NOW Is THE Time To Sell!!

If you are seriously thinking of selling your house, NOW is the time to get serious.  So you think we are at the bottom of the market?  Here are a few points to consider:

• Single Family Sales units in North Central MA are declining at a Faster rate (more than 2 times) than the same period last year.
• Single Family average Sale Prices are declining at a Greater rate than the same period last year.
• Lending standards are getting increasingly more difficult - i.e. harder to get a loan.
• Job losses are only Now starting to come into play - and there are more coming.
• The economy is eroding before our eyes.
• The foreclosure rate is increasing
• Currently we are 2-3 years before the 'Bulk' of the Adjustable Rate Mortgages reset (Including the Option Arms - what's an Option Arm? Look for another post soon).
• I can go on...

Looking at these facts, is there any reason why you would think that prices are going to go up? 

OK, so you are a buyer.  Why Buy now? Well, 30 year Fixed Rate Mortgages (yes, FIXED - not Blend loans, Option Arms, NINJA loans, etc.) are still at 40 year lows BUT prices have been beaten up over the past 3 or so years.  We are seeing prices back to levels we saw in 2003 +/- but Mortgage rates are just about as low as back then - thus setting the stage for some great affordability.

If you have a secure job, this is a great opportunity.  Yes, prices may fall more, however Interest rates are almost sure to go up due (to the economy, the low value of the dollar, imminent recession, etc).  So remember, small changes in the Interest rate can equate to large increases in the payment.

Leominster, MA 01453 Market Update for Q3 2008

Here is the RealtyMan Market Update for Leominster, MA 01453 from Full Year 1999 through the first 3 Quarters of 2008

The number of Single Family Units (not including condo) in Leominster has decreased over 15.5% for the 1st 3 Quarters as compared to 2007 from 199 units to 168.  See Graph below:

As you will see below, the average sale price has fallen as well, but not quite as dramatically. It declined a little over 12.3% over the 1st 3 Quarters as compared to the same period of 2007 (from $266,371 to $237,610).

However, diving into the statistics a little more will show that 'Same House Sales' have declined more than these averages show.  Is it going to get better?  Economics 101 tells me that we need to see Units recover before Prices will.  Given the state of the economy, do you think we will see units increase?

For a more specific analysis on the market as it pertains to your specific property, please feel free to contact the top selling Realtor in Leominster, MA Every Year since 1999! 

Why Now Is A Good Time to Buy

We all know of that the economy is a mess (thank you Wall Street & Congress), however I find that I've been Very Busy over the past 2 weeks.  I've been negotiating offers in the $200K range all the way up to the High $800K range (with a few in between).  You may be wondering Why anyone is buying right now.

Well, think about this:

First, let me go through the assumptions:

30 Year Fixed Rate Conforming Loan (Principal & Interest Only)

A $300,000 loan at 6% is approximately $1,798 per month.

A $300,000 loan at 8% is approximately $2,201 per month.

Guess how much the value of a property would need to drop in order to get the payment back to what is would have been at 6% instead of 8% in this example.

Approximately $55,000!

$245,000 at 8% over 30 years is just over $1 per month in payment.

So... Given all of the economic BS going on out there, do you think Mortgage Rates will be going up or down?

Remember Fannie Mae & Freddie Mac?  Do you think investors are lining up to buy Mortgage Backed Securities right now? If the demand for MBS's goes down the return must go up in order to lure the investors back in (supply/demand).

Not to mention that it is harder to get a mortgage right now than it was before, and it appears that it will continue to get more difficult.

So if you are looking to buy a home to live in (not to flip) then Now may be one of the best times.

What do you think??

Tough Economic Times - but for how long?

So maybe there is good news soon after the bad times we are in.

Here is a link to a study from the Harvard Business School Recession Chart !

Let's hope that history repeats itself...

Who Cares About Data Integrity?

First Off, I am irritated  - so bear with me.

Is it just ME or doesn't anyone care about the integrity of the Listing Data that is out there online?  Maybe consumers don't know, or understand, that some Real Estate sites that are found online only have Some of the lisings but are lacking All of them.  They only place the listings of their 'Advertisers' on their sites.

Other sites update only weekly.  And some have listing data that is Years old (Really!  Years old). 

Many of the 'National Aggregator' sites don't update photos either (5 months on market and 'No Photo' even though the photo has been in the MLS since day 3). And yes, the MLS is where almost all of the sites pull their data from. 

