Monday, December 21, 2009
Prepping for the Holidays
Because I'm busy preparing for the holidays, I'm taking the next couple of weeks off. I hope you enjoy the festivities as much as I plan to!
Monday, December 7, 2009
Come on Down
As a kid I loved the game show The Price is Right. The excitement never ended from the time Bob Barker called down a new contestant until the major prizes were won in showcase. Showcase showdown was my favorite round. This is the game that occurs at the end when two players have the opportunity to guess how much vacation packages, cars, appliances and all sorts of other cool stuff cost. I scoffed at players who misestimated prices. At the tender age of 12, I was certain I could guess the right price, and angry nobody would take me to Burbank, CA so I could take a stab at it. Years later, I’m a real estate agent and my days of watching The Price is Right are long gone, but pricing a home in a competitive housing market is much like showcase showdown—if you don’t get it right, the game is over.
Pricing is the single most important factor when selling a home. I’ll say it again- pricing is the single most important factor when selling a home. Location is important, condition is important, advertising and promotion are imperative; but if a house isn’t priced properly and is entirely out of sync with what’s considered fair market value, it won’t sell. In fact, you’ve just done your competition a favor. Their buyers will think they’re getting a pretty good deal compared to your expensive home. In addition, the longer a house sits on the market without any offers; the more potential buyers begin to think there’s something wrong with the property. Have I mentioned the hundreds- if not thousands- of dollars wasted on advertising and promotion? If you’re a real estate agent, you’re foolish to take an overpriced listing; and if you’re selling without representation, you’ll be waiting a long time for a buyer. My advice- price it right!
Pricing is the single most important factor when selling a home. I’ll say it again- pricing is the single most important factor when selling a home. Location is important, condition is important, advertising and promotion are imperative; but if a house isn’t priced properly and is entirely out of sync with what’s considered fair market value, it won’t sell. In fact, you’ve just done your competition a favor. Their buyers will think they’re getting a pretty good deal compared to your expensive home. In addition, the longer a house sits on the market without any offers; the more potential buyers begin to think there’s something wrong with the property. Have I mentioned the hundreds- if not thousands- of dollars wasted on advertising and promotion? If you’re a real estate agent, you’re foolish to take an overpriced listing; and if you’re selling without representation, you’ll be waiting a long time for a buyer. My advice- price it right!
Monday, November 30, 2009
October Numbers
Greater Capital Association of Realtors released housing statistics for single family homes in the month of October. This includes new construction and resale. Please see below for stats & summary:
Entire Capital Region MLS Compare to
Oct., 2008
• Residential Sales of Contract (792) +9% (608)
• Residential Closed Sales (824) -4% (791)
• Median Sales Price $174,500 -8% (189,500)
Albany County
• Residential Sales of Contract (176) +7% (164)
• Residential Closed Sales (199) -1% (202)
• Median Sales Price $192,000 -2% $195,900
Rensselaer County
• Residential Sales of Contract (113) +33% (85)
• Residential Closed Sales (110) -3% (113)
• Median Sale Price $168,000 -6% $178,000
Saratoga County
• Residential Sales of Contract (210) +24% (169)
• Residential Closed Sales (196) -8% (213)
• Median Sale Price $237,300 -5% $250,000
Schenectady County
• Residential Sales of Contract (139) +35% (103)
• Residential Closed Sales (144) -21% (119)
• Median Sale Price $148,500 -8% $166,723
Schoharie County
• Residential Sales of Contract (21) +91% (11)
• Residential Closed Sales (19) -46% (13)
• Median Sale Price $130,000 +16% $112,500
Montgomery County
• Residential Sales of Contract (17) -11% (19)
• Residential Closed Sales (39) +56% (25)
• Median Sale Price $96,500 +7% $89,900
New Construction (Entire CRMLS)
• Existing Home Sales (84 ) -2% from (97)
• Average Sale Price $366,783 +5% $349,034
Overall the Capital Region experienced a 4% increase in closed sales for the month of October in comparison to the same time last year. Schenectady faired well with a 24% increase while Saratoga dropped 8%, Rensselaer 3%, and Albany County dropping a modest 1%. While the increase in closed sales varies from county to county, the contracts of sales increased for the fifth month in a row and Schenectady County leads the way with a 35% increase.
The median sale price dropped by 8% across the entire Capital Region with Schenectady County seeing a 7% decrease.
Entire Capital Region MLS Compare to
Oct., 2008
• Residential Sales of Contract (792) +9% (608)
• Residential Closed Sales (824) -4% (791)
• Median Sales Price $174,500 -8% (189,500)
Albany County
• Residential Sales of Contract (176) +7% (164)
• Residential Closed Sales (199) -1% (202)
• Median Sales Price $192,000 -2% $195,900
Rensselaer County
• Residential Sales of Contract (113) +33% (85)
• Residential Closed Sales (110) -3% (113)
• Median Sale Price $168,000 -6% $178,000
Saratoga County
• Residential Sales of Contract (210) +24% (169)
• Residential Closed Sales (196) -8% (213)
• Median Sale Price $237,300 -5% $250,000
Schenectady County
• Residential Sales of Contract (139) +35% (103)
• Residential Closed Sales (144) -21% (119)
• Median Sale Price $148,500 -8% $166,723
Schoharie County
• Residential Sales of Contract (21) +91% (11)
• Residential Closed Sales (19) -46% (13)
• Median Sale Price $130,000 +16% $112,500
Montgomery County
• Residential Sales of Contract (17) -11% (19)
• Residential Closed Sales (39) +56% (25)
• Median Sale Price $96,500 +7% $89,900
New Construction (Entire CRMLS)
• Existing Home Sales (84 ) -2% from (97)
• Average Sale Price $366,783 +5% $349,034
Overall the Capital Region experienced a 4% increase in closed sales for the month of October in comparison to the same time last year. Schenectady faired well with a 24% increase while Saratoga dropped 8%, Rensselaer 3%, and Albany County dropping a modest 1%. While the increase in closed sales varies from county to county, the contracts of sales increased for the fifth month in a row and Schenectady County leads the way with a 35% increase.
The median sale price dropped by 8% across the entire Capital Region with Schenectady County seeing a 7% decrease.
Monday, November 23, 2009
T'is the Season
Thanksgiving is a few days away and Friday marks the beginning of the Holiday season. Everyone is gearing up for what’s arguably the busiest time of year. While I’ll admit this probably isn’t the most convenient time for a seller to put their house on the market or a buyer to search properties, but it’s definitely the time of year when houses and their neighborhoods are looking festive and fantastic. Couple that with the extension and expansion of the $8,000 tax credit, along with interest rates hovering around 5% and this may be the best holiday ever to buy or sell a home!
