Category Archives: Westchester NY

6 Reasons Why Your Home Isn’t Selling | Waccabuc Real Estate

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Wondering why your home is still sitting on the market after weeks-or even months-of showings? Can’t figure out why your open houses are well-populated but nothing ever comes of them? Or maybe no one is coming to your open houses at all?

It’s easy to get frustrated when your home isn’t selling and you don’t know why. Which is why we’ve rounded up 10 of the top reasons houses sit on the market. Chances are no one’s biting because

Your home is really only worth what people are willing to pay for it.

you’ve committed one (or more) of these mistakes. Identify which ones they are, do the work to set them right, and you could be signing on the dotted line in no time.

1. It’s priced way too high. Like or not, the market dictates how much you get for your home-regardless of how much you think you’re home is “really” worth. Buyers will be looking at comparable homes in your area and seeing how yours stacks up, and if your asking price is much higher, it will work against you.

Remember, your home is really only worth what people are willing to pay for it.

2. Your timing is off. More people house-hunt in the spring, summer and early fall than they do in the winter. It’s simply a matter of convenience — no one wants to trek from house to house in the snow and freezing temperatures, and even if they find a house they like, no one wants to move in at that time, hauling cardboard boxes across snow and ice. Unless they need to find a home ASAP, many put their searches on hold over the winter.

That’s not to say you can’t sell your home during the wintertime, but you need to take the season into consideration. Offering incentives (like a $500 credit towards moving services) and targeting buyers who are on a similar deadline can help.

3. Buyers can’t find it. More and more buyers are searching online, and if your home isn’t listed in all the places they’re looking, they could be passing you by. Make sure your home is listed on major real estate sites like Homefinder, Zillow and Trulia, as well as on the multiple listing service (or MLS) used by realtors.

4. Your photos suck. When buyers do find your home’s listing, your photos (or lack thereof) could be sending them away. Buyers want to get a good feel for what a home has to offer before they decide to arrange to visit it in-person, and they can’t do that if you have no photos, few photos, or photos that are of a very low quality.

Include plenty of shots of the major areas of your home, as well as what the front and back exterior look like. Highlight any special selling points. Make sure these photos are well-lit, in focus and show off your home at its best.

5. It needs some work. While some buyers may be willing to take on a “project,” the majority of them won’t-especially if you’re asking the same price as homes that don’t need any repairs. From big things like a leaky roof to little things like a leaky faucet, you don’t want your buyers creating a running list in their head of projects they’ll need to take on if they buy your home.

Fix everything you can before you list so that when buyers tour your home, they can focus on the home and not how much it will cost them in repairs.

6. It’s got too much “you” in it. Roman statesman Cicero once said that people fail because they “refuse to set aside trivial preferences.” Apparently, he would have been a great at selling homes.

You want people to be able to picture themselves living in your home, and they can’t do that if too many of your personal touches are on display.

Get rid of those family photos on the mantle in the living room and your kids’ drawings tacked up on the fridge. Repaint bold-colored walls a more neutral tone. Remove any statements pieces that aren’t to everyone’s taste. If you’re a big collector, take some of your souvenirs and knickknacks down and box them up for your next home.

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http://realestate.aol.com/blog/2014/11/04/reasons-why-home-isnt-selling/

 

Mortgage applications continue to slide, down 2.6% | South Salem Real Estate

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Mortgage applications dropped again this week, falling 2.6% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending October 31, 2014.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 3% compared with the previous week.

The Refinance Index decreased 6% from the previous week.  The seasonally adjusted Purchase Index increased 3% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 13% lower than the same week one year ago.

The refinance share of mortgage activity decreased to 63% of total applications from 65% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.4% of total applications.

The FHA share of total applications increased to 9.5% this week from 8.9% last week.  The VA share of total applications remained unchanged at 10.7% this week and the USDA share of total applications remained unchanged at 0.9% this week.

 

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http://www.housingwire.com/articles/31954-mortgage-applications-continue-to-slide-down-26

Dreamy 1830s Abode Was a Stop on the Underground Railroad | Katonah Real Estate

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4470KatherinesWay1.jpg

Location: Westerville, Ohio
Price: $1,250,000
The Skinny: Several homes in the northeastern Columbus suburb of Westerville, Ohio, were stations on the Underground Railroad. One of them, an updated five-bedroom with a spiffy columned facade, some beautiful mounted panels rescued from the LeVeque Tower, a Jeffersonian-looking dome topped with a skylight, and a 1930s schoolhouse outfitted for guest accommodations, was put on the market just the other day.

