Priscilla's Bronxville Real Estate Blog

News and insights on Bronxville real estate, buying, selling, and the Bronxville community.

Mortgage Rates Drop Again, Leading Homebuyers to Move Off the Fence

Posted By Priscilla on February 8th, 2012
Posted in Bronxville Real Estate, Buyer, Resources, Tax Matters | No Comments »

Conditions have once again turned in favor of people who want to buy a home or re-finance. According to Bankrate.com’s weekly national survey, mortgage rates hit yet another record low, with the average 30-year fixed mortgage rate falling to 4.12 percent. The average 30-year fixed mortgage has an average of 0.29 discount and origination points.

Meanwhile, the average 15-year fixed mortgage retreated to 3.34 percent, while the jumbo 30-year fixed mortgage slid to 4.55 percent. The average 5-year and 7-year adjustable mortgage rates dropped to 3.02 percent and 3.24 percent, respectively. All of these are record lows.

This most recent drop in rates was just announced by Ben Bernanke and the Federal Reserve, along with a pledge to keep short-term interest rates on hold until late 2014. However, given the continued volatility in the market, along with the unpredictable nature of a presidential election year, if you’re considering a home purchase or a refinance, act quickly to take full advantage of low rates.

Bankrate points out just how significant these historic rates really are. Think about this: The last time mortgage rates were above 6 percent was November 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now at 4.12 percent, the monthly payment for the same size loan would be $968.72, a difference of $273 per month for anyone refinancing now.

Here are other important specifics from Bankrate’s national weekly mortgage survey:
•30-year fixed: 4.12 percent – down from 4.25 percent last week (avg. points: 0.29)
•15-year fixed: 3.34 percent – down from 3.45 percent last week (avg. points: 0.30)
•5/1 ARM: 3.02 percent – down from 3.09 percent last week (avg. points: 0.31)
If you’d like to take advantage of these incredible market conditions, remember to do the following before embarking on your home search:
•Make sure your finances are in order and your credit is in good shape.
•Research homes in neighborhoods you’re interested in online first to help narrow your selection. This will save time when viewing homes in person, allowing you to place a bid faster.
•If you need to sell your current home first, contact a real estate professional right away to find out what repairs/improvements you might need to make before putting your home on the market.

For 2012 — Ten Money Saving Tips

Posted By Priscilla on January 30th, 2012
Posted in Buyer, Home and Away, Resources, Seller | No Comments »

Small steps can yield big gains when it comes to improving your personal financial profile. Whether you’re saving for a down payment or dealing with increased expenses having just moved into a new home, the following tips from SWparents.com are great ways to save money in a variety of areas. Start today and you’ll quickly notice the positive impact on your bottom line:
1.You’ve probably heard this since you were a kid, but really…turn off all lights when you leave a room. Train your kids—usually the worst offenders—to do the same.
2.Have an honest conversation with yourself: If you haven’t used your gym membership in more than six months, cancel it. You can always rejoin and probably take advantage of a better deal when you do. Some gyms will even offer to “freeze” your membership, allowing you to pick back up after a certain period of time.
3.Save Starbucks and the like for a special treat. If you buy a $4 coffee five days per week, that’s $80 per month. Record your coffee-buying expenses for a month and see what your own personal damage is…then adjust accordingly!
4.Ditto for lunch. Even grabbing a burger at a fast-food chain adds up. Start packing your lunch instead. An easy way to accomplish this is by cooking extra at dinner or on the weekends, then packing lunch-sized portions in advance. If you’re banking on making lunch during the morning rush, odds are you’ll run out of time and end up buying lunch instead.
5.Do everything you can to increase your credit score. You will save tens of thousands of dollars in interest from any loans you have simply by having a better credit score.
6.Call every company you have monthly bills with and ask exactly what you are paying for each month. You will be surprised how many hidden fees are mysteriously added to your bills. You will never know this unless you ask.
7.Consider paying interest-bearing loans twice a month instead of once a month. You might be able to knock thousands of dollars off your total bill. Arrange automatic payments with your bank on the first and the 15th of each month.
8.Don’t leave the water running while brushing your teeth or shaving in the shower.
9.Odds are you can reduce your cable bill. With the plethora of options for on-demand and online viewing, chances are you no longer need 200 channels and three DVR boxes.
10.Buy anything and everything you can from second-hand stores. Second-hand doesn’t have to mean poor quality. In fact, most people donate items to these outlets because they are unused or hardly used, making it wasteful for them to be disposed of. Utilize this strategy with kids, who grow out of clothing and shoes at a rapid rate. Many teens also love shopping at second-hand stores where they can get the most bang for their buck, along with vintage or retro items.

