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How Much Are Values Truly Rising In Massachusetts?

All we hear about is how low inventory is causing multiple offer situations and rising prices. Well I guess it really depends on where you live.

Our main territory is in Essex and Middlesex Counties. While these are two of the top three counties in overall sales, I think the perception is that prices were driven up more than that actually were last year.

Take a look at how your county did and if you would like a more localized report give us a call or drop us an email and we can get a community specific report out to you.

Feel free to give your County a shout out in the comment box!

5 X-tra Effort Buyer Agent Wins!

We all know that in most cases having a Buyer's Agent costs you nothing. In fact, in my over 10 years of helping clients purchase homes, only once has a client had to contribute towards a commission. I would expect that most Agents could say the same thing, so I don't find this to be a fact that separates me from the crowd. I decided to review my past Buyer clients successes to find a few that showed the extra effort that I put forth when needed. Here are the                                                                                                                                                                                                                                                                                                                                                 Top 5 from the last two years.

1. Using Agent Relationships: I was helping some repeat clients search for house for quite a while. There needs were specific and they new we would have more luck in central and western Massachusetts finding something within their budget. We made several trips with no luck, but I kept in touch with many of the Realtors we met along the way. Finally, I got a call one day from one of these Realtors that said they had a home that might fit coming on the market soon. We set up a time and had an offer accepted before it ever hit the MLS! 
2. Referral Before Relocation: This couple wanted to relocate to Massachusetts to be closer to family. They were having trouble selling their home in New Jersey and were about to let their second Listing Agent go for lack of results. I called a couple of Keller Williams agents in her area to try and find someone that could get the job done. Within two weeks they had their house under agreement and we were able to get an offer accepted on a beautifully renovated home with a sales contingency. 
3. The Elusive Non-MLS FSBO! That's right a non-MLS FSBO. We were looking for the right house and finding nothing suitable with the low inventory. As I usually do, I will go back through homes that didn't sell and came off of the market after the listing contract has expired. I found a home that was being sold as a "For Sale by Owner" before coming off of the market. They fell in love with it and we were able to have an offer accepted. It was twice the work, because the seller didn't have a listing agent to prepare her for the process, but we got it done and everyone was happy!
4. Same Day Sale/Purchase Closings: These are by far the most stressful because in most cases the clients are using the proceeds from the sale to make the purchase. If anything goes wrong with the sale, it will affect the purchase. I have had 4 of these in the last two years and can tell you that Sellers are reluctant to accept an offer with a sale contingency. In two of these cases, not only was I able to negotiate a sale contingency, but both for significantly under asking price. All four were completed successfully with  a closing on their sale that followed an hour or so later with a closing on their purchase. 
5. Beating the lease timeline: I worked with this client to keep an eye on the market and try to time a purchase that could close at the end of his lease. We were in great shape and ready to go but did not expect the number of multiple offer situations that we encountered. It seemed like every house we put an offer in on was going for $10,000 - $20,000 over asking. We finally found one that had been on the market for a while, it was a bit over priced so we were able to get an offer accepted for less than asking. We were tight on the timeline but if everything went well, we had some time to spare. Then the home inspector found an issue with the electrical panel that was a pretty severe safety hazard. The seller wasn't willing to negotiate a solution so we walked away.  He had come to the realization that he would have to lease another year and try again then. I took a quick look on the MLS and saw a similar house in the same neighborhood that came on that day. It was a bit more money but was in much better shape. We drove over, put in an offer and had it accepted. We were able to go from offer to close in just 21 days thanks to some great teamwork with the lender. He was able to move into the house the weekend before his lease was up. 

Believe me when I tell you that no sale is without it's obstacles. It is why I put so much into the details and preparation. I know from experience that you are better off having ducks in the row that you will never need than to need them and not have them there. Contact The Giles Team  today and start writing your success story!

