America's Best High Schools

Methodology: America's Best High Schools
U.S. News looked at thousands of public schools to identify the most outstanding.
By Robert Morse
Posted December 9, 2009
The 2010 U.S.News & World Report Americas Best High Schools methodology, developed by School Evaluation Services, a K-12 education data research business run by Standard & Poor's, is based on the key principles that a great high school must serve all its students well, not just those who are collegebound, and that it must be able to produce measurable academic outcomes to show the school is successfully educating its student body across a range of performance indicators.
We analyzed 21,786 public high schools in 48 states plus the District of Columbia. This is the total number of public high schools that had 12th-grade enrollment and sufficient data, primarily from the 2007-2008 school year, to analyze. (Nebraska and Oklahoma did not provide full data. Their schools were evaluated for honorable mention, but none met the criteria.)
A three-step process determined the best high schools. The first two steps ensured that the schools serve all their students well, using state proficiency standards as the benchmarks. For those schools that made it past the first two steps, a third step assessed the degree to which schools prepare students for college-level work.
Test performance. The first step determined whether each school's students were performing better than statistically expected for the average student in the state. We started by looking at reading and math results for all students on each state's high school test. We then factored in the percentage of economically disadvantaged students (who tend to score lower) enrolled at the school to identify the schools that were performing better than statistical expectations.
For those schools that made it past this first step, the second step determined whether the school's least-advantaged students (black, Hispanic, and low income) were performing better than average for similar students in the state. We compared each school's math and reading proficiency rates for disadvantaged students with the statewide results for these student groups and then selected schools that were performing better than this state average.
Schools that made it through the first two steps became eligible to be judged nationally on the final step, college-readiness performance, using Advanced Placement and International Baccalaureate test data as the benchmarks for success, depending on which program was largest at the school. AP is a College Board program that offers college-level courses at high schools across the country. The International Baccalaureate program also offers a college-level curriculum. This third step measured which schools produced the best college-level achievement for the highest percentages of their students. This was done by computing a "college readiness index" based on the school's AP or IB participation rate (the number of 12th-grade students who took at least one AP or IB test before or during their senior year, divided by the number of 12th graders) and how well the students did on those tests. The latter part, called quality-adjusted AP or IB participation, is the number of 12th-grade students who took and passed (received an AP score of 3 or higher or an IB score of 4 or higher) at least one of the tests before or during their senior year, divided by the number of 12th graders at that school. For the college readiness index, the quality-adjusted participation rate was weighted 75 percent in the calculation, and 25 percent of the weight was placed on the simple AP or IB participation rate. Only schools that had values greater than 20 in their college readiness index scored high enough to meet this criterion for gold and silver medal selection. The minimum of 20 was used because it represents what it would take to have a "critical mass" of students gaining access to college-level coursework.
The top 100 high schools nationwide with the highest college readiness index scores were ranked numerically (ties were broken using first the participant passing rate and then the average number of AP and/or IB exams passed per test taker) and awarded gold medals. The next 461 top-performing high schools nationwide—based on their college readiness index scores—earned silver medals. An additional 1,189 high schools in 48 states plus the District of Columbia that passed the first two steps were awarded bronze medals. Thirty-seven more high schools in 12 states received an honorable mention medal if they would have scored high enough on the college readiness index to earn a gold medal but didn't fully meet Step 1 and Step 2.
Analysts from School Evaluation Services developed the methodology and compiled the analysis. AP is a trademark owned by the College Board, which was not involved in the production of and does not endorse this product.


Westchester schools identified in the report are as follows:

Rank School
41 Yonkers High School
51 Horace Greeley High School
55 Blind Brook High School
59 Rye High School
137 / Hon Men Bronxville High School
137 / Hon Men Edgemont Junior-Senior High School
137 / Hon Men Hastings High School
137 / Hon Men John Jay High School
138 – 598 / Silver Byram Hills High School
138 – 598 / Silver Scarsdale High School
599 -1,787 / Bronze Saunders Trades & Technical High School (Yonkers)
21,786 TOTAL

Note: Honorable Mention is awarded for schools which would have been
in the top 100 but were excluded for "statistical" reasons.

