Real Estate Information

Many older homes in the Rockland and Orange Counties of the lower Hudson Valley are situated in well-established neighborhoods offering excellent schools, shopping, employment and other amenities. These homes are also often priced very competitively to reflect their need for repair and modernization. Yet many of these homes aren’t selling.

 Why?

Unfortunately, most prospective buyers are not aware of how to cost-effectively finance both the purchase of the home plus the renovation work required. 

• What would it take you to take advantage of these great opportunities?
   
• Would you be interested in learning how you could enjoy a new home that reflects your lifestyle and personal tastes without paying a premium for a home in “perfect” condition?
   
• Would you pass up buying a great home in a great location because you didn’t know how to finance the repairs and improvements it might need?
   
• Would you consider buying a fixer upper allowing you to earn some “sweat equity” by completing repairs and remodeling to increase its value?
   
• Would you like to buy an older home, and then make improvements to increase its energy efficiency and lower your costs of ownership?
   
• Would you enjoy an opportunity to own more home for your money? Or a home that better suits the needs of your family and your personal style?

The answer to most of these questions comes in the form of renovation financing.

Anyone who plans to purchase a primary residence, vacation home or even an investment property in need of fixing up is eligible to apply.   If you qualify the loan will cover all the costs of minor and most major repairs, even additions and renovations plus the purchase price. All you need is the required down payment and some imagination!

Exciting isn’t it?

For a list of homes in the Rockland or Orange County areas of the Lower Hudson Valley that are in need of minor to major repairs and are priced well contact Vanessa Saunders & The V Team.

For a free copy of The Renovation Financing Guide and information on qualifying for a renovation loan, contact Renovation Specialist Anthony Nicholas at Wells Fargo Home Mortgage.

The real estate business was tough in 2009, and only slightly better in 2010. As we move into “11,” I look at the market and hope my brethren in the business are doing better. Buyer’s agents still don’t have enough buyers, and the flood of inventory on the market is slowing sales and dropping prices for listing agents. But there is one group of people in the real estate sales market whom I really feel sorry for. We call them FSBOs.

 For Sale By Owner sellers are really jinxed in today’s market. Not only do most lack the essential knowledge of how to market a home in the new world of internet merchandising. Today’s buyer is a lot more savvy about shopping for homes, and a “For Sale By Owner” sign just won’t do it. Buyers use the Internet almost exclusively when drawing up a short list.

 Sure, sellers can go to websites such as Forsalebyowner.com and others. They offer services which may or may not be up-to-date, specific for the seller’s situation or particularly comprehensive. For example, Forsalebyowner.com brags that it gives listings complete coverage, including getting visibility on a long list of internet sites, some which sound pretty impressive. But they don’t get you on all of them, don’t offer all of the sites they cover in every market, and can’t guarantee top placement. For example, I update all my Craigslist postings every week. Why? Because if listings aren’t updated, they just sit there, and every day they will fall further and further down the list. Not good for exposure.

 Buyers also consider more than the house. They’re interested in all kinds of info that’s available on line about the area too: taxes, schools, shopping, parks, and more. It helps tremendously to sell a house if the seller is also able to present the area at the same time.

 Nor are For Sale By Owner-sellers fully versed in real estate law, which, yes indeed, applies to them as well. (For example: Who pays for the water testing, buyer or seller?) Selling a home these days can be a nightmare for the uninitiated.

But where I really feel sorry for For Sale By Owner sellers is in the area of pricing. Forsalebyowner.com promises sellers “complete control” over what the seller says and how he prices his property. That’s because they couldn’t care less if the place actually sells. They have their $90 to $900 bucks and they are OUTTA here. Sellers forget that one of the most important purposes of having a Realtor is to get an informed, un-emotional evaluation of the home to price it right. And pricing is everything!

