More FAQs about the Tax Credit

Does the tax credit ever have to be repaid?

Neither the first-time home buyer tax credit nor the repeat home buyer tax credit have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

How is the amount of the tax credit determined?

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.

How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?

You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).

No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and repeat home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.

What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).

I am a first-time buyer but my husband previously owned a home that he sold two years ago. Will I qualify for the $8,000 first-time buyer tax credit?

No. Married couples are not eligible to claim the first-time home buyer tax credit if either spouse has previously owned a home within the past three years. They may, however, qualify for the repeat home buyer tax credit.

I would like to purchase my grandmother's home. Will I be eligible for the tax credit?

No. Home purchases from relatives of the taxpayer or the taxpayer’s spouse do not qualify for the tax credit. The IRS defines relatives as ancestors (parent, grandparent, etc.), lineal descendants (child, grandchildren, etc.) and spouses.

Take Advantage of the Home Buyer Tax Credit in 2010

A new year, a newly extended and expanded tax credit! Both first-time and repeat buyers may be eligible to take advantage of the tax credit in 2010. While buyers have until April 30, 2010, to be under contract, you won't want to procrastinate and potentially miss out on one of the best opportunities in real estate....and up to 8,000 incentives to buy now!

First-time buyers (defined as someone who has not owned a home in the past three years) can qualify for 10% of the purchase price, up to a maximum of $8,000. Repeat buyers (defined as someone who has owned a primary residence for five out of the past eight years) can qualify for 10% of the purchase price, up to a maximum of $6,500.

To qualify, the home must be used as a primary residence, must be under $800,000 and there are income limits of up to $125,000 for individual filers, $225,000 for married couples filing jointly. There is a modified tax credit available for some higher income individuals/couples.

The tax credit does not have to be repaid if the home is used as the primary residence for at least three years.

For more information, contact your Nothnagle agent or visit: www.realtor.org as well as the IRS information page.

Using a 203K Loan to Pay for Home Repairs

The 203K loan can be used for small repairs (with a minimum of $5000 of work) like a new roof or replacing the boiler, all the way up to practically rebuilding the home and anything in between. Maybe you love a home, the neighborhood, etc., but you hate the kitchen cabinets...the 203K may be for you.

Eligible borrows can receive a mortgage to purchase the home AND establish a Rehab Escrow Account to fund the agreed renovations. The Rehab Escrow Account is managed like a Construction Loan: money is released after work is completed, the property is inspected by the lender, and the title is updated. Like all FHA loans, the property must be owner occupied and loan approval requires full documentation of income, assets and credit worthiness. At the same time, underwriting guidelines have some flexibility built in.

Loans are processed in the same fashion as any other loan (in terms of income, asset and credit) with the exception of the appraisal. Appraisers work in conjunction with the home improvement contractor and a HUD Approved Pre-Planner to determine: “As-Is” Value, “After-Improved” Value, costs of construction, and the draw schedule of the renovation portion of the loan. This work typically adds about a week to the approval process, largely because it should be done BEFORE contracts are signed. HUD provides a calculator tool on their website to help you calculate the mortgage amount and cash requirements.

There is a Streamline(k) Limited Repair Program for projects that require less than $35,000 of repairs.

It is recommended that you work with an experienced loan officer when exploring the 203K Program, as there are many details that need to be considered (from selecting a qualified contractor to the inner workings of the draw schedule and preparing for different contingencies). While the program is more intricate, with the right education ahead of time, it is extremely manageable.

Nothnagle has two mortgage partners to assist you in finding out if the 203K program is right for you.

Another Big Gain in Existing-Home Sales

Another Big Gain in Existing-Home Sales as Buyers Respond to Tax Credit
Washington, December 22, 2009

Existing-home sales rose again in November as first-time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate1 of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.

Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

An NAR practitioner survey shows first-time buyers purchased 51 percent of homes in November, compared with an upwardly revised 50 percent of transactions in October.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.

Total housing inventory at the end of November declined 1.3 percent to 3.52 million existing homes available for sale, which represents a 6.5-month supply3 at the current sales pace, down from an 7.0-month supply in October.

Raw unsold inventory figures are 15.5 percent below a year ago. The last time there was a lower supply of homes on the market was April 2006 when it was at a 6.1-month supply.

“Nearly all markets experienced a solid sales gain from one year ago,” Yun said. “The only markets with measurably lower sales were in San Diego, Riverside, and Sacramento, where inventory shortages for lower priced homes are limiting sales.”

For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges.

The national median existing-home price4 for all housing types was $172,600 in November, which is 4.3 percent below November 2008. Distressed properties, which accounted for 33 percent of sales in November, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales jumped 8.5 percent to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1 percent above the pace of 4.06 million in November 2008. The median existing single-family home price was $171,900 in November, down 4.4 percent from a year ago.

Existing condominium and co-op sales in November were unchanged from a seasonally adjusted annual rate of 770,000 in October, but are 60.1 percent above the 481,000-unit pace a year ago. The median existing condo price5 was $178,000 in November, which is 3.1 percent below November 2008.

Regionally, existing-home sales in the Northeast rose 6.6 percent to an annual level of 1.13 million in November, and are 52.7 percent higher than November 2008. The median price in the Northeast was $223,400, down 13.1 percent from a year ago.

Existing-home sales in the Midwest increased 8.4 percent in November to a pace of 1.55 million and are 53.5 percent above a year ago. The median price in the Midwest was $140,800, a decline of 0.4 percent from November 2008.

In the South, existing-home sales rose 4.8 percent to an annual level of 2.39 million in November and are 44.8 percent higher than a year ago. The median price in the South was $151,400, down 1.4 percent from November 2008.

Existing-home sales in the West increased 10.6 percent to an annual rate of 1.46 million in November and are 28.1 percent above November 2008. The median price in the West was $231,100, which is 4.1 percent below a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Ontario Branch Raises Money for Red Kettle Challenge

Fifteen agents from the Ontario branch recently braved the cold temperatures to volunteer to collect money for the Salvation Army's Red Kettle Campaign. The project was in partnership with Boy Scout Troop 127, who is hosting a local "Red Kettle Challenge" that Nothnagle Realtors, along with other area businesses and groups, are participating in. The winner will be awarded a trophy and will compete again in next year's Challenge. The winner is not selected by the amount of money they raise, but by the unique way manner in which they appeal to the public.

Nothnagle agents dressed up as Santa and his helper elves, handing out candy as shoppers entered the Ontario Tops market. It was a great experience for our agents, who raised over $1,000 in donations and had a fun time doing it! The Ontario branch is proud to participate with the local Boy Scout troop, to demonstrate to our local youth striving to do good deeds in their community.

Special Provisions for Military in Tax Credit Law

Armed services members, as well as intelligence service and foreign service personnel, who are on active duty and out of the U.S. for 90 days during any part of 2009, will have an additional year to buy their homes and still qualify for the tax credit. The deadline to be under contract for qualifying personnel is April 30, 20ll (versus April 30, 2010 for other purchasers).

For military and other covered personnel, another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and foreign service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.

First-time homebuyers who are eligible can obtain a tax credit of $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

11 Benefits of Nothnagle Relocation Services

Looking to purchase a vacation home outside of New York? Relocating outside of the Rochester area? Have a family member in need of an agent in another market? Many people think of Nothnagle as servicing only Western/Central New York but through our affiliation with the Leading Real Estate Companies of the World member network, we can move you from anywhere to anywhere....across the state, across the country, even around the globe.

Benefits of our referral service include:

• An introduction to pre-screened, well matched Leading Real Estate Companies of the World real estate associates in over 10,000 communities worldwide.

• Free cost of living analysis before your first trip to the destination location.

• Comprehensive community information on over 10,000 communities worldwide.

• Rental assistance from our members specializing in rental and property management nationwide.

• Superior international relocation assistance through our 33 international members and other international firms who have agreed to cooperate with Leading Real Estate Companies of the World members.

