Archive for June, 2009

Home Lighting With Motion Sensors

Thursday, June 25th, 2009

One of the latest crazes in home lighting is the use of motion sensors. But there’s nothing crazy about this craze. It makes perfect sense. Whether used for security or convenience, motion sensors can add a very useful high-tech touch to lights both outdoor and in.

The most obvious application, and one in wide use today, is to turn on outdoor floodlights when anyone approaches within the sensor’s range. Studies confirm common sense that a well-lit home is less vulnerable to a home invader than one that has large dark areas near points of entry.

Adding motion sensors and/or motion sensor lights is an effective way to solve that problem. They trigger the lights on approach, which has two advantages. A light that comes on unexpectedly tends to startle the unwanted visitor. That provides extra motivation to change their plans and move on to an easier target. Homeowners also save money on electricity by not having high-wattage bulbs burn all night long when and where they’re not really needed.

That goal can be accomplished with separate motion sensors that are connected to a whole system, one that includes lights, a horn or other security components. Or, as is the case in many fixtures, the motion sensor can be integrated into the lamp housing itself. Both are effective, though in some cases separate motion sensors have a greater range and angle of coverage.

But security isn’t the only reason that motion sensors can be a huge benefit. They can supply extra safety and convenience, as well.

You pull up into the driveway or walk outside on a dark night. You can’t see a thing. That toy or bicycle is just waiting there for you to step on. That low garden fence you always forget about is ripe for bumping into. Motion sensors can turn on the lights at your approach and prevent accidents.

They can also make it much easier to turn on the lights when you just need a brief light. You don’t have to be near the switch, you just approach or wave an arm and on pop the lights. Now you can find your keys, put away that pesky toy or just make it into the house without any trouble.

Many of the same considerations apply to indoor motion sensors, too. But indoor sensors come in an even wider variety of types and styles.

Existing wall switches or outlets can easily be converted to contain motion sensors. That makes it very easy to have a system that turns on the light when you enter, then turns it off when you leave.

Motion sensors can be integrated with hallway lamp sconces to provide illumination when you enter. You save electricity and bulb life by having the light not on when you’re not there.

Look into the full range of motion sensors available: wireless, infrared, ultrasonic, weatherproof and many more.

Brenna Hartmann is the co-founder of Fixin’Chix Inc., a do-it-yourself enterprise that includes a comprehensive home improvement website; how-to workshops, seminars and publications; and a product line. Brenna is dedicated to empowering women “do-it herselfers” (DIHers) who have the passion and desire to improve their homes. Brenna writes the popular Fixie Chick home improvement column found in Home & Yard Handbook, and is the co-host of “Home & Yard Radio with the Fixie Chick” on 950 ESPN. Brenna lives in Webster with her husband and two children.

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REALTORS® Charitable Foundation Volunteers Take Pride In Community Project

Tuesday, June 23rd, 2009

Members of the REALTORS® Charitable Foundation (RCF) the philanthropic arm of the Greater Rochester Association of REALTORS® were among a record-setting number of 1,200 community volunteers who participated in the 2009 City of Rochester Clean Sweep project. The initiative, created by Mayor Robert J. Duffy in 2005, takes place on four consecutive Saturdays and has become a team-building venue for neighborhood associations, church groups, school clubs and teams, and civic organizations.  

Each year, through the NeighborWorks® Healthy Blocks Initiative, RCF volunteers join forces to help clean and beautify city neighborhoods by removing litter and debris, planting flowers, and pruning trees. On Saturday, May 2, Bill Tierney, Marlynn Butler, Cindy B-Rosato, Paul Knipper, Jeannine Whitaker, Doug Sadowski, and Anastasia Markson were a part of the North Winton Village project team that assembled garden beds, picked up litter, weeded and mulched. 

“This is a great opportunity to work alongside some wonderful people,” said RCF Board Chair Cindy B-Rosato. “Although it involved a lot of backbreaking work, at the end of the day we were able to look back and take pride in all that we were able to accomplish. That really made it all worthwhile.”