If you’re thinking about waiting until after the holidays to make your move, you might want to think again. As a seller, you have the opportunity to take advantage of the vast number of first-time or repeat home buyers looking to cash in on the $8,000/$6,500 tax credit. And as a buyer, this is a great time to view decked-out homes and tour these properties with the holiday cheer they deserve!
If you’re thinking about waiting until after the holidays to make your move, you might want to think again. As a seller, you have the opportunity to take advantage of the vast number of first-time or repeat home buyers looking to cash in on the $8,000/$6,500 tax credit. And as a buyer, this is a great time to view decked-out homes and tour these properties with the holiday cheer they deserve!
Monday, November 16, 2009
Understanding Agency
Understanding agency and the different types of relationships is really important when you decide to work with a real estate professional. Whether you’re a buyer or seller, you need to know the basics. Who represents your interest and who doesn’t?
Buyer Agency
When buyer agency exists, a real estate agent represents the home buyer and has a fiduciary duty to work on their behalf and in their best interest.
• Negotiating the best pricing
• Protecting buyers interests
• Disclosing pertinent information that might influence the buyers decisions.
• Working with all buyers, without bias, regardless of race, color, religion, sexual orientation, color or national origin.
Seller Agency
When seller agency exists an agent is working in the best interest of the seller. Surprisingly, even the buyer’s agent who draws up a contract and presents that offer on behalf of the buyer represents the best interest of the seller.
Responsibilities of a seller’s agent are nearly identical to that of a buyer’s agent. Protecting buyer’s interests, obtaining the best pricing and disclosing important and influential information to a seller are all part of the agent’s duty.
Dual Agency
Dual Agency exists when a company has a relationship with both the seller and the buyer. This can occur when a home buyer chooses to represent themselves and not seek the help of a buyer’s agent.
When an agent represents both the seller and buyer, there must be informed consent; in other words, the buyer must understand that the agent is working on behalf of both the seller and buyer. The agent/broker responsibilities include:
• Non-disclosure of how much the seller will accept or how much the buyer is willing to pay.
• Disclose information to one party that might put the other at a disadvantage.
Dual Agency With Designated Sales Associates
This type of agency relationship is similar to a Dual Agency in that one company or broker has a relationship with both the seller and buyer and there needs to be informed consent. Typically, one designated sales associate is assigned to represent the seller and another to represent the buyer; in other words, both the seller’s and buyer’s agent work for the same real estate company. However, each have a fiduciary duty to the buyer and seller, respectively.
It is important to note that neither written nor verbal agreement is necessary to establish an agency relationship and compensation is not required for a relationship to exist.
Buyer Agency
When buyer agency exists, a real estate agent represents the home buyer and has a fiduciary duty to work on their behalf and in their best interest.
• Negotiating the best pricing
• Protecting buyers interests
• Disclosing pertinent information that might influence the buyers decisions.
• Working with all buyers, without bias, regardless of race, color, religion, sexual orientation, color or national origin.
Seller Agency
When seller agency exists an agent is working in the best interest of the seller. Surprisingly, even the buyer’s agent who draws up a contract and presents that offer on behalf of the buyer represents the best interest of the seller.
Responsibilities of a seller’s agent are nearly identical to that of a buyer’s agent. Protecting buyer’s interests, obtaining the best pricing and disclosing important and influential information to a seller are all part of the agent’s duty.
Dual Agency
Dual Agency exists when a company has a relationship with both the seller and the buyer. This can occur when a home buyer chooses to represent themselves and not seek the help of a buyer’s agent.
When an agent represents both the seller and buyer, there must be informed consent; in other words, the buyer must understand that the agent is working on behalf of both the seller and buyer. The agent/broker responsibilities include:
• Non-disclosure of how much the seller will accept or how much the buyer is willing to pay.
• Disclose information to one party that might put the other at a disadvantage.
Dual Agency With Designated Sales Associates
This type of agency relationship is similar to a Dual Agency in that one company or broker has a relationship with both the seller and buyer and there needs to be informed consent. Typically, one designated sales associate is assigned to represent the seller and another to represent the buyer; in other words, both the seller’s and buyer’s agent work for the same real estate company. However, each have a fiduciary duty to the buyer and seller, respectively.
It is important to note that neither written nor verbal agreement is necessary to establish an agency relationship and compensation is not required for a relationship to exist.
Monday, November 9, 2009
Congress Extends the $8,000 Tax Credit
Last week Congress voted to extend the $8,000 tax credit for first-time home buyers and expand the bill to include move-up or repeat home buyers. If you’re currently under contract and worried about closing by the November 30 deadline, you’re in the clear. These are the latest revisions and stipulations including income restrictions, credit amounts, purchase price limit, as well as the new filing requirement and revised expiration.
Q Who can take advantage of the newly revised tax credit?
A First-time home buyers defined as individuals or married couples who haven’t owned a principal residence within the past three years. First-time home buyers may have ownership rights in an investment property and will still qualify for the credit provided the property has not been used as their principal residence.
Move-up buyer’s who own their home provided it was used as their principal residence consecutively for five out of the past eight years.
Q How much are the newly revised tax credits?
A First-time home buyers are eligible for 10% of the purchase price of a home with a maximum of an $8,000 tax credit ($4,000 married filing separately); while move-up buyers could claim $6,500 ($3,250 married filing separately) on their federal tax return.
Q What are the revised income restrictions?
A Individuals earning $125,000 and married couple earning $225,000 are the updated income limits. If candidates earn more than the allotted dollar amount, there is a $20,000 phase-out amount. Incomes that fall within those parameters will be eligible for a portion of the tax credit.
Q What is the purchase price limit?
A Purchase price limits have been set at $800,000. Therefore, if the property purchased exceeds this amount the buyer(s) won’t be eligible for the tax credit.
Q What is the Anti-fraud Rule?
A Buyers are required to attach the HUD 1 settlement form (closing statement) to IRS form 5405 when filling their Federal tax return.
Q When do these new rules take effect? Are they retroactive?
A The revised rules are in effect for purchase offers written after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30.) Also, revised income limits apply for sales occuring after November 6, 2009.
(**As a side-note, I advise all home buyers to speak with a tax professional and confirm eligibility for the credit prior to making a purchase offer.)
Q Who can take advantage of the newly revised tax credit?
A First-time home buyers defined as individuals or married couples who haven’t owned a principal residence within the past three years. First-time home buyers may have ownership rights in an investment property and will still qualify for the credit provided the property has not been used as their principal residence.
Move-up buyer’s who own their home provided it was used as their principal residence consecutively for five out of the past eight years.
Q How much are the newly revised tax credits?
