Mostly everyone who has ever had any experience with an Ortley Beach real estate transaction or the purchase or sale of any property has had experience with a mortgage. Unless the real estate purchase is being paid for in full at the time of closing, a buyer will need to obtain a mortgage. With how important these loans are, it’s important to be familiar with some vocabulary associated with them. Purchasing a home can be stressful enough. We hope that by understanding some of these terms more, the overall buying process will be more enjoyable for you. A mortgage is often the first step in your journey so starting off on the right foot is the best way to set yourself up for success.

Ortley Beach Real Estate Can be Confusing

We understand. Real estate can be very confusing.  There are a lot of terms that you’ve never heard before. And may never hear again. However, that doesn’t mean you shouldn’t learn a little about it. The more you understand, the better you will be able to navigate through the home buying process. Here’s a headstart on mortgages.

Adjustable-rate Mortgage (ARM)

This type of mortgage applies varying rates of interest over the life of the loan. This also means the monthly payments may differ month to month. The interest rate is based on market value. One advantage to an ARM is that many lenders will give you a short period where your interest rate does not vary. This interest rate is often lower than a fixed-rate mortgage. All ARMs also have caps which limit the amount that your interest can increase or decrease.

Fixed-rate Mortgage

Unlike an adjustable-rate mortgage, a fixed-rate one has the same interest rate for the life of the loan. The benefit to this type of mortgage is that no matter what the market does, your interest rate remains the same. Many homeowners enjoy the uniformity of the payments and the stability of this type of loan.

FHA Loan

The Federal House Administration (FHA) offers this type of mortgage to people who may have trouble obtaining a loan due to a low credit score or not being able to make a 20% down payment. The loan is insured by the government and protects the lender if the loan is defaulted on.

Debt-To-Income (DTI) Ratio

Basically, the percentage of what your average monthly debts (including credit card bills, loans, and other recurring monthly payments) divided by your monthly income. This is extremely important because lenders look at this number to make sure that you have enough income coming in monthly in your household to cover the loan. Typically, a DTI of 43% is the highest percentage allowed in order to be considered for a loan. That said, the lower the better and many mortgage lenders won’t consider someone with a DTI more than 36%.

Private Mortgage Insurance (PMI)

If your down payment is less than 20% of the home’s purchase price, a lender will require you to get mortgage insurance. This protects the lender if you should stop making payments on your loan.  Once you reach 20% equity in your property, you usually have the option to remove this from your loan.

Appraisal

Performed by a certified appraiser, this gives an educated value of the property that is for sale. It is an important term to know. This number is what the mortgage lender will use to determine the amount of loan they will approve for you. It ensures that the amount of the loan does not exceed the value of the home. We have a number of certified appraisers on staff including Eric Birchler in our Ortley Beach real estate office.

Closing Costs

This is a set of fees paid to the lender to cover the costs incurred in the process of getting your loan. These may include, but are not limited to, title search fees, pest inspections, attorney’s fees, appraisal fees, and title insurance. The amount is customarily about 3% of your total loan amount.

Escrow Account

This is an account set up at no cost by your mortgage lender. In this account, your lender will hold money that they will use to pay for property taxes and homeowners insurance for you. Most people opt for this because this lets you divide these payments into small monthly payments rather than paying a large bulk once a year.

Down Payment

This is the amount of money you will be paying at closing towards the purchase of the home. Typically, this is 20% of the price. While many people think that 20% is required, there are many types of loans that accommodate those who cannot make that type of payment.

There is So Much More to a Mortgage

This is very much just the tip of the mortgage vocabulary iceberg. Buying a home or purchasing property in the Ortley Beach real estate market can be confusing. There are a lot of terms that some people only hear a handful of times in their lives. While this may not explain the whole process from beginning to end, we do hope it will help you feel more comfortable the next time you have to discuss a mortgage. No matter where you are in your home buying process, one of our experienced agents can help guide you through the process.

Any person who has ever bought or sold a property is familiar with the term appraisal. There is, however, likely a lot that many don’t know about this important Seaside Park real estate process. Buying and selling a home can be a stressful and confusing journey.  There are many steps that happen either without the client’s knowledge or, more likely, their full comprehension. However, not understanding what is happening during the process leaves you vulnerable. An appraisal is designed to provide an unbiased assessment of the property’s worth. This protect the lender by confirming that they are providing a loan for an appropriate amount of money.

