Real estate in Brookline MA, Brighton MA, Chestnut Hill MA
Brookline Realtor Ruth Lerner
Great article explaining solutions to the short sale and foreclosure glut, turning around the housing market, and why the recent programs have not worked.
http://www.businessweek.com/magazine/a-solution-to-the-housing-crisis-could-be-at-hand-02082012.html
Google+The title of this entry is over-the-top, I admit, but I am just here to stick up for the landlords out there who are trying to do some good. The word “landlord” in itself has some negativity associated with it, and the use of “lord” in this context is distasteful in our American sensibility. In media, landlords are portrayed as misers ready to make a buck on the poor and take advantage of families.
Please!
Let me tell you about the landlords, the real estate investors, I know.
First and foremost, there is a commitment to maintain the property and keeping the tenant happy and comfortable, even with the high occupancy rate and the increasing rents. I am not suggesting any altruism here, but it is cheaper to keep than replace tenants. It only makes sense that tenants stay for a long-run, and take care of the property, as it is their home. Fostering that environment is essential for positive tenant-landlord relations, which is the relationship you want in between any consumer and supplier.
A rental property is a huge financial commitment and a landlord idiot enough to not take care of it and ensure it’s livability is ill suited for the job.
Yes, there are many terrible landlords out there. The worse of them are the ones who neglect their properties, fail to keep up with safety codes, and don’t treat their tenants with the respect they deserve. Just like in any occupation, in any aspect of humanity, there are some bad apples.
For more on tenant-landlord rights in Massachusetts, go to http://www.mass.gov/ago/docs/consumer/landlordtenant073007.pdf
Google+Investing in real estate can seem overwhelming and reserved for the very rich. In the current economic conditions and marketplace, it may even feel a bit too risky. But if you’ve ever thought real estate investing may be right for you, this is a great time to learn about your options and how it can be done by almost anyone.
Before we learn about our options, though, let me say that I believe real estate investing can be a long a cumbersome process if you are new to it. That is not a bad thing, and I think of a lengthy process as a series of checkpoints that will make me very sure of my decision at the end. But it does mean that you have to have a critical eye, some good research skills and an a greater-than-average supply of patience. If this sounds like you, then let’s review how you can get into the lucrative business of real estate investing.
Whatever your budget, real estate can be your investment vehicle.
1. All cash deal. If you have lots of cash, you may be able to find an investment property in your area and buy it without a mortgage. The advantage of this is that you will be a highly qualified buyer and you can probably secure a property for a bit of savings over a buyer who has to get a mortgage. Another advantage of a cash buyer is that her expenses are much lower, as there is no monthly mortgage payment. This enables her to be more flexible on the rent, giving her more options in choosing tenants.
The disadvantage of an all cash deal is that it is not taking advantage of very low mortgage rates. Borrowing is pretty cheap, and if all your cash is in one place, you can’t use it elsewhere. Leverage is a real estate investor’s friend.
2. Part cash, part mortgage. The down payment minimum is 20-30%, depending on various circumstances and your financial qualifications. My rule of thumb is that you should make money, or at least break even, with this kind of down payment. If you lose money on a monthly basis, the property is not worth the price, (at least not not for an investor). Your mortgage payments, any association fees and taxes should be covered by the rent.
The advantage here is that you’ll be taking advantage of the cheap borrowing costs, and you’ll own a property with an income without the whole cash outlay.
The disadvantage is, obviously, the cost of borrowing money and the higher cost due to your mortgage payment - same as the mortgage on your home.
3. Pool of investors with little cash. Gather a few friends and family, and pool your money together to buy one property. It can even be a small property at first, but at least get into the market. If ten friends get together with $15,000 each…you do the math. The advantage is that you are in the real estate market, getting a piece of the pie, however small. It is a start, or a great single investment you have. You can hire a real estate broker and an attorney to help maybe for a stake in the property instead of commission and fees.
The disadvantage is finding like-minded individuals and putting it all together in a legally binding agreement. To me, this is just a bit of leg-work, and not so much a disadvantage, but it does add to the complexity of the transaction.
Entering the real estate market as an investor is not simple at first, but once you are in, it gets easier and easier. If you’ve ever considered investing in real estate, this is a great time to get in. Just choose your strategy and do it!
Google+No one wants to hear this, but I’m saying it anyway. Real estate is the best long-term financial investment. Phew…that’s a relief.
With the real estate market in the dumps for several years now, it is not easy to get back into the pro-property mind-set. But, it is exactly at these times that you should be considering expanding your real estate portfolio.
One reason I know this is because while the real estate market is dragging in most of the country, it is dominated by the professional real estate investors. Don’t you want to learn a lesson or two from them?
The professional investor loves real estate above all other investments. There are three main reasons for this.
