Residential Exemptions in Boston and Brookline

August 28, 2012 By Leave a Comment

Residential exemptions are reduction on your tax bill if you live in the home you own. Most towns have some sort of residential exemption, usually calculated with a deduction off the assessed value of your principle residence. Your principle residence is defined as the address used on your last income tax filing.

In Brookline, the residential exemption is a percent of the total assessed value of a home, while in Boston it is a constant number. Brookline’s exemption does not exceed 20% , and in FY2012 was approximately 16.5%. In Boston, owner occupants saved $1,644.28 on their tax bill in FY2012.

Since fiscal years in this municipalities run July 1 – June 30th, FY 2013 is upon us. It is time to ensure you have your residential exemption application in! If you’ve occupied your home since January 1, 2012 or earlier, you are eligible for this significant savings on your property tax bill.

Go online to your assessor’s database to learn if you have your residential exemption in place:

Boston Assessor’s Database: http://www.cityofboston.gov/assessing/search/?q=

Once you find your property, click on the details. On the top portion of the page look for “FY2012 Residential Exemption” and it should say, “Yes.” You do not have to reapply for the exemption; it is all set until you say otherwise.

Brookline Assessor’s Property Lookup: http://www.brooklinema.gov/assessors/propertylookup1.asp

Submit property information and then click on Full Record. You will find the residential exemption information under the “Value/Taxes” tab, first line.

If you need to apply for the residential exemption find the forms here:

Boston: Applications are available online only January 1 – March 30th, but you can apply anytime. Application forms are available at the Assessing Department, Room 301, City Hall or at the Taxpayer Referral & Assistance Center (TRAC), Rm M5, City Hall. The TRAC (617-635-4287) is open Monday through Friday from 9am - 5pm.

It’s a bit easier in Brookline: http://www.brooklinema.gov/index.php?option=com_docman&task=cat_view&gid=375&Itemid=94

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The #1 Deal Killer for Newton and Brookline Houses

July 2, 2012 By Leave a Comment

Last Spring market, which ended roughly a week ago, looked something like this: buyers want to buy, sellers unsure they want to sell, plenty multiple-offer situations and many deals falling apart mid-way to closing. This is the nature of a market with rising prices.

Homeowners, believing prices will rise, stay on the sidelines and don’t feel a need to sell their homes. On the flip side, there are not enough homes on the market to satisfy all the buyers, who are bidding up the prices of homes.

But many of the home sale transactions don’t make it to closing, or at least not without some disappointments and fighting. The dreaded appraisal is the culprit!

The appraisal is a third party evaluation of the home which the bank requires for a mortgage approval. An appraiser comes to the home and compares it to recent sales. In our market, the appraiser has a difficult job because there may not be enough recent sales of similar properties, and the price buyers are willing to pay is higher than it was just a few months ago.

Because of the formulas, regulations and rules the appraisers must follow; their evaluation is often coming short of the offer price, which the buyer and seller already agreed upon. What does this mean? Here’s an example:

Four offers are submitted on a house in Newton, and the best offer was accepted at $800,000. The buyer agrees to pay a 30% down payment, $240,000 and submits a mortgage application for a 70% loan, $560,000.

The appraiser uses the limited recent sales data for similar houses nearby, and comes up with an appraised value of $750,000. The mortgage company will still fund 70% of the appraised value, but now this number dropped to $525,000.

Once of several things may happen next:

  • The buyer may demand the price reduced to the appraised value. Why should he pay more than that?
  • The buyer can make up the difference in cash.
  • The buyer and seller can negotiate a price between the $800,000 and $750,000. The buyer will pay cash for anything over $750,000.
  • The buyer and seller may terminate the agreement, (if there is an appraisal contingency in the agreement, which I’ll discuss in another posting).

Whatever the decision, it is never a romantic time during a real estate transaction process. Both parties are usually upset – buyer fearing he is over paying and dreading the added cash expenditure and seller annoyed she is making less than expected. This is especially disappointing when there were several offers, four buyers is willing to pay more than the appraised value!

Five years ago appraisals were rarely a problem. But are and will continue to be an issue everywhere prices are going up, inventories are low, and buyers are ready, willing and able to buy.

