A River Runs Through It

Who’s the Quarterback? or Offensive/Defensive Coordinator

2012-02-04T09:12:00.000-08:00

from KCM blog 2/3
Given that it’s Superbowl Week (Go Giants!), I thought we might go with a football theme today. I can’t tell you how many different people I hear proclaim that they are the quarterback of the real estate transaction – the agent, the loan officer, an attorney, accountant or financial planner. But for goodness sake, the buyer/borrower had better be the one calling the shots. Not that everyone else doesn’t play an important role, but the buyer/borrower is the one most impacted by the choices made.
Here’s my opinion of how the team works best:
Head Coach (Your Loan Officer) – Your loan officer should be the Head Coach. After careful analysis of your income, credit and assets, this is the person in the best position to make sure you are playing to your strengths and minimizing your weaknesses. Your loan officer can discuss the economic realities of homeownership, while listening to your quality of life concerns. (How often you’ll be able to eat out or vacation, for example.) The loan officer can set up the game plan.
Offensive Coordinator (Your Real Estate Agent) – Your real estate agent is your offensive coordinator. Armed with the game plan (which includes your limitations), the agent calls the plays, counseling you on the geography, the competition, the best ways to negotiate your way to your personal touchdown. Agents know the playing field (the inventory and the market). If you hire them to represent you, they can disclose the weaknesses of your competition (the seller).
Offensive Line (Your Attorney, Accountant and Financial Advisors) – Your attorney, accountant and financial advisors are your offensive line. They are there to protect you from the blitzes that come from outside (sellers, title issues, tax consequences, and protecting your assets). Not the glamour positions, but vital to any success you are going to have.
Running Backs and Wide Receivers (Your Friends and Family) – Your friends and family are the running backs and wide receivers. They often receive the glory and attention, but honestly, if everyone else doesn’t do their job, they rarely ever see success. Bad game plans, weak play calling, poor execution on the offensive line or by you, as quarterback, leave them merely as names on the roster.
As with any team, communication is the most important component to getting the desired results. Being the center of the action on the field, the quarterback (you) needs to honestly talk with your coaches and coordinators, so they can help direct you on the proper play calling. Simultaneously, you need to heed the feedback from your offensive line, running backs, and receivers to filter wise advice from emotion. Be the quarterback of your own home-buying process and you’ll be more likely to realize your dreams (and not the dreams of someone else).

Mortgage Relief Plan Aims at Refinancing

2012-02-02T16:31:00.000-08:00

By SHAILA DEWAN
Published: February 1, 2012 in NY Times

President Obama, in announcing new mortgage relief on Wednesday, acknowledged that previous efforts to help homeowners had fallen short of expectations. And he tried to explain how his new effort, much of which would require Congressional approval, would fare significantly better.

In making his case, Mr. Obama framed the changes as a round of improvements that would build on previous efforts to make it easier to refinance mortgages.

“I am sending Congress a plan that will give every responsible homeowner in America a chance to save about $3,000 a year on their mortgage by refinancing at historically low rates,” he told an audience in Falls Church, Va. “No more red tape. No more runaround from the banks.”

In recent months, his administration has scrambled to make a breakthrough on the mortgage front, given limited cooperation from Congress and the Federal Housing Finance Agency.

The president’s latest proposal was aimed at two groups of eligible homeowners: about 11 million whose loans are backed by Fannie Mae and Freddie Mac, and about 3.5 million whose loans are privately held. Those estimates include only homeowners who are current on their loan payments, have a credit score above 580 and are paying interest rates high enough to make refinancing attractive.

For those with privately held loans, the president will ask Congress to allow the Federal Housing Administration to refinance their mortgages in a program to be financed by a fee charged to large banks based on their size and the riskiness of their portfolios. The estimated cost of the program would be $5 billion to $10 billion, depending on the number of participants. Only houses whose values fall within F.H.A. guidelines, from about $270,000 to $730,000 depending on location, would qualify.

See NY times for 2/1/12 for more details.

Best Post of 2011 by KCM - Buyer

2011-12-30T16:34:00.000-08:00

Even the Naysayers Say Now Is the Time to Buy

Business School professors Eli Beracha of East Carolina University and Ken H. Johnson of Florida International University have done extensive research on which makes more sense financially: to rent or own a home. They published, Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? In their paper, the professors do not dispute the social benefits of homeownership:
“Home ownership is touted as the “American Dream”. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”

What the professors were proposing is that homeownership is not a better investment strategy than renting. The first of the two major findings was:
“After setting the holding period to the average American’s tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the study period… Individuals, on average, were better off in economic terms to have rented for most of the years in the study period. This first result is strongly dependent upon fiscally disciplined individuals that, without fail, reinvest any residual savings from renting.”

Historically, people do not actually reinvest savings “without fail”. Check here for the findings of a recent study from The Joint Center for Housing Studies at Harvard.
The second major finding says it all. According to both professors Beracha and Johnson, NOW IS THE TIME TO BUY!

“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…
The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:
“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line

Two researchers set out to prove that homeownership is not a good financial decision. After completing that research, they have determined that now is the time to buy. What more needs to be said?

Best Real Estate Post of 2011 by KCM - Seller

2011-12-29T03:48:00.000-08:00

Donald Trump was just quoted saying:
“I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”

John Paulson, a multibillionaire hedge fund operator and the investment genius who made a killing betting against housing a few years ago, is now bullish on residential real estate market. He recently said:
“If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”

A recent Gallup Poll showed that 67% of American’s think that now is a ‘good time’ to buy a home. The Gallup Organization went on to say:
“Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.”

The iconic financial paper in this country, the country’s most famous real estate investor, the most successful prognosticator of the housing market and 2/3 of all Americans say now is the time to buy a home. Shouldn’t your agent agree?

Bottom Line
Selling is nothing more than the transference of conviction. How can agents transfer that conviction if they themselves are not convinced? Find a listing agent who truly believes that someone should buy your home – TODAY! This is the single most important thing you should look for in a potential listing agent.

5 tips to stay on top of home maintenance

2011-12-28T10:24:00.000-08:00

5 tips to stay on top of home maintenance

Holiday greetings for all my friends...12/2011

2011-12-22T04:54:00.001-08:00

A Unique Stone Dutch Colonial

2011-12-03T05:39:00.000-08:00

HERE IS AN OPPORTUNITY TO OWN AN HISTORICALLY SIGNIFICANT DUTCH STONE AND CLAPBOARD HOUSE THAT HAS BEEN CAREFULLYAND SENSITIVELY RESTORED BY AN 18TH CENTURY SPECIALIST ARCHITECT AND RENOVATED TO THE HIGHEST PERHAPS EVEN MUSEUMSTANDARDS. FIND HERE ALL THE DETAILS YOU LOVE. DEEP BEAMS, WIDE PLANK FLOORS, LARGE WOOD MANTLED FIREPLACES, ORIGINALDOORS AND WINDOWS; ALL IN EXCELLENT CONDITION. THE HENDRICK SMIT HOUSE BUILT C 1704 SITS SWEETLY SECLUDED AND TOTALLYPRIVATE BESIDE A SPRING FED POND SURROUNDED AND ENHANCED BY SOPHISTICATED LANDSCAPING. MLS20114203

Recession Fears Eased: Economy Grows at 2.5 Percent in Third Quarter

2011-10-30T06:00:00.000-07:00

By Jim Puzzanghera

(MCT)—The economy grew at an annual rate of 2.5 percent in the three months ending Sept. 30, the government reported, easing fears that the nation would fall into a second recession but still too slow a pace to cut significantly into the high unemployment rate.

“We’re inching our way forward,” says Diane Swonk, chief economist at Mesirow Financial. ...

Read More >

http://newsletter.rismedia.com/tracking/view/6455/59729/3652631/29191

Will the 30 Year Mortgage Disappear?

2011-10-28T06:29:00.000-07:00

The federal government is reconsidering their involvement in the home mortgage process. They plan to still ‘guarantee’ certain mortgages. However, they appear to be redefining what they consider a ‘qualified purchaser’. They are discussing stricter lending guidelines in four different areas:

1. The type of mortgage
2. The minimum down payment
3. The debt ratios of the buyer
4. The FICO score of the purchaser

Today, we want to look at #1.

It appears that there is at least conversation about eliminating the 30 year fixed rate mortgage which has been a staple in this country’s housing industry for some time. Some in government want to duplicate the mortgage process of other countries. In Canada, for example, they don’t even have 30 year fix rate mortgages available. The vast majority of Canadian home loans have a 25 year payout but the interest rate is renegotiated every five years. If rates go down, you will wind up with a lower rate. If rates go up, you end up paying a higher rate. If you want a fixed rate mortgage for 25 years you pay a rate approximately two percentage points higher than the going rate at the time of your closing.

Would the same happen in this country? Last week, Housing Wire quoted Janis Bowdler, senior policy analyst at the National Council of La Raza:

“Without some form of Fannie Mae and Freddie Mac, replacements to support these popular loans, many first time borrowers will be shut out.

“Without that guarantee lenders would not offer 30-year fixed-rate mortgages, at least not at rates the average person could afford. Yes, some would be available but not for the average family but for those with a large amount of inherited wealth they can put to a large down payment.”

Why Is This Important?
You probably want to set your housing expense at the lowest number possible for the longest time possible. This may be the appropriate time to lock-in your long term housing expense as three things seem possible, if not likely, in the future:

o Mortgage rates will increase from current historic lows
o The 30 year fixed rate mortgage may disappear
o Rents will return to historic norms of 3% annual increases

Bottom Line
If you want to purchase a home of your own but are waiting to see where prices will go, consider what you could be giving up while you wait

Long Term Benefits of Buying vs Renting

2011-10-22T07:25:00.000-07:00

Posted: 21 Oct 2011 04AM PDT

This could be YOU!!!!

