Our local real estate market is not optimal for selling. The market has come down more than 30% from its high in 2006. The recovery seems to be painful and slow with many confusions in the air. If you need to sell, you need to find a competent professional to market your property.

Make sure your broker is both knowledgeable and willing to work. Real Estate brokers are not equal. They are independent contractors. They work very differently based on their experiences, education levels, skill levels, and even their dispositions. Find the one you like and trust is the first step toward success.

Here are some aspects to consider when you gauge the quality of the services they provide:

• Asking for a Broker Price Opinion (BPO). That way you will know how your property is priced.
• What is the core selling message for your property? A generic selling message will not help your property.
• What her/his marketing plan is. The market exposure is imperative in this challenging market. To gain an edge for your property, the marketing has to include Multiple Listing Services (MLS) but go beyond.

It is an age of the Internet and technology. Like it or not, you need them to succeed. The conventional services will provide in addition to MLS: company website, Realtor.com, real estate websites like Trulia, Zillow, Craig’s List, etc. Some brokers have their own personal websites and they will advertise your properties there as well. Some big corporations can also put your properties on national newspaper websites. The key question to ask here is TRAFFIC. Sure, your properties can be on the sites, but how can potential buyers see them? Does your broker have a plan to bring the traffic to your page? Can she/he even build a site for your property?

For organic searches, the method to bring in traffic is called Search Engine Optimization (SEO); for paid traffic on the net, the common practice is Pay Per Click; for off-line traffic maneuver, the old-fashioned print advertisements are upgraded with smartphone technology to drive traffic to the websites, Youtube videos, and more.

I do not intend to get too technical here. But the bottom line is, currently, there are probably only a handful of brokers offer services at this caliber in Rhinebeck/Red Hook area. If you are a firm believer in new technology, you need to seek them out.

• Pricing strategy -There are two strategies in selling in this challenging market: Beat The Market or Chase The Market.

The market always has a way to tell if your property is over-priced for the given time. It wold not hurt to test at the very beginning. However, when the market exposure is sufficient and the core selling message is on target, the first 3 weeks should be able to illustrate the price point. If there are a lot of showings but no offers, the price is too high. If there are no showings at all, the price is way too high. At this juncture, you need to decide your strategy. If you want beat the market, the price needs to come down to the sweet spot, ideally the first choice on the market. If you want to chase the market, you can lower the price gradually, lining up with the second or the third on the market. Then you should expect a significant longer market time and several price reductions. It is a crucial decision to make, all factors should be carefully considered. And your broker should be able to provide guidance with this regard.

I hope this post is helpful. Please feel free to contact me should you have any questions.

Finding a place you can call home is both exciting and nerve-racking. You need a devoted and competent local real estate expert to guide you through the process. Your goal? To get the most home for your dollar.

Not all real estate brokers are equal. They are independent contractors. They work very differently based on their experiences, education levels, skill levels, and even their dispositions. To find the right one for yourself is the first step toward success.

Here are some factors to consider when you interview the potential agents:

Ask her/him if she/he will

• Provide an automatic update for the new listings in Rhinebeck real estate market and surrounding areas based on your wish list. That way, you will be well informed and get to know what is new on the market even when your agent is out of town.
• Evaluate the value of your chosen home so you buy the most home for your dollar.
• Negotiate the best possible deal for you so you avoid costly traps and pitfalls.
• Help you locate the most affordable financing in the market and for your situation.
• Coordinate all inspections, appraisals, title services etc. with the very best firms, so you can feel confident and focus on other important tasks during your move.

With a trusted local ally on your side, it is time to get familiar with our local properties. Education is the key. Right?

Rhinebeck/Red Hook real estate market has the capacity to contain diverse home buyers based on their lifestyles.

• Old village homes. Rhinebeck/Red Hook is renowned for its well-preserved Victorian Homes. There is a whole village section that consists of this type of homes in Rhinebeck and Red Hook repectively. They are sought-after and therefore more pricey per-square foot. You do not have a lot of land and/or privacy. However, you can walk to all the services the village has to offer.

