Two Locations Open Under Nothnagle Franchise System

Nothnagle REALTORS® is pleased to announce the official opening of two franchised offices this week, Nothnagle REALTORS® Moss Ansteth Associates and Nothnagle REALTORS® Home Town Choice. The companies are both now operating under the Nothnagle system.

Nothnagle REALTORS® Moss Ansteth Associates is under the ownership and management of industry veterans Aaron Moss and Stephen Ansteth and will operate from their location at 1 West Genesee Street in the heart of Skaneateles. From this location, they and their team of agents will serve all of Central New York. They can be reached at (315) 685-5500.

Nothnagle REALTORS® Home Town Choice is under the ownership and management of industry veterans Carol Bodine, Jim Moon, Mark Moon and Richard Murphy. The office is located at 270 Lake Street in Penn Yan. From this location they and their team will serve Keuka Lake and the surrounding areas. They can be reached at (315) 536-2700.

The Nothnagle system offers a comprehensive package of tools for both the agent and real estate consumer. Both franchised offices will offer services and tools that have not previously been available in one package before in their local market, from the nationally-recognized website, Nothnagle.com, to on-line guided tours, a customizable on-line TV show, mobile access, comprehensive marketing plans and products, YouTube videos and more.

Nothnagle REALTORS® previously operated the “Gallery of Homes” franchise system for over 30 years. The first real estate franchise in the country, at its peak there was a network of 1,100 Gallery of Homes location throughout the U.S., Canada and the U.S. Virgin Islands. The Company sold off the franchise in the 1980’s.

SONYMA Helps Out First-Time Homebuyers

NYS Homes and Community Renewal (HCR), which includes all the integrated housing community renewal agencies of New York, recently announced a new State of New York Mortgage Agency (SONYMA) program. The Own it, Fix it New York! Home Mortgage, developed by HCR is for low- and moderate-income first-time homebuyers and is designed to help stabilize neighborhoods and property values by improving the quality of New York's housing stock.

The program is available to qualified homebuyers for the purchase and repairs of homes that have been foreclosed or sold as a "short sale" and have not been renovated and/or maintained due to owner hardship. SONYMA offers very competitive interest rates.

The key features of the Own it, Fix it New York! Home Mortgage:

• Below-market interest rate financing up to 97% of the "after-improved" appraised value of the property -or- the home purchase price plus repairs (whichever is lower)
• Availability of down payment assistance: $3,000 -or- 3% of the home purchase price, not to exceed $10,000 (Whichever is higher)
• Eligible repairs allowed up to 20% of the "after-improved" appraised value -or- $25,000 (whichever is lower)
• Eligible properties are existing one- and two-family homes, Planned Unit Developments and condominiums. Any property in need of repair is eligible.

Here is an example of how the program might work for the average SONYMA borrower with an income of $60,000 who purchases a $215,000 home. If the home needs $20,000 in repairs, the applicant could qualify for financing up to 97% of the lesser of 1) the purchase price of the home plus renovation costs, or 2)the appraised value of the property after the proposed repairs have been made. If the after-renovation appraised value is $235,000, for example, the borrower could finance up to $227,950 (97% of $235,000). In this example, the borrower could qualify for $6,450 in down payment assistance and would need to have $3,200, plus closing costs at the time of the transaction.

Christine Nothnagle, President of Nothnagle Home Securities and member of the SONYMA Advisory Council said, "I commed HCR for recognizing the challenges we face in the current lending arena. The Own it, Fix it New York! Home Mortgage will allow borrowers to purchase a property which has deferred maintenance due to our current economic climate. Many buyers may have the funds necessary to purchase and close on the home, but lack the additional opportunity to take advantage of the low interest rates of today and finance necessary and desired improvements. This will help our overall economy by retuning a neglected property into a pride of ownership home for the entire neighborhood."

Lenders will begin accepting applications on April 1, 2011. Learn more about Own it, Fix it New York! Home Mortgage.

3 Green Home Improvements that Pay Off

In honor of St. Patrick's Day, what would be more appropriate than an article about "green" home improvements?

If, over the last few years, you have made some green home improvements and were hoping for lower energy bills and a quick recovery of your initial investment, you were probably disappointed. Your monthly bottom line has likely been steady—or worse, gone up.

Before you rule out green, change your thinking. Instead of expecting large returns, understand a new bottom line: Smart retrofits help you hold your ground against rising energy costs.

Energy prices as a whole have gone up over the last decade, especially in certain regions of the country. Although natural gas prices have dipped a bit since 2008 and electricity prices have stayed level, the trend line goes up for both from 2011 forward.
The U.S. Energy Information Administration estimates an average annual increase in residential energy costs of 2.3% through 2035. So if energy cost projections hold, and assuming an average annual American energy bill of $2,200, you’ll pay 2.3% more each year (that’s $50 the first year) if you do nothing to reduce your consumption. Your bill could inch closer to $4,000 by the year 2035.

