#1: Just because it's a buyer's market doesn't mean you should buy right now. Don't let the lucrative market dictate a buying decision if the time isn't absolutely right. Potential homebuyers need to ask themselves if they have a good credit score, if their job is secure and if they can stay in the home for a few years. If the answer to these questions is "no," it might make more sense to wait until life and finances are more stable.

#2: The cost of owning a home is more than just the purchase price. On top of a mortgage payment, there are several monthly fees and expenses any first-time buyer should consider when becoming a homeowner: insurance, property taxes, utilities and maintenance. Think about scaling back the home price in order to better budget for the entire package.

#3: Programs are out there to help first-time buyers. A sizeable down payment is great to have for a home purchase, but not everyone can afford to fork over 20 percent upfront. Fortunately, there are many federal, state and local programs geared toward helping first-time homebuyers with down payments, interest rates and loan terms sure to make the whole process and affordability a bit easier.

#4: Foreclosures and short sales present great deals, but proceed with caution. Buying a foreclosed or short sale home can be a risky proposition for a first-time buyer. Foreclosures are often sold "as-is," while a short sale transaction can be lengthier and more complicated than a typical home purchase. First-timers should consult an agent or attorney with specialization in these areas.

#5: Getting pre-approved for a loan gives you more buying power. Obtaining lender pre-approvals are important because it establishes a homebuyer's maximum purchase price, shows sellers that the buyer is serious about buying a home and lets the homebuyer compare interest rates and terms to find the best deal.

#6: Good school districts boost property value. One of the most important aspects of a home's value is the neighborhood where it's located. Even if the homebuyer does not have kids, buying a home near sought-after schools can help the resale value.

7: You may be able to access your tax credit upfront. Buyers using FHA-insured mortgages can apply their tax credit toward their home purchase immediately, rather than waiting until they file their income taxes to receive a refund. Prospective buyers who believe they qualify for the credit are also allowed to reduce their income tax withholding, therefore increasing their take-home pay.

8: Not all real estate agents represent buyers. There are three types of agents: listing agents, who represent sellers and help them get the best price; buyers' agents, who represent buyers and protect their interests; and agents who represent either (or both). Often, first-time buyers prefer to work exclusively with a buyer's agent so there are no possible conflicts of interest.

9: Doing your homework can help you make a competitive offer. Before buying the home, determine the property's market value by having the realtor conduct a comparative market analysis. This report will show what buyers were willing to pay for similar homes in the area, giving a good idea of what will make a fair offer.

10: It's important to have a back-out plan. Before signing on the dotted line, make sure to have a contingency plan in case things don't go as planned in the home inspection or appraisal. If the home has a major flaw or doesn't appraise for the purchase price, an escape plan allows the contract to be voided.

Also part of the appeal to dishwashers-in-a-drawer is their convenience with the capability of washing small loads of dishes in each drawer, which saves water and electricity.

Here are some of the other top kitchen trends for 2010:

Color: Shades of white and off-whites are the most common kitchen colors, followed by brown, beige, and bone hues.

Cabinetry: The most popular wood for kitchen cabinetry remains cherry, followed by maple. In the decline: Painted cabinetry and light natural finishes and distressed finishes.

Design style: Traditional is the most popular porcelain tile and natural stone remain the most popular kitchen flooring. Hardwood, however, will dominate kitchens this year more than ever.

Countertops: Granite is the most popular option, but quartz is inching up to it in popularity.

Freddie Mac recommends that if the variance between an appraisal and the HVE point value estimate is more than 20 percent then: 1) the appraisal should be considered for additional review by a senior underwriter or in-house appraiser; 2) obtain a review appraisal or a second appraisal; 0r 3) reject the appraisal.

Freddie adds that the HVE point value estimate from Loan Prospector should not be shared with the appraiser of the subject property; and all HVE data should be treated as strictly confidential and appraiser independence should be maintained.

Thursday, the Fed announced an increase in the discount rate, the emergency rate at which banks borrow money from the Fed. The Fed made clear that this in no way reflected a change in broader monetary policy or its economic outlook. This was simply a return to more normal levels for one Fed tool now that the financial crisis has eased. As a result, there was very little impact on mortgage rates. According to Fed officials, a move to begin to tighten overall monetary policy, which almost certainly would cause a significant reaction, is still expected to be at least several months away. The inflation data released this week continued to show low levels of current inflation, providing little pressure for the Fed to rush to take action.

Visit HouseLogic at www.HouseLogic.com

The NATIONAL ASSOCIATION of REALTORS® this week launched HouseLogic, a new, comprehensive consumer Web site designed to help home owners make smart decisions to maintain, protect, and increase the value of their homes. HouseLogic will help consumers take responsible actions pertaining to what is likely the largest investment of their lives.

“Backed by the resources and industry insights of NAR and its REALTOR® members, HouseLogic will engage and involve consumers throughout the lifecycle of homeownership,” said NAR President Vicki Cox Golder. “It makes sense that, as the first, best source for real estate information, NAR should collaborate with today’s consumers to help them make the most out of owning a home. HouseLogic will help us do that.”

The free Web site helps home owners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.

“Unlike other homeownership Web sites, HouseLogic helps consumers view their home through a financial lens and make smart, informed home improvement investment decisions,” said Golder. “Families can set goals for saving money on their home or increasing its value, and easily track the progress they are making on those goals.”

Registered users can save relevant information, create to-do lists, and set project reminders. The Web site can also be customized for individual owners depending on how handy or ambitious they are regarding home projects; how much money they want to spend or save; where they live; and their priorities, such as increasing the value of their home or improving their neighborhood.

HouseLogic also empowers home owners who want to get more actively engaged in shaping community life, advocating on neighborhood and homeownership issues that matter most to them. The site provides users with the tools and know-how to effect change, such as establishing a neighborhood watch program, building a community playground, or participating in city or county planning efforts.

“For more than 100 years REALTORS® have been bringing America home,” said Golder. “HouseLogic takes owning a home to the next level, partnering with consumers to truly help people build their futures through homeownership.”

— NAR

The short sales guidelines are part of the government’s new Home Affordable Foreclosure Alternative Program, known as HAFA, which is an add-on to the Obama Administration’s more wide-reaching Home Affordable Modification Program launched in early 2009. The idea is that if borrowers are eligible for the modification program but are unable to work out a plan to stay in their home, they—and their lenders—have a well-mapped route for executing a short sale or a deed in lieu of foreclosure.

The new HAFA program applies to the large volume of so-called "risky" loans that were issued outside of Fannie Mae and Freddie Mac guidelines during the housing boom, such as zero-down loans, option ARMs, and Alt-A mortgages that didn’t require extensive income documentation (see sidebar, "Which Loans Are Eligible?"). As of this writing, Fannie and Freddie were developing their own, similar guidance for loans they’ve backed.

The HAFA guidelines are voluntary, but major banks and servicers—including Bank of America, Chase, Wells Fargo, and Citimortgage—as well as dozens of smaller lenders, are expected to participate, clearing up the logjam of potential short sales on their books.

To participate, a mortgage servicer must have opted in to the government’s Home Affordable Modification Program by the close of last year. Through the end of November 2009, there were 78 such mortgage servicers, which together cover approximately 85 percent of eligible mortgage debt, according to the program’s servicer performance report. 