First, real estate investing can come in many forms, just like any other investments. There are small condos, multi-family buildings, commercial, residential, mixed use properties, different towns, neighborhoods, etc. For every budget, preference and style, there is an investment instrument.
Second, real estate has a certain tangible value that you just don’t see in other investments. Property investors love that there is an asset they can visit, fix and maintain. There is a satisfaction in knowing that you have some control and responsibility in the relative value of the property.
Third, although real estate is illiquid - meaning it takes relatively a lot of time and effort to sell it - it is a versatile investment. You can hold it, or resell it when the market turns your way. You can do extensive renovations and have a quick resell, or you can hold it with tenants for years to come. Whatever it is, you have options and you can make decisions based on the best scenarios for your needs and the market conditions.
All of this assumes that you have sufficient funds for a down payment and that your expenses on the property are covered. The major drawback in investment real estate are the unavoidable expenses in maintaining it and the difficulty of selling it if you need the cash.
But this said, it may be time to consider an investment property, especially in such a critical time in the market. Opportunities and possibilities are present, and real estate investing can be a perfect fit for long-term financial goals.
Google+If you are anything like me, every piece of trash and every mile driven is a small pinch in the nerve of environmental conscientiousness. If you have kids, it’s just a constant green guilt fest, as many purchases, diapers, laundry, and trips in the car are unavoidable.
But there is a little bit of good news when it comes to home ownership and creating just a bit less waist. A recent study by the National Association of Home Builders shows that the less-is-more trend has reached the architectural drawing rooms.
The study called “The New Home in 2015″ has houses getting smaller in the next four years. Many of the amenities highly valued are being cut out of the news homes,leaving them with 10% less space and looking a bit more minimalistic. It seems that the economic downturn has deemed some features useless, such as a fourth bedroom or a thrid space in the garage. If they are unused, or unnecessary, these spaces require more heating, cooling and other resources to maintain.
If you are opting for a greener life, then you can appreciate the elimination of useless spaces and all the resources this saves. You can also appreciate that an overall trend like this can make real changes in our collective lifestyle.
What does this mean for you as a home buyer or home seller?
If you are looking to buy a home, and you are already considering environmental factors, you can rest assured that when choosing a smaller home which is more efficient, you are going to be well positioned when selling in the coming years. A big sloppy house with a lot of space of the sake of space will not be more highly valued according to this trend. Bigger won’t necessarily be better.
As a home seller, ensure your home is making the best use of space and your systems are functioning properly and efficiently. Some electrical and heating companies will come for an efficiency assessment and show you what can be done to save money. You should check in with your utility companies.
No less important is to show that your home is not only efficient, but well utilized. Don’t assume that they extra space in the attic or unused bedrooms are a benefit automatically. Between the limited financial resources and smaller households, more space just feels like a burden to some. You can help the sale be ensuring every room has a specific function so the buyer sees the options and versatility of the home.
Over the past thirty years houses have progressively gotten bigger and bigger. Now it seems we’ve reached a peak where more house just means more costs without benefit. According to the National Association of Home Builders study, the recession has pushed the utility trend for greener homes. I guess that is the silver lining of our economic dark cloud.
Do you know of saving money doing something environmentally friendly to your home?
Google+What’s in? Efficient, green, and useful.
What’s out? Big, fancy, and….well, frivolous. (I think they called in luxury in 2005).
No one wants to heat unused rooms, drafty windows, and poorly structured homes anymore. The economic downturn has made it difficult, and the trend of environmental consciousness has made it very uncool.
A few years ago, a new house would be revered for it’s open spaces, the media room, three full baths and extra bedrooms. A well-appointed living room was the center of every beautiful home and a three car garage the epitome of the good life.
But the economic and demographic trends make these homes outdated and hard to upkeep. Tight budgets have buyers on the lookout for energy efficient homes with useful rooms, the environmental trend is for sustainable production and little waste, and the demographics show that many homes are for only one or two individuals.
A new study released by the National Association of Home Builders points to what these trends mean for houses over time. “The New Home in 2015″ suggest home will be built 10% smaller. Expect “low-e” windows, engineered wood beams, joists, and trusses, water efficient features and whole-home Energy Star ratings.
As a seller, the trends of new homes is important to you because they tell you what buyers really want. Make some changes in your home to match these needs:
1. Increasing the efficiency of your home with new widows, better isolation, an efficient heating system, etc. Show the proof with your new energy bills.
2. Make the living room a useful space, and any other room that is not lived-in. For example, a rarely used bedroom can be staged as a den, study or library.