New Rules in Mortgage Lending

By Angela Baca


New rules from the Fed have changed mortgage-lending practices. Although the new rules were put in place to help protect consumers, they may also cause an increase in loan processing time.

Amendment to Regulation Z
On July 14, 2008, the Fed amended Regulation Z (Truth in Lending) to prohibit unfair, abusive, or deceptive practices by mortgage lenders and to restrict other practices. Lenders face new advertising standards, and they must disclose information early in the loan process. All lenders must follow advertising standards regardless of whether they have federal deposit insurance.

New Rules for Consumer Protection
For a consumer who needs another loan based on the first home's value, lenders must take 4 new steps:
1. Avoid writing a loan without considering ability to repay beyond a home's equity.
2. Verify income and assets.
3. Eliminate prepayment penalties for mortgages with adjustable payments within the first four years; for other loans, the prepayment penalty lasts no more than two years.
4. Establish escrow for taxes and insurance on the first mortgage.
The foregoing rules apply to higher-priced mortgages, or subprime loans with an interest rate at least 1.5 percentage points above Freddie Mac's prime rate and 3.5 percentage points above for subordinate mortgages. Requirements for all Lenders
New rules apply to subprime mortgages and most other mortgages, but do not affect construction or bridge loans, reverse mortgages, or lines of credit (LOCs). Regardless of your interest rate, the following affects a loan secured by your primary residence:
1. A creditor or mortgage broker cannot coerce an appraiser into being dishonest about a home's value.
2. Mortgage servicers cannot use certain practices, including pyramiding late fees. They must credit payments on the date of receipt and provide loan payoff information within a reasonable period.
3. A lender must provide a borrower with a Good Faith Estimate (GFE) within 3 days of receiving their loan application. The applicant cannot be charged any fees, except for the cost of pulling credit history, until after they have received an early disclosure.
4. Once the applicant receives the final cost disclosure, the lender is required to wait seven days before closing on the loan. If the final annual percentage rate (APR) varies by more than .125% from the initial GFE disclosure, the lender must re-disclose and wait yet another three days before closing.
Stricter Advertising Rules
Lenders must also provide more information when they advertise rates, monthly payments, and other features. There are stricter rules against misleading advertising and a ban against saying a rate is fixed when it might change.

These rules are part of the Mortgage Disclosure Improvement Act (MDIA) and were effective July 30, 2009, except for the escrow requirement (which will begin in 2010). Be sure to get more updates from your real estate agent or broker about the changing mortgage market.

Tentative Good News ref Home Buyer Credit!

Daily Real Estate News | October 29, 2009

Homebuyer Credit Gets New Life

Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.
Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.

Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)

© Copyright 2009 Information Inc.

Interested in Sales Statistics for Mt Pleasant (Hawthorne, Thornwood, Valhalla and Pleasantville) this year?

Here they are! I pulled the data from the Westchester-Putnam Multiple listing service (MLS) as of today, 10/29/09 for the year to date:

One-Family homes/price range $350K - $700K
Solds: 66Avg Price: $541 / *DOM: 156
Sales Price / Listing Price = 96.21%
Conditional Contracts: 21 *DOM: 134
Pendings: 26*DOM 150

Actives: 86 / *DOM 117

*DOM = Days on Market

Autumn is Here!

Autumn Décor Accents
By J. A. Young

Fall is the season of cool, crisp weather, brilliant scenery and bountiful harvests. Bringing the autumn indoors is a way to transform your décor with both subtlety and a richness of color and warmth. Here are a few ways you can add fall accents to your home.

Get Ornamental Gourds
Not just the requisite pumpkin for the porch, but several small to large ornamental gourds to be used as a dining room table centerpiece, as a coffee table prop and even to place here and there on the book shelves. Ornamental gourds come in many sizes and shapes and their appeal is great during the harvest season. Decorate with Flowers in Seasonal Colors
Add a wreath to the door abundant with fall blooms dried and interspersed on a grapevine. Consider hydrangea, yarrow and goldenrod for a warm welcome into your home. Also, place bouquets of dried flower arrangements throughout your home—each with fall colors for effect.

Celebrate the Season with Scented Candles
Find an old copper tub and fill it with water. Then add some novelty candles that float—apple-shaped and scented (available at large craft stores)—and scatter some autumn leaves around its base for accent. Add other scented candles around the house, in fall fragrances like nutmeg and spice.