And some pull from multiple sources, so the consumer gets to see 5 of the same listing (and ironically, not all with the same data).

So where am I going with this?  The most accurate listing information you will find is from your local Realtor (office or agent) which has their site updated with the Full Feed from the MLS.  Like http://www.realtyman.com/ for instance.

If you only want SOME of the listing data, then feel free to search several sites.  If you want ALL of the listings, your best bet is the Local Realtor.

RealtyMan Spotted at the Mass Assoc. of Realtors Convention

See if you can find Gerry 'RealtyMan' Bourgeois in this video: Click Here to find Realtyman
This was recorded by the girls at BatchBlue.com

Another of RealtyMan's Marketing Avenues

See Gerry's Latest ad in Distinctive Homes Magazine! Click Here

Lunenburg, MA 01462 - Now $637,500!

Mortgage Rates Drop (Today at least)!

I've seen a few 30 Year Fixed Rate Mortgage Rates get quoted today at 5.5%. This is GREAT for anyone considering buying!
Think: Prices beaten up over the past 3 years. Rates are where they were 3 years ago (+/-).
DO NOT MISS THIS Great Opportunity!

Timing Is Everyting!

The recent 'bail-out' of Fannie Mae & Freddie Mac has sent typical conforming 30 year fixed mortgage rates down into the low 6% range and possibly into the high 5%'s! This means that buyers have more purchasing power (can afford more house for the same payment as before)!
We all know that prices have declined over the past few years, however with the current decline in mortgage rates (which could be temporary),this is one of the best opportunities I've seen to buy in quite some time.
Check with your local lender for exact rates & terms as they may (and probably will)change!

Real Estate Marketing Changing Faster than the Market

Everyone has noticed that the Real Estate market has changed over the past few years. But has anyone noticed that Marketing Real Estate has changed, even more dramatically, during the same timeframe.

Traditional print advertising is all but dead.
Even Internet marketing strategies (if some even had one) don't work like they used to, and continue to diminish.

So if you are serious about SELLING your property in this market, lets chat. I'd love to show you all of the new & innovative things that Towne & Country, Realtors is doing to capitalize on this change. T&C, lead by Gerry 'RealtyMan' Bourgeois, has always been on the cutting edge of Marketing & Technology - And We Still Are!

Leominster, MA For Sale $347,500

Where Do You Get Home Listing Information?

A Study by the National Association of Realtors in 2007 found the following:
84% of buyers begin their search for a home online.
73% drove by the house as a result of seeing the house online.
57% actually scheduled an appointment to view the property they saw online.

Information Sources rated as "Very Useful" by buyers:
Internet - 78%
Realtor - 70%
Yard Sign - 29%
Print Ad - 17%

From the research done at T&C, we find that the vast majority of inquiries come from people who have seen a property online.
Yes, we still get some print-ad calls, but they are VERY Few and far between.

Anyone care to let me know what their favorite place to find homes for sale is? (Internet or Print).

North Leominster Home For Sale - $350,000

Loans Increasingly More Difficult to Obtain

Yes, lots of mortgage money is available. However, for many, the requirements to access this available money is still getting more stringent. FannieMae (FNMA) announced earlier this week that they were Increasing the 'Declining Market Delivery Fee' to .5% as of October 1st (which will of course be passed onto the consumer in the form of Higher closing costs or Increased interest rate).

Also, another trend is 'Credit-Scoring' the interest rate. Although this has been the case for quite some time, the Secondary Market is now looking at slicing the rate into far more credit score tiers.

I don't disagree with the rational of all of this, however, for anyone lookig to buy in the near future (that does not have a very high credit score) should not try to time the bottom of the market because it could really end up costing you more in the end.

You Don't Need A Realtor!

OK, I know this one that you have been thinking about. Why Do you need a Realtor?
I mean really, why do you?

First of all, there are 2 sides of a real state transaction: the Buying side and the Listing side. Lets start with the buying side...

You can get listings just about anywhere. There is all kinds of data online. You can just call the listing agent to see the house (oh, whos job by the way is to take all of your money and give it to the seller - their client). You can navigate the current changes in the mortgage market. And all other kinds of fun. And if you are moving from another part of the state or the country, it is even more fun.

And if you are a seller...
You can research comps online (if you can find them they are probably outdated). You can check Zillow (to see what your house probably Isn't worth - up or down).
You can check Trulia and get incomplete data (at least as of this post).
You can put an FSBO sign on your lawn and post on the FSBO sites (ensuring that you'll see most of the 'bottom feeders' looking to steal your house).

