The Parking Revenue Shell Game

Seems as though King Roberts and his merry court have changed their minds. The original idea was to increase the cost of the parking sticker. But now the increase will be to parking tickets at meters. It moves from $20 to $30 dollars.

Why not do both? Why not charge say $480 a year for a parking sticker. that's only $40/month and spreads the tax burden to renters too. Let's charge $50 for an overtime ticket. Mostly from out of towners anyway.

Maybe we could just put a toll booth on observer highway. Revenue problem solved. I already have a roll of quarters waiting.

Larry Winget On Taxes

I just finished reading yet another Larry Winget book. He kicks my butt but he also keeps perspective. I recommend him to anyone who even thinks about complaining about anything...like taxes.

From Our Friends at Forbes.....

America's 5 Highest Property Taxes

1. Passaic County, N.J.
Taxes as a percentage of income: 8.5%
Median Homeowner Income: $81,853
Taxes as a percentage of home value: 1.7%
Median Home Value: $398,800
Median Property Taxes Paid on Homes: $6,928

2. Union County, N.J. (Tie)
Taxes as a percentage of income: 8.1%
Median Homeowner Income: $86,049
Taxes as a percentage of home value: 1.7%
Median Home Value: $422,700
Median Property Taxes Paid on Homes: $7,007

2. Essex County, N.J. (Tie)
Taxes as a percentage of income: 8.1%
Median Homeowner Income: $93,511
Taxes as a percentage of home value: 1.8%
Median Home Value: $422,800
Median Property Taxes Paid on Homes: $7,535

http://finance.yahoo.com/real-estate/article/106483/America%27s-Highest-Property-Taxes

That's the top 3 in America. From the redwood forests to the gulf stream waters...Hudson County got you down? So where are you going to move to? Pennsylvania? I have a friend who does that commute into Manhattan....Just pay the taxes or you will live your life on a bus.

Hoboken Real Estate
Condos
One Bedrooms
Active: 159
Median DOM: 85
Avg. Asking Price: $449k
Number under $300k: 8
Information deemed reliable but not guaranteed

A Rose By Any Other Name.

Arthur's Court, Robert's Court, Court Street.......MetroHomes, MetroStop, The Metropolitan.

Sometimes a name is a good thing. Like for a big place...Hudson Tea, Maxwell Place... And Sometimes its just annoying when you have a four or eight unit building with a name..Le Triumphe come to mind. Blink once and you miss it. Here are my top five names for new construction.
1) Too Close To The Bars Condos
2) The Fire Station House
3) Public Housing Corner
4) Flood Zone Hi-Rise
5) Take A Cab To The PATH Commons

Now this may be a little snowy day humor but read the link below...

http://www.bookofjoe.com/2009/01/the-road-above-is-in-south-yorkshire-in-england.html

I can't decide whether this would increase or decrease the saleability. Wonder what people who live here are called?

Hoboken Real Estate
Condos
Under Contract first 4 weeks of January: 34
Information deemed reliable but not guaranteed

Who Has Been Reading This Blog?

In Business Week: This week....Rents Dropping. Didn't we cover this two weeks ago. I guess they should rename it Business Last week.

http://www.businessweek.com/lifestyle/content/jan2009/bw20090122_828698.htm?chan=top+news_top+news+index+-+temp_lifestyleThe Time For A Move Is Now!

Hoboken Real Estate
Available Rentals on the MLS
1Br 25
2Br 47
3Br+ 7
Information deemed reliable but not guaranteed

Rounding Error

Another installment of someone wants to get sued. True Story: There's a condo on the market that was originally built a few years ago. On the original listing the sqft was listed as 1376. Now several years later it is being sold at 1300 sqft. Sucks for the sellers. Here's what else sucks for the sellers. The 1300 sqft has been "rounded up" from 1289. This is an 800lb Gorilla Realty listing, not some rogue mom and pop. Here's what could happen:

1) Buyer finds out before the close, gets a refund for the price per square foot difference.
2) Buyer finds out after close, sues realtors and sellers.
3) Buyers finds out and bids on the smaller size. Bid is rejected for another that is using the larger size. Buyer sues sellers and sellers' realtor.

