Real Estate Buzz at LongmeadowBiz

2011 Longmeadow Home Sales

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Mon, 02 Jan 2012 20:25:00 +0000

Shown below are a series of charts summarizing the latest single family home sales in Longmeadow, Massachusetts. These latest results from January - December 2011 include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.

2011 Highlights

Home sales in Longmeadow in 2011 were lower than 2010 (-7.6% - 146 vs. 158) and also lower (-13.6%) vs. the 6 year average (146 vs. 169)- see figure 1. Sales in 2011 were also the lowest for the past six years.

One positive trend... sales in the last three months of 2011 (October --> December) were significantly higher (+35.5%) vs. the corresponding period in 2010 (42 vs. 31).

With a typical inventory (MLS + FSBO) of ~100-120 homes for sale, the average time to sell a home is ~ 9-10 months.
Monthly median sales prices were very volatile in 2011 ranging from a low of $263,800 in April to a high of $331,000 in October. After a precipitous drop in the 1Q/2011, median prices improved dramatically and stabilized by the end of the year.

The median sales price for homes in Longmeadow at the end of 2011 was 5.0% higher ($327,500) as compared to that for the December 2010 ($312,000) - see figure 2.

Looking at the annual (vs. monthly) variation in median sales price also showed a positive trend. 2011 was 4.0% higher than 2010 but 7.1% lower vs. the peak in 2006- see figure 3.

For the past 4 years home sales prices have shown a seasonal cycle with prices strengthening during the summer months when demand for homes typically increases. 2011 results showed a similar trend.
A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has been observed for the past 3 years. For 2010 and 2011, ~ 50% of the homes sold were at prices below the official assessment value- see figure 4 below.

Note: Figure 4 uses assessment values as of January 1, 2012.

Selling a home in the current environment continues to be difficult but 2012 is looking better with continuing low interest rates and an improving economy.

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Figure 1- Longmeadow Home Sales (click chart to enlarge)


Figure 2- Median Sales Prices (Monthly)


Figure 3- Median Sales Prices (Annual)


Figure 4- Sales Prices vs. Assessment Value

Here is a link to the data for 2006-2011 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO

East Longmeadow FSBO

House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

LongmeadowMA.org- Longmeadow's Newest Website

Zillow CEO on Housing

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Wed, 21 Dec 2011 16:34:00 +0000

Interesting interview with Zillow's CEO on the status of US home real estate ...
Highlights:

Nationwide, there has been a 29% decrease in home values since the peak. Zillow expects another 3-5% decrease over the next year with prices then stabilizing for the next few years.
30% of homeowners with mortgages are "upside-down" meaning that their mortgage is greater than the value of their home. No real problem with this situation if you and/or your spouse have stable employment. Loss of a job and the inability to meet mortgage payments can quickly put the homeowner in jeopardy of a home foreclosure.

Longmeadow Real Estate Sales at Lowest Level in 6 years

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sun, 16 Oct 2011 17:14:00 +0000

Shown below are a series of charts summarizing the latest single family home sales in Longmeadow, Massachusetts. These latest results from January - September 2011 include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.

January - September / 2011 Highlights

Home sales in Longmeadow for the first nine months of 2011 were lower (-18.9%) vs. the previous year (103 vs. 127) and also lower (-25.9%) vs. the 6 year average (103 vs. 139) and significantly lower (-36%) vs. the first nine months of 2007 (161). See figure 1 below.
The latest median sales price for homes in Longmeadow for the 3Q/2011 was slightly higher ($315,000) as compared to that for the 2Q/ 2011 ($310,000) but 4.8% lower vs. September 2010 ($330,800).

The current median price is still lower (-10%) than the peak reached in September 2007 ($350,000).

For the past 4 years home sales prices have shown a seasonal cycle with prices strengthening during the summer months when demand for homes typically increases. 2011 results showed a similar trend. See figure 2 below.
A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has been observed for the past 2½ years. For all of 2010, ~ 50% of the homes sold were at prices below the official assessment value. For the first nine months of 2011 the percentage of home sold at prices below the official assessment value was 55% (57 out of 103). See figure 3 below.
At the current sales rate, the number of homes sold in Longmeadow for 2011 will likely turn out to be the lowest for past 6 years. With a current inventory (MLS + FSBO) of ~130 homes for sale, the average time to sell a home is now approaching 12 months.

Selling a home in the current environment continues to be very difficult.

Figure 1- click here to enlarge chart

Figure 2- Click here to enlarge chart

Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from the Vision Appraisal website).

Figure 3- Click here to enlarge chart

Here is a link to the data for 2006-2011 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO

East Longmeadow FSBO

House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

LongmeadowMA.org- Longmeadow's Newest Website

Worst Housing Drop Since Depression

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Tue, 11 Oct 2011 00:58:00 +0000

CHICOPEE, Mass. (WWLP) - The American dream of owning a home is now starting to be put on the back burner. The U.S. housing market is feeling its biggest drop since the Great Depression.

New numbers from the Census bureau show that the homeownership rate in this country fell to 65% last year. Experts believe that these numbers seem to indicate that the U.S. may never have another housing boom peak like the one seen during the mid-decade.

