Military Personnel Eligible for Extended Tax Credit through 2011

Military personnel who have served 90 days overseas in 2009 or 2010 are still eligible to receive the federal tax credit of up to $8,000 for first-time buyers or $6,500 for repeat buyers. Eligible troops have until April 30, 2011 to be under contract and June 30, 2011 to close.

In addition, service members are exempt from the occupancy requirements. Home buyers who sell within three years of purchase are typically liable for repayment of the tax credit. Service members have no occupancy requirement. Intelligence and foreign service members are also eligible.

The second benefit for military personnel looking to buy a home is the traditional VA Mortgage. Some of the highlights that make the VA loan attractive one are:

100% financing! That’s right…..100%! You can buy a home with no down payment.

The Seller can pay your closing costs as an incentive to induce you to buy their home. That means you don’t need to come up with that money either.

No Reserve Requirements means you don’t need to have any real savings at all to buy a home with a VA loan. (Now, that doesn’t mean you shouldn’t have money in the bank before you buy a home, but it does mean you don’t have to.)

More liberal understanding of credit challenges (i.e. lower credit scores).

For more information on VA loans, contact one of our mortgage partners.

Help spread the word to our troops and their families! For more information, contact a Nothnagle agent or call 899-MOVE.

Real Estate as an Investment

Real estate has long been viewed as a solid investment when it comes to your primary residence. It allows you to build equity and personal wealth over time, can be passed down to heirs, used as a nest egg, seniors can take equity out of the property through reverse mortgages or it can be sold at a profit to invest in a bigger, better house down the road.

With investments in the stock market having taken a tumble over the past few years, many individuals have turned to investment properties to generate positive cash flow. Of course, you should always consult with your tax professional and an experienced investment property agent prior to getting started.

In today's market climate, typically you will need some cash to get started. Banks have tightened up lending requirements for investors considerably. When getting into rental properties, you need to calculate what the potential cash flow is that the property will generate to determine whether or not it will be worth it to you. An agent can help you determine cash flow.

Many people today are interested in "flipping" homes as a profit generator. The key to being successful at this method is to focus on the buy side, not the sale. You need to be able to buy the property for the right price and then calculate what your carrying costs and renovations will be. Carrying costs and renovation costs are fixed; your purchase price is not.

Example A:

House bought for $100,000. Renovations cost $15,000 and carrying costs for six months is $6,000. Right now you have $121,000 into the property. Renovation estimates almost always come in higher than anticipated....so add another $5,000 for unanticipated expenses. Now you have $127,000 into the property. If houses in the area sell for $140,000 on average, your anticipated profit is $13,000. How can you increase your profit? If you could buy the house for $95,000 that would bring your profit margin up to $18,000. Then you have to determine if that amount is worth it to you.

Again, an agent experienced with investment properties can not only help you find "good buys" but will also help guide you as you analyze what your cash flow will be. Don't forget about taxes....capital gains and other taxes may apply so always consult with a tax professional.

Creating Scent Appeal

There is a big difference between using scent to cover up odors versus using them to enhance the experience and make the environment more appealing. When selling your home, two simple things that will help you keep unpleasant odors at bay are to take the trash out often and watch what you cook. If you have pets, if possible try to limit the animals to a certain room that can be easily cleaned and keep their bedding (and fur!) washed to avoid odors.

Even to smokers, a home that smells of cigarette smoke is typically considered a bad smell. An ionizer can help remove smoke smells and if you are a smoker, you may want to avoid smoking indoors while your house is on the market.

Smoke, pet smells, and musty odors are odors that you need to get rid of to improve your showings and to get your home sold. Simply adding air fresheners, scented candles and/or deodorizers usually will not get rid of the bad smell and can be viewed by buyers as an attempt to cover up the bad odor. Sometimes a thorough cleaning of carpets, drapes and upholstery is well worth the investment.

However, there is a direct connection between smell and people's moods so light fragrances can help create "scent appeal" when used properly in the home. The scents should never be overpowering but more of a subtle background to set the mood. A light floral fragrance can put people in a more pleasant mood while citrus scents tend to have an energizing effect. Vanilla is often found to be comforting and relaxing.

