Dirt Road Realty News

Rhinebeck Homes Sold in the 1st Quarter 2013

Fri, 05 Apr 2013 09:00:00 EST

There were No Homes sold in the Rhinebeck School District

above $585 K in the 1st Quarter of 2013.

7 Homes Sold $ 0 – 249 K

5 Homes Sold $ 250 – 499 K

2 Homes Sold $ 500 – 600 K

The Source for the 15 Rhinebeck homes sold in Rhinebeck NY in the ist Quarter 2013 is the Mid–Hudson Multiple Listing Service Inc (MHMLS). These figures for single family detached homes sold in Rhinebeck NY do not represent the total Rhinebeck NY real estate sales in Dutchess County. These homes are in the Rhinebeck Central School District. These figures for homes for sale that sold in Rhinebeck NY reflect the sales activity of the MHMLS, which comprises the largest sales volume sampling. .

I would like to briefly explain the MHMLS.

The real estate brokers in the MHMLS have agreed to share their listings– information on properties features. All the homes on the MHMLS are pooled together in one listing.

What does that mean to the home buyer? A Buyer’s agency as Dirt Road Realty, a real estate agency committed exclusively to the home buyer, the home buyer can search for their home in one Rhinebeck Real Estate listing –in one place not searching multiple agencies for the same home.

List Price vs Sale Price of Rhinebeck Homes Sold in the 1st Q of 2013

Fri, 05 Apr 2013 09:00:00 EST

Original List Price vs Sale Price of Rhinebeck Homes

Sold in the 1st Quarter of 2013

There was a total of 15 homes sold in the Rhinebeck School District.

Of the 15 homes sold in the 1st Quarter of 2013, only one home sold above the the original list price. This home sold for $4,600 above the original list price. 14 Rhinebeck homes sold for less than the original list price.

I would like to briefly explain the MHMLS.

The real estate brokers in the MHMLS have agreed to share their listings– information on properties features. All the homes on the MHMLS are pooled together in one listing.

Hudson Valley Restaurant Week Spring 2013

Wed, 13 Feb 2013 09:00:00 EST

Hudson Valley Restaurant Week, the "must–do" dining event heralding spring, returns March 11–24, 2013. Featuring more than 170 restaurants across seven counties, it is one of the largest Restaurant Week events in the country.

"The Hudson Valley is a rising star in the culinary world,"says Janet Crawshaw, founder of the event. "Home to the country’s foremost cooking school, world-class wineries and distilleries, award-winning cheese makers and some of the top chefs in America," Crawshaw notes, "it makes for world-class eating--on par with the best dining destinations in the world."

The Hudson Valley, in fact, is one of only three U.S. destinations recently named by National Geographic as a "must-see"destination in part because of its vibrant food scene.*

Top restaurants highlight the bounty of the region with prix fixe menus, giving diners the opportunity to enjoy exceptional dining at an approachable price point. Participating venues include well-known establishments such as Crabtree’s Kittle House, X2O Xaviars on the Hudson and the famed Bedford Post Inn. The spring line up includes twelve new additions, including La Cremaillere, Gigi Trattoria and MP Taverna.

"With so many restaurants participating, the culinary offerings are diverse. Many chefs focus on locally-sourced, ingredients for their dishes," Crawshaw explains. Local purveyors who are leaders in their field, such as Millbrook Vineyards, Tuthilltown Spirits and Continental Organics (aquaponics) supply many of the participating restaurants. For example, Sprout Creek Farm in Dutchess County produces award-winning cheeses that are recognized internationally. Their cheeses can be found in dishes at local restaurants such as Babycakes Café and Terrapin. Hudson Valley Foie Gras is known worldwide, and they are featured on many menus, including those at Tarry Lodge and The Ship Lantern Inn.

Hudson Valley Restaurant Week features prix fixe, three-course dinners for $29.95 and lunches for $20.95 (plus beverage, tax and tip). Diners can explore a variety of international flavors with a local flare including Argentinian, French, German, Greek, Irish, Italian, Japanese, Latino, Mediterranean, Mexican, Moroccan and Swiss. A complete list of participating restaurants is available at www.HudsonValleyRestaurantWeek.com. Patrons arriving by train will find more than 65 venues are near Metro-North train stations. To make a reservation, call the restaurant directly or visit OpenTable.

About Hudson Valley Restaurant Week

In 1996, Janet Crawshaw and Jerry Novesky took an eight-month sabbatical, traveling 35,000 miles across the country seeking authentic American experiences. They found that local farms, bakeries, fish markets, wineries and breweries were the key to understanding the country’s distinct regions. Inspired by their trip and the Chefs Collaborative, an educational sustainable food movement, the couple returned to their home in the Hudson Valley with a mission to awaken the region’s food consciousness. In 1998, they launched The Valley Table, a colorful quarterly, magazine that celebrates the agricultural heritage and cuisine of the region, leading the development of the Hudson Valley’s local food movement.

Crawshaw and Novesky launched Hudson Valley Restaurant week in 2006 with a distinguished board of advisors, including chefs, restaurateurs and tourism leaders. The two-week culinary event premiered with 70 restaurants. Today, with more than 170 participating restaurants spanning 7 counties it is among the largest Restaurant Week events in the country. Participating counties include Dutchess, Westchester, Columbia, Orange, Putnam, Rockland and Ulster. It has become a successful collaborative effort involving farmers, growers, wine makers and chefs.

About the Sponsors

Produced by The Valley Table magazine, Hudson Valley Restaurant Week involves more than 200 of the finest business establishments in the region including M&T Bank, WHUD, The Culinary Institute of America, Millbrook Vineyards & Winery, Irving Farm Coffee, Continental Organics, White Plains Linens, Westchester County Tourism, Dutchess County Tourism, Hudson Valley Hospital Center, The Journal News, WKZE, Clear Channel Outdoor, Hudson Valley Bounty and Healey Brothers Automotive.

Hudson Valley Restaurant Week on the Social Networks

Join the conversation with Hudson Valley Restaurant Week on Facebook, Twitter, Instagram and Pinterest, hashtag #HVRW.

Husdon Valley Restaurant Week You Tube (Can You Spot Harvey and Myself?)

Hudson Valley Restaurant Week Restaurant List

Rhinebeck Homes Sold Between August 2012 and January 2013

Mon, 28 Jan 2013 09:00:00 EST

9 Homes sold in Rhinebeck in the last six months in the price range of $500,000 - $900,000.

8 Homes sold for less than the list price and 1 home sold for $25,000 more than the list price.

The Source for Rhinebeck real estate homes sold in Rhinebeck NY is the Mid–Hudson Multiple Listing Service Inc (MHMLS). These figures for single family detached homes sold in Rhinebeck Central School District do not represent the total Rhinebeck, NY real estate sales in Dutchess County. These figures for homes sold in Rhinebeck NY reflect the sales activity of the MHMLS, which comprises the largest sales volume sampling. .

