Are you a first time buyer and need more information from an unbiased source? Good news! Here's that source: The Franklin County Housing Authority, located in Greenfield, provides workshops for first time buyers. Just look them up online or call me. I'd be happy to help you find the next class.
Tip: FHA has loans for highly-qualified low to moderate first time buyers that go as high at $318,000. If you look up FHA loans online you can see the specific requirements. Or if you'd rather, call your own bank or credit union for more information on loans.
Personally, I'd call Dave Loeffler, First Horizon Home Loans, Peachtree City, GA. Locally, I'd call Greenfield Bank in Amherst first. Right now their 30-year fixed loans are 6.1 something percent for zero points. A point is about 1% per thousand borrowed. Remember: in today's market, the seller will often pay points and even closing costs, even if you offer 10% under the original home price. So with two points (listed in the offer for the seller to pay), you might be able to get that above loan at 5.7%!
Saturday, May 31, 2008
Friday, May 30, 2008
"As Is"
Bank-owned properties don't like to advertise that they own a property. They feel that if the public knows the property is bank-owned that knowledge will stigmatize the property. So how does a potential buyer know a property is bank-owned? "As is" is the give-away. If a property is advertised as "as is" you can be pretty sure it is owned by a bank. Other indicators are pre-approval letter, no price-reduction no matter what the inspection says, requirements to sign a long offer form that basically gives the bank all the rights and you, the potential buyer, no rights. And all of the above is required with the offer.
So why would you make an offer on such a property? Because the price is so far below the usual market price for the area you can't resist! Why won't you be able to resist? Because if you buy low and add sweat equity you'll have instant equity. Who doesn't want value?
How do I know the price is right? Call me to do a market analysis. I'll check MLS and see what surrounding properties are selling for, I'll visit the property (if allowed by the seller) and see what features the property has, what the property condition is. Then I'll check MLS for comparable properties (which I will also visit, if allowed and if I don't already know them). I'll use all that information to brief you on what the property is worth according to the market right now. If the price is right, you'll know. If it isn't, you'll know to ask me to show you other properties that might be a better deal.
But in the real world, a comparative market analysis is useless when applied to making an offer on a property, in most cases. Why is this? Because the seller determines the value of their home. If the home is bank-owned, then the bank has had a professional (like me) determine the home's value. The home is then listed for sale at that price. The bank will rarely accept any other price except full price. Only after a certain amount of time will the bank agree to allow the listing broker to lower the price of that home.
So why would you make an offer on such a property? Because the price is so far below the usual market price for the area you can't resist! Why won't you be able to resist? Because if you buy low and add sweat equity you'll have instant equity. Who doesn't want value?
How do I know the price is right? Call me to do a market analysis. I'll check MLS and see what surrounding properties are selling for, I'll visit the property (if allowed by the seller) and see what features the property has, what the property condition is. Then I'll check MLS for comparable properties (which I will also visit, if allowed and if I don't already know them). I'll use all that information to brief you on what the property is worth according to the market right now. If the price is right, you'll know. If it isn't, you'll know to ask me to show you other properties that might be a better deal.
But in the real world, a comparative market analysis is useless when applied to making an offer on a property, in most cases. Why is this? Because the seller determines the value of their home. If the home is bank-owned, then the bank has had a professional (like me) determine the home's value. The home is then listed for sale at that price. The bank will rarely accept any other price except full price. Only after a certain amount of time will the bank agree to allow the listing broker to lower the price of that home.
Thursday, May 29, 2008
Economic Drivers
What drives the economy in Massachusetts? Health care and education drive the economy in Massachusetts, according to today's Greenfield Recorder. What does the Pioneer Valley have times five? Education! Higher education to be precise, i.e., Holyoke College, Smith College, Hampshire College, Amherst College and University of Massachusetts at Amherst. According to the article, these factors tend to remain stable in an economic downturn. In other words, the Pioneer Valley and hilltowns are less impacted by the economic woes the rest of the country is experiencing. Other facts support this conclusion. For example, the housing market in our area is doing fine, and local unemployment statistics are better than the national average. Granted, gas prices are high, but not as high as other places. Why am I talking about this? Because real estate is local. I am a real estate consultant. My expertise is to know local real estate so my clients can make informed decisions regarding the most important asset they own (their home). Call me at 978-846-7398 if there is anything regarding real estate you'd like to know. I'm here to help!
Wednesday, May 28, 2008
Homes newly listed for sale
Amherst:
1. 135 Harlow Drive, $314,000, single family home
2. 162 Farview Way, $324. Single family home has partially finished basement
3. 321 East Pleasant Street, $499,900. Nice kitchen, hardwoods, back porch, bonus room off kitchen, there is dark paint on the walls in one room, home is located on a very busy street
4. 33 Dana Street, $549,000. The home enters onto a newly-painted front porch. There is a one car detached garage. There are mature trees in the front yard. The home is located on a nice resitential street and is a nice walk to downtown (maybe .5 mile?), but there are sidewalks all the way. This home has three floors, a back porch and the laundry room is in the kitchen. The three-season sunporch leads onto a nice back yard. When I was there today there was a friendly, large dog and someone was sleeping in one of the upstairs bedrooms.
