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Pets Etiquette 101

This blog is to educate both homeowners and buyers with a little bit of "pet etiquette" when it comes to their homes and homes that you may be viewing.  Now as a disclaimer let me say this before I go any further, I am a pet owner I have 5 dogs and 2 cats so I understand that the dogs shed, and the cats litter will never smell like a bouquet of roses!  As a buyer you will want to be courteous because these animals are very much part of the homeowners family - as a homeowner you will want to be courteous that not everyone is a animal person! 

Let's begin with some etiquette for the buyers and some tips to keep potential problems at bay!

• If you are severely allergic to any specific animal, you should really share this information with your Realtor.  More than likely we still going to take you to those homes unless it is severe, your agent will explain the special circumstances to the listing agent. The homeowners can do a bit more of cleaning, and we will know in advance what we may be walking into.  

• Hopefully the homeowner has cleaned up but if you happen to walk into a home, and there is let's say the smell of a cat or dog do not say anything about it to the homeowner it is rude, mention it to your agent, let them communicate to their agent.  If it is an ongoing issue their agent will be aware of it, and will be able to approach it in their own way to their client. 

• Recently I have been coming across people with extreme fears of dogs, but this goes for any animal.   Although the animal will not be coming with the house their is nothing worse than not being comfortable while your viewing potential homes.  You don't ever want to have to rush through a home, your agent will make a specific call to make sure you will be able to view the home animal free!

Now before I go any further I would like to give you an example of why "pet etiquette" is so important for not only the people who are viewing your home, but for your pet as well! 

I recently went to a rental listing where the owners had a very large pit bull, he was quite surprised to see me in what was clearly his part of the yard! My client is petrified of dogs, so although he was only protecting his turf this gave her quite a scare.  If she had mentioned this fear I would have never shown her a listing where she would have to live along side not only a dog but an extremely large dog.  The listing Realtor should have also written clear showing instructions on where access to the apartment, the dog would not have been to blame if he attempted to protect his turf.  

Now let's talk about some tips for homeowners and their pets ! 

• If you have pets sometimes it is best to ask for advance notice before your home is to be shown, nothing extreme but if you need 3 or 4 hours to make arrangements that is reasonable.  If your animal is small enough to be crated it is a good option, especially if you have a small animal who could easily get past a buyer who may hold a door open for too long or not notice an escapee! 

• Vacuum and invest in some air fresheners ! Vacuum a bit more to prevent any accumulation of dander or hair in case of buyers with sensitive allergies.  Put in some of the automatic air fresheners discreetly around your home, although you may not smell your animal potential buyers can be turned off by animal smells.  

• Clean up after your pet! You will want to clean up any toys, or "presents" your pet has left you in a timely manner.  If you have a cat try and clean the litter box up daily, same thing with a dog buyers don't want to dodge landmines when they are walking around your backyard! If you have  any puppy pads you will also want to pick them up before your buyers come to look! 

• Crate any smaller animals that you may have, place a post it on them asking buyers not to touch the cages.  This prevents your pet from getting locked in any small spaces they may wander into, and any incidents can be avoided.  I once had a Realtor tell me about her own cat cornering buyers in an upstairs bedroom and growling needless to say they stayed in that corner until the agent came to their rescue! 

• The best thing you can do when you have pets is to find yourself a pet friendly realtor! We can help you with the process of making sure your pets are not only well taken care of but protected when your home is being shown! 

An example of where your animal would need to be protected is something I came across just the other day and I give credit to not only the homeowner but to the agent! I arrived at a listing where the homeowner was not present for the showing, and on the door there was a note from the Realtor it said "Please be careful there is a small kitten in the home, when you open any closets please be aware of where she is so she does not get locked in closets or boiler room, if you are not able to get her out of any area please call me immediately do not try and grab her!"  The kitten did indeed great us immediately at the door, and would have scooted right out if we hadn't been aware prior to going in that she would be there! 

Here is another example, my homeowners who will more than likely see this blog (hi guys!) happen to have a average sized dog.  Any showings that I do during the day I go a bit earlier than the buyers are expected and I take Bella outside into the backyard.  When they are ready to view the backyard I simply walk her onto the sidewalk, and than back into the house!  The homeowners leave me her leash out on their kitchen table for showings during the week, and during open houses Bella visits families members for a bit! 

Never assume that a Realtor will do these things for you, not everyone is comfortable with other peoples pets! You will want to talk with whomever your choose to list your home about what arrangements you should make for your pets and what they are comfortable doing to help! 

How To Handle Offers On An Overpriced Home !

Finding the right house for a buyer can be tough, not only on the clients but on the realtor as well. When you opt to use a Buyer Broker it can be a bit easier but sometimes the only thing standing between your and your new home can be a seller.

When you choose to use a Buyer Broker they may show you homes that are priced above your price range, and you may wonder why, isn't that a tease since you can't afford the price. Remember just because a home is listed at a certain price it does NOT mean it is worth what the homeowner may want for it! Sometimes an agent will not take the time to educate a homeowner about the current market prior to listing the home or they may opt to go with their gut on price, this makes it much harder on all involved but it does happen.

When it comes to a home that is over priced in any area the negotiations can go a few different directions but will always require patience and strategy when it comes to putting in an offer. You will of course want to review the comps in the area carefully with your Buyer Broker, because you will want to be confident in your price being fair. Putting in a offer below the market value will make negotiations much harder, because your leaving a bigger gap between what you want to buy it for and what they believe the home is worth. When your agent presents the initial offer that is when you will normally find out why the home has been priced higher than fair market value.

Once your agent has put in your initial offer that is when you will begin to be to strategize what kind of negotiation style you will use when it comes to how you will counter.

