Some Good News for Buyers and Sellers on Long Island!  Freddie Mac and Fannie Mae once again have increased the higher loan limits allowed for conforming loans.  The mortgage rates on bigger mortgages finally should come down.  Home loans up to $729,750 for single-family homes (Nassau and Suffolk qualify for the maximum limit) should be cheaper in the next few weeks.  This higher conforming loan limit is part of the economic stimulus act and is available only until the end of this year and then reverts back to the $417,000 true-conforming loan limit.    Freddie Mac and Fannie Mae can purchase or guarantee only conforming-loans-anything over the limit is a Jumbo Loan-and the interest rates are much higher.  The interest rates for these super-conforming loans may be slightly higher than the true-conforming $417,000 limit  (typically one-fourth to one-third percentage point higher) – but they still are cheaper than Jumbo loans-which average around 1 to 1 ½ points higher than conventional mortgages.

Even though the act passed in February, the criteria for these new limits were released only recently and both Freddie Mac and Fannie Mae will begin buying super-conforming loans on May 4.  Check with your mortgage officer to see when their company will start writing these loans.  (See How Much Can I Afford? for names of some mortgage lenders.)  This higher loan limit and resulting lower interest rates for mortgages up to $729,750 certainly will have a positive impact on the Dix Hills & Melville Housing Market.  Good news indeed!

For more information email me at cheryl@liagent.com.  Please visit my web site, www.LIagent.com.  New Home Searches with a great IDX company, Diverse Solutions – coming this week.

Buying or selling a home today is much more complicated than it was a few months ago – well, we all know that, don’t we? Often overlooked is the importance of the bank appraisal process.  A real estate agent should give the bank appraisal the same attention and preparation as is done when formulating a marketing plan for selling a home.    It’s one of the most important steps in the selling and buying process – without a satisfactory appraisal the bank will not grant a mortgage. 

To help understand the process and requirements in today’s market, Thomas E. Lauritano, a NYS Certified Appraiser of Lauritano Appraisal Services, recently met with the agents in my office to discuss the new guidelines and to answer our questions.  Tom’s company provides appraisals and is a consultant to one of the largest mortgage banks in the area.  He elaborated on procedures that I have followed for years when meeting an appraiser.  He stressed the importance of analyzing the data and explaining why certain comparable sales were chosen as relates to the subject property and the neighborhood values.   Optimally, banks want comparables that are of homes within the neighborhood and that have closed within 6 months.  Realistically, such comparables are not always available.    If there are no recent comparable sales in the immediate vicinity of the subject home, you’d better be prepared to fully justify the ones that you do choose.

If a house nearby sold for less, then that must be explained in detail.  What was the reason?  Family member purchased home?  Foreclosure or Short Sale?  A handy-man special? Sometimes, agents just choose to ignore those houses – hoping the appraiser won’t “bring it up.”  That won’t fly in today’s market.  In addition to the sold comparables, he stated that banks and underwriters currently are asking for the pending sale prices of homes that recently entered into contract.  Data from these sales generally are requested from the brokers involved in the sales.  Pending sale prices are the best indication of where the market is now and if it is holding steady, declining or rising.

Just handing an appraiser some listings, without an analysis of each one and detailing why it is a good “comparable” for the subject home may result in a low appraisal and a “deal” falling through.   If the underwriter refers it back for further explanation, the appraiser must be prepared to defend his report.  There’s no guarantee that the appraiser or the underwriter will accept your agent’s analysis.  However, if the agent hasn’t supplied sufficient data to begin with then the analytical report may not be as detailed as it could have been.

When selecting a REALTOR©, you should choose someone:   1)  Who has the experience and expertise to handle all the aspects of the home buying/selling process;  2) Who understands the appraisal process, knows which data to select and what details to provide to enable the appraiser to provide a full analytical report that will meet the bank’s requirements; and 3) Who is an expert in the local real estate market.

Any questions?  Please call me at 631-549-1993.

First it was realizing that it cost almost a $1000 to fill the 275-gallon oil tank at my home in Dix Hills - and then it was the increased interest from buyers in one of my listings because of its energy-efficient building methods and products.  Besides demanding more energy-efficient homes, today’s buyers are also concerned about environmental issues when buying a home.  To meet these needs, I need to be able to provide knowledgeable energy information and understand how to work through any environmental concerns that may arise during real estate transactions.  So, today I applied to become a Certified Eco-Broker.  The classes and exams cover both environmental issues and energy-efficiency technologies and options and will definitely be of benefit to both buyers and sellers.  As I work through the curriculum I’ll be posting some topics on this blog that I think will be helpful and informative.  So, in addition to “staging homes” and innovative web marketing, I’ll now be prepared to provide solutions to environmental concerns and discuss energy ratings! 

One of the first rooms that a buyer may see when entering a home is the dining room – so it’s especially important when selling your home to make that first impression a good one. Even if your dining room is located elsewhere following these suggestions will help to "showcase" it.

First, make sure that your dining room looks like a dining room and not an office or a playroom. Then you are ready for the basics of home staging: declutter, depersonalize, clean, brighten and make minor repairs. Finally, there are some specific things you can do to enhance the appearance of your dining room.

Declutter. When staging think, "less is more." Eliminate clutter by removing and packing up any accessories or items that are not chosen to keep for a decorative accent.

Depersonalize. Remove any personal photos and replace if needed with an accessory or artwork that adds a decorative touch. A mirror is also an acceptable replacement in a dining room. Remember that you want buyers to be able to picture themselves living in your house and not feel like they are just visiting someone else’s home. Also, be sure to remove any valuables you might have on display.

Cleaning your Dining Room. When cleaning the dining room, be sure to clean the windows and dust / wipe off the light fixtures and polish the furniture, if needed. Clean the floors and any rugs. Get rid of dead plants.

Brighten your Dining Room. The freshly cleaned light fixtures will help brighten the dining room. Make sure that all the lights work and that all of the light bulbs function. Use the highest wattage bulbs allowed for the light fixture. A dimmer switch is a good idea also. On occasion, "mood lighting" may be more effective than a bright room. If you have heavy window treatments blocking your dining room windows, then draw them back or replace them with something else to allow more natural light to filter into the room. If the room still seems dark, then consider putting an extra lamp on a buffet table.

Make Minor Repairs. Check to make sure that all the switch plates and outlet covers match and that none of them are broken. Replace them if necessary. Also check the trim around the doorways. Repair any nicks and consider repainting. If your wallpaper is dated, then it is be a good idea to remove it and paint the walls with a neutral color.

Setting the Stage. Complete the staging of your dining room by making the room feel more spacious, creating the illusion of higher ceilings and setting up the dining room table. Make your dining room feel more spacious by minimizing the amount and size of the furniture in the room. Unless the room is large you should only have a dining room table (with the leaf removed) and four to six chairs on top of a rug along with just one other piece of furniture (china cabinet / side board / buffet). The room should also have a chandelier or other light fixture, with the dining table centered underneath. If you know you absolutely want to take your existing chandelier with you, then take it down now and replace it with something else; otherwise, it can be excluded from the listing agreement (sometimes can become part of the negotiations for sale of home). Create the illusion of higher ceilings by removing any plants or accessories from the tops of china cabinets. The more wall space there is between the furniture and the ceiling, the higher the ceilings look. When setting up the dining room table, use a table runner or place mats. Designers recommended grouping in threes. Fresh flowers and a couple of candles can make a nice centerpiece.

Whatever the size of your home or whether a formal dining room or not, adding a fresh look to your dining room is sure to make a good impression with buyers! In today’s real estate market, a home in good condition and that "shows well’ adds value for Long Island homeowners.