Buying October 26, 2011

Home Buying: The Basics of Homeowners Insurance

Once you’ve purchased your dream home, it’s time to protect it! Buying a home can be very risky without homeowners Insurance. It is essential for safeguarding your most valuable possession against defects, vandalism and disaster. It will cover the costs of repairs in the event of calamities such as fire, storms, vehicles, aircraft, riots, theft, and faulty household systems or appliances. It’s important to find out what type of insurance you need after buying a home. There are six basic types:

  1. HO-2, the least expensive type, covers only named perils such as fires or lightning. If the peril is not named, it’s not covered.
  2. HO-3, generally recommended as the minimum coverage, includes open perils protection. It covers all direct physical losses with certain exceptions such as earthquakes, floods and intentional loss.
  3. HO-4, renters and tenants insurance, covers personal property rather than the structure itself. There are also exclusions for which types of perils are covered.
  4. HO-5 covers open perils and adds a rider, which includes protection of personal property. Exceptions also apply.
  5. HO-6 is for condos or co-ops. It is similar to HO-4, but also covers improvements you may have made to the dwelling.
  6. HO-8 is for older homes. It insures the home for the repair cost or market value instead of the cost to replace it.
Buying October 26, 2011

Why a Home Buyer Needs an Inspection

If you ever watch any home buying or remodeling shows on satellite or cable TV, you know what kinds of secrets a home inspection can reveal about a seemingly-safe house! Home inspections are crucial before finalizing any real estate purchase. The purpose of a home inspection is to evaluate the physical condition of the home for sale and identify anything that needs to be repaired or replaced as well as to estimate the remaining useful life of the structure’s components.

Don’t confuse appraisals with inspections! An appraisal is for a lender to estimate the value of the home, and to make sure it meets minimum FHA standards. The FHA does NOT guarantee the value or condition of your would-be new home. If you find problems with your home after closing, don’t expect the FHA to help. It’s your responsibility to inspect the home for problems before closing.

Finally, radon gas testing is recommended for all houses by the EPA and the Surgeon General of the United States. For more information on radon testing, call the National Radon Information Line at 1-800-SOS-RADON, or 1-800-767-7236.

Inspections may be done before or after signing as long as your contract states that the home sale depends on the inspection.

Buying October 26, 2011

How to Choose a Home to Buy

If you’re ready to start looking for your dream home, and you’ve narrowed your search to a few select neighborhoods, take these following tips to heart:

1. Types of homes. Choose the type of home that is the most appealing yet practical for you. In addition to single family homes, there are multifamily homes, condominiums and co-ops. Multi-family homes are often good for first time home buying because they can have rental income to help with their mortgage.

2. Budget and investment considerations. Find a balance between your needs, wants and budget. Decide whether you should buy a newly constructed home, a bit older home or a “fixer-upper”. If you may sell your home in the future, the following are best for re-sell value:

  • Homes with 3 or more bedrooms; condos with 2 or more
  • Homes with “curb appeal” always sell best
  • Homes that are NOT unusual or unique and not the most expensive on the block

3. While house-hunting you will probably look at many homes for sale, so keep careful and complete notes and compare.

4. When you finally find your dream home, don’t hesitate! If you snooze, you may lose!

Buying October 26, 2011

Staging a Home For Sale During The Holidays

While the holidays are a favorite time of year for millions, it’s definitely not their favorite time to buy a home. The housing market plunges between the months of November and January as people put turkey dinners, tinsel and trees on the top of their lists and house hunting on the bottom. However, if you really need to sell during the holiday season, it does have a few advantages: shoppers are typically more serious and the competition is calmer. If you are committed to putting your house for sale at this most wonderful time of the year, consider these tips:

  1. Decorate your home festively, but don’t go overboard and cover up important features. Also, put treats out for buyers and crank up the heat for a cozy winter escape.
  2. Post top-quality photos and videos of your house on the web. Many buyers do their shopping from the warmth of their homes when the weather is bitter.
  3. Make sure your curb appeal is striking! Keep fallen leaves raked and snow neatly groomed.
  4. Get yourself a reliable real estate agent and seek out serious buyers such as work re-locators.
  5. As always, price to sell!!
Active Rain October 25, 2011

WPAR Membership Approves Merger with Rockland and Orange

Bear Mountain BridgeToday was the annual meeting of the Westchester-Putnam Association of Realtors (WPAR), and it was not your typical annual meeting. Elections were held for both the Association and the Empire Access MLS, and Yours Truly was confirmed for a 3rd term as MLS Vice President. Among my duties in the past few months was to be on the committee to discuss the proposed merger of the WPAR, Rockland County Board, and Orange County Association (OCAR) to form the Hudson Gateway Association of Realtors (HGAR). Today, by an overwhelming margin, our membership approved the merger

There was a tiny burp of skepticism by a small few in the discussion phase prior to the vote, and the incendiary questions asked by those few did belie a rather stark lack of knowledge about the initiative. In a room of perhaps 1,000, I counted about 4 dissenting votes, however, and that was that. The consensus will be on the right side of history. Board mergers are a growing trend due to the economy and contracting membership, but the upside is far beyond mere cost measures. 

