Dylan Taft - Ulster County Area Consultant

Taft Street Realty has started a new blog series, Wordless Wednesdays. A picture is worth a thousand words, so every Wednesday we'll post a photo from the Hudson Valley Region. Other than a brief description, we'll let the images speak for themselves! Enjoy..

Hang in there! The Shawangunk Mountain Range, commonly referred to as, "the Gunks", are a world famous climbing destination. The vertigo-inducing cliffs offer 1,000's of climbing routes and over 5 linear miles of cliff face. The sharp angles and vertical overhangs provide challenges to even the most experienced of climbers.

For all things related to Ulster County, NY real estate, stay tuned to the Taft Street Realty Blog!

Photograph taken by Jesse Brown for Taft Street Realty

Homeowners, particularly those in New York State, have been struggling with exceedingly high property taxes. In the midst of a slow recovery, when home values still remain low, property taxes, seemingly immune to the dismal economic climate are high and even rising in some areas. In fact, according to the National Association of Home Builders, property taxes rose a whopping 20% from 2005-2009 (with '09 being the most recent data available). During that same time period, home values fell 31%. Homeowners are essentially paying more taxes for an item that has been steadily decreasing in value. Why the disparity? and what can you do about it? There are steps a homeowner can take to, at the very least, ensure that they are not over-paying their property taxes. This latest post on the Taft Street Realty blog explores how an old and outdated assessment of a home may be contributing to higher property taxes.

Property Taxes Based on Outdated Home Values

The answer lays in how taxes are calculated and collected by local governments. Municipal governments determine a property's taxes based on the value of the property. The problem is that local governments don't have the means to re-assess every home's value every year. So the government may be calculating taxes based on home values from years ago. It's no secret that home values are dropping, so there's a good chance that your property taxes reflect a time when the market was better and your home was worth more. In fact according to the Congressional Budget Office, property tax adjustments lag behind home price changes by approximately 3 years. As we all know with regards to the value of homes for sale in the Hudson Valley and elsewhere, a LOT can change in 3 years! Perhaps you suspect this may be the case with your property taxes. Odds are you're right, as the National Association of Home Builders calculates that more than 50% of homeowners are overpaying with regards to their property taxes!

Lower Assessed Value = Lower Taxes

What can you do about it? Well, there's no way to actually lower the rate itself, which is determined by the government. You CAN however have the assessed value of your home lowered, which would translate into a lower tax bill. Contact your local Tax Assessor / Collector and ask them your home's current assessed value. If you think it is incorrect, inquire with the Tax Collector on how to re-assess your home's property value. You will most likely have to file an appeal to have the assessment changed, but the time and effort may well be worth it if it results in a lower property tax bill. So if you think you're taxes are too high, see what your local government has on record regarding your home's value. You may find that having a more accurate or up to date assessment of your home can lead to lower property taxes down the line. For the most helpful blog for homeowners in the Hudson Valley, tune into Taft Street Realty!

Mortgage (Robo-Signing) Settlement Deal: The $26 Billion Drop in the Bucket?

Following the “robo-signing” scandal (in which thousands of foreclosure documents were signed by one person without being properly verified) 49 of 50 states have signed a sweeping settlement with 5 major lending institutions to make financial restitution for those who lost their homes due to robo-signing. President Obama called it a “landmark” deal. A whopping $26 billion is slated to be paid out to homeowners. A new task force, co-chaired by New York State Attorney General Eric Schneiderman has been formed to monitor future lending practices. It looks as though, finally, these big banks are being held accountable for their (prominent) role in the whole mess. Justice has been served, or has it?

So What Happened, and How Did Real Estate in NY Fare?

As the housing crisis grew, more and more Americans began falling behind on their mortgages. This happened for a number of reasons: some were victims of predatory lending; others took out mortgages on homes they knew they couldn’t afford. Regardless of the reason, the lending institutions that owned these mortgages suddenly found themselves with an influx of foreclosures or homes falling into foreclosure. In an effort to hurry these foreclosures along, the lenders effectively streamlined the process, sometimes allowing a single person to sign off on thousands of foreclosure documents without the proper verification. The result was an increase in foreclosures in an already struggling housing market, often with homes that the owners may have been able to keep had their situation been reviewed properly by their lender. Hence the term “Robo-Signing” where thousands and thousands of documents are rapidly signed, as if by a robot. New York State fared well compared to others, falling nowhere near the top 10 States affected by the foreclosure crisis. However, here in Ulster County, NY and around the state, we’ve had foreclosures, and even just one that could have been prevented is one too many.

A Look Behind the Curtain - Will the Settlement Help Home Owners?

The banks would certainly like you to think that justice has been served. So do our politicians who are touting the settlement as a victory for the little guy against the banks. And it certainly is a landmark settlement, the biggest since the settlement reached with Tobacco companies in 1998. However, a closer look at the details of the settlement reveals that “victory” may be too strong a word. The (approximately) $26 billion dollar payout awarded to homeowners will not be entirely in the form of currency. In fact, approximately $6 billion dollars is estimated to be in the form of a cash payment to home owners. The remaining $20 billion dollars will be made up by the banks adjusting the mortgages of homeowners, so that they would in effect owe less money on their home. The glaring question is what happens if you’ve already lost your home? Perhaps the neediest cases of all, those already foreclosed upon, can only rely on the $6 billion payout. Although unconfirmed, reports have been that the payouts will amount to approximately $2,000 dollars per household, which if you’ve already lost everything, isn’t much.