How the Rules Will Help

Observers say the HAFA guidelines speak to many of the real estate industry’s ongoing frustrations over short sales. For starters, lenders will have a financial incentive to get these deals moving. Servicers get $1,000 to cover their costs, and subordinate lien holders get up to $3,000 through a matching arrangement in exchange for relinquishing their lien. In addition, borrowers receive $1,500 to defray their moving costs.

The guidelines also include standardized forms, procedures, and timelines—and allow the borrower to receive preapproved short sale terms prior to the property listing. These measures should address the resistance of serious buyers to invest time, money, and effort into a purchase offer without having any assurance that the lender will accept their offer or even look at it in a reasonable time frame (or, just as bad, accept a last-minute rival offer).

 Also, the HAFA rules require that borrowers be fully released from future liability for the debt. That will be a relief to home owners in recourse states who would otherwise remain liable for debt collection. Slightly fewer than half of the states are recourse states.

Getting New Systems In Place

Bank of America in late 2009 rolled out an initiative to dovetail with the guidelines, and other lenders may follow with their own programs that anticipate the new rules. Through its "cooperative program," the bank’s mortgage servicers reach out to owners who are unable to modify their mortgage. "We developed our program in anticipation of the federal guidelines," says David Sunlin, Bank of America Home Loans senior vice president who oversees the company’s foreclosure and REO activities. Sunlin participated in a webinar hosted by REALTOR® Magazine in mid-December to talk about the bank’s new procedures.

Sunlin says the bank’s program gives troubled owners "a preapproved solicitation for a short sale" along with proactive processing of all the required steps: "appraisals, review of financials, investor approvals, mortgage insurer approvals, second-lien approvals—all of these can be done while the property is being marketed," he says, "so when an offer is brought to the table we can do a much quicker turnaround."

It will take months for lenders to modify their procedures in accordance with the guidelines (and, for agency loans, in accordance with the Fannie Mae and Freddie Mac guidelines), and even then, the new rules surely won’t be a cure-all. But there does seem to be a light at the end of the tunnel. 

Sunlin says the fall-out rate for short sales at Bank of America has been as high as 70 percent. His hope is that with the new guidelines, that rate will drop to something similar to that for REO transactions, which have a 10 percent to 15 percent fall-out rate.

"Short sales have always been a reactive process," he says. "We need a proactive process, and the guidelines are a good start." REALTORS® no doubt would like to see that hold true.

Which Loans Are Eligible?

The Home Affordable Foreclosure Alternative Program provides short sales guidelines for loans not owned or guaranteed by Fannie Mae or Freddie Mac (those agencies are expected to release their own, similar guidance). The following conditions also must be met:

• The property is the borrower’s principal residence.
• The mortgage loan is a first lien mortgage originated on or before Jan. 1, 2009.
• The mortgage is delinquent or default is reasonably foreseeable.
• The current unpaid principal balance is equal to or less than $729,750.
• The borrower’s total monthly mortgage payment exceeds 31 percent of the borrower’s gross income.

• Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
• Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
• Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
• Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
2. The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.

• If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
• This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
• The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
  

• Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
  • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
  • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
• Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
  • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
• HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
  • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
  • Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home."

Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.

1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

• Aluminum roof coating: 3-7 years
• Enameled steel sinks: 5-7 years
• Security systems: 5-10 years
• Carpet: 8-10 years
• Smoke detectors: fewer than 10 years
• Faucets: 10-15 years
• Garage door openers:10-15 years
• Air conditioners: 10-15 years
• Asphalt: 12-15 years
• Termite-proofing during construction: 12 years

By Corbett B. Daly

WASHINGTON, Jan 19 (Reuters) - The U.S. Federal Housing Administration said on Tuesday it will raise the minimum down payment required to secure an FHA-backed mortgage for less creditworthy borrowers as part of a series of steps to shore up the agency's finances.

The FHA said borrowers with credit rating scores below 580 would be required to make a down payment of at least 10 percent, while the rate for higher-ranked borrowers would stay at 3.5 percent.

It also said it would increase the up-front mortgage insurance premium, which is paid by the borrower when the loan is made, to 2.25 percent from 1.75 percent.

The moves will raise the cost of mortgages at a time the housing sector is trying to find its feet, but the agency said it was a prudent step to ensure its financial health and carry on its mission of supporting home ownership.

"Striking the right balance between managing the FHA's risk, continuing to provide access to underserved communities, and supporting the nation's economic recovery is critically important," FHA Commissioner David Stevens said in a statement.

The FHA said in November that its capital reserves had dwindled to just 0.53 percent of the value of the thousands of home mortgages it insures, well below the 2 percent required by law and down sharply from 3 percent in 2008.

To help rebuild reserves, the agency said it would seek congressional approval to allow it to raise annual mortgage insurance premiums -- which are paid out by the borrower over the life of the loan -- above the 0.55 percent maximum.

If approved, this would allow it to shift some of the increase in the up-front premium to the annual premium.

"This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual (premium) is paid over the life of the loan instead of at the time of closing," it said.

It did not specify a new level for the annual premium.

The FHA also said it was cutting the amount of aid sellers could provide buyers to 3 percent of the purchase price from 6 percent, a move it said could help lessen incentives to inflate appraised home values.

The changes come at a time when FHA-backed credit has never been more important to housing. Mortgage credit for many Americans dried up when the housing boom went bust in 2007, touching off the biggest financial crisis in 70 years.

The agency saw a fall in volume during the boom as Wall Street investment banks offered lenders a lucrative market for their loans, but agency volume has soared since mid-2007 as lending standards tightened and easy access to capital dried up.

Applications for FHA-guaranteed mortgages exceeded an annual rate of 3 million in October, nearly triple the level in 2007. In 2006, when subprime and other Wall Street programs were at full speed, the annual rate for applications was less than 600,000. (Additional reporting by Tim Ahmann; Editing by Jan Dahinten)

2) Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.

3) Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.

4) The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.

5) The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.

6) A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit Versus Tax Deduction

It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to  $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

------------------------

Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

In addition, you may be able to benefit from additional housing related provisions, including the following:

------------------------

Tax Incentives to Spur Energy Savings and Green Jobs

This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings

This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing

This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November.

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, said a congressional aide, who spoke on condition of anonymity because he was not authorized to publicly discuss the deal.

Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.

Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.

I wanted to take a minute and clarify some definitions of some commonly used Real Estate Terms.  I believe that as a Realtor it is my duty to educate you to use the correct terminology and understand the meaning.

1) Mortgage – This is one of the most commonly misunderstood words I come across.  Most people think that a Mortgage is a loan.  A Mortgage is a legal document that pledges a property to the lender as security for payment of the loan/debt.

2) Realtor – A Realtor, not Real-a-tor, is a member of the National Association of Realtors.  If the agent is not a member then they are just a Real Estate agent.

3) Pre-Qualification – Many think this is a Pre-Approval, it’s not.  A Pre-Qualification is a Pre-Approval to a Pre-Approval.  It’s the process of determining how much money a prospective homebuyer will be eligible to borrow before a loan is applied for.  This is usually a verbal process between Buyer and Lender.

4) Pre-Approval – With this process the prospective borrower has submitted all necessary documentation, credit checked, and passed to an underwriter for approval.  This is what you will need when making an offer on a home.

