Expanding Boston’s Future

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I had the privilege of attending a luncheon this week with Boston Mayor Marty Walsh discussing his plan for the city of Boston during his term. With multiple hot projects happening around the city, such as the Ink Block in the South End, Millenium Towers in Downtown Crossing, the revitalization of the Fenway and the booming Seaport/Innovation district, Walsh also wants to focus his attention on other neighborhoods as well. Neighborhoods like Dorchester, Hyde Park and Roxbury are seeing a spike in development due to his efforts and he is also hoping to turn his sights to the tourist favorite, Quincy Market, in hopes of updating some of Boston’s traditional hot spots. The Boston Redevelopment Authority, or the BRA, under Walsh’s leadership has turned a corner with new cabinet appointments and requested audits to determine the program’s strengths and weaknesses. The Mayor hopes to stop the developer favoritism that has been rumored for years and create a fair, more equitable approval process for projects of all sizes in the city. Housing is still a hot topic and the need for affordable housing is on the Mayor’s agenda. He is hoping to create over 17,000 jobs with the plans to develop over 650,000 new affordable housing units in the next few years. Due to the saturation of the luxury market, Boston is behind in the number of available affordable units.

We even had the opportunity to discuss the potential Olympic Bid for the City of Boston. Walsh is very excited at the thought of bringing the games to Boston but is very cautious in the amount of building and infrastructure that needs to happen now in order to accommodate an event of that magnitude. He is requesting the help of private entities versus “mortgaging Boston’s future” on something that may not pan out. However, Walsh did point out that the boost to the economy to even be considered as a potential city is welcome, referencing Chicago’s success in the last round of Olympic bids. In addition, Walsh’s top priority is to nurture the growth of Boston’s economy through recruiting new business while cultivating the more established businesses as well. He is also planning on expanding the number of pre-kindergarten seats available in Boston public schools. The Mayor’s agenda is long but he is determined to bring positive change to the City of Boston.

 

 

 

7 Steps to Buying a Home

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1. Define your needs.

Congratulations on your decision to purchase a new home! Before you begin your search,  you need to define what kind of home and neighborhood would best suit your desires and needs. Then, make a “must-have” list for qualities in your future home that are non-negotiable. To further define your needs, you may want to divide your lists into negotiable and non-negotiable items, so your agent can operate with some flexibility when scouting for homes on your behalf. Share this list with your real estate agent. The more specific your criteria is, the more effective your home search will be.

2. Get Pre-approved.

Now that you know what you want in a home and neighborhood, you need to find out what you can truly afford. Ask your real estate agent for a list of trusted mortgage professionals to begin the pre-approval process for a home loan.

Your pre-approved status lets the seller know:

  • You have gone through an extensive financial background check.
  • A lender is willing to do business with you.
  • The likelihood of unexpected obstacles regarding financing is minimal.

3. Begin the Search

Now you are ready to embark on your home search. The most efficient route is to allow your real estate agent to do the initial scouting for you. Using your “must-have” list as a guide, your agent will alert you of new and existing listings that have strong potential. If these listings pique your interest, your agent will arrange home tours at your convenience. Many agents send alerts via MLS email – sometimes as often as daily, depending on the available inventory in your market.

You also can do some research on your own. Read local real estate publications, contact your local neighborhood associations, visit the local chamber of commerce, surf the Internet, or drive around your favorite neighborhoods. While these methods certainly can lead to your dream home, it’s important to note that 82 percent of home sales are the result of agent connections.

4. Make an offer with your Buyer’s Agent

When you’re ready to make an offer on a home, your buyer’s agent will help you determine the offer price by reviewing recent sales of homes similar in size, quality and amenities called “comps.”  With your input, she will draft a written contract that outlines what needs to be done by both parties to execute the transaction. If the seller accepts the offer, the document becomes a binding agreement, so it is imperative that you carefully review it with your agent. It’s important to note that if the seller changes any aspect of the offer, it is not a binding agreement until the buyer agrees to the seller’s changes.

