Archive for the 'Living in Montclair' Category

A few weeks ago, The New York Times ran an Op-Ed piece called “The Death of the Fringe Suburb.” The author, Christopher Leinberger, discusses the collapse of outer-ring suburbs and return to popularity of urban and inner-suburban housing. As a New Jersey Realtor, I feel sadness and concern about the decline of any housing market. I find it fascinating, though, that this trend–occurring in markets all over the country– is a total reversal of the national post-WWII housing shift from cities to suburbs.

Back in the 1950s, cities emptied out as a car and a backyard came to exemplify the American dream.  In succeeding decades, McMansions took root in exurbs, as homeowners sought more and more house on more and more land. According to Leinberger, demand for this type of housing has collapsed and will not recover, due to generational shifts. Baby Boomers (born from 1946-64), are retiring at exactly the same time as Millenials (born from 1979-96) are ready to strike out on their own; neither group is looking for a large house in outer suburbia. Boomers are downsizing from their suburban homes, and Millenials tend to favor urban environments, both for the cultural attractions and the convenience of not needing a car.

Leinberger cites Pasadena, CA and Bellevue, WA as examples where mixed-use developments with good public transit access have been built where strip malls once stood. He also calls for greater public investment in bus and light-rail systems, bike lanes, and pedestrian walkways. His suggestions would provide jobs and help the environment, both of which the U.S. could really use.

For those of us living in Montclair, Maplewood or South Orange, we are fortunate to have much of this infrastructure already in place.  For those who are not, would you give up your 2 acres for a smaller lot and a shorter commute?  Would you trade your Olive Garden for Osteria Giotto? How about your Multiplex for the Wellmont Theatre?

I’ve been reading a lot lately about our national housing crisis, and there are definitely some sobering statistics out there. According to a recent article in The Wall Street Journal, home ownership is falling at the fastest rate since the Great Depression. There is a silver lining, though: now is a really good time for renters to buy a home.

Jack Hough, the author of the WSJournal article, explains that because house prices have fallen so dramatically since 2005, the ratio of house prices to yearly rents is shifting in favor of buying. He compares a house’s price/rent ratio to a stock’s price/earnings ratio; in both cases a lower ratio means that more income can be generated for the price paid. And the price/rent ratio has been dropping steadily over the past several years.

Most first-time home buyers are primarily concerned with getting a  mortgage, and here too, the numbers are in their favor. The 30-year mortgage rate is currently just over 4%, almost a record low. Mortgages are not as easy to obtain as they were during  the housing bubble, but qualified applicants (those with a job, a good credit rating and enough cash for a down payment) will be rewarded with low monthly payments.

Here’s a current example of a 2 bedroom “rent” option in Montclair vs. a 2 bedroom “buy” option.

• RENT: 18 Baldwin Street. 2 bedrooms, 2 bathrooms. Rent: 2300/month
• BUY: 50 Pine Street. 2 bedrooms 2.5 bathrooms.  Mortgage: $1050, property tax $695, HOA fee $225 = $1970/month

The bottom line for renters: now is the time to take the plunge.

Driving around town this past week, I’ve seen a huge number of Montclair homes that were hit hard by the snowstorm of October 29. Drooping power lines and downed trees are unfortunately a common sight these days. Power lines are obviously a matter for PSE&G to deal with; trees, however, may be your responsibility.

If one of your trees falls on your own property, it is your responsibility to get it to the curb; the town of Montclair will then remove it for you. Any damage to your home is also your responsibility–call your insurance company.

But what if a neighbor’s tree falls on your property? In an article on the website Houselogic.com,  DC-area author Ann Cochran explains that you should still contact your own insurance company.  The cost of removing it is your neighbor’s responsibility only if you can prove that he knew that the tree was at risk of falling (due to disease, e.g.) and did nothing about it. In the case of a freak snowstorm, this is unlikely.

The same logic applies if one of your trees falls onto your neighbor’s property. Cochran recommends doing nothing until you hear from your neighbor’s insurance company. Removing the tree is your responsibility only if your neighbor can prove that you knew it was a hazard and did nothing about it.  Having said that, it’s always neighborly to offer to remove the branches – even if legally, it’s not your responsibility.

Property damage is very upsetting. Knowing your rights and responsibilities as a homeowner is a good way to prevent it from escalating into a neighborhood dispute.

For all homeowners tired of advice  from realtors on how to sell your home, here is something different–a list on how not to do so.

Ten Things Not to Do When Selling Your Montclair Home

1. Price your home with “room to negotiate.” Sellers think that the more they ask for, the more they will get; study after study has shown that this is not the case. It is ultimately the buyer, not the seller, who decides the price. Pricing your home “slightly higher than what it’s worth” will only serve to keep potential buyers from even looking at your house.

2. Take too long to respond to an offer. Potential buyers read a lot into your actions; they will think you are not interested in their offer and thus turn their attention to other prospects.

3. Refuse to counter a low-ball offer. You can’t take it personally; this is a business transaction. Come down a little bit in your asking price just to keep a dialogue going. And if another offer happens to come in, you now have some leverage on both ends.

4. Follow buyers around, pointing out your house’s charms. Buyers need to be able to visualize themselves and their belongings in your house. They need to make an emotional connection first; your chatter is a distraction.

5. Contact buyers directly. There are too many opportunities for miscommunication and misunderstanding if you do so. This is what real estate agents and lawyers are for.

6. Convince yourself that it’s not worth painting the house because the buyers will want their own colors. This is a classic case of being penny-wise, pound-foolish. If your goal is to sell your house, remember that you only get one chance to make a good first impression. A neutral color and a fresh coat of paint are always best.

7. Refuse to address home inspection issues because your house is “as-is.” If  problems such as mold, asbestos or termites are discovered during an inspection, the buyers will expect you to fix them; In this market, with so much inventory to choose from, buyers do not have to accept a house with major a safety issue. Moreover, once a problem is discovered, you are legally required to disclose it to all potential buyers in the future.

8. List your house as an “office exclusive.” Unscrupulous agents may try to convince you that only the agents in their particular office are trustworthy; this is an attempt to keep other agents from getting the sale (and the commission). Obviously, the more agents trying to sell your house, the better – go with an agent who will “multiple list” your house.

9. Make your house difficult to show. Many homeowners are conflicted about selling, so they limit the days/hours that agents can get into their home. If agents can’t show your house, they can’t sell it.  Your house must be competitive not only in price and condition but also in ease of showing.

10. Try to conceal problems you know exist. First of all, this is fraud. Secondly, whatever the problem is, it will ultimately be found. A freshly-painted basement, for example, immediately suggests to a home inspector an attempt to cover up water damage.