Some suggestions:

A small reed diffuser in a bathroom can keep the room smelling clean while not overpowering the space.

Boil water on the stove and throw fresh cinnamon in it.

If using scented candles stick to basic scents such as vanilla, apple, cinnamon and lemon or grapefruit.

Run lemon wedges through the garbage disposal to eliminate any odors.

Beware of Rental Scams on Craigslist

The FBI and various news outlets have been warning people to beware of a scam involving rentals posted on Craigslist. If you are using Craigslist to find rental property, please make sure that you are in contact with a real person in real life.

Craigslist posts a warning on all of the real estate pages:

Avoid scams and fraud by dealing locally! Beware any arrangement involving Western Union, Moneygram, wire transfer, or a landlord/owner who is out of the country or cannot meet you in person.

Typically the scam artist will only communicate via email and uses a story that they are currrently doing missionary work in Africa and therefore can't meet in person. They will request that you fill out an application and send a deposit and/or first and last month's rent via Western Union. They then indicate if you are approved, they will mail you the key. The key never arrives and the money is gone.

Many of the postings on Craigslist are "hijacked" listings taken from other local and national real estate websites and the Seller has no idea their home is being used to advertise the fake rental. The postings use a photo and provides basic info about the house so it looks legitimate. Often the monthly rent is way below market prices - remember, if it seems too good to be true, it usually is!

People have lost money in this scam! If you have been a victim or if you know of someone who has, please direct them to the scam section Craigslist has set up that includes links to the FTC and Internet Fraud Complaint Center.

Tips for Maximizing Small Spaces

When selling your home, it is important to maximize your space. Easier to do in a large home, but what if you have a small house? Or a small room? There are several ways to maximize your floor space and enhance your home's beauty.

Remember, prospective buyers appreciate what they can see so you need to make sure you are showing them what you've got. The most obvious tip is to remove clutter. Clutter makes the space look smaller. Clutter in the closets, on the counter tops, in cupboards and especially in rooms will "shrink" the space and hide features that should be shown off....granite countertops, custom shelving or unique features of a room.

Some additional tips to help you maximize your space:

#1. Make sure that each room is easily identifiable. The computer desk should not be in the dining room....unless the dining room is being used and marketed as an office. Otherwise, move the desk.

#2. Remove throw rugs to show off your hardwood floors and take down pictures off the walls in order to create less distractions and hence open up the space more.

#3. Remove large pieces of furniture in overstuffed rooms. Put it in storage or if you're not going to take it to the next house, sell or donate it. The key is to create open space so that people can easily move around the room.

#4. High contrasting or dark colors make rooms look smaller. That doesn't mean you have to go out and paint everything white! Color is good but blending and using more medium-to-light tones will help open up the space.

There are many options these days for storage, including furniture and end tables that have hidden storage built in. Another option is to install bed risers, which safely lift a bed in order to create storage space underneath.

Nothnagle's Home Services offers short and long term storage options as well. If you just don't have the space for everything, you can store out-of-season clothing and household items you may not need every day in order to create more space.

Short Sales Made Easier

The Home Affordable Foreclosure Alternative Program (HAFA) took effect in April to standardize and expedite the short sale process. HAFA is an add-on to the more wide-reaching Home Affordable Modification Program (HAMP) that previously was launched in 2009.

The premise of HAFA is that if borrowers are eligible for the modification program but are unable to work out a plan to stay in their home, the owner and the lender have a streamlined process for executing a short sale or a deed in lieu of foreclosure.

Wikipedia defines a "short sale" as:

A sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan (i.e. the mortgage). It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac (there are separate guidelines for these mortgages). You can verify whether or not your lender participates in HAFA by looking them up on the Making Home Affordable website. In addition to your lender participating in the program, the homeowner must meet the following conditions:

1. The property must be the borrower's principal residence.
2. The mortgage loan must be a first lien mortgage originated on or before January 1, 2009.
3. The owner is delinquent on payments and/or default is imminent.
4. The unpaid principal amount of the mortgage is equal to or less than $729,750.
5. The owner's total monthly mortgage payment exceeds 31% of their gross income.