Buyers and sellers must prepare themselves for the appraisal. I’ll discuss that in upcoming posts.

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Caught in the Bad Information Trap? No More Zestimates for Brookline and Newton!

May 8, 2012 By Leave a Comment

Are you addicted to Zillow? It’s so easy to sink into that site. I admit to getting caught up in it when trying to get a picture of real estate in other parts of the United States. My real estate curiosity doesn’t end in Newton, Brookline and Boston. But then I remember, the injustice Zillow does to my neighborhood, it does elsewhere.

Don’t get me wrong. I love that information is totally accessible and easy to use. It’s those Zestimates that drive me nuts. Zestimates 50% off are not uncommon. In price ranges we have in Newton and Brookline, even 15% off a useless estimate.

Just because something is computer generated doesn’t make it right. A lot goes into pricing real estate, variables a computer just can’t compute. From experience, I believe the Zestimates are a combination of recent sales data and the public records. This is incomplete information.

I’ve encountered Zestimates used in two different ways. First, by sellers. “Zillow said my home is worth $950,000 and you’re telling me to put it on market for $800,000???!!!” Well, Zillow didn’t know that the square footage in your public records is wrong, that your house is a “contractor’s dream” and your back-yard is a puddle.

Buyers sometimes try to use the Zestimate to come up with a price for a house when they want to make an offer. This makes me so nervous! Offer too much for a home and you are overpaying. Offer too little and your are missing out on a home that may make you very happy.

If you want to continue using Zillow in your search, be mindful and ignore the Zestimates. You’ll do better looking at recent sales (and make sure they are recent), and comparing them to each other and your subject property. Done professionally, it is called a Comparative Market Analysis (CMA).

Better yet, ask your agent for a CMA whether buying or selling. For buyers, your buyer agent should provide you with a CMA before you make an offer. For home owners, a market analysis is usually a free service, and one that is provided happily and without obligation. This is your best bet, especially if you trust your agent. Leave the Zestimate for your home in Zewton or Zookline.

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The Newton and Brookline Market Downturn

April 27, 2012 By Leave a Comment

My friend was telling me how the market downturn was an opportunity to find a bigger home in Brookline. Unfortunately, she didn’t find the home she wanted. (She wasn’t my client).

Yes, the market took a turn. Everyone in the country knows about our real estate downturn. But in Brookline and Newton, this downturn disappointed many hopeful buyers.

While Massachusetts real estate numbers are showing us in a continued slump, Newton and Brookline have proved remarkably resilient. I’m looking at the Multiple Listing Service statistics for the years 2007-2011. In Brookline, the downturn single family house prices dipped from their 2007 peak of $1.43 million to the low of $1.32 million in 2009. In 2011 the average Brookline house price was back up to $1.41 million.

Condos, on the other hand, experienced a price hike. On average, a condo in Brookline cost $503,600 in 2007, and in 2011 the price was up to $562,100. This is approximately at 12% increase in condo prices and a leveled single family market.

In Newton, the numbers for a single family are different but point to a similar trend. In 2007, the average Newton house cost $936,100, dipped all the way to $842,100 in 2009 and in 2011 went back up to $908,900. The volume is still lower, 617 houses sold in 2007 versus 518 sold in 2011. But this Spring’s market has been extremely busy, and multiple offers are common. Sorry, buyers. Hooray sellers.

Digging a bit deeper, though, you find some interesting details. The hottest segment of the single family homes in the Newton market is those in price ranges lower than the average price. While the larger homes take longer to sell, and go through more price reductions and negotiations, the smaller homes are selling fairly quickly.

These numbers tell me this is a great time for a move-up. If you are both buying and selling in Brookline or Newton, don’t feel you missed the boat for an upgrade. At least request an updated market analysis on your home.

A market analysis is a free service most Brookline and Newton real estate agents provide. I recommend you get a couple of opinions. Zillow doesn’t count!!!

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Tell Your Agent These Things Now, Avoid Problems Later

April 24, 2012 By Leave a Comment

It is extremely frustrating to work on something with incomplete or wrong information. All of your efforts can end-up worthless. When real estate clients do not give all information in the beginning of their buying or selling process, the advice they receive misses the mark.