Now it is rumored that 800lb Gorilla has bought its way out of similar "embarrassing situations". But why is this even an option? If a realtor can't tell the truth or do a smidge of due diligence, why do people hire them?

I don't get it. In today's economy where everyone is feeling the pinch, people are going to be that much more likely to pull the legal trigger for a few pennies. Why would "professionals"expose their broadsides over the dumbest things? ....I'm calling my lawyer.


Hoboken Real Estate
Condos
Price changes last 30 days: 119
Information deemed reliable but not guaranteed

Law And Disorder

Warning: Will Robinson.

There is a very good reason that a buyer or seller should rely on their realtor's recommendation for a closing attorney. Here it is: The realtor is recommending someone who they know has the skill and competence to get the job done, usually without any bumps in the road.

Case in point: I had a closing recently where the buyer did not take my advice on an attorney. They saved $200 by going with someone, who it turns out, is related to one of the people working for the development company. Bad enough.

This Jack McCoy gave them the wrong amount to bring to close. Only the Buyer's diligence prevented this from being a mess. Then JM still ends up giving them the wrong amount by a dollar. So he takes a dollar out of his pocket to make it all right. Now I'm not a lawyer but in any closing I've ever done, if there is money going anywhere, the lawyer writes a check from the trust account.

Did I mention this guy is sitting in this big time legal firm of the seller (impressive views of Manhattan all around.) he's chewing gum. Yes chewing gum , texting and taking cell calls throughout the close. I wonder how long before something else gets screwed up?

The moral of the story: Use your realtor to bring professionals to the table or be prepared to dance with the devil.



Hoboken Real Estate
Condos
2 Bedroom /2 Bath with Parking
Available 119
Median ask price $639K
Information deemed reliable but not guaranteed

No Shoes. No Shirt. No Service.

The "No Shoes. No Shirt. No Service." signs are usually reserved for the beach or the most upscale places in Key West. Though we run into the "please remove your shoes before entering"
signs on a fair number of showings.

This makes sense of you have a white rug. Or if it is really wet out and out of courtesy you don't want mud dragged throughout the house. If a seller is really concerned with buyers following the request, I suggest the following (and have seen it done in a few places)::: the seller provides a little bag of disposable booties to put over the shoes.

I blew out my flip-flop. Stepped on a pop-top. Cut my heel had to cruise on back home...

Hoboken Real Estate
Condos Sold since 1/1/08
1 Br 278
2 Br 435
3 Br 47
Information deemed reliable but not guaranteed

I'm Goin' Down.

REVISED January 13th, 2008---- 6:00 PM ET
Lock Period = 30 Days

C O N F O R M I N G L O A N S (loans less than or equal to $417,000)
30 YEAR FIXED ---------------------------- 4.875%, No Points
30 YEAR FIXED INTEREST ONLY--- 5.500%, No Points

15 YEAR FIXED----------------------------- 4.625%, No Points

5 / 1 ARM------------------------------------- 5.125%, No Points

7/1 ARM ------------------------------------- 5.375%, No Points

Add .125% to Rate or .500 To Points For Loans <$80,000 or If Waiving Escrows Investment Properties --- ** Add 1.75 points (if 25% down)**
There may be a rate increase for cash-out refinance transactions over 70% Loan to Value

EXPANDED C O N F O R M I N G FIXED RATE LOANS (loans greater than $417,000, but less than $625,500)
30 YEAR FIXED ------------------------- 5.125%, No Points

** Loan amount restrictions based on county.

NON-CONFORMING L O A N S (30 year fixed greater than expanded conforming, every other program greater than $417,000)
30 YEAR FIXED--------------------------- 5.75% No Points
30 YEAR FIXED INTEREST ONLY-- 6.000%, No Points
15 YEAR FIXED--------------------------- 5.375% No Points
5 / 1 ARM-------------------------------------5.125%, No Points