Healthy Blocks is NeighborWorks® Rochester’s Targeted Neighborhood Initiative, which incorporates all NeighborWorks® Rochester programs and services in a tailored neighborhood-based delivery model.  In addition to homeownership education, home improvement lending and lead hazards services, Healthy Blocks staff work with residents to develop leadership, increase community engagement, improve curb appeal, and positively impact the local real estate market within the neighborhood.  Ideally, by the end of the program, each targeted neighborhood will have become a “neighborhood of choice” within the city of Rochester. This is defined as a place where people choose to invest their time and money and is reflected in a strong, stable real estate market.

Katrina Hanson, Healthy Blocks program manager, has worked closely with RCF volunteers and admits that they are some of the most hardworking dedicated people she has met. “If you ask the average volunteer to move a couple of yards of mulch and compost, there are going to be some tired volunteers later,” she said.  “But this group really raises the bar.”

The Rochester REALTORS® Charitable Foundation is the Collective heart of Rochester’s real estate professionals, addressing critical housing needs, creating sustainable neighborhoods and encouraging homeownership. Since 2001, RCF has granted nearly $400,000 to over 35 area charities. 

Ellen DiSano, GRAR Director of Marketing

Bill Tierney, RCF Volunteer and

Marty Sample, NeighborWorks® Board Member

Marlynn Butler, RCF , Volunteer

Bill Tierney, RCF Volunteer and

Sarah Culligan, Neighborhood Outreach Coordinator

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I am looking to buy my first home…

Tuesday, June 23rd, 2009

DEAR JMAN, I  am looking to buy my first home and I wondered if you could give me any advice? I know its  a really big purchase and don’t want to make a mistake. 

You are not alone, both first time home buyer and veteran buyers want to make the right decision regardless of where they are purchasing and in what price range. Buying a home is said to be one of the most stressful things you can go through in your lifetime but picking the right Realtor and having everything go smoothly can make it an enjoyable experience and one to remember for a lifetime. I have enclosed two separate reports. The first is 10 Tips for First time home buyer and the second is 10 things to take the trauma out of home buying I hope that you find the first home of your dreams and enjoy it for many years to come..

10 Tips for First-Time Homebuyers

1. Be picky, but don’t be unrealistic. There is no perfect home.

2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.

4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.

8. Don’t let yourself be “house poor”. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don’t be naïve. Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment

 

10 Things to Take the Trauma Out of Homebuying

1. Find a real estate professional who’s simpatico. Homebuying is not only a big financial commitment, but also an emotional one. It’s critical that the practitioner you choose is both skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, any more than there’s a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.

4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.

7. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-homebuying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually from 1998 to 2002, a home’s most important role is as a comfortable, safe place to live.

For all of your real estate answers send AskJMan@JManSells.com

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National Association of REALTORS® Reports Nearly Half Million 1st time Home Buyers in First Quarter 2009

Friday, June 5th, 2009

The National Association of REALTORS® (NAR) reported that nationally close to 455,000 buyers purchased their first home during the first quarter of 2009. First-time home buyers are taking advantage of improved affordability, as well as lower prices of existing homes in foreclosure and short sales. But distressed sales – foreclosures and short sales – accounted for nearly half of all transactions in the first quarter of 2009. That contributed to a decline in the median home prices in most of the metropolitan area markets monitored by the NAR.

The latest NAR quarterly survey of metropolitan area home prices showed the majority of markets — 134 out of 152 metropolitan statistical areas – experiencing declines in home prices compared to the first quarter of 2008. Eighteen metro areas showed price gains over the same period. The national median existing single-family price was $169,000; 13.8 percent below that registered in the first quarter of 2008. Metro area condominium and cooperative prices – covering changes in 56 metro areas – showed the national median existing-condo price was $172,800 in the first quarter, down 20.2 percent from the first quarter of 2008. Five metros showed annual increases in the median condo price and 51 areas had declines.

State Sales Activity

Total state existing-home sales (single-family and condominiums) posted a seasonally adjusted annual rate of 4.59 million units in the first quarter of 2009. That is 3.2 percent off the sales pace in the fourth quarter of last year, and 6.8 percent below the pace in the first quarter of 2008.

