Why Sell Now?

Spring is in the air.  Flowers are blooming, the birds are chirping and, now that the weather is turning warmer, people are getting out of their homes more.  While springtime means that a young man’s fancy turns to love, it also means that more people are looking to buy a new home.  So, if you want to move from your Westchester, Putnam or Dutchess County home, you’re in luck.  But, why sell now?

Spring has always been a hot time in the real estate market, especially in May.  School is ending, the weather’s not so dreary anymore and people are looking for a change.  That’s why more buyers step out to search for a new Westchester, Putnam or Dutchess County home in spring than any other time of the year.  The more buyers there are in the market, the more likely your home will be viewed by those buyers.  You also have the best opportunity to get good offers on your home when there are more buyers interested in it.

Interest rates have steadily been increasing over the last few months.  When interest rates increase even by 1/4%, there are fewer buyers who are able to qualify for a mortgage.  Placing your house on the market now means that buyers can take advantage of current lower interest rates before the possibility of them rising later.  In turn, when you go to purchase your next Westchester, Putnam or Dutchess County home, you will be subject to the interest rates available at that time.  It is important to evaluate and optimize your financial plan to take into consideration the effects of proposed tax increases, operational/energy costs and the inflation costs of moving.  Consult your trusted tax and mortgage advisors.

Mortgage companies are becoming more stringent with their lending standards.  The days of getting “creative” to get a buyer qualified for a mortgage are over.  The old tried and true methods remain: if you have a decent down payment (special loan programs may apply with varying down payments), good credit and a steady income, you will most likely be approved.  As lenders tighten their standards and the government mulls over setting down stricter guidelines for mortgage companies, it will be harder (but not impossible) for buyers to get a home loan.

Why sell now?  Putting your Westchester, Putnam or Dutchess County home on the market now could mean a much more successful transaction, with a larger pool of buyers and possibly better group of offers to choose from.  As always, consult with your trusted, experienced Real Estate professional as well as your tax, legal and financial advisors.

Barbara Bodnar, Your Westchester, Putnam and Dutchess County New York Real Estate Resource

Buying a Home vs Renting One

Have you been renting and are now considering purchasing a Westchester, Putnam or Dutchess County home?  How do you know if now is the right time to buy?  Consider the following when determining whether to buy a home or continue renting one instead:

RENTING
Positive - When you rent a home, you have little to no responsibility for its maintenance.  If something goes wrong, you can contact your landlord or Property Manager to come take care of it.  The cost for this is something that is added into your rental fee.  It is also much easier to move out of a rental unit since you don’t have to sell your Westchester County property before you move on to another one.  Finally, the only money you typically have to come up with to move in is the first month’s rent and a security deposit.  You don’t have to provide any closing costs, home-buying fees or property taxes.

Negative – On the other hand, there are several negative aspects of renting a home instead of owning it.  Renters receive absolutely no tax benefits.  No matter how long you live on a property, you will never gain equity in the home.  You have no control over how much your rent will increase over time (and it will at least every year, depending on your lease/rental agreement).  When there is a problem with your plumbing, broken locks or electrical system, you have to wait for the homeowner or property management company to take care of it.  This is just one of the reasons that it is important to have a clear agreement regarding repairs as part of your lease.  Also, if you have pets, they may require an extra security deposit if they are even allowed at all.  Landlords may require a co-signer or extra security if there are credit issues.

BUYING
Positive - When you own a Westchester, Putnam or Dutchess County home, you can build up equity over the entire time you live there, providing your home increases in value and continue paying down your loan.  Homeownership provides a sense of security and stability for both you and your family, according to some recent studies.  You can remodel, re-landscape or repaint to your heart’s content without anyone else’s permission, except if you live in an HOA situation.  You don’t have to rely on anyone else to take care of problems that may arise, such as plumbing, electrical or other repair issues.  A portion of all the interest paid on your mortgage as well as your real estate taxes are tax deductible.  Of course, you should always make sure to check with your tax accountant to find out exactly how much of these are truly tax deductible.  When you rent, none of your monthly rental fee is tax deductible.

Negative - Being a homeowner means you take on the fiduciary responsibilities of owning a home.  This includes paying for maintenance and repairs on your home and paying for your property taxes (at least a portion of which, again, are tax deductible).  If you cannot pay your mortgage note, you face the possibility of losing your home to foreclosure.  When you decide to move out of your Westchester, Putnam or Dutchess County home, you will need to sell it before you can buy another one.  This means that you can’t just pick up and move out like you could when you rent.  Of course, if you are relocating as part of your business, you may be entitled to certain benefits…perhaps making your move somewhat easier.  This is on a very individual basis and requires consultation with your relocation specialist.

