Federal Action Key to Recovery, Broker Says

With Congress close to enacting a stimulus package to spur the economy, James M. Weichert, president and founder of Weichert, Realtors®, one of the nation’s largest privately held real estate companies, reiterated his recent call for a federal tax credit or other incentive for home buyers.

Such action, he said, would speed economic recovery and help avert a recession. “Every home sale triggers a demand for goods and services that ripples through virtually every segment of the economy,” Weichert said. “It is my fervent hope that as our lawmakers in Washington focus on economic issues, they will act to directly encourage home buying through a tax incentive. As the single largest segment of the U.S. gross domestic product – accounting for 33 percent of all U.S. economic growth in the past several years – housing historically has been the powerful engine that drives economic prosperity. Given swift and appropriate legislative action, the housing industry can lead the way to both short- and long-term recovery.”

The economic repercussions of a home sale begin almost immediately, Weichert said. In the interval from contract signing to closing, home buyers call upon a wide range of service suppliers that typically include home inspectors, termite/pest inspectors, mortgage lenders, appraisers, title companies, insurance companies, and lawyers. When home inspections turn up problems, a handyman is employed to do fix-ups. On moving day, both parties in the transaction will need truck rentals or moving services. Even the state in which the home sale takes place benefits, as the state government receives income from the real estate transfer tax.

Citing National Association of Realtors® (NAR) chief economist Lawrence Yun, Weichert said, “Based on the income of service providers alone, the sale of a $417,000 home generates $37,500 in direct economic activity, or approximately nine-percent of the sale price.

The nation’s economy continues to benefit after the new homeowner moves in. First-time buyers may go to a giant home center or local hardware store for new door locks, paint supplies, and maybe a power lawn mover. They may have carpets cleaned or replaced, and hardwood floors refinished. They’ll need blinds and window treatments and may splurge on new appliances, kitchen countertops, furniture pieces, and any number of other items.
Not surprisingly, trade-up buyers spend even more. Weichert said that it’s not uncommon for trade-up buyers to do high-end kitchen and master bath renovations and spend thousands of dollars on adding a deck or upgrading landscaping. Moving into a larger home also requires more furniture and accessories.

A report published in 2005 by the National Association of Home Builders (NAHB) found that in the first 12 months of ownership the typical buyer of an existing home spends $6,540 on home-related items, while new-home buyers average $8,642 – figures that would run higher today.
Housing’s economic impact is even more apparent when you look at the new-construction industry itself, which not only provides employment for the carpenter, plumbers, electricians, and others who work on the new home, but also promotes job growth in industries that produce and distribute building materials, heating equipment, and other home-related products. According to that same NAHB study, building an average single-family home generates 3.47 jobs and $82,269 in tax and other government revenue.

Weichert said, “While the President and Congress are to be applauded for raising the conforming mortgage loan limits in their stimulus package, a tax credit for home buyers would provide an added incentive for the consumer to act upon the many exceptional buying opportunities in today’s market and, in so doing, invigorate the economy.”

Call your Blogger, Stephen Bornet, for more information - - cell: 646 734-8525

One Broker Doing Well!

Weichert Capital Properties & Estates (your Blogger's company), the luxury-home division of Weichert, Realtors®, recently announced that 2007 proved to be yet another prosperous year. Despite dealing with a challenging real estate market through the year, Capital Properties & Estates eclipsed the total dollar volume sales it generated in 2006. The company also experienced its best year ever for sales of $3 million-plus listings.

“We are very pleased with how 2007 turned out for the division, particularly in light of the performance of the real estate market as a whole,” said Roger Christman, vice president of Weichert Capital Properties & Estates. “The continued annual success of Capital Properties & Estates is a testament to our exceptional team of highly-skilled individuals and reaffirms that luxury homes do sell in a timely manner when priced appropriately.”

In 2007, Capital Properties & Estates increased its national exposure as a result of the continued growth of the Weichert network of companies. Working closely with both company-owned offices and offices of Weichert Real Estate Affiliates, Inc., the franchise arm of Weichert, Realtors, Capital Properties & Estates enhanced its presence in the luxury-home markets of Pennsylvania, Southern New Jersey, North Carolina and South Carolina.

Weichert Capital Properties & Estates’ highly personalized approach to marketing multimillion-dollar properties has kept the company at the forefront of the high-end housing market. Listed as one of the most prestigious real estate companies by the 2007 Luxury Brand Status Index (LBSI) survey, Capital Properties & Estates clients have included Wall Street financiers, top corporate executives, successful entrepreneurs, and celebrities from sports and entertainment.
Prospective buyers worldwide can click onto the Capital Properties & Estates’ Web site, weichertcapital.com, to access virtual tours of select properties that provide 360-degree perspectives. Visitors can also opt to take an “audio tour” on select properties, in which extensive photos of the luxury home are synchronized with a voice-over that walks the visitor through key rooms, highlighting unique details and special features.