5. 29 Webster Court, $179,900. Townhouse has detached carport, nice porch and back yard, brick exterior, sports two washers in the sort-of unfinished basement. Located near a great, full-service gym, in a very high-density neighborhood. Some of the best neighborhoods in Amherst are located nearby.
6. 264 Harkness Road, $585,000. I will be holding two open houses in this home. One is this Saturday from 1 to 3 pm. This huge property has three acres, large rooms and lots of them, a huge garden in the back yard. Smells moldy to me but maybe that's just because the air hasn't been on in the six months the property has been empty. The property is currently zoned non-profit as it was a garden school. The possibility of sub-division to two lots is high. There is a parking lot in the front, side yard. There is a three-car, attached, side-entry garage. There is wallpaper I'd remove in many rooms. The kitchen has old appliances and sports checkered red/gray linoleum. The laundry is off the kitchen, in the mudroom. I'd need to tear out the entire kitchen were I to buy this home. This home has lots of badly utilized space. There are possibilities for converting the property to a multi-family residence.
7. 12 White Pine Road, $749,006. Located in the best neighborhood on a hill on a low-trafficked residential street. I walk through an arched entryway after I note the side-entry garage and landscaped front yard. The tile entry below my feet as my eyes note the grand stairway, cherry and maple floors into the amazing kitchen. The dining area is just off the everything you could ask for kitchen. There are views, several stone fireplaces and lots to love. The one thing I disliked is there is not seperate room for dining, the closets aren't nearly large enough for my preference, and the owner has his business in the basement, so first time home tourers aren't allowed in the basement until the second visit to the home. The positives are that the kitchen and master bath are to-die-for! Light and bright throughout.
Hadley:
8. 9 Mill Valley Road, $875,000. New home just off MA-9, near the nursery and bison farm. Located between two other new homes, and has a long, unpaved driveway. Close to shopping, but not walking distance. Must be close to the bike path though I didn't see it. Loved the tile entry, the fireplace, the 5.5 baths and 4 bedrooms. The third floor is set up as a movie room. The entire home is wired for sound. There are balconies, chandeliers, a balcony overlooking the two-story family room and endless windows overlooking the backyard and has views. There is 15 acres and a grand staircase. If this is your price range, this is a beautiful home. Must want to live in-town to be willing to pay this price. Personally, I'd live where I didn't have such close neighbors if I had this much money to spend.
9. 3 Frallo Drive, $409,900. Located way off the beaten path, up MA-47, this home is in a nice, rural neighborhood. The driveway is unpaved, there is a two-car, side-entry garage. The home sits on one acre of land. There are public utilities (sewer and water), an unfinished basement, mahogany wood floors, nice silestone-type counters but the laundry is in the kitchen. The kitchen cabinets are a light-colored wood. I love the claw-foot tub upstairs in the master bath. But where do the kids bathe? There is no tub or shower in the other upstairs bath. There are no hand-rails leading down to the unfinished basement.
South Deerfield:
10. 55 Sawmill Plain Road, $399,000. Located a couple of miles west of I-91, near farms on nice street. This home is not well-lit, meaning there isn't nearly enough natural light for my preferences. The master closet and bath were very dark, especially the tub/shower area. The driveway is paved and there is a dark wood exterior and two-car garage. The basement is unfinished. I liked the family room, which has a fireplace and double doors leading to the small porch, which is framed on either side by large, blooming, lilac bushes/trees.
1. 135 Harlow Drive, $314,000, single family home
2. 162 Farview Way, $324. Single family home has partially finished basement
3. 321 East Pleasant Street, $499,900. Nice kitchen, hardwoods, back porch, bonus room off kitchen, there is dark paint on the walls in one room, home is located on a very busy street
4. 33 Dana Street, $549,000. The home enters onto a newly-painted front porch. There is a one car detached garage. There are mature trees in the front yard. The home is located on a nice resitential street and is a nice walk to downtown (maybe .5 mile?), but there are sidewalks all the way. This home has three floors, a back porch and the laundry room is in the kitchen. The three-season sunporch leads onto a nice back yard. When I was there today there was a friendly, large dog and someone was sleeping in one of the upstairs bedrooms.
5. 29 Webster Court, $179,900. Townhouse has detached carport, nice porch and back yard, brick exterior, sports two washers in the sort-of unfinished basement. Located near a great, full-service gym, in a very high-density neighborhood. Some of the best neighborhoods in Amherst are located nearby.
6. 264 Harkness Road, $585,000. I will be holding two open houses in this home. One is this Saturday from 1 to 3 pm. This huge property has three acres, large rooms and lots of them, a huge garden in the back yard. Smells moldy to me but maybe that's just because the air hasn't been on in the six months the property has been empty. The property is currently zoned non-profit as it was a garden school. The possibility of sub-division to two lots is high. There is a parking lot in the front, side yard. There is a three-car, attached, side-entry garage. There is wallpaper I'd remove in many rooms. The kitchen has old appliances and sports checkered red/gray linoleum. The laundry is off the kitchen, in the mudroom. I'd need to tear out the entire kitchen were I to buy this home. This home has lots of badly utilized space. There are possibilities for converting the property to a multi-family residence.