Strike a deal.

Sometimes, you get lucky and the seller accepts your offer as is. However, in most instances, the seller will make a counteroffer. This is where your real estate agent’s experience in negotiations will be invaluable. Keep in mind almost everything is negotiable when you are buying a home. This can give you a great deal of leverage in the buying process – that is, if you have adequate information and you use it in an appropriate manner.

Remain in close contact with your real estate agent so you can quickly review any changes from the seller. Remember: Bargaining is not a winner-take-all deal. It is a business process that involves compromise and mutual respect.

5. Prepare for the closing with your Attorney and Buyer’s Agent.

When an offer becomes a binding agreement, your agent will help you tackle the checklist of action items that you, as the buyer, have agreed to perform prior to closing. Depending on how the responsibilities are divvied up in the agreement, this is typically when you will:

  • Conduct a home inspection.
  • Get an appraisal and finalize your financing.
  • Secure title insurance.

Having these procedures done in a timely and professional manner is a must, as any delays could threaten a successful closing. Your agent will serve as your advocate, helping to coordinate activities and making sure the vendors have access to the property to perform their jobs.

6. Close the deal.

Congratulations! The closing is where home ownership is legally transferred from the seller to the buyer. It is a formal meeting that most parties involved in the transaction will attend. Closing procedures usually are held at the title company’s or lawyer’s office. The closing officer will coordinate all the document-signing and the collection and disbursement of funds. A few days before your closing date, your lender will send a final closing statement that outlines your closing costs, if applicable. Your real estate agent will review this document with you to ensure its accuracy, as well as help you gather any necessary documentation that you’ll need to bring to closing.

7. Celebrate!

Drones fly with Massachusetts Users

Photo by: Jim Michaud

By Jordan Graham

Some Bay State businesses are already putting drones in the air to boost their bottom line as the Federal Aviation Administration hints it may be open to some commercial uses of the hovering craft.

“It’s a novelty now, but I think it will become more of a mainstay,” said Missy Cummings, a drone expert at MIT. “These drones can really improve business processes.”

Lexington Realtor Jonathan de Araujo has been using a drone to take aerial shots of properties he is listing since last summer, and the birds-eye view has quickly found a place in de Araujo’s real estate arsenal.

“The end result is just unparalleled,” he said. “Everything we can do to give a more positive impression means more people at the open house. The idea is to just give a better, more positive, a more thorough impression of what you’re looking at.”

De Araujo uses his drone, a model outfitted with a camera and available to any consumer, to give his homes more context, including offering a complete view of a backyard, or showing how close the park down the street is.

“When you’re taking stills from ground level, you’re seeing one angle, one shot,” he said. “It just made sense to add that extra dimension.”

Last week, the FAA said it is considering letting seven movie and television filming companies use drones. Now, the only commercial drone flights permitted by the FAA are those by one company off the Alaskan coast. The FAA has been working for the past decade on potential safety regulations that would allow widespread commercial drone use, but those regulations have been repeatedly delayed. Most recently, the FAA has said it will release proposed regulations for operating small drones by November. That would be followed by a potentially yearslong process to finalize the regulations.

Dan Kara, a robotics and drone industry analyst with Myria Research, said the FAA is under pressure to clarify the guidelines because many, from individual real estate agents to Amazon.com, are using or expressing interest in making drones part of their toolkit.

“It’s happening organically,” Kara said.

Marcella Hoekstra, who runs wedding video company Heirloom Pictures, is planning on buying a drone soon.

“I’ve seen what these drones can do, and I’ve seen some really beautiful, sweeping shots of landscapes and architecture,” Hoekstra said. “It’s a wonderful way to explore … and give the bride and groom a bird’s-eye view.”

Kara said some are looking to drones for the novelty — a club in Las Vegas is delivering high end champagne to its high-rollers by drone.

But others are advocating for the permitted use of drones for search and rescue missions, to get a good view of wildfires and to help farmers track their crops.

“There’s no question drones can revolutionize (agriculture),” Cummings said.

