Over-pricing causes many expired listings

Look at the chart above to see how many expired home listings there are on the MLS year after year. That’s a lot of homes that get rejected by buyers!

The common problem uniting the vast majority of expired listings is over-pricing.  The sellers simply ask too much money for their homes.

Many expired homes relist and do eventually find buyers – but often at much lower prices than the sellers originally asked.

Why it’s easy to get the home value wrong

One big reason behind over-pricing is that there are a lot of emotions at play when you sell your home.

The financial stakes are high.

And since your home may have been your pride and joy for years and it’s where you live, it’s hard to look dispassionately at the property.

Many owners just don’t see their home as the market will in terms of structural condition and cosmetic shape. They overlook flaws that detract from value and overly value features and amenities that don’t contribute much to what the home is really worth.

Are instant home evaluation websites the solution?

How about taking the owner out of the equation and using a website to put a value on your home?

It’s a  beguiling idea.  These sites will feed recent homes sales and assessor data into mathematical algorithms to determine the most likely selling price for your home.

No emotions involved and you get to sit back and let the website do the work for you!

Home value websites put to the test

I tested three well known instant valuation sites to see how accurate they are (one site was Zillow.com).

I used the address of a home located in a popular I-495 Massachusetts town that sold for $527,500 several months ago.

(I know the house very well; it is a very nicely upgraded 20 year old colonial in a prime subdivision of about 60 homes.  The interior had been completely renovated by the seller.   The improvements substantially raised this home’s market value above what would be dictated just by its square foot living area and location – a tough test for an automatic on-line home valuation website.)

The instant on-line value estimates for this house that recently sold for $527,500 came back as shown below.

♦ First site: $418,000 to $576,000 as a value range, with $460,000 as a predicted selling price.

♦ Second site: $464,400 to $513,200 as a value range, with $488,000 as the predicted selling price.

♦ Third site: $715,672 – $840,136 as a value range, with no selling price point given.

All three websites produced very wide value ranges that did little to pin down the market value of the home.

The first two websites’ predicted selling prices significantly undervalued the home. The third site failed to suggest a selling price and the price range it produced so grossly overvalued the property as to be useless.

None of the three services came close to the real market value of the home, based on the recent actual selling price of $527,500.

Why instant home value websites can be wrong on price

From a purely practical point of view, we’re not dealing with pricing mass-produced consumer products that are roughly identical, such as automobiles.

Unlike cars and other consumer goods, each home presents a unique mix of location, features, and degree of upkeep and renovation that pose a serious challenge to any algorithm used to derive a probable selling price.

My test which demonstrated the failure of the three websites to price accurately may be an extreme example since it used a difficult home to price given its top to bottom renovation.

So for a more typical home in a large condo complex or in a major subdivision where the homes are mostly alike, an on-line evaluation website should be able to give you a good enough estimate to at least serve as a starting point in your quest for the true market value of your home.

Just don’t give any website your name, email address and contact information – you’re likely to be sold by the website as a “lead” to a hungry real estate agent or mortgage broker.

Inside knowledge

The inability of the three websites to properly price the test home illustrates the most salient point about pricing residential real estate: to make the best value estimate, you need to personally know the local market.   And those who really know the market develop that knowledge over time by physically getting inside area homes being bought and sold on an ongoing basis.

When you have that “inside knowledge” of the homes that have sold (and have failed to sell) in the local market you will have the necessary context with which to price homes properly.  There is simply no substitute for physically visiting homes, year in and year out, as they are put up for sale . . . and that is what Realtors® do for a living.

How Realtors® produce value estimates

To get the most reliable estimate of the market value of your property you as a home owner need to use the services of a good Realtor® .

You can gain insight into how Realtors® analyze the market value of a home by clicking on the hotlink or on the image below.  The link opens a .pdf of a home value analysis form published by a major US financial institution.

Analyze both the home being sold and the comps

See how the form carefully reviews the physical condition of the home being evaluated. The form asks the Realtor® to list any repairs that are likely to increase the home’s value in a cost effective way.  This determination requires in-depth market knowledge and long experience in the field.