The oldest sections, which were built in 1830, according to the marketing material, have a healthy amount of exposed brick that’s since been balanced out by large windows and glass doors in the rear of the home. Much of the yellow pine and walnut woodwork is original, and there’s vintage tiling in a few of the bathrooms. With a pool and an expansive brick patio, facing out on a about five acres with “mature trees & landscaping,” this handsome historic hodgepodge is priced at $1.25M.

 

 

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http://curbed.com/archives/2014/11/04/westerville-ohio-underground-railroad-home-for-sale.php

Liberal Politics Raise Housing Prices | Bedford Real Estate

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A post at Trulia called “Blue Markets Face Bigger Housing Challenges Than Red Markets” has been generating interest in media outlets typically read by blue voters, like The Atlantic and the Washington Post. The Post even considers itself “startled” by the connection between cities with liberal politics and higher housing prices:

Between these two poles, though (metro San Francisco voted for Obama by 58 points, metro Knoxville for Romney by 34 points), the relationship between housing affordability and politics across the country is startlingly strong.

But for those of us following the ongoing struggle to deal with rising housing costs in the city, this isn’t startling at all; in fact it makes perfect sense. As Megan McArdle points out in her take on the Trulia data, density (more people living in a smaller area) tends to bother people who already live in a city. Those that got there first are tempted to close the door behind them.

Density also multiplies the frictions over things such as noise, pets, public amenities and so forth that people have to put up with. Which increases the pressure for a resolution via the law…Consider, too, that the liberal base is composed of a large number of small interest groups with a long and successful history of lobbying government for laws. Those groups have paid a lot of attention to enabling this sort of action, making sure that their local political institutions have lots of avenues by which small groups can affect the legislative process. Everything has extensive community review, and it’s easy for local groups to file lawsuits that block some undesirable project.
Strategy and tactics in liberal politics was born out of organizing the mass movement, getting bodies into rooms where decisions are being made and using the pressure of large numbers of people, and when necessary, law suits to win. What happens in cities where there are lots of liberals is that when it comes time to grow the population, and things change and maybe get uncomfortable, the resolution is to organize for restrictions on the development and construction of new housing, policies that raise rents. And oddly, this means using the tactics pioneered by Saul Alinsky not to push for more building and more housing choice for renters and new people, but less by erecting more rules, taxes, and fees. Red and Blue Chart What’s ironic is that the more liberal cities agitate about the cost of housing, the more rules, fees, and taxes they propose. I’ve called this dynamic the “San Francisco Death Spiral,” a pattern of pressure by existing residents to make more rules on new housing because new housing is too expensive which results in higher prices and thus more agitation. The claims about gentrification and income inequality that seem to beleaguer bigger, liberal cities also are used to support the arguments for more limits on market rate housing and taxes on it to “solve” the housing problem. What’s encouraging about the Trulia data and graphics is that perhaps it will cause some soul searching among elected officials in liberal cities. Maybe those leaders might at least consider the idea that raising costs and limiting supply really do contribute negatively to housing prices. What’s needed in liberal cities is an economic and ideological reset: you can support taxes and regulation and government spending to solve social problems and also support the idea that sometimes reducing some or all of those things can solve social problems too. As liberal cities grow because they are progressive, open, and support diverse lifestyles, maybe their housing policies can be open and progressive too.

 

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http://www.forbes.com/sites/rogervaldez/2014/11/03/liberal-progressive-politics-raise-housing-prices/

Buying Real Estate as an Immigrant to the U.S. | Bedford Hills Real Estate

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The housing crisis may have tempered some enthusiasm for homeownership, but many people still consider putting down roots and buying a home to be part of the American dream. This is especially true for immigrants to the U.S. In fact, they accounted for nearly 40 percent of the net growth in homeowners between 2000 and 2010, according to a report by the Research Institute for Housing America (compare this with the 1970s when they represented just over 5 percent of the growth).