It's a Start - and New York State is Leading the Call for Change

Did the politicians really fight for us? The ones from New York did, and still continue to. NY Attorney General Eric Schneiderman will co-chair a task force meant to monitor and enforce proper lending practices. Also, although this settlement has only been reached with 5 financial institutions, the announcement was made that other lenders are not immune from future prosecution. Banks are powerful institutions, wielding influence in many ways, but this settlement will hopefully be the first step in ensuring that all mortgages are handled properly and fairly.

Helping the Average American? or Leaving Them Holding the Bag?

The answer may not be so black and white. At Taft Street Realty, we don't take a political side. We side with the average American, whether homeowner or renter, and what is best for them. Middle and lower class Americans are facing higher living costs of all sorts, whether it's gas prices, groceries, property taxes, or healthcare. Yet wages and salaries remain stagnant or are dropping. Struggling to manage these necessities are what drives folks to miss mortgage payments. And yet on TV we see banks being bailed out with taxpayer money, and even posting record profits. It's no wonder the average American feels like their needs take a back seat to those of the more powerful banks.

Taking a Positive Approach Moving Forward

However, it is a start and it brings the issue to the forefront and hopefully added scrutiny to lending practices going forward. If you happen to be looking for a NY home to buy, have no fear. The current local market is ideal for purchasing real estate, with interest rates at a record lows, and a surplus of very affordable homes on the market. A well-qualified NY home buyer will have many Ulster County homes for sale of great value to choose from!

Are Buyer's Agents Really Free to Home Buyers?

A question I’m commonly asked is are buyer's agents really free to home buyers? The services of a real estate agent, like any quality service, come with certain costs. In real estate, “quality service” is the name of the game, and the value of a great agent often exceeds any monetary fee. The trusted Ulster County real estate advisor is worth every penny, serving as a guide, aid, and resource of every kind. A good agent is a local expert and acts as your trusted real estate advisor. That being said, who is responsible for paying the agent representing the buyer’s side (known as the “Buyer‘s Agent” or “Buyer Broker”)? Is it the purchaser of the property, for whom the agent has been working to find a suitable home? Or is it the seller of the property, to whom willing and able buyers have been brought to purchase their property? Agent commissions, and who is required to pay them, can sometimes be confusing. Let’s explore the general make-up of who pays the buyer’s agent and why.

Buyer’s Agents – Bringing Qualified, Willing, & Able Buyers to the Table

Commissions are paid at the closing and come from the proceeds of the sale. In a traditional sale, it is generally accepted that the seller pays the buyer brokerage for bringing a qualified, ready, and willing buyer to the table. (In a short sale, where there are no proceeds for the seller, the bank hopefully picks up the tab - but that’s a completely different topic and we can address that another time). In some cases, since commissions are always negotiable, the commissions offered by the seller of the home may not cover the full fee that the buyer’s agent charges. So then what happens?

Most of the time the, buyer’s agent will simply accept what’s offered and be happy with that. However in today’s ever challenging real estate market, many hard working agents are not accepting anything less than their full fee. One might ask what a “full fee” even is today, and as we mentioned, it depends on the individual agent. Historically speaking, we have seen commissions ranging from as low as 1% all the way up to as high as 7, 8, 9 or even 10% depending on what type sale it is, residential, commercial, land, etc.

Both Buyers & Sellers Should Know What They’re Being Charged For

Having such a wide range, it is important for both sellers and buyers looking for Ulster County, NY real estate to know exactly what they are being charged for. Buyers and sellers should always do their research and have the right to negotiate the best and most fair rate for them personally. Be aware that not all agents and brokerages are created equal. It will become quite obvious that there are brand new agents and highly seasoned real estate professionals who have been in the business for a long time. What it all boils down to is value. The absence of value is what creates concern about price. Once a buyer questions value, they will wonder if they are over-paying or not. Most buyers who have doubts simply don’t buy. So it’s important for agents working with buyers to prove value to them and explain how the process works and who pays who. Managing the expectations of buyers (and sellers) is very important in real estate.

So who pays commissions? The Answer Isn't Always Clear...

In terms of real estate, when discussing real estate commissions and who pays, the answer isn’t always so clear. If the seller does not offer or is not willing to pay the buyer agent’s full fee then the buyer may be asked to make up the difference. As we said in the beginning, many buyer agents will simply accept what’s being offered to them. But buyers should be aware that if their agent is willing to flex on their hard earned fee, they may also be willing to flex when it comes to negotiating for that buyer. That’s why it is important for buyers and sellers to know what they are paying for. As the old saying goes, “you get what you pay for…” Personally, as long as I am comfortable with and trust the person I’m working with, and see value in the services they provide, I’d be willing to pay their fee if need be.

