Real Estate Information

Check out these tips for moving, courtesy of Move.com. It might just help save your clients a bit of time, stress and heartache.

4 weeks from move date: Get organized and start notifying the right people and companies that you'll be moving soon and give them a date to forward or terminate service. Start looking for licensed and professional moving companies, moving guides and relevant coupons.

Tip: If using a professional mover, get quotes from multiple moving companies to get the best deal that is right for you and your needs. Ask plenty of questions like whether or not they give binding quotes and what kind of insurance is included. Be sure to talk with them about the different options available with full-service moves such as packing and unpacking services and providing boxes and packing supplies.

Tip: Important documents such as your child's school records may need to be accessible during your transition. Make sure to put these items aside and make copies of any records for yourself, in case you forget what box they're packed in.

3 weeks from move date: Once you've selected a mover, begin by taking inventory of your belongings and their worth and decide what will be coming with you to your next home.

Tip: Start cleaning out closets, drawers and storage areas of your home and divide things into categories: "pack," "recycle" and "give to friend." You can always have a garage sale or donate old items to charity. This will make packing day a lot easier and you may reduce the total weight you'll be paying for to move.

Tip: If you're moving yourself or contracting for a self-service move, pack the items you know you won't need until 30 days after the move. It will feel great to get started early.

Tip: If possible, take pictures of rooms and areas inside the home or apartment you'll be moving into so you can start thinking about placement of furniture, artwork and other items. This will help save time, headaches...and money...on moving day.

2 weeks from move date: If you choose not to take advantage of full service mover packing services, or are planning to do it yourself and rent a truck, start packing things into boxes. Figure out the logistics of the move, travel plans and if other specialized plans need to be made.

Tip: If you are using a professional mover find out what items are on their "non-allowables" list and discard those items or find a way to transport them separately.

Tip: Instead of stacking plates, pack them vertically; they will travel safer this way.

Tip: If you are moving long distance, remember travel arrangements for your pets. There are pet-exclusive airlines available such as Pet Airways but regular airlines have travel options for pets as well.

Tip: If you have young children, you may want to make childcare arrangements so you can be 100% focused on moving day and your little ones remain safe and busy with fun activities.

Tip: Schedule "move out" cleaning service, carpet cleaners and heavy appliance disposal if necessary for once you'll be out of the home you're vacating. Even if you're selling your current home, it's a nice welcome for the buyers to move into a clean and tidy home.

1 week from move date: Set aside valuable items and keep those with you. Clean before moving and leave your house or apartment as clean as it was when you moved in.

Tip: Make sure the details for paying the moving company are taken care of. Some will require money orders or cashier's checks upon delivery; know their policy in advance to avoid stress on moving day.

Tip: Start eating all the frozen foods you have, or give them to a neighbor or friend. This way you won't have to throw them away on moving day, or worry about packing an ice chest.

Tip: Also think about necessities for managing moving day like confining your pets and anticipating the amount of time you will need.

Tip: Place necessities such as toiletries, toilet paper, rags, "must-have" cooking supplies and organize them in boxes marked "open first" so it's easy to find the initial items you'll want handy on those first few days of being in your next home. Don't forget the flashlight!

Tip: If possible, take one last tour of the new location and identify water and gas shut off locations, as well as the electrical breaker box just in case something happens in the first few days so you're prepared. Might be smart to drop off a fresh box of light bulbs too!

Moving day and beyond: Take one last walk through and make sure nothing has been forgotten or overlooked. Also, make sure all doors and windows are locked and switches turned off, then you are on your way to your new house or apartment.

Tip: Go back to the photos you took when you began to pack up. Now you can show the movers or those helping you unpack exactly where everything goes with photos.

Tip: Unpack one room at a time according to basic needs starting with the kitchen and at least one bathroom...and don't forget to make a bed as early in the day as possible if you'll be sleeping in your home that evening! Remember, you don't have to unpack everything in one day, or even in one week.

