Real Symantics

Obama the Fighter!

2011-09-27T08:56:00.000-04:00

Has he finally realized that the only way he's going to get anything accomlished is by fighting? Being conciliatory only works if you are dealing with parties willing to do the same. Compromise is always possible but only worthwhile when both sides give. Anything else is appeasement.

Cut Expenses AND Increase Revenue. Wow, There's a Novel Approach

2011-09-20T17:02:00.000-04:00

Why the political uproar over President Obama's plan to increase taxes coupled with decreases in spending? Is this something new? Hasn't everyone who has tried to balance a budget wrestled with both sides of the ledger: increase income and decrease expenditures.

Isn't that really the only sane approach to any budgetary situation? Oh, wait. I forgot. We're dealing with a American politics. There's no room for sanity..

Are We Still "America the Beautiful" After 9-11?

2011-09-13T13:01:00.003-04:00

My son worked in New York City on 9/11/01. He didn't live in Manhattan. Hadn't yet left for work and fortunately wasn't injured when the Twin Towers fell. He was the one who called us to tell us to turn on the tv and see what was happening. But I can't help but think that part of him was destroyed.

My son had interviewed for jobs in the Twin Towers He didn't get them and, as a result, survived. He had other jobs in "the city". Good jobs. Was doing well, by the standards we usually apply. But after the attacks, he asked himself, "Why am I doing this?" He said, I" am working my ass off so I can get a job like those people in the Twin Towers. What's the point?"

Within a year of the attacks, he left the US and hasn't returned. He's living in Southeast Asia and I doubt that he will return. He seems happy. I hate it because I miss him, but it's his life. If he's happy that's the end of that discussion, but what about the rest of us? Have more of us come to the same conclusion and left the US, at least in spirit.

We are all too well aware of the number of people killed and the terrible losses sustained. We know it has changed our country. Police powers have been greatly expanded and they will never be curtailed. None of us know - or are allowed to know - whether we are being investigated or are suspected of illegal behavior. We don't know whether our conversations or emails are being monitored.

The land of the free really isn't so free anymore. And we accept it because the alternative is too unthinkable.

But there are other changes that were brought by those attacks.

The World Trade Center symbolized the power of capital and the strength of our economy. They were targeted for just these reasons. Is it really a coincidence that our economy has gone down so dramatically since 9/11? How much of the mortgage crisis was triggered by loan officers and mortgage brokers with a WTF attitude. We wound up invading Iraq based on presence of the WMDs that were never found. A pre-9/11 version of America would have condemned such an action. We started the attacks in Afghanistan as a police action to rout out terrorist camps and find Osama Bin Laden, but soon became bogged down in a quagmire where our closest ally turned out to be harboring the target. We now condone torture and assassination as a tool of foreign policy.

How much of what we are now experiencing is the result of that WTF attitude. Are too many of us saying, "what's the point?"

The American Cancer Society - 2010 Relay For Life of UAlbany:

2010-03-17T11:04:00.002-04:00

The American Cancer Society - 2010 Relay For Life of UAlbany:

Everyone gets hit up for donations, but the American Cancer Society is deserving and you have to respect the people who try so hard to help them. My wife and I are thankful.

The Campaigns Against.....

2010-03-16T01:00:00.001-04:00

Lots of media campaigns against EVERYTHING!

The insurance companies are pulling out all the stops against health care reform. The latest ads are from the U.S. Chamber of Commerce. Why? Does anyone really think that health care doesn't need to be improved and that costs need to be controlled? Sarah Palin, the Queen of No (or should I saw of "nah") admitted that she and her family went to Canada for health care. Rush Limbaugh threatened to go to Costa Rico if the health care bill passed. Costa Rico has socialized medicine.

Banking regulations? The banks are going to go all out to fight it. But so long as lenders are rewarded for the number and amount of loans that they generate, all the incentives push the system towards riskier loans that are ultimately bad for too many consumers.

The mortgage crisis that has led to record numbers of foreclosures and threatened to destroy our economy was fueled by mortgage loans that should never have been approved for people who couldn't afford it. The bankers and conservative talk radio hosts shout that it was the borrowers' own fault. They couldn't afford the loans and then cried when they couldn't keep their homes.

Turn down the volume and think about this for a while. How many people do you know who would knowingly risk their largest investment, cause their family to be ousted from their home, their kids to have to change schools and court financial ruin.

