Buying a home • Selling a Home • October 26, 2020

Home Values Projected to Keep Rising

by Better Homes and Gardens Green Team

As we enter the final months of 2020 and continue to work through the challenges this year has brought, some of us wonder what impact continued economic uncertainty could have on home prices. Looking at the big picture, the rules of supply and demand will give us the clearest idea of what is to come.

Due to the undersupply of homes on the market today, there’s upward pressure on prices. Consider simple economics: when there is high demand for an item and a low supply of it, consumers are willing to pay more for that item. That’s what’s happening in today’s real estate market. The housing supply shortage is also resulting in bidding wars, which will also drive price points higher in the home sale process.

There’s no evidence that buyer demand will wane. As a result, experts project price appreciation will continue over the next twelve months. Here’s a graph of the major forecasts released in the last 60 days:

I hear many foreclosures might be coming to the market soon. Won’t that drive prices down?

Some are concerned that homeowners who entered a mortgage forbearance plan might face foreclosure once their plan ends. However, when you analyze the data on those in forbearance, it’s clear the actual level of risk is quite low.

Ivy Zelman, CEO of Zelman & Associates and a highly-regarded expert in housing and housing-related industries, was very firm in a podcast last week:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

With demand high, supply low, and little risk of a foreclosure crisis, home prices will continue to appreciate.

Bottom Line

Originally, many thought home prices would depreciate in 2020 due to the economic slowdown from the coronavirus. Instead, prices appreciated substantially. Over the next year, we will likely see home values rise even higher given the continued lack of inventory of homes for sale.

Selling a Home • October 26, 2020

Two Important Impacts of Home Equity

by Better Homes and Gardens Green Team

Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from CoreLogic, the average homeowner gained $9,800 in equity over the past year. In addition, experts project 2020 home prices to continue rising. With prices going up, equity gains will also keep accelerating. Black Knight just reported:

“The annual percent change in the overall median existing single-family-home price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.”

Jeff Tucker, Senior Economist at Zillow, just qualified recent price increases as “jaw-dropping” and “within a hair’s breadth of double-digit year-over-year appreciation.”

Knowing equity will help enable many homeowners to better survive the economic distress caused by the ongoing pandemic, it’s important to break down two key homeowner benefits of increasing equity.

1. Equity Increases a Homeowner’s Options to Buy a New Home

Aside from the financial damage of the last seven months, there has also been a tremendous emotional toll on many people. Shelter-in-place mandates, quarantine requirements, and virtual schooling have all made us re-evaluate the must-have requirements a home should deliver. Having equity in your current house gives you a better opportunity to move-up or build your perfect home from scratch.

Mark Fleming, Chief Economist at First American, recently explained:

“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”

If you need to make a move, the equity in your current home can help make that possible – right now.

2. Equity Enables Homeowners to Help Future Generations

An increase in home equity grows overall wealth, which can transfer to future generations. The Federal Reserve, in an addendum to their recent Survey of Consumer Finances, explains:

“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”

The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:

“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children’s educational success by paying for college or private schools, which can in turn increase their children’s ability to accumulate wealth.”

Bottom Line

Equity can help a homeowner grow their confidence in a more stable financial future. It provides near-term move-up options and creates a positive impact for future generations. In many cases, the largest single investment a person has is their home. As that investment appreciates in value, financial options increase too. Connect with one of our Sales Agents today to talk about your new investment!

Agency News and Awards • October 22, 2020

Krissy Many achieves CIREC Designation

by Nicole McCormick

Krissy Many has achieved her CIREC Designation. She is expanding her expertise to better serve her clients with the Commercial & Investment Real Estate Certification

What The CIREC Designation Means

According to the NAR Code of Ethics, agents must have the proper training for specialized services. Agents undertaking the extensive CIREC course obtain the needed foundation to provide commercial and investment real estate services. A wide range of topics are covered. Included are tax implications, 1031 Exchanges, valuing property, and more. Also covered, preparation of financial analyses, and comparing financial impacts of leasing vs. buying. Furthermore, negotiating concepts and tactics are important parts of the course.

