Marcia Glenn Recognized as #1 Agent for 2nd Consecutive Year

Nothnagle Realtors held its annual awards event on January 29, 2010, at the Rochester Radisson Riverside Hotel. Marcia Glenn, Associate Broker with the Penfield branch, was recognized as the company’s top sales agent for 2009. This is the second consecutive year that Marcia has achieved the #1 ranking.

Marcia is a lifelong resident of Rochester who believes in the strength of this community and all it has to offer. Licensed in 1992, Marcia has been affiliated with Nothnagle Realtors her entire real estate career and has been in the “Top 30” since 1994. She is an accredited Domestic and International Relocation Specialist and the recipient of numerous industry awards.

“Not only did Marcia achieve the ranking of top sales agent for the company for the second consecutive year, but her sales volume and number of transactions actually exceeded her 2008 levels. That is a testament to Marcia’s hard work and dedication, especially with all of the challenges the real estate industry faced in 2009,” said Armand D’Alfonso, President and CEO of Nothnagle Realtors. “Marcia’s professionalism and attention to detail have earned her the respect of the colleagues and clients she has worked with over the years. She consistently delivers an exceptional real estate experience and exceeds expectations time and time again.”


Christie Nasello, Nothnagle Realtors Salesperson and Marcia’s business partner since 2005, describes Marcia saying, “She genuinely cares about helping all of our buyers and sellers reach their goals and will exhaust every avenue possible to achieve success for the people we serve. Marcia is a true visionary and it is an honor to work with someone who is committed to protecting the interests of her clients with such integrity and determination.”

Marcia serves all of Monroe County and the surrounding areas and has close to $175 million in career sales. 2009 sales were up over 8% for transactions as well as sales volume, going against the market trend last year. The Greater Rochester Association of REALTORS® released statistics last week indicating overall sales for the market were down 1.38% in 2009 compared to 2008.

Marcia credited Nothnagle Realtors for contributing to her success saying, “I am proud to be affiliated with this outstanding company, their commitment to providing agents with support and innovative ways to serve our clients is unsurpassed in the real estate industry.” Marcia went on to say, “Achieving the top position within the company is never a singular accomplishment. #1 is both a collective and collaborative effort of each team member of the Glenn Advantage Team, along with the support of each department within Nothnagle, all agents with Nothnagle and the management team.”

Contact Marcia Glenn and The Glenn Advantage Team at 248-1064.

Good Neighbor Next Door Program

Are you a teacher, law enforcement officer, firefighter or EMT thinking about purchasing a home? You may want to find out more about HUD's Good Neighbor Next Door Program that may allow you to purchase a HUD home at a discounted price. Nothnagle Realtors offers our agents advance training on assisting buyers with purchasing a HUD home. If you are interested in the Good Neighbor or other HUD programs, please contact a Nothnagle agent for assistance, or use our Live Chat feature or call 899-MOVE to get more information.

Frequently Asked Questions

Question: What Is the Good Neighbor Next Door (GNND) Sales Program?

Answer: HUD wants to strengthen America's communities. The Good Neighbor Next Door Program offers HUD owned single family (one-unit) homes to eligible participants at a 50% discount.

Question: Am I Eligible for the GNND Sales Program?

Answer: Law enforcement officers, teachers and firefighters/emergency medical technicians and who meet all other requirements of the program are eligible to purchase an available home.

Question: How Much of a Discount Can I Get on a HUD Home?

Answer: You can get a 50 percent discount off the HUD appraised value. For example, if HUD lists a home at $100,000, you can buy it for $50,000 provided, you occupy the home as your personal residence for the required occupancy period. If you qualify for any FHA-insured mortgage program, your downpayment is only $100 and you may finance closing costs.

Question: What Kind of Mortgage Financing Do I Need?

Answer: You may use FHA, VA, or conventional mortgages, or cash. HUD requires you to sign a Second Mortgage and Note on the discounted amount (which is $50,000 in the example above). No interest or payments are required on this "silent second" mortgage if you live in the home for the entire 36 month occupancy period. You may be required to pay a pro-rata portion of the discount to HUD should you fail to fulfill the three year occupancy requirement.

Question: What is the Occupancy Period?