To learn more about trust and other real estate advice, take some time to read more about the most reviewed real estate agent in the Hudson Valley by visiting the most informative real estate blog in Ulster County NY.

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Taft Street Realty - Tech-Savvy Agent & Ulster County, NY Area Expert

What makes a great Ulster County, NY real estate brokerage? That answer has changed over time just as buying & selling real estate has changed, but in short, a tech-savvy local area real estate expert is a start. Certain fundamentals remain constant however. Knowing the area is vitally important. Not simply knowing how to get around, but really understanding the towns and communities that you serve. That kind of knowledge is developed over time and shaped by experience. Conversely, technology has altered the business of real estate forever, and it continues to evolve and change every day. These days, a brokerage must be up to date on the latest technology, and how it can help buyers and sellers. The successful companies are ones that embrace new technology and use it to their advantage! Rarer still, are brokerages that have capable agents who can handle both pounding the pavement and using the latest and greatest technology available, all at the same time. Taft Street Realty is exactly that!

Local Knowledge - Taft Street Lives to Be Your Hudson Valley Resource!

Taft Street Realty in the Hudson Valley region combines both old-school values and new-school technology to give clients that perfect balance. We’re lifelong residents of Ulster County, NY, and I've personally traveled to every corner of this beautiful and diverse part of the Catskills. Over the years you begin to learn how each town in Ulster County, NY has its own unique personality. That knowledge (or instinct, we like to say) is used to help clients find a home that’s just right for them. Have a question about a local restaurant or business in the Hudson Valley? Chances are we know about it and can offer some insight. The Hudson Valley region is full of hidden gems tucked away down rarely traveled roads; that’s part of its appeal. Local experts are needed to seek out and find these Ulster County, NY homes for sale, so consider us your local experts! It takes a lifetime to learn these hills and mountains and the communities that reside around them, and at Taft Street Realty we've put in that time so clients don’t have to!

Embracing Technology – Taft Street Adapts to an Ever-Changing Real Estate Market

New technology has changed things, not just in real estate, but in the way we do everything in our lives. How we shop, pay bills, even how we earn our livings has changed. Furthermore, technology has changed how we communicate and has an ever-growing influence on our lifestyles. Now, consider the process buying or selling a home in Ulster County, NY. This transaction is often the biggest investment or sale that most people will make in their lifetimes, and it too has drastically changed.

Certainly, buying a home in the Hudson Valley has changed; with studies showing that most buyers begin their search online. Buyers these days will do months of their own research before even contacting an agent. Gone are the days when buyers would walk into an office and inquire about the local market. There are very few, if any, walk-ins these days and almost everything is done online, including all records of MLS listings. With new mapping, and GPS technology, a buyer can learn everything they need to know about a home for sale in Ulster County, NY right up to getting a bird's eye view of the entire area. Buyers must remember though that they always have to view properties in person, and this is where having the right agent is critical.

And if you're selling your home in Ulster County, NY - you'll want it to be easy to find on the Internet; not to mention amazing to look at, with good pictures and professional presentation. It used to be about print ads, but no more. Sure, we still work with have proven to be influential publications, but these days people read less and less print ads and go straight to the source online. Marketing a Hudson Valley home for sale online is more than posting a little Craigslist ad. Now there are major websites such as Zillow, or Trulia - which serve as virtual hubs that streamline buyers to whatever listings these sites deem worthy. If a home that's for sale is not prominent on all of these sites, then it's missing an enormous number of potential buyers. From marketing on down to the cameras agents use to photograph a listing, technology has changed the way we sell homes. If a brokerage doesn't have this understanding and capability, they will not survive in today's market.

Using Technology to Save Time - But Also to Stay in Touch

New technology has also brought with it an information overload, especially with regards to real estate. How much time is spent clicking through endless listings, and when you finally inquire about one that has sparked your interest, it's either sold, gone, or not worth looking into? Save the most valuable thing of all, time, by working with someone that can find you the listings worth checking out. Finally, a crucial part of real estate has been drastically changed by technology and that is communication. At Taft Street Realty we don't try and call you back the next day, we try and call you back the next minute! Remind us again what office hours are? We live & breathe real estate and have the systems in place to be reachable at almost any time. What about all of those essential documents that have to be sent to this attorney or signed by that mortgage broker? Taft Street Realty's got the fastest and best and safest way to store and transmit important documents. We embrace new technology, master it, and constantly prepare for the next big thing! Systems are the driving force behind Taft Street and keep the business running like a well-oiled machine. At Taft Street Realty we understand that being consistent is extremely important. It doesn't matter whether you are buying a mobile home or a million dollar estate, all operations are the same and every client is treated equally. And technology has helped us keep it that way!

Sometimes it seems like brokerages have agents who may know the country roads, but can't get around a desktop computer. If not, you'll find a whiz that can e-mail you 1,000 listings a day, but has never left the desk to see what's out there. At Taft Street Realty we provide that refreshing and rare mix of both, to help buyers and sellers in Ulster County, NY achieve their goals! So when the time is right, reach out to us as your tech-savvy Ulster County Real Estate Expert!!