Legislative Update

Business Roundtable Submits Recommendations to Help Revive the Housing Market

Richard A. Smith, president and CEO of Realogy, is the chair of the Business Roundtable’s Housing Working Group, which recently submitted the following recommendations to the White House and Congress to stimulate the U.S. housing market:

➢    Keep mortgage interest rates at historically low levels (below 5%) for at least one year;
➢    Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10% of the purchase price of the home or $8,000 to a higher limit of either 10% or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
➢    Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
➢    Make permanent the current temporary conforming loan limits; and
➢    Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

Housing Industry Associations Endorse Business Roundtable Proposal

“The National Association of Realtors® (NAR) and our 1.2 million members applaud the Business Roundtable for its sound policy recommendations put forth to reinvigorate our nation’s housing market. The proposal they announced today is consistent with the recommendations NAR has advocated and reflects the critical need to continue efforts to bring stability to the housing market.”

– Charles McMillan, president, National Association of Realtors®, “Realtors® Join Business Roundtable in Calling for Renewed Focus on Housing Stabilization,” Yahoo Finance, June 10, 2009.

“The National Association of Home Builders (NAHB) supports the Business Roundtable’s efforts to promote policies that will stimulate housing demand. NAHB looks forward to working with all interested parties in the business community, on Capitol Hill and in the Obama Administration to foster new ideas and policies that will help to get housing and the economy back on track, particularly at a time when the recovery is facing a number of significant challenges.”

– Joe Robson, NAHB chairman, “Statement from NAHB Chairman Joe Robson on Enhancing the Home Buyer Tax Credit,” Yahoo Finance, June 11, 2009.

“Stimulating the housing market is one of the best ways Congress can help accelerate the recovery of our national economy.  Offering $15,000 to potential homebuyers is a powerful incentive that I believe will jumpstart the housing market. The current $8,000 credit for first-time buyers has had a positive effect on the housing market this year. Increasing the amount and expanding the benefit to include all homebuyers will have an even larger impact in spurring the housing market and stabilizing the economy.”

– David G. Kittle, CMB, Chairman of the Mortgage Bankers Association, “MBA Supports Proposal for $15,000 Tax Credit for All Home Buyers,” RISMedia, June 12, 2009.

Bill to Increase Homebuyer Tax Credit Introduced to Senate

Drawing on more than three decades of experience in the real estate industry, U.S. Senator Johnny Isakson, (R-Ga.), introduced legislation to invigorate housing demand and to boost the economy by expanding the first-time homebuyer tax credit passed by Congress earlier this year.  Specifically, Isakson’s legislation would:

➢    Increase the maximum amount of the credit from $8,000 to $15,000 and expand the current tax credit so that it applies to any buyer of any home, not just first-time buyers

➢    Eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit so that there is no income limit for eligibility

➢    Extend the tax credit for one year from date of enactment and would still allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010.

– “Isakson Continues Push to Stimulate Housing Market,” The Daily Citizen (Ga.), June 10, 2009.

Bill to Spur Home Sales Introduced to House of Representatives

Saying that it was critical to spur home sales because of their impact on our nation’s economy, U.S. Rep. Howard Coble (R-NC) announced that he has introduced legislation to:

➢    Extend the [homebuyer] tax credit through January 1, 2011 (currently, the credit only applies to purchases made between April 8, 2008 and December 1, 2009)

➢    Repeal of the limitation based on modified gross income (currently, the credit would “phase out” for singles making more than $75,000 and couples making more than $150,000); income limitations aren’t necessary if the credit is capped at $8,000

➢    Extend waiver of the recapture provision.  Under current law, the tax credit for purchases made in 2009 does not have to be paid back unless the homeowner sells or ceases to use the property as a principal residence within 36 months of purchase.  Extending this waiver ensures that the credit isn’t treated as an interest-free loan, but still requires responsible homeownership

– “Coble Introduces Bill to Spur Home Sales,” The Daily Citizen (Ga.), June 10, 2009.