Tip: After you've settled in a bit, introduce yourself to some neighbors, ask for advice on the best places to eat, grocery shop, etc. This way you will feel like part of the community and can get some great local tips.

Want to make the planet a little greener? Look no farther than your own backyard—or, for that matter, your own front yard.

The U.S. is home to 32 million acres of lawn, or enough to cover the 100 largest U.S. cities almost twice, says Owen Dell, author of Sustainable Landscaping for Dummies. Lawns suck up 270 billion gallons of water a week and burn 800 million gallons of (mower) gas a year. And then there are the pesticides and the chemical-based fertilizers.

“I use this analogy,” Dell says. “If you take care of yourself—exercise, eat right, don’t drink too much alcohol, don’t use drugs—you’re going to have a much better chance of staying healthy. Similarly, if you keep the landscape healthy, whether it’s the lawn or anything else, you’re going to have fewer problems.”

How do you break free of the high-maintenance lawn care cycle? Drawing from interviews with Dell, Tom Christopher, editor of The New American Sustainable Garden (due out next year) and Annie Spiegelman, author of Talking Dirt assembled a list of basic tips to get you started.

1. Don’t overwater. Most people grossly overwater their lawns. Consider getting a free ‘water audit’ if your water company offers one, or just turn the sprinkler off and observe the results. If your grass doesn’t spring back when you step on it in the heat of the afternoon, it’s time to water. Watering four times a week is too much in most parts of the country.

2. Water deeply. It’s better to water deeply than frequently. Many lawns do well with 15 to 20 minutes at a time, once or twice a week. For maximum efficiency, give the water a chance to seep in: Water for 10 minutes, wait 20 minutes and then finish watering.

3. Get adequate coverage. If your sprinkler doesn’t cover a spot, you end up with a dry area or an overwatered lawn.

4. Give the soil breathing room. Aerate your lawn once or twice a year in the spring or fall with a gas- or foot-powered aerator. This loosens the roots and lets water and fertilizers penetrate.

5. Try a lush look. If you keep your grass 3 inches high, it will ‘shade out’ weeds, denying them the sun they need to grow and take over your lawn.

6. Reduce your lawn size. Less lawn means less watering. Consider a border planted with low-maintenance ground cover instead of grass.

7. Kick the chemical fertilizer habit. Don’t pump too many nutrients into your lawn. One fertilization with an organic fertilizer in early fall is plenty.

8. Go natural. Insecticides with ingredients such as vinegar and orange oil are sold at many nurseries and boiling water kills weeds.

9. Keep grass clippings. Rather than removing them, rake them gently over your lawn. They’re free and rich in the plant nutrient nitrogen.

10. Consider low-maintenance grass. Ask your local university extension program or agriculture department to recommend a low-maintenance grass (options include fine fescues and buffalograss) that grows well in your region. These easy-going grasses are designed for your region and will thrive with minimal water and mowing.

(c) 2010, Chicago Tribune.

Fannie Mae recently announced new standards for the purchase and securitization of adjustable-rate mortgage (ARM) products. The company is changing eligibility criteria to protect consumers from potentially dramatic payment increases and to help ensure that borrowers who hold these types of mortgages can sustain them beyond the initial interest rate period.

“Our goal is to make sure consumers can sustain their mortgages and remain in their homes over the long term, while helping our lender partners offer a range of mortgage products for qualified borrowers,” said Marianne Sullivan, Senior Vice President of Single Family Credit Policy and Risk Management at Fannie Mae. “These policy changes reflect our intention to continue providing liquidity to different market segments by ensuring that support for ARM products remains in appropriate circumstances.”

For ARMs with initial periods of 5 years or less, Fannie Mae will require that borrowers be qualified at the greater of the note rate plus 2% or the fully indexed rate (index plus margin).  The company also said it will continue to make available an interest-only loan product, but will change its qualification criteria. The maximum loan-to-value ratio cannot exceed 70%, the borrower’s credit score must be 720 or higher and the borrower must have a minimum of 24 months of liquid asset reserves remaining after loan closing. Balloon mortgages, which typically offer lower initial interest rates but leave a significant balance due at maturity, will no longer be eligible, except with special approval.

