My New Blog

Happy 4th of July!

I hope you all have a Happy & Safe 4th of July holiday!

Thank you to all the service men & women of our country who have & continue to fight for our independence!

I need a rental property, outside of Rochester City Limits in Monroe, Wayne or Livingston Counties.  This property must be at least 2 bedrooms and be $600 or less.  If you have a rental property available, please contact me asap.

Thank you!

May 30, 2009 the U.S. Department of Housing and Urban Development (HUD) anounced that you can now use the $8,000 Tax Credit towards the downpayment of a new home purchase.

You must still put an initial 3.5% down, however, this money can be gifted to you.  The money will be available in the form of a loan from a qualified lender as a tax credit advance.

For more information, or for qualified lenders, please contact me.

To all you beautiful mothers out there:

Happy Mother's Day!

Pre-Sale Home Inspections

What is a Pre-Sale Home Inspection?

Occasionally sellers will have their home inspected before placing their home on the market.  This can save both time and money and there is the possibility that the home will sell quicker as well. 

A Pre-Sale Home Inspection is a full inspection completed by a Licensed Home Inspector and paid for by the seller.  The seller receives a full report including pictures.  This process can help the sellers determine what repairs to make prior to the sale.  This can also help avoid any surprises if a buyer has a home inspection. 

The seller can display the home inspection report & receipts for completed repairs to show potential buyers that the home is in good repair.  This is a nice selling point for potential buyers.  This also offers have peace of mind to potential buyers knowing that the home has already been inspected & repairs are completed.  Since the home is in shown to be in good repair, it can also bring a higher selling price. 

The pre-sale home inspection also helps to streamline the home sale process - there will be less time between contract to close.  It removes a contract contingency before a contract is written. 

Just like any other home inspection, there are a variety of inspections that can be performed in addition to the Pre-Sale Home Inspection:

• Radon Inspection
• Furnace Inspection
• Pest Inspection
• Fireplace/Chimney Inspection
• Lead Paint Inspection

Each inspection does incur additional cost.

Some inspectors will offer additional perks if you hire them for the Pre-Sale Inspection:

• A sign in the front yard "Pre-Inspected, Seller Certified"
• A report to display at the home and reports on line, available for all prospective buyers.

Let me and my team of professionals make your home selling experience a positive one!

Is now a good time to buy a foreclosure?

This is a very common question from both real estate professionals and prospective buyers. Obviously, because local market conditions vary, the answer is different from market to market. But there are questions that buyers in any market should be asking before they make an offer on a property in foreclosure.

What’s the first step buyers need to take?

Require buyers you work with to be preapproved for a loan before you help them shop for a foreclosure. If they’re thinking of buying a foreclosure as an investment or second home, they need to understand that financing the home will be more difficult and more expensive than financing a primary residence. Lenders typically charge higher interest rates and require a larger down payment for investment or second homes.

How can you tell a bad foreclosure from a good one?

Certainly there are great deals in many markets for both investors and buyers looking for a primary residence. But making a sound deal can be tricky. Buyers need to be wary of unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage. Any or all of these financial obligations could become your clients’ responsibility when they purchase a property in foreclosure. Unless the property goes through a foreclosure auction and becomes a bank-owned REO, the outstanding foreclosure liens and fees could be simply transferred to the new owner—your clients. Don’t let them fall into the same financial trap as the previous owner.

If I’m a qualifying borrower, can I appeal to banks for better loan terms?

Lenders are drowning in defaults—particularly in hard-hit real estate markets such as Arizona, California, Florida, Michigan, Nevada, and Ohio—so they may be motivated to cut a deal. If your clients have a good credit score, many banks will offer them a below-market-rate loan on a bank-owned home. Unlike paying down with points, this doesn’t cost anything in fees, and it gives them the ability to spend more for the home.

What are the costs of buying a foreclosure?

It takes money to make money. The best opportunities are for buyers with cash. If your clients are planning to rent out the property or even resell it for a quick profit, make sure they consider the carrying costs, including sales commissions, marketing costs, vacancies, taxes, insurance, and maintenance costs. Once you’ve calculated all the expenses, add on another 10 percent to 15 percent. If they don’t build in a "surprise fund," your clients might be the next foreclosure statistic.

How does choice of neighborhood affect foreclosure investments?

Clients looking for a good investment should generally avoid neighborhoods overrun with foreclosures, particularly newer subdivisions in overbuilt exurban areas. Investors will be tempted to buy foreclosures in these areas because they offer the steepest discounts—but they also carry the most risk of further depreciation. Look in well established neighborhoods with good schools and transportation. If you’re in a market where prices are still falling, encourage your clients to factor falling prices into any offer they submit on a foreclosed property.

