What NJ Tells Creditors On Benefits

According to the EMMA website New Jersey borrowed another $400 million last week for which they had to provide an Official Statement which included 20 pages on the situation with public pensions and benefits. Excerpts follow.

As a result of lower-than-recommended contributions by the State to the Pension Plans for an extended period, lower than assumed investment returns on an actuarial basis, benefit enhancements enacted during the late 1990s and early 2000s, and reductions in member contributions, the Pension Plans experienced a deterioration in their financial condition. As a result, the State believes that, in addition to the existing assets of the Pension Plans, the expected earnings on those assets, and contributions from members of the Pension Plans, the State will need to make significantly larger contributions to the Pension Plans in the future to ensure that the Pension Plans will have a sufficient amount of assets to fund expected retirement benefits. (page I-51)

The contribution of the Lottery Enterprise is valued as of June 30, 2020 at $12.569 billion, based on a 30-year straight line amortization. However, the first reevaluation of the value of the Lottery Enterprise required by LECA has not yet been performed. If the contribution of the Lottery Enterprise were not taken into consideration in calculating the funded ratio of the Pension Plans, the funded ratio of the Pension Plans as of June 30, 2020 would have been 37.6% instead of 49.8%. (page I-60)

Since there is no statutory requirement that the State fund the pension costs for the State colleges and universities, the State is not required under GASB 68 to include the State college and university portion of the net pension liability, which is estimated to be $3.808 billion as of June 30, 2019, as a liability on its financial statements. However, the State’s longstanding practice has been to pay the required pension contributions on behalf of the various State higher education institutions and it is expected that this longstanding practice will continue in the future. (page I-68)

The benefits provided include medical, prescription drug, and Medicare Part B and Part D reimbursement for covered retirees, spouses and dependents. In Fiscal Year 2020, the State paid PRM benefits for 171,990 State and local retirees. The State funds post-retirement medical benefits on a “pay-as-you-go” basis, which means that the State does not pre-fund, or otherwise establish a reserve or other pool of assets against the PRM expenses that the State may incur in future years. The Governor’s Fiscal Year 2022 Budget Message recommends appropriations of $1.783 billion to cover the cost of PRM benefits. (page I-68)

58 responses to this post.

  1. What is shocking is that out of the 24 year time period the ACTUAL pension contribution rose above the 50% level just 7 times. ⏫⏫50% just SEVEN TIMES!!! Not once did it hit the full 100%. Wow, it never even hit 80%, BUT it did hit above 70%- twice … SMH … If I were a NJ public employee I would be PISSED. Eventually the NJ, like 90% of them, system is going to cave in from debt, there is no other option.

    Reply

    • Posted by Tough Love on May 3, 2021 at 8:07 pm

      Well……..

      I’m a NJ Taxpayer and what I would like to know is ………. is the total of ACTUAL contributions sufficient to be on schedule (i.e. a 100% funding ratio) for a pension with a generosity level and hence cost EQUAL to what NJ’s Private Sector Taxpayers typically get in Retirement Security (almost always via 401K Plans, NOT DB Pensions today) from their employers?

      If the answer is yes (and I believe there is very reasonable probability that it is) then the Taxpayers have ALREADY PAID all that was justified …….. and it the ludicrously excessive pension promises that need to be reduced to ELIMINATE that unfunded liability, NOT increased contributions.
      ———————

      We (NJ’s Taxpayers) are tired of being treated as “suckers” to be financially abused.

      Reply

  2. As a result of [1] lower-than-recommended contributions by the State to the Pension Plans for [2] an extended period, [3] lower than assumed investment returns on an actuarial basis, [4] benefit enhancements enacted during the late 1990s and early 2000s, and [5] reductions in member contributions, the Pension Plans experienced a deterioration in their financial condition.
    All self inflicted wounds. I can see skimping on the full ARC during a downturn, temporarily, but WHY do it long term? And then WHY jack benefits after not paying long term AND getting weak returns? That does not make sense. This goes to the heart of the issue: public employment today is institutionalized fraud between two special interests, public employees and politicians, who basically engage in a money laundering scheme $$ between themselves… 🤬🤬🤬

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    • Posted by Tough Love on May 3, 2021 at 8:11 pm

