Why Do Real Estate Agents Ask Buyers for Pre-approval?

Many buyers aren’t aware that most real estate agents will request a copy of their pre-approval letter prior to showing them a property. Some are under the impression that they can wait to contact a lender until they find a home they are interested in, assuming they won’t have a problem getting a mortgage. While you might think it unnecessary, getting pre-approved and being able to provide proof to a real estate agent is critical these days for any buyer.  Here are some reasons why a real estate agent will ask you for a letter of pre-approval.

1. Safety

Believe it or not, requesting and receiving a pre-approval letter from a potential buyer is one of the number one realtor safety tips. First of all, if the buyer has taken the time to meet with a lender to discuss a mortgage, it is likely they are serious about buying a home. But also important is that the lender has done some research on the potential buyer. The lender will find out a buyer’s social security number, address, and job history. Having this information makes meeting with potential buyers safer as there is less of a risk if the real estate agent knows identifying information about the buyer.

2. Less financial risk for all

Not all homebuyers who apply for a mortgage will get approved. Pre-approval removes a lot of the uncertainty from the home buying process. It is highly unlikely for a pre-approved buyer to be denied a mortgage once the underwriting process is complete. This allows the buyer and the realtor to confidently spend money and time arranging home inspections, appraisals, and contract details.

3. Staying within budget

The process of getting pre-approved for a mortgage loan can give you a better perspective of how much house you can afford. Lenders will often go over loan programs you are qualified for to explain your options and help you determine which program is the best one for you. Once you have all the numbers you need, you and your real estate agent can work within that budget.

4. Better terms

Getting pre-approved will help you know what kind of an offer to make when you find the house you’re looking for. You will need to know how much cash you are paying, how you are financing, what kind of loan you will obtain, etc. Without a pre-approval letter, buyers have less clarity about making an offer that’s realistic. This will also save you lots of time when it comes down to working through these details. If you already know what you can offer, you will be able to better negotiation for terms favorable to you as the buyer.

5. Sellers’ preference

Besides just being required by real estate agents, some sellers will only allow an agent to show their home to potential buyers who have been pre-approved. Sellers go through a lot of work to make their home ready for the market. They don’t want to waste their time with people who are not serious about purchasing their home.

Getting pre-approved is easy and can give you the confidence you need to start your home buying search.

Can I Use a Reverse Mortgage to Pay for Assisted Living?

If you fully own or almost own the home you live in, you may be considering getting a reverse mortgage. There are certainly financial benefits to reverse mortgages, especially for seniors who have paid off their home. Many seniors are now considering using a reverse mortgage to pay for in-home assisted living services. But is this the right choice for you? Here we will look at what to consider if you are thinking of getting a reverse mortgage to pay for assisted living.

A reverse mortgage is a financial agreement in which the homeowner agrees to give up equity in their home in exchange for payment. This loan is based on the home’s equity. Generally, the older you are when you take out a reverse mortgage, the more you will receive in payment. Usually, a reverse mortgage is a good idea for those who have reached a certain age and have paid off their house. Once a reverse mortgage borrower dies, the lender is repaid by taking title to the property. They will return any excess equity to the heirs of the former borrowers.

A reverse mortgage will provide payment in the form of cash or through equity lines of credit. Borrowers often choose to receive payment through credit as opposed to cash because equity credit lines increase over time. These payments can be used for many purposes, but a common purpose for older borrowers is for in-home assisted living. Reverse mortgages typically stop paying out once the borrower stops living in the home regularly.

The lending guidelines for reverse mortgages are pretty straightforward. Most of the time, lenders do not check applicants’ credit histories in order to approve them for a reverse mortgage. In order to qualify for a reverse mortgage, borrowers must be at least 62 years old. They must also own a home that has significant equity built up. Many lenders prefer the home to be fully paid off, but some will accept an applicant whose home is mostly paid off. The homes lenders will consider for a reverse mortgage are typically single family homes or 2-4 unit homes where the owner has residency in one of the units.