If the homeowner comes down to a significantly lower price point it is a sign that their agent is educating them about what their home is actually worth in the current market. You will want to do the same with your counter in order to show them that you are a serious buyer! If your only around $10,000 apart in price sometimes offering to split the difference between is fair and will sometimes get you an accepted offer ! Remember whether the home is over-priced or fair value your best way to get an accepted offer is to put yourself in the sellers shoes!

If the homeowners barely budges off their price, either their agent has attempted to educate them with no success or they simply think the home is worth more as well. The conversation between your Broker and the Listing agent will clear up which one is the case.

This is where things can require quite a bit of patience, sometimes your best bet is to back off of a seller and give them time to sit on the market, and see for themselves that no one will buy their home for that price. It is a risk when you do this, and you should only do this if you have tried presenting at least 2 reasonable offers and your still significantly far apart on price. By far apart I mean over $20,000 and if the seller has not given reasonable counter offers !!

You will also want to be sure your agent keeps in contact with the listing agent, you don't want to wait to see a price reduction on MLS because than you may find yourself in a bidding war because of other buyers looking at the new price ! You shouldn't stop looking at houses either while you are waiting out a seller. Many times I have buyers who look at quite a few other homes in the interim and it helps puts in perspective what their money can buy. You may decide that your willing to pay a bit more than you originally decided for a home, or you may find a better home !

Once the homeowner has had sometime sitting on the market you will than see if they really want to sell their home, or if they were just putting it out their to see what would happen.

Before you place another offer on the house schedule another showing with your broker to go and see it again, ideally when you know the homeowner is going to be home. You want them to know your still interested in their home in case there agent doesn't remind them of your previous offers !!

Make sure when you present your next offer don't skimp out make sure that your agent reminds them of all the details of your offer.  You may still need to do a bit of negotiating but again patience is key ! If the homeowner is still not being reasonable you may have to continue to wait it out, you may end up finding a better home but I'm always certain for every buyer is the perfect home !

Most people think the number one reason to use a Buyers Broker is so that you don't over pay for a house, but that is not actually the most important. It's not always about making sure you don't overpay but also about making sure you don't miss out on a home because of trying to under value someone's home. The best reason to find yourself a Buyer Broker that you trust is actually to make sure you don't miss out on a home that would be a great fit for you period.

The Truth About What Your Home Is Worth !

Now almost every homeowner that has seen one the "Online Home Values" that are now being offered by Trulia, or Zillow call and express to me that their home is not only worth more than what it is/was listed for but it is even higher than that! 

Let me just say this in the most simplest terms, they are WRONG! Yes I said it, and I am sure in some parts of the country perhaps their pricing is correct, but not here on the South Shore of Long Island.  Experts have done research and their values are actually off by around 20% and in some cases up to 50%! Now most people will than ask how can they do that, it is simple they put a disclaimer on their page and that's it.  

If you really want to know what your home is worth you need to make sure the information that the value it is being based on is accurate, and up to date! On many of these sites the value of your home is based upon the closed sales, under contract sales but they don't often reflect current sales.  Now here are the biggest problem with these sites.   Problem #1 if your neighbor or someone across town from you decides to over price their home that doesn't raise your value obviously, but according to these sites it does.  Problem #2, just because a house has the same number of bedrooms or baths it does not mean they are worth the same. This is where style of home does come into play, a Colonial style home is going to have much more square footage, than a Cape style home even if it does have the same amount of bedrooms.  Problem #3, we have no idea which of these formulas they are using when they calculated the value of YOUR home! Problem #4, they could never receive information as quickly as a Realtor can, computers are a wonderful tool in today's market but that will never replace hard work, and research by an actual person! 

So how do you figure out what the value of your home actually is, well that is simple.  Call a Realtor! 

They should be able to provide you with at least 3 comps for homes that sold within the last 180 days - with similar characteristics to your home (ex-square footage, rooms, bedrooms, baths, taxes).   This will be crucial information, prior sales are what the bank will be looking for.  When you are looking at these comps your should be sure to see how many days this home was on the market as well.  

They will also show your homes that went under contract with all the same characteristics that I previously mentioned.  This will show you about what price bracket you should be in when you price your home to get an offer.  This will be a great way to see how long homes in your area are for sale before they get an accepted offer!I personally believeit it is better to be at the top of a buyers price range, than at the lower end.  

Lastly they will show you homes that are on the market, again all the same characteristics and this is where you have the chance to judge your home from a buyers prospective.  From their prospective you want to make sure that your home shows value for that price range.  I do not mean price it below market value, just simply look from a buyers prospective and if your home is all original, and other homes on the market are updated you should make sure you adjust your price accordingly.  

This is the ONLY information that will give you the real value of your home, so take the time and speak with your Realtor regularly about your neighborhoods current market!

Rent Vs Buying ? Are you ready ?

If your thinking about buying a home rather than renting there are some very obvious reasons that now is the time to buy but lets take a look at 3 of the best reasons you should buy now! 

• Low Interest Rates 
• Homes Priced To Sell 
• Inventory Of Homes To Choose From 

Now of course there are always pros and cons to both renting and buying, so lets take a quick look at those.  

                                                                                          

Renting Pro      Ability to move easily, this is important for those who often travel for work. 

Renting Pro      Renting you are not responsible for many things such as roofs, leaks ect.

Renting Con     Your money rent will never earn you any return.  

Renting Con     Increase in rent according to the market and become more costly than owning.

Buying Pro       Tax deductions on property taxes, interest. 

Buying Pro       Ability to take from your IRA penantly free for down payment.

