1% from ’02 through ’07 (calculated from the Garden State MLS data). Meanwhile, inventory levels in Morris County remain high, although levels in the fourth quarter of ’07 were actually 3.4% lower than that in ’06, largely due to unmotivated sellers removing their homes from the market. The Market Absorption Rate, a measure of the strength of a local real estate market, is theoretically how long it will take to sell off the given inventory of a specific market. According to data from the Otteau Report, in the fourth quarter of ’07, this rate predictably showed that the market is strongest in the lower price ranges. Interestingly, the Market Absorption Rate was basically the same in the third quarter of ’07 compared to that in ’06. The numbers did show a bit of a softening in the fourth quarter year over year, from ’06 to ’07, with the Market Absorption Rate increasing from 7 months to 10 months (6 months is considered an even market, while numbers below are considered a seller’s market, and numbers above, a buyer’s market).
gary says:

March 9, 2008 at 12:53 pm

skep-tic,

We were involved in two bidding wars back in 2000 and 2001. Each time we asked our agents’ for proof of other bids, it was like throwing satan into a vat of holy water.

You have a better chance of breaking into the top secret vaults where the Rosewell findings are located underneath the Pentagon.

IMO, if an agent even so much as utters any sentence the includes the words “other” and “bid”, I’m outta there faster than a bunch of married guys during a raid on a Canal Street brothel.
Rich in NNJ says:

March 9, 2008 at 12:56 pm

skep, i’m outside an open house right now in Glen Rock (wife is inside while I,m with our 7 month old) and the agent is saying they are working on “something” so I need to decide soon.
bull, if I decide bid it’ll be for what I think it’s worth, who cares about other bids or possible bidders.
basically it shouldn’t affect what you’re willing to bid if at all. ignore it.
skep-tic says:

March 9, 2008 at 12:59 pm

thanks to all who responded to my question above.

Rich– I am thinking of a situation where you’ve already made a bid and the agents/seller are trying to convince you to go higher. Are you saying that you would always only make 1 best/final bid?
skep-tic says:

March 9, 2008 at 1:00 pm

gary– you’ve probably been over this before, but I’m curious what the response would be if you refused to bid again w/o proof of another bid
gary says:

March 9, 2008 at 1:02 pm

Sybarite,

Forward that realtor this link and tell them Gary said, “good luck and best wishes.”

http://www.theriversource.org/
gary says:

March 9, 2008 at 1:09 pm

skep-tic,

The first time we were in the bidding war, we offered $5,000 and the realtor called back in an hour and said someone bid higher. We asked what the bid was and the response was, “can’t tell you that but keep bidding and I’ll let you know if you’re in the running.” Yup. We said, no thanks and didn’t call or deal with that realtor again.

A few months later, we made an offer on a house and the realtor said there were other bidders and we said “buh bye”.

Obviously, a few years ago, nobody needed you as there was always a fool coming around the turn that would fall for the bait. I don’t know what response you would get today if you decided not to bid w/o proof. I certainly wouldn’t get caught up in that bullsh*t again.
gary says:

March 9, 2008 at 1:10 pm

that was, $5,000 above our original bid…
skep-tic says:

March 9, 2008 at 1:11 pm

I wouldn’t expect that the other bidder’s price be revealed (or any material terms of the bid), but it seems reasonable to ask for proof that another bid exists.
gary says:

March 9, 2008 at 1:16 pm

Your asking the industry to practice something based on ethics? How silly. (sarcasm off)
Rich in NNJ says:

March 9, 2008 at 1:30 pm

thought I would rely from my home but the power is off.
anyway, no. as part of the bidding process I start low with a max already set. so if there is another bid or counter I already have my max. period.
hope that answers your question.
Punch My Ticket says:

March 9, 2008 at 1:32 pm

43,

So you think that an agent willing to tell you about a fake bidder would not be willing to dummy up a fake contract with name, price, or material conditions blacked out?

Think about it. It’s three minutes work for the office receptionist.