While a majority of reverse mortgages are through the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM) program, your home does not have to have an FHA mortgage to qualify for a reverse mortgage. It is also important to note that as long as one borrower on the loan still resides in the home the mortgage remains in effect. This means that even if one spouse in a couple with a reverse mortgage must leave the home to live in an assisted living facility full-time, the spouse remaining in the home will still be covered with the reverse mortgage.

This is a financial situation you should enter into with some caution. If you are approved for a reverse mortgage, you still need to make sure you are staying current with any property taxes. Frequently, seniors will live off of their reverse mortgage payments while failing to pay for taxes. This can cause your home to be foreclosed on, which would allow the lender to take the home. For this reason, it is a great idea to receive the advice of a real estate attorney or go through financial counseling before you apply for a reverse mortgage.

Veitengruber Law is experienced in handling even the most complex issues of real estate law. If you are considering a reverse mortgage, we can help you with the details. Our attorney, George Veitengruber, can answer all your questions and provide you with custom solutions for your real estate goals.

 

NJ Real Estate: Inspection vs Walk Through

The walk-through will come towards the end of the home buying process, often the day before or morning of closing. A walk-through is the final chance for you to make sure you get what you pay for. Your contract will provide a full breakdown of what comes with the property you are purchasing. It will list how many rooms, appliances, and amenities are included in the sale as well as the condition they are in. If a contract states there are X number of bathrooms and X number of toilets, the walk-through ensures the seller is not flubbing on these details.

There is also a standard in New Jersey real estate, as well as in most states, for a property to be presented to the new homeowner as “broom-clean.” While it doesn’t have to be totally spotless, it should be in generally clean condition without any excess belongings left behind. The walk-through is your chance to note any remaining possessions from the previous owner and ask for them to be removed. Likewise, it is a time to notice things that are missing that you expected to be part of the sale. It often happens that buyers assume certain window treatments or light fixtures will be included in the sale only to be disappointed when they are not. If these things were included in the contract, make sure they are still there when you do the walk-through.

While a walk-through is typically done right before closing, in the instance of a condominium where a buyer may not have seen their actual unit up front, a walk-through might be scheduled a few weeks before closing. A condo walk-through normally includes a punch list, or a list of missing or broken items that should be fixed before closing.

During a walk-through, you should note any missing or broken appliances, holes, gaps, or major cracks in the walls or ceiling, and any legally essential safety equipment, like smoke detectors and carbon monoxide detectors. If you find anything missing or deficient, this is the last chance you have to bring it to the attention of the seller before closing.

The home inspection will come before the walk-through. The inspection is how the buyer determines the condition of the property to ensure there are no surprise issues or hidden damage. The buyer does not automatically have the right to inspect the property. Most buyers will put an inspection clause in the real estate contract that gives them the right to inspect the house before a sale has been finalized. The purpose of an inspection is not to nitpick over minor blemishes in the appearance of the property, but to uncover any glaring flaws.

Unless you are very experienced in real estate or home construction, you should hire a professional for the inspection. A professional will understand what to look for and will think of things you might not—like checking for a buried oil tank. If there are defects present, the buyer can attempt to negotiate to get these problems fixed. Depending on the way the market is leaning, the seller can decline or accept these terms before agreeing upon the sale. In a seller’s market, a seller can—and often times will—decline to fix even major issues.

If issues arise in negotiations over repairs, you don’t have to deal with it alone. Veitengruber Law can help you through every step of the real estate process. We can help you reach your real estate goals and make sure you are getting the best deal in the process.

NJ Real Estate Market is HOT as Weather Turns Cold

NJ real estate

In general, the real estate market tends to cool off with the weather. New Jersey sees some messy winters and it isn’t uncommon for low temperatures to keep people bundled up in their (current) homes. It’s true that some people looking for real estate in NJ will wait until the warmer months to pursue their real estate goals. But this year might see some atypical market trends emerging during the winter months. Being aware of these trends can help you successfully sell your home even when there’s a chill in the air. Here are some things you can watch for this winter.

