Posts Tagged ‘real estate blog’

Lower Township’s Revaluation

Friday, February 19th, 2010

Sometimes a municipality in New Jersey actually shows foresight and at the same time saves itself a lot of money.  Such is the case recently in Lower Township, Cape May County.

The township completed a full-blown revaluation in 2007, raising the total value of all properties from $1.5 billion to $4.73 billion.  While the new figure was more in line with reality, it came at the time when the real estate market was in a deadfall.  Property values were dropping about a half percent per month.

A petition signed by 1,500 property owners against the new valuations put the township on notice to expect plenty of costly tax appeals.  It would also cause an imbalance in values, since those folks out of a total of 15,930 property owners in the town that didn’t bother to appeal would unfairly be picking up the new burden.

Township Tax Assessor Art Amonette undertook an in-house reval in 2009, which cost just $25,000 instead of the $1 million price tag associated with a full reval.  Smart thinking, big savings!

The completed revaluation shows that the value of the township did indeed decline, from the previous $4.73 billion down to $4.1 billion, a drop of about 15%.  About 15,500 properties had their values reduced, while another 400 saw increases.

The range of change had some properties dropping 30%, as opposed to a high of a 10% increase.  Anyone who’s value dropped more than 15% will see a lower tax bill.  A reduction less than 15% will see the owner’s tax bill increase accordingly.

So once again, the playing field appears to be leveled for Lower Township property owners.  Town officials being proactive was a wise decision all around.

- Mountain Man and City Girl    http://www.MountainManandCityGirl.com

The blogsite of Jewell Real Estate Agency, Wildwood Crest, NJ    http://www.JewellRealEstateAgency.com

RIP New Jersey COAH

Tuesday, February 2nd, 2010

A New Jersey State Senate bill recently introduced would abolish the Council on Affordable Housing (COAH), taking implementation of low and moderate income housing standards from the state and putting it in the hands of municipalities.  It’s about time.

COAH came into existence in the late 1970’s as a result of the New Jersey Supreme Court’s Mt. Laurel Decision, which basically said that municipalities cannot zone against low and moderate-income housing and must supply affordable housing.  COAH set quotas for each of the state’s 567 (now 566) municipalities.

The quota system was unfair to many municipalities, setting unrealistically high numbers for some towns.  Here in Cape May County, Middle Township is still required to offer 932 more affordable units by 2018 and Upper Township still owes over 500.  It’s unrealistic and puts a heavy burden on taxpayers, who must fund new schools and services to meet the demand of so many new residences.

Senate Bill S1, sponsored by Raymond Lesniak and Christopher Bateman, and its companion State Assembly bill A2057, would abolish COAH.  It would also do away with State-imposed calculations of affordable housing needs.  Instead, it would permit municipalities to determine their own needs.  The State Planning Commission would assist towns in facilitating opportunities for affordable housing.

The bill would require municipalities to re-examine their master plan and adopt an ordinance that provides an opportunity for an appropriate variety and choice of housing.  They must show that they have complied with their obligations under the Fair Housing Act.  Any municipality not enacting ordinances by December 31, 2011, would be required to have any developers set aside 20% of their project for low or moderate or work force housing.

What does all this mean?  COAH and its assigned numbers of affordable housing units will be put to rest.  But municipalities aren’t off the hook.  They must still offer affordable housing, but on their own terms, not Trenton’s.

-Mountain Man and City Girl    http://www.MountainManandCityGirl.com

The blogsite of Jewell Real Estate Agency, Wildwood Crest, NJ    http://www.JewellRealEstateAgency.com

Walking Away from a Mortgage

Thursday, January 21st, 2010

The family’s decision to allow their house to go into foreclosure isn’t an easy one.  But often there is no choice.  The loss of a job by one of the spouses can cripple their finances.  Even having a significant cutback in salary, such as being dropped from a full-time to part-time employee, can be enough to throw a household budget into a tailspin.

Until the past year or so, a family could rescue themselves by taking an equity line on their house, or even write a credit card check to bolster their checking  account and get them through the tough times.  But too many Americans have now found themselves cut off from being extended credit through these means.  Banks are taking the hard line, even if one’s credit score is still hovering around 800 and payments are always on time.

In 2009, there were over 2.8 million foreclosures filed in the United States.  It’s a sad statistic that puts a damper on many families’ American dream of home ownership.  Is owning a home and then losing it worse than never having owned one?

But there is one facet of these foreclosures that is particularly upsetting.  About one-fourth of last year’s foreclosures were not  because the mortgage payments couldn’t be afforded, but instead because families decided the mortgage payment simply wasn’t worth paying.  It’s called a strategic default.

Suppose a family owns a home they bought in 2004 for $450,000 with no money down.  Their mortgage payment is nearly $3,000 a month, plus PMI and real estate taxes ($500 a month average here in New Jersey).  Add in minimal upkeep and necessary repairs and it’s costing about $4,500 a month.

If a family can handle that $4,500 but has nothing left at the end of the month, they begin to wonder if it’s worth the hassle.  Especially because the house is now only worth $315,000, using the typical decline of 30% in value in the US.  When that family crunches the numbers and compares paying $1,200 to $1,500 a month to rent a similar home, many opt to take that route.

So, despite the fact that their credit will be ruined and the pleasures and comforts of home ownership will disappear, they decide to walk away from their home.  They stop making the mortgage payments – which gives them six months or so with no $4,500 payment (saving $27,000) - and prepare for life as a renter.

It’s a sad scenario.  But for many, a reality.

Mountain Man and City Girl    http://www.MountainManandCityGirl.com

The blogsite of Jewell Real Estate Agency, Wildwood Crest, NJ    http://www.JewellRealEstateAgency.com

Leave it to Beaver

Saturday, January 16th, 2010

I grew up in North Jersey in the 1950’s in one of those “Leave it to Beaver” families.  Dad commuted to work each morning in suit and tie, while Mom stayed home and attended to running the household.  She got us kids off to school each morning after feeding us a hearty breakfast and packing our brown bag lunch.  We were each given a nickel for our milk container purchase at school, later raised to an outrageous dime.

