2009 Home Price Comparison Index

 

 

For Greater National Perspective on Real Estate Trends & Home Values

and/or to Obtain Local Market Interviews:

 

David Siroty     Heather Roberts    Kathleen Reynolds

Coldwell Banker Real Estate LLC    Coldwell Banker Real Estate LLC    CooperKatz & Co.

973.407.7199    973.407.5590    917.595.3031    

David.Siroty@coldwellbanker.com    Heather.Roberts@coldwellbanker.com    kreynolds@cooperkatz.com

 

 

 

COLDWELL BANKER REAL ESTATE RELEASES ANNUAL HOME PRICE COMPARISON INDEX FOR united states and SELECT international MARKETS

 

$2 Million Difference Between Four-Bedroom Homes In Most Expensive Market of La Jolla, Calif., and Most Affordable Market, Grayling, Mich.

 

Singapore Tops International List as Most Expensive Foreign Market; Salinas, Ecuador Most Affordable

 

 

PARSIPPANY, N.J. (Sept. 23, 2009) – The 2009 Coldwell Banker^®
Home Price Comparison Index (HPCI) released today found a price gap of more than $2 million between the most expensive and most affordable U.S. housing markets. In the annual comparison of similar 2,200-square foot homes in 310 U.S. housing markets, La Jolla, Calif. led the list as the most expensive real estate market in the country with an average home price of $2,125,000. Grayling, Mich., also known as the "canoe capital of the world," ranked as the most affordable market in America, where a similarly sized home costs $112,675.

 

La Jolla was joined on the most expensive list by 13 other California markets while Grayling was one of 20 Midwest communities on the most affordable list. Internationally, Singapore was the most expensive market for the same type of home, $1.9 million U.S. dollars, compared with Salinas, Ecuador, which at $69,375 U.S. dollars was the most affordable studied international market.

 

Differing from most housing reports that compare median prices, the annual Coldwell Banker HPCI, provides an apples-to-apples comparison of similar 2,200 square foot, four-bedroom, two-and-a-half bath homes in the United States, Puerto Rico, Canada and a sampling of countries/territories outside of North America where Coldwell Banker Real Estate has a presence.

 

"While price differentials are interesting to compare, I am most intrigued with the affordability levels now seen across much of the nation," says Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. "The four-bedroom, two-and-a-half bath home is one we deem 'aspirational' and usually purchased by move-up buyers experiencing lifestyle changes. Thirty percent of the markets show this type of home to be below $200,000, illustrating the opportunity to take advantage of price declines, interest rate levels and increased selection of homes. Encouraging these move-up buyers back into the market is a crucial next step toward helping to rejuvenate the housing industry and the overall U.S. economy."

 

 

 

A "Snapshot" of U.S. Home Affordability

Offering a "snapshot" of affordability across the United States, the Coldwell Banker HPCI evaluates average home values for select 2,200 square foot single-family homes with four bedrooms, two-and-one-half baths.¹ The cumulative average sales price of the four-bedroom homes surveyed in the 310 U.S. markets (including one in Puerto Rico) covered in the Coldwell Banker HPCI is $363,460.

 

Through the comprehensive HPCI section on the Coldwell Banker web site (http://hpci.coldwellbanker.com), prospective homebuyers and sellers can calculate what similar homes may be worth in other areas and gather preliminary intelligence about the affordability of housing from one market to another.

 

2009 Coldwell Banker
HPCI – Highlights and Top Market Lists

 

• Affordable and Attractive: In addition to Grayling, Mich., the following are interesting tidbits about the other nine most affordable U.S. markets:
  
  • Akron, Ohio ($121,885), won the All-American City award three times and is birthplace to the ice cream cone
    
  • Fayetteville, N.C. ($130,875), a historic city known for its strong military ties
    
  • Canton, Ohio ($131,867), birthplace of American professional football and home to the NFL Pro Football Hall of Fame
    
  • Detroit, Michigan ($132,000), America's automotive manufacturing and Motown music hub
    
  • Arlington, Texas ($138,775), home to the Dallas Cowboys' new stadium which will host the 2011 Super Bowl XLV, and the Texas Rangers' Ballpark
    
