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.

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

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 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.

Eight Weeks Prior

• Get estimates from at least three professional movers. If you are going to do it yourself, get estimates on rental trucks.
  
• Decide which furniture and household goods you’ll be taking, which needs to be disposed and which needs to be replaced.
  
• If you will be moving to a new city, contact the Chamber of Commerce of that town for a new residence packet. Your sales professional may also have information.

Six Weeks Prior

• Inventory your possessions besides furniture – kitchenware, decorative items, electronics, apparel and so on.
  
• Complete a change of address form with the post office. This can be easily done online at www.MoversGuide.com for a minimal cost of $1. Make sure you notify organizations, credit cards companies, and publications to which you subscribe of your new address, too.
  
• Obtain copies of all medical, dental, legal, accounting and veterinarian records.
  
• If children are changing schools, arrange for transfer of educational records.
  
• Itemize moving-related costs with the mover including packing, loading, special charges and insurance.

Four Weeks Prior

• Make arrangements for packing your belongings. If you will be using professionals, schedule with the company for packing to take place a day or two before the move. If you will handle packing on your own, purchase adequate boxes, packing materials and tape.
  
• Arrange for short-term or long-term storage if needed.
  
• Make travel arrangements for pets including necessary medical records, immunizations, medication and so on.

Three Weeks Prior

• Begin packing items you won’t need immediately or that will go into storage.
  
• Contact utilities on both ends of the move to order termination or turn-on for occupancy date.
  
• Confirm travel arrangements for family and pets.

Two Weeks Prior

• Terminate newspaper and other delivery services.
  
• If necessary, arrange and confirm new bank accounts and local services in your new neighborhood.

One Week Prior

• Gather important papers, records, and valuables for protected shipment to new home or safe deposit box.
  
• Obtain any prescription medications needed for the next few weeks.

Day Before or Actual Moving Day

• Defrost refrigerator/freezer and give away all perishable food.
  
• Keep a box marked “Last Box Packed/First Box Unpacked” for tools, flashlights, first aid kit and so on. On moving day, this should be the last box placed on the truck.
  
• Pack items to carry with you such as valuables, financial records, personal papers and so on.
  
• Give the movers a telephone number and address to reach you.

To be sure, a detailed action plan can get your move well down the road before you ever depart to your new destination.

Here is some great first-time home-buyer news: SONYMA (State Of NY Mortgage Agency)  has announced two new features that can be used with their loan programs.

1.  Down-payment assistance loan of up to 3% of the home price, with a maximum of $10,000. This is a no payment, 0% interest loan, which is forgiven after 10 years.

2.  Tax credit advance loan.  Now applicants can receive their $8,000 federal tax credit at the closing, when they need it.  If the advance is paid back by June 30, 2011, there is no interest.  In order to be eligible, borrowers must generally be first-time home-buyers, and have contracts for a home signed on or before April 30, 2010, with a closing on or before June 30, 2010. 

Income limits for Ulster  County:

1-2 person household:  $83,640        

3 + person household:  $97,580

Maximum single-family home price:  $354,970

For more detailed information about this program, click on the following link: 
Down Payment Assistance and Tax Credit Advance Loans

A house for sale on Clinton Avenue in Kingston.

The regional real estate market, which has not suffered as much as others following the burst of the national housing market bubble, seems to be stabilizing and could be poised for a rebound in the next few years, real estate professionals say.

Tim Sweeney, associate broker and owner of Prudential Nutshell Realty, said Ulster County was able to weather the downturn in the market better than other areas because its natural geographic location brings a different demographic.

With the exception of the southern part of the county, Sweeney said, Ulster has neither a large commuter population nor a large corporate workforce. That means the county is less subject to swings of boom and bust, he said.

"As a result, our market absolutely has suffered, but not as badly as other areas, both regionally and, certainly, nationally," Sweeney said. "Where some areas experienced extreme over-building, leading to an over abundance of inventory, Ulster County did not. The reason is two-fold - a naturally less-volatile economic climate and excellent zoning in many townships."

Sweeney said Ulster County sales trends from 2001 to the present, based on Multiple Listing Service statistics, show the height of the market for units sold was 1,883 in 2005, while the average sales price peaked at $300,742 in 2007. He said many people in the industry believe the trend up was the result of Sept. 11, 2001, and was further fueled by an economic boom.

