Rick Schwartz, Realtor e-PRO

My Thanksgiving Message to the Blogosphere

Rick Schwartz (William Raveis Real Estate) — Wed, 25 Nov 2009 10:39:56 -0600

I know the standards of writing I've set in the past are causing you right now to eagerly anticipate sage pearls of wisdom from me; carefully selected words expressed in such an articulate, heartfelt fashion with a message so touching and meaningful as to make you pause, look into the deepest recesses of your heart and reflect on the things you should be thankful for in spite of the troubled times we live in. Sentences so eloquently constructed they'll render mental and emotional images that will make you cry (just a little). You'll vividly and fondly remember all the joyful Thanksgivings of years past and look forward with hope and eager anticipation to all the Thanksgivings yet to come.

WELL......

Sorry to tell you - I got nothing!

Just enjoy your time off with family and friends and don't eat too much stuffing.

HAPPY THANKSGIVING

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Route 7 Brookfield Bypass (Super 7) is now Open

Rick Schwartz (William Raveis Real Estate) — Thu, 19 Nov 2009 13:54:55 -0600

There was a grand opening ceremony this morning to commemorate the long awaited completion of the extension of Super 7 from the Southern end of Brookfield, CT to the Southern end of New Milford.

State Representative David Scribner of the 107th District, serving Bethel and Brookfield put out the following statemtent at 2:30 PM today.

Dear Neighbors, We did it! After many years, a few set backs, and a lot of hard work, the Route 7 Brookfield Bypass is officially open for motorists. I was honored to join Governor Rell and Senator Andrew Roraback for the official grand opening this morning, and am excited that this critical project has finally been completed.

This extension of Route 7 will help alleviate traffic congestion in Brookfield. This is not only a boon to motorists tired of hitting the brake pedal on their way to and from work, it is an important step forward for the business community in Brookfield and making our town more attractive to those who want to open or expand a business here. As the Ranking Member of the General Assembly’s Transportation Committee, as well as a member of the Finance, Revenue, and Bonding Committee, I have made the Route 7 Bypass a priority during my time in the Legislature. I have been extremely fortunate to be joined in that fight by Senator Roraback, as well as Brookfield’s own Governor Rell. This project will certainly be among the most important legacies of her Administration. Working as a team, we were able to ensure the funding was made available, negotiate obstacles, and see the project through.

As for me I'm on my way out to my Honda Civic to test it out before any potholes develop.

From a Real Estate persepctive this opens up many new opportunities for folks commute to the west or South of Danbury to purchase affordable housing in Brookfield and New Milford.

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Local Business Profile - Darryl Gregory, Musican/Entrepreneur

Rick Schwartz (William Raveis Real Estate) — Tue, 10 Nov 2009 15:56:11 -0600

Darryl Gregory

One of the reasons that I admire Darryl Gregory I think, is because I'm a little bit envious. Most of you who know me well, know that although I am very passionate about my own business - helping people through the muck and mire of the housing market - my first love has always been music. Darryl has managed to capture the best of both worlds in that his love of music is also his livelihood.

For his "day job", Darryl is a Middle School Music Teacher. You gotta love teachers - especially music teachers. They not only pass their own musical knowledge to the next generation, they also somehow have learned to deal with the squeaks and toots of young musicians and not go absolutely nuts from it.

When not at School, you can usually find Darryl in his home-based studio -- BLUE CAVE STUDIOS in Sandy Hook, CT. He could be working on any number of projects. Blue Cave is a project studio that caters to just about anyone who wants to record anything. Singer-songwriters who want to produce a marketable CD of their music, Songwriters who need demos, Voice over tracks and Background music for films and web projects just to name a few examples.

The cool thing about working with Darryl is that he doesn't just "rent time" - he works closely with clients providing whatever level of technical expertise and personal support they may need to produce the best possible project.

It's not just musicians who need recording assistance, though. Keeping pace with today's businesses, another of Darryl's projects is EASY BUSINESS PODCAST. Here Darryl helps bloggers and Internet business folks with the creation, production and implementation of podcasts to help them get their own messages into cyberspace.

Speaking of podcasts, as an avid supporter of the Indie music scene, Darryl produces his own series of podcasted interviews he does with a wide array of independent musicians from around the world. He hosts these on the website UNSIGNED UNDERGROUND. the 26th Episode was just added this past week - an interview with Singer/Songwriter John Batdorf.

For a little peek into Darryl's thoughts on things, check out his Blog SLOW DRIP FROM AN EMPTY HEAD. You can also follow him on Twitter @darrylgregory which is actually where he and I first met. For the ultimate experience of all things Darryl though, you need to listen to his own music. You can find the hub at DarrylGregory.com

For live performances check his site and you'll find a list of local gigs and you'll have a link to his CDs. In addition Darryl is available for House Concerts - a venue that has been growing in popularity throughout the indie music world. It's a great way to hear some wonderful music and share it with your friends.

Check him out - it's worth the time.

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Move-up also mean Move-Down. Increased eligibilty on Homebuyer's Tax Credit

Rick Schwartz (William Raveis Real Estate) — Mon, 09 Nov 2009 12:10:12 -0600

The new expanded portion of the Tax Credit for Homer buyers is being referred to a Move-up plan.

You can also downsize.

As long as you meet the other requirements such as the income limits and having lived in your current home for 5 years you can get the up-to $6500 credit even if you are downsizing.

The credit is not dependent on your new house being higher priced than your current home.

You don't even have to sell your current home.

If, for example your current home is on the market but it doesn't sell for one reason or another, you can still get the tax credit.
If, for example you want to keep your current home and rent it out and move to a new home, you can still get the tax credit.

In both of those cases the new home must become your primary residence. You cannot buy something as an investment.

Standard Disclaimer - talk to your accountant about your specific eligibility.

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10 Digit Phone Dialing for All of Connecticut on 11/14

Rick Schwartz (William Raveis Real Estate) — Fri, 06 Nov 2009 15:03:19 -0600

NEW AREA CODES WILL CHANGE OUR DIALING HABITS

It's been coming for some time - and it's finally here. Both Area Codes in Connecticut are having babies in a few days.

Area Code 203 will give birth to Area Code 475
Area Code 860 will give birth to Area Code 959

The upshot of this for all of us is that we will have to dial 10 digits (area code plus the number) for every call that we make even if you are calling your next door neighbor.

We should be used to this kind of thing by now. Some of us may remember when you could call people in your own exchange with just the last 4 digits. (Did I just admit that I remember that???)

Even if 4-digit dialing goes back to your ancestors, the new Area Code syndrome has been going on since the 1970s. At first we'll be confused and annoyed, then it will just become habit.

Also remember that, just as now, you'll have to dial a "1" BEFORE the Area Code if you're calling someone outside your local calling area.

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Homebuyer's Tax Credit Extended and Expanded

Rick Schwartz (William Raveis Real Estate) — Fri, 06 Nov 2009 09:19:56 -0600

Things always seem to come down to the last minute.