The form also looks in great detail at the “comps”: the homes currently for sale and recently sold that together form the basis for the value estimate.  In all cases, the form assumes that the Realtor® has visited the homes.  It’s the Realtor’s® working knowledge of the interiors of the properties used on the analysis form that enables him to make an accurate value estimate.

Ready to discover the true value of your home?

Click the hotlink to receive my exclusive Home Value Report . . . it’s free, no cost, no obligation.

I’ll use state-of-the-art technology to custom-prepare your Report.  I’ll carefully tour your home and draw upon my many years in the field to produce a highly reliable value estimate for your property.

Ask for your Home Value Report today!

Copyright ©2011 02038.com

Some home selling expenses shouldn’t come as much of a shock.  For example, your lender expects you to pay off the mortgage at closing.

Other home selling costs in Massachusetts are less well-known and could be surprising.  One home selling expense that many home sellers are unaware of is the Massachusetts deed excise tax.

Avoid surprises at closing

To help you make informed decisions about selling your real estate, here’s a quick rundown of the typical costs and fees encountered by MA home sellers:

♦ Mortgage and other liens

You have to convey clear title to your buyer.  All liens on the property being sold must be released before or at closing. This means these secured debts must be paid before any home sale proceeds checks are cut to you.  Outstanding charges that could result in liens on the property must also be paid at closing, such as pending water and sewer charges, condo fees, and utility bills.

So tally up all these obligations and understand that they must be paid off as part of your home sale.  If you owe more on a property than it is worth (and quite a number of home owners are in this situation), you may have to resort to a “short sale”.

♦ MA deed excise tax

There is a tax assessed on most transfers of real property in Massachusetts.  In the majority of counties in the Bay State, the amount of the tax due is calculated at the rate of $4.56 of tax per every thousand dollars paid for the property.  (In other words, every $100,000 of value paid for the property results in $456 in seller tax liability.)

Some counties have a higher deed excise tax rate (Barnstable County’s tax is $5.70 per thousand) or have adopted “land bank” fees (Nantucket and Dukes Counties have a 2% land bank charge).

♦ Broker fee

According to the National Association of Realtors®, 90% of all home sales in the US in 2010 were consummated with the help of a real estate agent.

There are no set commission rates in the real estate brokerage industry.  The charges you and your agent agree to for brokerage services are typically paid no later than the closing.

♦ Legal fee

It’s a good idea to retain legal counsel to help you with the sale of your real estate.

The bank’s attorney who will handle the closing does not represent you, the home seller.  The home buyer typically covers the fee for the bank attorney.  The fee charged by an attorney to represent a seller in a typical residential real estate transaction may range from $500 to $1,000.  There may also be relatively minor document preparation and recordation fees that you will have to cover.

♦ Title 5 inspection fee

If your property is not on municipal sewer, Massachusetts requires you to have your on-site waste water disposal system inspected (septic system or cesspool are the two most common) by an approved system inspector.

Click on the image above or click the hotlink to learn more about the Title 5 laws in Massachusetts.

Inspection fees may be $400 or higher, depending on a variety of factors including digging expenses and pumping charges.  Sellers typically are responsible for such fees and for the cost of upgrading or replacing systems that fail the inspection.

Title 5  for  condo owners

Note that if you own a condominium with a number of units on a shared on-site system, you may not need to arrange a special Title 5 inspection just for your unit sale.

State law requires such shared systems to be periodically inspected regardless of the sale of any unit.   Your management company should have the current Title 5 report for your complex on file.  The local board of health should also have a copy.

♦ Smoke and CO detector inspection

If you’re selling your home, Massachusetts requires that you get your smoke and carbon monoxide (CO) detectors inspected by the local fire department.  The fire department will make sure you have the right detectors for your home and will confirm that they work properly.

The state has imposed some complex rules on smoke and CO detectors with which your home needs to comply in order to pass the inspection. These requirements vary by the age of your home and can become traps for the unwary.   Click the hotlink or the image above to access the details about the MA rules and regulations governing smoke and CO detectors.