Chief Economist at Moody’s Economy.com: “Expand the Housing Tax Credit”

“Based on simulations of the Moody’s Economy.com macro model, the expanded tax credit, if extended through the end of 2010, would increase 2010 sales by almost 600,000. This in turn would generate $33 billion in additional real GDP, lifting growth in 2010 by about 25 basis points. That would translate into $56,000 in real GDP generated for each additional home sale. Benefits would flow to a range of hard-pressed industries, including mortgage lenders, real estate firms, insurance companies, property maintenance and repair businesses, and building supply retailers.”

– Mark Zandi, chief economist, Moody’s Economy.com, “Expand the Housing Tax Credit,” Moody’s Economy.com, June 16, 2009.

Tips for First-Time Home Buyers in North Conway NH

Like any other life changing experience, buying a home for the first time can seem like an incredible challenge. However, once first-time homebuyers are able to organize their priorities, conduct some useful research and interact with a trusted North Conway NH real estate agent, confusion can quickly turn into excitement. Keeping in mind some of the basic tips outlined below can help pave the way to a successful first-time home buying experience.

Prior to researching the Mt. Washington Valley real estate market and hunting for mortgages, you will need to analyze your family’s goals and priorities. Take some time to reflect and determine if it is the right time to purchase your first home. You may also want to ask yourself where you want to be in the next few years and consider how purchasing a home for the first time fits into your family’s long-term goals.

Once you determine you are ready to purchase your first home, you may want to research the details of the home buying process. Though you may not understand everything you read, any insight you gain will help you avoid unwanted headaches further along in the process.

The next important step in the home buying process may seem obvious but is often overlooked during the excitement of purchasing a first home. Very simply, as a first-time home buyer, you need to determine what you can afford. Too often, first-time home buyers underestimate or simply miscalculate the costs of owning a home. Before searching for your first home, ask yourself if your income is both adequate and reliable enough to afford mortgage payments.

There are also upfront costs to consider when buying a home. Though the amount required to cover a down payment and possible closing costs will vary, there are usually some out of pocket expenses to incur when closing on your first home. Being prepared for these expenses, as well as any unexpected costs that occur after you have moved in will help your transition into home ownership.

After determining what your family can comfortably afford, you should start shopping around – for both homes and mortgages. By this time, you should have a good idea of what types of amenities you are looking for in a first home and what neighborhoods best match your family’s needs. As your search advances, you may want to attend some open houses in your neighborhoods of interest. Even if you don’t find the perfect home right away, being active in the market will give you a better chance of finding the best fit for your family.

While looking at homes, you may also want to see what types of mortgages are available to your family. If you are able to determine what rates you qualify for and estimate your mortgage payment before actively bidding on a home, you can narrow down your price range and make a confident offer when the time comes.

Though following the previous steps can help a first-time home buyer find the right home, buyers never need to go it alone. After conducting your own research, it is a good idea to find an agent you can trust. Besides being able to assist you when searching for the right home, a reliable real estate agent can help guide you through the home buying process.

If you are patient with the home buying process and do your homework before purchasing your first home, your diligence will most likely lead you to the perfect home for your family.

How do I hang my skateboard deck?

That was the question that launched Modock Millworks of Madison, NH into the skateboard world just a few months ago.

For those of you who don’t even understand the question (like this real estate blogger who hasn’t been on a skateboard for over 30 years…), skateboarders who have collector skateboards (“decks”) or just have a deck that means something to them, like to display them. Okay, that makes sense…we display lots of stuff we are into, why not a skateboard? This task isn’t as simple as it sounds though-the boards are large and curved and you don’t want to damage the board (or the wall!) so using a picture frame holder or a big nail just isn’t going to cut it. So what CAN you use? It turns out the options were pretty limited.

Enter Modock Millworks and the craftsmanship of woodworker extraordinaire Lincoln Graves and…the “Skate Puck” was born.

