Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
One of the most important events to happen since the pandemic is the introduction of ChatGPT, which is changing the world. Some of the changes are going to be good for agents who adopt the technology early. In addition, the issue of property taxes is beginning to become the elephant in the room, and New Jersey has the biggest elephant. The numbers are beginning to hurt homeownership very hard.
Please feel free to email me at ken@counsellorstitle.com if you have any questions or would like to follow up on any of this edition's articles.
Ken Sikorski
732.914.1400
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How AI Is Changing Real Estate |
It's always interesting to be able to look back on turning points in every industry. Those turning points don't send out invitations. And normally they come in the middle of some serious economic force such as the mortgage crisis back in 2008, the pandemic back in 2020, and even the attack on the World Trade Center in 2001. None of those came as a result of industry efforts but rather appeared as historic disruptions impacting our lives, our businesses and our culture without invitations.
Another powerful force that we are all seeing first-hand come to the forefront is AI, artificial intelligence. It seems just yesterday when ChatGPT arrived on the shores of our economy. And that was in December 2022. Now just about 4 months later, we are realizing that artificial intelligence is going to impact every aspect of our lives, much like the internet affected the way we live our lives. It's one of those transformational developments, a threshold technology.
Whether we determine it for good or for evil, it is here to stay. And so we must learn to adapt to the new topography of business.
When I was living in New York City back in the early 2000s, I became friends with a real estate agent named Michael Rossi, who founded Elegran. Today Elegran is at the forefront of many of the major developments within the real estate sector. His managing director, Jaren Antin, is now leading that New York-based real estate firm into the future with AI technology.
What distinguishes AI from other technology is that the code appears to be user-friendly and create a human soft touch to the power of coding.
Here are some ways that AI is impacting the real estate industry:
■ Artificial intelligence is empowering real estate advisors to become smarter and more available for their clients.
■ AI's new tools have come to the market, allowing agents to engage with their database of leads who are ready for a transaction.
■ AI technology is humanizing the real estate industry from a technological platform.
■ AI allows for agents to maximize their available time to develop truly profitable relationships.
■ AI takes some of the heavy lifting of nurturing relationships, learning what buyers are looking for and presenting qualified buyers to agents who are ready for the transaction.
Time is limited and properties are limited, in the case of inventory, in very short supply. But what AI is able to do is maximize not only the element of time management but also provide a higher quality of experience to the real estate agent's clients.
Written by Anthony DiMaio, Real Estate Blogger, Author, Trainer
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Real Estate Taxes Crushing Homeowners
Are New Jersey real estate taxes the new pandemic of ?
In 2022, the highest state taxes, which average 10 times higher than elsewhere in the country, seven of the 10 highest average property taxes in the US are located in the Northeast.
New Jersey led the pack: the average single-family home paid property taxes of $9,527 in 2022, which was more than 10 times the average that was paid for the average in West Virginia, which was $928. New Jersey isn’t the only Northeastern State that punishes homeowners with high property taxes: Connecticut homeowners pay an average of $7,671, Massachusetts homeowners pay $7,044, New Hampshire homeowners pay $6,855 and New York state homeowners pay $6,673. By far it is clear that New Jersey for the homeowner is the most expensive state to live in, with property taxes 33% higher than its neighboring New York State.
Here are the high property tax rates in order: New Jersey 1.79%, Illinois 1.78%, Connecticut 1.57%, Vermont 1.43% and Nebraska 1.36%.
The other states that round out the top 10 property tax states were: Pennsylvania 1.29%, New Hampshire 1.28%, Ohio 1.27%, New York 1.26% and Iowa 1.25%.
Metro Area High Tax Cities
Rounding out the top five metro areas with the highest effective property tax rates in 2022, New Jersey garnered two out of the top five spots. The highest tax rate came in for Rochester, New York 2.52%; Trenton, New Jersey 2.24%; Rockford, Illinois 2.07%; Peoria, Illinois 1.96% and Atlantic City, New Jersey 1.96%.
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Home Equity Increases by $1 Trillion |
Homeowners Are Gaining
CoreLogic analyst reports that U.S. homeowners with mortgages saw their home equity increase by $1 trillion since the fourth quarter of 2021. This represents a 7.3% increase year-over-year.
