I work with many buyers and feel it is my job to make sure they are making fully informed decisions.  What is the right decision is strictly up to them and I try hard not inject my opinion.  Just share my opinions, insights and experiences so they can base their decisions on all the information possible.

Recently I had clients who had been looking at a home that had been withdrawn from the market.  I still brought them to see it and they had a high level of interest in it.  They just wanted to do their due diligence on a number of things which I think is always the best thing to do.  I did let them know that opportunity was probably now, prior to the start of the  Spring market, to strike and get the best deal possible…

Well, we finally got the contractors lined up after several weeks and then the house comes back on the market the weekend before the contractors are scheduled to come in.  Mind you, this was a home that had been on for several months prior to coming off the market that really had no action on it.  Low and behold, the property gets multiple offers and I believe gets an offer above the asking price.

My client my have had the chance to get the property for $20k-40k less than the asking if they had reacted prior to the house going back on the market.  It only got that amount because there was no inventory on relatively speaking.

Should I have pushed my client.  Maybe.  I feel bad that this happened.  But, I work for my clients.  It is their money they are spending, not mine.  Maybe if I had pushed a little harder for them to decide things would have been different?  Still, although I feel bad it’s not my style to push.  I figure that next time I say or indicate that I think a property will be gone quickly or it might be the time to act they will take this information into account when they are thinking of what to do.

What are your thoughts?  Do you think I should have pushed them a bit more?  It’s a fine line but I would like to hear your thoughts.  Botton line is that I work for my clients but with each client and circumstance things are different.

If you are a buyer or consumer, how would you want your agent to handle things?  Let me know

Contrary to what you are hearing, the Spring Market is here and it is hot!

In towns around the Greater Boston Area, inventory is not that high.  It’s not what you are hearing in the national news but that is the case locally.  With the crunch time on from the home buyer credit I am seeing somewhat of a frenzy in the market place. 

There are homes that are receiving multiple offers even before the first open house.  The number of homes selling the first weekend is greater than I have seen in several months though this is primarily in the more affordable price points, not the high end of the market.

If this continues, I think we are going to see the pendulum swing from a buyers market to one that is neutral or even a sellers market at least into the Spring.  Later in the year I don’t think that will be the case since people would have accelerated their planned purchases to take advantage of the tax credit.

 Let me know what you are seeing out there.  Have you lost out on a home?  If so where…. Would love to know what you, the consumer is thinking or feeling.

What is my outlook for 2010?  Well, my crystal ball is not back from the repair shop so my guess and $2 just might get you a cup of coffee somewhere.

My honest opinion as to what will happen in 2010 is that in the immediate Greater Boston Area the market will be fairly brisk for the first quarter.  The reason is that currently we have the Federal Tax Credit for buyers and first time buyers.  People looking to take advantage of this will need to have a home under agreement with a signed Purchase and Sale on or before April 30th and will need to close by June 30th.

Currently with not a lot of inventory on in what many people consider the more desire-able towns I believe we will see prices rising at people compete for the limited number of properties out there.  This will drive the entry level and mid level priced homes.  The upper end of the markets I believe will continue to stay soft.

After the first quarter of the year, with many people accelerating their purchases to take advantage of the credit, I believe we will see a fall in demand and a leveling off of prices for the rest of the year.  Since they say we are seeing the onset of inflation and interest rates are most likely to rise any appreciation or recovery in the market will be nominal.

Now, the above is just my guess.  My wife will be the first to tell you that I have been wrong before…  Let me know your thoughts… 

One thing I know is that when I buy or sell property for myself I will be using or hiring one of my associates to negotiate for me. 

Why?  Because if I am selling my own property I know I will want to over price my property and get less than I could in the end.  I need someone to tell me what I should hear, not what I want to hear or believe. 

If I am Buying?  I will use somebody too. The reason being is that you need a buffer.  As a seller or buyer I would be too close to the situation.  I would take things personally.  I would not look at things objectively and probably be short sighted.