A First-time home buyers are eligible for 10% of the purchase price of a home with a maximum of an $8,000 tax credit ($4,000 married filing separately); while move-up buyers could claim $6,500 ($3,250 married filing separately) on their federal tax return.
Q What are the revised income restrictions?
A Individuals earning $125,000 and married couple earning $225,000 are the updated income limits. If candidates earn more than the allotted dollar amount, there is a $20,000 phase-out amount. Incomes that fall within those parameters will be eligible for a portion of the tax credit.
Q What is the purchase price limit?
A Purchase price limits have been set at $800,000. Therefore, if the property purchased exceeds this amount the buyer(s) won’t be eligible for the tax credit.
Q What is the Anti-fraud Rule?
A Buyers are required to attach the HUD 1 settlement form (closing statement) to IRS form 5405 when filling their Federal tax return.
Q When do these new rules take effect? Are they retroactive?
A The revised rules are in effect for purchase offers written after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30.) Also, revised income limits apply for sales occuring after November 6, 2009.
(**As a side-note, I advise all home buyers to speak with a tax professional and confirm eligibility for the credit prior to making a purchase offer.)
Tuesday, November 3, 2009
FSBO or Not?
Next week I have an appointment with a couple who are considering selling their house without a realtor. For Sale by Owner (FSBO) is big business; many potential sellers take the plunge without doing the necessary research and find themselves wasting their time and money. If you’re thinking about selling your home yourself, it’s important you make an informed decision to do so; these are my thoughts:
Your home is likely the single largest investment you’ll ever make. If you’re thinking about selling it, you’ll need to educate yourself about the selling process and all that’s involved.
• Pricing
• Marketing
• Disclosure
• Inspection
• Contract Negotiation
These are a few of the many important issues you need to learn if you want to maximize your proceeds.
Without a solid plan and a clear understanding of current market conditions, selling your home on your own could result in a lot of effort with a great deal of disappointment.
Pricing
Pricing is the single most important factor when selling a home. If a property is priced too high, potential buyers will walk-away, thus wasting your valuable time and the money spent marketing the home.
Although pricing tools like Zillow’s “zestimate” are available through the internet, these tools should only be used as a starting point and not dictate the final price point. It’s a good idea to either ask a real estate professional to do a Comparative Market Analysis (CMA) or call a professional appraiser. Because we have the ability to see your home both inside and out, careful consideration is given to location, curb appeal, upgrades, special features, and property condition. Often there are unstated factors that occur during contract negotiations--factors including seller concessions that aren’t revealed in the analysis supplied by online companies. These factors are relevant and can skew the information.
Marketing
A successful marketing plan includes more than putting an ad in the local newspaper. Today’s digital era requires more than one vehicle to deliver the message to home buyers that your house is on the market. Although print media is important, having an online presence is imperative to getting the message out to the largest number of buyers. One vehicle is not enough and neither is one website. Professional websites as well as social networking sites can assist buyers in spreading the word. Also, marketing a property is NOT cheap and takes considerable time and money. Plan on spending hundreds of dollars and plenty of hours updating ads and online sites, refreshing pictures and content to keep potential buyers interested.
Disclosure—Inspections & Contract Negotiation
Failure to understand disclosures and inspections as well as the inability to execute contract negotiations can cost a seller big money. Did you know that New York State requires sellers to complete the Property Condition Disclosure Statement (PCDS) prior to a potential buyer writing a contract offer? Did you also know this careless mistake can cost the home seller a $500 penalty at closing?
Inspections and contract negotiations many times go hand in hand. Not only must sellers negotiate a purchase price that is acceptable to both parties, they often have to revisit those negotiations if a structural inspection reveals a problem with the house estimated to cost $1,500 or more. When this happens, the buyer has the legal right to walk away from the deal. That being said, if you want to keep the deal together, avoid putting your house back on the market, disclose the structural problem and continue making mortgage payments. I’d say honing your negotiating skills might be a good idea.
Selling your home on your own isn’t necessarily a bad decision, it just needs to be an informed one.
Your home is likely the single largest investment you’ll ever make. If you’re thinking about selling it, you’ll need to educate yourself about the selling process and all that’s involved.
• Pricing
• Marketing
• Disclosure
• Inspection
• Contract Negotiation
These are a few of the many important issues you need to learn if you want to maximize your proceeds.
Without a solid plan and a clear understanding of current market conditions, selling your home on your own could result in a lot of effort with a great deal of disappointment.
Pricing
Pricing is the single most important factor when selling a home. If a property is priced too high, potential buyers will walk-away, thus wasting your valuable time and the money spent marketing the home.
Although pricing tools like Zillow’s “zestimate” are available through the internet, these tools should only be used as a starting point and not dictate the final price point. It’s a good idea to either ask a real estate professional to do a Comparative Market Analysis (CMA) or call a professional appraiser. Because we have the ability to see your home both inside and out, careful consideration is given to location, curb appeal, upgrades, special features, and property condition. Often there are unstated factors that occur during contract negotiations--factors including seller concessions that aren’t revealed in the analysis supplied by online companies. These factors are relevant and can skew the information.
Marketing
A successful marketing plan includes more than putting an ad in the local newspaper. Today’s digital era requires more than one vehicle to deliver the message to home buyers that your house is on the market. Although print media is important, having an online presence is imperative to getting the message out to the largest number of buyers. One vehicle is not enough and neither is one website. Professional websites as well as social networking sites can assist buyers in spreading the word. Also, marketing a property is NOT cheap and takes considerable time and money. Plan on spending hundreds of dollars and plenty of hours updating ads and online sites, refreshing pictures and content to keep potential buyers interested.
Disclosure—Inspections & Contract Negotiation
Failure to understand disclosures and inspections as well as the inability to execute contract negotiations can cost a seller big money. Did you know that New York State requires sellers to complete the Property Condition Disclosure Statement (PCDS) prior to a potential buyer writing a contract offer? Did you also know this careless mistake can cost the home seller a $500 penalty at closing?
Inspections and contract negotiations many times go hand in hand. Not only must sellers negotiate a purchase price that is acceptable to both parties, they often have to revisit those negotiations if a structural inspection reveals a problem with the house estimated to cost $1,500 or more. When this happens, the buyer has the legal right to walk away from the deal. That being said, if you want to keep the deal together, avoid putting your house back on the market, disclose the structural problem and continue making mortgage payments. I’d say honing your negotiating skills might be a good idea.
Selling your home on your own isn’t necessarily a bad decision, it just needs to be an informed one.
