From the Otteau Group:
June Purchase Activity Slower, But Still Strong
Home purchase demand in New Jersey recorded another double digit-increase in June with a 10% rise in signed purchase-contracts compared to one year ago (YOY). Considering last year’s 17% increase in June-2012, home purchase demand has risen by 28% over the past 2 years. Focusing on 2013, statewide purchase contracts have now risen by 17% YTD.
Frist!
Segundo
Got my inspectors report back on house number 1. I wanted a dealkiller and he didn’t disappoint. I actually feel bad for these sellers because it is apparent to me that they got jobbed.
Since I should know on house 2 by COB today, I will either kill house 1 outright or put in a modification demand that will essentially be a 10% hit to sellers, and will likely kill house 1 anyway.
Earlier, I was miffed that I was spending so much on inspections. Not anymore.
Honestly seller will be pissed they have to start all over again. But if you gave them a copy of inspection they know what to fix and since market is not collasping they can most likely sell it to someone else for same price you paid except they are out a few grand fixing things and carrying house.
It is better for buyer and seller if the deal dies. Too much water under bridge.
Sometimes buyers get hung up on mold, absestos, crack in foundation then they go get quotes from “professionals” in the phone book quoting 10-35K and want it off house.
Meanwhile if deal dies it is better for buyer and better for sell. Seller can then get a mexican to rip and dump absestos, dry out house, spay mold, fill crack in foundation etc. and Next buyer wont see it.
Case in point during flood when I spent a god damm week in crawl space I notice in the corner that was dark there was a big crack with frankenstein monster rusty staples holding it together and was like WTF. Then when I shredded the original walls in Den’s bathroom, (Blue tile on sheetrock) guess what I saw same thing. Guess what in 1954 when foundation dried it caused two cracks. Who cares. Meanwhile I have to find a way to hide the second crack somehow as todays folks will use that 60 year old crack for leverage.
I say break the deal.
Comrade Nom Deplume, Halfwit dumbass says:
August 1, 2013 at 7:52 am
Got my inspectors report back on house number 1. I wanted a dealkiller and he didn’t disappoint. I actually feel bad for these sellers because it is apparent to me that they got jobbed.
Since I should know on house 2 by COB today, I will either kill house 1 outright or put in a modification demand that will essentially be a 10% hit to sellers, and will likely kill house 1 anyway.
Earlier, I was miffed that I was spending so much on inspections. Not anymore.
Oh c’mon Nom youcan’t say there was a deal killer and not elaborate.
Concerning yesterday’s discussion about the yardwork: where I rent now I do the weeding and take care of the lawn, and I don’t mind it much: I figured it was a good opportunity to practice on someone else’s property so I can get it right when I have property of my own. My landlord is quite lazy, but considering the lease is month to month, it’s a great situation to jump to buying a house, since I won’t have any time constraints to force my hand on something I don’t want.
If there was a yearly or bi-yearly lease, I probably would have moved already.
I saw this quote, “During a man’s lifetime, he will need one true love, two doctors, three dogs, 16 cars and 128 tires.”
Notice – Houses are not mention. They are a want not a need.
All year round rentals of houses tenant does weeding. Even on Winter rentals.
I know it is month to month, but usually it is only a true monthly rental when you stay only one month and it is furnished do you get the lawn service included.
Realtors annoy me over this. Tenants and Realtors dont understand the cost and effort in maintence of renting a single family home. It seems tenants like the concept but generally they let them run down.
Place I am renting realtor told me people pay more to rent a single family house over a condo. I am like a 1,300 square foot condo should rent more than a 1,300 square foot house and she is like people want backyard. I go I fully 100% understand on a summer rental yes. But a winter rental or year round rental why do they want to pay for lawnservice, do weeding, shovel snow and have to rely 100% on a landlord to come by for every minor outside issue
JSMC says:
August 1, 2013 at 8:40 am
Concerning yesterday’s discussion about the yardwork: where I rent now I do the weeding and take care of the lawn, and I don’t mind it much: I figured it was a good opportunity to practice on someone else’s property so I can get it right when I have property of my own. My landlord is quite lazy, but considering the lease is month to month, it’s a great situation to jump to buying a house, since I won’t have any time constraints to force my hand on something I don’t want.