Add an Extra Touch with Inexpensive Fabrics
Go shopping at antique stores or flea markets for fabric in gold, yellows, oranges, browns and reds. Make new curtains or an autumn tablecloth. Flea markets are great places to find old quilts in fall colors—even if it's not in great condition, it can be used for various autumn crafts.

Positive News in the Housing Market?

Positive Trends: is the Housing Market Headed for Recovery?
By Deanna Sletten

After four months of rising home sales, the housing market is looking brighter. The National Association of Realtors reported that between April and July existing home sales experienced increases each month with July leading with a 7.2% increase. It has been five years since the real estate market has seen such an upward trend and it has led many in the industry to believe that the market has finally bottomed out and is heading for recovery.

Sales of Foreclosures Led the Way
Many factors prompted the rise in sales over the past four months. Sales of foreclosure and distressed homes were up 31% in July because of their affordability. First-time home buyers accounted for 30% of the July sales so they could qualify in time for the $8,000 tax credit. Low mortgage interest rates also contributed to the surge in sales. With a market full of affordable homes to choose from and low interest loans available, home buyers are
taking advantage of the deals and buying nicer homes they might otherwise have not been able to afford.

Where Recovery is Felt the Most
Thirty-nine states saw sales increase over the last two quarters with some states, such as New York, Hawaii and Wisconsin, seeing an increase of 20% or more. Sales varied depending upon how heavily the areas were hit by the real estate crash. California, Michigan and Colorado saw a drop in sales by 6% even though other states saw increases in sales. In cities like San Diego, Phoenix, Orlando and Las Vegas where house prices have dropped significantly while incomes have stayed the same, the demand for foreclosure and lower priced homes has soared. Experts agree that the recovery will be slower for some areas than for others depending upon how hard the area was hit.

Will the Recovery Continue?
Even though the housing market looks as though it's on the way to recovery, experts caution that it may not see a significant upswing until the early part of 2010 when the economy is expected to pick up. Another factor that may help the recovery is dependent upon Congress extending the first-time homeowner tax credit past the November 30 deadline and into 2010 which is being lobbied for by two national organizations.

A total housing market recovery is dependent upon how quickly the economy picks up and how long interest rates stay low. But for now, economists are encouraged by the continued increase in sales and believe that the housing market is heading toward a recovery.

NY State First Time Home Buyer Credit - Enhancement

Gov. David A. Paterson announced last week that New York will offer a federal income tax credit to first-time homebuyers to encourage home sales in New York State. The New York State Mortgage Credit Certificate Program (MCC) will enable first-time homebuyers to claim a tax credit equal to 20 percent of their annual mortgage interest costs, which could save the average homebuyer around $1,500 a year. This program expands the $8,000 First-Time Homebuyer Credit, which expires on November 30, 2009.

Closets 101 (you've heard this from me before!)

