Fourth Quarter Numbers are in

ROCHESTER, NY - January 17, 2014 - Fourth Quarter 2013 statistics were released today by the Genesee Region Real Estate Information Services (GENRIS), the information subsidiary of the Greater Rochester Association of REALTORS® (GRAR).

The momentum from the three earlier quarters offset a sluggish fourth, ending 2013 with solid gains overall.  The Greater Rochester Multiple Listing Service (MLS) saw a 4.7% increase in the number of homes, condos and townhouses sold to 11,267 units as compared to 10,765 the previous year.  Pending sales also grew by 4.1% year-over-year to 11,350, up from 10,904 in 2012.

Area homes steadily continued to gain value, indicated by a modest 1.8% climb to $127,200 overall.  Median home prices in the City of Rochester specifically posted a 5.3% gain to $78,900.  Neighboring counties generally followed suit, with Wyoming and Steuben outpacing the norm, reporting sales increases of 21.1% and 16.7% respectively.

Buyers Want a Clean Slate and Fresh Start

One of the most important steps in preparing your house for market is de-cluttering and staging.  While common sense would tell you that all the clutter leaves with the seller, most buyers just can't see past it.  Maybe they have a clutter problem in their current home and a new home represents a fresh start.  They just can't picture that start in a cluttered house.

Sometimes we also need to give our walls a clean slate and fresh start.  There is an awesome colonial in Fairport that just hasn't gotten its fair share of attention and so the seller spent much of the holiday season stripping wallpaper.  Take a look that the before and after shots of their sons' bedroom.  The transformation is remarkable.

For more shots and details of this home, go to 81 W Church

New Loan Requirements for Getting a Mortgage

It seems that many people would rather visit a dentist than talk to a loan officer to qualify for a mortgage.   And while there is more physical pain from the dentist chair, there is something extremely uncomfortable about having your entire financial history scrutinized and analyzed while your future hangs in the balance.  I get it.  My credit score is in excess of 800 and I still feel weak in the knees when I need to get pre-approved.

Effective January 10, 2014 there are new lending rules that make it essential for potential home buyers to get qualified for a home purchase as soon as possible.  It is not that the criteria to qualify has changed drastically, it that there is now no fudge room.  There is a strict maximum debt-to-income ratio if the lender wants to sell the loan through one of the agencies, such as FNMA, GNMA, VA, etc.  and many banks just are not interested in giving loans that don't qualify to be sold. 

Getting approved for financing is not just about credit scores.  It's about verifying income and assets.  Employment is also verified, which is not as simple as it seems, since today many more people are contract employees or independent contractors.   In addition, all debts and liabilities are looked at, including child support and alimony.  And then there is the credit history.  Mortgage qualifying is also about determining a monthly payment that includes taxes and insurance that works for the buyer as well as determining how much cash will be required at closing. 

There is a lot that can go wrong in this complex formula of mortgage qualification and the sooner that the borrower knows, the sooner it can be corrected.  Whether it is saving more money for the down payment, paying down debts or improving a credit score, time and sound financial advice from a seasoned mortgage professional are key to success.  A loan officer can advise on what bills to pay off first for the most rapid improvement in score and whether or not it makes sense to close accounts or consolidate debts. 

I don't send my clients to a loan officer to torture them.  I do it because I want them to succeed in their goal of purchasing a new home.  And I want them to succeed as painlessly as possible.   There is a lot of information on the internet about mortgage qualification and some of it is good, some of it is totally wrong and all of it is very general.   It does not replace the specific advice that you will get from a loan officer. 

So go ahead and make the call.  Hopefully all your news will be good news.  And save all your fretting for the dentist chair.  Just don't forget to brush twice a day and be sure to floss.  :-)

A Look Back at the Past Year

My year ended with a bang and I'm not talking about fireworks.  Around 11:30 am on December 31st, a healthy Jonah Jensen was born, making me a grandma for the 4th time.  Ending the year on such a high note, sure made the rest of the year a blur.

I've said it over and over, but the best part of real estate is really getting to know some wonderful people and this year was no exception.  This year I worked with a number of young families and one provided an experience I will never forget.  Thanks to the latest technology, they signed a purchase offer on their dream property within an hour of giving birth to a beautiful baby girl.  And then upon being released from the hospital, they proceeded to prepare and place their home on the market.  Wow!  I don't recommend other families follow suit.