7. 12 White Pine Road, $749,006. Located in the best neighborhood on a hill on a low-trafficked residential street. I walk through an arched entryway after I note the side-entry garage and landscaped front yard. The tile entry below my feet as my eyes note the grand stairway, cherry and maple floors into the amazing kitchen. The dining area is just off the everything you could ask for kitchen. There are views, several stone fireplaces and lots to love. The one thing I disliked is there is not seperate room for dining, the closets aren't nearly large enough for my preference, and the owner has his business in the basement, so first time home tourers aren't allowed in the basement until the second visit to the home. The positives are that the kitchen and master bath are to-die-for! Light and bright throughout.
Hadley:
8. 9 Mill Valley Road, $875,000. New home just off MA-9, near the nursery and bison farm. Located between two other new homes, and has a long, unpaved driveway. Close to shopping, but not walking distance. Must be close to the bike path though I didn't see it. Loved the tile entry, the fireplace, the 5.5 baths and 4 bedrooms. The third floor is set up as a movie room. The entire home is wired for sound. There are balconies, chandeliers, a balcony overlooking the two-story family room and endless windows overlooking the backyard and has views. There is 15 acres and a grand staircase. If this is your price range, this is a beautiful home. Must want to live in-town to be willing to pay this price. Personally, I'd live where I didn't have such close neighbors if I had this much money to spend.
9. 3 Frallo Drive, $409,900. Located way off the beaten path, up MA-47, this home is in a nice, rural neighborhood. The driveway is unpaved, there is a two-car, side-entry garage. The home sits on one acre of land. There are public utilities (sewer and water), an unfinished basement, mahogany wood floors, nice silestone-type counters but the laundry is in the kitchen. The kitchen cabinets are a light-colored wood. I love the claw-foot tub upstairs in the master bath. But where do the kids bathe? There is no tub or shower in the other upstairs bath. There are no hand-rails leading down to the unfinished basement.
South Deerfield:
10. 55 Sawmill Plain Road, $399,000. Located a couple of miles west of I-91, near farms on nice street. This home is not well-lit, meaning there isn't nearly enough natural light for my preferences. The master closet and bath were very dark, especially the tub/shower area. The driveway is paved and there is a dark wood exterior and two-car garage. The basement is unfinished. I liked the family room, which has a fireplace and double doors leading to the small porch, which is framed on either side by large, blooming, lilac bushes/trees.
Produce in Season
As I drive around the Pioneer Valley I see produce stands along MA-9 and MA-47 in Hadley. Both stands have asparagus for sale; one stand also has strawberries.
Tuesday, May 27, 2008
Tis the season
Right now is the height of the real estate market in the Pioneer Valley and hilltowns. So, if you are thinking about buying or selling your home, now is the time!
Open houses I'll be showing in the next few weeks:
1. 31 May, 1-3pm, 264 Harkness Rd, Amherst
2. 1 June, 1-3pm, 22 Ledgewood Dr, Belchertown
3. 7 June, 1-3pm, 264 Harkness Rd., Amherst
4. 8 June, 1-3pm, 9 Edgewood Terrace, Hadley
Hope to see you at one or all of them.
Oh, by the way, if you, of or someone you know, will soon be buying or selling real estate, please call 978-846-7398 if you want the whole experience to be as stressless as possible. My mission is to provide as stressless as possible real estate.
Open houses I'll be showing in the next few weeks:
1. 31 May, 1-3pm, 264 Harkness Rd, Amherst
2. 1 June, 1-3pm, 22 Ledgewood Dr, Belchertown
3. 7 June, 1-3pm, 264 Harkness Rd., Amherst
4. 8 June, 1-3pm, 9 Edgewood Terrace, Hadley
Hope to see you at one or all of them.
Oh, by the way, if you, of or someone you know, will soon be buying or selling real estate, please call 978-846-7398 if you want the whole experience to be as stressless as possible. My mission is to provide as stressless as possible real estate.
Monday, May 26, 2008
Memorial Day
The sun is shining, the wind is breezy, time to get out the grill! There are a million state parks in the area, pick one and load up the family. My favorites are Mount Tom, Laurel Lake, Lake Wyola, and Quabbin Park.
Friday, May 23, 2008
Choices
Sometimes the flooring choices you make have a huge impact on your neighbors. So if you hate your downstairs neighbor, choose tile floors! Then you'll click click click away over their heads forever. And while you're loving every minute of your beautiful floor, be sure your neighbor is plotting your torturous, slow, painful demise! But seriously, if you live where there are others to consider, please do consider them in your decorating decision making. You'd appreciate it if if they did the same for you, I'm sure! This reminder is from my sister-in-law, who lives in the third floor of a water-front condo. Ya think the fourth floor condo owner above has tile floors?
Wednesday, May 21, 2008
Sociability
How social are you? The answer will help you determine the right neighborhood. Do you like to go clubbing? If so, maybe Northampton is for you. Do you prefer small town activities? If so, maybe Wendell, Orange or New Salem are for you. Knowing these things about yourself will go far in helping you find the neighborhood that feels right for you.
