Priscilla's Bronxville Real Estate Blog

            The first four months of 2012 continued to show tangible improvement over the same period last year for the sale of single family homes: 14 this year versus 8 last year. The number of co-ops sold also rose, to 12 this year versus 9 last year for the same period.  While the average price for single family homes actually declined slightly, to $1,949,929 this year versus $2,029,909 last year for the same period, we need to look at the pipeline to get a truer picture.

            Of the 34 homes currently on the market, 16 had asking prices over $2 million and 14 had asking prices of between $1 million and $2 million. An additional 11 houses were under Conditional Contract and the sales of another 30 were pending (all; conditions met, just waiting for the sale to close). Of those that are pending, 18 had asking prices of $2 million or more.

            This data bodes well for what is ahead. The market has been robust with 45 sales pending or closed year–to-date versus 47 sales for full year 2011, although average prices for single family homes are currently on a par with full year 2011 ($1,949,929 year-to-date 2012 versus $1,919,881 for full year 2011).  The average sales price should improve as closings occur for the sales now pending.

43 percent of Americans had less than $10,000 saved in 2010. Perhaps you’re one of them — or whatever you may have saved so far, you know it isn’t enough.

The good news is that it’s not too late and with the right planning, you can retire comfortably no matter what your age. According to retirement planning specialist Derrick Kinney of Derrick Kinney & Associates, never think that you’re too old to start saving for retirement. As he explains, the years between your 40s and 60s represent a timeframe when many of the financial obligations associated with raising a family have decreased, allowing you to put retirement savings into overdrive.

Kinney offers the following tips for speeding up the process:
•Create a detailed catch-up plan. Determining the amount of money you will need in retirement can be difficult. You must factor in the inflation rate, your retirement age, the longevity of your retirement and your expected expenses, including your increased medical costs. For obvious reasons, calculating retirement income can get complex fast, but there are online calculators that can provide an estimate. Plus, there are some widely accepted guidelines you can use as a baseline such as planning to live on 80 percent of your pre-retirement income. After you have determined the estimated amount of money you will need to save, use that number to create realistic, yearly goals.
•Redirect spending to build your savings. Since you are beginning to save later in life, Kinney recommends you save 20 percent of your salary each month. Take advantage of online budgeting websites and smartphone apps that connect to your accounts and track your spending to determine wasteful spending habits. Cut out these habits and redirect the money to your savings account. Also, consider automatically directing any raises you receive to your savings account. You can’t miss money you never touched.
•Invest wisely and max out your 401(k). After you have built up your savings, you will need to invest some of it to ensure future income. Yes, the market does fluctuate, says Kinney, but overall, it has a pretty good track record and still remains a good bet against fighting inflation. Begin investing by maxing out your contributions to your 401(k), 403(b) or IRA. Next, consider purchasing exchange traded funds (ETFs) or mutual funds. Make it a point to review your investments periodically to ensure they are performing to your expectations.
•Buy the appropriate insurance. Statistics show that nearly 2/3 of retirees will need long-term care either at home or through an assisted living facility and the cost can be upwards of $50,000 annually. To ensure skyrocketing medical costs won’t destroy their financial security, retirees should consider purchasing long-term care insurance as well as health insurance, says Kinney. It’s important to realize long-term care insurance does not cover the same day-to-day medical expenses that health insurance covers and if you retire at 59.5 you are on your own when it comes to providing health insurance. Retirees may also want to consider buying life insurance if they have dependents.
Following the above four steps can put anyone on the path to a more secure retirement, even if you’re in your 40s, 50s or 60s.

People have sometimes been forced to redo or tear down a remodeling project because it didn’t live up to code. While many believe that investigating building codes is too confusing, time consuming and costly, the consequences of not getting the necessary permits before starting a construction project are both upsetting and expensive.

Securing a building permit before you start planning a renovation can also prove critical should you sell your home in the near or distant future. Potential buyers could request proof of permit for that room above the garage you added. Not having one is a risk most buyers wouldn’t want to absorb.

Building codes were designed to set public-safety standards for things like construction, maintenance, use and occupancy. Codes address all aspects of construction, including structural integrity, fire resistance, safe exits, lighting, electrical, energy conservation, plumbing, ventilation, and correct use of construction materials.