And just a few weeks later, I arrived at a listing appointment as one of the owners was taken to hospice care.  Bob had lived at the same place for 41 years and always said he wanted to leave feet first.  Well, he did and past away about 12 hours later.

So I've seen more than my fair share of life this year and hopefully I'm wiser for it.    I appreciate the trust people have put in me when they decide to buy or sell real estate and look forward to new relationships in the new year.

Happy new year everyone!

Getting your Home Ready for the Photographer!

Fashion models don’t pop out of bed and get in front of a camera.  Houses shouldn't either!   When your home goes on the market, the buying public will truly scrutinize the photos of your home as they determine whether or not they even want to visit it.  

 Here are a few guidelines for getting home ready for a photo shoot.  As you go through each room, remember less is more because even the most attractive items can look like clutter in a photograph.

Outside

In winter, driveway and walkways clear of snow.

In summer, grass freshly cut and raked.

Hedges and bushes trimmed.

Trash cans, bikes, toys out of sight.

Porch, front stoop, front door decorated  but modestly.

Cars removed from driveway.

Inside

Kitchen

Clear counters.  Leave one small appliance and one or two decorative items (bowl fruit, etc.)

Hide dish drains, dish detergent, etc.
Eliminate refrigerator magnet clutter.

New or clean, fresh dish towels neatly hung.

Simple place settings at table or breakfast bar

Dining

Clear all clutter

China cabinets & curio cabinets sparsely furnished.  

Set table but keep place setting simple as to avoid a cluttered look. 

Living room

Eliminate newspapers, magazines, and other media.

Do not store items under the couches...they show.

Put away toys and simplify decorative items.

Turn off televisions.

Open curtains.  Turn on lamps (soft light is better than bright or harsh)

Bedrooms

Make the beds.  Every wrinkle shows up in photographs, so do it carefully.  Fresh pillow cases or pillow covers help. 

Either have a bed skirt or do not store items under the bed.

Put away personal belongings, eliminate clutter.

Open windows.  Turn on lamps with soft light.

Bathrooms

Eliminate all personal and beauty items

Hang new or clean towels.

Clean mirrors.

Close toilet seats.

Open curtains.   Turn on lights.

Looking for Tranquility? Look No Further.

Coming to market next week, a beautiful Scottsville home with 65 acres that offers incredible views, unparalleled tranquility, lush perennial gardens and a fantastic home.  First showings, Thursday, September 12th.  Call me for more information.

Buy Me! Buy Me!

Whether you are buying a property or selling one, there are many big decisions in real estate and for many people that causes great stress.  But every once in a while you run into someone that can take it all in stride and even have a little fun with real estate.

A house just came on the market this week and displayed discreetly on the side of the refrigerator in children's magnet alphabet letters were the words "BUY ME."

And someone did, almost exactly 24 hours after the property hit the market.  And when we arrived today to do the home inspection, new letters appeared on the fridge.  This time is said "THANK YOU."

Highland Park Diner Named One of America's Best Diners!

Highland Park Diner, located at the intersection of S. Goodman and S. Clinton, was just named as one of America's Best Diners by Travel and Leisure Magazine.  It's a popular spot for locals and tourist alike.

Emphasizing freshness, the menu features homemade mashed potatoes, hamburgers, soups, freshly squeezed orange juice and an award-winning apple pie.  The diner seats fifty-five, 19 at the counter and 36 at the booths.

He's a link to the story:  http://www.travelandleisure.com/articles/americas-best-diners/21

Short Sale History

Historically, the one thing that has not been short with short sales is the time necessary to close.  I've heard horror stories of closings taking months and even years.

But this week I think I may have made short sale history.  On February 12, I listed a home in N. Chili.  On March 14th, we received and accepted an offer.  On March 18th, we submitted the offer to the bank for short sale approval.  (For those that don't know what a short sale is, it is when the property is worth less than what is owed on it and therefore the bank must agree to a shortage.)  On the 20th of March we received the bank's approval and we closed on April 30th.

Now, Guinness doesn't keep records on short sales closings and to the best of my knowledge, no one else does either.  But I can't find anyone who has heard of a short sales closing this fast.

While it's fun to be a record holder, if even only in my imagination, I hope this record falls soon and often.  Short sales are the result of financial hardship.  When a homeowner goes through a short sale, they are are stressed and often feel like a failure.  And when banks make it a long, drawn-out process it is pure agony for the seller and the buyer often loses their enthusiasm for their new home.  It doesn't need to be this way and I hope my recent experience is an indication of what the future holds.