Buying Pro       Work done to your own home raises its equity 

Buying Con      Upkeep goes into owning a home choose a home that fits your needs 

Their are many experts saying that one year from now everyone will be saying that they should have bought a home in 2012.  I have to say I would have to agree with that statement, buyers that are thinking they may want to try and buy a home should call a mortgage broker and see if they qualify immediately ! Now if your not quite ready to make that call and your just curious whether or not you could qualify lets take a look at some of the things you will need to have in order.  

1. Credit Score - Obviously you need to have decent credit but most banks will work with you if you have a credit score of 625 or higher.  
2. Work History - You need to have been consistently working in a field for 2 years to show consistency in your income.  
3. Debt To Income - This is just as important as your credit score, take a look at this simple calculator here for your debt to income ratio.  
4. Available Funds - Most down payments now are minimal at 3.5% on a FHA Loan which on a $250,000 home is only abut $8500, plus your closing costs.  Taking penantly free from your IRA is a great option also, allowing you to only need to budget for closing costs which on average can be $8,000 - $12,000.  

Lets take a look at some of the statistics for our current market to give you an idea of what kind of money you may want to expect to spend on a home.  

Now you can see that we are staying generally around the $300,000 mark, but for someone looking for the average home can comfortable purchase between $250,000 - $300,000.  

The average whole house rental for a 3 bedroom, 1 bath home here on the island will cost you about $1800 or higher, and normally you will still be responsible for all of the utilities on top of that.  Your costs on a renting a home would be much better spent on a home that you own! 

Other Available Options 

There are plenty of homes out their for first time buyers, and not only is New York now offering grants to help you but many towns and villages are building housing developments specifically for first time buyers.  A great example of this is the Courtland Square Condos, that are new construction condos that were recently built here in Bayshore.  

These condos offer a unique opportunity because the price of the condo is not decided by the builder or the buyer, it is decided buy the buyers income.  If your salary is under a certain amount than in turn the price of the condo will be one particular price.  There are certain rules and regulations that must be followed when you are purchasing one of these such as, it is required you take a class to learn about the responsibility of home ownership and you also must fill out a detailed application form.  To better educate you on this type of application it is available for PDF Download here.  When you purchase one of these condos the state and town are paying almost $100,000 in grants to help you get your first home! 

Another option is Rent To Own, now this is something you need to be very careful with.  You must meet with an attorney before you sign into something like this, but for some that are just looking to either fix a credit issue or save up a bit more for down payment it can be a great option.  There is a difference between Rent With Option To Buy, and Rent To Own: The difference between the 2 is pretty simple one gives you the option to buy, and the other locks you into buying the home within a particular time period.  

If you are thinking about purchasing a home but are still undecided about whether or not now is the right time to buy and would like additional information please feel free to contact me directly! 

Listing Agent Friend or Foe ?

I often reference Buyer Brokers in my blogs it is time for me to write a very specific blog about it.  I happen to quite often sell my own listings but my advice to anyone who is just beginning their search is to take the time and find a broker to work for you specifically.  

Listing agent friend or foe is something that I am always asked, and it really does depend on the broker.  I have been the listing and selling agent on quite a few of my own listings, but I am very upfront and honest about what that means.  In the end there will be no way to know which you have gotten friend or foe until it is too late, once you place an offer with a listing agent there is no going back to change it. 

Look at it this way, why would you pay someone who you only likely met once for finding a house you found on your own? If that isn't enough reason for you than take a look at some of the other reasons you should hire yourself a broker! 

There are a few very specific reason why you should hire your own buyer broker.  

• Your Paying For It - In every real estate transaction their is a Listing Agent & Selling Agent, the commission for both of these agents is decided when the home is listed.  Obviously the listing agent is just that, and will collect their share of the commission no matter who sells it.  The selling agent should be your Buyer Broker, but if you don't hire one than the listing agent now becomes selling agent as well and collects the commission for both.  

• Your Own Expert - Unless your a real estate agent, their is certain information you will not be able to obtain.  This is information you will need and want to know before you even place an offer on any home ! When putting in an offer you want to be fully informed.  How long has it been on the market ? How many owners has it had in the past 10 years ? Is it overpriced or action priced ?                                                                                                                                

• Someone To Do The Work - Ask anyone who has bought a home the hardest most time consuming part is finding the house.  There are so many homes on the market that those late nights looking thru MLS and Trulia you may get what I call "Click Finger" it is where you are scrolling thru so many homes you begin to overlook the new ones because your just clicking away.   An agent who is working for you will be looking for you, this way when a listing comes onto the market that fits what your looking for they will reach out to you, and email you the listing which guarantees you will not miss out on anything. 

• Your Middle Man - Your own broker means you can openly speak your mind about a home, and get an unbiased opinion.  The listing broker wants to sell that listing, which means he is of course biased to his own listing.  Sometimes when you walk into a house you may know right away it is NOT for you, your own agent can be the middle man to get you out of the home quickly but politely with no awkward moments! 

• Your Middle Man -  What about those houses that don't have any pictures online.  You don't particularly like going into these houses blind.  Guess what your own broker will either A. Be able to preview you them for you or B. Get the agent to send over pictures for you to see.  

• Your Representative - You will still attend open houses when you have a buyers broker, more than likely they will be holding their own open houses so they will be unable to accompany you. The old saying "Have your people, call my people" can be a great benefit.  A buyers broker will prevent you from getting calls from all of those listings agents trying to sell you on their own listings.  Just leave your agents card with them, and they will contact your agent directly ! 

The steps to finding your broker are quite simple, you call or request information online from local buyer brokers in your area.  I would recommend finding someone who is familiar with your area, and that you mesh well with.  When you meet with them it is you interviewing them, ask them the questions that are important to you, remember you don't need to pick the first one who comes in to meet you.  Here are a few tips on choosing your broker. 