Answer: You must live in the home as your sole residence for a full 36 months. The purpose of the program is to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters/emergency medical technicians to live in the community. You will have 30, 90 or 180 days to move into the home you purchase, depending on HUD's determination of the condition of the home and the level of repairs that may be required, if any. The 30th, 90th or 180th day is the start date for the occupancy period. Your are released from all obligations under this program at the end of the 36th month following the start date. HUD views the occupancy obligation seriously and vigorously pursues violators to the fullest extent of the law.

Question: What Is an FHA Rehabilitation Mortgage and How Can It Help Me Buy a HUD Home?

Answer: The FHA 203(k) mortgage program helps homebuyers buy a home and have enough money to rehabilitate or repair it. Repairs must cost more than $5,000. The cost of the repairs and the mortgage are combined into a single monthly payment. Consider FHA’s 203(b) program if needed repairs are under $5,000. FHA also has a new Streamlined 203(k) program which may be useful.

Question: Can I Sell the GNND Home after 3-years and Keep the Profit?

Answer: Yes. After you live in the GNND home 3 years, you can sell the home and keep any equity and/or appreciation.

Question: Do I Have to Use a Real Estate Broker or Agent to Buy a GNND Home?

Answer: Yes.

Question: Do I Have to Be a First Time Homebuyer to Take Advantage of the Program?

Answer: No. However, you may not own any other residential real property at the time you submit your offer to purchase a home and for one year previous to that date. For example, if you submit an offer to purchase a home on August 1, 2007, you may not have owned a home during the period from July 31, 2006.

Question: Where Are These Homes Located?

Answer: The HUD homes are located in designated Revitalization Areas. There are hundreds of Revitalization Areas located in the United States.

Question: Does HUD Provide a Home Warranty?

Answer: No. All GNND homes are sold "as is," without any kind of warranty.

Question: Can I Buy Multiple Unit Properties (E.g., Duplexes, Triplexes, Etc.) through the Officer Next Door Program?

Answer: No. You can only buy single unit homes, townhouses, and condominiums through the GNND Program.

Question: Do I Have to Pay Earnest Money or Other Deposits in Order to Submit a Contract for a GNND Home?

Answer: Yes. The amount of the earnest money deposit required is an amount equal to one percent of the list price, but no less than $500 and no more than $2,000. HUD considers all offers to be a commitment to purchase a home if you are awarded the sale. Therefore, please carefully consider your offer and be aware of HUD's policy on earnest money as stated here: If an offer is accepted, the earnest money deposit will be credited to the purchaser at closing. If the offer is rejected, the earnest money deposit will be returned. Earnest money deposits are subject to total forfeiture for failure of the participant to close a sale.

Question: Can I Bargain with HUD on the Price of a GNND Property?

Answer: No. You must offer the exact HUD list price when bidding on any GNND property. Then you get a 50 percent discount off of that list price.

Question: What if I Leave the employment, that made me eligible, for Any Reason, during the Mandatory 3-year Residency Period?

Answer: Nothing happens, but you must continue to live in the home for the full 36-month mandatory occupancy period. If you move out of the GNND home, you will have to repay HUD on a prorated schedule. In addition, you must certify that it is your good faith intention to remain employed as a law enforcement officer, teacher or firefighter/emergency medical technician for one year beginning with your purchase. Do no attempt to participate in the program if you know in advance that you will not be employed as required for at least one year.

Question: Some Agencies Have Other Homebuying Programs. Can the GNND Program Work in Conjunction with These?

Answer: Yes, as long as you can meet all the GNND program rules while participating in these other programs.

Question: What Happens if a Participant Fails to Honor the 3-year Occupancy Requirement?

Answer: HUD can demand repayment of the discounted amount on a prorated basis. That means you would have to repay 1/36th of the discount you received for each month that you did not occupy the home. HUD also may initiate administrative sanctions including, but not limited to, barring the officer from participating in any HUD/FHA programs, as well as other federal programs. In any case of fraud or abuse, HUD will refer the case to HUD's Office of the Inspector General for investigation and possible criminal prosecution. HUD may also notify the officer's employing agency. Criminal prosecution and conviction for fraud and abuse concerning the GNND Program can result in a fine of up to $250,000 and/or two years in federal prison.

Question: How Does HUD Enforce the 3-year Residency Requirement?

Answer: The participant must certify he or she is living in the GNND home as a sole residence at the time of purchase and each year after that. HUD can conduct spot checks to make sure the GNND home is your sole residence at any time during the 3-year period. You also must sign a note and mortgage for the discount amount. HUD may foreclose this mortgage if you do not comply with the 36-month occupancy requirement.