If there was a yearly or bi-yearly lease, I probably would have moved already.
grim,
A realtor once told me that you can’t close on a house in NJ without obtaining a CO. Is that true? I’m thinking storm damaged houses are selling everyday now and there’s no way the buyers can get a CO.
Or is the CO required by the bank if you’re financing it?
Guy across the street from me bought a foreclosure without a CO. It didn’t even have the water turned on by the utility.
A CO would just be for a house that is substantially damaged. Part of being in the community program for flood insurance means your town identifies homes damaged in excess of 50% and tags them. For instance my neighbor down the blocks house got a huge sinkhole next to foundation. Her house was “red-tagged” with a condemned notice. Engineers etc. came by and town and FEMA and they verified foundation was safe, they filled in sink hole, got a sign off and she received a CO.
My home technically had ZERO sandy damage. I was not tagged by inspectors as damaged as from outside it looked ok and I refused the inspector from entering my house. “In-kind” repairs require no COs. However, technically I was supposed to get permits for plumbing and electrical work but no one got that as town was overwelmed.
Banks don’t really care about the COs so much. But if you are buying title insurance due to Sandy they are strict on open permits. I had a few on place I just bought no related to Sandy. They were all pre-sandy. Also they are opening and closing permits same day. For instance, prior owner had a new electric box, central air, and furnace installed as basement was flooded. I talked to building inspector and I said are we cool pre-closing. He said yep I inspected it. I go where are permits. He goes we are not filing permits till we can close them. So we are going to open and close permits same day sometime in late 2013. Every single person within a 3 mile radius lost their furnance, central air, electric panel etc. If I opened permits I cant close it would freeze all home sales for a year.
joyce says:
August 1, 2013 at 8:51 am
grim,
A realtor once told me that you can’t close on a house in NJ without obtaining a CO. Is that true? I’m thinking storm damaged houses are selling everyday now and there’s no way the buyers can get a CO.
How do you know it needs a CO? Being empty and winterized does not mean it needs a CO.
Brian says:
August 1, 2013 at 8:58 am
Guy across the street from me bought a foreclosure without a CO. It didn’t even have the water turned on by the utility.
Jobless claims rock it:
U.S. jobless claims drop 19,000 to 326,000
Most lenders require a co or cco.
Re: CO, banks don’t necessarily require one. It is not a state mandate, but varies by town. I just sold a house in Fair Lawn. They require one, and it is a PITA as they not only look inside, but property maintenance. I had to repair sidewalk damage by their trees. House was sold”as-is” as it needs work, but regardless, still needed full CO.
And it was a cash transaction…
Lack of CO does not stop a sale, it only stops someone from legally occupying the house. And since occupation is usually mandatory when financing a primary or rental property, a CO is defacto required by the bank. Occupation is also generally a requirement of the insurance companies, making insurance on unoccupied properties insanely expensive and as we all know, banks require you to carry insurance on their assets.
However, I’ve found it to be hit or miss on whether a bank actually asks for a copy of a CO, maybe they’re stricter now after the collapse? I’m sure any damaged homes that are being financed aren’t in traditional loans and the banks aren’t expecting them to be habitable. More likely they’re being purchased cash.
There are also many towns in in northern and western NJ that still don’t do COs, just the smoke detector/fire extinguisher check.
Guy from the town showed up and said hi I’m here to inspect the home for your CO. He and his family already turned on the water themselves, unpacked and were living in it.
House was abandoned for about two years….price started at $380k then finally bank sold it for $199K. DEP even came and tranquilized a Bear that was living under the deck at one point.
House was a total dump when he bought it. He completely turned it arond and it looks fantastic now.
13.JJ says:
August 1, 2013 at 9:11 am
How do you know it needs a CO? Being empty and winterized does not mean it needs a CO.