The $8000 First-Time Home Buyer's Tax Credit, set to expire on November 30, 2009 has been extended. 1st Time buyers now have until April 30, 2010 to sign contracts on their new home and have 60 days beyond that to close the transaction.

BUT WAIT, THERE'S MORE

In addition to the extension, the program has now been expanded to include "move-up" buyers. As long as you have occupied your current home for 5 of the last 8 years, you are also eligbile to apply for a tax credit. It's a little less, capped at $6,500 instead of $8,000 but hey - it's nothing to sneeze at. The following is a summary put out today by the National Association of Realtors. If you want to explore this further, speak with your lender.

BUT WAIT, THERE'S EVEN MORE!

Yup - one more thing. In a separate measure Congress has also passed an extension - through 12/2010 of the new higher limits on conforming loans.

You can read the definition of Conforming Loans and Jumbo Loans for more detail, but the bottom line of it is that better interest rates are typically available on conforming loans than on jumbo. By raising the limit for conforming loans, it enable more folks to get better interest rates on larger loans. This is good!

THE DEBATE!

There's been a lot of discussion in the Real Estate community as to whether extending and expanding these programs is good for the economy in the long term.

There are those who feel that it will provide a "false" feeling of improvement if people buy up houses over the next several months for the tax break. The feeling is that when it ends, we could move back to a very slow market.

Those in favor of it feel that getting people moving into new homes could very well be the impetus needed to jump start the economy. When people move, there is a lot of cash pushed into the economy in the form of moving costs, renovations, furniturepurchases , hiring of contractors - etc. So it may be that things will be better BECAUSE of the temporary burst in home sales that is expected.

Whichever side you fall intellectually on is moot at this point. The extension is here and if you've been thinkikng about buying a house - buy one, while the program is on. This is one more low-pressure system in the Perfect Storm for Home Buyers.

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Perfect Storm for Home Buyers in Connecticut

Rick Schwartz (William Raveis Real Estate) — Fri, 30 Oct 2009 09:30:15 -0500

I know that headline sounds like a line of insincere marketing hype. Unfortunately, in our business, someone is always saying "It's a great time to buy a house".

LET'S FACE - IT'S NOT ALWAYS A GREAT TIME TO BUY A HOUSE!

In an "UP" market when inventory is low and prices are high, you will likely find yourself in a bidding war if you are interested in a desirable house. Bidding wars are great for sellers - not so much for buyers. That's why they call it a seller's market.

A buyer's market exists when prices are down and inventory is up. If you add in the third piece which is Interest Rates, you get the perfect storm.

Right now:

Inventory is at an all time high and all indications are that it will continue to rise because, sadly, the unemployment situation is expected to add to the already high level of foreclosures that are out there.
Prices are at a level where they were prior to the boom of the early part this decade.
Interests rates are - well, they're just ridiculous!

Any two of those three things would make things ripe for buyers - having all three in place creates a situation that simply makes it darn near a sin for qualified buyers to sit it out any longer.

The other thing that makes it EVEN better, is that most home sellers are beginning to understand the market. In the last few months as I show houses to buyers, I find that more and more of the listing prices are very close to market value. This makes the whole buying process simpler. The truth that the sellers are realizing is that although they may have to sell their homes for, perhaps 20 - 30% less than they may have paid a few years ago, they will get that savings back as they buy something else with the same kind of depreciated value.

As Realtors we often have buyers tell us that they are "Waiting the market out". The question I usually ask is this

Which are you waiting for,

INCREASE IN PRICES or INCREASE IN INTEREST RATES?

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Great Interview with Richard Smith about Tax Credit, Short Term future of Housing Market

Rick Schwartz (William Raveis Real Estate) — Fri, 23 Oct 2009 14:16:26 -0500

Excellent interview from Fox Business Network with Richard Smith, CEO of Realogy regarding where the housing market is headed in the short term.

He points out, correctly, that the market for home buyers is about as good as it gets. Low interest rates and high inventory make a perfect storm for buyers.

The primary focus of the inventory is regarding Smith's opinion on whether or not the $8000 1st Time Homebuyer's Tax Credit should be extended and his opinion of whether or not it WILL be extended.

The interviewers went on to ask him about the prediction of how continued increase in the number of foreclosed properties will impact the market.

Interesting and informative video.

WATCH IT HERE.

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You've heard it plenty...time is running out to take advantage of the $8,000 tax credit

Rick Schwartz (William Raveis Real Estate) — Thu, 22 Oct 2009 10:26:32 -0500

Excellent video courtesy of Plymouth and South Shore Associationof Realtors via Chris Head from William Raveis Real Estate. Time is short but it's still not too late if you get going right away.

Via Chris Head Norwell & South Shore Real Estate (William Raveis Real Estate):

Still don't understand how the tax credit works? Watch this video courtesy of the Plymouth and South Shore Association of REALTORS.

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How to Sell Your House Without a Realtor

Rick Schwartz (William Raveis Real Estate) — Tue, 13 Oct 2009 10:27:14 -0500

So you want to sell your house but do not see the value Realtor representation. Not an unusual thought - after all, lots of people do lots of things themselves like fix their cars, do handyman jobs in their house, do their own taxes, etc. If you can do something as well as a professional does I say "Go for it!"

As a Realtor I believe strongly in my own abilities and I do think I'll do a better job than you will - but that's not what this article is about. I've already written about the things that you should expect from a Super-Realtor like me to help you sell your home for the highest possible net value in the shortest amount of time with the least amount of inconvenience to you.

If unrepresented selling feels like the right choice for you, here are some tips to help you through.

RESEARCH

While you may not have access to your local Multiple Listing Service which provides Realtors with up to the minute market data on sold, active and withdrawn properties that are comparable to yours, there is a wealth of data out there for you pore over to help determine what your house can sell for.

If you know of a house that sold recently, your town land records should be able to find details on the sale. Some towns are putting their records on line so you won't have to weave your way through the town hall to look things up.

Websites like Zillow can help you also to determine the value of your house based on their algorithms which primarily use square footage and proximity of recent sales as their basis. You will have to temper these based on the unique attributes of the sold homes balanced against your own. Things like age, condition, type of heating/cooling, parking, water and waste specifics, flooring and many other specifics will be pluses and minuses that impact the right price for your home.

As for currently listed homes, you can get the basics of these from various websites to use as comparison. I would also recommend going to any open houses you might see advertised in order to check out the competition.

The key in this is to be honest with yourself -- check your ego and emotional attachment to your house at the door, so to speak. Things that have personal value to you might not mean much to prospective buyers. A wine cellar, for example might add a lot of value to you, but to someone who doesn't collect wine, it might just be considered storage.

EXPOSURE

One of the most important things about selling anything, whether it's a toy collection, a house or a football stadium, is that you have to somehow get your product into to the consciousness of your target audience.

First you have to determine who and where your target audience is. Remember that, as an unrepresented seller, your buyer pool is most likely limited to the people who have decided that they want to purchase from someone who is selling on their own. If someone has decided to engage a Realtor to help them find homes, they are most likely going to rely on that Realtor to help them find a home. Most Realtors have user friendly interfaces for their buyer clients to peruse the houses that are available and choose which ones they would like to see.

