Jennifer Mallory Nyack NY Real Estate Broker Associate

HOME SELLING SEMINAR

The positive news about the country's economy is great news for homeowners who've been waiting for a better market to sell! Prices in Rockland County, NY have stabilized, and there is pent up interest from buyers due to the last year's lack of inventory.

Join Jennifer Mallory to learn How to Sell Your Home in Today's Market. Topics include: Preparing your home for sale, marketing techniques, and mortgage restrictions. Oct.1, 7 to 8:30pm, Tappan Zee HS, Orangetown, NY. Call 845.323.6247 for more information or to register.

jennifer mallory | associate broker | "real integrity in real estate"
keller williams hudson valley realty II | 130 main st, nyack, ny 10960
845.521.3135 office | 845.323.6247 mobile | jennifer.mallory@kw.com

Search all homes for sale in Rockland County, NY at www.jennifermallory.com

As a realtor, and a Rockland County, NY resident, I am concerned about the value of my home, just like you are. I keep a close eye on real estate market trends, and negotiate hard for my sellers to keep all our house values up. Spotting trends early helps me respond quickly and effectively. In examining home sales statistics for Q2 2009 versus Q1 2009, I see more positive indicators than I've seen in quite some time. Hooray!

Homes sold in Clarkstown and Ramapo each saw a close to a 3% increase in median sold price. Orangetown also had a healthy increase in median price - close to 13%! That increase was brought about by the sale of several homes in excess of one million dollars, indicating that the high-end housing market is coming back, too. Median sold price in Stony Point and Haverstraw are down somewhat, indicating that the real estate market in the northern part of the county will be slower to stabilize. Yet...

Third quarter sales look promising for every township in Rockland County.

This is particularly great because August traditionally is a quiet month in the real estate industry, as people squeeze vacation into the last weeks of summer. August 2009 is far busier than in years past. The market is active, both in terms of new listings and showings. Buyers are feeling more confident and are making offers!

The absorption rate (the number of months it would take to sell currently active listings given the current rate of sales contracts) is down below 7 months in four of the five Rockland County townships. This shows that the market is stabilizing. Great news for people who would like to sell real estate but have held off because of the soft seller's market.

National economic indicators point to the fact that the country is pulling out of the recession, another positive for home sellers and for home buyers. It's a great time to buy because there is a lot of inventory, and mortgage interest rates are still low. It's a great time to sell because more confident and qualified buyers are entering the market in response to the positive economic news. I believe real estate prices in Rockland County have stabilized in general and we'll see modest annual increases of 1% to 2% in the next few years.

I can't show real estate data for all neighborhoods in Rockland County, NY in one short article! I do have access to data for individual neighborhoods, though. So, if you want to know where your house fits into the above graph, call me today and I'll prepare a graph for your specific neighborhood.

Statistics from the Greater Hudson Valley MLS, as of 8/2009

jennifer mallory | associate broker | "real integrity in real estate"
keller williams hudson valley realty II | 130 main st, nyack, ny 10960
845.521.3135 office | 845.323.6247 mobile | jennifer.mallory@kw.com

Search all homes for sale in Rockland County, NY at www.jennifermallory.com

In recent months, I've fielded numerous questions from both sellers and buyers in Rockland County who are confused about the definitions of market value, appraised value and assessed value, and how these values affect their real estate sale or purchase.

Market value is what a ready, willing and able buyer will pay for your home in normal market conditions. Ready, willing and able means that the buyer can usually close within 90 days, is making the offer to purchase under normal market conditions, and can obtain financing to purchase the home. An example of an abnormal market condition is a foreclosure - when a home is listed for less than its fair market value in order to procure a fast sale. Buyers tend to offer less on a foreclosure because they assume that the bank wants to sell the property quickly. Typically, market value equals closed sale price.

Appraised value is the dollar amount that a bank appraiser decides your home is worth. When you enter into a real estate sales contract, the buyer's lending institution will enlist the services of a certified appraiser to prepare an in-depth comparison of your property to others that recently have sold in your neighborhood. The appraiser adds or subtracts a defined dollar amount for numerous property features to determine value. A bank will lend money on a property's appraised value, regardless of the negotiated sale price. Therefore, appraised value is the bank's assessment of value.