Either the agent is truthful or not. Asking for “paperwork” is useless.
Confused In NJ says:

March 9, 2008 at 1:33 pm

Interesting that realtors stress historically low interest rates, but ignore historically high property taxes.
Fiddy Cents on the Dollar says:

March 9, 2008 at 1:43 pm

When any Realtor brings up the “Other Offer” scenario….I would quickly drop the name & number of their local Association of Realtors. Here in Monmouth County that number is 732-918-1340. Other areas are available on the inter-google.

Tell the Realtor you’re going to inquire about the existence of the “Other Offer” under their Code of Ethics Section 1-15. You don’t need to see the particulars of the offer, you just need to verify that it exists.

I think once you make it clear that you know your way around the block….you will get your verification (or the Other Offer will cease to exist).

The last thing a working Realtor wants is censure from their local Board.
bairen says:

March 9, 2008 at 1:52 pm

Most real estate agents make my skin crawl. Worse then used car salesman.

They exaggerate, use pressure, fear “you’ll be priced out forever” and other disgusting tactics.

I also think most of them are financially illiterate, fail to understand the time value of money, fail to include repairs and the lost interest your down payment would be earning in a cd when they do their pretty rent vs buy charts.
Cindy says:

March 9, 2008 at 1:52 pm

(30) HC

They run it on Sundays. Business section
(D this week..Market Extra – Stocks – pg. D4

There are some little race horses on top…

Top left – Fresno Bee Sunday 3/9/08
Sybarite says:

March 9, 2008 at 2:00 pm

My favorite line from the piece in #35 is how the “unfortunate loose lending practices from many greedy mortgage providers over the past several years during the unsustainable boom” fails to mention greedy realtor’s influence on the same.

I’m not saying all realtors behave in this way; I just found it ironic because she is a realtor I actually used for a little while, until I got tired of her pushiness, trying to get me to buy anything.
Bloodbath in Winter 2007 says:

March 9, 2008 at 2:12 pm

Q: Can anyone recommend a good, reliable moving company? Just digging into research now.

Move is from NYC to PA, about 90 minutes.
Rich In NNJ says:

March 9, 2008 at 2:17 pm

Very interesting read

From The Record

County retains PAC leader as no-bid consultant

A Hackensack developer whose political action committee has donated tens of thousands of dollars to Bergen County Democrats has a no-bid contract that’s paid him more than $230,000 in county taxpayer dollars for real estate deals since 2003.

Robert Pimienta, a registered Republican from Franklin Lakes, gets a cut every time the Democratic-controlled county government signs a lease or buys property. He’s paid an hourly fee when his company does research, up to $10,000 this year. And if he saves the county money, he gets 10 percent of what he calculates as the savings.

Since 2007, he also has collected 1 percent of the sale price of any property the county acquires through condemnation.

A week after county freeholders added that provision to his contract, Pimienta received $91,000 in connection with a Teterboro site the county condemned via eminent domain for a new juvenile detention center.

Experts say such a compensation package is more generous than the industry standard, but Pimienta said he’s been a boon to taxpayers, saving them hundreds of thousands of dollars.

…
“I wasn’t quite certain why we needed to hire [a real estate adviser] in general terms, without having a special project,” recalled former Republican Freeholder Elizabeth Randall, who voted against retaining Pimienta in 2003.

“I don’t remember having a clear understanding of the individual projects that this individual would be working on. This, to me, was a very vague assignment.”
Randall, who was once Bergen’s legal counsel, said that the county’s real estate transactions were easily handled by staff lawyers before Pimienta was retained. Bergen County owns 24 buildings and leases space in four others, according to county records.

Pimienta, who is chairman of the state Real Estate Commission, also has sought brokerage fees from private landlords who have been renting to the county long before he was retained. And he has sought to collect commissions from property owners who sell to the county — going so far as to take one Hackensack real estate agency to court for his cut, with Bergen County officials testifying on his behalf.

