Real Estate Information Archive

Since the topic of conversation with Franklin, MA and Boston area agents has recently centered on the lack of available housing inventory for prospective buyers, I decided to take an informal survey of the situation.

I individually asked ten Franklin Realtors how many buyers they had who would likely purchase a home priced between $250,000 and $450,000 on or before April 30^th, 2010.  I chose April 30^th since move-up or first time buyers looking to take advantage of the homebuyer tax credit must have a signed contract on a home by this date.  The agents did not know any explanation other than I was gathering information for a future blog post.  The data I collected cannot be viewed as statistically significant but rather just a small snapshot of the current Franklin, MA market conditions.

The respondents indicated the following:

• Six agents expect five buyers will buy
• One agent expects three buyers
• One agent expects eight buyers
• Two agents expects four buyers

This was very interesting to consider that potentially a total of 20 buyers –connected to ten different Realtors-- are expected to purchase a home during the next three months.  The harsh reality is that currently there are only 57 homes for sale in the entire town in every price range.  This group was only a fraction of the buyer agents who will likely have prospective buyers for Franklin homes over the next three months.  Most every full-time agent has distinct memories of the endless bidding wars during 2009 in which some buyers were not able to find a home as they attempted to meet the (then) November 30^th, 2009 deadline.

Buyers need homes to purchase now.   Sellers, despite it still being a buyer’s market, can rest assured that the low inventory of homes means a likely higher selling price for their home.  The time it takes to sell a home may also be reduced as buyers feel the pressure to find the best home as soon as they can. Homes do need to properly appraise with the bank agreeing with the selling price but valuations may begin to rise.

It really is a good time to sell or buy a home! 

Please give me a call or email if you need more data or have questions about this information…

1. They don't ask enough questions of their lender and miss out on the best deal.
2. They don't act quickly enough to make a decision and someone else buys the house.
3. They buy too close to or over their budget--possibly not considering maintenance, decorating costs, improvements, etc.
4. They don't find the right real estate professional who is willing to help you through the homebuying process.
5. They buy on their own thinking they will save money but end up paying more due to lack of professional guidance.
6. They don't do enough to make their offer look good to a seller.
7. They don't think about resale before they buy.  The average first-time buyer only stays in a home for four years.

Source:  www.realestatechecklists.com

Give me a call if you are just starting your search and need advice.  You can reach me at 508-369-5131 or check out my website franklinmahomes.com for great buying tips...

By now, most people have heard the term "short sale" and understand that the sellers owe more on their home than the home is actually worth.  The question is whether to take the leap to purchase one of these properties.

In the greater Franklin, Massachusetts area real estate had not been as hard-hit as some western Mass. suburbs so there are relatively few short sales but they are still out there.  It has been my experience that some banks are taking 9-12 MONTHS to process the loans on these properties while other banks are closing within 4-5 weeks, NOT MONTHS. 

If you are a flexible buyer who can close on a home whenever the bank decides and you do not object to possible delays, I would say a short sale could be worth the headaches and uncertainty.  I would first check with the seller's lender to determine the likely timeframe to reach a closing before recommending my buyers go after a short sale.  Some of the other possible problems include the utilities being shut off which make a home inspection difficult.  If the seller has run out of money and may be unemployed, chances are they are not choosing to pay their other bills especially if they have moved out.

It is unfortunate that although the government is attempting to solve the housing crisis that some of the larger banks do not seem to have the staffing in place to clear all of these short sales through the system. 

Jerry Howard, president and chief executive officer for the National Association of Home Builders, just released his views on the current state of the economy and interestiingly it echoes much of what the Franklin, Massachusetts area Realtors have found.  (Howard has spent 25 years in the housing industry as lobbyist, real estate lawyer and tax counsel.)

Howard believes that first-time homebuyers show that housing is worth pursuing and that the tax credit plan so far can be viewed as a successful experiment that the government should seriously consider extending into 2010.  In the metrowest of Boston area, this has been one of the busiest summers any local Realtor can recall as first time buyers have flocked to find their perfect starter home.  The promise of tax credit money seems to have been the impetus for this flurry of activity during an otherwise quiet time of the year. 

Howard states this historically this is one of the best times to buy a home but qualifies it this way: "a prospective home buyer who is currently employed and your own financial conditions are stable, this is the best possible time to buy. Inventories are at a point where you'll be in a better position to negotiate with the seller. Sellers are in a position where they really want to unload their inventory, and interest rates are still at almost record lows. So if you're in a position, personally, to buy and of the mind-set to buy, this is absolutely the time."

If you need help as you are getting ready to buy a home, give me a call or email me with your questions at 508-369-5131 or franklinmahomes@comcast.net.

While many buyers have been frantically searching for their perfect home without having many properties to choose from in the Franklin, MA area, some wondered if it could be possible that the tax credit deadline would be extended beyond the current November 30th closing date.  As a local REALTOR, I have several buyer clients who feel pressured to find a home quickly but they do not want to settle for just any home. 

The latest word is that a bill is pending in both the House and the Senate to extend the timeframe for the first-time homebuyer program into next year.  A few Senators are also pushing for the amounts to be raised from $8000 to $15,000 but this appears less likely to be passed.

If the deadline is pushed into 2010, there will be a benefit to all.  Buyers can take advantage of a greater number of homes to choose from as more properties come on the market.  The tax credit money allows buyers who might otherwise be unable to come up with enough deposit money to purchase their first home.  Sellers in the under $400,000 range can rest assured that many buyers are searching and waiting for their home to get listed.  Yes, bidding wars in this lower price range have been occuring again as many buyers compete over a handful of homes.