From MarketWatch:
30-yr fixed-rate mortgage climbs: Freddie Mac
The rate on the 30-year fixed-rate mortgage averaged 4.39% in the week ending Aug. 1, up from 4.31% last week, Freddie Mac said Thursday. One year ago, the 30-year averaged 3.55%. Interest rates have climbed in anticipation the Federal Reserve will curtail bond purchases later this year. The mortgage-buying giant said the 15-year fixed-rate mortgage edged up to 3.43% from 3.39%, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, up from 3.16%, and the 1-year Treasury-indexed ARM averaged 2.64%, down from 2.65%. “Mortgage rates rose slightly leading up to the Federal Reserve’s monetary policy statement this week,” said Frank Nothaft, chief economist at Freddie Mac.
Just looking at July contracts on GSMLS – Preliminary thoughts – Still look very strong.
I’d imagine the mortgage rates to start impacting the July contracts, and it doesn’t look to be the case. Still very strong numbers year over year.
Sellers on house 2 countered. We countered back. Very close so I’m optimistic.
JJ is right, it’s better for seller if we walk, and better for us as this house promised to be a headache.
[5] pain,
Maybe later.
N.J. residents must show ‘justifiable need’ to get permit to carry handgun in public, court agrees
http://www.nj.com/politics/index.ssf/2013/08/nj_residents_must_show_justifiable_need_to_get_permit_to_carry_handgun_in_public_court_agrees.html
You really cause it to appear so simple using your presentation however I come across this specific subject matter to become truly one thing i believe We would under no circumstances fully grasp. This indicates as well complex and also vast personally. I’m just looking ahead of time within your pursuing release, I’m going to make an attempt to find the hang than it!
[24] Brian,
Problem is, no one can show it. Don’t know if the law’s application was attacked or the law itself, but, as applied, it’s an impossible burden so it should have been attacked as a de facto ban.
10
My town requires it, don’t know about my lender. I closed and moved in on a temporary CO in 09. It was supposed to be thirty day temp CO for a condemned furnace.
I replaced the furnace immediately. I forgot about the CO, city came back a full year later and required me to get a permanent one including all inspections.
re # 26 – Not impossible there would be no permits if that was the case. There are around 1,500 carry permits that are not law enforcement or security guards in NJ. I for one wonder how many of those are politicians?
I would say you need forget the courts and move to elect people who will represent your concerns, the Legislature can pass a law to make it fog a mirror to get a permit if they like. However if you poll the general NJ population I would think most are against concealed carry or like the vast just don’t care to even show up for elections. Blame your neighbor for he is a dolt.
Oh the joys and expense of home ownership.
I have two zone HVAC, units were replaced during reno about 7 years ago.
I received an invoice yesterday for an annual maintenance contract from a local Heating & Air Conditioning service who did the maintenace work the last few years to previous homeowner. They want $470 for an annual contract to provide maintenance on my two HVAC systems. This does not include hot water heater just the HVAC systems and does not include Freon if needed. One HVAC system is $270 a year so there is a small discount for two.
Any opinions, I have no idea if this is really needed? I can change air filters myself. Are there really parts to be oiled or any kind of maintenance on the natural gas burners? This includes 24×7 emergency service although if we get hit again with another Sandy or disaster it would probably take weeks regardless of service contract.
Juice,
I tend not to participate in those types of coverages. One, because I am handy and can occasionally fix things myself. Two, because such contracts are usually priced poorly. For a 7 year-old system, you are probably better off paying for repairs a la carte. Maybe after 15 years, it might make sense, but price it against the cost for a new system. Also, sometimes those prices are negotiable. If you can eat up enough of the margin, it could be worthwhile.
Also,
Water heaters don’t need repairs. You simply replace them.
29
Probably not.
On a gas furnace, besides the filter there is nothing that needs to be maintained. Does the coverage include replacing any parts that do break, including the labor?
If so it is really an insurance policy. If its just to come out and take a look, it’s a crock.
For example, a blower motor replacement including labor is most likely in the $500 range. A control board could be three times that, depends upon the unit.
On the AC unit, the only concern is really the outdoor blower and the compressor. If the compressor goes and it is not under warranty you’re going to end up replacing it anyway.
#21
I wouldn’t imagine it would affect contracts yet as interest rates have just started rising, no one knows what the ceiling is, people are trying to buy now before they go up more. I think that sales will start to slow once the summer season ends and rates tick up even more.