 I can count on less than one finger the number of times I’ve encountered a home for sale by an owner that was underpriced. If I had a dollar for every over-priced one I’ve encountered in my career, I could retire. An owner naturally feels his home is superior to the one down the street that sold recently, when in actuality, the homes are exactly same in the eyes of an appraiser.

 So what happens? The over-priced, under marketed FSBO doesn’t sell. It sits on the market as prices continue to drop. If its value drops 5%, the seller has basically lost what he would have paid a competent Realtor to sell it for him. So the house is now worth even less, and still isn’t sold.

 I feel sorry for them. If you have had an experience like the one described above as an owner-seller, I suggest you look at my website and see all the products and services that a Realtor can deliver to a seller today. It’s what you need to do to get homes sold in a tough real estate market.

Have you ever dreamed of owning a cozy bed and breakfast? Being up at the crack of dawn baking delicious pastries, and cooking up that breakfast your family always asked for on Sunday mornings for a house full of appreciative guests? Meeting and greeting new guests, and saying good-bye to the ones who have just become new friends?

It could be you.

I have a fantastic little B&B for sale in Wallkill, NY. It’s in the perfect situation: run by a charming couple who love guests, dogs, and the hospitality business, in that order. It’s just far enough up state to be nestled in the rolling hills of the Mohonk Mountains, and just close enough to New York City to be a mecca to those who want to get away for a week or a weekend. Which may explain why it’s been so successful for the last 30-odd years. They’re retiring now, and want to sell the place to the right people. Competent staff included.

It’s called Audrey’s Farmhouse, and it’s one of a very few B&B’s accepting guests with dogs. I was so enchanted by my visit to take pictures for their listing’s website that I scheduled a visit. My husband and I went a few weekends ago, and we took our dog Dwight, an English Lab. What a fabulous experience.

We got there in the late afternoon and seven other guests had already arrived, all with dogs in tow. Our Dwight was quite excited to see new faces, and the sniffing and panting and chasing around the living room went on for quite some time as the four legged residents worked out their social arrangements.

The inn has six guest rooms, each named for a characteristic of the room. We stayed in the Fireplace Room, so named because it has its own working wood stove. But as lovely as it was, we chose to spend most of our time there in the kitchen, the living room and the library, talking to the other guests, enjoying wine and cheese, and watching the doggie show as it ebbed and flowed around us. We sat in three large comfy sofas around a big coffee table in the great room in front of a crackling stone fireplace.

The entire inn is decorated with the owner’s eclectic collections of glassware, art, nature and crafts. Rattan baskets hang from the rustic beamed ceiling in the great room, with loads of antique furniture, plates and decorations. It has a colonial country feel that just doesn’t exist anywhere but around here. The kitchen is well equipped, and the staff certainly know how to make use of it. We had a fabulous breakfast there, with local sausages and cheeses and some muffins that were out of this world.

The inn sits on a lovely piece of property with spectacular views of the mountains. When we were there, in the dead of January, they were covered in a fine white linen blanket of snow. Had it been summer, we would have enjoyed the vibrant colors of the gardens surrounding the house, and also taken advantage of the in-ground pool and hot tub. 

Instead, we sat in front of the fireplace. And we talked. I couldn’t get over how the combination of the ambiance, the guests, and the dogs made for such a convivial situation. It wasn’t like the forced conversations you have when you’re parked with a bunch of strangers on a cruise ship dinner table or in a hotel lobby with nobody wanting to say anything. We didn’t want to watch TV, or catch the ballgame or check the stock ticker. We were all quite happy to swap dog stories; brag about the really great antique place we found just down the road, talk about our families and complain about just how much goddamn snow WE got last week!