All loans not meeting the new guidelines must be purchased as whole loans on or before August 31, 2010, or delivered into MBS pools with issue dates on or before August 1, 2010.  Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

For more information, visit www.fanniemae.com.

The statistics shown below were taken from the Ulster County Multiple Listing Service.  

Comparing sales from January 1, 2010 thru April 24, 2010 with sales from the same time period in 2009, there has been an increase of 70 homes sold, a 31.5% increase.  The average sale price increased from $232,509 to $241,285, a 3.7% increase.  The median sale price increased from $190,000 to $209,120, a 10% increase. Sales increased in every price category, except for sales of homes over $1 million.

Comparing sales from January 1, 2010 thru April 24, 2010 with sales from all of 2009, the average and median sale prices were almost exactly the same. 

When you compare sales for the January 1, 2010 thru April 24, 2010 with sales from 2008, there have been appreciable drops in average and median sale prices.  The average sale price dropped from $288,758 to $241,065, a 16.6% decrease.  The median sale price dropped from $239,200 to $209,120, a 12.6% decrease.

The average and median sale price for 2010 is slightly lower than what it was in 2004!  But with prices remaining fairly stable for the past year and four months, perhaps we have hit the bottom of the market. 

Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers finance their purchase, which means that virtually all buyers -- especially first-time purchasers -- required a loan.

The real issue with real estate financing is not getting a loan (virtually anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that's right for you -- the mortgage with the lowest cost and best terms.

REALTORS® routinely suggest that consumers start the mortgage process well before bidding on a home. Many lenders (the sources of money) and programs, for example, are available right here in the finance section of Realtor.com as well as through recommendations from local REALTORS®. By meeting with lenders -- either online or face to face -- and looking at loan options, you will find which programs best meet your needs and how much you can afford.

REALTORS® also recommend pre approvals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won't be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

"Pre-approval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Although not a final loan commitment, the pre approval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

How do you get pre-approval?  Real estate financing is available from numerous sources, including lenders here in the finance section of Realtor.com, mortgage companies that have worked with local REALTORS® and in some cases, individual REALTORS® themselves. Based on his or her experience, the REALTOR® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms.

The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.

For tax purposes, deductions for residential real estate held for personal use generally fall into two main categories:

1. Costs that can be deducted as expenses from a buyer’s or seller’s personal income on a tax return

2. Costs that can be used to alter the basis of the home, with the idea of lowering the capital gains

Note that a second, or vacation, home generally qualifies for all of the same deductions as a principal residence provided that it isn't rented for a significant portion of the year.

Buyers may deduct the following items associated with buying a home as expenses on their personal income tax in the year that they buy the home.

Points—including loan origination fees and loan discounts, provided that the home is your principal residence, the amount is clearly stated on the settlement statement, and the purchase meets the nine criteria for deducting points established by the IRS. (See www.irs.gov/prod/forms_pubs/pubs/p53001.htm for details on these criteria.)

If the buyer doesn't satisfy all of these criteria, points must be prorated and deducted over the life of the mortgage.

Buyers may add the following costs associated with a purchase to the basis of their home. These additions will increase the basis and serve to lower the capital gains liability when the home is eventually sold:

1. Transfer or stamp taxes and recording fees, if paid by the buyer.

2. Title abstracts.

3. Title insurance.

4. Attorney’s fees for preparing their documents for closing.

Buyers cannot deduct as expenses on their income tax or add to the cost basis of the home:

1. Fees for an appraisal required by the lender.

2. Rent paid to occupy the home before closing.

3. Cost of credit reports.

4. Loan assumption fees.

During the period of homeownership, owners of single-family homes, condominiums, coops, and other types of property occupied as a principal residence may deduct the following items as expenses each year on their income tax returns:

1. Interest paid on a mortgage loan(s) of $1 million or less taken out to buy, build, or improve a home. If the loan amounts you owe on your first and second home together exceed $1 million, not all interest is deductible. Note that married couples filing separately may each deduct interest on a total mortgage debt of $500,000.