I would like to briefly explain the MHMLS.

The real estate brokers in the MHMLS have agreed to share their listings– information on properties features. All the homes on the MHMLS are pooled together in one listing.

Rhinebeck Homes Sold
Between August 2012 and January 28,2013

Orginal Listed Price	Sale Price	Percent Price Change	Listing Month & Year	Sold Month & Year
$599,900	$500,000	17%	August 2011	Jan. 2013
$549,000	$525,000	04%	Feb. 2012	August 2012
$649,900	$535,000	18%	June 2012	Dec. 2012
$649,000	$600,000	08%	March 2012	Sept. 2012
$795,000	$630,000	21%	March 2012	August 2012
$729,000	$640,000	12%	Oct. 2011	Oct. 2012
$749,000	$699,000	07%	March 2012	Sept. 2012
$675,000	$700,000	+04%	Nov. 2012	Dec. 2012
$995,000	$765,000	23%	August 2012	Dec. 2012

Rhinebeck Real Estate Market for 2012

Sat, 12 Jan 2013 09:00:00 EST

The Source for the 83 Rhinebeck homes sold in 2012. These Rhinebeck homes sold are in the Rhinebeck Central School District. The source for is the Mid–Hudson Multiple Listing Service Inc (MHMLS). These figures are for single family detached homes sold in Rhinebeck Central School District do not represent the total Rhinebeck NY real estate sales in Dutchess County. These figures for homes sold in Rhinebeck NY reflect the sales activity of the MHMLS, which comprises the largest sales volume sampling.

I would like to briefly explain the MHMLS.

The real estate brokers in the MHMLS have agreed to share their listings– information on properties features. All the homes on the MHMLS are pooled together in one listing.

83 Homes Sold in the Rhinebeck in 2012

Price Range of Homes Sold	Number of Homes Sold	Percentage in Price Range of Homes Sold
$70,000-$299,999	36	43%
$300,000-$499,999	27	33%
$500,000-$999,999	17	20%
$1,000,000 and above	03	4%

Of note: 80 of the 83 Rhinebeck homes sold in 2012 were less than the original list price.

3 of the 83 Rhinebeck homes sold in 2012 were above the original list price.

Rhinebeck Real Estate News How Will Tight Credit Effect The Rhinebeck Real Estate Market?

Wed, 07 Nov 2012 09:00:00 EST

Housing Still Precarious in Obama’s Second Term

November 7, 2012

By Diana Olick CNBC Real Estate Reporter

The housing market is on the slow road to recovery. Home prices in the last three months rose in 120 out of 149 metropolitan markets surveyed by the National Association of Realtors.

Compare that to just 39 rising metros a year ago. The median home price is up 7.6 percent from a year ago, the strongest year–over–year increase since the first quarter of 2006.

Much of that is due to the shift in sales away from distressed properties, as lenders modify more loans and in some case write down mortgage principal.

The one thing standing in the way of a more robust housing recovery, is tight credit. Mortgage rates are at near–historic lows, but too many potential home buyers still cannot access these rates due to damaged credit.

"Mortgage–dependent buyers are still only bit–part players in the U.S. housing market recovery," writes Ed Stansfield of Capital Economics.

So how does a second Obama term play into this still fragile housing market?

"The President's victory is broadly positive for mortgage insurers and broadly negative for banks and homebuilders," writes Jaret Seiberg, Senior Policy Analyst at Guggenhiem Partners.

Household formation is coming back, which is great news for the nation's home builders, if they can obtain the financing they need to build and if their potential buyers can as well. That's where the fiscal cliff comes in and the fear of another recession.

For complete article –Click

Rhinebeck Real Estate News How is the Rhinebeck Housing Market Affected by Appraisals

Fri, 12 Oct 2012 09:00:00 EST

Scrutiny for Home Appraisers as the Market Struggles

October 12, 2012

By SHAILA DEWAN New York Times Real Estate Reporter

When Justin Olson put his Southwestern–style ranch house outside Phoenix on the market, he got what he was expecting: an immediate batch of offers, virtually all above his asking price, which was set intentionally low, at $197,500, to attract interest. He chose an offer of $210,000.

Similar ranch houses on a street in a suburb of Phoenix. The bottom house recently was appraised and sold for $225,000. But when the top house went up for sale, an appraiser set the value at $195,000, frustrating the owner's attempt to sell it.

But then came an unpleasant surprise. An appraiser for the buyer's bank said the house was worth only $195,000. That limited the amount that the bank would lend, forcing the buyer to come up with more cash or negotiate a lower price.

"There was just no way I was selling that house for less than $200,000," Mr. Olson said. His broker, Brett Barry of Homesmart, advised him that there was little chance of changing the appraiser's mind. Mr. Olson said, "The part that blows me away—the appraisal can be such an arbitrary, personal decision and there is no appeals process."

Adding to his indignation, a similar house two doors away was appraised at and sold for $225,000.

Appraisals are generally ordered by banks so they can verify the value of collateral before granting a mortgage. Before the housing crash, when home values seemed only to rise, appraisals were almost an afterthought. But now, with banks far more cautious about lending, a low appraisal can torpedo a deal.

The problem is so widespread that this week the National Association of Realtors blamed faulty appraisals for holding back the housing recovery, saying its members had reported that more than a third of all deals were canceled, delayed or renegotiated to a lower price because of a low appraisal. Several real estate agents said they were starting to include appraisal contingencies in their contracts, spelling out how much a buyer would be willing to pay in cash if the appraisal fell short.

Appraisers use previous sales of comparable houses to help value a home. If prices are just starting to climb, and sales take two or three months to close, there can be a lag before the change in prices is observed.

The Realtors report said appraisers were improperly using foreclosures and neglected properties as comparable homes, failing to account for market conditions like scarce inventory and bidding wars, and working in areas where they lack local expertise. The report faulted banks for using inexperienced appraisers, and for creating unrealistic requirements, like six comparable sales instead of three, at a time of few sales.

"It's holding sellers off the market," said Jed Smith, the managing director of quantitative research for the Realtors group. "Sales volume could probably be an additional 10 to 15 percent higher if we had normal lending practices and if we had normal appraisal practices." That in turn, he said, would create more jobs.

Appraisers and real estate brokers agreed that a ban, imposed since the housing crash, on loan originators' handpicking appraisers had led to the use of appraisal management companies that take a healthy cut of the consumer's fee and hire inexperienced, low–cost appraisers.

But appraisers took issue with the complaints and pointed out that unlike real estate agents, they have no bias or incentive to help complete a deal.

"Appraisers don't set the market, they reflect what's happening in the market," said Ken Chitester, a spokesman for the Appraisal Institute, a professional association. "So don't shoot the messenger. Blaming the appraiser for a bad housing market is like blaming the weatherman because you don't like the weather."

Mr. Olson and his buyer compromised on a price of $205,000, less than initially offered and therefore, some might say, less than the house was worth.