When we got home from school, Mom was there with milk and cookies, or some other goodie.  The house was spotless and absolutely nothing was out of place.  The beds were always made to the point of perfection and the hamper was empty.  Clothes were hanging on the clothes line in the backyard.

We kids hurried to change into play clothes, then rushed out the door as Mom said cheerfully, “Dinner is at 5:30.  Don’t be late.”  Needless to say, a nice, hot meal of meat, potatoes, and a vegetable were on the dinner table at 5:30.  What a life!

We had one car, which Dad used each day.  To get anywhere, our options were to ride our bikes or walk.  Mom was not our chaufeur.  We kids (mostly me because I was the oldest) were expected to mow the lawn, rake leaves, and shovel snow.  No excuses were acceptable. 

 

But that’s not today’s reality.  In statistics recently released by the US Census Bureau, concerning families comprised of a married couple with kids under 18 years old, you can see that the American way of life has changed dramatically from the Ward and June Cleaver, Wally and Beaver (okay, Theodore) days.

Two thirds of these American families have both parents working.  That’s 17 million families where the kids probably don’t have a June Cleaver to come home to every day.  Called “latch-key kids”, they come home from school to an unsupervised house.  No wonder they live on junk food, fast food, and watch too much TV and spend too much time playing video games. 

Now only 28 percent (7.3 million families) of fathers are the sole breadwinners.  That throws the Ward Cleaver model right out the window.  Another telling statistic is that in 4% of families (just under a million), the wife is the sole supporter.  Maybe that’s why beer sales are up?  Just kidding.  A lot of that can be attributed to this recession which has eliminated many construction and trades jobs.  But does Dad take up the traditional homemaker role?  Only in 16% of the families, they say.

In today’s world, a family does without any frills unless both parents are employed.  It’s the way it is.  But how many kids can never share the memories I have of coming home after school to Mom’s freshly-baked chocolate chip cookies and a loving hug.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

The Little Town That Could

Monday, January 11th, 2010

The Borough of Woodbine is located in the northwest corner of Cape May County, in southern New Jersey.  Situated in the Pinelands National Reserve, Woodbine is physically located about 20 miles from the very affluent beachfront communities of Avalon and Stone Harbor and 30 miles from trendy, historic Cape May.  But in perception, they are a million miles apart.

Woodbine shouldn’t be underestimated.  It’s the hidden gem of the county.  And continually preparing itself for future prosperity.

The rural, wooded town of 2,700 folks boasts an airport, a museum, the largest employer in the county, plenty of industry, an elementary school, recreation commission, volunteer fire department, and Belleplain State Park.

The 700-acre airport – one of only three in the county – is part of the 1,216-acre Woodbine Municipal Airport Economic Area.  It employs 27 workers with an annual payroll of two-thirds of a million dollars.  The 50-acre business park has a public sewer system in place in anticipation of future businesses locating there.  An existing rail line opens more possibilities.  A new golf course proposed by a private developer on the remaining land was scuttled when a glut of new golf courses in the county made it financially impractical.

Being one of only five towns in the 1.1 million acre Pinelands to receive the coveted Town designation, Woodbine is able to offer sewers for residences, plus commercial and industrial businesses.  That makes it attractive to businesses throughout Cape May County looking to relocated to more spacious and less pricey properties.  And the general purpose tax rate hasn’t increased in 19 years.

The little town is experiencing continual improvements.  The Sam Azeez Museum of Woodbine Heritage recently completed a $2 million renovation and voters recently approved a $3.8 million project to upgrade the school, which includes solar panel installation.  At the former landfill, Garden State Ethanol is in the permit process which will lead to building a 25-million gallon a year plant that will convert algae to ethanol.

The town owes much of its success and progress to Mayor William Pikolycky, who’s been in office for a couple decades.  Last year alone he garnered $4.2 million in grants for Woodbine.  In the past he has gotten bike trails and walking trails funded and built, and made many infrastructure improvements to the vibrant, multi-ethnic community.

So while many local communities march on as well-to-do seashore tourist locales, little Woodbine chugs along with an eye to the future.  It truly is the Little Engine That Could.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

NJDEP bungles again

Thursday, January 7th, 2010

The New Jersey Department of Environmental Protection is nothing if not consistent.  It seems that if they need to be vigilant, they’re not.  And if they need to be lenient, again they’re not. 

Case in point.  Along the Delaware Bay in the Villas section of Lower Township, Cape May County, three homes and two utility poles are being threatened by beach erosion.  A combination of last year’s uncommonly excessive rainfall – 62 inches compared to the normal 44 - and windy, stormy conditions during some of those rain events has caused the Delaware River to eat away nearly 20 feet of 6-foot high dunes.

The homeowners submitted an emergency application to the NJDEP to build a seawall at their own expense.  That’s right, they’d pay for the thing themselves.

“No way”, was NJDEP’s reply.  You see, NJDEP is still hung up on beach replenishment.  So despite the fact that the murky, churning Delaware Bay is within five feet of the corner of one home, NJDEP wouldn’t budge.  They want sand put back to rebuild the dune.  Or else leave it alone and presumably some high tide will take out the homes.

Then a new problem arose.  The beach is owned by Lower Township, not the property owners.  Lower wasn’t about to foot the bill, so they turned to good old FEMA – the Federal Emergency Management Agency – to fund the beach replenishment.  Who knows how long that bureaucracy of red tape will take?  Plus, they fund beaches on the Atlantic Ocean side of the county, where tourists flock.  The only flock on this beach are red knots, laughing gulls, sandpipers, and such.