So what's the reason behind this drop in Americans owning a home? Many blame the tighter-credit rates, prolonged job losses and reduced government involvement.

Who makes up for this drop? Unemployed young adults in their twenties are more likely to delay their first-time home purchase, by living at home with mom and dad. Middle-aged adults, ages 35-64, used to make-up the highest ownership rate, but that group was hit with mortgage foreclosures and bankruptcy after the housing market bust back in 2006. Those ages 65 and older now have the highest ownership rate nationwide.

There is some good news if you are looking to purchase or refinance a home. That is because the average mortgage rate has hit its lowest level ever. The average rate on a 30-year fixed mortgage fell to 3.94% last week.

Housing drop worst since Depression: wwlp.com

Longmeadow Home Sales- 1Q-2Q/ 2011

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Wed, 06 Jul 2011 01:23:00 +0000

Shown below are a series of charts summarizing the latest single family home sales in Longmeadow, Massachusetts. These latest results from January - June 2011 include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.

1Q-2Q/ 2011 Highlights

Home sales in Longmeadow for the first six months of 2011 were lower (-9.6%) vs. the previous year (66 vs. 73) and also lower (-15.9%) vs. the 6 year average (78.5) and significantly lower (-34%) vs. the first six months of 2007 (100).
Median sales prices for homes in Longmeadow rebounded significantly in the 2Q/2011 (--> $310,000) and were significantly higher than earlier this year. However, median prices are still lower (-11.4%) than the peak reached in September 2007 ($350,000). For the past 4 years home sales prices have shown a seasonal cycle with prices strengthening during the summer months when demand for homes typically increases. 2011 appears to be showing the same effect.

A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has occurred for the past 2 years. For all of 2010, ~ 50% of the homes sold were at prices below the official assessment value. For the first six months of 2011 the percentage of homes sold at prices below the official assessment value was 59% (39 out of 66).

Selling a home in Longmeadow continues to be difficult. Let's hope that the latest results is signaling a bottom in home prices that will result in some much needed and long anticipated price stability.

[click here to enlarge chart]

Figure 1
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[click here to enlarge chart]

Figure 2
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[click here to enlarge chart]
Figure 3

Here is a link to the data for 2006-2011 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO

East Longmeadow FSBO

House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

LongmeadowMA.org- Longmeadow's Newest Website

Longmeadow Home Sales- 1Q/2011

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Tue, 12 Apr 2011 21:39:00 +0000

The first quarter was not a particularly good one for Longmeadow home sellers. While the number of sales were pretty good, the median sales price showed a large decline. Below are the highlights:

1Q/ 2011 home sales in Longmeadow were improved vs. 1Q/2010 (27 vs. 25) but lower (-11.4%) vs. the 6 year average and significantly lower (-34%) vs. 1Q/2007.

The median sales price for homes sold in Longmeadow dropped significantly in the 1Q/ 2011 to the lowest level in ~ 4 years ($274,500). The median sales price was 7.1% lower than one year ago (- $21,000). and 21.6% lower than the peak in 2007 ($350,000).
A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has occurred for the past 2 - 3 years. For all of 2010, ~ 50% of the homes sold were at prices below the current assessment price.

However, since October 2010 the percentage of homes sold at prices below the current assessment value has increased to ~ 75% (42 out of 57). In the 1Q/2011, 20 out of 27 homes (74%) were sold below the assessment value.

In the 1Q/2011, there were 5 homes sold at prices greater than $100K below the assessment value.

Selling a house in Longmeadow continues to be difficult. Let's hope that low mortgage interest rates will provide some stability for the Longmeadow housing market and that 2011 will show an improved real estate market.

click here to enlarge chart

Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website).

click here to enlarge chart

Here is a link to the data for 2006-2011 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO

East Longmeadow FSBO

House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

LongmeadowMA.org- Longmeadow's Newest Website

Longmeadow Home Sales for 2010

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sun, 16 Jan 2011 02:42:00 +0000

2010 Full Year Highlights

After a very slow start for 2010 with February, April and May being three of the worst sales months in the past five years, there was a significant rebound in the June through September period. However, a slowing of sales for the October - December 2010 period resulted in full year results (158) being lower vs. 2009 (168, -4.2%) and similar to 2008 (159, -1%).
2010 sales levels (158) were still much lower than for the corresponding periods in 2006 (189, -16.4%) and 2007 (196, -19.4%).
Median sales prices for homes in Longmeadow stabilized during 2010 and ended the year higher. However, median prices at the end of the year were still 10.8% lower than the peak reached in September 2007 ($312,000 vs. $350,000).
A large percentage of homes were sold at prices below the official assessment value continuing a trend that has been in place for the past two years (see figure 2). For the year 49% of the homes (86 out of 158) were sold below the current assessed value. For the final three months (Oct --> Dec) 73% of the homes (22 out of 30) were sold below the current assessed value. In 2010, 10 homes were sold at greater than $100,000 below assessed value.
In 2010 there were 11 foreclosures in Longmeadow according to filings at the Hampden County Register of Deeds. This compares to 1 foreclosure in 2009 and 1 in 2008.