A review of the latest data shows that the Franklin, Massachusetts real estate market is holding its own and actually fared quite well this summer so far.  The data from May 2009 until the present shows the following:

• there are 124 single family homes for sale total
• prices have changed by 5% from initial asking price
• 36 homes are pending, waiting to close
• the average list price is $459,057 with an origiinal price of $470,781
• the average sale price is $445,147
• 102 days is the average days on market until closing

If you have questions about your home, the buying or selling process or this data, please feel free to call or email me at 508-369-5131 or franklinmahomes@comcast.net.

Working with a buyer agent to find a home can be extremely gratifying and beneficial in so many ways.  It can also be very frustrating to many buyers who may not be familiar with the process of buying a home.

A buyer agent provides guidance, expertise, education as well as negotiating help to assist a buyer in locating the best home for the money as well as the most suitable location based on the buyer's search criteria and lifestyle.  A single man who enjoys fishing and boating may be looking for a home near a pond or lake whereas a young couple starting a family may be seeking a family-type neighborhood near to schools and parks.

I always remind my buyer clients that they have hired me to help them find a home and have given me their wish list that I will be using as a guide as I search for homes.  If they tell me no to train tracks, and no to main roads then see a perfect home near the train, that is fine and I let them know that in the end it is their money and their choice.  I will also let them know that the home will always be less valuable than a home further from the train tracks.

Many times buyers can feel that their buyer agent is limiting their search too much when actually the agent has thorough knowledge of the area and realizes a certain neighborhood will not fit their profile.  It is common to feel annoyed with your buyer agent at times but know that they are only trying to protect your interests.

The buyer agent is always thinking about resale potential in any home you may choose.  If the area does not have good potential, the agent will likely be upfront about this.  One should never feel that their buyer agent was just trying for a quick sale rather than thinking about what is really best for their buyers.

Real estate is very much a people and referral business and most of my business comes from past clients.  I want my clients to be happy and I will hope to work with their family or friends in the future.

Please call or email with any questions at 508-369-5131 or franklinmahomes@comcast.net.

Lately I have been a buyer's agent for a number of buyers and what I have found is that contrary to some reports real estate is extremely hot in the under $350,000 range.  My frame of reference most recently is the metrowest of Boston area towns, especially Franklin, Wrentham, Plainville, North Attleboro, and Mansfield.  Every listing is getting MANY showings on a daily basis and multiple offers usually within the first week. 

Some agents advise their sellers that gathering all offers for one week then discussing them at the end of the week is a strategy to obtain as many offers as possible.  This can be helpful as long as some buyers don't get anxious thinking that they will have to overbid by a large amount.  Overbidding is not necessarily acceptable now either since the house must appraise by the bank and too high a selling price could be rejected by the bank.

It is very interesting to see this urgent buying scenario where 6 months ago this was not the case.  Maybe the homebuyer tax credit money is prompting buyers to buy now to claim their possible $8000 refund?

Please call or email me if you have questions about the buying process at 508-369-5131 or franklinmahomes@comcast.net.

The National Association of Realtors just released its 2009 National Housing Pulse Survey which indicates that saving for down payment and closing costs are currently the biggest obstacles buyers face in obtaining a home.  NAR President Charles McMillan states that 82% of house hunters are dealing with this issue but cites the government housing tax credit program as a significant help in providing needed funds for buyers.

Locally, I have known several buyers who have delayed their home search until they had increased their savings.  It is clear that banks have tightened their regulations which means that "no money down" is definitely a thing of the past.  Banks are often requiring up to 10% deposit money to obtain a mortgage and this can be difficult to achieve for many, especially younger buyers.

If you are beginning a home search and need help, give me a call or email at 508-369-5131 or franklinmahomes@comcast.net.

New Homebuyer tax credits proposed

Congress once again is considering new tax credits intended to lure wary homebuyers into the nation's sagging housing market.

Washington lawmakers have proposed several separate bills laced with housing incentives. The plans differ, but key elements include:

• Near doubling of tax credit.Sen. Johnny Isakson, R-Ga., has introduced a bill that would sweeten the current $8,000 homebuyer tax credit to $15,000. The bill has picked up a slew of co-sponsors, including Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee. 
• Expanded pool of eligible purchasers. Isakson also wants to allow "any buyer of any home" -- including move-up buyers and purchasers at every income level -- to claim the tax credit. Currently, the credit is restricted to first-time purchasers. Two House bills also propose expanding credit eligibility to all homebuyers.
• Extended tax credit deadline. Various proposals would keep the first-time homebuyer tax credit alive through at least mid-2010. Right now, the credit is scheduled to expire at the end of the year.
• New refinance tax credit.Rep. Kenny Marchant, R-Texas, has introduced a bill to give a $3,000 tax credit to homebuyers who refinance the mortgage on their primary residence.  Marchant champions the credit as a free-market-friendly approach that helps people refinance "without picking winners and losers."

These all seem to be great incentives to get the real estate market churning again but I have found that many Franklin, Massachusetts area buyers had not even been aware of the initial up to $8000 tax credit money and most had no idea that they could take the money up front without any repayment.  While there are many affordable homes, and low mortgage rates, it seems evident that those prospective buyers facing an uncertainty with their jobs will not venture into homebuying.  However, for those with secure jobs the current government incentives are worth becoming informed about.  Yes, the tax credit money is there, for FREE, and can be used up front in buying a home. You will want to speak with a mortgage broker about the details as you sit down to get a pre-approval letter.