What is an Appraisal

As previously described, an appraisal is an assessment of a property’s value. It should be performed by a licensed, non-biased individual or a third party who has no vested interest in the transaction. This ensures it is a fair and accurate judgement. An appraisal is almost always necessary for the sale and purchase of a property, but is also routinely used in refinance transactions. The only deal that will not require an appraisal is an all cash sale. In this case, there is no money being lent so the value of the home is irrelevant to the purchase price.

How is the Value Determined

There are three common schools of thought on determining a residence’s value. These are the sales comparison approach, the cost approach, and the income approach. The sales comparison approach looks at how much similar properties in the same location have sold for recently. The cost approach uses what the cost of construction would be. After determining that number, any depreciation is taken into account and then the cost of the land is added to determine the market value. Lastly, the income approach is used almost exclusively for commercial or business real estate transactions.

Who Performs an Appraisal

An appraisal for your Seaside Park real estate transaction should only be completed by a certified or licensed professional like those in our offices. There are four levels of appraisers that can perform appraisals in New Jersey. The first level is a trainee appraiser. There is no prior experience required to become a trainee appraiser. In order to take the first step to become an appraiser, a trainee must complete 75 hours of approved education. Once the application is completed and approved, a trainee must find a certified appraiser to be their supervisor. Upon the completion of 1,000 appraisal related working hours and 150 hours of qualifying education, a trainee can apply to become licensed. The top-tier is a certified appraiser. This level requires the fulfillment of one of six college education options. Plus, additional approved education hours and 1,500 hours working related to appraising. A certified appraiser has to apply to become one and must also pass the Certified Residential Appraiser Exam.

Why Are Appraisals Done

An appraisal is something that is requested by the mortgage lender. The reason this is done is to ensure that the lender is not mortgaging a loan that is more than what the property is valued at. If this does turn out to be the case, the lender may require the buyer to pay the difference in cost. Depending on the type of loan, a more explicit appraisal may be needed.  This is true in the case of loans such as VA loans or FHA loans. In these instances, if any issues are found during the appraisal, most will need to be fixed prior to the closing.

An Appraisal Will Happen and Now You Know Why

Most likely, in any New Jersey real estate transaction you experience, you’ll have an appraisal. In the best of cases, everything goes without any questions or hitches and it is just one item to complete on your checklist. However, if the valuation comes in under the amount of the mortgage, a sale can be hugely disrupted. In the worst case, a sale may completely fall through. Either way, with the knowledge you now have, you can understand more of the process and why it is done.

No matter what your Seaside Park real estate needs are, Birchler Realtors is here for you. Contact Us today!

Anyone who has every gone through the moving process know how stressful it can be.  This can be even more true for children going through the process. Some of the same things that can help make moving less stressful for us can help your children as well. In addition, there are certain things you can do to make the journey to your new home fun and enjoyable for kids.  The key to many of these tips is keeping the kids involved and informed.

Talk About It

As soon as you know that you will have to move, let your kids know.  Delaying the information does not help anybody.  The more time the kids have to process the information, the better.  Make sure you have a face to face conversation with your children and give them your full attention so you can answer any questions they have.  Let them know about their new neighborhood, schools, sports teams, etc.  If you have pictures of any of these, use them.  Anything that you can do to put a positive spin on the move will make it less scary and more exciting.

Pack It Up

As hard as it can be, let your kids help pack, especially their room and their belongings.  Depending on the child’s age, watching all their things get packed up in boxes can be scary and confusing.  Start packing as soon as possible to keep that task as stress-free as possible.  Let them help label their boxes with a special label or color-coded system. Most importantly, keep important sentimental items like favorite blankets, special toys, or anything that provides comfort out of boxes and in an overnight bag for your kid instead.  Having easy access to these things can make the first night in a new home a little less scary.  The last thing you want on your first night in your new home is having to look through tons of boxes for that stuffed animal your child can’t sleep without.