• A comparative market analysis of any property in over 10,000 communities worldwide if you are interested in selling.

• Listing exposure in 33 countries and on 650 different websites for any property listed with a member of Leading Real Estate Companies of the World member.

• Premier marketing services for luxury home listings.

• Choice of home warranty programs nationwide.

• Discounts on household goods shipment if you are moving items between two states.

• Free consultation regarding corporate relocation policies and benefits from RELO Direct, Inc.

Ready to get started? Call 1-800-295-MOVE or relo@nothnagle.com. Same great service you've come to know here in Rochester....anywhere!

News on Home Equity Lines of Credit

As the housing market shows signs of stabilizing, lenders are starting to write home equity lines of credit (HELOC) again according to Money Magazine. The credit crisis and housing bust that occurred in various parts of the country led to thousands of homeowners having their HELOC cut or frozen and requests for new lines of credit rejected.

They may not be the bargain they used to be, but a line of credit can still be an inexpensive way for homeowners to borrow against the equity in their home. Previously, lenders often offered HELOCs at rates below prime. Today, HELOCs are being offered at prime plus a point or so.

If you are thinking of getting a HELOC, homeowners must have more than 20 percent equity in their home. Because lenders are only writing half as many home equity lines as they did when the economy and the real estate market were booming, homeowners are advised to borrow less and to spend wisely. HELOCs are not advised to be used on vacation or other non-necessities. Typically homeowners will use a HELOC for home improvements, in place of car loans or other private loans that have higher interest rates.

Our mortgage partners can help you learn more about qualifying for a line of credit.

Real Estate Market Report

On a national level, the Pending Home Sales Index rose 3.7% from September to October 2009, with the greatest increase (19.9%) in the Northeast. Even more significant, the increase in the Index from October 2008 to October 2009 (31.8%) was the largest increase ever recorded since the Index was established in 2001 by the National Association of REALTORS (NAR).

The Index is a forward looking indicator based on contracts signed during the previous months. Both national and local statistics indicate that there was a pent up demand of renters who purchased their first home this year and likely took advantage of the first-time buyers tax credit. NAR estimates that 350,000 buyers would not have purchased in 2009 if it were not for the tax credit. 47% of all buyers in 2009 were first-time buyers, according to the 2009 NAR Profile of Home Buyers and Sellers, and nearly 2 million buyers will take advantage of the tax credit in 2009.

It's anticipated that the expanded and extended tax credit will boost home sales by 15% in 2010. There is a lot of opportunity for real estate consumers in today's market -- 1st time buyers, repeat buyers and sellers.

1. First-Time Buyers: Continue to qualify for up to an $8,000 tax credit and income limits were increased to $125,000 (individual)/$225,000 (married), allowing even more purchasers to now qualify.

2. Repeat Buyers: The tax credit has been expanded to include repeat buyers who owned and resided in a primary residence for a minimum of 5 of the last 8 years. The same income limits apply as indicated above.

3. Sellers: Buyers need inventory to choose from! Nationally, properties on the market have been declining month to month. With the influx of buyers anticipated to enter the market in response to the tax credit, if you're thinking of selling there may not be a better time to list your property than now.

Looking to buy or sell? Need more information on the tax credit? Nothnagle agents have the training, skills and expertise to navigate through all types of market conditions. Contact a Nothnagle agent directly or select our Live Chat feature on Nothnagle.com to get started.

7 Easy Improvements to Prepare Your Home for Sale

When preparing your home for sale, you want to maximize your efforts while minimizing your costs. Now is the time to make your home sparkle! But aside from giving it a good cleaning and removing clutter, here is a list of several things you can do -- at minimal cost -- to help improve your odds for a fast sale at maximum price.

1. Replace your mailbox. Is your mailbox old, dull and rusty? Buyers notice the little details. Replace or restore your mailbox, one of the first things people will see when they approach your home. Well kept accessories demonstrates good maintenance of your property and shows attention to detail.

2. Spruce up your kitchen cabinets. Adding door knobs and drawer handles can make a big difference in your kitchen. Cupboards looking dull? Add a fresh coat of white paint to brighten up the kitchen interior.

3. Pay close attention to cleaning light switch covers. No one wants to see finger prints and dingy covers! If you can't clean up the existing covers, buying new covers is a minor expenditure that can reap great rewards.

4. Replace your toilet seats. Especially if they look worn. You'll be amazed at the huge difference it will make to brighten your bathroom and make your toilets look like new.

5. How does your front door look? A fresh coat of paint and a new door knocker will be very inviting.

6. Freshen up your floors by regrouting your tile. Especially if you have white or light-colored grout! Home improvement stores make this home improvement easy and cost effective while making your tiled floors look like new.

7. Add decorative tiles in the kitchen or bath. Your local home improvement store may even offer "how to" seminars for you to learn how adding a few tiles can make your rooms look modern while adding a little pizzaz.

What You Can Do to Improve Your Credit

Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.

Architecture Guide - Residential Styles of Homes

Every area has residential styles unique to it. In Rochester for example, homes typically fall into the categories of Cape Cod, Ranch, Colonial and Split-level. In other parts of the country, other styles are more traditional, e.g. Pueblo/Spanish Eclectic in the Southwest; Saltbox in New England; Greek Revival in the South. REALTOR Magazine features a "Residential Styles" guide which includes illustrations, photographs, and detailed descriptions about popular styles. Plus, use the Home Features guide to learn about architectural elements such as dormers, roofs, and arches that make a property distinct. You'll also find a regular column with interesting articles that educate readers about residential architectural styles and trends.

5 Factors That Determine Credit Score

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.com.

Home Inspection vs. Appraisal

A home inspection and an appraisal are two completely different things. In simple terms, an inspector evaluates the condition of your home; an appraiser estimates the value of the home. Both are important because 1) you want to make sure the home you are buying is in good condition; and 2) you want to make sure you're not borrowing more than the home is worth.

During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy. The inspector will:

1. Evaluate the physical condition: the structure, construction and mechanical systems.
2. Identify items that should be repaired or replaced.
3. Estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure and finishes.

If an inspector uncovers a problem above and beyond his/her expertise, they may recommend further testing or inspection. Being that a home is likely to be the largest single purchase an individual will make in a lifetime, Nothnagle agents will always recommend that you conduct a home inspection prior to purchase.

An appraiser will use various methods to estimate the value of the property you are purchasing. Lenders require an appraisal because they, like you, want to make sure the home is not being financed for more than it is actually worth. It needs to be "marketable."

Appraisers will compare the home to other similar homes in the area that sold within a specific time period. Similar to when an agent runs "comparables" of homes that sold or were recently listed when helping a seller properly price their home, an appraiser runs "comps" too.

For buyers who are getting an FHA mortgage, the appraisal process is slightly different. FHA requires a more visual inspection to meet FHA guidelines and requirements.

FHA appraisers are looking for conditions related to safety, security and soundness. There are certain defective conditions that an appraiser may find are required to be remedied or will require further inspection by a qualified expert, such as evidence of termites, inoperative plumbing/heating/electrical systems, leaking or worn out roof, cracked masonry or foundation damage and drainage problems. Cosmetic repairs are considered in the overall condition rating and valuation (i.e. worn carpet, crack in windowpane).

Again, even though an FHA appraisal looks at certain conditions it DOES NOT take the place of a professional home inspection. Costs add up when purchasing a home, however cutting back on spending a few hundred dollars on a professional inspection is not recommended when the lack of an inspection could cost thousands in repairs down the road.

Tips to Improve Your Credit Score

A credit score is a complex mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money. Generally, the higher the score, the less risk the person represents.

Lenders place a lot of emphasis on credit scores when evaluating whether or not they are going to approve a mortgage application. With that said, it does not mean that if you don't have a high score you won't be able to find financing (see previous post re FHA mortgages). Here are a few tips to help improve your credit score.

