Newton Houses in High Demand, But Are You Positioning Your Home Correctly?

November 8, 2012 By Leave a Comment

Newton real estate is in high demand and in analyzing the market for Newton houses; you find almost across the board, the market is favoring sellers. Inventory of houses on market in Newton is just meeting demand or falling shy of it in some price ranges.

The price range with most pressure is the $800,000-$899,999 price range in Newton, with only one month of inventory. Houses in this price range are sitting the least time on the market at only 51 days.

Alternatively, luxury Newton homes priced $3,000,000-$3,999,999 have 16 months of supply. This means the sellers can expect their house to sell in 16 months, even if their home is the best of the lot.

What does this mean to you if you are selling your house in Newton?

First, you can use this information to set expectations on roughly how long it will take to sell your home. The months of supply tell you if you have a lot or little competition in relation to the demand in recent months. Many people thing the average days on market is the best indication for how long it will take for a home to sell. But average days on market don’t always go hand in hand with months of supply.

Second, if you plan to price your home near the top or bottom of a price range, it may make sense to price higher or lower just a bit. For example, if you plan to price your Newton home just over $900,000, it may be worth to price your home at $899,999 where you’ll have less competition and more buyers.

No matter where your home is priced, and regardless of competition, there is a guaranteed way to a quicker and easier home sale. To beat the competition you must offer the best value in the price range. This doesn’t mean you should have the biggest, newest, prettiest house, but the one offering the most solutions for buyers for every dollar they spend.

Next, the house needs to be marketed correctly, online exposure being the single most important element of property marketing. Regardless of the low inventory and high demand, to attract a better buyer faster who’d pay top dollar for your home, your house must stand out in the crowd of 152 Newton houses.

A home priced correctly and marketed properly, should be the first one sold in the price range, within the period of months of supply. Newton houses may be a hot commodity in most price ranges, but there are still houses lingering on market for months without an offer. Don’t be the home seller of such a house.

Search Newton Houses

Filed Under: Selling a Home Tagged With: , , , , , , , , ,

Common Mistakes in Pricing Your Home in Rising Market

September 10, 2012 By Leave a Comment

 

In a real estate market with rising prices, pricing your home can be a bit tricky. I meet some home sellers who think it is easier to price a home in a rising market, but that’s not necessarily true. The risk of mispricing is always the same, and leaving thousands of dollars on the table is at stake.

Prices are just starting to inch up around the country, but as usual, Boston real estate is a bit ahead in this regard. Many of Boston’s neighborhoods and immediate suburbs are enjoying visibly higher home prices for some months. And the vibrant market has encouraged many who’ve been waiting to sell.

So how much is your home worth now? In pricing your home, ensure you receive top dollar by avoiding the following common mistakes.

Looking at sold home prices online. Sold home prices are a great place to start your research on your home’s value, but there are some issues. Although the information is public and generally accurate, it can be misleading when using the mapping features of Zillow or Trulia. A house nearby of similar size could have sold for a vastly different price than what your home is worth. Unless you know a house well, it is dangerous to compare it to yours.

Furthermore, don’t confuse recent sold home prices with the “Zestimates” on Zillow. Those are generally useless in Newton and Brookline, and many parts of Boston. I’ve written about my reservations about Zillow as a data source before in my article, “No More Zestimates for Newton and Brookline.”

Pricing too high. You may think pricing a bit high in a rising market is not a big deal, but remember, we are just coming off a pretty ugly real estate slump. Market is just starting to perk-up, buyers still hold some cards. First-time home buyers are moving the market, and they are buying on a tight budget. There is less negotiation, so do not assume that if you price high, you’re leaving “room to negotiate.” Instead, you’re leaving room to sit on market and wait for an inevitable price reduction.

Pricing too low. Some real estate agents will tell you there is no danger in under pricing a home because there will be multiple offers, and you’ll get the full value of the home as buyers bid up the price. Bologna. Agents say this because a cheaper house is easier to sell. There is a strategy involved in multiple-offer situations, and it involves some thought.

Generating a multiple offer situation is never a guarantee, and can be risky when you are depending on the multiple offers to bring you the full value of the home. Here’s a post I wrote about the dangers of under pricing. A neighbor of one of my properties under-priced for a quick sale, and after the bidding war, the condo sold for about 10K short of top dollar.

Asking the wrong agent. Real estate is not neurology, but it does require expertise. This expertise is labor intensive, including looking at homes, meeting with buyers, writing offers, learning the market, reading the news, etc. Ask the wrong agent, and you’ll get the wrong answer. Speak with local agents who seem to know what they are talking about, preferably more than one if you have reservations. A competent agent will be able to give you a price or a price range, with some precision and confidence, and back it up with recent sales and inside knowledge.