7/1 ARM -------------------------------------- 5.375%, No Points

** All non-conforming loans need to be discussed in detail

Total Fees Charged By Pinnacle Mortgage, Inc.
$350.00 -- Application Fee (Includes Appraisal, Lock-in, Credit, Flood &
Processing)
$395.00 -- Commitment Fee (Wiring Funds, Attorney Review & Preparation)

Michael Mundy Pinnacle Mortgage, Inc. Mobile -- (973) 985-9948

You used to love to drive me wild, yeah
But lately girl you get your kicks from just dragging me down

I'm goin' down down down down
I'm goin' down down down down



Hoboken Real Estate
Hudson St Condos
Available 16
TEA Bldg 8 of 16
Information deemed reliable but not guaranteed

One Dirty Hour

A realtor friend sent me this clip from "60 Minutes" on the housing crisis. This kind of journalism makes me want to puke. In the first 30 seconds they blame wall street for the housing crisis... Not Bayonne's own Barney Frank.... They blame developers for deceptive "marketing". It even shows one lady who is an acupuncturist and admits she didn't read the mortgage paperwork because she was too busy looking for another speculative property. ugh. ugh .ugh. The reason you should watch is the part about the vultures. These guys have it right. Buy, buy,buy. It may get bad and there are deals to had.


http://ide.synthasite.com/sites/D0e7/D0a3/D7ac/D149/U8a4986cc1d7fd05c011d941ca73a07e0/8a4986c81e3ad928011e3e3bae812a24/shocking-60-minutes-commentary.php

Watch..just keep the trash can close.

Hoboken Real Estate
Condos
Price changes last 13 days : 63

Information deemed reliable but not guaranteed

Contractor Clowns

In my extensive dealings with contractors I've found that they fall into one of three categories.
1) Inept Clown
2) Clown In Sheep's clothing
3) Rockstar

The Inept Clown: So clueless that you can spot him a mile away. Inept Clown will usually have the lowest price but anyone with any experience dealing with Inept Clown knows it will cost you more, way more in the end.

Example: Last week I went onto Service Magic to get some quotes for a new HVAC system. Three Contractors called to schedule an appointment for an estimate. I work from home a lot in the mornings and was very flexible about time and day. Inept Clown scheduled for Thursday. On Friday he calls and says "We spoke a few days ago. I think we set up an appointment but I don't remember when it was for." ....Not making this up.... Is there a price that would make me choose him? never never never.

2) Clown In Sheep's Clothing: On the surface CISC, appears like the elusive Rockstar. On time for the estimate, professional, knowledgeable. But as soon as you sign and give the first deposit, the camouflage start breaking off like foam padding on the Space Shuttle. Time frames get moved, he doesn't show up at 8am but at 1pm. You know the song and dance....

3) Rockstar: There's a reason this category is called Rockstar and not Guitar Hero. Every Clown can be a guitar hero in his own mind. A rockstar shows up. does what they say in the time frame they say and for the cost quoted. You have as much chance of meeting these contractors as becoming a rockstar. These guys are in high demand and will not ever do small jobs.


The best you can hope for is that you're not the one cleaning up after the elephants when the Contractor Circus comes to town.

Hoboken Real Estate
Available Condos 495
1BR 152
2Br 283
3+Br 51

Information deemed reliable but not guaranteed

Clicking My Heels Three Times

Spent the night in my bomb shelter with the deadbolt on. No reporters are going to interview me. No sir. How could I have questioned the all knowing wisdom of the Liberty Board Of Realtors? What was I thinking? Just ask any realtor in Hoboken about how much better they make our lives and jobs. I liken most Hoboken realtors to the old East Berliners. Looking over the wall asking how did my house end up on the wrong side of the wall?

Buyers: You may be looking in several counties/states. It is the realtors job to give you seamless service. When things seem a little off here in Hudson County, its probably the system. Most of the time you won't have to pay attention to the man behind the curtain, but is you've ever had to wait in the car while an agent tracks down a set of keys, you know you're not in Kansas anymore.

Glastnos anyone?


Hoboken Real Estate
Available Multifamilies
2F 8
3F 6
4F 4

Information deemed reliable but not guaranteed

Communist Hoboken

These are good times in Hoboken Real Estate.... In keeping with the title of the blog...Here is an inside look. December Hoboken Condo numbers are down 50%. That's half according to my engineering degree. ugh or ugly. Need not be a rocket scientist to figure the state of the economy, real estate, or anything else not related to space travel.