1. Review your credit report. Did you know that you are entitled to one free credit report every 12 months from each of the three credit bureaus? AnnualCreditReport.com is a FREE service that will allow you to pull reports from Experian, Equifax and TransUnion. It is important to look at all three agencies and to review each report for accuracy. It is not unusual to find a mistake or incorrect information.

2. Report credit report mistakes. If you find an error, you should file a dispute to correct the inaccuracies. The credit bureaus have procedures to follow that you can find on their website.

3. Pay EVERYTHING on time! This is so important as your payment history accounts for approximately 35% of your credit score. Even if some months you can only make the minimum payment, make sure it gets to the creditor before the due date.

4. Don't cancel those credit cards! Pay off your balances yes, but then keep the card open. This will increase the length of your credit history. Frequently opening and closing accounts can lower your score.

5. Keep credit card balances low. Even if you pay off your cards every month, a high average balance will impact your score. It’s better to have several credit cards open with low balances (i.e. 25% of your available credit) versus one card with a high balance.

6. If you're having trouble paying your bills, contact your creditors immediately. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, even if you pay off collection accounts it will remain on your credit report for seven years.

7. Don't keep opening new credit cards in order to "build up your credit." Every time a lender runs a credit check on you, an inquiry is recorded. The more inquiries, the lower the score. Again, lenders look at length of credit history so keeping a paid-off card open is more important than opening up new lines of credit.

8. Beware of credit repair scams. Don't do business with any company that:

* Wants you to pay for credit repair services before any services are provided;
* Does not tell you your legal rights and what you can do yourself — for free;
* Recommends that you not contact a consumer reporting company directly;
* Suggests that you try to invent a "new" credit report by applying for an Employer Identification Number to use instead of your Social Security number;
* Advises you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

Home Improvements Cost vs. Value

Thinking of remodeling? Adding on? When planning projects, many homeowners look at the possibility of recouping the cost down the road when they sell the home. A recent study ranked improvements and found the most cost recouped in these top four improvements:

1. Vinyl siding replacement
2. Deck addition (wood; also one of the least expensive)
3. Minor kitchen remodel
4. Window replacement (vinyl or wood)

The projects that recouped the least amount of the cost are:

1. Home office remodel
2. Sunroom addition
3. Installation of a backup power generator
4. Bathroom addition

For more information, read the article on Remodeling Magazine's survey of cost vs. value.

Why Consider an FHA Loan?

There are many reasons for homebuyers to investigate an FHA home purchase. First time homebuyers should explore FHA loan options because it’s easier to qualify for an FHA home mortgage. Your loan is guaranteed by the government, making your application more attractive to lenders. An FHA home mortgage often costs less and is more forgiving of indiscretions with credit and payments.

FHA home loans don’t require a big down payment at closing time. For first-time homebuyers this can be a real plus. The FHA mortgage requires a low 3.5% down payment, and that money can come from a variety of sources including HUD down payment assistance grants.

For first time buyers, closing costs are another issue that can be a financial drain; typical closing costs for FHA home loans are around 2% or 3% of the total mortgage. One advantage when taking out an FHA loan? FHA mortgage terms may allow you to build in closing costs into your mortgage.

By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

Resources:
FHA Loan Limits for New York State
FHA Mortgage Calculator
FHA Guidelines
Down Payment Grants

Every situation is unique; contact a lender to discuss your options.

Forecast Hopeful With First Time Buyers Leading the Way

According to the National Association of REALTORS, the outlook for housing and the economy appears headed for a sustainable recovery, aided by the homebuyer tax credit.

The credit is working better than first projected, according to Lawrence Yun, NAR Chief Economist, who predicts that nationwide we will have 2.3 to 2.4 million first-time buyers in 2009. The 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.

Dr. Yun forecasts the 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter of 2009, rising gradually to 5.8 percent by the end of next year. "With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5 percent in 2010, but with wide geographic differences,” Yun said.

The Rochester market has been relatively unaffected by the recent housing crisis experienced in other parts of the country. Sales have dipped slightly but median price has held fairly steady. While other parts of the country experienced dramatic appreciation at the height of the market, Rochester was not as affected. So while others crashed, we did not have as far to drop. Across New York State in October, prices were up 2.4% and sales up 8% from October 2008.

The tax credit has been extended for first-time buyers through April 30, 2010 and now expanded to include repeat buyers. Income limits have been increased as well, now allowing many buyers who didn't qualify previously to be eligible for the tax credit. New income limits are $125,000 (single filers)/$225,000 (married filing joint).

The credit is equal to 10% of the purchase price, up to $8,000 for first-time buyers (defined as someone who has not owned a residence for the past three years) and $6,500 for repeat buyers. Qualifying repeat buyers must have lived in their home and used it as their primary residence for five consecutive years out of the last 8.

Eligible buyers must be under contract by April 30, 2010 and close by June 30, 2010. See earlier blog posts or visit FederalHousingTaxCredit.com for a list of frequently asked questions about the credit.

Remembering Our Troops on Thanksgiving

Agents from the Penfield branch recently got together to put together care packages to send over to our troops in Iraq. The office thought it would be a great way to remind our soldiers that we're thinking about them and grateful for the sacrifices they are making for us being so far from home and their families during the holidays. On November 19th, the office manager received the following message via email:

Dear Penfield Sales Staff:

Greetings from beautiful Iraq. Thank you so much for thinking of us and sending such wonderfully useful items. I will disperse the goodies to my Marines this evening.

We are a unit based out of Camp Lejeane, North Carolina. We have been here a few months so far and will be here for Christmas and beyond. Your treats will bring smiles to everyone's faces.

I am from Canandaigua and went to high school at McQuaid (not too far from you all) so I truly appreciate the hometown support. Thank you once again.

Sincerely,
Captain Justin Muchard, USMC

Nothnagle Relocation - Moving You Anywhere!

Nothnagle's Relocation division received among the best scores of all Preferred Brokers on the 3rd Quarter 2009 SIRVA Relocation Broker Score Card. Nothnagle Realtors is affiliated with SIRVA, Inc., which provides end-to-end relocation services worldwide. From home purchases and sale services, to moving, mortgage services and program management, Nothnagle and SIRVA can do it all! Nothnagle's Relocation division exceeded goals for home sales, average days listed (15 vs. 90), and average days on market (66 vs. 120) during the 3rd Quarter.

Whether you are moving across the country or around the globe, Nothnagle Realtors can help you achieve your goals through affiliations with partners like SIRVA. SIRVA conducts more than 300,000 relocations every year and operates in more than 40 countries with an extensive network of agents and other service providers in over 175 countries.

In need of relocation services? We have experience moving individuals as well as entire companies to and from Rochester. Contact Nothnagle's Relocation division today.

As a repeat buyer, how do I qualify for the $6500 tax credit?

As of November 7, 2009, "repeat" or "move up" buyers now may qualify for 10% of the purchase price, up to $6500, in the form of a federal tax credit. This is part of the home buyer's tax credit that previously was only available to first-time buyers but now has been expanded. To qualify, a "repeat" buyer must have resided in a home they used as their primary residence for a minimum of five consecutive years out of the past eight years. The purchase price of the new home cannot exceed $800,000 and annual income cannot exceed $125,000 (single filers) or $225,000 (married filing jointly). The new home must be used as the buyer's primary residence and the cost of the new home being purchased does NOT have to be higher than the previously owned home. The buyer must be under contract by April 30, 2010 and close before July 1, 2010.

The tax credit is still available to first-time buyers of 10% of the purchase price up to $8000. A first-time buyer is defined as anyone who has not owned a home in the past three years. The April 30th deadline and income limits described above also apply to first-time buyers.

There are some exceptions for active duty U.S. military personnel, granting those deployed an extra year to claim the credit. For more information, visit Federal Housing Tax Credit.

It is a great time to buy and sell in Rochester! Our market continues to rank among the healthiest in the country - prices are stable, interest rates are low, homes are affordable and there's a good supply of inventory. Contact a Nothnagle agent today to discover how both buyers and sellers Get More using Nothnagle Realtors.

