merrimackvalleyre.com

Did you know you are allowed to give a tax free gift up to $13,000 to as many individuals you want? This could be used towards a down payment.

This idea was taken from a recent article I came across on forbes.com. Here's a link to the full article. 5 Ways to Help Family Pay for Housing.

According to The Warren Group Foreclosure starts nearly doubled in February 2012 compared to starts from February 2011. For more information, check out their recent article.

Most markets in the Merrimack Valley area have seen a reduction in the number of post foreclosure listings over the past 12-18 months which has led to more balanced inventory levels. This, along with stable demand in many towns, has led to the stabilization in values in many areas. An increase in post foreclosure listings could create an increase in inventory levels and result in a possible decline in values. This is something to keep an eye on as the busy spring market approaches.

On the other hand, this could be a good opportunity for investors to increase their real estate holdings or for first time buyers and those considering a move to get off the fence. Remember, the FHA 203K loan program is a great way to take a foreclosure in need of some updating/repair and turn it into your dream house. For those of you looking to go green, the FHA EEM program allows you to finance the cost of energy efficient improvements into the loan (ie. new windows; insulation; new furnace; etc.).

If you have any questions about what's going on in your market, feel free to contact me.

What’s the difference between an Appraisal & a Competitive Market Analysis (CMA)?

An appraisal is a formal opinion of Market Value provided by a licensed or certified real estate appraiser as of a specific point of time known as an “effective date” for a specific purpose (also known as the “intended use”). The effective date may be the day the appraiser inspects the property or as of a retrospective or prospective date. An appraisal is an independent 3^rd party opinion which requires impartiality towards the results and the property owner. This opinion is supported by market research and analysis of neighborhood data including: demand; recent sales; listings; expired & cancelled listings; rental rates; rental demand; land value; construction costs; proximity to schools, shopping, and transportation; employment rates; environmental concerns; etc.

A CMA, sometimes referred to as a Broker Price Opinion (BPO), is a less formal analysis of market trends used by a real estate agent or broker in order to help a seller set a reasonable asking price or a buyer make a reasonable offer. While an appraisal is a detailed report which often contains 25-40 pages in the report, a CMA is a less detailed report which is often less than 10 pages in length.  CMA’s are a useful tool for an agent/broker to help their seller set a reasonable expectation for the sale by understanding current neighborhood conditions. The CMA often includes recent sales of similar homes in the neighborhood, as well as current listings of similar homes. Understanding the relationship of current inventory levels versus absorption rates (how long it will take to sell the current inventory based on current demand in the area) will allow a seller to set a reasonable asking price based on their desire to sell. A seller who needs to move quickly may choose to price their property more aggressively than someone who wants to sell, but is more flexible with no specific time table for a move.

For some unknown reason, proper training on how to analyze market data is not incorporated into the educational requirements to obtain or renew a real estate sales or broker license in Massachusetts.  Contrary to popular belief, there is no book of adjustments which states a bathroom is worth “X” or a garage is worth “Y.”  You’ve probably heard the saying real estate is all about location, location, location. Because markets vary, these adjustments must be extracted from the market by using paired sales analysis or other techniques, and many agents simply lack the training required to complete such an analysis.  As a result, many agents do not know how to properly prepare a CMA, and these reports should not be relied upon for anything other than establishing a listing price or offer price.

A.B.C.D. Real Estate Services provides both Real Estate Appraisal Services and Real Estate Brokerage Services. While our market knowledge aides us in both arenas, these two types of services are unique and distinct services. Due to potential conflict of interest issues we cannot provide both services on the same property.

Our Appraisal Services require impartiality. These services are provided to a customer, and require the appraiser to provide an impartial opinion with no fiduciary duty to the customer.

Our Brokerage Services are provided to a client to whom we have a fiduciary duty which include:

1. Obedience: The Broker cannot exceed the authority given by the client and must follow all lawful instructions.
2. Loyalty: The Broker must put the client’s interest ahead of all others, including the Broker’s interest.
3. Disclosure: The Broker must disclose affirmatively all information concerning the transaction which might affect the client’s best interest.
4. Confidentiality: The Broker cannot disclose confidential information of the client to others.
5. Account: The Broker is required to promptly report all money received and paid out and, upon request, to render an accounting and return all money and property to the client.
6. Reasonable Care: The Broker is required to protect the client from foreseeable risks of harm; exercise care and competence to ensure the transaction of business to the best advantage and to recommend expert advice or assistance when the client’s needs are outside the scope Broker/Client relationship

John LaBelle EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE

 

John LaBelle of RE/MAX Prestige in Chelmsford has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In the last 30 days there have been 49 Foreclosure Notices published in the Lowell Sun. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

“This CDPE designation is invaluable as I work with sellers and lenders on complicated short sales,” said LaBelle. “It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as John with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales. “Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

For more information about CDPE designation or to find a certified distressed Realtor in your area, please call 1-800-482-0335 or visit CDPE.com


 

If you are using site's like Zillow®, the answer is they are not accurate at all.