Tuesday, October 27, 2009
Just the Facts Jack
Greater Capital Association of Realtors released housing statistics for single family homes in the month of September. This data includes new construction and resale; in addition, RealtyTrac released its third quarter market report for Capital Region Foreclosures—please see below for stats & summary:
Entire Capital Region MLS Compare to
Sept., 2008
• Residential Sales of Contract +9%
• Residential Closed Sales - 4%
• Median Sales Price $185,000 +0%
• Foreclosed Properties Q3(424) +31% from (322)Q2
Albany County
• Residential Sales of Contract - 11%
• Residential Closed Sales + 6%
• Median Sales Price $188,000 - 6% from $200,000
• Foreclosed Properties Q3(198) +19% from (158)Q2
Rensselaer County
• Residential Sales of Contract +20%
• Residential Closed Sales - 15%
• Median Sale Price $172,000 + 4% from $166,000
• Foreclosed Properties Q3(72) +12.5% from (63)Q2
Saratoga County
• Residential Sales of Contract +14%
• Residential Closed Sales + 4%
• Median Sale Price $242,500 - 2% from $246,300
• Foreclosed Properties Q3(60) +36% from (38)Q2
Schenectady County
• Residential Sales of Contract +22%
• Residential Closed Sales - 17%
• Median Sale Price $155,800 - 8% from $169,000
• Foreclosed Properties Q3(89) +30% from (62)Q2
New Construction
• Existing Home Sales (57 sales) - 19% from (71 sales)
• Median Sale Price $289,900 -10.5% from $324,900
For the fourth month in a row, the Capital Region shows an increase in “pending” sales or sales of contract. The $8,000 tax credit and the NYS MCC, both first-time home buyer incentives, may contribute to the increased activity. But with a 45- to 60- day transaction time, one might think closed sales would begin to increase too. Unfortunately, Albany, Saratoga, and Montgomery counties only show a modest increase in closed sales with Albany and Montgomery county 6% higher than September of last year. Overall, the entire region showed a 4% decrease in closed sales.
This month, the median sales price overall shows no change. However, it did recede slightly in Albany and Saratoga counties with its steepest decline in Schenectady County (8% drop). Montgomery County shows the greatest increase by 38% in median sale price.
An increase in Capital Region foreclosures may contribute to the dip in median sales price. RealtyTrac recently released its third quarter foreclosure report and the Capital Region market shows a 31% increase in foreclosed properties compared to the second quarter. Short sales and foreclosures sell for less money than a traditional home sale, sometimes greater than 25%. According to the report, Saratoga County shows the greatest increase in foreclosed properties compared to last quarter with a 36% increase. New construction sales are also down by 19% from September, 2008. The median sale price for new construction dropped from $324,900 to $289,900.
Entire Capital Region MLS Compare to
Sept., 2008
• Residential Sales of Contract +9%
• Residential Closed Sales - 4%
• Median Sales Price $185,000 +0%
• Foreclosed Properties Q3(424) +31% from (322)Q2
Albany County
• Residential Sales of Contract - 11%
• Residential Closed Sales + 6%
• Median Sales Price $188,000 - 6% from $200,000
• Foreclosed Properties Q3(198) +19% from (158)Q2
Rensselaer County
• Residential Sales of Contract +20%
• Residential Closed Sales - 15%
• Median Sale Price $172,000 + 4% from $166,000
• Foreclosed Properties Q3(72) +12.5% from (63)Q2
Saratoga County
• Residential Sales of Contract +14%
• Residential Closed Sales + 4%
• Median Sale Price $242,500 - 2% from $246,300
• Foreclosed Properties Q3(60) +36% from (38)Q2
Schenectady County
• Residential Sales of Contract +22%
• Residential Closed Sales - 17%
• Median Sale Price $155,800 - 8% from $169,000
• Foreclosed Properties Q3(89) +30% from (62)Q2
New Construction
• Existing Home Sales (57 sales) - 19% from (71 sales)
• Median Sale Price $289,900 -10.5% from $324,900
For the fourth month in a row, the Capital Region shows an increase in “pending” sales or sales of contract. The $8,000 tax credit and the NYS MCC, both first-time home buyer incentives, may contribute to the increased activity. But with a 45- to 60- day transaction time, one might think closed sales would begin to increase too. Unfortunately, Albany, Saratoga, and Montgomery counties only show a modest increase in closed sales with Albany and Montgomery county 6% higher than September of last year. Overall, the entire region showed a 4% decrease in closed sales.
This month, the median sales price overall shows no change. However, it did recede slightly in Albany and Saratoga counties with its steepest decline in Schenectady County (8% drop). Montgomery County shows the greatest increase by 38% in median sale price.
An increase in Capital Region foreclosures may contribute to the dip in median sales price. RealtyTrac recently released its third quarter foreclosure report and the Capital Region market shows a 31% increase in foreclosed properties compared to the second quarter. Short sales and foreclosures sell for less money than a traditional home sale, sometimes greater than 25%. According to the report, Saratoga County shows the greatest increase in foreclosed properties compared to last quarter with a 36% increase. New construction sales are also down by 19% from September, 2008. The median sale price for new construction dropped from $324,900 to $289,900.
Tuesday, October 20, 2009
Reach Out
Recently I was a guest on the weekly radio program We Speak House. The show airs every Saturday morning at 9:00 am on the local radio dial. Jason Micare, President of the Capital District chapter of ASHI Certified Home Inspectors hosts the show and does a great job of keeping things fun and conversational. The focus of this segment was the $8,000 tax credit, the New York State MCC and the current state of the Capital Region housing market. Because Jason is not only a home inspector but also a real estate investor, he is acutely aware of what’s happening in the local market and understands how fortunate we are to conduct business in an area that’s significantly more stable than most markets in the country. That being said, I must acknowledge that although I think the Capital Region is fairly insulated from this turbulent economy and that the real estate market here is more stable than most, there are still a number of distressed homeowners in the area who are experiencing economic hardship, can’t make their mortgage payments and, as a result, will lose their home.
As a real estate agent, I’m there to see that glorious moment when house keys are turned over to the home buyer. It is a proud moment—for everyone. Unfortunately, that jubilation doesn’t always last. This past week I received phone calls from home owners who are having difficulty making their mortgage payments. Some have missed payments while others are barely making end’s meet. If you or someone you know is having difficulty meeting their obligations, I’ve listed a few important things to do:
1. Immediately contact your lender or a HUD-approved housing counseling agency (1-800-569-4287). If you’re calling a lender, ask for either the loss mitigation department or a department that deals with distressed home owners. An approved housing counselor can help you understand your options and the law. They can also negotiate with your lender on your behalf. The longer you wait to call either one, the less likely your lender will be willing to negotiate. Also, make sure you can provide your financial information including all monthly income and expenses.
2. Get Educated. Go to the U.S. Department of Housing and Urban Development website to better understand your options.
3. Avoid foreclosure prevention companies. A HUD approved housing counselor will negotiate with your lender for free. Although many of these businesses are legitimate, they aren’t necessary—your lender or housing counselor can provide you with the same information or services.