Learn How to Purge Closets Sensibly

By Katherine Salant, Washington PostSaturday, August 15, 2009

In many cases, the desire to move to a bigger house is driven by the need to "get my life under control."
The thinking goes something like this: In a bigger house I will have more places to put things and bigger closets so my house will not be awash in clutter anymore.
But bigger closets can be both a blessing and a curse, said Sandra Felton, founder of Messies Anonymous (http://www.messies.com), author of seven books on how to create order from household chaos, and a person who learned to keep order in her own house after struggling with chaos for more than 23 years.
The problem with the bigger closet solution, Felton said, is that many people regard their bigger closet as an "ever expanding universe" and keep on accumulating things until the new closet becomes as crammed as their old one.
Even worse, the scale of disorder in a bigger closet can often become a heavier burden than it was with the smaller one, Felton said. When a 10- to 15-foot-long walk-in closet (not an unusual size in houses built in the last 20 years) is filled, "you've created your own boutique," Felton said. You can feel like you're managing a store or a warehouse without the benefit of a modern inventory system. You can't remember what you own, or you can't find it, and you end up with multiple and nearly identical clothing items, shoes and accessories.
A more adaptive strategy if you're striving for order, and one that could ultimately lead you to stay where you are, Felton said, is a "steady state approach" -- a recognition that the closet size is finite and that when you acquire new things you need to remove some old ones.
It sounds easy enough, add a new thing, subtract an old thing, but many people find the subtraction aspect paralyzing and decisions on what to keep and what to discard impossible, Felton said.
To this, Feldon says simply, "you have to be a grown up and ask yourself a few simple questions: Do I use it? Is it more important than other things that will also take up space? Is it important that I have it?" She says the decision-making process gets easier with practice; it's also easier with smaller closets that limit what you can accumulate.
In her own 1950s Miami ranch, the closets are only 39 inches long. She uses two closets for her clothes, and this keeps her decisions regarding her wardrobe to "manageable numbers," she said.
It's tempting to wait until you can't fit anything more into your closet to decide what should go, but this can leave you feeling pressured and making choices you later regret, Felton said. She's found she's more comfortable with a "de-access as you go" approach, and she removes a garment as soon as she's ready to part with it. To keep herself from revisiting her decision, the garment goes in a "charity box" on the other side of her house and, in short order, to a local charity.
But Felton acknowledges that the disposition answers do not come easily in every instance, and she says you don't have to give every old garment away as you acquire new ones.
Many things have special sentimental value because they are "memory holders" that give us a sense of who we are, Felton said. We need to keep these pieces of our personal history, but we don't have to have them immediately accessible. They can be archived and stored elsewhere in your house. In describing the kinds of priceless and unique things that people keep, she mentioned her father's college diploma. But, she emphasized, you don't have to keep everything a person ever gave to you to honor their memory.
Felton also emphasized that many people need time to get comfortable with giving away things of a personal nature. While some people "can do it without feeling a twinge," most people become upset if these things are "jerked out of their lives," she said.
And sometimes you just can't decide what to do with something.
Felton's solution to this dilemma is an "ambivalence box." It can be filled with clothes and anything else, sealed and stored in an out-of-the-way place like a basement or garage for five or six months. You'll be pleased with the closet space that the ambivalence box frees up, Felton said, and when you eventually open it, you'll discover that you feel differently about its contents. "Time dulls their sparkle and they don't look as good after a long period," she said.
Felton has done this many times over the years, and she said she can't recall ever using any of the boxed-up items again, though she's archived a few clothing items that were "beautiful in their own way, even if they weren't stylish anymore or wearable."
The idea of organizing yourself to carry out Felton's ambivalence box suggestion may seem like too much time and trouble, but an impending move can be a powerful "situational" motivation, she said.
It worked for me. When we moved to New York City for a year, I boxed up half of my clothes and stored them in our basement. When we returned, I was amazed at the clarity that time can bring. In less than an hour, I went through all the boxes and dispatched more than half of the contents to a local thrift shop.
What was in my personal time capsule that I so easily parted with?
-- Clothing that had belonged to my mother that I realized I didn't need to honor her memory.
-- Worn-out shoes that I loved and had worn on a European trip with our children.

-- Work attire that might fit someday.
-- Garage-sale items that I might wear someday.
-- Everything I hadn't worn in at least five years.
-- Worn out clothes I had kept because they were given as presents by my family.
-- Items that salespeople had convinced me were "flattering" but which I had never worn.
-- Clothes I had worn on special family occasions.

Time to Update your Bathroom?

4 Reasons to Update a Bathroom
By E. E. Kane

Bathrooms may not hold the most glamorous spot in your home, but they must remain functional or everyone suffers. Remodeling can be very expensive, so how do you know when it's time to invest money in your bathroom? The following four reasons explain why remodeling may be worth the expense.

1. Signs of Water Damage.
Leaks in the plumbing can easily lead to problems like mold, loose tiles, and structural damage to the floor underneath. Water damage can wreak havoc on a bathroom, and in some cases will require tearing everything out. If you simply have a mold issue, you may be able to resolve it with ventilation. Install an exhaust fan or a new window, and then kill the mold with a bleach-and-water solution. Finally, use primer and paint that specifically hinder mold growth.

2. Electrical Safety.
Do the lights flicker? Does the outlet sizzle when you plug in the hair dryer? Has the exhaust fan stopped working? Whether you need to overhaul the electrical circuits or simply change a few receptacles, don't ignore electrical problems in the bathroom. Every bathroom should have a GFCI outlet, which prevents electrocution should a shaver or hair dryer drop into water.