The trend down for units sold in Ulster County began in 2006, when there were 1,657 sales, followed by 1,563 in 2007 and 1,200 last year. The average sale price for a home declined to $288,758 last year and currently stands at $239,352.

Sweeney said there are several reasons for the downward trend, including the economic downturn, inventory supply, educated buyers and natural market trends. He said, though, he believes the market is now turning in a good direction for consumers.

"When the banking crisis really took hold a year ago this September, mortgage money became almost nonexistent," Sweeney said. "Loans granted by allowable lending practices, such as stated income, no income verification, zero dollars down and low credit scores, vanished from the market place."

Sweeney said Federal Housing Administration loans were available, but a low dollar cap only worked for a small sector of the market and jumbo loans at that time of $417,000 and more were virtually impossible to secure.

The good news, Sweeney said, is Congress recently passed a resolution to extend through 2010 the current higher loan limits observed by Fannie Mae, Freddie Mac and Federal Housing Administration. He said this has filled the void created by the banking crisis in 2008. While money is still tighter than it was, because the banks are performing due diligence in reviewing mortgage applications, that is a good thing for the industry, Sweeney said.

Additionally, the first-time homebuyer credit of up to $8,000 has also been a boost to the market, Sweeney said. More than 2 million consumers have taken advantage of the credit, which will be available through April. The credit, combined with lower prices and lower interest rates, means millions of buyers are able to own their own homes.

"It is especially gratifying to me to see young families be able to afford a home purchase today, where three to five years ago they could only dream of it," Sweeney said. He said the percentage of homes sold in Ulster County over the past four months is 8 percent higher than the same period in 2008, and 18 percent higher than in 2007.

Alexa Latimore said she and her husband Roger were able to take advantage of declining housing prices to purchase a new home for their family. The couple, who have three daughters, purchased a 1,700-square-foot house in Accord in March and are now looking to purchase an adjoining two-acre vacant land parcel.

"We had started looking about four years ago and everything was ridiculously priced," Latimore said. "So, we stopped looking."

It was not until last November that her real estate agent, Laurel Sweeney of Prudential Nutshell Realty, called to say she had found the family the perfect home. Latimore said the house was indeed perfect, "and we got it for dirt cheap because the market was down then."

Latimore said she and her husband paid $205,000 for their home, which likely would have been out of their price range a few years before. She said the couple was able to take advantage of first-time homebuyer credits.

Ulster County resident Jonathan Tuscanes said he purchased a new home with a different layout to accommodate his family's needs. He said he was not "super serious" about finding a house, but was able to find one that fit in his price range. Tuscanes said he did not have to look long to find a house and visited only four before deciding on which to buy. Low interest rates helped with the decision to buy, he said.

For Barbara Scanlan, the decline in the real estate market meant she had to accept $15,000 to $20,000 less than she thought she would get for her High Falls home when she put it on the market. The house, on Bruceville Road, had become too much for her to take care of on her own after the death of her husband, David. Scanlan said it was an emotional decision to sell, and the house was on the market for about five months before she got an offer she thought would go through.

Despite the lower offer, Scanlan said she got $279,000 for the house she and her husband originally paid $160,000 for. Additionally, she said, she was able to find a smaller home to rent on Kripplebush Road, with the assistance of her real estate agent, Laurel Sweeney. Finding a rental so close to her former home meant she was able to stay close to friends, stores and other amenities, Scanlan said.

"So, it's a success story, really, in spite of the ups and downs of the real estate market," she said.

Ted Banta, a real estate agent and president of the Greene County Multiple Listing Service, said that besides the first-time homebuyer credit, buyers are also benefiting from a $6,500 federal tax credit for individuals who have owned and lived in their previous home for five consecutive years out of the past eight years. He said they are also benefiting from state tax credits.

Banta said he believes the Greene County area will see a robust market barring any major problems. He said that is due in part to the work of the Greene County Industrial Development Agency and Greene County Planning and Economic Development Department to expand the local economy.

"Over the next three to seven years, I think, Greene County is a very exciting market," Banta said. He said people are moving to Greene County for the lower prices and generally lower taxes. Banta said he also sees the second home market rebounding.

The median home price in Greene County is between $160,000 and $170,000, Banta said, but he noted the market has seen a lot of movement on homes under $150,000. There is also a second market of higher-priced homes in areas like the mountaintops and Sleepy Hollow in Athens, he said.

