Berkshire Real Estate and Lifestyle Blog

Massachusetts Pending Home Sales up for Eight Straight Months to Close out year in December

Sun, 15 Jan 2012 03:00:00 GMT



The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes put under agreement in December went up again for the eighth straight month compared to the same time in 2010. Condominium pending sales were also up from the same time last year. For the entire year, however, the number of single-family homes put under agreement in 2011 was down 1.9 percent compared to 2010, while condominium pending home sales were down 20 percent compared to 2010. “The year ended on a positive note with eight straight months of pending sales increases,” said 2012 MAR President Trisha McCarthy, broker at Keller Williams Realty in Newburyport. “People who made the decision to buy in 2011 were able to take advantage of lower prices and historically low interest rates to get into a home. If this trend continues, then the market could be on its way back to more normal levels.” The number of single-family homes put under agreement in December was up 11.7 percent compared to the same time last year (2,888 homes in 2010 to 3,227 homes in 2011). This is the eighth straight month of year-over-year increases. On a month-to-month basis, single-family homes put under agreement were down 10 percent from 3,580 homes in November. The number of condos put under agreement in December was up 13 percent compared to December 2010 (1,046 units in 2010 to 1,179 units in 2011). On a month-to-month basis, condos put under agreement were down 11.6 percent from 1,333 units in November. Year-End Pending Sales: There were a total of 46,477 single-family homes put under agreement in 2011, which was down 1.9 percent compared to 47,384 single-family homes put under agreement in 2010. The number of condominiums put under agreement in 2011 was down 19.7% compared to 2010 (20,460 units in 2010 compared to 16,434 units in 2011). About Pending Sales: The tracking of signed purchase and sales agreements (also called “pending sales”) provide reliable information about where the real estate market is heading in coming months. A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such. MAR is the only organization which compiles this statewide information from Multiple Listing Services each month.

President Obama's Debt Ceiling Bill and Real Estate Tax Rules

Tue, 02 Aug 2011 18:14:00 GMT

NAR Just released: Earlier today, President Obama signed into law, S. 365, the Budget Control Act of 2011, more commonly known as the Debt Ceiling Bill. After careful analysis of the bill we can report that it contains NO DIRECT IMPACT ON REAL ESTATE TAX RULES OR SPENDING PROVISIONS. No tax laws of any kind were changed, nor were any housing programs cut. The bill passed the House and Senate on strong bipartisan votes: 269 – 161 in the House and 74-26 in the Senate. A potential debt default has been averted. The next 100 days could be the most important part of the battle over Mortgage Interest Deduction and Carried Interest. For more information, see the following

http://www.facebook.com/l/xAQAaGOsoAQC2H9_HGxvP4ZezvMk4xjETWkzn_SpA0OG_FQ/www.ksefocus.com/billdatabase/clientfiles/172/4/1300.pdf

Curb Appeal Sells!!

Sat, 01 May 2010 10:54:00 GMT

Most buyers choose to drive by your home first before wanting to set an appointment to view. An attractive yard that is free of debris will gain interest quickly. Make sure that trees are trimmed and that your home can be seen from the street. Have the grass mowed, trimmed and edged. Walkways should be swept. Clean away all debris. Remove parked cars or RVs. When in season plant flowers to add color.

Remember, if the buyer does not like the outside, that person simply drives on to the next house. Get your home ready for drive by traffic and give folks something extra nice to look at.

Call us today for a no-nonsense, no obligation assessment of your homes value and let me show you the key factors in obtaining a top dollar sale on your home! We would definitely like to help you in any way we can!

The condition of your home will have a huge impact on how fast it sells, and its eventual selling price. Preparing your home for sale can pay you huge dividends. Many fix ups cost very little and consist mostly of time and some elbow grease. Here are some simple tips to help your home show its best.

INDOORS:

1. Clean the entire home thoroughly. Shampoo carpets, wash walls, clean sills, window screens and blinds. Clean out light fixtures and dust shelving. Get detailed here.

2. Clean the clutter from all closets, cupboards and cabinets.

3. Make your rooms look as spacious as possible. Store unnecessary furnishing items that make your home look crowded.

4. Arrange furnishing so that it is easy to walk through your home.

5. Scale down the number of photos, pictures, portraits and posters hanging on walls. Make sure you patch all nail and screw holes.

6. Keep your curtains and draperies open as a rule. You will want your home to show very light and bright. Find ways to screen any unappealing views.

7. Make your kitchen shine. Remove clutter from counter tops and cabinets and store it. Keep your sink clean and clear of any dirty dishes.

8. Clean your refrigerator, inside and out. Make sure that you do the simple things like putting an open box of baking soda in your fridge. Also, remove unnecessary clutter from the door.