I already purchased a home under the GNND Program. Where can I get information about my second mortgage?
Information is available on the Good Neighbor Next Door Loan Servicing page.

Where can I get additional information?
Please contact the FHA Resource Center.

Source: U.S. Department of Housing and Urban Development

FAQ's About Reverse Mortgages

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you but unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.

Question: What is the difference between a reverse mortgage and a bank home equity loan?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

You don't make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities.

Question: If I take out a reverse mortgage will the lender then own my home?

Answer: No. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the house is maintained and property taxes and homeowners insurance are paid, the loan cannot be called due.

Question: Can I get a reverse mortgage if I have an existing mortgage?

Answer: With enough equity, you may be able to pay off your existing mortgage or other debt with the reverse mortgage. The reverse mortgage must be in a first lien position, so any existing mortgage must be paid off. Seniors who take out reverse mortgages are free to do anything they want with their reverse mortgage proceeds. Paying off an existing mortgage is the number one reason most seniors take out a reverse mortgage.

Question: If I outlive my life expectancy, can the lender evict me?

Answer: No, reverse mortgage lenders put no time limit on how long seniors can stay in their homes. Since homeowners still own the property, lenders cannot evict them, provided they follow the program guidelines.

Question: Are there objective advisors available to seniors trying to decide if a reverse mortgage suits their needs?

Answer: Borrowers are required to work with independent, third party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities. This educational session helps them make the right decision for their unique situations.

Question: Are there restrictions on how reverse mortgage proceeds may be used?

Answer: There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose and borrowers should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet or to have a financial reserve.

Question: If I otherwise qualify FHA's HECM Reverse Mortgage, can I still apply if I didn't buy my present house with FHA mortgage insurance?

Answer: Yes. It doesn't matter if you didn't buy it with an FHA-insured mortgage. Your new FHA HECM will be FHA-insured.

Question: Will I still have an estate that I can leave to my heirs?

Answer: When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

For more information, visit HUD's Reverse Mortgage information page.

Help Habitat for Humanity in Haiti

Nothnagle Realtors is collaborating with Habitat for Humanity International to raise funds to address shelter solutions for families displaced by the recent earthquake in Haiti. Over the next four weeks, Nothnagle will be utilizing its advertising vehicles to raise awareness and ask the community for their financial support of Habitat’s initiatives in Haiti. Nothnagle will match a portion of the contributions raised for Habitat with a corporate donation.

Over 3 million people have been affected by the January 12 earthquake and estimates put the number of homeless as high as 2 million. Prior to this catastrophic event, 80% of Haitians were living in poverty, 54% in abject poverty.

“We were looking for a way to utilize our resources to help the people of Haiti and felt that partnering with Habitat to address housing needs made the most sense,” said Armand D’Alfonso, President and CEO of Nothnagle Realtors.

To donate on-line, please visit www.Nothnagle.com and click on the Habitat banner on the homepage. To donate by check, please make checks payable to Habitat for Humanity International and include “Haiti Earthquake” in the memo line. Mail checks directly to Habitat for Humanity International at 121 Habitat Street, Americus, GA 31709, or drop off checks at any Nothnagle branch office and we will forward to Habitat.


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About Habitat for Humanity International
Habitat for Humanity International is an ecumenical Christian ministry dedicated to eliminating poverty housing. As a builder of decent, safe, affordable housing, Habitat for Humanity recognizes the need to provide long-term solutions to the housing needs of families who have been affected and displaced by the earthquake in Haiti but cannot qualify for a conventional mortgage. To help, please visit Habitat for Humanity's Web site at www.habitat.org.

Changes to FHA Program

In an effort to shore up the Federal Housing Administration's finances and avoid a government bailout, the agency announce some changes to the FHA-backed mortgage program. While the changes will result in some higher costs for home buyers, FHA mortgages remain one of the best options for many purchasers, especially first-time buyers who may not have stellar credit and/or a large cash reserve saved for a downpayment.

Changes include an increase to the upfront mortgage insurance premium, which is paid by the borrower when the loan is made, from 1.75 percent to 2.25 percent. For a loan of $100,000, the mortgage insurance premium would be $2,250, up from the current $1,750. The FHA also said it was cutting the amount of aid sellers could provide buyers (often referred to as "sellers concessions") from 6 percent to 3 percent of the purchase price.