4. Avoid Scams! Unfortunately there are individuals and companies looking to take advantage of an unfortunate situation. Never sign any legal document without understanding all the terms and always speak with an attorney.
According to RealtyTrac’s US Foreclosure Market Report, the Capital Region foreclosure rate increased more than 31% in the the third quarter over the last, a distinct difference from the first quarter report when the Capital Region finished low on RealtyTrac’s list-- number 186 of the country’s 203 largest metropolitan areas to be exact. But although the number of foreclosures are beginning to creep up, we are still a far cry from what’s happening in the hardest hit areas of this country, and I think we local agents should be grateful for that. I also think we have a responsibility to reach out and educate these distressed home owners. Many of them are looking for answers and don’t know where to turn.
As a real estate agent, I’m there to see that glorious moment when house keys are turned over to the home buyer. It is a proud moment—for everyone. Unfortunately, that jubilation doesn’t always last. This past week I received phone calls from home owners who are having difficulty making their mortgage payments. Some have missed payments while others are barely making end’s meet. If you or someone you know is having difficulty meeting their obligations, I’ve listed a few important things to do:
1. Immediately contact your lender or a HUD-approved housing counseling agency (1-800-569-4287). If you’re calling a lender, ask for either the loss mitigation department or a department that deals with distressed home owners. An approved housing counselor can help you understand your options and the law. They can also negotiate with your lender on your behalf. The longer you wait to call either one, the less likely your lender will be willing to negotiate. Also, make sure you can provide your financial information including all monthly income and expenses.
2. Get Educated. Go to the U.S. Department of Housing and Urban Development website to better understand your options.
3. Avoid foreclosure prevention companies. A HUD approved housing counselor will negotiate with your lender for free. Although many of these businesses are legitimate, they aren’t necessary—your lender or housing counselor can provide you with the same information or services.
4. Avoid Scams! Unfortunately there are individuals and companies looking to take advantage of an unfortunate situation. Never sign any legal document without understanding all the terms and always speak with an attorney.
According to RealtyTrac’s US Foreclosure Market Report, the Capital Region foreclosure rate increased more than 31% in the the third quarter over the last, a distinct difference from the first quarter report when the Capital Region finished low on RealtyTrac’s list-- number 186 of the country’s 203 largest metropolitan areas to be exact. But although the number of foreclosures are beginning to creep up, we are still a far cry from what’s happening in the hardest hit areas of this country, and I think we local agents should be grateful for that. I also think we have a responsibility to reach out and educate these distressed home owners. Many of them are looking for answers and don’t know where to turn.
Tuesday, October 13, 2009
This Land is Your Land
Over Columbus Day weekend, I met with a client who’s looking to purchase land and build a new home. Recently, she found a parcel of land from a MLS listing that I emailed and decided she’s interested in the property. I met with her on Sunday, so we could walk the property together, go over comps and discuss her future plans. I recently called the local municipality on her behalf to confirm that the land is approved for building, find out the set-back requirements, see if there are building restrictions, ask about water, wetlands and soil, see if there are live stock or state parks nearby, and make sure there isn’t anything else that might hinder future construction. My client was happy to know that a perk test has been done and the proposed site is laid out in a property survey. The next step presumably is to make an offer on the land.
As an agent, my next step is pulling comparables of similar properties that have recently sold. This is no different than what I do for clients who are purchasing a home-- we pull comparables from a neighborhood and surrounding area to determine fair market value. Building a home from the ground up is no easy task and this type of construction requires a great deal of leg work by both the agent and the buyer. Finding a suitable piece of land can be a challenge and making sure that the property is a good place to build requires an agent to ask the right questions and reach out to the right people. I couldn’t imagine anything worse than buying a piece of property only to find you’re unable to build or that it would be an extremely lengthy and expensive undertaking to do so. Having as many questions answered up-front is the way to go.
As an agent, my next step is pulling comparables of similar properties that have recently sold. This is no different than what I do for clients who are purchasing a home-- we pull comparables from a neighborhood and surrounding area to determine fair market value. Building a home from the ground up is no easy task and this type of construction requires a great deal of leg work by both the agent and the buyer. Finding a suitable piece of land can be a challenge and making sure that the property is a good place to build requires an agent to ask the right questions and reach out to the right people. I couldn’t imagine anything worse than buying a piece of property only to find you’re unable to build or that it would be an extremely lengthy and expensive undertaking to do so. Having as many questions answered up-front is the way to go.
Monday, October 5, 2009
An Honor and an Answer
Recently, WRGB, CBS6 News asked if I’d be interested in becoming a member of their Answers Team, and be their representative for local real estate. This team is comprised of area business leaders who represent: banking, money management, credit counseling, career development, financial planning, mortgages, taxes, and government relations, to name a few. I was recommended by a past client and friend who is a reporter and fill-in anchor for the station.
The Answers Team convenes every Wednesday from 5:00 pm to 7:00 pm when we participate in a phone bank. Each week, CBS6 viewers either email or call in with real estate, financial or business related questions. The show’s producers screen these inquiries and direct callers to the appropriate person. In addition, producers often request an exclusive interview to talk about relevant issues within the various industries. I gratefully accepted this opportunity, and filled the role in September.
Last week, approximately 80% of all the phone calls I received were inquiries regarding the $8,000 tax credit for first-time home buyers or the New York State Mortgage Credit Certificate (NYS MCC) program. There seems to be alot of confusion about the definition of a “first-time home buyer”, the difference between the two programs, the time frame a home needs to close to be able to qualify, what types of structures are acceptable, as well as what buyers need to do to qualify for both deals.
Because the $8,000 tax credit is set to expire on December 1, first-time home buyers want to make sure they qualify for either one or both of the tax credits. Although I covered both incentives in a recent blog post Who’s the Winner, I think it’s worthwhile to address some of these questions.
Q: What is considered a first-time home buyer?
A: A first-time home buyer is a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, this rule tests the history of both the buyer and spouse. If either have owned or co-owned a principal residence within the past three years, they do not qualify.
Q: What are some of the differences between the two programs?
