David Gordon\’s Blog

Many sellers, and agents as well, have the perception that it is better to wait for the Spring Market to put their home on the market. In many instances, this will not bennefit the seller and maximize their sale price.

Why I am I saying this? Well, inventory is traditionally low late in the year and just after the New Year. Choices are few for buyers and there is pent up demand. By being early to market, not waiting for March or later, a seller has the potential of maximizing their sale price. They will be the focus of buyers out there looking and not a property that is one of many where a buyer(s) have multiple choices. Additionally, when a seller puts their home on the market it is not only what the perceived value is worth but positioning the property properly compared to other competing properties. Being early to market will let them establish a value within reason. If you come on later, with more competing properties, a seller may be forced to come on at a lower price to increase perceived value to those other properties.

What are your thoughts on this?

The City of Newton will probably see the largest number of new construction homes in 20112 to hit the market in several years. This is primarily due to the change in the zoning/building guidelines that took affect this year.

Why did this change affect the number of new construction homes? Well, everyone looked to file their plans and permits before the change while things were clearly known and the new rules would limit the size of new larger homes.

Don’t be surprised to see the average sale price in the City of Newton jump for 2012. It won’t be be because values are rising but will be driven by the high sale prices of so many new homes.

Stay tuned and see if I am right…

I was talking with a new client the other day who asked me if the winter was a great time to buy. My definitive answer was “Maybe”.

Real estate is now truly a 12 month industry but most sales occur in either the Spring or Fall. There is an opportunity to get a better value on homes that came to market not positioned correctly, chased the market down (the general trend out there) and have become old and stale to buyers and agents. They just may say yes to that outrageous number that they wouldn’t even have laughed at many months ago.

In my opinion, it’s about finding the right house at the right value. Winter months tend to have the fewest number of homes on the market compared with other times of the year. The ability to find the right house is there but the question is if it’s there.

Around Newton, Wellesley, Brookline, Needham, Belmont, Winchester and many of the other towns around Greater Boston, the actual land and usability factors greatly into the price/value. If it’s covered in snow, and without great seasonal pictures, you might not know exactly what you are getting.

Looking during the Winter has no downside. You just might find the right place! If you don’t, you have at least increased your knowledge base so you are prepared and ready to move forward when you do find it.

What are your thoughts?

Currently mid-market single family homes, not entry level or high-end homes, are selling the fastest in my market area of Newton, Brookline, Wellesley, Belmont, Lexington, Needham, Westwood. In many of these towns that price level is considered to be $600k to $1m. I believe is the reason behind this is that people who were going to buy entry level homes accelerated their purchase plans due to the Federal Tax Credit that was offered in 2010. So many people bought that it substantially reduced the number of potential buyers in that price range for both today and maybe a couple of years to come.
Many of today’s buyers are dual income households but the uncertainty of the job market, general state of the economy and stock market I believe is making them be much more conservative in what they elect to pay for a home. This general price range is offering today’s buyer much of what they want: 3-4 bedrooms; 2-2.5 baths; acceptable space and condition; yard and even garage parking for 1-2 cars.
Financing for the upper end of our market ($1.7m+) has become much more stringent with many lenders demanding $25% down or more which I believe has had some impact there.

The slowest segment of the market has definitely been the condominium market in the mid to low end price range. My personal opinion is that the Federal Tax Credit ended up hurting this segment of the market the most. Many of the buyers who would have been considering buying this year or next definitely moved up their plans to purchase to take advantage of the credit. Right now I am seeing far fewer buyers out there looking in this segment than I have in several years.

Let me know what you are seeing or experiencing.

You hear about the tough real estate markets in many parts of the country.   That doesn’t seem to be the case in the cities and towns close to Boston.

Although we were pummelled snow storms this winter ,which left a fair amount of snow on the ground and set back the Spring market by several weeks, things are starting to crank up.   New inventory to market has been limited and anything coming to market that is reasonable priced seems to be getting an accepted offer very quickly.   In fact, many of those homes for sale are getting multiple offers.   I had 2 different clients not get homes they bid on this past week, in different towns,  where they were in multiple offer situations.

The craziest thing i saw was a home for sale in Brookline that was on the market in the Fall for $999k which had been reduced over the months from around $1.1m.   It came back on the market for $1.039m.   Now, everyone knows that it was on that low in the Fall but it received multiple offers due to the lack of inventory in that particular part of town.   I’m not sure what it will sell for but it will most likely be around or maybe even just above asking.   Now that’s a little crazy to me.

Don’t believe what you are reading in the papers and hearing in the news.   Real estate is a lot like the weather!   It all depends on exactly where you are and even what price point you are in.   Make sure you work with a Realtor you trust and someone who perceives their job as making sure they give you all the information to make a fully informed decision.   That is the only way that you will maximize your sale price or get the best deal as a buyer.

If you don’t happen to know someone, feel free to contact me through my website www.4MassRealEstate.com or via email at David@4MassRealEstate.com.   Part of my job is helping people find a great Realtor in their area, around the country or even around the world.   I am able to due this through my various networking connections both through our company and through agents who I have developed relationships with over the years.   I am here not only to help people to buy and sell real estate but to be a real estate resource!

Many buyers will see the statement “Sold As Is” and immediately dismiss a potential property from their list.   DON’T BE AFRAID OF THE “SOLD AS IS” property!!!

What “Sold As Is” really means is that a seller is not willing to do any work to correct any items or situations that are known of or discovered through an inspection.   They may have neither the time, effort or money to do it.   This does not mean that your initial offer, if accepted, is set in stone.   It just means the seller isn’t going to do anything.