There are, for sure, buyers who are specifically looking for For Sale By Owner houses. Here's why. They know that the seller isn't paying a commission to a broker and they would like to save some money. Their logic is that they are entitled to some of the money you'll be saving in the form of a lower purchase price.

You can find those buyers, usually via two methods.

Online. There are a ton of individual websites where FSBO buyers and sellers can connect. Check them all out and post the details of your house on each of them that you like.
Signs. The second method of attraction is the FSBO sign in your front yard. Obviously this will only attract people who actually see it, so the exposure will be limited to people who drive down your street. If you live on a really busy road, many people will drive by and a certain percentage of them will be prospects for you. If you live on a cul-de-sac or dead end street your exposure will be mostly limited to people who visit your neighbors.

If you go with a sign, don't make the mistake of trying to advertise too much on your sign. Business 101 says that marketing should not be an attempt to sell your product - just a means of getting the prospects to contact you. Someone I know recently sent me this photo of a FSBO sign. I don't know if this sign was real or a joke (probably a joke) but it shows what not to put on the sign.

What you do want to put on the sign will basically be how to contact you. In good weather you may also want to put some brochures with some of the POSITIVE highlights of the house.

Third possible avenue (this will cost you some money) is to contact Real Estate brokers and offer them a commission if they bring a buyer. You can set any amount you like. Simply tell them, that you are not listing your house with a broker but you would be willing to pay a certain amount to a broker who has a buyer.

If you decide to do this, you will be paying less than you would to a listing Realtor who has to account for paying a portion to the buyer broker. Remember, as I said above, if you are saving money, your FSBO buyer will want to share the wealth with you.

You can reach out to the Realtors by finding out individual email addresses, calling them, printing fliers and bringing them to all the offices, mass faxing - or any other method you choose.

SHOWING POLICY

Decide ahead of time how you will handle requests for showings. If there is more than one adult living in your house, make a schedule as to who will be responsible to host visitors to your house. Decide what times you are willing to be available. Most buyers want to see homes in the evenings or weekends, so be sure someone is available.

One urgent safety issue. If you do have a sign in the yard and there are times when minor children will be home alone, have a family discussion and make a plan how to handle unexpected visitors knocking on the door when there is no adult at home.

QUALIFYING

OK - so people start to call you - or they just knock on your door because of the sign - what is your plan?

Is everyone welcome to tour your home or do you feel that you should find a little bit more about them before letting them into your home.

My recommendation is to prepare a little script for people who call. Something to the effect of:

“We’d love to show you our home but I’m sure you understand that we need a little information about you first. We've prepared a little questionnaire which I can fax or email to you." If they are already standing on your doorstep because they saw your sign, you'll probably have to address this a little differently.

Some of the things you want to know include the following items:

Name,
Address
Telephone #
e-mail
Do they own or rent now?
Do they have to sell something before moving
How many people in the family
Where they commute to
When are they looking to move

These last couple are critical unless you want to waste your time with people who love to look at houses but cannot afford one.

Are they financially qualified to buy your home?
Have they seen a lender yet and do they have a letter of pre-qualification or are they buying cash.

You may want to personally connect with a local bank loan officer that you can refer people to in case they don't know anyone.

OFFER PROCESS

So if someone does make an offer, what do you do next?

Will you require them to give you a deposit WITH the offer?

If they don't want to give you any money until after you settle on a price, you can suggest that they give a check to their attorney for, let's say, 1% of the offered price. Their attorney can provide you a letter certifying that he is holding the money. If your buyer is serious he'll be willing to "put something in the game" before you waste your time negotiating. An offer with nothing attached to it, is not likely to be serious.

Prepare a sheet in advance stating your terms.

How long after the price is set do you want to allow them to perform an inspection?
How many days after the inspection will they have to bring up any requested repairs?
Do you want to require that the inspection be done only by a licensed home inspector - or can they just bring their cousin who has a tall ladder?
Will you accept an offer from someone who has not sold their house yet?
How much time will you allow them to obtain a mortgage approval?

To protect yourself on these and similar issues, you probably want to have your attorney prepped for these kinds of issues so he can prepare a contract template for you to use.

NEGOTIATING

Once you and the prospective buyer are on the same page as to the process you can begin negotiating the price.

Expect a low initial offer. That's what buyers do today. They will test the waters to see what your sense of urgency or desperation is. So decide ahead of time how you will respond.

The second reason for an expected low offer is something I mentioned above. The buyer wants to share in the savings you will realize from not listing your house with a broker. He's shopping in the FSBO market for the same reason you are selling there.

Real estate fees are always completely negotiable - there is no such thing as a standard commission. If, however your buyer has the perception, for example, that the fee you WOULD HAVE paid is 5% and your house is selling for $400,000, he has it in his head that you are saving $20,000. That might not be accurate since there is no standard commission, but as we all know, perception becomes reality for many people.

In that scenario he is likely going to expect to pay $10,000 less for your house because you are selling it on your own. You will have a hard time convincing him otherwise.

Remember, you have three options each time an offer is presented:

Accept the offer
Decline the offer
Make a counter offer

Repeat the offer/counter-offer cycle as many times as necessary to come to an agreement with the buyer on price and other terms. If you do not agree, just hang on for the next prospective buyer and begin the process again.

END GAME

So, you've received and accepted an offer. Final steps:

The buyer did an inspection and was satisified with the condition of the house.
Your attorney and their attorney have created contracts which you both have signed.
The buyer has applied for a mortgage.
The lender sends an appraiser out to confirm that the sale price does not exceed the current market value.
The buyer gets his mortgage approval.
The sale of his house get completed.

Somewhere in this process you will look for and be negotiating the purchase of your next home. It's always a difficult call to know when to begin because in most cases you won't be able to complete the purchase of your next home until your current home is sold. It's a bit of a juggling act - but this is not exclusive to unrepresented sellers - it's just a part of the real estate process.

Once all of those things have been accomplished a date is set for closing and you are on the way to your next home.

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Local Business Profile: Gotham Auto Works, 9 South Street, Danbury

Rick Schwartz (William Raveis Real Estate) — Wed, 07 Oct 2009 13:45:01 -0500

GOTHAM AUTO WORKS - Auto Detailing Center

Making the world shine - one car at a time!

Got $20? Got $1,000? Gotham Auto Works has something to offer. From a simple but thorough Hand Car Wash to full Auto Detailing, pin-striping, headlight restoration or just about anything to make your car look and feel better, Gotham does it. "Anything your car needs to look better - right up to the point of needing a body shop"

Owner Kevin Awalt had been doing mobile Auto Detailing for several years when, about a year ago, he decided to open a permanent location in order to be able to serve his growing client list year round - regardless of the weather. He opened his doors in 2008 at 9 South Street in Danbury, on the Bethel Line, just by the Railroad Crossing on Great Pasture Road.