1. Fewer Homes on the Market

Most people want to list their homes during the spring and summer months due to the commonly held belief that more potential buyers are house shopping in the warmer seasons. Because buyers know this, some may wait until the chilly season passes to seriously look for their dream home. However, less homes listed for sale doesn’t mean that your home won’t sell. In fact, when there are fewer homes on the market, buyers who are looking will be more inclined to take a second look at what you have to offer.

2. Carryover Into the New Year

Unlike previous years, real estate insiders expect the winter months this year to be busier than normal. Thus far in 2019, there were more people looking for houses than there were homes on the market. Buyers that weren’t able to purchase a home during the popular summer months will still be on the lookout for their dream property. Because of this, the market is rich with buyers and will be well into the winter months. This winter could be very profitable for the seller willing to keep their house open through the colder months.

3. “Interested Parties Only”

While there will be more buyers in this year’s winter market than normal, there are still less interested parties than in the spring and summer months. The holidays and cold weather tend to slow down the market. Buyers who are still looking in the winter are generally more serious about making a move and they know they’ll have less competition for homes during this time of the year.

4. You May Be More Motivated to Accept an Offer

If you have had your home listed for awhile, chances are good that you are eager to get the property sold. The longer a property sits on the market, the more it costs any owner. As your motivation to sell increases, you’ll likely find that you are willing to compromise a little more so that you can ultimately make the sale happen.

5. Real Estate Prices Are Rising

Zillow predicts that NJ home valuations and sale prices will increase another 1% as we round the corner into 2020. Specifically, single family homes will be in hot demand throughout this winter and into the warmer months of this upcoming spring and summer. Because demand looks like it will continue steadily, prices are only expected to rise further as we move through 2020, which is great news for sellers!

Neighborhoods throughout New Jersey are experiencing a hot market for real estate this winter. If you are thinking about buying or selling a property this season, Veitengruber Law has you covered. Your real estate plans don’t have to freeze with the temperatures. When you need us to look over your real estate contract, title paperwork and/or attend closing – we’re here for you no matter how frightful the weather.

Forcing the Sale of Real Estate in New Jersey

real estate in new jersey

When it comes to selling real estate, many problems can arise between the time a property goes on the market and closing. Financing issues, disagreement over the closing date, or discrepancies regarding the condition of the property can cause delays. Most of the time, the buyer and the seller are able to resolve these problems and work towards the mutual goal of a sale, but this isn’t always the case. If a deadlock occurs, either party could incur costs or face a potential lawsuit. If monetary compensation is not sufficient to repay a potential buyer for damages incurred, forcing the sale of real estate to the buyer may be the only way to resolve the issue.

“I don’t want to lose my dream home!”

Because of the unique nature of most real estate, sometimes financial compensation alone is not enough to make up for the loss of a real estate opportunity. If a buyer is attempting to buy their dream home or a uniquely advantaged commercial property and the seller fails to sell the property, this is considered a breach of contract. In this case, the only way to fairly compensate the buyer is to force the sale of the property to the buyer. This is also called specific performance. In New Jersey, specific performance is used to remedy the seller’s breach of contract and repay the buyers monetary damages.

In New Jersey, to establish the right to specific performance, a party must demonstrate three things:

  1. The contract is valid and legal
  2. Terms of the contract are clear enough for the court to determine the responsibilities of each party with reasonable certainty
  3. That an order forcing the sale of a property would not be harsh or oppressive to the seller

A court will look at a situation closely before ordering the sale of a property. Even if a contract is legally enforceable, there are outside circumstances that can impact the reasonableness of the sale of a property. The court will consider whether or not specific performance will unfairly disadvantage the seller or if denying specific performance will deny the buyer adequate compensation. Often, these court proceedings will involve a thorough investigation into the circumstances behind the real estate transaction and why a contract fell through. The court must confirm the buyer acted in a fair and equitable manner and behaved conscientiously in relation to the contract before a force of sale will be considered.

