Tri-County, MA Real Estate Blog

In the last month I have had a few sellers that have taken their Logan Utah homes off the market. They decided they just wanted to wait until spring time, and didn't want their homes to become stale on the market. Some of these seller's homes were on the market for some time, and I couldn't talk them into reducing their prices. The market had spoken, their homes were overpriced.

Just because you wait to sell in the spring doesn't mean your home is priced to sell.

Everyone knows in the real estate business, spring time is the busiest time of the year. There are more buyers in the spring, but there is also a lot more competition.

If your home is on the market for an extended amount of time, the worst thing you can do is take it off the market and wait to price it exactly the same a few months down the road when you are going to have twice the competition.

 

Here's Why:

• The market has already shown your home isn't priced correctly, if it was, it would have sold no matter what season it is. Price is the #1 factor for selling a home, no matter what condition it is, if it's priced correctly, you can sell it.
• Your mortgage payment isn't going to go away. Every month you stay in your home, you have to pay for your mortgage. Which means more money you pay your lien holders in interest. That money is gone forever.
• The longer your home is on the market, the more behind the market it becomes. If your home was priced competitively in the first month, but soon after you start noticing homes selling in your price range for less then what they were the month before, you have to adjust your strategy. It may have been priced right 3 months ago, but how does it compare today? The real estate market is a living creature, it changes, and no one knows where it's going until it has already been. Price your home ahead of the market.
• If you think it's going to be hard to sell your home in the winter, imagine how hard it's going to be when inventory goes up 30%.

Now, don't get me wrong, I understand you need a certain amount of money out of your home. The problem with that thinking is, the market doesn't care how much money you need out of your home. The market doesn't care that you can't sell your home for the price the market says it's worth. The market provides the price a buyer is willing to pay, and nothing more.

Take a deep breath, look at the facts, and think about your motivations for selling your home. If you can't price your home at the price the market dictates now. Why would you want to wait until the busiest time of the year, with more competition, higher interest rates and then price it at the same as you did with less competition, better interest rates, and in a market that is heading into the unknown?

What are your motivations for selling? Are you relocating? Are you trying to move into a bigger home? Are you downsizing?

If you have all the time in the world to wait out the market, that's great and you are in a unique situation, but be prepared to wait a long time. If you want to sell your home fast, price it to sell in today's market, and you will actually save a lot of money in the long run.

This market is, to be blunt, insane. No one knows what's going to happen over the next few months, and if you wait until the grass is greener on the other side, you may find that someone has poisoned the grass.

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Lisa Udy, Logan Utah Real Estate  Copyright © 2009

If you are considering buying or selling a home in Utah, you deserve local expertise and advice to be provided by a professional in real estate. Lisa Udy, is a Utah REALTOR® providing full time, professional real estate services to home buyers and sellers in the cities of Logan, Providence, North Logan, Hyde Park,  Smithfield,   Richmond,  Nibley, Lewiston, Cornish, Trenton, Amalga, Clarkston,  Newton, and all surrounding cities in the  Cache County Northern Utah area.

You may be relocating to or from Utah due to any number of reasons , whatever the case, when searching for a real estate professional outside the state of Utah, please feel free to Contact Me or call me at 435-881-3022 as I am more than honored to provide to you the contact information of exceptional agents across the U.S.

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Maybe you shouldn't buy a home.  Yep, I said it.  Even though I'm in the business to "sell" homes, some people shouldn't really buy a home now, or possibly ever. Renting may be a better option for some. Believe me, I'd much rather have a happy client than someone who regrets making the decision to buy.  

So, maybe you think you want to buy a home.  But make sure it's the right thing to do for you.  Here are SIX things to think about:  

1. Buying for the tax credit.  Isn't it great that you can get a tax credit just for buying a home? Sure it's a great motivator (I wish it was there when I bought, as do thousands and thousands of other home owners), but it shouldn't be the sole reason to buy a home.  There are so many other reasons.  Ask yourself whether you still want to buy a home if you miss out on the credit. If you don't, you probably don't want to buy one anyway.  

2. Can only afford a fixer but cant fix it. With many bank owned or distressed sales there is inventory available, often with major repairs needed.  Just because you can afford the sales price doesn't mean you can afford the repairs.  Before jumping into a "fixer," make sure you have the money, or resources, available to fix it.  Otherwise, don't buy it.  

3. It's "time." Reached a certain age? Got married?  Had a baby?  There are many life milestones where we are "supposed" to buy a home.  Before jumping into home ownership, make sure that it's because you want to buy a home and not because of external or societal pressures.  

4. You make enough to pay monthly bills, but that's it.  If you live paycheck to paycheck you probably want more financial security before buying a home. Home ownership involves much more than making your monthly mortgage payment.  There are always unforeseen expenses, plus if your income is reduced or lost, and you don't have extra funds set aside, you could also become a foreclosure statistic.  

