Audrey Edelman Ithaca Real Estate

June 29, 2007
Q: My house has been on the market since the spring, and we haven’t received any offers yet. Should we lower the price?

A: If your house has been on the market for more than two to three weeks at this time of year, I would strongly suggest that you adjust the price. Especially in the Ithaca area, most buyers want to be in their homes by mid- to late August. When you consider that it typically takes six to eight weeks to close once your home has gone under contract, you can clearly understand why it is important to adjust your price now rather than wait until after the season when most people have already purchased their homes.

July 13, 2007
Q: I keep hearing that the housing market is in a slump. Should I delay buying my first home?

A: Housing markets are particular to individual communities. Although we are constantly bombarded with negative national real estate reports, in the Ithaca area, we have been fortunate not to have followed the extreme downward trends that much of the nation is facing. Last year, local prices increased by 6% from te year before–not the extreme appreciation we enjoyed two or three years ago, but certainly stable. If you can qualify for a mortgage, go forward and enjoy the American dream.

July 27, 2007
Q: A few weeks ago, you suggested that this is the time of year to get serious about the asking price for my house. I took your advice and lowered the price. I have had a few showings – but still, no offer. Is there anything else besides lowering the price that I can do to sell my house?

A: Sure! The marketing of a home starts from the curb, while buyers are still in the car. Remember, it takes only eight seconds from fi rst glance to form an opinion. Make sure your garage door is closed and that there’s no debris on the driveway, lawn, and path to the front door. Paint your front door, if necessary, and provide a nice new doormat. If your home doesn’t have beautiful fl owers, buy some potted geraniums or a pot teeming with petunias. As you enter your home, try to observe it through a visitor’s eyes – or ask your Realtor or a friend to do this for you. Make sure that everything is neat and fresh – a little bit of “eye candy” for the potential buyer. Good luck!

August 10, 2007
Q: My family has outgrown our first house and we’d like to move to a larger home in Ithaca. Should we buy our new home first or think about selling the home we’re living in now?

A: Some people think that purchasing their first house is the most difficult step of home ownership. For most individuals, however, orchestrating a sell-buy is much more complicated. You probably will want some idea of how much your present house will fetch in today’s Ithaca market and what it will cost you to “move up” to the home of your dreams. I recommend calling your Realtor and asking for a CMA (Competitive Market Analysis) of the home you’re contemplating selling. At the same time, give your Realtor the parameters for the kind of home you’d like to purchase. Find out how much you will need for a down payment and closing costs and how much of a monthly payment you will need to achieve your goal. Once you are satisfied, the next step would be to get your home on the market and plan to purchase after your home goes under contract. Best of luck to you.

August 24, 2007
Q: We are expecting our third child in the spring and will need more room. Would it be better to add on and renovate or plan to sell and buy a larger home?

A: It depends. If you are in a neighborhood where other homes are more expensive than yours, you’d be pretty safe to make improvements. If, on the other hand, houses are of equal or lesser value than yours, you could be over-appreciating your home. Also, keep in mind that renovation projects frequently exceed their original budget and/or time frame. You might want to contact your Realtor now to get an idea of what the difference would be between trading your present house for a home that will meet your future needs. Good luck to you and your growing family!

September 7, 2007
Q: My house has been on the market for almost four months. I foolishly rejected two offers, thinking that a better one would come along. What now?

A: First of all, you’re not alone. Many sellers have high expectations and are disappointed by what the market will actually fetch for their house. When one receives an offer, it may be best to compromise on price and terms because one can never count on subsequent offers. That being said, I would suggest that you consult with your Realtor to come up with an adjusted, realistic price. You may be encouraged to know that last year there was a surge in the number of houses that went under contract in October. Good luck, and I hope you sell in the very near future.

September 21, 2007
Q: I had been looking for a house all summer. When I couldn’t find anything I liked, I rented an apartment. Now, of course, my dream home is on the market! I’d love to put in an offer, but I don’t know what to do about the lease. Do you have any suggestions?

A: It sounds as if your timing was just a little bit off. As you probably know, your lease is a legal, binding contract that can’t be ignored. If your landlord doesn’t have a back-up party to rent your unit, check your lease to determine if subletting is an option. If so, you may want to consider discounting the rent for the term of the lease to increase the possibility of finding a tenant. If you’re successful, you may be able to move forward with your puchase while honoring your lease. Good luck!

October 5, 2007
Q: I’m confused! My Realtor is supposed to be on my side, yet he says I should consider increasing my offer on a house I recently bid on. Isn’t it his job to get me the house I want for the least amount of money?

A: Good question! Your Realtor is most probably representing you as a Buyer’s Agent and, as such, will certainly be negotiating for you in your best interests. A Buyers Agent’s first obligation is to help his clients succeed in purchasing the house of their choice – so if this is the house you want and negotiations have gone as far as they can go regarding the price, your Realtor would be remiss not to advise you that a successful bid may come at a higher price. You then need to decide whether you’re willing to spend that amount. I hope this helps you.

October 19, 2007
Q: I am a fairly new resident to Ithaca and I’d like to purchase a home, but I am nervous that real estate is too precarious an investment at this time. What do you think?

A: If you’ve been hearing the dismal national news regarding real estate, no wonder you are concerned! The Ithaca area is, however, defying national trends. We do not have much new construction in this area, and this is keeping our inventory of homes more stable. With education being our main industry and Cornell, Ithaca College and Tompkins Cortland Community College all in growth patterns, our future is looking positive. I would take advantage of the current moderate interest rates and feel secure about a local housing investment.

November 2, 2007
Q: I have been renting a nice apartment in Ithaca for the past four years. Recently my rent increased to $1,200 a month. My friend owns a home, and he pays $1,400 a month for principal, interest, taxes and insurance. He claims that, in reality, he is paying less than I do for my rent. I don’t understand how that is possible. Can you explain?

A: Sure, it’s actually easy to explain. People who own their own home get a tax benefit from the property taxes they pay, as well as the interest they pay on their mortgage. In other words, out of your friend’s $1,400 monthly payment, he may save close to $400 in taxes. Therefore, your friend’s net expense after taxes can, in fact, be lower than your monthly rent payment.

November 16, 2007
Q: I heard you appeared on the Fox Business News TV show recently. Can you tell me what you discussed?

A: Certainly. Fox Business News picked up a recent story in The New York Times, “Collegetowns Escape the Pain,” in which our General Manager, Dick Patterson, was quoted. The TV interviewer asked me to explain how Ithaca has been affected by the subprime crisis. I told him that nationally, Ithaca heads the list of metropolitan areas with the smallest percentage of risky subprime loans. I further explained that Ithaca tends to be a financially conservative community and that we rely heavily on local lending institutions where we know our mortgage lending officers. These are people who may be our neighbors, friends, or the parents of our children’s friends, with whom we are likely to interact socially on grocery lines, on The Commons, etc. I believe that our local lenders are more mindful of what their borrowers can afford than larger lending institutions without a stake in our community.

November 30, 2007
Q: I am from the Boston area, where the weekends are filled with open houses. In Ithaca the number of open houses is comparatively small. Why is that?

A: Customs do vary from community to community. In this area, buyers tend to want a more structured approach to purchasing a home and more comprehensive knowledge of the market. Therefore, prospective buyers tend to choose a Realtor earlier rather than later and as a result are able to view all the available homes, not just those held open.