5 Kitchen and Bath Features Buyers Want Most

According to the Profile of Buyers' Home Feature Preferences compiled by the National Association of Realtors, buyers ranked the following features as most desired:

1. Separate shower enclosure in the master bath (36%)
2. Eat-in kitchen (31%)
3. High-end appliances (24%)
4. Granite countertops (23%)
5. Kitchen island (21%)

Comments included a preference for kitchen islands that are not a simple square shape, but are attractive while incorporating a lot of storage. Shower preferences include multiple shower heads and outside vents to cut down on mold buildup on grout and behind the walls. Stainless steel appliances are still alluring to buyers and customized appliances -- like removable fronts and trivection ovens that simultaneously use thermal heat, convection and microwave cooking, are growing in popularity.

7 Reasons to Own Your Own Home

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator.

Source: REALTOR Magazine

5 Feng Shui Concepts to Help a Home Sell

To put the best face on a listing and appeal to buyers who follow feng shui principles, keep these tips in mind.

1. Pay special attention to the front door, which is considered the “mouth of chi” (chi is the “life force” of all things) and one of the most powerful aspects of the entire property. Abundance, blessings, opportunities, and good fortune enter through the front door. It’s also the first impression buyers have of how well the sellers have taken care of the rest of the property. Make sure the area around the front door is swept clean, free of cobwebs and clutter. Make sure all lighting is straight and properly hung. Better yet, light the path leading up to the front door to create an inviting atmosphere.

2. Chi energy can be flushed away wherever there are drains in the home. To keep the good forces of a home in, always keep the toilet seats down and close the doors to bathrooms.

3. The master bed should be in a place of honor, power, and protection, which is farthest from and facing toward the entryway of the room. It’s even better if you can place the bed diagonally in the farthest corner. Paint the room in colors that promote serenity, relaxation, and romance, such as soft tones of green, blue, and lavender.

4. The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while also softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the windows professionally cleaned will make the home sparkle and ensure that the view will be optimally displayed.

Source: From REALTOR Magazine, Sell Your Home Faster With Feng Shuiby Holly Ziegler (Dragon Chi Publications, 2001)

Brockport Branch Thanksgiving Food Drive

The agents in our Brockport branch are collecting non-perishable food items and monetary donations to be used towards purchasing turkeys to provide Thanksgiving dinners to those in need within our community. We welcome public donations! If you would like to drop off an item, please stop in at the Brockport branch between 9 a.m. - 2 p.m. or call 585-637-2810. There are a lot of families in need this holiday season and we hope to be able to provide several with a Thanksgiving feast this year.

10 Ways to Prepare for Homeownership

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment, however options such as FHA and other programs will require a much lower down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a Nothnagle agent! They are experienced professionals who can help guide you through the process. Often, a buyer's agent is compensated by the seller so you will get representation, a skilled negotiator and a trusted advisor to help you navigate through the adventure of finding your new home.

Cartons for Christmas 2009

The Nothnagle Spencerport branch will be serving as an early drop-off location from November 9 - December 4 for non-perishable food items. The goal of this community project is to provide food and toys for local families in need at the holidays. Last year the Cartons for Christmas project delivered almost 12,000 food items and 280 toys to 121 families (490 people). Nothnagle is helping to collect food items for the cartons that will be delivered at Christmas. Non-perishable items such as canned fruits and vegetables, jarred/canned gravy, boxed items such as pasta, rice or side dishes, or other items that will not expire and do not require refrigeration are being sought. Monetary donations are also being accepted. Checks should be made payable to "Cartons for Christmas" and can also be dropped off at the Spencerport branch, located at 85 South Union Street.

More on the Home Buyer Tax Credits

The first-time homebuyer's tax credit has been extended beyond the original deadline of November 30, 2009. Under the new program first-time buyers have to be under contract by April 30, 2010 and close before July 1, 2010. First-time buyers may qualify for 10% of the purchase price, up to a maximum of $8,000.

The tax credit has been extended to qualified move-up/repeat buyers purchasing a principal residence after November 6, 2009. The same deadlines apply, the purchaser must be under contract by April 30, 2010, with a close date before July 1, 2010.

Some commonly asked questions about the tax credit:

Who qualifies as a first-time buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

Who qualifies as a move-up/repeat buyer?

The law defines this type of buyer as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. Repeat buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit. Also, if the buyer sold their previous home and has been living elsewhere for up to three years, they may still qualify for the tax credit if they meet the residency requirement of living in the previous home for five consecutive years out of the past eight.

What are the new income limits?

For sales occuring after November 6, 2009, the new limits allow individuals to earn up to $125,000/year and married couples up to $225,000/year. For sales that closed between January 1, 2009 and November 6, 2009, the income limits were $75,000 (single taxpayers)/$150,000 (married filing jointly).

Is there a partial tax credit for higher incomes?

The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 (single)/$225,000 (married). The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts. If you fall within this limit, consult with a tax adviser to determine the actual amount of your tax credit.

What types of homes qualify?

Any home that will be used as a principal residence will qualify for the credit, as long as the purchase price is less than or equal to $800,000. This includes single-family (existing and new), townhouses, condos, manufactured homes and houseboats. Homes purchased from family members are not eligible.

Is there a minimum amount of time I must remain in the home?

You must remain in the home using it as your primary residence for a minimum of three years. If you sell the house within the initial three years, you will be required to return the tax credit.

Nothnagle Realtors Expands to Buffalo

Nothnagle announced today the launch of Nothnagle Realtors Property Center, a franchised office under the ownership and management of industry veteran Mark Pagano. Nothnagle Realtors Property Center will open in two locations by early 2010, in the City of Buffalo and in the Clarence/Williamsville area.

“Our current growth strategy focuses on establishing partnerships with other like-minded brokers to provide them with a successful platform to become market leaders in their area. The franchise arrangement allows brokers to maintain their independence while tapping into our successful infrastructure. Mark Pagano is an experienced broker with an exceptional business-sense. We share the same vision and believe that by empowering agents with the most innovative tools in the industry, we can offer the best buyer and seller experience in the Buffalo market,” said Armand D’Alfonso, President and CEO of Nothnagle Realtors.

This is the first franchise sale for Nothnagle Realtors. However, Nothnagle Realtors is familiar with franchise operations having launched the first real estate franchise system in the country back in the 1950’s. At its peak, the “Gallery of Homes” franchise had an international network of 1,100 offices prior to being sold off in the 1980s.

“Nothnagle not only creates innovative tools, they use them every day as a real estate company, so they understand the challenges I face in today’s market because they face them too. From the award-winning consumer-focused website, Nothnagle.com, to the comprehensive marketing tools and agent systems, Nothnagle’s advanced technologies have not been available in one platform in our market before now. It is a great fit for us. Our clients and agents will all benefit as a result,” said Mark Pagano, President of Nothnagle Realtors Property Center.

Nothnagle recently hired Jay Teresi, Director of New Business Development, to handle our franchise operations. Jay has over 20 years experience in the financial and real estate industries. He owned his own real estate company in Manhattan and before joining Nothnagle, he worked for Weichert Real Estate Affiliates, growing their franchise company in several Northeast states.

Nothnagle's goal is to initially concentrate on franchise sales in New York State and then move beyond into New Jersey and Pennsylvania. This will not affect the company-owned branches; all 24 will remain under the same ownership and management.

More on Homebuyer Tax Credit Changes

Lots of questions are coming in about the changes to the Homebuyers Tax Credit! This is great news for buyers and sellers in the Rochester marketplace. We are providing Nothnagle agents with a wealth of resources and information about the changes to the tax credit so they can be prepared to help you. In the interim, we've compiled a list of FAQ's to help you better understand the new tax credit provisions.


I signed a contract to purchase a home on October 1, 2009 (prior to enactment of the new rules). My anticipated closing date is December 15, 2009 (after original deadline). Will I qualify for the tax credit?