• How many buyers are they currently working with ? 
• How often do they take their buyers out to look at homes ? 
• Do they send you listings, what tools do they have to help you in their search ? 
• How many mortgage companies are they familiar with, as well as what kind of financing are the familiar with ? 
• How quickly did they answer your request for information ? 
• What kind of follow up did they do after your appointment with them ? 

The process of buying a house can be long and stressful. My best advice would be to make your life a bit easier and find yourself a buyers broker before you begin seriously looking.  You are paying for a buyers broker when you purchase your new house so why wouldn't you use one? 

Now I am going to give you some examples of where having a buyer broker on your side is important.  

Example #1

Seller Joanne has her home listed for $375,000 Buyer Marie is interested in purchasing the home.  Seller Joanne Listing Agent agrees to take a offer from  Buyer Marie as long as she signs the disclosure explaining that it is his listing. He mentions it has had quite a few showings and is expecting other offers he insists that the home is worth the full $375,000.  Buyer Marie budget tops out at $360,000 but does not want to lose the house so she puts in her highest and best offer to get the home.  

Now your probably asking what is the problem with that ? Well, no where in that did anyone look out for the buyers best interests.  Now lets look at how that would happen if their was a buyers broker involved.  

Marie's Buyer Broker Rich checks to see how long the home has been on the market, it has been there for almost a year with no price adjustments.  Broker Rich runs the comparable sales of homes in the area and finds they are not worth a $375,000 asking price it is much closer to the $350,000 mark.  He meets with Marie and they come up with a reasonable first offer, and after a bit of negotiating and sharing of the comparable homes Marie is able to get the home for $349,000 ! 

Now does this happen all of the time NO, but it is the risk you take whenever you buy a home but don't have your own broker.  Now money isn't everything but lets look at another example, this having to do with functionality & safety.  

Example #2

Buyer Marie finds a wonderful home and Seller Joannes home has been on the market and is happy to have an offer.   Sellers Joannes Broker is the only agent involved, and takes the offer and gets the home into contract.  He explains the Seller Joanne has filled out the Property Disclosure pamphlet so there is no real need for a home inspection, and the market is moving quickly in that area.  Buyer Marie does not want to waste anytime this is the perfect house, and opts to skip the home inspection.

Buyer Marie places her fair offer and closes getting the home for a reasonable price.  After moving in she finds that the renovations that had been done over the years were not quite up to standards.  Although the Central Air was properly installed the electrical was never upgraded to handle the CAC and the other appliances in the house.   Luckily Marie finds this issue and upgrades the electric to be able to handle the CAC and the appliances.  While upgrading the electric she finds that not all of the outlets are up to code, and there was a non-GFI outlet in both bathrooms as well as the kitchen, which posed a fire hazard.  After about $15,000 in electrical work Marie is finally able to use her CAC and all of her outlets safely and without issue.  

What To Look For When Buying A Renovated Home

So I am sure those buyers who are out there looking have noticed the abundance of renovated homes that are currently on the market.  I am finding there are two very extreme opinions about these renovations, either the buyers absolutely refuse to even look at them, or they will look at nothing other than a renovated home. 

I would never tell anyone to not consider a renovated home, because there are some definite advantages to buying a home that has been renovated.  At the same time there are some very specific things you will want to take a look at when it comes to buying one of these homes. 

•  How long did the renovation take? Your buyers broker will be able to tell you when the home sold to the investor, from the day it closed to the day it came back onto the market is what you want to focus on.  If it was flipped within a short period of time (30-45 days) you will want to have a very thorough home inspection.  The reason for this is because in that short of a time period it was more than likely a cosmetic renovation.  
• What was done during the renovation? Certain things are quite obvious, but just because the home has new baseboards it does not mean that the heating was upgraded, you want to check the boiler/hot water heater/oil tank.  It could be that they did not require being replaced but the only way to know for sure is to let a home inspector look at it.  Don't ever assume that just because a light switch was replaced, that the electrical system was upgraded, most investors will upgrade the electric to 200-amp service, which is ideal for a remodeled home.  
• How many homes has the investor renovated? More and more people are choosing to take advantage of all of those short sales by buying them and re-selling them.  Many investors are well known in the Real Estate community, you may not know them but your buyers broker will be able to find that information out for you just by talking to the listing agent.  Do not attempt to find this information out on your own, call your broker! I personally have a investor who has been doing this for 15+ years, and I have investors who have been doing this for 2-3 years but I only work for those who do quality work.  
• What kind of warranty is provided? It is very common that new construction builds that they provide some sort of home warranty, but you always should ask if this exists on a remodeled home.  Some investors will simply give you the warranty paperwork that is provided by the manufacturer of the items the put in the home; others will offer you added warranties about the work that was done by their contractors.  It is not very common but you should still ask the question because it is a definite plus if they do! 

Those 4 questions on the most important questions you will want to know the answers to before you put in an offer on a renovated home.  Not every investor throws together remodels, but these homes are not for everyone.  If you are an avid to it yourself, or even have friends that are contractors many times you can do the same cosmetic work over the course of a season as the investor did.  I would like to think of myself as pretty handy, but I could never come close to what any of my investors do as far as quality of work.  So let's look at a few of the perks of buying a renovated home.  

The obvious perk is you are getting a turn-key home, that you will be the first to live in and will include some 

sort of warranties that you ordinarily would not have.  

 Investors now are smart and in order to move their investments instead of rushing through the renovation they

price the home a few thousand dollars UNDER market value that means your paying less for a better home.  

The reality is the renovated home came about because of an estate/short/foreclosure sale, which means the investor

has done all of the dirty work for you this is a very big perk for those areas that were really hit when the economy

went because the majority of the homes your looking at will be these renovations. 