Wall Street Journal & Forbes: It’s Time to Buy A Home

2011-10-18T07:17:00.000-07:00

From KCM BLOG Posted: 17 Oct 2011 04:00 AM

We believe very strongly that now is the time to buy a home. Some will say we are just saying this to create real estate transactions and commissions. Because of that, today we will quote what those outside the real estate profession are saying to the people who look to them for financial advice.

The Wall Street Journal
Last week, in an article entitled It’s Time to Buy That House, the WSJ told their subscribers:

“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

In an article two weeks ago, MarketWatch.com (the on-line blog for WSJ) told their readers:

“Now could be the best time in history to buy a home.”

Forbes.com
In a report to their subscribers, Capital Economics reported that:

“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

Why is this important? Last week, Forbes explained to their readers:

“If rents simply kept up with inflation at a 3.2% annual increase, a $1,500 rent payment would cost that renter nearly $900,000 over the next 30 years. The same $1,500 payment made to their mortgage would be only $540,000 (because the payments don’t increase with inflation).”

They went on to explain the advantages of homeownership during retirement:

“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement…

At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage. How much less would you have to save for retirement if you didn’t pay the mortgage?”

Bottom Line
When the iconic financial newspaper and the iconic financial magazine say that it now makes financial sense to purchase a house, perhaps it’s time to buy a home.

Homeownership: Still the American Dream

2011-09-13T05:40:00.000-07:00

Posted: 16 Aug 2011 04:00 AM PDT; from KCM Blog

Yesterday, Fannie Mae released their National Housing Survey for the second quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:

Most Important Reasons to Buy a Home
When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:
It means having a good place to raise children and provide them with a good education
You have a physical structure where you and your family feel safe
It allows you to have more space for your family
It gives you control of what you do with your living space (renovations and updates)

The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:
65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
56% believe that homeownership has more potential as an investment than any other traditional asset class.
69% think that now is a good time to buy a home (this number has increased in each of the last two quarters)

Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.
63% of renters have aspirations to someday own their own home
72% of renters think that owning is superior to renting
95% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 82% of renters see renting as a positive experience (17% see it as a negative experience)
96% of homeowners live in a single family residence while 46% of renters live in a multi-unit building

Bottom Line
Even in difficult times, Americans still realize the value of homeownership.

Homeownership: Why Wait?

2011-08-23T22:34:00.000-07:00

IRS's top 10 tax tips for home sellers

2011-08-19T04:29:00.000-07:00

DAILY REAL ESTATE NEWS
By Stephen Fishman
Inman News

From time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful.

Last week the agency released "Ten Tax Tips for Individuals Selling Their Home," (IRS Summertime Tax Tip 2011-15).

As a real estate agent or broker, it is not your job to give home sellers tax advice. Indeed, it is advisable not to, since you could end up getting sued if you give wrong advice.

Instead, refer sellers to this list of IRS tips. It's a good starting place for them to begin to understand this often complex area of tax law. You could even print it out and hand it to anyone who asks you about these issues.

Here are the IRS's top 10 tax tips for home sellers:

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. 

2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). 

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. 

4. If you can exclude all of the gain, you do not need to report the sale on your tax return. 

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses. 

6. You cannot deduct a loss from the sale of your main home. 

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude. 

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time. 

9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return. 

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

These tips can be found on the IRS website, www.irs.gov.

Why You Need a Good Negotiator in Today’s Market

2011-08-04T06:58:00.000-07:00

SINGLE WOMEN - A rising force in the housing market

2011-07-15T02:34:00.000-07:00

realtor.org

Unmarried women continue to make up a growing segment of home buyers and are buying homes in record numbers. Last year, they comprised 20 percent of all buyers according to the National Association of Realtors. Single men accounted for 12 percent.

The Joint Center for Housing Studies says the three reasons single women are purchasing homes are

o They have a strong desire to nest. (the top ranked reason)

o They want to relocate closer to a job or family.

o They need more space.

In capturing this growing segment of female buyers, builders are reflecting more female tastes in the design of houses. For example, security features, gourmet kitchens and maintenance free yards to appeal more to the single woman buyer.

Housing experts say that single women are purchasing homes at various stages in their lives. Some are recent college grads and plan to get married one day while others may be divorced or just want to set up roots in their own place.

Source "Singles Dive into Real Estate Market" SecondActMSN (July 12, 2011)

Despite Fears, Owning Home Retains Allure, Poll Shows

2011-07-01T01:17:00.000-07:00

My blog contains the current opinions and the information collected by those knowledgeable in the Real Estate Industry. They include the KCM Blog, the NY Times and others whom I respect.

However I share their views when they appear here.

The following is a compilation on this, the eve of our Fourth of July. It is up to us to be brave and move forward in these hard times.

New York Times

Owning a house remains central to Americans’ sense of well-being, even as many
doubt their home is a good investment in after a punishing recession.

Nearly nine in 10 Americans say homeownership is an important part of the
American dream, according to the latest New York Times/CBS News poll. And they
are keen on making sure it stays that way, for themselves and everyone else.

Support for helping people in financial distress over housing is higher than
support for helping those without a job for many months.

Read More:

http://www.nytimes.com/2011/06/30/business/30poll.html?emc=na

KCM Blog

Over the past few weeks and months, the media, so-called experts and most of our friends and relatives seemed to have almost soured on buying a home at this time. With fear of a fragile economy and high unemployment rates, who can argue with caution?

When the pervasive sentiment among even real estate and mortgage professionals is that home prices will continue to move downward and that mortgage interest rates don’t appear to be jumping significantly any time soon, the question remains… “Why would anyone that doesn’t have to buy now, buy now?”

One commenter to a previous blog post even went so far as to challenge the entire industry for promoting the “hurry up and buy” approach by asserting that buyers who listened to that advice six months ago are bemoaning taking that advice. That made me think: “Are people who bought six, eight, ten months ago kicking themselves because their home is worth less now than when they bought it?”

I had my team call some of our recent buyers and this is the feedback we received:

“Last year at this time, I was cooped up in a small apartment. Today, I am planning our Fourth of July celebration with 25 friends and family in our new home. Regrets? Are you kidding? We couldn’t be happier.”

“We are glad we now have a place of our own. We have a few friends looking to buy and we are helping to get them excited. Five years ago, we couldn’t afford it….now, we have our American Dream.”

“We were crammed into my in-laws’ home with no real privacy or room for the kids to just be kids. Now, they have a backyard to play in and they have settled in to their new school and made new friends. We couldn’t be happier.”

“Yeah, I realize, I might have been able to buy a home for $10,000 less if I waited, but there are two things to remember. One, what memories would we have missed if we weren’t here? And two, I am not selling my home now. Who cares what it is worth until we look to move again in 5-7 years? By then, we believe everything will be back to normal. Right now, we have a payment we can comfortable manage and we have a home to build roots and a foundation. I would urge everyone to do it, if they can.”

A home does remain a good long term investment. However, first and foremost, it really is a place for pride, peace, preference, and pleasure. We need to be reminded of the emotional component to buying a home may be more than simply the financial benefits. And from a financial perspective…who in your life is a better financial mentor? Donald Trump or Uncle Joe? Warren Buffet or your local newspaper writer who makes $30,000 a year? Remember, conventional wisdom breeds mediocre results (at best).

Let's do it. You have the POWER not only to overcome but to make this time a success for now and the future.

Have a good holiday! SUE

Are Short Sales Getting Easier?

2011-06-24T04:56:00.000-07:00

Short sales (where the lender agrees to accept less than the mortgage amount due on the sale of a property by a seller) have never been easy to complete. We are not suggesting that they now will be easy. However, there is mounting evidence that the banks are seriously favoring short sales over the option of foreclosure. Here is the evidence that has led us to this conclusion.

Banks Net More Money on a Short Sale
RealtyTrac’s latest data tells us that a short sale sells at approximately a 10% discount. A foreclosure sells at approximately a 35% discount. Obviously, the bank will net more by agreeing to short sale than they would by bringing the home to foreclosure.

Banks Are Beginning To Pay Short Sale ‘Bonuses’
In a recent article, HousingWire reported on a new program being instituted by CitiMortgage an affiliate of Citigroup:

CitiMortgage, is paying borrowers an average $12,000 after completing a short sale this year.

Justin Rand, the senior vice president of loss mitigation at the bank, said servicers are putting more of an emphasis on streamlining the process and pursuing a short sale ahead of foreclosure.

There is no better proof that some banks prefer a short sale than the fact that they are paying bonuses to homeowners who pick that option.

The Numbers Already Show an Increase in Short Sales
In the same article mentioned above, CitiMortgage said the percentage of troubled loans that now go to short sale route have quadrupled (4% to 16%) in the last two years.

And in a separate article, Bank of America reported they completed over 95,000 short sales in 2010 which more than doubles the number in 2009. BofA also reported that they completed more short sales than it sold previously foreclosed homes every month for the last year and a half. Last month (May), BofA completed roughly 9,000 short sales compared to 7,000 foreclosures sold.

Bottom Line
There are many advantages to a short sale over a foreclosure for the seller (they get to plan their move, there is less embarrassment with friends and neighbors, the negative impact on their future ability to purchase is much less severe). Luckily, it now seems that the banks also think it is in their best interest to pursue a short sale.

A Window of Opportunity for House Sellers

2011-06-24T04:35:00.000-07:00

There has been much confusion as to where housing prices are headed. We have actually blogged on the issue recently. Today, we want to give our opinion on this subject for the short term. We believe sellers have a window of opportunity for the next 90-120 days in which to sell their homes for maximum price. We believe there will be increased downward pressure on home prices later this year and the first half of 2012.