Some home buyers and sellers don’t give agents all the information for several reasons. It may be a lack of trust, or fearing the agent will not want to work with them. So go find a trustworthy and dedicated agent, and tell him or her the following.

First, tell your agent your real estate needs. If you are not sure what that is, that’s OK! If you change your mind, that’s OK (and expected)! But the agent must know your general needs, and work with them. Your agent may offer all sorts of alternatives to see if you are open to other things, so don’t be annoyed or offended. Suggestions for seemingly unfitting options sometimes open the door to new markets you didn’t previously consider.

Second, tell your agent your general financial situation. In the boom market we got used to keeping all our financial information hush-hush because everyone could obtain a mortgage one way or another. Down payments and credit scores simply changed loan terms, not eligibility.

Those days are over. Your agent needs to know about your loans and equity if you sell, and your down payment and pre-approval from a reputable mortgage broker if you buy. A creative and knowledgeable agent uses such information to negotiate better, to steer you in the right direction, or to talk you out of a transaction if need be. (By the way, the bank loans on your home are all public information, so an agent should know at least that before you even meet).

Third, tell you agent about your timeline. If you are not in a rush, it’s okay, but tell your agent. Both client and agent must be very clear on a timeline and work accordingly. For example, as a seller, if you are not in a hurry to sell an agent may recommend you don’t go on market yet. Instead, maybe it is best to market your home in different season. A buyer who’s not in a hurry may be advised to wait for price reductions or for an unusual opportunity in the market that can save the buyer a lot of money.

If you are not open and honest with your agent, the advice you receive will not be optimal. You will miss out on valuable information and frustrate a well intentioned agent.

Be sure to clarify your real estate needs, be open about your financial situation as it applies to real estate, and discuss your timeline. Your agent’s goals should be your goals, so make them known.

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Bad Real Estate Agent Habits

February 28, 2012 By Leave a Comment

There are some really annoying habits that I see agents engaged in. Some are bad manners and some are bad sales. Whatever they are, I’m getting this out in the open and hopefully out of my system.

1. The cell phone addiction. This is a universal bad manner everywhere. Agents: unless you have an incoming call or text related to the clients you are with (appointment confirmation, negotiation, etc), do not pick-up or reply! How annoying is it to have you texting or answering calls that have nothing to do with the client you are with. One conversation at a time, please.

2. Laptop at open houses. Please stop asking people to sign-up at an open house on your laptop. Pen, paper. If you insist on using a computer, then type it in yourself.

3. Laptop open during presentation. Please don’t use your laptop during a presentation, unless you want to show a specific picture or video. It is unpleasant to most people to talk to you while you type or have it open next to you.

4. Bad locks. Attention listing agents: using a key to open the door should not require a list of instructions. If the lock is not opening easily, ask the homeowner to change it. I admit to being a horrible violator of this piece of etiquette, and I regret it.

5. Leaving a closing early. If your client is there, you stay there. A closing may be anti-climactic and boring, and agents may have absolutely no function. But this event is not about the agent, it is about the buyer, mostly. Stay put, be quiet, and don’t ask about your check until everyone is done.

6. Stop saying how wonderful the house is. No property is perfect, and finding the imperfections is part of a real estate agent’s job. Agents should not sound like they are selling a dress at Bloomingdale’s.

Good manners and good sales go hand in hand. They are about listening, being present and giving people the respect and attention they deserve. Hopefully I’ve offended only a few. By Ruth Malkin-Lerner, Senior Associate, Dwell360

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Can I Trust My Real Estate Agent?

February 15, 2012 By Leave a Comment

In many countries and cultures the salesperson is not highly regarded. They are seen as swindlers, trying to get a commission at any cost. This often happens where there is little history of salesmanship, or little consumer protection.

Luckily, here in the United States, we respect the sales agent. We recognize that a sale is the first step of any transaction. Salespeople are often top earners in any industry and real estate agents have earned a commanding place in the economy.

I believe the overwhelming majority of real estate agents are trustworthy and will do their best for their clients. I am not saying they are great agents or skilled negotiators, I’m just saying their intention is to serve honestly and meet fiduciary obligations. Don’t forget we have enough liability that it is just not worth being slightly less than forthcoming.