But the issue, in reality, is that NJDEP dropped the ball in the beginning.  Their mission – since they became the country’s third DEP back on the original Earth Day on April 22, 1970 –  is to “manage natural resources and solve pollution problems”.  What better way to manage this resource than to let the property owners install a bulkhead, then storms and natural sediment movement will put a beach back, gratis.  Everybody gets what they want.

But that’s common sense, a term that usually can’t be used in the same sentence as NJDEP.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

Atlantic City Woes Continue

Thursday, January 7th, 2010

Pennsylvania Governor Ed Rendell’s expected signature today on a bill to allow table games in addition to its existing slot machines is another bit of bad news for Atlantic City.  The bill passed the state Senate 28-22 previously and the Assembly 103-89 yesterday.  Rendell threatened to layoff 1,000 state workers if the bill wasn’t on his desk by tomorrow (Friday, Jan 8, 2010).  That got legislators moving.

Pennsylvania will now permit up to 250 table games in larger casinos and up to 50 in smaller resort casinos.  Table games are poker, baccarat, blackjack, roulette, craps, and similar games of chance.  The cost of licensing is $16.5 million for the large casinos and $7.5 million for resort casinos, which is a drop in the bucket in the scope of the big picture.  The 14 casinos in the state should add an additional $250 million per year to state coffers.

Atlantic City, the No.2 casino city in the United States after Las Vegas, has seen reduced revenues for over a year, putting an added strain on New Jersey’s already bloated budget deficit.  The monopoly Atlantic City once enjoyed on gambling on the East Coast is ancient history.

Connecticut has three Indian casinos that allow slots and table games, making them the first to cut into Atlantic City’s lucrative market.  West Virginia was next, first having slots at two dog tracks and two horse tracks, then adding table games in 2007.  They recently granted a full gambling license to the infamous Greenbrier Resort in White Sulphur Springs.

Delaware has one poker venue in Wilmington, plus video poker and slots at the three “racinos”, as they call their race tracks with legal gambling.  It won’t be long before table games are installed in each of the sites.

So what is Atlantic City to do?  They will lose much of their Philadelphia area gamblers once the table games open next November or so.  Delaware’s table games will debut around the same time.  No doubt entrepreneurs will add restaurants and resort hotels near the casinos, further damaging Atlantic City’s bottom line.

Atlantic City will need to take advantage of what it’s already got for the dozen casinos, employing 36,000 workers, to be profitable.  That means marketing non-gaming venues.  Upscale, fashionable restaurants with trendy surroundings are already a big draw, as are the 200 retail, brand name, and outlet stores.

Atlantic City also has big name entertainers going for it.  Not a night goes by that the city doesn’t feature a dozen acts targeting every age group.  Glitzy, nouveau nightclubs, with a regular parade of celebrity sightings, is turning AC into a mecca for the 21-40 year old crowd.  And they have bucks to spend.

AC also offers championship boxing matches, plus those new martial art/kick boxing/in-a-cage fights.  There’s also college basketball, including the Atlantic 10 tournament each March.

Last but not least, there’s the beach.  Geez, no other casino in neighboring states has the sparkling white sands and bikini babes.  And the beach is a great place to watch an air show or fireworks or lifeguard competitions or throw a frisbee or ….

Well, maybe Atlantic City should be saying, “Reports of my death are greatly exaggerated.”  Time will tell.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

Words are Supercalifragilisticexpialidocious

Wednesday, January 6th, 2010

Isn’t the English language “supercalifragilisticexpialidocious”.  That 34 letter word, sung so handsomely by Julie Andrews and Dick Van Dyke in the movie Mary Poppins, means wonderful.  It is the longest non-medical, non-technical, non-foreign word in the English language.  Did you get all that?

Well, that is unless you consider it not really a word, since it was made up by the two brothers who wrote the song for the Disney movie.  In that case, the longest word is “antidisestablishmentarianism”, at 28 letters.  Can’t you remember back in the 1950s or ’60s being so smug because as an eight year old you knew the longest word in the English language?  That tongue twister originally meant, basically, opposition to the proposal to disestablish the Church of England.  Yikes.  Not to be outdone, some folks have added “pseudo” to the beginning of the word to stretch it to 34 letters.

In the category of English place names, there’s an 85 letter word for a certain hill in New Zealand.  I won’t bother typing it.  The two longest words in the entire English language are, well, a bit extreme.  There’s a 189,819 letter word that is the chemical name for a protein.  And the overall winner is the 280,000 word name for DNA, that molecular structure that embodies life.  The word is so long that it reportedly has never been written.  Duh.

We certainly have come a long way from the days when cavemen pointed and probably said, “Ugh”. 

The evolution of our civilization is directly tied to the evolution of our sophisticated language.  As communication became more effective, humans could interact better and progress was made.  Of course, earth still had to endure millenia of slavery, savagery, and wars, but in the end things got better because we became better communicators.  Ideas were able to be passed from one generation to the next, with each generation improving on the past.  Socrates taught Plato, who taught Aristotle, who taught Alexander the Great, and so on.  Later on, Leonardo da Vinci was followed by Copernicus, who was followed by Galileo.  Continuing the procession of ideas and thought, Darwin was followed by Einstein, blah, blah, blah.  You get the picture.

Without the continuing upgrading of language for the past 30,000 years, where would we be today?  Schools wouldn’t exist, teachers wouldn’t teach, there would be no books, no pencils, no computers.  We’d still be hunter-gatherers, living in small clans and wandering the land.  Life would be eat or be eaten, stay warm or perish.

So as you read this, contemplate the 600 generations that improved communication.  We exist as we do because the human spirit strived to be better.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

Catholic Schools reeling in Cape May County

Wednesday, January 6th, 2010

Just one day after school officials called rumors of Wildwood Catholic High School’s closing unfounded, the Diocese of Camden announced that the school will close at the end of the school year this June.  It’s just the latest round in the demise of the Catholic church in Cape May County.