A long time Danbury resident, Kevin's love of cars is matched by his business sense. Instead of just opening his doors and waiting for business, Kevin knows that to be successful, a business must become a contributing member of the community.

As part of this effort , he has provided needed car washing supplies to a number of local fund-raisers in an effort to help make the community a little better.

One of the cool things about the shop is that because the location is a former auto dealership, instead of garage doors, the work floor is accessed through a set of glass doors, so good weather or bad weather, you can stop by and see the Gotham team in action. It's one of the cleanest shops I've ever been in.

Always looking to bring his clients the latest and greatest, Kevin recently added high-end Hüper Optik® nano-ceramic window tinting into his product line. "Expensive," Kevin adds, "but worth the money". Stop by the shop for more details.

CAMARO DAY, 2009

Special events and promotions are another way that Gotham Auto Works differentiates itself. Here is a photo from last month's Camaro Day.

For an appointment or questions reach out to Gotham Auto Works:

Telephone: 203.885.1070

E-Mail: GothamAuto@gmail.com

Follow on Twitter and Facebook

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Open House Today 1- 4 10 Flintrock Drive Danbury $479,900 - Nice Colonial

Rick Schwartz (William Raveis Real Estate) — Sun, 04 Oct 2009 09:38:48 -0500

If you're out and about today, stop by and say hello. I'll be at 10 Flintrock Drive in Danbury from 1-4.

4 BR 2.5 Bath with updated everything. Priced to sell at $479,900.

DIRECTIONS: Clapboard Ridge (Rte 39) To Flintrock. House on left.

Can't make it, give me a holler to set up a showing.

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Who Cares About the 1st Time Home Buyer's Credit?

Rick Schwartz (William Raveis Real Estate) — Sat, 03 Oct 2009 10:25:33 -0500

Well it's very clear that the $8000 First-Time Home Buyer's Credit is a success.

OK - you're not eligible for the credit because you're not a first time home buyer so why does this matter to you?

Simple answer - as the housing market gets better it helps the economy get better.

The inventory of unsold houses decreases, so the people who own them begin to move on and, in many cases, buy new houses.

The sellers are freed up to invest profits back into the economy. In addition to buying new houses, they hire moving companies, buy new furniture and new electronics. They hire decorators. They hire contractors to remodel. They spend money at home improvement stores.

The home improvement stores, the furniture stores, the electronics stores, the re-modelers and the moving companies stop laying off people and actually hire new workers.

The government spends less paying out unemployment checks.

The newly hired people put money back into the economy.

The retailers who have improved business, make more money, which they invest back into the economy by opening new stores and buying more inventory, which helps the manufacturers who sell them the inventory.

Then the manufacturers start making more money and hire more people who start earning money and - you guessed it - put it back into the economy.

So, when you hear the news about the success of the 1st Time Home Buyer's Credit - remember - it helps all of us.

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What is the difference between Appraised Value, Assessed Value, Market Value, List Price and Sale Price?

Rick Schwartz (William Raveis Real Estate) — Thu, 24 Sep 2009 11:18:59 -0500

Depending who you are talking to about the price of a house you have to be clear what numbers you are using. If you’re not both referring to the same lingo, you could each walk away from the conversation thinking different things and not knowing it. Here are some definitions that may be helpful.

Appraised Value

The Appraised Value of a property is an opinion of the value of a home prepared by an Appraiser. His opinion is based on a number of factors or methods of determining the value. He will look at things such as recent sales of similar properties, replacement cost and his own knowledge of the local marketplace. Lending institutions will typically use the appraised value in determining the total amount of money they are willing to lend when the property buyer is applying for a mortgage.

Assessed Value

The Assessed Value of a home is the value determined by the tax assessor for the local city or town. This value is used by the municipality to determine the amount of tax that the property owner must pay. The Assessed value will often be multiplied by a mil (Millage) rate to determine the actual tax. In other words if the property has an assessed value of $100,000.00 and the mil rate is 5, the tax on the property would be 5 X 100 or $500.

Market Value

The Market Value of a home is the probable price that a house will sell for if it is put on the market. It is determined by an analysis of the market (usually by a Realtor). The analysis should include looking at similar properties that have sold within recent times as well as looking at similar prices for homes currently on the market. In addition, if done properly, the analysis should also include those homes that were put on the market but did NOT sell, and were withdrawn.

List Price

The List Price of a home is a number assigned by the seller when he puts his home on the market. It is essentially what he hopes to sell his property before. It has no formal mathematical relationship to the actual market value of the home. In determining the list price, any reputable Realtor will recommend that it be very close to the Market Value if the seller wishes to sell in a timely fashion.

Sale Price

The sale price of a home is the actual price that the home most recently sold for.

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METRO NORTH RAILROAD - Great commute for residents of Northern Fairfield County, CT.

Rick Schwartz (William Raveis Real Estate) — Wed, 23 Sep 2009 15:05:17 -0500

In our Danbury, CT metro area which includes Danbury, Brookfield, Bethel, Newtown, New Fairfield, Ridgefield - all in Fairfield County, as well as New Milford which is in Litchfield County, we have a lot of transplanted New Yorkers who work in New York City.

Lots of folks also commute from this area to Southern Westchester towns such as White Plains, Yonkers, New Rochelle or Mount Vernon.

Many drive their cars to and from work, but many of them prefer to commute by rail using Metro North Railroad.

What is Metro North?

Metro North Railroad is part of the NY/NJ/CT Metropolitan Transportation Association (MTA) which operates a number of mass transit operations helping commuters in the tri-state area get to, from and around New York City.

The flagship and focal point for Metro North is Grand Central Terminal. One of the most famous rail stations in the world, Grand Central (GCT) was first constructed in the 1870s in mid-town Manhattan as an above ground train station where several different Railroad lines could provide access to their riders, eliminating the need for passengers to travel from one station to another by foot or wagon when changing lines for continued travel.

It went through several evolutions until the early 1900s when the platforms and tracks were moved underground allowing for the now familiar GCT building to be built above the platforms.

Some Grand Central Lore

GCT has been the backdrop for many memorable motion pictures throughout its history. Two of the most well known were in Alfred Hitchcock's NORTH BY NORTHWEST - Grand Central was the starting point for Jimmy Stewart's character as he escaped New York City.

Also -who could forget Lex Luthor's lair in the secret tunnels underneath Grant Central in the first SUPERMAN movie starring Christohper Reeve with Gene Hackman as Luthor. It is true, BTW, that there are subterranean levels of GCT below what is accessible to the general public.

Currently there are 57 tracks and platforms operating in Grand Central. They are about equally divided between the upper and lower level platfoms. Originally the division in levels was determined by having the primary rail lines operate on the upper and commuter lines running on the lower. In those days primary rail lines were the main mode of long distance transportation for Americans.

Coming out of GCT, the 57 tracks all merge into 4 feeder tracks which run beneath Park Avenue through Mid-Town, emerging into an elevated line just above 100th Street, which carries commuters north of the city.