      Rex,

      It’s not a “money laundering scheme”. It simply COLLUSION, wherein our self-interested/Taxpayer-betraying Elected Officials trade there favorable votes on Public Sector pay, pensions, and benefits in exchange for election support and campaign contributions,

      Reply

      • It simply COLLUSION, wherein our self-interested/Taxpayer-betraying Elected Officials trade there favorable votes on Public Sector pay, pensions, and benefits in exchange for election support and campaign contributions
        Isn’t THIS ⏫⏫⏫ a form of money laundering? The Politicians TAKE $$ from the Public Employees expecting favors, and then as a direct result Politicians jack their compensation far above market rate. That to me is the benchmark example of money laundering. The politicians are taking campaign cash, which is no different than a bribe, which is an illegal activity, and then as a result Politicians give that same money back, in multiples, to the public employees. Then the cycle just repeats itself. The campaign campaign cash, money, are bribes, unlawful financial transactions. The return of the bribe is gifting out compensation far above market labor rates, yet another unlawful financial transaction. That to me is benchmark money laundering. It is a quid pro quo financial crime. On the flip side the Repugs have been dong the same for decades with Big Business.

        Reply

        • Posted by Tough Love on May 3, 2021 at 10:06 pm

          Hey Stephen Douglas ………… you listening to Rex (sounds about RIGHT ON THE MONEY)?

          Reply

        • Posted by A on May 3, 2021 at 11:50 pm

          RIGHT ON THE MONEY?

          Posted by Rex the Wonder Dog!🐶🐶🐶🐾🐾🐾 on May 3, 2021 at 6:58 pm

          What is shocking is that out of the 24 year time period the ACTUAL pension contribution rose above the 50% level just 7 times. ⏫⏫50% just SEVEN TIMES!!! Not once did it hit the full 100%. Wow, it never even hit 80%, BUT it did hit above 70%- twice … SMH … If I were a NJ public employee I would be PISSED. Eventually the NJ, like 90% of them, system is going to cave in from debt, there is no other option.
          …………………………………..
          It actually went back further than 24 years.

          There is a reason that dozens of studies were done beginning about 2010…

          “Compensation for government employees has become a major policy issue across the nation. As governments at all levels struggle to balance their budgets, leading to tax increases and reductions in government services, many citizens have come to believe that government employees receive excessive compensation, especially in terms of retirement and healthcare benefits.” (Biggs, 2014)
          “tax increases and reductions in government services,” generally were the result of unprecedented market losses and the ensuing recession. “many citizens have come to believe that government employees receive excessive compensation, especially in terms of retirement and healthcare benefits.” Even though, in just about every state, employee salaries were frozen or reduced (ask me how I know) and pension formulas were reduced and/or employee contributions increased. Pension –costs– did increase during that period; not because normal costs increased, but to restore lost funds and pay down the unfunded liability.

          Arnold Governor Schwarzenegger and his sidekick David Crane.
          ““Another major area that we must reform is our pension system, whose costs have gone up by more than 2,000 percent in the last 10 years — from less than $150 million a year to more than $3 billion a year and growing fast,” Schwarzenegger said as he unveiled his budget proposal Friday (Jan. 8).”

          Nevermind that the $150 mil was during the “pension holiday” and $3 bil was largely payment on unfunded liability. Yes, pension costs went up. Pension formulas went down.

          Take it all with a grain of salt. Salaries and pensions are continually changing, and often countercyclical. We can’t all be average.

          “NEVER LET A CRISIS GO TO WASTE”

          2010 was about the time California Policy Center was started, and Transparent California. Pension tsunami was about 5 years earlier.

          Blame it on the unions.