Banta said financing is available for buyers, but lenders have gotten stricter, a development that, while correcting the easy credit that created the market bubble, can be a problem. He cited a situation in which a bank would not lend to an individual seeking to sell a home and buy another, even with an income sufficient to support two homes before the sale of the original home was complete.

Stephen Nelson, chief lending officer at the Bank of Greene County, said most community banks were not as affected by the banking crisis because they did not get involved in sub-prime lending. He said the sub-prime lenders provided 100 percent financing and no income verification, where as the Bank of Greene County would finance 80 percent of the property and follow conservative underwriting practices.

As a result of the more conservative lending practices, community banks and those who did not get involved in sub-prime lending have not been as hard hit with foreclosures, Nelson said. He said his bank has had some, but as of the end of September the Bank of Greene County did not own any real estate. Nelson added that the bank always tries to work with its customers to help them avoid foreclosure.

"People who struggle should really contact their lender to work out some type of payment agreement," Nelson said. In this region, he observed, foreclosures are generally the result of people being out of work, rather than the property values decreasing drastically. Nelson also said the area did not have as large of a building boom as other places, like California.

Michael Shaughnessy, executive vice president of Ulster Savings Bank, said he believes the Hudson Valley's home values have held up better than other areas. While there has been a decline, he said it's not so bad as to leave homeowners owing a lot more on their mortgage than their property is worth.

Shaughnessy said Ulster Savings Bank generally does not have any foreclosures in a typical year. "We try to do everything we can to avoid foreclosure," he said. This year, though, the bank has foreclosed on six properties in Ulster County, three in Orange and two in Dutchess. Shaughnessy said part of that was due to the bank's conservative lending practices and the other was the home values not declining as much as other areas.

Additionally, Shaughnessy said, there is still a lot of activity in the homebuyer market. He said his bank through the end of October handled about 1,825 home mortgages. Typically the bank handles about 1,200 a year, Shaughnessy said. The difference is due in part to the government's refinancing plan for Freddie Mac and Fannie Mae loans, and the offer of tax credits.

"That has definitely helped our volume," Shaughnessy said, adding that the programs have also helped shore up real estate values.

Joan Lonergan, principal broker of Coldwell Banker Village Green Realty, said she too has seen the market "come back in a healthy way." Prior to the 2008 presidential election, sellers had a difficult time and buyers seemed skittish. Lonergan said that has changed and, as long as the area does not see a significant increase in unemployment, the housing market should continue to stabilize or decline only slightly.

Lonergan said current housing prices on average seem are about what they were in 2003, and buyers are feeling more stable about investing. The number of new foreclosures, she said, do not seem to be "coming on as fast and furious anymore."

Lonergan said many clients are excited about buying in the Hudson Valley area because "It's less expensive and it's beautiful." She said they can own a home in the area and still keep an apartment in New York City, for example. Buyers can get more for their money and the housing market is less volatile, she said.

She estimates it will be four to five years before the market starts to see an increase.

John Greenan, executive officer of the Dutchess County Association of Realtors, said his organization has seen sales volume increase over the past several months as well. He said there is a lot of inventory on the market and buyers can afford to be picky and negotiate more. Greenan said he believes home prices will continue decline into 2010 before leveling off and increasing again.

Most of the homes being sold in Dutchess County range in price between $200,000 and $300,000, Greenan said. He said there is very little movement on homes costing more than $400,000. Greenan said as the inventory decreases, the prices for homes will increase, bringing the market back up.

Here are some answers to common questions about the new rules.

Q: What has stayed the same in the new law?

1) First-time home buyers still get a credit of as much as 10% of the purchase price, up to a maximum $8,000. "First-time" means people, including both partners of a married couple, who haven't owned a principal residence for three years before the purchase.

2) All taxpayers who claim a credit must use the home as a principal residence for the next three consecutive years.

3) The credits offer dollar-for-dollar reductions of tax and are refundable. This means that a taxpayer who doesn't pay enough tax to offset the credit can get a refund. For example, if you qualify for an $8,000 credit but only owe $5,000 in tax, you could receive a $3,000 check from the Internal Revenue Service.

4) Under the new law, as under the old, 2009 home buyers may claim the credit on either their 2008 or 2009 returns, and 2010 buyers may claim the credit on either their 2009 or 2010 returns.

5) Taxpayers do not qualify for a credit if they buy from a lineal ancestor or descendent, including parents or grandparents and children or grandchildren.

Q: What has changed?