Where Do The Trains Go?

The three Metro North lines running on these tracks are the Hudson Line, Harlem Line and New Haven Line. All three lines run together until the station at Fordham (The Bronx) where they split into three branches. Hudson runs parallel to the river carrying passengers as far as Poughkeepsie. For our purposes here we are going to look at the Harlem and New Haven lines.

If you are hoping to travel from Northern Fairfield County to Manhattan you have a number of options.

The New Haven line, which, oddly enough runs all the way to New Haven, has a few branches that split off along the way and turn in north, deviating from the line's general North East path.

The first branch, as you can see on the chart, splits from the main line at Stamford and continues north for 4 stops terminating in New Canaan. New Canaan is a great community in the SW part of Connecticut. The train station itself if located right in the main area of the village. Some commuters from northern parts of Stamford prefer to come to this station as an alternative to driving into downtown Stamford.

The second branch splits off the line at South Norwalk and runs to stations in Branchville (Ridgefield), Redding, Bethel and Danbury.

The number of trains running on these branches each day is less than on the main lines so commuters have to plan their commuting appropriately.

The other option for folks in the Danbury Metro area is to drive west on I84 about 8 miles into NY State and take the Harlem Line from the Southeast station. Southeast is a primary hub for trains into NYC and the ride is direct as opposed to the CT branches which mostly require a switch of trains where they connect.

Travelling by train from Southeast will become even easier soon for residents of Brookfield and New Milford CT when the extension of RTE 7 is completed in November. This extension will give residents an opportunity to travel on a straight shot from the beginning of the highway, on the Brookfield/New Milford line all the way across to NY and the Southeast station.

If you need specific information on schedules, check the Metro North Website. Generally speaking, though, the options are many based on exactly where you live.

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OPEN HOUSE SUNDAY 9/27: 1 - 4 Camelot Court, Danbury

Rick Schwartz (William Raveis Real Estate) — Tue, 22 Sep 2009 10:14:25 -0500

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Local Business Profile - Belardinelli Tire Company, Bethel CT

Rick Schwartz (William Raveis Real Estate) — Thu, 10 Sep 2009 09:54:09 -0500

BELARDINELLI TIRE COMPANY, Bethel CT.

In 1961 Tulio Belardinelli opened the doors at Belardinelli Tire Company. 48 years later, he's still there. Which, by today's standards is really saying a lot. Local residents have come to rely on Belardinelli Tire Company not just for their tires. People come to Belardinelli's for all their automotive repairs from oil changes and tune-ups to emissions inspections.

For Tulio, it's more than just a business - it's a family enterprise. Tulio's daughter, Lisa Belardinelli Taylor is the company's Business Manager working along side her husband Mike, who is General Manager.

Almost any time you drop by you'll see the members of the Belardinelli team either consulting with clients in the office or working in the bays doing the various maintenance and repairs that keep Bethel's cars running well.

Carrying on a family tradition

The third generation is also on board now with Tulio's Grandson Jared Matthews working as a Sales Associate. This multi-generational idea is good news for Bethel drivers. It means that Belardinelli Tire Company is going to be around for a while.

Belardinelli Tire Company is located at 7 Beach Street on the corner of Greenwood Avenue, just across from the Bethel Cinema.

They are open Mon - Fri from 7:30 to 5:30 and Saturday from 7:30 to 12:00. Their phone number is (203)748-0889.

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Camelot Court, Danbury. Great End Unit at 11 Mannions Lane $269,900

Rick Schwartz (William Raveis Real Estate) — Wed, 02 Sep 2009 08:09:35 -0500

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Ugliest House Principle - Will it help you make money on a home purchase?

Rick Schwartz (William Raveis Real Estate) — Mon, 31 Aug 2009 09:36:55 -0500

A little background before we start on the subject of ugly houses.

Real Estate Markets are very, very local - so this article is based on recent experiences with clients who are buying homes in Danbury, buying homes in Bethel, buying homes in Brookfield and buying homes in New Milford.

Our MLS system in Greater Fairfield County, CT, showed 11 homes the other day with price increases. There were many more than that where the prices are being reduced so I can't conclude that we are now in an appreciating market but.... although they are a bit confusing there some signs out there that we may be climbing out of the bottom.

The challenge for sellers over the last few years has been coming to grips with the fact that their home isn't worth what they would like it to be. Soon, the real challenge may be for buyers.

WAITING FOR THE PERFECT STORM - PERFECT PRICE, RATE AND HOUSE

The challenge for buyers recently, has been that they don't want to buy until we are "AT THE BOTTOM". Many people, who need to move for a variety of reasons, don't want to buy a house until they are sure that it will not continue to fall in value.

People are staying in their existing homes or apartments much longer they would probably like to because they only want to buy when their new house is going to appreciate.

IT ALL DEPENDS ON YOUR PRIORITIES

It's all about individual preference, I suppose. Shereen and I bought our condo in June of 2007.

It is now September, 2009 and the value of our home is down roughly 14%. While we'd certainly like it if the value had gone up, we can't even begin to express how much happier we are living where we do, than living where we were. It's a much nicer, newer, bigger place and we are loving it. Had we held out for the bottom, we'd still be living where we were - all stressed out, waiting to move until the market changed.

In the end, if we'd put off our move until today, more than 2 years later, we'd probably have sold for 15% less than we did, so we'd have spent 2 more years wanting to move and we wouldn't have made out any better financially.

HOW WILL WE KNOW WHEN WE HIT BOTTOM

My loyal Blogosphere fans have heard me talk about "the bottom" before, specifically that we are not going to know where it is until we can see it in our rear-view mirrors.

Having said that there are many who are saying that homes in the Danbury, Brookfield, Bethel area, might just be at the bottom. The challenge with hitting the bottom, is that the turning of the market is not going to be clear cut. It will be a series of little dips, climbs, more dips and then a steady, if slow climb.

SO - IF THE MARKET IS HEADED UP, WHAT IS THE FASTEST WAY TO GAIN EQUITY WHEN YOU BUY?

Finally - back to the topic at hand.

Lately, I've had a number of buyer clients who have asked me about the "Ugliest Home Principle". In Real Estate Lingo we call this the Principle of Progression. The counter to it is the Principle of Regression. Here's what they mean in simple terms.

The Principle of Progression says if you have the most modestly valued home in a neighborhood of higher priced homes, your value will move closer to the value of the higher priced homes. In a down market, your home will drop more slowly and in an up market your home will rise more quickly.

The Principle of Regression says that if you have the highest valued home in a neighborhood of lower priced homes, your value will move closer to the more modestly priced homes. In a down market your home will drop more quickly and in an up market your home will rise more slowly.

Before we talk about the actual financial wisdom of this, you first need to answer to yourself the following two questions.

When you find this ugly, small, low value home, willl it suit your life needs in terms of size, bathrooms, bedrooms, location etc.?
Will you be happy living in the ugliest, smallest, lowest value home in the neighborhood?

If you can honestly answer "YES", then let's look at the principles themselves and consider if they hold true.

