September 2010

Dear Brian,

The housing outlook for the third quarter of 2010 continues to look tough.  Home sales continue to be at record lows with new inventory being added to the market. 

Choice houses - those that need little or no work and show very well - continue to sell quickly but most of the market is languishing with the # of days of inventory in our market continuing to climb.  After the end of the first-time home buyer tax credit, we've seen houses continue to come onto the market while the # of buyers has dropped precipitously. 

Coupled with historically low interest rates, its a prime time for buyers to enter the market.  National projections have continued to predict a continued decline in home prices over the next year - as much as 10%.  Keep in mind, however, that these are national #s.  While we have seen dramatic drops in the prices of housing in California and areas of the South, the Rochester market has proven to be relatively resilient.  We didn't experience the double-digit run ups in value in the early part of this decade and consequently, our housing market has remained relatively stable with regard to prices.

By the way, I've heard many rumors, including those from other agents promising a return of the home buyer tax credit.  They are just that - rumors.  No legislation is in front of Congress and none is being drafted to the best of my knowledge. 

What to Look For When Buying a Home

Here are some tips to help make sure you don't just settle for a home, but instead find the home that is perfect for you.  Once you've settled on a couple of neighborhoods where you would like to live, it's time to pick out a few homes to view and I'll set up a search on your behalf that will identify all of the possibilities to make your life easier.  Next, create a "wish list" of features you'd like in a home.  Your wish list can remind you which features are absolute requirements and which amenities you'd like to have if possible. When narrowing down your home search, consider:

Home purchase considerations
Home comparison chart
What to do when you've found the right home for you

Home purchase considerations

Most buyers' first consideration, after neighborhoods are chosen, is the number of bedrooms in a house. As you begin to view homes, keep the following purchase and resale considerations in mind:  Weigh your needs, budget and personal tastes in deciding whether you want a home that's a newly constructed, an older home or a home that requires some work-a 'fixer-upper.'

One-bedroom condos are more difficult to resell than two-bedroom condos. Two-bedroom/one-bath single houses generally have less appeal than houses with three or more bedrooms, and therefore less appreciation potential.

Homes with 'curb appeal,' (a well-maintained, attractive and charming view-from-the-street appearance) are the easiest to resell.

When resale is a possibility, don't buy the most expensive house on the street, or anything that is unusual or unique. The best investment potential is traditionally found in a less expensive, more moderately sized home on the street.

Home comparison chart
While house-hunting, it's a good idea to make notes about what you see because viewing several houses at a time can be confusing. Create a comparison chart before you begin looking at homes so you can keep track of your search, organize your thoughts and record your impressions.

When you've found the right home
Before you begin the home buying process, resolve to act promptly when you find the right house. I have plenty of stories to tell about couples who looked far and wide for their dream home, finally found it, and then revealed that "we promised my Dad we'd sleep on it, so we'll consider an offer tomorrow." Many times the story has a sad ending-someone else came in that evening with an offer that was accepted.

Resolve at this point that you will act decisively when you find the house that's clearly right for you. This is particularly important after a long search or if the house is newly listed and/or under-priced.

Links to Articles and Information of Interest to Homeowners and Future Home Buyers 

Tips for Getting Your Home Ready for the Fall

Living Greener in Smaller Spaces

Easy Ways to Make Your Home More Eco-Friendly

Value-Adding Home Improvement Projects

7 in 10 Americans are Optimistic about the Future of Household Finances 

Make Moving Day an Easier Day 

Keep Close Tabs on your Credit Score 

Shuffle Your Floor Plan to Give Old Spaces New Purpose

Refinancing a Mortgage Might Have its Drawbacks 

Refinancing to a shorter-term mortgage if you can afford the payment seems like an obvious smart-money move. You'll pay far less in interest, get rid of the monthly fixed expense earlier, and have freer cash flow in retirement. Plus there's the high that homeowners feel when they imagine making their last mortgage payment.

"It's just nice to think it's going to be done," said 33-year-old David Van Riper.

But there's a camp out there that believes locking into a shorter-term mortgage is unwise, especially when rates are so low on 30-year mortgages and economic uncertainty so high   >>  more 

Tips on Using an Agent

One of my clients knows how to safely remove a brain tumor from the base of her patient's neck, but she doesn't have a clue about real estate agent protocol. Nor does she understand why some listing agents have been extremely curt with her.

In her mind, she hasn't done anything wrong. She is only trying to find out information about a house for sale. But she could have avoided those rude responses by following some protocol.