But any transaction involving a mortgage is limited by the appraisal—an assessment that is part science and part art and is based on a variety of factors like location and square footage.

Though Mr. Olson's house was in good condition, the house nearby that sold for more had at least $30,000 worth of upgrades, said Craig Young, the broker who represented the seller. But Mr. Young said appraisals could still be unpredictable, pointing out that a home across the street sold for even more, $239,000.

Some appraisers said agents misunderstand the way homes were valued. For example, although bank–owned homes generally sell at a discount, that is not true in every neighborhood, said Dan McKinnon, who runs an appraisal company with his wife in Phoenix. Appraisers, therefore, do not automatically make adjustments if they are using such sales for comparison. Some bank–owned homes are in good condition, and in some neighborhoods bank–owned sales dominate the market, and thus determine prices.

In some cases, agents use appraisals to convince sellers that their expectations are too high and that they should accept a lower offer. But in other cases, sellers know that traditional buyers are competing with cash investors who will pay more.

Appraisers see some irony in the accusation that, so soon after a housing bubble, they are being accused of holding prices down. They said buyers should not be too eager to make a purchase that is far above recent sales in a neighborhood.

"We can account for small to reasonable increases in values," Mr. McKinnon said. "We cannot account for $20,000 jumps in a month."

For complete article –Click

Hudson Valley Restaurant Week Fall 2012

Mon, 01 Oct 2012 09:00:00 EST

New This Fall November 5 - 18, 2012 Book Now!

Hudson Valley Restaurant Week, the region’s largest culinary event, will return for an encore November 5-18. Popular demand from both chefs and diners spurred event organizers to schedule a second culinary extravaganza.

The Valley Table's Hudson Valley Restaurant Week

Can you spot the cameo performance of Anne and Harvey Brown? The Valley Table's Hudson Valley Restaurant Week is the perfect time to discover world-class dining while exploring the scenic, historic and agricultural wonders of New York's famed Hudson River Valley. Let the feasting begin.

Come dine and sample the prodigious bounty of the Hudson Valley in the hands of the best chefs when Hudson Valley Restaurant Week returns for an encore this fall. From November 5-18, participating restaurants will offer three-course, prix-fixe lunches for $20.95 and dinners for $29.95 (plus beverage, tax and tip, of course). It's a fabulous showcase of Hudson Valley cuisine as well as a great opportunity to sample local wineries, farms, places to stay and farmers' markets. Take this opportunity to really enjoy what the Hudson Valley has to offer.
Note: reservations typically open 30 to 40 days ahead, and then they can fill up fast. The complete list of restaurants goes live online Sept 27th on HudsonValleyRestaurantWeek.com

Kick Off Hudson Valley Restaurant Week 2012

Hudson Valley Restaurant Press

“A lot of people have asked for a second Restaurant Week,” says Janet Crawshaw, publisher of The Valley Table magazine and founder of Hudson Valley Restaurant Week, “and we are excited to offer a fall Restaurant Week. Fall is a very special time to visit the Hudson Valley and a great time to showcase the valley and for restaurants to feature local products. It’s a win-win for everyone.”

7 Homes in the Rhinebeck Central School District Sold in September 2012

Mon, 01 Oct 2012 09:00:00 EST

The Source for the 7 Rhinebeck homes sold in Rhinebeck NY in September 2012 is the Mid–Hudson Multiple Listing Service Inc (MHMLS). These figures for single family detached homes sold in Rhinebeck NY do not represent the total Rhinebeck NY real estate sales in Dutchess County. These homes are in the Rhinebeck Central School District. These figures for homes for sale that sold in Rhinebeck NY reflect the sales activity of the MHMLS, which comprises the largest sales volume sampling. .

I would like to briefly explain the MHMLS.

The real estate brokers in the MHMLS have agreed to share their listings– information on properties features. All the homes on the MHMLS are pooled together in one listing.

7 Rhinebeck Homes for Sold in the Month of September 2012

Orginal Listed Price	Sale Price	Percent Price Reduction	Listing Month & Year
$260,000	$246,000	05 %	June 2012
$490,000	$287,000	41 %	June 2008
$329,000	$300,000	09 %	April 2011
$475,000	$455,500	04 %	April 2012
$598,000	$482,000	19 %	August 2011
$649,000	$600,000	08 %	March 2012
$749,000	$699,000	07 %	March 2012

Please Note:

1. 7 of the 7 Rhinebeck homes sold for less than the Original List Price.

2. None of the Rhinebeck homes had list prices above $700,000.

3. 5 of the 7 Rhinebeck homes sold for less than $500,000.

4. The home longest on the market, April 2008, had the highest price reduction of 41%.

5. The 4 homes listed in 2012 had the lowest price reductions 4-8%.

6. There is a new dimension appearing now, in the past there was only the direct correlation with time on market and the % price reduction. Now the seller's need to sell linked to a “lower appraisal based selling price” might be a new governing operating dimension illustrated by the lowest percentage price reduction between the Original List Price and the Sale Price.

Rhinebeck Real Estate News Fewer Americans Signed Housing Contracts in August

Sat, 29 Sep 2012 09:00:00 EST

After Brisk Summer, Pending Home Sales Drop in August

Published September 27, 2012

By Diana Olick CNBC Real Estate Reporter

Fewer Americans signed contracts to buy existing homes in August. After gains in home sales over the spring and summer, an industry survey surprised expectations, registering a 2.6 percent drop in pending home sales from July. This drop forecasts that final closings on existing homes will be lower heading into fall.

"The performance in month–to–month contract signings has been uneven with ongoing shortages of lower priced inventory in much of the country, and across most price ranges in the West, but activity has remained at notably higher levels this year," wrote National Association of Realtors' chief economist Lawrence Yun in a release.

Yun pointed out that contract signings have been up year–over–year for sixteen consecutive months, which indicates overall home sales will be higher in 2012 than 2011. The Realtors predict a 9 percent gain to 4.64 million units.

Regionally, pending home sales rose slightly in the Northeast, up 0.9 percent month–to–month, but fell 2.6 percent in the Midwest, 1.1 percent in the South, and really plummeted out West, down 7.2 percent.

The drop in the West is largely due to a supply issue on the low end of the market. Investors have been fueling the low end with all–cash, bulk purchases of foreclosures in markets like Phoenix, Las Vegas, and parts of Southern California. Supplies of those homes have dropped dramatically, leaving little for those investors to buy.

Some housing analysts are concerned that the housing recovery so far has been driven so much by all–cash investors that as these supplies dwindle, due to continuing bank delays and more loan modifications, the overall home sales numbers will drop going into the end of the year.

New home sales for August also disappointed, coming in lower than expected. New home sales are measured by signed contracts, rather than closings.

For complete article –Click

Rhinebeck Real Estate News Consumer Lending Can Depend On Where You Live

Sat, 29 Sep 2012 09:00:00 EST

Need a Loan? Where Do You Live?