The FHA is raising its minimum credit score for a 3.5 percent down payment to 580 while scores below that level would be required to have 10 percent down. But most FHA lenders won't lend to anyone below 620 so it's unclear how many borrowers would really be affected by the down payment change.

The Rochester Real Estate Market

We're asked all of the time....is it a good time to buy or sell? The simple answer is yes, especially in the Greater Rochester area! The 2009 year end statistics released for last week show that home sales were down only 1.38% from 2008 and median price remains stable in the region. If you follow the national housing market, you know that sales have been down double digit percentage points in many other parts of the country. The Rochester (and typically other upstate NY) market has been much more sheltered than other cities -- while we didn't see the dramatic appreciation experienced elsewhere, we also didn't see the dramatic decline either.

While many people would guess that the best time to buy was during the "peak" of the housing market a few years ago, with the extension of the tax credit for first-time buyers and now the expansion to include repeat buyers, coupled with low interest rates, there has never been a better time to buy real estate in recent history than today.

From the seller's perspective, it's still a great time to sell as Rochester's average price has also remained fairly stable over the past several years. For Monroe County towns, in 2007, the median sale price was $135,000; in 2008, the median was $131,000; for 2009, the median was $130,850, according to the local MLS. In the City of Rochester, the median sale price has actually been increasing -- $56,000 in 2007; $57,000 in 2008; and, $65,000 in 2009. With the increase in buyers in the market due to the tax credit incentive, if your house is priced right and marketed properly, you should have no problem selling your house in today's real estate climate.

It is highly unlikely that the tax credit will be extended beyond April 30, 2010, and many analysts are predicting that interest rates will top 6% by the end of the year. Find out more about the opportunities in today's market by contacting a Nothnagle agent today!

Loan Types Defined

If you're in the market to purchase a home, you will hear different terminology being used when it comes to mortgages and financing. What does it all mean? The following definitions will help you brush up on these mortgage basics to help you determine the loan that will best suit your needs.


Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.

Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage (ARM) is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.

Balloon mortgages. These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.

Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs and offer special terms, including lower down payments or reduced interest rates to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For more information, talk with one of our Mortgage Service partners to help you find the best option to work for your situation.

Claiming Tax Credits for Home Purchase

For first time homebuyers, there is a refundable credit equal to 10 percent of the purchase price up to a maximum of $8,000 ($4,000 if married filing separately). A first-time homebuyer is an individual who, with his or her spouse if married, has not owned any other principal residence for three years prior to the date of purchase of the new principal residence for which the credit is being claimed.

There are several situations in which a taxpayer cannot claim the credit:

1. The taxpayer is a nonresident alien;
2. The taxpayer purchases a home located outside the United States;
3. The taxpayer sells the home or if it stops being the taxpayer’s principal residence in the year the taxpayer purchased the home;
4. The taxpayer receives the home, or any portion of the home, as a gift or as an inheritance; and
5. The taxpayer exceeds the income limits.

The Worker, Homeownership, and Business Assistance Act of 2009 extended and expanded the tax credit for first time homebuyers that had been created in 2008. The new law extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. If a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.


Purchases made after Nov. 6, 2009

Taxpayers should be aware of some changes to the law that apply to home purchases after Nov. 6, 2009, the date of enactment of the new law.

The new law expands the tax credit to include not just first-time buyers but also long-time residents who buy a new principal residence. They are eligible for a credit of 10 percent of the purchase price up to a maximum credit of $6,500. A long-time resident is an individual who, with his or her spouse if married, has owned and used the same home as a principal residence for any period of 5 consecutive years during the 8-year period ending on the date of purchase of the new principal residence for which the credit is being claimed.

Income Limitation

For people who purchase homes after Nov. 6, the full credit will be available to taxpayers with a modified adjusted gross income (MAGI) up to $125,000, or $225,000 for joint filers. MAGI is your adjusted gross income plus the total of certain foreign earned income. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

However, for homes purchased before Nov. 7, 2009, existing income limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

Several new restrictions apply to purchases that occur after Nov. 6:

1. Dependents are not eligible to claim the credit;
2. No credit is available if the purchase price of a home is more than $800,000; and
3. A purchaser must be at least 18 years of age on the date of purchase.