It's not that difficult once you know a few simple rules. Here are protocols you can use while shopping for a home that will keep you out of hot water:

Understand Agents Work on Commission

• Very few real estate agents work on salary.
• Most real estate agents are paid commission. If an agent does not close a transaction, she does not get paid.
• Agents are not public servants and do not work for free. Do not ask an agent to work for you if you intend to cut the agent out of your deal.

Choose A Real Estate Agent

• Decide whether you want to work without representation: dealing directly with listing agents, or if you want to hire your own agent.  I'm biased here, but my feeling is you should never work directly with a listing agent (what we refer to as dual-agency).  You wouldn't walk into court and let the same attorney represent both you and the other side.  Pick an advocate who will work on your behalf and that means selecting a buyer's agent to represent you in both the search and negotiations. 
• If you decide to hire your own agent, interview agents to find an agent with whom you are comfortable.  I don't mind being interviewed.  I've been doing this for over 25 years.  80% of all agents are out of this business within three years. 
• If you are interviewing agents, let each agent know you are in the interview stage.
• Never, never, never interview two different agents from the same company. Trust me, don't do it.

Keep Appointments & Be On Time

• Be respectful, use common courtesy and don't expect an agent to drop what she is doing to run out to show you a home. You are probably not that agent's only prospect / client. And if you are, lord help you.
• Do not make an appointment with an agent and then forget to show up.
• If you are going to be late, call and let your agent know when you expect to arrive. 

Do Not Call The Listing Agent if You Are Working With a Buying Agent

• Listing agents work for the seller, not the buyer. If you hire the listing agent to represent you, that agent will now be working under dual agency.  Regardless of what the law allows, trust me again, you do not want to become involved in dual agency.  I have not, nor ever will, represent a client as a dual-agent.  You have my promise that you are my sole attention.
• If listing agents show you the property, the listing agent will expect to represent you.
• Listing agents do not want to do the buying agent's job. Let your buyer's agent do her job.

 Practice Open House Protocol  

• Ask your agent if it's considered proper for you to attend open houses alone. In some areas, it is frowned upon to go to open houses unescorted.
• Hand your agent's business card to the agent hosting the open house. Sometimes this agent will be the listing agent, but often it is an agent also looking for unrepresented buyers. Announcing you are represented protects you.
• Do not ask the open house host questions about the seller or the seller's motivation. Let your agent ask those questions for you.

Sign a Buyer's Broker Agreement with a Buying Agent

• Many agents will present you with a buyer's broker agreement. It creates a relationship between you and the agent, and explains the agent's duties to you and vice versa.
• Ask about the difference between an Exclusive and Non-Exclusive Buyer's Broker Agreement.
• If you're not ready to sign a buyer's broker, do not ask that agent to show you homes. Otherwise, procuring cause will pop up.
• Ask your agent if she will release you from the contract if you become dissatisfied. If she refuses, hire somebody else.  Myself, I don't work with buyer's broker agreements.  If I don't do my job, then you're free to work with someone else.  There's no reason for a contract to bind you to someone you don't want to work with. 

Always Ask For and Sign an Agency Agreement

• By law, agents are required to give buyers an Agency Disclosure.
• Signing an agency disclosure is your proof of receipt. It is solely a disclosure. It is not an agreement to agency. Read it.
• The best and most practiced type of agency is the single agency. This mean you are represented by your own agent who owes you a fiduciary responsibility.  I will present you with an agency agreement upon our first meeting.  If another agent doesn't offer you that courtesy (remember, it's required by law in NYS), should you be working with him or her? 

Make Your Expectations Known

• If you expect your agent to pick you up at your front door and drive you home after showing homes, tell her. Some will provide that service. If not, they will ask you to meet at the office.  For liability purposes, I generally advise my clients to follow me in their own vehicle.
• Let your agent know how you want her to communicate with you and how often. Do you want phone calls, e-mails, text messages, IM's or all of the above?
• Set realistic goals and a time frame to find your home. Ask your agent how you can help by supplying feedback.
• If you are displeased, say so.

Do Not Sign Forms You Do Not Understand

• Do not feel silly for asking your agent to explain a form to you. It is her job. Many forms are second nature to agents but not to you, so ask for explanations until you are satisfied you understand.
• Do not sign forms titled Consent To Represent More Than One Buyer. This is never in your best interest. Find another agent if this happens.
• Realize agents are not lawyers and cannot interpret law.

