Beth's Blog

Building Your New Dream Home

Late autumn is the perfect time to think about building the home of your dreams.  A new home is best for those who want to make the choice of architectural style, how to site the home on the lot, finishes inside and out and features and options in the house.  Building a home is the only way you can have the home totally customized to your life style, needs and personal preferences.  There are many items to consider but the first and perhaps the most important is financing. 

Early in this process you should speak to a bank about the amount of home mortgage loan you will qualify for and the best programs that fit with your financial situation.  New home construction generally requires that you put a large amount down in cash on the house and that once the home is completed you then convert your construction loan into a traditional home mortgage loan.  As with purchasing any home the financing aspect is fundamental.  You need to make sure how much you can afford to spend on a lot and on the new home you will be building on the lot. 

One of the first decisions is finding the location and the site for your new home.  Consider the options of different locations offer, proximity to work and shopping, schools, services and the impact of future plans for the area.  In selecting a building lot you need to determine orientation of your new home and how best to site the house.  A good builder can give you recommendations on lots that will give you the ability to have a walk out basement, the best view from certain prime areas of your home, the greatest privacy from other homes in the neighborhood and the natural light available in the house during different times of day. The deed restrictions for the subdivision may also require the house to be a certain finished square footage, prohibit certain types of siding or house colors and may limit the use of the home for a home business or having an apartment in your home.  You should also consider the availability of services.  For example if you want natural gas, municipal water and sewer you may need to be closer in to town where the services are available and the lot sizes are likely to be smaller.

Peak times for the purchase of lots occur in late fall, early January and early spring.  If you are thinking of building also consider the time frame of when you need a completed home as well as the effects of the climate.  In areas with snow and freezing temperatures you will need to get the foundation for your home in before bad weather hits or wait until the ground thaws in the spring.  Depending on the architecture of the house, size of the house and type of construction will all impact the time frame needed for construction.  You should plan on 4-6 months in case there are delays in material delivery, unexpected problems along the way and timing due to climate.

It has never been easier than it is today to find architectural styles and floor plans for the home you want.  Look at lots of plans.  You can go on line and search by style types, square footage, number of bedrooms and baths, whether you want the master on the main level or upstairs.  Most on line sites also allow you to flip a plan or to find similar plans to the ones you like.  Once you have a plan you need to talk to your builder about the plan.  It is important it meet climate requirements of the area and in general needs to be stamped or redrawn by an architect licensed in your state.

Verify that the builder has a good reputation, will deliver your new home on schedule and meet the quality standards you are looking for. Good builders will be happy to provide references from other clients.  Talk to other owners to find out their experiences. The builders frequently will be happy to show you completed homes they have built so you can get a sense of the quality of the construction and finish work. 

There are many decisions that you will need to make during the construction process.  Your builder can advise you on the timing of the decisions on everything from flooring, counters, cabinets, plumbing fixtures, lighting etc.  Your builder should have a good relationship with a building supply store that can assist you with design decisions and products that both meet your budget and fit with the architectural plan and style of your home.  Make sure that your builder understands your availability and can work with you in the timing of decisions that you will need to make.

Moving into a new home is exciting!  Moving into a new home that you have created is both exciting and rewarding to see your plans materialize into your new home.  Remember to leave room in your budget for the landscaping, new furnishings, window treatments and other finishing touches that will be needed. .

Finally look at your home as an investment that you will be selling sometime in the future. Talk to your agent about resale values and were the market is headed. Consider the price range and value of homes in the neighborhood you are planning to build your new home.  Remember that certain upgrades and options that are important to you like home theaters and high tech features do become out dated and you will most likely not receive one hundred percent return on your investment.  If you are selling another home in order to purchase your new home, be careful about the timing to ensure that you are not left supporting two mortgages if your home does not sell or left homeless because your new home is not ready.  You may have to accept a little inconvenience like moving short term into a rental to make your ultimate goal of your dream home a reality.

Tips for Selling Your Home in a Buyer's Market

The economic news is not good.  The inventory of homes is rising and people are worried about keeping their jobs.  Despite this, homes are selling and the market has not stopped.  In the Ithaca area we are lucky to have solid local lenders and employers.  What it does mean is that sellers need to work with experienced agents who have been through tough markets before and know what to advices, what to do and how to do it!

If you want your property to sell then you need to fully accept what needs to be done to make your home a great value and position it well in the existing inventory of homes on the market.

 1.   Pricing is always important.  Now it is even more so.  Houses that are going to sell need to be priced BELOW "market Value"  The problem with setting market value is that we are looking at past sale history.  Things have changed and prices will continue to adjust.  In some price ranges it is difficult to even find any sold comparables... just lots of houses "for sale".  If your home is priced 10 percent above market value fewer than 25% of buyers will consider it. If your home is priced 10 percent below market value 75% of buyers will consider your home.  In this market you can't afford to price yourself out of having buyers even consider your home.

 2.  Offer incentives. If there are specific problems like old worn carpet or rooms in need of fresh paint offer an allowance up front so buyers know they will be able to take care of the negative features that might keep them from buying.  If a potential buyer knows this upfront, they might be able to overlook the unattractive carpet or other problems that they notice immediately upon entering the house.  Or, offer to include appliances or other items not ordinarily included with the home.. This type of offer will be especially enticing to first-time buyers who are putting most - if not all - of their available cash into their down payment and closing costs.