Why renewed downward pressure?
Any item’s price is determined by ‘supply and demand’. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year. This inventory has been delayed for the last several months because of faulty paperwork by the banks when they originally attempted foreclosure proceedings on these homes.

Celia Chen, of Moody’s Analytics explains:

“Foreclosures are weighing on the outlook for U.S. house prices, and the slow resolution of issues surrounding the so-called robo-signing scandal is keeping distressed homes off the market”.

The New York Times also recently reported on this issue. They looked at the delays in certain states. As an example, this is what they found in New York:

“Last September, before the documentation crisis, nearly 1,500 New Yorkers lost their houses as a result of foreclosure, according to LPS. The average over the last six months: 286. That is far lower than at any point since the recession began.”

Banks are now correcting these errors.
There is evidence that the banks are getting their documentation in order and about to again increase their foreclosure repossessions. Housing Wire reported:

“Since major lenders delayed foreclosures to fix a broken process late last year, the amount of filings declined, but in May signs emerged the effect might be wearing off.”

They went on to quote RealtyTrac CEO James Saccacio:

“…lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory… Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask.”

What will this mean to home prices?
As this inventory comes to market, it will impact prices in two ways:

It will provide discounted competition for buyers
It will impact the appraisal values of all homes in the area

Again, we quote Celia Chen:

“It is quite possible that house prices will pick up slightly in the second or third quarter of this year, as foreclosure sales remain depressed while nondistress sales pick up…By the fourth quarter of this year, however, the distress share will rise, sending the house price index back down…

House prices will founder until early next year and start rising in earnest at the end of 2012.”

Bottom Line
There is a window of opportunity currently which sellers should take advantage of. Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite.

Phoenicia Rise

2011-06-20T18:52:00.000-07:00

Charming rural hamlet, west of Woodstock, has plenty to offer city folk......

Phoenicia, a tiny Catskill Mountain hamlet set in a lush valley 120 miles northwest of Manhattan, has a frontier feel. This second-home rural outpost still has its rough edges despite the gradual influx of city bohemians who’ve altered the town, adding to a flourishing art, music and foodie scene.

Urbanites are at home at local favorites including Sweet Sue’s (a pancake mecca), Ricciardella’s Restaurant and Bar, former rock ’n’ roll photographer Laura Levine’s Mystery Spot Antiques, the ’40s-era Phoenicia Pharmacy and Shandaken Bake Shop.

Add to that some serious cultural offerings: the Shandaken Art Studio Tour, the monthly Arts Upstairs art shows, performances at the Shandaken Theatrical Society and the new annual Festival of the Voice, a music festival started in 2009 by three internationally acclaimed opera singers who live part time in Phoenicia.

But most visitors discover Phoenicia in the pursuit of outdoor pleasure. There’s skiing and winter sports at nearby Belleayre and Hunter mountains; rugged hiking, fly fishing and hunting; and summertime tubing and kayaking on Esopus Creek, which runs through the hamlet.

Some come to the Gates of Heaven Cemetery to pay homage to Arthur S. Flegenheimer, a k a Dutch Schultz, the real-life gangster featured in E.L. Doctorow’s novel “Billy Bathgate,” or to sniff around for the missing loot he allegedly buried near a stand of pine trees.

Many weekenders who stay at a local bed-and-breakfast or cabin rental end up falling in love with the place. Before they know it, they’ve got a second home, which sets in motion the desire to move there full time. Phoenicia, it seems, can intoxicate city folk, who then channel their inner John Muir.

Take David Ayers, and his wife, Ambrosia Parsley, an alternative pop/rock singer, who bought a 1920s farmhouse on an acre situated on a bluff above the Esopus — where “the creek takes a 90-degree turn and water rushes pleasantly,” Ayers says.

They purchased the property in 2007 for $370,000. Parsley revels in the quiet she needs for songwriting. And she and Ayers are struggling over whether to enroll their 5-year-old son in kindergarten upstate this September — which means making a fuller commitment to live in Phoenicia — or in the city.

Phoenicia is one of 12 hamlets that make up the town of Shandaken, known as the “Wild Heart of the Catskills’ High Peaks,” which sprawls 120 square miles. Realtors say nearly half of the 400 full-time residents in Phoenicia, on the eastern edge of town, are part-timers, splitting their weeks between the city and upstate.

Phoenicia is a mere 13 miles to the west of Woodstock but a world away when it comes to house prices, according to Ruth Gale Realty broker/owner Alfred Peavy, another city defector who came to Phoenicia part time and ended up staying. “At least 30 percent less for comparable properties,” Peavy says.

There are 18 properties for sale in the hamlet and in Woodland Valley, which is part of the same ZIP code. Most are priced for less than $200,000; they range from cabins and cottages on lonely wooded roads to a $175,000 two-bedroom, one-bathroom village house on half an acre. Larger houses like a $649,000 Contemporary on Woodland Valley Road are sprinkled into the mix.

There are some deeply divisive issues that keep full-time and part-time residents at town meetings until midnight. Much wrangling is being done over whether to switch from septics to sewers, and there are various opinions over a proposed luxury development at Belleayre.

But when residents meet at the post office or hardware store after a night of arguing, they are more inclined to talk about whether the fish are biting or what is growing in their vegetable garden.

In the end, Phoenicia is seen by second-home owners as an escape.

“Our house is a respite,” Ayers says. “Even if I’m busy with the house, it’s a departure from the things I do in the city. In the city, I work, I’m out several nights a week. Up here, I’m just here".

Common Sense

2011-06-17T07:06:00.000-07:00

Is The Economy Worse Than We Think?

We are presented with conflicting data almost daily about the “health” of the economy. And I am no economist, but I believe that I do possess some common sense.

So, here’s what I have been thinking.

It is obvious that millions of people are NOT paying their mortgage, rightly or wrongly, for their own reasons:

They can’t because of a job loss, death, disability or something outside of their control.
They won’t because it makes poor financial sense as their house is underwater.

My question is that with so many people NOT paying their mortgage, how can there be an economic recovery of any fashion? And then it hits me, people who used to spend thousands of dollars every month on their housing are spending that money now on food, clothing, vacations, gasoline, cars and alike. With the lag time between the moment of not making a mortgage payment to eviction being as long as two years, it seems logical to me that the reported economic numbers have to be inflated.

As foreclosures and short sales continue and people transition from non-paying homeowners to renters, millions of consumers will start having a housing expense again which will leave them less cash every month to buy other things. The result will be a slowing economy.

If you are a home seller, I think it means continued lower sales prices for at least the next 18 months. Price aggressively and get top dollar now!

If you are a home buyer, most of the recent data points to higher prices of everyday goods (largely because of higher energy prices), and that leads to inflation. Inflation is combated by the Federal Reserve with higher interest rates. So buy now, while the monthly carrying COST of a home is at near all time lows. Lower home prices sound good, but higher interest rates will nullify that benefit.

I have learned that “Common Sense Is Not Common Practice”. Today, I wanted to share some common sense conclusions, to push you to make it part of your practice.

House Prices Will Continue to Tumble

2011-06-17T06:55:00.000-07:00

We have written several blogs recently quoting numerous sources saying now is the time to buy a home. We agree that now is definitely the time to buy. This is NOT because we are calling the bottom for real estate PRICES. What we have said is that the COST of purchasing a home is probably near a bottom or has hit the bottom.

The difference is that COST is determined by two components: the price of the home and the expenses associated with mortgaging that home. As we have put forth in several posts, we believe that the expense of obtaining a mortgage will increase as the year goes on.

We also believe strongly that, in most parts of the country, prices will continue to soften. Here are the reasons why:

Existing Months’ Supply of Inventory Is Still Too High

A balanced market (where prices are stable) can handle 5-6 months worth of active inventory. Anything less than 5 months constitutes a seller’s market as there are not enough houses to meet buyer demand. This usually results in price appreciation. Anything more than 6 months constitutes a buyer’s market as there are not enough buyers for the number of houses on the market. This usually results in price depreciation.

Currently, as per the National Association of Realtors (NAR), there is a 9.2 month supply of inventory. This alone would put downward pressure on prices.

Distressed Property Inventory Is About to Enter Market

There are over over 4 million homes that have the potential to become a distressed property sale (foreclosure or short sale) over the next few years. A percentage of these properties are set to enter the market before year’s end. No one knows exactly how many will come to market in each region but the common belief is that the number will be substantial.

These properties will sell at a discount thereby attracting a portion of buyers in the market. After they close, they can also be used in an appraisal to help establish values of other homes which sell in the area. A short sale sells for approximately 90% of it’s non-distressed value. A foreclosure sells for approximately 65% of full value.

Bottom Line

The inventory of homes currently for sale added to the inventory of distressed properties about to come to market will far exceed demand for the next twelve months. When there is less demand for any item then there is supply of that item, prices fall. Check with a local real estate professional to see how this may impact the value of your home over the next year.

Why They Are Saying to Buy A Home Now

2011-06-15T07:10:00.000-07:00

Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home! Here are the four articles and a breakdown as to why the advice makes sense.

The Wall Street Journal: Why It’s Time to Buy

CBS Money Watch: Why the Time to Buy is Now

Forbes Magazine: 9 Reasons to Buy a House Now

National Public Radio: For Many, It’s Still a Good Time to Buy a Home

With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy. Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home. Here is some information to consider.

Interest Rates

Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.

Lending Standards
The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:

1 - The qualification process for loans will become more difficult
2 - The cost of a loan will increase

Bottom Line

There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).

How To Make An Offer that Will Be Accepted

2011-06-13T03:46:00.000-07:00

You have finally found the house of your dreams. It is priced right and is receiving a lot of attention from other buyers. You don’t want to miss this opportunity so you are ready to put in an offer with the real estate agent immediately. What can you do to guarantee your offer is the one accepted? Financially, offers can be broken down into three categories:

1.) An All-Cash Offer

Obviously, a cash purchaser is always favored by any seller. In today’s real estate market, an all-cash offer is even more enticing. Last month, one in four real estate transactions were impacted by a low appraisal. An all-cash buyer eliminates the need for the bank appraisal.