But the path to homeownership isn’t always easy for newcomers. Here a look at the challenges permanent or nonpermanent resident aliens with work visas or green cards sometimes face.

Language barriers. Many immigrants are fluent in English, but for those who aren’t, discussing complex mortgage or real estate terms can be a lot more complicated than exchanging pleasantries at the grocery store or completing a transaction at the post office. For instance, Jeff Riber, a broker and owner of ERA Heavener Realty in Jacksonville, Florida, worked with two couples who immigrated from Bosnia: a daughter who was fluent in English and her parents. “She was having to run point on the entire process for her parents,” he says. “If you don’t understand the terminology, it’s unnerving.” That’s where having a trusted friend or family member to translate can help, especially if the person has been through the homebuying process.

Qualifying for a mortgage. Noncitizens working in the U.S. can qualify for traditional mortgage financing, but because lenders look at U.S. credit histories, those new to the country may not have enough time to build a credit history. With government-backed loans requiring full documentation, lenders generally want to see at least two years of U.S. tax returns from borrowers, including nonpermanent residents (those who have a valid work visa but not a green card yet), according to Rob Spinosa, a Mill Valley, California-based mortgage loan originator with RPM Mortgage. If, for instance, you have been working in the country long enough to file 2012 and 2013 tax returns, you might qualify for a mortgage backed by Fannie Mae or Freddie Mac. Having a relationship with an international institution that offers U.S. mortgages could also help secure a mortgage from that lender.

If not, you might still qualify for a loan from a portfolio lender — a company that originates mortgages and holds a portfolio of loans rather than sells them on the secondary market. As Spinosa explains, these loans typically come with a lower loan-to-value ratio (meaning you might not be able to borrow as much money), a different set of underwriting guidelines and a slightly higher interest rate. He adds that these lenders typically charge a variable interest rate rather than a fixed rate.

The process is a bit different for a non-U.S. citizen who wants to buy an investment property but doesn’t have a Social Security number tied to a credit report. “For us to get an approval for a foreign national, we are checking references for employment and credit references in the country of origin,” Spinosa says. A nonpermanent resident might also use this approach instead of waiting for two years of tax returns.

Of course, establishing credit and showing tax returns is less important if you’re paying cash, which some newcomers do. “There is lending available and they do take advantage of it, but it’s not their mentality [to take out a mortgage],” points out Reba Miller, owner of RP Miller Realty Group, a New York agency with over $1 billion in residential transactions. “It’s more of an American mentality.”

Michael Barbolla, head of Rutenberg Realty, one of New York City’s largest real estate brokerages, has seen several recent cash transactions involving foreign investors. “In many of these new buildings, they’re paying cash, and as long as there’s some verification of assets, the deals can run very smoothly,” he says.

 

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http://finance.yahoo.com/news/buying-real-estate-immigrant-u-152517779.html

Rate on New Home Loans Stays Just Above 4 Percent | North Salem Real Estate

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Earlier today, the Federal Housing Finance Agency (FHFA) reported that mortgage interest rates declined in September.  That was true as well for the subset of mortgages used to purchase newly built homes, but the changes were very small.  On conventional mortgages for new homes, the average contract interest rate edged down by just 2 basis points, to 4.11 percent.

Contr Rate Sep14Meanwhile, the average initial fee on mortgages used to purchase newly built homes dropped from 1.15 to 1.09 percent—the lowest it’s been since August of 2013.

Fees Sep14However, the decline in the average fee was not enough to drive the average effective interest rate (which amortizes the initial fee over the estimated life of the loan) down by more than 2 basis points, to 4.23 percent.  Except for these minor fluctuations, the average terms on conventional new home mortgages have been stable for the past four months.

Eff Rate Sep14Also in September, the average price of a new home purchased with a convention loan, and the average amount of the loan, both increased. The average loan amount went from $314,200 to $319,800, while the average new home purchase price went from $411,800 to $422,300.  Each has been hovering within a relatively narrow band since March.

 

 

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http://eyeonhousing.org/2014/10/rate-on-new-home-loans-stays-just-above-4-percent/

 

Home Improvement Project Prep | Waccabuc Real Estate

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We’ve all heard horror stories about home improvement projects gone wrong. In fact, many of us have likely lived through renovations and the headaches they can entail, including delays, shoddy work, unacceptable messes and fights with contractors.

