Over the last six months or so I’ve had a few clients who have been debating between buying an existing home and purchasing land in which to build a new home on. It goes without saying that both have their pros and cons. However, with existing home inventory low right now it seemed like an ideal time to explore the benefits of new construction and what to keep in mind if you’re considering it.

For those of you unfamiliar with the home building the process, NewHomeSource.com has a wonderful article with a step-by-step guide on what to expect during the major phases of construction. The longest phases of the process are the bookends- land development and final finish of the home,  Jack Litzenberger, owner of 2 Pros construction says. The framing, roofing and siding are performed quickly in comparison. Of course, that development cant begin until you’ve purchased the land which is the first important step in building a home.

Whether it’s to take advantage of a lake view or to create a passive solar design to help with heating costs; one of the most beneficial parts of building a new home is the ability to select its exact location. Nearly as varied as existing homes, the sizes, shapes and cost of building lots in our area are vast. I always recommend that my clients take their builder out to walk any lot they’re considering buying before making any decisions because the quality of the land can make a large difference on the overall cost. Not only do you have to take into consideration the lot’s topography and zoning regulations, you also need to determine the how your future home will receive water, septic and electrical services. Take your time and find the lot that meets your wants and needs.

Another question I am often asked is the cost difference between building and buying. This is a tough question because you’re never comparing apples to apples. Chances are very likely that a new home design and build will cost you more than buying an existing home. However, depending on the age of an existing home and the repairs or renovations that are needed, the actual price of an existing home can climb pretty quickly. Jack Litzenberger, reminds potential clients that b[with new construction] you have a good chance of little to no maintenance for at least 10 years. B You know that the products are new and should perform as such, and warranties come with the new products.

Another important consideration with any buying decision is financing. Taryn Schwartz, a Mortgage Originator at Elmira Savings Bank says, “When considering new construction verses an existing home a borrower should keep in mind that the closing costs on construction loans are slightly higher; however, the borrower may have a loan to value as high as 95% of the total acquisition cost or appraised value (whichever is lower). Traditionally loans used to finance new construction can take longer to secure and have stricter standards when it comes to required documentation and the borrower’s credit scores.  Often times there are also deadlines on when construction needs to be completed so all of these factors need to be discussed with both your agent, your builder and your bank.

Current Land Listings:

If you or someone you know is thinking of building a new home take a look at these
building sites

1. 4235 State Route 414- Burdett: 16 acre parcel along Seneca Wine trail, potential lake views — $210,000
2. 7260 Wyers Point- Ovid: 1 acre lot with private lake frontage in vibrant lake community  $155,000
3. Oak Harbor Lake Lots- Trumansburg: Boutique lake community.  Lots ranging in size from 1-3 acres. Residents share 300ft of lakefront.  Prices starting at $100,000
4. 9781 Oak Harbor Lane- Trumansburg: PRIVATE lake building lot with mature trees and spectacular views bordering Taughnnock State Park land
   

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Additional articles and resources:
Realtor Magazine: Build vs Buy

Elmira Savings Bank: Construction Loan Info

Costs of Building a Home- Realtor.com

Should you Build or Buy- Invetopedia

With the holiday buying season almost in full swing I thought it was a great time to discuss some financial guidelines to follow if you’re hoping to buy a home this upcoming spring. I asked my friend Bonnie Osadchey, a mortgage originator at Elmira Savings Bank, to share some insights on what banks look for when applying for a loan…

1. NO LARGE PURCHASES. This includes cars but can also include furniture, appliances and jewelry, especially if you would need to take out a loan or use a credit card to finance the purchase.
2. KEEP CREDIT CARD BALANCES LOW. Its very easy to say charge it when spending for the holidays but this is one of the areas the most important areas to keep control of. Your balances should be kept at or below 30%.
3. PAY ON-TIME. A late payment stays on your credit report for a whole year so unless you have a grace period even paying a day late may affect your credit score.
   
4. FILE YOUR TAXES EARLY. Banks will need your current income tax returns so filing as soon as possible after the New Year is preferred. If you’re self-employed this is even more important as banks will require two years worth of returns showing your self-employment income.
5. KNOW YOUR DEBT TO INCOME RATIO. Most banks will ask for a debt-to-income ratio of 43% or less. Included in that is any revolving debt which includes current mortgage payments, student loans and credit card payments.
6. BEWARE OF DISPUTING THINGS ON YOUR CREDIT REPORT. You can receive a free credit report (you should never pay for your credit report) annually at annualcreditreport.com. If you find something that doesn’t look right beware of filing a dispute, this can actually poorly affect your chances of getting a loan. Talk to your loan officer first to see if there is another way to solve it first.

For more information on maintaining healthy credit and applying for a mortgage contact Bonnie at bosadchey@elmirasavingsbank.com or 607 481 5710.

An active fall market

After the lively and sometimes chaotic spring and summer season of real estate most of us welcome the slower pace that autumn can bring. Kids have returned to school and everyone is back into their respective routines. Although generally the colder weather does signal a slow-down of the market, that’s not always the case and is definitely not the case this year!