2.) A Non-Contingency Offer

If you don’t have the cash reserves for an all-cash purchase, the next best thing would be to make a non-contingency offer. To do this you should be already pre-approved for a mortgage and have your current house already in contract. This gives the seller the confidence that you are already a qualified buyer who will be able to complete the purchase.

3.) A Contingency Offer

Some buyers start the process of looking for a new home before their current home is sold. This could be a big mistake. If you find the home you were hoping for (perfect for your family AND priced right), it will be very difficult to get your offer accepted because you are not actually qualified to buy.

Asking a seller to wait for your home to sell is somewhat unreasonable in today’s environment. One of the reasons you would want the home is because the seller priced the home at a value to sell it NOW. They want to know it is sold when they accept an offer. They normally will not even entertain a contingency offer.

Bottom Line

Unless you have the ability to purchase with cash, the best thing to do is to be pre-approved for a mortgage and have your current house already in contract before looking for the home of your dreams. That guarantees you will get the home you love at a price that makes sense.

Thinking of buying a foreclosure or short sale.

2011-05-31T07:05:00.000-07:00

Roughly 40% of the homes for sale on today’s market are short sales and foreclosures! Distressed properties are well known for their value (a reputation which is sometimes accurate, and sometimes not), but they also have a reputation for causing buyers to become distressed, too!

Transactional snafus, last-minute surprises and long, drawn-out escrows that never close seem to be par for the course. Instead of avoiding these properties altogether, get educated about the most common dramas that go down in these deals, and how you can avoid falling victim.
1. Run-on (and on, and on) escrows. When you’re buying a home (or selling one, for that matter), time is absolutely of the essence. And buyers reasonably expect that the big time suck in real estate is in the house hunting process itself; seems like once you find a home you want to buy and the seller agrees to your price and terms, things should move pretty quickly, right?
Not so much, when it comes to some distressed property sales. I’ve heard tell of the occasional, swiftly-moving escrow on an REO (real estate owned – by the bank). But for the most part, these transactions take anywhere from a few days to a few weeks longer than “regular” sales, because of the extra signatures, supervisor-level approvals and even investor involvement required to seal the deal. Banks don’t have the same sense of urgency individual home sellers do, and it’s not uncommon for the people who need to sign on the dotted line to be on vacation or scattered across the country, adding days’ or weeks’ worth of time to the escrow.
And short sales are also an entirely different animal when it comes to escrow timelines. While a standard sale from an individual seller to an individual buyer might take 45 days from contract to closing, a short sale can take anywhere from 45 days to 6 or 8 months (!) to get the deal closed, after the seller has accepted the contract.
Avoid the drama by: expecting your escrow to run long, and being pleasantly surprised if it doesn’t. Expectation management is everything. Make sure you take these extended timelines into account when you’re working with your mortgage broker on the issue of when to lock your interest rate, and how long your rate locks will last. You might even need to plan on and/or set aside an allowance for the cost of extending your low interest rate, if rates are rising rapidly during the time you’re waiting for the deal to be done.
2. Bank won’t take lowball offer. If I had a dollar for every time I’ve received a question from an outraged reader to the effect that a buyer has had their short sale or REO offer rejected on grounds that it was too low, even though the bank has no other offers, I could buy a foreclosure myself (admittedly, it’d be one of those $150 foreclosures in some blighted town with tax liens and no plumbing, but still).
Banks owe their shareholders and investors a duty to get as much as they can for these properties. Just because you see it’s on the market and listed as a short sale or a foreclosure doesn’t mean they’re going to give it to you for a fraction of its worth. The bank’s goal is to get a purchase price as close as possible to the home’s fair market value, as determined by the recent sales prices of similar, nearby homes, with some adjustments made for the property’s condition. Fact is, many banks would rather see the listing agent reduce the price by a moderate amount, and wait to see what offers come in, than to accept an offer 30 percent below the asking price just because there are no other offers on the table.
Avoid the drama by: working with your agent to make a realistic offer, based on recent comparable sales in the neighborhood, not just on what you think you can get away with. You can waste a lot of time, spin a lot of wheels and lose out on a lot of properties making lowball offer after lowball offer on distressed homes. Sit down with your broker or agent, review the ‘comps’ and make a smart offer that reflects a good value for you, is within your budget and is not bizarrely out of the realm of the fair market value of the property.
3. Last minute postponements/cancellations. These transactions have an uncanny way of being delayed at the last minute – or never going through at all, through no fault of the wanna-be buyer. You signed docs yesterday, put your dog in the crate this morning and just hopped in the moving truck, only to get a text from your broker that the deal didn’t close because the escrow company which was selected by the bank flubbed the checkboxes on a single sheet of paper (it happens). Or, you’ve been in contract (with the seller) on a short sale for four months, and the bank refuses the sale entirely because the seller refuses to kick even $1 of their own cash into the deal, despite having a flush savings account.
Avoid the drama by: staying as flexible as possible with your moving plans as long as possible. Best practice is to plan on some overlap between the time you can be in your last place and your scheduled move-in date. Also, if you’re in contract on a short sale, you should take the point of view that you don’t have a firm deal until you get the bank’s approval of the transaction. So don’t even think about starting to make moving plans or paying for home inspections and appraisals until you know the bank has greenlit the deal and that the purchase price and terms they’ve approved work for both you and the seller.
4. The bank’s black box. Make an offer on a normal home and you’re likely to know what the outcome will be within a few hours or a few days, at the outside. If things take longer because the seller is out of town or some such, the listing agent tells you that, and you at least know what’s going on.
Make an offer on a bank-owned property or a short sale? It’s a crap shoot – could be days, but could also, easily, be weeks or months before you know what’s going on. And no amount of calling, pleading, prodding or nudging is likely to get you much information on how your offer or the seller’s short sale application is being handled or what (if any) progress is being made. And that “black box” into which your offer disappears at the benk level is very frustrating.
Avoid the drama by: continuing your house hunt until you have an answer back. Maniacally pestering the listing agent for answers or harrassing your buyer’s broker into spending hours on hold with the bank is highly unlikely to get you any insight. (With that said, it does make sense for your agent to check in regularly – sometimes even daily – with a short sale or REO listing agent to stay updated on any developments with the property and to make sure your offer/transaction stays in the front of their mind.)
Most of the angst in these situations arises when a buyer feels they passed on properties that would have really worked for them when they pinned their hopes on a distressed home. You can only control your efforts and activities, not the bank’s. So, consult with your own broker or agent about staying proactive in viewing and even pursuing other properties until you have a firm “yes” from the bank on your short sale or REO offer. Until that time, and usually for a short time after you get the bank’s approval, you have the right to back out of the transaction if you need to (make sure your broker briefs you on precisely when your right to rescind your offer or exercise contingencies – i.e., bail – will expire).
5. Double standards. In a “regular” equity sale with no bank involvement, both buyer and seller are obligated to meet various timelines. Seller has to provide disclosures by X date, open the property to inspections – with utilities on – by Y, and close and move out by Z. REO and short sale buyers, on the other hand, are often dismayed to find that even though the bank might take weeks or months to sign or handle its deliverables, the bank will insist that the buyer show up, sign or send a check quick-like.
Avoid the drama by: chalking it up to the (admittedly irritating) way things are – the price you pay to buy from the bank. Realize that working with the bank on the bank’s terms is unavoidable when you buy a distressed property. Then, go into the deal with realistic expectations – including the expectation that the bank will drag its feet, despite expecting you to keep every deadline – and you’ll be less frustrated, and less likely to make poor decisions out of frustration.
Also, make sure you do respond in a timely manner to the bank’s requests and your obligations under the contract. I’ve seen banks capitalize on buyer delays in returning signatures and removing contingencies to accept higher offers they received in the interim. Don’t lose your home on a technicality because you assume that the bank’s lackadaisacal timelines apply to you as well.
Author: Tara Nicholle Nelson

Even the Naysayers Are Saying To Buy Now!

2011-05-18T04:54:00.000-07:00

In their paper Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? two professors do not dispute the social benefits of homeownership:

“Home ownership is touted as the “American Dream”. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”

The second major finding says it all. According to both professors Beracha and Johnson, NOW IS THE TIME TO BUY!
“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:

“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line
Two researchers set out to prove that homeownership is not a good financial decision. After completing that research, they have determined that now is the time to buy. What more needs to be said?

Survey: A Home Is Still the Best Long Term Investment

2011-04-19T06:43:00.000-07:00

After a five-year swoon in home prices, many assume that housing may have lost its luster as an investment. However, a nationwide Pew Research Center survey shows this drop in values has done little to shake the confidence of the American public in the investment value of homeownership. According to the survey:

Fully eight-in-ten (81%) adults agree that buying a home is the best long-term investment a person can make.

What do homeowners who have lost value think?

Even 82% of homeowners who say their homes are worth less now than before the recession began agree that homeownership is the best long-term investment a person can make.

As for rental housing being the desired choice of habitation for many, the survey shows:

Renters are hardly immune to the allure of homeownership, even in the face of the five-year decline in prices. Asked if they rent out of choice or because they cannot afford to buy a home, just 24% say they rent out of choice. And when renters are asked if they would like to continue to rent or if they would prefer one day to buy a home, 81% say they would like to buy.

Bottom Line
With so many questioning people’s desire for homeownership, we should remember:

■81% of adults still believe that homeownership is the best long term investment available;
■82% of homeowners who have seen their house lose value still believe that homeownership is the best long term investment available and
■81% of renters hope to be home owners in the future.