What if I don’t have a written contract in place?

While it is certainly more clear cut with a written contract, you do not have to have a contract to force the sale of real estate. Originally, New Jersey law forbade the enforcement of a contract for the sale of real estate if the contract was not in writing. However, a revision to law now allows for the enforcement of an oral contract in the event that clear and convincing evidence can be presented confirming the validity of a contract. The buyer must present proof that identifies the real estate in question, the names of the parties involved, the nature of the sale, and the existence of a mutual agreement to sell the property.

The forced sale of a property could also happen if a property’s co-owners cannot agree to sell a joint-owned property. In this situation, one co-owner can file a lawsuit against the other co-owner(s) to force the sale of the property. This is called a partition lawsuit. While these lawsuits are certainly a last resort in the eyes of the courts, and can be very costly for those involved, they do happen. The proceeds of the sale of the property will be divided evenly between owners based on established ownership interest percentages. In most cases, all parties involved in a partition lawsuit would net more from a voluntary sale of property than a court-ordered sale after a legal battle. Because of this, forcing the sale of a property with joint-owners should be a last resort.

If you are seeking to force the sale of real estate, you must file with the Chancery Division, General Equity Part of the Superior Court in the county where the real estate in question is located. Forcing the sale of a property can require significant documentation before a court will render judgment. Gathering all documentation required for discovery can be time consuming and confusing. Getting the help of an experienced real estate attorney can increase your chances of success in obtaining a force of sale.

Veitengruber Law is a full service New Jersey real estate team. We can help you navigate the complexities of any real estate contract. Understanding your rights as a buyer or a seller in a real estate transaction can ensure you do not miss out on your property dreams. We can help you reach your real estate goals!

 

 

 

Creating a NJ Use and Occupancy Agreement that Works for Buyer and Seller

use and occupancy agreement

“Help! My New Place Isn’t Ready, But My Home’s Buyers Need to Move In!”
How a Use & Occupancy Agreement can keep everyone in a “home sweet home” while all the paperwork is finalized.

Congratulations – you sold your home! And you found your new digs too!

But now you’re in that awkward in-between stage, hammering out the final details of the sales and juggling settlement dates on all the properties. What happens if those dates don’t align, and your buyer needs to move in to your house before you’re ready to move out?

Welcome to the land of Use & Occupancy agreements, where either you or your buyer agree to stay at the home for a set fee and a set time until all the dust settles and the transfer of the properties is legally complete.

What Is a Use & Occupancy Agreement?

A Use & Occupancy agreement – also known as a U&O – grants someone permission to do just that – use (get the benefit of) and occupy (inhabit) a property. No more, no less. For example, it can grant your buyer permission to move in and live at your home, or perhaps just leave a couch, bed, and other personal items there, until ownership is transferred. Or, it can allow you to stay in your home after settlement until your new home’s settlement is also finalized.

Five Tips to Ensuring Your U&O is A-OK

Home buying is stressful enough; follow these tips to keep your U&O agreement stress-free.

  1. Set Term Limits. Confirm the start and end dates, and how to remove the occupant if those dates are not honored.
  2. Show Me the Money. Set a rate that makes everyone comfortable with the compensation for use of the property. Be sure to include who’s responsible for electric, water, wi-fi, cable, telephone, and any other household fees. (It’s not a lease, but it should cover many of the same financial obligations.) Consider the benefits of a daily rate, just in case the agreement needs to be shorter or longer than originally anticipated.
  3. Practice Good Housekeeping. Who will be responsible for liability insurance? Who handles regular maintenance and upkeep? Can the buyer start home renovations during the U&O agreement period? Are you going to establish an escrow account to cover any damages that occur? Work out those details ahead of time.
  4. Take a Walk. Moving day is not the time for surprises. Just as you’d do a walk-through before settlement, make sure you do a walk-through at the start and end of the U&O term so everyone can agree on any changes to the condition of the property, and how to handle the situation if it arises.
  5. Spell it Out. Type it out in Word, hand write it on your favorite stationery, or grab a napkin and scribble it down at your favorite restaurant, but make sure you document all the terms of your U&O, and have both parties sign and date it. And if you’d like help ensuring that all the I’s are dotted and the T’s are crossed in your U&O, give us a call at Veitengruber Law. We’ll be glad to help you bridge the gap and keep the property – and everyone in it – happily occupied during the transition.