In the fourth quarter of 2022, the average mortgage holder earned approximately $14,300 in equity year-over-year. This compares with a $63,000 gain seen in the first quarter of 2022.
Good news for New Jersey homeowners: New Jersey was included in the top three largest average equity gainers. Florida, Hawaii and New Jersey reported the largest average equity gains of $49,000, $37,000 and $36,000, respectively. The states that were reported to have the largest losses were Idaho, Washington, California, Utah and Washington, DC, $21,000, $19,000, $8,500, $4,600 and $8,300, respectively.
Presently, in the fourth quarter of 2022, 66,000 borrowers entered negative equity territory. The areas that reported the highest equity declines were Boise, Idaho, San Francisco, cities in Utah, and Phoenix and Austin, Texas.
As of the fourth quarter of 2022, the average US homeowner still has approximately $270,000 in homeowner equity, $90,000 more than they had at the beginning of the pandemic.
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Counsellors Title is initiating this feature of Title Wise called Life Quotes.
Oftentimes we are so busy doing that we forget the reason(s) why. Life Quotes are those mental speed bumps that we will occasionally come across and insert, just to rehearse the important things in life.
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BEFORE GETTING TOO FAR INTO 2023...
Before you can go to where you want to be, it is prudent to consider where you have been. The first Perspectives by Counsellors Title Agency is just that - it is a compilation of the best of Ralph's Title Wise blogs posted during 2022.
Some of the blogs include: Your Network Is Your Future, Professionalize Your Home Work Space, Decluttering Checklist, Historic Surge in Home Equity, and Marketing Chemistry.
Click the image of the eBook to download it. You can also pass it along to people who might need the information included in it. |
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A.S.A.P. Attorney Settlement Assistance Program
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Our real estate secretarial services are able to assist you in every aspect of the sale, purchase, refinance or loan closing process. We will directly communicate with all the parties involved in the transaction and coordinate and obtain all the items necessary to bring the matter to closing.
Our ASAP services can be individually customized to fit your needs. These services include:
- Documentation Preparation
- Disbursement of Funds
- Attendance at Closing
- HUD Preparation or
- Post-Closing Matters
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Our Commitment to Excellence |
Counsellors Title Agency wants to thank you for the opportunity to work with you and your clients to grow your business. Please feel free to click the link above or here to leave us a review on Google. We appreciate your business. |
Sales: Leading NJ title insurance agency seeks experienced licensed salespersons to help expand its market share throughout the entire state. Benefits include health insurance, 401k with an employer match, flexible spending account, expense account, & marketing support. Send resumes by fax: 732-914-8898 or ralph@counsellorstitle.com
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Free Online Title Insurance Calculator |
Counsellors Title Agency announced its updated Title Calculator for New Jersey home purchases & refinances at: Title Calculator
Loan officers, real estate agents and home buyers can find out how much title insurance will cost for purchases made in New Jersey.
Easy-To-Use Functionality
This online tool includes many of the endorsements involved in calculating the cost of a title policy in New Jersey. CTA's Title Calculator is a great tool for real estate salespersons, loan officers, attorneys and those who are buying or refinancing their home.
It calculates the cost of title insurance based upon the purchase price of the home, the loan amount, and the various endorsements that can accompany the loan. The calculator provides the user the scalability of selecting the various endorsements involved in the transaction.
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Handy Guide to Real Estate Sources |
Here are some of the most widely used governmental websites for the real estate industry.
I look forward to being of service to you, providing you with outstanding real-time information and some humor to make doing business a pleasure.
Sincerely,
Ralph
Ralph Aponte
Counsellors Title
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Counsellors Title Agency, Inc. specializes in providing title insurance, title search services and loan closing services serving attorneys, Realtors, banks and various mortgage companies throughout the State of New Jersey. CTA offers full search and insurance capabilities within all 21 counties of New Jersey for commercial, residential and new construction purchases in our Toms River, Freehold, Chatham, and Union locations.
CTA is equipped with the latest digital technologies to ensure a complete and timely transaction.
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Mr. Ken Sikorski
Our Office: 504 Hooper Avenue,
Toms River, NJ 08753
Phone Number: (732) 914-1400
Fax: 732-914-8898
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