My father told me .....

2011-04-08T03:24:00.000-07:00

that if something seems too good to be true it usually is.

I am frequently asked if buying a foreclosure is a good idea. I just read this article and thought I would share some of its most important points.

The procedure to follow when attracted by the price of a foreclosure.

Get it checked out by a pro. Perhaps the most essential point: Never go by looks alone as an indicator of whether a foreclosure is a good buy. A $2 million mansion may look gorgeous on the surface but might have toxic mold hiding beneath, which will require extremely pricey, lengthy repairs. On the other hand, a Mission fixer may look dilapidated but may have excellent bones and can be repaired at reasonable cost.

Don’t abandon common real-estate logic. Too many people, when shopping for a foreclosure, abandon their real-estate sense and focus on price alone. Remember, things like a sub-par location, poor light, terrible view, below-average school district, high local crime rate and other negatives might be part of the reason why a home went into foreclosure in the first place. Also, if there are plenty of other foreclosures nearby, that’s also a bad sign.

Skip – or, at least, very strongly rethink – the flip. “House-flipping,” i.e., buying at bargain-basement pricing, updating, then selling for much higher – is very 2006… and hasn’t exactly been hot since. Even if a house looks like an incredible flipping opportunity, beware of this temptation unless you are a pro, with incredible contractor connections.

Go over the budget. A fixer-upper means nothing if you can’t afford to fix it up – and that’s especially true for foreclosures, where those fixes can cost a pretty penny. Before buying, make sure you have an ample budget to do all the repairs needed,

Do your homework on lenders. Fewer people are getting financing for home-buying than they did before the recession, but good financing is luckily still available to many qualified buyers. Just make sure, as with regular home buying, that you enlist a reputable lender.

See it in person. Finally, never to buy a house without going in person to see it. Ever. Foreclosure or otherwise.

Dan Steward, the author, is president of, Pillar To Post Professional Home Inspections.

20% Down Payment Rule Starts April 2011

2011-03-31T20:40:00.000-07:00

The new QRM requirements exclude FHA mortgages. However, the National Association of Realtors believes that higher downpayment loan requirements will trickle down to FHA loans as well. With non-FHA mortgages putting less than 20% down will require a very nasty interest rate and other added fees. Unless something dramatically changes in the next 12 months we shall see the mortgage products requiring less than 20% down disappearing. The new QRW rules may become the new rule April 2011 and be in full effect April 2012.

5 Tax Tips, Tricks and Traps for Homeowners

2011-03-14T21:01:00.001-07:00

Ask a roomful of homeowners what's so great about owning versus renting, and you'll hear them holler in unison: "the tax deductions!" And it's true – homeowners who itemize their taxes are able to deduct 100% of their mortgage interest and property taxes from their income tax returns.

That means that if you're in a 28% tax bracket, Uncle Sam effectively subsidizes about a third of your borrowing costs or more, making your home more affordable or allowing you to buy a larger home than you could have otherwise. Also, big chunks of your closing costs are tax deductible, and hundreds of thousands of dollars of any profit (or capital gains) that you realize when you sell your home are exempt from income taxes.

At tax time, it's critical to know what you're entitled to, so you can claim it. So, here are five essential need-to-knows about home-related income tax tips to help you get the most tax-reducing bang out of your home-owning buck – and to avoid hefty home ownership-related tax traps.

1. You Have to Itemize Your Return to Claim Your Deductions

During the recent debate on Capitol Hill about whether the mortgage interest deduction should be eliminated (it won't be, not anytime soon), it came out that nearly 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes. If you own a home and otherwise have a fairly simple return, it might be tempting just to take the standard deduction – and if your mortgage, property taxes and income are low enough, the standard deduction might outweigh your homeowners' deductions. But you'll never know if you're losing out on the tax advantages of itemizing unless you try; before you grab a pen and start filling in that 1040-EZ grab those forms from your mortgage company and answer the questions on tax software like TurboTax, which will automatically do the math on whether itemizing or taking the standard deduction will result in the lowest tax bill – or the highest tax refund – for you.

2. Plan Ahead and Be Strategic When Taking a Home Office Deduction

According to the Small Business Administration, the average home office deduction is $3,686 – multiply that by your tax bracket – 15%, 20%, 30% or whatever it is, and that's what you'll save on your taxes by writing off your home office. Know, though, that the space you designate as your home office cannot be exempted from capital gains tax when you sell your home later. The $250,000 (single)/ $500,000 (married filing jointly) income tax exemption for capital gains is only good on your personal residence, after all – not including any space in your home you've claimed as your tax-advantaged office. If you foresee selling your home for much more than you bought it in the future, near or far, discuss this with your tax preparer to see if the few hundred bucks you save is worth the capital gains complication later.

3. Tax Relief for Loan Modifications, Short Sales and Foreclosures Is Only Around Through 2012

While the long-term housing outlook is beginning to look up, 2011 is projected to be the peak year for foreclosures during this market cycle. Distressed homeowners who are on the brink of a short sale, loan modification or foreclosure should be aware that normally, any mortgage balance that is wiped out by one of these outcomes is taxed as what the IRS calls Cancellation of Debt Income, or CODI.

Under the Mortgage Debt Forgiveness Relief Act of 2007, the IRS is currently not charging income taxes on CODI incurred through a loan mod, short sale or foreclosure on most primary residences through 2012. But right now, banks are taking many months, or even years, to work out mortgages in all of these ways; the average foreclosure in New York state right now occurs only after 22 months of missed mortgage payments. If you foresee any of these outcomes in your future, don't put things off. Do what you can to get to closure on your distressed home and loan, ASAP, while you won't have income taxes to add as the insult on top of your significant housing injury.

4. Project the Income Tax Consequences of a Refinance or Property Tax Appeal

Homeowners everywhere are working on applying for a lower property tax bill on the basis of the last few years' decline in their home's value. Those who have equity have flocked en masse to refinance their 7% home loans into the 4% to 5% rates of the last few months. These strategies offer some of the heftiest household savings out there for the corresponding investment in time and money they take. But here's a caveat for savvy homeowners who slash these costs: remember that property taxes and mortgage interest, the very costs you're minimizing, are also the basis for the major tax benefits of being a homeowner. So plan ahead for your income tax deductions to go down along with your taxes and interest.

5. Don't Forget Those Closing Costs

If you bought or refinanced your home in 2010, you may be so focused on your mortgage interest and property tax deductions that you forget all about your closing costs. Any origination fees or discount points that were paid to your mortgage lender at closing are tax deductible on your 2010 return, get this – even if the seller paid your closing costs. If you can't figure out exactly what you paid, look for your HUD-1 settlement statement, that legal sized paper full of line item credits and debits that you should have received from your escrow provider or title attorney at, or just after, closing. Can't find it? Drop your real estate agent or mortgage broker an email; they can usually get a copy to you quickly.

If your Goal is to Buy Low, Buy Now!

2011-03-06T19:36:00.000-08:00

Do you truly believe that now is a good time to buy a home?

2011-02-19T06:58:00.000-08:00

Buyers are nervous about purchasing right now. They want to know they are making an intelligent choice.

The Wall Street Journal last week stated:

“With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today.”

Donald Trump was just quoted saying:

“I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”

John Paulson, a multibillionaire hedge fund operator and the investment genius who made a killing betting against housing a few years ago, is now bullish on residential real estate market. He recently said:

“If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”

A recent Gallup Poll showed that 67% of American’s think that now is a ‘good time’ to buy a home. The Gallup Organization went on to say:

“Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.”

The iconic financial paper in this country, the country’s most famous real estate investor, the most successful prognosticator of the housing market and 2/3 of all Americans say now is the time to buy a home. .

A Question and maybe ......

2011-02-14T09:38:00.000-08:00

The First Question You Should Ask Your Listing Agent

What is the most important thing a seller should look for when hiring a real estate agent to sell their house? We are often asked this question. Is it the size of the company they are licensed with? Is it their marketing program? Their years experience in the business? Should you choose the agent who suggests the highest listing price?

There are many things that should be taken into consideration when hiring someone and giving them the responsibility for selling your home. In our opinion, the most important question you can ask a potential listing agent is a simple one:

Do you truly believe that now is a good time to buy a home?
Why should this matter when hiring someone to SELL your home? Buyers are nervous about purchasing right now. They want to know they are making an intelligent choice. We believe, especially in today’s market, you need to hire someone who realizes that this is one of the best times in American real estate history to buy. If an agent doesn’t believe that, how will they be able to convince a potential buyer to buy your home?

When interviewing a real estate professional, ask them to explain why purchasing a home makes sense today. They should be able to explain it simply and effectively. See how many of the following facts (which should be shared with every potential purchaser) the agent knows:

The Wall Street Journal last week stated:

“With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today.”

Donald Trump was just quoted saying:

“I’m pretty sure this is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”

John Paulson, a multibillionaire hedge fund operator and the investment genius who made a killing betting against housing a few years ago, is now bullish on residential real estate market. He recently said:

“If you don’t own a home, buy one. If you own one home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”

A recent Gallup Poll showed that 67% of American’s think that now is a ‘good time’ to buy a home. The Gallup Organization went on to say:

“Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys.”

The iconic financial paper in this country, the country’s most famous real estate investor, the most successful prognosticator of the housing market and 2/3 of all Americans say now is the time to buy a home. Shouldn’t your agent agree?

Bottom Line
Selling is nothing more than the transference of conviction. How can agents transfer that conviction if they themselves are not convinced? Find a listing agent who truly believes that someone should buy your home – TODAY! This is the single most important thing you should look for in a potential listing agent.

It's been a while...

2011-02-10T08:44:00.000-08:00

Hope you're keeping warm and staying out of snowdrifts. It is possible to enjoy this long, cold winter. Try hot chocolate or perhaps something stronger.