If you have any questions about Rochester real estate, don't hesitate to call or e-mail me.  Mary Shelsby

Rochester Real Estate Seeing Multiple Offers

The last five purchase offers I've written have had competition.  And yes, at the first inkling that there will be multiple offers, my heart rate goes up and the adrenaline starts pulsing through my veins and I get giddy with excitement but then the reality sinks in.  Multiple offers suck.

There really isn't a win-win with multiple offers.  Someone has to lose. And the nice person in me really doesn't like that.  But even worse is that often the winner loses as well. They get caught up in a bidding war and there isn't time for a second visit or to sleep on it.  In these types of markets, if you have to sleep on it, you probably won't get to sleep in it.  And lord knows, I've had to list and sell way too many houses that people bought because they didn't take the time to sleep on it.

Of course the home seller does win.  Generally, if there are multiple offers they get their asking price if not more.  And so if you are contemplating moving up or moving down or moving across town, this is a very good time and I hope you will give me a call.

Mary Shelsby   

Rochester's High-Tech Innovation

With Kodak in bankruptcy, the experts expected Rochester to crumble into urban decay.  Instead, it has thrived and this week was named one of the ten most unexpected cities of high tech innovation by Techie.com.    According to the article, there are 65,650 techies in the Rochester workforce, which rivals San Francisco and San Diego.  You can check out the article in its entirety here:  http://techie.com/techie-coms-ten-most-unexpected-cities-for-high-tech-innovation/

Five Biggest Mistakes When Getting a Mortgage

Once upon a time you didn't need money or a job to get a mortgage. In fact, you didn't even have to have a personal history of paying your bills and you could still get a mortgage. There are even rumors of deceased individuals getting mortgages as owner-occupants but I don't know if that was true or not. But since the mortgage melt-down of 2007-2009 there are much stricter guidelines to get funding for a personal residence. Here is my list of the top five things you DON'T want to do when applying for a mortgage.

 1. Don't keep secrets from your loan officer. The loan officer doesn't approve your loan. He or she prepares your file so that you have the greatest likelihood of getting the loan. He or she can't do that if they don't know about things like a past bankruptcy or foreclosure, or that you are legally separated or divorced with or without child support obligations or that your job is classified as temporary. Spill the beans so that the loan officer can do their job.

 2. Don't take it personally when the bank wants documentation. I agree. It feel like it would be easier to get a top secret clearance than to get a 30-year note on a house valued at $180,000. And it feels like no matter what you say, they don't believe you. But keep in mind they treat everyone the same way. If you were late on a car payment nine years ago, expect to explain why. If your father gave you a check for $500 for your birthday, expect to have to get him to write a letter verifying the fact. That is normal operating procedures for getting a mortgage in 2013.

 3. Do not make cash deposits into any of your accounts. If you've been collecting coins for 30 years and this is what you plan to use for your down payment, well, you might as well be up 'that' creek without a paddle. Banks want a paper-trail. If money has been deposited into your account, they want to know who from and how come and they want proof. Why? They simply want to make sure you didn't borrow funds that you will need to payback after the loan closes.

 4. Avoid job changes. Sometimes simply changing departments can through off a scheduled closing by several weeks. And unbelievably, even if the job pays lots more than the previous position, banks will hold up closing until you have at least one paycheck from the new employer. If you are contemplating a job change, see rule number one. Your loan officer can help you understand the consequences.

 5. Don't buy anything! In fact, don't shop for anything. Now is not the time to shop for a new car for your garage. Nor to you want to purchase furniture or appliances (unless, of course you have that coin collection - see rule number 3.) Every time your credit is pulled it is noted and if the bank learns you are buying appliances or furniture or anything on credit, they very well might shut down your loan application.

 So there you have it, 5 major rules. I've been told that it feels like you've been investigated by the CIA, the FBI as well as the Secret Service when you apply for a mortgage. That is just life in real estate in this day and age.

Ho Ho Ho!

Holiday blessings to you and yours!  And please don't hesitate to call or e-mail if I can assist you with your real estate plans!

Pricing Distressed Properties

I recently showed a property that was listed for $70,000 in a neighborhood where many similar properties sold in the $120,000 to $140,000 range.  As soon as my buyers pulled in the driveway, they were spouting off defects and the price tag to fix them.