          Reply

          • Nevermind that the $150 mil was during the “pension holiday” and $3 bil was largely payment on unfunded liability.
            Never MIND the unfunded liability came from retroactively jacking the pensions by as much as 50%…

            Reply

          • … “many citizens have come to believe that government employees receive excessive compensation, especially in terms of retirement and healthcare benefits.”…Even though, in just about every state, employee salaries were frozen or reduced (ask me how I know) and pension formulas were reduced and/or employee contributions increased.
            Listen Monkey Boi, when public janitors are pulling down $271K/year I think it is safe to say that public employees are vastly over paid.
            .
            FOR THE RECORD-Public Employee salaries have NEVER been “frozen” in CA Monkey Boi, and to the extent they were TEMPORARILY frozen they were jacked up with raises TWICE the normal raise to make up for any temporary freezes. STFU Junior, this is way above your pay grade.🐒🍌🐒🍌🐒

            Reply

        • Posted by NJ2AZ on May 3, 2021 at 11:53 pm

          the point of money laundering is to conceal the source of illicit funds, so in that regard i don’t think the term applies. no one is trying to hide this.

          i’d agree, its collusion

          Reply

  3. […] Posted on May 3, 2021May 3, 2021 by Mary Pat Campbell What NJ Tells Creditors On Benefits […]

    Reply

  4. Posted by Johnny Boy on May 3, 2021 at 9:57 pm

    After 50 years in New Jersey, I have sold my house and getting ready to leave the state. Let me tell you, what a relief it is to not have anymore financial ties to this failing state. I am taking my millions of net worth and will never give another cent to this state again. Reading these articles used to give me heart burn, now I just laugh. Take the leap and get the F*** out of here.

    Reply

    • Posted by E on May 3, 2021 at 11:10 pm

      Bet ya got top dollar for your house there. Millions of $$ in net worth?? I call bullshit. If true, you wouldn’t give a rats ass about the NJ pension systems or your local property taxes. I see you more as a PS, a guy who has paid his dues but resents being taxed. Heart burn? Not if you’re worth millions bro. Look, I’m with you on possibly leaving NJ. Already have a second home in PA. I just don’t rip NJ like you because I realize it the education system and per capita income is among the highest in the country. And even if you are worth millions as you say, you probably wouldn’t be if you weren’t employed here. So, while I recognize fully the desire to retire to a lower cost state, I don’t understand the hostility. Highest paid people in the country.

      Btw TL, you see the video of the Asian lady getting hit with a hammer?

      Reply

      • Posted by Tough Love on May 3, 2021 at 11:21 pm

        Yeah, I saw the video.

        Too bad the victims weren’t legally carrying. I certainly wouldn’t mind getting rid such trash.

        Reply

        • Posted by NJ2AZ on May 4, 2021 at 12:31 am

          interesting scenario. my first reaction is to say “Oh in NY that person would absolutely be sent up for defending themselves”, but then i remember that in NY to get a permit you have to know the right people so would ny.gov’s need to protect their buddy outweigh its need to throw the book at someone having the gall to defend themselves, against a member of a ‘protected class’ no less??

          my guess is the outcome would depend on exactly how connected the person was

          Reply

        • Posted by E on May 4, 2021 at 7:08 am

          Not sure if she fits the definition of redeemable. I would say that the head stomper from last week on the elderly male would be most certainly not.
          But then again, the person defining redeemable also would’ve crucified Goetz so…..there’s that. Lord knows HIS attackers had second chances before AND after the attack on him.
          He’s all talk this guy….and he loves when you and I fight and is beside himself when 2 smart people who disagree on pensions(remember one of those people gets that pension—so what would she really expect him to say) manage to get along despite that. 😉😉
          Am I right bestie?

          Reply

          • But then again, the person defining redeemable also would’ve crucified Goetz so….
            I am starting to think you’re a BULLSHITTER El Feo when you claim to be a GED Cop. Not even GED Cop’s are this stoopid. Goetz had a right to DEFEND himself. Once his SELF-DEFENSE is complete, and the DEADLY THREAT IS EXTINGUISHHED, his right to GBI and deadly force ENDS. One cannot shoot another in the BACK, or when they have surrendered and have their hands up. Starting to see how self-defense thingy works Barney Fife??? You do NOT shoot people in the BACK, when there is NO THREAT. If you really are a GED Cop I would fire your stoopid ass, because you are a serious danger to the public with that Cowboy Mentality.

            Reply

          • He’s all talk this guy….and he loves when you and I fight and is beside himself when 2 smart people who disagree on pensions…
            Tennessee v Garner Barney Fife. Read it. Learn it. Know it. Educate your sorry punk GED ass.

            Reply

          • Posted by Tough Love on May 4, 2021 at 11:54 am

            Remember the Police Officer who recently shot and killed the young woman swinging a knife at another girl?

