The Extended Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

The Extended Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

What Does the Junk Email Mean

Realtors get tons of junk email that sneaks its way around the spam filters.  Sometimes the nature of it is disturbing.  And I'm not just talking about the pharmacutical stuff!  A lot of what we are receiving is about short sales and foreclosed properties. (A short sale is where the proceeds of sale aren't enough to pay the closing costs, exisiting mortgages and other liens.)  It really hasn't seemed that the market conditions in the Albany/Capital District have been that bad, but when I see so much of that kind of email, I have to wonder. 

Own a House? Are We Nuts?

We've been lucky in Upstate New York this winter.  No snow!  Now we have to deal with it again.  Really would be nice to call the landlord.  Then again, it's sort of nice not to have to call the landlord and not have to wait until it gets taken care of.

The Guy Fixing My Roof, Fell Off!! Am I Going to Get Sued?

You hired your neighbor to fix your roof.  He fell off and got hurt.  Bad.  You feel awful about it, but do you feel bad enough to risk losing your house to pay the damages? Will you really be responsible?  The answer, as with most legal questions, is a definite "maybe". 

If you own a one or two family house, the NY Labor Law (Sec. 240 and Sec. 241), provides that you will be responsible if it is determined that you actually controlled the work.  If you own a dwelling with more than two units, you are ABSOLUTELY LIABLE for damages incurred by workers who are injured on ladders or scaffolding on your property.

The moral is:  GET INSURANCE!!!

If you own ANY real estate, make sure you have liability insurance that covers you for any kind of personal injury damages, whether the injured party is family, a guest, the mailman, the pollster or a worker.  If you are having work done require the worker or contractor to provide a certificate of insurance for personal injury coverage, with adequate amounts of coverage, which names all of the owners as additional insureds. 

If you are performing the work, don't rely on the property owner's coverage and make sure you are insured, whether the property owner asks for it or not.

New Credit Card Law and the Home Equity Option

Conventional wisdom is that you don't want to incur long term debt for short term gain.  In other words, don't mortgage your house to buy today's supper.  Somehow, that hasn't stopped any of us from paying for supper with a credit card.  After all, we know we're going to pay it off in full at the end of the month.  Right! That's how we have those big balances that are subject to those huge interest rates and annual fees.

Though several of the provisions will take effect over time, the bulk of the new credit card laws go into effect on February 22, 2010.  The most relevent, so far as real estate is concerned, is the provision that requires the credit card company to tell us how long it will take to pay off our balance based on minimum payments.

When we see that it will take ten or more years, paying the balance in full with a low interest, low closing cost, home equity loan might make a lot of sense.  Basically, you will now see that you have been incurring long term debt for very short term gain.  You may well be able to shorten the payoff period with a mortgage.  Just remember - this won't help if you continue to bring the credit card to with you to the supermarket or restaurant!

Before You Move - Check Out a New Neighborhood

Your Realtor tells you the house you are considering is in a "lovely" neighborhood.  It's within an easy commute to where ever you're going.  Even Jupiter. 

Check it out yourself. 

Drive through the neighborhood or, better yet, get some exercise and walk it.  Maybe there will be some people outside that you can chat with about the area.  Go on different days and at different times of the day and night.  Will you be comfortable getting out of your car or walking your dog? Will you want your kids outside playing or walking back from school or the bus?

The character of a neighborhood might change after dark, especially in urban areas.  Things might be different on weekday nights than they are on weekend nights, when the neighbor's teenagers have their parties.  Look for large, fenced in yards.  Do the people have llamas or fifteen dogs?  How much traffic is there?

Drive the commute during rush hour.  Both ways.  Check the route that the school bus takes.

None of these things are on the listing sheet.  Only you can decide whether you will be comfortable or not.  Give yourself enough information to make a well considered choice.

Maximizing Land Use and Tax Exempt Property

In all fairness, I know nothing about this denomination, but I have to congratulate them for innovation. 

Get the Most Out of Your Home!

Want some easy and relatively inexpensive things you can do to get your house ready to sell.

Your home is probably your largest investment. Whether you intend to sell or refinance it, you want to do everything you can to make it as attractive as possible. Sounds simple, but the house that looks its best will sell quicker and for the best price.

Here’s a checklist for preparing your home for sale.