If you are interested in becoming an inn keeper, even if you’ve never had any hospitality experience, it’s not hard to find lots of resources to get you started, and to answer your questions. A good place to start might be the book Running a Bed and Breakfast for Dummies.  There are also a lot of online sites offering advice, with varying degrees of avarice involved. (Many want you to buy their book, subscribe to their blog or pay to take their course, so beware), but some are genuinely helpful. One is BnBFinder.com’s New Inkeeper page, which offers resources, links and articles on the ins and outs of inns. Another interesting website is “We Are Open!” the diary of a first time B&B owner. Also of interest is About.com’s list of articles on running a B&B.

It could be you! If it is, contact me. I’d love to show you this property.

And I’ll bring Dwight too.

I have to clear up a stupid rumor right now that’s been circulating since last April or so. I had a client who was quite upset because she’d heard through the American network of conservative misinformation that Obama’s health care bill, the Patient Protection Affordable Care Act (or PPACA) has a section imposing a 3.8% sales tax on all home sales. This is not true. Here are the facts.

One of the provisions of PPACA is a section makes high income households pay a 3.8% tax on investment income starting in 2013. The Medicare tax is not a “sales tax.” And it certainly does not apply to all real estate transactions, nor does it apply to real estate deals exclusively. It is a tax on investments, including real estate transactions which have resulted in gains for people earning more than the amount specified in the bill.

This means that if you sell your home, shares of stock or any other taxable investment for a profit above the capital gains threshold of $250,000 per person or $500,000 per couple, the profit over and above the threshold amounts would be subject to capital gains tax.

So that’s the real story. In real estate terms, if you’re a high earner and sell your house for a substantial profit, you will be subject to a tax of 3.8% on the profit you earned that was over the capital gains threshold. And since the bill’s definition of a high earner includes a mere 5% of the American taxpaying public, and since the median sales price of a U.S. home in the 4^th quarter of 2010 was $173,200, this tax will affect only the very wealthy who just got a big payday on a big sale.

Sounds fair to me!

Like a lot of American’s in foreclosure, many may not want to admit the fact, much less do something about it. But there IS something to clap your hands about. There are several new programs now available that are actually targeted to help families and owners of distressed properties. And there are a lot of distressed properties to be helped.

According to the Mortgage Bankers Association, over 7 million U.S. homeowners are currently in default. Many are in the final stages of the pre-foreclosure process and now have limited options to avoid bank repossession. Based on current credit bureau there are over 1.5 million homeowners nationwide whose default status is new enough that it has not yet been labeled as public record. These homeowners are still in the early stages of pre foreclosure and, if identified early on in the process, have a much greater chance of avoiding foreclosure and bank repossession.

RealtyTrac.com predicts there will be over 1.2 million homes repossessed by banks in 2011, calling it “the peak” of our nation’s foreclosure crisis. The projection is a 20 percent increase from previous repossession rates reported in 2010. Some experts attribute the crisis to unemployment, property depreciation, or general economic hardship; but perhaps none of these factors are as important as a Freddie Mac survey that reported "6 in 10 homeowners in pre-foreclosure aren't even aware of the programs and services available to help them prevent foreclosure." The release urges real estate professionals who are qualified and experienced in stopping foreclosure actions to reach out to distressed homeowners, knowing it is highly unlikely they will seek out assistance on their own. 

Freddie Mac reports more than half of homeowners who lose their homes to foreclosure never answer their lenders' phone calls or letters. Instead, homeowners feel embarrassed about being in default, don't believe their lender can help, and erroneously assume that contacting their lender will cause them to lose their home more quickly.

Many lenders now have excellent programs in place to assist home-owners in trouble. Wells Fargo for one has just implemented an excellent Fast Track program to help owners whose loans are in their portfolio to work out the best option possible to avoid foreclosure.

Most owners are unaware of the many options available to avoid foreclosure. Most are daunted by horror stories about the mounds of paperwork that comes with ever increasing intensity as payments are missed and the slippery slope to the inevitable gets steeper.  By talking to someone who is aware of the many options available and who can help them develop a plan for the future, life can suddenly become much more bearable. As a Certified Distressed Property Expert, I can help.  Contact me today, let’s start the conversation.  I guarantee you will sleep easier tonight!