The fact is that agents representing their respective clients can discuss different points of view or disagreements.  They can talk honestly and openly and say things that the client may not want or should not hear.  This said, they can and are obligated to communicate the conversations to their respective clients.  What they will or should do though is communicate the items, issues and statements made but in a calm, accurate and polite manor.  Maybe not with some of the dialogue that had been said between agents…

Having an agent working for you will serve as a buffer.  More importantly, they will more likely help get you more money in the end since they will keep you focused on the goal and assist you in keeping things in perspective.  They are there to give you insight, other points of view and assist you in keeping in line with respect to your objectives and focus.

As a seller’s agent, the most frustrating thing is having someone who has a license come as the buyer representing themselves, especially when they have no experience.  There are numerous reasons for this.  First is that many times they do not know or understand what the process is and have to be guided through it.  The buyer/agent may also not know or realize what is “usual” or considered fair and reasonable in the transaction.  It also makes it very difficult to discuss various options or where the other party is coming from since responses tend to be very defensive.  Working with a buyer’s agent, who is not the buyer, lets you bounce different options or avenues off that person to get a better handle on where the buyer is coming from.  This can assist both parties in achieving their most important goals and objectives while alleviating their objections; hopefully taking you to a win-win scenario.

I recently had a deal where the buyer had no experience in buying or selling and was trying to purchase one of my listings.  He was the nicest of people.  Still, I faced many of the challenges I mentioned above and then some.  The good news in the end is that there were many things that they looked not to address which they could have.  If they had worked with an experienced buyer’s agent, the deal could have been in jeopardy.

I think representing yourself is not a benefit.  In fact, I know many other Realtors feel the same way.  Many of them don’t even like to work with family because of potential repercussions to the relationships since separating work and family and very challenging.  Maybe that is why almost 20% of my business in 2009 were sales with clients that were family of other Realtors.  To have the trust and confidence of other professionals to handle and work with their families is definitely the biggest compliment though….

What are your thoughts?

A Short Sale.  Once upon a time it probably meant that it was a very quick time frame from listing or making an offer to close….  Well, truth be told, it’s turned into an oxymoron!

A Short Sale is when the proceeds of the sale won’t cover or pay off the various debts or obligations associated with the sale of the home.  The oxymoron is that this process can take several months; not a short time what-so-ever.  Even worse, the deal can go “up in smoke” up until the moment before the papers are signed.

Recently I have worked several short sales.  A few have been lucky and made it to the closing table after several months.  The most dis-heartening one was where we had a fairly short process of only 3 months, got the go-ahead to close and find out that the bank took the defensive steps of winterizing the home.  They did this approximately 3 weeks prior to the scheduled closing.  Problem was something happened, or was done by someone (since I truly don’t know).  The day of the walk thru and the property had not been de-winterized as directed, we noticed broken pipes on the third floor.  Luckily, the water had been turned off so there was no damage except for a non-working heating system and the potential for other broken or fractured pipes in the walls.

Well, the bank refused to budge on things.  My buyer wanted his plumber, at competitive rates, to do the repairs.  He did not want to risk a half-assed job that caused more pipes to break or un-caught leaks that could then produce additional damage down the line including the potential for mold.  The bank refused all reasonable proposals.  All of us were in agreement - the buyer, his attorney and myself -  that it was not prudent to go forward with the sale given the terms and condition of the house coupled with the homes over all value.

Short sale.  It is an oxymoron.  In fact, most short sales end up as no sale.  Just ask one of the many Realtors who have worked them.

If you are thinking of buying or selling a home that will be a short sale you had better make sure you are working with a Realtor who has experience in the process.  It truly is a unique process which you will need to have explained to you clearly from the start so you are prepared!

Have you had any experiences with a short sale?  Tell me your story…

It’s amazing to me that a buyer will worry about what a seller bought their home for!  The fact of the matter is that it shouldn’t matter!!