Several important features took effect as of Nov. 6:

1) To take advantage of the tax credits, a buyer must have a contract in place before May 1, 2010, and the deal must close before July 1, 2010. No further extension is expected.

2) The price of the house is now capped. For purchases made after Nov. 6, no credit is available for any home costing more than $800,000.

3) There is now a tax credit for repeat buyers as well as for first-time buyers. Taxpayers who have lived in one residence for five consecutive years of the past eight can now qualify for a tax credit of as much as 10% of the purchase price, up to a maximum $6,500, of a new principal residence. The new home does not have to cost more than the old one.

4) Income limits for people who qualify for a tax credit are far more generous than under the previous law. For single filers, the credits now phase out between $125,000 and $145,000 of modified adjusted gross income; for married couples, the range is $225,000 to $245,000. For most people, modified adjusted gross income will be the same as adjusted gross income.

5) The new law contains anti-abuse measures designed to stem fraud, which became a problem with the previous home-buyer tax credit. Most buyers must be 18 or older, and no taxpayer may take a credit if he or she is claimed as a dependent on someone else's return. Taxpayers taking the credit will also have to furnish proof of purchase. According to Robert Dietz of the National Association of Home Builders, this will usually be a HUD-1 form.

6) People taking the tax credit, as under the old law, aren't allowed to buy a home from a lineal ancestor or descendent. The new law, applying to purchases made after Nov. 6, also says a person may not take a credit if the home is purchased from a spouse or the spouse's lineal relatives.

Q: If I bought a house last spring or summer, can I get a tax credit?

You qualify if you are a first-time buyer and meet the other requirements, but not if you are a repeat buyer. The new credit for repeat buyers applies only to purchases made after Nov. 6.

Q: What is the definition of "principal residence"?

If you own more than one home, your principal residence is usually the one where you spend most of your time. In determining residence the IRS may also consider where your family lives and your mailing address for bills and correspondence, among other factors.

Q: Can a principal residence be something besides a conventional house?                                                 

Yes. A principal residence may also be a condominium, co-op apartment, attached or semi-attached townhouse, or even-if it has eating, sleeping and toilet facilities-a boat, motor home or trailer. Manufactured homes qualify in some states.

Q: Does the person who claims the credit have to use the home as a principal residence?

Yes.

Q: If I buy a new home and live in it, do I also have to sell my old one in order to take advantage of the credit?

This is unclear. The law appears to allow repeat buyers to retain their old home, for which no tax credit was given, while claiming a credit for the new one. What is clear is that if you buy a new home using the credit, you must use it as your principal residence.

Q: How may the credits be allocated among two or more unmarried buyers?

This also is unclear. But if the IRS adopts the rules that applied to the previous tax credit, which are detailed in IRS Notice 2009-12, there is room for planning. The notice says that taxpayers may use "any reasonable manner" to allocate the credit. It even provides an example in which two unmarried buyers allocate the credit to the lower earner in order to qualify for it.

Q: I need the credit refund to help make the down payment. What can I do?

There's no rushing the IRS. But one option is to adjust your current withholding from your paychecks to reflect the fact that you will be taking the credit later. But be careful: If you don't make the purchase, then you may owe interest and penalties. Consult a tax adviser.

Q: Is it possible to qualify for a credit if I am building a home on a lot I already own?

Yes, according to the National Association of Home Builders. The purchase date is usually considered to be the date of first occupancy, so you would need to move in before July 1, 2010.

Q: May I take a credit if I am building a large addition to my home?

No; these credits apply only to the purchase of a home.

Q: Are there special rules for the military?

Yes. In general, members of the military and foreignservice and intelligence communities who are serving overseas on "official extended duty" for at least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of these credits. Consult a tax adviser who specializes in this area.

Q: Where can I get more information?

Go to federalhousingtaxcredit.com, a Web site sponsored by the National Association of Home Builders. You can also look for links from the IRS's home page, www.irs.gov, or search for Homebuyer Credit. Another option is to consult a professional tax adviser.

• The inside of the house. We don't stop at taking photographs of the bedrooms, kitchen, and living rooms from many angles. We also photograph the bathrooms, attic, basement, hallways, garage, fireplaces, wood stoves, the views from the windows, and any features that buyers might be interested in.

• The outside of the house. We take photographs from all sides of the house, including close-ups and distance shots. But we don't stop there. We photograph the doorways, walkways, decks, patios, and outside structures, such as the garage, barn, and shed. We walk the land looking for special features to photograph, such as interesting topography, views, waterways, stone walls, gardens, gorgeous trees, rock outcroppings, etc.