The new, larger association will actually save money by having more bargaining power for services as we go forward, such as our next MLS provider contract, VOW and IDX services, and whatever other value added things we can procure for membership such as lockbox services and maybe insurance (I can hope). 

The new, larger association will have a stronger voice in Albany and Washington, as state and US representatives in our midst will have more than a single county constituent trade organization voting bloc. Our NYSAR delegation will be larger and stronger as well. 

The new larger association will eventually have a consolidated Multiple Listing Service, which will save overhead for those companies that conduct business on both ides of the river. 

The new larger association will be good for consumers. Local Realtor associations are the voice of homeowners and their interests. We fight against onerous transfer taxes charged at closing. We are fighting to preserve the mortgage interest deduction. We fight to keep affordable housing mortgages available in the face of reactionary politicians who propose ever harder downpayment and underwriting requirements. Whether you wish to buy or want to sell, that is huge

I truly believe that if both rank and file members and consumers really knew how hard the association works to preserve their interests, public perception of our industry would undergo a renaissance overnight. 

Active Rain October 22, 2011

What Does $540,000 Buy in Tuckahoe, NY?

Sold by J. Philip Real EstateWhat can you get for $540,000 in Tuckahoe, New York? I’m so glad you asked! $540,000 can get you a pretty, pre-war tudor on a quiet residential street in the Tuckahoe school district just a hop skip and a jump from New Rochelle and Bronxville. If you are like our client, you’ll get an 1840 square foot 3 bedroom with a deck, garage, granite and stainless steel kitchen and a ton of classic charm. 

Our client closed on the one pictured just this past week, and it also has a finished basement, beautifully landscaped yard, woodburning fireplace, formal dining room, den, and lots of period woodwork. We wish Mary many happy healthy years there and will definitely remain in touch. 

Tuckahoe is a great area to live. Located on the Metro-north Harlem line, it is an easy commute from both Manhattan and the Bronx. It is also located very close to all that southern Westchester offers- shopping and culture in Yonkers and White Plains, lunch in Scasdale or Bronxville, and striking distance to the Sound Shore. Log onto WestchesterDreamHome.com to find your own little slice of Heaven right here in The 914

Active Rain October 22, 2011

How I Fixed the Electrical Problem

I have often said that a good real estate broker is more valuable for what we know than what we do. This evening, for example, my meeting with some nice people in Yonkers brought this to light. 

I met with some prospective home sellers who were looking into selling a home that was built in the 1950s that had been in the family for over 50 years. While a solid home with excellent mechanicals and clear attention to good maintenance, cosmetically it would need updating. They preferred to sell “as is,” and I agreed that was the way to go but something still bothered Mr Homeowner.

I had to probe a bit, but his concern was a valid issue pointed out by no fewer than three separate contractors: In   two bathrooms, the light switch was behind the bathroom door when it was opened, which he was told was out of compliance. Aside from the inconvenience of reaching around to flip the switch, it was considered a safety issue. All three contractors, whom he met with separately, recommended having the switch moved to the other wall. This was a project he was concerned about. The expense was one thing, but the red tape with the city was another, as permits for this work could also trigger a headache. 

Three different contractors. 

There we were, Mr and Mrs Homeseller, and myself, sitting at their table. I asked a question.

Why wouldn’t you just switch the hinges so the doors open to the other side? Then the light switch will be right there, correctly. 

He looked at me. Then he looked at his wife. She looked at him. They both looked at me. 

That would work. Why didn’t we think of that? And why didn’t any of the contractors suggest it? 

I don’t know why they didn’t suggest it (although I have an idea!). But I do know one thing: re-hanging a door is far easier than opening a wall and moving electrical switches. And that’s how I “fixed” their electrical problem with no electrician, no permits, and no headache. I am not in the trades, nor would I pretend to be a contractor. But I have been around just a bit. 

I think we’ll do business. 

Door Hinge       Look Ma, no electrician

 

To find a home in Yonkers or anywhere else in Westchester, get a free account at WestchesterDreamHome.com and find a home with hinges on any side you like! 

Active Rain October 20, 2011

Mark’s 2nd Closing

Mark's 1st closingAlmost exactly 2 years ago, on October 14, 2009, we closed on my in-laws’ co op in Queens. It was the end of an era, as my wife had grown up in that apartment; it had been in her family for decades. That day, we had a babysitting challenge, and we were forced to bring our 2-year old son, Mark, to the closing in New York City. Like it wasn’t hard enough. If you told me that the buyer’s attorney was also going to be 90 minutes late for the closing on top of all that, I would have asked for an adjournment. But, there we were in an office, with a two year old, at a closing table for almost 4 hours. 

And the 2-year old was the best behaved person in the room. The whole time. Mark just sat there like it was business as usual, munching on his crackers and taking the odd swig from his sippy cup, and fell asleep on his mom’s shoulder just when they were passing out checks. 

Fast forward 2 years and 5 days- Mark is home with Dad for the day, and Mom is called out. There is a closing at noon with a client I have been working with for ages. And we have the same lawyer on our side as we did two years ago! 