The fire department will charge you a fee for the smoke/CO detector inspection.  This fee typically ranges between $25 to $100, depending on the fire department involved.

You’ll also have to pay the cost to install any new detectors in your home that may be needed.

♦ Costs to get your home ready for sale

Just about every home has some wear and tear issues that might become impediments to a quick, successful sale.

You’d be wise to take care of the minor defects and blemishes around your home before putting the place up for sale.  But be careful about expensive fix-ups!  You’ll likely lose money on major repairs.

Click the hotlink or the image above to access a very helpful post on home repairs that pay home sellers at closing.

Questions?

If you have any questions about the costs of selling a home in Massachusetts, feel free to contact me!  I also offer a no cost, no obligation Home Value Report that is custom made and designed to put the local market at your finger tips.

Copyright ©2011 02038.com

If you are planning on selling your home in the next year or two, focus on work that will increase the property’s sale price more than the cost of the improvement.  Let the next owner pay for the expensive upgrades!

Eliminate only “valuable faults”

Rather than fixing up your entire home from top to bottom, look at your property’s problem areas in terms of valuable and non-valuable faults.  Aim to eliminate only your home’s valuable faults and leave the non-valuable faults alone.

Valuable faults in a home are typical wear and tear items like old paint, dated wallpaper and dirty and worn carpeting.  Cluttered rooms and overstuffed closets are also highly valuable faults.  These issues cost relatively little to remedy and addressing them likely will increase the value of your home far more than what you’ll pay to get the work done.

Click the image above or click the hotlink to learn the differences between valuable and non-valuable faults.

Major repairs and renovations only if you are staying put

Pre-sale major remodeling jobs are where you can make some big mistakes.  If done only for the purpose of marketing the home within a few weeks or months after completion, most major home upgrades and remodeling projects are a really bad investment.

Take a look at the extensive research done by Hanley-Wood, Inc., the producers of the widely cited Remodeling Cost vs. Value Report.

The 2011–2012 Remodeling Report shows paybacks for common home remodeling projects to be as poor as 50 to 70 cents on the dollar – not a good idea if you are selling your home soon!

Hanley-Wood did document much higher paybacks during the booming real estate market of 2004–2006.  You can download here an excerpt from the 2005 Remodeling Report.   You’ll still see content on the Web touting the great money to be made on remodeling that draws on this old data.

But in hindsight those high paybacks were skewed upwards by rising home prices in general. The strongly inflationary dynamics of the market back then made it easy to think that the renovations themselves were contributing greatly to the increased sale price of the home.

Leave the big jobs for the next owner

Common sense these days dictates that you should remodel only if you are staying put in your home for at least several years; don’t undertake expensive renovations with an eye towards selling.

If your home is too small or needs a major facelift, you may be better just selling the home as is.  Especially if you are not handy and can’t do the work yourself, having to pay retail labor prices for a major home improvement project may inflate the cost of the work well beyond the increase in the value of your home.

Home staging

Home staging has been a staple on home improvement TV shows and on the Web for years.  A lot of people have become professional stagers and some appear to charge substantial fees for their services.

Some experts seemingly think staging is the solution to most home sale challenges.  But putting the hype aside, there are good core concepts behind the staging phenomenon and your home likely could benefit from some staging techniques.

Do-it-yourself or hire an expert?

I checked Amazon.com and found it has over 7000 titles on staging available!  DIY tomes abound, so you might want to pick up a book or two to implement some staging concepts in your home.

If you think you’d rather rely on expert help, I know some good local practitioners who are cost-effective and will travel throughout the greater I-495 region.

If you have questions

The correct steps to take regarding home repairs and upgrades that will make money at closing depend so much on your particular home.  You’ll very likely do best with your fix up efforts by getting input ahead of time from a skilled agent who knows the local market.  Please feel free to contact me with any questions about the marketing and sale of your home.  I will help you determine your best, most cost-effective steps to a more successful sale!