  • Macon, Ga. ($139,007), hometown to many legendary soul and blues acts like Otis Redding, and home of the Georgia Music Hall of Fame
    
  • Eau Claire, Wis. ($141,270), which has been named one of the 100 Best Communities for Young People by America's Promise in the past
    
  • Port Charlotte, Fla. ($142,750), which is minutes away from the Gulf of Mexico and setting to some of the country's best sunset views
    
  • Wichita, Kans. ($144,625), home to more than 30 museums and a haven for art-lovers, theatre-goers and golfers alike
    

 

• Low Cost to Homeownership: In total, there are 84 U.S. markets in which the sample home price averages under $200,000. The monthly mortgage cost for homes in this price range could average less than $600, and down payments could amount to less than $4,000.
  

 

• Luxury Living: La Jolla, Calif. heads the list as the most expensive real estate market in the country ($2,125,000), beating out its California neighbor Beverly Hills, where the average home costs $1,981,750. Greenwich, Conn., whose average price of $1,519,250 places it as the most expensive market on the East coast, followed by Boston at No. 7 overall. In total, 11 U.S. markets exceeded the $1 million average price for the surveyed home. Note: Manhattan in New York City was not included in the study because of the lack of comparable single-family homes.
  

 

• On Average: The overall national average price of homes in the 2009 Coldwell Banker HPCI is $363,401.
  

 

• Canadian Prices Reach Record Levels: Canada's brief market downturn is over, with record prices now seen throughout the resurgent market. Vancouver, BC leads the hot-again west coast at $1.17 million U.S. dollars for the studied home, nearly double that of nearby Burnaby BC at $611,243. Boomtown Fort McMurray at $593,340 surpasses Calgary as Alberta's most expensive market. Canada's largest city, Toronto, Ontario comes in at $766,643, while Charlottetown PEI remains the country's most affordable market, priced at $147,560 U.S. dollars.
  

 

 

• Most Expensive Internationally: The most expensive market outside the United States is Singapore, where an HPCI subject home averages $1.9 million U.S. dollars, ten percent lower than La Jolla. Coldwell Banker Real Estate compared a total of 57 markets in 29 countries outside of the United States, with those international home prices averaging $487,844 in U.S. dollars.
  

 

 

TABLE 1

The top 10 most expensive and most affordable surveyed U.S. markets overall in 2009 are:

Rank	Most Expensive	2009 Avg. Sales Price		Most Affordable	2009 Avg. Sales Price
1	La Jolla, Calif.	$2,125,000		Grayling, Mich.	$112,675
2	Beverly Hills, Calif.	$1,981,750		Akron, Ohio	$121,885
3	Greenwich, Conn.	$1,519,250		Fayetteville, N.C.	$130,875
4	Palo Alto, Calif.	$1,489,726		Canton, Ohio	$131,867
5	Santa Monica, Calif.	$1,460,912		Detroit, Mich.	$132,000
6	San Francisco, Calif.	$1,363,250		Arlington, Texas	$138,775
7	Boston, Mass.	$1,337,578		Macon, Ga.	$139,007
8	Newport Beach, Calif.	$1,315,505		Eau Claire, Wis.	$141,270
9	Palos Verdes, Calif.	$1,237,041		Port Charlotte, Fla.	$142,750
10	San Mateo, Calif.	$1,090,000		Wichita, Kans.	$144,625

 

TABLE 2

The most expensive and most affordable surveyed U.S. markets within each state in 2009 are:

 