In working with people from various cultures and immigrants from several countries, I learned that hiring a real estate agent goes against the common good sense for many. A deep distrust is hard to shake-off. Here are a few tips to find an agent that you can trust.

Ask for References - It is perfectly acceptable to ask for references. An agent should be happy to give references. Feel free to read testimonials, call past clients, and ask many questions.

Ask about Challenges - Every process has a challenge, every sales person has a weakness. We are not perfect and the most confident and trustworthy people will be open about that.

Use your own intuition - Most trust is built through simple rapport. That is how we build friendships and business associations. Use your own intuition about a salesperson like you would about any other person.

Be open about your reluctance - You can speak plainly about why it is difficult for you to hire an agent. If you are met with hostility and offense, then you are speaking with the wrong person. A trustworthy agent will be able to explain to you the different rules and regulations in real estate brokering, and be sensitive to your needs.

If you don’t understand something, say so! – A good agent will find a way to make things plain and clear, regardless of your language and cultural differences. Ask as many times as you need to have things clarified, a trustworthy agent wants to know that you have 100% understanding of what is going on.

Whether a discomfort with real estate agents is due to a cultural difference or a bad experience in the past, you can find someone who will be completely committed to representing your best interests.

Let me know if I can help you find the right agent. By Ruth Malkin-Lerner, Senior Associate, Dwell360

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Homebuyers Make Lifestyle Options Priority

August 9, 2011 By Leave a Comment

The adage when it comes to real estate has been “location, location, location.” A recent survey, though, shows that lifestyle options are a priority. These include health and safety, access to cultural activities, and family-friendly neighborhoods.

Today’s buyers are looking for a sense of belonging in a community as well as creating a desirable lifestyle with the home they buy.

More than 1,000 homeowners and future home buyers were surveyed for the Meredith Corp report. The respondents indicated that how satisfied they’ll be with the purchase of a new home may depend

significantly on the home’s surrounding community. About 84 percent of those surveyed were homeowners and an additional 10 percent had plans to buy within three years.

Here are some of the results. The survey found the following lifestyle options are top priorities for buyers.

* Ease of commuting by car: 38%
* Access to health and safety services: 34%
* Family-friendly neighborhood: 33%
* Availability of retail stores: 32%
* Access to cultural activities: 21%
* Public transportation access: 19%
* Nightlife and restaurant access: 18%
* Golf-friendly area–access to golf courses: 6%

If you’re a seller what should all this mean to you? It’s an opportunity to target buyers based on their interest. Just like businesses need to know who their target market is so that they can

build a brand and solicit to those consumers, so too, for sellers.

If you’re selling your home and you know that the above priorities can influence buyers, it only makes sense to play up the lifestyle options that apply to your home.

Often sellers focus predominantly on their home and the upgrades and amenities. While those features are very important, remember that practically any home can be remodeled. If you’re in an

excellent location with easy freeway access, on a low traffic street in a friendly neighborhood, or surrounded by retail stores and hot dining spots, it’s time to play it up. Those features aren’t

always easy to find.

Promote your lifestyle features with not only creative writing in the Multiple Listing Service detailed section, but also in ads with photos. You should also try using video of your home and the

surrounding area. These days marketing goes beyond the MLS and glossy flyers. An archived video on the Internet doesn’t get tossed in the trash like a piece of paper often does.

Showcasing your home on social media sites and giving a taste of the neighborhood in a well-produced video can be a fantastic marketing tool. However, don’t use a poorly shot video; that may hurt

you more than help you. Hiring a videographer or even a video journalist to tell a story about the area is well worth the money you’ll spend. This style of storytelling can greatly increase

interest in your home and, ultimately, the sales price.

Another option is to use footage (link or embed the video) from local retail outlets and post it on your social sites so that you can showcase some of the fun, nearby entertainment establishments.

Create an album on your social sites so that all these photos, videos, and links to articles are housed in it and then share it with friends. Don’t make this album about you and your family in the

home. Instead, make it like a review of the area. You are showcasing, through pictures, videos and words, the great places that you enjoyed while living in your home. Putting all these items online

gives you greater exposure as people forward them to others.