The beauty is in it’s simplicity. It is small with a low profile (thus the reference to a “hockey puck”) but designed to mount the skateboard at a variety of angles–all without being shown. The skate puck is also eco-friendly and made from sustainably harvested wood in earth friendly packaging and the company is dedicated to recycling in all aspects of the process-from manufacturing to shipping.

The price is very reasonable, less than a movie on iTunes-starting at just $10.99. Wholesale orders are also available. Check out the Skate Puck Store or visit their blog.

For more Skate Puck information check out the video below:

Entrepreneurship is alive and well in the North Conway NH area! Start your own small business in the Mt. Washington Valley or just move here and enjoy all the White Mountains of New Hampshire have to offer!

The staff at Coldwell Banker Wright Realty writes select articles about important topics related to real estate, local events and area news. For more information about buying a home or selling your current property, visit WrightRealty.com today!

The Official North Conway NH Real Estate Website!

For more than 30 years we have served the real estate needs
of our neighbors and customers in:

Albany NH | Bartlett, NH | Brownfield Maine | Conway NH | Denmark Maine
Eaton NH | Effingham NH | Freedom NH | Fryeburg Maine | Gorham NH
Hales Location NH | Harts Location NH | Jackson NH | Madison NH
Ossipee NH | Conway NH | North Conway NH

Today May 4th, Coldwell Banker^® will again change the face of the real estate home buying/selling experience with the launch of Coldwell Banker On Location.  By partnering with YouTube, Coldwell Banker will ultimately allow consumers to access 1000’s of videos covering a wide range of topics including home listings, neighborhood features, local market conditions and trends, tips for homebuyers and sellers and much, much more.

Consumers are looking for more in their real estate search:

Coldwell Banker has been ahead of the video curve in real estate for years.  The brand was the first to feature streaming video on www.coldwellbanker.com and is still the leader today.  Since 2005 when the Coldwell Banker video engine was launched, consumers have become more and more accepting of video.  In fact, today, video is a staple on the Web.  YouTube is now the second largest search engine in the world behind its parent Google.  Yahoo is third.  Consumers are using YouTube for much more than entertainment.  They are looking for content to assist with their home buying/selling needs and we have the expertise to assist them.

Go to www.youtube.com/coldwellbanker to visit our NEW channel!

Protecting Your Privacy While Your Home is on The Market

If your home is on the market, you have probably already taken great care in cleaning the interior and making necessary renovations that could help attract prospective buyers. However, before your home is shown to any buyers or agents, you should consider performing a few tasks to help protect your privacy. Not only should you try to remove personal items from tabletops or counters, but it is also wise to remember that potential buyers will open closets, cabinets and built-in drawers as they assess the property. To protect your privacy and prevent prospective buyers from forming any biases against you, you may want to follow these four simple steps before showing your home.

1. Hide your mail

When dealing with your mail, you should either remove it from your home or place it where it cannot be found. If prospective homebuyers spot collection notices or excessive credit card bills in plain sight, they might immediately assume that you are in debt and need to sell your home quickly. Furthermore, as no one wants strangers to read any of their personal materials, you should try to conceal all of your mail – down to the last furniture catalog.

2. Take down photos and diplomas

While some home sellers feel that such personal documents could add an atmosphere of coziness to their property, you may want to consider clearing the walls. Following this simple step could help prevent any type of bias from prospective homebuyers. For instance, home sellers with recent diplomas might be perceived as deep in debt and willing to sell at any price. Likewise, wedding photos can reveal the homeowner’s religion, which could influence certain buyers.

3. Clean the closets and drawers

If you have ever been to an open house or toured a home for sale, you can probably understand the desire to dig around. In most cases, prospective homebuyers simply open closets and cabinets to inspect the space or make judgments about the construction of the home. While most people who view your home will not try to snoop in your personal belongings, try to pack away anything that could tell an unwanted story about your life.