Selling a house in 2010 was difficult. Let's hope that the current low mortgage interest rates will continue to provide some stability for the Longmeadow housing market and that 2011 will show an improved real estate market.

Click here to enlarge

Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website).

Click here to enlarge

Here is a link to the data for 2006-2010 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO

East Longmeadow FSBO

House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

LongmeadowMA.org- Longmeadow's Newest Website

A great time to purchase or refinance a home.

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Thu, 04 Nov 2010 00:51:00 +0000

David Rosen of Pegasus Investment Group, LLC- a residential home mortgage specialist located in Springfield Massachusetts spoke recently with Lynne Serrenho of Wales Community Television explaining the residential home mortgage business. In a series of short videos Dave explains the in's and out's of financing a home. Below is Part I- courtesy of Wales Community Television in which Dave points out that now is a rare opportunity- to lock in very low mortgage rates. With an abundance of homes available for sale at attractive prices, affordable (low price + low interest rate = low mortgage costs) is also very good. In this video Dave explains the 3 C's (credit, capacity and collateral) of a good home mortgage for a homeowner and his role to help educate clients.

Dave Rosen- Pegasus Investment Group, LLC

http://www.the-mortgage-guy.biz/

Good news for Longmeadow Real Estate!

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sun, 10 Oct 2010 15:06:00 +0000

Home sales in Longmeadow for August and September continue to show good relative strength compared to surrounding towns in Western Massachusetts. A total of 37 homes were sold in the past two months.

After a very slow start for 2010 with February, April and May being three of the worst sales months in the past five years, a significant rebound in the period from June through September have put YTD sales at about the same level as for 2008 and 2009.

(2008- 123; 2009- 126 and 2010- 127).

However, 2010 YTD sales levels are still much lower than for the corresponding periods in 2006 (157) and 2007 (161).

Median sales prices for homes in Longmeadow increased significantly for both August and September vs. the January - July 2010 period (see figure 3). Median prices for September 2010 are now only 6% lower than the peak reached in September 2007 ($330,800 vs. $350,000).

A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has been in place for the past two years (see figure 2). For the August - September 2010 period 51% of the home (19 out of 37) were sold below the current assessed value. This data is almost identical to the results observed for the past year (52%, 86 out 165).

Figure 1
(click here to enlarge)

Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website).

Figure 2
(click here to enlarge)

Figure 3

(click here to enlarge)

Let's hope that these latest home sales data and the current low mortgage interest rates will continue to provide some stability to the Longmeadow housing market.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website
LongmeadowMA.org- Longmeadow's Newest Website

July 2010 Longmeadow Homes Sales

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Tue, 03 Aug 2010 01:27:00 +0000

Home sales in Longmeadow for June and July 2010 have been the highest back-to-back months since 2006. A total of 48 homes were sold in the last two months with some of the volume in June attributable to the expiration of the $8K credit for new home buyers at the end of June.
After a very slow start for 2010 with February, April and May being three of the worst sales months in the past five years, a significant rebound in June and July have put YTD sales at the same level as for 2008 and 2009. (2008- 91; 2009- 91 and 2010- 90). However, sales levels are still much lower than for the corresponding periods in 2006 (125) and 2007 (118).
In July median sales prices for homes in Longmeadow continued to hold and show stability. For the past 7 months median sales prices have held at ~ $300,000 (see figure 3). However, median prices in July 2010 were still 14% lower than the peak reached in September 2007 ($302,500 vs. $350,000).
A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has been in place for the past two years (see figure 2). For the June- July 2010 period ~ 35% of the home (17 out of 48) were sold below the current assessed value- with some homes selling more than $200,000 below assessment values.

Figure 1- (click chart to enlarge)

Figure 2- (click chart to enlarge)

Figure 3- (click chart to enlarge)

Let's hope that the June/ July sales data reported above and the current low mortgage interest rates discussed by David Rosen- The Mortgage Guy- in a post earlier today continue to provide stability and improvement for the Longmeadow real estate market.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

Buying or Refinancing a Home – Why NOW really IS the time!

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Mon, 02 Aug 2010 17:38:00 +0000

First of all, let’s understand something very important about mortgage rates; they are about as low as they’re going to go! If you are cheering for them to drop much more, you’re cheering against the stock market and the economy in general and, personally, I’d like to think we’re heading up!

Being in the business as long as I have, I consistently hear people say things about their mortgage or the impact of their personal “situation” that just aren’t 100% accurate. Your mortgage is as personal and specific to you as your clothing. It’s not one size fits all, and listening to friends and family, and their experiences, can be a very dangerous thing; one that can stymie you in a time when you should be taking action.

Here are some things that you should avoid saying out loud without professional input:

“My credit isn’t very good.” First of all, define “isn’t very good”… compared to what or to whom? Credit is one of the most misunderstood aspects of the mortgage process nowadays. TRUE, the mortgage lenders today will price a loan differently for someone with a 640 FICO as compared to a 740 FICO. But that doesn’t put you out of the game, nor does it penalize you very much at all. And, there are some very simple moves you can make that will dramatically improve your score, once you understand. Besides, there’s nothing wrong with a 640 credit score. MYTH BUSTER… paying off your credit cards doesn’t help you! It can actually hurt your score.

