Tag Archives: Mount Kisco NY

Home sales dip, but tight inventories provide price support | Mount Kisco NY Homes for Sale

Sales of existing homes slipped from August to September but were still up strongly from a year ago — a sign that the national housing market is finding solid ground, the National Association of Realtors said today.

At a seasonally adjusted annual rate of 4.75 million, sales of single-family homes, townhomes, condos and co-ops were down 1.7 percent from August to September, but up 11 percent from a year ago.

September sales of existing homes were up 11 percent from last September with a seasonally adjusted annual rate of 4.75 million, which represents a slight dip of 1.7 percent from August’s upwardly revised rate of 4.83 million.

The 2.32 million homes on the market at the end of September represented a 5.9-month supply, down from 8.1 months a year ago. Many analysts view a six-month supply of housing as an even balance between buyer and seller demand.

Thanks to tight inventories, the national median home price was up 11.3 percent to $183,900 from a year ago, the seventh month in a row of annual increases and the longest stretch of annual increases in six years.

“We’re experiencing a genuine recovery,” said Lawrence Yun, NAR’s chief economist, in a statement. “More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest,” he said.

Low inventory will be a temporary issue, said Jed Kolko, Trulia’s chief economist. “Rising prices will get some homeowners back above water and willing to sell their homes, and tight inventory will encourage builders to keep ramping up new construction, bringing more new homes to market,” he said.

First-time buyers accounted for 32 percent of purchasers in September, up from 31 percent in August.

Foreclosures and short sales sold for 21 percent below market value, on average, and accounted for 24 percent of September’s sales.

All-cash deals accounted for 28 percent of September’s sales — up a percentage point from August and down two from last September.

Existing-home sales, September 2012

Seasonally adjusted annual rate4.75 million
% change from September 201111.0%
% change from August 2012-1.7%
National median price$183,900
% change from September 201111.3%
Unsold inventory (months’ supply)5.9
Share of all-cash buyers28%
Share of investor buyers18%
Share of first-time buyers32%
Share of distressed sales24%

Source: National Association of Realtors

All U.S. regions saw existing-home sales and prices rise in September from a year ago.

As was the case in August, the Midwest led the way in home sales with a 19.6 percent year-over-year increase to an annual rate of 1.1 million sales. The median price in the Midwest also rose in September from a year ago, up 7 percent to $145,200.

The South saw sales jump 14.2 percent from last September to an annual rate of 1.93 million. Median prices jumped, too, to 13.1 percent from last September to $163,600.

Home sales rose 7.3 in the Northeast on an annual basis to a rate of 590,000. Median prices in the region rose 4.1 percent to $238,700.

The West experienced a slight 0.9 percent yearly increase in home sales to 1.13 million, but saw the largest yearly median price jump of any region, 18.4 percent to $246,300, in September.

It pays to accommodate tenants in property sale | Mount Kisco NY Real Estate

Q: We’re going to be selling our building, which will involve brokers and interested buyers looking at our apartments. Several tenants think we should give them many days’ notice and consult them when scheduling visits. Do our tenants have the legal right to make these demands?

A: Putting up with rental applicants evaluating a home’s potential or dealing with buyers eyeing the property during a sale are hassles every tenant encounters eventually. But most states give tenants some protections — more than half have laws that specify how much notice a landlord must give before entering a tenant’s apartment. Common periods are two days or 24 hours. Some state laws are less useful, requiring “reasonable notice,” whatever that means. Notice requirements don’t apply to common areas such as the lobby, hallways and recreation areas. In these places, owners are free to bring visitors at any time and without notice.

So the first thing you need to do is to find out what your state law has to say about showing rentals to prospective buyers and tenants. But aside from your legal obligations to give adequate notice, let’s think about how you might accommodate your tenants in other ways, too. Don’t forget that uncooperative residents can have a real effect on how nicely your property shows — you don’t want grumbling residents pointing out deferred maintenance, do you?