5) Closing Costs - Expenses (over and above the price of the property) incurred by Buyers and Sellers in transferring ownership of a property, also known as settlement costs.  In Westchester You can count on Closing Costs averaging 3%-4% of the purchase price, and a bit higher on properties over $500,000.  Keep in mind properties 1 million dollars and above have an additional “Mansion Tax” equal to 1% of the purchase price.

6) Assessed Value – I can’t tell You how many times I’ve been asked to clarify this.  The Assessed Value is the value placed on the property by a public assessor for purposes of taxation.

7) Annual Percentage Rate – The total yearly cost of a mortgage stated as a percentage of the loan amount.  It includes the base interest rate, primary mortgage insurance, and loan origination fees.

8) Cooperative – A form of common property ownership in which the residents of an apt building do not own their units, but rather share in the corporation that owns the property.  You receive a proprietary lease and stock certificate.

9) Condominium – A form of property ownership in which the homeowner holds title to an individual dwelling unit, plus a share of common areas of a multi-unit property.

My next blog post will feature more terms.  I hope this has been helpful so far!

1) Watch For “Shoulder Surfers” - Always be aware of who is around you and watching when you use your credit/debit card. 

2) Shred Sensitive Documents – Investing in a personal shredder is smart investment.  Thieves or better known as “Dumpster Divers” rummage through trash looking for discarded bank statements, credit card bills, and receipts.  Westchester County has purchased a paper-shredder truck to help residents destroy unwanted papers.  The truck is available on all Household Recycling and Electronic Waste Days, contact your local town office for more info.

3) Only Write Four Digits of Your Account Number on Checks – many people write their full account number in the “memo” section of a check, including myself.  You DON’T have to comply if asked to do so.  This is enough to link your payment with your account.  When paying your taxes never right your full social security number on your check, just the last four digits.

4) Shop Safely Online – Many websites scramble sensitive information, such as your credit card number, so that it can be read only by the merchant.  Look for the picture of an unbroken key or closed lock in your browser window.  Also make sure the web address on the page that asks for your credit card info begins with “https” and not “http”.

5) Don’t Get Phished – This is an email scam that lures personal info from unsuspecting victims.  This scam begins with an email regarding your personal bank or credit card account stating there may be a problem.  Once you click the link in the email you are taken to a bogus look-alike site that prompts you to enter sensitive info.  If you comply you have just handed over your sensitive info to an identity thief.

6) Beware of Vishing – This is similar to “Phishing” but over the phone.  Always remember financial institutions don’t request identifying info over the phone as they already have it on file.  Always report the incident to your financial institution.

7) Secure Your Wireless Router – Setup a personal firewall, change your default SSID (network name), disable SSID broadcasting, scramble or encrypt your data, and restrict network access to devices with an authorized Media Access Control address.

8) Check Your Credit Report – You can order a free credit report once a year by visiting www.annualcreditreport.com or calling 1.877.322.8228

Step 1 - Figure Your Total Monthly Pretax Income
a) Annual Salary/Wages Of Buyers..........................$_________________________
b) Other Annual Income...........................................$_________________________
c) Total Annual Income............................................$_________________________
d) Divide Total Annual Income By 12 Months.............._________________________
Total Monthly Pretax Income................................=$________________________

Step 2 - Figure Your Total Monthly Debt
a) Car Payment.......................................$_______________________
b) Student Loan Payment.........................$_______________________
c) Child Support/Alimony..........................$_______________________
d) Credit Cards (Minimum Monthly Payment)..........$_____________________
e) Other Long Term Debts..........................$___________________________
Total Monthly Debt....................................$____________________________

Step 3 - Maximum Monthly Mortgage Payment
(Includes Principal, Interest, Tax, Mortgage Insurance@28% Of PreTax Income, 29% FHA)
a) Total Monthly Pretax Income From Step 1...............................$______________________
b) Multiply By .28 (FHA Mortgages .29).......................................x.28 or x.29

 Maximum Monthly Mortgage Payment.....................................$________________________

Step 4 – Maximum Monthly Debt Including Mortgage Payment

 (36%, 41%, FHA & VA)

a) Total Monthly Pretax Income From Step 1……………………$_______________________

b) Multiply By .36 (FHA & VA Mortgages .41)……………………$_______________________

Maximum Monthly Allowable Debt Including Mortgage …………$_______________________

The total monthly mortgage payment should equal no more then 28% pretax income, 29% for FHA mortgages.

Total allowable monthly debt should equal no more then 36% pretax income, 41% for FHA and VA mortgages.

primary and second homes and refinancings. Investor loans continue to be exempt.

• Lenders must give good faith estimates of mortgage loan costs within 3 business days

after the consumer applies for a loan (early disclosure). The lender may not collect any

fees before the disclosure is provided, except for a reasonable fee for obtaining a credit

report.

• The closing may not take place until expiration of a 7 day waiting period after the

consumer receives the early disclosure.

• Consumers may shorten or waive the 3‐day and/or 7‐day waiting periods for a “bona

fide

In the final rule’s preamble, the Fed stated that it “believes waivers should not be used

routinely to expedite consummation for reasons of convenience.” The Fed decided not

to insulate lenders from liability even where a consumer modifies or waives the waiting

periods.

• If the annual percentage rate (APR) changes by more than 0.125 percent, the lender

must provide a corrected disclosure to the borrower and wait an additional 3 business

days before closing the loan. The APR includes not only the interest rate on the loan but

certain other costs related to settlement, so it will be important for any fees that affect

the APR to be as accurate as possible, as early as possible, to minimize the need for a

corrected TILA disclosure.

July 25, 2009

LOCAL REALTORâ ACHIEVES NATIONAL RECOGNITION

Rye, NY Resident Christopher Pagli with Legends Realty Group has been awarded the Accredited Buyer’s Representation (ABRâ) designation by the Real Estate Buyer’s Agent Council. (REBAC) of the NATIONAL ASSOCIATION OF REALTORSâ (NAR).

Christopher joins more than 30,000 real estate professionals in North America who have earned the ABRâ designation. All were required to successfully complete a comprehensive course in buyer representation and an elective course focusing on a buyer representation specialty, both in addition to submitting documentation verifying professional experience.

REBAC, founded in 1988, is the world's largest association of real estate professionals focusing specifically on representing the real estate buyer. There are more than 40,000 active members of the organization world-wide.  THE NATIONAL ASSOCIATION OF REALTORSâ, "The Voice for Real Estate," is the world's largest professional association, representing over 1,000,000 members involved in all aspects of the real estate industry.

You may contact the Real Estate Buyer’s Agent Council by telephone, (800) 648-6224, by e-mail, [rebac@realtors.org], or by visiting the REBAC website, [www.REBAC.net].

Property Tax Info Is a Few Clicks Away


The Lincoln Institute of Land Policy has put its property tax database ( http://www.lincolninst.edu/subcenters/significant-features-property-tax/).  The database is a comprehensive source of information about finance in every state and many municipalities.

Users can manipulate the database to compare property tax laws, rates, and assessment rules, and to identify property tax relief programs.

The institute, which is associated with The George Washington University in Washington, D.C., plans to shortly add a database of property values across the United States.

• Setting a new cap of $15,000.

• Extending the tax break into mid-2010.