In 2007, St. Raymond’s elementary/junior high school in the Villas section of Lower Township was closed by the Diocese of Camden, which oversees the Catholic goings-on in southern New Jersey.  Students, parents, and teachers were saddened, outraged, and in shock.  Students were offered the chance to transfer to Star of the Sea in Cape May or St. Ann’s in Wildwood.

Then in 2008 the Diocese announced the closing of Star of the Sea elementary/junior high school, merging it with St. Ann’s elementary/junior high school.  That didn’t sit well with Star of the Sea parents, who didn’t like the prospect of their kids be bussed to lowly Wildwood, a decidedly less affluent community.  The parents are still fighting the closing, recently taking out ads on the radio to drum up support for keeping Star of the Sea open.  Tuition at the school is around $3,500 for Catholic kids and a thousand dollars more for non-Catholics.

The diocese also previously announced the closing of the Assumption church in upscale Wildwood Crest, offering just summer services when tourists are in town.  Parishioners picketed and instituted a letter writing campaign to keep their church, which is self-supporting and not losing money, from merging with St. Ann’s.  The move by the Diocese was part of a plan to merge 14 Cape may County parishes into eight.

With all these closings happening, the biggest shock is the demise of Wildwood Catholic High School, an institution on the island since 1948.  The North Wildwood school boasts state titles in soccer and basketball, and their rivalries with Wildwood High School and other county high schools are legendary.  In the 1990’s, the school’s enrollment increased from 250 to 374 students.  A $1.5 million addition was built onto the school to handle the increase. 

But in these tough economic times, with tuition at the Catholic high school running about $6,000 per student, many parents balked at sending their kids there.  And yes, religion is less common in families than in previous times.  Enrollment is now down to 194 at Wildwood Catholic High.  The school will lose a half million dollars this year, with expected red ink of $900,000 next year if they stayed open.

Catholic parents of high schoolers will now have several options of where to send their kids next year.  To stay parochial, the options are Holy Spirit High School in Absecon (35 miles), St. Augustine in Richland (45 miles), or St. Joseph in Hammonton (52 miles).  Locally, the students can attend their home public high schools which are Wildwood HS, Lower Cape May Regional HS, Middle Township HS, Ocean City HS, or Cape May Technical HS. 

Unlike St. Raymond’s, which now sits unused and gathering dust, Wildwood Catholic will not be mothballed.  The school will become the new home of the St. Ann and Star of the Sea merger and used for church activities, offices, and ministry.  It presumably will be called Cape Trinity Catholic School.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

New Jersey Entices Solar

Tuesday, January 5th, 2010

New Jersey has the reputation of being one of the most business-unfriendly of the 50 United States.  It’s well deserved.  They did it the old-fashioned way – they earned it!

But solar power is the exception.  New Jersey is mandated by the state’s Energy Master Plan to provide 20 percent of its energy through renewable sources by 2020.  To reach that lofty goal just 10 years away, the state is offering monetary incentives to get it done.  And alternative energy providers are lining up to cash in.

The state set up a system whereby solar systems – whether at a private residence or a commercial site – can earn Solar Renewable Energy Certificates.  Each 1,000 kilowatt hours of energy produced earns the provider one credit.  These credits are currently selling for just under $700 apiece.

The buyers of these energy credits are the utility companies, which are the ones under the gun to supply 20 percent renewable energy.  If a utility doesn’t meet the 2020 goal, they will be penalized with a Solar Alternative Compliance Payment.  So if they’re going to shell out the bucks anyway, why not go solar?  It’s good public relations and reduces dependency on coal, oil, etc and their associated price fluctuations.

There are currently over 50 renewable energy projects on the drawing board in New Jersey.  As more farmers and large landholders become aware of this new income source, more and more projects will be planned in the Garden State.  The key is for the solar farm to be located near high transmission lines, which makes getting the electricity they produce easier and less costly to get on the grid.  And besides getting paid via the credit system, the providers also get the current rate per kilowatt.  It’s win-win.

There is one caution to anyone thinking about having solar panels installed at their property.  Since this is a fairly new and lucrative business, a lot of inexperienced and unqualified companies are looking to install your solar system.  Like anything, get quotes from at least three companies and ask for references and about projects they have already completed.  Be careful and choose wisely.  After all, this is New Jersey!

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

Distressed Properties Affecting Appraisals

Tuesday, January 5th, 2010

There are typically three main issues that can stop a potential real estate transaction dead in its tracks – the home inspection, the mortgage approval, and the appraisal.  Let’s talk about appraisals.

The problem with appraisals in today’s real estate market is that properties sold via a short sale, sheriff sale, or foreclosure are being used as comparables when evaluating the price of a regular home.  About 25% of realtors have had a sale fall apart because of a low appraisal.  The National Association of Home Builders reported that 25% of their new home sales likewise were shot down by low appraisals.

In 2009, over one third of all home sales nationwide were either foreclosures or short sales.  A short sale, of course, is when a lender let’s the property sell for less than the amount of the loan, figuring its better to unload the property quickly, get some cash, and move on.  These properties, on average, are selling for about 25% less than a property not in distress.

In an appraisal, the appraiser uses an approach in determining value by comparing similar recently sold properties in the same area.  Allowances are made for differences, such as more or less bedrooms, a detached garage, swimming pool, etc.  In a normal real estate market, where foreclosures are rare and short sales nearly unheard of, this is an effective method to determine true value.

But in today’s topsy turvy real estate market, appraisals show no differentiation in a distressed sale vs non-distressed sale.  And therein lies the problem.  They are, after all, two different markets.  And so, the family that always paid their mortgage is being penalized because their property is being weighed down by those that didn’t or couldn’t handle their financial responsibilities.  Is that fair?

Buyers attempting to purchase a conventional property nowadays basically have three options when the appraisal comes in under the agreed upon price.  Either make up the difference in cash, get the buyer to lower his price, or do a cash-only deal (using a home equity if necessary).