            That LEO shouldn’t be charged with anything (nor should the family get a dime via a Civil lawsuit or settlement), and if a cop was nearby and shot/killed the woman swinging that hammer, the SAME should apply.

            Reply

          • Posted by NJ2AZ on May 4, 2021 at 1:27 pm

            but..but! the cop coulda shot her in the leg! or shot into the air!

            Reply

          • Posted by Tough Love on May 4, 2021 at 2:07 pm

            Or shot her with a ping pong cannon or with a potato gun, etc., etc., etc………. or perhaps shot off her thumb so the knife would fall out of her hand.

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          • Posted by E on May 4, 2021 at 4:22 pm

            I think the warning shot idea the one politician gave was perhaps the dumbest.
            Tennessee v Garner. That is apples and oranges to Goetz. That was specifically to stop a fleeing felon who at the time posed no threat. And it was a police officer who testified that he in fact shot him as he was fleeing solely to prevent an escape. Perhaps if more were like Goetz, we would see a drastic reduction in violent crime. Why should we be worried about the attacker? I’m more worried about the old man getting his head stomped in thank you very much.

            Reply

          • Tennessee v Garner. That is apples and oranges to Goetz. That was specifically to stop a fleeing felon who at the time posed no threat. And it was a police officer who testified that he in fact shot him as he was fleeing solely to prevent an escape. Perhaps if more were like Goetz, we would see a drastic reduction in violent crime.
            See, I can lead a GED Cop to water in the middle of the desert, but I can’t make the GED Cop drink it. Tennessee v Garner is directly on point- you can ONLY use “deadly force” as a last resort, when YOUR LIFE, or the LIFE OF OTHERS, is in “immediate” jeopardy. Hence if some guy has a felony warrant for shop lifting and he bolts when you try to take him in to custody, guess what El Dorko, you do NOT get to shoot him in the back to make the arrest. For the record and full disclosure, there is one exception, and ONLY one exception, to the “deadly force” rule established in Tennessee v Garner, and that is if a person is wanted for a serious, violent felony, such as murder, rape, serious bodily injury, etc., and there is a strong likelihood the subject would engage is such acts in the future, murder, GBI or sex crimes, then you could shoot the dirtbag in the back if they fled. But that type of situation would be, and IS, extremely rare, and there MUST be facts that support that situation. El Dorko, you don’t seem to know the facts of the Goetz case, and that doesn’t surprise me at all, you probably read an article or two in some left wing, or right wing, tabloid rag that made Goetz out to be some poor helpless sap who was just defending himself, and now you think you’re some expert of the use of deadly force…. THAT is NOT what happened in the Goetz case, and if your GED ass would take the time to read what Goetz did, then you would not be shooting your GED mouth off about him like you (and TL) are. Goetz is a fucking pussy wussy along the lines of George Zimmerman. Goetz should have been sent to prison for manslaughter, at a minimum.

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          • That is apples and oranges to Goetz.
            Do ALL of us a favor, and educate yourself, so your stupid ass doesn’t pipe off bullshit comment after bullshit comment concerning Goetz.
            The People of the State of New York, Appellant, v Bernhard Goetz, Respondent
            .
            The precise circumstances of the incident giving rise to the charges against defendant are disputed, and ultimately it will be for a trial jury to determine what occurred. We feel it necessary, however, to provide some factual background to properly frame the legal issues before us. Accordingly, we have summarized the facts as they appear from the evidence before the Grand Jury.
            .
            It appears from the evidence before the Grand Jury that Canty approached Goetz, possibly with Allen beside him, and stated “give me five dollars”. Neither Canty nor any of the other youths displayed a weapon. Goetz responded by standing up, pulling out his handgun and firing four shots in rapid succession. The first shot hit Canty in the chest; the second struck Allen in the back; the third went through Ramseur’s arm and into his left side; the fourth was fired at Cabey, who apparently was then standing in the corner of the car, but missed, deflecting instead off of a wall of the conductor’s cab. After Goetz briefly surveyed the scene around him, he fired another shot at Cabey, who then was sitting on the end bench of the car. The bullet entered the rear of Cabey’s side and severed his spinal cord.
            .
            According to Goetz’s statement, the first contact he had with the four youths came when Canty, sitting or lying on the bench across from him, asked “how are you,” to which he replied “fine”. Shortly thereafter, Canty, followed by one of the other youths, walked over to the defendant and stood to his left, while the other two youths remained to his right, in the corner of the subway car. Canty then said “give me five dollars”. Goetz stated that he knew from the smile on Canty’s face that they wanted to “play with me”. Although he was certain that none of the youths had a gun, he had a fear, based on prior experiences, of being “maimed”.