Assessed value is how your town determines your property taxes. Every township in Rockland County has a different formula for determining a home's assessed value. Some towns assess value on their estimate of the fair market value of a home. In other towns, the assessed value is less than the fair market value, so the town comes up with a multiplier every year based on the town budget, and applies it to a home's assessed value to calculate the tax amount. Basically, assessed value is how a township determines real estate taxes.

Although market value, appraised value and assessed value are different estimates of your home's value and are used for different reasons, there is a complex interplay among the three. The nuances among them can't be explained in one short article!

If you are looking to sell or buy in Rockland County, or just would like a more in-depth explanation of how these values affect your property taxes, or the sale or purchase of a home in Rockland County, contact me to discuss it in greater detail.

jennifer mallory | associate broker | "real integrity in real estate"
keller williams hudson valley realty II | 130 main st, nyack, ny 10960
845.521.3135 office | 845.323.6247 mobile | jennifer.mallory@kw.com

Search all homes for sale in Rockland County, NY at www.jennifermallory.com

Judging from the response to my last post (which I also sent out as an email) on the stimulus plan, people are really interested in hearing the details of the tax credit for homebuyers. Unlike a tax deduction that gets subtracted from gross income before tax is calculated, a tax credit is deducted from the total tax owed, meaning that a qualified tax payer would receive the entire $8000 deduction.

The stimulus bill itself is huge (someone told me over 11,000 pages long), so I've distilled the contents of this tax credit to three salient points (perhaps I've missed my calling as a lawmaker!):

• The credit is for first time homebuyers. "A first time homebuyer" is defined as a person who has not owned a property in the past three years. Ownership of a rental property or a vacation home may not disqualify a buyer.
  
• There is an income limit to qualify of $150,000 for couples filing jointly and $75,000 for a single. (Partial credits may be available for couples with AGI up to $170,000, and single filers up to $95,000.) The credit does not need to be repaid as long as the purchaser owns and lives in the house for 36 months.

• The home must be purchased between January 1, 2009 and December 1, 2009. The credit can be deducted from 2008 taxes if you've recently purchased a home. The tax credit is determined by the date of occupancy. So if you're buying new construction that won't be ready until 2010, you will not be eligible for the deduction.

The stimulus package is very much in flux, and changes may happen. Before you purchase your new home, be sure to consult a tax professional to determine how this new stimulus package will affect you personally.

In recent weeks, I've spoken to a lot of savvy people who are eager to take advantage of the unprecedented opportunity this housing market offers to buyers. They recognize that now is the time to buy property, but for many of them, the process is daunting.

I've developed a presentation specifically for buyers, designed to take the mystery out of the home buying process in Rockland County by breaking it down into manageable steps. If you've been hesitating to buy a home because you just don't know where to start, call me for an appointment. I'll explain the buying process in detail, and answer any questions you have. Then you'll be armed with enough information to determine if now is the best time for you to buy, too.

jennifer mallory | associate broker | "real integrity in real estate"
keller williams hudson valley realty II | 130 main st, nyack, ny 10960
845.521.3135 | 845.323.6247 mobile | www.jennifermallory.com

I'm pulling out my crystal ball, and predicting that in 5 years, people are going to be shaking their heads and saying, "I wish I'd bought property in Rockland County in the spring of 2009." This is because the stimulus package that the House and Senate are negotiating has major implications for people who would like to buy property in the near future.

The package isn't law yet, but it most likely will include a tax credit and a low mortgage interest rate that will make the spring 2009 market an unprecedented time for buyers. These two factors in combination with Rockland's lowest home prices since 2002 will bring a surge of buyers to the market in the next few months.

The buyers who get to the market first will get the best deals. As more buyers enter the market, there will be greater competition for houses, and this competition eventually will cause home prices to rise, especially if the President's plan to stem foreclosures is successful.

It is likely that the tax credit and low interest rates will remain in effect for a finite period of time, and will be gone by next year. That means that the best real estate deals are to be had now!

I am trying to get this information to everyone I know who is interested in buying in the near future, because the stimulus package could be signed as early as next week. Please call me immediately if you are serious about buying property in Rockland County, NY within the next year. Together we can figure out the best way for you to take advantage of this amazing opportunity.

jennifer mallory | associate broker | "real integrity in real estate"
keller williams hudson valley realty II | 130 main st, nyack, ny 10960
845.521.3135 | 845.323.6247 mobile | www.jennifermallory.com