A: Overall both incentives are a great opportunity for first-time home buyers to save money; however, the NYS MCC is much more restrictive than the $8,000 tax credit and requires more effort from the buyer to obtain. Let’s start with the basics. The $8,000 tax credit can earn qualified buyers a tax credit for 10% of the purchase price of their home; however, that amount can’t exceed $8,000. This is a one-time credit and can be claimed on an amended 2008 Federal tax return or the 2009 return. On the other hand, the NYS MCC is a certificate that allows the buyer to convert 20% of their annual mortgage interest into a tax credit for the life of the loan, potentially saving first-time home buyers more than $30,000. The pitfall is the MCC requires buyers to apply for the certificate through an approved list of lenders, the mortgage loan must be a fixed interest rate, the mortgage loan can not be issued by SONYMA, the income limitations are stricter than on the $8,000 tax credit and there are also purchase price limits. In addition, the tax credit each year can’t exceed the borrower’s federal income tax liability. In other words, you wouldn’t be issued a check for the difference. On the bright side, the unused portion of the credit would be carried forward for up to three years and applied to future liability. Also, the NYS MCC has a one-time application fee associated with it. A house priced equal to or less than $100,000 commands a $250 application fee and a purchase over $100,000 requires $500. Both must be paid at closing by certified check.
Q: When do I need to close to qualify for the $8,000 tax credit and how can I qualify for both of these incentives?
A: First, the $8,000 tax credit is due to expire on December 1, of this year. A first-time home buyer is eligible for this credit if they close on a home on or after January 1, 2009 but before Dec 1, 2009. To qualify for both incentives, the home buyer must close on or after September 2, but before December 1. In addition, they must meet all guidelines issued by SONYMA (see website) including using an approved lender, meeting purchase price and income requirements, as well as applying for the certificate before mortgage approval.
Q: What types of homes are covered under both incentives?
A: Existing or newly constructed one-family homes including townhomes, condos and coops. According to the IRS, mobile homes are covered under the $8,000 tax credit even if the land is leased. The MCC doesn’t include homes that are not permanently attached to land; nor does it include property that exceeds five acres. The MCC does allow for the purchase of two, three and four-family homes provide they meet the SONYMA guidelines.
The above questions are the bulk of what I received last week during my Answers Team session. If you’re interested in learning more, I’ve created a report that compares the two incentives which can be obtained from my website http://www.lisachampagne.com/. I urge all first-time home buyers to speak with their lender and a tax expert regarding these programs.
The Answers Team convenes every Wednesday from 5:00 pm to 7:00 pm when we participate in a phone bank. Each week, CBS6 viewers either email or call in with real estate, financial or business related questions. The show’s producers screen these inquiries and direct callers to the appropriate person. In addition, producers often request an exclusive interview to talk about relevant issues within the various industries. I gratefully accepted this opportunity, and filled the role in September.
Last week, approximately 80% of all the phone calls I received were inquiries regarding the $8,000 tax credit for first-time home buyers or the New York State Mortgage Credit Certificate (NYS MCC) program. There seems to be alot of confusion about the definition of a “first-time home buyer”, the difference between the two programs, the time frame a home needs to close to be able to qualify, what types of structures are acceptable, as well as what buyers need to do to qualify for both deals.
Because the $8,000 tax credit is set to expire on December 1, first-time home buyers want to make sure they qualify for either one or both of the tax credits. Although I covered both incentives in a recent blog post Who’s the Winner, I think it’s worthwhile to address some of these questions.
Q: What is considered a first-time home buyer?
A: A first-time home buyer is a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, this rule tests the history of both the buyer and spouse. If either have owned or co-owned a principal residence within the past three years, they do not qualify.
Q: What are some of the differences between the two programs?
A: Overall both incentives are a great opportunity for first-time home buyers to save money; however, the NYS MCC is much more restrictive than the $8,000 tax credit and requires more effort from the buyer to obtain. Let’s start with the basics. The $8,000 tax credit can earn qualified buyers a tax credit for 10% of the purchase price of their home; however, that amount can’t exceed $8,000. This is a one-time credit and can be claimed on an amended 2008 Federal tax return or the 2009 return. On the other hand, the NYS MCC is a certificate that allows the buyer to convert 20% of their annual mortgage interest into a tax credit for the life of the loan, potentially saving first-time home buyers more than $30,000. The pitfall is the MCC requires buyers to apply for the certificate through an approved list of lenders, the mortgage loan must be a fixed interest rate, the mortgage loan can not be issued by SONYMA, the income limitations are stricter than on the $8,000 tax credit and there are also purchase price limits. In addition, the tax credit each year can’t exceed the borrower’s federal income tax liability. In other words, you wouldn’t be issued a check for the difference. On the bright side, the unused portion of the credit would be carried forward for up to three years and applied to future liability. Also, the NYS MCC has a one-time application fee associated with it. A house priced equal to or less than $100,000 commands a $250 application fee and a purchase over $100,000 requires $500. Both must be paid at closing by certified check.
Q: When do I need to close to qualify for the $8,000 tax credit and how can I qualify for both of these incentives?
A: First, the $8,000 tax credit is due to expire on December 1, of this year. A first-time home buyer is eligible for this credit if they close on a home on or after January 1, 2009 but before Dec 1, 2009. To qualify for both incentives, the home buyer must close on or after September 2, but before December 1. In addition, they must meet all guidelines issued by SONYMA (see website) including using an approved lender, meeting purchase price and income requirements, as well as applying for the certificate before mortgage approval.
Q: What types of homes are covered under both incentives?
A: Existing or newly constructed one-family homes including townhomes, condos and coops. According to the IRS, mobile homes are covered under the $8,000 tax credit even if the land is leased. The MCC doesn’t include homes that are not permanently attached to land; nor does it include property that exceeds five acres. The MCC does allow for the purchase of two, three and four-family homes provide they meet the SONYMA guidelines.
The above questions are the bulk of what I received last week during my Answers Team session. If you’re interested in learning more, I’ve created a report that compares the two incentives which can be obtained from my website http://www.lisachampagne.com/. I urge all first-time home buyers to speak with their lender and a tax expert regarding these programs.
Monday, September 28, 2009
The Power of Numbers
I never thought about the significance of numbers. Because I had zero intentions of becoming an economist, analyst, mathematician, statistician, or any professional that crunches numbers for a living, I figured I would leave that stuff to the experts. Then I became a realtor and quickly realized that this business is all about the numbers and I am the expert.
Each day agents across the country answer questions like: What is the value of my home? How long will it take to sell my house? How do I know if I’m paying a fair price? These questions are typical and easily answered. Reviewing statistical reports, pulling comparables and answering questions are all in a day’s work. When referring to numbers, realtors usually stick with ranges and rarely commit to solid numbers. Why? It is impossible to predict exactly what a house will sell for. I try to suggest a price range, support my proposal with sufficient data, and let clients make the ultimate decision. When a client purchases a home, I select comparable properties and give a range of fair market value.