I’m wondering what’s on the other side though: once rates go up and sales slow, who is going to keep housing sales at a brisk pace when kids today can’t move out of their parent’s basements? You can’t trade up if there is no one below you to sell to. We probably have 2 or 3 more years of a “traditional” housing market before it shifts suddenly to something that is actually sustainable to a majority of people under 40 living with their parents. God knows what that would be.
$470 a year to “maintain” the AC? That’s a waste of money. Read the fine print, I bet the majority of costly repairs are excluded as well as just the refrigerant.
Another blow to common sense and the rule of law. My justifiable need is the same one that the costume wearing badge holders have… In fact I have more of a need than they do because contrary to popular opinion, criminals tend to avoid the police and the police tend to show up after the crime’s already over.
24.Brian says:
August 1, 2013 at 11:13 am
N.J. residents must show ‘justifiable need’ to get permit to carry handgun in public, court agrees
http://www.nj.com/politics/index.ssf/2013/08/nj_residents_must_show_justifiable_need_to_get_permit_to_carry_handgun_in_public_court
Juice Box I need your expert advise. I had a new oil burner/water heater installed in primary house after Sandy and place I bought has brand new American Standard HVAC/Heat Pump and water Heater.
Neither places has a service contract. Both are under the free one year warranty.
What kind of service do I need for these units? The Condo has a brand new HVAC/Heat pump, installed March 2013 what kind of maint do you do? How long does it last? It also has an electric water heater brand new. Dont laugh Electric is pretty popular very close to beach. Few gas lines and oil tanks and flooding are not fun.
Main house they put a brand new Oil Burner/Hot water heater. No Separate Water Heater. All one unit. What kind of service does that need?
My house believe it or not had an oil burner/water heater installed 1955 with a transferable lifetime contract/maint deal. Everything free no matter how big a repair, 2 am emergency service, Heck even thermostats. Amazingly company never went out of business, honored contract. So Sandy came destroyed it and broke the contract. Now I have to figure out a service contract. Also it is brand new and much smaller than old unit, what is there to break. It came with one year free maint and service. I plan on making a service appointment a week or two before one year, but then by year two I guess I need a contract. No clue what it should cost.
Juice Box says:
August 1, 2013 at 11:55 am
Oh the joys and expense of home ownership.
I have two zone HVAC, units were replaced during reno about 7 years ago.
I received an invoice yesterday for an annual maintenance contract from a local Heating & Air Conditioning service who did the maintenace work the last few years to previous homeowner. They want $470 for an annual contract to provide maintenance on my two HVAC systems. This does not include hot water heater just the HVAC systems and does not include Freon if needed. One HVAC system is $270 a year so there is a small discount for two.
Any opinions, I have no idea if this is really needed? I can change air filters myself. Are there really parts to be oiled or any kind of maintenance on the natural gas burners? This includes 24×7 emergency service although if we get hit again with another Sandy or disaster it would probably take weeks regardless of service contract.
PSE&G kept sending me contracts that cover my heating unit. It’s a boiler, not a furnace. Details, found only on the internet, states that all parts in contact with water are excluded. WTF? Cross my fingers, original unit has not had a service call in 21 years.
Weil-Mclain Gold.
anyone with any experience or opinion on negotiating around a 50 year old septic system that is currently working with no problems? obviously I will have to replace this very soon if I buy. thoughts?
Mine hasn’t been touched since it was installed in 2004.
29.Juice Box says:
August 1, 2013 at 11:55 am
Oh the joys and expense of home ownership.
I have two zone HVAC, units were replaced during reno about 7 years ago.
I received an invoice yesterday for an annual maintenance contract from a local Heating & Air Conditioning service who did the maintenace work the last few years to previous homeowner. They want $470 for an annual contract to provide maintenance on my two HVAC systems. This does not include hot water heater just the HVAC systems and does not include Freon if needed. One HVAC system is $270 a year so there is a small discount for two.
Any opinions, I have no idea if this is really needed? I can change air filters myself. Are there really parts to be oiled or any kind of maintenance on the natural gas burners? This includes 24×7 emergency service although if we get hit again with another Sandy or disaster it would probably take weeks regardless of service contract.