State	Most Expensive	2009 Avg. Sales Price		Most Affordable	2009 Avg. Sales Price	Variance
ALASKA	Juneau	$375,667		Anchorage	$339,311	$36,356
ALABAMA	Huntsville	$267,314		Mobile	$183,696	$83,618
ARIZONA	Flagstaff	$385,057		Phoenix	$199,111	$213,373
ARKANSAS	Fayetteville	$216,125		Little Rock	$171,684	$44,441
CALIFORNIA	La Jolla	$2,125,000		Lancaster	$165,205	$1,959,795
COLORADO	Boulder	$622,000		Colorado Springs	$200,002	$421,998
CONNECTICUT	Greenwich	$1,519,250		West Hartford	$354,375	$1,164,875
DELAWARE	Wilmington*			$376,250
FLORIDA	Key West	$815,750		Port Charlotte	$142,750	$673,000
GEORGIA	Atlanta	$287,250		Macon	$139,007	$148,243
HAWAII	Honolulu	$712,500		Kihei Maui	$540,044	$172,456
IDAHO	Boise	$215,432		Coeur d'Alene	$204,518	$10,914
ILLINOIS	Chicago	$768,333		Joliet	$176,536	$591,797
INDIANA	Munster	$336,000		Muncie	$144,996	$191,004
IOWA	Des Moines	$221,625		Sioux City	$150,060	$71,565
KANSAS	Overland Park	$230,317		Wichita	$144,625	$85,692
KENTUCKY	Florence	$212,720		Lexington	$188,017	$24,703
LOUISIANA	New Orleans	$255,066		Lafayette	$194,939	$60,127
MAINE	Portland	$310,500		Lewiston	$212,250	$98,250
MARYLAND	Bethesda	$759,664		Hagerstown	$237,946	$521,718
MASSACHUSETTS	Boston	$1,337,578		Worcester	$242,769	$1,094,809
MICHIGAN	Mount Pleasant	$195,014		Grayling	$112,675	$82,339
MINNESOTA	Edina	$392,647		Rochester	$191,982	$200,665
MISSISSIPPI	Jackson	$238,000		Gulfport/Biloxi	$186,500	$51,500
MISSOURI	St. Louis	$228,852		Springfield	$156,225	$72,627
MONTANA	Bozeman	$297,488		Great Falls	$151,100	$146,388
NEBRASKA	Kearney	$212,100		Norfolk	$187,350	$24,750
NEVADA	Reno	$272,309		Las Vegas	$213,120	$59,189
NEW HAMPSHIRE	Hanover	$555,222		Nashua	$281,250	$273,972
NEW JERSEY	Ridgewood	$801,250		Haddon Heights	$238,448	$562,802
NEW MEXICO	Santa Fe	$362,602		Albuquerque	$215,059	$147,543
NEW YORK	Queens	$793,500		Syracuse	$171,711	$621,789
NORTH CAROLINA	Winston-Salem	$279,241		Fayetteville	$113,701	$165,540
NORTH DAKOTA	Fargo	$224,426		Minot	$157,167	$67,259
OHIO	Columbus	$307,250		Akron	$121,885	$185,365
OKLAHOMA	Oklahoma City	$164,250		Tulsa	$154,800	$9,450
OREGON	Salem	$335,840		Medford	$276,367	$59,473
PENNSYLVANIA	Philadelphia	$472,396		Erie	$206,500	$266,193
RHODE ISLAND	Providence*			$290,217
SOUTH CAROLINA	Charleston	$338,726		Myrtle Beach	$188,123	$150,123
TENNESSEE	Nashville	$235,336		Chattanooga	$161,975	$73,661
TEXAS	Dallas	$332,375		Arlington	$138,775	$193,600
UTAH	Salt Lake City	$291,152		Provo	$213,000	$78,152
VERMONT	Burlington	$352,000		Rutland	$237,600	$114,400
VIRGINIA	Vienna	$645,946		Winchester	$209,750	$436,196
WASHINGTON	Bellevue	$781,825		Tri-Cities	$224,475	$557,350
WEST VIRGINIA	Charleston	$203,528		Parkersburg	$155,000	$48,528
WISCONSIN	Madison	$298,000		Eau Claire	$141,270	$156,730

 

The 2009 average price in the District of Columbia:

 

DISTRICT OF COLUMBIA

$642,962 *

 

 

 

 

 

The 2009 average price in the Commonwealth of Puerto Rico:

 

PUERTO RICO

$311,750 *

 

*Only one market included in the study.