“My house declined in value, so I can’t refinance.” Not true. There are programs (that I can show you) that may allow you to refinance even if all your equity is gone. I recently refinanced a couple who had originally put down 20% in order to avoid mortgage insurance. They had since lost 13% of their equity and the loan to value (amount owed divided by appraised value) on the home was now going to be 93%. Using a special program supported by both Fannie Mae and Freddie Mac I was able to refinance them to market rates AND they did NOT have to pay mortgage insurance.

“I’m waiting for rates to go down a little lower.” Why? Let’s do some math. If you have a $200,000 mortgage and you could get a rate, for example, of 4.75% for 30 years, your monthly principal and interest payment would be $1043.30. If the rate went to 4.625%, your principal and interest payment would be $1028.28… a whole $15 different. If the current rate would save you a whole bunch of money (let’s say $200/month), would you risk that to save another $15? Action will secure your savings. Inaction will depress you in the long run because once they start to go up, you’ll long for that low point you missed! Besides, even if rates would continue down from here… how far are they going to go? Not enough that would cause you to refinance again, that’s for sure.

“We want to lower our monthly payment, so we’re going to put down an extra $10,000.” Think twice before you use all your liquid capital to make a purchase. Yes, if you’re going to avoid monthly mortgage insurance payments, that’s a great idea. But otherwise, you may miss that money once it’s used. At a rate, for example, of 4.75% for a 30 year mortgage, every $1,000 equals $5.22 a month in payment. So, $10,000 is a savings per month of only $52.20, or $600 a year, or a break even (compared to your $10,000) of 16+ years.

“The housing market sucks.” Yes, maybe if you’re the seller. But if you’re a buyer, it’s a great time. And if you’re refinancing, it doesn’t matter what your house appraises at UNLESS it keeps you from your mission. If you have tons of equity in your home and you just want to refinance to lower your monthly payment or shorten your mortgage term, it doesn’t matter if your home appraises lower than you think it should. Sure, it may be a bit depressing, but if you’re not selling your home it doesn’t matter. Take advantage of the rates!

“It’s tough to get a mortgage.” Not really. It can indeed be a process, and, no doubt, lenders are turning over rocks more than ever. But that doesn’t mean there isn’t mortgage money available. Don’t listen to your friends and neighbors… ask a professional.

The whole real estate and mortgage world often gets bad press because, as we know, the media loves for you to think that the sky is falling; it makes good press. But ask the question before you assume the bad news applies to you.

David Rosen- "The Mortgage Guy"

http://www.the-mortgage-guy.com/

Latest Longmeadow Home Sales Data

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sun, 04 Jul 2010 20:24:00 +0000

Shown below are a series of charts summarizing the latest single family home sales in Longmeadow, Massachusetts for the first six months of 2010. These results include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.

1Q-2Q/2010 Highlights

The first five months of 2010 showed very low home sales levels with February, April and May 2010 being the three of the worst sales months in the past 5 years. Only 5 homes were sold in February. However, June showed one of the best months in the past five years with 31 homes being sold. This rebound in June home sales may have been due in large part to the $8000 home buyers credit for sales transactions closing by June 30.

With the large number of sales in June Longmeadow's January - June 2010 sales results were only slightly lower than the comparable period last year (see figure 1) but much lower (-27%) as compared to 2007- the last good year for home sales in Longmeadow.

1Q-2Q/2010: 73 1Q-2Q/2009: 74 1Q-2Q/2008: 64
1Q-2Q/2007: 100 1Q-2Q/2006: 94

[click to enlarge chart]

During the 1Q-2Q/2010 median sales prices for homes in Longmeadow appeared to stabilize at ~ $300,000 (see figure 3). However, median prices in June 2010 were still 14% lower than the peak reached in September 2007 ($301,250 vs. $350,000).

A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has been in place for the past two years (see figure 2). For the 1Q-2Q/2010 ~ 40% of the home (29 out of 73) were sold below the current assessed value- with some homes selling more than $100,000 below assessment values.

Let's hope that the June sales data and the current low mortgage interest rates will continue to provide some stability to the Longmeadow housing market.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz
LongmeadowBiz.com- Longmeadow's #1 Business and Community website

FOR SALE BY OWNER / QUICK GUIDE TO SUCCESS- PART II

noreply@blogger.com (Nyles L. Courchesne Real Estate Attorney) — Sat, 24 Apr 2010 21:26:00 +0000

Step Two: Determine Your Costs. Your entire budget for selling your home will consist of two sets of costs, costs of preparation and marketing and closing costs. Costs of preparation and marketing will be paid by the Seller in anticipation of the sale and usually "outside of the closing" - meaning that these fees are paid in advance and will not appear on the settlement statement. Closing costs are the fees that will be paid at the time of closing and will appear on the settlement statement.