Consider asking to meet with a delegation from the tenants’ group to discuss how this transition time can be made easier for them. Think ahead of reasonable requests that won’t seriously affect your ability to market the property, such as being willing to show the property at specified times and days. You might also consider modest rent reductions to compensate tenants for the disruption caused by the sale.

A savvy owner will make these concessions, realizing that cooperation by building residents is essential to marketing efforts and eventual sale — no seller wants to try to navigate a sea of resentful, gloomy residents, and no buyer wants to inherit a building full of angry people.

Q: I have been asked to sign a clause in a residential lease that states that the tenant agrees not to make any claims against the landlord for any loss or damage caused by “any accidents beyond the reasonable control of Landlord.” Is this legal? –Davey R.

A: Your landlord is attempting to avoid lawsuits brought by tenants who have suffered economic losses or injuries on the rental property. These claims often arise. For example, suppose your landlord fails to maintain a set of lobby stairs, and you fall and are injured. You might decide to sue for medical bills, lost earnings, and pain and suffering.

Fear not. In virtually every state, the clause in your lease would not bar such a suit. That’s because the clause shields the landlord only from claims that result from situations beyond his reasonable control. In our example, the monitoring and repair of the lobby stairs are obviously his responsibility, not yours, and not anyone else’s.

It might strike you as odd that landlords think it necessary to tell tenants that they won’t be held responsible for accidents that are beyond their reasonable control. After all, it stands to reason that we would make people responsible only for the mistakes that they could have avoided. But that common-sense conclusion will not stop some tenants from making a claim or suing, who think that any accident on the landlord’s property is the fault of the landlord.

For example, suppose the tenant parks in his assigned parking spot, but during the night a branch from a tree planted on the street breaks off and smashes his car. Thinking that because the damage happened while his car was parked on the rental property, the tenant demands compensation from the landlord or the landlord’s insurance company. In such a situation, unless the tenant can prove that the landlord somehow could have avoided the accident (Did the landlord know of the tree’s frailty and fail to warn tenants? Was the landlord legally obliged to monitor the tree and trim it?), the tenant won’t collect. But in the meantime, the landlord will have spent time and effort defeating the claim.

The clause in your lease is placed there to remind tenants that the landlord’s ability to avoid accidents is limited to those situations in which he has control. But don’t assume that the “control or not” question is always black and white.

In California some years back, a landlord was held liable when a tenant slipped and fell on a broken concrete pathway that led from the rental property to an adjacent street. Even though the landlord did not own the land under the path and could not have repaired it on his own, he was aware that his tenants regularly used it as a shortcut and failed to warn them of the path’s dangerousness. That was enough to make him at least responsible.

In the end, signing off on this clause will not defeat a valid claim brought by a tenant who claims to have been injured or economically damaged by the landlord’s carelessness. If the claim is bogus (suing the landlord for an act of God, for example), it will get tossed out of court. If the question is close, the court will resolve it, regardless of what the lease does or does not say.

Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of “Every Landlord’s Legal Guide” and “Every Tenant’s Legal Guide.” She can be reached at janet@inman.com.

How to Renovate a Heritage Log Cabin Interior | Mount Kisco NY Realtor

Renovating an old, heritage log cabin, DIY style (and inexpensively), isn’t really something I had on my bucket list.  Nor did I ever think I’d ever even live in one.  But in 2008 when I decided to pack up my son and finally leave the city to pursue my dreams of rural self-sufficient living, our old cabin was sitting there, waiting for us – and almost begging to be brought into the 21st century.

In case you haven’t read the story of our little cabin in the woods, it’s essentially this:  back in the mid-to-late 1990s, my dad found an old homesteader’s cabin while exploring the woods adjoining a piece of our family’s property and I was lucky enough to be able to buy it (or what was left of it) and have my dad step in to restore in 1998/1999.  At that time, it really was just a cabin, with a roughed in kitchen and no indoor plumbing.