            Goetz then established “a pattern of fire,” deciding specifically to fire from left to right. His [Goetz] stated intention at that point was to “murder [the four youths], to hurt them, to make them suffer as much as possible”. [Yipeeee, Goetz was trying to COMMITT 1st DEGREE, PREMEDITATED MURDER El Dorko!!!!]. When Canty again requested money, Goetz stood up, drew his weapon, and began firing, aiming for the center of the body of each of the four. Goetz recalled that the first two he shot “tried to run through the crowd [but] they had nowhere to run”. Goetz then turned to his right to “go after the other two”. One of these two “tried to run through the wall of the train, but * * * he had [*102] nowhere to go”. The other youth (Cabey) “tried pretending that he wasn’t with [the others]” by standing still, holding on to one of the subway hand straps, and not looking at Goetz. Goetz nonetheless fired his fourth shot at him.[Yipppeeee! More “self-defense”, right El Dipshit!] … He [Goetz] then ran back to the first two youths to make sure they had been “taken care of”. Seeing that they had both been shot, he spun back to check on the latter two. Goetz noticed that the youth who had been standing still was now sitting on a bench and seemed unhurt. As Goetz told the police, “I said ‘ [y]ou seem to be all right, here’s another’ “, and he then fired the shot which severed Cabey’s spinal cord. [Is this what they teach GED cops in NJ as “text book” self -defense EG??] Goetz added that “if I was a little more under self-control * * * I would have put the barrel against his forehead and fired.” [EG’s hero and role model, Bernard Goetz, a cold blooded killing and murdering dirtbag] He also admitted that “if I had had more [bullets], I would have shot them again, and again, and again.”[A sick, mentally disturbed LOSER]

            https://www.nycourts.gov/reporter/archives/p_goetz.htm

            Goetz is a fucking piece of shit dirtbag that should lucked out like George Zimmerman did. , MF’er, if I saw him on the street I would lay him out for the 10-count. Except he is probably dead by now…

            Reply

      • Posted by Johnny boy on May 4, 2021 at 8:09 pm

        Yes, that New Jersey “DID” exist at one time . The premium we pay to live here is not worth it anymore. After this COVID bump in housing prices, I see a perfect storm of dropping prices along with increased crushing property taxes. With NYC in the dumps and WFH the new trend, what makes you think these prices will stay? In the middle of the pandemic, gas taxes were raised, tolls were raised and 4 billion borrowed with our homes used as collateral. Is this not enough to show what the future entails?

        Reply

        • Posted by E on May 5, 2021 at 2:43 pm

          Been hearing the same crapola for 30 years. Since Jim Florio. The ONLY thing you may be right on is that NYC is more than likely DOA. Otherwise there are a ton of millennials willing to pay YOU top $$$ for your house. Take it and run and stop yer fucking bitching. lol. You’ll live like a king elsewhere. You’ll be richer than the locals of your new home.

          Reply

  5. Posted by geo8rge on May 4, 2021 at 8:40 am

    From a similar disclosure in 2018 which has estimates for unfunded post retirement benefits:

    FUNDING POST-RETIREMENT MEDICAL BENEFITS pg I-67

    Click to access ER1000530-ER782771-ER1183977.pdf

    Included is “SCHEDULE OF ACTUARIAL STATUS OF POST-RETIREMENT MEDICAL BENEFITS” Which in table form shows the unfunded liability estimates. For 7/1/15 the unfunded liability is $67.5B (state) + $16.8B (local) = $84 Billion.

    From the recent filing in this post the UAAL unfunded pension liability, which I believe is for the state only, in 2015 was $44B and grew to $52B in 2020.

    This disclosure 2018 has both state and local UAAL, on I-55. It listed UAAL as $44B (state) and $15B (local). exhibit named “HISTORICAL STATUTORY FUNDING STATUS
    AGGREGATE PENSION FUND ACTUARIAL LIABILITIES AND ASSETS(1)”

    I probably got some things wrong on my brief viewing, but it is interesting that in 2018 they included more information.