• Homes with generous acreage in the town of Rhinebeck and Red Hook. If privacy is what you are looking for, this type of properties will suit you. They vary in ages and styles. You have a wide variety of choice.

• Suburban style developments. The houses were built roughly built around the same time and therefore they look alike from the outside. You will have a sense of neighborhood there, and often a cod-a-sack at the end. They are usually family friendly and the residents are friends.

• One-story living. The typical one-story homes in Rhinebeck and Red Hook  is ranch style houses. They are mainly built in the 50s to early 80s. They usually have rather generic layout and appearance. They are not sought-after in the local market place, so, if one-story living is your priority, you may find something very affordable.

• Fixer-uppers. You can find great fixer-uppers in Rhinebeck and Red Hook in every type of homes. Fixing up the old homes can be very rewarding. Fixing up a bank-owned property can be profitable. But be careful if you are not experienced. The cost can be high and you may not get your investment back immediately in current market condition.

• New constructions. If you love new constructions, your choices in the villages are limited. The zoning laws are strict and the available lots are basically non-existent. There is, however, a section in the village of Rhinebeck near the school and a relatively new development on the skirt of village of Red Hook consisting of new homes. Outside the villages, you will have more choices. Be aware, though, new constructions are more expensive per square foot as the cost of building has gone up noticeably.

A lot of buyers know what kind of lifestyle they want here in Rhinebeck and Red Hook, so they can narrow down the search quickly. If, however, you are open-minded with this regard, you need to move on to next subject: How much are you willing to invest? Do not ever over spend. If you think you can sacrifice your life for your house, think again. Too much financial stress will damage your sense of well-being, you relationship, and your family. Get pre-qualified for a loan as soon as you can. That way when you are ready to make an offer, you are ready to go. Sellers here will not consider your offer, if at all, seriously unless you are pre-qualified.

When the investment is decided, make two lists under your wish-list. One is what you need and the other what you want. The former is something you should not compromise, the latter, you can live without. When you can identify them, you will be less emotional when you need to give up certain things.

After all the prep work, you are to see houses. Look through all the listings your agents provide based on your criteria, and familiarize with all the terms. If you are local, drive through the neighborhoods where the houses of your interest are located. If you are coming from out of town, drive around as much as you can when you visit to get a general idea of the area.

Here I’d like to share a story with you.

I once had a client from the city. She had a budget and knew she would like to find an charming older home in Rhinebeck, Red Hook, or Tivoli. She was not familiar with this area, or the real estate market, but liked what she saw and felt here.

We started our search and before long she realized with her budget, she could only afford a small charming older home which was in need of some work. And she would like to live in a village setting. We also need to move quickly so that she could get the $8000 tax credit to fix up the house. With all the essentials outlined, she was able to look through the surface and focus on the bones of the houses and location of them. We zeroed in on a small charming village home with great potential to expand. She revisited the house three times and each time she went back, she liked it more.

However, after my market research, this potential house was over priced at the time. I encouraged her to make an offer based on my research. The negotiation was bloody, but in the end, we got the house! I helped her with home inspection, the selection of mortgage broker, attorney since she was new to our town. Not any more! She is now a happy local resident with a lot of friends and a beautifully renovated place she calls home.

You need to modify your expectations along the way. Do not be afraid. When you do so, you will get closer to the reality and well on your way to home ownership. If there is one thing you should not compromise, it is LOCATION. You can change a house but you cannot change a location. Sounds like a cliche? But there is a reason for it to become a cliche.

I hope this post is helpful. Please feel free to contact me should you have any questions.

• Fixed- Rate Mortgages- Buyers can choose from fixed-rate mortgages of varying lengths- 10-year, 15-year, 20-year, 30-year, 40-year and even 50-year- all of which arecompletely amortized.

• FHA Loans- FHA mortgage loans are insured by the government through mortgageinsurance that is funded into the loan. First-time homebuyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores do not matter.

• VA Loans- This type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The requirements vary depending on the year of service and whether the discharge washonorable or dishonorable. The main benefit to a VA loan is the borrower doesn’t need a down payment. The loan is guaranteed by the Veterans Administration but funded by a conventional lender.