Personally, I love the 1794 Meeting house in New Salem and the Full Moon Coffee house in Wendell. Also in Wendell is the Deja Brew. They have live music on the weekend evenings. Also, on the last Monday of every Monday in the winter is the Spoken Word. They read poetry out loud to each other for two hours. Orange has the yearly River Rat race. I love that!
Personally, I love the 1794 Meeting house in New Salem and the Full Moon Coffee house in Wendell. Also in Wendell is the Deja Brew. They have live music on the weekend evenings. Also, on the last Monday of every Monday in the winter is the Spoken Word. They read poetry out loud to each other for two hours. Orange has the yearly River Rat race. I love that!
Tuesday, May 20, 2008
Condos
Think you'd like to live in a condominium? Here's the test: Dues/fees/assessments are counted against you when qualifying for a mortgage. In otherwords, if you qualify for a $80,000 loan on a $100,000 home you would not qualify for a condo. Why is that? Because the $100/month dues plus every 10 year assessment of $5000 would be counted as debt for qualification of a mortgage purposes. Also, the condo mortgage requirements have recently been tightened.
How have mortgage requirements been tightened? For one, the owner occupancy percentage plays a huge role now, where it didn't just a month ago. Also, the percent you can borrow is now lower. Talk to your mortgage manager at the bank where you do business to learn more.
Do you like for someone else to take care of the exterior of your property? Then condo living is for you. Swimming in the pool while others keep it clean and enjoying the lawns and gardens while others maintain them work for you? Then condo living is for you.
I'm sitting in the condo of a family member right now. We're staying here for the week. I hear the lady in the upstairs condo walking around. At night, when the window is open, I hear the bell of the elevator throughout the day and night. As I watch tv with the front door open I hear others walking to their condos, and the maintenance man stares in the door as he sweeps the common walkways. If these things bother you, maybe a single-family home is for you.
But if having a to-die-for view of a river and a boat dock to fish from is your thing, and you like walking to the grocery store and seeing wildlife out your window year-round, then maybe you can compromise and learn to live with the above-mentioned inconveniences?
Life can be a compromise. I love coming here for vacations, but I'm not sure I'd want to live like this year-round. Though being across the street from the beach and walking distance to Starbucks and everything else, really does me. At home I have to drive 11 miles just to go to the gym!
How have mortgage requirements been tightened? For one, the owner occupancy percentage plays a huge role now, where it didn't just a month ago. Also, the percent you can borrow is now lower. Talk to your mortgage manager at the bank where you do business to learn more.
Do you like for someone else to take care of the exterior of your property? Then condo living is for you. Swimming in the pool while others keep it clean and enjoying the lawns and gardens while others maintain them work for you? Then condo living is for you.
I'm sitting in the condo of a family member right now. We're staying here for the week. I hear the lady in the upstairs condo walking around. At night, when the window is open, I hear the bell of the elevator throughout the day and night. As I watch tv with the front door open I hear others walking to their condos, and the maintenance man stares in the door as he sweeps the common walkways. If these things bother you, maybe a single-family home is for you.
But if having a to-die-for view of a river and a boat dock to fish from is your thing, and you like walking to the grocery store and seeing wildlife out your window year-round, then maybe you can compromise and learn to live with the above-mentioned inconveniences?
Life can be a compromise. I love coming here for vacations, but I'm not sure I'd want to live like this year-round. Though being across the street from the beach and walking distance to Starbucks and everything else, really does me. At home I have to drive 11 miles just to go to the gym!
Sunday, May 18, 2008
JumpTown
What is JumpTown? JumpTown is the sky diving club that operates out of the Orange Airport. I love to watch them loop around the sky as I walk the excellent jogging track at the Mahar Middle and High School. I know they're there when I hear their shutes open. It sounds like shaking out sheets in the wind.
Saturday, May 17, 2008
Neighborhoods
What neighborhood is right for me? Start with what you like, and don't like, about where you live now. For instance, my first experience with home ownership was a two bedroom, two bath, two-car garage, and sunny front balcony and covered back balcony townhouse. I liked the porches and balconies, the pool and the no yard maintenance and being close to public transporation. I disliked the young neighbor who liked to hang around my back porch, the monthly association fees, the upgrade assessment lump-sum payments, the young men who drove too fast and talked too loudly to the young girl who lived across the driveway from me. I also disliked the heavy traffic that blocked the main streets at rush hour. Clearly the negatives here outweighed the benefits for me.
My next home was a four bedroom 2.5 bath home in a new sub-division far from anywhere, where we were in a crime-free, excellent school family neighborhood. We had front and back yards that I spent lots of time maintaining. There was a park up the street and lots of paved walking trails. We got lots for our money. For us, this was heaven.
My next home was a modern, three-story, two bedroom with balcony to the living room, wood-everywhere kitchen with a small balcony and almost no yard, a one-car garage, in a very "location, location, location" part of a big city neighborhood, close to everything. The neighborhood kids called our house "the castle" because it towered over the sloped street. We loved living here, except we were burgled and our son never wanted his room on the first floor again (the crooks went through his window when we were at the mall). All our future homes had two stories with all bedrooms upstairs after this.
So, which of the above sounds like you? If none, then think of what you dislike about the above. That will tell you a lot about what neighborhood you feel right living in.