    Reply

  6. Posted by MJ on May 5, 2021 at 12:21 pm

    Jonny Boy

    Just curious, who bought your home? NJ public workers? Techies or finance people from New York?

    I hope that you got top dollar but I do wonder what career types are committing to the ludicrously high real estate taxes, income tax, business tax, etc

    Thanks

    Reply

    • Posted by Tough Love on May 5, 2021 at 1:28 pm

      While TODAY’S real estate Taxes are now #1 or #2 highest in the nation, the real issue is the HUGE amount that they will need to rise if all of the promised Public Sector pensions & benefits (e.g., free or heavily-subsidized retiree healthcare) are actually going to be paid in-full and on-time.

      Under REALISTIC/APPROPRIATE valuation assumptions, NJ is now somewhere between $200B and $250B underfunded ……… which is a measure of the NOW-IN-HAND cash shortfall.

      To say say that coming up with such an amount w/o a HUGE hit to Property Taxes would be one heck of an understatement.
      ————————–

      As unfair as it would “appear” to those promised such pensions & benefits, given their UNDENIABLE (and easily DEMONSTRABLE) excessive generosity when compared to the similar items granted comparable Private Sector workers (and yes, even when compared on a Total Compensation basis), Taxpayers should certainly push HARD for legal ways to reduce these PAST* promises, and CERTAINLY push for material FUTURE service accrual reductions (for all CURRENT, not just NEW workers) from the excessive and unaffordable promises that are currently in place.

      ——————————

      * A good Place to start WRT pensions is a reversal of ALL (yes EVERY ONE) Public Sector pension changes that (In any way) retroactively increased the value of a participant pension. Beyond the recognizable ones (such as the 9% retroactive formula-factor increase) there are literally hundreds of pension/benefit bills pushed by the greedy Unions, many of which are passed by our self-serving/contribution-soliciting/vote-selling Elected Officials.

      Reply

      • Posted by Tough Love on May 5, 2021 at 1:36 pm

        And addressing my points above, below is from a Brooking’s study (see today’s pensiontsunami – latest Pension News);

        Link: https://www.nj.com/opinion/2021/05/nj-teachers-need-to-be-told-the-truth-their-pensions-are-in-jeopardy-opinion.html

        Excerpt:

        The very notable exception is New Jersey’s Teachers’ Pension and Annuity Fund (TPAF), which is by far the single-worst public pension in the Brookings study. TPAF is New Jersey’s largest public pension fund and covers all active and retired teachers. New Jersey’s Public Employees Retirement System (PERS), the pension plan for state and municipal workers, is second-worst but not nearly in the dire predicament of TPAF.

        This is what Brookings had to say about TPAF: Under any of their investment return scenarios, TPAF is in “near-term trouble” — meaning near-term insolvency. Brookings projects that TPAF will run out of assets in 12-to-15 years, at which point the $4.5 billion-plus in benefits payments will have to be made from the New Jersey’s perpetually strained state budget. This would be a fiscal disaster for New Jersey and a retirement crisis for TPAF’s 262,000 beneficiaries.

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    • Posted by Johnny Boy on May 5, 2021 at 1:52 pm

      No problem MJ. A millenial couple bought my home. They were like 40 years old but had the maturity level of a teenager. They waived their right for an inspection (even though I would of sold the house to them with it). Of course I took their offer since everything (AC,heat pump, refrig, sump pumps,etc) were all over 15 years old and on their way out. The price sold higher then when it sold back in 2006 (Tippity Top) right before everything went into dumps with Lehman. These buyers have no idea what anchor they are tieing around their necks. This millenial generation have finally left the basement and now think its cool to buy a SFH (with no inspection). With NJ on the ropes, this covid bump, NYC dieing, and WFH the new trend, I felt this will would be the last time I would see my house at this price. The only things that will continue to go higher are property taxes, gov bond borrowing, gas taxes, tolls, etc. I sold and I am out. There are thousands of families like mine who are taking their assets and will be spending it outside of NJ. NJ is on a death spiral with tax revenue dropping each year. Ona side note of the maturity level of these buyers, they keep calling me regarding questions like “why is the water not hot.” I told them, “You own the house now, I am not your father, call a plumber.” Like I said, like talking to teenagers who just paid top dollar for a junker car.