Be Ready To Buy

• If you aren't ready to buy, you don't need a real estate agent. You can go to open houses by yourself; call listing agents for showings -- but be honest, say you are "only shopping" -- ; look at homes online; but don't waste an agent's time if you aren't ready to act.
• If possible, hire a babysitter to care for children who are too young to stay out all morning or afternoon touring homes.
• Bring your checkbook. You may need it to write an offer because earnest money deposits are required.

A bit about Magellan

Magellan Realty & Relocation is an international realty, training, and relocation firm.  Magellan now offers investors the opportunity to purchase homes, businesses, and properties abroad.  We maintain offices in 65 countries throughout the world. 

Our offices are in downtown Rochester to better serve all members of the community.  Our local agents also maintain home offices in Scottsville, Webster, Penfield, and Pittsford to ensure that we provide complete coverage of areas east and west of the city and county. 

Magellan is presently the only firm in this area of upstate New York to be approved by Lending Tree and RealEstate.com as a preferred REALTOR.

Magellan is a 100% woman-owned company that believes in acting as a socially responsible role model for other businesses.

Consequently, Magellan sets aside a Community Service Fund equal to 1% of gross commission dollars, per office, to be spent locally meeting the needs of the homeless as well as other worthy causes. 

We don't just sell real estate.  We are active partners within the community we live in.

A bit about Brian Mount

For over 28 years, Brian has assisted others in the buying, selling, and management of real estate.  Max, the Great Pyrenees you see here, hasn't' been practicing quite as long.  He's more interested in protecting real estate than selling it!

Brian is an Associate Broker and a Seniors Real Estate Specialist (SRES) - a designation held by fewer than 1% of all REALTORS nationwide.

Brian is a registered Real Estate Instructor in the state of New York and has taught real estate licensing courses to both salespersons and brokers throughout the state.  Brian also teaches marketing, statistics, business law, and management theory at both the undergraduate and graduate levels. 

He has a B.S. and an M.A. from the University of Illinois at Urbana-Champaign, an MBA from Michigan State University's Executive MBA Program, and has undertaken Ph.D. studies in Urban and Regional Planning at the University of Illinois Urbana-Champaign. 

Collegiate teaching experience includes the University of Illinois at Urbana-Champaign, Medaille College, Bryant & Stratton College, and Walsh College.

Brian Mount

Broker Associate, SRES

Magellan Realty & Relocation

395 Garnsey Rd.

Pittsford, NY  14534

585.223.0596 (H)

585.503.8160 (C)

E-mail:  rares@rochester.rr.com

Web Site:  www.rares.org/profilesmagellan.htm 

August 2010

Dear Magellan Customer,

Housing statistics for our area were in the news recently as the Greater Rochester Association of Realtors reported a 43% increase in sales when compared to second quarter 2009, with a total of 3,512 homes sold.  The beginning of 2009, it should be noted, however, was one of the worst periods for home sales in recent history. 

In addition, the overall median sale price of $120,000 reflected a 2% percent increase compared to last year. The increase in purchases was a direct result of home buyers who still had time to take advantage of the $8,000 First-time Home Buyers Tax Credit and the $6,500 Tax Credit for current home owners who purchased a new or existing home. The tax credit expired on April 30, 2010.

How are things shaking out now?  Housing prices for homes $135,000 and under remain relatively stable though it's still a buyer's market overall.  The market for homes priced above $135,000 remains relatively soft with houses at $200,000 - $450,000 struggling for buyers.

So what might this mean for you, particularly if you have a home to sell and you're looking to upgrade?  Drop me a line and we'll discuss as each situation is bit different.

Best Advice for Selling Your Home 

Price it right.  Buyers have access to lots of data, and they'll know if your house is too expensive.  This is the single most important thing you can do.

Offer to pay some of the buyer's closing costs.

Maximize exposure. Saturate the Internet and all forms of social media with your listing.  We'll make sure that your house is shown widely.  Not only does it appear on the MLS, but on other sites like Realtor.com and unlike them, Magellan even places your listing on competitor's sites so everyone sees your house - everyone.

Use great photos, not good ones. Make sure your house makes a great first impression.  This isn't something you need to worry about.  I'll make sure that your house is shown online in the best possible light. 

Make it sing. Listing information must be complete and well-written.  Again, this is my job, but I work in conjunction with you to make sure that we present your home in the best possible light.

Curb appeal matters. Spend a little money on flowers, new plants and fresh paint.  I'll offer suggestions on what will bring the biggest return for the smallest investment.

Inside, your house should look fresh, so make sure the paint, carpeting, light fixtures and appliances are updated and clean.

De-clutter. Eliminate one-third to two-thirds of your stuff; hire a stager.  I'll be happy to help tell you what needs to go.  That rack of antlers on the wall?  Maybe enticing to some buyers but a big turnoff to others.  Into storage it goes.