So what caused it? And what, if anything, is needed to fix it? If you have ideas about this, leave comments. I'll continue this in my next post.

The Edith Principal: Cash Income and Credit

2010-03-08T18:06:00.011-05:00

You're self employed. You pay your bills on time and live OK. You pay a lot of your bills with money orders or cash.. Your pay stubs may be non-existant or may not tell the whole story. Now, you want to buy a car or a house. The credit union or bank asks you for income verification and copies of tax returns.

Getting the picture??

If you are a law abiding person, your tax returns will show your correct income and this will help, but you will still need records that support the information on the returns.

Keep records of all cash received and all expenditures.

How detailed? ? Assume your wife or husband (or an IRS agent) is going to ask you where the money went and act accordingly.

If your tax returns don't tell the complete story, - aside from all issues of legality and without minimizing these issues- you have a problem! If you've been taking your income "under the table", it is not only illegal, it is ultimately self defeating.

Suggestion: Talk to a lawyer and get your act together so that your records reflect your true circumstances. You can't "save" money on your taxes and expect to use unreported income to support a loan.

The moral - you can't have your cake and Edith too.

Cost v. Value Survey: What Does it Mean?

2010-03-04T20:27:00.002-05:00

The most recent Cost vs. Value survey, prepared annually by Remodeling Magazine, shows that nationally, only the replacement of the front entry door netted a return in excess of cost. The next best investments were for converting an attic into usable space and adding siding. These renovations came to close to being recouped out of sales. By comparison, a remodeled bathroom, netted only 68% and a remodeled kitchen netted only 66.5% of the cost.

This means that a savvy buyer - who sees that there have been recent renovations - will be able to get that renovated bath or kitchen for a fraction of its cost. If the renovations suit your taste, that’s a bargain!

For a seller, it means: save your money. Spend your money on repairs and other, relatively inexpensive, things that will increase "curb appeal". See an earlier post for more suggestions to get yourt house ready for sale.

There are a couple of books, that can give you some tips such as Ortho's book, but even with that, check the survey and see if it is likely that you will recoup your costs when you sell.

Reports: Sales and Prices Down A Bit in January. So ???

2010-03-02T12:26:00.001-05:00

As reported in the The Business Review (Albany): "Sales of new and existing single-family homes fell 2 percent in January in the Albany, N.Y., region, according to preliminary figures released today. A total of 386 homes and condominiums sold during the month, compared to 393 in January 2009, according to the Greater Capital Association of Realtors. The median sale price was nearly the same as a year earlier, $172,300. The median is the point at which half of the sales were greater and half were less. The average price fell 6 percent, to $201,386."
According to the Greater Capital Association of Realtors (GCAR), more expensive homes are moving slower, primarily bacause of the impact of the First Time Homeowner Tax Credit.

Does this really mean much? I suppose if you have a higher end home you might want to wait a while to sell. On the other hand, if you are looking to buy, this might be the time when you can get more house for your money.

Of course, all of this is only relevant if you are buying or selling on the "I wanna" basis, as opposed to the "I really have to..." basis.

The Extended Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

2010-02-26T09:58:00.001-05:00

The Extended Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

What Does the Junk Email Mean

2010-02-25T17:20:00.000-05:00

Realtors get tons of junk email that sneaks its way around the spam filters. Sometimes the nature of it is disturbing. And I'm not just talking about the pharmacutical stuff! A lot of what we are receiving is about short sales and foreclosed properties. (A short sale is where the proceeds of sale aren't enough to pay the closing costs, exisiting mortgages and other liens.) It really hasn't seemed that the market conditions in the Albany/Capital District have been that bad, but when I see so much of that kind of email, I have to wonder.

Own a House? Are We Nuts?

2010-02-24T19:14:00.000-05:00

We've been lucky in Upstate New York this winter. No snow! Now we have to deal with it again. Really would be nice to call the landlord. Then again, it's sort of nice not to have to call the landlord and not have to wait until it gets taken care of.

The Guy Fixing My Roof, Fell Off!! Am I Going to Get Sued?

2010-02-22T21:17:00.000-05:00

You hired your neighbor to fix your roof. He fell off and got hurt. Bad. You feel awful about it, but do you feel bad enough to risk losing your house to pay the damages? Will you really be responsible? The answer, as with most legal questions, is a definite "maybe".