• Making the benefit available to all home buyers, not just first-timers.

• Offering a separate tax credit to $3,000 for borrowers who refinance.
  
  
  Please stay tuned as I will keep you informed of any extensions or changes.

1. Mint.com 

This secure financial management tool pulls data from your checking accounts, savings accounts, credit cards, mortgages, and other loans to help you track expenses.

2. Zenbe.com 

Have multiple e-mail addresses? View all your mail in one inbox, and check in with Facebook and Twitter from the same screen.

3. GetDropBox.com 

Back up your important documents and e-mail messages. This tool syncs with your computer to save documents and allows you to access them via the Web from any computer.

4. Everyscape.com

This alternative to Google Earth lets you view three-dimensional images of streets and cities at eye level.

5. Inhabitat.com 

For home owners who want to go green, this eco-friendly design blog provides tips and inspiration.

6. Yelp.com 

If buyers are new to the area, send them here. Neighbors review local restaurants, spas, doctors, plumbers, and more.

7. Billshrink.com

Discover hidden fees in your credit card accounts and cell phone bills, and get recommedantions for lower-cost alternatives.

8. GasBuddy.com 

Do some comparison shopping before you fill up. Get a listing of what the gas stations in your area are charging per gallon.

9. FotoFlexer.com

Touch up your photographs, create effects, and adjust lighting to create high-quality images worthy for marketing materials.

10. DesignSpongeOnline.com 

Do-it-yourselfers on a budget will love the easy home decorating projects and gift ideas.

This Tastefully Updated Unit Is Centrally Located To All Of The Wonderful Amenities The New White Plains Has To Offer. Enter To A Spacious Foyer and Updated Powder Room, Open Kitchen W/ Door To The Washer Dryer, Dining Area/Living Room, Pergo Floors Throughout The Main Living Area And Second Bedroom, A Generous Master BR, And An Updated Full Bath Complete With A Jetted Tub! Other Amenities Include A Balcony Overlooking A Park, Doorman, Deeded Garage Parking (Buyer Can Rent Second Spot For $150/Month), Video Phone Entry, And Verizon FIOS.

2) Pricing Too High From The Start

First impressions are crucial when selling your home. It has been proven that the first two weeks on the market are the most important.  The market will talk to you if the home is overpriced by no offers, publi, and agent feedback.  Open Houses are a great way to validate your asking price.

If your home enters the market overpriced, many buyers will overlook it from the beginning because it will be out of their range. By the time you reduce the price to fair market value, many potential buyers will have already found something else. Other buyers may initially be interested in your new low price, but they'll also see that your home has been sitting on the market for some time, which could lead them to believe there is something wrong with the home. Think about what it will cost to carry the home until it sells, is it worth it to take a little less then hold onto it longer?

3) Avoiding The Proper Research

 Price your home based on a CMA (Comparative Market Analysis) this is a report prepared by a real estate professional that looks at recent sales of homes in your area that are similar to yours. For a fee, you can also get an estimate of your home's value with a professional home appraisal.  Keep in mind the same data that an appraiser or agent will use to determine value is pretty much the same data a prospective buyer will use when determining an offer amount.  What this means is we all have the access to similar data so if the price is too high many will wonder how that price was determined.

Welcome To The Perfect Starter Home On A Tree Lined Street! Enter To A Bright And Airy Sun Porch, A Living Room W/ Fireplace, Formal Dining Room,Kitchen, And Door To The Patio. The Second Level Hosts Three Bedrooms, A New Full Bath, And Attic Storage. The Basement Is Full And Unfinished Complete With A Door To The Garage, Laundry Hook Ups, And Storage. The Exterior Consists Of A One Car Garage W/Terrace Above, A Lovely Patio, And A Tiered Backyard. Commuters Will Love The Short Walk To All!  Please Note The Home Needs TLC.

3) The improvements may never be the subject of a Certificate Of Occupancy without the expansion of septic fields which may or may not be able to be improved or expanded upon.  For example if you want to add a 4th bedroom to a 3 bedroom home you may have to increase the septic tank size, there are cases where homes may already be approved. 

4) The property has been under-assessed baed upon its actual improvements and upon compliance with all of the rules with respect to obtaining Certificate of Occupancy, therefore there is likely to be a substantial increase in property taxes.

Deepening recessionary conditions in the autumn months of 2008 markedly reduced real
estate activity in the Westchester region. Plunging equity markets, rising unemployment,
weak corporate earnings reports, and pre- and post-election jitters about economic policy
and the unknown effects of the various stimulus and bailout plans, all combined to
discourage prospective homebuyers from entering the real estate market then.

The result
of the reduced marketing and showing activity at the end of 2008 was that far fewer
closings were posted in the first quarter of 2009.
Realtor firms participating in the Westchester-Putnam Multiple Listing Service reported
only 850 closed transactions in Westchester in the first quarter of 2009, a decrease of
37% from the first quarter of 2008. Westchester’s single family house market was most
affected with a 41% decrease. Putnam County closings were down by 31% from last
year.

The first quarter normally posts the lowest closed sales volume of the year since it follows
upon reduced sales activity during the holiday season and winter months. However,
when the data are adjusted for such seasonality1, the first quarter 2009 rate of closings
was down 31% from the fourth quarter of 2008. The 850 Westchester closings were
equivalent to an annual rate of only 4,230 sales, the lowest pace recorded by the Multiple
Listing Service since the 1985-1990 period.

Prices decreased too. The first quarter median sale price2 of a single family house in
Westchester was $532,000, a decrease of $90,500 or nearly 15% from last year. That
price level was last seen in 2003. The Putnam County median of $411,250 was 20%
lower than last year’s. The Westchester decrease, however, was not all a case of acrossthe-
board price depreciation. Rather, much of it reflected a severe contraction in the
volume of high-end sales. Houses selling for $1 million or more accounted for only 13%
of all sales in the first quarter whereas prior quarters have posted 20% or more. As a
result of this change in the contents of the real estate market basket, the mean2 sale price
of a Westchester house fell to $695,176, a very large 26% decrease from last year.
The condominium and cooperative sectors fared better. The median sale price of a
Westchester condominium was $352,000, a decrease of 7% or $28,000 from last year.
The median sale price of a Westchester cooperative unit actually increased by 2%, to
$179,500.

The inventory of MLS-listed Westchester properties stood at 6,324 units at the end of the
first quarter, an increase of 7% since last year. Putnam County inventory decreased by
14%. The 2009 Westchester inventory was actually less than that of the first quarter of
2007, once again illustrating the volatility of this local market indicator in terms of the
different forces that affect it. In 2007 the inventory was “high” because sellers were
attracted to list by the still-favorable market conditions then. In 2009 the inventory could
also be regarded as “high”, but for the opposite reason. At the same time, the 2009
inventory could also be regarded as exceptionally low, considering the 37% decrease in
sales volume. The wild card that defeats ordinary supply and demand analysis in

Westchester continues to be the ability of potential sellers to time their listing activity to
market conditions. As of March 30, 2009, they were still largely withdrawn from the
market.

It appears from the dismal first quarter results that the Westchester real estate market
was particularly hard hit by the chaos that occurred in the equity markets during the
autumn of 2008. The Dow Jones index fell by 25% from late September to mid October,
followed by a similar large decline in the first half of November. Higher-income
households heavily vested in stocks watched their portfolios plunge in value, thus putting
a chill on any thoughts of homebuying. Increasing unemployment in the financial services
industries also put a damper on the real estate market.