DO THESE PRINCIPLES ACTUALLY WORK?

The answer is that they both Progression and Regression do work - but there are a couple of caveats.

First - they work best with a new home. If there is a neighborhood of 3000SF, 4BR 2.5 Bath Colonials on 1.5 acres and you build a 1500SF Hi-Ranch with 3BR 1.5 baths on .35 acreage, your house will likely appreciate faster than if you built the same one in a neighborhood of other modest hi-ranches.

If the neighborhood has been around for 20 years and are looking to buy that 1500SF Hi-Ranch that was built 15 years ago, you have to keep in mind most of the Progression has already happened. Remember, the value of the modest home gets "closer" to the value of the higher-priced homes but it they'll never be equal. It doesn't keep going up forever.

Secondly, let's assume that the "ugly" home is only 5 years old and the value has gone up - here's the catch. The person selling the home also knows about this principle and guess what - HE wants to take the increased equity. This is not a secret plan that only you know about. So you're not going to "trick" the seller into selling below market value and then magically gain the value from Progression.

WHY ARE YOU BUYING A NEW HOME IN THE FIRST PLACE?

As a Realtor this is the question I always ask my buyer clients to consider carefully before deciding what home to buy?

Most often, people are moving to accommodate some change in lifestyle.

Moving up for a growing family
Downsizing after empty nest syndrome kicks in
New job - new commute
Moving into a town that suits you better

or a hundred other reasons. The thing is you have to keep those reasons in mind. If you are choosing a house for lifestyle reasons but overlay that reason with wanting to buy a house that is going to gain equity the fastest, you will have to compromise somewhere. You can't serve two masters and get what you want.

Pick the investment avenue or pick the lifestyle avenue and move in the direction that you think is most important to you. After narrowing down the choices, you can compare the short list in terms of the "other master" and see how close you can come.

Be true and honest with yourself about why you want to move and let your Realtor help you find the home that suits your personal needs.

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New Townhouse Listing - Camelot Court, Danbury. Great End Unit - Ready to Move In

Rick Schwartz (William Raveis Real Estate) — Sat, 29 Aug 2009 11:47:47 -0500

Rick Schwartz | William Raveis Real Estate | 203 702 2932

11 Mannions Lane #1, Danbury, CT

Great End Unit Townhouse in Camelot Court. Conveniently located - near Danbury/Bethel line.

2BR/1.5BA Townhouse

offered at $269,900

Year Built	2002
Sq Footage	1,472
Bedrooms	2
Bathrooms	1 full, 1 partial
Floors	3
Parking	1 Car garage
Lot Size	Unspecified
HOA/Maint	$154 per month

DESCRIPTION

GREAT END UNIT IN CAMELOT COURT

10 Minutes to Danbury Mall. 50 Minutes to White Plains. 1 Hour to New Haven,

Better than new. Freshly painted - ready to move in.

End Unit in front of Complex. Low Common Fees.

All appliances included, Range, Built-in Microwave, Dishwasher, Refrigerator, GE Front Load Washer/Dryer

Large Bedrooms. Extra storage on lower level and in back of garage. Potential Den/FR lower level.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- Dining room	- Dishwasher	- Refrigerator
- Stove/Oven	- Microwave	- Laundry area - inside
- Balcony, Deck, or Patio

COMMUNITY FEATURES

- Garage parking

- Guest parking

OTHER SPECIAL FEATURES

- GE Front Load W/D purchased in 2008 - $2500 replacement cost

- End unit - nice view - excellent location in complex

ADDITIONAL PHOTOS

Front Door	Kitchen view to LR
Kitchen	Kitchen Close-up
Dining Room	DRoom to LR
Hall from LR to Kitchen	Living Room to Stairs
Fireplace	Looking up to LR
Master Bedroom	Second Bedroom
Second Bedroom	Side view of deck
Deck from Kitchen	Garage
Garage Storage	GE Front Load W/D

Contact info:

Rick Schwartz

William Raveis Real Estate

203 702 2932

For sale by agent/broker

Equal Opportunity Housing

Posted: Aug 29, 2009, 8:29am PDT

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Brookfield CT Route 7 Bypass to Open This Fall

Rick Schwartz (William Raveis Real Estate) — Wed, 29 Jul 2009 14:30:36 -0500

Danbury News Times indicates that the actual opening of the Bypass will be during the week of 11/16.

--------------------------------------------------------------------------------------------------------------------

My Original Post from July 09

The wait appears to be over for residents of Danbury, Bethel, Brookfield and New Milford, CT. The long-awaited extension of "Super 7" as it is known, is nearing completion and, barring any unforeseen circumstances will be opening in November, 2009.

Better Commute

The bypass which will be a 4 lane limited access highway that extends the current Route 7 Highway from it's current northern terminus at Route 202 in Brookfield - just south of the Brookfield 4 Corners - to the border with New Milford. Since a large area of "local" Route 7 in New Milford was expanded to 4 lanes over the last couple of years, this connection from the new bypass will give drivers a straight shot from the NY/CT border on I84 right to the heart of New Milford.

Easier to shop in Brookfield

In addition, the bypass is expected to ease traffic considerably on the existing local portion of Route 7 which runs through the 4 Corners, through Brookfield. This should make shopping in Brookfield even more pleasurable than it already is, since you'll be able to turn in and out of local merchants parking lots with much more ease.

Official Confirmation

I had been hearing about the impending completion "on the street" so to verify it I contacted CT State Representative David Scribner from the 107th District. Representative Scribner is the ranking Republican on the CT. General Assembly's Transportation Committee.

In an email he sent me earlier this week Mr. Scribner confirmed the scheduled completion of the bypass for this November.

He commented, "After many years and too many delays, the Route 7 Brookfield Bypass is on schedule for completion in November 2009."

Regarding the cost of the project, Representative Scribner went on to say, "Funding for this project has been split 80% Federal and 20% state, with total expenditures as of 7/1/2009 reaching $82.5 million."

He also added, "The Route 7 bypass is a critical addition to the area's transportation infrastructure that will go a long way in alleviating traffic congestion in one of Brookfield's major business districts. While the project met some hiccups along the way- I am extremely pleased that the Bypass is on track to become reality in just a few short months.

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Farm Markets in Northern Fairfield County, CT

Rick Schwartz (William Raveis Real Estate) — Wed, 29 Jul 2009 09:36:45 -0500

Those of you who know me well have to be rolling your eyes at the idea of me talking about places to buy and consume fresh produce and farm products. After all, my idea of trying to eat healthy is to have a diet Coke with my burger and fries.

As the old expression goes - "It's not what you know but who you know." So I asked my friend Alicia Ghio @Aliciaghio on Twitter, for some help in putting this article together. Alicia, is a great resource in the area for all things about eating healthy - and local. She hosts a terrific Web Show called The Natural Princess where she entertains and educates you about things that grow. It's not only good information, Alicia has a very cool style and makes learning fun.