A. Preparation and Marketing Costs: Every FSBO Seller should expect the following costs in preparing and marketing their property for sale:

Appraisal: As discussed in part one of this series, in determining the value of the home an appraisal is a must. Expect to pay $200 - $400 for a professional; appraisal.

On-line Services: Different web sites offer on-line marketing opportunities at little or no cost. One of the most professional services available for on-line marketing and a fantastic resource for Selling your own home in Longmeadow and East Longmeadow can be found at LongmeadowBiz.com. For $129 LongmeadowBiz will provide you with a great web marketing tool with some unique features.

Another great resource for marketing your property can be found at Craig's List Talk to Jim Moran at LongmeadowBiz- (413) 567-9428 if you want a classy appearance on Craig’s List (see example).

Listing Only Services: The Multiple Listing Service (MLS) is the place where homes are advertised to Realtors and their Buyers. There are a couple of companies that provide listing only services in Western Massachusetts. They offer flat fee MLS services ranging from less than $100 to $325. Carnevale Real Estate in Wilbraham, MA offers a special rate of $79 for 3 months. Call Tina at (413) 262-3800 and mention LongmeadowBiz to get this special rate.

Local Newspaper Ads: It is also a good idea to advertise the home and any open houses that you wish to have in the local paper during the week and on Sundays. Prices will vary.

Smoke Detector / Carbon Monoxide Detector Certificates: Every home / unit, sold for residential purposes in Massachusetts must be accompanied by a smoke detector certificate issued by the fire department from the City or Town in which the property lies. The purpose of the certificate is to ensure that the home being sold has adequate smoke and carbon monoxide detectors. A Seller should contact their local fire department to determine how many and what type of detector is needed for each living area of the home so that the home "passes" when it is inspected. The fee is typically $25- $50 per living unit, i.e. if you are selling a three family home in some Cities or Towns you may have to purchase three certificates.

Additional Costs: Additional costs of sale may occur if you have any unusual features to your property such as a septic system, asbestos, lead, underground fuel tanks or any environmental issues on the property. These items may cost thousands of dollars to bring into compliance before a sale is possible. Generally speaking it is in your best interest as a Seller to remove all of the above mentioned issues from the equation before you enter an agreement with a Buyer. You could save thousands of dollars. You should review these issues with your attorney before you list the property for sale.

B. Closing Costs: The closing costs consist of mortgage payoffs, tax stamps, attorney fees, overnight fees, discharge recording fees and discharge tracking fees.

Mortgage and Lien Payoffs: These are the payoffs for the mortgage, equity lines and any other liens that you may have on your home. When reviewing these numbers keep in mind that the interest is always running and that making a payment will not reduce your balance by the entire payment.

Tax Stamps: Tax stamps are a Seller fee that is collected at the registry of deeds at the time of recording. Tax stamps are calculated at $4.56 per $1,000 of the consideration listed on the deed. A deed for $100,000 would require tax stamps of $456.

Attorney Fees: Expect to pay a little more for attorney fees when selling your own home. I charge $200 more due to the additional time that I will spend with my clients. A typical fee for FSBO representation is $800.

Overnight Fees: Every mortgage and lien must be paid to the day (remember that interest is running) and such payments will be mailed overnight to the creditor. Overnight fees average $20 each.

Discharge Recording: Seller must pay the cost of recording discharges for all mortgages and liens that are on record. This is a one page document from the creditor that indicates a debt is satisfied and removes the lien. Each discharge or release costs $75 to record.

Discharge Tracking: In Massachusetts it is common for the Buyer's attorney to charge $75 per mortgage or lien to track the discharge or release in order to insure that the title is cleared.

Adjustments: Taxes, water and sewer, trash, condo, homeowner's association, fuel and other miscellaneous municipal charges as may apply are all adjusted to the day of the closing. A Seller who has prepaid for an item such as taxes will be reimbursed for the period of time that has been prepaid. Any service that is billed in arrears must be paid by the Seller and will be credited to the Buyer through the day of the closing. In Massachusetts adjustments are calculated so that the Buyer pays for the day of the closing. This usually means that there will be a swing of several hundred dollars for adjustments in the Seller's

Following is an example of the typical costs for a $250,000 sale:

$250,000 sale price
- 1st mortgage payoff of $100,000
- Equity line payoff of $45,000
- Tax Stamps ($4.56 per thousand x 250) = $1140
- Attorney Fee $800
- Overnight Fees ($20 each x2) = $40
- Discharge recording fee ($75 each x 2) = $150
- Discharge Tracking Fee ($75 each x 2) = $150

Net Proceeds = $102,720 +/- adjustments for taxes, water and sewer, etc

Previous posts: Massachusetts For Sale By Owner / Quick Guide to Success- Part I

Nyles Courchesne is an attorney specializing in real estate for the past 15 years. He is a partner with the law offices of Peskin, Courchesne & Allen, P.C., located at 101 State Street, Suite 301, Springfield, MA 01103 - ph. 413.734.1002 - fax 413.734.1002 email: nlc@pcalaw.net and on the web: www.pcalaw.net