9. Clean your oven. Degrease it and keep it looking as good as possible.

10. Keep scented candles burning in the kitchen and bathrooms. Pleasant fragrances will entice buyers to stay longer in your home.

11. Keep bathrooms scrubbed and tidy with fresh soap and neatly hung towels. Try to color coordinate your bathrooms.

12. Keep all sinks in the home clean and repair leaks or slow drains.

13. Go through your entire home and touch up paint. Pay close attention to corners where there is traffic wear. Touch up baseboards, trim and cabinets and cupboards.

14. Place plants or flower arrangements in strategic parts of the home. A splash of color from plants, flowers, pillows or small rugs can give your home some real flair.

15. Make sure that your home is well lit. Put higher wattage bulbs in dark areas or corners. Keep all lights on during showings, even in mid day.

16. Use mirrors on walls if necessary to reflect light and make rooms look larger.

17.Make sure that all door knobs and keyed entries are working. Replace any worn knobs or handles.

OUTDOORS:

1. Clean up all around the house. Remove any debris piles such as wood, firewood and landscape trimmings. Trim all hedges, bushes and shrubbery away from the house. Keep all garden beds weeded and mulched.

2.Put some color by your home's entrance with potted flowers. Keep them watered and looking attractive.

3. Keep all walkways clear, clean and in good repair. This includes your driveways and any parking areas.

4. Keep all outdoor furniture clean and in good repair.

5. Clean your gutters and roof. Keep moss or algae from growing on, in or around them.

6. Keep your yard and lawn areas clean and in good health. A green lawn makes a home look great. Keep your lawn edged and free from weeds.

7. Repair any broken windows, screens, shutter or awnings.

8. Clean your garage area. Remove clutter and make it look organized and as spacious as possible. Try to have nothing in your garage but cars.

By following these 25 fix up tips, you can do a lot to increase the perceived value of your home and make it stand out above the competition!

Tips for Buying Short Sales

Thu, 31 Jul 2008 10:06:00 GMT

We are seeing more short sales becoming available on the market in the current market conditions than we have in the past. A short sale is a sale of a property where the lender agrees to accept less than what is owed on the mortgage in order to facilitate a sale. While this typically means bad news for both the seller and the bank, it can mean opportunity to buyers who have patience. There can be some obstacles and challenges associated with buying a short sale and it does require a different approach than a regular purchase. The following 10 tips could help you successfully acquire a great deal on a short sale property.

Here are 10 important steps when considering a short sale:

1. Identify potential short-sales
Locate pre-foreclosures in your area. You can use an online database, search courthouse listings, legal ads or by using an experienced real estate agent as a buyer’s agent.

2. View the property
Gauge its condition and come up with a rough estimate of how much it’s going to take to repair or renovate. If it needs work, many "normal" buyers won’t consider it, which is good for you.

3. Do your research
What is the property worth? What’s the profit potential? If you’re an investor or even a homeowner planning to live in the home a short time you’ll want to profit from the deal.

4. Find all liens and mortgages
Ask the seller or his agent what liens are on the property, and which lender is the primary lien holder.

5. Figure out the financing
You have to know how you’re going to pay for the property. If you’re a good credit risk, the existing lender may be willing to give you a loan. Because they already have a lot of your information in the short-sale paperwork, they may be able to expedite the loan application process. Once an agreement is worked out, it is common the lender will require closing in as few as 20 days. This is too late to start shopping for a mortgage.

6. Contact the lender

You or your agent should speak with the loss mitigation department (or perhaps the resource recovery department) rather than the collection or customer service department, which is only interested in recouping past due loan payments. You will first need to have the homeowner complete and sign (notarization is usually required) an authorization letter, which gives the lender permission to discuss the mortgage situation with you.

7. Complete the lender’s short sale application, if they have one
Many lenders have an application specifically for a short sale request.

8. Assemble the proposal

The proposal generally consists of a package of materials including the application and authorization letter plus:

- The purchase and sale contract — signed by you and the seller — to buy the property for a specified price.

- A hardship letter. It’s important to remember a lender will not even discuss a short sale until the homeowner has fallen behind on payments — usually 90 days.

- A statement of the property’s value. This can be an appraisal or a broker’s price opinion.

- Detail the costs and liabilities. You want to show the lender it would be much better off letting you take the property off its hands.

- A settlement statement. This statement (which can be prepared by a closing agent or real estate lawyer) outlines the purchase price, the closing costs and any other costs or fees involved in the transfer of the property.

9. Negotiate
It’s not uncommon for the lender to reject your offer or to come back with a counteroffer. As with any real estate transaction, you should figure out beforehand what your absolute highest limit is, and don’t be afraid to walk away if the lender won’t meet your figure.