Your reading and thinking that what I am saying is absurd.  Well, let me put it in perspective and just state an actual fact…. “The home is only worth what it is worth today”.  It doesn’t matter if the seller paid $250k more for a home or overpaid when they bought it.  The same is true if the seller bought the house for almost nothing.  It doesn’t matter if “lightning struck” for the seller when they bought the home and it was the most fabulous deal.  The house is only worth what it’s worth today to the pool of buyer’s out there.

Don’t worry what the seller bought the home for!  Spend the time looking at sales of equivalent or similar homes/condos that have sold in the immediate area.  That is what will validate a value.  It’s also what appraisers will use to establish the value of the home if you are not lucky enough to pay cash for a home and need to finance it.

Have questioins?  Please don’t hesitate to email me at David@4MassRealEstate.com or visit my website at www.4MassRealEstate.com

Banks seem to be doing everything these days to get in the way of properties being sold in my opinion and I think you will find this the opinion of many real estate professionals out there!

Let’s look at short sales first.  Many of these homes are on their way to foreclosure which can be exceptionally expensive for banks.  A short sale is where the proceeds from the sale will not cover the obligations the seller has to cover any owed debts on the property combined with the associated costs of the sale.  Although the banks need to due their due diligence, and they should, it is taking them months upon months to respond to the parties involved in the transaction.  I personally have seen a number of transactions where there is a willing and able buyer that will purchase the property, at a fair current market value, and it takes months upon months for the bank to even respond.  Buyer’s get tired of waiting, lose their rate locks and just eventually move on.  This hurts everyone involved from the seller to the buyer to the banks.  In fact, I have seen properties that have an offer in on them that the bank just does not proceed in a timely basis where the property goes into foreclosure.  This process for the banks is exceptionally expensive.  Why aren’t they moving quicker??  Botton line is that it is unbelievably frustrating!!

The other thing which banks do, which is tied into the new loan regulations, is using appraisers who don’t even know an area and therefore can’t really do an accurate appraisal.  Once, you had appraisers that worked specific geographic areas and were up to speed like the Realtors on what was selling and the true trends of the market.  Now, and I have to say this, I sometimes ask the appraisers if they are even from Massachusetts or if they have even worked in the particular town or not.  I have had appraisers come from New Hampshire and Rhode Island to do work here in the Boston area.  Yes, they may be licensed but this does not necessarily mean they are qualified.

In one particular town, Newton, there are 13 villages by name although only 8 or 9 are referenced by the local people.  Prices and valuations are very different as is their perceived desireablility to the informed buyer.  Some of the appraisers I have run into have no idea that these places exist or the difference in value that occurs.  They use comparable sales from areas of town, although they may be less that a mile away, that don’t reflect the true value of a property.  In the end, this can scuttle a deal or force a buyer to appeal or go to another bank for financing which is expensive, time consuming and can push a sale out weeks or months.

Really though, it is the area of the short sales that really get me aggravated.  The appraisers are only doing their jobs and many do good jobs.  I should give them a break…  Banks need to do their part.  They need to become more responsive.  To wait 3 or 4 months for a response is a little unreasonable.  Especially when they have all the information they need within a couple of weeks.

To me, the way banks are handling short sales these days is almost a crime.  Many of them are are using our tax payer dollars but don’t have the systems or people in place to work efficiently and cost effectively.  They end up costing the general public, buyers and sellers a great deal of money in the end!

I come across so many people looking at homes where all they want to do is look at the price relative to the assessed value.  Personally, assessed value to me as a Realtor, or as a buyer, means absolutely nothing.  They are just numbers to manipulate when it suits my purpose.

Assessed value is a valuation a town or city places on a property based upon other sales in the general neighborhood.  By law in Massachusetts it should reflect current market value at the time of the assessment.  In reality, it almost never does.  Additionally, what many people fail to take into account is that many times assessed value is based on the value 1 year ago from the last January 1st or December 31st date.  Sitting here writing this blog, it means that current assessed value is almost 2 years old not taking into account any market movement.  There is also usually delays from work that people have done on their home and when those permits eventually take hold in the assessors database.  In fact, in talking to assessors in various towns, they have told me that if they don’t get a chance to get into properties or are prevented from getting into properties that after a certain period of time they just assume work has been done and things updated.

