Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
The market's inventory shortage continues to be a factor; and even though new construction of single-family homes is steady, another factor is shaping the home dynamic is the size of homes. New construction of single-family homes is significantly smaller; less house, and same price. On top of that, artificial intelligence is reshaping the way agents do business. There is also an article on marketing tips by Tom . Hopefully interest rates will not climb higher.
Please feel free to email me at [email protected] if you have any questions or would like to follow up on any of this edition's articles.
Ralph Aponte
Founder & President
732.914.1400
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New Construction: Smaller for Same Price
by: Anthony DiMaio @AmericanWritr
The inventory shortage has had a dramatic impact upon the price of a home. And as we have seen, availability isn't the only issue; price has become problematic, especially for first-time home buyers. That is one of the reasons why home builders are attempting to accommodate the smaller pocketbook of buyers by building smaller homes. The issue in this case is that materials, supplies and labor costs have also risen dramatically, so even though a house is smaller, the price for that smaller house is still relatively high.
According to the US Census Bureau, the median square footage of a single-family home built after 2015 has dropped from 2,519 in Q1 of 2015 to 2,191 for Q1 of 2023. Historically, the cost per square foot has increased 1% per year from 1992 to 2021. But all of a sudden, the pandemic hit, supply chains were disrupted and inflation skyrocketed, so that the cost per square foot in 2021 increased 13% year-over-year and another 10% in 2022.
Coupled with smaller new homes being built, interest rates are now at above 7% for a typical 30-year fixed mortgage. All of this is reflected in the recent report from Redfin indicating that the median sales price for a home in July 2023 increased by 46% to $422,137 from $280,203 back in July 2018.
Fast Facts
■ Home builders are reducing the square footage of a single-family detached house by 300 to 500 square feet.
■ The number of single-family home starts with under three bedrooms increased by 9.5% from 2021 to 2022, based upon a report from Zillow.
■ Many builders are anticipating the cost per square foot to continue to rise moving forward.
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Marketing Tips for Agents
Tom Ferry Tips for Smart Agents
1. Your sales mindset impacts everything that you do, especially your success. One of the symptoms of a poor sales approach is being anchored to what hasn't happened in the past. Uncertainty is no place to stay. As an agent focuses on the future, it begins to take shape. New trends are forming all the time, and it is important then to identify and ride the wave into your future prosperity.
2. Market perception is the fuel that gives traction to any person's credibility and expertise. What they say is what they will find. There are commission opportunities: being ready for them is the most important task. Preparation always precedes and predicts outcome. The stronger the prep, the stronger the results.
3. Proximity is an important aspect to any agent's success in marketing. Ferry states, the key to success in marketing is proximity. Whoever gets closest to the customer wins. The stronger the relationship bridge, the greater the probability of sellers selecting that agent to represent them.
4. Artificial intelligence is here. It can save time, reduce cost, increase efficiency, and if you use properly, increase visibility.
5. Branding is about outcome. Coke knew what it was doing when it said it was the real thing. Who wants something that isn't real? Your brand has to demonstrate your ability to bring desire into reality. If anything is real, it's real estate, and so if someone is talking to you, you give them facts that produce outcome.
6. Building a strong team goes a lot farther than doing it alone. And the ability to maintain a team culture is just as important.
7. The industry has changed, so successful agents are learning to pivot. Trends, technology, artificial intelligence and the internet must be part of every strategic initiative.
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Changes in the Rental Market
You Can't Unchange What Has Been Changed
The configuration of the real estate market has undergone an intense redesign since Airbnb and VRBO have entered the marketplace. Hotels now are experimenting with Airbnb instead of the usual model of taking reservations through booking agents and through regular sign-ins.
Also, owners of rental properties have purchased investment properties in locations that attract tourists. Many towns, especially along the Jersey Shore, are having to deal with the rush to rent Airbnbs along its desirable Gold Coast.
There's still a boatload of change that can be made from Airbnb rentals. It was stated that Airbnb was responsible for 1/3 of the rental bookings in all of New York City. Agents are learning how to leverage this demand into commissions going into their pocketbooks. Many agents have convinced buyers that properties they're interested in could be used to cover an entire mortgage payment if it needed to be. Airbnb appears to be the local investor's way of covering the cost of the investment.