Timing Your Listing

One of the biggest misconceptions is that you should wait until you are absolutely ready to go on the market before interviewing Realtors. In truth, this should only apply if you have to satisfy a sudden issue that forces you to list ASAP.   If you were to get an acceptable offer on the first day your home hits the market, you would be looking at a 45-60 day process until closing if everything goes smoothly. Add in the time it takes to interview a few Realtors, prepare your home to sell, deal with any unforeseen issues that arise and you are really looking at a 3-4 month process at best.                                                                                                                                                                                    Things That Can Add Time and/or Value:                                                                        

• Staging/Cleaning: You don't have to have 10 years experience to know that homes that show well will attract more buyers and demand a higher value. Taking an extra week or two to spruce up the house and get all of the clutter out will go a long way.
• Updates/Repairs: Once you have determined which updates and repairs you want to make before selling (granite counter tops, new hot water tank etc...), you will be at the mercy of the contractors schedule for completion of the project.
• Not Reacting to the Market: If showings/offers don't come pouring in, how quickly you react will have a large bearing on the overall days on market. Remember, the 45-60 days until closing doesn't start until you get an acceptable offer.
• Finding your next home: If you will be upgrading or downsizing and your home sells quickly, you may want to negotiate a little more time to find/secure your next home.
• Buyer's Financing Issues:  Any hold up with the underwriting process can cause minor delays and call for extension of time to close.
• Appraisal Issues: Any major difference between the appraised value and the selling price can result in issues with financing and could add time to get the problem resolved.

While these are some of the more common reasons a normal transaction can be delayed, the good news is that proper preparation and planning along with a Realtor experienced in handling these issues will alleviate the stress or make sure that they don't occur in the first place.                            
                                                                                                                                                                      The Best Timeline for Your Listing:

• Hiring your listing agent:  Approximately one month before you want to hit the market
• Go on the market:  Once you have everything ready and in show condition. Remember, you only get one chance to make a first impression, make sure the price, condition and marketing materials are designed to make your listing stand out!
• Get an offer:  This will depend on current market conditions along with all of the work and preparation you have done with your listing agent. While everyone would love to get an offer ASAP you need to be prepared to listen to the market if you aren't attracting showings or offers.
• Home Inspection Period:  This is normally done on a 7-14 day timeline, but is negotiable and spelled out in the offer. The potential buyers can opt not to have an inspection if they choose but that is not the norm. (See 5 ways to inspection proof your home)
• Purchase and Sale Agreement: This is final contract and is usually negotiated between your Attorney and the Buyer's Attorney. The timing is outlined in the original offer and customarily a couple of days after the inspection period to allow for any issues to be addressed. If no inspection issues arise it can be completed a few days earlier depending on the Attorney's timeline.
• The Closing:  The original contract will outline a specific date for closing which is normally 30-45 days after the signing of the Purchase and Sale Agreement. This can be a frustrating time for Seller's because it seems like nothing is happening, but this is where the bulk of the work is done.  The Buyer's underwriting process, title search, appraisal all have to be completed. The Seller has this time to have a smoke/CO detector inspection done and arrange for final utility readings that will be used to arrive at the final numbers. If anyone drops the ball on a specific issue it could result in a delay.

If your goal is to sell your home over the Summer, now it the time to contact us for a  pre-listing consultation .  You can request one online or give us a call at 978-882-4659 to schedule. We always appreciate the opportunity to show how we work to get you moving!

5 Ways To Inspection Proof Your Home

While we have all heard horror stories about inspections results and how they have derailed deals or led to further price reductions, it is important to note that often times there are NO surprises and all parties move on to the next stage. Much depends on the experience and overall knowledge of home maintenance on the part of both the Seller and Buyer. 

 First time buyers can get overwhelmed as the inspector points out every little detail while someone downsizing understands that all homes have minor issues that can be addressed over time.  

Proactive sellers that know the issues with there homes are prepared for the inspection report. The owner's with the "if it ain't broke, don't fix it" attitude can get a bit defensive when problems arise.

  Understanding the Home Inspector's Job: The home inspector is hired by and works for the buyer.  He does not work for the buyer's agent, the listing agent, or the seller. They are there to go through the house and grade various systems and structures so that the buyer can make an educated decision on whether to move forward with the sale or not. It is not an easy job and they do not want to kill deals. Experienced inspectors can clearly express issues as being minor, common, or something that should be addressed immediately. 

 Now that we have the various roles outlined, I would like to share 5 things you can do as a seller to help curb inspection surprises. These will cover the issues that are the most common reasons buyers ask to reopen negotiations.