3. Just Plain Gunky Issues.
Stained carpeting, cracked vinyl flooring, broken or missing tiles, a bathtub or sink that never looks clean no matter how much you scrub, Pepto-Bismol pink tiles—these are all reasons to feel ambivalent about your bathroom. If "gross" is the first word you think of to describe your bathroom, it's time to remodel.

4. Planning to Sell in a Few Years.
If you know you'll be moving within the next five years, remodeling an outdated bathroom can increase the value of your property. Although you may not recoup everything you spend, bathroom remodels have shown a greater return on investment than most other areas of the house. Focus on functionality, storage, and neutral palettes.

Resolving the issues and making repairs should always come before cosmetics like paint or wallpaper. Remodeling a bathroom can be very disruptive to family life, so if you can't make the repairs yourself, find a reputable contractor who will work with your budget and your time frame.

How do I keep important documents safe?

This is one of the best lists I've seen. Think about purchasing a safety deposit boxe or a fire safe box for storage. If it's a safety deposit box, getting access to important papers might be difficult, so make sure you know in advance who will be able to have access. Different states have different laws on who can access the box when you die. Make sure if you give someone a key to your safe deposit box they are on the bank contract.
• Adoption Papers
• Automobile title(s)
• Bank account numbers and contact information
• Baptismal and other Religious Certificates
• Birth certificates
• Cemetery Deed
• Child Custody Agreements or Parenting Plans
• Citizenship papers
• Collectibles that are valuable
• Credit card account numbers
• Death certificates
• Diplomas
• Divorce decree
• Employee Benefit Records
• Family historical information
• Household inventory and appraisals
• Important contracts
• Immunization Records
• Insurance policy names and numbers
• Investment certificates
• Jewelry and jewelry appraisals
• Leases
• Marriage certificate
• Medals
• Military records
• Mortgage
• Naturalization Certificates
• Negatives of important photos
• Patents and copyrights
• Photos of Possessions
• Rare Stamps and Coins
• Real Estate Deeds
• Retirement plan information
• Stock and bond certificates
• Veteran’s Papers

Grill Burgers, Not Your Home

For years, New York City has prohibited propane barbecue grilling on a balcony, terrace or roof. Residents can barbecue with charcoal on a balcony or terrace provided there's sufficient clearance and a source of water to douse any flare-ups.
Last year, Washington State began banning open-flame gas or charcoal barbecues on certain multifamily housing balconies where there's no overhead sprinkler.
And beginning this year, Silicon Valley placed a permanent ban on charcoal and gas fired grills on multi-family housing balconies made of wood or other combustible materials, if there is no sprinkler overhead. Propane tanks heavier than one pound are forbidden on such balconies -- sprinkler or not.
Residential barbecue bans amount to gustatory purgatory for a growing number of barbecue fans who have to wait get their thrill from a grill away from home.
Nearly 80 percent of households own an outdoor barbecue appliance and nearly 60 percent use them year round, according to the Hearth, Patio & Barbecue Association (HPBA).
But firing up a grill with an open flame presents a clear and present fire danger, especially in confined spaces.
The U.S. Fire Administration's National Fire Data Center estimates that barbecuing accounts for more than 6,000 fires, 170 injuries, a half dozen fatalities and some $35 million in property loss each year.
Grilling responds to our primal longing for fire-kissed feasts, but singeing sustenance into submission comes with another primal directive -- protecting life and property.
The HPBA offers these tips to get you safely through a barbecued meal.
Read the owners manual. As simple as it sounds, many fail to follow instructions in their rush to barbecue heaven. The manual contains specific assembly, use and safety procedures, as well as manufacturer contact information.
Never use a grill indoors. Barbecuing in your trailer, tent, house, garage, fireplace or any enclosed area can become a carbon monoxide accumulation hazard and kill you. Barbecue smoke can clog your fireplace flue.
Even outdoors, use a well ventilated area. Laws prohibit use on certain small balconies because they don't have sufficient clearance from the building, can produce a back draft into the home and provide limited safe maneuvering space. Set the grill away from buildings, overhead combustibles, dry leaves, brush and swimming pools and swimmers. Beware of wind-blown sparks.
Follow other codes. Electric grills or accessories (rotisseries, etc.) must be properly grounded in accordance with local codes. Place electrical cords out of traffic, walkways or where people can trip over them.
Keep the grill still. Be sure all parts of the grill are level and firmly in place so that it cannot be tipped over. Don't allow play or young children near the grill. Never attempt to move a hot grill. If you stumble and drop the grill, nasty burns are possible.
Use the proper equipment. Use long-handled utensils designed for barbecue work to avoid burns and splatters. Wear clothing that does not have hanging shirt tails, frills, or apron strings that can catch fire, and use flame-retardant mitts when adjusting hot vents.
Keep the fire controlled. To put out flare-ups, either raise the food grid, spread out the coals evenly, or adjust the controls to reduce oxygen and/or lower the temperature. If you must douse the flames with a light spritz of water, first remove the food from the grill. Never leave a grill unattended once lit.
Be ready to extinguish flames. Use baking soda to control a grease fire and have a fire extinguisher handy. Keep a bucket of sand or a garden hose near if you don’t have a commercial extinguisher.
Buy a grill pad or splatter mat. Heat resistant pads placed beneath the grill are usually made of lightweight composite cement or plastic and will protect your deck or patio from any grease that misses the drip pan.


