Real Estate New York

Market Update September 2009
3 Months Left to Use $8,000 First Time Buyer Grant information

$1,500 per year Tax Credit Now Available

GOVERNOR PATERSON ANNOUNCES FEDERAL INCOME TAX CREDIT FOR FIRST-TIME HOME BUYERS

Tax Credit Could Save the Average Homebuyer Approximately $1,500 Each Year.

Governor David A. Paterson announced August 10, 2009 that New York will offer a federal income tax credit to first-time homebuyers to encourage home sales in the State. The New York State Mortgage Credit Certificate (MCC) will enable first-time homebuyers to claim a tax credit equal to 20% of their annual mortgage interest costs, potentially saving the average homebuyer about $1,500 each year. The program will effectively extend, and in some cases improve upon the federal government's $8,000 First-Time Homebuyer Credit enacted as part of the American Recovery and Reinvestment Act of 2009, which expires on November 30th.

“The best way to jump-start the housing market is to encourage home purchases by first-time homebuyers,” Governor Paterson said. “The New York State Mortgage Credit Certificate will make it easier for first-time homebuyers to buy their first home and will help stimulate the State's economy. It also means some form of federal tax credit will be available for homebuyers even after the federal government's tax credit program expires in November.”

The New York State Mortgage Credit Certificate (MCC) can be used to reduce a homebuyer's tax burden for every year the mortgage loan remains outstanding. With an MCC, 20% of the amount paid in mortgage interest becomes a tax credit that can be deducted, dollar for dollar, from a homeowner's federal income tax liability. The remaining 80% of the mortgage interest continues to qualify as an itemized tax deduction, as long as there is sufficient federal tax liability. The MCC will be administered by the State of New York Mortgage Agency (SONYMA), a State agency that offers a variety of fixed-rate mortgages tailored to the needs of first-time homebuyers.

Priscilla Almodovar, SONYMA President and Chief Executive Officer, said: “Offering a federal tax credit is a powerful incentive to bring first-time homebuyers into the market and it helps with a family's cash flow needs. This program will help stabilize housing prices and at the same time further Governor Paterson's goal of promoting sustainable homeownership for working families.”

Prospective homebuyers should apply for the Mortgage Credit Certificate when they apply for a fixed-interest rate mortgage from a participating lending institution. MCC applicants will be required to meet SONYMA's income and purchase price limits, which can be found at http://www.nyhomes.org . However, homebuyers who obtain a SONYMA mortgage will not be eligible to apply for the Mortgage Credit Certificate tax credit.

Read more from New York State Governor's Site

Details click here: http://nyhomes.org/index.aspx?page=898

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Termites: The Silent Destroyers

Once home owners realize that termites have invaded, the damage is usually already done. Preventative maintenance is the key.

Termites cause an estimated $5 billion in property damage a year in the United States, according to the National Pest Management Foundation, making these pesky insects even more of a threat to wood-based structures than fire, flood, or wind. 

Yet, many home owners know very little about the danger that termites pose to their property.

"You don't usually notice them until the damage is extensive," says entomologist Ron Harrison, technical director for Orkin Inc. 

Termites may take up residence in a home for years—even decades—eating away at the structure from the inside out (an average subterranean termite colony can consume a two-by-four per year) until the damage finally shows itself—hence the unsettling nickname "silent destroyers." 

Read more from National Association of Realtors Magazine by Melissa Dittmann Tracey

lick to Architecture Coach: Tin Ceilings Bring Vintage Flair

The revival of the Victorian-era tin ceiling is providing a modern-day, decorative flourish that is getting many home owners to look up.

Tin ceilings can add drama to a home's ceiling. Coming in a variety of patterns and styles, this pressed tin artwork can be identified by its three-dimensional ornate swirls and floral designs.

While popular in the 1890s, tin ceilings became less prevalent after the Depression, replaced by today's mostly plain white ceilings.

However, tin ceilings are making a comeback and giving buyers a reason to look up again. In fact, these quaint tiles have quietly been making a resurgence for the last 30 years, particularly among home owners and real estate practitioners rehabilitating Victorian homes and wanting to recreate the authentic period details. 

Other home owners are being drawn to the juxtaposition of exposed brick, virgin timber, and the new tin in downtown loft conversions. You might also spot the fashionable artwork in backsplashes, wainscoting, or other household details.

Designers such as Shabby Chic (Regan Books, 1996) author and interior designer Rachel Ashwell and magazines such as Country Living have more recently incorporated the well-worn vintage tiles into a modern look, using originals to create mirrors and picture frames.

In their heyday, the pressed metal square tiles were used as an inexpensive alternative to ornate plaster ceilings. Americans first used them during the Civil War, and in the post-war building boom, these tiles were often found in schools, storefronts, and residences.

During the height of their popularity in the 1890s, the most widely requested tiles had the dramatic flourishes and embellishments of the Art Nouveau movement; in the 1930s, geometric motifs were prevalent.

Part of the overall appeal of tin ceilings are they easy to install—you simply need furring strips, nails and hammer, and the ability to stand on a ladder for long periods of time. They can be a glamorous way to mask pesky, stubborn cracks. Plus, when painted white, the tiles resemble expensive plaster.

Read More from National Association of Realtors by Mary Beth Klatt

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How to Buy For Sales By Owners

Let's say you are in the home buying market and have decided to buy a home. So you're driving around the neighborhood and spot a For Sale by Owner sign in a yard. It's probably a small red-and-white sign, with a hand-scrawled phone number. Although, I did see a For Sale by Owner sign recently that was made out of wood and engraved with the seller's name and phone number, like an architect's sign, but many For Sale by Owner signs are handmade.

You may wonder if it's worth contacting For Sales by Owners (FSBOs). Yes, write down the For Sale By Owner's phone number and call.

Myths About For Sales By Owners

For Sales By Owners aren't serious sellers. A small minority might be testing the waters, but the majority of For Sales by Owners absolutely do want to sell their homes.

For Sales By Owners are not flexible on price. Sometimes buyers think FSBOs can't afford to hire a real estate agent; they need every dime out of the deal and won't bend on price. But according to studies by the National Association of Realtors, most For Sales By Owners get less for their homes than those who list with a real estate agent . For Sales By Owners are willing to negotiate . Since they don't do it for a living, FSBOs are unlikely to be very good at it.

For Sales by Owners are hiding material facts by not hiring a real estate agent. FSBOs are bound to the same laws that govern those who are represented by a real estate agent. These sellers need to give buyers federal- and state-mandated (if any) disclosures, including material facts .

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