…. or are you just wasting everyone’s time with an overpriced home? 
I don’t know why ANY home seller would put themselves thru the pain and agony of trying to sell in this market unless they REALLY REALLY want or need to sell. Well, I do know the answer but it just pissed me off a little bit. Read more »
4 open houses over 4 weeks, I know it’s not a scientific study, but I already know the answer to the question of “Do open houses work?” 
Back in the day when I was a newbie, I did about 40 open houses a year and it was a good prospecting tool and to help build my database of potential buyers and even some sellers. Selling the house was Read more »
RENT or Rent to Own in Desirable Woodmill Pond section of Gloucester Twp, 3BR, 2.5 Bath, LR, DR, family room, laundry room, breakfast bar in Kitchen, one car garage with electric. This home has Read more »
It seems to me that people get caught up in looking for a lease purchase because they think that it’s somehow better than renting…. in most cases, and this is just my opinion, it’s NOT. Maybe it makes them “feel” better than renting?
The other problem I see in the market today is sellers who can’t sell thier property, decide to rent or lease purchase without knowing all the responsibilities of being a landlord. It’s not easy being a landlord and most home sellers don’t know what they don’t know….this creates all kinds of tenant headaches and potential disputes…. maybe I’ll cover that in the next blog article 🙂 In the mean time, see below my current list of affordable rental homes in South Jersey that might be a good alternative to a lease purchase.
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I’m sure I’ll think of several more common mistakes as soon as I’m done typing this 🙂 As a full time real estate broker in South Jersey, I see this kind of thing all the time as I list and sell homes. So here they are, in no particular order….
Some people are really crazy, but when buying a home in South Jersey I think many people might qualify as temporarily insane! Everyone wants a good deal, but no one seems to know how to define it. If you don’t take the time to define it, how will you know when you got it? 
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This is real estate 101… for the first buyer’s in the crowd!
Before I get started, let me first say how important first time buyers are to the south jersey real estate market and to ANY real estate market for that matter. With out first time buyers, move up home sellers can’t move up. It’s estimated that every time a first time home buyer purchases a home, there are FIVE subsequent transactions. Bottom line… that FIRST home transaction sets off a chain reaction of home sales and economic activity…. well, it’s a beautiful thing 🙂 
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Hello my Facebook buddies…..We all like our friends, right? So here are 6 easy steps on how to take care of your friends who are looking to buy a home in South Jersey… and how to send a referral to your Favorite Realtor…… uhmm, that’s me…. and of course I’ll make sure they get the best service, advice and guidance. 
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When you buy an house, how will you KNOW whether you got a good deal or not? A commom misconception is to see how much the seller discounted the asking price and then decide if that’s a “good” discount or not. I’m not sure how you magically guess the appropriate discount to qualify for a “good” deal, but that’s another story. So, here’s a QUIZ….. Which house is a better deal?
1. House 1: Asking price $100,000, purchase price $80,000.
2. House 2: Asking price $100,000, purchase price $105,000.
3. Neither house
4. Both houses
5. All of the above.
If you answered 5, you’re clearly confused and probably shouldn’t walk while chewing gum. If you answered, house 1, what if the last 3 homes like house 1 sold for $50,000? Would you want to change your answer? If you answered house 2, what if the last 3 homes like house 2 sold for $150,000? Would that change your mind? If your answer is 4 that both houses are equally a good deals, technically, you really have no idea if either one is a good deal or not because you don’t know what other homes like it have sold for and that’s why the correct answer is 3, neither.
Homes are generally valued by the comparison approach which means we compare the house to similar homes that have recently sold…. called comparable sales or comps, for short. You absolutely, posititvely MUST look at the comps to know whether or not you got a good deal. You absolutely, positively must NOT use the seller’s discount from asking price as an indicator of whether you got a good deal. Of course, we’re ignoring that you and your family have to like the house, it has to fit your needs and make you happy…. if the house makes you and your family happy, you can disregard the comps althougher because it’s a GREAT deal.
Thanks for reading
Joe
If you’re at the clothes store, and you buy a shirt off the clearance rack for 90% off, is it a good deal? What if it doesn’t fit you or it’s just plain ugly !? I’ve been getting a lot of calls on a really low priced bank property from would be Investors looking for an investment property. So, is cheaper really better? Not if cheaper doesn’t “fit”your investment goals! 
I recommend thinking about what kind of property you want, then compare prospective properties to your “criteria” to see if they fit. This will help you objectively decide which properties are good for you and which ones aren’t and will set you apart from the investors wouldn’t know a good deal if it hit them in the face.
For example, would you prefer…..
1. Single home vs Townhome vs Condo vs multifamily?
This will affect the kinds of tenants you attract.
2. Monthly cash flow from rents or long term appreciation of property value?
They’re pretty much mutually exclusive, pick which one you want.
3. Location, location location???
of course this is a critical part of your investment plan.
4. Property Manager or No?
A location close to will be easier to manage yourself if you’re not going to hire a property manager.
5. Cash purchase or financing?
Cash allows you buy homes that are in poor condition so opens more opportunities. Financing makes your offer less competitive and there are many challenges with investor financing…. Be thorough in your pre-qualifying for an investor mortgage.
6. Price range?
How much cash do you actually have or how much mortgage can you actually get?
7. What’s the minimum rate of return that you require?
Cash on Cash is the first and easiest calculation…. Cash in divided by Cash out. $x rent after expenses divided by a $x purchase would be x% return.
Well, that’s it for now…. 2009 is a great time to buy investment property in South Jersey. Let me know when you’re ready to take the first step and together we’ll develop a basic plan to get you started.
Thanks for reading
Joe Montenigro
REMAX Home Team