 A polite Japanese greeting?

Sony’s latest Playstation?

An anagram for “Am Nosy”?

Nope. It stands for State Of New York Mortgage Agency and it provides safe, low interest, fixed rate mortgages to help low to moderate income families become homeowners. Sound good? Especially in these times of persnickety lenders? You bet! Add the fact that they also provide down payment assistance (although at a higher interest rate) as well as financing for 2-4 family homes, condo’s and co-ops. I’d call it New York Real Estate’s best kept secret and a buyer’s dream financing.

The program started in 1970 pursuant to Chapter 612 of the Laws of New York in order to alleviate shortages of funds available in the private banking system for residential mortgages within New York State. Borrowers had to conform to strict guidelines to take advantage of the program but over the last few years, its guidelines have expanded so that more first time homebuyers can take advantage of the program. The terms and conditions of the program are very favorable to the buyer as compared with traditional financing through the FNMA and FHLMC.

Buyers can get up to 97% financing for one and two-family homes, and up to 90% on a three or four family home. Borrowers can contribute as little as 1% of the cost of the home. Interest rates as low as 4.5% (for non-targeted areas) with no points! 4.0% with no points is available for targeted areas and lower income borrowers. Rates are locked for 100 days. There are no loan pricing adjustments or delivery fees, which make other programs less affordable. The program also offers down payment assistance for either 3% of the purchase price or $10,000, whichever’s higher.

To qualify, Rockland residents need an income less than $122,400. Westchester residents can qualify with income up to $126.360. In either county, the most you can buy is a home with a purchase price no more than $656,770.

Now that’s what I call a buyer’s dream!

For more information on qualifying for a SONYMA mortgage please contact John Naclerio of Wells Fargo Home Loans and to find the house to go with the loan contact Vanessa direct.

If you are thinking of selling your home you might be pondering over what buyers want. That's a good start, but maybe you should come at it from the other direction: buyers do not want to buy your home. Buyers do want to buy a house that will become their home. Think about these things to make your home into a house that a buyer will want.

WHAT HOME BUYERS DO NOT WANT

Buyers do not want to do mental gymnastics to envision themselves living in a house. Don't make people do too much work to understand the layout, rooms and property.

Buyers do not want a house that no one else wants. It's human nature to want what others want. Price your home to sell and not to just sit.

Buyers do not want to pay for an over-priced house in an under-priced market, regardless of what you paid for it or need out of it.

Buyers do not want to see your stuff: cluttered kitchens, messy rooms, or your personal items in a bathroom are definite turnoffs.

Buyers do not want to smell your stuff: the litterbox, wet dog or morning bacon might be scents that you get used to, but other people won't love them.

Buyers do not want to live with your stuff: your wallpaper, strong paint colors, brightly colored carpets, shelf paper from 1983 and 10 years of your kids' trophies are definitely personal choices that a new owner may not care for.

Buyers do not want your projects: all those little repairs, clean-ups, fixes, smudges, cracks, rips, errors and mistakes...please take care of them before listing your house for sale. If you say to yourself "that's a lot of work", then so does a home buyer.

I see a lot of houses so if you want me to come take a look at your house, give me a call. (845 598 5083). I can help you turn your home into a house that is perfect for the market...and a buyer.

According to the Huffington Post this years annual Groundhod Day prediction by the infamous groundhog Punxsutawney Phil points to an early spring. I for one am very relieved to hear this and have my fingers and toes firmly crossed that Phil is right and we see an early end to the dreadful winter of 2010/11.

However, if you have elderly neighbors, this would be a really good time to find out if they are warm, have enough food, or need help shovelling, and let them know that not only is spring closeby, so are you!

International investors are buying up the United States as real estate offers a lot of bang for their buck. according to a new survey by  Demographia, which examined affordability in the third quarter of 2010.

