Your Guide to the Rochester Home Market

Making Your Open House Work

Frances Rapport — Wed, 27 Apr 2011 02:53:15 +0000

Open Houses are Work but do they Work?

The short answer – Only 2% of houses sell thru open houses.

Because I know this, I don’t usually encourage my seller clients to hold their houses open. But open houses are productive for the agent and for certain properties.

For the agent an open house offers:

- an opportunity for face to face contact with prospective buyers-
- visibility in the neighborhood and town where her listing is located
- enhances her credibility with her sellers.

The homes that benefit most from an open house are:

- homes on a primary or secondary road ie, high traffic areas -
- homes which do not have great curb appeal but show well -

Key to making an open house work is preparation and publicity:

Publicity: print ads, notification in the MLS, neighborhood marketing, adequate signage including sign rider on the property the previous week, television ad. Open house flyers should be broadcast the week prior to the open house to other real estate agents.

Preparation:
Property should be groomed and professionally cleaned.
Full color professionally prepared brochures should be available.
Visitors should sign-in to allow the realtor to follow-up with guests.
Refreshments should be available.
Information on neighborhood amenities should be available.
The realtor should have neighborhood statistics.

While open houses don’t usually sell the house held open, they provide an opportunity for uncommitted buyers to get a sense of the neighborhood they are considering and what features they would value in their next home. I encourage the buyers I’m working with to attend open houses and send them lists every week of homes that will be held open in the area they are looking.

Open houses also pacify the frustrated seller of an overpriced listing.

Occasionally a buyer buys the house they first saw as an Open House.

RISING INTEREST RATES SHRINK HOME DOLLAR

Frances Rapport — Wed, 16 Feb 2011 03:15:30 +0000

The cost of a house is not the purchase price.

The cost of a house is made up of the price AND THE INTEREST you will be paying over the life of the mortgage.

The National Association of Realtors (NAR) just released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year: However because interest rates have risen dramatically in the last 90 days, the real cost of purchasing a home has also increased.

The median home price today is $170,000. If you were to purchase a $170,000 home today instead of 90 days ago it would cost you an additional $32,000 over the life of the loan.

By sitting on the sidelines for the last 90 days a purchaser lost:
• $89.44 a month
• $1,073.28 a year
• $32,198.40 over the thirty year life of the mortgage

Rising interest rates decrease affordability. When a lender qualifies you for a loan, they qualify you for a payment limit not a home price. Rising interest rates shrink the value of your home buying dollar.

Not to forget that interest rates are still at an all time low. When I purchased my home twenty years ago, interest rates were at 13%. Most buyers needed adjustable rate mortgages to qualify for a house. 1 year ARMs were at 9%.

I was interested to learn recently from my local public radio station that in Europe they don’t offer fixed rate mortgages. The banks don’t want to take the risk.

Free Moving Truck offer from RE/MAX Plus

Frances Rapport — Sun, 23 Jan 2011 14:04:38 +0000

All current clients of RE/MAX Plus have free access to our 16′ box moving truck whenever you need it. Simply check the availability, choose the time slot you want, and contact our office about securing the time for you. It’s that easy. The truck comes with a full tank, a ramp, a furniture dolly, moving pads, and secure straps. All you need is furniture and a home to move in to.

RE/MAX Plus offers the best solutions for prospective Rochester homeowners. When buying or selling your next property, call me at (585) 279-8246. I’d love to help.

Housing Market Rebounds

Frances Rapport — Sat, 22 Jan 2011 05:00:25 +0000

According to Realty Times Magazine, the housing market is finally showing signs of recovery. The National Association of Realtors released their December Existing Home Sales Report yesterday. The report showed a 12.3% increase in closed transactions over the month before. Earlier in the week the Census Bureau reported that:

Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 635,000. This is 16.7 percent above the revised November rate of 544,000.