Disclaimer: In accordance with rules established by the Supreme Judicial Court of Massachusetts, this web site / blog must be labeled "advertising." It is designed to provide general information for clients, prospective clients and friends of mine and my law firm and should not be construed as legal advice, or legal opinion on any specific facts or circumstances. This web site / blog is designed for general information only. The information presented at this site / blog should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

MASSACHUSETTS FOR SALE BY OWNER / QUICK GUIDE TO SUCCESS- PART I

noreply@blogger.com (Nyles L. Courchesne Real Estate Attorney) — Mon, 19 Apr 2010 01:55:00 +0000

In difficult times, many homeowners who must relocate look to save money by selling their own home, avoiding the Realtor costs. (These costs are typically 5%-6% of the sale price of the home) The purpose of this article is to provide some practical steps to any person attempting to sell their own home. It is important to understand that in order to save money on the Realtor’s fee, an owner attempting to sell their own home must incur other fees and devote a great deal of their time in order to compensate for the services that they are not receiving from a Realtor.

First two steps in selling your own home:

Before you can sell your home, it is important to determine what you will net from the sale. Obviously you must determine if the move is feasible in the first place. Your relocation options will depend on how much money you receive from the proceeds of the sale.

Step One: Determine the Value of Your Home
This is a critical step and most Realtors will tell you it is 80% of their job as a listing agent, i.e. pricing the home correctly is what they are primarily paid to do. In the absence of Realtor guidance, Sellers often look to their city or town's assessor's office to see what value the city or town is basing the property taxes. This figure can be off by tens of thousands of dollars and is not an accurate guide to the current market value. Usually, the assessed value is based upon selling prices in a prior year not the current market selling price.

There are many on-line websites such as Trulia and others that do an automated "Market Analysis". These values may also fluctuate wildly.

The bottom line is that your best bet is to have the property professionally appraised. Such appraisals cost between $200 and $400 and are worth every dime. BONUS: You can hand out the appraisal to potential buyers and use the appraisal for information for your own advertising. (Gary Oakley an appraiser from Western Massachusetts indicated that he would provide an appraisal for $200 - ph. (413) 788-7880, email geoakley@hotmail.com)

Dangers of mis-pricing your home: Saving $10,000 on a Realtor’s commission only to undervalue your property by $20,000 does not make economic sense. Getting a professional appraisal will help you avoid this mistake.

A more common mistake, however is to overprice the home. Over the past five years, the values of homes in some areas have decreased dramatically. However, many Owners today believe that their homes are worth far more than their actual current market value. This misperception leads to overpricing in the current buyer’s market.

The dangers of overpricing the home are three-fold:
1. An overpriced home will sit on the market for a long period of time. If you are relocating, this could result in an Owner carrying two properties - new house and old house - for a long time at substantial costs.
2. Even if the price is adjusted down, some buyers will only look at homes that have come on the market recently. Your pool of Buyers may be reduced to bargain hunters.
3. A property that sits for a long time may create the perception that there is some defect in the home or that the Owner is desperate to sell the home. In both cases this will attract "low-ball" offers.

Ultimately overpricing may cause an Owner to sell the home for below market value and at additional costs. GET AN APPRAISAL.

Nyles Courchesne is an attorney specializing in real estate for the past 15 years. He is a partner with the law offices of Peskin, Courchesne & Allen, P.C., located at 101 State Street, Suite 301, Springfield, MA 01103 - ph. 413.734.1002 - fax 413.734.1002 email: nlc@pcalaw.net and on the web: www.pcalaw.net

Disclaimer: In accordance with rules established by the Supreme Judicial Court of Massachusetts, this blog posting must be labeled as "advertising." It is designed to provide general information for clients, prospective clients and friends of mine and my law firm and should not be construed as legal advice, or legal opinion on any specific facts or circumstances. This blog posting is designed for general information only. The information presented in this blog posting should not be construed to be formal legal advice nor the formation of a lawyer/ client relationship.

1Q/2010 Longmeadow Home Sales are disappointing!

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sat, 03 Apr 2010 00:41:00 +0000

Shown below are a series of charts summarizing the latest single family home sales in Longmeadow, Massachusetts. These results include both MLS and FSBO transactions and are based upon public information obtained from the Hampden County Registrar of Deeds website.

1Q/2010 Highlights

2010 has started out very slowly with January - March home sales down 16.6% from 1Q/2009 and down 39.0% from 1Q/2007. Longmeadow's 1Q/ 2010 sales results seem to be in contrast with other parts of the northeastern US that recently have been showing improving sales volumes. The number of homes sold in the first three months of 2010 were significantly lower than the corresponding period last year and much lower than the last good year for home sales (2007). Only 5 homes were sold in February 2010.

1Q/2010: 25
1Q/2009: 30
1Q/2008: 23
1Q/2007: 41

[click to enlarge chart]

During the 1Q/2010 median sales prices for homes in Longmeadow continued a downward trend after showing some recovery in mid-2009. Median prices in March 2010 were 15.7% lower than the peak reached in September 2007 ($295,500 vs. 350,000).