Input from a professional will always be the best place for you to price your home. Make sure you don’t get caught up in the mistakes outlined, and you’ll sell your home for top dollar in no time.

If you are curious about how much your home is worth, click here.

 

Filed Under: Selling a Home Tagged With: , , , , , , , , ,

Boston Next Real Estate Bubble? More Fluff from the Globe

July 16, 2012 By Leave a Comment

Last week the Boston Globe’s real estate blog called Boston Real Estate Now published a post called, “The Next Housing Bubble?” This small piece is jam-packed full of nonsense, misleading information and irresponsible journalism.

The first problem with this post is the title, “The Next Housing Bubble?” Bubbles are a conclusion made in hindsight, and make no sense in predictions as we crawl our way out of a slump. This whole post was based on JP Morgan’s prediction of a 12% jump in home prices over the next four years as reported in Housing Wire. A 12% increase in home prices over four years hardly makes for a bubble. So why call it that?

Next, the article continues to claim the Boston area as a “one of the most bubble prone metro markets in the country.” Although I agree with the assertion of lack of inventory and new construction, lack of housing is not what creates real estate bubbles. Shortages and scarcity lead to organic price increases, not bubbles. Bubbles are full of air – not continuous real demand!

Of course the demand for housing has its ebbs and flows. Prices went down in Boston but most of our neighborhoods did not suffer the economic blow of Cities where housing and new construction is abundant, like Miami and Phoenix. Those cities had new construction condo buildings with less than 30% occupancy and price falling 50-60%.

Another quote that is the mark of irresponsible journalism, “Of course, a 12 percent jump nationally translates into a 20 percent jump in Greater Boston.” If this is true, please provide historical evidence of Boston’s real estate outpacing national real estate markets. It didn’t outpace the last “bubble” (if you believe we had one).

My next bone to pick is with the value of data the Globe uses. The Globe’s purpose, I thought, is to inform the local readers. There is no way national real estate headlines inform the local buyer or seller or provides a basis for decision making. Furthermore, the Globe’s stretching this national prediction to apply to Boston’s market adds to confusion and nonsense.

National real estate numbers, regardless of integrity of source, are totally and completely meaningless to you, dear friend. Real estate only matters on the local levels – your street, your neighborhood, maybe your town. If you want to learn about your local Boston area market, Boston Real Estate Now is proving to be an unreliable source.

Lastly, the author discounts the only piece of valuable information. “The bank (JP Morgan) predicts 2.5 million problem loans will get bailed out this year through foreclosure rescue programs - sounds like wishful Wall Street thinking to me.”

The big bank is in a pretty good position to report accurately if they believe it is likely they are to have a deal coming together with the government. This is the only interesting information I find in the report. The Globe calling it wishful thinking shows a lack of thoughtfulness going into the post.

Do you like keeping up with your local real estate market? I’ve got the perfect thing for you! Learn about my Local Housing Data Newsletter. It’s reliable, timely, and free. Now you can be the expert…click here.

Filed Under: Real Estate News Tagged With: , , , , , , , ,

Newton Houses Take A Dive…Time on Market Dropping Fast!

July 6, 2012 By Leave a Comment

Market time for sold houses in Newton is dropping fast. In May 2012 the average days on market for a single-family house in Newton was 64 days, less than half from the recent peak in January 2011 of 155 days.

May of 2012 has many similarities to the peak of the housing market boom in May 2005. Time on market was almost the same, just over two months. Average sale price is in the mid $900,000′s, and the number of sales is around 50.

But similar numbers are not necessarily results of similar conditions. Buyers are less exuberant and more cautious, and sellers are still waiting for better market prices.

The buyers who are moving are the ones who must. Buyers who have less pressing needs are taking their time. In 2005, my sense was of greater urgency, a fear of missing a home, of pricing rising too fast, or mortgage rates going up.

Some agents say conditions are the same, I disagree. Multiple offers and shortage of homes make it seem so. But don’t forget we’re in a different economy. Today, many potential sellers are unable to sell due to loss of equity. Mortgage regulations leave sub-prime buyers out, and you need more than a pulse to qualify for a loan.

If you believe conditions are as they were during the boom then brace yourself because we all know what happened next. Instead, this is just the start of a new cycle and more needs to change to return the confidence of seven years ago.

Sign-up for my Local Housing Data newsletter - the best way to keep up with your local real estate community of interest!