Agency News and Awards • October 16, 2020

3rd Quarter 2020 Sales Leaders

by Nicole McCormick

Congratulations from Geoff Green, President of Green Team Realty, to our 3rd Quarter Sales Leaders

3rd Quarter 2020 Sales Leaders for Green Team Realty have been announced. They are Jennifer DiCostanco for Green Team New York Realty and Keren Gonen of Green Team New Jersey Realty.

“Jennifer and Keren – Two big names in the Orange & Sussex County Real Estate business. It’s not easy to be the third quarter sales leader because it’s the biggest production quarter of the year for Realtors. Those who place the highest in Q3 are usually the annual winners as well. Both Jennifer and Keren are perennial All Stars in this industry and for good reason. They both work extremely hard in and on their businesses, and they both have exceptional reputations with their clients. Congratulations to both ladies and I have to say that I won’t be one bit surprised to see both of them do it again year after year.”

Jennifer DiCostanzo, Green Team New York Realty

This is not the first Sales Leader Award for Jennifer DiCostanzo. She has been the Yearly Sales Leader since joining Green Team in 2015. In addition, she was 1st Quarter Sales Leader for 2020. Jen received the MVP Award in 2017 for more than $10 Million in sales. In 2019 she received that award for more than $12 Million in sales. She attributes her success to steadfast dedication to each of her clients. Furthermore, she has a plethora of knowledge and experience which is evident in each transaction and results in creating strategic approaches and facilitating solutions. Jen had this to say about achieving 3rd Quarter Sales Leader:

“Thank you to my clients and colleagues. We adapted to covid protocols and worked together safely during the strongest sales quarter of the year, during pandemic times.”

Keren Gonen, Green Team New Jersey Realty

This is not Keren Gonen‘s first time as a Sales Leader, either. This is her fourth time as Quarterly Sales Leader. Most recently, she was named Sales Leader for the 2nd Quarter of 2020. And in 2017, the year Keren started at Green Team New Jersey Realty, she was Yearly Sales Leader.

Keren said the following about her latest achievement:

“I was given this opportunity to say a few words about this achievement and although I am grateful for being in this place, at this time, I would like to say the following: I know how scary this time is for all of us. America is in turmoil, due to Corona, The Elections, The Economy, Our rights and Freedom and so much more. It is this uncertainty, now more than ever, that reminds us that our safe haven is our HOME. This is the reason for the spike in sales in Real Estate. We all want to feel SAFE. It is now, more than ever, that we look inside our homes and our hearts and decide what is important and what is not. It is now that we must all come together, not fall farther apart. To those who have chosen me as the one to accompany them on this journey, I am grateful. I hope that I have made, at least in part, your need to relocate a bit easier, a bit less stressful, and that I contributed some peace in these difficult times. For all of that, I am grateful.”

Buying a home • October 13, 2020

Do You Have Enough Money Saved for a Down Payment?

by Better Homes and Gardens Green Team

One of the biggest misconceptions for first-time homebuyers is how much you’ll need to save for a down payment. Contrary to popular belief, you don’t always have to put 20% down to buy a house. Here’s how it breaks down.

A recent survey by Point2Homes mentions that 74% of millennials (ages 25-40) say they’re interested in purchasing a home over the next 12 months. The study notes, “88% say they have significantly less savings than the average national down payment amount, which is $62,600.”

Thankfully, $62,600 is not the amount every buyer needs for a down payment in the United States. There are many different options available, especially for first-time homebuyers (millennial or not). That amount can also be significantly less, depending on the purchase price of the house.

According to the National Association of Realtors (NAR), “The median existing-home price for all housing types in August was $310,600.” (These are the latest numbers available). NAR also indicates that:

“In 2019, the median down payment was 12 percent for all buyers, six percent for first-time buyers, and 16 percent for repeat buyers.” (See graph below):

That means if a qualified first-time buyer purchases a home at today’s median price, $310,600, with a 6% down payment, in reality, the down payment only amounts to $18,636. That’s nowhere near $62,600.