Copyright ©2011 02038.com

But even if you are not moving anytime soon, it makes sense to be safe!  We’ll review below to make sure your home is fire-and-CO-safe and in compliance with the MA rules.

We’ll approach this as if you are preparing to sell your home so you’ll know what to do to be ready for closing.  We cover only one and two family homes here – the rules for residences with more than 2 dwelling units and apartment buildings are more complex and are beyond the scope of this article.

Inspection by fire department

If you are getting ready to sell your home, you’ll need an inspection by the fire department serving the municipality in which your home is located.

The fire department will check to make sure you have the right detectors for your home and will test them to make sure they work properly.  Massachusetts has imposed one set of requirements for CO detectors and a different, more complex set of rules for smoke detectors.  Your home must comply with both the rules pertaining to CO detectors and those for smoke detectors in order to pass inspection.

The fire department will charge a fee for the inspection.  This fee is typically paid by the home seller.  The seller also usually covers the expense of installing any new detectors in the home that may be needed.  Note that in some short sales and REO (post-foreclosure) sales, there may be an attempt to impose these expenses on the home buyer.

Certificate of compliance

After conducting the inspection, the fire department will issue a certificate confirming the home complies with both the CO detector and the smoke detector requirements in force in Massachusetts.

This certificate is typically presented at closing to prove conformity with the law.  If your home fails the inspection, you will have to bring the home into compliance and reschedule the inspection prior to your closing.  No certificate of compliance, no closing!

 House numbers must be visible

As an aside, many fire departments use the CO/smoke detector inspection as the opportunity to enforce a state law (Massachusetts General Law: Chapter 148, Section 59) requiring your home to have clearly visible house numbers.  So make sure your home has address numbers clearly visible from the street.  If your home lacks visible numbers, no certificate of compliance!

CO detector requirements

The CO detector requirements aim to save lives. Regardless of whether you are selling or not, you should have a carbon monoxide detector on each finished living level of your home. There must also be a CO detector within ten feet of all bedrooms. Battery operated CO detectors or plug-in units with battery back-up are mandated.

Click on the image above or click the hotlink to download a .pdf file that explains how to comply with the carbon monoxide detector rules in Massachusetts.

MA smoke detector rules

The smoke detectors laws and regulations in MA impose requirements that vary based on the year in which your home received permits for construction or a major renovation.   It can seem very complicated!

The good news for most homeowners is that if your home was built after January 1, 1975 or if you own an older home that had a major renovation after that date, your property should currently be in compliance with the smoke detector rules that apply to it.

Download the pamphlet

Rather than go through all the various trigger dates and corresponding smoke detector requirements here,  I have provided a download of a very helpful pamphlet produced by the MA Department of Fire Services that does a wonderful job explaining all the laws and regulations:

Click here or on the photo above to download the .pdf file.

The only warning here is that local fire departments may impose their own requirements for smoke detectors.  So it is best to check with your fire department before scheduling your smoke detector inspection!

Photoelectric versus ionization technologies

You may have read about the new law recently adopted in Massachusetts regarding the competing technologies used in modern smoke detectors.

There are photoelectric smoke detectors . . .

ionization smoke detectors . . .

and smoke detectors that use both photoelectric and ionization technologies.

Within 20 feet of kitchens and bathrooms

The state recently imposed a new regulation that limits the type of detectors (ionization vs. photoelectric) that can be situated close to kitchen and bathrooms.  Note that this rule applies only to homes built before January 1, 1975.  Compliance with the law is supposed to be voluntary for all homes permitted for construction after that date.

For detectors situated within 20 feet of a kitchen or a bathroom with a tub and/or shower, the state requires that only photoelectric sensor technology be used.

For all detectors located beyond 20 feet of a kitchen or bathroom with tub or shower, the detector must use both technologies (dual photoelectric and ionization) or two separate detectors are required (one photoelectric and one ionization).

Again, this is supposed to be mandatory solely for homes built before January 1, 1975, but check with your local fire department to make sure your home has the configuration it wants.