This too will pass.....however, back to other pressing matters.

I am always looking for ways to assist my clients, both current and potential ones. Knowledge is power and sometimes it is the ability to help yourself.

I hope this information helps those in need. If I can be of assistance please contact me.

Fannie Mae Launches WaysHome Interactive Video Tool to Help Struggling Homeowners
Print Article RISMEDIA, January 7, 2011—Fannie Mae recently launched WaysHome, a free, interactive multi-media tool designed to educate homeowners about their options to avoid foreclosure, empower them to make informed decisions and motivate them to take action and seek help in 2011. As part of Fannie Mae’s “Know Your Options” initiative to help struggling homeowners, the WaysHome video uses innovative technology to allow homeowners to put themselves in real-life situations, make informed choices and immediately see the outcomes of those actions.

“In 2011, millions of homes will be at imminent risk of foreclosure. As we enter a new year, the company is expanding its efforts to help struggling homeowners avoid foreclosure—WaysHome is an innovative tool to help achieve this goal,” said Jeff Hayward, Fannie Mae Senior Vice President. “Since the beginning of 2009, Fannie Mae has helped more than half a million families stay in their homes through modification or other solutions. With initiatives like WaysHome, we are determined to do everything possible to help homeowners.”

Unique to the other industry-wide foreclosure prevention efforts, WaysHome was developed by Fannie Mae to educate distressed homeowners on the short- and long-term impact of their decisions. Through video reenactment, WaysHome allows homeowners to experience scenarios that address a range of options for avoiding foreclosure that include repayment plans, forbearances, modifications, deeds-in-lieu, and short sales.

For more information, visit http://www.KnowYourOptions.com and http://www.fanniemae.com.

Hudson Valley Living

2010-11-16T21:05:00.000-08:00

Comfortable New Paltz Home

2010-11-16T20:02:00.001-08:00

10 Tips for Reducing Waste at Home

2010-11-16T15:07:00.001-08:00

While America Recycles Day (November 15) is over, many homeowners are aware that they can make smarter decisions at home to help reduce waste while at the same time increasing comfort and safety. Now is the perfect time for homeowners to learn how to protect the environment as they care for their homes. CertainTeed Corporation, a provider of earth-friendly building solutions offers the following tips to help homeowners cut back on waste in their homes while also helping to protect our planet.

Let your fingers do the recycling: Phone books are distributed in most communities two times per year. You don’t want to throw them in the trash, but you don’t want them piling up in your closet. To find a location near you to drop-off phone books (and most other materials) visit http://www.Earth911.com. Recycled phone books are used in roofing materials, insulation materials, grocery bags and paper towels.

Find out what trash your community accepts: Call your local recycling center to determine what types of materials they accept, if they do curbside pick-up and if they provide recycling bins. This is important for everyday recycling, but can also be useful when undertaking home improvement projects involving materials you don’t regularly use.

Hazardous products require special care: Paint cans and aerosol cans are recyclable but are considered hazardous waste and need to be separated from other metals. Leave labels on all cans so recyclers know what was in them and can determine how to properly dispose of them. Try to return the lid along with empty paint cans.

Don’t throw away your batteries: Recycle worn-out rechargeable batteries like those used in cell phones, computers, or power tools.

Almost anything can be recycled: Many people think they can only recycle cans, bottles or newspapers, but you can actually recycle most anything. This includes carpets, towels, rubber, building materials, cardboard boxes, plastic food containers and more. Before you toss something into the trash, think carefully about whether it could be recycled.

Wall materials can contain recycled materials: What’s in your walls can also make an environmental impact. Today’s drywall, or gypsum that makes up your actual walls can contain recycled materials. Find out what your contractor is putting in your home.

Insulation keeps you warm and the earth green: The U.S. Environmental Protection Agency (EPA) estimates a homeowner can save up to 20% on heating and cooling costs by sealing and insulating around the home. Don’t forget to insulate exposed pipes and faucets in the outer walls, crawl spaces and garage.

Make your siding work for you: Look for fiber cement siding that is made from recycled materials.

From roof to road: If you need to get a new roof, make sure your contractor is properly disposing of the old shingles.

Take advantage of the $1,500 tax credit: The American Recovery and Reinvestment Act entitles homeowners to an energy tax credit of up to $1,500 on energy-efficient building materials like insulation and roofing. Act now because the tax credit expires on December 31, 2010.

For more information, visit www.certainteed.com. RISMEDIA, November 17, 2010

Things to do in the Hudson Valley this coming Saturday:

2010-11-07T12:05:00.000-08:00

Sat, 11/13/2010 - 11:00am - 5:00pm

FIRST ANNUAL HUDSON
VALLEY CIDER FESTIVAL

Stone Ridge Orchard presents their first annual Hudson Valley Cider Festival featuring seasonal artisanal cider tastings, wood-fired Provencale-oven baking demonstrations, local bread, wine and cheese, a hard cider making workshop with Elizabeth Ryan, and live music and entertainment.

Sat, 11/13/2010 - 10:00am - 4:00pm

JOHN A COLEMAN CATHOLIC HS ANNUAL HOLIDAY

AND CRAFT FAIR

Looking for that special Christmas gift? You'll find it at this arts and crafts show and sale. Handcrafted items, holiday decorations, fine art and more. $3/Adults; $2?Students adn seniors; Children under 12 free. John A. Coleman Catholic HS, 430 Hurley Ave., Hurley. Take Exit 19 off the NYS Thruway to Washinton Avenue to a right onto Hurley Avenue. School is 1 mile from intersection on left. For more information: 845-338-2750

Sat, 11/13/2010 - 10:00am - 3:00pm

MOHONK PRESERVE SINGLES AND SOCIABLES

SPLIT ROCK

Singles and Sociables outings welcome all adult hikers, single and non-single, aged 18 and above. No reservations required. Meet at the Mohonk Preserve Visitor Center, Rt. 44-55 New Paltz NY 12561. This is a moderate, 7-mile hike, led by Joe Cardone (845-457-7073). New hikers are strongly encouraged to contact the leader prior to the hike for information on hike levels, what to bring, and other information. Hike leaders determine whether or not to allow pets. This program is free to Mohonk Preserve members and $10 for non-members (includes a day pass which allows hiking access to Preserve lands for a full day, sunrise to sunset, and can be credited for up to two weeks towards a membership). For more information visit: www.mohonkpreserve.org

Sat, 11/13/2010 - 8:00pm - 10:00pm

SUNY NEW PALTZ PRESENTS: NOISES OFF

at MCKENNA THEATER

The Department of Theatre Arts at the State University of New York at New Paltz continues its Mainstage season with the zany Noises Off, directed by Nancy Saklad. Noises Off is an amusingly unusual three-act comedy about an unlikely cast of characters who play roles in a play within a play. The characters belong to an acting company putting on a comedy suggestively entitled Nothing On. As the plot unfolds, the characters become inextricably intertwined in one another's lives creating havoc for all involved.

Sat, 11/13/2010 - 9:00pm - 11:59pm

LIVE MUSIC AT MARKET MARKET CAFE

in Rosendale

Live music with The Anders Parker Cloud Badge.

Market Market Café, 1 Madeline Lane, Rosendale NY 12472;

www.marketmarketcafe.com

845.658.3164

Winterize now..piece of mind always.

2010-10-29T23:14:00.000-07:00

Prepare Your Home for Winter

Now that summer is a distant memory, and the fall temperatures are continuing to get cooler, homeowners across the country are thinking ahead and preparing their homes for the Winter weather that will be here before we know it.

Check for and seal foundation cracks
Look for any cracks or openings in your foundation, exterior walls and around pipes, and be sure to seal them with exterior caulk or foam insulation. Clear away leaves and other debris from the foundation to make sure you haven’t overlooked any cracks. Check the roof for problems such as broken tiles and shingles that could become a larger issue when snow comes. Clean out gutters and downspouts and make sure they’re working properly.

Inspect the chimney and fireplace
For safety reasons, you should examine your chimney each fall. Make sure it is clear of any bird or animal nests. Check to see that the flue opens and closes fully and that it can be locked in either position. You should also check to see if the chimney drafts properly by lighting a small fire and watching the smoke rise up and out. If you find that there is an obstruction, clean your chimney using special rods and brushes designed for this purpose. If your fireplace leaks air, you can cut a piece of fiberglass insulation and place it behind the fireplace doors. Just remember to remove it before building a fire. Additionally, check the brick in the fireplace for any open mortar joints. Have any open joints repaired immediately as fire can spread through open joints into the wall.

Install storm windows
Windows are a common culprit of wintertime heat loss. If you have single-pane windows, remove screens and install double- or triple-pane storm windows before winter comes. Be sure to pull down both the top and bottom storm windows to help prevent heat loss.

Check the furnace
Check the condition of your furnace in late fall. Turn off the electricity and gas, and then use a wet/dry vacuum to clean the entire burner area. Clean the thermocouple with a cloth and use a precision duster with compressed air to clean the pilot light. Replace any disposable air filters and clean washable ones with mild detergent and water. Clean fan blades with a brush and lubricate the fan shaft. If the motor has oiling ports, apply a few drops of heavy-duty electric motor oil. Be sure not to over-oil your furnace and never use automotive motor oil or 3-in-1 household oil.

Winterize your water heater
Because water heaters can be inefficient, it is important to insulate your hot water tank with a water heater blanket. Also, check the water temperature of your water heater. A good energy-efficient temperature is around 120 degrees. It's never a good idea to turn off your water heater completely if you will be away from home for an extended period of time. Instead, turn the water heater's thermostat to the "vacation" setting or a similar low setting. The pilot light will remain lit, maintaining a slightly warm water temperature within the unit until you return.