MUCH more at the link above, Rich
njpatient says:

March 9, 2008 at 2:22 pm

38 skep
That’s exactly the problem. Whatever my bid was prior to being informed of the “other bidder” becomes my final and best bid. In _this_ market I will not raise my bid in the face of another bidder, whether real or fake. There are too many houses for sale, and prices aren’t going up any time remotely soon.
Rich In NNJ says:

March 9, 2008 at 2:24 pm

Glen Rock
SLD 36 JEROME AVE $520,000 11/7/2005

ACT 36 JEROME AVE $549,000 5/13/2007
PCH 36 JEROME AVE $539,000 7/24/2007
PCH 36 JEROME AVE $529,000 8/31/2007
PCH 36 JEROME AVE $519,000 10/21/2007
W-U 36 JEROME AVE $519,000 11/11/2007

Back on market
ACT 36 JEROME AVE $500,000 3/9/2008
njpatient says:

March 9, 2008 at 2:26 pm

43 skep
I actually think the opposite is. Tell me the price of the other bid, and I’ll decide whether or not to beat it. But I won’t go blindly thrashing about raising my price and paying more than I need to when I have no idea what amount is actually necessary.
Mikeinwaiting says:

March 9, 2008 at 2:27 pm

Bloodbath 52 I was very happy with these guys Alessi Movers, Sparta NJ I think.I don’t know if they do NYC to PA thing but try to track them down in Sussex cty great service great price.The guys I had on the move before sucked & then tried to rip me off.It would surely be worth the time to find them & see if they can do your move.On a 1-10 they were a 10.
njpatient says:

March 9, 2008 at 2:29 pm

45 Rich

I wouldn’t want to leap to my max because of another “bidder” who doesn’t exist. I think that’s precisely the reason why the “phantom bidder” game is played.
Rich In NNJ says:

March 9, 2008 at 2:43 pm

NJPatient (58),

Excellent point!
I’ve never gotten into a bidding war but have been told there was another bidder. Twice actually.
In both cases the bidder wasn’t a phantom.
Also, in both cases they have jumbo mortgages right now, one with 15% down and the other with 10%. Looks as if they may be the ones who caught (can’t recall what Grim calls it) the ebay bidding bug?
Mikeinwaiting says:

March 9, 2008 at 2:44 pm

On the phantom or real bidder subject.As soon as my agent tells me there is another
bidder I say ok so much for that house.Then wait & see if it sells most of the time it is still there 2-3 months later.The way things are going by that time the market is down in my area more & I thank God I walked.
This is not true of everywhere as I’m out far in Sussex we have had some serious reduction already with more to come.
On another note if you walk away from 1or 2
your agent may not try & bull you.Don’t let them manipulate you they work for you be straight forward about everything.
A house I was going to buy in 98 was listed 20k over the price then but somebody beat me to it.You must be disciplined no bidding war for me so I wait for the next one.(it was reo)
bairen says:

March 9, 2008 at 3:00 pm

#60

I agree. If there’s “another offer” out there I’m taking a walk. I wouldn’t be surprised if the selling agent would call me back in a week or two with some reason why the other offer fell through.

It’s much easier to buy a house then it is to sell one. Especially as prices drop and lending standards rise.
bairen says:

March 9, 2008 at 3:05 pm

#61 I’m not even looking to buy something for at least another year, no matter where we live. If we stay in NJ I don’t see us buying anything until Summer 09 at the earliest.

If we relocate out of state I want to rent for 6 months or so to find out where the good school district lines are, where we hang out, what’s the commute to work and daycare like, etc.

Of course if some long lost relative wants to give us 250 to 300k on the sole condition we use it to buy a house I may be inclined to change my tune.
Mike says:

March 9, 2008 at 3:32 pm

Bloodbath – Pensa Movers, Union City were used and were reliable for a similar move.
bairen says:

March 9, 2008 at 3:48 pm

FBI reportedly has launched fraud investigation of Countrywide

http://money.cnn.com/2008/03/08/news/companies/countrywide_FBI/index.htm?postversion=2008030810

Will our Mr. Orange man be aking a debut on the perp walk list?
Ann says:

March 9, 2008 at 4:23 pm

On the phantom bidders,

If you’re not giving list, and are planning on make an offer 10% off or more list, I say come up with your best offer, tell your agent that’s it, then if they start talking about other bidders, phantom or otherwise, it doesn’t matter.

