FHA Mortgage Insurance Premiums Going Up

Monthly Mortgage Insurance Premiums (MIP) will increase effective April 18, 2011 and so if you are on the verge of buying a house with a FHA mortgage, consider pulling the trigger and applying for a mortgage by April 17th!  The upfront premium remains unchanged at 1.0% of the base mortgage.  In addition, down payment minimum remains at 3.5% and maximum seller concessions is still allowed at 6% of the purchase price.

For personal advice about buying and selling real estate in the Rochester area, don't hesitate to give me a call at 756-7457.

$5,000 Over Asking Is Not Enough!!!

I like it where I live and apparently so do some other people. Last weekend I wrote an offer for $5000 over asking and I’m sorry to say the house went to another bidder! Why did we offer so much? Well, we lost a house the week before by writing only a thousand over asking. That’s pretty amazing considering there are parts of the Rochester area where houses sit on the market for weeks and months, sometime without even a showing.

The Ellwanger Barry neighborhood, also known as the Highland neighborhood, provides a nice stock of classic American Foursquare homes along tree-lined city streets. It is convenient to the U of R as well as Strong and Highland Hospitals and since last week was Match Day (the day when medical students find out where they will train as residents) the competition for housing is fierce.

Fortunately, my clients are not young doctors. Instead, they are a professional family that wants to leave the suburbs for the convenience of city living. They are not on the rigid timeframe although they are anxious to start their new life. Hopefully, the next house we write on will be the one. But if not, it may be the next.



Rural Real Estate

I've spent the last few weeks running from Kendal to Canandaigua to Byron.  Tomorrow I will be near Lyndonville.  I love everything about the jaunts into the country side except filling my gas tank.





Here are a few shots from the last two weeks. Kind of nice to see the ground again, isn't it?

How Disappointed Will You Be If You Lose This House?

No one will sell you a house for less than what you offer, right? So why not start very, very low with the first offer?




Sometimes it works. I’ve had very low offers accepted without a single counter. Almost always it’s because the house has been on the market for a while and the seller is simply sick and tired of the process.



More often, it doesn’t work. My most notable transaction was when the seller was so insulted that she refused to sell to the buyer even after he came back with a full price offer. She still owns that property.



More than once, I’ve seen a second and better offer come in and so the low bidder never gets an opportunity improve their offering.



Most often the low ball offer will be met with a counter. And depending on how reasonable the counter is, I can often predict the outcome. Most people get a bit of a thrill with the start of the negotiation process but they quickly tire of the drama. If counter offers bounce back and forth 3 or more times (unless it’s very minor tweaking of the terms) most often the offer is going nowhere.



So, before you sit down to right a very low offer, ask yourself how disappointed will you be if you lose the property. Only your gut will tell you how to proceed.

Low Ball Offer

My clients cleaned and painted and staged. Finally, we put a ‘for sale’ sign in the front yard. For weeks, they walked on egg-shells trying to keep the house ready to show at a moment’s notice. And finally we got the call! An offer was coming in.

As soon as I picked up the offer, I knew my clients would not be happy. It was $30,000 off asking and this was not an expensive house. What I didn’t expect was their anger.

“That offer does not deserve a response,” he stormed. “Tell them to go find another house!”

The most important advice in this situation is not to take it personal. In fact, try thinking like a buyer when trying to sell your home. If there was the slightest chance that you could buy a house for $30,000 less than the asking price, wouldn’t you try it? Of course you would. It is only human nature and so don’t hold the low ball offer against the buyer.

It took some time and effort for my sellers to regain their composure. They finally agreed to write a reasonable counter offer that the buyer ended up taking. Today they are living in a new house.



Not all transactions work out this way. Sometimes the buyer walks. Sometime they counter back with another very low offer. But whatever the situation, it is most important to stay calm, focused and not take it personally.

Tomorrow I'll talk a little about low ball offers for buyers.

A Touch of Spring at the GEH

Has this frightful weather got you down? A visit this week to the George Eastman House may just be what the doctor orders. There are just seven days left to the museum's Dutch Connection 2011 exhibit.(closes February 26, 2011. Daffodils, tulips and hyacinths Oh My! Not only is this a visual treat, but the fragrance is heavenly! Here are a few photos I took there yesterday.

Resolve to be Money Smart in 2011!

I like New Years and fresh starts and resolutions. I make lots of New Year’s resolutions. It’s not that I don’t like the way that I am, it is just that I thrive when I’m challenged. So I set lots of goals. I do lots of the typical “eat less, exercise more and get organized resolutions.” I also resolve to visit new places, learn new skills and have fun. But one of my best resolutions was to get money smart, especially when it comes to debt.