Over the years, it served as a guest house (for visitors OK with sharing the outhouse with spiders!), and later, after a working bathroom was put in, a home for my brother for a few years, and finally a rental.  By the time it came for my son and I to call it home, it had been empty for awhile, with bats, weasels and mice living inside, and was in need of a serious renovation.  Being the city girl I’d become, I just didn’t see myself living in a rough, or as real estate agents coin it, ‘rustic’, cabin.  I wanted some style, some pizzazz, a home that would be featured in a magazine one day.

So we set to work, planning and visioning what it would look like by the time we moved in.  And there was a lot of work to do.  Paint, new furniture, new draperies and finishings, wood floor refinishing, modernizing the bathroom, and most importantly, a new kitchen.

Here’s what we did.

The Kitchen

The original kitchen was never meant to be used full time.  It was really rough, and not very serviceable (it had virtually no counter space).  As I worked through figuring out how I would put a brand new kitchen into an old log cabin and have it look like it belonged there, without spending a tonne of money, the guy who rents from us to have his carpentry shop on the property came to the rescue!

Log cabin kitchen renovation

Mitch is a very talented carpenter and craftsman, and he has some brilliant ideas for reusing materials and building one-of-a-kind furniture and cabinetry.  His thought was to design the cabinets so they looked like they’d been there all along – ‘cottage’ style, they call it.  So that’s what we – or rather he (I take no credit) – did.

He built all the cabinets from bits and pieces of wood he had in his supply, much of it recycled, and old louvered closet doors.  Then he applied many layers of different coloured paints he had lying around – mostly white shades and pale yellows – and finished it all with a rough sanding on edges and surfaces to give it that ‘aged’ look.  I think they turned out brilliantly.  They not only suit the cabin perfectly, but they didn’t cost much to build.

Finally, he added a custom-made spruce ‘butcher-block’ style countertop to accommodate the antique cast iron sink and drainboard, and the look was complete.

How to Protect Yourself Against Bad Landlords | Mount Kisco NY Real Estate

Bad landlords are bad news, and they come in many different types. They can make you hate living in an otherwise perfect apartment. However, it’s not easy to spot a bad landlord before you move in. Here’s how you can take steps to protect yourself, in case you’re stuck with one of the three most common types.

Type 1: The security deposit grabber

This landlord will consider your security deposit his from the get-go and will look for any excuse to keep your money when you move out.

Protection: Conduct a thorough walk-through before moving in.

Protect yourself against future problems before you move in. During the initial walk-through, make sure you document every flaw you find with your new apartment, even if it’s something that can’t be fixed, such as a stain on the countertop. Make sure to take pictures when you find something wrong, so you’ll have documentation. That way, if the landlord blames you for the problem, or tries to keep your security deposit, you have proof that the problem existed when you got there.

A few areas needing special attention:

  • In the living, dining and bedroom areas: Are hooks left on the wall from a past tenant’s framed picture? Even if they’ve been painted over, write it down. How about the carpet? If it’s worn out, write it down. Also, ensure all lighting fixtures, outlets and switches are in proper working order. Inspect doorknobs and doors, windows (glass, locks, check that all will open and stay open) and window coverings. Also, remember to look through the peephole; this will often get painted over.
  • Kitchen: Test every burner on the stove, plus test the oven. Inspect your refrigerator and freezer for cleanliness and dents and dings. Ensure that all of your cabinets will close, and that all of your drawers glide smoothly. Check countertops and cupboards for chips and stains. Check your dishwasher, sink and faucet. Finally, inspect windows, electrical outlets, etc, as you did in the living room, dining room and bedroom.
  • Bathroom: Check the shower for mildew, as well as the grout around the tub. Flush the toilet to make sure it runs properly and make sure it does not leak. Verify that the faucets work and do not drip. Make sure your towel bars are securely affixed to the wall, and that the toilet paper holder is in place. Again, the key here is to verify the basics of the room.

Type 2: The intrusive landlord

This landlord does not respect your privacy or boundaries.

Protection: Establish a cordial distance from the start.