Sometimes there really are other buyers out there who want the same house you want, there is always the best house or value in a given neighborhood. But again, it shouldn’t matter IMO.
skep-tic says:

March 9, 2008 at 4:44 pm

#46

I’m sure there are realtors who wouldn’t hesitate to draft a fake bid, but IMO it’s much easier to suggest casually that there’s another bid when there isn’t. Drafting a fake bid is another step in the fraud direction, and I would think that many agents would hesistate to take it this far (even if it would be difficult to prove fraud ultimately).

I admire the discipline of those who suggest they would never raise their bid, but this is a difficult approach to take, especially if you are lowballing. The seller is going to be reluctant to sell to you as it is with the low bid, and if you give the impression that you are not willing to negotiate at all, the seller may just give into his initial inclination to brush you off. Obviously this depends on whether the seller really needs to sell and whether you really need to buy (e.g., if you are moving to a new area because of a job). The point has been made here several times that there is a cost to flaunting your relative bargaining power…
skep-tic says:

March 9, 2008 at 4:46 pm

… that said, avoiding a bidding war for a house makes sense.
Punch My Ticket says:

March 9, 2008 at 5:05 pm

skep-tic [66],

The seller is going to be reluctant to sell to you as it is with the low bid, and if you give the impression that you are not willing to negotiate at all, the seller may just give into his initial inclination to brush you off.

That’s fair comment, so you don’t need to be gruff about it. When you hear something like this, tell your agent or the listing agent that you’ll consider your options and keep quiet. Both know that you’ve looked at other houses, so “considering your options” could mean going higher here or going elsewhere.

I understand you’re worried about looking like a hardass. You should be just as worried about looking like an idiot who would bid against himself. If they’re bluffing, they will counter. If they do have another offer in hand, you may lose the chance but keep in mind that, against another real bidder, you probably have at best a 50-50 chance anyway.

It’s a difficult situation, but in the current climate the odds are in favor of letting the seller stew. IMHO.
Clotpoll says:

March 9, 2008 at 5:23 pm

bath (21)-

Never too early to begin a relationship with a good agent. How well that agent sticks with you over time will be the litmus test of quality. As long as you do your part to stay in touch, a good agent should not mind working with you over a long period of time. My feeling is, I need business next year- or in two years- just like I need it today, so why ignore people who just have a longer timeline?

It’s also not rude to ask for recommendations/referrals. You’re holding a job interview, and potential agents should treat it as such. If they don’t, that should tell you a lot.

I think you should also let any potential agent know exactly what your personal history and views on the market are. Any agent with a brain should be on the same page with you by now…and no matter what, any comebacks they give you will furnish a great deal of insight into their negotiating approach, general business sense and ability to think on their feet.
Clotpoll says:

March 9, 2008 at 5:26 pm

Cindy (26)-

“Mind you, I have no idea what any of it MEANS – I just like the analogy of a race horse and the whole starting with $1,000 deal (I’m very visual.)”

Cindy, I think you understand exactly what’s up with this stuff.

It’s very easy to overthink & get caught up in arcana. It IS a damn horse race…take a pile of loot, and grow it as fast as you can.
Clotpoll says:

March 9, 2008 at 5:27 pm

Disclaimer: I am also a person who generally can blow out a day’s bankroll at the track by the post parade for the third race.
Clotpoll says:

March 9, 2008 at 5:30 pm

gary (27)-

No. Some mid-major big man would kick Eddy Curry’s a$$, Zack Randolph would treat the 3-point line as though it were a 10,000-volt electric fence…and that’d be all she wrote.
Clotpoll says:

March 9, 2008 at 5:32 pm

Cindy (28)-

“Money? Sanity? I’ll chose sanity every time.”

I’ll take mine in unmarked $20’s. Lost my mind a long time ago.
Clotpoll says:

March 9, 2008 at 5:33 pm

skep (31)-

No.
Clotpoll says:

March 9, 2008 at 5:38 pm

Rich (37)-

Good luck. Your approach is a sound one; what someone else offers shouldn’t cloud your own valuation.
BC Bob says:

March 9, 2008 at 5:44 pm

Labeling a candidate a monster seems like child play compared to BB’s mentor?