 

NJ Quitclaim Deed: Explained

During a real estate transaction, there are several different ways to transfer title to a property. The most common type of deed used is a warranty real estate deed. This deed is used when a house is sold to a third party in a typical real estate transaction. The warranty deed is a legal promise that the person transferring the property has good title and the right to sell the property. A warranty deed includes protections for the buyer, the seller, and promises there are no liens on the property. Although a warranty deed is the most common deed, it isn’t always the best choice for every real estate transaction. Here we are going to look at quitclaim deeds and when to use them.

A quitclaim deed is often used when transferring property between family members. A quitclaim deed will transfer the title of a property but makes no promises about the owner’s title. In other words, a quitclaim will transfer the owner’s entire interest in the property to the person receiving the property, but it only transfers property the owner actually owns. Therefore, if the property is jointly owned—or split among different family members as with an inheritance—the owner can only transfer the portion of the property he or she actually owns.

It is important to note that deed transfers, warranty or quitclaim, only affect the ownership of a property and do not impact the mortgage on the property. This is especially important to keep in mind for those in a divorce situation where one spouse may quitclaim the property to the other. While the spouse relinquishing ownership over the property will have no rights to the property, they will still be responsible for the mortgage unless they remove themselves from the mortgage itself.

With all of that said, when should you use a quitclaim deed? Typically, if you are transferring ownership of a property without a traditional sale, it will be easier to use a quitclaim deed. This is often the case when property is being transferred between family members, married spouses, divorcing spouses, or when the property is being transferred to a living trust. It can also be used to clear up title to a property if there is a question about ownership right after a title search. Unlike with a warranty deed, a quitclaim deed requires no title search or title insurance making it fast and easy.

There is no quitclaim deed format specifically for New Jersey. An experienced real estate attorney can help you use a standard format to create your quitclaim deed. You will need to use the legal description of the property. This can often be found on the existing deed, a tax bill, or by contacting your local county clerk’s office. Once the quitclaim deed is completed, you will need to get it signed and notarized in the presence of a notary public. After that, you will need to file the deed with the county clerk’s office where the property is located. There is typically a small filing fee that varies by county.

As a full service real estate and estate planning law firm, Veitengruber Law can guarantee that your quitclaim deed is completed properly in compliance with local laws as well as filed correctly. Our  attorney and real estate team strive to handle all transactions with efficiency and professionalism. We can help you determine when and how to use a quitclaim deed to achieve your real estate goals.

Top 5 Reasons to List Your NJ Home for Sale This Winter

Spring time is widely considered the best time to sell a house. Potential buyers are looking to take advantage of the warmer months for a big move. But if you are looking to sell your home, you don’t necessarily need to wait for the weather to warm up before you enter the real estate market. In New Jersey, selling your home during the colder months has some great advantages. Here are five reasons to sell your home this winter.

  1. Less Competition

With most people putting their homes up for sale in the spring, the market is super crowded with plenty of options. On the other hand, there is typically a low inventory throughout the winter months. One of the best reasons to list your home when temperatures drop is you will have less competition. With fewer homes for sale, there is a better chance your home will not get overlooked by potential buyers. It will be easier for you to grab buyers’ attention and keep it if you sell during the winter.