One of the worst kinds of landlords is the one who feels free to stop by at all hours, ostensibly to check something in the apartment or maybe just for a friendly chat. This typically happens when you rent a single unit in a private house or in a small rental building, and your landlord lives on the same premises. The landlord tenant-relationship can get too close, and you lose your privacy. If that happens, it is difficult to re-cast the relationship without hurt feelings, and you may end up having to move.

Type 3: The non-responsive landlord

This landlord is nowhere to be found when the heat stop coming in or shower turns into a trickle.

Protection: Stay calm, firm and document.

Make sure you first approach your landlord (or property manager) in a calm, friendly tone. Explain what you need fixed. When you realize that no one is making an attempt to fix the problem, you know you are stuck with a non-responsive landlord and need to take additional action.

Additional up-front protection: If you live in a large building or apartment complex, try to befriend your maintenance person — a nice tip on the move-in day can really pay off! Usually the maintenance person will be able handle minor fixes, like unclogging toilets, draining air from the radiator or replacing hard-to-reach light bulbs. You may be able to bypass the landlord entirely.

However, for bigger and more expensive problems like a chronic leak in the ceiling when it rains or replacing a window that won’t shut properly, you’ll need to get the landlord or management company to approve and finance the fix. If they are unresponsive, don’t give up. Continue asking for the fix in a firm tone, but also start documenting every instance you contact the landlord (or management company).

If there is still no response, you need to send a formal demand letter (you can find templates online). Explicitly state the problem, the dates and times you have reported it to management, and their ignoring of your request or their denial to fix it. Then send this letter to the landlord’s business address, using certified mail with a return receipt. Unless the problem is serious (lack of heat or water, for example), give the landlord or management company 30 days to fix it. If that doesn’t work, send another letter. This time, give them 15 days. If still no response, repeat. The third time, give them seven days. Use certified mail with a return receipt every time. If nothing has happened, you now have the documentation necessary to take the landlord to court.

Hopefully, you’ll find a nice apartment with a good landlord, and you’ll never have to deal with bad landlords. However, as you move into your apartment, it does not hurt to take steps to be prepared if the landlord turns out to be less than perfect.

Apartment Demand Slows in Third Quarter | Mount Kisco NY Real Estate

Having recently participated on a panel at the National Apartment Summit, I had a chance to discuss drivers of demand and overall trends for the multifamily market. Investors are still bullish on the performance of the apartment sector, though they are concerned with the pace of job creation and the impact of sluggish economic growth on the under-35 years of age demographic. In addition to low wages, this group of traditional renters has also been contending with increasing education debt levels.

With payroll employment still stuck in second gear, demand for apartments has been slowing into the third and fourth quarters. Net absorption of apartment space—a measure of demand—is projected to be 54.830 units in the third quarter, with a year-end total of 219,318 units. This figure represents a noticeable improvement over last year’s demand numbers, especially in light of the supply trends.

Completions of new multifamily buildings have been rising, boosted by financing availability from Government Sponsored Enterprises. Supply of apartments is projected to total about 31,543 units in the third quarter and 80,000 units for 2012.

Given the strong demand of the past year, there’s still a gap of about 140,000 units between demand and supply of space in 2012. Vacancy rates have been declining, reaching 4.3 percent in the third quarter. However, with the slight decline in demand, national vacancies are expected to close the year at a level 4.3 percent. The local markets with the lowest availability rates are Portland, Minneapolis and New York with vacancy rates of 2.0 percent, 2.2 percent and 2.2 percent, respectively. At the other end of the spectrum, Memphis, Jacksonville and Houston continue to work through rates at or above 7.0 percent. Rent growth for office space has been positive so far and is expected to stay in the 4.0 percent range for 2012, although the underlying fundamentals are pointing to a potential slowdown.

Pro football scores big for real estate | Mount Kisco NY Real Estate

“Football is the great American pastime, and the Super Bowl is like the last great American campfire,” said Bev Thorne, Century 21’s chief marketing officer.

. “This was an outgrowth of that.”

The question was this: What is the impact on a city when the hometown team does well or doesn’t do well? Century 21 looked at teams’ successes, population growth from census numbers, home value.

appreciation and attendance rates. And the correlation between on-the-field success and real estate prices was evident:

Four of the five cities with teams that went from a losing record in 2010 to a winning record in 2011 saw average home.

sales prices increase between 2010 and 2011.

After winning the Super Bowl, Green Bay, Wis., saw a population growth of 1.7 percent in 2011, compared with runner-up Pittsburgh’s 0.6 percent growth.

Going from a record of 10-6 in 2010 to 2-14 in 2011, Indianapolis, the home of the Colts, saw a 19.8 percent decrease in home sales.

Eight of the nine cities with a team that had attendance rates of 100 percent or more in 2011 saw average home sales prices rise that year.

The biggest surprise?

“I guess for me, that it played out exactly as we thought,” said Thorne, a Packers fan.

As for Tebow, after he was drafted by Denver in April 2010, that city’s home value index.

grew 1.46 percent. Since he was traded to the New York Jets in March 2012, New York City has seen its home value index grow 3.87 percent.

“There are 73 million other factors that impact New York,” Thorne said. “But we’re ascribing them to Tim Tebow.”

Bundle Services to Save Big | Mount Kisco Realtor

In these tough economic times, perhaps you’re thinking about bundling some of your household services? And rightly so — it’s easy, convenient and could save you, well, a bundle.

Telecom services

You can typically get a discount on your phone, Internet and cable services when you bundle all three with one provider (which is why 1 in 3 surveyed Consumer Reports readers do it) and sign a one- or two-year contract, but you always need price it out individually, a la carte, just in case. To find out which company is offering the best service bundle in your area, go to lowermybills.com.

Banking services

As you are fully aware, many financial institutions are tacking fees on formerly free checking accounts. One way around this is to bundle: Sign up for other services that banks offer — such as direct deposit, online bill pay, etc. Having multiple accounts with one bank — and having a lot of money in them, combined (!) — is another way to dodge those pesky fees.

Insurance policies

Many insurance companies offer discounts if you buy at least two policies from them. Bundle your home and car policies, for example (a typical combination), and you could save as much as 25 percent.

Moving services

Did you see our recent study on moving habits? Among other interesting factoids: A whopping 21 percent of all movers spend $10,000 or more as result of their move! Not only is the process of moving expensive, but moving also drives surprise purchases — from electronics to cars! One way to save is to bundle. For example, some storage companies will provide you with a complimentary move if you’re storing with them for a certain number of months (and there may even be room for negotiation if you don’t meet their minimum monthly requirements, but you have to ask). That’s easily a $400-$500 discount.

NAR: Tight credit could limit boost from QE3 | Mount Kisco NY Real Estate

NAR: Tight credit could limit boost from QE3

The Federal Reserve’s latest stimulus plan will have a limited impact on housing if impending rules governing mortgage credit availability result in even tighter lending standards, the National Association of Realtors said in a letter to Federal Reserve Chairman Ben Bernanke today.

On Thursday, the Fed announced a third round of “quantitative easing,” or QE3, in which it will buy $40 billion a month in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac, and also continue to reinvest principal payments from its holdings of Fannie and Freddie debt and MBS.

The move is intended to keep downward pressure on interest rates, including mortgage rates.

NAR 2012 President Moe Veissi, writing on behalf of NAR members, expressed support for QE3 and Bernanke’s previous “ongoing admonitions that credit standards have become unreasonably tight.” He highlighted three controversial regulations — the qualified mortgage (QM), the qualified residential mortgage (QRM), and Basel III bank capital standards — that he said would further restrict mortgage lending should the rules go into effect as proposed.

“If the … rules only serve to further tighten credit, the impact of QE3 is likely to be diminished and only felt among those of substantial wealth and pristine credit. In short, those who need access to affordable credit the least,” Veissi said.

QM would establish standards for borrowers’ “ability to pay” the mortgages they seek, while QRM would establish certain baseline standards for safe underwriting and require lenders to retain a 5 percent minimum ongoing stake in any loans they originate that don’t meet QRM requirements.

The regulations are under the aegis of the Consumer Financial Protection Bureau (CFPB), which postponed action on both rules in June after protests from Realtors, builders, banks, unions and consumer groups.

Regarding the QM rule, Veissi said there was still time for the Fed to “weigh in” with the CFPB and “ensure that this rule does not serve to further tighten credit.” He specifically noted that, according to a NAR analysis, the proposal to cap debt-to-income ratios at 43 percent would exclude nearly 20 percent of today’s borrowers.

He also said that if the QM is not structured as a “safe harbor” for lenders, limiting their liability from lawsuits and regulatory challenges if they can show that they fully complied with the standards, many lenders will restrict credit even further due to litigation risk.

“Neither of these scenarios will aid in making QE3 effective,” Veissi said.

Under the QRM rule, lenders will need to retain a 5 percent minimum ongoing stake in the loans they originate unless they meet certain baseline standards for safe underwriting. As originally proposed, the rule would have forced most lenders to demand minimum 20 percent down payments and require stringent debt-to-income ratios for borrowers receiving the lowest rates and best terms.

“While this would not on its face restrict access to credit, it would clearly increase the cost of credit for a significant percentage of borrowers and likely eliminate a number of borrowers from eligibility,” Veissi said.

Basel III, bank capital standards decided by an international committee, will be phased in over six years starting in January and will force banks to hold roughly three times more basic capital than under the current Basel II accord with even higher requirements for the biggest banks, Reuters reported.

“As proposed, the rules severely disadvantage residential and commercial mortgages under most scenarios in terms of risk weighting,” Veissi said.

“It is hard not to see how this would increase the cost of mortgage credit and/or reduce access. The Fed should work to ensure that these rules take reasonable steps to reduce risk without inhibiting access to mortgage credit.”

According to NAR survey findings, released today, and an analysis of historic credit scores and loan performance, home sales could be notably higher by returning to “reasonably safe and sound” lending standards, which also would create new jobs, NAR said.

“Sensible lending standards would permit 500,000 to 700,000 additional home sales in the coming year,” said Lawrence Yun, NAR’s chief economist, in a statement.

“The economic activity created through these additional home sales would add 250,000 to 350,000 jobs in related trades and services almost immediately, and without a cost impact.”

While NAR has projected home sales will rise 8 to 10 percent this year, to about 4.6 million sales, Yun said that figure is still below the range of 5 to 5.5 million sales per year NAR considers “normal.”

The monthly survey, the Realtors Confidence Index, is based on more than 3,000 member responses. Members reported continuing tight lending conditions, lenders “taking too long” in approving applications, and lenders requiring “excessive” information from borrowers, NAR said.

Some respondents said lenders appear to be focusing only on loans to individuals with the highest credit scores, NAR added.

For instance, the survey indicated that 53 percent of loans in August went to borrowers with credit scores above 740. By comparison, between 2001 and 2004, only 41 percent of Fannie Mae-backed loans and 43 percent of Freddie Mac-backed loans had credit scores above 740, NAR said.

Similarly, for FHA loans, the average credit score for denied applications was 669 in May, up from 656 for loans actually originated in 2001, NAR said. A prime FHA loan is defined as having a FICO credit score of 660 and above.

“There is an unnecessarily high level of risk aversion among mortgage lenders and regulators, although many are sitting on large volumes of cash (that) could go a long way toward speeding our economic recovery,” Yun said.

NAR said that loan default rates have been “abnormally low” in recent years. The 12-month default rate for mortgage loans averaged just under 0.4 percent of mortgages in 2002 and 2003, which is considered a normal rate, and peaked in 2007 at 3 percent for Fannie Mae loans and 2.5 percent for Freddie Mac loans, NAR said.

Since 2009, however, Fannie Mae default rates have averaged 0.2 percent and Freddie Mac’s averaged 0.1 percent, despite high unemployment, NAR said.