Unfortunately, price often requires compromise. So if you know where you'd like to live but can't afford everything you'd like, then you have to prioritize. For some, buying more home (which usually means living in the burbs), wins due to affordability. For others, living in town is not negotiable, no matter the closet they have to live in at first, or the less than stellar public school often associated with big city neighborhoods.
Friday, May 16, 2008
Extra Inspections
Does one inspector inspect everything? No. Normally, if there is such a thing as normal, you hire an inspector to inspect the home. Extra inspections are things like soil contamination, septic inspections (usually done by the seller), well inspections, water testing, and other things I can't even think of at the moment. These extra inspections might be recommended by the first inspector or they might be obvious by odd things in the yard or strange odors in the air. Hopefully, the seller will disclose these issues. But if these things are apparent to you don't ignore them! Hire an expert before closing on the the property.
Thursday, May 15, 2008
Inspections
Never have a home inspection in the dark. How can you see if the roof is in need of repair? Also, when in the attic, you can't see light coming through where it shouldn't be coming through. And its hard to see water stains in the dark. Also, how can you see other exterior problems in the dark?
For example, I bought a home and had the inspection just at dusk. The inspector went around and was very chummy with the selling realtor. That should have put me on alert. This inspector should have been working for me. But I had to ask if the exterior siding was LP Siding. It was. The inspector said there was evidence of past termite damage near the fireplace. That should have been a huge red flag for me, but at the time, it wasn't. The inspector didn't go up on a ladder to inspect the exterior of the roof because,by then, it was completely dark. That, too, should have been a clue to me this inspector didn't have my best interests at heart. I was paying for the inspection but this inspector didn't seem to be working for me. Tip: If your inspector isn't fixing loose bolts, explaining how the systems work and how you will need to operate/fix/maintain each heating/cooling etc system, get another inspector! At the end of an inspection you should feel you know how to maintain the home. You should know about how long the roof has left, and everything else you'd ever want to know about that home. The inspections I've been to take anywhere from two to three hours.
The purpose of the inspection to help you know what you're buying before it is too late to not buy it. Traditionally, you have 10 days from the date your offer to purchase is accepted by the seller to have the inspection complete and to make a decision on whether you wish to continue to buy that home.
For example, I bought a home and had the inspection just at dusk. The inspector went around and was very chummy with the selling realtor. That should have put me on alert. This inspector should have been working for me. But I had to ask if the exterior siding was LP Siding. It was. The inspector said there was evidence of past termite damage near the fireplace. That should have been a huge red flag for me, but at the time, it wasn't. The inspector didn't go up on a ladder to inspect the exterior of the roof because,by then, it was completely dark. That, too, should have been a clue to me this inspector didn't have my best interests at heart. I was paying for the inspection but this inspector didn't seem to be working for me. Tip: If your inspector isn't fixing loose bolts, explaining how the systems work and how you will need to operate/fix/maintain each heating/cooling etc system, get another inspector! At the end of an inspection you should feel you know how to maintain the home. You should know about how long the roof has left, and everything else you'd ever want to know about that home. The inspections I've been to take anywhere from two to three hours.
The purpose of the inspection to help you know what you're buying before it is too late to not buy it. Traditionally, you have 10 days from the date your offer to purchase is accepted by the seller to have the inspection complete and to make a decision on whether you wish to continue to buy that home.
Wednesday, May 14, 2008
Yard Improvements
Is there a rule of thumb in how much I should invest in improving my yard? Yes! As a rule, you should spend 10% of the value of your home on landscaping. For example, if your home costs $200,000 you should spend no more than $20,000 on plants, hardscaping, and sod/seed. If you spend more, you'll enjoy it very much, but don't expect to see the extra return on your investment when you sell.
The reason is that you don't want to spend more money on improving your yard than your neighborhood is worth. So the above rule is just a guide. There are times you can spend more and get the return. But be careful to do your homework. For example, if you have a four bedroom home, on two acres and bought it for $300,000. This home is basic with no yardscaping. This home is a builders special. If you spend $30,000 on the driveway, walkways, sod and plants you'll be sure to get that and more (probably much more if you do just those things). But if you add a pool, you most likely won't see any of that extra cost when you sell, if that's all the improvements you do.
On the other hand, if the same home has homes in the area that are worth much more, say $500,00 or more, then it might be possible to make a lot of very pricey interior upgrages and, if done right, you'd be able to sell for thousands more than the cost of the upgrades.
For instance, if I buy the same house above and add wood floors throughout, granite counters in the kitchen and baths, a whirlpool tub in the master, crown molding, upgrade the cabinets throughout, add storage in the basement and laundry. And spend $50,0000 outside and inside on the specific improvements I've mentioned above, then you could expect to sell your $300,000 home for a tidy profit. Here's why. You paid $300,000 for the home, you paid $50,000 for the pool and yard improvements, and $50,000 on the interior improvements. That means you spent $400,000 so far on the property. If your property is located with more expensive homes in the area, and if the improvements are popular and done correctly and not too high end for the neighborhood, you could list your home for sale for $500,000 or more. But be sure not to go overboard. Buying the most expensive custom cabinets will not improve the value to most buyers. Buying value, popular part custom part stock and adding furniture-type legs on cabinets, will be worth the cost right now. But you will not see a return on the cost of the pool. Everyone wants a pool, but few are willing to pay for it. So do not over spend on a pool unless you just want to enjoy it for yourself. Happy sweat equity building!