Knowing there are also programs like FHA where the down payment can be as low as 3.5% of the purchase price for a first-time buyer, that up-front cost could be significantly less – as little as $10,871 for the same home noted above. There are also other programs like USDA and loans for Veterans that waive down payment requirements.

The Point2Homes study also shares how much millennials have indicated they’ve saved for a down payment. As we can see in the graph below, 39% have already saved enough for a down payment on a median-priced home. Another 47% are close to reaching that goal, depending on the purchase price of the home.Unfortunately, the lack of knowledge about the homebuying process is keeping many motivated first-time buyers on the sidelines. That’s why it’s important to contact a local real estate professional to understand the requirements in your local area if you want to buy a home. A trusted agent and your lender can guide you through the process.

Bottom Line

Be careful not to let big myths about homebuying keep you and your family out of the housing market. Let’s connect you with one of our Sales Agents to discuss your options today.

Selling a Home • October 13, 2020

6 Reasons You’ll Win by Selling with a Real Estate Agent This Fall

by Better Homes and Gardens Green Team

There are many benefits to working with a real estate professional when selling your house. During challenging times, like what we face today, it becomes even more important to have an expert you trust to help guide you through the process. If you’re considering selling on your own, known in the industry as a For Sale by Owner (FSBO), it’s critical to consider the following:

1. Your Safety Is a Priority

Your family’s safety should always come first, and that’s more crucial than ever given the current health situation in our country. When you FSBO, it is incredibly difficult to control entry into your home. A real estate professional will have the proper protocols in place to protect not only your belongings but your family’s health and well-being too. From regulating the number of people in your home at one time to ensuring proper sanitization during and after a showing, and even facilitating virtual tours for buyers, real estate professionals are equipped to follow the latest industry standards recommended by the National Association of Realtors (NAR) to help protect you and your family.

2. A Powerful Online Strategy Is a Must to Attract a Buyer

Recent studies from NAR have shown that, even before COVID-19, the first step 44% of all buyers took when looking for a home was to search online. Throughout the process, that number jumps to 93%. Today, those numbers have grown exponentially. Most real estate agents have developed a strong Internet and social media strategy to promote the sale of your house. Have you?

3. There Are Too Many Negotiations

Here are just a few of the people you’ll need to negotiate with if you decide to FSBO:

The buyer, who wants the best deal possible
The buyer’s agent, who solely represents the best interest of the buyer
The inspection companies, which work for the buyer and will almost always find challenges with the house
The appraiser, if there is a question of value

As part of their training, agents are taught how to negotiate every aspect of the real estate transaction and how to mediate the emotions felt by buyers looking to make what is probably the largest purchase of their lives.

4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage

Having a buyer who wants to purchase your house is the first step. Making sure they can afford to buy it is just as important. As a FSBO, it’s almost impossible to be involved in the mortgage process of your buyer. A real estate professional is trained to ask the appropriate questions and, in most cases, will be intimately aware of the progress being made toward a purchaser’s mortgage commitment.

Further complicating the situation is how the current mortgage market is rapidly evolving because of the number of families out of work and in mortgage forbearance. A loan program that was available yesterday could be gone tomorrow. You need someone who is working with lenders every day to guarantee your buyer makes it to the closing table.

5. FSBOing Has Become More Difficult from a Legal Standpoint

The documentation involved in the selling process has increased dramatically as more and more disclosures and regulations have become mandatory. In an increasingly litigious society, the agent acts as a third-party to help the seller avoid legal jeopardy. This is one of the major reasons why the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

6. You Net More Money When Using an Agent

Many homeowners believe they’ll save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save on the commission.

A study by Collateral Analytics revealed that FSBOs don’t actually save anything by forgoing the help of an agent. In some cases, the seller may even net less money from the sale. The study found the difference in price between a FSBO and an agent-listed home was an average of 6%. One of the main reasons for the price difference is effective exposure:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

The more buyers that view a home, the greater the chance a bidding war will take place.