Here is an example of a renovation, mainly cosmetic but the electrical was upgraded, plumbing as well and an extensive rehab done to the property itself including the retaining wall in front.  

BEFORE 

AFTER 

A renovated home is not for everyone, take the time to talk with your Realtor about your wants/needs as well as your price range.  If your working with a buyers broker they will be able to guide you on what kind of home is best for you.  I always try to reinforce the importance of having a buyers broker working for you but it is a absolute must if you are planning on buying one of these homes.  Only a buyer broker will be able to do the kind of research this home will require, the listing agents are legally obligated to get the best possible deal for the investor, not for the buyer.  If you are planning on looking specifically at renovated homes I would suggest going one step farther and working with an agent who is knowledgeable on these kinds of homes, not only selling them but listing them and working with investors they will know right away what questions to ask, and what answers you want to hear !! 

Sellers On The Move !

I recently wrote  a blog for the buyers to give a breakdown of what you should be doing after your offer is accepted, and what they will need to do.  This blog is directed for what the SELLERS need to begin to do and prepare themselves for.  Most would think that the sellers have the easy part, they just sit back and wait for the closing to be set but I am finding for every educated seller there are more that are not really clear on what they need to be doing.

Just as a buyer has things they need to be doing, you as the homeowner also have things you need to be doing like packing, or finding your new home.  Homeowners who are buying a new home are usually diligent about getting their search underway before their current home is even in contract. I am finding more homeowners that either A. Already have a home and do not require a purchase or B. Homeowners who are opting to become renters are often unsure of when they are supposed to make their move and what will be happening after they have accepted an offer.

Disclosure & Home Inspections 
I did write an entire blog about the home inspection process for sellers, but I wanted to touch base on it again just for a moment.  The two most important rules to home inspection are:

1. DO NOT try and hide or cover-up anything in your home, it will make you look secretive and cause the home inspector to search harder to make sure they didn't miss anything.  Things that you may consider a big deal, may not be to your potential home buyer.  An example of this is lets say you have one leaky faucet, so you decide to shut off the valve completely obviously the home inspector is going to check, and with the valve completely turned off they may think it is more than what it actually is.

2. BE REASONABLE, if one home inspector finds an issue I can guarantee you any other that comes into your home is going to find the same one.  These are trained professionals and although your Realtor will be there to protect you we are by no means experts in home construction.  If there is a safety, or structural issue you can not expect a potential buyer to just take your word that it isn't a big deal, and they can live with it.  If they have gone thru the process of spending money for someone to protect them from buying a home that they will not be able to handle you must respect that.  You do have options, you can ask for a 2nd opinion from a licensed professional who works specifically on that issue (ex: Electrician, Plumber, Roofer) to give an estimate for repair or confirm that the point the inspector made was not one that should have caused so much concern therefor making it a non-issue for the buyer if they are comfortable with that.  If the professional confirms with the inspector that something must be done to rectify the issue you still have options you can either repair it, or credit the buyer so that they can have it repaired prior to moving in.


After you have completed and negotiated through your home inspected, you as the homeowner must make sure that everything you needed to disclose has been done.  If you "forgot" to mention and illegal add-on or that you are taking that dining room chandelier now is your last chance to clear the air.  Everyone is human, and sometimes things will slip your mind when you are signing your listing agreement and answering your agents questions.  Sometimes these things are what can make or break a deal, just because you may see it as not a big deal the only person who can truly tell you if it is important or not is your agent so be sure to be open and honest about these things.  Nothing is worse than having a wrench thrown into a deal that could have been avoided not only does it cause fixing by your agent, it could very well cause you to lose your buyer!


Signing The Formal Sales Agreement
This is not always required but for my clients I always like to have all parties sign the original sales agreement to have it on record.  This agreement does not only include the purchase price and the down payment it also includes your on or about closing date.  It seems to quite often be overlooked but we as Realtors need to begin making a real point of explaining, and than re-explaining what this date means to your homeowner.  The on or about date is 90% of the time what your attorney will put in the contract if you think for any reason you need more time than that date, make sure you inform your Realtor as well as your Attorney.

If the buyer is purchasing another home this date won't just effect you and your buyer, but it effects the buyer of their current home.  The effect of a closing date being drastically changed can cause them to lose their buyer, which puts your deal very much in jeopardy.  Just like a buyer must respect that the home is yours and they can not push you out, you must also respect their time and situation.

When you receive an offer on your home we will tell you if the buyer has anything he/she needs to sell, in the case where the buyer does not we will point out the fact that this is a good buyer because they are not being held back by anything.  This also means though that this buyer is more than likely renting and will need to give notice, which makes that on or about closing date very important.

This is a very important date to your buyer, if they are renting they will be in a position of potentially being homeless if the closing does not happen in a timely fashion of this date.  You may be thinking that no landlord would ever put someone out on the street but it is very much a possibility.  Your buyers can be penalized for overstaying there welcome and that can cost them anything from an additional months rent, to a daily charge which can become costly quickly.

Signing Your Contract
This needs to be done in a timely fashion for 2 reasons.

First is that there are plenty of homes coming onto the market, and what if a better one comes along and your buyer falls in love with it? They are not required to stick with your deal until your contracts are fully signed and if you are dragging your feet than you can not have hard feelings if they move onto the next one.

Second, is because unless you changed your on or about date the clock has begun running towards your closing date.  Your buyers need that contract to put in for their mortgage if you hold off it will take them longer to obtain the mortgage commitment which generally takes 6-8 weeks. You must respect that they need to move just as you do in a tight time frame because there is a lot to be done in that time frame.