The reason is that you don't want to spend more money on improving your yard than your neighborhood is worth. So the above rule is just a guide. There are times you can spend more and get the return. But be careful to do your homework. For example, if you have a four bedroom home, on two acres and bought it for $300,000. This home is basic with no yardscaping. This home is a builders special. If you spend $30,000 on the driveway, walkways, sod and plants you'll be sure to get that and more (probably much more if you do just those things). But if you add a pool, you most likely won't see any of that extra cost when you sell, if that's all the improvements you do.
On the other hand, if the same home has homes in the area that are worth much more, say $500,00 or more, then it might be possible to make a lot of very pricey interior upgrages and, if done right, you'd be able to sell for thousands more than the cost of the upgrades.
For instance, if I buy the same house above and add wood floors throughout, granite counters in the kitchen and baths, a whirlpool tub in the master, crown molding, upgrade the cabinets throughout, add storage in the basement and laundry. And spend $50,0000 outside and inside on the specific improvements I've mentioned above, then you could expect to sell your $300,000 home for a tidy profit. Here's why. You paid $300,000 for the home, you paid $50,000 for the pool and yard improvements, and $50,000 on the interior improvements. That means you spent $400,000 so far on the property. If your property is located with more expensive homes in the area, and if the improvements are popular and done correctly and not too high end for the neighborhood, you could list your home for sale for $500,000 or more. But be sure not to go overboard. Buying the most expensive custom cabinets will not improve the value to most buyers. Buying value, popular part custom part stock and adding furniture-type legs on cabinets, will be worth the cost right now. But you will not see a return on the cost of the pool. Everyone wants a pool, but few are willing to pay for it. So do not over spend on a pool unless you just want to enjoy it for yourself. Happy sweat equity building!
Tuesday, May 13, 2008
Pricing
What do I get for the money in Amherst vs. Athol? In Amherst you will get a condo for $150,000. In Athol, you can buy a new construction, single-family home. Tip: If you see a home advertised in Pelham for $150,000, you can be sure it has major issues. But for the right buyer, those issues my be surmountable. And if you buy this "distressed" property and resolve the issues, you could have instant equity.
Monday, May 12, 2008
Financing Changes
In the last few days big changes in condo financing have occurred. So big, in fact, that if you have a condo pre-approval letter that is more than six months old, it is no longer valid. I urge you to go immediately to your lender and learn the facts as they relate to you now.
For example, if you want to finance a condo for 80% or more, you no longer can, as of this week. The financing rules just changed. So if you were planning to pay a 20% down payment on a condo and finance the other 80%, you no longer can. This is very bad news for a lot of would-be new home owners! Don't let this change in financing stop you from buying. Maybe there are Mass Housing programs for you that you qualify for. If you are a low to moderate home buyer, check online or ask your bank or credit union about Mass Housing programs. According to the Massachusetts Association of Realtors magazine I was reading the other day, there are many programs for many types of buyers. Get the facts. There is good news for buyers, it may just be a little harder to find as of this week.
For example, if you want to finance a condo for 80% or more, you no longer can, as of this week. The financing rules just changed. So if you were planning to pay a 20% down payment on a condo and finance the other 80%, you no longer can. This is very bad news for a lot of would-be new home owners! Don't let this change in financing stop you from buying. Maybe there are Mass Housing programs for you that you qualify for. If you are a low to moderate home buyer, check online or ask your bank or credit union about Mass Housing programs. According to the Massachusetts Association of Realtors magazine I was reading the other day, there are many programs for many types of buyers. Get the facts. There is good news for buyers, it may just be a little harder to find as of this week.
Sunday, May 11, 2008
Mothers Day
Happy Mothers Day! The sun is shining, Sunday Morning Baroque is on National Public Radio, and I'm heading out to breakfast at Johnson's Farm, in North Orange with my handsome hubby. Hope your day is excellent!
Saturday, May 10, 2008
Flowers
This is the day to see May flowers. The bulbs are blooming, the wildflowers are covering lawns and hillsides. I'm even planning to mow my yard for the first time this year today. Even the yellow bushes are in full color right now.
Friday, May 9, 2008
22 Willis Rd, Athol
This 1959 modular home sits on a one-acre, level lot and is priced at $129,000. The property is on the corner of Old Keene Road and Willis Road, just north of Athol, off of Chestnut. Willis Road gets little traffic but Old Keene Road is a main road. Mapquest will not get you there (Mapquest sends you to South Royalston Road), so call for directions. This is a very rural location. There are old stone walls and ponds near the property. There are no disclosures from the seller but I'd check the flooding possibilities as the home sits right on the ground, from what I can see from the street. For homes in this price range, I'd take the time to give this one a look if acreage is something you value. I haven't been inside, but when a realtor doesn't show any inside pictures, and there six external pictures on MLS, that usually means the inside has nothing worth taking a picture of, so buyer be ready for no updates since 1959.
