6 Tips for Protecting the Value of Your NJ Real Estate Home

How to stay ahead of the market and keep the value of your NJ real estate home up

 

The aftermath of the NJ real estate bubble has many homeowners remaining in their existing homes. For those who have not been able to sell for one reason or another, owe more on the mortgage than the current value of the home, or are not able to get a mortgage on a new home, the value of your home. See below for some tips and suggestions on how to do so.

Have Your Home Appraised

Homeowners may experience a second negative setback when the home they may have purchased at an inflated price, due to an exaggerated appraisal, receives a much lower appraisal when the homeowner is attempting to sell or refinance. Months ago, a new set of rules, known as the Home Value Code of Conduct, were put into place by Fannie and Freddie Mac in an effort to discourage inflated appraisals. Under these regulations, independent appraisers are hired by appraisal management companies. NJ real estate agents, mortgage brokers, and lenders who previously contacted and provided comparative home values to appraisers do not participate in the new appraisal process. However, the result of this is appraisers who may not be familiar with the neighborhood. Homeowners everywhere are floored by the difference between previous and recent appraisal values. And lenders view lower appraisals as being more risky, so interest rates increase. The best thing to do in this situation is to get a second opinion regarding your home’s value.

Be Aware of Newly Implemented Taxes

Many state and local governments are struggling financially, so they may raise property taxes to make up for their losses, regardless of declining property values. Homeowners should pay close attention to new tax hikes that might be new to them as well as how they will be affected by them.

Contest Property Values

If a homeowner wishes to appeal his or her property taxes, most state and local governments have a procedure that must be followed in order to dispute property appraisals, which ultimately determine property taxes and values. However, paying higher taxes as opposed to insisting on high property values is sometimes a no-win situation. Lower NJ real estate property values as a result of foreclosures and the inability of borrowers to obtain loans lead to lower values for the whole neighborhood. Determine if it is in your best interest to pay lower taxes or to sustain a higher value on your property.

Continue To Make Marketable Improvements To Your Home

It is a good idea for homeowners to get an NJ real estate appraisal done on their home prior to putting it on the market to guide the changes needed to increase the value of their home. As always, upgrades in essential areas such as kitchens and bathrooms yield the greatest return when it comes time to list and sell the property.

Become Active in Your Community

You should pay attention to anything new in your neighborhood that could potentially affect the value of your NJ real estate such as new developments or zoning laws that can compromise the integrity of your neighborhood and school district.

Be There For Your Neighbors

In the case there is an abandoned home in your immediate area discouraging potential buyers and impacting the sale prices of other homes for sale, you should do something this. If possible, research the property owner in the public tax records at your local county courthouse. Bank-owned properties have contractors paid to maintain vacant homes until they are either sold or demolished. You can contact the lender and insist that the home be taken care of. In addition, be ready to relocate when your local market begins to rebound, after careful consideration and research.

 

The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information on NJ real estate, call us today or click here to be connected with one of our top real estate specialists.