Closing
I always keep my homeowners very much informed about the progress their buyers are making towards closing, because in order to be fair to all parties involved communication is key.   Without proper communication things can turn bad, very quickly and make the experience unpleasant for all parties involved, including the Realtors because unfortunately are usually the messengers that will carry your bad news to your buyer.

If you are purchasing another home you should be constantly checking progress on that deal  this way if there is any unexpected delay you are able to communicate this to your realtor who in turn can inform the other agent.  This respect needs to go both ways, if your buyer has hit an unexpected snag they must also communicate this, so that you are fully informed.

Now this may seem silly BUT when you listed your home your agent will have asked you where were you going after your home sold, if you told us you were moving to your 2nd home that is where we think you are going.  If over the course of the listing changed your mind you have to inform us we are not mind readers, and we will find you a rental but only if we know you need one.   Finding a rental for anyone whether it is a 1 bedroom or a 3 bedroom is a task, because not every apartment is available for immediate occupancy.

You have to respect that your buyers have given someone notice that they are leaving where they are currently living, someone might be moving in the day they leave so even a day or two delay can become a big issue when left till the last minute.  Just like they can not be unreasonable regarding their moving in, you can not push things to their limits and expect the buyer to be happy about it.

I did mention communication, respect and fairness quite a bit in this blog, which I don't normally focus on but these are 3 things that can help prevent ripples from turning into tidal waves of frustration.   Whether your selling or buying a home it is a huge decision and as Realtors we chose to do this, and it is my opinion we should always try our best to make sure you are informed of even these basic guidelines to ensure things go smoothly.  

Tax Benefits & Deductions

There are many benefits to being a homeowner, one of which is the tax deductions that you are entitled to.  There are a few different areas where you can get a break but you should always consult with a tax consultant to make sure it is done properly. 

• Mortgage Interest Deduction - This is a deduction available for mortgages on your primary, or secondary home only.  This is one of the most commonly known tax breaks that are taken by homeowners, but for first time buyer who have done already owned a home often are not quite sure about.  Keep form 1098 Mortgage Interest Statement from your lender this will tell you exactly how much interest you paid on your loan.  If you have paid more in interest than the standard deduction than you may benefit from itemizing your taxes to be able to get more than the standard.  

• Mortgage Insurance Premiums  - Homeowners with new mortgages that have the primary mortgage insurance are also eligible for an additional tax break.  In order to qualify for this tax break your Adjust Gross Income must be less than $109,000.  Unfortunately if you make over that you will not be eligible to partake in this deduction.  

• Energy Star Deductions - This is a great deduction, and it is not limited to just first time buyers, it is for all homeowners.  In order to get this deduction you should be sure you stay organized with any of the new appliances or improvements you make to you home by saving the receipts because there is no set documentation required.  Many manufacturers will advertise if the product is eligible for this kind of deduction.  Everything from appliances, windows, even solar panels improvements can be tax deductible.  The one catch is you are not eligible to deduct for the cost of insulation, and some items have a maximum amount you can get credit for.  For a full list of what items are eligible for tax deductions please refer to Energy Saving Information.               

• Property Taxes - This a great deduction because there is no limit to what you can deduct obviously you can not deduct more than what you paid, but you do not need to meet any income restrictions.  This is a line item on your normal tax return, and does not require an additional "schedule".  

Something all new homeowners should be aware of is that you are eligible to grieve your property taxes which is different from taking the deduction for your property tax. 

I will usually recommend grieving your taxes I personally do so every year, when you grieve your taxes they can not be raised so it makes it a worthwhile investment of your time.  Many companies offer to do the paperwork for you and split the savings with you at the end of the day.  When you are in the process of buying the home you should ask to know what the assessed value of the home is, just for your knowledge.  

So lets say you purchase a home that is currently being assessed at $300,000 which could put your taxes around $9000, but you purchased it for say $250,000 than your home is over assessed.  This is the perfect time to grieve your taxes, it is also recommended for those sellers to do this prior to listing your home if you are over assessed. 

For more information on Grievance Procedures please refer to the NYS Website.

I am getting quite a few questions about the First Time Homebuyers Credit, and unfortunately it is no longer available for 2012. First time homebuyers are still entitled to pull money out of their IRA penalty free towards the purchase of their first home, and I will be writing another blog about this as well as Affordable Housing Developments for first time homebuyers in the next few weeks! 

Tips For Selling During The Summer

It is that time of the year again, with every change in season I write a blog for homeowners who are selling or thinking of listing.  Although the weather we have been having seems more like spring with all of the rain lately, summer is only a few days away.

Now some Realtors will tell you that summer isn't the best time to sell, this is another one of those myths that I don't know how it started but it is false.  If your selling during the summer months you can expect a few more "tire kickers" but you can also expect to see some very aggressive buyers.

Bring The Outdoors In 

• The simplest way to help your flow from the inside of your home to your outdoor entertaining is very simple.  If you have a patio door or sliders make sure that you remove the blinds if they are not inside the glass, and place a shear curtain up instead.  This allows the light to still shine through, while still giving you privacy.  

• Your patio is almost as important as your dining room to buyers during the summer time, if you have a patio set take the time to arrange it on the patio, spruce it up with new cushions or an umbrella.  Show buyers that they will have the space and area to entertain in your yard.  If your patio is smaller they do sell small bistro sets that you can purchase, these are great for condo's and townhouses ! 

• Outdoor lighting is becoming a very popular trend, it really does make the yard look very inviting and adds some ambiance.   You can pick up sets of 4 from your local home improvement store for under $40, and they are solar so they require no wiring and generally last 3 years before they need new batteries. 

Water Works

• Water your lawn regularly !!  I can't tell you how many homes during the summer months including mine, get those large patches of brown straw like grass.  A brown lawn is never appealing, this is a big part of curb appeal be sure you invest in good sprinklers if you do not have the luxury of in ground sprinklers.  