Published September 27, 2012

By DAN FITZPATRICK Wall Street Journal

Banks Boost Consumer Lending in Smaller Cities That Skirted Mortgage Crisis, but Big Cities Trail

The long–awaited recovery in bank lending to consumers is well under way in some smaller U.S. cities but remains depressed in large metropolitan areas on the East and West coasts, according to an analysis of data by The Wall Street Journal.

The geographic divergence in new credit highlights the uneven recovery in different parts of the U.S. In some smaller population centers across the Great Plains and Midwest that rely on energy, food processing and manufacturing industries, banks are taking as much risk as they did precrisis.

But new lending still is trailing in larger coastal areas that were dominated by construction and finance.

In Cedar Rapids, Iowa, the 177th–largest metropolitan area in the U.S., banks made 11% more new consumer loans in 2011 than they did at the peak of the U.S. housing boom in 2006, data from Equifax Inc. and Moody's Analytics show. The amount of new loans in the fourth quarter alone was 52% higher than the same period in 2006.

The jump in Cedar Rapids was the largest among roughly 200 U.S. metropolitan areas cataloged by Equifax and Moody's, a population mass that comprises more than 80% of all U.S. borrowers.

The largest drops were in cities scattered across California and Florida, the states hardest hit by the U.S. housing bust. New lending in Merced, Calif., which experienced one of the worst housing collapses in the U.S., ended last year 81% below the peak in 2006. The three largest U.S. cities—New York, Chicago and Los Angeles—experienced decreases of 38%, 44% and 55%, respectively.

Banks and investors, still wary about lending to Americans for mortgages and almost everything else, are eagerly lending them money to buy cars, nourishing one of the few sectors of the consumer economy that is doing well. Neil Shah has details on The News Hub.

All told, U.S. consumer–loan originations were down 40% in 2011 compared with 2006, the data show.

"A lot of these places that were not hit hard that tend to be concentrated in the Midwest are recovering more quickly," said Mike Shires, an associate professor at Pepperdine University's School of Public Policy who specializes in economic development and local finance. "The urban areas will have to follow for us to feel like it's a true economic recovery."

U.S. banks took flak during the financial crisis for clamping down on lending to conserve capital as a cushion against mounting loan losses. Loan demand also fell as companies shelved expansion plans and consumers trimmed spending. That combination made it harder for the U.S. economy to rebound.

Now, loan portfolios at U.S. banks are growing and loan demand is returning, but it is largely in the form of new lending to small and midsize businesses. Such loans were up 17% in the second quarter of 2012 compared with the same year–ago period, according to banks surveyed by Keefe, Bruyette & Woods. Consumer loans, on the other hand, were down 0.9% in the second quarter compared with the same period last year, according to KBW.

The cities in the middle section of the U.S. that experienced the largest increases in consumer lending share several characteristics. They all have low jobless rates, stable employers and real–estate markets that avoided speculative bubbles—leaving them with stronger household credit conditions. These include the college towns and state capitals of Madison, Wis., and Lincoln, Neb., as well as the agricultural centers of Davenport, Iowa, and Omaha, Neb.

Some cities also are getting a lift from government spending.

Lending in Clarksville "really has never fallen off" since the financial crisis, Ms. Moore said. New loans made to consumers in the Clarksville area in 2011 exceeded those in 2006 by 6%, according to the data from Equifax and Moody's. During that same period, the average sales price for a home in Clarksville increased 30% to $178,354, according to Nashville, Tenn.–based appraiser Richard Exton.

Iowa's second–largest city, with a metropolitan–area population of 260,575, is riding a recent surge in commodities prices, an influx of federal aid that followed a 2008 flood and the stability of the town's largest employer, aviation electronics maker Rockwell Collins Inc. COL +1.04% The unemployment rate in Cedar Rapids was just 5.2% in July, well below the national average that month of 8.3%, according to Moody's. The highest the local jobless rate climbed in the aftermath of the financial crisis was 7% in January 2010.

"I don't think banks in our markets ever pulled back because we didn't have the same magnitude of problems that other parts of the country had," Mr. Helling said.

For complete article –Click

Rhinebeck Real Estate News Housing Alert: Short Sales May Be in Big Trouble.

Fri, 28 Sep 2012 09:00:00 EST

Housing Alert: Short Sales May Be in Big Trouble

Published September 28,2012

By Diana Olick CNBC Real Estate Reporter

As lenders plow through a backlog of over five million delinquent mortgages, short sales are becoming an ever more popular escape route. A short sale is when the bank allows a home to be sold for less than the value of the mortgage. The bank takes the loss, but that loss is generally less than a more costly foreclosure.

The government has been pushing more short sales at Fannie Mae and Freddie Mac through financial incentives, and banks are streamlining the process. Short sales have been gaining so much steam, they actually surpassed sales of foreclosed properties last spring, according to LPS Applied Analytics' Home Price Index. But all the progress that has been made could end abruptly.

A short sale is debt forgiveness. Debt forgiveness is taxable. In order to help the huge volume of troubled borrowers and promote more short sales, Congress in 2007 passed the "Mortgage Forgiveness Debt Relief Act and Debt Cancellation." The debt forgiveness from a short sale or a mortgage principal reduction would no longer be taxable. That act is part of many Bush era tax cuts that expire at the end of this year. Without an extension, short sales would grind to a halt, as might mortgage modifications that involve principal reduction.

"Realtors believe if the legislation is not extended, households who are already struggling to pay their mortgages will be further burdened with tens of thousands of dollars in additional taxes that they probably can't afford to pay because the IRS would count the cancelled debt as income," said Jamie Gregory, a lobbyist for the National Association of Realtors.

Short sales and mortgage principal reduction are the foundation of the $25 billion mortgage servicing settlement signed early this year by the nation's largest lenders and state attorneys general. As of the end of August, first lien principal reduction trial modifications were offered and begun for about 28,000 homeowners, totally approximately $3 billion of potential relief, according to the settlement monitor, Joseph A. Smith. Banks have granted $10.6 billion in consumer relief, which would include short sales. More than a quarter of a million short sales were completed in the first half of 2012, according to RealtyTrac.

So what is the possibility of congress extending the tax relief? One Hill–watcher puts it at 60–40. The Senate Finance Committee passed a package of tax extenders right before the recess, including a one year mortgage relief extension, but leadership in the House of Representatives has not figured out how it wants to handle these extenders. With the looming "fiscal cliff," tax cuts are an increasingly tough sell. This particular extension does have bipartisan support, but that doesn't always mean passage in Congress, especially around a presidential election.

"It could be an uphill fight to get this passed this fall, as it will likely get caught up in larger debate of over taxes, deficits and the financial cliff. But we believe that it is a helpful provision for distressed borrowers, as getting a tax bill on forgiven debt can be another punch in the gut for families who are already facing financial hardship," says David Stevens, president and CEO of the Mortgage Bankers Association.