      Reply

      • Posted by PS Drone on May 5, 2021 at 2:34 pm

        Good work selling and exiting NJ. I am trying to do the same, but have only had one semi-low ball offer. My home, while old, is in good shape. My take is that buyers want new, HGTV homes and do not want to deal with older interior architecture. And the sale “window” will not last forever, so I may get stuck here in the socialist paradise of NJ.

        Reply

        • Posted by Tough Love on May 5, 2021 at 2:53 pm

          Opening up the “older interior architecture” to the open-space construction common in new homes can be VERY costly when load-bearing walls need to be removed.

          Reply

        • Posted by E on May 5, 2021 at 3:38 pm

          You need another realtor. House in my town had 32 offers on it after a week on the market

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      • Posted by Tough Love on May 5, 2021 at 2:50 pm

        It’s not unusual for a home inspector to miss something (that isn’t of minimal cost to replace/repair) because their several-hours-long inspection is woefully too short to find all such problems, but to NOT insist on a home inspection is VERY foolish, as some houses have problem/defects that can be VERY VERY costly to fix, if fixable at all.

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  7. Posted by Johnny Boy on May 5, 2021 at 1:58 pm

    MJ, I forgot to add that I bought the house in 2011.

    Reply

  8. Posted by MJ on May 5, 2021 at 2:51 pm

    Jonny Boy

    Thanks for the response and interesting information but I really wanted to know the occupations of said young couple

    I agree, most of them who are working, can’t hammer a nail into a wall much manage the care of a home. They pay for everything from lawn care to delivered groceries. Combined with student loan payments and mortgage and pricey cars they wonder why they are broke

    What is general area of where you sold in NJ and what does this couple do for a living.

    Reply

  9. Posted by E on May 5, 2021 at 2:54 pm

    Johnny boy. You are so full of shit. I agree millenials suck. But nobody is calling a former owner to ask why the water isn’t hot. Even those dopes know how to replace a water heater. Be thankful you got top dollar and shut the fuck up already. You sound like a pompous asshole. Here u are bitching about getting more than asking price for your house. These millennials didn’t cause the last recession.
    Sometimes people get the shaft. My wife PARKED car and two others were totaled last week because some moron who was sick and shouldn’t have been driving did and passed out.
    I got a great deal on that car from my buddies wife who is a GM for Toyota dealership. $7000 off. That was in 2018. After paying off rest of loan, I’m left with $15,000. Same GM says inventory so tight she can only give me sticker, yes sticker price. So sucks for me!!!! And none of it was my fault. So shut the fuck up and cry me a river.

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  10. Posted by E on May 5, 2021 at 2:54 pm

    Johnny boy. You are so full of shit. I agree millenials suck. But nobody is calling a former owner to ask why the water isn’t hot. Even those dopes know how to replace a water heater. Be thankful you got top dollar and shut the fuck up already. You sound like a pompous asshole. Here u are bitching about getting more than asking price for your house. These millennials didn’t cause the last recession.
    Sometimes people get the shaft. My wife PARKED car and two others were totaled last week because some moron who was sick and shouldn’t have been driving did and passed out.
    I got a great deal on that car from my buddies wife who is a GM for Toyota dealership. $7000 off. That was in 2018. After paying off rest of loan, I’m left with $15,000. Same GM says inventory so tight she can only give me sticker, yes sticker price. So sucks for me!!!! And none of it was my fault. So shut the fuck up and cry me a river.

    Reply

    • Posted by Tough Love on May 5, 2021 at 3:11 pm

      Was the 2x “STFU” really necessary …… thought we were trying to get past this stuff ?

      Reply

    • Posted by Johnny Boy on May 5, 2021 at 4:26 pm

      I don’t understand the hostility. I am telling the truth and have no agenda to lie. Especially now since I have no financial ties to this state anymore. Just stating my personal story along with my opinion of what I believe is the future for NJ homeowners. If it happens its happens and if it doesn’t it does not. I believe you are getting so angry because deep down, you know I am right. Good luck with your life because I know my station is much better going forward. To answer the other questions, she is a stay at home mom with him recently just joining the ranks as a Realtor. You know how Realtors think, its never been a better time to buy a house. He is 39 and probably doesnt even know about the 2007 recession. History is not their strong point but they will certainly learn the hard way.