WHY CASH IS KING

Posted By Priscilla on January 23rd, 2012
Posted in Bronxville Real Estate, Buyer, Real Estate Trends, Resources, Seller | No Comments »

Beyond the Numbers 1.4.12

WHY CASH IS KING
By: Priscilla Toomey
Associate Broker, JD, Top5, ABR
Bronxville-Ley Real Estate

With the New Year comes resolutions, and one of the most common is to slim down. If you are planning to buy real estate in the near future, slimming down on spending while fattening up your cash reserves is another worthwhile resolution to make — and keep. In other words, save as much cash as possible for the transaction ahead.
That’s because in real estate “cash is king” and the more you have, the stronger your buying power will be. Locally, 20% equity (cash) is typically expected, although it can be more or less than that, depending on the transaction.
Sellers tend to prefer a higher percentage of cash if the buyer can pay it. That’s because in the event the property doesn’t “appraise out” for the agreed-upon price, there is still enough of a cash cushion for the transaction to go forward and close.
Appraisals are an important factor in the desire for more cash in a purchase. These days, appraisers tend to be more conservative. After all, they are working to protect the bank, not working for the buyer. Appraised value is important because lenders normally won’t lend more than 80% of the appraised value for a conventional loan.
Despite having been in a “buyers market” for some time, there have been some bidding wars. In those instances, the question may be what kind of a premium a buyer getting a mortgage needs to offer to outbid an all-cash buyer? Recently, a 5% premium offered by the buyers wasn’t enough to overcome an all cash bid. The ability of the all cash bidder to close almost immediately, instead of the sellers having to wait for a mortgage commitment to come through, plus eliminating the need for an appraisal, made the preference for the all cash offer understandable.
To prepare for the coming Spring Market it is wise to have as much cash available as possible – and to be prepared to deploy it to get the house you want.

For real estate sales in Bronxville Village at year-end 2011, inventory had decreased. There are currently 23 single family homes on the market plus 4 townhouses. Another 4 single family homes are under conditional contract, while the sales of 3 are pending. One townhouse is under conditional contract and the sale of another is pending. One condo apartment is active on the market and there are none under contract or whose sale is pending. There are 27 active co-ops, plus 5 under conditional contract and three whose sales are pending. Evidencing the decrease in inventory, in November, the number of single family homes on the market was 29, the number of townhouses was 10, the number of co-op apartments was 39 and the number of condominium apartments was 2.
During full-year 2011, 39 single family homes sold, and 9 townhouses sold. Thus, at the moment, there is a little more than a six month inventory of single family homes and a little less than a six month inventory of townhouses. The question is how many more homes will be added to inventory as we get further into 2012.
Between January 1, 2011 and December 31, 2011, the sales of 39 single family homes closed, as did the sales of 9 townhouses, 7 condominium apartments and 36 co-op apartments. During the same period in 2010, the sales of 59 single family homes closed, as did 19 townhouses, no condominium apartments and 41 co-ops. The number of sales of single family homes and townhouses combined for 2010 was thus 78, an increase from prior years representing a year when pent-up demand was a significant factor driving the market.
Mortgage interest rates continued to fall slightly month to month. According to BankRate.com, for a 30 year conventional fixed-rate mortgage, they were at 3.94% versus 4.06% in mid-November. Fifteen year conventional fixed rate mortgages averaged 3.28% versus 3.37% in mid-November. Five year adjustable rate mortgages averaged 2.88% versus 3.01% in mid-November. *
The full year data shows a smaller than usual inventory of homes for sale in the Bronxville Village market. The absorption rate for both single family homes and townhouses is approximately 6 months, and for co-ops it is about 9 months, representing a decrease in both categories in the past few months, and a number representing a market which is more balanced between buyers and sellers in the single family home/townhouse segment. The next couple of months will signal to what extent the local market is recovering.

*Source of mortgage rates: BankRate.com

Your Down Payment — Bigger is Better

Posted By Priscilla on November 18th, 2011
Posted in Bronxville Real Estate, Buyer, Real Estate Trends, Resources | No Comments »

5 Important Steps for First-Time Home Buyers

Posted By Priscilla on November 15th, 2011
Posted in Bronxville Real Estate, Buyer, Real Estate Trends, Resources | No Comments »

As you’ve probably heard, the real estate market in Bronxville and Southern Westchester offers opportunities for first-time home buyers. While shopping for your first home is an exciting time, it can also be a stressful experience as you navigate today’s market.