Until the real estate world returns to normal, “appraisal” will continue to be a four-letter word to realtors, builders, buyers, and sellers.  Let’s hope the end is near.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

No Repeat of Bubble Burst?

Monday, January 4th, 2010

As the United States slowly pulls itself out of the depths of the recession, many still wonder how it happened and whether it can happen again?  Good questions, and the answers all have to do in some way with real estate.

The biggest cause of the housing bubble was that the Federal Reserve and then chairman Alan Greenspan did not recognize what was happening soon enough.  But they took the course that seemed logical at the time and, after all, hindsight is 20-20. 

On the heels of the September 11 attacks, the Wall Street scandals, and the 2001 recession, the Fed felt that low interest rates were needed to get the economy rolling and to create jobs. And it did.  However, housing prices started to escalate at the same time and by 2003 they took off.  Here in Cape May County, New Jersey housing prices were rising 3% per month in 2004 and part of 2005.  That lasted for a year and a half as speculators bought everything in sight at interest rates in the 5 to 6 1/2% range.

The prices kept rising during that period because, let’s face it, few thought that they would stop going up.  Lenders and appraisers bought into the same scenario, so everyone just kept doing business as usual and moving the market along.  Folks got mortgages based on real estate values continuing to rise.  When they stagnated, then dropped, many got caught with their pants down.

Now as Ben Bernanke is up for his second term as Fed chief, the focus seems to be not so much on simply more regulations, but on more effective and smarter regulations to keep from another period of real estate speculation.  Through recent experience, the decision-makers are hopefully aware and prepared the next time that our economic freight train is in danger of running away.

Interest rates are still near historic lows and expected to stay that way, at least in the short term.  That has to be balanced with the threat of inflation, which would result in another possible recession.  We’ll have to see what the future holds.  We’ve got our fingers crossed.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

A Common Sense Solution

Monday, January 4th, 2010

The little borough of West Cape May, like other towns in New Jersey, has to provide affordable housing thanks to the Mt. Laurel decision back in the late 1970’s.  But unlike most municipalities, West Cape May has come up with a novel plan that is offering incentives and fewer building restrictions.

The Council on Affordable Housing (COAH) was created out of that controversial court ruling that mandated a required number of low and moderate income units for each of New Jersey’s 566 municipalities.  West Cape May needs to provide just two units by 2018, but they’re offering breaks for those creating the first 10.

Called “accessory apartments”, they can be in garages, above stores, in existing homes, or even new construction, as long as they’re in an area of the town where public sewer and water already exist.  No planning board approval would be necessary, just the usual construction permits.  The landlord would have to sign an agreement stipulating that the unit be rented below the market rate for 15 years.  But the town’s $25,000 to $75,000 incentive would help make up the difference.  After 15 years, the landlord is free to charge the usual market rate.

The borough will create a pool of tenants after determining their eligilibility based on income.  Landlords can ban smoking or pets or such, and do criminal backgrounds and credit checks, plus charge a security deposit.  The rent can’t be raised as unless a tenant leaves and a new one moves in.

In an expensive shore resort area like the Cape Mays, rentals are beyond the financial scope of many young families.  City officials hope that this will allow more to stay in the area and not move on to less pricey locales.

While West Cape May is just two units short of its COAH goal, two other Cape May County municipalities have a rougher road ahead.  Middle Township is mandated to provide 934 units and Upper Township 566 by 2018.  That would overcrowd the schools and burden the two towns’ services, not to mention the added real estate property taxes that residents would be forced to shoulder.  The towns have minimal areas of infrastructure and over 50% of each municipality is either federal, state or preserved land and not buildable.  Providing this absurd number of units definitely would promote sprawl and change the character of the towns.

Perhaps Governor-elect Christopher Christie, who has spoken out against COAH, will do something to abolish this forced build-up of semi-rural communities.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

A Realtor’s Sad Day

Sunday, January 3rd, 2010

Being a realtor has many rewards other than financial.  There’s nothing like finding a young couple their first home, helping them navigate through the various stages of buying a property that are still so alien to the inexperienced.  They’re thankful for everything along the way and often we become lifelong friends.

Here in Cape May County at the southern tip of New Jersey, we sell primarily vacation homes.  For many families that have worked hard their entire life, finally being able to afford this second home at the shore is the fulfillment of a dream.  We sell dreams.  It feels sooo good.

But there is another scenario for a realtor that is not so pleasing.  In fact, it is sad.

Here at Jewell Real Estate Agency, we have had several occasions where we have sold a home for an elderly person and moved them directly into an assisted living home.

Two of my favorites ladies were Helen Smith and Clara Carr.  Mrs. Smith – as I called her out of respect and she called me Mr. Jewell – had lived in the same single family home in Wildwood since 1953.  When I first met her and listed her home in 2005, her husband had been deceased for over 15 years.  He had built the home himself – with a small apartment over top – and Mrs. Smith was proud of her property, as she should.  The craftsmanship was nice, though the property was obviously outdated.

After a few months, we put the property “under contract”.  In 60 days, Mrs. Smith would be leaving the only home she’d known for over a half century.  She was upset, but knew that she was no longer physically able to maintain the property.  With no relatives close by, I offered to move the belongings she was keeping to the assisted living facility 12 miles away.  She was relieved and gave me a big hug.  We each had a tear in one eye.

When the big day came, I brought along two of my maintenance guys and two pickup trucks.  We moved her bed, favorite bureau and stuffed chair, an end table or two, and the few boxes of clothes and such that she had so carefully packed.  Her family had come from out of state to pick through her possessions and take what they wanted, so we then packed everything else in the house and took several loads to drop off at a charity.

We got Mrs. Smith settled into her new room on the second floor of the facility, patiently placing each piece of furniture and possessions exactly where she wanted them.  “A little to the left,” the 90-year old would request.  No problem.  I promised to visit her, then left.