Written by Broderick Perkins

Stat's from NAR for April Real Estate #'s

Source: NAR 5/27/09 (NATIONAL ASSOCIATION OF REALTORS®)

NAR: Existing-Home Sales Jump Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. “Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”Buyers Once Again Emerge An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago. “This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.It's critical that distressed homes be quickly cleared from the market, Yun says. “Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans. “We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.
NAR reported the that the Northeast jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.

Mortgage Rates Update

Mortgage Rates Continue to Fall

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent. The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.

Source: Investor's Business Daily (05/22/09)

No $$ to Buy a Home...Try these savings tips

For many people, buying their own home is still the American dream. Yet, it remains out of reach for a lot of people, even though the housing affordability index in many areas of the country is as good as it has ever been. But if you're not prepared to buy a house, then the index doesn't mean a thing to you—except, perhaps, to create a painful sting and a constant reminder that you're missing out on a good opportunity to buy real estate at lower prices.
For those who are planning to stay in the same house for a few years, experts are advising now is the time move from renting to owning. The cost of buying and relocating in a short period (a couple years) can make the concept of buying not appealing or cost effective. But if it's for the long term, owning can make perfect sense. But what if you're a first-time buyer or you haven't owned a home in a while, how do you prepare for what is often the largest purchase you'll ever make? Buying a home isn't that difficult but it does require you to make sure that you're in the right financial (and emotional) position to do it. How do you get there when so many other expenses often take precedence? Simple but not necessarily easy steps can help you position to transition from renter to home owner. It starts with getting familiar with your financial picture. If you are aware of what lenders are looking for before you apply for a loan, you'll have a greater chance of getting it and it'll be helpful when you meet with your real estate agent. No time will be wasted looking at homes that aren't in your price range. You will have a clear-cut idea of what you can afford and then you can confidently look for the most suitable home.
Take a keen look at your budget. This presumes that you have a budget. If not, develop one. You can use numerous software programs to create a budget; many are free, or you can even use a basic spreadsheet. If you're self-employed, take a look at free online bookkeeping software offered by Outright.com. It can help you track your income and expenses for your business allowing you to create a better recording system to help you save time and money. Review credit history. If you have no idea how your credit looks, then it's time to give it a review. When you take a look at your credit report, you will be able to see if there are errors or dings from late payments that are negatively affecting your credit score. This gives you a chance to dispute errors or work to clean up your credit before you apply for a home loan. When I reviewed my credit cards, I found a few hundred dollars that had been automatically billed to my credit card in erroneous subscription fees. Your credit card can file a dispute with the companies and credit the funds back to your account. It pays to double check; you just never know what you'll find.
Redistribute your money. Don't think of it as cutting back, but rather as moving your money from one place to another. For example, if you're spending $3 on a specialty coffee five days a week, think about making your java at home and putting that $15 a week into an account that is going to be used to purchase your home. It all adds up and most of the time, we don't realize how much money a dollar spent here or there can accumulate.
Another way to redistribute money is to examine your insurance policies and consider raising the deductibles. A lot of people want low deductibles in case of a loss or an accident, but you can actually save money and redistribute that money into an account that is set aside for purchasing your home. But some statistics show that the average person files a claim only once every 13 years, according to insurance broker, Michael Rice of Thomas Ward Insurance Group. So raising your deductible from, say, $500 to $1,000 can give you an annual premium savings of 10 to 15 percent. Rice also recommends paying your premium in full if the insurance company offers you a discount to do so; some offer a five percent or more deduction and you won't be charged administrative fees for periodic billing.
Keep your eye on the goal. Staying focused on the goal of buying a home will help you to remember that cutting costs now will allow you to have what you want in the long run. Our society is accustomed to instantaneous gratification so delaying the reward can be very challenging but well worth it. Owning your own home and, being able to purchase it while in a down market, is an exciting win-win.
Written by Phoebe Chongchu