In order to take the best photographs, you want the best lighting.  We try to take our photographs on sunny days, and shoot at a time when the sun is in the best location for photographing the house.  We may start by photographing the front of the house, then shoot inside the house, and finish at the back of the house, once the sun is shining on the backyard.

We don't just take photographs of what we see.  Often there is work to do to prepare the shot.  Sometimes items need to be removed before the photograph is taken, so that the photo has a "cleaner" look.  Blinds and curtains may need to be opened, and lights turned on, so that there is adequate lighting.  Once the photographs are taken, we return everything to its original state. 

Sometimes, one has to climb into a closet, bathtub, or shower to get a "fuller" shot.  Some shots are taken at eye level, some bending down, or standing on a chair.  Sometimes, one has to walk up a steep hill, wade across a stream, or climb on rocks to get the best shots.  We do whatever is needed to take those special photographs to show off the beauty of the property.

Occasionally, we need to reshoot a room or an outdoor scene because we are not satisfied with the photographs we took.  And if that house that we shot in the winter, has not sold by the spring, we need to go back and take new outdoor photographs.  Team Ulster takes photography very seriously!

That's just the photography part.  There is much more to do before the photographs are ready to be seen by the public.  To be continued .......

Usually, there very first thing you have to take into consideration is your finances. Are you ready to engage in bigger financial obligation? Can you still manage to live a comfortable life even if you will pay a higher monthly amortization? These are some of the questions that you will have to deal with before you decide. It is very important that you assess your financial capability prior to entering into another endeavor. Bear in mind that this requires a huge amount of money. You do not want to end up being a candidate of foreclosure later on.

Knowing the exact reason why you want to move into a larger abode can also help you evaluate if it is really a valid one. If you simply want to be away from your current location, then you might want to try transferring to another house that has almost of the same size and value. This can be a lot better than pursuing your plan on getting a bigger one. It can be a shallow reason try to give up something that you have already established for a long time.

If you think that your place is too small because there will be an upcoming baby, then it can be acceptable enough. Of course kids need to have spacious area so they could move and play around. You do not want to have a messy and crowded place as soon as your baby comes out. It is best to give your kids a separate room so they can have their own privacy as well as learn to be more responsible in taking care of their own area.

Alternatively, when your reason for moving to a larger house is you simply want to reward yourself and family with a better living condition, then go for it. This is perfectly fine. Just keep in mind to make the necessary preparations before you begin the process of home buying. A good start is to contact your real estate broker and inform him about your plans of moving out. Tell him how big you want for a new house and what other features you are looking for. In this way, he can have enough ideas about what to consider as your prospects.

There is nothing wrong with planning to transfer into a bigger and better abode. If you think you are stable and capable enough to do it then go ahead. The big issue here is, if you only have limited budget and you are aiming for a larger place. This will be a bad undertaking for you. The best way you can do for now is save up so you can eventually pursue your dreams in due time.

As soon as you have decided to purchase a house, you start to look for the real estate broker. Or if you know someone already, you can ask for assistance. Contact him so you can discuss about the further details of your new home quest. If you happen to be living in a community where most of your relatives live there too, perhaps you can find somewhere within the boundary. This will maintain the closeness of your family.

Usually, when children begin to marry and move out from their house, they wanted to be near with their parents. This is because of the fact that you want somebody who you can run to immediately when problems arise. So this factor will help to narrow down your wide array of choices for houses for sale.

As it was said earlier, it will always be the price that can influence the decision of the homeowner. If you only are starting out or just have limited budget, then inform your broker about this issue. Though, he knows about it but it still pays if you are able to discuss matters like these to him. It will also aid him in screening the probable houses.

When you find the house that you have been wanting for, do not immediately give in to the deal. Conduct house inspection before entering into any agreement. You need to be aware of everything so you will not have regrets later on.

Aside from the location, price is something you also have to consider when you look for anew house. Depending on where you exactly want to stay, the property can either have a lower or higher value. Location can greatly affect the price of a particular house. Regardless of how simple a house can look like, if it is situated in a highly-developed city then expect it to be more expensive. That also goes the same with a very elegant home but is located in rural area, it can have a lower value.

Finding for a new house can really be a tough job. But if you know the key factors that affect your decision it will be a lot easier. You only have to discern what exactly you are looking for in your dream house. Once you have identified all of them, you can use them as your basis for assessing every possible property you can find. Do not forget to load yourself with enough patience when you do this process. Keep in mind that all your efforts and hard work will surely lead you to your dreams.