The new rules have created standardized forms, procedures and timelines and allow the homeowner to receive preapproved short sale terms prior to even putting the house on the market. The HAFA rules also require that homeowners be fully released from any future liability for the debt after the short sale is completed.

One of the most frustrating things about short sales in the past has been the delay and time it often takes to get an acceptance from the lender. The new HAFA rules also expedite the timeline, making it easier for sellers and buyers to move forward with their transactions.

If you are a homeowner in distress, or you know of someone having difficulty meeting their financial obligations, there is help available. The Housing Council offers free and confidential counseling and is certified by HUD (U.S. Housing and Urban Development).

If you are considering a short sale, we have agents with extensive training to assist you. Simply contact a Nothnagle agent direct or call 899-MOVE to get started.

Nothnagle Sales Soar in April

Closings were up 43% for April 2010 vs. 2009. Since the beginning of our Fiscal Year on October 1st, sales volume has increased 37% and units closed 28% over the previous year. Several factors have been contributing to the dramatic rise in sales this year.

First, the Upstate NY market continues to be one of the most stable markets in the country right now. Housing remains affordable and there is a healthy supply of homes on the market. While our region may not have experienced the dramatic appreciation that occured elsewhere a few years ago, we have been fortunate that the dramatic downturn didn't hit here either.

Interest rates remain extremely low and there is mortgage money available. The low rates allow people to qualify that maybe otherwise wouldn't if the rates were 9 or 10 percent. We're seeing our average sales price increase which may be an indicator that with the low rates buyers are getting "more for their money" since more of the monthly payment can be applied toward principal instead of interest.

Of course the federal tax credit certainly didn't hurt! Many buyers that were on the fence probably were swayed by the $6500-$8000 incentive they received. But even in the weeks following the expiration of the tax credit, we're still experiencing a lot of activity in the market.

It's still a great time to buy...and sell! And more consumers are selecting Nothnagle because we have agents that can get the job done....12 days faster! Since January 1st, our listed homes are selling 12 days faster than the competition. Why? Because more buyers choose Nothnagle for our award-winning website and the various tools we offer and sellers get the most exposure possible for their homes.

It's a great time to be in the real estate market. Are you interested in buying or selling? Contact a Nothnagle agent directly, or call 899-MOVE to get started! Or take advantage of our "Live Chat" feature on Nothnagle.com.

10 Ways to Prepare for Homeownership

Are you considering buying a home? If you're considering a purchase, there are several preliminary steps you can take to prepare. And don't forget....buyers may be eligible for the homebuyer's tax credit, up to $8,000 for first-time buyers and $6,500 for repeat buyers meeting certain residency and income limits.

How to get started:

1. Decide what you can afford. Generally, you can afford a home which has a value that equals two to 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, which include 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 first home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. 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.

Nothnagle Sales Soar in April

Closings were up 43% for April 2010 vs. 2009. Since the beginning of our Fiscal Year on October 1st, sales volume has increased 37% and units closed 28% over the previous year. Several factors have been contributing to the dramatic rise in sales this year.

First, the Upstate NY market continues to be one of the most stable markets in the country right now. Housing remains affordable and there is a healthy supply of homes on the market. While our region may not have experienced the dramatic appreciation that occured elsewhere a few years ago, we have been fortunate that the dramatic downturn didn't hit hear either.

Interest rates remain extremely low and there is mortgage money available. The low rates allow people to qualify that maybe otherwise wouldn't if the rates were 9 or 10 percent. We're seeing our average sales price increase which may be an indicator that with the low rates buyers are getting "more for their money" since more of the monthly payment can be applied toward principal instead of interest.

Of course the federal tax credit certainly didn't hurt! Many buyers that were on the fence probably were swayed by the $6500-$8000 incentive they received. But even in the weeks following the expiration of the tax credit, we're still experiencing a lot of activity in the market.