 

TABLE 3

The most expensive and most affordable markets (in U.S. dollars²) within selected provinces/territories in Canada
are:

 

Province/Territory	Most Expensive	2009 Avg. Sales Price		Most Affordable	2009 Avg. Sales Price	Variance
ALBERTA	Fort McMurray	$593,340		Edmonton	$401,993	$191,347
BRITISH COLUMBIA	Vancouver	$1,174,241		Burnaby	$611,243	$562,998
MANITOBA	Winnipeg $363,042*
NEW BRUNSWICK	Moncton $256,843 *
NEWFOUNDLAND	St. John's $324,338*
NOVA SCOTIA	Halifax $257,891*
ONTARIO	Toronto	$766,643		Brantford	$222,968	$543,675
PRINCE EDWARD ISLAND	Charlottetown $147,560 *
QUEBEC	Montreal $436,403 *
SASKATCHEWAN	Saskatoon $355,237*
YUKON	Whitehorse $341,775*

* Only one market included in the study.

 

TABLE 4

All surveyed international markets 2009:

 

Country	Market	2009 Avg. Sales Price in U.S. $
ARUBA	Aruba	$ 314,000
AUSTRALIA	Brisbane	$ 217,071
BAHAMAS	Nassau	$ 458,906
BELIZE	San Pedro	$ 244,300
BERMUDA	Hamilton	$ 1,348,813
CAYMAN ISLANDS	Cayman Islands	$ 526,250
CHINA	Shanghai	$ 1,386,750
	Chongqing	$ 340,776
COLOMBIA	Pereira	$ 151,884
	Bogotá	$ 182,926
	Cartagena	$ 454,102
COSTA RICA	Escazu	$ 293,750
	Heredia	$ 265,000
	Jaco Beach	$ 385,500
	San Jose	$ 269,500
ECUADOR	Guayaquil	$ 101,250
	Samborondon	$ 154,250
	Salinas	$ 69,375
EGYPT	Cairo	$ 273,393
	6th October	$ 859,625
GUATEMALA	Guatemala City>	$ 207,175
HONDURAS	Roatan	$ 299,500
	San Pedro	$ 220,000
	Tegucigalpa	$ 228,166
INDONESIA	Bandung	$ 112,367
	South Jakarta	$ 494,252
	Tangerang	$ 146,551
IRELAND	Cork	$ 534,360
	Dublin	$ 1,127,843
	Galway	$ 746,874
ITALY	Florence	$ 1,612,224
	Rome	$ 1,261,740
	Milan	$ 1,636,758
LEBANON	Beirut	$ 512,000
MEXICO	Mexico City	$ 207,020
	Monterrey	$ 188,435
NICARAGUA	Granada	$ 239,750
	Managua	$ 221,000
PANAMA	Panama City	$ 239,750
ROMANIA	Ploiesti	$ 402,778
	Brasov	$ 300,764
	Bucuresti	$ 1,371,528
SINGAPORE	Singapore	$ 1,898,500
ST. CROIX	Christiansted	$ 602,500
TURKEY	Istanbul	$ 669,000
	Ankara	$ 351,000
	Gaziantep	$ 173,500
	Izmir	$ 315,000
TURKS AND CAICOS	Providenciales	$ 872,225
UNITED ARAB EMIRATES	Dubai	$ 1,077,703
VENEZUELA	Caracas	$ 165,615
	Maracaibo	$ 118,461
	Porlamar	$ 151,653
VIETNAM	Ho Chi Min City Dist 1	$ 341,099
	Hanoi	$ 166,470
	DaNang	$ 172,900

 

Methodology – 2009 Coldwell Banker^Ò Home Price Comparison Index:

Coldwell Banker Real Estate LLC conducts its Home Price Comparison Index study by compiling survey data from Coldwell Banker offices throughout the United States, Puerto Rico, Canada and a sampling of other countries where the Coldwell Banker system has a market presence. Companies within the Coldwell Banker system submit data based on the average sales price of comparable listings through July 2009, a comparative market analysis of homes previously evaluated for the 2008 HPCI. The criteria for the HPCI subject home is: single-family dwelling, 2,200 square feet (approximately) four bedrooms, two and one-half baths, family room (or equivalent) and two-car garage in neighborhoods/zip codes within a market that is typical for corporate middle-management transferees.