It didn't get any better when we walked inside.  The windows were old, the carpet was shot and there was an active leak in the basement.

Much to my surprise, the buyers were subtracting these repairs from the asking price and they were getting pretty darn close to asking the seller to write them a check in order for them to buy the property.  The more I tried to talk reason to these folks, the more they gave me the evil eye and acted like I was working for the seller.

 When I work for buyers, I work for buyers.  But I don't like wasting everybodies' time and emotions writing offers that are incredibly unrealistic, unless the buyer will acknowledge that the offer is unrealistic but wants to give it a shot anyway. 

When a house is priced $50,000 less than a similar property in better condition, it is safe to assume that the seller at least tried to price it for condition.  Did they price it fairly?  Only doing some homework will say for sure.  Start with a list of repairs.  Research what it cost to have the work done and subtract that from typical market value in the neighborhood.  Then start negotiating with the seller.

Vote for My Photo Please :0)

It's Hot around Park Ave Especially for Investment Property!

The temperatures may be falling but the real estate climate around Park Ave is super hot, especially for multi-family investment property.  In the past six weeks or more, I've heard from many investors and want-to-be investors and when we secure an appointment to view these properties, there are usually two or more other investors looking at the same time.

A little free advice here for new and want-to-be investors.  There are three primary ways to loose money on your investment.   

The first is financing.  I meet many investors that want to buy the property as a primary residence simply so they can put a minimum down and mortgage the property to the hilt.  With interest rates so low that is tempting to do but all interest is front loaded, and so this strategy will only work if the investor is committed to a long term investment. 

Next comes maintenance.  Even if you purchase a property in perfect condition, tenants cause wear and tear.  If you can't tell a hammer from a screw-driver and the thought of getting on a ladder breaks you out in a sweat, you will need to hire someone to take care of your property.  So that is profit out of your pocket and into someone else's.

The last biggie is managing your property.  You will only make money if you screen and select good tenants and then collect the rent.  Some investors hire that job out and as a result a good chunk of their income is given a way.

The bottom line, is that there is a lot more work to being an investor than depositing rent checks.  If you need to mortgage the property, hire a handy man plus a property manager, make pretty darn sure that the return on the investment is great enough to cover these expenses. 

Showing Stress

I work hard when I take a listing.  My days are filled with putting out signs, taking photos, verifying tax bills, writing ad copy, calling utility companies and much, much more.  But my job is much easier than most homeowners.

When a house is on the market, a home owner must clean the gutters, manicure the lawn, paint the front door, hind the trash cans and that's just with hopes to have enough curb appeal that we get an appointment request.  When the showing request comes in, that's when the real work begins.

Yesterday I had a showing request for a family's home that have two daughters, aged 1 and 3.   When I arrived, the house was spotless......floors mopped, counters clean, beds made, absolutely no clutter and all the lights were on.  My seller greeted me with a big smile and then I heard it!  Not one, but two crying babies!   This particular showing came right in the middle of nap time and so both girls were taken from their bed and put in car seats so they could vacate the property for the showing.

And fortunately, in this case, my seller's efforts paid off.  We receive and accepted an offer last night.  But this was the 14th showing request for this property.  In a couple of incidences, the appointments were canceled just before the showing time and in at least once case, the buyers never showed up.  In one case, the buyers couldn't afford the house but they were curious to see it anyway.  And in all the other cases, the house just wasn't right for them for one reason or another.  But for each and every showing request, this house was cleaned and staged to perfection.  And regardless of the stress this caused, they always greeted me with a smile.

I wish I always could have that much grace.

Sad Day in Honeoye Falls

General Motors announced that it is closing its Fuel Cell Facility in Honoeye Falls today. This will have a huge impact on this tiny village's economy. GM has offered jobs in Michigan to many of the workers but I'm betting there will soon be a flood of nice homes on the market in Honeoye Falls and Mendon.

Staging! How to Make the Perfect Bed

If you're like me, no matter how hard I try I can't get the bed to look like they do in the magazines and showrooms.  Here's a nice little clip that demonstrates how to make the perfect bed.  I'm going to try it and I hope you will to.  Having a beautifully made bed is important for photo day and showings when you house is on the market.

Good Morning Rochester

I love it when I'm in the newspaper and it's not the obit page.  Enjoy this beautiful autumn day.

And an update on my story earlier this week about the family moving back home!  We got another offer that is coming together nicely so my open house is canceled!  YAY!