I've been watching the episodes and I've learned so far that there are 7,000 different varieties of Apples, and that Apples can help pregnant women in a few different ways - and the stuff you can use garlic for is really amazing....So check out her shows as well her Blog LOCAL FOOD ROCKS.

Anyway - she put together the list below for us to help find out where in the area we can go to partake of some locally grown, healthy stuff.

FARMERS MARKETS

BETHEL FARMERS’ MARKET Saturdays 9 a.m. - 1 p.m. July - October Fairfield County Cooperative Extension Building Rte. 6, 67 Stony Hill Rd FMNP Authorized

DANBURY FARMERS’ MARKET Fridays 11 a.m. - 4 p.m. J

uly 10 - October 23 Kennedy Park, Main Street FMNP Authorized EBT Available

GEORGETOWN FARMERS’ MARKET Sundays 10 a.m. - 2 p.m. May 24 - November 1 Intersection of Main Street & Rte. 57

NEW MILFORD FARMERS’ MARKET Saturdays 9 a.m. - 12 p.m. May 9 - October 31 Town Green, Main Street FMNP Authorized

RIDGEFIELD FARMERS’ MARKET Fridays 3 p.m. - 7 p.m. June - October 88-90 Danbury Road www.ridgefieldfarmersmarket.org

SANDY HOOK FARMERS’ MARKET Sundays 9 a.m. - 1 p.m. June 1 - October 1 5 Glen Road

SANDY HOOK ORGANIC FARMERS’ MARKET Tuesdays 2 p.m. - 6 p.m. June 23 - Oct. 13 St. John's Church, 5 Washington Avenue EBT Available

FARMS/FARM STANDS

BABBLING BROOK FARM 16 Church Road, Sherman, CT 06784 860-354-2749

Seasons Open: July to October Hours: 24hrs/7days Honor System: Yes

Products offered: Vegetables, Pumpkins, gourds, and other fall products

BLOOMINGFIELDS FARM 9 Route 55, Sherman, CT 06784 860-354-6951 Products offered: perennials

Farm stand: Fri., Sat, & Sun. 10am-5pm Memorial Day to Labor Day

BLUE JAY ORCHARDS 125 Plumtrees Rd, Bethel, CT 06801 203-748-0119

Seasons Open: July to October, November and December Hours: Mid-Aug to Xmas. Market: 10am-5:30pm, PYO: 10am-5pm.

Products offered: Pumpkins, gourds, and other fall products, Fruit, Agritourism activities: pick-your-own, corn mazes, hayrides, etc., Specialty foods including jams, jellies, honey, maple syrup, salsas etc., Specialty products such as CT made soaps, candles, lotions etc.

FORT HILL FARM Bay State Organic Certifiers 18 Fort Hill Rd., New Milford, CT 06776 860 350-3158

Products offered: flowers, fruit, garlic, herbs, salad greens, transplants, vegetables Weston and Westport Farmers’ Markets

GARDEN OF IDEAS 647 North Salem Road, Ridgefield, CT 06877 203-431-9914

Seasons Open: April to June, July to October, November and December

Hours: Daily, 10am-4pm

Honor System: Yes

Products offered: Vegetables, Green products such as annuals, perennials, nursery/landscape stock, potted herbs, cut flowers, etc., Agritourism activities: pick-your-own, corn mazes, hayrides, etc.

HOLBROOK FARM 45 Turkey Plain Rd (Rt. 53), Bethel, CT 06801-2842 203-792-0561

Products offered: bedding plants, cheese, eggs, flowers, fruit, garlic, greenhouse, herbs, honey, milk, on-site bakery, perennials, pork, poultry, salad greens, straw, transplants, vegetables

Farm stand: year round Mon-Sat 10:00am-6:00pm.

ON THE ROCKS FARM 9 Points O’Rocks Road, Newtown, CT 06470 203-426-3868 wpieragostini@yahoo.com Products offered: Eggs, Farm Stand, Poultry, Turkeys Farm Stand: Self-serve, 9am – 5pm, 7 days a week.

SHORTTS FARM & GARDEN CENTER Bay State Organic Certifiers 52-A River Side Rd., Sandy Hook, CT 06482 203-426-9283

Products offered: bedding plants, eggs, flowers, fruit, herbs, perennials, salad greens, transplants, vegetables New Canaan & Sandy Hook Organic farmers’ markets

Farm store at farm: Apr -Oct. 7 days a week

STONE’S THROW FARM, LLC PO Box 76, Bethel, CT 06801-0076 203-798-0151

Products offered: Berries, container plants, fruit, flowers, garlic, herbs, pumpkins, salad greens, vegetables.

SULLIVAN FARM 140 Park Lane, New Milford, CT 06776 860-210-2030

Seasons Open: April to June, July to October, November and December

Hours: Mon-Sat 9:30am-6:30pm, Sun 12pm-6pm

Honor System: No

Products offered: Vegetables, Pumpkins, gourds, and other fall products, Agritourism activities: pick-your-own, corn mazes, hayrides, etc., Specialty foods including jams, jellies, honey, maple syrup, salsas etc.

TAYLOR FAMILY FARM 94 Great Plain Rd., Danbury, CT 06811 203-744-1798

Products offered: bedding plants, flowers, garlic, gourds, greenhouse, hay, herbs, honey, perennials, salad greens, transplants, vegetables Bethel & Georgetown farmer’s markets

VICTORIA TAFT'S GARDEN 94 Rte. 39 North, Sherman, CT 06784 860-350-2711

Seasons Open: April to June, July to October Hours: Open daily starting in May, 9am-6pm

Honor System: Yes

Products offered: Green products such as annuals, perennials, nursery/landscape stock, potted herbs, cut flowers, etc.

WARRUPS FARM Stellar Certification Services 51 John Read Rd., West Redding, CT 06896 203-938-9403

Products offered: Christmas trees, flowers, fruit, garlic, gourds, hay, herbs, maple candy, maple syrup, pumpkins, vegetables.

Weston and Maple Demo’s Farmers’ Market Farm stand: mid August-end of Oct, Tues-Sunday, 10:00am-6:00pm

Retail store and pick your own sales Maple syrup making demonstrations 1st three weekends in March—pick your own pumpkins & hayrides weekends in October and Columbus Day, 11-5. Group visits Tues-Fri by reservation.

WHITE SILO FARM & WINERY 32 Route 37 East, Sherman, CT 06784 860-355-0271

Seasons Open: April to June, July to October, November and December Hours: Call for hours

Honor System: Yes

Products offered: Fruit, Vegetables, Fruit Wines

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MDIA - New Truth In Lending Timelines on July 30, 2009. If you're applying for a mortgage you need to know about this

Rick Schwartz (William Raveis Real Estate) — Wed, 22 Jul 2009 14:47:56 -0500

I wrote recently about how the "mortgage approval pendulum" has been swinging as far from the 2003-2005 position as it possibly can. This has slowed down the process considerably.

Well - it's swinging even further and it could very well slow down the process even more.