(38) not necessarily. It all depends upon a lot of factors, including the grade of soil below. If the percolation rate was above and beyond what was called for, you may be in luck. May parents septic did not fail after 40 years. And it had only two laterals.
How often do you have to fill it with refrigerant?
34.grim says:
August 1, 2013 at 12:51 pm
$470 a year to “maintain” the AC? That’s a waste of money. Read the fine print, I bet the majority of costly repairs are excluded as well as just the refrigerant.
Xolepa,
In my 10 years of dealing with gas burning steam furnaces, my only repairs were a clogged pipe that was kicking off the safety valve. Cost me $100 to fix, when I could have done it with a pipe cleaner. Though I did get a valuable lesson from the plumber who taught me a ton on troubleshooting the boiler. The other repair was a faulty vent valve motor.
If you are adding refrigerant, then there is a leak somewhere in the freon lines. Not good.
My boiler is from the late 50s, early 60s, Hydrotherm 155k btu, runs like a champ.
Wanted to change it to a high tech condensing unit (Weil Mclain Ultra 3). My uncle, who is a big plumbing contractor, told me I was crazy to replace it if it were still working. The payback due to efficiency improvements is relatively minor, and would take a whole life of the boiler to recoup. Would make much more sense to just let it run it’s course and if it ever gives up the ghost, to go ahead and replace it. I doubt this thing is going to die anytime soon, cast iron fired boiler? There is essentially nothing to break.
Given the low price of nat gas, the payback of replacing a working system is very, very long. I did the math and the payback was on the order of 40 years, which basically sucks, since there is significantly more to break in a condensing unit, and I doubt any condensing unit will actually last 40 years.
So, this old one will run for another 20 years, and when it dies I’ll throw in whatever top of the line unit is available then.
That’s what I figured. My unit had some trouble cooling the house down on those hot days we recently had but I think it has more to do with the fact that I took out a large tree that shaded the whole roof.
43.Libtard in Union says:
August 1, 2013 at 1:15 pm
If you are adding refrigerant, then there is a leak somewhere in the freon lines. Not good.
Brian or it is not sized properly.
honestly you are better of saving the money from a service plan for future replacement or repair.
Brian –
Don’t do any contract, but get it fixed only when needed.
Even if you need to add coolant annually to get it to cool properly, this is a very cheap fix that allows you to delay replacing whatever needs replacing. The service call will cost you less than the annual contract.
Just make sure you replace any and all filters – we do it monthly on both heating and A/C systems (they’re separate).
Eventually something will totally die and then you just replace it.
Our simple forced air heating system is over 50 years old and still works, so we will replace only when needed. (of course no service contract)
$570 for an annual maintenance contract on an A/C system seems extravagant. That’s a major repair every year to break even.
fyi…..at minimum assume you need to empty once every 1-2 years at $250-300….also, does it have a gray water shunt (or whatever the f they call it?)….all of our laundry etc. is shot off the side of the house and kept out of the main system….
What is the condition of the evaporation field?
Did you get Bennett to come and check it out (i.e. dasuberinspektor)?
I would go with the septic company with the best ad slogan…..
We Are #1 in the #2 Business
It’s Sh!t To You, But It’s Our Bread and Butter
BearsFan says:
August 1, 2013 at 1:01 pm
anyone with any experience or opinion on negotiating around a 50 year old septic system that is currently working with no problems? obviously I will have to replace this very soon if I buy. thoughts?
Bear…..I think our landlord knows the owner of Apollo
I just called American Standard in the first 90 days the new owner can assume prior owners warranty for all repairs. It is ten year warranty. Unit is four months old so I am going to splurge. Costs $99 to transfer it.
.
daddyo says:
August 1, 2013 at 1:49 pm
$570 for an annual maintenance contract on an A/C system seems extravagant. That’s a major repair every year to break even
chi, thanks…my guy seems top notch and very local to area. He is the one raising major flags for me. concerned because based on where it is, there is only so much he can tell about the system, and there are no records of size of the components.