5 Myths and 5 Truths about Selling Your Home

Seems everyone has advice to offer about the real estate market. Unfortunately, not all that unsolicited information is true.

Misinformation can waste your time and cost you money. When it comes time to list your home, you’ll need to do your research so you can separate fact from fiction. Real estate agents participating in Zillow’s 2014 Home-Selling Season Survey identified five top real estate myths; the debunking of them should put you on the fast-track to selling your property:

Myth No. 1: I need to redo my kitchen and bathroom before selling.

Truth: While kitchens and bathrooms can increase the value of a home, you won’t get a large return on investment if you do a major renovation just before selling.

Minor renovations, on the other hand, may help you sell your home for a higher price. New countertops or new appliances may be just the kind of bait you need to reel in a buyer. Check out comparable listings in your neighborhood and see what work you need to do to compete in the market.

Myth No. 2: The outside of my home isn’t as important as the inside.

Truth: Home buyers often make snap judgments, often based simply on a home’s exterior. Therefore, curb appeal is very important.

“A lot of buyers I work with have done some preliminary online searches or they’ve driven by properties before they even enlist my services,” says Bic DeCaro, a real estate agent Westgate Realty Group in Falls Church, VA. “If a property looks bad, if the yard is cluttered or the driveway is all broken up, there’s a chance they won’t ever enter the house – they’ll just keep driving.”

Curb Appeal

The great news is that it doesn’t cost a bundle to make some big changes to your home’s exterior appearance. Start by cutting the grass, trimming the hedges and clearing away any clutter. Then, for less than $50, you could put up new house numbers, paint the front door, plant some flowers or install a new, more stylish porch light.

Myth No. 3: If my house is clean, I don’t need to stage my home.

Truth: Clean and tidy is a good first step, but as more and more home sellers across the country have enlisted the services of professional home stagers, the bar has risen. It’s not enough anymore to toss dirty laundry in the closet and sweep the front steps.

Stagers strive to make homes appeal to a broad range of tastes. They can skillfully identify ways to highlight your home’s best features and compensate for its shortcomings. A stager might, for example, recommend removing blinds from a window that has a great view or replacing a double bed with a twin to make a bedroom look bigger. It’s common for stagers to de-clutter and depersonalize homes by putting furniture and family photos into storage. Or, if you’ve already moved out, a stager can move in furniture to give potential buyers a sense of how rooms might be used.

You don’t have to hire a professional stager. But if you don’t, you better be ready to use some of their tactics to get your home ready for sale.

If staging is a trend where you live, an unstaged house will pale when compared to others on the market. And if staging is not yet something buyers in your area are used to seeing, your results will be even more impressive.

Myth No. 4: Granite and stainless steel appliances are no longer “in.”

Truth: The majority of home shoppers still want granite counters and stainless steel appliances. Quartz, marble and concrete counters also have wide appeal.

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“Most shoppers just want to steer away from anything that looks dated,” says Dru Bloomfield, a real estate agent with the Realty ONE Group in Scottsdale, AZ. “When you a design a space, you need to decide: ‘Am I doing this for myself or for resale?’ If you’re not planning to move anytime soon, you can decorate any way you like. If it’s likely your house will be going on the market within the next couple years, stick to elements that have mass appeal: neutral paint and tile colors, matching appliances or top-of-the line appliances.
“I recently sold a house where the kitchen had been remodeled 12 years ago and everybody thought it had just been done because the owners had chosen timeless elements: dark maple cabinets, granite counters and stainless appliances.”

Myth No. 5: Home shoppers can look past paint colors they don’t like.

Truth: Moving is a lot of work and, while many home buyers realize they could take on the task of painting walls, they simply don’t want to.

That’s why one of the most important things you can do to update your home is to apply a fresh coat of neutral paint. Neutral colors also help a property standout in online photographs – which is where most potential buyers will get their first impression of your property.