 

About Coldwell Banker
Real Estate

Since 1906, the Coldwell Banker^® organization has been a premier full-service real estate
provider. In 2008, Franchise Times magazine's prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,500 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International^® division. It is a pioneer in consumer services with its Coldwell Banker Concierge^® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker^® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

 

1  2,200 square feet was the baseline figure used as size criteria for the HPCI subject homes. However, it is possible that in certain markets the size of the subject homes varied.

 

² The Canadian dollar to U.S. dollar conversion rate was $.93. The date of conversion was 9/15, and http://www.bank-banque-canada.ca was used to convert the figures.

# # #

Monthly Real Estate Market Report for Toms River, NJ – September 2009

September 2009 MARKED the 3rd consecutive month that sales of single family homes, in Toms River, NJ, exceeded the same month of the previous year! Given the fact that this past September also MARKED the one year anniversary of the collapse of FREDDIE MAC and FANNIE MAE, we must acknowledge the influence of the $8,000 Tax Credit for "First Time Home Buyers", despite what some political pundits may believe!

September by the numbers:

• 61 The number of Single Family Homes CLOSED during the month

• $364,011 Average LIST price for September*

• $342,037 Average SALES price for the month*

• 96 Average DAYS ON the MARKET for September

• 93.96% The SALES price to LIST price RATIO for the month

• 754 Number of Single Family Homes ACTIVE on the market in September

• 12.36 Number of MONTHS it would take to SELL OFF the existing supply of homes on the market, in Toms River, at this rate, if NONE were to come on the market!

September 2009, saw 61 Single Family Homes CLOSE in Toms River, as compared with 59 in September of 2008 (a slight increase but an increase none-the-less)! THIS MARKS THE THIRD MONTH IN A ROW; WHERE SALES HAVE SURPASSED THE SAME MONTH OF THE PREVIOUS YEAR! Of those 61 homes, 24 were in the price range of $200,000 to $299,999 (39%). Combined with the CLOSINGS from the First 3 Quarters of 2009, this represents an INCREASE in SALES of 38%, in this particular price range, over the same time last year!

*These averages include Single Family Homes from the beach communities of Ortley, Normandy and Ocean, etc.

The Economic Impact of an Existing Home Purchase

Courtesy of Rick Deluca, the following information illustrates the impact a single existing home sale has on the economy. Further evidence that until the housing market recovers, the economy cannot recover!

Perhaps you've heard about how a home sale impacts the local economy in many ways. Well, here is a study completed you may find useful.


The Economic Impact of an Existing Home Purchase:

The National Association of Realtors® estimates that each home sale at the median generates $63,101 of economic impact (2008). Impact of Single Existing Home Purchase
Median Price $198,100

Real Estate Industries Furniture Multiplier New Housing Total
$ 17,829 + $ 5,331 + $ 11,117 + $ 28,825 = $ 63,101


Real Estate Industries: We assume that commissions, fees, and moving expenses, or income to real estate industries, associated directly with the purchase are about 9 percent of the median home price1.

Furniture: Furniture and remodeling expenses are a little more than $5,000 based on a Harvard Joint Center for Housing Studies figure.2

Multiplier Effect: The multiplier effect accounts for the fact that income earned in other sectors of the economy as a result of a home sale is then re-circulated into the economy. The National Association of Realtors®'s macroeconomic modeling suggests that the multiplier is between 1.34 and 1.62 in the first
year or two after an autonomous increase in spending. This means that each dollar increase in direct housing activity will increase the overall GDP by $1.34 to $1.62.

New Housing: Because existing home sales have historically been associated with new construction at a ratio of eight to one, we add in one-eighth of the new home price3 to approximate the value of this construction being added to GDP. The existing home price is not directly added to the economy because the home was produced or constructed in the past. Only the value-added service related to the sale of an existing home is included. When a new home is constructed, the entire price is added to the value of GDP because it is new production.