Filed Under: Newton Houses Updates Tagged With: , , , , ,

Your Online Resources for Brookline and Newton Real Estate

May 11, 2012 By Leave a Comment

To this day I get phone calls on a couple of listings I had five or six years ago in Brighton. This is not intentional bait-and-switch marketing, it usually catches me off guard. On these calls I ask where they learned about the listing. The answer is one of two websites, which I won’t mention.

There are several sites promising listing information, but they are useless. Worse than useless, they’ll suck-up your time. In your Newton, Brookline or Brighton property search, use the following resources.

1. Realtor.com. The Realtor website is a premier stop for everything real estate. It is linked to the Multiple Listing Services so information is current. Once you put in your search criteria, make sure you scroll down past the ads of “featured properties.” They are not part of your search results. The drawback is it’s not local enough so if you want to find some area information and articles, this is not the place.

2. Boston.com. For open house information, and all local real estate information, Boston.com has proven itself. It is one of the most used local real estate sites in the United States. You’ll see the photos and have some community information, videos, maps, etc. Again, scroll down past the ads. Nothing against the ads, but they are not part of your search results.

3. Your agent’s Multiple Listing Service (MLS). This is the best. You’ll receive your updates by email daily, what’s new to market and price reductions. You can log on and have access to all the same information I have, delete the listings you don’t like, write comments, ask questions and request showings. On your agent’s MLS you will see the pictures and also have access to a tour, video, and related documents such as a floor plan.

If you are serious about your search, daily email is critical. You’ll learn about price reductions (my favorite piece of information). You’ll learn about a property now in your price range when it was not previously.

What about the homes that don’t make it into MLS? This is a tiny percent of the market. Most for sale by owners in Brookline and Newton are on the MLS. If you’ve hired a buyer’s agent, he or she should be checking Craig’s list regularly as well.

Even if you are just casually looking at real estate, or starting a serious search, please please please use good sources of information so you are not wasting your time. Listing information is easy to obtain and it is free. Ensure it is from an accurate and reputable source.

Filed Under: Buying a Home Tagged With: , , , , , , , , ,

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.

Filed Under: Buying and Selling a Home Tagged With: , , , , , , , , ,

Finding Your Newton or Brookline House: A Guide for Frustrated Buyers

May 4, 2012 By Leave a Comment

I overheard someone talking about the long and disappointing process of looking for a home in Brookline the past year. “There is nothing in our price range.” I hear this often, especially about Brookline and Newton houses. So I want to give all the frustrated buyers a few words of advice from experience. Here are three questions to ask yourself and ponder.

1. Am I looking in my price range?
Sometimes I find buyers, especially those looking in a seven figure price point, looking at homes with the dream criteria list, but not the right price range. These buyers go see Brookline homes that have a specific number of bedrooms, square footage, certain style, etc. But the houses are totally out of the price range.

Instead, only look at home you can afford, plus 5-10%. (See my previous post about looking at homes above your price range). Are you sure they won’t do? Don’t rely on the pictures on the computer only, go look at some of the homes. Perhaps with some imagination and a little investment down the line it will be the dream home you can’t afford now.

2. Am I giving up easily?
Buyers going from house to house they can’t afford tend to give up. Looking for a home is a long process so why spend all these hours on something you don’t think will come together?

Hang in there! In fact, I suggest that buyers who are outbid regularly to keep at it. Yours will be a longer and more intense search, but with the dedication and persistence, you can find the right home. Sometimes a home that sits for many months on the market will sell for less than it would otherwise, or a poorly marketed for-sale-by-owner will sell for too little (FSBO’s have many disadvantages in the market ).

Luck, it is said, is preparedness and openness for opportunities. If you quit your search, you will not be positioned for much real estate luck.

3. Am I working with the right agent?
You can find the right agent who’ll be dedicated to your long home searching journey. Don’t commit to anyone until you find someone who is impatient or pushy.

One of the very first things an agent does with a buyer is set expectations. Sadly, though, most agents think this means to set YOUR expectations of what you’ll not get for your money in TODAY’s market. There is more to it.

If an agent says your expectations are unrealistic, walk away and hire someone else. Seriously. No agent knows when and how things will change. There are various opportunities, situations, and if you are serious about moving, you will find the right home.

If you are committed to finding a new home, and you know your needs are as such that you MUST move, then please give yourself plenty of time to search for a home. Find an agent to be your partner, and make the decision that this will take a while. As my Grandmother used to say, “With a bit of patience and some creativity, anything is possible.”

Filed Under: Buying a Home Tagged With: , , , , , , , ,

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!!!

Filed Under: Buying and Selling a Home Tagged With: , , , , , , , , ,