“Zimbabwe’s Mugabe calls rival Makoni a “prostitute”.

http://www.polity.org.za/article.php?a_id=127613
njrebear says:

March 9, 2008 at 6:20 pm

I have my sights set on two townships. My realtor doesn’t have MLS access to the listings in the second township. Can i ask another realtor represent me in the second township?

Thanks in advance.
Cindy says:

March 9, 2008 at 7:02 pm

Clotpoll (71)(73)

The world is a crazy place. I found the safest, most secure job I could – you are a realtor. I like to watch horse races-you bet on them. But here we are -I’m being educated on the economy – you are one of my unwitting teachers. And as for

“I’ll take mine in unmarked $20’s. Lost my mind a long time ago.”

Clotpoll….. You lived in West Hollywood.
And you have lived to tell the tale. Of course you’re a little crazy…..I live in FRESNO – now that’s crazy too.
spam spam bacon spam says:

March 9, 2008 at 7:11 pm

re my friend and her phantom “other offer”…

She raised her offer to “$1,000 over whatever the other offer is”.

The sellers accepted (I forgot to ask price) and are now adding hair to the deal by adding contingencies (are they really that f@#$%ed up?), but my friend has met these “new, other” requirements, but of course, not without the stress.

I gotta say, the fact that people are comparing buying real estate to being as painful and nasty as buying a car says a lot…and none of it good.
njpatient says:

March 9, 2008 at 7:13 pm

I’m at B&N in the RE section – titles:
“Flipping Houses for Dummies”
“Rent to Own”
“Goldmining in Foreclosure Properties”
“Nothing Down for Women”
“Make Money [!] In Real Estate Tax Liens”
“”Make Money [!] On Foreclosures”
And my favorite:
“How to invest in Real Estate With Your IRA & 401(k)”
spam spam bacon spam says:

March 9, 2008 at 7:17 pm

We bought in 2K…we were first to see our house when it was listed, first with full price offer, and there were 3 other offers within 1 hour. Let’s just say it was a sellers market. :)

However, we refused to play the “other offer” game and walked out of houses right in the middle of viewing when told to there were “other offers in or coming in”…

So do offers have to be “offically logged” somehow? I mean, what is this that fiddy cents says:

Tell the Realtor you’re going to inquire about the existence of the “Other Offer” under their Code of Ethics Section 1-15. You don’t need to see the particulars of the offer, you just need to verify that it exists.

How do you do this?
spam spam bacon spam says:

March 9, 2008 at 7:20 pm

So, to continue my question at #81, if I gave an MLS listing, could an agent tell me if there is an offer on that property?
Clotpoll says:

March 9, 2008 at 7:29 pm

punch (46)-

Exactly.
Clotpoll says:

March 9, 2008 at 7:31 pm

Fiddy (48)-

“The last thing a working Realtor wants is censure from their local Board.”

Fiddy, I’m looking down the barrel of censure from my own board. If I am censured, I may use it in my personal marketing.
Clotpoll says:

March 9, 2008 at 7:35 pm

Rich (59)-

Winner’s curse.
Clotpoll says:

March 9, 2008 at 7:36 pm

bairen (49)-

I don’t even know what you do, but I’m sure everyone who does it is a crook.
Clotpoll says:

March 9, 2008 at 7:38 pm

“Will our Mr. Orange man be aking a debut on the perp walk list?”

More important, how will we be able to tell where his skin ends and his jumpsuit begins?
Clotpoll says:

March 9, 2008 at 7:42 pm

Ann (65)-

Stop making so much sense.

You also have to remember that when you got into this, you actually wanted to buy a house. That does not necessarily describe everyone here.

A few sharp sellers will deliberately underprice their homes to stimulate offers. I try to get every seller I work with these days to do it; surprisingly, many of them actually take my advice.