YES! The new rules go into effect on the day the President signed the bill. It's as if the November 30th deadline never existed. It does not matter when you entered into the contract, what matters is the closing date. Further, in the above scenario if the person is a not first-time buyer and meets the income and residency requirement, they too will qualify for up to a $6500 credit regardless of when they entered into the contract (a first-time buyer will qualify for up to $8,000).

Must the new house cost more than the old house?

NO!

I am a first-time buyer but was not within the prior income limits at the time I entered into my contract. I do fall within the new higher income limits. When I go to closing later this year, will I be eligible for the tax credit?

YES! The new income limitations ($125,000 (single)/ $225,000 (married)) take effect as soon as the President signs the bill into law. As long as your closing date occurs after the enactment date, you will be eligible.

I owned my home for 10 years, but sold it two years ago and am currently renting. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility requirements?

YES! Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify. Regardless if you rent or bought another home, you qualify because you owned a home and occupied it as a principal residence for 5 consecutive years out of the last 8. The key word is "consecutive."

I am an eligible existing homeowner. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

NO. The $800,000 cap on the cost of the purchased home is firm. Any amount above $800,000 makes the home ineligible for any portion of the credit.

BREAKING NEWS! Congress Passed Tax Credit Extension and Expansion

Congress has passed legislation that will extend the first-time home buyer's tax credit through April 30, 2010 AND extend the tax credit to repeat buyers. For first-time buyers, the credit will remain at 10% up to a max of $8,000. For repeat buyers, it will be capped at $6,500. A buyer who has owned their home and used it as their primary residence consecutively for 5 of the past 8 years can qualify (if meet the income limits). You do not have to sell your current home, but it won't apply to vacation homes and the purchased home must be used as your primary residence. Income limits have been increased to $125,000 (individuals)/ $225,000 (couples). Buyers must be under contract by April 30, 2010 and close by June 30, 2010. The President is expected to sign the bill into law on Friday, November 6th.

17 Tips for Better Home Showings

When preparing to put your home on the market, follow these simple and inexpensive tips to improve your chances for a quick sale at full price. Now is the time to make your home shine, setting it apart from the competition!

1. Remove clutter and clear off counters. Throw out stacks of newspapers and magazines and stow away most of your small decorative items. Put excess furniture in storage, and remove out-of-season clothing items that are cramping closet space. Don’t forget to clean out the garage, too.

2. Wash your windows and screens. This will help get more light into the interior of the home.

3. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Wash fingerprints from light switch plates, mop and wax floors, and clean the stove and refrigerator. Polish your doorknobs and address numbers. It’s worth hiring a cleaning service if you can afford it.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows to air out the house. Potpourri or scented candles will help....but don't overdo it! If buyers are overpowered by air fresheners, they may be suspicious about the smells they think you may be trying to hide.

5. Brighten your rooms. Put higher wattage bulbs in light fixtures to brighten up rooms and basements (especially important with it getting dark so early!). Replace any burned-out bulbs in closets. Clean the walls, or better yet, brush on a fresh coat of neutral color paint.

6. Don’t disregard minor repairs. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well-maintained.

7. Tidy your yard and walkway. Clean up your landscaping before winter arrives, rake the leaves, clean the gutters, keep walkway and front porch and/or steps neat and clean.

8. Add a touch of color in the living room. A colored afghan or throw on the couch will jazz up a dull room. Buy new accent pillows for the sofa.

9. Buy a flowering plant and put it near a window you pass by frequently.

10. Make centerpieces for your tables. Use brightly colored fruit or flowers.

11. Set the scene. Set the table with fancy dishes and candles, and create other vignettes throughout the home to help buyers picture living there. For example, in the basement you might display a chess game in progress.

12. Replace heavy curtains with sheer ones that let in more light. Show off the view if you have one.

13. Accentuate the fireplace. Lay fresh logs in the fireplace or put a basket of flowers there if it’s not in use.

14. Make the bathrooms feel luxurious. Put away those old towels and toothbrushes. When buyers enter your bathroom, they should feel pampered. Add a new shower curtain, new towels, and fancy guest soaps. Make sure your personal toiletry items are out of sight.

15. Send your pets to a neighbor or take them outside during showings. If that’s not possible, crate them or confine them to one room (ideally in the basement), and let the real estate practitioner know where they’ll be to eliminate surprises.

16. Lock up valuables, jewelry, and money. While a real estate salesperson will be on site during the showing or open house, it’s impossible to watch everyone all the time.

17. Leave the home during showings. It’s usually best if the sellers are not at home. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

Source: REALTOR Magazine

Your Nothnagle agent will help you maximize your showings and will provide you with easy solutions to prepare. Call, email or text a Nothnagle agent directly to get started!

Rochester Among 7 Best Housing Recovery Bets

CNNMoney.com recently published an article "Housing: Best Recovery Bets," and ranked Rochester #4 on the list. With a rise of 5.2% in home values since 2006, the article predicts an additional gain of 2.2% by 2011.

The article cites Rochester as being successful at reinventing itself, no longer dependent on "old economy companies like Eastman Kodak and Xerox." Instead, "the slack has been picked up by such newer companies as Paychex....as well as high-tech optical companies." The article states that the current unemployment rate is 8.1, below the national average of 9.6%. A nod is given to our higher learning institutions, including the University of Rochester and Eastman School of Music.

As we mention all the time, Rochester didn't experience the "boom" that occured in many parts of the country but we've been gaining while others markets have "busted" in recent years. Another significant statistic for Rochester is our median household income, which at $63,000 is higher than the national median. Combined with our affordable housing stock, many area residents are able to achieve the dream of homeownership.

Bankrate.com conducted a recent survey of consumers and asked if they still believe buying a home is a great investment for the future -- 92% of the respondents said yes! One unknown right now is the extension of the tax credit. The National Association of Realtors has estimated 1.4 million first time buyers qualified for the tax credit and of that total 350,000 (25%) would not have bought a home if they didn't get the tax credit. But we have to remember that 1,050,000 first-time buyers bought a house regardless of any credit (althought getting $8,000 was a nice perk!).

Rochester has a perfect storm brewing in the housing industry -- low interest rates, affordable housing, a healthy inventory to choose from, lower unemployment rates, higher median income. Now if we could just get those property taxes under control...but at least the County did not raise the rate this year in the recently released budget.

Other cities that made the CNNMoney.com list include San Francisco, Seattle, Pittsburgh, Memphis, Oakland and Birmingham.

Interested in buying or selling a home? Call a Nothnagle agent direct or 899-MOVE. Our agents have the experience and training to handle all market conditions. Get More with Nothnagle!

What America Will Look Like in 2010

The New York Post featured an article on 10/25/09, regarding the upcoming census. Peter Francese, a demographic trends analyst sees four major trends for 2010.

1) The article states that by 2010 there will be close to 70 million grandparents in the U.S., a dramatic increase from 47 million in 1990. There is an increase in multiple generations residing in one house (grandparents, their children, their grandchildren). Also, Americans 50 years and older show the most economic growth and control the vast majority of assets. Francese thinks advertising dollars should shift from the current 10% spent on that demographic to 40%.

2) Within 6-12 months, women will comprise the majority of the workforce. The author cites the recession as one cause -- the two hardest hit industries (construction and manufacturing) are male-dominated and the least-hit (education and health care) are favored by women.

3) Fastest growing segment is the Hispanic population and the slowest growing is white non-Hispanic.

4) South and West are growing in population while the Midwest and Northeast continue to decline.

Sources: Census: What America Will Look Like in 2010 by Maureen Callahan;
For the complete white paper from Peter Francese (Ogilvy & Mather-New York), visit adage.com.

5 Real Estate Scams to Beware of

The best rule of thumb to go by is if it seems too good to be true, it probably is. To report scams, contact the NYS Attorney General’s office (or your state A.G. outside of New York).

1. Foreclosure rescue/loan modification programs. Be wary of any service that is charging you an upfront fee prior to performing the service. There are HUD-approved agencies that will assist distressed homeowners at no charge. In Rochester, http://www.thehousingcouncil.org/ is a HUD-approved counselor and offers free services.