2. Late payment charges on mortgage payments

3. Real estate taxes paid on the home in the year they are paid

Homeowners may not deduct:

1. Homeowners association dues or assessments.

2. Premiums for fire or homeowners' insurance. (Note that this is often included in the monthly house payment.)

At the time of the sale, the sellers may deduct the following expenses from their income taxes:

1. Any reserved real estate taxes credited to the buyer at closing. However, these deductions can't be taken until the year that the property taxes are actually paid to the taxing body.

2. Any mortgage interest paid for the portion of the year that the house was owned.

3. Any remaining, undeducted points for the satisfied mortgage.

In calculating the capital gains resulting from a sale, the sellers may add the costs following items to their existing basis:

1. Transfer or stamp taxes and recording fees, if paid by the seller.

2. Recording fees, if paid by the seller.

3. Attorney’s fees for preparing their documents for closing.

4. Real estate commissions paid to a broker and sales associates.

5. Money spent to repair the house prior to sale, if spent within 90 days of the sale.

In my first article in this series, Photographing Properties for Sale in Ulster County, I discussed what we (team ulster) photograph when we are preparing to list a real estate property for sale in Ulster County.  In this second article, I will discuss the procedure we follow to make the photographs look their best.

When we come back from shooting the photographs of a property that we are about to list on the Ulster County Multiple Listing Service, we first download the photographs from our camera to a folder on our computer.  We then open up our photo-editing software, and import those photographs into this program.  (To find a photo-editing program, go to Google, and type in “photo editing software“.  Google offers a very good free program called Picasa.)

Within the photo-editing program, we may do a number of things so that our photographs present the property in the best light [pun intended].  We might straighten, crop, lighten, darken, or brighten the photographs, so that the photographs show the property the way we actually saw it.  We are “fixing" the photographs because we may not have had proper lighting, or we did not hold the camera straight, or we forgot to use the flash, etc.

Occasionally we will retouch the photograph to hide an unsightly item that we forgot to move before we took the photograph.  We never retouch a photograph to hide something that is permanently there, such as a power line or telephone pole, because that would be unethical.  But if we forgot to remove that red rubber ball or that ugly garbage can before we took the photograph, we will now try to retouch it out of the photograph.  From our experience, retouching is difficult to do because the picture often looks worse with the “offensive” item retouched out of the photograph, than when that item was in the photograph.  So, we often forgo retouching, and just curse ourselves for not having seen that offensive item before we took the photograph.

We do not edit every photograph that we took, just those that we might want to use.  Once we have finished editing, than we export the edited photographs to a new folder. At this point, we pick the photographs that we will put on our Multiple Listing Service, our team website (www.UlsterCountyHouses.com), and on the slide show or property website that we will set up just for this property. 

We are now ready to use our edited photographs to prepare a virtual tour, but I will cover that procedure in my next article.

Snapshot & Benefits:

A conservation easement is a voluntary legal agreement between a landowner and a conservation or government agency that perpetually restricts specified activities on a piece of private property for the purpose of conservation. For example, a landowner may give up the right to subdivide the land into building sites, while retaining the right to farm the land. The land that can be protected must have "significant" conservation values, according to the IRS. These values include forests, wildlife habitats, open spaces, wetlands, and more. The easement stays with the property and is binding on all future owners. Conservation easement is a popular tool for landowners who want to retain ownership of their property and protect it for generations to come. The landowner essentially gives up "development rights" however, can continue to own and manage the land according to the rights outlined in the easement. These easements can be transferred by charitable gift or sale, and often bring significant tax deductions. A conservation easement is also a critical tool used to ensure that the land stays within a family for future generations. The family possession of the land is made possible due to the fact that the easement removes any development rights, which lowers the land market value, and in turn lowers the estate tax.