Clara – she called me Doug – and I had history.  A few years prior she was still on top of her game and sharp as a pin.  We had belonged to an environmental group together and stood on picket lines holding protest signs.  Nothing stopped Clara.  She was right there along with the rest of us.

We sold Clara’s house in 2003.  She was being pressured by a daughter to come live with them in another state.  It was hard to say goodbye to my 75-year old friend and comrade.  It was also hard to see her give up most of her lifelong possessions knowing she would be limited to one room of space in her daughter’s house.

And so, a week after moving Mrs. Smith to the assisted living facility I returned for a visit  to see how she was making out.  We hugged and talked for an hour about her new home and the world in general.  Then she said, “By the way, I ate lunch with a friend of yours the other day.”  It was Clara.  I was dumbfounded.

A few minutes later I was knocking on Clara’s door down the hall.  We hugged and had a tearful reunion.  It turns out that living with her daughter didn’t work out, so having no other options she moved to this facility to be back in her hometown.  We talked for a couple hours and Clara hadn’t lost a beat.  She was still totally together in mind and body.

And so a couple years passed.  I would visit Mrs. Smith and Clara around Christmas and a couple other times a year.  Then one visit I discovered that Clara had recently had a stroke and her speech was difficult to understand.  Still, we were both all smiles seeing each other.

On my last visit, in 2008, I sat with Mrs. Smith first and we talked and talked.  I mentioned that I was going to see Clara next, but she warned me that Clara had gone downhill lately.  “Don’t be surprised if she doesn’t recognize you,” she said.  She was right.  Clara was totally confused when I entered her room and didn’t recognize me.  She might have even been a little afraid of this stranger.  I left, disheartened by the loss of my friend.

Mrs. Smith died two months later.  At 93, she was still mentally on point right up to the end.

It makes me sad to think of the loss of my two friends.  But because of being a realtor I had the opportunity to really get to know these wonderful ladies.  I cherish our memories.

- Mountain Man

http://www.MountainManandCityGirl.com

Good Realtors have Passion

Saturday, January 2nd, 2010

Like all our fellow realtors, we know that there are all different calibers of realtors.  But when you really think about it, what makes a certain percentage of realtors stand above the crowd is PASSION.

My wife Joyce and I opened our first office in 2000, then 10 months later opened a branch office.  Later this month will mark the 10th anniversary of us working six days a week – we try to take Wednesdays off together but often spend half the day on our cell phones – and answering our phones 6am to 9pm every day of the year.  Yes, I know what you’re thinking.  We must be crazy to be accessible 15 hours a day, right? 

But, you see, real estate is our life, our passion.  Our kids are grown and gone and now we have the freedom of a 20-something childless couple, although our combined ages is 120.  To avoid being kicked in the shins, I won’t say which one of us is older.

We are both early risers, so having our cell phones unplugged and turned on by 6:00 in the morning is no problem.  We find that many of our clients, stuck in rush hour traffic around Philly or NYC, make use of this time to call us and discuss the transaction we’re working on together or the properties they want to tour on the weekend.

Nighttime phone calls don’t crimp our lifestyle either.  Okay, we may be in the grocery store or a restaurant, but we’ve closed deals standing next to the broccoli and cauliflower display.  Our norm, however, is that we’re sitting on the couch together watching a cable movie or nature program.  Folks like to call us around that time after they’ve put their kids to bed and they finally have some quiet time.

In the warm weather months when the daylight hours last longer, we do have one other distraction in the evenings.  We jump in my pickup truck, select a town, and cruise up and down neighborhood streets seeing “what’s new”.  We notice new construction and homes newly put up for sale.  We talk about it like two excited teenagers.  And since the weather is warm, families are outside in their yards and we wave and our real estate signs on the truck doors get noticed.  More than once someone has waved us down to talk about the current real estate market.  That’s social networking in its purest form, I guess.

I know there are many, many other realtors across the country with passion for their trade.  Obviously, any realtor who takes the time to read and contribute regularly to Active Rain has that passion.  So do those who read the real estate trade magazines from cover to cover.  And those continually participating in some sort of continuing education and earning additional designations.

To all of you, I tip my hat.  Together, we’ve taken real estate sales from being a job to a profession we’re proud of.  And love.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

The Demise of “da inglish langwij”

Thursday, December 31st, 2009

Maybe it’s me.  But I’m really amazed at how the majority of the American public has no sense of correct spelling and grammar.

Since you are reading this blog instead of sitting home on the couch watching Jerry Springer or hanging out in an alley sipping some Boone’s Farm Apple Wine and puffing on a cigarette, you are also probably confounded by how the English language is being butchered.

As a realtor, I am actually getting used to the fact that so many people spell realty as R-E-A-L-I-T-Y.  Duh!  Isn’t reality one of those dumb shows where people eat maggots or get stranded together on an island?

And how about people who say, “I ain’t got none.”  Gee, I didn’t learn not to use double negatives until I was in the fourth grade.  Or was it sooner? (Did you notice my use of a double negative?)

I guess our educational systems are to blame.  Teachers become babysitters to half the kids, while the other half actually learn and excel.  I was always in the “accelerated” class growing up in progressive North Jersey, so I was separated from the dummies after kindergarten and apparently forgot they existed.  Perhaps that’s why I’m perplexed by their lack of English fundamentals.

Yet, you would think that after 10 or 12 years of school people would have retained some elements of grammar and spelling.  Some people come from the worst possible environment or home life, but somehow they work hard and get college degrees and end up with high-paying jobs.  They show that anyone can excel.

So how come some people can’t even fill out a job application or handle a job interview?  The answer may be that they concentrated on being “cool” when they were in school, instead of toeing the line.  I guess that once again lays the blame on the schools.