One can use median or average median prices to establish trends such as homes selling a certain percentage above or below assessed value.  Still, you will see multiple homes that will sell for 5, 10 or 20 times more or less than the assessed value.  What does that say?

Assessed value is best utilized by a buyer’s agent.  They can manipulate those numbers to benefit their buyer clients lower offer.  It gives them a basis to refer to.  I myself do this quite frequently

If you come to one of my listings -  homes for sale in Wellesley, Brookline, Newton, Needham or any of the other areas I sell - don’t bother trying this.  I understand it.

Bottom line is that Assessed value is telling you what you are paying in taxes compared to your neighbor.  That really is all that it tells you and can give you a basis for appealing your value if it is much higher than others in your neighborhood.

If you are in the Greater Boston area and want some insight or help in determining if it’s worth appealing your assessed value, just email or call me.  I am here as a resource.

Many people know that using a Buyer’s Agent when purchasing a property is a tremendous benefit (as long as they are a great agent…) and in most cases the seller will pay the Buyer’s Agent fee from the proceeds of the sale.  That agent’s fiduciary responsibility is only to their buyer even when the seller is paying their commission.

I myself work under contract with buyers.  I am not looking to tie them down and I make sure starting out that we are a good fit to work together and more importantly that they feel comfortable with me.  Usually that is the case since most of my clients are referred to me by past or current clients who have had a great experience in the home buying or selling process.

What is the bennefit of working under contract from the perspective of a buyer?  Well, when you have an agent you are comfortable working with and trust they can be worth their weight in gold.  The agent, myself included, only gets paid when a sale closes.  By working under contract, and I work at a minimum 2.5% fee of the sales price, I am focused on finding my clients the right property.  This means I keep my eyes open for “For Sale By Owner” and my ears open for people who I hear might be selling.  If I have or hear about a potential property, I am going to let my buyers know.  I do not pay attention to what a seller or brokerage may be offering since I know I am going to get paid in the end.  I have heard of some sales agents only showing properties that offer a certain commission percentage or more.  From my perspective, this does not serve the buyers in the best way possible.

I explain up front to my buyers how I work and what makes me different from other agents.  I also encourage them to speak to current and past clients since I can talk about myself endlessly…  People who I have worked with are in the best position to speak about what I do, the level of knowledge I bring to the table and the level of service I provide.

If you are thinking of buying a home or a condo you should think about working with an agent via a contract.  If you don’t have someone, give me a call or shoot me an email and I am more than happy to put you in touch with agents in areas that I don’t cover.  If you are looking in areas I do cover, I do hope you will give me a call.  I am more than happy to put you in touch with people who have worked with me.  They are my best testimonials.

With all my listings and potential listings there is always the question if the seller should do work or not.  Quite frankly, it’s a case by case answer.

The first reason to do work in a home is to address potential inspection items.  The last thing that a seller wants is to have to renegotiate a price due to things that are discovered or revealed.  Many times, a buyer is looking to utilize the inspection to renegotiate the price in addition to addressing some of the issues revealed.  This money, spent by the seller up-front, in my eyes is always a good investment.

Spending money on updating is a tougher call.  Usually when I suggest spending money it is to refinish hardwood floors or sometimes to put a new countertop on good looking kitchen cabinets where an older counter-top takes away from the perceived value of the house.  When spending money on a home it’s all about return on investment (ROI) or will it assist in getting the home sold faster.  These days it a tougher call then it once was.

Personally, I think it’s usually better to lower the price by what might be spent.  By lowering a price for the perceived short-comings of a property what one is doing is expanding the potential buyer pool.  The buyer pool is like a pyramid.  As you go higher, the number of potential buyers gets smaller.  A seller is usually able to get a better price when there are more potential buyers…  and value is presented.

Face lift or sell as is??  Well, I guess it’s to sell as is unless you are looking to correct potential inspection items.

Thinking of selling your home?  Give me a call.  I am more than happy to take a look if you are in the Greater Boston Area and give you my personal opinion.