Our region’s close dependence on the banking and financial sectors – which brought the
real estate recession home to us with special severity and speed – may also be the factor
that rejuvenates the local market as conditions improve. It appears that the “bail out”
mechanisms of the Obama administration and Congress have served to stabilize the
banking sector, and the stock markets appear to have stabilized as well.
The administration and Congress have also enacted legislation to mitigate the marketcorroding
effects of foreclosures (Making Home Affordable Program). .

Westchester does
not have a severe local problem with foreclosures but will nevertheless benefit if
nationally some measure of control is achieved. Add to this the resumption of mortgage
lending by community banks, mortgage interest rates that are still very low, and
inducements to buy such as the $8,000 first-time homebuyers credit, and it can be argued
that a framework of conditions and policies is in place to take advantage of any
confidence-building turnarounds in the general economy that may occur such as lower
unemployment and higher corporate earnings.
# # #

The Westchester-Putnam Multiple Listing Service, Inc. (WPMLS) is a subsidiary of the
Westchester County Board of Realtors, Inc. and the Putnam County Association of
Realtors, Inc. WPMLS serves nearly 900 real estate offices having listings in Bronx,
Westchester, Putnam and Dutchess Counties. All data tables refer to Westchester
County sales unless expressly noted otherwise. The reported transactions do not include
all real estate sales in the area or all sales assisted by the participating offices but they
are fairly reflective of general market conditions. WPMLS does not provide data on subcounty
geographic areas. Persons desiring sub-county data are invited to contact
participating real estate offices in the desired areas. Any text or data from this report may
be reprinted, but not altered, with attribution to Westchester-Putnam Multiple Listing
Service, Inc. as the source.

1 The seasonally adjusted rate is an annualized rate for a given quarter. It represents what the total sales volume
would be for the whole year based on the quarter’s customary share of total sales. For example, if a quarter
customarily accounts for 20% of annual sales, the seasonally adjusted rate would be five times the actual number of
sales reported for that quarter. This allows the four quarters to be compared to each other according to their
equivalent annual rates.

2 The median sale price is the mid-point of all reported sales, i.e., half of the sales were for more than the median price
and half were for less. The median is not affected by unusually low or high sale prices. The mean sale price is the
arithmetic average, i.e., the sum of all sales prices divided by the number of sales. The mean does reflect the influence
of sales at unusually low or high prices.

1. Sin of the Hidden Trade-Off: If a product claims to be green in one sense, but ignores other significant impacts, the marketers sin. According to TerraChoice: "Paper, for example, is not necessarily environmentally-preferable just because it comes from a sustainably-harvested forest. Other important environmental issues in the paper-making process, including energy, greenhouse gas emissions, and water and air pollution, may be equally or more significant."

2. Sin of No Proof: If you can't prove it with reputable third-party verification, you can't claim it, according to TerraChoice: "Common examples are facial or toilet tissue products that claim various percentages of post-consumer recycled content without providing any evidence."

3. Sin of Vagueness: Terms such as "all-natural," "environmentally friendly" and other vague or unregulated descriptors can mislead consumers. TerraChoice points out: "Arsenic, uranium, mercury, and formaldehyde are all naturally occurring, and poisonous. 'All natural' isn't necessarily 'green'."

4. The (new) Sin of Worshiping False Labels: Often, a product has an official-looking seal, but the seal is meaningless because it is dreamed up by the product marketers themselves, without any application of third-party standards.

5. Sin of Irrelevance: If a claim is true, but doesn't distinguish the product in any meaningful way, marketers have sinned. According to TerraChoice: "'CFC-free' is a common example, since it is a frequent claim despite the fact that CFCs (that's chlorofluorocarbons -- the chemical that depletes the ozone layer) are banned by law."

6. Sin of the Lesser of Two Evils: Even if a green marketing claim is true -- the cigarette is organic, or the SUV has a hybrid engine -- it fails this TerraChoice test if the claim fails to recognize the overall harm caused by the product. The SUV may get better mileage than others in its class, but still achieve dismal fuel economy when compared to other vehicles; the cigarette, however organic, still causes lung cancer.

7. Sin of Fibbing: Simple. It's a lie. Some companies will go as far as claiming to be certified organic or Energy Star-certified, but cannot back up the certification.

1. Be on time. Before you worry about cleaning up what happened yesterday, get right with today and focus on your current bill-paying performance. Pay on time, and pay more than the required minimum payment each month on outstanding credit balances.
   
   
2. Shrink your credit ratio. The credit-scoring process looks at the ratio of your debt to the total amount of available credit you have, so add up your credit limits to see where you stand. Your long-term goal is to get rid of all your debt, but a good, short-term target is to shrink your ratio to less than 50 percent. Then 40, then 30, and so on.
   
   
3. Pay off a card, but don't close it. Because of the aforementioned credit ratios, reducing your available credit hurts your score. If you have a $3,000 balance on one card with a $5,000 maximum and no balance on a card with a $10,000 maximum, closing the unused card suddenly makes your credit ratio skyrocket from a benign 20 percent to a troubling 60 percent. Resist the urge to close an account when you've paid it off; lock the card in a drawer instead.
   
   
4. Get current on any outstanding debts. Got collection agencies on your trail? Pay off your late accounts, but remember that paying off a delinquent account will not erase it from your history. You simply have to wait; the further the delinquency recedes into the past, the better off you'll be. If you have a good explanation for falling behind, a lender may be sympathetic if you've paid off the debt.
   
   
5. Take a magnifying glass to your credit report. Credit reports often contain score-dinging errors. Check yours via www.annualcreditreport.com, and look for obvious mistakes like erroneous balances or accounts you don't recognize (which can be a sign of identity theft). Make sure lenders have reported your credit limits accurately, because they affect your credit ratio.
   
   
6. Restrain yourself with new cards. Don't open up new accounts to increase your available credit. This strategy doesn't necessarily boost your score and can actually hurt it, according to MyFICO.com. If you'd like to have a new card, apply for one, but don't open multiple accounts at the same time. This looks like risky behavior to a lender.
   
   
7. Allow some time to pass. Following these tips will improve your credit score, but give them time to work their magic.

Here's a general timetable:

• Corrected errors on your credit report should boost your score immediately;
• Paying down balances takes a little longer to work (depending on how much you pay off and how often your lender reports to credit bureaus), so you may see results in a few weeks or a few months;
• Paying off delinquent accounts gives you some leverage with lenders, but improvement in your actual credit score will be slow, so be patient.

If You Are Looking For True Value, You've Found It! Enter To An Expansive And Open Floor Plan. The First Floor Hosts An Enormous Living Room W/ Fireplace, Large Dining Room, Den, Sun Porch And Large Eat-In-Kitchen. Step Up To Four Generous Bedrooms, A Renovated Hall Bath, Master Bath W/ Jacuzzi Tub And His/Her Vanity, And Attic Storage! The Lower Level Consists Of A Large Bonus Room, Half Bath, Laundry, Door To The Two Car Garage, And A Partially Finished Basement With Tons Of Storage.