People who are interested in purchasing a home should do a review of their credit history. Get a free copy of your credit report online and see how good your credit is. If you have a good score then you will be approved for the best interest rates. People who suffer from lower scores need to worry about lenders rejecting their loan application. If you have a lower score you might want to wait until your score has improved before applying.

After looking up your score it is important that you start saving up for a down payment. People often don't realize that most lending establishments require you to put a payment down towards your home. You will probably have to come up with a significant payment in order to get a loan approved. Saving up between 5-20% is the usual range for most down payments.

After you have saved up for a down payment you can then look for different lenders to approve your loan. Finding the right lender is important because it will ensure that you get the best interest rate on your loan. If you are looking to get a first time home buyer mortgage you can look for different mortgage brokers that are available. A good broker will be able to determine whether or not you qualify for a loan. After you have been approved you can start looking at homes to purchase.

What's more, these questions will also help you determine if the sales person is on the side of the seller or you. In other words, if they are loyal to the seller or not.

In fact, if you are looking for a sales person to sell YOUR home, you could use these questions to test where their loyalties really lie.

If, when you ask the following questions, the sales person betrays the seller, you can be certain they will betray you as well. On the other hand, if they defend the seller and the seller price, they will defend you also, and hold firm on YOUR price.

Here are the questions:

You see, when you sell your home, the price you get for it will not necessarily be the price you can spend on your new home... unless of course you have some cash stashed away somewhere.

Why? Because when you are buying or selling a home, there will be expenses which will need to paid for, such as:

Real Estate Fees

Legal Fees

Moving Costs

Loan Application Fees

Inspection Fees

So once you sell your home, don't assume that your sale price is what you will end up with in your hand. Make sure you allow for the extra costs.

If you are not sure of these costs, get in touch with your lawyer, your bank, the removal company and your real estate agent and find out how much you will need to allow for.

If you find that you may not have enough money left over to buy in the price range you desire, then talk to your bank or lending institution and find out how much you can borrow.

Find Out Your Costs BEFORE You Start Looking

Once you have done the homework on your finances, you will know how much you can comfortably afford and the highest price you can go to.

If you are buying a home with the intention of living in it for several years, don't fall into the trap of focusing only on the bargains. Buying a bargain may feel good initially but if it doesn't have the features and benefits you want, it may not be such a bargain at all.

Instead, focus on the home itself. Look for the right home for you in the price range you can comfortably afford.

It's better to pay a little bit more for a home you will be happy with, rather than end up with a cheaper home that you don't like. Because getting out of a house you DON'T like can be very costly and time consuming.

When you are buying or selling a home, one of the most helpful things you can do for yourself is hire a realtor. You can always fly solo and find a home and go through all the paperwork, legalities, offers, and bank stuff alone, or you can hire a realtor and have a professional help you out throughout the entire process. This is a pretty easy choice. Not only will the realtor help you out with paperwork and whatnot, but they will also help look for homes according to your preferences and specifications. When looking to buy a home, you should definitely hire a realtor. This article will detail everything that a realtor may do for you when looking to buy a home.

The first thing that a realtor will do is get what you are looking for in a house and start looking for, and with you. This will help greatly because you may have to look at. If you do not have a realtor then you will have to look at every home you hear about, hoping it is what you want. If you do have a realtor, however then they will be able to look it up for you, and maybe even look at the house before you do, so you can know if it is what you want or not. It can take a lot of time and effort on your part without a realtor so it is best to let someone help you. During this process, the realtor will tell you everything there is to know about the property including utility costs, property value and even what schools and shopping is around the area. Without a realtor, it could be hard to come across this information, but with one, it is only one question away.

Then, after you find the home that is perfect for you, there is always a lot of money being transacted. A professional realtor will know exactly how everything is supposed to go. They will also determine fair market value for the home you are looking at. This will prevent you from getting a bad deal in buying the house. Then, after all of that is figured out they can help you get a loan. Realtors always have multiple lending options from you to choose from and they will help you pick the one that is right for you. They can also help you determine what you can and cannot afford in the home. This will help with the lending process as well. A realtor can help with anything and everything that has to do with finances or legal situations. If you ever have any questions throughout the process, do not hesitate to ask your realtor.