1. 1. 1. 1. 1. 2. Service Heating/AC Systems: Explain to your service provider that you will be selling and would like a detailed report on the functionality of the system. Have them leave you a brochure with their contact information to give a potential buyer.
               3. Clean/Inspect Chimney: Often overlooked and a focus of inspectors. When a buyer hears things like potential Carbon Monoxide leaks and chimney fires it can be scary. Showing that the chimney has been cleaned and inspected can settle those nerves.
               4. Electrical Inspection:  Have an electrician come in and test all of your outlets to assure they are grounded properly, GFCI outlets are installed where needed and make sure circuit breakers aren't overloaded.
               5. Radon Test: This is optional for a buyer but you may want to spend the $20 at home depot to buy a kit and find out if this could be an issue or not. Providing the result of a safe reading could save them the additional inspection cost. Disclosing a high reading prior to the offer will make it easier to say no to a mitigation system installation.
               6. Seller's Statement Of Condition Form:  This form is not a mandatory form, but can be a great way to curb further negotiations. It will detail all of the major systems and areas of the house that are of concern. Disclosing all positive and negative details to be reviewed, signed and submitted with the offer will assure that they were aware of these issues prior to making the offer.

We have experience working with the various personalities of buyers and sellers that helps us to expertly navigate through the inspection process. If you are considering selling your home this year, we would appreciate the opportunity to assist you in making a game plan. Click To Contact The Giles Team!

Buyer Tip: Be Prepared For the Home Inspection

In home buying, ready-aim-fire is equivalent to pre-approval-search-offer. Similar to at the firing range, keeping the order in place will give you a better chance of succeeding. In both cases, the first two steps are totally in your control as far as time goes.  You can get the documents that the lender needs to them as quickly or as slowly as you like.

While searching, you can change the definition of the perfect house on the fly and look at as many houses as you want before making a decision. But once you pull that trigger, you had better be prepared because you now have a limited time (usually 10-14 days) to schedule and inspection, review the report and decide whether further negotiations are needed or to back out and retain your first good faith deposit.

 Prior to this point, if you are using a Buyer's Agent to represent you, he/she should have given you a copy of the Commonwealth of Massachusetts - Office of Consumer Affairs "Facts For Consumers"  regarding the Home Inspection Process. Knowing what a typical inspection consists of as well as other concerns that may come with an additional cost (lead paint, radon, etc...) as well as already having quotes and lead times will help to slow the process down and allow you time to make educated decisions.

 You may also want to review my last blog post on how the inspection can affect your ability to get homeowners insurance.

 Additional Helpful links:
  Take a Virtual Home Inspection Tour
  Download Our FREE HOME BUYING GUIDE 
  Use the Giles Team Online Solution Center to ask a question

HOME BUYER ALERT: Homeowner's Insurance

Purchasing your Homeowners Insurance Policy used to be a late in the process task.

I see this becoming more and more of a problem that needs to be addressed as early as the home inspection period to avoid problems prior to closing.

  In most cases when using financing to purchase a home, the lender will require you to pay the first year's policy upfront prior to closing. Most would wait until the process was close to closing and then take some time to call around for quotes and make a decision.

  With the recent events in the Northeast, namely Hurricane Sandy and one of the worst Winters in recent history last year producing roof collapses and ice dams, these companies are in recovery mode.  To say they are making the process more difficult is understating it.

I recently had a client call for a quote, the Insurance Agent went to the property and told her that he wasn't sure he could get the home covered because their were cracks in the sidewalk in front of the house.  (yes, we explained that this was the City's property and had nothing to do with the property in question).  Another client called only to be told that he could not get insured because one of the windows was cracked.  I can't make this stuff up!

 **** ADVICE **** Get your home inspection early and start getting Insurance quotes during the inspection period.  Some insurance companies are requesting to see the inspection report. If there are any issues that could prevent coverage, you want to address them with the Seller before the inspection period runs out. Call us today if you would like experienced representation when purchasing your home.  978-882-4659

Tip For Selling Your Home - Don't Fear the Lock box

This is an on going debate throughout Real Estate offices everywhere. As you can tell from the title, we fall on the side of using lock boxes to facilitate showings on all of our client's listings.