Source: James J. Saccacio is chief executive officer of RealtyTrac, a Web site that tracks properties in foreclosure.

I hope everyone has a safe, healthy, Happy Easter!

The Division of Housing and Community Renewal (DHCR) has helped families and individuals receiving Section 8 achieve the dream of homeownership thru their Assets for Independence Program (AFI).  Assets for Independence is now expanding eligibility to include not only Section 8 Housing Choice Voucher clients but all income-eligible New Yorkers. This will provide up to 400 low-income families with closing cost assistance and create regular savings habits with AFI consumers.

The AFI program provides homeowner education and financial training as well as a matched-savings plan that helps families buy and keep their own home.

AFI motivates clients to commit to a monthly savings plan with a one-to-four matching grant, up to $7,500, toward real estate closing costs. Savings plans are offered for any duration between 12 and 24 months and deposits are adjusted accordingly. For the maximum match in a savings plan of 24 months, participants would need to deposit $78.13 each month in their AFI account.

Potential first-time homebuyers will learn how to achieve economic independence in the required financial counseling, which focuses on the important transition from debt reliance to savings and the wise use of credit. Homebuyer education classes will inform clients on how to shop for affordable mortgages, and how to work with a realtor or professional home inspector.

Section 8 clients can use the AFI matching grant toward the purchase of a single-family home, condominium or cooperative apartment. All other income-eligible New Yorkers can use AFI moneys for downpayments on one-to-four family homes which must be owner-occupied.

At no cost to clients, AFI accounts are opened with Chase Bank, however clients are not obligated to secure mortgages with Chase Bank and may shop for other affordable mortgage products in their area. DHCR will monitor monthly deposits to ensure program compliance.

If you are interested in more information, please contact me.

GiGi's Italian Kitchen & Catering

Last night something pretty cool happened to us.

Every Saturday evening, my husband and I go out to dinner. I like to try to go somewhere new every week, my husband would go to the same restaurants over and over.

Last night we decided to try a new restaurant, we wanted Italian.  So, we opened our Rochester coupon book and decided to try LaTrattoria in Irondequoit.  When we got there, it had been completely renovated & there was a sign on the front of the building that said GiGi's Italian Kitchen & Eatery.  A door in the front, the entrance is actually on the side, said that the hours were 10-6.  Guess what, it was 6:05 pm.  So, we went to our second choice Italian restaurant, also in Irondequoit.  When we got there, there were 8 empty tables.  Cool-no wait!  But then the hostess told us since we didn't have a reservation, they didn't have a table for us.  What?!?  They didn't even offer to let us wait for a table.  It's 6:15 pm and 8 empty tables, but they won't serve us.  Well, we won't be returning to that restaurant by the bay. 

In the meantime, we were trying to decide where to go.  My husband thought we should go back to LaTrattoria, maybe they just didn't have their sign back up.  There were a lot of cars in the parking lot & someone was walking into the building when we left the 1st time.  So we went back.  We told the lady that greeted us that we had a coupon.  She told us we didn't need it.  Last night was GiGi's Italian Kitchen's "trial run" for friends and families of the employees.  And she invited us to eat for free!  (my husband didn't believe her). 

Wow!  We show up at the wrong restaurant, after they are closed and we get to eat for free!  Who does that happen to?  And we ate good!  We had mozzarella sticks for an appetizer & bread with their extra special extra virgin olive oil dip.  For dinner I had their manicotti - 2 shells have their red sauce & one shell had alfredo sauce.  I also had meatballs with it.  The meatballs were spicy & had a very good flavor.  My husband had gnocchi with red sauce.  We couldn't finish our dinner & had to bring some home because we were so full. Then we were told we weren't done yet.  Oh boy, I didn't think I could eat another bite.  Until they brought out a plate of cannoli's and some delicious Italian cookies.  Mmm!  My husband and I both managed to fit some of those in as well.  I don't really care for canoli's, but I was obligated to try them.  These cannoli's were excellent! 

After that, we got to guess how many shamrocks are in the pot of lucky charms.  How great would that be if we are the lucky winners of a dinner for two! 

GiGi's Italian Kitchen & Catering is in a cute little building at 1770 E. Ridge Rd in Irondequoit.  The door we entered through opens onto a cozy room with tables and a small bar. There is another larger room where we actually ate.  The interior is decorated very nicely.  They have candles on every table & little Italian flags.  If you need someone's attention, you just need to place the flag on the corner of your table & any one of the employees will stop & assist you.  Yep, I had to try it out. It only took 16 seconds for someone to come to our aid.