I’m not sure what the solution is.  More compassion from teachers, smaller classrooms, more individual attention?  Maybe more direction from parents, but if they’re half-literate that’ll be tough.

Maybe we better just play taps for the English language and bury it with honors.

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com

A Changing World

Thursday, December 31st, 2009

When I was a youngster, I thought everything always stayed the same.  I thought the corner general store would always be there and always be called Percy’s.  The same for Al’s Barber Shop, and the same for Green’s Luncheonette and Woolworths and the A&P.  I was naive and too young to understand the evolution of change.

Then reality began to set in. First, the knifeman no longer drove up and down the neighborhood streets with a familiar bell ringing on the back of his truck.  Mom would send me running to flag him down and she’d follow with a basket full of kitchen knives to be sharpened.  A few years later there was a note in the milk box saying that Sicomac Dairy would no longer be delivering milk, eggs, sour cream, etc to our door.  About the same time the local dry cleaner also stopped doing home deliveries.  What was the world coming to?

Change continued through my teens and twenties.  I used to peddle my bicycle delivering the Bergen Evening Record newspaper every afternoon after school.  They became a morning newspaper, following an industry trend, and next thing you know newspaper home delivery was done by adults in cars at 5am.  Yikes!

My next job was as a caddy at a golf course.  We made $2.75 for carrying a golf bag 18 holes, and $5.50 if we were big enough to carry two bags for 18 holes.  With tip, that came to $6 for about five hours work.  I was on top of the world and “rich” compared to my fellow high schoolers.  But you know where this story is going.  Within a decade, caddies were as extinct as dinosaurs.  Golf carts put us out of business.  The end of an era.

With all these experiences in my rear view mirror, allow me to gaze into my crystal ball and look into the future.  The biggest change I see is in the world of retail stores.

 

The internet is going to decrease the number of retail stores.  We’re already seeing it in the demise of such venues as movie rentals – adios Blockbuster – and music stores.  The internet allows you to download movies and music from the comfort of your home.  And heck, just about every new movie is on cable within six months anyway, so why not wait?

Stores that sell appliances will be the next victim.  Just ask Circuit City or Linens ’n Things.  Circuit City had 576 big box stores and Linen ‘n Things had 571.  All their stores are now shuddered and they sell, yes, on the internet only.  Who’d a thunk it?

Just about any store that sells things that are also readily available on the internet is in trouble.  The exception, of course, is things you need to touch or try on first.  I’m not gonna buy shoes or pants from the internet.  I need to try them on to make sure the fit is just right.  And I want to physically see some items before purchasing to make sure they are of sufficient quality.  A picture on the internet doesn’t relay the quality.

Stores that cater to “touch and try on” and large selection will survive, like WalMart and Target and Costco and such, because high volume of sales will carry them.  But smaller stores, not to mention Mom & Pop’s, are in trouble.  The cost of rent and utilities and inventory and employees makes them unprofitable, or at least not worth the bother.

Look around.  I’m sure you’ve noticed how many empty storefronts are in your community.  Nationally, the vacancy rate for retail stores is about 7% and malls is nearly 10%.  It seems like more.  Expect those numbers to increase.

But all’s not lost.  Restaurants will survive and thrive.  In fact, anything related to food will stay around.  Who buys a hamburger or a cantelope on the internet?  Doctors, dentists, lawyers, realtors, accountants and other similar occupations will continue to occupy a physical space in the community.  So will hardware stores and lumber yards and florists and other “drop in and buy quick” businesses.

Thanks to internet sales, a good bet on the future would be to buy stock in FedEx, or UPS, and any other delivery company.  Hey, wait.  Haven’t we just gone full circle?

- Mountain Man

http://www.MountainManandCityGirl.com

Just a Feeling

Wednesday, December 30th, 2009

As realtors, we often get hunches about our own individual local real estate market, whether it’s Monterrey, California or Baton Rouge, Louisiana or Bangor, Maine. 

Here at Jewell Real Estate Agency, we have a feeling about 2010.  A strong feeling.  All the pieces seem to be falling into place that 2010 is going to be a great year.  The best since 2005.

Our local real estate market is Cape May County, a small tourist-oriented county at the very southern tip of New Jersey.  While we have just 96,000 yearround residents, the summer population swells to 750,000 or more on any given day.  Our beautiful Atlantic Ocean beaches and back bays and famous boardwalks attract vacationers from Philadelphia and eastern Pennsylvania; New York City and the surrounding areas of northern New Jersey, southwestern Connecticut, and New York state; plus some fun-seekers from Maryland,Washington, DC and eastern Canada.

We almost exclusively sell vacation homes – including condos and townhomes - and multifamily homes, with an occasional commercial property.  We sell a few primary homes each year, mostly off the islands on the mainland.  There just isn’t a great demand.  The seasonality of our location makes us unattractive to yearround living for a young family just getting started.  There just isn’t enough yearround employment to suit their needs, so the younger generation tends to migrate toward the Philadelphia area and its jobs.  The primary homes we do sell are mostly to retirees looking to enjoy the quiet shore life, plus the restaurants, fishing, and attractions of Cape May, the Wildwoods, and even Atlantic City 35 miles to the north.

So back to the countdown to 2010. 

We are already showing properties every day, a phenomenon lacking over Christmas break the last two years.  Joyce wrote two contracts yesterday – both accepted – and we’ve got plenty of showings today and tomorrow, right up to New Year’s Eve.

People seem eager to buy right now.  There’s an enthusiasm amongst prospective buyers that has replaced the overall reluctance evident in 2007 through the first half of 2009.  Maybe it’s the low interest rates or the bargain basement prices of real estate.  Maybe it’s that folks are tired of sitting on the sidelines and putting off buying that American dream second home.  Or perhaps it’s because many in the media have given the green light to purchasing real estate and abandoned their doom and gloom prophecies.