If you own a one or two family house, the NY Labor Law (Sec. 240 and Sec. 241), provides that you will be responsible if it is determined that you actually controlled the work. If you own a dwelling with more than two units, you are ABSOLUTELY LIABLE for damages incurred by workers who are injured on ladders or scaffolding on your property.

The moral is: GET INSURANCE!!!

If you own ANY real estate, make sure you have liability insurance that covers you for any kind of personal injury damages, whether the injured party is family, a guest, the mailman, the pollster or a worker. If you are having work done require the worker or contractor to provide a certificate of insurance for personal injury coverage, with adequate amounts of coverage, which names all of the owners as additional insureds.

If you are performing the work, don't rely on the property owner's coverage and make sure you are insured, whether the property owner asks for it or not.

New Credit Card Law and the Home Equity Option

2010-02-20T10:38:00.001-05:00

Conventional wisdom is that you don't want to incur long term debt for short term gain. In other words, don't mortgage your house to buy today's supper. Somehow, that hasn't stopped any of us from paying for supper with a credit card. After all, we know we're going to pay it off in full at the end of the month. Right! That's how we have those big balances that are subject to those huge interest rates and annual fees.

Though several of the provisions will take effect over time, the bulk of the new credit card laws go into effect on February 22, 2010. The most relevent, so far as real estate is concerned, is the provision that requires the credit card company to tell us how long it will take to pay off our balance based on minimum payments.

When we see that it will take ten or more years, paying the balance in full with a low interest, low closing cost, home equity loan might make a lot of sense. Basically, you will now see that you have been incurring long term debt for very short term gain. You may well be able to shorten the payoff period with a mortgage. Just remember - this won't help if you continue to bring the credit card to with you to the supermarket or restaurant!

Before You Move - Check Out a New Neighborhood

2010-02-19T07:54:00.000-05:00

Your Realtor tells you the house you are considering is in a "lovely" neighborhood. It's within an easy commute to where ever you're going. Even Jupiter.

Check it out yourself.

Drive through the neighborhood or, better yet, get some exercise and walk it. Maybe there will be some people outside that you can chat with about the area. Go on different days and at different times of the day and night. Will you be comfortable getting out of your car or walking your dog? Will you want your kids outside playing or walking back from school or the bus?

The character of a neighborhood might change after dark, especially in urban areas. Things might be different on weekday nights than they are on weekend nights, when the neighbor's teenagers have their parties. Look for large, fenced in yards. Do the people have llamas or fifteen dogs? How much traffic is there?

Drive the commute during rush hour. Both ways. Check the route that the school bus takes.

None of these things are on the listing sheet. Only you can decide whether you will be comfortable or not. Give yourself enough information to make a well considered choice.

Maximizing Land Use and Tax Exempt Property

2010-02-17T18:36:00.001-05:00

In all fairness, I know nothing about this denomination, but I have to congratulate them for innovation.

Get the Most Out of Your Home!

2010-02-16T14:52:00.008-05:00

Want some easy and relatively inexpensive things you can do to get your house ready to sell.

Your home is probably your largest investment. Whether you intend to sell or refinance it, you want to do everything you can to make it as attractive as possible. Sounds simple, but the house that looks its best will sell quicker and for the best price.

Here’s a checklist for preparing your home for sale.

Paint inside and out. This may be the improvement that gives you the most bang for your buck. And don’t forget the garage, shed and fences!
Mow the lawn and clear debris.
Seal and clean gutters.
Tidy the front entrance: Polish door fixtures. Replace that rusty mail box. Put out a new doormat.
Clean windows, storms and screens.
Tend to "little things" - oil squeaking doors, tighten loose cabinet knobs, take out removable stains, replace damaged floor tiles. Clean soiled carpeting.
Make sure windows, doors and drawers open and close easily.
The kitchen is the one place in the home that buyers look at closely. Tighten leaky faucets, repair faulty wall switches, outlets, light fixtures and any appliances that will "go with the home."
The bathroom gets close scrutiny too. Keep it spotless. Tiles must be scrubbed and grouted, faucets polished, toiletries and medicines put in their chest. Laundry items placed in a closed hamper.
Get rid of clutter ALL OVER! Uncluttered rooms and closets look and feel bigger.
Clear out accumulated items from cabinets, under counters and from the basement and garage. Have a garage sale and get rid of the stuff that doesn’t sell.