You may want to clear out all drawers and closets entirely before the home is shown to buyers. After your personal belongings have been removed from the home or carefully packed away, work with your agent to stage closets and large cabinets. By replacing your own belongings with examples of how the home can be utilized, you will take the focus off yourself and help prospective buyers visualize themselves in your home.

4. Turn down the answering machine

This final step is probably the most overlooked by home sellers. Just as you can not anticipate what arrives in the mail each day, you cannot predict when you might receive an unwanted phone call. If you are engaged in an open house or private viewing, you certainly don’t want a prospective buyer to overhear a message from a collection agency or credit card company. Furthermore, as you are in the process of selling a home (and possibly buying another), you don’t want buyers to know anything about your personal business. Hence, before any prospective buyers enter your home, you may want to mute your answering machine to prevent any uncomfortable exchanges.

In conclusion, when you are ready to show your home to prospective buyers, try to remove anything that might drive a buyer away or create an unwanted bias. Whether it’s as simple as removing your personal mail or staging the closets of your home’s bedrooms, a bit of work can not only protect your privacy but can potentially help sell your home.

The staff at Coldwell Banker Wright Realty writes select articles about important topics related to real estate. For more information about buying a home or selling your current property, visit WrightRealty.com today!

The Official North Conway NH Real Estate Website!

For more than 30 years we have served the real estate needs
of our neighbors and customers in:

Albany NH | Bartlett, NH | Brownfield Maine | Conway NH | Denmark Maine
Eaton NH | Effingham NH | Freedom NH | Fryeburg Maine | Gorham NH
Hales Location NH | Harts Location NH | Jackson NH | Madison NH
Ossipee NH | Conway NH | North Conway NH

We were somewhat surprised that sales of existing homes fell 5.3% to an annual rate of 4.49 million in January, from 4.74 million in December. Much media lamenting was made of the fact that 45% of homes resold in January were short sales or foreclosures. But real estate is local. According to the NAR, these distressed sales accounted for four in five transactions in Santa Ana, Calif., but only one in five in Chicago. Short shrift was also given to the fact that the number of unsold homes on the market fell almost 3% last month to 3.6 million, the lowest inventory level in two years. A reduction in inventory of homes for sale will eventually result in rising property values – a very good thing.

As for new home sales, we weren’t the least bit surprised. We knew sales would post lower, and they did, falling 10% to a seasonally adjusted annual rate of 309,000 in January from a revised 344,000 in December. It was the lowest level since the Census Bureau began keeping records in 1963. The decline in new home sales comes as builders continue to scale back construction and work off inventory. They appear to be making headway on the inventory front, given that inventory levels have fallen to 340,000 units, down from 357,000 at the end of December. And, as stated above, a reduction in inventory of homes for sale (whether new or resale) will eventually result in rising property values – and that’s something we all want.

Looking ahead, economists predict that consumers and businesses may continue cutting back on purchases, which could make the first six months of this year rocky. How do they know that? Many are basing their prognostications on fourth-quarter gross domestic product numbers, which one media outlet noted “contracted at a staggering 6.2% pace at the end of 2008.” We don’t know if the contraction in GDP was “staggering,” but it’s worth remembering that last quarter’s numbers have no predictive power for this quarter, much less this year.

We’re all familiar with the bromide “talk is cheap.” Maybe it’s not so cheap, if we are talking ourselves into a state of despair. People everywhere are likening the current economic environment to the Great Depression, which followed the October 1929 stock market crash and lasted until the United States entered World War II.

Revisiting the Great Depression might seem a logical consequence of our economic situation, but the constant comparison is contributing to current pessimism because too many of us are latching onto the Great Depression as a model of expectations. This latching on, in turn, is reducing consumers’ willingness to spend and businesses’ willingness to expand.

There’s no reason to go down that road. Yes, unemployment is approaching 8%. Yes, housing prices have fallen off a cliff in some parts of the country (but in fewer parts then most would expect). Yes, the economy has contracted (operative term being “has contracted”). But there are many bright spots as well: We have little inflation, a very resilient economy, rising wage rates (it’s true), 30-year fixed-rate mortgages at 5%, and unbelievable values in the housing market.