1 An annual price is used to avoid seasonal fluctuation in home prices. 2008 Median Home Price is $198,100.
2 Improving America's Housing 2003. Measuring the Benefits of Home Remodeling. Harvard Joint Center for
Housing Studies Report: R03-1
3 2008 Median New Home Price is $230,600 per the Census Bureau.

J.D. POWER AND ASSOCIATES RANKS COLDWELL BANKER HIGHEST IN HOME SELLER SATISFACTION

NEWS RELEASE

Media Inquiries: David Siroty Meredith Topalanchik

Coldwell Banker Real Estate LLC CooperKatz & Company

973-496-7199 917-595-3036

David.Siroty@coldwellbanker.com mtopalanchik@cooperkatz.com



J.D. POWER AND ASSOCIATES RANKS COLDWELL BANKER HIGHEST IN HOME SELLER SATISFACTION

PARSIPPANY, N.J. – Sept. 17, 2009 – Coldwell Banker Real Estate LLC ranked highest among real estate companies in satisfying home sellers according to the recently released J.D. Power and Associates 2009 Home Buyer/Seller StudySM.

“This recognition is a testament to the brand’s legacy as an industry leader, our commitment to innovation and, above all, our powerful network,” said Jim Gillespie, president and CEO of Coldwell Banker Real Estate LLC. “With unsurpassed local knowledge, expertise and work ethic, we at Coldwell Banker have always felt that our network of professionals is the greatest in the industry, and we’re pleased J.D. Power and Associates recognized it.”

The independently administered study measured customer satisfaction of homebuyers and sellers among the largest national real estate firms. The study incorporates more than 3,100 evaluations from 2,801 respondents who bought or sold a home between April 2008 and June 2009. The survey was fielded between April and June 2009.

J.D. Power and Associates examined four factors in the home-selling experience including: agent; marketing; office; and package of additional services. Among home sellers, Coldwell Banker Real Estate ranked highest with a score of 815 and performed particularly well in all four factors.

Coldwell Banker Real Estate also ranked particularly high in the home-buyer segment. The brand ranked second with a score of 801 on a 1,000-point scale, performing particularly well in the office factor.

Complete results for the study can be found here.

About Coldwell Banker®
Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,500 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on home building and home improvement, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
###

You Are Not Going to DIE In This House

With less than 3 weeks for "First Time Home-Buyers" to MAKE SURE they are able to take advantage of the $8,000 tax credit, it behooves me to share this video:



In order to ensure they CLOSE on their new home before the deadline of December 1, 2009, "First Time Home-Buyers" must allow 45 to 60 days for the morgage process; which only allows for 3 to 5 weeks to find and secure a contract on their home!

So...why are so many buyers still sitting on the fence?

1.Many believe the government will extend the deadline based on rumor, inuendo and misinformation.
2.Many believe they can get a better deal by waiting until the last minute.
3.And many are SCARED to DEATH!
Truth is:

As it stands today, "First Time Home-Buyers" MUST CLOSE on their home BEFORE December 1, 2009!

By waiting, they risk not only losing out on the tax credit but losing out on the home of their dreams as well!

FEAR translates as False Expectations Appearing Real! To my knowledge, "Buying a Home" is NOT the leading cause of death for any demographic...

Act Now or Forever Hold Your Picket

Media Inquiries: Call Jim Flanagan at 732-270-6100


ACT NOW! – FEDERAL TAX CREDIT FOR FIRST-TIME HOMEBUYERS

COLDWELL BANKER FLANAGAN REALTY Urges Potential First-Time Buyers to Allow Enough Time for Closing to Secure Tax Credit of up to $8,000

Toms River, NJ, September 8th, 2009 – The $8,000 federal tax credit for first-time homebuyers is scheduled to expire on December 1, 2009. However, in order to qualify, the transaction must be closed on or before November 30th, essentially leaving first-time buyers with less than three months to complete the process. This assumes approximately 45 days to search for a home and another 45 days to obtain mortgage financing and complete all the necessary steps to closing, including appraisals, inspections and title work. While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn't have to be.

