Ulster County Real Estate Blog

What Is Zillow's Zestimate?

Info@MurphyRealtyGrp.com (Murphy Realty Group) — Sun, 09 Sep 2012 08:51:24 -0400

Many websites are available to view Ulster County real estate, such as realtor.com, homes.com, trulia.com & zillow.com. These national real estate websites have become more and more popular over the years, especially Zillow which displays their own estimated value (Zestimate) on each home for sale. The value of a home is an important number to both buyers and sellers. Both parties need this number to be accurate. If the number is understated, the buyer is likely to push for a price close to this number while the seller will probably not agree with the number. If the value is overstated, the seller likes the number and the buyer does not.Zillow calls its home value number a Zestimate. Both home owners and home buyers can see this number and while it often makes buyers happy, it has the opposite effect on sellers. The truth of the matter is that both parties must realize that a Zestimate is not a number that is determined by realtors but rather is a number that is determined by a proprietary formula developed by Zillow.Zestimates for the Ulster County real estate market are prepared using complicated algorithms that take into account data and sales prices of Ulster County homes. Some of the information that is considered consists of property sales tax amounts, location, square footage, and sales prices of nearby homes. Real estate agents use some of the same information, but they will do so with a level of subjectivity, as well as additional information provided through the MLS, that is not found on Zillow or in Zestimates.In order to get an accurate home value, several steps should be taken. You may seek the advice of a professional real estate agent, who can provide you with a CMA (Comparative Market Analysis). Your agent will look at the subject property, do research, and pull comps from the MLS to give you a better idea of value. An appraisal by a professional licensed appraiser is in order. Appraisers are able to take into account special features and construction that add to or subtract from the value of a home. Finally, a visit to the property is important. Most website pictures of properties are of only the property itself. Without a visit, there is no way to know what is next door or in the immediate area that might affect the value of the property.A Zestimate is certainly a place to start when considering the value of Ulster County homes. However, due to its objectivity, a Zestimate will not take into account the subjective items that must be considered in order to get an accurate home value. The only way to get a value that is fair to both buyers and sellers is to take advantage of the services of a professional appraiser and a professional and reputable real estate agent that is familiar with the area the property is in. To learn more about home values and the current real estate market, contact an Ulster County Real Estate Agent today!

The Time for Buying a Luxury Home Has Greatly Improved

Info@MurphyRealtyGrp.com (Murphy Realty Group) — Fri, 13 Jul 2012 13:58:42 -0400

The recent real estate report of May 2012 has given a boost of confidence to companies associated with real estate. The people who sell luxury homes across the land have even more reason to celebrate. Improved conditions in the market are enticing more transactions for properties priced at $500,000+. Defining Luxury Home Loans Fannie Mae and Freddie Mac, the two largest conventional mortgage lenders, have long held in place some guidelines about loan amounts. One rule is the maximum mortgage that they will underwrite. As of this writing that maximum rests at $417,000. For all intent and purposes, that amount would seem more than fitting for the vast majority of American looking to buy a home. But you might be surprised to learn that there are lots of luxury homes available in the market. Between the states of New York, Texas and California there are over 73,000 homes currently for sale priced at $500,000 and higher. Clearly, these properties will need another type of financing in order to consummate the deal. Jumbo Mortgage to the Rescue A jumbo mortgage provides an opportunity for homeowners to acquire homes in the higher price range while enjoying an interest rate competitive with a conventional loan. However, the jumbo loan has some unique rules. First, all jumbo loans currently require the buyer to pay 20% of the purchase price as a down payment from the buyer's own funds. These funds can be savings, retirement accounts or simply cash on hand. Secondly, the owner's proof of their main income, along with the aforementioned funds, will require sufficient documentation. Finally, the buyer will need to meet some strict credit requirements. The Luxury Market The good news is that this segment of the market has shown real signs of improvement. Although homes above $1,500,000 account for only 1.6% of the properties sold in all of 2011, there is another statistic. Homes that were priced in the $500,000 and up have represented 10% of all the real estate sales for 2011. People are indeed buying these luxury homes and this part of the industry is outpacing the rest of the market. Advantages of Purchasing Luxury Home Besides owning a wonderful home, there are several advantages to buying a higher priced property. Faster buildup of equity due to the large down payment and better appreciation. Owning a luxury home places the homeowner in an elite status level. Current low mortgage rates will allow the homeowner to use their funds and income on building up assets rather than have all of it tied to a real estate purchase. Eddie Stanfield is the owner of Central Coast Real Estate, the premier real estate agency in central California.

How Ulster County Stacks Up!

Info@MurphyRealtyGrp.com (Murphy Realty Group) — Tue, 03 Jul 2012 10:48:44 -0400

Is the Ulster County Real Estate Market improving? This infographic shows Ulster County Market trends as compared to the entire New York State real estate market. See how Ulster County stacks up in new listings, closed sales, inventory and median price. Statistics show May 2012 compared to May 2011. Put this graphic on your site:

For more Ulster County Real Estate Stats visit MurphyRealtyGRP.com

Capital Economics Expects Housing Crisis to End in 2012

Info@MurphyRealtyGrp.com (Murphy Realty Group) — Wed, 28 Mar 2012 11:55:13 -0400

As banks are loosening credit, the housing crisis is expected to end this year, which is great news. This is due to the fact that mortgage lending has remained stable over the past three quarters, now in the forth, with the requirements of a credit score of 700. According to banks, they are now lending amounts up to 3.5 times borrower earnings, up from the low of 3.2 times borrower earnings. Banks are also loosening loan-to-value ratios, which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.” With that said, if borrowing and credit conditions return to normal, maybe, just maybe, home sales will increase again! Homes for sale!