In order to make a change to your property, you need a permit that states your renovations coincide with all applicable building codes. Permits may be needed to cover projects such as the installation of foundations and sprinkler systems, the addition of a porch or deck, changes to driveways and room additions. These codes are modified often, and established and enforced by government officials or politicians. Enforcement tactics can include denying permits, occupancy certificates, or imposing fines.

Codes vary with location—each state, county, city and town can have their own specialized codes for things like electricity, plumbing, construction and fire. Typically, each code or permit requires separate inspections and inspectors. Inquire with your city hall to find out the correct department and process for securing permits.

Some homeowners avoid securing a building permit to avoid a potential increase in property taxes should the renovation result in an increase in the assessed value of the property. However, the extra precautionary step is vital and ensures you won’t suffer from repercussions such as hefty fines, or having to tear down your new deck due to improper construction or zoning. Taking the time to check on your local building codes and obtaining a permit will help ensure your renovation project goes smoothly.

If you’re planing a road trip this summer, the current price of gas, well over $4 in many areas of the country, is an incentive to reduce your car’s gasoline consumption and is critical to reducing the impact the trip will have on your wallet. And, as with most cost-cutting tactics, it’s the small steps you take that will add up to savings. Adhere to the following top 10 mileage-friendly steps and start spending some of that gas money on yourself and your family.

1. Drive smoothly – Chill out behind the wheel. Aggressive driving habits—i.e., speeding up to red lights, slamming on the brakes—actually lowers gas mileage.

2. Slow down – Most cars get the best fuel efficiency between 45 and 55 miles per hour. Driving at more than 60 mph can cut efficiency by up to 23%.

3. Reduce idling – Get out of the drive-through lane and park your car instead. Idling wastes more gas than turning off the engine and restarting. If your wait is over 20 seconds, turn the engine off.

4. Use lower-grade fuel – Regular unleaded gas won’t hurt most engines, even if premium is recommended. Unless your engine starts to knock or ping, stick to the lower grade.

5. Travel light – An extra 100 pounds of weight in the trunk or back seat can reduce mileage by as much as 2%.

6. Go without AC – Turn on the ventilator instead. It’s the most fuel-efficient way to cool your car. But don’t open the windows. Driving fast with the windows open burns more gas than the air conditioner.

7. Replace or tighten the gas cap – Wait until you hear the click after fueling up. Fuel evaporates through loose or broken gas cap seals, reducing mileage by 2% or more.

8. Check your tire pressure – Improperly inflated tires have a higher rolling resistance, which reduces efficiency. Keeping your tires at the recommended pressure can increase gas mileage by 3% or more.

9. Change the oil – Energy-conserving or synthetic motor oil can reduce engine friction and improve efficiency by up to 2%.

10. Replace spark plugs – Misfiring spark plugs can cut gas mileage by as much as 30%.

While none of the above steps are difficult or time-consuming, they can have a big impact on your number of visits to the pump. Travel safely—and cost-effectively!—this summer.

Once a roof leaks, it not just the roof that needs repair, but the walls and anything the leak dripped on. In the Bronxville area, we have been getting our fair share of rain storms. Clearly the best way to avoid the costs and frustrations of leak damage are to prevent leaks in the first place. While roofing problems are obviously exacerbated by rain, there are other insidious, but lesser-known sources that contribute to roof leak issues. Whether you’ve got a new home or an older one, most roof shingles, on average, can go 15 years without needing repair—but a roof can deteriorate well before the 15-year mark, and the longer you wait to repair it, the more expensive the repair will likely be.

By being aware of the various problems that can lead to major roof leaks, you can catch them early, avoid expensive repairs, and prolong the life of your roof. Of course, this is especially critical if you are approaching the home-buying or –selling process. Home inspection company Pillar To Post recommends that you keep a close watch for the following roofing red flags and correct them as soon as possible:

1. Incorrect shingle installation. Even the strongest shingles won’t stand up to rain if they’re not properly installed. Improper joint locations and a lack of underlay are two issues that are particularly hard to see, but can be extremely problematic.

2. Structural sagging. A sagging roof structure is often the result of moisture retention, and nearly always foreshadows, or coincides with, a leak issue.

3. Water “ponding.” Clogged roof drains and indented areas on flat roofs can cause water pooling—which is basically a leak waiting to happen.