The Energy Efficiency and Conservation Block Grant program will fund new and existing programs in states to promote home energy audits, weatherization, energy efficiency upgrades, replacement of outdated appliances and other similar initiatives. The Department of Energy had previously estimated that the average qualifying home could benefit from $6,500 in improvements. Each program differs by state and city, so look to your local agencies or energy.gov/recovery for details. While home improvement initiatives are likely to help individuals most directly, the grants cover a broad array of potential initiatives:

"The funding will support energy audits and energy efficiency retrofits in residential and commercial buildings, the development and implementation of advanced building codes and inspections, and the creation of financial incentive programs for energy efficiency improvements," according to the Department of Energy. "Other activities eligible for use of grant funds include transportation programs that conserve energy, projects to reduce and capture methane and other greenhouse gas emissions from landfills, renewable energy installations on government buildings, energy efficient traffic signals and street lights, deployment of Combined Heat and Power and district heating and cooling systems, and others."

Don't wait for the money to find you.

The Closing usually takes place at the office of the Attorney representing the Bank but is not set in stone.  I've had closings in my office, you will know well in advance where it will be held.  The parties in attendance are the Buyer, Seller, Real Estate Agents, Title Closer, Bank Attorney, and the Attorneys for Buyer and Seller.  The Length of the Closing will vary based on the terms of the deal.  An all Cash deal can close in 45 minutes to an hour because there is no Bank involved only a Title Closer.  A deal with a Mortgage can take 2-3 hours and sometimes even less.  Again every deal is unique so these are estimated figures, but good ones.  Once all the Loan documents are signed the Bank Representative will complete a HUD-1 Statement or Settlement Statement and then fax it to the Bank for approval.  The Bank wants to see how all the monies have been distributed to make sure everything is the way it should be.  During this time the Title closer is getting together all the documents needed to deliver the Deed and wrapping up their end.  Once everything is approved and finalized You will get the keys to your new home!

Please Note:  The Attorney representing both parties will fully explain every detail to their Client throughout the Closing.  This post is just a summary of events and pertains to Westchester County, New York

 

Since the occupants do not own the unit they do not pay property taxes like you would in a condo or house.  You pay a monthly maintenence fee wchich includes your pro-rata share of the buildings property taxes, and care for the grounds, etc.  If in NY you will qualify for the basic STAR reduction but will have to inquire with your particular Coop to see how they handle it.  There are additional fees that vary from parking, assessments, flip tax, storage, etc.   Again each building is different and you will have to inquire about any additional fees.  There is a percentage of your maintenece that is tax deductable, usually 45%-55%, but it can vary.  There is always a minimum down payment requirement which can range from 10%-50% down, depending on the Coop.  Nowadays alot of Coops are requiring 20% down to protect themselves and make sure only the qualified apply.  Even the banks are requiring this so times have changed a bit.  On occassion you will find a "Sponsor Unit" available.  This is a unit that is on the market by the sponsor for the first time.  These are highly sought after because they usually don't require a board interview.  This is good for the first time only, the next time it goes on the market a board interview will be required.  Keep in mind just because at first you don't need an interview the board usually still looks at the package.

When purchasing a coop part of the process is a board interview.  Many people get scared and worry about what it will be like.  Once you have an accepted offer on a unit you will receive a board package to fill out.  This includes a standard application, request for financial information (bank statements, W-2s from previous and current years, pay stubs, etc.)  Here are a few major things the board will look at...1) Amount of down payment, where it came from, and how much you have in reserve after making it.  Most Coops want to see a few months reserves at least.  2) Credit scores, do you have any judgments against you, how much debt you have.  They look at your "Front End Ratio" which is how much debt you'll have with just housing payments and "Back End Ratio" housing debt along with  any other existing debt you have; credit cards, loans, etc (student loans sometimes get deferred, you'll have to inquire).  They will have a debt-to-income ratio requirement which can vary.  3) Current Income is important as well, they want to see that you make enough and aren't spending everything you have to pay your bills.  Having alot of cash in the bank doesn't impress them, that can be spent quickly.  You will also get a copy of the by-laws (house rules) and the offering plan.  The offering plan tells how many units are in the building, what the exisiting mortgage is on the building, how much the building has in reserves, etc.  You will have a chance to review these with your attorney to make sure you are buying into a financially sound building.

The application can be a bit intrusive but the Coop does this to make sure that they don't take on any financial liabilities to the building.  They will only hurt the corporation.  Once the package is complete it can be submitted for the managment review and once they approve it, it's then passed on to the board members.  Once the board reviews you will be contacted to come in for an informal interview.  They might ask questions regarding your motivation for buying in the building, questions about your finances, or just general questions to get to know you further.  They will have a pretty good sense of who you are by your package already. 

My advice to you...stay calm, don't over answer their questions, be positive!  At times you will find out right away if you are approved and others you will be notified the next day, or so by the management company.  The approval needs to be in writing and sent to the attorneys on the deal to make it official. Once approved you can finalize everything with the bank and setup a closing.  I hope this answers some of your questions and I welcome any further inquiries.

• Orange: Adds comfort, warmth, and cheerfulness and too much can bring about feelings of cautiousness. Best for: Living rooms and family rooms

• Yellow: Brightens mood and promotes welcoming and joyful feelings; increases positive thinking. Best for: Poorly lit foyers and dark hallways; buttery shades of yellow for living rooms

• Green: Most restful color. Reduces nervous system activity and muscular tension, calms and relaxes, offers reminders of nature. Best for: Living rooms (light greens); accent for kitchens and dining rooms (midtones).

• Blue: Promotes feelings of calmness, security, tranquility, and cleanliness; lowers blood pressure, cools a room, and serves as an appetite suppressant. Best for: Bedrooms or any restful, peaceful area in a home.

• Purple: Boosts creativity, imagination, and meditation, but can have unpleasant subconscious responses. Many adults dislike purple walls, particularly lighter shades of purple that are perceived as more youthful. Best for: Children’s bedrooms and play areas.

This event helps support Rotary Philanthropic Programs.  The Mount Kisco Rotary Club is part of Rotary International a worldwide organization of business and professional leaders that provide humanitarian service.  They encourage high ethical standards in all vocations, and helps build goodwill and peace in the world.  The Mount Kisco Rotary Club includes a cross section of the business, professional, and civic leaders of the greater Mount Kisco area.

Feel free to contact me with any questions.

The tax bill is filled with important incentives that will keep the solar and wind power industries competitive, and that means they should continue to innovate, producing more power at ever more affordable prices. That's critical for the U.S., and the world, as we confront the challenge of global warming.

But what about homeowners and other regular taxpayers? There are several important provisions anyone can take advantage of:

$500 Home Tax Credits for Energy Efficiency

You can claim a home tax credit for energy efficiency improvements made in 2009 (but not for improvements made in 2008) if you installed new insulation, energy-efficient windows or an energy-efficient furnace, boiler or air conditioner.

A tax credit of up to $500 that expired in 2007 has been renewed for 2009. It covers up to 10% of the cost of a range of projects that meet certain specifications. Do $5,000 worth of qualifying work, and you not only get a $500 rebate, but also savings on energy bills for years to come.