Network. Sales come together because brains understand homes better than computers.  I work hard with my colleagues to make sure other agents know about your house.  Brokers opens and other means of promoting your house to the widest possible audience is what I do.  You can do the same with your colleagues at work to enhance the chances of your home selling.

Be patient. Statistics say that it takes 21 showings, not including open-house traffic, to sell a house.  When you price a house correctly, you'll have an offer before 10 showings.

Homearama 2010 

Homearama returns to Rochester for the 32nd consecutive year - this year with bands, wine tastings, and cooking demonstrations - and all for a nine day run, August 14 - 22nd.

This year there are 5 extraordinary homes showcased in the Watersong Community in Penfield.

Homes range in price from $389,000 to $500,000.  Watersong is located off Five Mile Line Road, north of Plank  Find out more about Homearama here.

I want to remind my clients that they can save $2 on the cost of the $9 admission just by showing their RARES ID card at the gate (good for as many admissions as you'd like).  And if you know you're going, you can purchase from RARES limited supply of tickets at just $5.50 each - online through the RARES web store until our supply of 40 is exhausted.  Purchase here - look in the "specials" category.

New Home Construction 

Did you know that Magellan is the area leader for expertise in representing buyers in new home construction? 

At today's prices, the money you spend on a new home needs to be spent wisely.  Magellan's expertise allows you to successfully negotiate and navigate the home building process - from searching for a builder and community in our proprietary New Home Explorer database to negotiating with the builder you choose.  And you will not only benefit from our expertise in purchase negotiations but you'll save countless headaches in navigating the building process when you let us represent you - all at no cost to you.  

Five Smart Reasons to Buy a Home Now

The economy is stabilizing. Home prices are holding. It's not just as good a time as ever to buy a house. It's one of the best times ever.

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.

2. More houses than ever are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.

3. Terrific houses are coming on the market. Foreclosures are finally starting to work their way through the system - and this is just the opportunity that owners of many desirable properties have been waiting for.

4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines once again. Now that appraisers have more flexibility to set values that reflect the current market, today's deals are more likely to close than just a few months back.

5. Plenty of mortgage programs available. Homes are more affordable than they have been for years and we're seeing a resurgence in loan programs from lenders who had previously tightened their belts as the mortgage credit markets loosen up.   

A bit about Magellan

Magellan Realty & Relocation is an international realty, training, and relocation firm.  Magellan now offers investors the opportunity to purchase homes, businesses, and properties abroad.  We maintain offices in 65 countries throughout the world. 

Our offices are in downtown Rochester to better serve all members of the community.  Our local agents also maintain home offices in Scottsville, Webster, Penfield, and Pittsford to ensure that we provide complete coverage of areas east and west of the city and county. 

Magellan is presently the only firm in this area of upstate New York to be approved by Lending Tree and RealEstate.com as a preferred REALTOR.

Magellan is a 100% woman-owned company that believes in acting as a socially responsible role model for other businesses.

Consequently, Magellan sets aside a Community Service Fund equal to 1% of gross commission dollars, per office, to be spent locally meeting the needs of the homeless as well as other worthy causes. 

We don't just sell real estate.  We are active partners within the community we live in.

A bit About Brian Mount

For over 28 years, Brian has assisted others in the buying, selling, and management of real estate.  Max, the Great Pyrenees you see here, hasn't' been practicing quite as long.  He's more interested in protecting real estate than selling it!

Brian is an Associate Broker and a Seniors Real Estate Specialist (SRES) - a designation held by fewer than 1% of all REALTORS nationwide.

Brian is a registered Real Estate Instructor in the state of New York and has taught real estate licensing courses to both salespersons and brokers throughout the state.  Brian also teaches marketing, statistics, business law, and management theory at both the undergraduate and graduate levels. 

He has a B.S. and an M.A. from the University of Illinois at Urbana-Champaign, an MBA from Michigan State University's Executive MBA Program, and has undertaken Ph.D. studies in Urban and Regional Planning at the University of Illinois Urbana-Champaign. 

Collegiate teaching experience includes the University of Illinois at Urbana-Champaign, Medaille College, Bryant & Stratton College, and Walsh College.

Brian Mount

Broker Associate, SRES

Magellan Realty & Relocation

395 Garnsey Rd.

Pittsford, NY  14534

585.223.0596 (H)

585.503.8160 (C)

E-mail:  rares@rochester.rr.com

Web Site:  www.rares.org/profilesmagellan.htm