5. Not motivated to maintain or pay someone to maintain your home.  When you rent it's so easy to call your landlord to deal with a home issue.  Once you buy it can be shocking to realize you have no one to look to except yourself.  YOU will be solely responsible for your home.  Even if you live in a condo complex, you will have things that you have to take care of.  And you have to do it or pay someone to do it. If this isn't appealing it probably is better to rent.  

6. See it only as an investment.  Before the market changed many buyers bought so they could make a bunch of money as prices went higher.  Didn't work out so well for some.  Before then people bought homes with the intention of living in them as their home for a long time and not necessarily as an investment.  Times have changed and people buy and sell every few years, so of course, home ownership and what it means changed too.  Unless you're really an investor, however, buying only to increase your net worth may not serve you well.    

Deborah Engel, Prudential California Realty, is a recognized San Diego and Carmel Valley Realtor for top client satisfaction.  If you'd like to learn more about Deborah, visit her website, www.PropertyByDeb.com, email her, Deb@PropertyByDeb.com, or call her at 858-829-1989.

As you embark on your search for the perfect home in Massachusetts you may wonder what the process will entail.  How long will you look and how many homes will you view before finding the right one? 

A recent Wall Street Journal article showcased the epic home search of Lidia Pringle.  In her quest for her dream home in Tiburon, California, Ms. Pringle shopped for over two-and-a-half years and looked at a total of 298 homes.  

This methodical home hunter kept meticulous files and a careful watch on the market during the entire time.  Her tenacious and painstaking search was so comprehensive that local Realtors® were  asking her advice on the latest inventory.  

One of the things that this home seeker managed to do was to create an unpaid second job for herself in trying to find a home.  But, this is something that you don't have to do. 

Buying a home is not something you do every day, so, why should you have to make a career out it?  

A Massachusetts buyer broker who knows the area you are interested in and has familiarity with the latest pricing trends is your best bet for finding your perfect home in Massachusetts.  

The National Association of Realtors® says that the average buyer previews 10 to 12 homes before buying.  And, working with a professional who knows the market can save you a considerable amount of time.  

You probably already have a job. Why not rely on someone whose full-time business is to look for homes? 

 Copyright 2009 - Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230

Buyer Broker for Massachusetts Since 1992  - Always in Your Corner

MLS Property Search With No Registration Required

Ashland, Holliston, Hopkinton, Natick, Newton, Northborough, Framingham, Shrewsbury, Sherborn, Southborough, Sudbury, Wayland, Westborough      

 

THERE IS NO SUCH THING AS A "BAD HOME INSPECTION".

HOME INSPECTIONS ARE IMPORTANT FOR HOME BUYERS, HOME SELLERS, LISTING AGENTS AND BUYERS' AGENTS. 

THE HOUSE WILL BE UNDER A MAGNIFYING GLASS.  A good home inspection means that the home inspector examines every "nook and cranny" in a house and tests all systems and components. 

A HOME INSPECTION IS USUALLY A CONTINGENCY ON THE CONTRACT.  If the home inspector discovers and documents serious structural, systems, etc. defects, the seller is usually given an opportunity to cure or the buyer can void the contract.  If the home inspection finds the home in good condition with no structural or system defects, the contingency will expire or the buyer will remove it. 

HOME BUYERS BENEFIT FROM A HOME INSPECTION by learning about the condition of the various components of the house from the top to the bottom and all features included in the structure and grounds. 

HOME SELLERS BENEFIT FROM A HOME INSPECTION when unknown defects are discovered and not passed on to an unawares buyer.

LISTING AGENTS BENEFIT FROM A HOME INSPECTION by avoiding the risk of not knowing of a significant financial, health or safety defect that would affect the buyers before, during and after closing. 

BUYERS' AGENTS BENEFIT FROM A HOME INSPECTION by making sure that defects are discovered and the seller given an opportunity to cure or the buyer isn't forced to accept the property with significant financial, health or safety defects. 

DON'T BECOME A DEFENDANT.  Home inspections provide risk reduction for real estate agents.  Many lawsuits involving buyers and sellers are related to property defects discovered after closing.  When buyers litigate property condition and lack of disclosure of defects, the agents are usually included in the litigation as a defendant.

FAR TO MANY SELLERS BELIEVE THAT "IF THIS HOUSE IS GOOD ENOUGH FOR ME, IT'S GOOD ENOUGH FOR YOU".  Sellers also too often believe that the house has no defects unless the buyer finds them.  Giving some sellers the benefit of the doubt in that they have delayed maintenance to systems, roofs, appliances, etc. for so long, they fail to realize that most contracts require that the house be sound and the systems operate normally. 

FAR TO MANY BUYERS BELIEVE THAT, IF A DEFECT IS FOUND, THAT THE SELLER MUST MAKE A REPAIR OR REPLACEMENT.  Not so.  The buyer can inspect.  The seller and agree or refuse to repair.  If the seller doesn't repair serious defects, the buyer doesn't have to take the property. 

NOTE.  If a material defect is discovered, the seller and their agent may, by law, be required to disclose that defect to future buyers. 

EXAMPLES OF DEFERRED MAINTENANCE

(1)  An air conditioning system that will not cool a house below 85 degrees is not "operating properly" although the system is running and probably running and running.