Everyone there was very professional, yet friendly & helpful.  Yes, this was their trial run, 1st impressions are important, but they did a great job.  I will definitely go back as a paying customer.  And I would recommend that you do too.  Let them know that Amy & Keith sent them.

They are currently serving lunch.  On Tuesday, they will be opening for dinner.  They will have corned beef and cabbage in honor of St. Patrick's Day as well as their full menu.

To the owners Ken & Patti, the manager Ben Ryck & all of the other staff... Thank you so much for your hospitality!  Little things like last night can certainly make your weekend!

Online Document Management

I am excited to offer another great new feature for my clients! 

All clients, whether Buyers or Sellers, will now have online access to all documents involved in their active transaction via a password protected website.  Your contracts and other forms will now be available with just a click of a button!  The documents will also be available to your service providers, including your loan officer, attorney and anyone else who requires access to these documents.  I will limit the service providers access to only those documents they need to access. 

This system will allow for less standard fax transmissions which ensures contracts that are readable throughout the entire transaction.  This system also allows me to have paperless transactions. 

Please contact me if you have any questions regarding this great new service.

February 13, 2009 -- Realty Times Feature Article by Kenneth R. Harney

It's been a rare event lately to get good news for real estate investors out of Fannie Mae, but we've got some for you this week.

Starting March first, Fannie Mae will abandon its controversial policy of refusing to finance investor mortgages where the borrower already owns more than three other income properties that have mortgages on them.

The National Association of Realtors complained about the four-unit limit last year -- and it looks like Fannie's top executives finally got the message: That prudent investors can play a big role in buying up some of the wreckage left after the boom - the excess inventory of foreclosures and bank R-E-O - BUT they've got to have financing to do so.

Under the new rules, investors will be able to own a total of five to ten financed properties "if they meet … (Fannie's) eligibility and underwriting standards," according to a bulletin the company just sent out to lenders.

Loan- to-value ratios on Fannie Mae-financed investor purchases will now go as high as 75 percent for single unit acquisitions and as high as 70 percent for projects with two to four units, provided the applicant has a minimum FICO credit score of 720.

Borrowers will also have to pass a series of other tests including the following:

First, they cannot have filed for bankruptcy or been foreclosed upon at any time during the past seven years, and they've got to have a spotless record on their other mortgages -- no late payments of 30 days or more -- during the previous 12 months.

Second, they've got to fully document rental income for any new acquisition, along with their revenues on all other investment properties, backed with two years worth of federal income tax returns.

Third, applicants owning no more than four units will need to show six months of bank reserves to support the new investment purchase, plus two months of reserves for every other investment property they own. Borrowers who own five to ten properties will need to show that they've got six months of reserves on hand for every property.

There's no question here that Fannie is looking to deal ONLY with the most financially stable multi-unit investors -- to skim the cream off the top of the investor market, and reject everybody else who can't come up with the heavy reserves.

But if you fit the requirements on cash and credit, and can make the big downpayments, Fannie's policy change just might open the door to some very attractively priced long-term fixed rate financing - especially in comparison with hard money lenders who want your arm and a leg.

Refundable First-Time Home Buyer Credit

In 2008, Congress provided tax payers with a refundable tax credit for 1st time homebuyers.  This tax credit was equivalent to an interest free loan that was either 10% of the purchase of a home or $7,500, whichever was less.  This applied to homes purchased on or after April 9, 2008 and before July 1, 2009.  Taxpayers receiving this tax credit are currently required to repay any amount received over 15 years of equal installments, or earlier if the home is sold.  This only applies for owner-occupied homes with adjusted income of $75,000 for single filers and $150,000 for joint returns.

The American Recovery & Reinvestment Act of 2009 eliminates the the repayment obligation for taxpayers that purchase homes after January 1, 2009!  The maximum credit has been increased to $8,000.  Taxpayers now also have until December 1, 2009 to purchase a home.  However, if you sell the home within 3 years of purchase, you will have to pay the credit back.

You qualify as a first time homebuyer if it has been at least 3 years since you have owned a home.

Please contact me for more information.

Wow!  Despite the snow & bitter cold, it seems like spring! 

Right now, you are probably wondering where I am vacationing.  I am right here in Rochester!  I am talking about the local real estate market.  Houses are selling quickly and even receiving multiple offers on them.  I think this is due in part to slightly lower home values as well as the low interest rates.

In addition to the low interest rates, there is the 1st Time Homebuyers Tax Credit.  You have to purchase a home by July 1, 2009 to qualify for this, so time is running out quickly. 

If you are considering buying a home in the next few months, now is the time to take action.  Please contact me today for more information.

Should I list now or wait until spring ?