If the only reason you’re making retrofits is to manage energy costs, look for projects with maximum bang for the buck. Try to beat the 2.3% annual average with green home improvements that reduce your energy consumption by 5% or more but have a modest initial investment. And don’t forget to ask whether your utility or state government offers rebates or tax credits for these improvements.

1. Seal and insulate ductwork that runs through unheated spaces—the attic, a crawl space, a garage. It’s not glamorous, but it can improve the efficiency of your heating system by 20%—a 5% bill reduction overall. If you hire an HVAC pro for this job, you’ll invest a few hundred dollars for labor and materials.

2. Buy a programmable thermostat. For just $25 to $250, you can save, on average, around 8% on energy bills simply by programming it properly.

3. Add attic insulation and seal air leaks. One of the best energy-saving improvements out there, because insulating and sealing your home can reduce your energy bills by 10%. Upgrading your attic insulation to the recommended R-value costs anywhere from $.25 to $1 per square foot, including materials and labor; it’s less if you do it yourself.
But you won’t get the maximum savings if you don’t seal air leaks, so plan this as a combo job. Caulking and weather-stripping typically costs from $50 to $350, depending on the size of your house.

Will Good Things Come to Those Who Wait?

Sellers in any real estate market are looking to get the best possible price. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out and we would see price appreciation in 2011. Studies released this week have painted a different picture.

If we look at CoreLogic’s January Home Price Index (HPI), we see that prices are again beginning to decline:

National home prices, including distressed sales, declined by 5.7 percent in January 2011 compared to January 2010

Mark Fleming, chief economist with CoreLogic, said, “A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure.”

The hope is not that the spring market will increase or even stabilize prices, they hope it will simply “reduce” the pressure to drive prices lower.

Radar Logic’s RPX Composite Price comes to virtually the same conclusion:

Radar Logic believes the RPX Composite price will continue to exhibit year-on-year declines throughout 2011 due to a growing supply of homes for sale and in the inventories of financial institutions, and weakening demand due to the reduction of government incentives for home buyers. Moreover, banks are facing uncertainty over whether they will be forced by regulators to expand mortgage modifications, and may reduce lending and tighten standards as a result.

“No matter what you call it, a ‘double dip’ or the continuation of a long process of deterioration, the current trend in home prices is evidence that housing markets are continuing to languish,” said Quinn Eddins, Director of Research at Radar Logic. “We expect the negative trend to continue under a severe supply overhang that includes a large and growing ‘shadow inventory’ of homes in default or foreclosure.”

It seems that the bottom line is that prices have again begun to fall nationally. With the overhang of existing and shadow inventory, prices will probably continue to decline throughout most of 2011. If you’re thinking of selling, now might be the best time. Check with a Nothnagle agent to see how this might impact your decision to sell.

It Pays to Support Responsible Homeownership

Doing your part to help other Americans gain a foothold on the homeownership ladder does not just help them. You’ll benefit both your community and your own pocketbook.

When people move from renting to owning a home, they’re more likely to vote, get involved in community groups, and care about their home’s appearance. The children of homeowners do 23% better in school, according to a 2001 study by Harvard’s Joint Center for Housing Studies. And a steady flow of first-time homebuyers makes it easier to sell your own starter home when you’re ready to move up to a larger property.

Make housing affordable

One way to make more people homeowners is to make housing more affordable. All U.S. homeowners benefit from policies like the mortgage interest tax deduction. Many use government-backed mortgage insurance to lower loan costs. A variety of public and private programs offer low-cost loans and down payment assistance to help Americans become homeowners. There are resources that help prospective homeowners save a down payment like the website EARN, a non-profit that uses donations to match funds saved by low-wage earners.

Reduce foreclosures and preserve home value

Foreclosure matters because it hurts all homeowners. Foreclosures cause property values to decline. Each foreclosure within 1/8th of a mile of your home lowers your property value about 0.744 percent, the Center for Responsible Lending says.

One effective tool against foreclosure is educating homeowners before they buy. The Joint Center found that loan delinquencies fell 13% with homeownership counseling. People who go through pre-purchase and post-purchase counseling and learn about mortgages, family budgeting, and home maintenance are less apt to face foreclosure.

Support groups that help homeowners

One way you can help other homeowners is by donating your time or money to some of the many non-profits that promote responsible homeownership. Habitat for Humanity partners with new homeowners to build affordable housing. Habitat homes are not free. Homeowners work hundreds of hours, get homeownership counseling, and make mortgage payments. The United Way supports many local programs that build affordable housing, help families build financial assets, and teach financial management skills. If you donate to United Way, you can direct your contribution to those causes. There are also various federal, state, and local programs that help create homeowners and expand responsible and affordable homeownership.

How to get involved

You can support responsible homeownership in many ways. Retired construction contractors France and Bill Moriarity travel the country in their RV managing Habitat construction projects. “We like it because it’s a hand up, not a hand out,” France Moriarity says. Habitat volunteers don’t need construction skills and can sign up to work as little as one day at a time. Groups can volunteer together. Organizations like Rebuilding Together and NeighborWorks America sponsor once yearly volunteer events that help lower-income homeowners repair their homes.