Thursday, May 8, 2008
Bicycling
I'd love to bicycle off the road, is there a place? Yes! The Norwottuck Rail Trail goes all through Hadley, Amherst and Northampton. This trail crosses the Connecticut River, goes behind the Hadley mall, behind the homes east of MA-9's Amherst ball field, and beyond in both directions. This trail is also good for roller-blading and walking and jogging. Get out there!
Wednesday, May 7, 2008
The Market
The market in our area is fine. For example, there are 22 new listings this week in Amherst and Hadley. Today I toured homes in every price range from a condo for $154,900 to a mansion for $1,250,000 and everything in between. So there is a lot to choose from if you are a buyer. Unfortunately for buyers, seller's prices haven't dropped as much here as they have in other regions.
Also unfortunately, foreclosures are up, also. I heard on National Public Radio today that many renters are loosing their homes due to the home they rent being foreclosed upon because the homeowner couldn't pay the mortgage. Tip: Massachusetts requires landlords to give renters the information on where the renter's security deposit is held. The law also requires that landlord to keep that money in an escrow account not accessible to creditors. The law also requires landlords to offer to give the renter the interest earned from that deposit each year. So, if you are a renter, be sure this is the case with your landlord. This diligence on your part could save you $$s if your home is foreclosed. Don't be one of the many renters I heard about today who lost their deposit, as well as their home, via eviction. I am not a lawyer, so if you need legal advice, seek professional representation.
Also unfortunately, foreclosures are up, also. I heard on National Public Radio today that many renters are loosing their homes due to the home they rent being foreclosed upon because the homeowner couldn't pay the mortgage. Tip: Massachusetts requires landlords to give renters the information on where the renter's security deposit is held. The law also requires that landlord to keep that money in an escrow account not accessible to creditors. The law also requires landlords to offer to give the renter the interest earned from that deposit each year. So, if you are a renter, be sure this is the case with your landlord. This diligence on your part could save you $$s if your home is foreclosed. Don't be one of the many renters I heard about today who lost their deposit, as well as their home, via eviction. I am not a lawyer, so if you need legal advice, seek professional representation.
Tuesday, May 6, 2008
Historic New Salem
Is there a town in the north Quabbin with all the historic charm of old New England? Yes, Old Main Street, New Salem. If you love a tree-lined street, an old town hall and a newly restored town library, the 1794 Meeting house and a often-used town common, then New Salem is for you. And I can't forget all the historic old homes. There is even a walking map available if you'd like to know the history of each home. Just follow the signs to the town center from the New Salem General Store on MA-202. And don't forget to stop at the reservoir overlook behind the volunteer fire department.
Monday, May 5, 2008
Planning Board Election Today
Today is election day in my town. I am running for a seat on the town planning board. I was interviewed by the Greenfield Recorder last Tuesday and the article ran in the paper the next day. Apparently I am involved in the only contested election in my town. My opponent has been a long-time incumbent so the odds of my winning are long against me. But my opponent wasn't available for comment so my quotes are all that were printed. All in all it is a favorable article. I was disappointed the article didn't say I was a realtor.
So I'll be spending the afternoon electioneering on South Main Street in front of the beautiful, historic, Senflug residence.
I'll be meeting and greeting voters on their way to the polls, explaining my credentials, and passing out flyers. Wish me luck!
So I'll be spending the afternoon electioneering on South Main Street in front of the beautiful, historic, Senflug residence.
I'll be meeting and greeting voters on their way to the polls, explaining my credentials, and passing out flyers. Wish me luck!
Sunday, May 4, 2008
236 Harkness Rd, Amherst
I toured this home in January, so its been on the market for a while. Yesterday, while on floor duty at the office (agent on duty to assist customers at Prudential Sawicki), I received a call. The caller wanted to know about 236 Harkness Road, Amherst MA. I told her about it and arranged to show it to her later that day. This home is located on one acre of land, is in move-in condition, and located in a what realtors call location, location, location. The street is a through street but easily accessible to both MA-9 and Pelham Road/Main Street. The wheel chair ramp to the front door would be easily removed, I'd be happy to recommend someone who'd do a great job removing it. There is a great, full-service gym not too far away, in the same neighborhood.
Honor
Yesterday I received a high honor. I received a letter from the Cambridge Whos Who for Professional Women. The letter said their nominating committee is currently considering me for entry into their online directory.
Saturday, May 3, 2008
Steering
Customer talking to realtor about his requirements in picking a neighborhood: "I'd like you to preview homes only in neighborhoods with my kind of neighbors." Depending on what you mean by "my kind of neighbors" this might be steering. Steering is when a realtor takes a customer only to certain neighborhoods based on the racial make-up of that neighborhood. Steering is illegal when it involves protected classes of people. Protected classes of people are race, color, sex, children, age, sexual orientation. A realtor may not steer customers to or away from neighborhoods with protected classes of people.