A large percentage of homes continue to be sold at prices below the official assessment values continuing a trend that has been in place for the past two years. For the 1Q/2010 ~ 45% of the home (12 out of 25) were sold below the current assessed value- with some homes selling over $100,000 below official assessment values.
Let's hope that the warm weather, low interest rates and improving economy will reinvigorate the Longmeadow housing market.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

New MA Smoke Detector Laws Effective April 5th 2010

noreply@blogger.com (Moira Murphy) — Wed, 31 Mar 2010 17:16:00 +0000

Changes to Smoke Alarm Regulations effective April 2010. All homes sold after April 10, 2010 will have to meet the new requirements:
The Board of Fire Prevention Regulations has approved an emergency amendment to 527 CMR 32 Approved Smoke Detectors. This regulation applies to units undergoing sale or transfer of buildings containing up to five residential units. The regulation, which was scheduled to go into effect January 1, 2010, has been moved to April 5, 2010. At that time the regulation will still require photoelectric smoke detectors within 20 feet of a kitchen or bath containing a shower. Areas located beyond 20 feet will be required to contain dual detection by either a single unit or two separate units. In addition to the date change the regulation has been clarified to indicate it applies to residential units constructed prior to January, 1975 that have not undergone major alteration covered by the State Building Code. It also contains a provision for low voltage household warning systems that may have been installed in these homes.
For more information go to: www.mass.gov/dfs , or call the local fire department's prevention office.
Carbon Monoxide Alarms:
Since March 2006 homes have been required to install carbon monoxed detcetors on each inhabitable level as well, this remains in effect.
The smoke certificate required to transfer properties in MA includes both a smoke and a carbon monoxide test performed by the town fire department. This document is required for all closings

Green Living Tips for Homeowners

noreply@blogger.com (Moira Murphy) — Mon, 22 Mar 2010 15:22:00 +0000

The 40th Anniversary of Earth Day is on April 22nd. A great way to celebrate is to go "green", this doesn’t have to be “weird or ugly or futuristic”, or even expensive. Appealing aesthetics in green design are in fact a sustainability achievement. Homes and buildings that appeal to everyone endure They endure for many years through design trends, market cycles and numerous homeowners.
Some important features are: high performance windows, energy efficacies heating system, low-flow toilets and durable composite decking for porches.
When building using the following concepts can assist you to achieve a greener home: site selection and use, local and regional goals, sustainable orientation of the building on the site, storm water management.
Here are a few easy low cost ideas to implement in your home to start a “greener” life:
• Use CFL or LED light bulbs.
• Install low-flow showerheads and faucet aerators.
• Start a compost pile.
• Plant Trees.
• Insulate hot water heater.
• Weather strip and caulk doors and windows.
• Collect rainwater to water plants.
• Paint with low or no VOC paint.
• Replace filters.
• Install a programmable thermostat.
• Plant a rain garden.
• Plant native plants.
• Place appliances or office equipment on power strips to reduce “phantom” load.
• Install motioned sensors in common areas to turn off lights when no in use.
• Install water efficient restroom fixtures.
• Take advantage of day lighting.
• Provide recycling bins.
There has been a lot of talk lately about reducing our ecological footprint sometimes called "carbon footprint". This is a site that measures that footprint: Walkability Score: http://www.walkscore.com/. The following is a list of more great websites to look up “green” living ideas:
• http://www.epa.gov/earthday
• http://www.greenseal.org/
• http://www.epa.gov/
• http://www.energystar.gov/
• http://www.thegreenguide.com/
• http://www.storyofstuff.com/
To actually see and feel some of the latest in green living attend the home show this weekend at the Big E there are plenty of opportunities to “green up” your home. There is a big push towards sustainability. This is a great opportunity to actually see all the new innovative products that are being talked about. There will be building industry experts to explain about these products and possible tax credits. There will also be some interactive booths with touch screens to show how the products are made.
The Home Show March 25th – March 28th. For more information and coupons go to http://www.westernmasshomeshow.com/.
To read about a local example of green building in our area follow this link:
http://bit.ly/boad5K
A Sturbridge house built with geothermal heating, passive solar use, energy efficient spray insulation, radiant floor heating, high energy efficient windows, recycled decking, Energy Star appliances, energy efficient gas fireplaces and more.
If you are looking for something interesting to do this weekend and have been thinking of “greening up” your home, renovating, upgrading your appliances, improving your heating or cooling system this is the place to go.

If you have any ideas or would like to add anything I welcome your comments.

Moira Murphy, ABR, Green
Residential Real Estate Agent
Coldwell Banker Residential Brokerage
Website: Moira.Murphy.net
Email: Moira.Murphy@NEMoves.com
Tel: Direct: 413.575.3643

Longmeadow 2009 Home Sales

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sat, 02 Jan 2010 00:04:00 +0000

Below are the 2009 real estate sales results for Longmeadow, Massachusetts...