NEVER deal with anyone who asks you to a) sign over the deed to your house; b) make payments directly to the counselor; or, c) tries to get you to sell them your house with the offer that they will then rent it back to you. No legitimate agency will ask you to do any of these things.

2. Craigslist rental scams. Beware of rental postings on Craigslist that ask you to send any money prior to seeing the property. One of the more popular postings claims that they are going to Africa to do missionary work and cannot show you the property. Again, a common theme is that the rental price seems too good to be true and they typically are not asking for a lot of money. Also, another sign these postings are not legit is the improper useage of English/grammar (e.g. I am pleased to know you).

3. Several individuals in NY were charged with felony fraud for posing as professionals with access to an “exclusive apartment list” and requiring individuals to pay a $200 search fee. No search was ever done. When people complained, they were ignored or issued a bad check as a refund. Again, they were asking for a nominal amount which people may not be as cautious about handing over. But a little amount times a lot of people adds up!

4. Exploiting reverse mortgages. Perpetrators take advantage of senior citizens and will typically target seniors through promotions in churches, holding investment seminars and direct mailers. Please note: There are LEGITIMATE reverse mortgage programs. Talk to a reputable lender or visit the HUD website. The scams again can often be identified as being too good to be true. Con artists look for seniors in distress – offering reverse mortgages initially, then telling them they don’t qualify but offer another mortgage product and eventually they lose any remaining equity and their home. Another common scheme is to entice seniors to take out a reverse mortgage and invest the money in annuities, real estate or some other investment product that does not exist in reality.

5. Manufactured homes and deposits. Potential buyers respond to an ad offering manufactured homes for sale. The seller claims to work for a lender and tells the buyer they can get them a loan with no difficulty. The seller requires a large deposit first to reserve the property. Once the money is paid, the seller is no where to be found. Again, there are LEGITIMATE offerings of manufactured homes but make sure you verify them as legit BEFORE you pay out any money.

Additional resources:
Better Business Bureau
FBI
NYS Consumer Protection Board

The Argument for Buying vs. Renting

Homeowners typically have substantially greater net worth than renters. In 2007, the Federal Reserve Board indicated the median net worth for homeowners was $234,200 compared to $5,100 for renters. As a homeowner you build wealth in two ways -- by paying down the mortgage principle and through the appreciation of the home. In addition to building wealth, there are many other advantages to owning your own home, including tax advantages as well as having the freedom to do what you want with your own personal space. In the Rochester market, our homes typically appreciate in value but usually not as rapidly as other parts of the country. Conversely, they also haven't depreciated as they have in other markets. Even with the ups and downs of the housing market, real estate traditionally is much less volatile of an asset than stocks.

Are you sitting on the fence trying to time the market? While price is an important factor, it should not be the only factor driving your decision. More importantly, the focus should be on the cost of owning a home. Cost takes into account more than just price. Cost is what your monthly/annual expense is to own a home. Interest rates have been incredibly low, allowing for many people to afford "more house." If prices drop 10% but interest rates go up 1%, how does this affect your monthly payment? In most cases, your monthly cost will go up. Historically, when interest rates have hit bottom they then go up "quickly and dramatically." It's difficult to predict the market, but if history is a good indicator we will see interest rates take a sudden and significant jump in the future.

When looking at your monthly cost, you also should take into account the tax advantages. Don't forget, your mortgage interest and property taxes are deductible. You may want to seek the advice of your accountant (or tax preparer) to help you calculate your anticipated deduction based on your tax bracket or visit the IRS Website.

Nothnagle agents are trained to handle all market conditions and have the expertise to help you take full advantage of the tremendous opportunities that are out there! Call a Nothnagle agent directly today to get started.

Real Estate Historically is a Good Investment

People ask all the time, is it a good time to buy? The answer is if you view real estate as a long term investment....the answer is almost always "yes." Nationally, since the 1940's home prices have risen an average of 4% annually. The National Association of Realtors began tracking statistics in 1968 and since that time, the average annual increase in median sales price has been 6%. In the local market, while prices rose slightly during the peak of the recent market, our appreciation was not as dramatic as other parts of the country (e.g. California, Arizona, Florida) but on the positive side, it also was not as dramatic of a decrease either. Markets in some other parts of the country have been devestated by the rapid depreciation in sales prices and many people now own homes that are worth less than what they owe. Over time, most of these homeowners will recover the value of their homes if they view this as a longterm investment.

Median prices in Rochester remain stable and the 2nd and 3rd quarters of 2009 have been very strong. At Nothnagle Realtors, the 2nd quarter of 2009 equalled 40% of all sales that occured in 2008....a tremendous quarter for the company.

There are many benefits to homeownership and today is a great time to buy a home. Many people jump in when the market is "hot" but the ideal conditions exist today with the low interest rates available, healthy supply of inventory to choose from and the promise of a solid long term investment.

Nothnagle agents are trained to handle all market conditions and have the experience and expertise to guide you. Call a Nothnagle agent direct or 899-MOVE to get started.

Vote for Rochester's Choice Awards

Please help Nothnagle continue its longstanding record of being named Rochester's Choice for Real Estate by casting your vote in this year's contest! For 7 consecutive years (since the awards inception), Nothnagle has been honored by the community with this distinguished award. This year, voters can also select Nothnagle in two additional categories -- Local Website (nothnagle.com) and Insurance Company (Nothnagle Insurance Agency). You must vote in at least 15 categories to be counted. It's easy to do and fun to select all of your "favorites" in and around Rochester. Visit the Rochester Choice voting site to cast your vote today. Thank you in advance for making Nothnagle Realtors Rochester's Choice!

Locally Based With Global Connections

We have all heard the saying “You are only as good as the company that you keep.” That is true for companies as well. While Nothnagle Realtors is a locally-owned and independently-operated organization, we are associated nationally and internationally with other brokerage companies of similar customer service values and “do the right thing” like-mindedness via our membership in Leading Real Estate Companies of the World® (Leading RE) (www.LeadingRE.com).

Members of Leading RE are in 35 countries around the globe and represent over 600 companies with 5,000 offices and 150,000 associates. Leading RE has the #1 market share in more of the top 90 markets than any national brand and they continue to produce the highest number of sales units among the top 500 residential firms in the United States.

If you are moving across town or across the country or even to another country, Nothnagle Realtors can help you. And through our Leading RE network, we can assure you that you will get the same service you've come to expect from your hometown Realtor. Call any Nothnagle agent direct or 585-899-MOVE for more information.

Nothnagle to Host Open House Event

Nothnagle Realtors will be hosting a special event featuring 175 open houses on Saturday, October 3, 2009, in recognition of the City of Rochester’s 175th Anniversary celebration. Nothnagle Realtors is proud to be a sponsor of Rochester’s series of “Coming Home” events.

The featured listings in the 175th open house event will be highlighted in various advertisements next week and on Nothnagle.com. This is not an event limited to just City homes; we will feature homes available for sale throughout the Greater Rochester community.

If you currently have your home listed with Nothnagle, contact your Nothnagle agent to have your home included.

Declutter to Prepare Your Home for Sale

One of the most effective (and least costly) tips to follow when preparing to list your home is to remove the clutter! I know, after 10, 20 or 30 years in a home you've accumulated a lot of stuff. But potential buyers want to envision THEIR stuff in the home, plus removing the clutter will open up and brighten the space. Where to begin? Two very important locations are the kitchen and the closets. Remove all clutter from the kitchen counter tops, clean out that junk drawer, straighten out your cabinets. Remove the magnets and artwork on the refrigerator. A good rule of thumb -- Keep It Simple! Most buyers will look in your cabinets and closets to see how much storage space is available. Now is a good time to clean out old clothes, donate items, store out-of-season clothes. Closets should be neatly organized and should never be used to "hide" the clutter you're trying to remove from living spaces. Not only will it prepare your home for showings, it will also help you down the road when it's time to move. Too much stuff and not enough space? We can help! Nothnagle offers temporary storage services at a discount to our clients. Check out our list of partners in our ClientPerks/Home Services division.