In situations like this, for issues that are visibly noticeable at the time of offer, or known about, you should take into consideration when making the offer.   For things discovered, you still have the ability to try and negotiate a credit or reduction in price to address those items that are satisfactory to you  and the seller.   It does not mean you are not allowed to do an inspection…   In fact, I encourage my clients to do an inspection with any purchase.   This holds true with new construction since over the years I have learned that new construction homes many times have a litany of items that need to be addressed or fixed contrary to popular belief.

If you run into a situation where a seller is representing that the property is going to be “sold as is,” don’t let that scare you.   There is always recourse.   Look to re-negotiate the price or better yet a credit at closing to either cover those items or as much of the associated costs as possible.   Worst case is that you can always walk away from the deal if you do have an inspection contingency (which you should always have)!

It’s not where your agent’s desk is located that is important!

Many seller’s get caught up in where an agent’s office is located and not the results that they deliver.   This shouldn’t be the case.   What is important is that the agent knows the town and is able to accurately advise how to price the home so a seller presents value to buyers.

Recently I had a couple looking to sell their home just a few streets down from where I live.   What’s interesting is that they were more caught up in where my office was and not the results I have delivered in selling my listings in town.   They wanted someone who had a local office.   They did not care that I worked for a local brokerage for several years and have a long history of fabulous results and testimonials from clients who I have worked with.   They ignored this as well as the technology that my office provides in getting the best exposure possible coupled with the great relationships that I have with the local agents which helps facilitate getting my clients to the closing table.

If you are thinking of selling, don’t get caught up with where an agents desk is.   Be focussed on the results the agent delivers and what current and past clients have to say.  

What are your thoughts?

I think I have wrote about this last year but I think it’s worth mentioning every year….   Come the Holiday season many sellers face a dilemma.   The question they are asking is “Do I keep my property on the market during the holiday season or do I take it off and put it back in the Spring?”

Well, there is no clear cut answer and the decision is ultimately the sellers.   How I advise my clients is that if they are going to sell, no time is better than the present.   People are buying (and I am selling) properties 12 months a year.   Although Spring may show the yard features off better competition is less going into the holidays.   This means fewer choices for buyers who need to relocate for work or are looking to get into a particular school system before the new semester starts.  

Still, it’s all about presenting value.   If you have not had any offers, or for that matter second or third showings, the market is telling you the property is overpriced by market perception.   You might think you are going to go out at the same price and then maybe re-position but fact is the matter you might end up chasing the market.   Other sellers bringing their home to market in the spring are going to position their property relative to yours (looking to present a better value) and other potentially coming to market.   This may force you below an asking price that might have been viable in the holiday season.

It’s hard to know.   I look at my job as making sure I give the seller all the pertinent information and share my past experiences so they are able to make an informed decision.   After all, I work for the seller and they give me my marching orders.   I will, of course, voice my opinion and thoughts but in the end it is up to them.

What are your thoughts?   Let me know!

When working with clients looking to buy, especially those relocating from other parts of the country, the question of schools is always there…   The questions is, how should you factor that in.

Around the Boston area, we are very lucky to have some of the best schools systems in the country.   Many communities have excellent school systems.   Compared to many parts of the country even more may be considered excellent.   Yet, it’s all relative.

When buyers tell me that school systems are one of the most important factors there are 6-10 communities that I can rattle off that are consistently rated at the top.   These communities also many times come with a premium price that put the homes out of reach for many.   This is especially true then they are adjacent or within a very short commute of Boston, let’s say under 30 minutes in rush hour.

In having a conversation with clients yesterday as we were out looking at homes we were having the school conversation.   What I told them is ultimately what is true for all of you out there… A great school system when there is no parental participation will most likely yield a fair education.   A good school system with parental participation should yield an excellent education.   What you need to keep in mind is how school systems are compared no only locally but nationally.   Some of the towns that you may say are good but not great stack up incredibly well compared to most nationally.   It’s all a matter of perspective.

Something which I mentioned to my clients is that you need to balance things for yourself.   The only right answer is your answer. It’s finding the right type of home, in the right community at the right value within your budget.   There is no wrong answer or choice, only your choice.

The one thing to remember or note is that towns with great school systems have tended to weather the market swings better.   They are usually the last to go down in price and the first to go up as the economy changes.

For the school questions…   The answer is what you feel comfortable and good with.   Around the Greater Boston Area there are few towns that I would consider a disaster… The right choice is your choice!

I came from a seminar today on contract law.   It was one of the classes that I took for my continuing education related to my real estate license.  
Although boring at times, it re-enforced a number of things.   Primarily: “GET IT IN WRITING”.

What many people don’t realize is that a deal isn’t a deal until it’s in writing and signed/acknowledged by all parties involved.   This is one of the reasons when clients say “can we sign tomorrow” or “can we get you those changes later or tomorrow” I usually say “NO, I NEED THEM NOW” especially when it’s one of my buyers.

When it’s a buyer I am working with, I want to get changes back and over to the sellers to sign.   I don’t want to ever risk another party stepping in at the last moment to take the home away from my clients or a seller having second thoughts and changing their mind.   That is why, and my wife hates this, that even 11pm at night I will shoot out to go meet clients to get things signed or initialed if they can’t email or fax it back to me immediately.   You see, a deal is not a deal with respect to real estate unless it’s in writing.

Also, just to CMA (Realtors are thinking “custom market analysis” but I mean “cover my ass”) I will email another agent what we might have just spoken about or agreed to via email confirming what was said.   It serves as a paper trail if there are any questions.

Remember, make sure you get everything in writing! This is especially true when you are making one of the biggest purchases of your life.   Don’t put something off until tomorrow.   You never know who might step in from the wings and take that home out from under you.   I know…   I have done this before being on the winning end!