Insulate exposed piping
Using a pipe insulation kit to add insulation around accessible water pipes will save you energy, lower your heating bills and prevent pipes from freezing during the winter months. Look for water pipes that pass through spaces where cold drafts are likely, such as crawl spaces, garages and attics. Check the pipe leading directly from the hot water heater and don't ignore hot water lines. Though slower to freeze, they are more likely to burst than cold-water lines. Make sure the pipe insulation kit you choose includes adhesive tape or contact cement for sealing. The most common pipe insulation is a tubular foam sleeve slit lengthwise. Tubes without slits are designed for installation over new piping, but they can easily be slit with a sharp utility knife. Open the pipe insulation along the slit, press it onto the pipe, and seal it with adhesive tape or contact cement to prevent summertime condensation.

Additional ways to warm your home
There are more easy ways to make and keep your home warm in the winter. By simply reversing the spin of your ceiling fans and setting them on low speed, you'll send warm air down into your living space. In winter, your fans should spin in a counter-clockwise direction. Most fans have a small switch to set the spin direction. If yours doesn't, you may want to upgrade to a new energy-efficient ceiling fan. Using your ceiling fans to circulate warm air in the winter saves money and keeps your furnace from having to work as hard.

Keeping blinds and curtains open on sunny days will naturally warm up any room. Closing them at night will help keep the heat in and the chill out. Save costs and concentrate warmth in your home by only heating rooms you use. If your heating system has vents, close the ones in unused areas of your home. Use a humidifier—just adding moisture to the air will make your home feel warmer. And as an added bonus, humidifiers also cut down on carpet shocks from dry static electricity.

By Paige Tepping

10 Low-Cost Tips to Improve Your Home's Appeal

2010-09-09T10:47:00.000-07:00

When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit.

Tip #1: Refresh the exterior

First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include: -Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway. -Painting siding, trim and shutters and lamp and mailbox posts. -Pressure washing vinyl siding, roofs, walkways and the driveway. -Washing windows.

Tip #2: Spruce up the lawn and landscape

Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include: -Mowing and edging the lawn. -Seeding, fertilizing and weeding the lawn. -Keeping up with regular lawn maintenance by frequent watering.-Trimming and/or removing overgrown trees, shrubs and hedges. -Weeding and mulching plant beds. -Planting colorful seasonal flowers in existing plant beds. -Removing trash, especially along fences and underneath hedges. -Sweeping and weeding the street curb along your property.

Tip #3: Create an inviting entrance

The front door to your home should invite buyers to enter. The best ways to improve your entry include: -Painting the front door in a glossy, cheerful color that complements the exterior. -Cleaning, polishing and/or replacing the door knocker, locks and handles. -Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers. -Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.

Tip #4: Reduce clutter and furniture

A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include: -Holding a garage sale to prepare for your move, getting rid of unnecessary items.-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements. -Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier. -Removing any visibly damaged furniture. -Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.-De-personalize rooms as much as you can.

Tip #5: Clean, clean, clean

The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include: -Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances. -Cleaning carpets, area rugs and draperies. -Cleaning inside the refrigerator, the stove and all cabinets. -Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout. -Eliminating house odors, especially if you have pets. -Considering air fresheners or potpourri.

Tip #6: Make minor repairs

The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include: -Repairing ceilings and wall cracks. -Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile. -Caulking and grouting tubs, showers, sinks and tile. -Adding fresh paint to ceilings, walls, trim, doors and cabinets. -Tightening door handles, drawer pulls, light switches and electrical plates. -Lubricating door hinges and locks.

Tip #7: Showcase the kitchen

The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include: -Replacing cabinet doors and hardware. -Installing under-cabinet lighting. -Replacing light fixtures. -Replacing outdated shelving with pantry and cabinet organizers to maximize space. -Baking cookies or cupcakes for a showing, to create a homey smell.

Tip #8: Stage furniture

Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include: -Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups. -Creating a reading corner in the master bedroom. -Clearing an empty room to set up a reading space. -Turning an awkward space into a home office. -Setting the dining room table with your best china.-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.

Tip #9: Light up the house

Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try: -Opening shades and drapes to let the sunshine warm and brighten rooms. -Installing brighter light bulbs in rooms that tend to be dark. -Adding additional lamps for ambient lighting. -Turning on all the lights for a showing.

Tip #10: Add fresh touches

You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include: -Placing fresh floral arrangements in the entry and master bedroom. -Placing bowls of bright-colored fruit in the family room and the kitchen. -Filling an empty corner with a potted leafy plant. -Setting new hand soap in the bathrooms.-Displaying fresh towels near sinks.
By Paige Tepping

Simple Tips to Update Your Home and Create a Relaxing Sanctuary

2010-09-03T12:38:00.001-07:00

Some rooms scream “Help!” Others say nothing, and that’s a problem, too. Take the typical bedroom. Michael Payne has seen thousands. “The bedroom tends to get forgotten—you spend all your money elsewhere in the house,” said Payne, a celebrity interior designer and makeover specialist best known for his “Designing For The Sexes” series on HGTV. “You end up with a totally forgettable room that you don’t want your best friend to see.”

Helping people find indoor harmony—particularly at affordable prices—is a common challenge for designers. Instead of moving, homeowners are staying put and trying to make the most of their current house.

“This has been the busiest year I’ve ever had,” said Folsom, Calif., interior designer Jennifer FaGalde. “Absolutely, a lot of people are wanting to stay put and put money into their own home instead of moving. They’re creating a nest within their own space,” she added. “People are staying home more now than they did five, 10 years ago. They want a sanctuary where they can relax.”

But where should you start if you are looking to refurbish your home?

Paint, lighting and flooring are three of the easiest, quickest and least expensive ways to update a room, say the experts.

Arizona Tile’s in-house designer Emitt Isaacks advises people to start makeovers with a very basic question: Who lives in your home?

“A retired couple is very different than a family with young kids. They have different needs and considerations,” he said. “Don’t forget dogs and cats either, as pets influence design decisions, too. Then, start thinking about style—modern, traditional, old-school—and color.”

FaGalde points to two recent makeovers she completed in Sacramento, Calif. A typical home in the Pocket area needed a radical update for its kitchen and three bathrooms. A Land Park house started with a termite invasion and ended up with a remodeled family/living/dining room.

“The Pocket house was a real challenge,” she said. “The bathrooms all had walls separating the toilet area. They had a closed-in feeling, the style of homes 25 years ago. And the rooms were so dark.”

The answer: “We knocked down walls, gutted to zero and started from scratch,” she said. “We added new lighting. It made a huge difference.”

In the aftermath of fixing termite damage, the Land Park homeowners started with paint and flooring, but then decided to update with new window coverings, crown molding and fireplace tile.

“It really transformed the space,” FaGalde said.

Lighting is key, “especially in older homes,” she added. “Lighting enhances your space and shows off the investment you put into it. You spend money on paint and flooring, you want to be able to see it.”

Quick bedroom makeover:
Makeover specialist Michael Payne offers these suggestions:
1. Less is more. An uncluttered bedroom makes for a more restful space. Make use of the area under the bed for storage.
2. Remember: It’s a bedroom. The bed should be the dominant feature. Other furnishings are secondary, but look better if they match in style, wood and stain.
3. Start with the right bedspread or comforter. Use that to pick up colors for paint and carpeting. The result will be more harmonious.

(c) 2010, The Sacramento Bee (Sacramento, Calif.)

The Renovation Diaries: Kitchen Tile

2010-08-12T05:34:00.000-07:00

Finally made it to the marble and stone showroom of Jason Wright in Accord. Luckily I had loved the soapstone a colleague had used in her kitchen so went quickly through the dizzying variety of stones that Jason had in his yard and confirmed that I wanted a black soapstone that has a wonderful natural vein in it. He took the front of one of my kitchen drawers to try different stains to achieve the creamy stain I have requested. I want it to be light and to be able to see the grain of the wood through the stain. I am keeping my cabinetry , but removing the upper level doors and replacing them with longer doors with plain glass inserts.

I chose my appliances from B. Fieden in Kingston. Again huge showroom with lots of high end appliances on the floor. I decided on a Lieberher Refrigerator, a Bosch dishwasher, a Wolf electric cooktop and a set of Thermidor wall ovens. The wall oven unit includes a microwave/convection oven, a regular oven and a warming drawer.

10 Important Tips to Successful Real Estate Investing

2010-07-29T04:21:00.000-07:00

By Paige Tepping ~RISMEDIA

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare property values and rents
Financial statistics only go so far; the best measure of a property's market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a must.

2. Pay attention to tax laws
Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize in something you know
Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know the costs before getting started
Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know where your tenants are coming from
If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants' security deposits at closing.

6. Assess the tax situation
Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate insurance coverage
If a seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm utility costs
Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent.

9. Consult your accountant
Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect
Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

Renovation Jitters

2010-07-12T11:36:00.000-07:00

I am just about to start my first major kitchen renovation and feel all the trepidation of a soldier going into battle. It should work out well. I am a realtor and see kitchens of every size and description every day. I have been researching appliances for six months and chosen a well recommended contractor. It is summer and I have an empty nest so going without a kitchen is less onerous than it might have been. I thought I would share the process with you and begin with these thoughts below and some before pictures. I haven't yet chosen the stone for my countertops. I am looking at stone today so I'll share pictures of that too.The explosion of remodeling shows on TV and makeover spreads in magazines has whetted America's appetite for glamorous rooms brimming with the latest furnishings, appliances and color schemes.

Kitchen remodels are among the most popular, according to a report in the just-published August issue of Consumer Reports and online at consumer reports.org. And the economic slowdown means there are outstanding deals on everything from cook tops to counter tops. It also means kitchen designers and building contractors are eager for work and willing to negotiate.

But bargain prices and good looks aren't everything, said Celia Kupersmzid Lehrman, Consumer Reports' deputy home editor.