Whatever the reason, we have a bounce in our step and a twinkle in our eyes.  The new year looks very promising.  I think I’ll stick a bottle of champagne under the seat of my truck.  After my last property showing tomorrow afternoon, I think I’ll break out the bubbly and toast the good times ahead.  Wanna join me?

- Mountain Man

http://www.MountainManandCityGirl.com

There’s Technology, then there’s Tech-NO-logy

Monday, December 28th, 2009

I’m stubborn, I admit it.  I have embraced modern technology, but only as far as needed to be the owner of a successful real estate agency. 

I’ve had a cell phone for 10 years, and now 85% of Americans do too, according to statistics.  Judging from my older friends, I think I personally know many of the 15% who don’t.

I bought my first computer in 1993, just months before launching my own weekly all-sports newspaper.  I didn’t know how to do much, other than type articles into Microsoft Word that I would later cut and paste.  By cut and paste, I mean scissors and wax onto camera-ready full newspaper-size sheets.

I got my first email address in 1999, just prior to opening the main office of Jewell Real Estate Agency.  A year later we purchased three more computers for our new branch office, run by my broker wife Joyce.  While my wife jumped into the computer age with vigor, I still hung around on the outskirts.  She was busy inputting data on our website, local MLS, and many other websites used to sell real estate.  I stuck to writing material and articles into Word, then letting her cut and paste them (yes, computer cut and paste this time) into our various advertising venues.

Now as the “ought decade” comes to a close, I write a blog regularly and I do my research on many topics on the Internet.  Wikipedia is great, and I can read online the newspapers from the many places I’ve lived.  I’ve even abandoned the Weather Channel on TV for Weather Underground on the Internet.  And I can get instant sports scores.  Yee-haa!

But that’s where I draw the line.

I don’t even know what a BlackBerry is, nor an iPod.  I don’t own a DVD player or DVR, and in fact don’t know the difference, if there is one.  I don’t Facebook or Twitter or YouTube or Wii.  Heck, the last video game I played was Pacman on a Commodore 64, circa 1984.

And don’t even think of sending me a text message.  I don’t know how to read one or write one.  The only thing I can do is delete the one you sent me, unopened.  If you have something important to tell me, pick up the phone.  I do answer the phone.

I don’t have a GPS.  I’m a guy.  I use a map, or else I’ll Mapquest first and compare it to my real live map.  Okay, I do have a radar detector in my vehicle.  That baby has saved me a lot of bucks, not to mention points on my license.

While I’m ranting, I don’t have tattoos and I think they’re degrading (spelled S-T-U-P-I-D).  Same with piercings.  I don’t watch reality shows – never.  My TV is never tuned to ABC, CBS, NBC or Fox.  I watch nature shows, movies, and occasionally college sports.  Don’t even think I’d watch the Simpsons or Beavis & Butthead.  I don’t do Pay-Per-View and I don’t download movies or music. 

Also, I’ve never been in a Starbucks.  I don’t have (or need) a life coach.  I think cougars are desperate.  And what’s this thing all the “under 30s” are doing with holding up different fingers?  Does that mean something?

One last thing.  You’ll never see me going around with one of those Mr. Spock things in my ear.  What’s with that?  I own three businesses and I’m a successful author, yet I hardly think I’m so important as to walk around needing 24/7 instant access to my phone. 

Okay, I’m done.  I feel better now. 

You can perhaps see why they call me the Mountain Man.

- Mountain Man

http://www.MountainManandCityGirl.com

Jobs, Jobs, Jobs

Sunday, December 27th, 2009

As realtors, we have found that the main factor in whether a family can buy a second home here at the Jersey shore is job stability.  If a family has a solid income that will not be affected by a cut in salary or loss of job, they seem willing – even anxious - to take advantage of the incredibly low real estate prices and interest rates. 

But should their job be iffy, it’s better to sit this one out.  Why buy a vacation home if in the next year it becomes too much of a financial burden and they end up in foreclosure.  Not only will their credit be ruined, but their shore experience will leave a lasting negative impression and they may never enter the second home market again, even in good times.

Their are currently 15.4 million unemployed Americans and the jobless rate is hovering around 10%.  As always, these numbers do not include folks who have literally given up on ever getting a job and dropped out of the work force.  A record 5.9 million Americans have been out of work at least a half year as 7 million jobs have disappeared since the recession began.

The normal unemployment rate is about 5.5%.  Experts expect that the rate won’t return to that range until 2015 or so.  Job creation is the key.  In the last 10 years, from 1999 to 2009, the net gain in jobs is only about a half million, thanks to the loss of those 7 million jobs.  The previous 10 years, 1989 to 1999, saw 21 million jobs created.

Another factor in the job market is that many Baby Boomers are not retiring, but instead are staying in the work force in order to afford to live more comfortably.  This leaves the younger and less-skilled workers on the short end of the stick.

So what to do? 

The federal government needs to create jobs.  The recent infusion of money into infrastructure, mostly highways, really didn’t employ that many people.  Material costs – asphalt, concrete, steel, heavy equipment, etc. – ate up much of that cash infusion. 

Roosevelt had his Civilian Conservation Corps (CCC), which pulled many through the depression by creating labor-intensive jobs (meaning more people than machines).  Why not get something like that rolling, where people of all skill levels can clean up roadsides, do much-needed maintenance work at state and national parks, thin underbrush in the forest fire-prone West.

Let’s prioritize solar, wind, and water power, offering generous subsidies and tax breaks to companies that manufacture and install these alternative power sources.  And let’s clean up urban blight, by demolishing abandoned buildings and clearing vacant lots.  That could be followed by building urban housing – but not “housing projects” – that would not only create jobs but upgrade people’s living standards.

When the government coordinates with private enterprises to create jobs, our economy will turn around in a heartbeat.  It’s that simple.  Are we asking for too much?

- Mountain Man and City Girl

http://www.MountainManandCityGirl.com