The Truth About Real Estate

Allyson Ryan, Nothnagle Realtors Page 4 Editor, sits down with Nancy Vesling, Associate Broker at Nothnagle Realtors’ Pittsford office:

AR: Nancy, first we would like to thank you for taking time out of your schedule to sit down with us and answer some questions about the current state of our real estate market.
NV: You’re welcome! I’m happy to help. Did you know that as a part of the Nothnagle Team, I’m part of 20% of the Monroe County real estate agents, and as a part of that team – we are involved in about 55% of all real estate transactions in Rochester?
AR: Wow! I know that being a part of a great company like Nothnagle has its advantages, and I see our presence all over the place, but that statistic is staggering!
NV: No kidding! The market is still hot right now. There are two to three times more homes for sale now than there were last year.
AR: Why is that? I’ve been noticing a lot of homes popping up for sale in my neighborhood this year, and they seem to go pretty quickly.
NV: Well that’s because homes that are in "move-in" or pristine condition sell quickly and at a great price in most areas of Greater Rochester.
AR: I have considered jumping on that bandwagon myself, but right now I’m not sure how great of a rate I could get on a new mortgage.
NV: Well the rates right now are great! Depending on the week, the mortgage loan rates have been fluctuating between 6.0% and 6.5% per week – which is excellent! However, it is important to note that banks are being more cautious, so those with a low credit score or 100% financing would be paying a higher rate.
AR: That’s good to know – my husband and I bought our home two and a half years
ago and since it’s a starter home, we figured we’ll be out in another two to three years. I hope prices don’t get too out of control by then!
NV: I wouldn’t worry. Our market continues to be strong and steady. In the April issue of Money Magazine, Rochester was listed in the top 100 areas with the best growth in 2007-2008, with a prediction of 3.7% growth. There wasn’t a "bubble burst" so home prices have not changed all that much. We don’t have the real highs or lows.
AR: You mentioned before that there are more homes for sale now than there were last year. Can you tell me more about that?
NV: In April 2006 our Pittsford office listed 30 homes for sale – this year we listed 91!
AR: Well the numbers certainly speak for themselves Nancy! Do you have any advice for our readers and future clients?
NV: If you’re selling your home, spending a little money up front gains you more money at the time of sale. It’s important (and always my goal) to make your home shine above the others. Using a home stager and taking advantage of my list of home improvement people from handymen to painters will always help you along the road of selling a home.
AR: That’s great information – you work as a Buyer’s Agent as well right?
NV: Yes, as a relocation specialist and Rochester native I am committed to all of my clients and follow their sale from contract to closing.
AR: Nancy, I understand this coming January will mark your 15th year with Nothnagle Realtors, and we wanted to convey our sincere appreciation for your commitment to the company and the residents of the Greater Rochester area. Thank you for your time today.
NV: It’s been my pleasure!

Understanding Seller Concessions

A Conversation with Christine Nothnagle, President of Nothnagle Home Securities Corp., and Brian Donovan, Associate Broker at Nothnagle Realtors

Christine: One of the biggest challenges buyers encounter when purchasing a home is having enough savings for the down payment, closing costs and upfront escrows. Today, many purchase offers are written with the seller contributing some of their equity over to the buyer at the closing to help them meet cash requirements for closing.
This is referred to as seller concessions. Commonly, you may find purchase offers written with the seller contributing from 3% to 6% of the purchase price towards the buyer’s closing costs. The allowable percentage of contributions depends on what type of financing the buyer has selected. Each mortgage program has its own requirements.
Many sellers today understand that it is very common practice to accept a purchase offer with seller concessions. A high percentage of purchase offers are written with seller contributions. When reviewing the seller’s options, your real estate agent will address your final proceeds upon closing.

Brian: The benefit that the buyer reaps from the seller concessions is a home that may not be otherwise possible at that point and time. Also, if the seller contributes to the sales process, it will create a bigger buyer demand for their home. When demand rises and supply remains the same, the result is a higher price!
The seller is not interested in the sale price as much as the net dollar proceeds they will receive from that sales transaction. The seller con-cessions become an additional dollar investment by the seller to achieve the market’s highest and best price for the seller’s benefit.
The result is a win - win for both buyer and seller. The buyer’s dream of the home has been achieved, and the seller’s goal for a timely sale has been reached.

The Differences Between a Condominium and a Townhouse

Under condominium ownership each owner holds a title to the living space of the common elements (interior walls, floors and ceilings). Each owner receives an individual tax bill and may mortgage the unit. Expenses for operating the building are collected by the association, most often on a monthly basis. These are called Condominium Association fees which cover general repairs and maintenance to the common areas of the complex (the foundation, exterior walls and roof). In some cases any common areas and amenities such as swimming pools, clubhouses, tennis courts, play areas, along with heat and hot water are included.
In New York State, a condominium property is customarily administered by an association of unit owners or a board of managers that are elected by the unit owners. The board may manage the property on its own or engage a professional property manager. Owners pay monthly charges for maintenance purposes.

Is a Condominium for You?
• Do you want absolutely nothing to do with exterior maintenance and repairs?
• Do you like the idea of amenities, but not the idea of having to pay for them on your own?
• Do you like the feeling of security with numerous and close by neighbors?
Townhouse occupants own the land directly beneath their unit and the living unit including the roof and basement. Occasionally a small lawn or patio is individually owned as well. The term townhouse, as it refers to shared housing, describes a type of ownership rather than an architectural style. Although the organization is similar to condominiums, townhouses often take on the term of "attached row houses." Most often townhouse owners also pay a monthly fee to the Homeowners’ Association which covers common area maintenance and may cover exterior maintenance, master insurance, etc.

Is a Townhouse for You?
• Do you like the idea of your "space" but not having to deal with most exterior maintenance?
• Is a small backyard or deck just about all the yard you need?
• Does the idea of having neighbors close by not really bother you --- you just don’t want them above and below as well as next to you?

It’s important that you investigate an association when you buy a condominium or townhouse. Both associations are required to file a declaration of covenants, conditions and restrictions. The declaration is referred to as the bylaws, and it is recommended that you request a copy to review in which it discloses precisely how the association is to be structured, its duties and responsibilities and what restrictions are placed on all owners as to acceptable modifications and improvements to their individual units.