Hiring a professional to paint the interior of a 2,000 square-foot house likely will cost $3,000 to $6,000, depending upon labor costs in your region. You could buy the paint and do the job yourself for $300 to $500. Either way, if a fresh coat of paint helps your home stand out in a crowded market, it’s probably a worthwhile investment.

 

Tight housing market drives rising bids

Tight market drives escalation clause use

Katrine and Stephen Campbell were up against stiff competition from 10 other bidders for the Reading home they wanted to buy. So the couple tried an aggressive strategy to give them an edge: Instead of making a specific offer, they promised to top whatever turned out to be the high bid by an additional $5,000.

The increasingly popular tactic, known as an escalation clause, worked. The Campbells bought the four-bedroom house late last year for $597,000 — or $18,000 above the original list price, including the extra $5,000.

In a sign of how competitive the Boston-area housing market has become, the maneuver is becoming part of the area’s bidding war landscape, brokers and other real estate executives say. Some report there hasn’t been this much escalation clause activity since the last house-buying frenzy 10 years ago.

There are several kinds of escalation clauses, but all involve an agreement to top the high bid on a home by a set amount of money — often $5,000, and sometimes more.

Potential buyers who offer such arrangements usually insist on a brief amount of time, an hour or less, to follow through or to back out once a top bid has been established.

Skeptics say the clauses are potentially risky and a needless ploy that could backfire by alienating some sellers. It can also lead to disputes about whether buyers or sellers have complied with escalation clause terms, they say.

“It’s a tactic that’s not going to appeal to everyone,” said Peter Ruffini, a regional vice president at Jack Conway Realty in Norwell and president of the Massachusetts Association of Realtors.

“It sounds a little risky to me. It sounds sort of like issuing a blank check to sellers.”

But brokers who use escalation clauses say the tactic is legitimate and works. They say it’s no blank check if the proposal is crafted correctly.

“I use them all the time now,” said Ryan Wilson, a real estate agent at Chestnut Hill’s Wilson Group, affiliated with Keller Williams Realty.

Wilson said about 75 percent of the offers he now crafts with potential buyers include escalation clauses.

“Escalation clauses are not yet that widespread with other agents, but they’re gaining popularity,” Wilson said.

When Sara Barbuto and Kate Marciniec were looking for a home, they engaged the same broker who represented the Campbells: Ramsay Fretz in the Boston office of RE/MAX Leading Edge, a firm considered aggressive in its use of escalation clauses.

But the house hunters employed a slightly different strategy once they set their sights on a three-bedroom home in Melrose, which was listed for $449,000.

Barbuto and Marciniec thought the asking price was too high because the home needed repairs.

So they bid $25,000 below the list price, the same amount offered by another potential buyer. Then the seller asked the two bidders for their “best and final offer.”

Instead, Barbuto and Marciniec provided a written escalation clause. They promised to beat the other bidder by $5,000, if given an hour to decide whether the price was right. The tactic worked, and they bought the home for $443,000.

“It’s a very interesting negotiating concept,” said Barbuto, who, with Marciniec, had previously bid on seven other homes without using escalation clauses.

Each time they lost out to higher offers.

The use of escalation clauses raises an obvious question: Couldn’t a seller make up a fictitious high-bid figure to command even more money from someone promising to top the best offer? That’s possible but unlikely, brokers say.

Fretz and other real estate agents say they always include a written provision requiring sellers who agree to an escalation clause to produce copies of “bona fide offers” from other bidders and preapproved mortgage documents, with the names of other bidders blacked out.

In practice, the brokers say, they usually don’t ask for documented proof because they know and trust agents representing sellers.

Despite the growing popularity of escalation clauses, some brokers question whether they are really needed very often.

In the event of a bidding war in which buyers offer the same price, sellers can always demand a “best and final offer” from bidders — and that’s it, said Tom Grimshaw of Gibson Sotheby’s International Reality in Boston.

Sellers can then even proceed to a second best-and-final round if there’s another tie, he said.

Brian Montgomery, an agent at Charlesgate Realty Group in Boston, said some sellers are caught off guard and even upset when a bid includes an escalation clause. Some refuse to deal with such bidders.