Bottom Line

Listing on your own leaves you to manage the entire transaction by yourself. Why do that when you can hire an agent and still net the same amount of money? Before you decide to take on the challenge of selling your house alone, let’s connect you with one of our Sales Agents to discuss your options.

Agency News and Awards • October 9, 2020

Congrats To Kristi Anderson For Reaching The Cap!

by Better Homes and Gardens Green Team

Kristi Anderson reached the cap!

Congratulations from Geoffrey Green, President of Green Team Realty, to Kristi Anderson for reaching the commission cap for company dollar contribution in 2020!

A quote from Geoff:

“Kristi’s dedication to her clients and hard work has allowed her to reach the cap on her commission with Green Team Realty. This is an outstanding accomplishment and means Kristi will now receive a 100% commission split on any deal she closes during 2020.”

Kristi’sThoughts:

“First, I would like to thank all my clients for making “capping out” possible. This a great program Green Team Realty offers and is a great motivator. It has not been easy this year with the pandemic and following safety guidelines and the ever changing requirements. However, with perseverance and determination I have helped many buyers and sellers accomplish their real estate goals during these trying times. And it was my pleasure doing so and I hope to continue this in the future.”

Green Team Realty’s commission structure is, no doubt, one of the finest in the industry, but it doesn’t end there. Our lead generation platform, certified sales assistant program, and dynamic training systems are just a few other things worth mentioning.

To learn more about Green Team Realty and why you should join our team click here.

Congratulations, Kristi!

Agency News and Awards • October 5, 2020

Meet James Colgan

by Nicole McCormick

James Colgan comes to Green Team New York Realty with an interesting background. While we’ve heard about people moving up to this area from New York City, few actually started out here, moved to the City, then moved back! However, that is exactly what James Colgan did.

Growing up in Warwick

James knows a lot about Warwick and the surrounding areas. After all, he grew up here He attended Warwick Schools, graduating from Warwick Valley High School. His family still lives here. Therefore, even when he lived in NYC he’d come back to visit. James never lost his love of Warwick.

While growing up in Warwick, James’ love of sports became evident. Furthermore, sports also defined his career path. James received his B.S in Physical Education from SUNY Brockport. At Brockport, James was president of the Men’s’ D1 Club Hockey Club, In addition, he was a member of the Physical Education Club. He then attended Southern New Hampshire University. There, James earned his M.S.in Sports Management and certification in Athletic Administration.

James Colgan’s passion for sports and coaching led him to become a physical education teacher in New York City, where he also lived, In the past, James also coached both lacrosse and golf at Warwick Valley High School during the summer enrichment program. Further, he coached Warwick’s Boys Freshmen Lacrosse Team.

The Transition to Real Estate

However, another passion began to grow. He helped his parents sell and buy a new home. Then, he was inspired to buy rental properties. The same dedication and hard work he put into his love of sports extended to his love of real estate. He enjoyed the overall experience, from renting to buying and selling a home. In addition to his teaching, he obtained his license and started working in real estate in New York City.

However, he was pulled to come back to the beautiful area he was raised in. James purchased a townhouse in Sussex County, NJ, which borders Orange County, NY. He has family and friends in Warwick, where he grew up. He has extensive knowledge of Warwick. Additionally, he is very familiar with the rest of Orange County, and Westchester. With his knowledge of real estate and of the area, James decided to join Green Team New York

Lessons learned in school

A transition from teaching and coaching to real estate is not a stretch at all. James learned the importance of building relationships and listening to the wants and needs of his students. That same caring and attentiveness that he gives his students is also shared with his real estate clients. Further, the discipline and teamwork that come with playing sports and coaching is engrained in the way he works with clients. James continues his education, keeping up to date with policies, trends, and the real estate market.

The love that James has for this area is evident. James describes Warwick as a “homey” place, where people are friendly and respectful. The eclectic shops, the Farmers Market, and the restaurants make Warwick a lovely town for people to call home. James is especially fond of the outdoor spaces and activities available year-round. Because, of course, his love of sports has not faded away. So, in his “spare” time, you’ll find James on the golf course or playing hockey.