The first part of the answer depends on a seller's personal goals.  If a seller has no place to go or plans on purchasing in the future or there are other external factors that pushes their timeline out it might make sense to wait until those answers are figured out and there is less uncertainty.  This is the case for any seller at any time of the year. 

There are six main advantages for a seller to list now in December or January instead of waiting until spring:

1.  Inventory - In the spring, how many other sellers will have ended up doing the same strategy ?  They may have been waiting a year or so until the market got better or perhaps just figured it was the best time to list their property.  So come March, April and May, there will be that much more competition to potentially compete with !   By listing now, you avoid all that potential competition.

2. Motivated Buyers - Often many buyers will just wait until spring to start their search as well.  They will just be beginning the process.  Believe me the buyers that are out house hunting during the Thanksgiving and XMAS timeframes are serious and motivated.  By listing now, you will potentially get one of these buyers to write a deal on your property !

3.  Mortgage Rates -  The mortgage rates right now are at 3 year lows !  This is actually causing an uptick in buyer traffic and activity.  If you list now, you will catch this wave of increased buyers shopping for houses since mortgage rates are so low.

4.  Buyers confidence - Buyer confidence is starting to shift which is also increasing buyer traffic.  Another cause for increase traffic is for a buyer to take advantage of the $7,500 first time homebuyer tax credit which expires in the middle of 2009.  A buyer has to settle on their property before that timeframe.  By listing now, you are taking advantage of this trend of increased buyer traffic.

5.  Accomplish your goals now - When it is all said and done, wouldn't you rather have your house sold by March and April and moving on with your life than potentially just listing your house at that point in time.  I love it when we accomplish our goals ahead of schedule - it is a great feeling.  By listing now, you are positioning yourself to accomplish your goals sooner than later.

6.  Reverse Fear - Lastly, not to buy into the media's doom and gloom, but there is always risk that the housing markets could deteriorate more instead of picking up by the middle of 2009.  In addition, the reality of the market getting that much better in a short period of time is remote.  I doubt that just by waiting until spring, a sales price could be higher by 10 percent.  In fact, it could even be a little worse if you think the economy is going to deteriorate as the unemployment rate continues to skyrocket. By listing now, you avoid that extra layer of uncertainty.

Merry Christmas and Happy New Year!

I hope you and your family have a

happy, healthy Christmas

and a

prosperous 2009!

Here are today's interest rates, compliments of Sharlene Nally, Home Loan Consultant with Countrywide Bank, FSB.

Conventional                5.25%

FHA                             5.5%

Rural Housing              5.0%

SONYMA                      6.5%

Rural Housing Program

100% Financing for Rural Housing

No Down Payment Requirements

Must be a single family home & located in a designated rural area

No minimum credit score required

No limit on Sellers Concessions

Fixed Rate, 30 year loan

Loan amount can include needed repairs and closing costs

If you have any questions, need more information or would like to know if a home you are interested in qualifies, contact Amy.

$7500 Tax Credit Available for First Time Homebuyers

Who is eligible?

"First-Time" home buyers purchasing a principal residence - you are eligible if you have not owned a property in the past 3 years.  You must live in the new property for more than 50% of the time.

Time Frame

The property must be purchased between April 9, 2008 & July 1, 2009.  There is still plenty of time left!

Purchase price

The purchase price must be $75,000 or more.  (However there is credit available for homes with a lower purchase price.) 

Income Limits

$75,000 for those who file as individuals & $150,000 for those filing jointly.

Tax Return Credit

You can claim $500 credit on your tax return each year

Repayment

This tax credit must be repaid over a 15 year period. 

If you need more details or have questions, please contact Amy.

Foreclosure prevention resources available
to New Yorkers

The Subprime Lending Reform Bill was signed into law by Gov. David Paterson. This measure revamps the state’s foreclosure laws and implements a series of reforms to prevent a similar crisis in the future. 

Here are some highlights of this law:

1. Lenders must give homeowners at least 90 days warning prior to initiating foreclosure proceedings, and provide homeowners with a list of local, state-approved housing counselors.
2. Lenders must make a “reasonable and good-faith” effort to determine whether an applicant can repay a loan, and must meet with borrowers that have defaulted and face foreclosure. 
3. There are new consumer protections to require loan brokers to act in the borrower’s interest and present loans that are best suited to the borrower’s financial situation are also included as part of the package. 

For a detailed overview of the Subprime Lending Reform Bill, click here. For more information, contact Amy.

Top Sales Agent

September 2008

Amy Merrill has been named Top Sales Agent for September 2008 by Prudential Discover Real Estate in Spencerport, NY

Amy works with sellers, buyers and investors in the Greater Rochester, NY Region

Call Amy for any real estate questions that you may have

If you need a Real Estate Professional that will work hard for you, call Amy Merrill