You may want to be safe and employ the desired combination of technologies no matter when your home was built.

If you have questions

Speak with your local fire department if you have questions or concerns about your smoke detectors’ placement, functioning or technologies.  It is better to be safe than sorry!

Copyright ©2011 02038.com

Easy access to detailed information

Look no further! The links below will give you a lot of good, reliable information on issues pertaining to Title 5. We review how waste water and septage are handled by on-site residential treatment systems. Then we address how Title 5’s mandatory system inspection affects the purchase and sale of homes in MA. We also cover how septic system repairs and upgrades are regulated in the Commonwealth of Massachusetts by Title 5.

What is a septic system?

Click the image above or click here to download the .pdf file that shows you what a septic system is and how it functions.  The proper care of your septic system is key to its longevity and this file simply and concisely reviews how to make sure you gets many years of use out of your septic system.

Pumping your septic system

Click here or on the above image to download a helpful .pdf that reviews why periodic pumping of your  septic system is needed.  The .pdf is published by the University of Rhode Island and addresses Rhode Island law, but it is still useful for MA residents.

What is Title 5 in Massachusetts?

You can access an excellent overview of Title 5 by clicking the hotlink or clicking the image above.  The .pdf goes into great detail on how Title 5 impacts residential real estate transfers in Massachusetts and draws on content published by the Massachusetts Association of Realtors.

Title 5 inspections

Here is where things start to get complicated.  There are potential pitfalls with Title 5 inspections, many more than can be discussed in a post.  Click here or on the image above to download a .pdf on the ins and outs of Title 5 inspections in MA.

Buying or selling a home with private sewerage

Except in the limited areas of the state with high water table or lots of ledge rock close to the surface of the ground, septic systems are an affordable, ecologically sensible means of handling septage and generally work well for many years if properly maintained.  However, home buyers and sellers can sometimes feel intimidated by Title 5, so please click the hotlink or on the above image to download a .pdf that gives answers to many of the common questions about Title 5 that can arise during a home sale.

What if the system does not pass inspection?

Many systems that do not pass the Title 5 inspection need simple and relatively inexpensive repairs.  In some instances, the system will require a full replacement with a new septic system.  Click here or on the image above to download a .pdf that covers some of the issues pertaining to system repairs and upgrades.

Help paying for system upgrades

If your septic system needs a major upgrade, there are programs to help you with the cost.  Click here or on the image above to access a .pdf on loans and grants available to MA home owners with troubled septic systems.

 Specific questions

If you have questions about a particular situation involving Title 5, please feel free to contact me.  If I can’t help you I should be able to put you in touch with someone who can.

Copyright ©2011 02038.com

If the recovery in home sales continues into 2012, it may mark the Bay State’s definitive emergence from a protracted period of weak home sales that came on the heels of the expiration of the Federal home buyer tax credit programs back in 2010.

Sales on par with pre-crisis 2007

This November’s home sales are significant not just because they exceeded the weak results of one year ago.

Last month’s sales exceeded November 2008’s production and were roughly on par with sales in November 2007, before the world financial crisis.  This is an encouraging sign of the real estate market building momentum.

Pending sales also rebounding

It was also good to see that pending sales in November 2011 were up significantly.  November’s pendings equaled 2009 levels, which were inflated by demand spurred on by the Federal tax credit programs.

Franklin, MA doing well

Homes sales and pending transactions in Franklin, Massachusetts last month mirrored results statewide:

November 2011’s production was up sharply in Franklin over the depressed levels of November 2010.

Federal tax policy skewed home sales in for past few years

November sales stats over the last few years clearly show the impact of Federal tax credit policy.

The Feds got started intervening in the real estate market in 2008 with a refundable tax credit to qualifying home buyers.  The 2008 credit had to be repaid.  It was in effect a tax-free loan and proved only moderately successful in stimulating home sales.

Sales exploded in 2009

2009 saw a new and improved Federal home buyer tax credit.  Because it did not have to be repaid it proved wildly popular.  This tax credit caused widespread increases in home sales volume and prices.