First time buyers....does $8,000 tax credit get your attention?!

Homeowner Tax Credit - Explained!

The Homebuyer Tax Credit portion of the American Recovery and Reinvestment Act of 2009 provides an $8,000 tax credit to first-time home buyers (or buyers who have not owned a private residence in the past three years) who purchase a principal residence on or after January 1, 2009 and on or before November 30, 2009. The credit does not require repayment and will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
What are the important points to know? The Tax credit has been raised from $7,500 to $8,000 or 10% of the purchase price (whichever is less) The credit does not require repayment First time homebuyers or buyers who have not owned a home in the last 3 years are eligible To qualify, a single person must make less than $75,000 a year in income Joint must make less than $150,000 a year in income to qualify. Qualified buyers must purchase home on or after January 1, 2009 and no later than November 30, 2009. The property must be the primary residence. Purchaser must remain in home for 3 years or the credit will be recaptured at the sale of home.
Are there restrictions for the home I want to purchase? The primary residence can be a condo, single family detached, co-op, townhouse or something similar. The home must be located in the United States. Vacation homes and rental properties are not eligible. For new construction, the "purchase date" is the date you occupy the home. So the move in date must be before December 1, 2009.
Who is not eligible for the credit? If your income exceeds the phase-out range. This means joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above and other taxpayers with MAGI of $95,000 and above. You may not buy your home from a close relative. This includes your spouse, parent,grandparent, child or grandchild. Vacation homes and rental properties are not eligible. If you stop using your home as your main home. If you sell your home before the end of three years. If you are a nonresident alien you are not eligible.
Recapture 3 year residency If the home is sold prior to three years of ownership, the tax credit must be repaid at closing This provision is designed to prevent flipping homes in order to get the credit.
Other provisions Purchasers who utilize state/local revenue bond financing can now use the credit. Purchasers who bought before January 1, 2009 and received the previous $7,500 tax credit are still subject to the terms of that repayable credit.
When can I claim the Credit? It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.

Source: National Association of REALTORS®

NAR's Housing Stimulus Plan

I received an email today from the Nat'l Association of Realtors (NAR) ....

"This week, we saw countless hours of hard work pay off – in a MAJOR way – when the federal government implemented NAR's recommendations to stimulate housing with the signing of the American Recovery and Reinvestment Act of 2009. This bold and unprecedented move to help housing did not happen by chance. Just a few months ago, the auto industry had Congress' ear. Yet, thanks to countless meetings, letters, phone calls, and public pressure that we – the REALTORS® of America – placed on lawmakers in Washington, D.C., housing emerged as the top priority in the new Administration and in Congress.

While some of the items in the Act are controversial and are currently being debated, most of our top priorities were addressed. Thanks to all of our hard work, America’s homebuyers and homeowners will soon have:

• 
  Lower interest rates for home mortgages
• 
  A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;
• 
  A true tax credit incentive to buy a home NOW;
• 
  and Foreclosure mitigation and short-sale standards.

As a direct result of NAR's advocacy, we hope to see an increase in home sales this year. NAR also continues to make significant progress on our efforts to unclog the pipeline for foreclosures and to address administrative problems with short sales".