4. Damaged nails. Even on shingles that have been expertly installed, nails are the first thing to show wear. Corroding nails leave microscopic holes that invite water in.

5. Improperly hung gutters. Gutter placement is critical and just a tiny shift caused by strong wind can tamper with the gutter system and divert rain onto the roof.

6. Moss. As moss gathers, it retains more and more moisture that you might not be able to see—until it starts dripping into the attic.

7. Insufficient insulation. Pre-1980s homes, in particular, may not have an adequate vapor barrier; if they don’t, a replacement is warranted—surface patching and minor repairs will just amount to wasted money.

8. A deteriorating chimney. Cracks, eroded joints or decaying caps in the chimney allow moisture and water to seep in.

9. Poor past repairs. From improper plastering to inadequately plugged-up holes, any past repairs that look like they’re DIY are probably not up to code and are not apt to provide leak protection in the future. Have a professional evaluate and correct as necessary.

10. Don’t forget the attic. Many leaks can actually originate in the attic so be sure not to terminate any vent or exhaust pipes in the attic.

In an effort to restore consumer confidence while laying a foundation for future economic security, the Dodd Frank Wall Street Reform and Consumer Protection Act seeks to put systems and laws in place to prevent the likes of our recent economic crisis from ever happening again.

 But what does it mean for you, the consumer? As a Member of the Top 5 in Real Estate Network®, I am committed to keeping you informed by breaking down government programs and laws into the facts you need to know. Passed on June 29, 2010, the Act represents one of the most far-reaching changes to financial regulation and oversight since the Great Depression. Here are the highlights of the Dodd-Frank Act as provided by the United States Senate Committee on Banking, Housing & Urban Affairs:

Consumer protections: The Act creates a new, independent watchdog at the Federal Reserve, designed to ensure American consumers receive full transparency when shopping for mortgages, credit cards, and other financial products, and are protected from hidden fees, abusive terms, and deceptive practices.

1. No more bailouts: The legislation claims to put an end to the possibility that taxpayers will ever again be asked to write a check to bail out financial firms that threaten the economy. Such an occurrence will be avoided by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.
2. Flagging problems in advance: Under the Act, a council will be created to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.
3. Oversight of big-wig salaries: The new legislation intends to provide shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes.
4. Keep it all on the books: The Dodd-Frank Act also seeks to strengthen oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefits special interests at the expense of American families and businesses.

I will continue to keep you informed of updates to the Dodd-Frank Act as well as other legislation and government programs that affect us as homeowners and consumers in general. For more information, visit banking.senate.gov, or e-mail me. Please pass this information on to your friends and colleagues as well.

If your home is on the market, or if you’re planning to sell your home in the near future, you might be discouraged by the national media’s rampant reports of increasing inventory and languishing sales.

While there is, indeed, plenty of inventory currently on the market, there are steps you can take as a home seller to ensure your home sells more quickly, while still garnering the maximum sales price possible. As a member of the Top 5 in Real Estate Network®, I have many years of experience working with home sellers and have learned a few strategies that really work toward securing a buyer more quickly.

1. First, for your home to sell more quickly, it must be exposed to the maximum number of buyers possible, so make sure your home is listed with a local brokerage that has a comprehensive understanding of your market area and knows how to employ technology to increase exposure. Find out how they will market your home online, what listing portals they will use, how they will utilize social media, how many pictures they will post, videos, etc.
2. While it’s understandable that you’d like the largest downpayment possible from a buyer, be willing to accept a smaller downpayment, provided the buyer has been preapproved for a loan. This can make a huge difference to cash-strapped buyers.
3. Do some legwork and ask your real estate agent for a tour of competitive properties. This will help distinguish what features of your home you should highlight or what small changes you can make to give your home an edge over the competition.
4. Choose your battles and understand where certain concessions might work in your favor. In a slow market, for example, it may be better to pay a “seller contribution” to help buyers offset closing costs than to lower the sale price. While a seller contribution may be smaller than a price reduction, it is often more attractive to buyers who need cash to close.
5. Consider including some value-added items in the sale of your home, such as the swing set in the backyard, the washer and dryer, or items of furniture that buyers fall in love with and/or really need. A few freebies might be just what you need to close the deal.

If you would like to learn other ideas for selling your home more quickly, please contact me. Also, please forward this email on to anyone else in your network that has concerns about effectively selling their home.