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.
Monday, November 30, 2009
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.
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