It is called the Mortgage Disclosure Information Act and it will be effective on July 30, 2009. I'll give you some details below but for those of you who want the bottom line first - here's the deal.

There is a new time line going into effect, designed to give borrowers increased opportunity to read the Truth In Lending Disclosure (TIL) statement that your lender will send you.

The TIL statement is a document that lenders send to borrowers after the loan application is completed. It is not a mortgage commitment - it merely give you all the details of the loan that you applied for. provides you with information such as:

APR (Annual Percentage Rate): Not to be confused with INTEREST RATE - read the difference here
Finance Charge
Amount Financed
Total Payments

and some other information which you should read and ask about if you do not understand it.

The TIL statement is not new. What's new is the time line which provides a specific number of days from application to the sending of the statement and from your receipt of the statement until the earliest possible closing date

GOOD THING OR BAD THING?

I can guarantee that there will be a lot of debating on this issue. There's no question that it will in some cases impede the process. The idea of getting a quick closing is pretty much dead. On the other side, the argument is to make sure that borrowers have enough time to read, ask questions and understand exactly what they are agreeing to do when borrowing money.

For me - I'm not going to venture my opinion here. If you're a regular reader of mine, you'll know that I try not to waste time on things that are basically irrelevant. Like it or not, as of right now, these changes are going into effect in about a week. So, the most important thing is to know the rules and plan accordingly.

THE DETAILS

First of all this applies to loans for all owner-occupied dwellings. It applies to purchases and re-finances.

It will not apply to:

Home Equity Lines of Credit

Construction-only Loans

Bridge Loans

Reverse Mortgages

Investment Properties

So for everything else here's what to expect

* The lender must mail the TIL no later than 3 business days after the loan application is completed.

* The closing may not occur until at least 7 Days after the lender mails the TIL or 3 Days after the borrower receives it. Whichever is the LATER date will be the soonest you can close.

IS THAT IT?

Not exactly. Sometimes, between a TIL being issued and the closing date, some of the closing costs may change. This can happen for a few different reasons - attorney costs, pre-paid interest amounts and a few other things.

So here's the wrinkle

Since closing costs impact the APR, it follows that if closing costs increase above the estimate, the APR will go up. Makes sense, right?

* If the APR increases by more than .125% on a fixed loan or .25% on a variable, the lender needs to issue a new TIL statement to the lender.

* If a new TIL needs to be issued, the closing cannot occur until 6 days after it is issued or 3 days after the borrower signs it.

TOO MUCH DETAIL FOR YOU?

Not trying to make your eyes blur. It isn't necessary for you to memorize the dates and details. The net effect is that that these new rules, make planning ahead more important than ever.

Select a lender before you find a house
Get a Pre-Approval done as early as possible
Sit with the Lender and make sure he goes over all the critical dates with you so that you can set your expectations properly.

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What Is The Difference Between Interest Rate and Annual Percentage Rate (APR)

Rick Schwartz (William Raveis Real Estate) — Wed, 22 Jul 2009 12:07:44 -0500

When you are shopping for a home loan you will usually see rates quoted in two columns. The first will say INTEREST RATE and the second will say APR - which stands for Annual Percentage Rate.

What's up with that? Shouldn't the interest rate BE the Annual Percentage Rate? In a perfect world it would seem so - but, alas it is not.

The challenge is that this is one of those questions where if not explained simply, the answer can seem more confusing than the question. At the end of the day, I really believe that it's one of those great mysteries of life that "they" will never share with us - the regular people.

I do not claim to understand all the math but what I can do is explain to you the theory behind why there are two figures and how you can look at both numbers in a way that can help you make a decision about where to get your mortgage.

INTEREST RATE

This is the percentage that is used to calculate your monthly mortgage payments. So if you have a $250,000 mortgage and a rate of 5%, - the annual interest will be 5% of $250,000 or $12,500.

The $12,500 is then divided by 12 to determine the amount of interest you'll be paying monthly - about $1040.

The monthly interest payment will be added to the monthly principal payment to complete the calculation of your mortgage payment. There will likely be taxes and insurance added to that but that is not money that ultimately goes to your lender so it is not relevant for this discussion.

ANNUAL PERCENTAGE RATE

This is the "Cost " of your mortgage calculated as an annual figure. It includes not only the interest, but also points and some of your closing costs. So it will be likely always be higher than the interest rate This number is the true cost of your loan.

SO - WHY DO I CARE AND HOW DO I USE THIS INFORMATION?

What you need to look for when comparing loans is the "spread" between the two figures.

LOAN #1: 5% Interest Rate with an APR of 5.25%

LOAN #2 5% Interest Rate with an APR of 5.65%

In Loan 1 the spread is .25% In Loan 2 the spread is .65% Loan two is a more expensive loan.

DOES THIS MEAN I CHOOSE LENDER 1?

There are many different factors you may use when choosing a lender. This is just one of them. It's one of my general life rules that the least expensive product does not make it the best. Understanding what something is costing you, though is critical.

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Loan Modifications for People Who Are NOT Behind on Payments

Rick Schwartz (William Raveis Real Estate) — Fri, 17 Jul 2009 09:39:36 -0500

We hear a lot in the news about programs to help homeowners who have fallen behind on their mortgages. Sometimes it's from job loss, sometimes it's because the adjustable loan just adjusted and the payment has gone up dramatically. Believe it or not, the banks do not want to own any more foreclosures. They'd much prefer to have homeowners stay in their homes and make the payments.

Some banks are offering Loan Modifications to help homeowners back in line - either in interest or principal adjustments. The thing is that most of what you hear about is debt relief for folks that are imminently awaiting foreclosure

What about the multitude of people who are "upside down" (the value of the home has depreciated to less than what they owe) but are diligently making their payments each month? Is there any help for these folks? Can you get relief on your mortgage even if you pay on time? It only seems fair, right? Why should you not be able to avail yourself of assistance because you haven't fallen behind? Is there such a program?

The answer is a definitive "maybe!" - and might be worth checking out. There are a few avenues that might prove fruitful. Both of these can researched by contacting your lender.

Directly from your Lender

If your mortgage is backed by Fannie Mae or Freddie Mac, there is a program available to lenders enabling them to work with borrowers on loan modifications that will bring the principal amount of the mortgage within the confines of the current market value of the home. It is up to the individual lenders to utilize this program or not and to set the basic eligibility. There is no assurance that your lender will do this but - some are doing it and it could be worth your time to contact your lender to find out how this might apply to you.

Another option is PMI

The second option that could come into play depends on whether or not you have PMI (Private Mortgage Insurance) on your loan. It also depends on which PMI company your lender uses. Some PMI companies are offering homeowners a program that will help them out in a situation where they owe more than the value of their home. There are a few different ways they can help but - again, it will depend on the specific PMI company that you have. You can find this information out by contacting your lender.

Federal Government Assistance

There may also be some relief available from the Federal Government as part of the "Road To Stability" plan. You can find out more about this by going to their website.

Please keep in mind that eligibility for any of these assistance programs can only be determined at the individual level. It never hurts to investigate though.

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