(2)  A roof that has three layers, is missing tiles and leaks on rainy, windy days is not "operating properly" although it may not always leak. 

(3)  A basement foundation that is only wet on rainy days is not "operating properly" although it may be dry when the buyers toured the home. 

(4) A furnace is not "operating properly" if the filter has not been changed for the past 4 years.  The strain on the furnace has caused it to lose significant life and merely replacing the filter doesn't provide better functionality for the motor.

WHAT DID THE SELLER DISCLOSE??

Defects (1) through (3) above are simple to address. 

     (1) The mere "servicing" of such a system is not adequate because the wear and tear on the system by overworking it while it is not operating properly has caused the system to lose value.  Did the seller disclose to prospective buyers that they have not had the 20 year old air conditioning serviced for 11 years. 

Tip:  If a seller is using several fans in the property on warm days, this is a RED FLAG.

    (2)  A roof that is not leaking when the home is inspected is a difficult matter to address in a home inspection notice of defects.  Although the missing tiles may be replaced, that doesn't make the roof newer or remove the old roofs. 

Tip:  When a roof clearly is beyond the useful life, condition the Contract of Sale on the seller replacing the room prior to settlement.  New roofs are often difficult to negotiate in a repair addendum.  It's often better to simply make a new roof a condition of the contract unless, of course, the house is a good buy and the buyer is financially prepared to replace the roof following settlement.  Tiles of several different colors, curled and swollen tiles should be a RED FLAG.

     (3)  Sellers may disclose that the house has water penetration on rainy days, but rarely disclose the degree.  Sellers also do not usually disclose structural defects that would cause water penetration because they may not understand the cause.  Since much water penetration is caused by poor grading of the grounds surrounding the house, trying to address the cure for a wet basement may be difficult. 

Tip:  Home owners with empty basements, stored items on shelving, or "high water marks" on the basement walls, or freshly whitewashed basements may be a clue that water penetration has been a problem.  A "high water mark" is always a RED FLAG.

DEFECT (4)is more difficult, but a serious defect nonetheless.  Unless a buyer is prepared to replace a heating system following settlement, when the home inspectors documents that the heating unit needs "servicing", it's a good idea to determine if the unit has been properly serviced in the past. 

Tip:  No service tags, dirty or missing filters, cracked furnace walls, rusty inner parts, etc. should be a RED FLAG. 

Time and space doesn't permit the elaboration of other "tips to deferred maintenance" such as

Ovens whereby the "self clean" feature doesn't work.  No person should have to clean an oven in the 21st Century.  Oven/Range replacement is usually the only cure. 

Improperly wired panel boxes.  This can be a serious SAFETY HAZARD.  Write it as such and make sure that any work is done by a licensed electrician.

Loose stair railings.  VA and FHA appraisers will often cite this serious SAFETY HAZARD.

Home buyers in rural areas should always require documented well and septic permits, inspection, acceptable GPM for water and maintenance records for septic systems.  These systems are critical to the functionality of the home and expensive to repair. 

Tip:  The seller "doesn't know" when the septic tank was last pumped.  The seller "doesn't know" the GPM output for the well.  The seller "doesn't know" where the drain field is located.  All RED FLAGS.

WHAT IS A GOOD HOME INSPECTION??  IF A HOME INSPECTOR DISCOVERS ANY OF THE DEFECTS ABOVE OR OTHERS, that is a good home inspection.  It may avoid the seller being sued after settlement.  It will surely

The last thing that a seller, buyer's agent or listing agent needs is to discover a MATERIAL DEFECT after settlement. 

Tip:  If the home inspector discovers an undisclosed defect, roof, system, structure, etc. THE SELLER SHOULD AMEND THE PROPERTY CONDITION DISCLOSURE TO REFLECT THE FACTS AND KNOWN DEFECTS IN THE PROPERTY. 

WHAT ABOUT THE LISTING THAT SAYS "AS IS".   All resale homes are sold "AS IS".   Notice that the term "AS IS" isn't referenced in any of the above subject to terms and conditions of the home inspection contingency.  Don't let a seller or listing agent rely on the crutch of "AS IS" to avoid responsibility for property defects.  "AS IS" is conditioned on a satisfactory home inspection. 

If a property is technically an "AS IS" sale, as are most REO, foreclosure, bank owned and short sale properties, the "Property Condition" paragraph in the Contract of Sale will be deleted by an "AS IS" addendum.   Often these contracts permit a home inspection "For Buyers Information Only".  Buyers need to know the difference.

• FOR HOME BUYERS.  Enjoy your newly purchased home, but first, know what you're buying.
• FOR HOME SELLERS.  Maintain your home and there shouldn't be any surprises from a home inspection.
• FOR LISTING AGENTS.  Known defects must be disclosed in most states by the seller and their agent.
• FOR BUYER'S AGENTS.  Don't avoid tough home inspections.  Buyers don't need to buy a Pig in a Poke.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.  Serving home buyers in Maryland and Northern Virginia.