There were some bright spots. Seventeen states experienced sales increases from the fourth quarter, and six states posted higher sales than a year ago. The largest sales gain from a year ago was in Nevada, up 116.8 percent, followed by California where sales rose 80.6 percent, Arizona, up 50.2 percent, and Florida with a 25.0 percent increase. Virginia and Minnesota also experienced double-digit sales increases. It should be noted that sales in the first quarter do not reflect the impact from the recently enacted first-time home buyer tax credit. That impact will be felt going forward into the second quarter and the spring and summer seasons. In fact, the latest pending home sales index for March which monitors contract (not sales) activity registered an increase.

In New York State, the April housing data show that the market continued to build momentum in the early spring as sales grew for the second consecutive month with a nearly 14-percent increase in closed sales compared to March.

Anecdotal evidence continuous to indicate that first-time buyers are taking advantage of the favorable conditions by entering the market.  With the $8,000 federal tax credit, low mortgage rates, and available inventory, REALTORS® from across the state are reporting an influx of first-time buyers into the 2009 market.  It is expected that first-time buyers will continue to drive the late spring and summer markets.

The 5,026 existing single-family homes sold by New York REALTORS® in April represents a 13.7 percent increase from the 4,421 sales posted in March 2009, but is a 17.1 percent decline from April 2008.

Metro Prices

Median first-quarter metro area single-family home prices ranged from a very affordable $30,300 in the Saginaw-Saginaw Township North area of Michigan to $570,000 in Honolulu. The largest single-family home price increase in the first quarter was seen in the Cumberland area of Maryland and West Virginia; the median price rose 21.1 percent from a year ago to $114,900. The Davenport-Moline-Rock Island area of Iowa and Illinois posted a median price of $100,300, up 13.8 percent from the first quarter of 2008. The median price of a single-family home in Columbia MO rose 6.0 percent to $152,600.

For existing condominiums, metro area prices ranged from $75,200 in Las Vegas-Paradise NV to $345,900 in San Francisco-Oakland-Fremont CA. The strongest condo price increase was in Portland-South Portland-Biddeford ME, where the median price rose 11.2 percent from a year ago to $196,900. Wichita KS experienced an increase of 6.8 percent in the median price of an existing condominium (to $113,900) and condo prices in Bismarck ND, rose 6.0 percent to $132,400.

Behind the Numbers

NAR analysts report that this is a bifurcated market with sharp differences between foreclosures and short sales on one hand, and traditional homes on the other. In areas with the biggest price declines, there are much higher levels of distressed sales. Distressed homes typically are selling for 20 percent less than traditional homes and thus are skewing median prices downward.

But for those who own homes in good condition, their properties have held their value much better than distressed properties. Consequently, most sellers can still expect a good return if they’ve been in their home for a normal period of homeownership and haven’t tapped into their home equity too excessively.

Still, it is a buyer’s market. Low interest rates, favorable affordability conditions in many markets, and the home buying incentives will continue to attract first-time home purchasers. Indeed, housing affordability conditions are at record high levels. Look for a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas.

Courtesy of National Association of REALTORS® Research Staff

New York State Report is courtesy of the New York State Association of REALTORS®


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DIY – Deck Lighting

Friday, June 5th, 2009

Don’t limit your deck lighting scheme to a paltry porch light. Deck lighting should encompass more than just a little bit of necessary illumination. It should make your deck shine!

Depending on the shape and style of your deck you can provide just a few accents, or you can go the whole way with post lights, recessed lighting and broad illumination for the whole area.

Post lights are just what they sound like – lamps or bulbs that fit on or in a post. There are a hundred different designs. Many top a post with a stylish housing that adds the perfect finishing look to your deck. Others are actually embedded into the side or top of the post. Still others may simply attach to the side to provide illumination for the deck area and an illuminated accent to the post.

Recessed lights are similar to what you may have seen in some movie theaters, along each side of the aisle at the base of the seats. They may be placed along the base of posts, or just line a section of the deck where it meets the house. More commonly, they will outline the entire deck to provide both practicality and beauty. There, they can show where the edge of the deck is to prevent accidents and add color and design to the overall look.

Ambient light to cover the surface of the deck and the area above it can be provided in several ways. Even the long-familiar wall sconce or lamp is now far from just a mundane utilitarian device. As they give light, they add style and a certain look to the whole deck area.