Can you hire a plumber to look at it with one of those fiber optic cameras they put in the sewer lines?
52.BearsFan says:
August 1, 2013 at 2:47 pm
chi, thanks…my guy seems top notch and very local to area. He is the one raising major flags for me. concerned because based on where it is, there is only so much he can tell about the system, and there are no records of size of the components.
jj (4)-
Buyers should never give sellers an entire copy of a home inspection report. That report was paid for by the buyer and belongs to the buyer.
But still you tell him everything wrong with house. So he knows what to fix. Everything else what is right with house is not important. The document is worthless anyhow if you dont buy house.
Scrapple n’Ricin says:
August 1, 2013 at 3:26 pm
jj (4)-
Buyers should never give sellers an entire copy of a home inspection report. That report was paid for by the buyer and belongs to the buyer.
Seems like nobody here has a maintenance contract for HVAC.
When I was buying my home I actually used HVAC and other maintenance after my inspection came back. I demand to see the maintenance records on the HVAC systems and got them because they had a maintenance contract. It also told me the home owner was meticulous in maintaining everything including my pool which was covered and could not be fully inspected. During final walk thru all documentation for all appliances and HVAC etc systems were neatly filed and annotated in accordion folders for my review.
So far so good after two whole months of not being a dirty renter. The only real problem I have the former owners believed in natural gardening and did not mulch or spray chemicals so I have to deal with a jungle of weeds. I need to hire some neighborhood kid to come by and chop down some of the overgrown stuff, I just don’t have time to roll up my sleeves and go all Tarzan.
I will have to read the fine print again on the HAVC contract. This is a “maintenance” contract, 2 inspections change filters, lube, twist some knobs etc so not sure if specific part replacement is covered.
good luck prying them away from stuffing their faces while twerking and being slovenly obese fools.
I do trust all of the ideas you’ve presented to your post. They are really convincing and can certainly work. Still, the posts are very quick for newbies. Could you please prolong them a little from subsequent time? Thank you for the post.
It sounds like a colonoscopy :(
Brian says:
August 1, 2013 at 2:53 pm
Can you hire a plumber to look at it with one of those fiber optic cameras they put in the sewer lines?
“We will continue to vigorously seek to hold accountable, and bring to trial when necessary, those who commit fraud on Wall Street,” Andrew Ceresney, the SEC’s co-director of enforcement, said in a statement.
http://money.cnn.com/2013/08/01/news/companies/tourre-goldman-verdict/index.html?iid=HP_LN
pull the other one
How a nice cold war trade for Snowden?
Last year there were 489 Russian Asylum applications of which 176 were approved, and another 430 application under Soviet Union (which no longer exists) of which 281 approved. From what I can tell this area is crawling with Expat Soviets. I am sure they could send back a few criminals for Snowden if they dug deep enough.
http://www.justice.gov/eoir/efoia/FY12AsyStats-Current.pdf
“You asked me if I was in the meth business or the money business,” White says to Jesse after closing an important drug deal. “Neither. I’m in the empire business.”
Why do I feel that Walter White would have made a great Realtor.
I wouldn’t trade the fat russian women from Orange is the New Black for him
Juice Box says:
August 1, 2013 at 4:31 pm
How a nice cold war trade for Snowden?
re # 65- That is actually Star Trek Captain Janeway
http://images.search.yahoo.com/search/images?_adv_prop=image&fr=moz35&va=Galina+%27Red%27+Reznikov
Internet humor on a Friday night.
Snowden should stand in the front of the crowd that greets Obama when he goes to St. Petersburg for the g-20 or any other visit. That would be hilarious on so many levels.
Brian [24];
How come no one ever asked the “Blame America First Crowd” what their “justifiable need” to burn a flag was?
Under contract on house 2. House 1 deal is dead. Gonna be some pissed off sellers in Birmingham, PA
This new house isn’t only geogeous and fully updated, it’s a Nompound with more flat, open yard than I know what to do with. There’s even a tennis court tho I think it too narrow to be regulation.
Nom [71];
Maybe singles width only (no doubles alleys)?
Congrats!
Yes congrats. Now you can think about moving again.