Before you begin looking, make sure you’re completely prepared and know what to expect. Work with a professional real estate agent who can help guide you through the following five steps:

Step 1: Take an honest look at your finances. Before you dive into the exciting part of  home-buying – the search – make sure you have all your ducks in a row. Figuring out your finances and crunching some numbers will allow you to set a realistic budget.

Step 2: Secure a loan. After you get your finances in order, talk to lenders and mortgage brokers to ensure you can secure a loan. Shop around to get the lowest interest and overall best deal possible and make sure you understand all the fees involved. Talk to your agent whose brokerage may have an in-house mortgage lender you can work with.

Step 3: Map out your criteria. Now that you have your funding in order, begin your search. With a plethora of online home-search tools at your fingertips, it’s relatively easy to map out different types of homes and neighborhoods and find what is right for you. Make big decisions – like urban versus suburban settings, an estimated property size and neighborhood requirements – before you start to physically look at properties. This will save you time and money.

Step 4: Take notes. On your own and with the help of an agent, you’ve found some houses you’re interested in looking at. Don’t venture out without a pen, paper and camera. Keep track of important details by taking notes and pictures. Have a list of questions ready and scope out neighborhoods by driving around for a bit.

Step 5: Close the deal. If you’ve found a home you love, don’t wait to make a move. I’ve seen many first-time buyers miss out on a home because they got cold feet and continued shopping around. Make an offer and be ready to negotiate. Once a deal has been made, thoroughly read the contract and make sure you understand everything before you sign. Then you will be ready to begin with the appraisal and home inspection process.

Pass Your Home Inspection with Flying Colors

Posted By Priscilla on November 14th, 2011
Posted in Bronxville Real Estate, Buyer, Real Estate Trends, Resources, Seller | No Comments »

 

Planning Ahead –
Part III

 

Pass Your Home
Inspection with Flying Colors

The Property Condition Disclosure Statement (“PCDS”) has been part of New York
State Law since 2002.  A seller can fill it out and sign it, or is obligated to pay the buyer $500 at closing. Whether
filled out and signed or not, the PCDS can be very useful to both sellers and
buyers as a guide to condition issues.

As a buyer or seller in today’s real estate market, it makes sense to be familiar with the
issues enumerated on the form in preparation for a purchase or sale.  For sellers, pay attention to these items to
get corrective work done in preparation for putting your house in the market.
For buyers, pay especially close attention to these items when you go around
the house with the inspector. A copy of the entire PCDS is on the link at the
end of this article.

Among other issues, the PCDS asks:

Is the property in a designated floodplain or wetland?

Is there an underground oil tank?

Has there ever been a fuel spill or leak of any kind on the
property?

Is there asbestos anywhere in the house?

Is there radon (above the EPA benchmark level of 4 pico
curies per liter) present?

Is there lead in the plumbing – or, if the house was built
before 1978, is there lead in the paint used in the house before that date?

Is there any water damage to the house?

Is there infestation or damage by termites, insects or
rodents?

What type of roof is there and how old is it?

Are there any significant defects to any part of the house’
structure?

Is the house on septic or sewer? If septic, when was it last
pumped and how frequently is it pumped?

What is the electrical amperage and are the circuit breakers
and fuses in working order?

Are there any drainage issues which have resulted in
standing water on any part of the property, including seepage into the
basement?

11 Ways to Move on a Budget

Posted By Priscilla on June 11th, 2011
Posted in Buyer, Seller | No Comments »

Whether you are planning an out-of-state move, or even moving across town, the costs associated with moving your possessions from one location to another can be a significant burden, especially given today’s economy. If you are planning on moving during the busy summer season, the following tips from Two Men and a Truck will help you save both time and money.
1. Pack all items into boxes and tape all boxes closed with packing tape. Do not use duct, Scotch or masking tapes.
2. Label all boxes by room and contents to save time when movers unload them from the truck into your new home.
3. To reduce load time, as you pack your boxes, take them to the garage or to a common area on the main floor.
4. Disassemble and reassemble items such as beds, cribs, entertainment units, etc., yourself.
5. Make sure all electronics are disconnected and wires are removed or taped tightly to the item.
6. Be prepared for the movers. Packing or disassembling items while the movers are present will increase load time and costs.
7. Move all miscellaneous unboxed items such as lamps, pictures, toys, yard tools, etc., yourself.
8. Disconnect washers/dryers/refrigerators and other large appliances to save time.
9. Reserve ample parking for the moving trucks, as long walks add to the load and unload time.
10. Make sure there is a clear walkway for the movers to get to and from the truck.
11. Be at the new location on the day of the move so movers know where to place furniture and other items.