“The seller figures, why not just give me your highest offer?” Montgomery said. “The tactic can sometimes do more harm than good for a buyer.”

Still, Montgomery said, there are times when he has used escalation clauses over the past year, particularly when a buyer is really intent on purchasing a home.

Ashley Stolba, an associate counsel at the Massachusetts Association of Realtors, said a seller is not legally required to accept an escalation clause offer.

Under Massachusetts law, sellers have wide discretion to reject or accept offers, for any reason, as long as they don’t discriminate against people based on race, religion, sex, or other nonbusiness criteria, she said.

Stolba said she is not aware of any lawsuits so far involving escalation clauses, although she added that she is starting to field more calls from brokers who want to learn more about the tactic.

Shared from http://www.BostonGlobe.com/business

Susan Mammola’s Newton Housing Newsletter

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February, 2014
Volume 4 Issue 2
William Raveis Real Estate, Mortgage & Insurance

Newton, MA – Single Family Properties

Newton
  • 3-month unit sales are up 31.8% to 112.
  • Days on market in February was 52. This is down 50.0% from 104 in February of 2013.
  • 3-month price per square foot is up by 14.8%.
Other Towns In Middlesex County
  • Unit sales in Arlington are up 150.0% to 15.
  • Unit sales in Cambridge in February were 1. This is down 75.0% from 4 in February of 2013.
  • Days on market in Wayland is up by 138.5%.
Changes Favoring Buyers
February, 2014 % Chg From Feb, 2013
Unit Sales 22 -15.4%
Listings Under Contract 29 -40.8%
Changes Favoring Sellers
February, 2014 % Chg From Feb, 2013
Median Sale Price $910,000 7.1%
Sales to List Price Ratio 97.6% 0.8%
Inventory 106 -12.4%
Months of Supply 2.0 -14.6%
Market Time (Days) 52 -50.0%
Price per Sq Ft for Sold $393 12.9%
New Listings 47 -31.9%
Monthly changes may not accurately reflect long-term trends. Click here to see longer-term averages


Sales
There were 22 unit sales in February. This is down 15.4% from 26 in February of 2013. This is the lowest unit sales have been since 20 in January, 2013. Sales/list price ratio in February moved down to 97.6% from 97.7% in January.
Prices
Median price in February was $910,000. This is up 7.1% from $850,000 in February of 2013. 3-month median price of $949,500 in February was down a little from $997,500 in January but up modestly from $819,000 in February of 2013.
Inventory
Inventory of 106 in February was up 14.0% from 93 in January but down 12.4% from 121 in February of 2013. New listings of 47 in February were up just slightly from 46 in January but down somewhat from 69 in February of 2013. Months of supply of 2 in February was up a little from 1.7 in January but down modestly from 2.3 in February of 2013.
Market Time
Days on market of 52 in February was down somewhat from 71 in January and down considerably from 104 in February of 2013.

Change in Median Sale Price for Single Family Properties YTD From 2013 To 2014 for Towns in Middlesex County Ranked by Best Performance
Town % Change
Holliston 60.37%
Acton 50.37%
Westford 39.13%
Natick 38.38%
Lexington 34.94%
North Reading 34.85%
Concord 21.94%
Wayland 21.77%
Weston 18.29%
Newton 13.82%
Data From: MLSPIN
Towns with an average of at least 10 sales per month (maximum of 10 towns)
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Newton, MA Information School Link Community Link Map Link
Local Housing Data Community Maps

If you’d like to see more statistics or view data on other Massachusetts towns, contact me by clicking the “Contact Susan Mammola” tab or Email me directly at Susan.Mammola@Raveis.com.

 

 

Buyer Demand Continued to Push Pending Home Sales Up in February

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by Eric Berman | Mar 11, 2014
Contact: 781-839-5507 or via emailClick Here to View Historical Pending Home Sales Data

WALTHAM, Mass. – March 11, 2014 – The Massachusetts Association of REALTORS® (MAR) reported today that the real estate market continued its strong start to 2014 as pending home sales for both single-family homes and condominiums went up again in February compared to the same month in 2013.  Pending sales figures (also called homes under agreement) are a leading indicator of actual housing sales in Massachusetts for the following 2-3 months.