 3.  Offer to pay some of the nonrecurring closing costs - the loan appraisal, loan points, credit report, title insurance, and property inspections. This can be a major motivation to cash-strapped buyers; these costs usually run about 3 to 5 percent of the cost of the house. Depending on your market and budget situations, you may offer to pay part or all of the costs.

 4. Get a professional home inspection before you put your house on the market. Nothing will end your sale quicker than a buyer's inspector finding a major problem during the inspection process. Even if you reach agreement with the buyer on who will pay for the repair work - or if you agree to pay all the repairs - the fact that the buyer has to wait for the repairs, the delay and inconvenience  could diminish their enthusiasm, and even cause them to break the deal, especially if there are plenty of other comparable houses on the market.

 5. Be flexible. When you receive an offer and the buyer wants to move in sooner than you'll be ready, make plans to stay in other accommodations until your new place is ready. A month or two of inconvenience is worth it.  Many buyers are looking for more than price.  Convenience is important to them!

 6.  Create good curb appeal. A home buyer's first impression is extremely important.. The moment they pull up to the curb, they'll make an instant judgment. Be sure it is a positive one.  The front landscaping, condition of the exterior of the home and the front entrance are very important  It is a good idea to touch up pain or replace the front door for a positive entry experience.

 7. Make sure your home is clean and decluttered.  Focus on entry areas, bathrooms and kitchens.  If your countertops are covered with stuff or you have lots of knickknacks start packing and storing them.

 8. Keep your home light, neutral and depersonalized.  The point is to make sure the buyers feel that they can relate to the house and not feel that it is someone else's home.  If you have lots of family photos everywhere it is usually a good idea to put some of them away.

 9.  Make sure your home is light, bright and odor-free.  Be sure there are no lingering pet, food or smoke odors. Set out some fresh flowers. Turn on some light music. Let the light in. Open blinds and curtains so plenty of light illuminates the home's interior.   You should make sure there are lights on or buy higher wattage bulbs to make sure it is bright and inviting.

10.  Keep on top of what is happening in the market.  If new listings are coming on or other sellers are reducing prices you need to know this and take the appropriate action. You'll want to talk to your agent about the current inventory of homes on the market and how long homes are staying on the market in your neighborhood. The time to reduce your price is when there are still buyers in the market.  If you are constantly above the "correct price"  for your home the potential buyers who should be seeing it won't be.

Most of all relax.  Your home will sell and for the best possible terms if you take an intelligent approach to the process!

Columbus arrived in America at 2 am on October 12, 1492.  That was a great day for all of us.  Think of the opportunities that this event started.  A new land, new homes, new opportunities and Realtors to sell all those new homes!

Wishing you all a very Happy Columbus Day!

Students and new home owners have arrived!  Our town is bustling as everyone starts settling in and classes start the last week of August at Ithaca College and Cornell.  Be ready for long lines and empty shelves at the grocery stores and other retailers of basic home staples.  Also be prepared for longer than normal waits to connect to services.  There is going to be a delay to establish your cable, telephone and other services.  This is what happens when the population of a small town nearly doubles during the last week of August.  And it happens every year!

Despite the delays it is great to feel the boost of activity and energy as Ithaca is recharged.  While many areas are still enjoying summer we have been fast forwarded into a new school season.  Labor Day is now back to work as usual with Ithaca College and Cornell conducting normal class schedules.  The new season of concerts, theater and special events has begun.

With so many newcomers it is important to stay alert.  This is a peak time for inexperienced drivers to enter our area.  Remember to be patient at least for the next few weeks, plan for some delays and expect the unexpected.  Be sure your insurance for both your car and home are up to date. 

Now is the time to remember there will be peak weekends throughout the year when it will be difficult to make restaurant and hotel reservations or get flights in and out of Ithaca.  Big event weekends at both Cornell or Ithaca College campuses will make scheduling reservations difficult.  Be sure to plan ahead. This is all part of living in Ithaca, NY a place many come to study and sometimes end up living here long term.  I am happy to be one of them.

Sellers whose homes have not sold in the peak selling market of Spring and Summer are worried.  Not enough showings, no offers and how are they going to get their homes sold.  The biggest problem seems to be, as always lack of communication, between the listing agent and the sellers.  Agents don't like to talk to sellers when they have no good news, no activity to report.

The sellers at today's listing appoiintment have had their home listed since February.  They have made price reductions; both times they suggested the reduction to their agent.  Other complaints were that the agent never  made suggestions of what they could do to enhance their home through buyers' eyes.  They were of course concerned that their home will not sell if they do not get buyers in to even look at the house. 

The solution is simple but not simply executed.  Honest, prompt and on-going communication.  We can't change the market but we can try to make the selling process as "pleasant" as possible.  First, sellers need reassurance.  They are "hurt" that no one likes their home. They need a reality check....honest pricing and suggestons about what needs to be done to get their house sold.  They even accept some of the responsibility.  Perhaps they priced the house too high to start.  Mostly it sounds like they were not educated about the process or the market.  Education needs to be on-going.

Many sellers are ready to move on.  Not just to their new life in a new community but until that happens, to a new agent.  Someone who can help them move the process forward.  They don't want false promises.  They are more saavy about the professionals they choose.  This is a great opportunity for agents to prove they are professionals and despite a soft market work with these motivated sellers to markeet the home, bring in new buyers and hopefully put up that red SOLD sign.

Beth Carlson Ganem

Lic. Real Estate Associate Broker

Audrey Edelman Realty USA

www.BethGanem.com