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.

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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.

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Condo or Single Family?

June 17, 2012 By Leave a Comment

Buyers sometimes shun the idea of a condo when they can find a single family in their price range. I can understand that. There are so many advantages to a single family! Privacy, control over the house, your own yard and driveway, etc.

Boston real estate prices are comparatively high. Thus I suggest, for those buyers who are searching in the lower end of the single family housing market, to also look at similarly priced condos.

Here are two West Roxbury homes for sale. Both are great option for anyone looking for a home priced in the $400,000′s. First, it’s the two level condo at 75 Russett Road and the second is a ranch at 8 Cricket Lane. Both are superb locations, have two full baths, and both homes are easy to love. The condo, priced 439K needs no work and has extensive well maintained beautiful wood details. The house, priced 449K is a single level and will need a facelift, especially kitchen and bath.

It’s your choice.

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Filed Under: Review of Local Listings Tagged With: , , , , , , , , ,

How Landlords Save the World

January 18, 2012 By Leave a Comment

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

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Three Ways to Invest in Real Estate

January 11, 2012 By Leave a Comment

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!

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Top Three Reasons Why Property Investment Is King

January 4, 2012 By Leave a Comment

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.

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Top Reasons Why Your Home is Still On Market

July 28, 2011 By Leave a Comment

by Ruth Malkin-Lerner

Are you still on market while other homes have sold? If it has been more than one season since you have put the home on the market, you may be showcasing the wrong features and missing out on really important ones.

Here are some top reasons your home is not inspiring summertime buyers.

First reason buyers are bored is bad landscaping. Has it been a while since you trimmed your shrubs and trees? In the summer months, buyers are looking at the land around the home as much as at the house itself. Overgrown shrubs, bushes and trees make the yard look messy and uninviting. It screams work.

Furthermore, summer is when we are accustomed to seeing color outdoors. It is not all about the grass, which is also important. Make sure your landscaping includes some flowers and seasonally appropriate plantings. Sure, you may have to do some maintenance, or hire someone if this is not something you enjoy.

But without some color and a good manicure, your home will look dull. Gardens bring in buyers, and keep them there longer. A great yard can cancel out some indoor negatives.

Here’s another idea - if you like gardening, add some value to your home with a small organic vegetable garden. The young buyers love it!

Second reason buyers may be turned off is poorly staged outdoor space. If you’ve been cheap about getting some good patio furniture, now is the time to do it. If you have any patio or deck space, ensure it is furnished to showcase the utility.

Your outdoor space should feel like an extension of the home, and a buyer should be able to see him or herself enjoying it, as they would a living room and bedroom.

A third reason buyers are not hanging out long enough in your home to make an offer is that there is no AC. If you have it, turn it on. If you don’t, get some window units for key areas of the house, or leave the windows open with a very discreet fan.

The worse comes out of a home when it is hot. The furniture feels overbearing, a dark room is depressing, a bad smell you may have overlooked becomes fowl.

Update your home for the season and show it as a summertime steal. Buyers will relate better to your home, spend more time in it. Bring the best summertime features out of your home and showcase it for it’s current usability.

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I’m Thinking “Beach,” House is Saying “Snow”

July 22, 2011 By Leave a Comment

It may be a drag to be on the market forever, to the point that you are either totally stressed out by the housing situation or that you completely forgot that you are trying to sell in the first place.

Well, either way, do me a huge favor. Get those photos update on MLS!

I was on MLS the other day looking for some beach-front properties in the north shore of Easter Massachusetts. There were pictures of houses on there with snow on them! It’s July! I’m thinking beach, house is saying snow…

If your agent hasn’t thought of this, call him or her right now.

There are a couple reasons why I find these outdated photos both annoying and irresponsible marketing.

First, what many of us forget is that buying a home is both an economic and emotional decision. A house must feel like home, a home that you want to come into. When you are thinking of the beach, and looking for shade to cool off, you can barely remember what it was like four months ago in the cold. It’s difficult to imagine it ever getting that cold again.

Looking at a snow-capped house seems something unrelated to a buyer’s current situation and state of mind. It says, “look how pretty I was in the winter,” instead of, “here’s the wonderful outdoor space you want to enjoy right now.”

Next, it is irrepressible marketing to have out-of-season pictures on multiple listings and in brochures as it sends two clear messages: “I’ve been on the market since the ice-age,” and “I’m not paying attention to this home’s sale.”

So if your house has been on market for months, and you are wondering why no one has come to see it since May, you may want to consider the pictures out there.

Don’t underestimate the power of photos, either. Remember, it is the first thing a potential buyers will look at that calls their attention to either put on the “yes” or “no” list for weekend showings. They’d rather put it on the “no” list, so don’t make it easier for them with an unseasonably ugly photo.

By Ruth Malkin-Lerner

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

Summertime Selling Tips

July 14, 2011 By Leave a Comment

Summertime can be a great season to sell your house. Why? During these hot months, your landscaping and outdoor spaces come alive. Today’s buyers are looking for extended living areas and love usable outdoor space.