Rep. Jim McDermott (D–WA), who introduced legislation last March to extend the tax relief for three years said in a release, "Collecting federal income tax on relief intended for struggling homeowners is not only bad policy, but is simply wrong."

With great uncertainty as to the fate of the tax relief, some say short sales could get a boost this fall. Borrowers and banks alike may rush to get in before the expiration, which could help boost overall home sales numbers.

For complete article –Click

Rhinebeck Real Estate News: Home Prices are on the Rise

Tue, 25 Sep 2012 09:00:00 EST

Housing Market Displays New Vigor as Prices Rise

Published September 25, 2012

By NICK TIMIRAOS Wall Street Journal

Home prices notched their strongest year–to–date gains since 2005, climbing 5.9% through July and signaling the housing market's steady trudge toward recovery.

The rising prices in Tuesday's Standard & Poor's/Case–Shiller 20–city index could play a pivotal role in changing consumer sentiment toward housing and drawing in buyers from the sidelines. Another lure: Mortgage rates are falling to record lows after the Federal Reserve resumed buying mortgage–backed securities two weeks ago, helping to offset rising prices.

"Housing is no longer a negative. It is turning positive and we see the data reflecting that," said Ivy Zelman, chief executive at research firm Zelman & Associates.

Home prices typically are strongest in the summer, the busiest season for home sales, before declining later in the year. But the 5.9% rise far surpasses the 0.4% gain seen through the same period last year and the 2% gain in 2010.

For the broader economy, the turn in housing could provide a much–needed boost if it continues. Rising prices could eventually lift consumer spending if homeowners begin to feel wealthier again. Housing construction, a big generator of jobs, also has the potential to play a major role in economic growth.

Rising home prices could shape voters' thinking about the economy in the home stretch before the presidential election. National prices are at nearly the same level as when President Barack Obama took office 3½ years ago, though there is considerable variation from one city to another. The Obama campaign has argued that a series of policy interventions helped to arrest a steep slide in home prices, while his Republican challenger, Mitt Romney, has argued that government interference has delayed the recovery.

Mr. Obama's political standing has solidified recently in tandem with rising economic optimism. In the latest Wall Street Journal/NBC News survey, Sept. 12–16, some 42% of voters said the economy would get better in the next 12 months, the largest share since late 2009. At the same time, Mr. Obama's job approval rating hit 50% for the first time since March.

Construction of single–family housing in August reached its highest level in more than two years, though it is still far below its pre–bubble level, the Commerce Department said last week. It is set to report on August sales of newly built homes on Wednesday.

Rising prices largely reflect a dwindling number of foreclosed homes being sold by banks and other lenders as well as stronger demand for those properties from investors. Foreclosures and other "distressed" homes typically sell at larger discounts, and with fewer of those properties selling, prices are under less pressure.

But rising demand, especially at the low end, is putting upward pressure on prices as traditional buyers—as opposed to investors—feel more confident about jumping into the market.

"This is our third year where people have not seen big drops in housing. The cautious ones are feeling a little bit more comfortable," said Jim Klinge, a real–estate agent in Carlsbad, Calif.

People tend to move out to the suburbs for a yard, the quality of the school districts, or to afford a bigger house than they can in the city. MarketWatch's Christopher Noble and Laura Mandaro discuss a new list of the top 10 best places to live for suburbanites.

Compared with a year ago, prices in July were up in 16 of the 20 metro areas tracked. Home prices are up by 15% since the end of last year in Phoenix and by 10.1% in San Francisco. By contrast, prices were up by just 1.7% in the New York metro area, the smallest year–to–date gain of any of the 20 cities. Nationally, prices were up 1.2% from July 2011, the largest year–over–year gain since home–buyer tax credits fueled a burst of sales two years ago.

In some cities, diminished supply has given rise to bidding wars—and headaches for would–be buyers. "I'm very stressed over this because I see that the prices are rising, but there aren't that many homes available," said Joanna Welo, who is looking to buy a home in Elgin, Ill. Ms. Welo, who is 38 years old, said her teenage stepchildren moved into her two–bedroom townhome last year and they need more space.

"We are anxious to buy something," said Ms. Welo, who has made offers on two homes so far this year. But she keeps wondering if banks are going to list more foreclosures, which is causing her to hesitate. "Maybe something that's closer to what we are looking for is going to be released by the banks," she said.

Price gains also could prompt some potential sellers to hold out for a better deal next spring. "When people ask us for candid advice about whether it's a good time to sell, we say, 'No, it isn't. We think next year is a better time to sell,' " said Glenn Kelman, chief executive of Redfin, a Seattle–based real–estate brokerage that does business in 19 markets.

Some economists question whether the budding housing recovery is sustainable, particularly when wage and job growth remain sluggish. While home prices typically weaken during the second half of the year, the pace of such possible declines depend largely on whether the pace of buying keeps up and how banks resolve their overhang of distressed loans that could become foreclosures.

If demand persists and supply remains in check, then "home prices are easily past their bottom and are approaching their self–reinforcing portion of the cycle," Ms. Zelman wrote in a note to clients this month.

However, headwinds could keep a lid on rapid price growth. Millions of homeowners owe more than their homes are worth and can't sell their properties. That has frozen the important "trade–up" market—in which buyers move to bigger properties—in many regions hit hardest by the housing bust. Prices nationally are down by 30% from the peak seen during the housing bubble, and hovering around levels last seen in mid–2003.

Many would–be buyers have too much debt to qualify for a mortgage, and lending standards remain tight. Conservative appraisals also are snarling deals. Dave Bernhard, a 51–year–old engineer for an aircraft company, offered to pay $495,000 this summer for a home in Lake Forest Park, Wash., that overlooks Seattle's Lake Washington.

An appraiser said the three–bedroom home was worth only $400,000, and because his lender wouldn't allow a second appraisal, Mr. Bernhard backed out of the deal. His real–estate agent, Mark Corcoran, said the home went under contract a few weeks later with a different buyer after a new appraisal came in at $493,000.

Mr. Bernhard, meanwhile, is under contract for a $400,000 home in Mukilteo, Wash. "I am waiting with bated breath to see where that appraisal comes in," he said.

For complete article –Click

Rhinebeck Real Estate News Buying Pays Off After Three Years

Tue, 04 Sep 2012 09:00:00 EST

For renters, buying a home pays off after three years on average

Published August 2, 2012

By Alejandro Lazo, Los Angeles Times

Real estate website Zillow says the 'break – even horizon' for potential home buyers varies widely depending on location.

Real estate website Zillow has a provocative data point for every renter thinking about buying these days: That move pays off after just three years on average nationwide.

The company, which lists for–sale and for–rent information on its site, has released a new analysis of what it calls the "break–even horizon," comparing what it would cost to buy or rent the same home in a number of U.S. markets over time.