As you can see, there is a lot a realtor will do for you. Everything from looking for a home to handling finances, paperwork, and all the legal things can be helped with the realtor. Ask questions when you get a realtor and use all the help they can give you.

In the case of a traditional purchase (not a foreclosure or short sale) both the buyer and the seller want to feel as if they have "won", a check box on their victory score sheet is essential in the feel good process of buying and selling property. Buyers want to feel as if they have gotten a deal, the seller wants to feel as if they have not lost equity and value that they feel the property has.

So how do both parties win?

When considering writing an offer the sensitive and sensible buyer may want to consider what the seller is going to feel when they receive the offer. If the offer is based on actual comparables they should be included with the offer to show respect and research. If the offer is not based on comps but purely on budget, then write a letter of explanation to the seller or present this to the agent, make it respectful. Respect is key in this market where emotions are running high, equity and financial gain has been lost by sellers across the board and buyers are trying to get their foot in the door for the next big real estate rise in equity and take advantage of interest rates as well as incentives.

When selling your property and getting offers that you feel are low consider having an updated market analysis done and then ask your agent to show you comparable properties that are on the market, drive by recently sold or pending comparables, consider the true market value as if you were the buyer, look at your home or property as a product at the store, upon review in the current market statistics, days on the market, average reduction in value each month, stop and consider that the buyer has done the same and most buyers are forward pricing their offers, in other words they are offering what it will be worth in 6 months or 12 months at the current rate of decline. Also keep in mind that the improvements you have made to the property might be valuable to you personally, fit your taste to a "T" but not have any real value to the buyer - after all beauty is in the eye of the beholder in real estate as well. Some Improvements have a common value, like updated bathrooms and kitchens, but swimming pools, views and cosmetic things like faux finishes, wallpaper, window coverings and etc. are strictly personal taste and choice so they may be a detriment and not an asset, don't get hung up on the emotional content of such things, keep the big picture in mind.

There is more to negotiate that just the bottom line and sometimes this is where the seller can feel they have gained some lost equity back. A partial short term owner financing can be safely negotiated and especially in the case of interest only the seller can make back equity lost on interest, defer the total amount of gain for tax purposes and manage to sell I n a market where foreclosures and short sales are the primary properties selling. Closing costs is another area to negotiate where you may be able to win on either side, either by asking the seller to pay for all the closing costs so you have less money to put down or by the seller offering to pay because it comes off their gain and tax base. For buyers it can be advantageous to offer a lower price but pay the closing costs totally because it keeps the property tax base lower and that is a long term benefit.

At the end of the day, whether you are the buyer or the seller you will always gain most from a respectful, courteous transaction so take the proverbial walk in the other's shoes and consider their feelings before you write the offer or respond to it and you just may find that there is a way for everyone to win something and we as agents need to help that along by working as a team and bypassing the adversarial stances that can evolve so easily. Successfully closing the transaction with the buyer and seller both feeling that they have won is a win win for us as well.

Here are some tips to make your agent prioritize you:

1. Show your motivation. Let your agent see that you are serious in buying a new home. Give your target move-in date and explain your reasons for moving. A realtor that sees a very motivated buyer will devote more time to that client.

2. Get pre-approval. Agents love hearing that their clients are already pre-approved for a loan. This gives specific information on how much you can actually spend and will tell you if there's anything that needs to be cleared up. Bring this pre-approval anytime you are meeting sellers and always come equipped with your mortgage broker's contact information. If the seller can also see that you are pre-approved, they would be more likely to entertain your offer.

3. Meet in person. While you can definitely work with an agent through phone only, it's much better to see them in person at first. This will give your realtor a face to associate with your name, and is a good opportunity to establish rapport in your business relationship. You can also show any relevant documents for review.

4. Be honest. The agent will want to know if you can really qualify for the property you are interested in. This means it's especially important not to hide any details that might affect your credibility. The agent will need a very clear idea of your needs, your situation, and any special circumstances to get you the best home possible. This also flows both ways. If you feel that your agent is not being honest with you, consider finding a replacement.

5. Keep in contact. Have all lines of communication open, phones, fax, email, etc. Discuss at the beginning how often you wish to be updated, and stick to it. This will give your agent a timetable in which to come up with something for you everytime an update is forthcoming.

6. Open up to suggestions. You would be very lucky to find a home that's 100% perfect for you. There will be a need for compromise so be open to your agent's suggestions. Be clear in what's absolutely essential and be prepared to take alternatives. Being too picky and unreasonable can make your relationship with the realtor very frustrating on you both.