  1. Growing Families

September is on average the most popular month of the year to have a baby. Any parent knows how quickly a home can “shrink” with the addition of a new baby. This means that growing families are more likely to be looking for a bigger home at the end of the year. These buyers are motivated by running out of space and a time crunch to get moved and settled before the next school year.

  1. Serious Home Buyers

Not every single person who looks at a home for sale is actually looking to buy. Some people start viewing homes while they’re still contemplating whether or not they really want to buy a home. Since homes tend to go on the market in the spring, this is also when real estate window shoppers are the most abundant. On the flip side, those who are viewing houses in the colder months tend to be serious. Buyers who are ready to move don’t want to miss out on a great house by waiting until the spring.

  1. End of Year Financial Payouts

Year-end performance reviews and holiday bonuses mean a potential buyer has more money to work with when buying a home. First time buyers might be waiting for these payouts to go towards a down payment. Homeowners who receive a raise might be looking to upgrade their living situation. Financially flush buyers are more likely to be serious about a real estate purchase.

  1. Corporate Relocation

In New Jersey, the end of January and beginning of February are statistically the most popular time for job relocations. These buyers need to move quickly and are very motivated to find a home close to their new placement. Once these buyers find a home to meet their requirements, they are normally ready to sign on the dotted line. This urgency can be a great advantage for someone selling a house in the winter months.

If you are thinking about selling your home, there is no better time than now! Don’t be intimidated by a supposedly tougher winter market. There are plenty of buyers looking for a new home during the colder months. Veitengruber Law is a full service real estate law firm any time of the year. If you are selling a house this winter, don’t close without the help of our experienced real estate team. We are ready to sit down with you for a free consultation to discuss your real estate goals.

Financing a Home as a Single Parent: What are my Options?

home ownership

Being a single parent isn’t easy. There are many unique financial challenges single moms and dads face as a one income household. For many single parents, buying a home can truly seem like an impossibility. But don’t give up on your dream of homeownership just yet. There are plenty of loan and assistance programs single parents can take advantage of, you just need to know where to look. In New Jersey, there are many state and federal assistance programs for home buyers with specific circumstances. While none of these categories explicitly list “single parents,” they can be a great benefit for those looking to buy a home with one income.

HUD 

One of the best places for single parents to start their home search is the U.S. Department of Housing and Urban Development (HUD). Contacting your local New Jersey HUD office can give you access to resources that will help you find housing options as well as demystify the home-buying process. A HUD housing counselor can fill you in on local home buying programs you might not be aware of or help you obtain a loan. Some single parents may also qualify for subsidies and extra assistance that will help you afford decent housing (depending on your income and employment).

FHA

Federal Housing Administration (FHA) loans are popular for many first time home-buyers, including singles on their own as well as single parents. FHA loans are government insured and easier to qualify for than other similar loans. There are many benefits associated with FHA loans that make them appealing to single parents, including a 3.5% down payment, lower credit score minimums, and low monthly mortgage insurance rates. FHA loans are also flexible about how a first-time homebuyer is defined. If you are recently divorced or become a displaced homemaker, you can qualify as a first-time homebuyer as long as the only residence you’ve ever owned was with a former spouse.

VA

Veteran Affairs (VA) loans are also an excellent resource for single parents. If you are a single service member, a veteran, or the surviving spouse of a veteran, you could be eligible for VA loan programs. There are a number of benefits for qualified buyers, including waived down payments and mortgage insurance, low-interest rates, and on-going support throughout home ownership. If you are facing foreclosure, the VA can step in to help you keep your home or find a new residence. In the event of a work-related disability, there may be additional Veteran’s benefits you can take advantage of.

USDA

The United States Department of Agriculture (USDA) offers a few different programs for low- and moderate-income home buyers in rural areas. Even if you aren’t sure that you live in a “rural” area, the USDA’s programs are still worth looking into. Many of the regions where programs are offered are located just outside major cities. USDA loan programs offer low interest rates and zero down payment options. Qualified borrowers can get 100% financing and the mortgage insurance premium is one of the lowest offered in any program. USDA loans do have an income maximum, but most single parents do not meet this maximum.