I would often buy things simply because they were on sale and because I really couldn’t afford the item, I would put it on a credit card. I regularly carried a balance of several thousand dollars on the credit card, and with interest rates in excess of 12% I guarantee you I paid the banks much more money than I ever saved by shopping sales. One year I started tracking how much of my money was going towards interest and how much was going towards purchases. That’s when I resolved to get out of credit card debt and I’ve not carried a credit card balance in ten years!



As I work with families that want to move up into a larger home or even downsize I’m often surprised at how unaware they are of their equity in their current home. Usually when they pull out a statement to see their mortgage balance, they are surprised and even shocked at how much money they still owe on their home. Lots of first time mortgage holders have never stopped to realize that the bank front loads the interest and very little of their payment goes towards paying down the principle. For example, on a $100,000 loan with an annual interest rate of 5.5% amortized for 30 years, the mortgage holder will pay $6,813.48 a year but only $1,347.12 will come off the balance due during the first year.



Mortgages are not a bad thing as very few people are in a position to pay cash for a home. Today’s current low interest rates make borrowing money much more economical than in years past. But it’s not free!

My challenge to you is while the year is still new to pull out a current mortgage statement and make note of your current balance. Examine your payment. If you have an escrow account, your payment should have three parts: principle, interest and escrow (for taxes and insurance). Understand how much of your payment is going towards the debt. If you are not satisfied with the rate in which you are paying off your mortgage, you can always pay extra principle.

This is also a good exercise if you have credit card debt or auto debt. I do not like sending off money and not getting anything back for it. The knowledge of how much of my hard earned income was going towards interest payments gave me the power and resolve to make better financial decisions. I hope it will help you too.

Happy New Year! If I can help you with any of your real estate needs during 2011, please don’t hesitate to give me a call.

Real Estate During the Holiday Season

Every year it is a debate whether or not to leave a house on the market during the period between Thanksgiving and New Years. I tell my clients that it is a personal decision. First off, it is very unlikely that their house is going to get an offer if it is not on the market. Second, traffic should be light but those that are looking are most likely serious buyers. But if you struggle with keep the house ready to show the rest of the year, it could be even more difficult with shopping and wrapping and baking and other festivities. It is a person decision.

This year I had one young family that decided to pull their house off the market in the middle of November. With two young girls, they wanted to concentrate on the spirit of Christmas and not the spirit of real estate. I understood completely but three weeks after we pulled it off the market I got a phone call from an agent that had showed it previously. After discussing it with my client, we decided to put it back on the market for 14 days. Guess what? Within 24 hours we had two offers and we put a sale pending sign out front.

Another young family had already purchased a new home and decided to tough it out and leave their house on the market. We only had a couple of showings but did receive and accept an offer. A third listing received an offer, but after going back and forth a couple of times, we did not come to terms and the discussions stopped. And here it is the week before Christmas and another listing has two showings scheduled and one promising showing took place over the weekend.

My guess is that most of this activity is being driven by higher interest rates. After months and months of unbelievably low rates, they have inched up for the five last weeks and so buyers that have been kicking lots of tires are suddenly putting in purchase offers. I don’t blame them!

I hope you and your loved ones have a safe and happy holiday. My photo above was taken at Lamberton Conservatory at Highland Park. They have a beautiful poinsettia display and for the next two Friday evenings they will be open till 9 pm with an incredible light display. The cost is $3 at the door.

Don't Do Windows?? Then Hire Them Out!!

It's no secret that houses are not flying off the market like they were a few years ago.  Buyers are as picky as ever and tend to look at everything on the market before they make a decision.  If you're trying to sell your home, it's important that it shows as well as possible.  Over the next few weeks, I plan  to provide some general information about getting your house in tip-top showing condition.

Last week I attended an engineer inspection and the buyer told me when she walked into the kitchen and saw the afternoon sunlight streaming in, she knew she had to have that house.   With Rochester's grey season just about upon us, it is especially important that windows are clean to allow every bit of sunlight in that is available.  And when there is a daytime showing or open house scheduled, be sure to open all drapes and let as much light as possible into your home.




  Another cost-free trick to have your home look its best, is to clear your kitchen counters of almost everything.  Pack away appliances, dish drainers and all unnecessary clutter.  The results will be amazing.  In a matter of minutes your ordinary kitchen will look like something in a catalog.

Veterans Day 2010

Veterans Day 2010
Originally uploaded by maryshelsby

Remembering all the men and women of our Armed Forces who have and are keeping us safe. Thank you for all your sacrifices.
This shot was taken at the Vietnam Memorial at Rochester's Highland Park.