The rent–or–buy calculus varies widely depending on where you live.

In the combined Los Angeles and Orange counties, the magic number is 4.3 years, assuming the buyer has made a 20% down payment. Buying wins out after only 1.6 year in the desert community of Banning. But Newport Beach residents must wait 14 years for buying to make more financial sense than renting.

The analysis takes into account a host of factors potential buyers should think about when considering the leap, including the down payment, mortgage and rental payments, buying and selling costs, property taxes, utilities, maintenance costs and tax deductions. The analysis adjusts for inflation and forecasts home value and rental price appreciation.

Zillow senior economist Svenja Gudell said the data should help homeowners get a rough and immediate sense of whether buying makes sense in a particular area in relation to their financial situation.

"For a home buyer out there, it is really tough to get a good grip on the buy–versus–rent decision," Gudell said. Although buying a home is a deeply personal decision, she said, the analysis gives consumers "a sense for 'Am I ready to make this decision?'"

The new take on the classic rent–versus–buy debate comes at a tenuous moment for the housing market. Many analysts believe that a housing bottom has been reached but don't expect a return to the heady days of the real estate bubble. There is already some concern about the strength of the recovery, with home sales slowing in June as inventory remained tight and buyers paid higher prices.

At the same time, rents are rising, housing affordability is at record levels, and mortgage interest rates remain very low. These factors are prompting many renters to consider homeownership.

Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, noted that the main lesson from the subprime mortgage debacle and the housing bust was that homeownership shouldn't be pushed at all costs. Federal policy has been adjusted to support this new point of view.

"One of the things we have learned in recent years is, obviously, house prices don't always go up, and even over the very long term in certain markets homeownership may only offer a minimal return," Gabriel said.

"What we have all learned is to treat homeownership as a bit of a dangerous animal. You know it's not always good, and it's not good for everyone."

Things to consider when buying, particularly in an slowly appreciating market, include how mobile will you be, your financial situation, marital status, career goals and personality, Gabriel said.

Richard Green, director of the USC Lusk Center for Real Estate, added that in many regions buying has become increasingly attractive compared with renting. There are also non–financial reasons for buying.

"I can enjoy living in this house for the rest of my life, and nobody can throw me out of it," he said. "You are consuming something, and you have control over it, and control has some value."

Zillow's analysis, which covered more than 200 metropolitan areas and 7,500 U.S. cities, found that buying is a better financial decision than renting in the Riverside–San Bernardino area if you live in the home for at least two years. That rises to 3.2 years in the area including Oxnard, Thousand Oaks and Ventura.

For complete article –Click

Rhinebeck Real Estate News Jumbo Loans Are Making A Comeback

Mon, 27 Aug 2012 09:00:00 EST

In Mostly Tepid Housing Recovery,

Jumbo Home Loans Set Hot Pace

Published August 27,2012

By ANNAMARIA ANDRIOTIS WSJ Reporter

By most measures, the housing market's recovery has been slow. But private–market "jumbo" mortgages—larger, higher–cost home loans that aren't guaranteed by the federal government—are making a much faster comeback.

Private–market jumbo loans accounted for about 15% of the total dollar amount of mortgages distributed by Bank of America Corp.

In all, lenders doled out $38 billion in private jumbo mortgages during the second quarter of 2012, up 65% from a year earlier, according to new data compiled by Inside Mortgage Finance, a trade publication. That is the highest quarterly dollar amount since the first quarter of 2008.

"This is a real positive for the entire marketplace, and hopefully this is the first sign that credit markets will open up," says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla.

Unlike smaller mortgages, many jumbo loans aren't eligible to be purchased by the governmental–chartered agencies known as Fannie Mae and Freddie Mac, so they tend to be more expensive for borrowers. In most of the country, private–market financing is needed for loans exceeding $417,000; the cutoff points are higher in more expensive markets.

Demand for these loans has been driven in part by a surge in luxury home sales. Sales of $1 million–plus homes rose 19% in July from a year earlier, according to the National Association of Realtors.

But private jumbo mortgages also have become more affordable than in the past. Rates on 30–year jumbos now average 4.22%, down from 4.82% a year ago and 5.27% two years ago, according to HSH.com, a website that tracks mortgage data. Those rates are currently about half a percentage point higher than those on regular mortgages; in 2008 and 2009, that spread was more than twice as wide.

Because they keep most of these loans on their own books, the lenders incur all the losses if a borrower defaults. Keith Gumbinger, a vice president at HSH.com, says lenders have been able to take on such risks because their balance sheets are in better shape and because they are subjecting borrowers to rigorous screening.

Borrowers typically need a 20% to 25% down payment on a private jumbo loan, and on mortgages over $1 million, that can jump to 30%, says Joel Berinson, president of Ultra Mortgage, a mortgage broker in Marlton, N.J. Still, Mr. Berinson says his firm has sold roughly 30% more in private jumbos so far this year than it had at this point last year.

For complete article –Click

Rhinebeck Real Estate News What is the Worth of a Home?

Thu, 09 Aug 2012 09:00:00 EST

What your home is really worth?

By Alison Rogers at Money August 9, 2012

NEW YORK (Money magazine) –– When it comes to assessing a home's value, real estate agents and homeowners tend to be an optimistic bunch.

In the post–bust world, appraisers are a different story. They have to predict a realistic value for your home that the bank can use to extend credit to a borrower –– and that number can make or break your sale or refinance.

Appraisers say the following five areas are where homeowners often misjudge the worth of their abode.

1. The outside

The appraiser sees: Overgrown bushes and chipped paint.

What he does: Slices as much as 3% off the value of an average–size home.

Why: Curb appeal is primo. And an unkempt yard is a sign that there may be other issues.

"A good–looking lawn and bushes imply that you also take care of the internal systems in the house," says Jonathan Miller, president and CEO of a New York City–based appraisal firm that works throughout the tri–state area.

Moreover, the more meticulous your neighbors are about grooming, the more your appraiser will downgrade the value of your home.

"If a lot of the nearby properties are professionally maintained, the one that sticks out like a sore thumb will get a harder adjustment than in a subdivision where there's more variation," says San Diego appraiser Armando Ortiz.

2. Basic systems

The appraiser sees: A brand–new roof.

What he does: Nothing.

Why: Just as a knee replacement won't make you look 20 years younger, a new roof, furnace, or boiler isn't considered an improvement to your home.

That said, if your roof is in disrepair, replace it: Signs of leaks or discoloration can knock a significant amount off the home's value.

"When people buy a home, they expect the roof to be working," says Columbus appraiser Mike Armentrout. "So while a new one isn't an added feature, it will help your chances of a sale."

3. The basement

The appraiser sees: A recently finished basement with a half bath.

What he does: Adds about 2% to the value of the home.

Why: Yes, your finished basement adds value –– but don't expect it to count like first–floor space.

The addition of a bedroom and quarter bath on the ground floor could increase your home's value by up to 20%, especially if you've got only one other bathroom.