Agency News and Awards • October 2, 2020

Congrats To Tammy Scotto For Reaching The Cap!

by Better Homes and Gardens Green Team

Tammy Scotto reached the cap!

Congratulations from Geoffrey Green, President of Green Team Realty, to Tammy Scotto for reaching the commission cap for company dollar contribution in 2020!

A quote from Geoff:

“Do you know the old saying, “Nice guys finish last”? Not at Green Team Realty. Tammy Scotto is proof positive of that. Tammy is a friend to all who know her. She uses her warm spirit and honesty in her day to day business. This translates into great sales production for Tammy because her clients truly know that she cares. “

Tammy’s dedication to her clients and hard work has allowed her to reach the cap on her commission with Green Team Realty. This is an outstanding accomplishment and means Tammy will now receive a 100% commission split on any deal she closes during 2020.

Tammy’s Thoughts:

“I am honored and grateful to the Green Team and all of my clients that have made it possible for my “capping out”. The program Geoff has in place at the Green Team is not only motivating, it’s rewarding. I love working with both buyers and sellers and this year has truly been a blessing given the year it has been. Helping both buyers and sellers on a daily basis never feels like a “job” to me. I truly LOVE what I do and my ultimate goal is to get everyone to the closing table and have it be as smooth of a process as possible.”

To learn more about Green Team Realty and why you should join our team click here.

Congratulations, Tammy!

Buying a home • September 29, 2020

Home Builder Confidence Hits All-Time Record

by Better Homes and Gardens Green Team

Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of prospective buyers of new homes.

As the following chart shows, confidence dropped dramatically when stay-in-place orders were originally mandated earlier this year. Since then, it has soared back.Looking at the three-month moving averages for HMI scores, confidence increased in every region of the country:

The Northeast increased 11 points to 76
The Midwest jumped 9 points to 72
The South rose 8 points to 79
The West increased 7 points to 85

Confidence Is Validated by the Numbers

This confidence is definitely warranted. According to a recent NAHB report, single-family housing starts increased 4.1% to a 1.02 million annual rate, and single-family permits increased 6% to a 1.04 million unit rate, meaning newly constructed homes are on the rise.

A separate report from the Mortgage Bankers Association (MBA) shows mortgage applications for new home purchases increased by 33.3% compared to a year ago. Joel Kan, Associate Vice President of Economic and Industry Forecasting at MBA, commented on the numbers:

“The housing market continued to exceed expectations in August, as housing demand for new homes stayed strong and the job market continued to recover…The new home market has maintained its path of recovery throughout the summer, and record-low mortgage rates and households seeking more space will likely continue to drive demand into the fall.”

Bottom Line

If you’re thinking about putting your house on the market but are afraid you may not find a home to buy, connect with on of our Real Estate Agents to discuss new construction opportunities in our area.

I hear many foreclosures might be coming to the market soon. Won’t that drive prices down?

Bottom Line

1. Equity Increases a Homeowner’s Options to Buy a New Home

2. Equity Enables Homeowners to Help Future Generations

Bottom Line

What The CIREC Designation Means

Congratulations from Geoff Green, President of Green Team Realty, to our 3rd Quarter Sales Leaders

Jennifer DiCostanzo, Green Team New York Realty

Keren Gonen, Green Team New Jersey Realty

Bottom Line

1. Your Safety Is a Priority

2. A Powerful Online Strategy Is a Must to Attract a Buyer

3. There Are Too Many Negotiations

4. You Won’t Know if Your Purchaser Is Qualified for a Mortgage

5. FSBOing Has Become More Difficult from a Legal Standpoint

6. You Net More Money When Using an Agent

Bottom Line

Kristi Anderson reached the cap!

A quote from Geoff:

Kristi’sThoughts:

Growing up in Warwick

The Transition to Real Estate

Lessons learned in school

Tammy Scotto reached the cap!

A quote from Geoff:

Tammy’s Thoughts:

Confidence Is Validated by the Numbers

Bottom Line

Our Offices

Ringwood, NJ

Goshen, NY Real Estate

Pine Island, NY Real Estate