• Time your sprinklers for times when buyers will not be walking around your yard. I know that the best time to water the lawn for most people is the middle of the day, but take the time to perhaps either run them in the early morning hours or later in the evening.  I am a big fan of strappy sandals and I can't help but not want to walk on a wet lawn, many women will understand this and you want the buyers to spend time in your home taking it in, not avoiding parts of it.  

• If you have a pool be sure to open it up, make sure your water is clear most buyers will assume if your pool is closed that something is not working properly.  You want to showcase this kind of amenity, if you have decking or fencing around it be sure you make sure that it is in the best shape possible a simple power washing, or fresh coat of stain can go a long way.  

Comfortable & Cool 

• Don't skimp out on the air conditioning this time of year, if you have air conditioners turn them on ! Now you don't want to freeze your buyers out but keeping it at a school 68 degrees allows buyers to be comfortable walking around your home.  I can't tell you how quickly a showing will end if a home is hot and stuffy on a summer day, no matter how great the home is no one wants to be in a sauna. 

• Now I do tell most of my homeowners to leave during showings of their home, many buyers no matter how nice the homeowner, still feel as if they are intruding.  What you can do is in a small bowl put some ice and a few bottles of water, it is a nice gesture that will often allow buyers to relax, cool off and really take in your home rather than rush through it.   

Clean Up & Organize 

• This is the simplest thing to do, and surprisingly very important to buyers. Outdoor areas are very important to buyers but where they are going to store all the things they don't want to leave out in the weather is also important.  If you have a shed or a garage with an entrance/exit into the backyard take the time to clean them out and organize. 

• Make sure any chemicals you have (Ex: Pool chemicals, pesticides, gas containers)  are locked up, many buyers will have their children with them since there is no more school, and camps usually let out early.  

These are just a few of the tips for the summer selling season, and there are additional tips that were covered in the Spring Season blog. If you are looking for suggestions on what you could do to spruce up your yard I am always more happy to help.  You can email me pictures of your "problem areas" and I will make some simple/inexpensive suggestions that may help.  

New Home, New Pool !

I recently read another blog written by another blogger about pool safety, and what to look for if the home you are buying has a pool.  Pools can either  be an asset to a home or a huge drawback for buyers.  This is something that is very hard for a homeowner to understand because they almost always love their pools, and have spent alot of time enjoying them.

I personally had an oversized pool before I had my son, and once he was born I took it down because as a new mother I was nervous and I really did not have the time to take care of it.  Recently I went ahead and purchased one of those new it yourself pools, after about a week I decided that the work to maintain that pool was more work than a true pool so my son and I will now be enjoying a brand new pool in the next 2 weeks.  The reason I bring this up is because while at the local pool store we were reviewing what I needed to do take care of it, and I became suddenly overwhelmed even though I had a pool previously! This blog is going to generally overview what a homebuyer should look for when purchasing a home that comes with a pool, but also give you a true idea of what needs to be done to maintain and upkeep a pool in the simplest terms possible !!

Here is just a quick punch list of the things you will want to look out for if your thinking of purchasing a home that comes with a pool:

• Electrical Outlet is a Grounded 220 Volt, minimum of 3 feet away from the actual pool. For the Town of Babylon this is and has been a requirement for over ten years so if an agent tells you otherwise, they are unfortunately incorrect. 
• Wiring underground must be buried 2 feet underground in a protected cylinder.  This may seem like a huge deal but if the homeowners have correctly had the outlet installed any electrician should have known the requirements.
• Filter & Pump should be on a level grounded area preferably not on grass but some sort of brick/wood foundation.  
• Self-Closing Gates on any gate that accesses the pool.  This again is a requirement by the town. In some cases like my home I have a fence around my yard, as well as a smaller decorative fence sectioning off the area of my yard where the pool is.  It is NOT necessary to have a additional fence around the pool but for inground pools I would definitely suggest taking that precaution.   There are many options when it comes to easy assembly fences for this purpose, even if you do not have children small pets can also need to be protected from falls into the pool. 
• Pool Alarm This is a new rule that they have come out with, and I am still looking into it myself, so once I have gotten more information I will add onto this blog.  I did take the time to price them while I was at the store and they seem to run from about $150 & Up because this is a new rule the current homeowner may not have this.   It is not something that needs to be installed, it simply hooks onto the side of the pool and seem to be universal. 
• Liner Rips & Tears A new liner in a pool can become costly depending on the size of the pool, if the homeowner is representing the pool you should take the time to look and see if you notice any sort of rips or bubble spots behind the liner this could indicate a liner issue. 
• Age Of The Pool & Accessories Most homeowners will be able to tell you how old the pool is, but remember it is just like a car just because the body has 120,000 miles on it does not mean the motor does as well.  Most above ground pools were made of Galvanized Steel, but over time they have of course upgraded the material.  The pool I took down was over 20 years old and the pool itself was still in good condition, I did need to replace the liner and pumps a few years before taking it down.  If you are considering buying a home with a pool I always suggest taking a ride to your local pool store and talking to them about the costs and differences between pumps & filters. 
• Clear Depth Changes If your purchasing an inground pool you will want to make sure that you know the depths of the pool, since most are 2 depths with a gradual decline into the deeper end you will want to make sure you know where this is because finding it once your in the pool is only funny for the onlookers ! This is not something you need to negotiate with the sellers most will have sort of marking, just make sure once you take ownership you take the time to mark where the depth is what. 