A housing recovery will lead an economic recovery. Each real estate sale generates a ripple effect in the economy – creating jobs in construction, home appliances and the service industries. When homeowners put their home on the market, they spruce it up – investing time and money in their home and generating economic activity in the banking, legal and home service industries. When buyers purchase homes, they hire lawyers, secure loans, and pay for appraisals and inspections. Once they move in, they make improvements to their new home and they purchase appliances, window treatments, carpeting and furniture. There’s nothing like a home sale to revive a sluggish economy!

Decrease in Foreclosures in New York State in 2010

Frances Rapport — Sun, 16 Jan 2011 03:44:01 +0000

In its Year-End 2010 U.S. Foreclosure Market Report, which reports default notices, scheduled auctions and bank repossessions, RealtyTrac, Inc. reported New York State annual, fourth quarter and December 2010 total foreclosures had decreased. A total of 43,913 foreclosures were filed in New York State during 2010, a decrease of 12.82 percent from 2009. New York ranked 42nd of all 50 states for total foreclosure filings.

I’m hoping this decline indicates the beginnings of a financial recovery in New York State despite our financial woes.

STAR Exemptions – Information and Deadlines

Frances Rapport — Thu, 13 Jan 2011 21:11:34 +0000

The STAR Exemption application deadline is quickly approaching. Here’s a quick review about the STAR Exemptions that you may be eligible for:

1. Basic STAR: Available on the owner’s primary residence and has no age or income restrictions. Basic STAR is applied only to the school tax portion of the assessed value of your home. You fill out the Basic STAR form one time and the exemption will be applied each year you continue to live in your home. You can access the application by logging onto: www.orps.5tate.ny.uS/ref/forms and looking for the form called RP-425.

2. Enhanced STAR and Low Income Exemption: Available on the owner’s primary residence providing they are age 65 or older (or a surviving spouse age 62 or older) with a maximum household income of $79,050 or less (for Enhanced STAR) or $37,400 or less (for the Low Income Exemption) the previous year. ANNUAL RENEWAL IS REQUIRED! The property owner can choose to have NY State automatically review their income documents for renewal or have a renewal application mailed to them. The application can be accessed at the same website listed above and the form number is RP-467.

The filing deadline for properties located in the City of Rochester is February 1, 2011. The filing deadline for properties located in the surrounding towns is March 1,2011

Open Houses – Are they effective?

Frances Rapport — Tue, 16 Nov 2010 04:07:45 +0000

Open houses rarely sell the homes that are held open. Mostly because the buyers who attend them are not in buying mode. They are not yet working with a realtor or if they are, their homes are on the market and unsold. For ‘buyers’, attending an open house is the equivalent of window shopping. They’re trying to get a sense of their buying options without talking to a salesperson. As a real estate agent my primary intention is to sell the house I’m holding open; but realistically , the open house is successful if I pick up a future buyer/seller and make my sellers feel I’m doing everything I can to market their property. The one open house I sold last year, a realtor had sent their buyer( whose house she had listed) thru the open. When their house sold, they purchased my listing. They saw it first on line and then at the open house. The internet is now the primary media for buyers’ initial exposure to properties.

Child Safety for $1 w tamper proof outlets

Frances Rapport — Thu, 17 Jun 2010 14:50:26 +0000

Approximately 2,400 children receive emergency room treatment every year for injuries caused by inserting objects into electrical outlets. In the June issue of Family Handyman I came across an article on tamper resistant outlets. They recommend replacing the outlets in rooms your children use the most. The outlets look like regular outlets but have an interior cover that will only open when the two prongs of a plug are inserted simultaneously. The issue gives detailed instructions on how to replace outlets or just go to www.thefamilyhandyman.com. I’ve picked up recent issues at the library and have enjoyed browsing thru it. It’s great for someone like me who’s not too handy – interesting ideas that don’t require a lot of skill.