But all is not peaches and cream: many Airbnbs have introduced loud music, drinking and partying that continues all night long in neighborhoods that would otherwise be very quiet and sleepy. Some neighborhoods recently have been singled out, such as Brigantine, New Jersey. The absentee landlords have taken advantage of the demand for vacation rentals within residential neighborhoods.
New York City has passed a law effective September 5th, 2023 that introduces some of the strictest regulations in the US for the short-term rental market.
Now New York City is demanding that short-term rentals register with the city. This registration will involve complying with new and more rigorous requirements, which include not renting out an entire apartment or home or being present during the guests' short-term stays.
When you consider there are approximately 38,500 Airbnb listings in New York City alone, this kind of presence produces revenues in the neighborhood of $85 million annually.
The way some New Jersey towns are cracking down on the Airbnb business is by requiring a minimum of a seven-night rental agreement, or in the case of Longport, New Jersey, which requires a 14-night minimum. Another criteria requires the individuals renting to be at least 25 years old and pass a criminal background check.
In the case of New York City, it's most likely a grab for cash. But in the case of many of these New Jersey tourist towns, local residents are feeling the effects that this type of business arrangement attracts in terms of clients and behavior.
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Counsellors Title is initiating this feature of Title Wise called Life Quotes.
Oftentimes we are so busy doing that we forget the reason(s) why. Life Quotes are those mental speed bumps that we will occasionally come across and insert, just to rehearse the important things in life.
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A.S.A.P. Attorney Settlement Assistance Program
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Our real estate secretarial services are able to assist you in every aspect of the sale, purchase, refinance or loan closing process. We will directly communicate with all the parties involved in the transaction and coordinate and obtain all the items necessary to bring the matter to closing.
Our A.S.A.P. services can be individually customized to fit your needs. These services include:
- Documentation Preparation
- Disbursement of Funds
- Attendance at Closing
- HUD Preparation
- Post-Closing Matters
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Our Commitment to Excellence |
Counsellors Title Agency wants to thank you for the opportunity to work with you and your clients to grow your business. Please feel free to click the link above or here to leave us a review on Google. We appreciate your business. |
Sales: Leading NJ title insurance agency seeks experienced licensed salespersons to help expand its market share throughout the entire state. Benefits include health insurance, 401k with an employer match, flexible spending account, expense account, & marketing support. Send resumes by fax: 732-914-8898 or [email protected]
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Free Online Title Insurance Calculator |
Counsellors Title Agency announced its updated Title Calculator for New Jersey home purchases & refinances at: Title Calculator
Loan officers, real estate agents and home buyers can find out how much title insurance will cost for purchases made in New Jersey.
Easy-To-Use Functionality
This online tool includes many of the endorsements involved in calculating the cost of a title policy in New Jersey. CTA's Title Calculator is a great tool for real estate salespersons, loan officers, attorneys and those who are buying or refinancing their home.
It calculates the cost of title insurance based upon the purchase price of the home, the loan amount, and the various endorsements that can accompany the loan. The calculator provides the user the scalability of selecting the various endorsements involved in the transaction.
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Handy Guide to Real Estate Sources |
Here are some of the most widely used governmental websites for the real estate industry.
I look forward to being of service to you, providing you with outstanding real-time information and some humor to make doing business a pleasure.
Sincerely,
Ralph
Ralph Aponte
Counsellors Title
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Counsellors Title Agency, Inc. specializes in providing title insurance, title search services and loan closing services serving attorneys, Realtors, banks and various mortgage companies throughout the State of New Jersey. CTA offers full search and insurance capabilities within all 21 counties of New Jersey for commercial, residential and new construction purchases in our Toms River, Freehold, Chatham, and Union locations.
CTA is equipped with the latest digital technologies to ensure a complete and timely transaction.
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Mr. Ralph Aponte
Our Office: 504 Hooper Avenue,
Toms River, NJ 08753
Phone Number: (732) 914-1400
Fax: 732-914-8898
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