Now if I lived in Beijing and talked to the press about these facts, I might get a strongly worded memo from my Board of Realtors President, not so subtly suggesting that I drink the Kool Aid and keep a positive outlook. It's possible that I might be sent to the re-education camp with those journalists who suggested that the Chinese female gymnasts still play with Barbies.

Hold on a minute, Brian. You did receive a strongly worded memo...

The problem lies in the fact that the Jersey Journal did an article on the Hoboken tax increase and how it affects the housing market. A couple of local realtors were quoted. The memo explains that the Board has a media expert who has taken public relations classes and seminars on how to deal with the media in a positive manner and if a realtor doesn't have this expertise, better leave it to the experts. The memo goes on to explain that you can find a silver lining in everything. (Other than that Mrs. Lincoln, how did you like the play?)

I know the realtors quoted in the "offending" article. They both have reputations as straight shooters. As a speaker, at a class that I attended (Not a public relations class), pontificated: Don't hand someone a sh*t sandwich... take away the bread and what are you left with?

Think a reader is going to buy some line about a 47% tax increase being good for the real estate market? Ok. Maybe.... Here goes my attempt...."Wow, that 47% tax increase sure is making for interesting times. The Vulture buyers, that were on the sidelines waiting for the other shoe to drop, have flown to the carcasses of rotting short sales from former Wall Streeters... I'm having my best year ever!"

...Maybe all of us realtors should keep our mouths shut and not take the free publicity of the press. I love spending what little money I have (now half according to the December numbers) on marketing. Keeps the economy churning. ...Tune in tomorrow...The Secret Police may have shut me down by then.


Hoboken Real Estate
December Condos
2008 under contract 28
2007 under contract 56
Information deemed reliable but not guaranteed

The Buyer IS The Market.

I have said this in a hundred different ways: The Buyer sets the market. Last week's blog regarding rent reduction prompted several objections that a renter might not be able to get a rent reduction because the landlord's taxes are going up and they would have higher costs, thereby the landlord would not be willing to give a reduction.

Here's my reaction to higher costs by the landlord: So what! Tough Noogies.

The Buyer/Renter sets the market. A renter doesn't care if the taxes go up by a million dollars (and the way Sir Roberts and his Mighty Court are running things, how far from reality is that? If your $10,000 tax bill goes up 47% a year, in 30 years you will be paying over a million dollars a year in taxes. Think that's a long time? You can bet some of those cronies over at city hall will still be alive and collecting three or four pensions while their offspring campaign to "end the corruption".) Question? Is it more likely you will pay a million dollars a year in taxes or the city will revaluate property taxes? You don't have to answer. The fact that I could pose a question that comes within a wisp of the realm of reality is frightening.

So back to the landlord and his million dollar tax bill. The Hoboken renter will still only pay $3000 per month or move somewhere else. It's that simple. Same with Buyers. A buyer doesn't care about how much the seller is going to lose. The condo is only worth what it's worth.

In the famous words of Winston Zeddemore: "I Love This Town."

Hoboken Real Estate
Available Condos
1 Br 141
2 Br 275
3Br 48
Information deemed reliable but not guaranteed

Save Money Now!

Seems like every article these days is talking about how to save money and make your dollar go further..... I am not giving up my $4 coffee. This is still America.

So my gift to all the renters out there is a way to save hundreds of dollars each month. Here it is: pick up the phone and tell your landlord you would like a 10% reduction in your rent starting right now. Rents have dropped 15-20% over the past year. Landlords might not know it but the reality will set in fast when the go to rerent. Many are paying the fee and many are sitting with vacant apartments not understanding the market has changed.

All this leads to the renter being able to renegotiate. Offer to extend the lease for an additional year at the lower price.

It will save you enough to fill up on lattes year long.


Hoboken Real Estate
December Numbers
Condos sold25
Median DOM 84
Avg Sale price $520K
Information deemed reliable but not guaranteed