Sometimes, the most attractive homes- with the best prices- attract multiple offers. Go figure.
Clotpoll says:

March 9, 2008 at 7:44 pm

I’ve said it before: you’d be amazed to see how many properties draw multiple offers these days…and none of the offers turn out to be at the asking price.
Clotpoll says:

March 9, 2008 at 7:46 pm

Punch (68)-

“…in the current climate the odds are in favor of letting the seller stew”

Exactly. Again.
Clotpoll says:

March 9, 2008 at 7:49 pm

BC (76)-

Hillary IS a monster. And, I wouldn’t back away from that statement in a century of Sundays.
Clotpoll says:

March 9, 2008 at 7:50 pm

rebar (77)-

Yes.
Clotpoll says:

March 9, 2008 at 7:53 pm

spam (79)-

“She raised her offer to “$1,000 over whatever the other offer is”.

Uh oh…
BC Bob says:

March 9, 2008 at 7:53 pm

Clot [91],

I actually thought the statement was a compliment. After all they describe her as a monster trader at the CME.
Clotpoll says:

March 9, 2008 at 7:54 pm

spam (81)-

“How do you do this?”

When you find out, would you let me know?
Clotpoll says:

March 9, 2008 at 7:58 pm

BC (94)-

Hey…”monster truck” is a compliment, too!

But to call your opponent a prostitute?

I’m beginning to like this Mugabe guy.
BC Bob says:

March 9, 2008 at 7:59 pm

F—ing hilarious. I typed in Bernanke, Bergabe on google, yes bored tonight, and the first two links were from the NJRER. You wonder why the site crashed on Fri?

http://www.google.com/search?hl=en&q=bernanke%2C+bergabe&btnG=Search
Clotpoll says:

March 9, 2008 at 8:03 pm

BC (97)-

Flip on ABC. Oprah has a game show that- unless I’m missing something- seems like a real-life version of Brewster’s Millions.
BC Bob says:

March 9, 2008 at 8:04 pm

“I’m beginning to like this Mugabe guy.”

Clot,

Ditto. A modern day Dilinger. However, he doesn’t need a bank.
PA says:

March 9, 2008 at 8:09 pm

The FBI should investigate this: http://www.nj.com/news/ledger/jersey/index.ssf?/base/news-9/1205041022201800.xml&coll=1

The local guy obviously has no interest.
BC Bob says:

March 9, 2008 at 8:11 pm

Clot [98],

Having too much fun watching Japanese housewives puke. What is Brewster’s Millions?
Jonnyboy says:

March 9, 2008 at 8:23 pm

njpatient [25]…for all but the best of the best I agree. To paraphrase a quip in The Bogleheads Guide to Investing:

Systematically save and invest a part of each paycheck in accordance with the asset allocation plan (stock/bond/etc.). The earlier you start, the richer you become. Invest most or all of your money in index funds. Keep your costs of investing (fees) and taxes low. Don’t try to time the market. Tune out the noise, rebalance your portfolio when necessary and stick with your plan!

…do this (with a financial planner as appropriate) and over time you’ll beat 80% of the ‘professionals’ out there.

“When someone buys or sells an investment, the broker makes money, the brokerage house makes money, and 2 out of 3 ain’t bad”
bairen says:

March 9, 2008 at 9:20 pm

#86 Thanks Clot.

Note I said most, not all. And I never accused any of them of illegal activities.

It’s amazing how many have “a mtg guy that can take care of me”, told me to take out a home equity loan before I listed my place so I could have a down payment, used “You’re not ready to buy”, “Real estate only goes up”, told me it’s cheaper to rent then own (note even after the price drops it is still about $800 a month cheaper to rent.

It makes one a bit cynical and suspicious.
njpatient says:

March 9, 2008 at 10:59 pm

Ann
“I say come up with your best offer, tell your agent that’s it, then if they start talking about other bidders, phantom or otherwise, it doesn’t matter.”

If it is a phantom bidder, then you’ve spent your last penny for no reason.
njpatient says:

March 9, 2008 at 11:27 pm

“What is Brewster’s Millions?”

A great flick that should be on TBS at 2am far more frequently
jcer says:

March 10, 2008 at 12:22 am

I recently went under contract on a home and think I was victim to the phantom bidder(s). I gave a best and final and the seller accepted, I’d be pissed if I found out my renovation money went to the seller for no reason. Some realtors are very shady, there really should be transparency laws regarding this kind of thing, bidding in a rigged auction seems fraudulent and probably illegal.

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