 When used properly, they are an effective tool that allow other Agents to get their clients through your home regardless of your Listing Agent's schedule.

 The number one argument I get from other Agents is that "This is a service industry, and I need to be there to make sure all of the home's features are shown".  Well this is true, and we try to be at all showings if possible, but there are times in a busy Agent's schedule when you just can't be in two places at once. Having a lock box available, especially in today's market where buyer's are ready to move quickly, IS providing the best possible customer service to your Seller.

 Another reason for not utilizing a lock box is the Seller not wanting to give strangers access to their home unaccompanied. I run into this myself and while some Seller's just will not budge, most understand the benefit once I explain how it works.

 Overview of the Giles Team Real Estate lock box policy:

• Lock boxes are only to be used when a convenient time for both parties can not be worked out. Our goal is to be at all showings when possible.
• Only Buyers accompanied by their Buyer's Agent will be permitted to use the lock box. If a buyer is unrepresented, they will need to work out a time that works for both parties.
• All requested showings will be logged and a follow up call will be made at the Listing Agents earliest convenience to assure the appointment was kept.
• All Buyer's Agents using the lock box will be sent any documents that will facilitate the showing (feature sheet, seller's disclosure, etc...) prior to the appointment via the media of their choice.
• If home is vacant, rented or the Seller is out of town, a team member will go to the property at their earliest convenience to assure the property was locked up and all lights were turned off.

The more people you can get through your home, the better chance you have of receiving one or more offers. Don't let a busy Listing Agent's schedule prevent a potential Buyer from looking at your home.

Dear Seller, Does This Work?

Do "Seller Love Letters" Work?

  Anything that can make your offer stand out will HELP. The problem with these love letters in today's market is that everyone writes one. After the second or third "we know we might be lower than others, but we really love your house" letters, the idea has worn thin.

  What if I really pour it on and get creative? We have done and seen it all,  kids hand written letters, pet paw prints on the signature line, and pictures of Grandma smiling with the hopes of moving in to the first floor bedroom. All things being equal, these can leave a positive impression, but more often than not all offers are not equal and the best offer usually wins every time.

  What else can I do to get noticed?
 Understanding the Seller's needs and catering to those will go further than the usual Love Letter.

If you think about it would you rather have a letter asking for your help with someone else's problem or a letter explaining how some one else can make your life a bit easier? Giving a longer closing time for seller's that are still looking for suitable housing or quicker closing times for estate sales to save them property tax/insurance money will weigh more heavily on a decision than accepting your terms so that fluffy has a nice yard to play in.

 Simply increasing your initial deposit can make you stand out. Imagine sitting down and reviewing 3-4 offers and seeing 3 checks for $1000 and one for $5000. Where are your eyes going to go? In my opinion, every offer in every market should have a cover letter explaining the following three things:

1.  How you arrived at your offer price
2. The benefits of accepting your offer
3. Why you want to buy this house

If someone is willing to overpay in a multiple offer situation or if you are financing and someone else has cash, you are more than likely going to lose the war.  You can only control the factors in your hands. Make those as Seller friendly as possible, highlight them,  explain how it helps and then hit them with some crayon and paw prints for good measure.

 Put our 10 years of experience of working with Buyers to work for you!  Call us today at 978-882-4659 or go to GilesTeamRealty.com   get started.

A Buyer's Best Friend When It Comes To Negotiating

I'll get right to the point. You can have your finances in place, pre-approval in hand, list of wants and needs and a great Realtor to show you all of the listings as they come on the market, but nothing will benefit your power to negotiate more than TIME!

  It is something that is not often thought about until it's too late.

Whether you need to sell something before buying or are locked into a lease, creating an escape plan to alleviate a time constraint can make the difference between getting your offer accepted or not.

 Many of today's Sellers are trying to move up or down in size and will need to find a home that fits their needs. If they don't have their escape plan, they are usually willing to take a little less money to gain time to find a home or solution to the problem.

 Time is particularly important in the current market with a real lack of inventory. Good listings are getting multiple offers a bit quicker than most Sellers are prepared for. In these cases the old adage is true... "Time is Money"
                                               

Is Buyer Agency Really Free?

   

Is it too good to be true? Can I really get someone to represent my best interest at no cost? In most cases, yes! 