Pumpkin Decorating Contest at Ontario Branch

The Ontario Branch of Nothnagle Realtors will host their second annual Pumpkin Decorating Contest for Wayne County Elementary Schools. Kindergarten, 1st, 2nd and 3rd grade students are encouraged to participate.

Pumpkins will be supplied by the students and they will be given a week to decorate and return them to our Ontario branch, located at 1450 Route 104, for judging by October 15th at 5 p.m.

Cash prizes will be awarded in three categories. The participants will all be invited to Lagoner Farms in Williamson on October 17th for wagon rides and other fall festivities. At the time, the winners will be awarded their prizes.

The event is coordinated by the Ontario Nothnagle Marketing team and we look forward to an excellent turnout for the second year event! For additional information, call 315-524-2331.

Nothnagle Realtors Named Penfield Business of the Month

Nothnagle's Penfield branch has been named "Penfield Business of the Month" for September. The branch has 45 agents and has transacted over $75 million in sales over the past year. View a roster of the agents in our Penfield branch, located at 1797 Penfield Road. Looking to buy or sell a home? Stop by any of our 24 conveniently located branches today.

Nothnagle Agents Sell Homes FASTER!

During the month of July, Nothnagle agents sold homes NINE DAYS FASTER than the competition. Why? From print advertising, to Internet exposure on Rochester's #1 real estate website, to TWO TV shows, Nothnagle offers the most comprehensive advertising programs available to get our listings exposed to the widest pool of prospective buyers possible. Our newest offering....YouTube videos! We have nearly all of our listings featured on the popular website and nearly 27,000 visitors have viewed our property videos in three months. Check it out -- go to www.YouTube.com and search by city/town, price range, agent name, features and more.

Every seller gets a customized marketing plan to meet your unique needs. Call a Nothnagle agent today to learn more about all of our offerings, many of which are exclusive to Nothnagle Realtors.

Nothnagle Offers One-Stop-Shopping

Our personal coordinators can assist you with everything you need -- before, during and after your move! And best of all? It's FREE to Nothnagle clients. Save time, save money and enjoy the convenience this exclusive service offers you. Need to find a mover? We'll get you quotes and help you coordinate your move. Insurance? Painting? Repairs? Cleaning Services? Landscaping? Storage? Set up utlities? We can help! And the best part....all you have to do is sit back and let your personal coordinator go to work for you. For more information, simply visit our ClientPerks section of our website. Just another way you Get More from Nothnagle Realtors!

Home Buyer Seminar - September 8th

Join us for a free first time home buyers seminar on Tuesday, September 8, 2009 at 7:00 p.m. The seminar will be held at the Ontario branch located at 1450 Route 104 Ontario, NY. The seminar will cover the home buying process; a lender will be available to review various mortgage products; and, there will be an explanation of the 2009 tax credit (up to $8000) for first time home buyers. Free credit reports and pre qualifications! Attorney tax advice! Free gifts and refreshments served. Please call (315-524-2331 x166) or e-mail (lfisher@nothnagle.com) to register. Presented by Larry Fisher and Jennifer Ryan.

Are you eligible for a tax break?

Regardless if you are a buyer (first time or repeat), seller or homeowner, you may qualify for a tax break. Consult with your tax advisor to ensure you maximize the credits and deductions that may be available to you.

Owners: The Recovery Act gives incentives to homeowners making improvements and energy-efficient upgrades to their homes. Taxpayers can get credits for 30% of the cost of qualifying doors, windows, HVAC, water heaters, roofing and insulation, up to a maximum credit of $1,500. Solar energy and wind energy systems are each 30% of cost with no maximum.

Sellers: It used to be that sellers had to pay capital gains tax unless they qualified for a one-time exemption based on age limits. That is no longer the case. Individuals don't have to pay tax on up to $250,000 profit ($500,000 for married couples) and the exemption can be taken repeatedly over a lifetime. Taxpayers have to have lived in the home for at least two of the past five years.

Buyers: Of course, there is the $8,000 tax credit available to first-time buyers who close on or before November 30. But what about repeat buyers and other tax breaks? Points paid on a mortgage are generally deductible as interest if the taxpayer paid enough of a downpayment at closing to cover points. PMI premiums can generally be included in the home mortgage interest deduction. And, if you moved due to a job change, moving expenses may be deductible.

As with all tax breaks, deductions and credits, there are exceptions and qualifications that must be met. This is not intended to provide tax advise; you should always consult with a professional tax advisor to discuss your specific circumstance in order to optimize your benefit.

Owning vs. Renting

Rochester is ranked #3 on a recently released report that ranked 20 metropolitan areas where it's almost the same cost to buy vs. renting. BusinessWeek.com and research firm Reis issued the report. There are many benefits to owning, especially if you plan on staying in Rochester long term and can build up equity. With the $8,000 tax credit and low interest rates, it is a perfect storm for first-time homebuyers. But don't delay....even though there's talk of extending the tax credit, there's no guarantee it will be available after November 30th.

How to Market Your Home

A Nothnagle agent can help you achieve your home-selling goals.

1. Preparation: Homes must be in "show" condition. Simple repairs, a fresh coat of paint, de-cluttering yoru space will help you produce the best results. Thinking of selling? Call a Nothnagle agent to provide you with tips and advice on preparing your home.

2. Pricing: Nothnagle agents have the skills for success in all types of markets. Not only is properly pricing your home key, but a Nothnagle agent can help guide you through other aspects including what terms are more favorable to you while providing an incentive to buyers.

3. Marketing: No one offers the exposure you will get when listing with a Nothnagle agent! We are everywhere...in print (over 70 publications), on TV (only company with two TV shows) and on the Internet (Nothnagle.com averages 13,000 visitors per day plus we're on over 300 local and national real estate websites).

Contact a Nothnagle agent today to get started!

Buyers Don't Delay!

To qualify for the $8,000 1st Time Buyer Tax Credit, eligible purchasers must close on or before November 30, 2009. There's talk of an extension but no guarantee. Looking to sell? We have buyers! Nearly 3,000 buyers inquired through Nothnagle.com last week alone. It's a great time to get your house on the market with the influx of buyers currently out there. Contact a Nothnagle agent today to find out how you can Get More with Nothnagle. Interested in learning more about the tax credit? Our agents have the information you are looking for.

Tips to Sell Your Home Faster

Thinking of selling? Now is a great time to list your home with a Nothnagle agent. Interest rates remain low and there is an influx of buyers in the market, especially first-time buyers looking to take advantage of the tax credit. So, what are the "secrets" to selling your home fast? Buyers gravitate to homes that feel well maintained. A little touch up paint and some minor repairs makes a big difference when you're preparing to list your home. Removing the clutter from your closets and rooms will enhancing your showings and help you prepare for the big move. During the summer months, keep your lawn mowed, shrubs trimmed and gardens weeded. Creating exterior curb appeal is critical to getting the buyers to come inside.

Price your property right! Our agents receive ongoing education about market conditions and can help you properly price your house. And remember, the more accessible your home is for showings, the more successful you are likely to be. It's important to be flexible and allow buyers to come view the property even on short notice.

Getting your home exposed to the greatest number of potential buyers it critical to getting your home sold quickly. A Nothnagle agent can give you the exposure you need -- through print ads, two TV shows and the Internet. No one advertises your home like Nothnagle! Call an agent direct or 899-MOVE to get started today.

Nothnagle Realtors Gives you MORE!

Our market participation just surpassed 60% -- our HIGHEST level ever in the 61 year history of the company! Why do so many buyers and sellers choose Nothnagle? Because we give you MORE! A recent national survey was conducted to measure customer satisfaction. More and more buyers and sellers are listing "additional services" as contributing to their overall satisfaction with the process. Consumers are looking for firms that offer one-stop-shopping and nobody offers more than Nothnagle. Most sought after services according to the survey are mortgage, home inspectors and home warranties. We have these and much more! When you work with a Nothnagle agent, you will receive a lifetime membership in our ClientPerks program. Need a roof repaired? We have someone for you. Need a moving company? We can set you up. Need some painting done? Got it. Our newest offering is insurance through the Nothnagle Insurance Agency (homeowners and car insurance). Call a Nothnagle agent today or 899-MOVE for more information.