It's still a great time to buy...and sell! And more consumers are selecting Nothnagle because we have agents that can get the job done....12 days faster! Since January 1st, our listed homes are selling 12 days faster than the competition. Why? Because more buyers choose Nothnagle for our award-winning website and the various tools we offer and sellers get the most exposure possible for their homes.

It's a great time to be in the real estate market. Are you interested in buying or selling? Contact a Nothnagle agent directly, or call 899-MOVE to get started! Or take advantage of our "Live Chat" feature on Nothnagle.com.

Save $$$ With the Nothnagle "Stimulus" Program

The tax credit may be over but it's still a great time to buy....and a great time to buy or sell with a Nothnagle agent! You can save big with the Nothnagle Stimulus Program available exclusively to Nothnagle clients.

On average, you can save $1200 on various home-related services such as your home inspection, garbage removal, cable service, carpet cleaning, HVAC cleaning/inspection, cleaning services, storage, locksmith and insurance (including car insurance too!). How do you get started? That's easy, contact any Nothnagle agent direct, call 899-MOVE or click on our "Live Chat" feature on our website to get started.

Click here for a complete list of all of our services and providers.

Preparing Your Home for Sale

Getting ready to put your house on the market? Your agent can provide you with helpful tips to help you prepare and maximize your home's showings. As you prepare for your first prospective buyer to come through, now is the time to make your home shine and sparkle! First impressions are very important.

Step #1: A thorough cleaning is in order! In need of help? Our Home Services can connect you with the professionals you need to get the job done. Our partners offer a wide range of services as you prepare your home for sale. All participating vendors have undergone an extensive screening process to ensure that you only get top-quality service.

Where to begin....

First, you need to dissasociate yourself from your home. Look at it through the eyes of a buyer.

#1. De-personalize your home. You want buyers to come in and picture themselves living there...not you!

#2. De-clutter. This is so important. Now is the time to throw away the stuff you've been saving that has no purpose anymore -- or, if it is still in good condition, there are many places that will accept your donations. Kitchen counters need to be clear. Closets need to be neatly organized. The junk drawer needs to be cleaned out.

#3. If you have too much stuff, rent a storage unit! You need to create light, open spaces in your home.

#4. Make minor general repairs around the house. Fix the leaky faucet, change lightbulbs, touch up paint, etc.

#5. Make the house sparkle inside and out. A clean porch/walkway and a freshly painted front door can make a huge difference in a buyer's first impression of your home. Inside the house, clean baseboards, windows, polish furniture, dust everything (including light fixtures and ceiling fans) and yes....even the dreaded task of cleaning the oven!

In the end, spending a day or two (or three) cleaning and organizing will give you huge rewards in the end. Buyers like to see a well-maintained home -- combine it with proper pricing and you should see results very quickly.

Tax Credit Still Available for Troops!

Military personnel who have served overseas for at least 90 days during any part of 2009, will have an additional year to buy their homes and still qualify for the tax credit. Intelligence service and foreign service personnel also are eligible.

Armed services members will have until April 30, 2011, to be under contract, and June 30, 2011, to close.

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.

The second benefit for military personnel looking to buy a home is the traditional VA Mortgage. Some of the highlights that make the VA loan attractive one are:

100% financing! That’s right…..100%! You can buy a home with no down payment.

The Seller can pay your closing costs as an incentive to induce you to buy their home. That means you don’t need to come up with that money either.

No Reserve Requirements means you don’t need to have any real savings at all to buy a home with a VA loan. (Now, that doesn’t mean you shouldn’t have money in the bank before you buy a home, but it does mean you don’t have to.)

More liberal understanding of credit challenges (i.e. lower credit scores).

Two of the major hurdles for homebuyers today are accumulating sufficient liquid assets and credit scoring imperfections. The VA Mortgage lowers both hurdles considerably.

For more information, contact a Nothnagle agent or one of our mortgage partners.

Housing Remains a Good Investment

During the housing boom of 2006, all of the experts were saying that the gains were not sustainable and you may recall predictions that the "bubble" would "burst".....and it did. Fortunately, Upstate New York has emerged relatively unscathed from the housing downturn experienced in much of the country.