Also note these important limits, which cap the amount of home tax credits you can claim for any particular project:

• Windows: $200
• Exterior doors, roofing or insulation: $500
• Most heating, ventilation and air-conditioning improvements: $300
• Furnaces or hot water heaters: $150

Remember, your overall tax credit is capped at $500, so if you install $5,000 worth of exterior doors and $2,000 worth of new windows, for a total of $7,000, you can still only claim $500 — even though 10% of all qualifying work equals $700. Also, the tax credit applies only to equipment, not labor.

Find more information about these home energy efficiency tax credits at the Alliance to Save Energy or Energy Star or Department of Energy Websites. Note that much of this information reflects the tax incentives in place in 2006 and 2007; for the most part, the 2009 tax credits are identical, but check updated criteria for which products qualify, for instance.

$2,000 Home Energy Tax Credits for Geothermal

The new tax breaks include a new incentive to install ground-source heat pumps, according to Ronnie Kweller, spokeswoman for the Alliance to Save Energy.

The old credits had been capped at $300 and were included under the overall energy efficiency improvement cap of $500. No longer. Now you can claim up to $2,000 of the cost of installing a geothermal heating and cooling system, and the cost is separated completely from other energy-efficiency improvements you might claim. Like the energy-efficient tax breaks, however, this incentives doesn't apply to work done in 2008.

Ground-source heat pumps are installed underground and use the constant 50-degree subsurface temperature to cool air or water in the summer, and heat it in the winter — both of which reduce the cost of heating or cooling year round.

$2,000 Home Energy Tax Credits for Solar Power

The bill extends for another eight years a tax credit that covers 30% of the cost of new photovoltaic solar power systems on homes.

The existing tax credit, which was capped at $2,000, would have expired at the end of 2008. Now, it's good through 2016 — and there's no longer dollar cap on the 30% rebate.

$500 Home Energy Tax Credits for Fuel Cells or Microturbines

The tax incentive that had covered 30% of the cost of fuel cell or microturbine systems in homes, which lapsed in 2008, has been restored for 2009 and through 2016. It covers up to $500 per 0.5 kw of capacity.

$7,500 Energy Tax Credits for Plug-in Hybrid Cars

The first 250,000 buyers of plug-in hybrid vehicles now qualify for a $7,500 tax rebate.

A similar tax credit for hybrid vehicles had been capped at $3,500.

Wildcard: State Energy Tax Credits

Keep your eyes out for new incentives from your state, since the bill also authorizes an $800 million government bond program that encourages states to create incentives for new and existing energy conservation and related programs. Some of that money is likely to be used toward state tax breaks and other incentives that will vary by location.

We developed Greenwala because too many other online and offline green communities are fragmented and disorganized, not to mention negative. We're excited about the opportunities to make the world a cleaner, sustainable place, and we're not alone. We thought there was an opportunity to create a network where people could share that enthusiasm.

We envisioned Greenwala as a social media and marketing company that provides the ultimate delivery mechanism to showcase green-based products, solutions and ideas for consumers and business owners.

Greenwala's flagship product is a social community made up of "greenwalas" -- people who share knowledge and help others live a greener lifestyle. Within this community, members can learn to be green, brag about being green and share their actions with their friends, family and community.

By uniting consumers and business owners interested in green with the companies and organizations that provide sustainable products and services, Greenwala is paving the "last mile" of sustainability as an easy-to-embrace shade of green. The "last mile" is a concept that refers to the widespread proliferation and adoption of sustainable technologies, products, services and practices already available to consumers.

Through direct interaction with consumers in its network, Greenwala is able to work with brand marketers to create online viral campaigns that span the last green mile.

We wanted to provide marketing solutions to organizations looking for avenues to broadcast their green messages to a targeted base of influencers within and beyond the Greenwala community.

Greenwala accomplishes this by:

• Getting people talking. Its word-of-mouth network of passionate people partners with brands to create meaningful connections.

• Giving members a reason to connect with brands.

Type of Mortgage:

EEM is one of many FHA programs that insure mortgage loans--and thus encourage lenders to make mortgage credit available to borrowers who would not otherwise qualify for conventional loans on affordable terms (such as first time homebuyers) and to residents of disadvantaged neighborhoods (where mortgages may be hard to get). Borrowers who obtain FHA's popular Section 203(b) Mortgage Insurance for One to Four Family Homes are eligible for approximately 97 percent financing, and are able to fold closing costs and the upfront mortgage insurance premium into the mortgage. The borrower must also pay an annual premium.

EEM can also be used with the FHA Section 203 (k) Rehabilitation program and generally follows that program's financing guidelines. For energy efficient housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD's Title I Home Improvement Loan program.

How to Get a EEM:

To apply for an FHA insured energy efficient mortgage, contact an FHA Approved Lender.

Eligible Customers:

All persons who meet the income requirements for FHA's standard Section 203(b) insurance and can make the monthly mortgage payments are eligible to apply. The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating system (HERS) or an energy consultant. Up to $200 of the cost of an energy inspection report may be included in the mortgage. Cooperative units are not eligible; individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.

EEM can also be used with FHA's Section 203(h) program for mortgages made to victims of presidentially declared disasters. The mortgage must comply with both Section 203(h) requirements, as well as those for EEM. However, the program is limited to one unit detached houses.

EEM can be used to make energy efficient improvements in one to four existing and new homes. The improvements can be included in a borrower's mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. The cost of the improvements that may be eligible for financing as part of the mortgage is either 5 percent of the property's value (not to exceed $8,000) or $4,000--whichever is greater.

Technical Guidance:

EEM is authorized under Section 513 of the Housing and Community Development Act of 1992. Program regulations are in Mortgage Credit Analysis for Mortgage Insurance on One-to-Four-Family Properties (HUD Handbook 4155.1), paragraph 2-20.

Smart investment: According to the National Association of Home Builders, the market demand for green homes is continuously rising. In fact, they say by 2010, 40-50 percent of new homes are expected to be green. New York State offers tax credits to builders and developers who create green buildings, which will further contribute to this upward trend. Talk to your buyer about the benefits of investing in a green home as the value will increase in the future.

Location-A green home should not disrupt wildlife and should be in a densely populated area close to public transportation.

Size- Generally, smaller homes are automatically greener.

Design - A green home should allow for plenty of natural light to enter the interior so as to reduce the need for electrical lights. Its design should keep it cool in the summer and warm in the winter.

Building materials - Look for homes with non-toxic building materials and furnishings.

Insulation - A non-toxic insulation will help prevent cool air leakage in the summer and warm air leakage in the winter, saving your buyer a significant amount of money in utility costs.

Windows and doors - The USGBC suggests looking for EnergyStar rated windows and doors. Also, make sure they are sealed tightly to prevent heat loss in the winter and heat gain in the summer.

Energy efficiency - EnergyStar rated lights, heating and cooling, and water systems.

Renewable energy - The home should be able to produce some of its own energy, such as the use of photovoltaic systems (solar panels).

Water efficiency - A green home has a water-conserving irrigation system and water-efficient kitchen and bathroom fixtures. Look for a rainwater collection and storage system.

Indoor environmental quality- There should be plenty of natural light and ventilation

Although in retrospect we now know that the U.S. economic recession officially
commenced in 2007, that fact was not readily evident in the Westchester and Putnam
County real estate market at the time. To be sure, the signals of trouble ahead were there
to be seen - the steadily decreasing seasonally adjusted sales rates each quarter - but the
performance of 2007 as a whole was not so bad as to be termed recessionary. Its 9,022
MLS-posted residential sales in Westchester were a scant 2% fewer than those posted in
2006.