Stay Positive

Kids see and absorb much more than we give them credit for.  When they see us acting stressed out and upset during the moving process, they will likely feel the same.  If, instead, you try to make everything as fun and positive as possible, they will follow suit. If you are moving into the Seaside Park real estate market, tell them all the great things that will be close by for them to enjoy. While keeping the kids involved as much as possible is a good thing, there are certainly times when it will be easier for them to not be involved.  If you know packing up all your fragile belongings is going to take some time and might be stressful for you, call a sitter or try to do those tasks while the kids are in school.  It not only gives the kids a break from packing and being in a home filled with boxes, it will let you focus on the task at hand and get it done much faster.

Let Your Kids Make Some Decisions

Moving is something that can make kids feel completely helpless. It can seem like everything is happening without them and they can’t do anything to stop it.  One way to alleviate some of this is to let them make some decisions.  Whether it is what restaurant you’re going to eat at or order from your first night in your new home or picking a color for their new bedroom, any decisions your kids can help with, let them.  Another great tip is if you have a floor plan of your kid’s new bedroom, let them decide how they want their furniture arranged.  Giving your children control over some things can help reduce their stress which makes moving more enjoyable for everyone.

Moving Should Be a Family Affair

If you recently purchased a home in the Ortley Beach real estate market, it should be easy to be excited about your move.  The more you talk to your kids about moving, the less scary it will be.  While it is going to be a stressful time for most adults, it doesn’t have to be the case for your children.  Just as your realtor sold you your new house, you need to do the same thing for your kids.  Sometimes fear and anxiety can manifest in behavior changes so the more people that are aware the better and healthier for your child. Be sure to tell others involved in your kids’ lives like teachers, clergy, and friends’ parents that you are moving so they can provide support to the child as well.  Moving doesn’t have to be all scary and stressful.  It can be fun and exciting.  If you do it as a family, it will be beneficial for all of you.

There is a lot to consider prior to putting your home up for sale.  It is just not as simple as calling a realtor and placing a sign in your yard.  In order to give your home the best chance of selling at the optimal price, you do need to put in a bit of work before anything is done.  In some markets, you may be fine with doing minimal work or preparation. However, in a place like the Seaside Park real estate market where it is flooded with homes and full of competition, the more improvements and work you put into the home prior to listing, the better chance you have of selling your home quickly. It may seem counter intuitive to spend money on a home you are going to sell. However, putting some money and time into your home before it goes up for sale will benefit you greatly in the long run.

Outdoors

There are many things outdoors that will benefit your listing. The outside of your house is the first thing people see so put your homes best face forward.

Clean it Up

The standard tidying up that we all do at our homes is perfectly fine for day to day life.  When you are considering putting your house on the market however, it should be close to perfect. Making sure all cobwebs are gone from corners, exterior lights work, and there are no tripping hazards are a good place to start. Also consider power washing all exterior surfaces if necessary. The exterior of your home is what needs to draw people in.  If the outside looks drab and unkempt, people will assume the interior is the same.

Landscaping is Important

Aside from cleaning up exterior surfaces, it’s important to keep your entire plot clean.  Your landscape is a crucial place to do that.  Trim hedges that have gone a bit astray, neatly edge all gardens, and add pops of color in containers and beds.  Ensure the lawn, if you have one, is always kept mowed. On the other hand, a lot of homes in the Ortley Beach real estate market have stone covering their plot.  It is just as important to keep these areas weeded and the material is swept up and kept neat. One last easy and cheap improvement that provides a nice pop and welcoming face is a new doormat.  You want your home to be as inviting as possible so use every area to increase that welcoming feeling.

Embellishments

Color can do wonders to improve the exterior of your home. Consider adding a contrasting color to your front door which draws the eye to that spot inviting others into your home. If you have a porch or seating area out front replace worn throw pillows on seats and benches. Also, add a fresh coat of paint to anything that needs it like wooden planters or furniture. One last thing is to

Indoors

It is important to do these things to the interior of your home before you list your home for sale.  The reason is that as soon as your home is listed, pictures need to be taken and added to the listing.  By putting some work into your home prior to putting it on the Lavallette real estate market, it improves your listing greatly.

Make it Neutral

Even if you love the colors on your walls, some people have a very hard time picturing it any other way. The best option is to paint all the walls neutral colors.  Neutral colors like whites, tans, and grays appeal to a much wider audience and sometimes can help rooms appear larger.