Please weigh these pros and cons of buying a home vs renting one when deciding whether you want to continue paying rent or want to invest money in a new Westchester, Putnam or Dutchess County home.  When you decide to buy a new property, please feel free to contact me.  I’m always happy to help.  Always consult your tax advisor, attorney and financial planner if available.

Barbara Bodnar, Your Westchester, Putnam and Dutchess County New York Real Estate Resource

Sex and the Sycamores

* Reprint courtesy of Brad Gurr

While you may not be able to grow sycamores or ginkos in your garden, some understanding of the complexities of tree gender expression may help to avoid messy problems in your yard.

I used to enjoy visiting a friend’s verdant garden in Brentwood. She would walk around pointing out the new trees and shrubs assigning genders more or less randomly. ” That viburnum she’s not happy, he’s shading her out” and then my hostess would point up to the large box elder that towered over the viburnum. Judging by the seeds on the box elder I knew this wasn’t entirely true. When in this situation there is much to be learned by simply listening. After a few visits I discovered that more than assigning genders, my host was personifying the trees as they were literally part of her family.

Trees express gender in a variety of ways. Typically genders are assigned by the presences of male or female flowers. Male flowers produce pollen and female flowers produce seeds. If it were that simple this would be a very short article.

Flowers on trees and shrubs can be male, female or both. In which cases the plant would be better referred to as an “It”. To further complicate matters some species of trees have individuals with only male flowers, clearly “He” trees. The same species will have trees with only female flowers, clearly ” She” trees. This same species may have a small percentage of trees that have male and female flowers on the same individuals, clearly “It” trees. Given that this may account for up to 15% of the individuals of the species it is clearly not a random mutation, rather a part of the overall genetics of the species.

While this may be a surprise, you won’t have to go far to find these strange exotic trees.

Ash trees, maples, and yes sycamores all have this type of gender expression. It can be a nuisance and even an major problem if you have a seed bearing tree in an area where the seeds are not welcome. Some trees, like crab apples can be down right dangerous when they are to close to walks or patios. Slipping and falling on decomposing apples can be more painful than getting stung by a wasp disturbed from its apple sauce dinner. If you have ever had the misfortune of stepping on the ripe fruit of a ginko tree you will remember the pungent odor. Fortunately plant breeders have used their knowledge of plant anatomy to develop varieties that are based on male cultivars.

This ensures that you have the landscape tree you want without the seeds that may cause trouble. “Baron” maple is one example of a seedless male cultivar of Box elder.

If you are planning on planting trees this spring, consult your certified arborist they will help insure you get the best tree for your location.

* Brad Gurr is an I.S.A. Certified Arborist and Plant Health Care Specialist dedicated to the care and preservation of trees. For more information on this subject or any plant health care related questions please feel free to contact on line at gurrb@yahoo.com.

Brad Gurr, “Dedicated to the Care and Preservation of Trees”

Barbara Bodnar, Your Westchester, Putnam and Dutchess County New York Real Estate Resource

How to Determine if You Can Afford That Home

It is a fantastic time to buy a home in the Westchester, Putnam and Dutchess County areas of New York.  But, how do you determine if you can afford that home?  Here is a general overview:

Your Mortgage Payment – Many financial experts agree that your monthly mortgage payment shouldn’t exceed 28% of your gross monthly income.  To determine how much this translates into, take your total gross annual salary, multiple it by 0.28 and divide that by 12.  The result is the maximum amount you should comfortably be able to spend for a monthly mortgage payment on your Westchester, Putnam or Dutchess County home.  For example, if your gross household income last year was $75,000, the maximum monthly payment you should expect to pay comfortably would be $1750 ($75,000 x 0.28 / 12).

Some financial experts believe that paying roughly 1/3 of your monthly income towards a mortgage payment is normal.  I, however, must stress that banks look only at gross income.  Buyers need to feel comfortable living off their net income.  So, the payment a homeowner is comfortable with should be dependent on their lifestyle, which includes what they spend on traveling, going/eating out, etc.

Your mortgage payment will include principal, interest, taxes, insurance and flood insurance, if required.  Your total housing payment also includes common charges and assessments, if applicable.  Your total cost of housing will include all of the above plus the estimated energy costs (heat and electric) as well as maintenance costs.

Your Downpayment – It is recommended by most financial experts that you provide at least 20% of the purchase price of your home as a downpayment.  However, you can buy a home for less than that.  With 20% down, mortgage companies consider you a much better financial risk and you won’t be subject to the additional Private Mortgage Insurance (PMI) required when you borrow more than 80% of the purchase price of a home.  So, the more you put down, the less you have to borrow and the less you will spend on your monthly mortgage payment.

First time buyers are offered special financing with as little as 3% down, with special assistance for closing costs and down payment.  Job Loss Protection is also included.  First and second time buyers can purchase with as little as 3 ½% down.  All down payment and closing costs can be gifted.