The 2009 tax credit was originally scheduled to expire in November 2009.

Massachusetts homes sales in November 2009 exploded some 60% above November 2008’s sales volume as many buyers rushed to close home purchases before the end of that month.

Sales collapsed in 2010

As it turned out, the tax credit did not expire as scheduled in November 2009.

Instead the Federal government extended the credit through April 2010 and created a second homebuyer tax credit.  The second credit was also set to end in April 2010.

Home buyers responded by going on a tax credit fueled bender. Home sales surged from the end of 2009 right until the two tax credits expired April 30, 2010.

Then the party was over. By mid-2010 the real estate market was not a pretty sight.  Homes sales and prices withered.

By November 2010, Massachusetts homes sales were down nearly 35% from the year before.

Back on track for 2012?

After protracted weakness that lasted from mid-2010 well into 2011, home sales have been recovering in Massachusetts.  The strong results for November 2011 may be setting the stage for continued improvement in the local real estate market for 2012.

Copyright ©2011 02038.com

Whether you’ve lived in the region for years or are just in the early stages of relocating to MA, this Facebook page has something for you.

What can you get for . . .?

From  a $3 million+ home in Sherborn to a $300,000 split level in Hopkinton, see exactly what your money will buy right now in some of the most popular towns west of Boston . . . in real time!

If you’re thinking of moving or just want to have fun looking at dream homes, click here or on the image above to see how much home you can get west of Boston.

How’s the MA real estate market?

Keep up on current events in MA real estate and national economic trends affecting the value of your home by clicking here or on the image below:

You’ll see exclusive content and lots of charts and graphs created by Warren to help you better understand what the future may hold for what is likely your most important personal investment: your home.

Fun activities west of Boston 

Looking for interesting things to do west of Boston?  Click here or on the image below to sample interesting area events and activities that prove why so many people love living west of Boston.

Explore why Massachusetts is a very special place and how the region west of Boston has a lot to offer just about everyone!

Like the page to get updates

Please take the opportunity to like Warren’s Facebook page:

It’s an easy way to get updates from Warren.  He promises to make it worth your while – thank you!

Copyright ©2011 02038.com

Another American Century?

The Telegraph Media Group of the UK just published an interesting article on why we may all soon be reaping the benefits of a radically improving competitive position for the US in the world economy.

The article is a well worth reading.  Below are summaries of the key points made in the piece:

US energy imports may fall sharply

The huge outflows of dollars from the US to buy Middle East oil – a depressing staple of American economics since the 1970s – may end by mid-decade.  If we could keep that money home, there would be profound benefits to the US economy.

This may become a reality due to new oil extraction techniques that are opening immense oil shale fields in the US to production.

You can read more about the Bakken fields here.  There’s even a large shale oil field in Ohio!

There are also huge amounts of  natural gas in US shale deposits.  These supplies have been coming into production with a lot more on the way.  Because of this, natural gas prices have dropped significantly over the last three years and US manufacturing is  just now experiencing the economic benefits.

The US is now the top producer of natural gas in the world.  We are looking at soon becoming a major EXPORTER of natural gas – what a profound (and beneficial) change!

Manufacturing renaissance in US

America is poised to add 2 to 3 million jobs in the next 5 years as manufacturing returns to the US according to a new report by the Boston Consulting Group.  Manufacturing jobs are being “re-shored” back to the US from overseas in increasing numbers as the costs of production keep rising in China and other offshore manufacturing centers.

You can download the full report by clicking here or on the image above.

America is making some high quality products these days; we recently bought a Ford Focus SEL 5 door automobile and love it!

You can help this trend by buying American-made products as much as you can.  This can be hard to do, but well worth the effort in terms of creating a better economy for all of us.

ABC News has created a website to help you buy American.

Low fertility rates will hurt the economies of other industrial nations

New research is exposing a fundamental weakness in China, Japan and most European nations: demographics.