Yes, we can talk ourselves miserable, but why should we do that? This country offers too many positives and too much potential. Besides, isn’t life just a little too short to be unnecessarily miserable?

The New Hampshire Department of Transportation announced that bridge repairs are scheduled to begin Wednesday. March 11th in Conway on the River Road Bridge that runs over the Saco River.

The bridge and the rail work is expected to take four months to complete and will require single lane traffic controlled by a temporary signal.Motorists are urged to use caution when driving through the work zone and to use alternate routes if possible.

Low rates are not always what they seem to be

If you are rate-shopping, you’ll find that many mortgage lenders are quoting low rates to get your attention, and your business. But the initial rate you are quoted one day may not turn out to be the rate you end up with.  An advertised rate or a telephone quote is often the lowest possible rate available, assuming the client will pay upfront fees or “points” to acquire that low rate. If you are comparing rates, you should also compare total finance charges that accompany rates.

Understanding Points

A “point” is considered pre-paid interest; a fee equal to 1% of the loan amount. For example, if you pay one point for a $150,000 loan, the cost will be $1,500. If you pay two points, your upfront cost will be $3,000. The more points you pay, the lower your rate will be. So you can buy down a mortgage rate if you have some cash to pay at closing time.  With this in mind, you need to consider points when comparing interest rates.

Other Fees

You also should investigate other fees that may be involved, such as origination fees, application fees, closing costs, and any other fees associated with the loan. Also, find out what the APR is. The Annual Percentage Rate is higher than the interest rate because it is the total finance charge on the loan amount, spread out over the length of the loan.

Rate Shopping

If you are shopping around for rates, be sure to call all the lenders on the same day, because rates usually change daily. Ask the rate for the same type of loan, the same term, the same amount of points to be paid, and the same lock-in period. And remember, if something sounds too good to be true, it probably is.

Good Faith Estimate

A Good Faith Estimate is a written commitment by the lender to provide a break-down of the rates and fees associated with the loan rate you have been quoted.  Be sure the lender is willing to provide you with this, and review it carefully.

Questions to Ask

How long is the quoted rate good for?
When can you lock in, upon application or approval?
After the rate is locked-in, how long is it effective?
How many points are involved?
Is there an origination fee?
What are the closing costs?
Are there any other fees or charges involved in this loan?
What is the APR (Annual Percentage Rate) on this loan?
Could I please have a Good Faith Estimate?

Other Factors Involved

When you have a discussion with a loan officer or mortgage banker, there are other things he or she should talk with you about before a loan program and rate is determined. Here are a few of the factors that should be discussed:

• Your current financial situation
• Your credit history
• Down payment amount
• Term/ length of loan (10, 15, 30 year)
• Number of points to be paid
• Possibility of improving finances
• Type of home you desire
• Mortgage insurance
• Your personal goals, preferences. plans, and concerns.

There’s more to consider than rate alone. The programs & possibilities offered by a lender are important. And many consumers feel the most important factor is finding a loan officer they trust and believe in.

Thanks to Randy Guida of Residential Mortgage Services for providing this information to share with our visitors. Randt can be reached at 603.356.3496 ext 401 or by cell phone at 603.662.6702

If you are considering buying a home in New Hampshire, you are making the right move according to NH Business Magazine…well, and according to us too! We love the area and are proud to see the rankings simply confirm what we already knew.

Favorable Tax Climate: National Rank: #1 New England Rank: #1

Standard of Living: National Rank: #1        New England Rank: #1

Most Livable State: National Rank: #1        New England Rank: #1

Healthiest State: National Rank: #1            New England Rank: #1

Safest State: National Rank: #2                  New England Rank: #1

Visit our local North Conway NH Chamber of Commerce to learn more about all the events and activities of the area and when you are ready to start your search for real estate in the white mountains use our easy to navigate website.