10. Seal the deal

Once you’ve reached an agreement that all three parties (you, the seller and the lender) are OK with, get everything in writing and officially recorded. Make sure the seller understands all of the terms of the deal. Next comes the closing and the property is yours.

Tips for Buying Short Sales

Thu, 31 Jul 2008 10:06:00 GMT

Here are 10 important steps when considering a short sale:

4. Find all liens and mortgages
Ask the seller or his agent what liens are on the property, and which lender is the primary lien holder.

6. Contact the lender

7. Complete the lender’s short sale application, if they have one
Many lenders have an application specifically for a short sale request.

8. Assemble the proposal

The proposal generally consists of a package of materials including the application and authorization letter plus:

- The purchase and sale contract — signed by you and the seller — to buy the property for a specified price.

- A hardship letter. It’s important to remember a lender will not even discuss a short sale until the homeowner has fallen behind on payments — usually 90 days.

- A statement of the property’s value. This can be an appraisal or a broker’s price opinion.

- Detail the costs and liabilities. You want to show the lender it would be much better off letting you take the property off its hands.

10. Seal the deal

Energy Saving Tips

Thu, 31 Jul 2008 09:57:00 GMT

As we all know energy prices are through the roof these days so anything we can do to use less energy in our homes is going help ease some of the strain on the pocketbook. People are also becoming more and more conscious of the conservation of consumable energy sources and therefore have more of an interest in “going green”. With that in mind it may be time to replace the old light bulbs in our homes with new energy-efficient compact fluorescent bulbs.

In the past replacing light bulbs with the newer energy efficient bulbs was cost prohibitive. Individual bulbs could cost as much as $7-$8 a piece in 2000. Any money you may have saved in energy costs was lost when you purchased and replaced bulbs. Now the average cost is about $3 per bulb so the cost savings out weighs the slightly more expensive bulbs. You many save as much as $30 in energy consumption over the life of the bulb. Energy-efficient compact fluorescent bulbs also last longer than traditional light bulbs so you will need to replace them less often.

Don’t wait, stock up on some energy-efficient compact fluorescent bulbs today and good luck going green!

Closing Costs Explained

Thu, 24 Apr 2008 13:19:00 GMT

The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.Typically Buyers and Sellers do not get specific information about their precise closings costs because the closing attorneys are engaged in confirming tax data and discussing prorated items. Nevertheless, here is some information that can guide you in what to expect.

Buyer closing costs

When a buyer applies for a loan, lenders are required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Some typical buyer closing costs include:

· The down payment

· Loan fees (points, application fee, credit report)

· Prepaid interest

· Inspection fees

· Appraisal

· Mortgage insurance

· Hazard insurance

· Title insurance

· Documentary stamps on the note

Seller closing costs
If the seller has not yet paid for the house in full, the seller's most important closing cost is satisfying the remaining balance of their loan. Before the date of closing, the escrow officer will contact the seller's lender to verify the amount needed to close out the loan. Then, along with any other fees, the original loan will be paid for at the closing before the seller receives any proceeds from the sale. Other seller closing costs can include:

· Broker's commission

· Transfer taxes

· Documentary Stamps on the Deed

· Property taxes (prorated)

Negotiating Closing Costs
In addition to the sales price, buyers and sellers frequently include closing costs in their negotiations. This can be for both major and minor fees. For example, if a buyer is particularly nervous about the condition of the plumbing, the seller may agree to pay for the house inspection.

Likewise, a buyer may want to save on up-front expenditures, and so agree to pay the seller's full asking price in return for the seller paying all the allowable closing costs. There's no right or wrong way to negotiate closing costs; just be sure all the terms are written down on the purchase agreement.

Prorations
At the closing, certain costs are often prorated (or distributed) between buyer and seller. The most common prorations are for property taxes. This is because property taxes are typically paid at the end of the year for which they were assessed.

Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won't come due until the following year! To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.

The 7 Basic Principles of Home Staging

Thu, 24 Apr 2008 13:04:00 GMT

The 7 Basic Principles of Home Staging

Every home seller will greatly benefit from doing the following five things.

Real estate and physics have some very basic fundamental principles and laws. An example, in physics the law of gravity is paramount. If you throw a ball up, you know that it is going to come down. Tough to defy this law.

In real estate, the most basic Law, is that the better home looks, the faster it will sell and for more. Tough to defy this law. Therefore, as a seller it is necessary to prepare your home properly for sale. You want your home to look great and be shown in the best possible light. This can be easily accomplished in a short period of time. You merely:

Un-cluttering- time to start packing, you are moving anyway! Begin to throw away, give away, pack away and put back needed items neatly. Everything "personal" needs to be packed up or hidden. Be sure to not forget the garage and yard.