Reality TV is popular for a reason; it takes people along for the journey, exposing life as it really is. Showcasing your home, neighborhood, and nearby restaurants allows potential buyers an

opportunity to imagine the things that they would do if they lived in your home. We are becoming a very visual society and because so many properties are viewed first, and sometimes only, via the

Internet, it’s worth making what buyers see online valuable and persuasive. Seeing all that your home and its surrounding area has to offer in a video is as close as they get to actually

experiencing it. The next step is literally stepping into your home for a closer look.

A little extra effort and promotion to highlight what’s important to buyers may get you the sale faster and for the price you’re hoping for.

Written by Phoebe Chongchua

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Minimalist to Homeownership

July 19, 2011 By Leave a Comment

Things have really chance since the recession started and from small or no down payment, we now need a minimum of 20% to make most sales work, sometimes even more. With the tighter budgets in American households, saving up for the down payment is a daunting thought.

But here’s a tactic that will help you save-up for your new home faster: embrace minimalism!

Sounds a little bit of a contradiction: to be a minimalist in order to buy a home. But minimalism is a lifestyle that will allow you to become a homeowner faster and enjoy your home more.

Minimalism is about living with less because you realize you need less. It is a process, and you can’t just transform all your spending habits at once. But you can find ways, starting today, to save just a little bit. Maybe in a couple of weeks you’ll find a few other places to save.

The key is to not feel deprived of anything. This is why you must see what works for you. Everyone is different. One woman may be unable to fathom herself without a pedicure, another couldn’t care less. The point is to start with the little expenditures you can forgo. Are there products or services you are buying which you can do on your own? Are there things you are buying you really don’t use much?

If you think the little things don’t matter, they all add up. For example, my husband and I decided to cut our household expenses. We started with the big things, like the gym. It was awful. We felt we are depriving ourselves of something, as going to the gym was part of the daily routine. We were exercising less, which was bad.

Instead, we said we’ll try to cut out buying coffee and we’ll only drink coffee at home or in portable mugs. We also cut out restaurant expenditure and enjoy picnic with our daughters outdoors on the weekends. We buy fewer clothes, and do a little bit more laundry. Those things have all added to savings without deprivation.

Now it has become a little sport to find ways to get creative instead of spending money. We’ve coupled that with getting rid of items we don’t use much.

The whole point of minimalism is to only have the things you use and let go of the rest. This will also help you save for a down payment faster.

When showing buyers homes, we always look at the closet space, where to put stuff. One buyer once told me she needed a two bedroom condo. Since she could only afford a one-bedroom I asked her why she needed a second bedroom. She said, “for my stuff.”

It hit me! We are paying for a bigger home, taking out a bigger loan and paying more interest to house items of little or no value. Maybe we don’t need all the space we think we do. With less stuff, you may find yourself satisfied with a smaller home, thus lower price and smaller down payment.

Another great benefit of minimalism is that it reduces your environmental impact. Buying less, consuming less, means less waste. I don’t know how it ties in to a down payment, I just thought I’d mention it.

A couple of inspiring resources on the matter:

http://zenhabits.net/

http://www.amazon.com/Joy-Less-Minimalist-Living-Guide/dp/0984087311/ref=sr_1_1?ie=UTF8&qid=1310660248&sr=8-1

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Weekly Aggregator of the Top Real Estate News, June 3 2011

June 3, 2011 By Leave a Comment

Don’t surf all over the web trying to figure out what’s going on…I did it for you. Here is this week’s more meaningful news and insight into the real estate market:

June 3, 2011 Foreclosure Settlement to come in a “matter of weeks,” HUD Secretary Says from L.A. Times

June 1, 2011 Mortgage Rates Today: Low Mortgage Rates Remain in Holding Pattern from Realty Times

June 1, 2011 Pending Homes Sales Decline from Realty Times

June 1, 2011 Core Logic: Home Price Index Increased 0.7% Between March and April from Calculated Risk

May 31, 2011 Stop Housing Obsession from Jim Cramer at the Street

May 31, 2011 Real Housing Prices and Price-to-Rent: Back to 1999 from Calculated Risk

May 27, 2011 Real Estate Outlook: Existing-Home Sales Fall from Realty Times

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