Credit Claimed on a 2009 or 2010 Tax Return

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

A new version of Form 5405, First-Time Homebuyer Credit, is expected to be available by Jan. 15, 2010, for taxpayers who purchased a home after Nov. 6; this new version of the form must be used to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file an electronic return, but instead will need to file a paper return.


Selling the Home and Other Events that Require Repaying the Credit

Taxpayers who bought homes in 2009 or 2010 and sold them within a 36 month period that begins on the purchase date, must repay the credit. They also must repay the credit if they convert the home to a business or rental property or the lender forecloses on the home. The taxpayer repays the credit by including the amount of the credit as additional tax on the tax return for the year in which the repayment event occurs.

However, taxpayers do not have to repay all or a portion of the credit under the following circumstances:

1. Taxpayers sell the home to someone who is not related to them, the repayment in the year of sale is limited to the amount of gain on the sale;
2. If the home is destroyed, condemned, or disposed of under threat of condemnation and the taxpayer acquires a new principal residence within 2 years of the event, the taxpayer does not have to repay the credit; and
3. If, as part of a divorce settlement, the home is transferred to a spouse or former spouse, the spouse who receives the home is responsible for repaying the credit if required.

Source: IRS.gov

Mortgage Interest and Other FAQ Tax Questions

It's getting near tax season and one of the advantages of owning a home is the tax deductions you may be eligible to take. In general, mortgage interest and property taxes are deductible expenses on your primary residence. But what other real estate-related exemptions may you be eligible for? Check out these Frequently Asked Questions from the IRS website.

Question: Is the mortgage interest and property tax on a second residence deductible?

Answer: The mortgage interest on a second home which you use as a residence for some portion of the taxable year is generally deductible if the interest satisfies the same requirements for deductibility as interest on a primary residence.

1. Real estate taxes paid on your primary and second residence are, generally, deductible.
2. Deductible real estate taxes include any state, local, or foreign taxes on real property levied for the general public welfare.
3. Deductible real estate taxes do not include taxes charged for local benefits and improvements that increase the value of the property.

Question: Is the loss on the sale of your home deductible?

Answer: The loss on the sale of a personal residence is a nondeductible personal loss.


Question: I sold my principal residence this year. What form do I need to file?

Answer: For home sales after May 6, 1997, you will generally only need to report the sale of your home if you realized a gain on the sale and either you did not own and use the home as your principal residence for a total of at least two years during the five year period that ended on the date of the sale or you realized a gain of more than $250,000 ($500,000 for certain joint returns). To determine the amount of gain that can be excluded from income refer to Publication 523, Selling Your Home.

You may be entitled to exclude the gain realized on sale of your principal residence from income if during the 5-year period ending on the date of the sale:

1. You owned the home for a total of at least 2 years; the 2 year period need not be continuous (the ownership test).
2. You must have lived in the home as your main home for a total of at least 2 years; the 2 year period need not be continuous (the use test).
3. During the 2-year period ending on the date of sale, you did not exclude gain from the sale of another home.

If you owned and lived in the property as your main home for less than 2 years, you may still be able to claim a reduced exclusion in some cases. See Publication 523, Selling Your Home for more information.

NOTE: If you were on qualified extended duty in the U.S. Armed Services, Foreign Service, or the intelligence community (sales or exchanges after December 20, 2006) you may suspend the five-year test period for up to 10 years. You may use this provision for only one property at a time. You are on qualified extended duty when you are assigned to a duty station at least 50 miles from your former principal residence or are residing in government housing under orders and the duty lasts for more than 90 days or for an indefinite period.


Question: If I must deduct points over the life of my mortgage, and I have a 30 year mortgage, does this mean that I divide the points paid by 30 and enter that amount on Schedule A?

Answer: No, you don't divide the points by 30. If you choose to use the straight-line method, you need to divide the points by the number of payments over the term of the loan and deduct points for a year according to the number of payments made in the year.

If the loan ends prematurely, due to payoff or refinance with a different lender, for example, then the remaining points are deducted in that year.
Points not included in Form 1098 (usually not included on a refinance) should be entered on Form 1040 Schedule A, Itemized Deductions.

Can I use my IRA to buy my first house?