What You Need to Look for in a Real Estate Professional

Posted By Priscilla on March 3rd, 2011
Posted in Bronxville Real Estate, Buyer, Resources | No Comments »

If selling your home is anywhere on the horizon, there are many things your are probably already considering, among them whether using the help of a real estate professional will net you the greatest return on your investment. Some homeowners choose to go it alone when it comes time to sell their home. However, according to a recent survey conducted by the Multiple Listing Service MRIS, the vast majority of consumers say working with a real estate professional is the only way to go … especially in today’s market.

In this landmark study examining the home-buying and -selling preferences of consumers in the Mid-Atlantic region, 95% reported that working with a real estate professional is just as important, if not more important, than it was just a few years ago. As a Member of the Top 5 in Real Estate Network®, I know for a fact that this rings true for all areas across the country.

As the MRIS survey reveals, today’s consumers recognize this is not the time to complete a real estate transaction on their own, and are placing a stronger emphasis on an agent’s professional skills. As such, the following criteria were ranked as the most critical factors in choosing a real estate agent (in order of importance):

•Trustworthiness
•Experience
•Willingness to look out for a client’s interest
•Expertise in negotiating contracts
•Responsiveness
•Familiarity with contracts
•Knowledge of the local community
The above requirements are evidence that consumers are seeking more than simple guidance … they are looking for an expert they can trust to execute a step-by-step process throughout the entire transaction. While most consumers rely on the Internet as the first step in the home-buying and -selling process, a professional, experienced real estate agent — such as a member of the Top 5 Network — is critical in helping consumers filter through the copious amounts of information available online in order to make the optimal real estate decision for their specific situation and location.

If you would like more information regarding what to look for in a real estate agent, and specific questions you should ask an agent during an interview, please e-mail me. I encourage you to also forward this email to anyone in your social network who may be considering a real estate transaction.

7 Moving Mistakes that Can Cost You

Posted By Priscilla on November 16th, 2010
Posted in Buyer, Real Estate Trends, Resources, Seller | No Comments »

Keeping your household organized is a challenge in the best of circumstances, let alone when you’re in the midst of dealing with the disruption of moving.

 As a member of the Top 5 in Real Estate Network®, I always take the extra steps necessary to help my clients experience a stress-free, successful move. Throughout my years in the real estate business, I’ve witnessed many common mistakes that people make during the course of a move.

 Here are seven to avoid: 

  1. Packing everything. Prior to moving, it’s important to take a look around and decide what you don’t want to keep. This will cut down on costs by not having to transfer unnecessary items.
  2. Sending it all to storage. Storage is usually expensive and just delays the inevitable. Eventually, what you store will need to be moved into your home, so try and bring it all the first time.
  3. Shopping on the Internet for move quotes without dealing with a live person. This is one instance where dealing with a live person is necessary. You need to be able to ask specific questions and have your estimate explained to you line by line so that you can see where costs can be cut.
  4. Not looking into what your homeowners’ insurance covers. For a nominal cost, these types of insurance policies may cover your goods in transit.
  5. Not taking photographs of items before disassembling them for the move. You will be unable to process an insurance claim if you don’t have proof of what the item looked like before you packed it.
  6. Overlooking the box count. If you are paying for boxes by the piece, keep track as things are being packed as each box has a different price attached to it. You don’t want to end up with 300 boxes when you only needed 200. Also, if the moving company sees that you’re keeping track, movers will be less inclined to hit you up for additional costs when the job is done.
  7. Forgetting to take inventory. If you don’t create an inventory, there’s no fool-proof way to know if you’ve left something behind or if it somehow got lost in transit.

Work closely with your real estate professional to help avoid these and other common pitfalls of moving. You can also e-mail me for more information. Please share these moving mistakes with friends and family, too, so that the journey to their new home is a happy one!

Bronxville Real Estate Buyer’s Guide

Posted By Priscilla on May 26th, 2010
Posted in Buyer, Priscilla's Articles, Resources | No Comments »

Real Estate Buyer’s Time Line — Start and Focus Your Search

Buyer’s Closing Expenses:

  1. The largest component of a Buyer’s Closing Expenses are those associated with the Buyer’s Mortgage Financing. Your Lender should be able to estimate those for you.
  2. In Westchester, Buyers and Sellers use attorneys to negotiate their contracts, do title work and close the transaction. So, the attorney’s fee is another element of Buyer’s Closing Expenses. This cost typically ranges between $1000 and $2000.
  3. Taxes are the third component of closing costs.

Read the rest of this entry »