Federal Tax Credit for Home Improvements

Frances Rapport — Thu, 18 Feb 2010 17:47:13 +0000

You may obtain a tax credit of up to $1500 for energy saving improvements you have made to your Primary residence. This can be for improvements made in 2009 (qualifying forms due with 2009 tax filings) or up to December 31, 2010 for next year’s tax filing. The total credit allowed for improvements done in one or both years for a single residence cannot exceed 30% of the first $5000 qualifying. These are ”non-refundable” tax credits so you can’t get more back in tax credits than you pay in federal income tax.

There is an additional credit for installation of NEW alternate energy sources. The $1,500 maximum does not apply to geothermal heat pumps, solar water heaters, solar panels, fuel cells, and wind generators. These are all eligible for a 30% tax credit with no upper limit. However, the tax credit for fuel cells is limited to $500 per .5 kW of power capacity. The tax credit with no upper limit is completely separate from the one limited to $1,500 – so you can get both. For example, you can get $1,500 back for new windows, and $3,000 back for a new geothermal heat pump – for a total tax credit of 4,500.

You can carry forward the credit through 2016. The energy efficiency tax credit is technically “non-refundable” which means at the end of the year, you can’t get back more in credits than you paid to the government in taxes throughout the year. If you are unable to claim the entire 30% of your purchase for the above products, you can carry forward the unclaimed portion to future years through 2016.

The tax credit for insulation, windows, doors, roofs, HVAC, biomass stoves, and non-solar water heaters CAN NOT be carried over. These credits are for 30% of the cost, up to $1,500 in 2009 and 2010.

For details on what items are allowable and additional information and forms, please see: http://www.energystar.gov/

New York State Appliance Swap-Out

Frances Rapport — Tue, 29 Dec 2009 01:34:38 +0000

If you’ve been considering replacing your old appliances, this February may be the ideal time. During Presidents week 2010 New York State will issue over 170,000 rebates for the purchase of energy efficient appliances. Total rebates available will equal up to $16.8 million!

Individual Appliance Purchases

For individual purchases, appliances will qualify only if they have earned the ENERGY STAR® label, meaning that they are up to 30 percent more efficient than standard models on the market. For a bundled purchase, consumers may receive a larger rebate by purchasing three eligible appliances that meet standards issued by the Consortium of Energy Efficiency (CEE) that are higher than ENERGY STAR standards. Customers purchasing appliances may receive the following individual rebates:

Refrigerators: $75 ($105 with documented recycling)
Clothes washers: $75 ($100 with documented recycling)
Freezers: $50 ($75 with documented recycling)
Dishwashers: Rebates are only available for dishwashers when they are purchased as part of a three-appliance package of CEE-rated appliances. These will qualify for a $500 rebate ($550 with documented recycling).

Appliance Rebate Program Guidelines:

Consumers must be New York State residents to be eligible for the proposed rebate program.
Appliances can be purchased at any retail location and must meet specified ENERGY STAR or CEE standards.
The program is open only to individuals purchasing appliances for their own use.
To qualify for the rebates, consumers must attest in writing that the purchased appliances are replacing existing appliances.
Adequate documentation of recycling must be included to receive the maximum rebate amount and the rebate cannot be combined with other appliance rebate programs from utilities or municipalities. The rebate can, however, be combined with other manufacturer rebates or retail promotions.

Rebate forms and instructions will be available soon at www.NYApplianceSwapOut.com or through NYSERDA’s hotline 1-877-NY-SMART.

Safe Disposal of Old Appliances

Remember, don’t just leave your old TV’s and refrigerators out on the curb. Appliances contain many toxic chemicals that can leach into ground-water and are difficult (if not impossible) to clean-up. Protect your family and your neighbors by disposing of old appliances properly.

Disposal & Recycling Resources

http://www.epa.gov/ozone/title6/608/disposal/household.html

http://www.habitat.org/env/restores.aspx

Reducing Toxic Threats, learn more: http://www.ecy.wa.gov/toxics/index.htm