If you have not owned a home over the past two years, you can use up to $10,000 from your IRA account toward the purchase of a primary residence. The money can be used to buy or build a home for you, your parents, your children or your grandchildren. Combine this benefit with the first-time buyer's tax credit, a healthy supply of inventory to choose from and low interest rates....it's a great time to be a buyer in today's market!

There are some potential tax consequences so you should consult with your tax accountant. If you use money from a traditional IRA, you must pay tax on the amount withdrawn but no penalty is due. If the money comes from a ROTH IRA that is over five years old, no tax is due. If the ROTH IRA is less than five years old, you will owe tax only on the earnings portion of the distribution.


(Source: Brighton Securities)

To Rent or Buy?

Are you on the fence? Thinking of buying a home but not sure if it's right for you? With interest rates so low and the extended homebuyer tax credit available (up to $8,000), this is a great opportunity to be in the market as a first-time buyer.

There are many advantages to owning a home. Homeowners build personal wealth through equity, there are tax advantages and it allows you the flexibility to create your own personal style. Go ahead and paint that room red or blue or green...whatever you want!

The first step in evaluating whether owning is right for you is to compare the costs of renting to the costs of buying a home. Since there are all kinds of forces at work behind the scenes (interest, property taxes, tax savings, appreciation, opportunity costs, closing costs, selling costs, etc.), comparing the cost of renting to the cost of buying is a lot more complicated than just comparing the monthly mortgage payment to the monthly rent payment. This Rent vs. Buy Calculator will help you calculate your costs.

Second step, do you know what you want? What will fit your lifestyle? Do you want to be in an urban environment, suburban or rural? Do you want low maintenance (i.e. condo/townhouse, house with small yard or do you enjoy mowing the lawn on a Saturday afternoon? Rochester provides a diverse selection of all types of homes to fit all types of lifestyles. From downtown lofts to acreage in the country, there's plenty to choose from.

Most buyers need financing. How is your credit? Do you have money for a downpayment and closing costs? While some cash is required, there are programs available to help buyers, especially first-time buyers, such as FHA mortgages as well as grants that are available to assist with closing costs.

The good news is you don't have to do this on your own! Buyers can hire a real estate agent to represent your interests and help you navigate through the process. How do you find the right agent? Nothnagle.com provides you with agent bio's and information or search the neighborhoods/towns you are interested in and see who is doing business in the areas you are looking in. This will help you locate someone familiar with the area. Still not sure? Call 899-MOVE or use our live chat feature on Nothnagle.com and we will match you with someone who can best serve your needs.

Home Safety - Preventing Scalds

Nothnagle Realtors has partnered with the Prevention 1st Foundation to distribute safety materials to homeowners. Many accidents that occur in and around the home are preventable with some simple precautions and safety tips to follow.

In the Kitchen

• Plan ahead before cooking. Wear short- or tight-sleeved garments while cooking.

• Plug ovens and other cooking appliances directly into an outlet. Never use an extension cord for a cooking appliance; it can trip the user, which can cause hot food spills. Keep all appliance cords coiled and away from counter edges.

• When deep frying, prevent contact of water and steam with hot oil; allow hot oil to cool before removal.

• To prevent spills, turn pot handles away from the stove's edge and use the back burner when possible.

• Only use dry oven mitts or potholders when moving hot food from ovens, microwave ovens, or stovetops.

• During meals, place hot items in the center of the table; use non-slip placemats instead of tablecloths.

• Treat a burn right away by putting it in cool water. Cool the burn for 3--5 minutes and immediately seek medical attention.



Use Microwave Ovens Safely

• Place the microwave oven at a safe height, within easy reach of all users, and lower than the face of the person using the microwave.

• Heat foods only in containers or dishes that are safe for microwave use. Never microwave uncracked eggs.

• To prevent steam build-up, remove tight lids on food containers, puncture plastic wraps, or use vented containers.

• Open heated food containers slowly, away from face or hands, to avoid steam scalds. Let cooked food stand for 1--2 minutes before removing from microwave oven.

• Foods heat unevenly in microwave ovens; stir and test before eating.



Bathrooms and Sinks

• Adjust thermostat on water heater to keep hot water <120°F. Install anti-scald tempering valves or thermostatic mixing valves.

• Before using, check water temperature with a kitchen thermometer or test with your elbow, wrist, or hand with spread fingers.

• Start to fill bathtub with cold water and slowly mix with hot water. Avoid running water in other rooms during this time (it might increase the temperature of the water filling the bathtub) and turn off the hot water first.