For most people, buying a home is the biggest financial investment they’ll ever make, and, understandably, homeowners want to keep their dream home feeling as fresh as the day they got the keys. But before you embark on a project to update your kitchen, spruce up your bathroom or switch out the paint and trim, it’s important to understand the legal issues you may encounter with a home improvement project.

Is a contract really necessary?

The simple answer is yes. Legal advisers strongly suggest homeowners sign a contract with any contractors that, at the very least, outlines the following:

  • The scope of the work and total price
  • The legal name of the parties and the physical address of the contractor
  • The contractor’s license(s) and tax ID number
  • The labor and materials being provided to complete the job
  • The timeframe in which the project will be completed
  • The homeowner’s responsibility, which may include the selection of fixtures, paint colors, etc.
  • The days and times the contractor(s) will have access to the property.

North Andover, MA attorney Ramsey A. Bahrawy says it’s important to list the start and end date in the contract. “If the contractor does not substantially finish the work by the date stated in the contract, he can be penalized a specified amount for each day he is late,” Bahrawy says.

If the contractor will be using subcontractors, the contract should state that all contractors and subcontractors are registered, and their license numbers should be listed in the contract so a homeowner can inquire about them if needed, Bahrawy adds.

Chicago attorney John R. O’Brien, who has 30 years of experience in construction litigation, says the contract should also specify that contractors are independent contractors and not employees of the homeowner.

Confirm that workers are insured

“Each contract should also require the contractor to carry workers’ compensation insurance and show the homeowner proof of insurance,” O’Brien explains. “For larger jobs or more hazardous ones (like roofing), have the contractor get an endorsement on their workers’ comp insurance listing the homeowner as an additional insured.”

Call the insurer to verify that the policy is still in effect

If workers are injured while on the job, who is liable?

Injuries to independent contractors and their employees are generally not the property owner’s responsibility. However, exceptions could occur, such as if the owner told the contractor he would turn off the electric power to the work area and then didn’t, or if he told the contractor’s employee to use the owner’s rickety ladder. If the contractor or employee was injured in such a circumstance, the homeowners insurance policy likely would cover it, O’Brien says.

Bahrawy urges homeowners to call their insurance company to ensure their homeowners insurance covers such events.

Krista Dawkins, partner at Pyka Lenhardt Schnaider Zell in Santa Ana, CA says it’s wise to choose contractors who have their own workers’ compensation insurance. If they don’t offer workers’ compensation, it may mean they’re using laborers who are not legal residents of the state.

“A savvy homeowner would ask, ‘Do I want to run the risk of going with a cheaper, uninsured, fly-by-night operation because I have my own homeowners insurance, or spend more for a contractor that includes workers’ compensation insurance as part of his business plan and margins?’”

Make sure you’re covered for contractor damage or issues

Be sure every contractor has general liability insurance in addition to workers’ compensation insurance. Again, you can call the insurer to determine that the policy is in effect and get details of the type of coverage and deductibles.

Bahrawy says homeowners should also protect themselves from subcontractors or employees who have not been paid by the contractor. “That person can place a mechanic’s lien on the homeowner’s property to protect his or her right to payment. The contract should include a clause that will hold the homeowner harmless from claims by employees and subs.”

O’Brien says this would apply to any job that includes subcontractors.

 

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http://www.zillow.com/blog/cover-legal-bases-home-improvement-162553/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ZillowBlog+%28Zillow+Blog%29

Huge Downward Revision In August New Home Sales | Armonk Real Estate

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New home sales were flat in September after a big downward revision to August’s report.

New home sales rose 0.2% to an annualized pace of 467,000 in September, while August’s blowout number was revised down to a pace of 466,000 from a prior report of 504,000.

Expectations were for new home sales to fall 6.8% in September to an annualized selling rate of 470,000, down from August’s 18% increase to an annualized rate of 504,000.

According to the latest report from the Census, the median home sales price in September was $259,000 and the average was $313,200.

The report also showed that the current rate of sales represents 5.3 months supply at the current sales rate.

In a note to clients following the report, Ian Shepherdson at Pantheon Macro wrote, “I n one line: Revisions mean no clear breakout from the range yet.”