Weichert has nearly 18,000 sales associates in more than 500 company-owned and franchised sales offices in key markets throughout the U.S. A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance.

Opportunities For First-Time Homebuyers

Purchasing a home for the first time marks a major milestone in a person’s life. James M. Weichert, president and founder of Weichert, Realtors, wants those thinking about buying a home to know that the current market offers one of the best times in history to get in to real estate.

Interest rates remain at historically-low levels, home prices continue to be attractively affordable, there is a large supply of homes to choose from, and despite the media-driven perception, there is plenty of financing available for qualified buyers. While these factors make it a great time to purchase a home for anyone, there are a handful of reasons that make now an opportunistic time particularly for first-time buyers.

“Buying your first home is a life-changing occasion and symbolizes the realization of the American dream,” said James M. Weichert, president and founder of Weichert, Realtors. “Right now is a great time to check out the market and learn about the great opportunity that exists to become a homeowner.”

With no home of their own to sell, first-time homebuyers get to take full advantage of the cost savings offered in today’s affordable market without having to deal with any loss of equity that an existing homeowner might encounter.

First-time buyers also have a great deal of flexibility and can pursue a wide variety of housing options. Those purchasing for the first time typically have immediate access to their assets to allow them to move quickly when they find the home that is right for their needs. Often with no time constraints of their own, first-time buyers can also accommodate sellers who need a quick closing or can patiently wait should a seller need several months before they can complete the transaction.

The plentiful inventory of homes on the market today (above average in Stamford) has created strong competition among those with a house for sale (buyers have to lower prices). As a result, many builders and sellers are offering all kinds of incentives to help their homes stand out such as offering to pay mortgage points and fees, providing a home warranty or free moving services, including furniture or big-screen televisions with the home or even throwing in a tropical vacation. This increased competition also makes it somewhat easier for buyers to negotiate with sellers.

For both first-time and repeat buyers alike, purchasing a home continues to be a sound long-term investment. According to the National Association of Realtors (NAR), on average, the value of a home nearly doubles every 10 years. With the typical first-time buyer often trading up several times over the course of their lifetime, buying a home now offers a great way to build up equity they can reinvest in to a larger home down the road.

First-Time Homebuyers: A Gameplan

Today’s buyer’s market offers a tremendous opportunity for those wishing to become a homeowner for the first time, according to Weichert Capital Properties & Estates. Home prices are extremely affordable, there are plenty of homes to choose from and interest rates remain historically low. (Obviously, take everything with a grain of salt...and apply to your own neighborhood.)

When you consider the fact that first-time buyers can take full advantage of the cost savings offered by today’s affordable prices, it’s no wonder more than 2.5 million people bought a home for the first time in 2007, according to the National Association of Realtors (NAR).
Still, while it must have been clear to so many that the current market offered a great time to realize their dream of owning a home, most probably had the same initial question: “Where do I start?”

Weichert, one of the nation’s largest privately held real estate companies, offers several steps first-time homebuyers can take to get the ball rolling:

Location, Location, Location - The best place to start is by creating a list of the towns or specific communities where you would like to live. Take in to account factors such as your commute, proximity to family, as well as the amenities and activities available in each location. If you aren’t familiar with a location, consider purchasing an area map or take a “Sunday drive” to get a feel for the town.

“Windows” Shop – NAR reported that 87 percent of first-time buyers used the Internet during their search in 2007. Start by looking online to get an idea of what types of homes and features appeal to you. Would you like a townhouse or a single family home? Do you prefer a ranch over a split-level? Do you want a home with a brick exterior or siding? Getting a sense of the variety of options available and what you are interested in will help simplify your search later on.
Determine What You Can Afford - Once you have an idea of where you wish to live and the features you like, the next course of action should be to figure out your price range. Many real estate Web sites such as Weichert.com offer “affordability and payment calculators” to give you a general sense of what you could afford. For a thorough analysis, however, first-time buyers should sit down with a mortgage professional, such as a Gold Services Manager from Weichert Financial Services, to determine exactly how much they will be approved to borrow from a lender.

Real Estate 101 – Before going out and seeing homes, many people find it reassuring to get familiar with the overall real estate process. There are a number of great books, as well as countless online resources, that offer a good overview, First time buyers might also consider attending a home buyer seminar to learn more. Weichert, Realtors offers a free seminar designed specifically for first-time buyers each month in all of its company-owned offices.
Finding the Right Agent – Now that you have a general understanding of real estate and what you are looking for, it’s time to find a professional who can show you properties that meet your specific needs. The sales associate you select can also continue to educate you on the overall real estate process and provide you with valuable information on the local market.

Weichert has nearly 18,000 sales associates in more than 500 company-owned and franchised sales offices in key markets throughout the U.S. A family of full-service real estate and financial services companies, Weichert helps customers buy and sell both residential and commercial real estate, and streamlines the delivery of mortgages and home and title insurance. For more information, contact Stephen Bornet, your Blogger and a Weichert sales associate, on his cell: 646 734-8525.