Proposed Tax Cut For First Time Homebuyers In Ulster County NY

Info@MurphyRealtyGrp.com (Murphy Realty Group) — Thu, 22 Mar 2012 20:34:52 -0400

Ulster County Executive Mike Hein is proposing a property tax exemption for first time homebuyers who move into newly constructed homes or buy used existing or renovated homes.Ulster County Executive Mike Hein wants to keep up the momentum, by keeping first time homebuyers on the Ulster tax rolls. He's proposing to cut their property tax levy over five years by fifty percent in the first year of a newly constructed home sliding down to a 10 percent savings in the fifth year, totaling on average, more than a $1,000 in savings. The same scale would exist for the value of improvements made to existing homes."This is hundreds and hundreds of dollars on an annual basis to people," said Hein. "That makes a difference in making a mortgage payment, it makes a difference in people being able to get into a home, and that's an exciting part of this."The tax initiative also includes a 30 percent increase of property tax exemptions for low income seniors, veterans, and disabled residents. The legislature is expected to vote on the measures in April.Many first time home buyers are often overwhelmed in the home buying process, which is why it’s very important to have an experienced, knowledgeable Realtor who can help and guide them through the process. One common question asked is “why buy now, when I can rent a little cheaper”? The answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years, and since it’s currently a buyer’s market and the addition of this proposed tax cut for first time home buyers, now is the prime time to buy!

A Simple Explanation Of The Federal Reserve Statement (January 25, 2012)

Info@MurphyRealtyGrp.com (Murphy Realty Group) — Wed, 25 Jan 2012 13:44:58 -0500

Wednesday, the Federal Reserve's Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent. The Fed Funds Rate has been near zero percent since December 2008. For the third consecutive month, the Fed Funds Rate vote was nearly unanimous. Just one FOMC member dissented in the 9-1 vote, objecting only to the language used in the Fed's official statement. In its press release, the Federal Reserve noted that the the U.S. economy has "expanding moderately" since its last meeting in December 2011, adding that the growth is occurring despite "slowing in global growth" -- a reference to ongoing economic uncertainty within the Eurozone. The Federal Reserve expects moderate economic expansion through the next few quarters but is wary of "strains" from global financial markets, and these three threats to the U.S. economy : The housing sector remains "depressed" The unemployment rate remains "elevated" Fixed business investment has "slowed" On the positive side, the FOMC said that household spending is rising and inflation remains in-check. The group also believes that employment will gradually improve nationwide going forward. The Federal Reserve neither introduced new economic stimulus, nor discontinued existing market programs. Immediately following the FOMC's statement, mortgage markets rallied, pressuring mortgage rates to fall in and around New Paltz, Woodstock, and the entire Ulster County Real Estate area. Mortgage rates remain near all-time lows and, for homeowners willing to pay points plus closing costs, conventional, 30-year fixed rate mortgages can be locked at below 4 percent. If you're in the process of buying or refinancing a home in Ulster County , it's a good time to lock a mortgage rate with your lender. The FOMC's next scheduled meeting is a one-day event slated for March 13, 2012. For more information and to browse available listings in and around the surrounding Ulster County area, visit our website and start your search for Ulster County Real Estate

Pay Your Mortgage Early, Boost Your 2011 Federal Income Tax Deductions

Info@MurphyRealtyGrp.com (Murphy Realty Group) — Fri, 23 Dec 2011 10:46:11 -0500

Time is running out to boost to your 2011 federal tax refund. All you have to do is make your January 2012 mortgage payment while it's still December. It's a simple tax strategy that works because of how mortgage interest is paid, and of how the U.S. tax code is written. Different from rent which is paid for the month ahead (i.e. "you're paying January's rent"), mortgage payments are made only after mortgage interest has accrued (i.e. "you're paying for money you've already borrowed from the bank"). This is called "paying interest in arrears" and U.S. tax code states that the mortgage interest is tax-deductible in its year paid, subject to limitations. By making the January 2012 mortgage payment in December 2011, therefore, homeowners who itemize their on their tax returns can apply their January mortgage payment's interest portion to their 2011's tax returns. The alternative is to pay the mortgage on schedule, and wait for April 15, 2013 to claim the credit. If you choose to pre-pay your mortgage and typically send your payment via USPS, give your check ample time to be delivered to your lender, and processed. Mail your check no later than Saturday, December 24. For Ulster County homeowners that pay electronically, the process is simpler. Edit your online bill pay program to have your mortgage payment post no later than Thursday, December 29. Make note, however. Not all mortgage interest is eligible for tax-deductibility, and not all homeowners throughout the state of New York who pay mortgage interest should itemize said interest on their tax returns. Before prepaying on your mortgage, ask your tax professional for advice.