On a real estate note, one big change in the market is that investors are back! Perhaps they recognize the bargain basement prices out there, but I've heard from more investors in the past 30 days then I have the entire past two years.

It’s been almost a full year since I’ve made a serious post to my blog. It’s not that I’ve forgotten about it or lost interest, I’ve just been distracted.

For one thing, I’ve become a photo-holic. I’ve always liked to take pictures but I realized it was a real problem when my camera up and died in September 2009 and I came unglued. I could not rest until I went out and bought a bigger and better model than what died. Unfortunately, I didn’t know how much I didn’t know about photography until I took the brand new Nikon D300 out of the box and realized I didn’t have a clue how to work it.

You learn by doing and so I set out to learn my camera by committing to posting one photo a day (on flickr) for an entire year. Winter, Spring, Summer and Fall I’ve walked and scouted all over Rochester and the Finger Lakes for a photo worthy of posting. Up before dawn, fell in a snowdrift and have gotten lost at least a half dozen times, but it’s been a blast. You can view my set of photos here: http://www.flickr.com/photos/shelsby/sets/72157612516667199/



I live next to Highland Park in the city of Rochester, and so I accumulated a large number of photos of the park. Last month I decided to put together a collection of my park photos into a book, which I titled “More than Lilacs! Rochester’s Highland Park.” Not quite a best seller, but I am pleased with the number of copies sold to date. You can preview and order the book here:

More Than Lilacs! by Mary E. Shelsby | Make Your Own Book

Oh, and I’ve been selling real estate too! But with my 365 Day Project and published book behind me, I promise to reengage in my blog project and keep you up to date on the Rochester real estate market.

As seen on the Re/Max TV show...69 Zornow Dr, Henrietta

Two Awesome New Listings

Beautiful 3 bedroom colonial in Irondequoit is being offer for $109,000.  The property features a newer roof, furnace, bathroom and many new windows.  The beautiful living room is large with a wood burning fireplace.  The kitchen is eat-in plus there is a formal dining room.  Be sure to stop by and see this property on Sunday, August 8 from noon till 1:30. The address is 463 Harwick Road, Rochester, NY  14609. It's sure to sell fast!

For more photos and details, visit:  www.RochestersBestHomes.com/R124988 

The second listing is in Henrietta.  This beautifully maintained ranch is a perfect starter home or down-sizer!  The home features all new windows, and updated kitchen and bath as well as a 2 and half car attached garage.  Priced to sell quick at $119,000.  For all the details, check out www.RochestersBestHomes.com/R124981 . 

Located at 69 Zornow Dr in Henrietta, this property will be open Sunday, August 8 from 2:00 till 3:30!

 

Remembering

Remembering
Originally uploaded by maryshelsby

Taken at the Viet Nam Memorial at Rochester's Highland Park. I wish you a fun and safe Memorial Day and hope you will take a moment to remember those that gave their life so that we live free.

Time Flies

Gosh, it's the middle of February and the blog still screams "Happy Holidays!" No, I've not gotten fat and lazy this winter. It's been extremely busy.

I started the new year on January 2nd, by working with three different buyers that day and I've been running ever since. Just as predicted, the spring market hit Rochester early this year even if the weather was still winter-like. And for all the running, houses are not flying off the market. It seems that there is a lot of looking, a lot of tire-kicking and a lot of sitting on the fence but not a lot of contract writing.

As an example, I showed a house to one of my clients last week that had been on the market for six weeks. She liked it and we wrote an offer, a decent offer although not full price. Within several hours of our offer being submitted, there were two additional offers submitted and the property sold for more than asking but not to my buyer. When I asked the listing agent where these offers came from he explained that the people had looked at the property weeks early but weren't willing to write until they thought someone else was going it get it. They sat on the fence, hoping the price would drop and instead had to pay over asking to procure the property.

I did land a case of pneumonia this week and while laying low recuperating, I sorted through some photographs I've taken of Rochester this winter and put together a slide show. I hope you enjoy it.

Celebrating the Holidays

With a few more houses on the market than what is normal for the holiday season, the question keeps coming up about decorating. My advice, over and over, is to keep it simple and elegant. That goes for inside decorating as well as outside.

Speaking of outside decorating, the Democrat and Chronicle has put together a map of notable holiday light displays. To check out that map, go here: http://php.democratandchronicle.com/maps/holiday_lights

Best wishes to you and yours for a safe holiday full of love and laughter. I'm spending the weekend with the Shelsby family in Maryland but will be back to work the beginning of next week.