Low birth rates have put China and many other economic competitors of the US on a disastrous demographic path towards an aged population.  These economies may soon lack enough young workers to support all their upcoming retirees.

The US birth rate while declining is not nearly as low as China’s and Japan’s.  Demographics will help America compete in the world economy and grow its way out of its current debt problems as the 21st Century unfolds.

So there are seemingly many good reasons for optimism about your economic future as Americans – the current difficulties will end and better times are coming!

Copyright ©2011 02038.com

The startling news is contained in the non-seasonally adjusted S&P/Case-Shiller Home Price Index for Boston which climbed 2.3% in June, after leaping 2.7% the month before.

Good news tempered by seasonally adjusted results

Although the 5% jump in MA home prices should be a wake-up call to prospective home buyers who have been sitting on the sidelines, MA buyers may not need to panic yet: the seasonally adjusted version of the Case-Shiller Home Price Index for Boston shows a much less buoyant 1.7% rise in MA home prices over the same last 2 month period.

The seasonally adjusted Boston Index rose +0.69% in June after increasing nearly one percent in last May.

While these seasonally adjusted increases are respectable, they still leave Greater Boston home prices 2.3% below where they were in June 2010 and just 2.7% higher than the market low set back in April 2009 during the nadir of worldwide financial crises.

Buyers need to take heed

Whether you use the exuberant 5% unadjusted home price increase figure or the more modest 1.7% rise on a seasonally adjusted basis, the fact remains that Greater Boston home prices have risen over the last 2 months reported on by S&P.

This illustrates the danger of holding off on a home purchase hoping to buy at the absolute bottom.  Home prices tend to lurch upward and downwards in spurts and you may find yourself on the wrong end of a market move if you try to time the Massachusetts real estate market.

If you need to buy a home, by all means do so now.  Interest rates are low and there are lots of affordable homes from which to choose.

I honestly believe that in five years home prices will be a lot higher than where they are today.

You will be very happy then that you bought your home or investment property at today’s attractive prices and great mortgage interest rates!

Copyright ©2011 02038.com

July sales way up over July 2010 levels

The +19% jump in MA homes sales last month over July 2010 production levels may be an early sign of a market seeking to regain its footing.

July’s good performance comes on the heels of the announcement late last month by Standard and Poors that Greater Boston home prices recently rose for the first time in months.

The Franklin, MA real estate market likewise shared in the good sales volume of the month just ended:

Homes are selling

It is way too early for unbridled optimism, but a recent personal experience of mine lends credence to the suggestion that there is potential for Massachusetts home sellers to do well in today’s market.

I sold an appealing antique home in Westborough for full price in less than a week of marketing time!

The excellent location contributed to this quick sale, but this does prove that if you price your Massachusetts home correctly, the property will sell!

Market has a long way to go

If you are a prospective home buyer or real estate investor, let July’s sales boost motivate you to grab a good deal; there are still considerable bargains to be had.

Despite the strong sales figures for July, a look back at July home sale results for years past shows how far MA real estate has to go before regaining the vigorous activity levels of the 2003 – 2005 boom years:

July 2011′s results were only 7.2% off the pace of July 2008 and 10% below that of July 2006, so in that context today’s market activity is encouraging.

But the difference in home sales activity is a lot greater when July 2011′s results are compared to July 2005 (-31.5%) and July 2004 (-38.3%).

Smart time to trade-up or buy your first home

Clearly in light of those latter percentages, the turnover of homes in the current market is still greatly reduced.  Today’s buyers are being cautious and there are fewer of them.

For many practical reasons, that relative lack of demand means now’s a highly advantageous time to buy your first home or trade up/out to a better home.

The home of your dreams costs a lot less than it did in 2005 and mortgage interest rates are very low.  That means your cost of ownership is low.  If you own a home, you CAN sell it quickly and for a fair price; you just need to price properly and have an expert marketing representative.

So if you are thinking of buying your first home or moving to a better one, Fall 2011 looks to present an ideal opportunity!

Copyright ©2011 02038.com