Each month the National Association of Realtors and Greater Capital Association of Realtors, (GCAR) release data regarding the national and local housing markets. This information is important because it lets us know how the markets are performing in comparison to one year prior. Not only do these numbers influence consumer confidence, they also serve as a useful tool in predicting future trends. This month GCAR indicated that existing home sales in the Capital Region for the month of August decreased by 12%; however, pending sales increased steadily over the past three months, with an 18% increase in August compared to the same month a year ago. What does this mean? Pending sales refer to properties under contract. There was more activity in the months of June, July and August than during the same time last year. This is good news, and industry stakeholders hope those pending sales will boost closed sales in about 45 to 60 days, which is the average time a home takes to close.
Nationally, existing home sales were on a roll, they increased four months in a row-- April through July-- sparking predictions that we might be on the way to recovery. Existing home sales for August retreated by 2.7%; while nationally, the median home price dropped by 12.5%. In large part, this is blamed on the large number of foreclosures and short sales across the country which can skew the numbers. Locally, we faired okay, with only a 2% drop in median sale price from $198,800 in August of last year to $195,000 last month.
What do all of these numbers mean? What does the future hold for the local and national real estate market? I don’t know. And you know what? Nobody else does either. But these numbers have real power; they influence the decisions of buyers and sellers everyday. And although I think they’re important, I also think if you’re in the market to buy or sell a home, there is only one time that matters, and that time is now.
Each day agents across the country answer questions like: What is the value of my home? How long will it take to sell my house? How do I know if I’m paying a fair price? These questions are typical and easily answered. Reviewing statistical reports, pulling comparables and answering questions are all in a day’s work. When referring to numbers, realtors usually stick with ranges and rarely commit to solid numbers. Why? It is impossible to predict exactly what a house will sell for. I try to suggest a price range, support my proposal with sufficient data, and let clients make the ultimate decision. When a client purchases a home, I select comparable properties and give a range of fair market value.
Each month the National Association of Realtors and Greater Capital Association of Realtors, (GCAR) release data regarding the national and local housing markets. This information is important because it lets us know how the markets are performing in comparison to one year prior. Not only do these numbers influence consumer confidence, they also serve as a useful tool in predicting future trends. This month GCAR indicated that existing home sales in the Capital Region for the month of August decreased by 12%; however, pending sales increased steadily over the past three months, with an 18% increase in August compared to the same month a year ago. What does this mean? Pending sales refer to properties under contract. There was more activity in the months of June, July and August than during the same time last year. This is good news, and industry stakeholders hope those pending sales will boost closed sales in about 45 to 60 days, which is the average time a home takes to close.
Nationally, existing home sales were on a roll, they increased four months in a row-- April through July-- sparking predictions that we might be on the way to recovery. Existing home sales for August retreated by 2.7%; while nationally, the median home price dropped by 12.5%. In large part, this is blamed on the large number of foreclosures and short sales across the country which can skew the numbers. Locally, we faired okay, with only a 2% drop in median sale price from $198,800 in August of last year to $195,000 last month.
What do all of these numbers mean? What does the future hold for the local and national real estate market? I don’t know. And you know what? Nobody else does either. But these numbers have real power; they influence the decisions of buyers and sellers everyday. And although I think they’re important, I also think if you’re in the market to buy or sell a home, there is only one time that matters, and that time is now.
Monday, September 21, 2009
Who's The Winner?
In the Capital Region and nationally, it may be the best time ever for first-time home buyers to make their move and purchase a home. The real estate frenzy that left so many first-time buyers out of the game is a distant memory; and right now, with unprecedented incentives, low interest rates and an inventory of moderately priced homes, the "newbie" buyer is the prized player.
So what are these incentives? The $8,000 tax credit for first-time home buyers, part of The American Recovery and Reinvestment Act of 2009 is one that Congress passed early this year. It allows first-time buyers the opportunity to collect a tax credit of 10% or $8,000-- whichever is less-- of the purchase price of their home, provided the home buyer meets the following criteria:
• Purchase the house on or after January 1, 2009 and before December 1, 2009.
• Meet income requirements of $75,000 for individual taxpayers and $150,000 for married couples filing jointly (*note, there is a "phase-out" range for taxpayers with a modified adjusted gross income, please see website for details)
• Use the home as a principal residence
• Hasn’t owned a principal residence within the past three years
• Purchased the property from a non-family member.
What's great about this incentive is it doesn't have to be repaid unless the homeowner sells the house within three years or neglects to use it as a primary residence. And we're talking about real money; this is a tax credit not a tax deduction. What's the difference? If a buyer who qualifies for this credit has no tax liability to offset, he or she can receive a check for the full amount of the incentive. Who couldn't use $8,000 dollars in their pocket? Trouble is, this incentive is due to expire on December 1, and despite lobbying efforts by The National Association of Realtors, NAR, we still aren't certain congress will extend it. NAR estimates nationally that between 1.8 and 2 million first-time home buyers will take advantage of this credit. The IRS reported last week that this tax credit has already provided benefits to 1.4 million families. Unfortunately, we won't have an exact number for the Capital Region until next year, after income taxes are filed. But after evaluating my own business and talking with local real estate agents and mortgage brokers, I've come to the conclusion that locally, 40% or more of our business this year is coming from first-time home buyers.
The second incentive, this one issued by New York State, could save first-time buyers more than $30,000 over the life of their mortgage loan. The New York State Mortgage Credit Certificate issued by SONYMA enables qualified buyers to convert 20% of their annual mortgage interest into a direct income tax credit on their Federal tax return for each year of the life of their loan. For example, if a buyer pays $12,000 in mortgage interest in any one year, they can earn a tax credit for $2,400. The remaining 80% or $9,600 will continue to qualify as an itemized tax deduction. There are stipulations to the NYS MCC, and a tax professional should be consulted. The mortgage loan can not be issued by SONYMA but rather one of the authorized lenders listed by SONYMA. The loan must also be a conventional one with a fixed interest rate. In addition, applicants must meet SONYMA's first-time home buyer requirements, income limit requirements and purchase a home that doesn't exceed SONYMA's allowable purchase price (please see website for details; these requirements are broken down by county and Target Areas). In spite of that, the MCC is another fantastic opportunity for first-time buyers and one that is not due to expire any time soon. In addition, this incentive can be combined with the American Recovery and Reinvestment Act of 2009 tax credit, provided the home closes before December 1. In the Capital Region the transaction time for purchasing a home is about 45 to 60 days, which means first-time home buyers should have a contract written by October 1, if they want to take advantage of both incentives.
Right now these select buyers can have it all. With interest rates hovering around 5% for a 30 year fixed rate loan, unbelievable incentives backed by the government and a multitude of moderately priced houses on the market both nationally and across the Capital Region, these players are already the most valued players in the game right now.