So, off to Great Neck, Long Island we two men went, and Mark was again a well behaved guy. The closing was at the bank, and they just happened to have chocolate cake because it was the Big Cheese’s birthday. They asked Mark to try out the cake before anyone else to make sure it was yummy. 

And sugared up, the little guy was still a champ. 

He is clearly his mother’s son. 

Mark doing everyone a favor and tasting the birthday cake

Mark and Laura Browne, one of the best real estate attorneys in New York

Tiring day at the office

Active Rain October 18, 2011

Why I Will Not Be Deleting my Facebook Business Pages

(Consumers will find the following post either very boring or an interesting look inside baseball. My point of view is less of a selling broker and more of a manager of 20+ licensees.) 

Facebook business page for J. Philip Real EstateChris Smith, AKA Tech Savvy Agent, has authored a gutsy article on Inman entitled You Need to Delete Your Facebook Business Pages Immediately. The subject is controversial for a variety of reasons, not the least of which is that Chris himself has been one of the biggest proponents of business pages you’ll find. The post has already garnered almost 100 responses, and on the face (sorry) of it, seems blasphemous. 

Blasphemous perhaps, until one considers the state of the average business page. The average fan page is a dormant embarrassment that acts as a spam magnet, with no significant updates from the actual owner in a dog’s age. Frankly, I wondered aloud why Chris specified business pages only and didn’t also include dormant blogs and static websites with the same “under construction” message since the Bush administration. I have to smile when I stumble upon a blog that was last updated in March of 2008 after 6 posts. Is the person still in business? Do you think a consumer wonders the same thing? They do. They tell me. 

Want to make something happen in real estate? Do something…regularly. 

The only thing that succeeds purposely from inaction is the fermentation of wine. The rest of human endeavors require you to vacate the resting upon the bum and getting into action. And if you can’t type a few words, then please, yes, delete the page, because it does more harm than good. And when I say “page” I mean blog, business page or whatever else you have floating out there collecting dust (and spam). This is not to save bandwidth, it is to save your credibility. 

Our main business page is updated virtually daily via the Networked Blogs application that sends my blog content over. Another niche page has already yielded a deal with another pending, and gets over 1000 impressions per update entry. Both invite new registrants to our IDX home searches, and those inquires are distributed to our associates, who have an edict to follow up but never pester. And spam is zapped by the Administrative Goddess. I do not point to myself as an authority. I will not write a book. But neither will I redact my content. It is dynamic and works, because I work it. If you aren’t working it, take Chris’s advice.  You won’t get heat from the stove because you installed it. You get heat from the stove because you put wood in. Chop chop. 

Nothing works unless you work it consistently. If you want to make money by waiting, start a winery. Otherwise, work your stuff. 

Suggestion (and unsolicited pimpage): for a totally kickass business page, contact mi hermano Stephen Fells at Agency Logic, and they’ll build you your own little corner of awesomeness for a really reasonable rate. 

Active Rain October 17, 2011

Meet Joe Sasquatch

I got Sasquatch beatPerhaps you’ve had the pleasure of meeting Joe Sasquatch and his lovely wife, Nessie. I never have, but a former client of mine knows someone who either knows a mutual friend or knows OF Joe, but the details are not important. 

Joe, if you haven’t heard, is the guy who bought that $700,000 bank owned foreclosure a few towns over for $200,000. It was in mint condition- no deferred maintenance or structural issues. Somehow, the prior owner either bought it new or did a massive, high end rehab on the place (we aren’t sure), but lost the house to the bank before any deterioration took place, and in the serpentine process of Westchester County court red tape and administrative archipelago, the legion of bankers, lawyers, brokers, appraisers and contractors all overlooked how undervalued this completely renovated (or new, not sure) place was and it just ended up in Joe and Nellie Sasquatch’s lap. 

Apparently, The Sasquatch’s were the only bid on the place, and the story goes, they looked that REO agent in the eye (I have never seen 99% of our area REO agent’s eyes, for the record) and said “Well, does the bank want to keep the house or do they want our cash?” and BOOM. The house was theirs. $500,000 instant equity. 

Joe is no stranger to remarkable occurrences- I vaguely recall that , in high school, Joe narrowly escaped death by having his stomach pumped after ingesting Pop Rocks with a Sprite chaser. Rumor was that he died after his stomach exploded, but no, how could he be dead if he now lives in this great house he bought in, um, Scarsdale-no, Harrison- wait- Bronxville? Not sure. 

Besides, Joe was the guy who bought that short sale a few years back when he sent that email to the listing agent saying “Why doesn’t the bank just take our $100,000? Or would they rather have the house?” Word is that his email made it to the inbox of the chairman of Bank of America, who reportedly said “my God. He’s right,” and then personally drafted and signed the approval and release. Joe then resold the place for a huge profit after placing one ad on Craig’s list. 

I just wish someone would introduce me to Joe Sasquatch so I can ask him what his secret is. 

Have you met Joe? Or, like me, have you just heard of him?