If you need cash to finance other work that needs to be done, consider a home equity loan. The rates are low. Since you're going to be selling your home in the near future, you might be able to take advantage of even lower rates with an adjustable rate mortgages without many of the risks that otherwise apply.

Let us know if you have any comments or other ideas.

New carbon monoxide detector law to take effect February 22:

2010-02-15T22:15:00.003-05:00

The statute, which takes effect on February 22, provides that "....every one or two-family dwelling, or any dwelling accommodation located in a building owned as a condominium or cooperative in the state or any multiple dwellings shall have installed an operable carbon monoxide detector of such manufacture, design and installation standards as are established by the council. Carbon monoxide detectors required by this section are required only where the dwelling unit has appliances, devices or systems that may emit carbon monoxide or has an attached garage."

It is unlikely that searches will be conducted of private homes to determine compliance with this law (and that which requires smoke detectors); however, what will happen when someone becomes ill or dies in premises that did not have a carbon monoxide detector? If a claim is made on a home owner's insurance policy, will the company deny coverage? Will a health insurance company attempt to recover its expenses from the property owner? I wouldn't be surprised. Certainly lack of the devise will be clear proof of negligence.

The moral is -- get a carbon monoxide detector and a smoke detector and make sure they both work.

Lawyers Are NOT the Least Trusted Professionals

2010-02-14T12:26:00.001-05:00

According to the 2009 Gallup Honesty and Ethics Poll, lawyers are not the least trusted among the professions. In fact, trust in lawyers decreased less than trust in the Clergy between 2008 and 2009. Furthermore, lawyers are trusted more than car salesperson, members of Congress, stockbrokers and business executives. I suppose, if you were a glass half full kind of person, you could interpret this to mean that lawyers are among the five least trusted professions. Is this a matter of "symantics"?

I couldn't find where Realtors were rated, but 54% of those sampled trusted college instructors (down from 58% in 2006). It's good to see that in the view of those polled, I have at least one honest job.

Tax Credits!

2010-02-12T20:20:00.000-05:00

Tax credits are very nice. Dollar for dollar reductions in the amount of tax you have to pay. The First Time and Existing Home Owner Tax Credits create unique opportunities. There's more information avaialble on Oxford Realty's Facebook page. Dates to remember: Purchase contract has to be signed and in force by April 30, 2010. Closing has to take place by June 30, 2010.

Time to kiss and make up!

2010-02-11T08:16:00.000-05:00

It's time. I'm going to try to bridge the gap. Mend the fences.. whatever.

As a lawyer. I apologize to all the Realtors to whom I have been curt, rude, nasty and apparently uncooperative. I understand the work that you expend on behalf of your client. I know you have spent hours showing houses, gathering information, preparing the contract, negotiating, arranging and attending inspections and everything else that you do. I know that you usually spend all this time without any promise of compensation. I respect the work that you do. As a lawyer, I thank you. Without your efforts, the client would not be purchasing or selling.

As a Realtor. I'll think about what I've done wrong and get back to you.

Starting Off

2010-02-10T09:01:00.000-05:00

Realtors and Lawyers are too often like cats and dogs. As a lawyer, I have often worked closely with Realtors but too often I've been unnecessarily rude - ok, downright nasty - to Realtors whose only concern seems to be that the deal close so they can get paid. As a Realtor, I've been frustrated with slow moving and obstructionist lawyers who never seem to appreciate the effort that the Realtor puts into the process of buying or selling a piece of property. Maybe this can be fixed. But as with cats and dogs, sometimes it can be. Sometimes not. Caught in the middle of this of course are the parties to the transaction. It's their money and their property. All subjects for further discussion.

Buyers and Sellers really have to understand the process of buying and selling. They really have to understand the roles of the Realtor, lawyer, mortgage broker, lender, title company, the inspector, the surveyor and every one else who is involved in the transfer of real estate. All subjects for further discussion.

From time to time, there will be pertinent issues concerning real estate: cost versus value analyses, interest rate and market fluctuations, tax benefits and detriments. All subjects for further discussion.

There will be other topics to be discussed. Hopefully it'll be interesting, informative and fun.