      Reply

      • Posted by E on May 5, 2021 at 6:00 pm

        I got ya. My plan more than likely will be lake house/snow bird thing. But my kids will be the wildcard. Good look with the move and my apologies for the hostility. 👍

        Reply

        • Posted by Johnny Boy on May 5, 2021 at 10:10 pm

          No worries. I really loved NJ and just like everyone else, made my fortunes here. But I truly believe that this time is different. I wanted to leave 10 years ago but thought things couldnt get much worse. But I was wrong, Things have gotten much worse and NJ government doesnt even care anymore (or just incompetent) that that the golden goose is dead. They are picking at the corpse and those who remain here and tied up in their expensive house will suffer the most. Just because I made my money in NJ, doesnt mean I have to sit back and watch it deplete year after year because of NJ’s continued thievery and incompetence. Remember Detroit was once one of the largest/richest cities in the country. Look at it now. Good luck to all, we live in interesting times.

          Reply

          • Posted by Tough Love on May 5, 2021 at 10:56 pm

            If the financial Sector abandons NYC ….. an it surely knows it can easily do given current technology and remote working capabilities, it will become Detroit within 5 years.

            Reply

      • Posted by Tough Love on May 5, 2021 at 9:07 pm

        Wow, a budding Realtor choosing NOT to inspect a house …. he should know better.

        Reply

  11. Posted by MJ on May 5, 2021 at 2:57 pm

    I’m just forever wondering who in their right minds, unless already anchored here by work, would rush to buy an expensive house in NJ with a huge ball and chain attached to it

    Reply

    • Posted by E on May 5, 2021 at 3:40 pm

      First in schools and first in income. Makes up somewhat for being first in taxes. Lol.

      Reply

      • Posted by Tough Love on May 5, 2021 at 3:55 pm

        And a HUGE attraction (Compensation-wise) for Public Sector worker, some of who must live here.

        Reply

        • Posted by E on May 5, 2021 at 4:20 pm

          Yea. But only for so long. As in active not retired. Lol. Although we got the lake house, I still have no idea where life will take me in 10 years.

          Reply

  12. Posted by MJ on May 5, 2021 at 3:01 pm

    Hey E,

    We stay in touch with the builder/owner we bought our house from. We find him to be very helpful in answering those funny questions that can come up about the nuances of a home.

    He has also been very helpful in hooking us up with the people he used for repairs, remodels, high end shit at cost, etc so it is possible that new home owners do call previous owners for various reasons

    Sorry about your car/s but it sounds like you can afford 15k come on now

    Reply

    • Posted by Tough Love on May 5, 2021 at 3:19 pm

      It’s quite a bit different calling the person who BUILT your home (assuming it wasn’t many years ago) than calling a person who simply sold you their previous home.

      Not only do they know MUCH more about the house’s construction, but (being in the business), they’re always looking to keep people happy for future referrals.
      ———————-

      Of course post-sale calls like ………… “you forgot to leave us the keys to the side door and garage” (and such) are not uncommon or unreasonable.

      Reply

  13. Posted by MJ on May 5, 2021 at 4:28 pm

    No TL, the people we bought from did not build the home, he was a builder and the wife a doctor and they lived in the home. We bought it from them and stayed in touch. Nice people and very accommodating

    However, being in the construction business, they had done the house up very nicely with high end kitchens baths etc. very well maintained and open concept.

    Beautiful yard and trex deck and taxes not too bad considering it is NJ. I have no doubt that even in a bad market, we won’t have any trouble selling. Did I mention awesome location and view 🙂

    As E always says, we make our money here but will take our resources to a better place when ready

    Reply

    • Posted by Anonymous on May 5, 2021 at 7:42 pm

      Yes. And to be honest, that day may never come. But it very well May, at least that the plan

      Reply

  14. Posted by MJ on May 5, 2021 at 7:32 pm

    AW E, always the gentleman, apologizing when you realize you acted inappropriately 🙂

    That’s one of the reasons I like you on here!

    Reply

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