“The tax credit is encouraging first-time homebuyers, but we’re concerned that people could miss out on this unique money-saving opportunity if they don’t anticipate the time necessary for closing,” said Jim Flanagan, Broker of Record . “While every home purchase is a unique experience, we are encouraging first-time homebuyers to be under contract by early to mid-October in order to safely meet the closing deadline and qualify for this tax credit.”

For those first-time buyers who are in the early phase of entering into the home buying process, Coldwell Banker Flanagan Realty offers consumers the following six steps for speeding up the process:

1. Find A Qualified Real Estate Agent. A team of experienced professionals are key to making the home buying process simple and seamless. Start by interviewing and selecting a sales associate who understands what you’re looking for. A real estate agent will arrange showings, and keep track of the properties visited. He / she should also be able to help indentify suitable lawyers, mortgage lenders, home inspectors and others who play a role in the process. Remember, an agent is an expert who will negotiate the best price and incentives on a home, and will oversee the sales process on a homebuyer’s behalf. It is critical that you get a timeline from your real estate agent so that you leave enough time for the sometimes lengthy closing process to occur.

2. Know Before You Go. The first step in the home buying process should always be to have an idea of the type of property one wants to buy. By separating the “must haves” from the “wants,” homebuyers can focus on what’s really important. Free online tools such as Coldwell Banker On Location (http://www.youtube.com/coldwellbanker ) and the recently launched mobile application for iPhone and Android devices are available to help consumers quickly and conveniently learn about neighborhoods, view what’s on the market and compare home prices in over most U.S. markets and 28 countries worldwide. Homebuyers who arm themselves with as much knowledge as possible before hitting the ground with an agent are bound to save time in the long-run.

3. Get Your Credit Report In Order. A sound financial track record and solid credit score can help lock in a home loan and lower interest rates. Lenders today are looking at prospective borrower’s credit reports more closely than ever so it’s important to examine one’s credit report for mistakes and eradicate any "toxic" debt such as overdue credit-card payments before the home shopping begins. Rectifying mistakes is easy to do but it can be a time consuming process. Checking a credit score and addressing any errors will help expedite the approval process when it comes time to make an offer.

4. Compile Your Paperwork. At the same time homebuyers are working to correct or improve their credit report, they should also pull together the documents they will need to provide the lender. These documents include:

• Verification of employment form
• Two most recent pay check stubs
• Two most recent bank statements
• Copies of the last two W2 forms received from employer
• Copies of any asset statements including those for retirement accounts, stocks, bonds or mutual funds
• Copy of social security card

* If there is a co-applicant on the loan, all of these forms will be required of that person as well.

5. Get Your Pre-Approval. Once the paperwork is in order, it’s time to get pre-approved for a mortgage. “Pre-approval” means that a lender has verified the borrower's credit and other credentials and is committed to making a loan. This is different (and more valuable to sellers) than pre-qualification, which simply gives the borrower an idea of the size of the mortgage he / she might afford without actually committing to a loan.

The borrower is not obligated to get a loan from the lender that offers the pre-approval letter but keep in mind that a pre-approval does involve giving permission for a hard credit inquiry. This could potentially result in a small ding on the borrower’s credit report. Getting this early green light, however, will put homebuyers in a stronger position with sellers, demonstrating how serious they are about home ownership – and that they are well-qualified.


6. Shop for the Most Favorable Mortgage Option. People can face misunderstandings and even lose their homes if they don’t fully understand their mortgages. It's imperative for homebuyers to educate themselves on the risks of the different types of mortgages and select the right one for his / her family. Early on, shop around for the most favorable mortgage rate and terms. A difference of even half a percentage point can mean a considerable savings over the life of a loan. For more information on mortgages visit http://www.bankrate.com/mortgage.aspx.

For additional information and provisions on the first-time homebuyer federal tax credit, contact your local Coldwell Banker Real Estate agent or visit www.coldwellbanker.com.

Flanagan Realty Inc. i.e., Coldwell Banker Flanagan Realty located at 1541 Route 37 East, Toms River, NJ 08753, can be reached at 732-270-6100 and www.FlanaganRealty.com. Coldwell Banker Flanagan Realty has been serving the Ocean County market area for over 29 years.

About Coldwell Banker Real Estate
Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,500 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.