Hmm, maybe you do need us?

Could This Be The Best Time To 'Trade Up' in Real Estate?

Ok, anyone who does not live in a cave on a remote island somewhere (and probably them too) know that the real estate market has been beaten up over the past couple of years. Most of us know how and why we got here and where things went 'wrong'.

Fine, we were 'there' and now we are 'here', but has anyone cared to take a look at where 'here' is?
House prices have fallen pretty much across the board in Leominster, MA and the rest of North Central Massachusetts (some areas more than others). One of the interesting facts is that the Fixed Rate 30 year mortgage has been ranging in the 6%'s for quite some time now - with the rare occasional dip into the very high 5%'s. So, prices have softened but rates have remained relatively stable (and still historically very low).

So what does this mean? In my opinion, this is one of the BEST times to trade up to a more expensive home. Why?
Many people are trying to 'downsize' which is resulting in a lot of inventory on the upper end of the market - therefore supply/demand is in your favor.

In addition, the market is very compressed in many of the towns in central MA. Meaning, that a 'little more money' will buy you a LOT more house. Just compare what you can get in Leominster, MA for $250,000 to something at $350,000 and you'll clearly see what I mean.

Also, you are buying into the down market. When prices appreciate (and they will at some point), the percentage gain on a larger value will result in a larger return (e.g. 20% of $500K is greater than 20% of $275K).
And remember, mortgage rates can't stay this low forever.

So there is opportunity for those with a long-term view of residential real estate. How does it play into your current situation? I don't know - but contact me; I'd love to help you figure it out.

Alphabet Soup: What do all those letters mean after a REALTOR's Name?

Did you ever wonder what all of the letters after a REALTOR's name actually mean. For most consumer it looks like alphabet soup, but there is a real value to most, if not all, of these 'Designations' as they are known in the field.

I aim to clarify what most of the popular Residential Real Estate Sales Designations are. I say Real Estate in this instance (and not REALTOR) because not ALL designations are sponsored and/or recognized by the National Association of Realtors (NAR).

First are the NAR Designations:
ABR: Accredited Buyer Representative
ABRM: Accredited Buyer Representative Manager
ALC: Accredited Land Consultant
CIPS: Certified International Property Specialist
CRB: Certified Real Estate Brokerage Manager
CRS: Certified Residential Specialist
CRE: Counselor of Real Estate
GRI: Graduate REALTOR Institute
SRES: Seniors Real Estate Specialist

And NAR Certifications:
AHWD: At Home With Diversity
ePRO: Online Professionalism
RSPS: Resorts & Second-Home Property Specialists
TRC: Transnational Referral Certification

There are also MANY Non-NAR designations. Not to take anything away from these, but they are not sponsored by NAR. Some of which include:
ASR: Accredited Seller Representative
CRP: Certified Relocation Professional
CSP: Certified New Home Sales Professional
EBA: Exclusive Buyer Agent
RECS: Real Estate Cyber Specialist
SRS: Seller Representative Specialist
And there are surely more...

Some Designations (or Certifications) are much more difficult to obtain than others. I can tell you first hand that a few of my designations were not easily obtained and required many weeks worth of classes along with a documented track record to obtain- while others required little more than a valid credit card. But, any agent that is willing to further educate his or herself will undoubtedly be a person that is focused on best serving their clients. I have always felt that we all need to be constantly educating ourselves. We all need to Never Stop Learning.

92 Revolution Dr., Leominster, MA 01453

Can It Get Any Worse?

Residential sales are off of last years pace in units And the average (and median) sale prices are falling as well (not as much as units, thankfully). And we all know that mortgage financing has become harder to obtain as of late.

So... Just when it was looking pretty bad out there, Fannie and Freddie may now need to be bailed out by good old Uncle Sam (read: You and I who Pay Taxes). Does anyone remember what the Mortgage Market looked like BEFORE 'The Secondary Market' (Fannie & Freddie)? Let me refresh your memory: 20% down, 16% to even 21% mortgage rates, and a lack of available mortgage money Even If you had 20% down And was WILLING to pay 18% +/-. Not to mention that borrowers actually needed to have money, a stable job, some savings, reasonable debt (all novel concepts, no)?

Why am I telling you this? Because if you have the desire to own a house anytime in the near future, NOW may very well be The Best Time to Buy. Oh, and if you are looking to sell, PLEASE price it right - or wish that you did.