Depersonalize and Declutter

This is an opportunity to not only make your home more appealing to a wider audience, decluttering and removing personal effects gives you a head start on packing. As with paint, people will have a harder time imagining them living in your home if it is filled with pictures of you and your friends and family. If your decor is very specific to you, remove some of it.  Also, if you have an opportunity to do so without it negatively impacting your day to day life, remove extra furniture.

Clean it Up

This is just as important inside as it is outside.  Clean every surface of your home well.  If you can’t do that, consider hiring a company who can.  This not only makes the home look better, but it helps remove odors as well. As far as cleaning, we’re not talking wiping off counters.  We’re talking about dusting ceiling fan blades, washing chandeliers till they sparkle, and cleaning baseboards.  Every surface should shine.  Another way to clean up your indoor spaces includes organizing closets and cabinets.  By keeping these areas neat and tidy, it always appears better to potential buyers.  Neat and organized closets make it clear that the home has plenty of storage.  Messy cabinets and storage places make it seem that there is not enough storage space in the home.

Competition is High in the Beach House Market

While all of these tips are important for every home, it is crucial for homes in flooded markets like those in Seaside Park, Lavallette, and Ortley Beach.  There are so many homes for sale that the tiniest advantage can help sell your home.  The more move-in ready a home looks and is, the quicker that home is going to sell. Neglecting these improvements could lose you a sale.  If a buyer is considering two homes, the one that will require the less amount of work for them will probably win out.  A neater, cleaner, well-kept home always shows better than one that did not have this work put into it.

When you’re ready to put your home on the market, be sure to contact one of our experienced realtors!

No matter if you are moving to the next town or across the country, moving can be stressful.  The key to any successful move is good planning and organization.  A lot of work must be put in a long time before moving day. If you’ve recently purchased a home in the Seaside Park real estate market, these tips can help make your move smooth.

Movers

If you will be needing the assistance of professional movers, there are many pitfalls to avoid.  First, you want to contact and research multiple movers.  The key to this is you need to start this process well before your moving day. Many people don’t consider the fact that there are popular times of the year to move.  If you happen to be moving during these peak times, you need to be aware that good movers will book up fast.  Especially in the Ortley Beach real estate market.  The last thing you want to do is leave all your possessions in the hands of a mover simply because they were the only ones available.  Read reviews, check the Better Business Bureau for their rating, and check that their licenses and insurance are accurate and up-to-date.

Accidents can happen in any situation and moving is sure not immune to this. Breakages can occur, vehicles get in accidents, things happen.  Ensuring your mover is insured covers you financially in order to avoid any further stress should something happen.  Also check with your homeowner’s insurance to see what they cover as far as moving accidents and damages.

Don’t leave everything to the movers.  If you have valuables or things that hold a lot of sentimental value to you, keep those items with you.  If the loss or breakage of something is going to cause you mental strife, don’t leave that in someone else’s hands.  If it matters to you, keep it with you.

Lastly, make sure you talk about and get an estimate in writing.  There are two types of estimates; binding and nonbinding. A binding estimate is basically a contract and should give you your exact total aside from any additions added afterwards.  A nonbinding estimate will give you a pretty good idea of what your move will cost you, but may not be an exact number.  Your final bill may be a bit more so make sure you are aware of which type of estimate you have.

Packing

I don’t know anyone that enjoys packing.  It’s pretty widely agreed upon that it is awful.  However, you can take advantage of the situation.  Don’t make the mistake of packing everything you own without going through it first.  Almost everyone has that box in the garage that just keeps moving from house to house, but never gets unpacked.  It’s filled with junk that you haven’t needed in years.  Now is the time to thin out your belongings. Throw out what is unusable, donate what you no longer need, and keep only things that are relevant to your life now. Don’t waste time and money moving things you no longer want or need.

Secondly, don’t waste your money on packing materials.  If you ask around, you should be able to relatively easily find everything you need from boxes to additional materials. Moving costs a lot of money, so make sure you’re not wasting it on things you don’t need to.

Pack smart.  Go room by room and make sure everything is labeled.  It is so much easier to unpack when you pack with a purpose.  It may take a little longer while packing, but it will save you a ton of time and stress when unpacking. Being organized while packing makes it much smoother when you get to where you are going.  Label all boxes clearly and descriptively.  This way, as boxes are coming off the truck, they can be exactly where they need to go.  Without this key step, you’ll end up moving boxes around again and again as you unpack. Too many people wait until the last minute to pack, end up throwing everything into boxes, and then have to deal with it after they move. Save yourself the stress and put the work in on the packing end.  It’ll make your move much more enjoyable.

