Archive for the ‘Information For Buyers’ Category

Contrary to reports and newspaper articles circulating widely on the Internet, there is not a 4 percent sales tax or transfer tax on the sale of a home included in the recently signed health care reform bill.

This myth has been invalidated by the National Association of Realtors (NAR) and other experts who are knowledgeable about what is included in the heath care reform bill.

NAR is working to spread the word that there is no truth to this rumor. To read their statement, please click here.

Please visit the following open houses today:

57 Dogwood Terrace, Millington – $839,900

50 Church Street, Liberty Corner – $499,000

1502 Bayley Court, Bridgewater - $409,000

If your attorney is quick, you can make an offer today or tomorrow and still be under contract by Friday – in time to qualify for the First Time or Repeat Buyer tax credit!

Are you thinking about making a move into or out of Basking Ridge, Bedminster or Bernardsville?  I’m happy to help. Contact me today for information about properties available in any of these towns or the surrounding areas.  I’m also happy to help you understand the value of your home in today’s market.  Feel free to follow any of these links for more information.

Have a great Sunday!

Originally published on 11/5/09.   Post repeated due to the following correction….

I have clients who are in attorney review for a purchase of a bank owned property.  The bank has not provided a disclosure form but the property had been listed with my firm in the past so I dug out the old disclosure form.  We discovered that an oil tank had been properly decommissioned with permits back in 1997.  My client had read my post and panic set in!  Of course, we are going to ask that the bank remove the tank, but we aren’t convinced that they will do so.  We started researching, starting with an insurance agent.  The answer from the Weichert insurance rep follows (with minor edits for anonymity): “Since the tank was properly decommissioned with inspection and permits through the town, the risk of any potential future contamination or liability exposure for your buyers is extremely slim.  They will be eligible for a standard homeowners insurance policy.”

However (another update since November, 2009) – I have recently learned that although a home with an underground strorage tank is eligible for a standard homeowners insurance policy it is not without the stipulation that contamination issues will not be covered.  As a current homeowner with a tank, you may be grandfathered by your insurance company.  But some companies – such as mine (NJ Manufacturers) – have recently sent communications to homeowners offering (requiring?) that a special rider be purchased to cover potential contamination issues.

As you can see from the nature of the updates to this post, this is an everchanging issue.  The bottom line is this: if you have an underground storage tank – whether decommisisoned or not – you really need to get that tank out of the ground.  Especially if you are planning to sell the property.

Original post follows – still with accuracy! 

“My oil tank is underground and it has insurance; why do I need to remove it?” , ”I am negotiating a contract on a home with an underground tank, what do I need to know about it?”, “There is a decomissioned tank in the back yard, all the permits are on file at the township office.”, “Can we ask the seller to pay for the soil test?”, “We haven’t had any problems with our tank, we are not going to take it out of the ground.”

When I first started in real estate, the only thing I needed to know when selling a home with an oil tank was the number of a reputable inspection company.  We held our breath during the tank inspection and exhaled when the soil reports came back clean.  Then, during a transaction on West Oak Street in Basking Ridge, we were days away from closing and my client (a first time home buyer) called me in tears: “I just got a call from my homewoners insurance company, they have a new policy against insuring homes with underground storage tanks”.  That was the beginning of the end!!

While there is no law against the transfer of property with an underground oil tank, it is increasingly difficult to do so.  Especially in a buyers’ market!  Even properly decommissioned tanks run the risk of having leaked at some point in time.  The clean up of contaminated soil is the responsibility of the homeowner – regardless of when the leak occured.  In other words, if you buy a house with an underground tank and a year later you pull the tank to convert to natural gas and there is a leak, then YOU are responsible for the clean up.  There will be no going back to the prior owner for help with the clean up and there will be nobody to blame!  So, as a buyer, it is in your best interest to include a clause in the contract stipulating that the tank be removed.  It also makes sense, if the seller claims that there never was a tank, for a buyer to sweep the property to ensure that there aren’t any tanks hiding under ground!  As a seller, the impetus for pulling the tank prior to listing the property or at the very least prior to contract/closing is the fact that buyers know that it is in their best interest to include a clause in the contract stipulating that the tank be removed.  Removing it before listing the house eliminates the issue completely.  In today’s market that is the best thing to do!  Eliminate any issues or potential issues before opening the door to any buyer who has the upper had to begin with.

If you are a homeowner with an underground tank, it may not be necessary to remove it – contact your insurance company for more information.  I just did my homeowner’s policy renewal.  I do not have a tank, but if I did, as of January, 1, 2009 I would have had to purchase an endorsement to cover us in the event of a leak.  AND this renewal year is the only time that my company is offering this endorsement; once it is applied it can be renewed, but once withdrawn, it cannot be reapplied. 

Bottom line: if you have a tank, take it out or make sure you are properly insured!

The cleanup process can be long, costly and complicated, even with a small fuel leak.  Your insurance policy and municipal, state and federal regulations will dictate how the cleanup must proceed and the combination of these rules can uniquely affect individual properties. 

There is funding available from the state for removal costs as well as for costs associated with clean up.  For more information on NJDEP funding, go to www.nj.gov/dep/srp/finance/ustfund/, or call 609-777-0101.  Another resourceful website is www.NJEDA.com (under the “Applications” tab, click on “Underground Storage Tank Funding Programs”.

If you have any questions about the information in this post, or if you are considering a move into or out of Bernardsville or Basking Ridge, contact me here or call 908-432-0318 as I’m sure I can help!

Only five properties have gone under contract in Bernardsville since March 1st.  List prices were between $295,000 and $875,000.  Market absorption in Bernardsville is currently almost 19 months.  There are 93 properties available and there have only been 5 sales in the last 30 days.  I think some price points do better than others – further analysis to follow.  Feel free to contact me directly if you are considering a move into or out of Bernardsville; I am happy to help!

Market absorption in Bernardsville is 11 months – a clear buyers market! 8 sales in the last 30 days, 3 in the $500,000-$800,000 price range (5.6 months market absorption). 23 properties available between $2M and $5M with only one sale in the last 30 days. There are 20 listings between $1M and $2M and there hasn’t been a sale since March 12th.