Veterans are offered the opportunity to purchase with 100% financing, no PMI and only 1 debt ratio of 41%.  All VA loans are assumable.

Special programs for purchasing Fannie Mae foreclosures only requires 3% down and 3% closing cost assistance, with no PMI cost.

Deb-to-Income Ratio – This is the amount of debt you currently have in direct relation to how much income you bring into your household.  The lower your debt-to-ratio income, the more attractive you are to a mortgage company and the easier it will be to keep up with the mortgage payments on your new home.  According to the Federal Reserve, if your debt equals more than 40% of your gross annual income, you may be facing financial distress.  Work on getting your debt-to-income ratio down to a manageable level.

Employment – Is your company currently experiencing or expected to have layoffs soon?  Are you considering switching to a new job?  You may want to think about staying right where you are for now.  Mortgage companies want to see a steady, consistent work history when considering whether to approve you for a loan.

Credit - Lenders currently are looking at and evaluating borrowers with regard to their ability, capacity and willingness to repay their financial obligations.  The mortgage is usually the largest financial debt a buyer incurs.  The three scores evaluated for a home loan are: Fair Issac, Beacon and Classic.  Lenders look for a minimum credit score of 640.  Credit scores range from 350 to 850.  Today, a good credit score is 700.  Most lenders now offer credit optimization and credit re-scoring to update credit data and scores within days.

Lifestyle - Do you like to travel or are you a homebody?  Do you prefer shopping or working on a garden?  This will help you decide whether you are willing to spend a little more on the Westchester, Putnam or Dutchess County home of your dreams because you’ll be spending more time there or if a smaller home is more suited to your lifestyle.

Keep in mind that, when you buy a home, you will want to make it your own.  Budget your money to allow for painting, new furniture and updating.  Proper financial planning and cash-flow budgeting are more important than ever.  Higher commuting fuel costs and home energy costs need to be evaluated as well.

Buying a home is a major responsibility that should be given some serious consideration.  Consider all the options above to determine if you can afford to buy that home or not.  It is highly recommended that buyers consult their attorneys, mortgage advisers, financial planners, accountants or other appropriate people when buying a home.  When you are ready to purchase a Westchester, Putnam or Dutchess County home, please feel free to contact me.

Barbara Bodnar, Your Westchester, Putnam and Dutchess County New York Real Estate Resource

Westchester County Helps Residents With Their Income Taxes

As we all may well be aware of, Tax Day is right around the corner.  Due to Emancipation Day being celebrated in Washington DC on April 15th this year, the deadline to file your income tax return will be Monday, April 18, 2011.  Emancipation Day (the celebration of the day President Lincoln signed the official document declaring all people to be free regardless of race) is traditionally celebrated on April 16th in Washington DC.  But, since this year April 16th falls on Saturday, the celebration takes place on Friday, April 15, pushing the federal tax filing deadline to the following Monday.

Westchester County will be helping residents with their income taxes again this year.  If you are a senior citizen, a veteran or a person with disabilities, you may be eligible for free help with your tax preparation.  This help will be available through the tax filing deadline of April 18, 2011.

The Westchester County government wants to help its residents understand the Earned Income Tax Credit, which can mean as much as $7649 in tax credits to a household, depending on marital status, income and size of your family.  To receive the EITC, you need to file forms specific for the EITC with both federal and state income taxes.  This is where Westchester County representatives can help.

For more information on whether you qualify for the EITC or free tax prep and where to go in Westchester County to receive this help, please call United Way’s 2-1-1.  Tax Day will be here before you know it.  So, don’t put it off any longer.  Get some help now.

Barbara Bodnar, Your Westchester, Putnam and Dutchess County New York Real Estate Resource

Mulch: The Good, The Bad and the Ugly…

* Reprint courtesy of Brad Gurr

Mulch was touted as the cure for all things soil related when it first introduced in the early eighty’s and has been used with much success and notable failures since. Research is currently underway to see if our current mulching practices are of benefit. To understand how mulch benefits trees we must have a few basic facts about the soil it protects.

Mulch Before

Mulch is a protective cover for soil. Soil is an environment that contains solids, gases and liquids.  As long as they are in the right proportions they work in conjunction to create the ideal habitat for roots.  If they are out of proportion or not present at all they exclude roots and prevent plant growth. Too many solids and soil becomes compacted and roots can’t get enough oxygen and die failing to penetrate the soil. If you have roots coming to the surface of your lawn this is the problem. If you have a high water table there isn’t enough oxygen in the soil roots will be excluded. Too little water in the soil and trees and plants will dry up. If the temperatures in your soil swing wildly from hot to cold many plants will suffer root injury and possibly die. Trees growing in the forest develop their own natural layer of mulch called “duff” this consists of many years of decaying leaves and debris that falls from the trees forming a rich insulating mat on the forest floor. The forest duff reaches a state of equilibrium decaying at a rate that prevents it from suffocating the trees that produce it.