Pack yourself an emergency bag.  Just like when you go on a flight and save a few key items in a separate bag in case your luggage gets lost.  Accidents and delays can happen during a move too.  Having a bag for each family member that holds the essentials plus a few days’ worth of outfits reduces the stress of having to empty boxes the minute you walk in the door of your new home.  Plus, in the extreme case that there is a major accident or delay, you will still have items needed to get you through the day.

Planning is Key

The more effort you put in to planning, the less stress you’ll have later on.  Make yourself a checklist of things to be done so you don’t forget anything.  Contact all of your accounts for utilities at your existing home and at your new place for activation and cancellation.  No one wants to move into a new home that doesn’t have electricity because you forgot to call to have the account activated.  Be sure to update your credit cards and other bills to update your mailing address so nothing gets delayed.  You don’t want to have to worry about spending money on late fees after you move.  If you have pets, make sure you have their health and vaccination history with you and update their tags if they contain your address.

We hope this helps you plan and attack your next move with confidence.  There is so much involved with moving and it can be stressful to even the calmest, most level-headed person.  The overwhelming number of things that need to be taken care of makes it easy to skip or forget a step.  Checklists are great for that. Good planning, a reasonable timeline, and organization can help reduce the stress associated with moving.

If you ever have any questions related to moving into the Lavallette real estate market, need a Seaside Park realtor, or are looking for an Ortley Beach rental, get in contact with one of our experienced realtors here at Birchler Realtors!

Lavallette real estate can be confusing. Without knowing what the titles following your realtors name mean, it can become even more complex.  While many certifications are for education purposes, if you are dealing with a specific situation in your Ortley Beach real estate transaction, you may want to look for a realtor educated in that specialty. While all the certifications and special designations are not required to perform Seaside Park real estate, it certainly does help to have a more educated realtor.  Even if you are not dealing with any special circumstances in your home buying process, having a very experienced realtor is one of the best things you can do to make your journey more enjoyable.  The agents in all of our offices are very qualified and experienced in all aspects of Jersey Shore real estate.

Certifications Versus Designations

Let’s start by covering the difference between the two. According to the National Association of Realtors, “Designations are specialized credentials for REALTORS®.” A certification is also a specialized credential.  One main difference between designations and certifications is that designations require a realtor to pay dues annually where certifications only require an application fee. At the base level, certifications and designations mean that the realtor has taken courses and have experience in assorted areas of expertise in realty.

We won’t cover all of the available titles, but we’ll take a look a few from each category.

Certifications

At Home With Diversity – AHWD

This focuses on completing real estate transactions with an acute attention to all buyer and seller profiles. Brokers learn how to effectively carry out their business in today’s diverse market.

e-PRO® 

This certification takes your technology education to the next level.  Consumers today rely more and more on digital and online platforms and technologies.  Brokers that can keep up with the new generation of clients will be the most successful.  Also, it’s ideal for a client that is immersed in technology to look for a realtor with this certificate as you will be able to work well with each other.  A realtor with this title will be able to accommodate many technological requests from their customers making the transaction easier and more enjoyable for everyone.

Pricing Strategy Advisor – PSA

This course is designed to assist realtors in learning how to better direct customers through their incorrect assumptions about home values.  When clients have a lot of anxiety about the pricing and appraisal process, it may be due to misinformation.  Most clients stress evaporates once they fully comprehend the process better.  This also assists brokers in bettering their ability to create comparative market analyses, improve their expertise in pricing properties, and allows them to more effectively conduct business with appraisers.

Short Sale and Foreclosure Resource® – SFR

A realtor with this distinction is better equipped to assist clients who are in financial turmoil.  This course teaches agents how to better help people and the professionals who are available to assist them to limit risk, safeguard buyers, and manage arbitration. Being able to help customers in these situations get through the process as easily as possible is a great help.