• Interest-Only Mortgages- These loans aren’t really interest-only, meaning the borrower pays only interest on the loan. Interest-only loans contain an option to make an interest only payment, consisting of the original loan balance at maturity.

• Hybrid Types of Mortgage Loans:

Adjustable-Rate Mortgages – Adjustable-rate mortgages (ARMs) come in many flavors, colors and sizes. The interest rate fluctuates. It can move up or down monthly, semi-annually, annually or remain fixed for a period of  time before it adjusts

Option ARM Mortgages- On these adjustable-rate mortgages, as the name implies,borrowers can choose from a  variety of payment options and index rates. But beware ofthe minimum payment option, which can result in negative amortization. Combo/Piggyback Mortgage Loans- This type of mortgage financing consists of two loans; a first mortgage and a second mortgage. The mortgages can be adjustable-rate mortgages or fixed rate, or a combination of the two. Borrowers take out two loans when the down payment is less than 20 percent to avoid paying private mortgage insurance.

Mortgage Buydowns- Borrowers who want to pay a lower interest rate initially often opt for mortgage buydowns. The interest rate is reduced because fees are paid to lower the rate, which is why it’s called a buydown. Buyers, sellers or lenders can buy down the interest rate for the borrower.

 Streamlined-K Mortgage Loans- Like the 203k loan program, FHA has another program that provides funds   to a borrower to fix up a home by rolling the funds into one loan.

Please contact your lender(s) immediately. Keep in mind that you have these specific options. Often you have to ask the right questions in order to get optimal results:

• Refinancing

• Forbearance – lenders may let a borrower pay less than the full amount of the mortgage, or skip a few payments, if there is a reasonable plan to bring the loan current.

• Reinstatement- A homeowner may be able to make a payment that covers all of theprevious late payments, usually at the end of a forbearance period.

• Repayment Plan- Lenders may allow a borrower who has fallen behind to makeadditional payments each month until the past due amount has been paid.

• Loan Modification- Lenders will sometimes change the terms of a loan to help ahomeowner avoid foreclosure. Options include these:

1: Adding all the missed payments to the loan amount and increasing the monthly payment to cover the larger loan.

2: Giving the homeowner more years to pay off the loan, lowering the interest rate, and/or forgiving part of the

     loan  to lower the monthly payment.

3: Requiring amounts for taxes and insurance to be included with the monthly mortgage payment to avoid large

     bills in addition to the mortgage.

• Debt Forgiveness- A homeowner could be allowed to sign over the property to the lender in exchange for debt forgiveness, an option that can damage credit but one that is better than having credit history of foreclosure.

• Short Sale – A short sale is when the lender agrees to accept less for the property than is actually owed on the property.

FHA (Federal Housing Administration) loans are more accessible than ever in today’s housing market. With a FHA loan, you can benefit a lot more than conventional financing, like very little cash investment to close, less strict credit guidelines, and lower PMI (Private Mortgage Insurance), etc. In short, with a FHA loan, houses can be more affordable.

In Dutchess County, the FHA loan limits for a single family house have increased to $443,750! You can finance up to 97% of purchase price with a FHA loan. Even renovations can be covered by the loans!

Don’t think you cannot qualify before you know the facts. Many more people qualify for FHA loans than do for conventional loans. There are also many misconceptions regarding FHA loans. In fact,

• You do not have to be the first time home buyer;
• It does not take forever to close a FHA loan;
• The appraisals are not as strict as they used to be;
• It does not cost sellers more money so that they are reluctant to take an offer with FHA financing.