• Paint inside and out. This may be the improvement that gives you the most bang for your buck. And don’t forget the garage, shed and fences! 
• Mow the lawn and clear debris.
• Seal and clean gutters.
• Tidy the front entrance: Polish door fixtures. Replace that rusty mail box. Put out a new doormat.
• Clean windows, storms and screens.
• Tend to "little things" - oil squeaking doors, tighten loose cabinet knobs, take out removable stains, replace damaged floor tiles. Clean soiled carpeting.
• Make sure windows, doors and drawers open and close easily.
• The kitchen is the one place in the home that buyers look at closely. Tighten leaky faucets, repair faulty wall switches, outlets, light fixtures and any appliances that will "go with the home."
• The bathroom gets close scrutiny too. Keep it spotless. Tiles must be scrubbed and grouted, faucets polished, toiletries and medicines put in their chest. Laundry items placed in a closed hamper.
• Get rid of clutter ALL OVER! Uncluttered rooms and closets look and feel bigger.
• Clear out accumulated items from cabinets, under counters and from the basement and garage. Have a garage sale and get rid of the stuff that doesn’t sell.

If you need cash to finance other work that needs to be done, consider a home equity loan.  The rates are low. Since you're going to be selling your home in the near future, you might be able to take advantage of even lower rates with an adjustable rate mortgages without many of the risks that otherwise apply.

Let us know if you have any comments or other ideas. 

New carbon monoxide detector law to take effect February 22:

The statute, which takes effect on February 22, provides that "....every one or two-family dwelling, or any dwelling accommodation located in a building owned as a condominium or cooperative in the state or any multiple dwellings shall have installed an operable carbon monoxide detector of such manufacture, design and installation standards as are established by the council. Carbon monoxide detectors required by this section are required only where the dwelling unit has appliances, devices or systems that may emit carbon monoxide or has an attached garage."

It is unlikely that searches will be conducted of private homes to determine compliance with this law (and that which requires smoke detectors); however, what will happen when someone becomes ill or dies in premises that did not have a carbon monoxide detector? If a claim is made on a home owner's insurance policy, will the company deny coverage?  Will a health insurance company attempt to recover its expenses from the property owner?  I wouldn't be surprised.  Certainly lack of the devise will be clear proof of negligence. 

The moral is -- get a carbon monoxide detector and a smoke detector and make sure they both work.

Lawyers Are NOT the Least Trusted Professionals

According to the 2009 Gallup Honesty and Ethics Poll, lawyers are not the least trusted among the professions.  In fact, trust in lawyers decreased less than trust in the Clergy between 2008 and 2009.  Furthermore, lawyers are trusted more than car salesperson, members of Congress, stockbrokers and business executives.   I suppose, if you were a glass half full kind of person, you could interpret this to mean that lawyers are among the five least trusted professions.  Is this a matter of "symantics"?

I couldn't find where Realtors were rated, but 54%  of those sampled trusted college instructors (down from 58% in 2006).  It's good to see that in the view of those polled, I have at least one honest job.

Tax Credits!

Tax credits are very nice.  Dollar for dollar reductions in the amount of tax you have to pay.  The First Time and Existing Home Owner Tax Credits create unique opportunities.  There's more information avaialble on Oxford Realty's Facebook page.  Dates to remember:  Purchase contract has to be signed and in force by April 30, 2010.  Closing has to take place by June 30, 2010.

Time to kiss and make up!

It's time.  I'm going to try to bridge the gap.  Mend the fences.. whatever. 

As a lawyer.  I apologize to all the Realtors to whom I have been curt, rude, nasty and apparently uncooperative.  I understand the work that you expend on behalf of your client.  I know you have spent hours showing houses, gathering information, preparing the contract, negotiating, arranging and attending inspections and everything else that you do.  I know that you usually spend all this time without any promise of compensation.  I respect the work that you do.  As a lawyer, I thank you. Without your efforts, the client would not be purchasing or selling.

As a Realtor.  I'll think about what I've done wrong and get back to you.

Starting Off

Realtors and Lawyers are too often like cats and dogs. As a lawyer, I have often worked closely with Realtors but too often I've been unnecessarily rude - ok, downright nasty - to Realtors whose only concern seems to be that the deal close so they can get paid.  As a Realtor, I've been frustrated with slow moving and obstructionist lawyers who never seem to appreciate the effort that the Realtor puts into the process of buying or selling a piece of property.  Maybe this can be fixed. But as with cats and dogs, sometimes it can be.  Sometimes not.  Caught in the middle of this of course are the parties to the transaction.  It's their money and their property.  All subjects for further discussion.

Buyers and Sellers really have to understand the process of buying and selling.  They really have to understand the roles of the Realtor, lawyer, mortgage broker, lender, title company, the inspector, the surveyor and every one else who is involved in the transfer of real estate.  All subjects for further discussion.

From time to time, there will be pertinent issues concerning real estate: cost versus value analyses, interest rate and market fluctuations, tax benefits and detriments. All subjects for further discussion.

There will be other topics to be discussed. Hopefully it'll be interesting, informative and fun.