Outdoor wall lamps come in every conceivable design, from Victorian to ultra-modern, from a metal shade on a swinging arm to Disney characters. Whatever your desired look to add a touch of elegance or personal style to the deck, there’s a wall lamp design available to suit.

Accent lights are similar. But their goal is less to provide overall illumination even when it’s also a style element. They use light itself to create the style. Certainly the cover design plays a role in what the final result looks like. But the accent is there to do just that: provide an accent to the house or deck, not to draw attention to itself.

They may be the more-or-less standard indirect, up-the-wall accent of the sort that might just as often be seen indoors. But they can also accent other exterior features. The deck itself might be stained a cedar color, calling for highlights provided by accent lights. Or, accent lights might provide a small spot of illumination to the point at which the post meets the deck or cap. In this way, they can overlap the function of post lights.

Whichever component you choose to implement, and a good deck lighting design can easily incorporate them all, keep a consistent style across all elements. Your deck can be a showplace with a look all its own.

Brenna Hartmann is the founder of Fixin’Chix Inc., a do-it-yourself enterprise that includes a comprehensive home improvement website; how-to workshops, seminars and publications; and a product line. Brenna is dedicated to empowering women “do-it herselfers” (DIHers) who have the passion and desire to improve their homes. Brenna is the co-host of “Home & Yard Radio with the Fixie Chick” on 950 ESPN. She lives in Webster with her husband and two children

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Stand Out by Knowing the New Lending Criteria

Friday, June 5th, 2009

The Market is changing. That is a fact.  How you choose to handle this change will dictate whether you fail or succeed in the New Year.  I have heard Agents from coast to coast say “I can’t get loans approved anymore” or “There is no money out there” That is simply not true. There is money out there. You as an Agent need to find that money and learn how to prepare your Buyers for the change in the market.

Rose Bernstein from Prime Mortgage in Rochester, NY said “While there is no shortage of mortgage money available, mortgages are no longer an entitlement to the unqualified. Lenders require borrowers to have employment; to verify an established pattern of savings for down payment and closing costs; and to evidence the willingness to repay revolving and installment debt as indicated by credit score. Those of us in the mortgage industry applaud this as prudent and responsible lending practices.” Well said, Rose. 

While some Agents may be moaning and groaning about this statement, it is actually a good change for the Real Estate Profession. It is good because you as an Agent need to be well trained and educated to survive. You have a chance to stand out and show that you are a Real Estate expert that can be depended on.  

Lending criteria is tightening up. My conversations with people in mortgage lending around the country lead me to believe we are going to revert back to the type of qualification and underwriting criteria that existed for decades prior to the relaxing and elimination of these standards that occurred and began to occur in 1997.

Below are standards that existed before 1997 which may be indicative of what is soon going to be required for Buyers to be able to purchase a home.

1. Income: Banks may begin again to use qualifying ratios, income and debt ratios.  The borrower’s income is multiplied by a percentage.  The resulting number is the maximum that the bank will allow a borrower for PITI (Principal, Interest, Taxes, Insurance), a higher percentage is used for PITI plus installment debt.

Installment debt refers to monthly payments on car loans, student loans, minimum payment on credit cards, child support etc. 

Gross Income X % = PITI (Principal, Interest, Taxes, Insurance)

Gross Income Y % = PITI plus installment debt.

Prior to 1997 Conventional ratios were 28% for PITI and 36% including debt.  FHA was 29% and 41%. 

2. Money – For conventional financing the banks required that the borrower have five percent of the purchase price of their own money available and accountable.  Lenders required a verification of this and the money had to be in the borrower’s account for at least six months.

3. Employment – Lenders required written verification that the borrower was in same profession or line of work for a minimum of two years.

4. Credit – In addition to looking the credit scores the lenders scrutinize the entire report itself.  They wanted explanations of late payments and defaults.  In the past they did not
want to see a borrower with a lot of active but unused credit cards because of the potential for over borrowing after closing.  This level of scrutiny is likely to return. 