Nothnagle Ranked 33rd Largest Broker -- In the Country!

REALTOR Magazine announced the "Top 100" Brokers in the country in the July/August edition. Nothnagle ranks #33, based on transaction sides, which totaled 8,415 in 2008. The "average transaction sides per agent" for Nothnagle agents was among the highest on the list and higher than any of our local competition that made the list. Last year, Nothnagle was ranked #36. Nothnagle outranks brokers from much larger regions and metropolitan areas. Even more significant, Nothnagle is locally-based with nearly all transaction conducted in the Greater Rochester region through our 24 branch offices. Only two other companies with a local presence made the list, however both are not Rochester-based and have locations in several cities throughout New York.

Nothnagle agents can get your home sold! For 61 years, we've been your hometown Realtor. Put the Power of Nothnagle to work for you today.

Nothnagle Listings -- Here, There, Everywhere!

Over 85% of home buyers in New York use the Internet to search for properties. Nothnagle.com is Rochester's #1 real estate website (Scarborough Research Study, 2008) but our listings our also distributed to over 300 real estate websites...around the WORLD! So no matter where a buyer is searching from, if they're looking for a house in Rochester they're going to find a Nothnagle agent's listing on the most popular real estate sites, including Trulia.com and Realtor.com. As a member of Leading Real Estate Companies of the World, our listings are also connected to other member brokers from around the globe. In addition, when listing with a Nothnagle agent you also will have your home featured on the popular YouTube site. Check it out! Go to www.YouTube.com and search by street address, zip code, agent name, town. Our YouTube videos are searchable by these features as well as price, bedrooms, size and much more. We make it easy for buyers to find our listings....here, there and everywhere!

Tips for a Beautiful Lawn

When you're selling your home, simple maintenance of lawns, shrubbery and gardens is critical to entice buyers to want to see more of your property. To keep your lawn healthy and eye catching, make sure you never cut more than 1/3 of the grass blade during any one mowing. Yes, cutting it shorter than that may give you more time between mowings but it can do more costly damage (like kill the grass) if you cut it too short. Alternate your mowing pattern -- constantly rotate the pattern from vertical, to a diagonal, to horizontal, etc. Lawns need 1-2 inches of water each week. With all of the rain this year, it hasn't been much of a problem but if there's a dry spell, it's best to water your lawn early in the day, before 9 a.m. Never use more fertilizer than the recommended dose! Overfertilizing will do more damage (again, like kill the grass) than good.

Thinking of Selling? We have Buyers!

We receive hundreds of buyer leads every single day. With the $8,000 first-time homebuyer credit set to expire later this year, coupled with buyers who want to lock in at a low interest rate, we hear from buyers that there's not enough inventory! If you are thinking of selling, you need a Nothnagle agent. Call an agent direct to learn more about the current market conditions and how they can sell your home faster (avg 6 days faster than the MLS average), or call 899-MOVE to get started. Also, check out our "Live Chat" feature on Nothnagle.com. Put the Power of Nothnagle to work for you today!

Tips for Freshing Up Your Home With Fabrics

RISMEDIA, July 7, 2009-(MCT)-The quickest way to freshen a piece of furniture and lift the spirits is through fabric. I feel years younger - and so does my dining room - now that I’ve re-covered the seats of chairs I inherited from my great-grandfather. The shield-back style of the chairs is classic; the upholstery featuring a frumpy fruit pattern definitely was not.

So I found some hip fabric (a gray cotton with a modern graphic print), took an upholstery stapler et voila! A whole new look for the dining room in less than two hours for about $40.

“Shouldn’t you take the chairs to a professional upholsterer?” a dubious friend asked before I started my DIY project. For a sofa or even a whole chair, yes. But for a few seat cushions, no. It’s so easy and more affordable to do it yourself. (Check below for step-by-step instructions from Betsy Blodgett, owner of Bon Bon Atelier in Kansas City, Mo.)

Fabrics are a way to set the mood of the room. Want sophistication in the bathroom? Create a tall fabric shower curtain that hangs from a rod close to the ceiling. It makes the room feel larger, too.

“A tall shower curtain is an expensive designer look, and it’s so easy to make,” says Eddie Ross of New York, who was a contestant on Bravo’s “Top Design” reality show. A book and his own television show are in the works. “You don’t even have to sew.”

Ross suggests taking an existing fabric shower curtain and finding a coordinating fabric for the bottom, fusing the fabrics together using Stitch Witchery, which works as an adhesive when it’s ironed. Sure, the fabrics can be sewn together instead.

This year Blodgett, a fashion designer, made her own shower curtain from a pink Asian-style fabric with metallic gold threads she found on sale at Jo-Ann Fabric and Craft Stores.

“It transformed the room, really setting the tone,” says Blodgett, whose bathroom now has a boudoir look. “The vinyl shower curtain before was hideous, definitely not very inspiring.”

Designers say fabric reflects personal style more than paint does. That’s why Karen Roark, owner of Urban Arts and Crafts, likes the idea of fabric as wall decor. For a modern look, fabric can be wrapped around square wooden frames and stapled in back. The fabric frames can be hung in a horizontal series of three or four or a grid pattern of nine. Placed inside garage-sale frames, fabric takes on a more vintage, feminine style.

Fabrics also can give a nod to trends without breaking the bank. Besides modern graphics, current looks include ethnic-inspired ikat (pronounced e-cat) and suzani motifs, says Jan Jessup, spokeswoman for Calico Corners, which sells hundreds of decorative fabrics. Wood grain-pattern prints also are becoming popular.

Don’t forget to shop your linen and clothes’ closets for fabrics, Ross reminds us. A towel can make a plush terrycloth ottoman cover in a bathroom. A flat sheet can be turned into a duvet cover. A quilted matelasse bedspread can become a chair slipcover. Men’s suit jackets, such as gray flannel or navy wool pinstripe, can be converted into handsome accent pillows.

Even classic summertime seersucker can look fresh. Check out the fun window display of seersucker-upholstered chairs at Brooks Brothers.

Room by Room: Other fresh fabric projects

Dining Room: Use outdoor fabrics to make tablecloths and banquette cushions. They are easy to bleach and clean.

Family Room: Create a junior ottoman by stacking three 26-inch boxed pillows that can also be floor pillows for television viewing.

Bedroom: Make a modern canopy by hanging bed drapery panels on swing-arm rods at each side of the bed.

Bathroom: Cover a wastebasket with a decorative fabric using spray adhesive. Add gimp or braid trim with a glue gun to hide the edges.

Closet: Upholster the walls and ceiling of a tiny closet using Mod Podge as an adhesive.

Step by step: Reupholster dining seat cushions

Supplies and Equipment Needed:

- 3 yards of fabric for four chairs
- Tape measure
- Upholstery stapler with heavy-duty staples (about $15 at fabric stores)
- Scissors
- Screwdriver

Betsy Blodgett, owner of Bon Bon Atelier and a fashion designer, knows the ins and outs of working with fabric. She showed us how easy it is to reupholster seat cushions. We kept the old upholstery on to preserve a decades-old history of the chair and gain a bonus: extra padding. From start to finish, it took less than two hours to cover all four seats.

Step 1. Turn over the chairs and unscrew the cushions.
Step 2. Measure 3 to 4 inches extra per side of seat and cut the fabric.
Step 3. Wrap the fabric on the seat and padding as you would a gift. Pin the fabric in place to anchor it.
Step 4. Pulling the fabric as tight as you can, staple along the edges.
Step 5. Screw cushions back in place.

©2009, The Kansas City Star.
Distributed by McClatchy-Tribune Information Services.