Basically, you want your realtor to always keep you in mind so that your search is constantly progressing. Though your agent is working for you, it's important to give back necessary information and feedback so that they can assist you better.

Yes, the inspection can seem a bit costly and time consuming, but it can literally save you thousands of dollars if the inspector determines that there are major structural flaws in the home which will need immediate correction. Consequently, it stands to reason that you will want to find a very professional, ethical and competent home inspector so that the inspection done on the home you are going to buy is as thorough as possible.

You can accompany the home inspector while the inspection is being conducted so that you can ask questions and stay as informed as possible about any damages or defects that the home may have. A typical home inspection will take a look at the air conditioning and heating, electrical systems, plumbing, floors, ceilings, roof, windows and foundation. The inspector will also take a look in the attic or basement, if it is applicable and the cost of the inspection will generally depend on the size of the home.

What will be most important to you is the home inspection report. If the home inspector you hired is professional, ethical and competent, you will receive a full report detailing the findings of the inspection. These findings must be detailed and thorough. They should include what is defective with the house you are thinking of buying, why it is defective and repair estimates. Ethics of the profession and sometimes law prevent the inspector from sharing the home inspection report from any other party without your full consent, which is why it is vital to hire an ethical and professional home inspector.

If the report does not contain repair estimates, then it would be worth your time and effort to get repair estimates. You will need repair estimates, along with the home inspection report, in order to renegotiate with the seller if the inspection finds that the house your are trying to buy has major structural defects. A word of caution: Any contract for the purchase of a home should contain a clause that will make the purchase contingent on the findings of the home inspection. If not, you might get stuck buying a home with major structural damage and you may end up paying thousands more to repair the flaws. A home inspection contingency will give you an out if the seller is not willing to negotiate the sale price and the inspection finds that the home will need costly repairs. As a buyer, you have every right to negotiate after the home inspection, and you also have every right to decide not to purchase a home which is found to have major structural flaws.

Here are the most important things that need to be done by you to make an informed decision, no matter what gossip is going around. Don't make any decision without first doing these things because if that is done, then it may be a decision that is later regretted.

1. It is imperative that time is taken for research. You don't want to try and buy a home these days without knowing anything about it. This is a huge mistake that too many people are making. Use the internet to educate yourself on the current interest rates and the interest rate trends, buying power and anything else that you come across that needs to be known. Knowledge is the best way to make an informed decision.

2. Determine what your budget is for a mortgage payment each month. This is very important because if you can make the monthly payment to purchase a home, then it is not the best decision for you. There is a calculator, also known as a mortgage calculator that will allow anyone to easily determine the monthly payment for different priced homes and different interest rates.

Find the area where you want to live and find out what the prices for those homes are. This will help determine more accurately what your payment would be every month. It is a good idea to talk to a real estate agent about homes in a certain area because they can provide a lot of useful information about a particular home. This doesn't mean that you have to use them to purchase the home; just for fact gathering.

Buying a home is a very big decision and should not be made lightly. By doing these important things, you can make an informed decision about whether now is the time to buy or to wait for a better time. By determining a lot of different factors, anyone can determine if now is your time to own a home, or if some time in the future would be the best choice.

If you plan on renting out your home when you move and hold the property long term, you'll build equity and get to write off your mortgage interest, insurance, property taxes, maintenance, depreciation, etc.

Here are some pros and cons of renting:

Pros:

Flexibility (can relocate easily)

Can invest money elsewhere

No upkeep fees (dripping faucets, broken dishwashers, etc.

Cons:

No Equity Annual

rent increase could outpace inflation

Pros and Cons of Buying:

Pros:

Tax-break: deduct mortgage interest and property taxes

Potential tax-free capital gain

You set your own rules when owning your home, not the landlord

Cons:

Less flexibility should you want to move;

in very bad housing markets, you could be upside down.

Mortgage Costs

In Conclusion, if you plan on turning your home into an investment property, take the plunge and enjoy homeownership! If you plan on selling your home in 2-3 years, it may be best to continue renting. It's really hard to predict where home prices will be in the next few years. I believe the market has already somewhat stabilized and home values will begin to appreciate with inflation again, albeit we are in a deflationary period. The latest CPI released was -0.8% year over year, but on a higher note, it has risen 1.0% month to month.In translation, although we're in a pretty good recession, the economy as a whole is beginning to slowly recover.