Just Listed: 51 Briarcliffe Dr, Irondequoit

Just hit the market on this cold, blustery Rochester morning! (details at www.RochestersBestHomes.com/931215 )A beautiful 3 bedroom home on a simply gorgeous street in West Irondequoit. With beautiful hardwoods through, this home has lots of period charm plus many important updates, such as a newer roof and vinyl siding. And once the weather breaks, you'll enjoy the professionally landscaped yard with patio and trellis. Priced for a quick sale at $139,900!

Give me a call at 585-756-7457 to set up a private showing on stop by the open house Sunday afternoon, 1 till 4 pm. Snooze and you will loose on this one!

140 Days and Counting

When the weather outside is frightful, you can usually count on the real estate phone going to sleep. Not this year! I worked with three different buyers yesterday during the raging snow storm. And of the 7 houses I showed, three of them were new to the market this week. That’s not a typical December day for Rochester, NY.
With less than 140 days to be under contract to qualify for the home buyer federal tax credit, it seemed like a good time to highlight the program. Of course, you will want to consult with your tax advisor or attorney for more specific advice, as the following points are very general.
• Your purchase agreement for a home must be signed no later than April 30, 2010, and the transaction must close before July 1.

• First-time buyers receive a credit of 10 percent of the purchase price, up to $8,000. A first-time buyer is defined as an individual and/or spouse that has not owned a principal residence in the U.S. within the last three years.

• Buyers who owned and lived in their principal residence for at least five consecutive years of the last eight can receive credit of up to $6,500 when they contract to purchase a home before April 30, 2010, and close before July 1.

• The upper income limit to receive the full credit is raised to $125,000 for individuals and $225,000 for couples.

• If the purchase price is more than $800,000, the buyer is not eligible for the credit.

• There is no minimum income for claiming the credit. You qualify for the full credit even if you won’t owe any taxes for 2009 or 2010.

• You can claim the credit when you file your 2009 or 2010 tax return. The law does allow you to apply the credit to your down payment but currently, I know of no bank in New York that will provide such a loan.



If you or someone you know is considering a purchase in time to qualify for the tax credit, please call me as soon as possible. We anticipate an early spring rush this year with lots of competing offers and so now to the time to get pre-qualified and define your search criteria.



Keep warm!

Mary Shelsby

ReMax First

585-756-7457

Getting Ready to List Your House

Right now, I'm getting more phone calls from people wanting to sell their home than individuals that want to buy a home. That's a change and I think it's been brought on by the federal tax credit for repeat buyers that have owned their current resident for at least 5 years. Of course, there are a million things to do to get your house ready for the market....cleaning, organizing, de-cluttering and just making it look like a model home. It's a ton of work, I know.

There is also a lot of paperwork that needs to be organized and available for closing and since you will be busy packing all your belongs, I recommend that you get the following items in order before you list your home. They include:

• A payoff statement (or recent bill showing balance due) from all mortgages on the property.
• Two sets of keys to the house.

• A copy of all certificates of compliance for improvements to the property, such as fences, pools, sheds, finished basement or attic, new bathrooms, etc.

• Twelve months of utility bills (or one month if on a budget plan).

• Copy of property tax bills.

• Completed Property Condition Disclosure.

• Copies of any environmental testing done, i.e. lead testing, radon testing.

• Contact information for your real estate attorney.

• A list of appliances that you plan to offer with your property.

• Copy of all transferable warranties, such as for a newer roof or appliances.


If you'd like more information about getting your home on the market, don't hesitate to call me. My office number is 585-756-7457.

Mary Shelsby
ReMax First

Home Buyer Tax CREDIT, not deduction

I've made a few phone calls this week to individuals that might want to take advantage of the Federal Tax Credit being offered to qualified home buyers and was very surprised at how uninformed and/or misinformed the general public is about this program.

Most importantly, this is a tax credit, not a deduction on your income tax. For most first time home buyers, the credit is for 10% of the purchase price up to $8000. That means if you are eligible for a refund, your refund will be increased by the amount of the tax credit. And if you owe Uncle Sam, your bill will be reduced by the amount of the tax credit. Sweet, isn't it?

Some existing home owners that buy a new primary residence will also qualify for a tax credit of 10% of the purchase price, up to $6,500. These home buyers must have resided in their previous property for 5 of the past 8 years. There are income requirements for both tax credits and deadlines to be met. For a fact sheet on the program, shoot me an e-mail or call your tax preparer.

The other good news for home buyers is that interest rates have hit a new all time low, with fixed rates for a 30 year mortgage going as low as 4.71% and 4.29% for 15 year mortgages. It's just a matter of time before these start going up and so if you're in the market to refinance or purchase, give me a call today.

Both the tax credit and interest rates are have a profound effect on the Rochester real estate market. I've been on three listing appointments this week and have started working with 2 new buyers, all very unusual for the time period between Thanksgiving and New Years!