That all changed as 2008 arrived. The first quarter Westchester sales were 31% below
2007's first quarter level. Seasonally adjusted1, the 2008 first quarter sales rate was 14%
lower than the prior fourth quarter 2007 rate. That steep fall-off continued for the next three
quarters. By year end, Realtors participating in the Westchester-Putnam Multiple Listing
Service had reported a total of 6,639 sales in all categories of residential real estate, a
decrease of 26% from 2007 levels. That was the lowest level of sales compiled by the MLS
since 1995. In Putnam County the year to year fall off was 20%.

Fourth quarter closings in Westchester were down by 27% on a year to year basis.
Putnam County closings were down by 15%. When adjusted for seasonality, the fourth
quarter Westchester rate was equivalent to 6,140 sales per year, a decrease of nearly 10%
from the prior quarter's rate. It is important to note that the fourth quarter closings resulted
from property marketing activity that took place largely during the summer months and do
not at all reflect the impact of the economic chaos that commenced in October of 2008. The
damage to the real estate market from that period won't be officially measurable until the
close of the first quarter of 2009 at the earliest.

Fourth quarter closings in Westchester were down by 27% on a year to year basis.

Putnam County closings were down by 15%. When adjusted for seasonality, the fourth
quarter Westchester rate was equivalent to 6,140 sales per year, a decrease of nearly 10%
from the prior quarter's rate. It is important to note that the fourth quarter closings resulted
from property marketing activity that took place largely during the summer months and do
not at all reflect the impact of the economic chaos that commenced in October of 2008. The
damage to the real estate market from that period won't be officially measurable until the
close of the first quarter of 2009 at the earliest.

Although sales volumes plunged, Westchester-Putnam sellers resisted price concessions
for much of the year. Over the entire year, the median sale price2 of a single family house
in Westchester decreased by only 5% from 2007, by $35,000 to a twelve-month average of
$650,000. Westchester condo and co-op medians decreased by only 1% and 3%
respectively.

Putnam County's single family median decreased by 7% to $373,000. Only

the multi-family (2-4 unit) sector endured a large price cut -down 15% to a median of
$463,750.

Mean sale prices decreased by roughly the same percentages, suggesting that downward
price movement, such as it was, was fairly evenly spread over all property types and price
ranges within them including houses selling for one million dollars or more. For the first
time since WPMLS began tracking million-dollar-plus sales in 2000, that sector lost some
market share, constituting 22.8% of Westchester house sales in 2008 in comparison to
25.4% in 2007 and 24.7% in 2006.

The pricing of fourth quarter closings was a different story, however, with median and mean
prices down by more substantial percentages than for the year as a whole. The

Westchester single family house median was $570,000, down 11% or $70,000 from the
fourth quarter of 2007. The year over year percentage decreases for condos and co-ops
were 7% and 3% respectively. Mean sale prices were down by even larger percentages,
indicating that there was proportionately more price cutting and less activity at the high end.

The proportion of million dollar sales in the fourth quarter of 2008 was only 15% in
comparison to 18% in the fourth quarter of 2007.

Westchester inventory posted with WPMLS stood at 5,392 units at December 31, 2008, an
increase of 14.5% or 383 units from 2007 year-end.

Putnam County inventory increased by
only 2.7% to 828 units in the same period. Fourth quarter inventory is typically the lowest
of the year, and as the clock strikes midnight for the new year, inventory technically falls
even more sharply as many prior-year listing agreements are dated to expire at that time.

Inventory thereafter steadily rebuilds itself as some listing agreements are renewed and
other new units come onto the market. There was nothing different about the 2008-2009
transition in that regard.

These reports have repeatedly advised that Westchester real estate inventory often
confounds the conventional wisdom of supply and demand, sometimes increasing when
sales activity increases, and sometimes decreasing when the market is slow. Derivative
measures such as "months of inventory" are of only limited use for gauging our local
market's status though they may serve for very general comparisons with distant markets.

The just-closed fourth quarter inventory was certainly larger than last year's on account of
the slower pace of sales all year long, but not to an extreme. At least for the present there
is no glut of for-sale properties in Westchester and Putnam Counties, not even with the
increased levels of foreclosed lender-owned properties of the past two years. This report
contains both a short- and long-term chart of

Westchester end-of-quarter inventory levels
dating back to 1993. It is readily apparent from that record that the current inventory is far
below the levels of 8,000 or more units that characterized the early 1990s and which few
deemed excessive at the time.

The fourth quarter data, then, showed a sharper dip in sales rates than for the preceding
three quarters, the beginnings of substantive price reductions, and a moderate but by no
means alarming increase in the number of properties for sale. This position is much
stronger than that of many other parts of the nation where prices are off by 25% or more,
vacant properties abound, and sales activity has all but vanished.

Our region's real estate market is caught up in the same economic maelstrom that is raging
across the nation, bringing reduced access to credit, increased foreclosures and exposure
to unsound mortgage loans, and rising unemployment. A particular worry for Westchester
and Putnam is unemployment in the financial services sector resulting from the collapse of
some major investment houses in New York City, the full effect of which on real estate is
not yet known.

At the same time, however, the local economy is stronger than in most areas, the
unemployment rate is not as severe, and household income here is higher than average,
providing for better credit scores and qualification for mortgage loans. The supply of
housing for sale is generous but not excessive.

Westchester housing prices are in rare
retreat and are presenting a more affordable prospect to moderate income and first time
buyers. If the various economic stimulus programs under consideration by the new
administration in Washington are able to restore some economic confidence among the
general public, that achievement, together with historically low mortgage interest rates and
the factors cited above, could combine to move Westchester-Putnam real estate out of
recession as quickly as we entered it.
# # #

The Westchester-Putnam Multiple Listing Service, Inc. (WPMLS) is a subsidiary of the
Westchester County Board of Realtors, Inc. and the Putnam County Association of
Realtors, Inc. WPMLS serves nearly 1,000 real estate offices having listings in Bronx,
Westchester, Putnam and Dutchess Counties. All data tables refer to Westchester County
sales unless expressly noted otherwise. The reported transactions do not include all real
estate sales in the area or all sales assisted by the participating offices but they are fairly
reflective of general market conditions. WPMLS does not provide data on sub-county
geographic areas. Persons desiring sub-county data are invited to contact participating real
estate offices in the desired areas. Any text or data from this report may be reprinted, but
not altered, with attribution to Westchester-Putnam Multiple Listing Service, Inc. as the
source.
1 The seasonally adjusted rate is an annualized rate for a given quarter. It represents what the total sales volume would
be for the whole year based on the quarter's customary share of total sales. For example, if a quarter customarily
accounts for 20% of annual sales, the seasonally adjusted rate would be five times the actual number of sales reported
for that quarter. This allows the four quarters to be compared to each other according to their equivalent annual rates.
2 The

Also troubling was a steady increase in Westchester’s unemployment rate from one-half

2008 sales were down by 25% from last year’s. This was an improvement over the first

A particularly difficult factor to assess is the impact of foreclosures on the local sales

Westchester-Putnam real estate market is going to fare by year end!