Next up is the list of things you need to be prepared to do to maintain your pool.  This is where I began suddenly overwhelmed by the amount of "stuff" I forgot I had to do.  Thank god for the very nice boy and the pool store who went ahead and gave me my own little cheat sheet to work from !! The one downside to going into the pool store can be that they see a new pool owner coming, and they will load you up with tons of things you don't need to be doing.  After purchasing your home you should treat it as if you just opened it, in case the homeowners did not properly adjust their chemicals before they left.  Please be aware this is only for homes that use chlorine to keep it clean!

Day 1 - Afternoon

• Put in the required amount of PH into your pool, & than wait 2 hours.  The bag will tell you how much to use for what size pool.
• Add in your Alkalinity (This is the chemical that adjusts your PH)

Day 1 - Evening

• Shock your pool either by spreading the shock around the pool or simply pouring into where the skimmer circulates the water, and allow the filer to run overnight

Day 2 - Morning

• Check your chlorine & PH levels of the pool, begin using your chlorine tabs in the pool if you levels are ok.  The local pool store will have safe canisters that will float in the water keeping the tablets away from children/pets. 

PH Level Should Be 7.2 - 7.6
Chlorine Level Should Be 1.5

When shocking your pool the chlorine level can be higher then 3, you should shock your pool in the evening so by the next day the levels have returned to normal before you go and take a dip.  It is not considered harmful but my personal opinion is do not go in your pool if any of the levels are extremely high or extremely low just to be on the safe side.  You should shock your pool at the beginning of the season, after you have a had a large amount of people swimming, or if you see it getting cloudy or green. 

The amount of work that goes into upkeeping a pool is sometimes overwhelming so I want to take the time to do another punch-list of the general care you need to be ready for while owning your pool !

• Checking your chemical levels daily
• Running your filter (setting up a timer makes this much easier)
• Weekly vacuuming (you can also get a auto-vacuum for about $250)
• Spring Opening & Closings
• If your filter has a cartridge system you will want to rinse and dry this out every 2 weeks or so

Please keep in mind I am writing this as a pool owner, and a real estate agent.  Every town is different along with there town codes, so you or your agent should be sure to check out the local guidelines.

Tips For Sellers During The Home Inspection Process

I have written a blog previously for buyers about home inspections, but over the passed few months I have found that the sellers are the ones needing more guidance when it comes to their homes inspection.  So this blog is going to be specifically only for those potential sellers out there !!

First lets talk about what you should do to help the process along !

Tips For Sellers Preparing For A Home Inspection 

• Move any smaller furniture that is blocking areas that the home inspector will need to get to (ex: outlets, electrical panels) 
• Clean out utility areas (ex: remove clothes from the washer/dryer) 
• Make sure all your bulbs are working, sounds silly but important (ex: attic, garage)
• Remove your pets to allow the inspectors to work thru the house without any distractions or potential issue
• THE MOST IMPORTANT TIP: LEAVE and let your real estate agent stay ! 

Tips For Sellers During The Home Inspection

• If you decide to stay during the home inspection try your best not to try and "explain" things in the house, something you may think is a big deal might not be and visa versa
• Do not try and cover up anything, the home inspectors are thorough and they will find whatever you may have tried to hide and than they will search more to make sure they didn't miss anything
• Do not negotiate on anything during the home inspection, again something that may be a red flag for you may not be for your buyers
• Keep your distance, do not hover over the home inspector stay available IF he has a question otherwise he is a professional allow him to do his job 
• Don't expect to have the report immediately the first person to get a copy of your homes inspection will be the potential buyer who than can share it with you 

Once the home inspection has occurred is where things may get tricky for a homeowner, this is your second round of negotiations which means the price of what your home sells for just might be changing again! 

The agreed upon price of your home before a home inspection 90% of the time is not the actual final price.  

If there are safety, structural, electric, plumbing issues in your home that is uncovered you will usually be given the option to either 

A: Fix It              or B:                  Give the buyers a credit so they can have it fixed once they take ownership.  

Common Items Needing Negotiations

• Underground Oil Tanks - These will require soil testing, filling or removing old tank, installation of new tank
• Asbestos - Not all asbestos is a hazard but a certified professional is the only one who can safely make that determination
• Wiring - Broken electric outlets, outdated service
• Safety Concerns - Raised pavement on walkways, decking
• Roofs - Older or damaged roofs 

Where Do The Home Inspectors Inspect ? 

There of course are times where if a house is priced well below market value that it will be referred to as "Sold As Is" this is what happens commonly frequently with Short Sales & Foreclosures which means the buyer should have the inspection to make sure they are not getting in over their heads, but should not expect any changes to be made to the contracts or the home.

If you are a homeowner there are some very important things you should remember BEFORE you begin negotiating those items that require repair or credits !

• If there is a significant issue you should try your best to negotiate thru it, because if one home inspector finds it chances are this will be an issue with any buyer 
• There are more homes than buyers, if you have a buyer do your best to keep your deal afloat by being fair and realistic 
• Just because something does not bother you, it does not mean that the buyer should feel the same as you do about an issue, just like you do not want to give your house away, a buyer does not want to over-pay for a home that requires work 
• If you can fix it cheaper than their estimate either A: Suggest getting more estimates B: Offer to fix it
• Trust your Realtor, they should have attended the home inspection, reviewed it and be able to help advise you on what is important

The first thing you should do before you start to negotiate is meet with your Realtor, discuss what showings your home has had since other brokers have become aware of your accepted offer - if you have not had anyone show the home because of that it means that their are no aggressive buyers looking to buy your home.  You should also review the inspection report with your Realtor, we are by no means professionals in the home inspection process, but we do know what we would look at if we were working as a buyers broker and what items could possibly be an issue.  

Most importantly always remember that you may not like to hear what we are telling you, but our jobs are not to tell you what you want to hear, it is to make sure you are informed and help you make good decisions during the process of selling your home !!