Private Lenders

Some private lenders will offer loan programs for single income borrowers. These custom loan programs can cater terms to your specific needs to help ensure that loan applicants get pre-approved for a mortgage. These custom loan programs can include help with your credit score or assistance with your down payment, among other things. While not all lenders will offer these kinds of programs for single parents, it is worth looking into as you begin your home search.

 

As a single parent, you aren’t limited to these programs. Your county, city, or even township might offer their own programs to help the single parent home buyer. Don’t lose hope in your dreams of owning a home. If you would like help getting started or with the application process, Veitengruber Law is more than happy to help you get on the path to home ownership!

 

 

 

 

 

 

 

The Multiplier Effect: What it Means for You in 2020

multiplier effect

In 2020, as you consider where and how to spend your hard-earned paychecks, there’s one economic force we at Veitengruber Law would ask you to consider: The Multiplier Effect.

Why exactly is it that money must be spent locally to benefit the community? In short, it boils down to the multiplier effect, which states that each dollar spent has an impact that is greater than the original sum.

For example, if you were to visit a New Jersey locally-owned hardware store to purchase a new door for your home rather than choosing to order from a big-box chain, the money you spent will allow that store owner to earn profits and pay a local employee, who will likewise spend money in the community, hopefully at another local shop, thus multiplying the positive impact of the original amount spent.

In this way, each dollar spent locally has the potential to send positive economic reverberations throughout the region, and will continue to do so as long as the majority of cash earned continues to circulate locally.

When we think about cities and towns in NJ that have gone from thriving and vibrant to economic wastelands, it is evident that these communities lack local investment. Without local businesses and investors reinvesting their wealth, the very infrastructure supporting the community fractures and collapses.

In order to avoid such conditions, businesses and investors alike must commit to the local communities that support them. By the same token, consumers can maximize the impact of every dollar spent by finding local businesses to support.

What will the multiplier effect mean for you as a New Jersey resident in 2020? Should you cancel your Prime account and forego the convenience you gain as a modern citizen of a global economy? Of course not. There are, however, ways you can spend locally without having to restructure your life.

First, if you’re in the fortunate position to have the capital to purchase an investment property in the new year, consider looking nearer to home rather than just shopping for the best bang for your buck. Not only will doing so encourage additional investments – people can’t invest money they don’t have, after all – but it will also improve the New Jersey landscape by ensuring property development continues to happen right here where we live.

Furthermore, every dollar spent in New Jersey is not only just earned and re-spent, but it is also taxed! Consider that cash spent locally can be taxed repeatedly – nearly indefinitely – until someone in that cycle breaks the chain by spending the money elsewhere. Tax dollars are absolutely essential to the establishment and maintenance of vital community services: schools, libraries, parks, and public transportation are just a few of the most beloved public services, none of which will survive without a steady stream of local spending.

What if you’re a first-time home buyer rather than a big-shot investor? Are the dollars you spend really going to have a significant impact, or does massive impact only accompany huge property investments? The answer couldn’t be clearer.

In the calendar year 2019, if we only consider NJ buyers who purchased new homes, they will have splashed out more than two billion dollars. When the National Association of Home Builders crunched the numbers, they calculated that the multiplier effect of such an astronomical sum would account for the creation of nearly four million local jobs, over $180 million toward wages and income of those workers, and $225 million in revenue for local tax funds.

Furthermore, this two billion will still be positively impacting the community after 12 months! Clearly, if we want our incomes to sustain, nurture, and grow the very towns in which we live, we have to commit to spending, investing, and hiring locally whenever possible.

If this article has sparked you to action, and 2020 will be your first year focusing on keeping your money circulating here at home in NJ, we couldn’t be more delighted. Here are easy-to-use resources to get you started: