Generation Yers, A Different Kind of Consumer

Generation Y, the up and coming age cohort that will have significant impact on the world economy, is made up of a different kind of consumer. This article has some thoughtful insight for real estate and any industry. Gen Y – Leading the Charge into the Future | RISMedia

Questions to Consider Before Purchasing a home

RISMEDIA, December 15, 2009—(MCT)—Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.

Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn’t overly dramatic, the dip is likely to get people wondering whether it’s time to sign on the dotted line.

The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Read more: 5 Questions to Consider Before Purchasing a Home | RISMedia

Fire Place Safety

You can help to ensure that you enjoy years of warmth and comfort from your gas or wood-burning fireplace by performing regular maintenance and safety practices. Before lighting your fireplace, keep these safety tips in mind:

1. Have your chimney inspected annually and professionally cleaned as needed.
2. Install a guard on top of your chimney to prevent animals or debris from getting in and blocking it.
3. Keep the area around the fireplace clear of any flammable objects and use a fireplace grate or screen.
4. Keep children and pets away from the fireplace and never leave unattended.
5. Never use gasoline or any liquid accelerant to help start your fire.
6. Install both a carbon monoxide detector and a smoke alarm in your home. Check the batteries regularly.
7. Have a fire extinguisher readily available.
8. Make sure the fire is completely out before going to bed or leaving the house.

Rochester Housing Prices Rise

A recent report released by the Brookings Institution says that our area ranks as one of the best performing metro areas in the nation. Housing prices, in particular, among other criteria analyzed in the report, not only rose 3.1 percent in the second quarter of 2009 but also rank us 9th in the nation. I honestly believe that this is positive proof that our local economy is on the upswing and that perhaps in 2010 the real estate market will begin to experience some level of normalcy.

Lawrence Yun at National Association of Realtors Speaks About Disappearing Buyer Hesitation

After four years of declines, home sales on a national basis finally appear to be turning around. Closed sales, which have risen three straight months, and pending contracts, up for five straight months, are at levels above normal spring and summer increases.

First-time buyers in particular have stepped up to take advantage of deeply discounted prices, low mortgage rates, and the buyer tax credit. In a few markets, the rebound has been quite heated, with sales doubling from year-ago levels. In some cases there's even multiple bidding—though mostly over foreclosed and other distressed properties. Nonetheless, it's clear that buyers are returning.

What's more, home prices and mortgage payments in relation to income are comfortably below historical levels, at least in many markets. That suggests home prices have overcorrected downward.

Some markets, as a result, could experience a snap back in home prices, with price gains in the high single digits or low double digits, compared with historical average annual price appreciation of 4 percent. Houston, Denver, and San Diego are among the markets on track to have better-than-average price gains in the next two years.

Still, the housing market is far from being out of the doldrums.

The economic rebound will be one of the most tepid we've ever seen. Consumers are being extra cautious, saving more to pump up their depleted retirement accounts. The unemployment rate in 2010 is expected to be at around 10 percent. The federal budget deficit will force up mortgage rates next year, though not alarmingly.

But because consumers' view of home values is fundamentally changing, the momentum of rising home sales will likely continue in 2010. Buyers are no longer hesitant about home purchases on the fear of further price declines. And that sets the stage for a steady release of pent-up housing demand.

Rochester Real Estate Prices on the Rise!

According to the Local Market Monitor (Click the title of this post for the article), Rochester, NY is one market where real estate prices are expected to rise. Many buyers have been motivated to enter the local market by the $8000 tax credit. The news that prices are on the rise should motivate more buyers who are still on the fence. The is great news!

Its Memorial Day Weekend

Another Summer about to begin! Hooray!! I tilled my vegetable garden so that’s ready. I bought annuals for the pots and beds. My seedling veggies are begging to be planted … I’m ready to go and it looks like its going to be a gorgeous weekend to get the gardening chores done.

But wait, Memorial Day weekend wouldn’t be complete without the inaugural igniting of the grill. I’m planning Italian sausage, Zwiegle’s white hots, hamburgers, potato salad and an ice cold beer – just one! And lots of fun with family and friends.

One additional thought as we get ready to start our Summer … lets not forget our Freedom (capitalization intentional). On this Memorial Day, and on all of those yet to come, please take a minute to quietly reflect on the lives given for this invaluable privilege. Too often we take it for granted and ample evidence suggests we shouldn’t.

Have a safe and wonderful holiday weekend!

Carmen Joins ReMax Realty Group

On Friday, May 1st, I joined the Mark Siwiec team at ReMax Realty Group in Pittsford. I am looking forward to being a resourceful agent to both my clients and colleagues at ReMax.

WOW! Market Activity Picks-Up!

I don’t know where the local media gets its information from but anecdotal evidence from my colleagues at other brokerages and my own experience suggests that local market activity is on a huge upswing.

The spring market is usually busy but I think what we are seeing is that protracted buyer fence-sitting is over. There is finally the realization that the bottom was reached months ago and this pent-up demand is being unleashed all at once. Also, information about the $8,000 first-time homebuyer tax credit has begun to saturate the marketplace.

So, buyer demand, economic stimuli, continued low mortgage interest rates, and bottom of the market retail pricing is causing a major improvement in the Rochester real estate market. How long will this last? That remains to be seen but for now it’s feast, not famine!

Has The Internet Replaced Your Realtor - Part 2

The internet allows us the ability to reach a staggering audience and is an appeal to owners who want to sell their home. “If I can advertize my home on the internet and if nearly 90% of buyers start their search there why do I need a Realtor?” Well, because selling real estate involves much more than advertizing! Selling a home is not easy. The process can be expensive and real estate transactions can be complex, often requiring disclosures, inspections, mortgage documents, insurance policies, deeds, and multipage settlement statements. A knowledgeable expert is necessary to help prepare the best deal, and avoid delays or costly mistakes. A Realtor provides many value added services that the internet cannot which result in a greater selling price and less time on the market.

When it comes down to the nitty-gritty, “for sale by owner” real estate is on the market because the seller (51% according to the National Association of Realtors) wants to avoid paying the brokerage fee. Also, according to NAR, however, using a Realtor to sell is likely to yield a third more in sale price.

A Realtor has the skills required to properly price real estate for a sale. Sure, the seller has knowledge about the community and may even have information about comparable sales but a Realtor is best suited to assess the current market conditions and price the property accordingly.

When a property is marketed with the help of a Realtor, the seller can be assured that prospects are pre-qualified for affordability and to ensure that the home will meet their needs. Prospects are usually shown the property by the Realtor or a colleague and the seller can be reasonably sure that unscrupulous people are not going through their home.

Once an interested buyer is identified, there are many negotiating factors that a Realtor is skilled to navigate. These factors can include selling price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings or fixtures.

One’s home is a place where they live and a place to which they have an emotional attachment. Selling that home can be a very emotional process. A Realtor can help by being an objective voice to keep the seller focused and on task. Let’s face it, you might sell a couple of homes in your lifetime. A Realtor will be involved in hundreds and maybe thousands of transactions during their career. Having this kind of expertise on your side is essential and something the internet cannot provide.

Has The Internet Replaced Your Realtor?

We cannot dispute that the internet has changed the way all of us do business today and even how we shop for personal items. Even if we do not actually buy from a web site, most of us turn to the internet for our “window shopping” and research before we go to the store. This is the same with real estate. Almost 90% of home buyers begin their home search and pre-purchase education by turning to the internet. This isn’t necessarily bad. However, the internet cannot and should not replace your Realtor.

Usnews.com recently published an article by Matthew Bandyk about the pitfalls of online real estate searching. Bandyk lists five common mistakes consumers make when “buying” real estate online without the help of a real estate professional. To me, the most critical of these common mistakes is “assuming you can do it all yourself”. Bandyk lists this as one of the mistakes but I think it is the common thread among all of the blunders. The consumer cannot possibly review all of the information that is online nor, for that matter, decipher which of it is accurate, current and applicable. We are always better consumers when we take the initiative to educate ourselves. But, in a real estate transaction, a Realtor will make sure that the purchase contract protects the parties interests by making sure all the elements are complete and subject to attorney approval. The Realtor will have knowledge of valuations in the area and assist you in paying a fair price for the property.

Is This The Best-Kept Secret or What??

First-time homebuyers can get an income-tax credit of 10% of the purchase price, up to $7500, if they purchase a principal residence through July 1, 2009. And get this, if you have not owned a home during the past three years ... you are considered a first-time homebuyer!!But, thanks to the IRS, there are some additional rules and income limits. Singles with an adjusted gross income up to $75,000 and couples with $150,000 qualify for full credit. Singles with income up to $95,000 and couples $170,000 will get a smaller credit. If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference as a refund.The homebuyer begins repaying the credit in two years in increments of about $500 a year over 15 years and if they sell the home before the credit is repaid, the balance is paid off with any profits. If the home is sold at a loss, they own nothing further than what they have already paid back.Let me know if you want more information on how this program works!