As a buyer, you know what you need but you also must consider resale value in the years ahead. If you plan to live in the home for less than 5 years, this is especially important:
1. Look for energy efficient homes
2. Don’t judge a home by it’s size, but by it’s utility and use.
3. Always choose a home you find beautiful and pleasant. You can make changes to it later.
Don’t forget that housing trends have a long cycle, so a new trend today won’t change so fast.
Have you make your house greener in any way? Comment below.
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It is hard to believe but, yes, there is something quiet wonderful happening as a result of this depressing economy.
Our tight budgets are forcing builders to rethink the size and functionality of new homes, and buyers are being forced to rethink their needs.
Six years ago, when you were out there looking at many houses, comparing them, you would have probably appreciated the extra office space upstairs, perhaps the third full bath and the extra large open living room. Common real estate boasts would be, “Open floor plan, large living room for entertaining, three full baths….”
But today, with less money, efficiency trumps vastness. Your guests no longer think, “Oh, I am so jealous of your jacuzzi for four,” but instead start calculating the cost of filling the useless tub, and heating the extra space. Maybe they’ll even be offended by the disregard for the environment when you have lights and heat for an oversized and underused home.
Priorities are changing, not only in our needs as home buyers, but how we view and think of various features. What used to be luxury, now seems frivolous.
Today we find that builders are taking all of this into consideration. On average, you can expect new homes to be 10% smaller and much greener by 2015.
Think smaller - smaller home, smaller energy bills, smaller neighborhood. The National Association of Home Builders new study called, “The New Home in 2015,” alludes to the economic downturn for ratcheting up a “less is more” movement that includes everything from homes designed with fewer frivolities to small “pocket neighborhoods” with small homes.
If you are a home buyer, consider your needs and also the resale value in the long run. Look for a more efficient home, and worry less about the size of it. It is likely that less rooms will be appreciated. For example, a living room takes up a lot of space but is barely used. Why buy a home centered around a useless room?
As a seller, have your home set-up to be the most efficient it can be to reduce your energy bills. Furthermore, show that all rooms are in use and that your space is useful and liveable.
If we take some mercy on the environment in the meantime, then we are on to something big.
Google+You’ve been trying to sell your home for months…Keeping it clean and organized, staging it, maintaining your landscaping, fixing every little thing…Your constantly hear about the terrible housing market conditions….Your agent rarely has an interesting update and you feel like a sitting duck.
It’s not fun lingering on the market. It’s hard to make long term decisions if your move depends on your ability to sell the house. And if you are moving no matter what, then it is a lot of stress of the unknown.
So how exciting it is when your real estate agent calls with the news, “We’ve got an offer!”
Woohoo, break out the champagne and start sighing with relief and……it’s a lowball offer with terrible conditions.
Now what?
Regardless of the market conditions, it is vital that you make your needs and expectations as a home seller heard. Just because it’s a buyer’s market doesn’t mean you don’t exist! In fact, sellers have a lot of control regardless of the market and it is important you know what to do when an offer comes in.
Make your voice heard by the way you choose to negotiate the terms and conditions of the offer, and learn to say, “No.” In my experience, sellers have two different reactions to offers depending on the market. In a seller’s market, they are too brash with their “no’s” and in a buyer’s market they are too shy with their “no’s.”
Now that the market is not tipped in the sellers’ favor, it is important to learn to not be shy, just as it is important to heed some advice. Break down the offer to it’s parts and find some good and bad aspects.
The price is the most important part of any offer. If it is unacceptable, that is fine. Be comfortable saying so, and don’t be afraid of the buyer’s or the agent’s reaction. You are likely to be encouraged to give a counter offer, which is most often a good decision. Regardless of the market, you are not obligated to take an offer with which you are unsatisfied.
Other than price, there is the closing date, which must fit into your life. If the offer price is great, you are encouraged to make arrangements and be more flexible, but incurring unnecessary costs to make an offer work can prove wasteful. The home sale is about changes you decided to make in your life, and it is up to you to protect your interests.
The last important part of the offer to consider is the quality of the buyer. Is there a pre-approval letter? Are they paying cash? What are the chances this buyer will actually come to the closing table? If the buyer is unreliable and not presenting a pre-approval if they seek a mortgage, it is perfectly acceptable to say no. You can end up very worrried the sale will go through and frustrated when it falls apart. Avoid this by seeking buyer qualifications, in any market.
After your long wait, don’t allow the relief of having an offer overshadow the needs and wants for you and your family. Make your voice heard so you’ll be satisfied after the closing.
Are you frustrated with your home sale?
Google+Being the largest (or one of the largest) investment you’ll make, buying a home comes with a lot of pressure. There are many elements to getting this decision right making the whole things seem overwhelming and confusing.
By breaking down choosing a home to the main variables and priorities, you can make it a little simpler and get some of the distracting voices out of your head.