Where does this leave a customer looking for a home in a safe neighborhood with good schools? It leaves you with the ability to do your own research on the neighborhoods you are interested in living in. I'm a military spouse. The Army has moved my family all over the United States. Each time we receive permanent change of station orders (orders to move somewhere), I go onto realtor.com and type in neighborhoods and type in the city I'm interested in living in and see how the schools and crime rate compare to eachother. I also talk to people in the area I'll be moving. I explain what I'm looking for and they usually steer me to where I want to start my search. I also spend time driving all around the areas I think I'm most interested in living. Sometimes this shows me other areas I prefer, but not usually. Usually I end up right where my contacts said in the first place.
That said, if you tell me what you're looking for, I'll most likely be able to find you the perfect home for you. I'll take you to three different neighborhoods. You'll see which feels right. To do this, you'll look at pride of ownership of the neighbor's homes. See if it works for you. You'll consider all the usual things that make every property unique. Often, you'll have to compromise, especially if your budget is modest.
Ultimately, the purpose of a realtor is to match up buyers with sellers to achieve a win-win for both. Realtors have no interest in discriminating against anyone. But it is a waste of time for me to show homes in an obviously wrong neighborhood. To avoid this and still not steer, specify exactly what the neighborhood looks like that you think you might be interested in living. Then you have a much better chance of finding it quickly.
Where does this leave a customer looking for a home in a safe neighborhood with good schools? It leaves you with the ability to do your own research on the neighborhoods you are interested in living in. I'm a military spouse. The Army has moved my family all over the United States. Each time we receive permanent change of station orders (orders to move somewhere), I go onto realtor.com and type in neighborhoods and type in the city I'm interested in living in and see how the schools and crime rate compare to eachother. I also talk to people in the area I'll be moving. I explain what I'm looking for and they usually steer me to where I want to start my search. I also spend time driving all around the areas I think I'm most interested in living. Sometimes this shows me other areas I prefer, but not usually. Usually I end up right where my contacts said in the first place.
That said, if you tell me what you're looking for, I'll most likely be able to find you the perfect home for you. I'll take you to three different neighborhoods. You'll see which feels right. To do this, you'll look at pride of ownership of the neighbor's homes. See if it works for you. You'll consider all the usual things that make every property unique. Often, you'll have to compromise, especially if your budget is modest.
Ultimately, the purpose of a realtor is to match up buyers with sellers to achieve a win-win for both. Realtors have no interest in discriminating against anyone. But it is a waste of time for me to show homes in an obviously wrong neighborhood. To avoid this and still not steer, specify exactly what the neighborhood looks like that you think you might be interested in living. Then you have a much better chance of finding it quickly.
Friday, May 2, 2008
E-Certified Training
Doesn't it seem like everyone calls themselves a professional these days? I can't speak for others, but I train almost every day to stay current in my profession. Today I'm completing an online training course from Prudential called E-Certification.
Realtors must keep current with what's new in technology. Statistics say our average customer is 32 years old, will start her real estate search online months before contacting a realtor, might contact a realtor by phone or e-mail or internet site, and will only wait for a return call for two hours before contacting another realtor.
Being a realtor is all about customer service. So if your realtor isn't able to meet the above criteria for meeting your needs, call me! I have a cell phone with internet access at 978-846-7398, a web blog on Quabbin area real estate at stresslesscathy.blogspot.com, an internet site called stresslesscathy.com, am listed on Prudential Sawicki's website, am listed on Prudential.com, and regularly I'm in the newspaper in the Pioneer Valley. Last month I was featured in The Real Estate Book, and yesterday the Greenfield Recorder wrote an article about me because I'm running for election on Monday to my town's planning board. If you'd like to give your property this same exposure, call me to come to your home to go over what the market says your home is worth. If you list with me, you can be sure my top-quality marketing plan will give your property the maximum exposure to buyers!
Realtors must keep current with what's new in technology. Statistics say our average customer is 32 years old, will start her real estate search online months before contacting a realtor, might contact a realtor by phone or e-mail or internet site, and will only wait for a return call for two hours before contacting another realtor.
Being a realtor is all about customer service. So if your realtor isn't able to meet the above criteria for meeting your needs, call me! I have a cell phone with internet access at 978-846-7398, a web blog on Quabbin area real estate at stresslesscathy.blogspot.com, an internet site called stresslesscathy.com, am listed on Prudential Sawicki's website, am listed on Prudential.com, and regularly I'm in the newspaper in the Pioneer Valley. Last month I was featured in The Real Estate Book, and yesterday the Greenfield Recorder wrote an article about me because I'm running for election on Monday to my town's planning board. If you'd like to give your property this same exposure, call me to come to your home to go over what the market says your home is worth. If you list with me, you can be sure my top-quality marketing plan will give your property the maximum exposure to buyers!
Thursday, May 1, 2008
The perfect home
My newest customer is looking for a three bedroom, one bathroom home for under $150,000 with 1/2 acre or more for gardening. She'd like a home between Amherst and Turner's Falls, but will go as far east as Orange or Athol. Does this sound like your perfect home? Maybe not. But it is for this customer at this point in time. I signed her up in MLS and she's receiving listings that match her criteria via e-mail. Also, I'm actively looking for properties that might match her needs. My second marketing assistant is that MLS has a feature that allows reverse prospecting. Reverse prospecting is where other realtors actively look for and e-mail me properties they believe might meet my customer's needs. This is synergy at its best!
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