  AHA!! There it is!  "MOST CASES", I knew it was too good to be true.  

Hold on... don't go jumping to conclusions.  I have been helping my clients buy homes for 10 years and have never had to charge one of them a penny for my services. Listing Agents offer out a portion of their commission to a Buyer's Agent that brings a willing and qualified Buyer to the closing table. 

  Why would they pay someone to represent the buyer and negotiate against them and their client?  It sounds fishy to me... To understand why this is, you need to review a bit of the history behind the concept. Back when Ward and June were looking for a  home big enough to house Wally and Beaver, they called a local Agent who would show them homes that they wanted to see. The difference was that the Realtor was technically working for the Listing Agent and co-representing the Seller of any homes he showed and would receive a pre-determined portion of the commission.  This is what is known as Sub-Agency.

  As time went on this system was looked down upon by many Consumer Advocates that felt it was unfair for representatives of the Seller to have intimate information about the Buyers financial information and negotiating strategy. In many cases the Buyer's weren't even aware of the fact that the Agent showing them homes actually represented the Seller. This brought to light the concept of Buyer Agency, where a consumer would be able to enter into a contract with a Buyer's Agent who would represent their fiduciary interests and have access to the same commission split as someone working as a Sub-Agent.

 As you may imagine, Buyer Agency was not a very popular among the Real Estate industry. If YOU think that paying someone to negotiate against you sounds fishy, just think about what the person paying thinks about it. As time went on and more and more buyers were educated on the benefits of having someone working with their fiduciary interests in mind, it has become common practice. 

 In some cases, such as a "For Sale By Owner" who is not offering out a percentage of sale to Buyer Agents or If a listing agent isn't offering out enough of a percentage, you may have to compensate your Buyer's Agent all or a portion of their required fee. Again, this is very rare and you can write into the contract that the Seller would need to pay the extra money from their proceeds. 

 Buying a home is more than finding a home a putting in an offer.  Having a representative to  act as a buffer between you and the Seller during the initial negotiation, potential post inspection negotiations, the underwriting process and getting to closing will take the stress away. 

 Make sure this milestone event is one that you can look back on with fondness and not an excruciating process never to be repeated. (how's that for hyperbole?) 

  Since we are talking about FREE STUFF, click here to get our FREE "Prepare to Purchase Buyer's Guide" Learn the common costs, prepare for the pre approval process and get tips and tricks that will help you along the way.

The #1 Unknown Fact About Real Estate Agents

Real Estate Agents Are Independent Contractors.

That's right! We are required to affiliate with an established brokerage, but in all reality we are responsible for our own business.

In all truth, the other Agents in the office are as much our competition as the Agents at other brokerages.

Why does this matter to you?

In most cases it will have no effect on you, but it is something that you should keep in mind when interviewing potential Agents to work with.

There can be huge differences between pricing strategies, marketing plans and communication skills between Agents in the same office.

How does this effect an Agent?

I can't speak for all, but there are a few times it comes up in my course of business.

• The Interview Process - Often times I will hear "I already interviewed someone from your office". My office has 157 Agents, talk about "Agent Roulette"
• Bad Experience - Once in a while when marketing to potential clients I will encounter someone who will not even consider speaking with me due to a bad experience with another Agent from my brokerage.
• "Big Name" Brokerages - This one actually helps me, but it is something you should be aware of. There are some very qualified people working with smaller, local brokerages that don't instantly come to mind when you start to call for interviews.

How can you narrow the field?

• Listen to the Agents that contact you. These are people that are obviously aggressively working in the business.
• Focus on an Agents personality to be sure it is compatible with you. Transactions can be stressful enough without having to battle with your Agent as well.
• Determine what traits you want your Agent to have before starting the search. Write down questions that will help you make your decision. (Don't download the 10 questions to ask your Realtor, we came up with those questions!)
• Have potential Agents send you a copy of there marketing plan, pricing strategy and general business approach via email so that you can go through it prior to setting up an appointment.

The average transaction will take 45-60 days to complete once an offer is accepted. You will be in daily contact with the agent you hire for at least 2 1/2 to 3 months or more. This is not the time to be cutting corners or taking the "their all the same" approach.