You see, sites like Zillow® pull their information from public records which can be wrong. For instance, the town data for my home says I have 4 bedrooms when I really only have 3. Wrong bedroom counts, bathroom counts, and total living areas lead to innacurate calculations on these sites. Zillow® lists their accuracy on their page. Scroll down to the bottom of the page and click on the "zestimate® values and accuracy" link.

I did this recently, and here's what I found for my area.



If you want accurate values, you need accurate data. If you don't want to pay for an appraisal or talk to a agent but would like to keep track of values in your neighborhood, I have a FREE solution for you.
 
Below is a screen shot of one of my Market Snapshot Reports.




Sign up today to start receiving your FREE Market Snapshot Reports with no obligations by clicking on this link Free Market Snapshot Report

Eight Insider Tips For Home Buyers

1. Be a Pre-Approved Buyer: A pre-approved buyer always has the advantage in an offer situation. Becoming pre-approved is very easy: you complete your loan application with a credit check prior to beginning your home search process. Pre-approval means that you have actually been approved for the purchase by a lender, which gives you the edge in home purchasenegotiating.

2. Beat The Competition to The Best New Listings: The search process can be both fun and trying. You will notice that some homes sell very fast and others hang around for long periods of time. The best homes at the best prices sell fast. Keeping on top of this is essential. Connect with a professional Real Estate agent that knows the market and keeps you updated.

3. Do The Research: Make yourself a "home value expert." Investigate the areas and price ranges for the kind of home you are looking for. Get a good idea of the price ranges these homes sell for and how long the market time is for them. Your agent is a great asset here.

4. Have Your Offer Presented in Person: Your agent represents you and your best interests. To adequately do this, make sure that your home offer is presented by them directly to the seller. The personal touch will give you the edge. Your agent also might pick up critical information during this meeting.

5. Prove That You Are a Serious Buyer: The best way to accomplish this is with strong earnest money. This might mean that you put 5% or more down to get the sellers attention.

6. Don't Go Crazy: Even in a hot market, be cool and calculated with your decisions. A knowledgeable agent can really help you here. Your home purchase may be your single largest investment. It is important to make sure that you get the best deal possible. Overpaying now will make it harder to get your value back when you sell.

7. Keep Your Offer Simple and Clean: Make sure that your contract to purchase is simple, clean and not bogged down with unnecessary contingencies, especially repairs. Keep the time frames of repairs and responses to a minimum. The cleaner your offer, the more interested the seller will become. This may help you purchase the property at the best price.

8. Don't Wing It Alone: What you need most in today's complex marketplace is an experienced and professional real estate agent who represents your interests only. No matter how heated the competition or the negotiations, a professional agent will represent your best interests, keep you from paying too much and help you maximize your investment. Are you looking for an agent to represent you and your best interests? In 99% of the cases, you the home buyer, pay nothing for a professional agent. Their fees are typically paid for by the seller.

Contact us today and find out how we can help you find the most house for the best price.

The winter is a time we often see our utlitiy bills increase, and I'm always on the look out for ways to lower my bills.  I came across this interesting article with 10 common heating mistakes, and I thought I'd pass it along.
10 Mistakes People Make with Heat

If the Patriots score, you could win big.

Although the number of sales declined slightly for the second straight year, sales data for the Town of Chelmsford indicates values have stabilized over the past 12 months.

 

All Single Family Sales	2005	2006	2007	2008	2009
Average Sale Price	$397,804	$405,270	$376,931	$358,561	$347,701
Median Sales Price	$373,700	$375,500	$357,500	$325,000	$330,000
Number of Sales	300	222	251	243	223
Averge DOM	76	107	122	117	104

 

 

The town continues to be attractive to first time buyers, and demand for Ranch and Split Entry style homes has remained fairly stable over the last 2 years thanks to near historic low interest rates and the First Time Buyer Tax Credit. In 2008 there were 92 sales of Ranch and Split Entry style homes in town (37.8% of all single family sales), and there were 88 in 2009 (39.6% of all single family sales). Values of Ranch and Split Entry style homes have also shown signs of stabilization over the past 12 months.

I just wanted to let everyone know HUD just announced, effective February 1, 2010, they are suspending the FHA 90 Day Anti-Flipping Rule.

With certain exceptions, such as HUD-owned and bank-owned properties, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. However, beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors, providing access to a broader array of recently foreclosed properties.

Under the temporary waiver, all transactions must be arm's-length. In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.

For more information about these changes please visit: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-011

If you, or anyone you know, is lookiing for an investment property, please do not hesitate to give me a call.