We have been fortunate to see a VERY active fall market in the Ithaca area thus far!!B Autumn can be an amazing time buy or sell
; here are some tips to get you started-

Selling in the fall:

1. Get Serious:
   • Fall and winter are not good times to test the market. When selling in the fall it is very important that you’re dedicated and motivated to sell. You’ll also want to make sure you have a game plan should your home sell quickly. Many buyers will be motivated to close before the holidays so you’ll want to be sure you can accommodate that whenever possible
2. Pay Attention to Price: Price is important in all seasons but even more so in the fall and winter. Serious buyers are looking at new listings no matter what season. In fact, selling in the fall may be beneficial in that more often than not only ready, willing and able buyers continue their search year-round. BUT, if your home is overpriced you’ll lose out on those prospective offers.
3. Create Curb Appeal
   • Fall can wreak havoc on your yard. Curb appeal is important year-round but even more so as the temperature turns and landscaping may not be at its best. Keep leaves raked, buy some planted mums or pumpkins to brighten up the entrance and keep your window boxes full. There are plenty of hardy floral and plant options that will keep your home looking great!
4. Get Cozy
   • Although buyers may not be as concerned with the heating of a home when its 80 degrees out- when fall and winter arrive, this will be a top priority. It’s a good idea to get your fireplace and HVAC system cleaned and certified before listing your home. Its also a nice idea to create warmth during the showings. Light the fireplace, open the curtains to allow in natural light, add a pop of color to a neutral sofa with a throw or decorative pillow, and fill your home with the scents of autumn like cinnamon or pumpkin.

Buying in the fall:

1. Do your research: One of the best reasons to buy in the fall is the ability to capitalize on stale listings. If a home has been on the market for the majority of the spring/summer and still hasn’t gotten an offer, the sellers may be more open to negotiating in lieu of having their home.
2. Be prepared
   • Sellers are just as motived to sell as buyers are to buy in the fall. Make sure you’re ready and able to make a strong offer by getting pre-qualified from your bank. And although, NOT impossible- try not to have your offer contingent on your current home selling. Again, sellers are motivated by the upcoming winter season so an offer contingent on another home sale may not be in their best interest.
3. Consider a pre-offer inspection
   • If your goal is to be in a new home by the holidays then consider doing a pre-offer inspection. This way you are alerted to any red flags before you put an offer in on a house. If everything checks out you’ll be able to move right on to applying for your loan immediately after your offer is accepted. If time is of the essence, this can save you up to two weeks!!
4. Everything happens for a reason
   • Buying a home can sometimes be a stressful more even MORE so if you’re hoping to do it within a certain time frame. Fall is a great time to buy, you may have more bargaining power and there are tax benefits of buying before the years end. However, it’s important to relax and not rush into anything. At the end of the day, you want to make sure you will be happy in your home for years to come. Don’t settle on what’s most important just because you can get a great deal

If you or someone you know is considering buying or selling, please reach out to me. I am here to help, no matter what the season!!

 

The best way to find out what we really need is to get rid of what we don’t.

If you’ve been to a bookstore recently or googled de-clutter or organization in the last six months you’ve probably stumbled upon Marie Kondo’s book, The Life Changing Magic of Tidying Up. Its been on the New York Times Best Sellers list for 42 weeks and is number 3 on Amazon.com list of top-selling books of the year (thus far).  I wondered what all of the buzz was about and although I have only JUST BEGUN using her method, I wanted to share with you some of her key points if you’re looking to downsize, organize or simplify.

Her major principle, so simplistic you wish you thought of it, is this: Does it spark joy? If not, discard it. No need to worry about- when’s the last time you wore it or is it out of style, just one simple barometer: joy.  If your thinking, wait, how can objects spark joy??b Marie Kondo encourages that the moment you hold something in your hands you’ll be able to tell whether or not it sparks joy in your heart. She, as a lot in the Japanese culture, believes that everything transmits energy and we just need to be aware of it.

Also like much of Japanese culture there is a strict order to her methods. You must discard first, totally and completely before attempting to put your things in order. (This means a mad dash to the container store IS NOT the correct way to declutter or tidy-up) Another must: discard by category, not by room. Have you ever attempted to reign in your mismatched socks or sort thru candles or other decorative items? Most items have MULTIPLE locations where they are kept in the home so tidying by category minimizes the risk that something will be missed. This is the best advise I’ve found so far.  Again, I have only just begun to put this into practice, but sorting by category and not by room helps keep
you focused and on task.

Kondo promises life-changing results if her method is followed. This past weekend, my husband and I went through all our clothes. It was so liberating!!! We filled his entire trunk with clothes to donate to The Salvation Army!! Once we removed the unused, the don’t fit, the out of style or the clothes that just don’t make us feel good, we were left with enough space to effectively organize what remained and now and have the ability to wear only what we like!! B B Getting dressed is so much faster and easier! This is only the first step but I am so motivated that I can’t wait for what comes next.

Even those of us who just claim to be messy can find serenity in their surroundings if they commit to her methods. In fact, she believes that no one is messy, but the disorder in our home mirrors the disorder in our personal or professional lives. Marie Kondo explains:

A dramatic reorganization of the home causes correspondingly dramatic changes in lifestyle and perspective. It is life transforming &. When you put your house in order, you put your affairs and your past in order, too.”

To learn more about The Life Changing Magic of Tidying Up, you can purchase the book here, or read more about it in the articles below.

Psychology Today

NPR Excerpt

Today.com Blog