Here is a review of the main characteristics you want to consider when you buy a home. Use these points to make your list of choices narrower and spend less time searching and looking and homes that won’t make you happy.
1. Location, location, location. The one things you will never be able to chance about your home is it’s location. There is not one thing more important than deciding where you want to live. In choosing the location of your home, think of both the practical elements and the more fun elements. For example, when considering a location’s practicality, think about commute, schools, home much home you can afford in this area for your money. The fun aspect is no less important so think of your proximity to places you love to go, whether it’s the park with your kids or the restaurants with your friends.
One way I suggest you think of a location is the “drive home” test. If you like your drive home from work, it’s a good place. If you hate your drive home, well, start rethinking your strategy in picking where you want to live.
2. Size does matter. The average size of homes in the united states have increased by 33% over the past thirty years. Yet the number of people living in a home has shrunk on average. What best suits your needs? How many rooms and how much storage? When thinking about the size of your home, consider the future function of this home - is this a condo you’ll live in for a couple of years or will you raise a family? But you may want to consider something that is often overlooked….getting rid of some stuff!
We hate to admit how much stuff we have, but is your stuff worth the price of a bigger home the mortgage interest on that home. Maybe you need 3 rather than 4 bedrooms? Just a thought….
3. Floor plan. There are many things you’ll be able to change in a home, but some elements of a floor plan will not move so know what they are. If you are big on entertaining, go for more open spaces. For physical challengers, consider a one-floor home (like a ranch). Claustrophobes opt for open floor plans, agoraphobes look for small cozy rooms and nooks.
4. Finishing Touches. Learn the differences between the level of finishes, because sometimes some cheap stuff looks really good. There is nothing wrong with less expensive finishes but you shouldn’t pay a premium for them. If you want something very swanky, I suggest you either look for something that was just redone, or better yet, get something requiring an upgrade which you’ll do yourself. The downside of buying a home you’ll remodel is the time and money it requires. The benefit is that it will be the way your want it.
5. Land. A backyard is nice, but it requires work. A garden is very nice, but it requires more work. Think about this before you commit yourself to that gorgeous rolling three acre lot. Many people love working in their yard, make sure you are one of them. But land is not only important to a house, but also a condo. You should know if the land around the building is shared and how it is maintained. You may be able to find a condo with outdoor space in which you can garden, if that is something you like to do.
Prioritize your list of wants for each element, and know what you want and need so you don’t wast time. Instead, focus and find your dream home.
Google+Between the slow economy and the overdue trend of greener living, priorities buyers when looking for a home are changing.
This is important information for you whether you are buying or selling. As a buyer, you need to consider both your needs, both current and future. But you also need to keep in mind the resale value of them home. If trends in home buying are changing, staying in line with those trends is important to maintaining your home’s desirability.
As a seller, being aware of what buyers want is key to getting the best price for your home. When your home is perceived as current, livable and answering the needs of many different buyers, your home’s value rises.
A recent report called “The New Home in 2015″ by the National Association of Home Builders (NAHB) indicates a trend towards more efficient home, which are smaller and greener. This is due, it seems, to the economic downturn which has tightened budgets and make efficiency and utility high priorities.
Here are some chances you can expect in homes in the coming years:
-Expect homes to be smaller. “The New Home in 2015″ report reveals that building professionals are moving towards smaller houses, and that new single-family homes would average 2,152 square feet, a 10% smaller home than built in 2010.
-Living rooms are out. Since few people use their formal living rooms, and manage most of their lives in family rooms, builders see little value in maintaining it. Why heat or cool and unused room? Instead expect separate parlor or study areas, or bigger family rooms.
-Fewer rooms. The fourth bedroom and third bathrooms are also often unused. The three car garage has proven too big for people’s budgets and there is little interest in frivolity these days.
-Greener homes. Look for whole home Energy Star ratings. Better use of materials and lower energy costs are a goal in new homes.
What does this all mean for you?
If you are a buyer, you want to look for some of these features in a home. Chances are it will compete better with the new houses and the trends in 2015 and beyond.
As a seller, you can make changes to your home that incorporate some of the values of the new home building trends. First, ensure that your home is making the best use of energy. This will be a big selling point. Next, populate your rooms and make them livable. Stage your house if necessary to show how rooms can be used. This way, a buyer won’t think about the energy an empty room will consume but the enjoyment that it will provide.
Even if you are not moving in the near future, find a way to make your home a big greener. This will save some money and make you even prouder of your home.
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William Raveis Blog
Realtor in Brookline MA, providing customized exceptional real estate service in Brookline MA, West Roxbury MA, Brighton MA, and West Roxbury MA. Working in the Boston real estate industry since 2002, Ruth Lerner has been consistently a top producing agent at William Raveis Real Estate, and she also writes for the Raveis Blog. [Read More …]
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