Tax Savings:

Conservation easements may provide substantial tax savings, because the landowner receives a federal income tax deduction. The value of the tax deduction is determined by the value of the easement. The value of the easement is determined by a professional appraiser and equals the difference between the fair market value of the property before and after the easement takes effect. As stated by the IRS, to qualify for this income tax deduction, the easement must be: a) perpetual; b) held by a qualified governmental or non-profit organization; and c) serve a valid "conservation purpose."

Issues:

Conservation easements are not appropriate for every landowner. The IRS requires that the property in question has "significant" conservation values, such as a wildlife habitat, wetlands, forests, etc. Landowners should know that conservation easements may be overridden by eminent domain when the public value of the proposed project exceeds that of the conservation interest being protected by the easement. Conservation easements may also result in a considerable reduction in the sale price of land, because of its restrictions on building.

Getting It Done:

Consult a professional appraiser in your area before requesting the easement. In most areas, the landowner will need to contact their local conservation or government agency, at which they will evaluate the property to determine if it meets their criteria. If approved, the easement is signed by both the landowner and agency and is recorded in the local land records.

More Information On This Topic:

What is a Conservation Easement?

The Nature Conservancy: How We Work

American Land Conservancy

Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.93 percent with an average 0.7 point for the week ending February 18, 2010, down from last week when it averaged 4.97 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.

The 15-year FRM this week averaged 4.33 percent with an average 0.6 point, down from last week when it averaged 4.34 percent. A year ago at this time, the 15-year FRM averaged 4.68 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.12 percent this week, with an average 0.5 point, down from last week when it averaged 4.19 percent. A year ago, the 5-year ARM averaged 5.04 percent.

The 1-year Treasury-indexed ARM averaged 4.23 percent this week with an average 0.6 point, down from last week when it averaged 4.33 percent. At this time last year, the 1-year ARM averaged 4.80 percent. 

"Mortgage rates eased for the second week, while economic data releases suggest that the housing market may be in a slow state of recovery," said Frank Nothaft, Freddie Mac vice president and chief economist. "The National Association of Realtors® (NAR) reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32 states experienced double-digit growth. In addition, 67 metropolitan areas saw positive annual house price growth in the fourth quarter, more than double that in the third quarter, according to the NAR."

"New home construction is also slowly improving. One-family housing starts rose to an annual pace of 484,000 homes in January, which is up almost 36 percent from January 2009, based on the U.S. Census figures. Moreover, homebuilder assessments of market conditions over the first half of 2010 improved in February, according to National Association of Homebuilders/Wells Fargo Housing Market Index." 

The following statistics were taken from the Ulster County Multiple Listing Service (MLS).  These statistics include all single family homes sold in Ulster County that were listed on the Ulster County MLS.  We will be comparing statistics for the full 2009 year with the previous year’s statistics.

The average and median price for single family homes sold in 2009 decreased considerably from 2008. 

One of the major reasons for this decline was the federal government offering an $8,000 tax credit to first-time homebuyers in 2009.  As a result, many of the homes sold were to first-time homebuyers, and these buyers tend to purchase lower-priced homes.  This brought down the average and median price of sold homes in 2009.

Another reason for the decline in prices was the “great recession” that began in late 2008.  Existing and prospective homeowners suffered major losses of income and deep declines in the value of their investments.  As a result, some homeowners had to sell because they could no longer afford to maintain their home, and some homebuyers had less money to purchase a home.  This brought about downward pressure on home prices.

The average sold price for single family homes decreased by about 17% from 2008 to 2009, from $297,505 to $246,530.

The median sold price for single family homes decreased by about 22% from 2008 to 2009, from $245,000 to $215,000.

The number of days a sold house was on the market from the time it was listed until the closing date, increased by 9 days (about 6%)  from 2008 to 2009, from 162 to 171.

The sale price to list price ratio decreased by less than 1% from 2008 to 2009, from 93.80% to 93.33%.  That means that in 2009 the average single family home sold for about 7% less than the final listing price for that home.

The number of single family homes listed in 2009 decreased by about 5% from 2008, from 2,945 to 2,807.

The number of single family homes sold in 2009 increased by about 1% from 2008, from 960 to 971.