Nothing to do with real estate or organizing.....but

COOKIES! The BEST cookies in Westchester...that's Aimee Milano and her sister's cookie company "Big Girl Baking". I met Aimee at a WEDC event (Women's Enterprise Development Center) last year and immediately knew I liked her. She has a passion for her business which made me want to get to know her better. I invited her to host a Keller Williams team meeting a few weeks ago. She was a real hit with my colleagues and we all added her to our preferred vendor list. What a great house warming gift....Aimee's homemade cookies. Read Florence Fabricant "Food Stuff" article in the NY Times for more info:

http://www.nytimes.com/2009/02/18/dining/18cook.html

Listingbook - sign up now!

There is a new real estate service called Listingbook and it's FREE!

Listingbook sends you an email on all the real estate activity and trends in your neighborhood, or in any neighborhood in which you are interested in; now or in the future. You can find out what is currently for sale, what has just sold; with sale prices and more, all in an easy to read format.

What I love about Listingbook is that the information is updated every 24 hours, unlike a lot of the websites out there, no time is wasted searching and finding outdated information. You can set up your profile and change it whenever you’d like to view data that is valuable to you.
If you’d like, I can give you access. Just let me know – it’s very easy to navigate!

What You Should Know About A Buyer's Market

What You Should Know About A Buyer's Market
More home buyers have a better chance now than at any other time in nearly a half decade to negotiate a home-buying deal that costs less and comes with some concessions thrown in.
In many locations, buyers will find a glut of new homes, more motivated sellers, foreclosures, auctions, short sales and other market conditions that can make it a really good time to buy.
That doesn't mean throw caution to the wind.
Here's how to begin to navigate today's housing market, step-by-step, and make a good deal without getting taken.
· Begin with making a personal "right-time-to-buy" decision. If you stretch financially beyond your means to go after lower-priced homes, foreclosures or short sales, you could be setting yourself up for failure. Today's housing market is littered with home owners who borrowed more than they could afford.
On the other hand, if you wait for prices to fall further you could miss out on a good deal. No one knows when the market hits bottom until it begins a sustained upward turn and you can look back and actually see bottom.
Buy now because it's the right thing to do for you, because you need a roof over your head, because it's more affordable than renting and because you plan on sticking with the home long enough to make the deal pay off. Buy because homeownership is integral to your budget, your lifestyle and your goals.
· Get to know the many facets of home buying.
You've got a lot to learn, but obtaining a broad base of knowledge about the home-buying process is a relatively easy task, requiring only your time and attention. You should sit down with your REALTOR® for the most effective guidance.
· Next, get to know your local market or the market where you plan to buy, because that's where your action is.
Accept national news for what it is, a broad brush stroke of current events. You want housing news and information that really hits home. Get your housing market information from credible publications and broadcasts covering your local market.
Part of your homework should include learning the boundaries of your buyer's market. Your market can be designated by a ZIP code, a small neighborhood, a greater community or some larger region.
· Whether it's a new home, resale property, foreclosure or short sale, learn the true value of any property you are considering. Uneducated buyers tend to low-ball sellers and ask for too many concessions. That can alienate the seller, especially those less motivated with top-value homes. Likewise, knowledge helps prevent you from spending too much.
Your Realtor is schooled in the history of local market trends and statistics. See comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses.
· Check your credit. Your credit report is free from AnnualCreditReport.com, the only federally regulated source. You may have to pay a nominal fee for your credit score (a numerical scoring of your creditworthiness) depending upon your state law and other factors. But see both your score and your report. You may need to request corrections or adjust your credit habits to generate the best report and score -- before you start home loan shopping.
· Get your cash in the pipeline. Get approved -- in writing -- for a mortgage. Use your newly gained knowledge to shop around -- a lot -- for a home loan. Shop online and off. Shop mortgage brokers, loan officers, credit unions and other lenders. Shop where you bank, shop where you don't. The key is exhaustive comparison shopping to get the most money at the cheapest rate. Written by Broderick Perkins

Check out this article on "Getting Ready To Delegate In Business" from OnLine Organizing:

http://www.onlineorganizing.com/NewslettersArticle.asp?newsletter=go&article=837