“The snow and cold of last month didn’t dampen buyer demand as pending sales increased again in February,” said 2014 MAR President Peter Ruffini, regional vice president at Jack Conway & Co. “With the economy improving and interest rates still favorable, qualified buyers made enough accepted offers to make this February the most active since February 2004.”

The number of single-family homes put under agreement in February was up 20.4 percent compared to the same time last year (3,587 homes in 2014 from 2,980 homes in 2013). This is the 12th straight month of year-over-year increases. This is the most homes put under agreement in February since 2004 when there were 3,612 homes. On a month-to-month basis, single-family homes put under agreement went up 13.8 percent compared to 3,151 homes put under agreement in January. “Sellers should be encouraged by the continued strong buyer demand,” said Ruffini. “This trend will hopefully, help increase the inventory of homes for sale in the coming spring market. With values on the rise, it’s a good time to sell for more homeowners now than at any time in the past five years.”

The median sales price of single-family homes put under agreement in February was $295,600, which was up 7.5 percent from $275,000 in 2013. On a month-to-month basis, under agreement median prices were down 7.7 percent from $320,000 in January.

In this market, REALTORS® are cautioning homeowners about the decision to increase the size of the home they’re in rather than moving to a larger home. “Over-improvement can result in houses that are out of step with the neighborhood, won’t recoup the investment and/or will permanently remove affordable homes from the stock available for first-time buyers,” said Ruffini.

The number of condos put under agreement in February was up 17 percent compared to February 2013 (1,533 units in 2014 from 1,310 units in 2013).  This is the most number of condos put under agreement in February since 2007 when 1,777 units were put under agreement. On a month-to-month basis, condos put under agreement went up 7.9 percent from 1,421 units in January.

The median sales price of a condo put under agreement in February was $282,500 which was up 8.9 percent from $259,450 in 2013. On a month-to-month basis, under agreement median prices were down 5.9 percent from $300,000 in January.

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.

The Data:
Monthly pending (or under agreement) data and closed sales data comes from the three REALTOR®-affiliated Multiple Listing Services in Massachusetts. They are the Berkshire County Multiple Listing Service, Cape Cod & Islands Association of REALTORS® Multiple Listing Service, Inc.; and MLS Property Information Network, Inc. The data is compiled by 10K Research and Marketing, Inc. and updated each month. As a result, previous data may change after the reports have been run.

About the Massachusetts Association of REALTORS®:
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 19,000+ members.  The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs.

Pending Home Sales Hit Six-Year High in Massachusetts!

Feb 11, 2014, 1:59pm EST

Pending home sales in Massachusetts hit a six-year high for January

Pending home sales rose in January.

Pending home sales rose in January.
The Bay State’s housing market got off to a strong start last month as the number of homes placed under contract hit a six-year high, according to the Massachusetts Association of Realtors.

The number of single-family homes with purchase and sale agreements in January increased to 3,151, compared to 3,107 homes in the year-earlier period. It was the most homes put under agreement in January since 3,192 homes were under contract in January 2007.

Pending sales figures, also called homes under agreement, are an indicator of housing sales for the next three months, according to local real estate experts.

While pending sales swelled, so did prices. The median sale price of single-family homes under agreement in January was $320,000, up 14.3 percent from $280,000 in 2013.

The number of condos put under agreement in January rose 9.8 percent to 1,421 units, up from 1,294 units in 2013. Last month’s total was the most condos put under agreement in January since 2007, when 1,595 units were brokered. The median price for a condo under agreement in January was $300,000, up 20 percent from $250,000 in 2013.

MAR President Peter Ruffini said the combination of improved home equity and low interest rates have created a good opportunity for sellers to get back in the market.

Real Estate Editor-Boston Business Journal