Short Sale FAQs
Compiled by Feng Winham
Modello Upstate Properties
Tell: (845)758-5555
E-mail: fengwinham@gmail.com

1. What is a short sale?
   A short sale is a sale of real estate in which the property is sold for less than the balance owed on a loan secured by the property sold. In a short sale, the mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the mortgagor. It is handled by the lender’s Loss Mitigation Department.
2. What is the function of a short sale?
   A short sale is typically executed to avoid foreclosure on a home. Lenders usually allow a short sale when they conclude that otherwise the home will be foreclosed on. A short sale is beneficial for the lenders because it is less expensive than foreclosure; a short sale is also beneficial for a homeowner because his/her credit will not be devastated by a short sale.
3. Do I have to have my home ‘Approved’ by the lender prior to offering it for sale as a short sale? / I called them and they wouldn’t talk to me about it.
   No. Technically speaking there is no such thing as being ‘Short Sale Approved’. The actual approval only happens with an accepted offer.
4. I just missed a payment and I know I will miss more….how long does the foreclosure process take and is there time to do a short sale?
   The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In California its taking 6+ months. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.
5. Will I still have to pay property taxes if I do a short sale?
   Property taxes will always have to be paid as part of any accepted short sale. Whether it’s you or the lender depends on their policies and the specific agreement you reach while negotiating the short sale.
6. I owe more than my home is worth and I can’t make the payment, do I have to somehow qualify for a short sale?
   The simple answer is NO. If someone can’t make their payment and they are otherwise insolvent they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.
7. Do I have to pay income taxes..I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me..the seller..is this true?
   It WAS true, now it’s no. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.
8. How do you, my listing agent get paid..who pays you commission?
   The bank will pay the commission along with all the other usual closing costs.
9. Do I have to miss a payment to do a Short Sale?
   No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.
10. I want to do a short sale and have a 2nd mortgage, does this make me ineligible?
    No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holder.

(Courtesy of Harris Real Estate University)

Loan Modification FAQs
Compiled by Feng Winham
Mondello Upstate Properties
Tell: (845)758-5555
E-mail: fengwinham@gmail.com

What is a loan modification?

A loan modification happens when the lender modify or restructure one or two the borrower’s mortgage terms, such as the interest rate, the type of loan, or the term of the loan, in order to allow the lender to turn a none-performing loan to a performing loan. It is handled by the lender’s Loss Mitigation Department.

What is this new breed of loan modification?

This new breed of loan mods is an essential part of the Obama Housing Plan. There will be 75 billion dollars in government money (Homeowner Stability Initiative) to subsidize loan mods. The objective is to reduce the monthly payment to 31% of your monthly gross income. First, the lenders will do their part to reduce the monthly payment to 38%, and then the treasury department will match dollar -for -dollar to the lender to bring the payment to 31% of your monthly gross income. It is an unprecedented measure. It is geared to reach 3-4 million homeowners at risk. Therefore, more homeowners will qualify and get approved.

What if my monthly mortgage payment is less than 31% of my gross income, and my house is badly under water, do I qualify?

No, you cannot. The best thing to do now might be a short sale.

What is the possible outcome for a loan modification?

1. Interest rate reduction: the interest rate can be reduced to as low as 1% for a period of time, then increasing by 1% per year after a period of time and then fixed in the 5% range for the rest of the loan term.

2. The term of the loan: it can be extended up to 40 years.

3. Principal reductions. It was very rare to get a principle reduction before. With new guidelines, it is possible now that the lender might agree to “write off” a significant amount of money on the loan balance to reflect the current market value of the property·

What if I have a first and second mortgage?

Both your mortgages can be modified. You need to negotiate with the lender(s) separately with each mortgage. ·

Who will pay for the modification?

The borrower.

Does the mortgagor have to miss a payment or two to get a loan modification?

No.

Exclusive “Preferred Buyer Program”

 

The objective of this program is to find YOU the place you call home. It is so much more than a MLS search. It’s a complete beginning-to-end service covering every aspect of your home-search endeavor.

My Preferred Buyer’s Program is absolutely FREE to you.Here’s what you’ll get when you enroll…

• I’ll evaluate the value of your chosen home so you buy the most home for your dollar…the very same way I described earlier.

• Negotiate the best possible deal for you so you avoid costly traps and pitfalls.

• Help you locate the most affordable financing in the market and for your situation.

• Coordinate all inspections, appraisals, title services etc. with the very best firms, so you can feel confident and focus on other important tasks during your move.

• Everything you do with me stays COMPLETELY CONFIDENTIAL.