Provided by the Centers for Disease Control and Prevention, adapted from recommendations of the American Burn Association and the National Fire Protection Association

What a Home Inspection Should Cover

Home inspections will vary depending on the type of property you are purchasing. A large historic home, for example, will require a more specialized inspection than a small condominium. However, the following are the basic elements that a home inspector will check. You can also use this list to help you evaluate properties you might purchase.

For more information, try the virtual home inspection at www.ASHI.org, the Web site of the American Society of Home Inspectors.

Structure: A home’s skeleton impacts how the property stands up to weather, gravity, and the earth. Structural components, including the foundation and the framing, should be inspected.

Exterior: The inspector should look at sidewalks, driveways, steps, windows, and doors. A home’s siding, trim, and surface drainage also are part of an exterior inspection.

Doors and windows
Siding (brick, stone, stucco, vinyl, wood, etc.) Driveways/sidewalks
Attached porches, decks, and balconies

Roofing: A well-maintained roof protects you from rain, snow, and other forces of nature. Take note of the roof’s age, conditions of flashing, roof draining systems (pooling water), buckled shingles, loose gutters and downspouts, skylight, and chimneys.

Plumbing: Thoroughly examine the water supply and drainage systems, water heating equipment, and fuel storage systems. Drainage pumps and sump pumps also fall under this category. Poor water pressure, banging pipes, rust spots, or corrosion can indicate problems.

Electrical: Safe electrical wiring is essential. Look for the condition of service entrance wires, service panels, breakers and fuses, and disconnects. Also take note of the number of outlets in each room.

Heating: The home’s heating system, vent system, flues, and chimneys should be inspected. Look for age of water heater, whether the size is adequate for the house, speed of recovery, and energy rating.

Air Conditioning: Your inspector should describe your home cooling system, its energy source, and inspect the central and through-wall cooling equipment. Consider the age and energy rating of the system.

Interiors: An inspection of the inside of the home can reveal plumbing leaks, insect damage, rot, construction defects, and other issues. An inspector should take a close look at:

Walls, ceilings and floors
Steps, stairways, and railings
Countertops and cabinets
Garage doors and garage door systems

Ventilation/insulation: To prevent energy loss, check for adequate insulation and ventilation in the attic and in unfinished areas such as crawlspaces. Also look for proper, secured insulation in walls. Insulation should be appropriate for the climate. Excess moisture in the home can lead to mold and water damage.

Fireplaces: They’re charming, but they could be dangerous if not properly installed. Inspectors should examine the system, including the vent and flue, and describe solid fuel burning appliances.

Source: American Society of Home Inspectors

Home Safety - Preventing Falls

Nothnagle Realtors has partnered with the Prevention 1st Foundation to distribute safety materials to homeowners. Many accidents that occur in and around the home are preventable with some simple precautions and safety tips to follow.

Did you know that falls are the leading cause of nonfatal unintentional injuries? Here are 10 Simple Ways to Protect Your Family From Falls.

1. Wipe up spills immediately.

2. Remove small rugs (or tape them to the floor).

3. Remove clutter, which can be a tripping hazard–especially toys.

4. Use a bath mat or nonslip strips in tubs and showers.

5. Use night lights in bedrooms, bathrooms and hallways

6. Make sure you have adequate lighting at the top and bottom of stairs.

7. Install handrails on stairs.

8. If you have children, use gates at the top and bottom of stairs.

9. Don't leave small children unattended on a table, bed or elevated surface.

10. Establish clear, firm safety rules for children such as no jumping on furniture.

Short Sale Tips for Buyers

Making an Offer on a Short Sale? What You Need to Know...

Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? Before you make an offer, it pays to know a little about the seller's situation.

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You're a good candidate for a short-sale purchase if:

• You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.

• Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.

• You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you're serious about purchasing a short-sale property, it's important for you to have expert assistance. Two key people you want to work with: An experienced agent and an experienced real estate attorney. Only about two out of five short sales are approved by lenders. Working with the right professionals who are knowledgeable about the process will increase your chances of getting an approved contract.

You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing. Many Nothnagle agents have attended seminars and training on handling short sales and can help you find short sale homes, negotiate the purchase when you find the property you want to buy, and smooth communications with the lender.

Some of the other risks faced by buyers of short-sale properties include:

• Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.

• Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.

• No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.