For many newer Agents’ who are not familiar with these standards, I suggest you learn and understand them.  Then relay that information to your Buyers.  Prepare them for the higher standards as you prepare them for the entire process especially the lending faze. This is applicable for first time home buyers who have never gone through the process and for buyers that may not have purchased recently and may be familiar with the less then stringent criteria of recent years. Some borrowers are going to be disappointed and take these stricter criteria as an affront as they may have gotten a mortgage or had friends get mortgages in the past and now won’t qualify under these stricter guidelines.

Now is the time, if you haven’t already, to create a strong buyer presentation. Gone are the days of simply showing a Buyer a few houses, writing an offer and closing the deal. You need to put real effort into obtaining buyers, keeping and getting Buyers into their new property. A strong buyer presentation will cause the Buyer to want to work with you because you will give them what they want, guide them, take care of their needs and protect them from dangers that now are especially prevalent.

A strong buyer presentation will prepare the buyer for pitfalls such as; during the Buyer’s approval process the lender may continuously ask for more documentation and verification.  Prepare the Buyer and instead of the Buyer being resentful and resistant when this happens they will be accepting and grateful to you for preparing them. 

Assure Buyers that there is money available at excellent rate and terms as long as the borrower is employed with enough income to keep up the payments, reasonable credit and a little bit of their own assets. 

The Agents that prepare for these changing lending criteria and those who effectively prepare their Buyer’s for it will be more successful.

Rich Levin is a coach and speaker whose focus is teaching Agents to understand and control their business. Through that understanding achieve exceptional happiness and wealth in their life. Take control of your business, register for a 2009 Strategy Session or join our 1st Fifteen Training Webinar every week day morning. Rich is President of Rich Levin’s Success Corps Inc.  Contact him at 585-244-2700 or rich@richlevin.com  

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I am looking to sell my home. What should I do to make sure that the buyer is qualified?

Friday, June 5th, 2009

Dear JMan, I am looking to sell my home and I wanted to do it on my own. I feel like with the market picking up and the above average condition of my property that it should sell without a problem. I just don’t want to accept an offer from a buyer that may not qualify. What should I do to make sure that the buyer is qualified?

The market is definitely picking up with the First time home buyer tax credit increasing buyer activity. However, It remains to be what I like to call a Realtors® market, with the increasing popularity of the internet and the Banking industry changing its guidelines daily it is crucial to hire an expert to market the sale of your home. Gone are the days of old when you could put up a sign and have multiple offers the next day.  I have enclosed a report with reasons to hire a Realtor®. In addition, according to the 2007 Survey of home buyers and sellers done by the National Association of Realtors the typical FSBO(For Sale By Owner) home sold for $187,200 compared to $247,000 for agent-assisted home sales. The number one reason why a seller decides to sell their home on their own is the perceived savings in commission. If after all this you do decide to try it on your own I have included some information on how to make sure the buyer is qualified that is purchasing your home. Many buyers will be willing to buy your home but making sure they are ABLE is of the utmost importance. I would also suggest that you keep showing the home to potential buyers until you have a clear to close from the buyers attorney.

Reasons You Need a REALTOR

1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.

2. Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 57 days depending on area and price range,And it usually takes another 60 days or so for the transaction to close after an offer is accepted.

3. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.

4. REALTORS have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.

5. REALTORS provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

6. REALTORS are members of the NATIONAL ASSOCIATION OF REALTORS, a trade organization of more than 1 million members nationwide. REALTORS subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.

Is Your Buyer Qualified?

Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale. If possible, try to determine a buyer’s financial status before signing the contract

1. Has the buyer been prequalified or preapproved (better) for a mortgage. Such buyers will be in a much better position to obtain a mortgage promptly.

2. Does the buyer have enough money to make a downpayment and cover closing costs? Ideally, a buyer should have 20 percent of the home’s price as a downpayment and between 2 percent and 7 percent of the price to cover closing costs.

3. Is the buyer’s income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).

4. Does your buyer have good credit? Ask if he or she has reviewed and corrected a credit report.

5. Does the buyer have too much debt? If a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage.

6. Is the buyer contingent on the sale of a home? If so, Is it priced right and will it sell?

For all of your real estate answers send AskJMan@JManSells.com

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