2. Cleaning - make your home sparkle with extra attention! Get in to all the corners, closets and drawers. Pay close attention to the front porch and windows. Kitchens and bathrooms must be clean and fresh smelling.

3. Repairing - time to fix all those things that are broken! Make sure everything is working, you don't want to give the buyer a reason to reduce the price!

4. Neutralizing - color and decor in neutral colors/style. May be a time to paint and remove wallpaper. All collections need to be packed up. Put away extra furnishings and decorations.

5. Dynamizing - props and setting the scene! But remember.....less is more!

Loss Mitigation Certification

Thu, 24 Apr 2008 12:44:00 GMT

Great Barrington Realtor®

Completes Loss Mitigation Certification Program

Great Barrington, MA – Corinne McKeown, Broker/Owner of Storybook Homes Real Estate earned a Certification in Loss Mitigation on March 8, 2008. The program was offered by The Massachusetts Association of Realtors®, and taught REALTOR® attendees how to work effectively with complicated transactions involving foreclosures, short sales, properties at auction or bank owned (also known as real estate owned or REO), and how to protect buyers and sellers as they work through the process.

Taught by national and local experts in loss mitigation, the course equipped attendees to deal with short sales on both the buying and listing side; instructed them how to best approach lenders; and identify what information they will be required to produce. Since not all short sales avoid foreclosure, attendees also learned about the auction process including viewings, financing, and bidding. This course also addressed the human element of these transactions as consumers potentially face losing their homes. Ms. McKeown is also a Certified Buyer Representative, and holds the Certified Residential Specialist designation, the highest credential in the Real Estate industry.

To learn more about the process of short sales to avoid foreclosures, or if you know anyone who may face losing their home, contact Corinne McKeown in confidence at 413-644-9440.

Real Estate Dictionary of Real Estate Terms.

Sun, 03 Feb 2008 10:45:00 GMT

Every person working in real estate or planning to buy or sell real estate can benefit by using the below link which will lead you to a free real estate dictionary. This dictionary of real estate terms is one of the most extensive in the industry and is used by many real estate agents, real estate brokers, mortgage brokers, and instructors in major real estate schools across the country. Enjoy it!

http://www.realestatewords.com/

FORCLOSURES: How to Purchase and Prevent!

Fri, 01 Feb 2008 11:38:00 GMT

It's a challenging time for many home owners who borrowed money at too-good-to-be-true rates a few years ago. We hear daily news reports about more and more foreclosures. While we care greatly about what these folks are going through (see homeowner resouces below) - it is also true that forclosures bring opportunity to others - who often wouldn't otherwise have the opportunity to purchase a home of thier own. Even in the Berkshires where many enjoy vacation home ownership and 2nd homes, forclosures are happening in locations and price ranges we wouldn't expect to see them.

Those of you who want to check out these opportunities in more detail, I've found a very informative website for you to check out.

Click on the link below to get free information on Foreclosures in ANY Real Estate Market - including our Beautiful Berkshires! You too can enjoy the joys of Home Ownership with these great deals. It's for any US Market and is a great source of Forclosure information for REAL ESTATE Agents and Home Buyers alike. I've done the research and this is the best, more reliable resource to locate forclosed properties at unbelievable prices. Enjoy a free trial! When you find a forclosure in the Berkshires that interests you, it's best to have expert representation - so call me and I can help! Here's the link:

http://www.foreclosure.com/?rsp=1807&AID=10381908&PID=2758232

Storybook Homes also has a couple of very special opportunities within it's listing inventory. Please visit www.StoryBookHomesInTheBerkshires.com to view these hot properties being offer well below market value! You can also email me at corinne.mckeown@Realtor.com and I'll send you listing info on these properites and other forclosures as they come down the pike.

FOR HOMEOWNERS FACING POSSIBLE FORECLOSURE: Learn What You Can do to Protect Your Home. If you feel like you may be in danger of facing foreclosure and need immediate help, call 888-995-HOPE or visit www.995hope.org. Homeowner's HOPET, a counseling service provided by the Homeownership Preservation Foundation, can work with you to find a solution.

How to Avoid Foreclosures and Keep Your Home (PDF: 1.7Mb)
You're not alone if you're having trouble paying your mortgage. The housing boom led to a record homeownership rate of nearly 70 percent, but some home owners now face problems making their mortgage payments and can't refinance their loans. This brochure will help you understand your options and give you tips on how to avoid losing your home--regardless of what kind of mortgage you have. Text-only version available (PDF: 71Kb)

Please let me know if this information has been helpful!