"A below–ground basement normally isn't included in the square footage of the house," says Miller.

The same rule applies to outbuildings like a pool–house casita, painting shed, or studio.

4. A remodel

The appraiser sees: An expensive, custom–made, built–in entertainment center.

What he does: Makes a negative adjustment to the valuation.

Why: "Cost doesn't equal value," says Miller.

Renovations that are at all trendy –– or not in keeping with the historical period of the home –– will be assessed at the cost of ripping them out.

Timeless improvements, on the other hand, such as a deep sink or new wooden cabinets in the kitchen, will add value.

So if you're thinking of remodeling, ask a local real estate agent to tell you what's on the wish list of today's buyers.

For complete article –Click

Rhinebeck Real Estate Home Prices and Rents Rise

Wed, 08 Aug 2012 09:00:00 EST

In a Twist, Both Home Prices and Rents Rise

Published August 7, 2012

By Diana Olick CNBC Real Estate Reporter

Home prices across the nation continued their upswing in June, according to a new report from CoreLogic. Including sales of foreclosures and short sales (selling for less than the value of the mortgage), prices rose 2.5 percent from a year ago. That is not quite as high as the annual increases seen in April and May. With the first half of the year now on the books, analysts are asking if prices can sustain.

"At the halfway point, 2012 is increasingly looking like the year that the residential housing market may have turned the corner," said Anand Nallathambi, president and CEO of CoreLogic. "While first–half gains have given way to second–half declines over the past three years, we see encouraging signs that modest price gains are supportable across the country in the second–half of 2012."

Home price gains will continue to be as much a factor of supply as they are of overall consumer confidence. While confidence in the overall economy has slipped slightly, optimism in the housing market remained strong in July, according to a just–released Fannie Mae survey:

"Survey respondents expect home prices to increase 1.7 percent in the next 12 months, down slightly from the survey high of 2.0 percent recorded in June. Eleven percent of respondents — the lowest level recorded since the survey began in June 2010 — believe home prices will drop in the next year. Also, in the highest level seen since the survey's inception, 16 percent of consumers say it is a good time to sell."

Still one quarter of respondents, an increase from June, are concerned about losing their jobs, and jobs have been the leading factor in the housing recovery. It is that unemployment uncertainty that has led so many younger Americans in the past few years to rent. That continued demand is pushing rents ever higher.

Asking rents rose in 24 of the 25 largest rental markets from a year ago, according to a new report from online real estate company Trulia. Rents are pushing double digit gains in San Francisco, Miami, Oakland, Denver, Seattle and Boston, and rents are rising faster than asking prices in 21 of the 25 largest rental markets year–over–year.

"For the first time, (home) prices are up year over year in a majority of metros, and asking home prices have increased for six straight months," writes Trulia's chief economist Jed Kolko in a release. "Rents, however, are rising even faster than prices in most markets. These price and rent increases, along with declining vacancies, should encourage new construction, which means housing will finally start contributing to the economic recovery."

For complete article –Click

Rhinebeck Real Estate News: Home Buyer, Seller or Renter

Thu, 02 Aug 2012 09:00:00 EST

Buy a Home or Sell or Rent a Home?

Published August 2, 2012

By Diana Olick CNBC Real Estate Reporter

American homes have never been more affordable than they are today. Prices are down dramatically, mortgage rates are at record lows and desperate sellers are willing to make concessions.

Still about one third of Americans choose to rent, despite the fact that 85 percent say owning makes more sense financially than renting over the long term, according to a new Fannie Mae study.

Buying is cheaper than renting in most U.S. markets, according to another study from online real estate sale site Zillow. The upfront costs may be higher, but Zillow looked at what it calls the "breakeven horizon," which is when the cost of owning (including down payment, taxes, fees) meets the cost of renting. While markets will vary neighborhood to neighborhood, the breakeven point in many markets, like Minneapolis, Baltimore, Denver, St. Louis, Chicago and Charlotte, is under three years.

The main barrier to homeownership for many, however, is the mortgage market.

The days of free–wheeling lending are over, and credit worthiness is now king. There are low down payment options, like the FHA, but too many potential buyers don't meet the credit qualifications either for the great low rates or for the loan itself.

The other half of the equation is attitudes.

Consumer confidence in housing is still in the basement, especially for younger Americans, who make up 46 percent of the rental market, according to Fannie Mae. Younger Americans not only have the highest unemployment rate, but they also don't have the cash for today's higher down payments, and in many cases they've seen their parents lose massive amounts of home equity. Fannie Mae's survey found that attitudes played a much bigger role in the decision to buy for some, while demographics played higher for others, and home values, believe it or not, played a very small role:

Demographics such as income, age, marital status, and employment status are the primary drivers of current homeownership status and the own–rent intention for outright homeowners (those who don't have a mortgage). However, attitudes are the key drivers of the own–rent intention for renters and homeowners with a mortgage — two groups that account for about 80 percent of housing units in the U.S. Surprisingly, we also found that exposure to default, perceived home value appreciation/depreciation, and self–reported underwater status make minimal incremental contributions to predicting the own–rent intention in the models.

While renters have historically been younger, lower wage–earners, nearly 20 percent of renters make between $50,000 and $100,000 a year in income, according to Fannie Mae. Nearly half of those who own a home without a mortgage are over the age of 65. But the renters keep coming, as aging baby boomers downsize and as younger cohorts choose not to fight the mortgage market.

"While we do agree that housing is bottoming, that doesn't mean we're coming back strongly," says Oliver Chang, former head of housing strategy at Morgan Stanley , who just launched Sylvan Road Capital, a new real estate fund which intends to invest $1 billion in the single family rental market over the next two years. "It is still incredibly difficult to get mortgage credit. The lending environment, whether government–backed or private, is still unclear."

Despite the recession, the household formation rate has been growing steadily, which means more demand for shelter. Rentals will likely absorb much of that demand, unless and until lending ramps up. It will take several years for many Americans to not only rebuild their credit scores and rebuild their faith in home ownership.

For complete article –Click

Rhinebeck Real Estate Where are Move Up Home Buyers

Wed, 01 Aug 2012 09:00:00 EST

Where Are the Move – Up Home Buyers?

Published August 1,2012

By Diana Olick CNBC Real Estate Reporter

Housing has never been more affordable, and yet home ownership is still falling and more Americans are renting. The supply of homes for sale is down 24 percent from a year ago, according to the National Association of Realtors, but that still doesn't explain why so few buyers are jumping in. The answer lies in the immobile move–up buyer.

"At current mortgage interest rates, the monthly cost of the typical new mortgage — at about 12 percent of median income — is not much more than half normal levels," notes Paul Diggle of Capital Economics. "In other words, housing is very affordable."

Still, while mortgage refinances soar to a two–year high, weekly numbers from the Mortgage Bankers Association show that applications to purchase a home are down by 6 percent over the past year.