Mulch after

Mulch often isn’t made from the same types of trees that are being mulched. Some mulch, coming from trees that don’t decay readily, like cedar mulch, can build up. Mulches made of dense materials like shredded leaves can prevent air infiltration and must be used sparingly. If mulch becomes saturated with moisture and prevents air infiltration roots will migrate in to the mulch and cause growth problems. Roots that grow into mulch will often circle the tree eventually girdling and strangling the tree. The problem is made worse by trees that are planted too deep or in pits. They are trying to grow roots out of the hole they are buried in.

Proper mulching is an ongoing process and requires inspection and occasional maintenance. You really can’t just keep adding it year after year and expect it not to have negative effects. Recent innovations in mulch delivery, namely blowing it into place have made this ” Mulch Glacier Effect” a more common eventuality. To explain, if the mulch is being deposited faster than it is decomposing it builds up into a mulch glacier and starts to move down slope! It also piles up around the trunk of the tree and starts it to decompose. Trees are made of wood, a surprise to many, and placing wet wood against it causes it to decay.

Mulch blower

I have included two pictures that show soil profiles before and several years after a deep layer of mulch was placed on a compacted turf area. Notice the change in color and the development of rich organic loam horizons deep below the surface. I’m still a fan of mulch applied right. Contact your ISA Certified Arborist to see if your mulch is correctly applied.

* Brad Gurr is an I.S.A. Certified Arborist and Plant Health Care Specialist dedicated to the care and preservation of trees. For more information on this subject or any plant health care related questions please feel free to contact on line at gurrb@yahoo.com.

Brad Gurr, “Dedicated to the Care and Preservation of Trees”

Barbara Bodnar, Your Westchester, Putnam and Dutchess County New York Real Estate Resource

What to Recycle or Not to Recycle

Many owners of Putnam County homes as well as others across the country are trying to “go green” by recycling.  But, it can be confusing as to what is recyclable and what is not.  Also, some items require a little work before tossing them into the blue bin.  Here’s a guide on whether to recycle or not to recycle as well as how to handle your recyclables:

Paper Products
Printer paper, junk mail, old school homework papers, phone books, paper grocery sacks and magazines can be placed in the recycle bin without any problems.  Moving boxes, shipping boxes and any cardboard packaging from products (like computer software, furniture, prepackaged food like macaroni and cheese boxes, etc.) can also be recycled.  But, when it comes to things that have contained a food product (such as milk or juice containers), you need to give it a quick rinse with water first to remove any residue.  Shred any papers that have personal information on them (bank statements, credit card offers, tax info) before placing them in your recycle bin for security reasons.  Identity theft is still a major concern for everyone.

Plastic Items
Soda bottles, old plastic bowls and used plastic utensils can be recycled.  But, they must be washed first.  Shopping bags are not recyclable.  However, many Putnam County grocery stores do have a program where you can bring in used shopping bags.  Another alternative to plastic shopping bags is to buy a reusable/washable tote bag when you shop for groceries, clothing, books, music or movies.  Some stores even offer a discount when you use a tote for your purchases rather than the plastic shopping bags.

Cans
Any can you use can be recycled: soup, soda, coffee, etc.  Just make sure to give it a good rinse before you recycle it.  Aluminum foil can also be recycled.

Glass
Since it takes so long for glass to break down, it’s important to recycle it.  But, not all glass is alike.  Some glass items that can’t be recycled include windows, mirrors, ceramic bowls, light bulbs and any Pyrex dishes.

Electronics and Batteries
Many local agencies, including the Putnam County cities of Carmel, Kent, Patterson, Philipstown, Putnam Valley and Southeast, offer a recycling program for some electronic items, such as microwaves, refrigerators, old computers and batteries.  Places like Best Buy, local charitable organizations and even service providers will take old cell phones that you aren’t using anymore.

To find out the hours of operation and location of your city’s electronic waste department, please call:

Carmel – (845) 628-1500 (Town Supervisor’s Office)
Kent – (845) 225-3943 (Town Office)
Patterson – (845) 878-6500 (Town Clerk)
Philipstown – (845) 265-3329 (Town Clerk)
Putnam Valley – (845) 526-2121 (Town Supervisor’s Office)
Southeast – (845) 279-8206 (Special Districts Office)

What to recycle or not to recycle…that is the question.  Recycling in Putnam County isn’t difficult and is very much encouraged.  For help buying or selling a Putnam County home, please contact me.  Together, we can make life a little nicer in Putnam County.

Barbara Bodnar, Your Westchester, Putnam and Dutchess County New York Real Estate Resource