Wednesday, February 27, 2013

The Time to Buy is Now–Statistics Suggest it is Becoming a Seller’s Market!


With continuously low interest rates, now is an opportune time to buy for owner occupants and investors. This recent Realtor.com article suggests that home prices on average are rising while inventory remains steady which translates to higher demand for homes and more instances of multiple bidding. In a seller’s market, owners are able to be more selective about which offers to accept and may have more negotiating power. Buyers looking to take advantage of the rates should consider purchasing before the market becomes more favorable for sellers.

From the article:
Existing-home sales edged up in January, while a seller's market is developing and home prices continue to rise steadily above year-ago levels, according to the National Association of Realtors®. Sales rose in every region but the West, which is the region most constrained by limited inventory.
Lawrence Yun, NAR chief economist, said tight inventory is a major factor in the market. "Buyer traffic is continuing to pick up, while seller traffic is holding steady," he said. "In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country."

Here are some interesting, relevant statistics from the article:
  • The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases
  • According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.41 percent in January from a record low 3.35 percent in December
  • Single-family home sales increased 0.2 percent to a seasonally adjusted annual rate of 4.34 million in January from 4.33 million in December
  • Existing condominium and co-op sales rose 1.8 percent to an annualized pace of 580,000 in January from 570,000 in December
  • Regionally, existing-home sales in the Northeast increased 4.8 percent to an annual rate of 650,000 in January and are 12.1 percent above January 2012. The median price in the Northeast was $230,500, up 2.4 percent from a year ago
As you can see, buyers are still in a good position, but the market may be swinging the other way towards sellers. If you’re a first time buyer, are up-or-downsizing, or are looking for an investment property, or just need more info, let us be of service! Give us a call at 973-775-9646 or e-mail us at team@morris-homes.com today. We look forward to serving you!


These real estate tip excerpts brought to you by Realtor.org. You should not treat any opinion expressed here as a specific inducement to follow a particular real estate strategy, but only as an expression of opinion.  SR Real Estate Group does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind.  All information presented herein is intended and should be used for educational purposes only.  You should always conduct your own research and due diligence and obtain personalized professional advice before making any decision. SR Real Estate Group and Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in this blog.

Original article can be found here: Link


Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.comhttp://www.SRRealEstateGroup.com, andhttp://www.TheTownhouseExpert.com.


Friday, February 22, 2013

Another Amazing Testimonial for SR Real Estate Group


Just received this heartwarming praise from our clients and friends, Greg and Hope. Thank you, guys, it was an honor and a pleasure!

Our relationship with Rahul and Smitha began when we went to visit a home they had listed. We were so impressed we decided that they should represent us during our home search. It turned out to be the best accidental business decision we ever made. We were not easy customers, as we were more interested in our dream house than a specific location, we kept them on their toes! We relied on their expertise in the market, negotiating capabilities and invaluable advice to navigate our way into our dream home. At a price far below what the home was initially listed for!

They set the bar so high that as we try to sell our home in a market they are not in...we just can’t seem to stop comparing them to the realtors we are interviewing to represent us. Unfortunately, everyone is just falling short.

If you are looking for people who seamlessly blend extraordinary customer service, knowledge, experience, compassion and caring into one dynamic package look no further than this team. From giving you the bottom line, to answering late night panic calls on price negotiating they will be there for you through the entire process of selling or buying a home.



Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.comhttp://www.SRRealEstateGroup.com, andhttp://www.TheTownhouseExpert.com.

Wednesday, February 20, 2013

Don’t Miss Home Tax Breaks This Year! - Part 1

The 2013 tax season is here, and with the April deadline fast approaching, we want to make sure you have this handy info to help you navigate the world of homeowner taxes. Here is part 1 of our series of tips. Stay tuned for Part 2 of our series of tips, and as always, feel free to contact SR Real Estate Group for the latest real estate information and help!

Mortgage interest deduction

One of the neatest deductions itemizing home owners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can even be a house trailer or boat, as long as you can sleep in it, cook in it, and it has a toilet.
Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home.
If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit.
If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan.

PMI and FHA mortgage insurance premiums

Helpfully, the government extended the mortgage insurance premium deduction through 2013. You can deduct the cost of private mortgage insurance as mortgage interest onSchedule A — meaning you must itemize your return. The change only applies to loans taken out in 2007 or later.
What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately).
If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you lose 100% of this deduction (10% x 10 = 100%).
Besides private mortgage insurance, there's government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies.

Prepaid interest deduction

Prepaid interest (or points) you paid when you took out your mortgage is 100% deductible in the year you paid them along with other mortgage interest.
If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
But if you refinance to get a better rate and term or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the term of the loan. Say you refi for a 10-year term and pay $3,000 in points. You can deduct $300 per year for 10 years.
So what happens if you refi again down the road?
Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the term of the loan.
Home mortgage interest and points are reported on IRS Form 1098. You enter the combined amount on line 10 of Schedule A. If your 1098 form doesn’t indicate the points you paid, you should be able to confirm the amount by consulting your HUD-1 settement sheet. Then you record that amount on line 12 of Schedule A.

These tax tip excerpts brought to you by HouseLogic.com. You should not treat any opinion expressed here as a specific inducement to follow a particular tax strategy, but only as an expression of opinion.  SR Real Estate Group does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind.  All information presented herein is intended and should be used for educational purposes only.  Nothing herein should be construed as expert tax advice.  You should always conduct your own research and due diligence and obtain professional advice before making any decision. SR Real Estate Group and Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in this blog.

Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.comhttp://www.SRRealEstateGroup.com, andhttp://www.TheTownhouseExpert.com.