Jason and Pascale Royal would love to move up to a bigger home. With a new baby and a dual income, they are even willing to pay more for a bigger mortgage. The trouble is, the mortgage on their south Florida home is about $100,000 more than the home is currently worth. To add insult to injury, they can't get any help from the bank or the government.

"Because we've been current on our payments and have never been late or missed one, we don't qualify for any of these short sales or any of these special programs to help underwater borrowers," says Jason Royal.

Jason and Royal are among 11.4 million borrowers, or nearly 24 percent of all residential properties with a mortgage, that are currently in a negative equity position, according to CoreLogic. In addition, 2.3 million borrowers have less than 5 percent equity, referred to as near negative equity. But mortgage analyst Mark Hanson takes it one step further, adding that most move–up buyers need to just 6 percent extra to pay the Realtor, but 20 percent to put down on the next mortgage. He therefore puts real or "effective" negative equity at 80% loan to value; that is, you probably need about 20 percent equity in your current home to move up. He calculates about 25 million borrowers don't meet that amount of equity. That's twice as many underwater borrowers as most analysts and politicians purport.

"Investors and first–timers have come in and out of the market throughout history at various times for various reason, but underpinning housing has always been move–up/across/down buyers," says Hanson. "Half of the repeat buyers have died. They are down for the count due to negative equity, "effective" negative equity, low quality credit, or legacy 2nd liens they can't extinguish. This is a huge problem for anybody betting on 'escape velocity' or a 'durable recovery' in housing."

The Royals could just walk away, as many like them already have. The Obama administration has been pushing its program that pays lenders to slash mortgage balances, but this week the regulator for Fannie Mae and Freddie Mac said the two mortgage giants will not participate. The administration claims reducing principal will keep borrowers from walking away. Fannie and Freddie's regulator, Edward DeMarco, claims offering principal reduction will cause current borrowers to miss payments just to qualify. The Royals appear to prove both of them wrong. They won't walk away and they won't stop paying.

"I bought this house, I sat down, I signed the paperwork, I knew the numbers, and so I've made my payments as committed, and I don't want to stop paying to create a situation where the bank wants to get me out of the house. I'd rather do it in a way that's fair to both parties," says Jason.

But the Royals also won't move, and therefore won't be able to contribute to the housing recovery.

For complete article –Click

Rhinebeck Real Estate News Soaring Home Insurance Deductibles

Fri, 13 Jul 2012 09:00:00 EST

Insurance Deductibles Soar

Published July 13, 2012

By Karen Blumenthal WSJ Online

The first shock came when the innocent-looking grape-sized hail tap-dancing across my roof last month suddenly turned to shingle-shredding stones that were bigger than golf balls.

The second came when our family confronted a major change to our USAA homeowner's policy: Instead of a deductible of $500 or $1,000, it now comes with a deductible of 2% of the insured value of our home for wind and hail damage—which means insurance will cover only about half the cost to replace our roof.

Other policies in our area, it turns out, might require deductibles of up to 5% of the insured value for hail or wind damage, or $12,500 on a $250,000 home. That amount will go up as the cost to replace homes climbs.

State Farm, the nation's largest home insurer, says such dollar deductibles are the standard in Northeastern states. But it changed its deductibles across the board in Texas last year to 1% to 5% of the home's insured value, or a minimum of $1,000.

"We're going to see that around the country within a few years," says Robert Hunter, director of insurance at the Consumer Federation of America.

Coverage, too, has been changing. In a report earlier this year, Mr. Hunter found that insurers have been pushing some of their risk to consumers by capping how much they will pay to replace a home, for example, or refusing to pay extra to account for higher material costs or to meet modern construction codes.

All of this puts the burden on homeowners to monitor their policies so they will be covered in a catastrophe without facing a financial setback.

Here are some steps to help:

Play "what if." You should review your policy at least every three years, making sure you have enough coverage to cover costs in today's market. Insurers and consumer groups recommend you play "what if" with your agent so you understand exactly what is covered: What if a tree comes down on my roof? What if a pipe breaks? What if I can't stay in the house?

Consumer advocates emphasize that you should ask these questions before you buy a policy. Once you sign up, some insurers might actually count your inquiries about a potential problem as a claim—even if you never actually file a claim or collect a penny.

Make your claims wisely. One large claim will affect you less than multiple small ones. Of course, you buy insurance to be covered, so you are always free to file a claim. But you should know that insurers keep close track of claims and will penalize you for making too many, even if you just happen to hit a string of bad luck.

Two losses in three years that aren't related to weather will result in higher rates or even a decision to not renew your policy, says Paul Quinn, special assistant to the chief claims officer at Farmers Insurance Group. "A homeowner's policy is not a maintenance policy," he says. Insurers expect homeowners to take care of roofs and pipes rather than waiting for things to go wrong.

By contrast, claims for catastrophic events like fires and tornadoes are less likely to hurt you. While insurers may consider past experiences when setting rates, they are supposed to focus on the likelihood of future risks. So the estimated $1.2 billion in home and auto claims from my area's recent hailstorm, in theory, shouldn't immediately result in bigger premiums.

For complete article –Click

Dirt Road Realty News

Rhinebeck Homes Sold in the 1st Quarter 2013

List Price vs Sale Price of Rhinebeck Homes Sold in the 1st Q of 2013

Original List Price vs Sale Price of Rhinebeck Homes

Sold in the 1st Quarter of 2013

Hudson Valley Restaurant Week Spring 2013

Rhinebeck Homes Sold Between August 2012 and January 2013

Rhinebeck Homes SoldBetween August 2012 and January 28,2013

Rhinebeck Real Estate Market for 2012

83 Homes Sold in the Rhinebeck in 2012

Rhinebeck Real Estate News How Will Tight Credit Effect The Rhinebeck Real Estate Market?

Rhinebeck Real Estate News How is the Rhinebeck Housing Market Affected by Appraisals

Hudson Valley Restaurant Week Fall 2012

7 Homes in the Rhinebeck Central School District Sold in September 2012

Rhinebeck Real Estate News Fewer Americans Signed Housing Contracts in August

Rhinebeck Real Estate News Consumer Lending Can Depend On Where You Live

Rhinebeck Real Estate News Housing Alert: Short Sales May Be in Big Trouble.

Rhinebeck Real Estate News: Home Prices are on the Rise

Rhinebeck Real Estate News Buying Pays Off After Three Years

Rhinebeck Real Estate News Jumbo Loans Are Making A Comeback

Rhinebeck Real Estate News What is the Worth of a Home?

Rhinebeck Real Estate Home Prices and Rents Rise

Rhinebeck Real Estate News: Home Buyer, Seller or Renter

Rhinebeck Real Estate Where are Move Up Home Buyers

Rhinebeck Real Estate News Soaring Home Insurance Deductibles

Rhinebeck Homes Sold
Between August 2012 and January 28,2013