According to HGTV, outdoor spaces can bring in big bucks. Jon Seppala, president of Action Builders, notes, “Backyards and outdoor patios have to be much more substantial than in the past. Built-in grills, outdoor fireplaces, gazebos — people are looking for these features. We’ve had people who have fallen in love with the house and have decided to buy before they walked in the front door.”

The National Association of Home Builders (NAHB) has also identified a trend, noting during a recent panel that young homebuyers (Gen Xers) are looking for homes with a connection between indoor and outdoor spaces, even in colder climates, to create the perception of greater home size, even if the space is only usable for part of the year.”

Here are some tips to take advantage of Summer selling.

First, keep your home cool. Have your AC turned up to a comfortable level during showings and open houses. If you live in a region where you don’t have or need AC, be sure that you use fans or open windows for breezes to create a nice atmosphere. The last thing you need is a prospective buyer distracted by sweat or humidity. You want them focused on your wonderful home!

Heat also has a way of bringing out the worst of smells in our home. To hold these deal breakers at bay, have your carpets cleaned when you list your home for sale. Next, roll up your sleeves and be sure you clean your home before any showing. Bathrooms, laundry rooms, and kitchen are notoriously stinky. Focus your attention on these!

When your home is listed for sale, it’s your responsibility as the seller to keep your yard, landscaping, and pool maintained. Overgrown trees, shrubs, and lawns not only seriously depreciate curb appeal, they can also turn a buyer off.

If you are unable to stay on top of this task each week, hire local workers to keep your yard looking in top shape. This expense will come back to you when you make the sale.

Landscaping is expensive and buyers know this. Why not showcase one of your most valuable assets? Trim existing trees to their best advantage. Have gardens, paths, benches, and pool ready for enjoying. Buyers know that a fully landscaped yard will save them time and money. Plus, it’s ready to enjoy.

As a courtesy to prospective buyers, you may also consider compiling a list of locally recommended handy men, gardeners, and pool maintenance companies.

Finally, staging patios and porches is important. From family gatherings to al fresco meals, these hot spots get lots of use.

Start your staging with a thorough cleaning. Powerwashing decks, patios, and furniture can make dirty items look new again. For furniture that needs a bit more TLC, apply a fresh coat of paint. Next, stage for an “event.” Replace wornout cushions and invest in simple outdoor accessories. A selective arrangement of candles, glasses, and even a nice table setting can be the icing on the staging cake.

The bottom line is that caring for the outdoor living spaces of your home can make or break a sale during the Summer. Take full advantage of all your home has to offer.

Written by Carla Hill

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Top Five Reasons to Own a Home

July 5, 2011 By Leave a Comment

A soft real estate market that is ripe with all the conditions that should entice people to purchase a home still has some renters asking, “Why own my own home?”

Low interest rates, lower home prices and an improving job market still have some buyers sitting on the fence fearful of an uncertain real estate market. Real estate agents and even sellers are finding that prospective buyers (current renters) may need a little more “emotional” attention in these market conditions. They may need a little more explanation to ensure that they understand the benefits of purchasing your home rather than renting another.

While deciding to own a home or rent one is very personal, many tend to let fear of the unknown be the driving force in making their decision and that can later create an unhappy decision.

Here are five top reasons to at least consider owning your own home.

1. No more landlords: This may be a highly influential factor depending on a potential buyer’s experiences. Many renters have poured a ton of money into a home that they’re living in to keep it at the standard of living they enjoy, only to find that their landlord is soon planning to sell the home. Their hard-earned cash and money invested into their rented home will then only benefit the seller.

2. Making a home your style: This is much more difficult to do in a rental. Yes, as I just mentioned, you can make some modifications, but many things that can be done to a home you own can’t be done to one you’re renting. Taking into consideration Homeowner’s Associations or planned community development restrictions, owning still provides more control and flexibility over renting.

3. Weighing the costs of homeownership: Of course, with homeownership you won’t be calling the landlord to come fix your toilet or dishwasher. So, having a financial reserve is important to carry you through the months when you run into unexpected troubles. Websites such as GinnieMae.gov offer price charts that help you compare how much you’ll save by buying or renting. It’s a helpful tool that allows you to analyze factors such as how much tax savings you’re likely to receive, how much possibly equity you’ll gain, and how much your rent may increase.

4. Long-term plans tilt the scale toward owning: In a recent Tampa Bay article, Walter Molony of the National Association of Realtors said, “For people with long-term plans, the rent vs. buy equation is tilting heavily toward buying because housing affordability is at record highs dating back to 1970,” he explains. “Homes are undervalued in many areas—selling for less than the cost of replacement construction—and rents are rising at a faster pace. Many people are considering ownership now as a hedge against inflation.”

5. Low interest rates and affordable homes will not last forever: If you’re not ready to buy or simply can’t afford to own a home, even the historically low interest rates and exceedingly affordable home prices might not move you to take the leap into homeownership. However, understanding that these conditions won’t last forever is important. Sometimes when conditions persist, we tend to think they’ll always be this way.

Distressed sales will begin falling in 2013 and that would then cause home prices to creep upward, predicts Moody’s Analytics. With little activity on the homebuilding front, and still a heavy supply, it’s not expected to increase much more. Also, the number of new households each year is rising, which is expected to help alleviate the oversupply in the coming years.

Written by Phoebe Chongchua

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