The median home in Australia formerly known at the “Land of Affordability”, now have a median price of $454,000 costs 6.1 times the gross annual median household income. What’s more, 85 percent of the homes in Australia’s major cities were more than 5.1 times average income making Australia the most unaffordable among English-speaking nations. On the other hand, U.S. homes have a median home price of $168,000 and homes cost only three times yearly income or less. That shows U.S. homes are the cheapest relative to incomes among English-speaking nations.

The United States boasted the most affordable major markets. Atlanta was the most affordable big city, in which the median home price is $129,000.

Meanwhile, the most unaffordable markets in the U.S. were mostly found in California: San Francisco (homes cost 7.2 times income), San Jose (6.7 times), San Diego (6.2 times), New York (6.1 times), and Los Angeles (5.9 times).

The priciest city for real estate, in general: Hong Kong, with homes costing 11.4 times income. (The report considers any markets where home prices are 5.1 times household income or more very unaffordable.)

Prices in Hong Kong have increased by more than 50 percent in the past two years, due to low interest rates, an expanding economy, and buyers flooding in from China.

Sellers struggling to find a buyer in our current difficult market conditions might consider recruiting the services of a REALTOR that holds the coveted National Association of Realtors' Certified International Property Specialist designation. By expanding your marketing efforts further than your local MLS and national websites has the ability to market property globally and attracting those willing to invest when traditional buyers aren’t forthcoming.

For more information on marketing your property to the world contact Vanessa Saunders - International Fine Homes & Relocation Specialist

Damn! Ice dams!

Earlier this week while at a listing presentation for a Rockland County homeowner I noticed a rather spectacular line of icicles hanging from the roof and mentioned it to the owner. She thought they looked pretty and wasn't worried as they wouldn’t damage anything when they fell.

As she took me on a tour of the house, I asked if they’d ever had an ice dam on the roof. I explained that having lived in Minnesota for several years, I was familiar with this particular home hazard. When there is a lot of snow followed by cold weather, heat leaking through a poorly insulated roof or a roof warmed by the sun melts the snow, causing water to run off the roof. As the water reaches the cold overhang, it freezes in the gutter and downspout. The steady build-up of ice at the edge of the roof eventually forms pools of water back on the warmer side. The water wicks up under the shingles and can penetrate the roof, and get into the house.

The homeowner scoffed at the idea. “We’ve never had a problem with that,” she said. Just then, we entered a bedroom on the icicle side of the house. “What’s that then?” I said, pointing to a damp-looking spot on the ceiling. It was water, which had leaked in through the shingles because of an ice dam.

There are some methods used to prevent ice dams, but most are not totally effective. One product on the market is a heated electrical wire which is attached to the edge of your roof or gutter to prevent ice from forming. These often don’t work very well, can waste electricity and may even be dangerous.

Today’s solution is not to prevent the ice dam but to prevent the water from getting past the roof. A number of products are available to treat the roofs surface beneath the shingles so it is completely waterproof. The effect is similar to shrink-wrapping the areas of the roof likely to be affected. Ask your home improvement store clerks about it, or visit the Ask the Builder website for more information.

However, as the past month’s conditions are an unusual occurrence in this part of the country, permanent solutions are probably unnecessary. Homeowners just need to know that as pretty as the icicles are to look at, they should be knocked down and gutters cleared to prevent the ice dam from forming as quickly as possible.

If you are planning on selling your home putting your property in ship shape condition is the key to getting top dollar in this market. Elizabeth Weintraub of About.com explains why in her recent article “How to Prepare Your House For Sale”. In this market where there are so many homes in competition with each other to sell it is imperative that yours is the winner of the beauty pageant. Damp spots on the ceiling and leaky gutter just wont help. 

In the case of the homeowner above, I was able to call in V Team member Sergio Matta, who rushed over, cleared her roof and repaired the damage to the ceiling allowing me to put her house on the market the very next day.