Designations

Accredited Buyer’s Representative – ABR

The name pretty much says it all. Agents who decide to earn this designation learn how to most effectively work with buyers throughout the Lavallette real estate process. They’ll obtain education allowing them to stay up-to-date on how to best represent buyers.  They also will have the ability to use members-only products from Real Estate Buyer’s Agent Council.  On the other side of the ABR is the SRS.

Seller Representative Specialist – SRS

Where an ABR is better suited for representing buyers, an SRS’s goal is to assist the seller throughout the Ortley Beach real estate process.  It indicates that the agent has met or exceeded the foundation in certain real-life experience and educational courses dealing with raising the professional bar.  An agent who is awarded the title of SRS is an agent who is consistently looking to make themselves a better agent.  This is a person who really loves their job and wants to do it as effectively as possible.

Graduate REALTOR® Institute – GRI

This focuses on everything from regulatory issues to professional standards.  This is a designation that helps agents stand out from the rest.  It signals that this Seaside Park real estate agent has continued their education and has in-depth information on current legal issues, technology, and the entire venture.

Senior Real Estate Specialist® – SRES

This designation indicates a realtor that has been educated in how to accommodate the specific needs of client group of people over 50 years of age.  Agents with this title have specific training in how to best partner with people who fit this category.

Many of our agents hold one or more of these titles. For our highly experienced Ortley Beach real estate agents, click here.  For our professional Lavallette real estate team, click here.  And for our group of distinguished Seaside Park real estate agents, click here.  All of our agents are ready and willing to help you make the home buying, home selling, and renting process on both ends as enjoyable for you as possible while always having your best interests in mind.

If you own a rental property, you know how much work can be involved in the maintenance.  Other than cleaning the house from top to bottom in between renters, there are a lot of other things to consider.  Landscaping is a big one.  You want your rental home to be welcoming, look appropriate for your location, and be easy to maintain.  There are a few key items that can help keep your rental property’s curb appeal looking it’s best with minimal effort from you!

Hardscaping

This is a big one for the shore region.  Replacing grass with hardscaping features like stone or pavers is almost totally worry-free.  Having a lawn of grass not only requires more work but also more money.  Especially in rental properties along the coastline, maintaining a nice-looking, green lawn can require a lot of work. Between the fertilizing, weed control, and cutting, you could save a lot of time and money by replacing the lawn with stone.  A once or twice a year treatment for weed control and you’re done!  You may even have to do it less if it is used with a good quality weed barrier cloth underneath the stone cover. If there is an opportunity to add a walkway, patio, or other hardscape feature, it can be one more opportunity to keep your curb appeal looking it’s best with minimal effort.

Landscape Alternatives

If you are not a fan of stone, there are other options for replacing grass in a landscape.  Mulch is one possible choice.  Mulch doesn’t only look good visually, it helps in a variety of ways.  One, it helps with weed control.  With a solid barrier of mulch, there won’t be much you have to do to that area. Two, it helps with soil erosion.  So not only does it look nice, it is good for your plants and yard.  Lastly, it helps with water retention.  This is another time and money saver.  Because it helps keep moisture around your plants, you will need to water and fertilize less.

Another landscape alternative is a ground cover option like moss.  If you have the right conditions, moss can give you that beautiful green look without any work at all once it’s established.  Clover and ivy are other options to plant that require little upkeep and also gives a home the look of a green lawn without all the hassle.  There are a few colorful ground cover options also, but they may not provide the year-round ease of other options.

One last choice is turf or fake grass.  This is an increasingly popular option.  It comes in a range of colors and quality.  It is a great alternative for rental homes, especially those that allow pets due to the durability of it.  It looks great all year and requires zero maintenance!

Perennials and Evergreens

If you do have garden beds in your landscape, consider filling a majority of them with perennials.  When you fill a bed with mostly flowers that come back each year, you’ll again save yourself time and money each year.  Instead of having to spend hundreds on annuals each year, perennials last for years. Another great thing about perennials is that they require little daily or weekly maintenance.  Where many annuals will need constant watering and care, a lot of perennials pretty much take care of themselves.

Using ornamental shrubs and evergreens is a great way to fill space in a landscape.  Other than some pruning here and there, many evergreens don’t need you to watch over them.  Most are drought tolerant and are very hardy.

We hope we’ve given you some ideas on how to keep your rental property looking its best without a ton of work.  If you’re looking for more options, be sure to speak with a local landscaper.