(Thank you to Nick Lemme of Bank of America and Dave Stagnitti of Advantage Mortgage for their contribution. Click below on the link to my website, and you can find information about each of their services under "Neighborhood)
So what are these incentives? The $8,000 tax credit for first-time home buyers, part of The American Recovery and Reinvestment Act of 2009 is one that Congress passed early this year. It allows first-time buyers the opportunity to collect a tax credit of 10% or $8,000-- whichever is less-- of the purchase price of their home, provided the home buyer meets the following criteria:
• Purchase the house on or after January 1, 2009 and before December 1, 2009.
• Meet income requirements of $75,000 for individual taxpayers and $150,000 for married couples filing jointly (*note, there is a "phase-out" range for taxpayers with a modified adjusted gross income, please see website for details)
• Use the home as a principal residence
• Hasn’t owned a principal residence within the past three years
• Purchased the property from a non-family member.
What's great about this incentive is it doesn't have to be repaid unless the homeowner sells the house within three years or neglects to use it as a primary residence. And we're talking about real money; this is a tax credit not a tax deduction. What's the difference? If a buyer who qualifies for this credit has no tax liability to offset, he or she can receive a check for the full amount of the incentive. Who couldn't use $8,000 dollars in their pocket? Trouble is, this incentive is due to expire on December 1, and despite lobbying efforts by The National Association of Realtors, NAR, we still aren't certain congress will extend it. NAR estimates nationally that between 1.8 and 2 million first-time home buyers will take advantage of this credit. The IRS reported last week that this tax credit has already provided benefits to 1.4 million families. Unfortunately, we won't have an exact number for the Capital Region until next year, after income taxes are filed. But after evaluating my own business and talking with local real estate agents and mortgage brokers, I've come to the conclusion that locally, 40% or more of our business this year is coming from first-time home buyers.
The second incentive, this one issued by New York State, could save first-time buyers more than $30,000 over the life of their mortgage loan. The New York State Mortgage Credit Certificate issued by SONYMA enables qualified buyers to convert 20% of their annual mortgage interest into a direct income tax credit on their Federal tax return for each year of the life of their loan. For example, if a buyer pays $12,000 in mortgage interest in any one year, they can earn a tax credit for $2,400. The remaining 80% or $9,600 will continue to qualify as an itemized tax deduction. There are stipulations to the NYS MCC, and a tax professional should be consulted. The mortgage loan can not be issued by SONYMA but rather one of the authorized lenders listed by SONYMA. The loan must also be a conventional one with a fixed interest rate. In addition, applicants must meet SONYMA's first-time home buyer requirements, income limit requirements and purchase a home that doesn't exceed SONYMA's allowable purchase price (please see website for details; these requirements are broken down by county and Target Areas). In spite of that, the MCC is another fantastic opportunity for first-time buyers and one that is not due to expire any time soon. In addition, this incentive can be combined with the American Recovery and Reinvestment Act of 2009 tax credit, provided the home closes before December 1. In the Capital Region the transaction time for purchasing a home is about 45 to 60 days, which means first-time home buyers should have a contract written by October 1, if they want to take advantage of both incentives.
Right now these select buyers can have it all. With interest rates hovering around 5% for a 30 year fixed rate loan, unbelievable incentives backed by the government and a multitude of moderately priced houses on the market both nationally and across the Capital Region, these players are already the most valued players in the game right now.
(Thank you to Nick Lemme of Bank of America and Dave Stagnitti of Advantage Mortgage for their contribution. Click below on the link to my website, and you can find information about each of their services under "Neighborhood)
Monday, September 14, 2009
Planning Ahead--The Seller's Advantage
Over the weekend I scheduled an appointment with a young couple who plan to list their house early next spring. This was a starter home and although they've made many improvements they're eager to "move up" and find a house with a little more space and an open floor plan. In effect, the meeting was to advise them of things they could do to help make the house more marketable.
It's difficult to anticipate what the state of our economy will be next spring and even more difficult to predict the number of buyers who will be looking in a particular price range. It would be nice if the Federal government extends the $8,000 tax credit for first-time home buyers beyond November 30th. The good news is New York State recently passed the Mortgage Credit Certificate Program for first-time home buyers; a new tax credit expected to save mortgage holders more than $30,0000 over the life of their loans. Government incentive certainly helps stimulate the market but will government continue to offer incentive for first-time home buyers? We realtors don't know. But one thing I do know is this: despite not having a crystal ball when it comes to legislation, bank lending and mortage rates, having the luxury to plan ahead certainly gives my sellers an advantage. My clients have more than six months to prep their house before a "For Sale" sign is placed on their front lawn. Between now and then they can address any large issues with the house, make repairs, paint, update, purge items, etc., and not feel rushed or stressed.
A good real estate agent wants every home to be priced right, be in the very best condition and to "show well" when it's put on the market. The idea is to blow away the competition--we want our listing to look better than any other listing in that price range. Now don't get me wrong, this doesn't always go so smoothly. Homeowners aren't always as open to our critical eye as you might think. Nonetheless, most understand our point and are willing to make concessions. When spring comes, I look forward to meeting with my clients again. I can't wait to see the changes they make between now and then. I look forward to putting my RealtyUSA sign on their front lawn; but most importantly, I look forward to seeing the word "SOLD"!
(If you're interested in reading more about the first-time home buyer incentives I refer to in this blog, please scroll down & click on the link to my website. The document is called 2009 Incentives)
It's difficult to anticipate what the state of our economy will be next spring and even more difficult to predict the number of buyers who will be looking in a particular price range. It would be nice if the Federal government extends the $8,000 tax credit for first-time home buyers beyond November 30th. The good news is New York State recently passed the Mortgage Credit Certificate Program for first-time home buyers; a new tax credit expected to save mortgage holders more than $30,0000 over the life of their loans. Government incentive certainly helps stimulate the market but will government continue to offer incentive for first-time home buyers? We realtors don't know. But one thing I do know is this: despite not having a crystal ball when it comes to legislation, bank lending and mortage rates, having the luxury to plan ahead certainly gives my sellers an advantage. My clients have more than six months to prep their house before a "For Sale" sign is placed on their front lawn. Between now and then they can address any large issues with the house, make repairs, paint, update, purge items, etc., and not feel rushed or stressed.
A good real estate agent wants every home to be priced right, be in the very best condition and to "show well" when it's put on the market. The idea is to blow away the competition--we want our listing to look better than any other listing in that price range. Now don't get me wrong, this doesn't always go so smoothly. Homeowners aren't always as open to our critical eye as you might think. Nonetheless, most understand our point and are willing to make concessions. When spring comes, I look forward to meeting with my clients again. I can't wait to see the changes they make between now and then. I look forward to putting my RealtyUSA sign on their front lawn; but most importantly, I look forward to seeing the word "SOLD"!
(If you're interested in reading more about the first-time home buyer incentives I refer to in this blog, please scroll down & click on the link to my website. The document is called 2009 Incentives)
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