For 38 consecutive years, the National Association of REALTORS reported continuous increases in the national median sales price. Year after year prices continued to climb and homes appreciated in value, including the Upstate market. While we may not have experienced the dramatic increases that occured in Florida, California, Arizona and other states, we also did not experience the dramatic decrease either. We were envious of reports of people doubling or even tripling their investment but now are relieved that we are not in the dire straights some of these markets have found themselves in.

Bottom line, this long-term trend of home appreciation will continue in the future making real estate a good investment for the future. Yes, we're seeing tougher terms and larger downpayment requirements but mortgage money continues to be made available. And programs such as FHA, VA, SONYMA and others continue to be a viable offer for buyers that are not able to make a large downpayment. Even with the end of the "tax credit era," there are still many grant programs and incentives available....not to mention the fact that interest rates remain very low.

Don't let media reports and fears of "doom and gloom" for real estate discourage you. If you're thinking of buying or selling, it's a great time to take advantage of the current market conditions and the long term gain of owning real estate.

Good news is, you've come to the right place! Nothnagle.com is your connection throughout Upstate New York and across the globe. Are you interested in getting started? Want to find out what your home is worth? Looking to find out what is on the market? We have the right professional for you. Contact any agent direct or call 899-MOVE (toll free 866-295-MOVE) or click on our "Live Chat" feature to get started.

Is Nothnagle a Good Place for a New Agent to Start?

As a new real estate agent you will have many different real estate companies to choose from. We believe that Nothnagle offers the best opportunities for a new agent to not only launch their career but to also reach their full potential.

Nothnagle is the place for you if...

• You are looking for the best new agent training available to help you hit the ground running. Our "FastTrack" training has launched more successful careers than any other program in our area.

• You are interested in associating with the industry leaders of real estate. Nothnagle was just named #33 most productive broker in the country by RIS Media. Last year, we transacted 8,753 units and $1.1 billion in sales volume.

• You would like to receive company-generated leads. Nothnagle.com generates an average of 100 leads per agent per year.

• You are interested in having all of the latest technology and state-of-the-art tools in the industry...right at your finger tips.


Our training program also pairs new agents with a "mentor"....to help you learn the business with hands-on experience working with a successful, tenured agent.

Want to find out more? Click here to find out more about Nothnagle's new agent program, licensing requirements and upcoming career seminars.

Would You Like to Sell Your Home 2 Weeks Faster?

First quarter statistics were recently released in the 11-county region that makes up the Rochester multiple listing service. Home sales remain up, with an increase of 9.3% in units closed and an increase of 12.8% in sales volume. These statistics are a combination of all competitors' sales activity in the region, including Nothnagle.

What is surprising is that Nothnagle's statistics are outpacing the market considerably. For the same time period, Nothnagle units sold increased 15% and Nothnagle's sales volume increased 21%. So what does this say about the market? More consumers turn to a Nothnagle agent to get the job done....and to get the job faster! During the first quarter of 2010, Nothnagle agents sold homes nearly TWO WEEKS (12 days) faster than the competition.

These are statistics right from our local MLS. Many of our competitors try to portray themselves as bigger/more successful than they are but our numbers speak for themselves. No one sells more homes than Nothnagle in the Rochester region. In the past year, Nothnagle agents have closed 8,375 transaction sides. Our next closest competitor? 1,770.

If you're looking to buy or sell in 2010, look no further than Nothnagle. Need help finding an agent? Click here for a roster of offices and agents or call 866-295-MOVE to get started.

Save with the Nothnagle Stimulus Program

The tax credit may be over but it's still a great time to buy....and a great time to buy or sell with a Nothnagle agent! You can save big with the Nothnagle Stimulus Program available exclusively to Nothnagle clients.

On average, you can save $1200 on various home-related services such as your home inspection, garbage removal, cable service, carpet cleaning, HVAC cleaning/inspection, cleaning services, storage, locksmith and insurance (including car insurance too!). How do you get started? That's easy, contact any Nothnagle agent direct, call 899-MOVE or click on our "Live Chat" feature on our website to get started.

Click here for a complete list of all of our services and providers.