Shepherdson added, ”  Given the size and frequency of large revisions to the data, we wonder why the numbers are published so early; they’d be much more reliable if  they were released with a longer delay. Taking the revisions into account, we cannot now say with any conviction that sales have broken definitively above the 400-to-460K trend in place since late 2012, though the rebound in the NAHB survey over the summer suggests it is just a matter of time.”

 

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http://finance.yahoo.com/news/comes-home-sales-133706795.html

U.S. new home sales up in September | #Waccabuc Real Estate

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Sales of new U.S. single-family homes rose to a six-year high in September, but a sharp downward revision to August’s sales pace indicated that the housing recovery remains fragile.

The Commerce Department said on Friday that sales increased 0.2 percent to a seasonally adjusted annual rate of 467,000 units, the highest reading since July 2008. August’s sales pace was revised down to 466,000 units from 504,000 units.

Economists polled by Reuters had forecast new home sales at a 470,000-unit pace last month.

New home sales, which account for about 8 percent of the housing market, tend to be volatile month to month and large

revisions are not unusual. Compared to September last year, sales were up 17 percent.

Housing is slowly regaining its footing after activity stalled in the second half of 2013 as mortgage rates soared.

With the 30-year fixed mortgage rate this week falling to its lowest level since June of last year, sales could pick up.

Slow wage growth, however, remains a constraint. Data this week showed sales of previously-owned homes touched a one-year high in September.

Last month, new home sales fell 8.9 percent in the West, handing back some of August’s 28.1 percent surge. In the

populous South, sales rose 2.0 percent, while they increased 12.3 percent in the Midwest. Sales were flat in the Northeast.

 

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http://finance.yahoo.com/news/u-home-sales-september-august-140503880.html

Home Price Growth to Cool to 3 Percent in 2015 | Bedford NY Real Estate

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Usually when an asset starts to grow in value less quickly than it had before, it’s a bad sign. When it comes to the U.S housing market, however, analysts say it means healthy stabilization.

Home prices in the U.S. continued to decelerate in the third quarter this year, growing 6.5 percent from the same period in 2013, according to a report released Thursday from Zillow. The average home price was $176,500.

The annual rate of appreciation peaked at 8.1 percent in April and has fallen every month since then, quelling fears of a bubble in certain markets. Prices will continue to cool as certain market fundamentals, like job and wage gains, replace factors like decreased home supply and widespread investor activity that have driven price gains since the housing crisis.

“We’re transitioning from a fast form of recovery to a slow form of recovery, particularly since a lot of those factors driving us forward – household formation rates and income growth – have not fully recovered,” says Stan Humphries, Zillow’s chief economist.

Typically in the U.S., property prices rise 3.5 percent per year, Humphries says, and since about the middle of 2013, they’ve gone up 6 to 8 percent a year.

“Because 65 percent of us own homes, we tend to value it when homes appreciate quickly, but that’s really bad for people who are not in the market … buyers. For them, really high price appreciation makes homes less affordable,” Humphries says.

The rate of home price appreciation decreased most in markets that had been considered the hottest during the housing recovery. For example, in San Francisco, home value growth slowed from 23.5 percent annually in the third quarter of 2013 to 8.2 percent over the past year. Zillow anticipates they’ll grow at 2.9 percent in 2015.

Changing market dynamics put more power in the hands of buyers than sellers, Humphries says. At the end of September, there were almost 19 percent more homes on the market than last year. Nearly 37 percent of listed homes on Zillow had at least one price cut in the past month, up from 33.6 percent in September 2013.

“Sellers have had their day in the sun for several years in a row now. It’s time to get back to a balanced market and for buyers to have their day,” Humphries says.

Brian Walters, a Redfin real estate agent who works in Alexandria, Virginia, has seen changing dynamics among his clients, too.
“It seems like buyers have definitely picked up on what’s going on in the marketplace a little bit faster than sellers,” Walters says. “They’re willing to go in and offer significantly lower than what would be expected to be successful offers that seem to pan out. They’re being a lot more aggressive during the home inspection period and asking for things to be repaired.”

 

 

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http://www.usnews.com/news/articles/2014/10/23/zillow-home-price-growth-to-cool-to-3-percent-in-2015