"When remodeling a kitchen, functionality is every bit as important as style. Fortunately there are many products that look good and work well," she said.

The design of your kitchen is every bit as important as what goes into it, said Jim Spence of Spence & Vaughn Fine Kitchen and Bath in Maitland, Fla.

The most functional design is based on the "work triangle" — the relationship between the prep area, the cooking area and the sink, he said. Ideally, the distance between them should never be less than four feet or more than nine feet. Of the three areas, the most-used is the sink.

When planning a remodel, determining your budget is one of the first steps. The National Kitchen & Bath Association calculates the average kitchen remodel costs between 10 percent and 20 percent of the home's value. But obviously, the extent of the makeover determines its cost. In its latest issue, Consumer Reports takes top-performing products and creates three design schemes: a do-it-yourself makeover for $5,000; a plan that costs $15,000 (the average spent on a kitchen remodel); and a full-scale renovation for $50,000.

Determining your priorities is another key step, said Phil Johnson, a partner at Spence & Vaughn and a certified kitchen designer.

"Do you love to cook? If so, now might be the time to consider professional-style appliances," he said. "Do you have a large family? Consider how best to accommodate them in your new space. Think about the things you love in your old kitchen — and the things you dislike."

In addition, Johnson recommends the following steps for a successful remodel:

—Do your homework. Watch TV remodeling programs, clip appealing pictures and articles from magazines, attend remodeling seminars, visit home shows and parades of homes. Consult with a kitchen designer who is a member of the NKBA, who has the training and experience to avoid many of the things that can go wrong with a remodeling project.

—Visit a showroom. Examine the options in cabinets, counter tops, appliances, flooring, plumbing and lighting. Decide what you want — and can afford.

—Schedule a home visit. The designer/installer need to measure the kitchen and adjacent rooms, and make a note of existing walls, doors and windows, electrical supplies, ceiling height, attic access, type of wall construction, plumbing details, etc.

—Finalize the project. The design is refined, construction plans are completed, appliances and supplies are ordered — and the initial deposit is paid.

—Survive the dust, noise and workers. With proper supervision, the disruption can be kept to a minimum. Make sure materials are ordered and on the way before beginning the tear-out. Clear a space in the garage for workers' tools and supplies and items removed from the old kitchen. And communicate regularly with the designer/installer.

The August issue of Consumer Reports identifies these four rules for a successful kitchen remodel:

Don't rush. There are many kitchen products that combine value, performance and good looks. Take time to meet with professionals, browse the Internet and visit showrooms and home centers. Haste can be costly. Changing your mind after the project is started typically adds about $1,500 to the cost of a kitchen project.

Size matters. In addition to being expensive, oversized kitchens can be exhausting to work in and keep tidy. A more compact kitchen often functions better. The National Kitchen & Bath Association website, nkba.org, provides guidelines for optimal space between appliances, cabinets and islands.

Beware of budget busters. Leave a 10 percent to 15 percent cushion for surprises, such as unexpected structural repairs. Avoid settling for a cheap option, thinking someday you will replace it with something you really want. Chances are that will never happen.

Get it in writing. When using a professional for a remodel, the written contract should list each phase of the project; every product, including the model number; and copies of each contractor's license, and workers compensation and liability insurance to confirm they are current. Call references and, if possible, visit them.

Tricks to Keep Your House Cool this Summer

2010-07-09T07:55:00.000-07:00

As the temperatures continue to rise this summer, so does the cost of keeping your home cool. While homeowners across the country come to depend on air conditioners to keep the temperature down during the warm summer months, there are other options that will keep you cool while keeping your energy bill low.

Fans and ceiling fans:
-If you’re looking for ways to beat the heat, a ceiling fan can be a great investment for your home. This one appliance can make a room feel 6 or 7 degrees cooler, and even the most power-hungry fan costs less than $10 a month to use if you keep it on for 12 hours a day. Good fans make it possible for you to raise your thermostat setting and save on air-conditioning costs. Fans don’t use much energy, but when air is circulating, it feels much cooler. Ceiling fans are best, but a good portable fan can be very effective as well.

-You should remember that even mild air movement of 1 mph can make you feel three or four degrees cooler. Also, make sure your ceiling fan is turned for summer – you should feel the air blown downward.

Shades, drapes or blinds:
-Install white window shades, drapes or blinds to reflect heat away from the house. Close blinds, shades and draperies facing the sun (east-facing windows in the morning and west-facing windows in the afternoon) to keep the sun’s heat out and help fans or air conditioners cool more efficiently. Always remember that the best way to keep your home cool is to keep the heat out.

Internal Heat:
-The most common sources of internal heat gain are; appliances, electronic devices and lighting. Be aware of devices in your home that are generating heat and if you have air conditioning, use it wisely.

Don’t put lamps, televisions or other heat-generating appliances next to your air-conditioning thermostat, because the heat from these appliances will cause the air conditioner to run longer. The heat they produce will make the thermostat think your house is warmer than it really is, and your system will run harder than it needs to.

-Unless you absolutely need them, turn off incandescent lights and heat-generating appliances. Replace incandescent bulbs with compact fluorescents; they produce the same light but use a fifth the energy and heat.

-You should also try to avoid heat-generating activities such as cooking on hot days or during the hottest part of the day. If you are cooking, use your range fan to vent the hot air out of your house. By reducing the amount of heat in your home, you will use less energy to cool it.

Plants:
-Plant trees or shrubs to shade air conditioning units, but not block the airflow. A unit operating in the shade uses less electricity. Deciduous trees planted on the south and west sides will keep your house cool in the summer and allow the sunlight to warm the house during the winter.

Roof and Walls:
-Paint your roof white – If you’ve got a flat roof, paint it with a specially formulated reflective paint or just paint it white. The reflective effect will help to keep the rooms under the flat roof much cooler.

Other things to remember:
-Humidity makes room air feel warmer, so reduce indoor humidity. Minimize mid-day washing and drying clothes, showering and cooking. When you must do these things, turn on ventilating fans to help extract warm, moist air.

-Avoid landscaping with lots of unshaded rock, cement, or asphalt on the south or west sides of your home because it increases the temperature around the house and radiates heat to the house after the sun has set.

-If the attic isn’t already insulated or is under-insulated, insulate it now. Upgrading from 3 inches to 12 inches can cut cooling costs by 10%

Summer Remodeling Ideas

2010-06-26T06:02:00.000-07:00

Other than vacations, summer is the time of the year most popular for home improvement.The long days and warm, sunny weather make a great time to work on repairs and renovations without much of the hassles and delays that rain and other elements bring. For this reason and more, a good number of homeowners undertake home improvement projects during the
summer.

Eugene Makeev, a home improvement expert offers the following tips for homeowners who are looking to spruce their homes up this summer.

Patios and Decks
What better way to enjoy the warm days than by creating an outdoor living space for the family to enjoy. Decks and patios are among the most popular summer remodeling ideas. There are various factors to take into consideration when deciding whether a patio or deck is the most appropriate project to undertake. Such factors include soil condition and consistency, site terrain, use, capacity, privacy as well as the cost and maintenance you are willing to put up with.

Home Maintenance
Throughout the seasons, your home has taken good care of you and your family and now is the best time to give back. Go through your property to evaluate and create a checklist on areas that need mending or replacement. This list is a crucial preparation before calling a contractor or handyman for maintenance and repair services.

Some common maintenance and repair include:
-Waterproof the basement
-Re-caulk and replace weatherstrip
-Clean and seal wooden decks
-Trim bushes and trees
-Re-align downspouts and gutters
-Repair roof
-Clean the pool
-Mend the fence
-Seal cracks along driveways, foundation, walkways, etc.
-Maintenance of HVAC systems

Energy Efficient Renovation
When it comes to summer remodeling, there's no better way to invest your hard-earned dollars than by making your home energy efficient. An energy efficient summer remodel is truly a worthwhile endeavor as it will result in years of savings on your energy bills.

Some of the common items you can buy and integrate into your energy efficient renovation include:
-Insulation systems and materials
-Roofs that resist heat gain
-Biomass burning stoves
-Energy-efficient windows
-HVAC systems with the highest efficiency tier
-Solar panels
-Fuel cells
-Geothermal heat pumps
-Wind energy systems

Page Tepping RISMEDIA, June 16, 2010

US Senate Approves Extension Of Home Buyer Tax Credit

2010-06-20T07:31:00.000-07:00

The U.S. Senate voted Wednesday to approve an extension of a tax credit for home buyers as lawmakers continue to debate a wide- ranging bill of tax policy extensions and federal program renewals. The measure was backed by Senate Majority Leader Harry Reid (D., Nev.), whose state has been among the hardest hit by the housing crisis over the last three years. Reid, who is seeking his fifth term in November, is facing a tough re-election fight.

The amendment was added to a $140 billion tax bill that renews a series of popular tax credits targeted at businesses and individuals, continues federal programs including jobless benefits and a flood insurance program, boosts fiscal aid to states and averts reductions in payments to doctors who treat Medicare patients. The vote to add the amendment was 60-37.

The home buyers credit was agreed to last year as a means to kick start the moribund U.S. housing market, which was facing both historic foreclosure levels and a glut of unsold properties. While the market has shown signs of stabilizing, it is still grim in some of the worst affected parts of the country.

The measure provided up to $8,000 for first-time home buyers and a maximum of $ 6,500 for repeat purchasers as long as the property they are buying is to be their primary residence. Under the amendment, house purchase contracts would still have had to be entered into by April 30 in order to qualify for the tax rebates. But buyers would now be given until Sept. 30 to close the purchase.

Bruce Katz, Pres.
Centennial Mortgage Corp.
Web: www.CMloans.com

Staging

2010-04-23T22:28:00.000-07:00