The full year 2009 results show that the number of houses sold in Longmeadow was 3.8% higher than corresponding 2008 results (165 vs. 159) but home sales were still significantly lower than recorded for prior years (2006- 189, 13% lower and 2007- 198, 17% lower).
During the second half of 2009 median sales prices for homes continued to show improvement from the lows observed in early 2009. Median prices at year end were 15.2% higher than December 2008.
The number of houses sold in the last two months of 2009 was significantly higher than each of the previous three years: 2009: 29 2008: 19 2007: 19 2006: 17

Some less favorable trends include:

A large percentage of homes continue to be sold at prices below the official assessment values continuing a trend that has been in place for the past two years.
For all of 2009 ~ 55% of the home (90 out of 165) were sold below the current assessed values.
Full year 2009 results showed that higher priced homes (>$400K) may be more difficult to sell in the current environment with only 39 out of 165 homes (24%) sold priced above $400,000. (Currently there are 24 homes out of 60 listings (40%) on MLS that are priced above $400K.)

[click to enlarge chart]
Below is a chart showing the relationship between recent Longmeadow real estate Sales Prices and Assessed Values (data obtained from Vision Appraisal website).

During November- December 2009 time frame ~45% of the homes sold (13 out of 29) were at prices less than the official assessment value. For all of 2009 55% of the homes (90 out of 165) were sold below the official assessment value.

Note: The latest November/ December home sales results are compared to the new FY2010 assessed values.

During the second half of 2009 median sales prices for homes continued to show improvement from the lows observed in early 2009. Median prices at year end were 15.2% higher than December 2008.

Despite these mixed results it does appear that a bottom may be forming for the Longmeadow real estate market (as well as the rest of the US). This combined with a recovery economy may lead to a more normally functioning real estate market in 2010.

Here is a link to the data for 2006-2009 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz
Vacation Rentals at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

Massachusetts Real Estate is Turning the Corner

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sun, 29 Nov 2009 16:32:00 +0000

The news has been filled with some very positive commentary about the improving state of the real estate market in Massachusetts. Below are excerpts from the Boston Globe and Bloomberg News- Read the full stories by clicking on the links for additional details.

Home Sales Rise in Massachusetts- Boston Globe, November 25, 2009

“Sales of single-family homes rose by 17.2 percent in October, compared with the same month last year, marking the fourth consecutive month of increases, according to Warren Group, a private company that tracks real estate data. The number of sales, 4,295, marks the highest total for the month of October since 2005.”

“The number of Massachusetts homes on the market on Oct. 31 was down 15 percent, compared with the same time last year, the 19th straight month that inventory had declined, according to the Massachusetts Association of Realtors, which also released data yesterday. Inventory of homes for sale in October was the lowest for that month since 2002, the association said.”

Home mortgage rates are at some of the lowest levels in a long time which should significantly help the recovery in home real estate sales.

Here is a recent story from Bloomberg News…

Mortgage Rates in U.S. Match Record Low Set in April - November 25, 2009
The average 30 year fixed mortgage rate for single family homes was a record low 4.78% while the average 15 year rate was 4.29% Read the full story for additional details.

Hopefully, by next Spring we will see a return to a more normal real estate market.

The Real Estate Market is Hot!

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sat, 21 Nov 2009 02:16:00 +0000

We are only a week away from the holiday season and typically, this is the time of year where the real estate business starts to wind down a little. This year, things are very different than in years past. In fact, the 2nd half of the year proved to be the busiest our office has seen in three years. As well, we are seeing bidding wars on properties that are priced to market and buyers that continue to come out in droves to take advantage of opportunities in the marketplace.

Many economists feel that this splurge in real estate sales is due to the fact that the extension and expansion of the tax credit has had an enormous impact on the market. This makes good sense if you consider the impact the Cash for Clunkers tax program had on auto sales this summer. Other local economists feel that this spark is due to the fact that unemployment rates in both MA and NH are statistically much lower then the national average so that the number of qualified home buyers in our marketplace is higher as well.

Whatever the case, the real estate market is hot! As the weather cools and the leaves on the trees are almost gone, I look forward to doing my small part in helping buyers and sellers thrive in what appears to be the best market we’ve seen in years.

Sydney Hirsch
Relocation Specialist/ Seniors Real Estate Specialist
Let 24 years of experience work for you!
413-567-5552 (Direct)
413-847-1303 (Cell)
Visit my website at www.sydneyhirsch.com

Plastic Fences Make Good Neighbors ?

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Tue, 03 Nov 2009 21:51:00 +0000

As I drove through Longmeadow this past week I spotted the many signs of the fall season. In addition to all of the trees still ablaze with remnants of a spectacular season of fall colors, there are the many different methods that abound in Longmeadow for dealing with the leaves after they fall. Longmeadow for many years has not collected leaves at curbside so residents have had to make their own arrangements.

Bagging leaves on some streets is sometimes a contest to see who can bag the most leaves...

Some people rake the leaves to curbside (or into the street) and have them removed.....

I've always been a little bit frustrated that the leaves from my neighbors' trees and lawns blow onto my lawn (I have no maple trees but have a lot of maple leaves)....

Here is a possible solution that one Longmeadow homeowner is trying this year....

It will be interesting to see how effective adding a 3 ft plastic fence around the perimeter of your property is to reduce the volume of leaves.

Perhaps, next year this will become a new "sign" of fall in Longmeadow

Latest October 2009 Home Sales for Longmeadow

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Tue, 03 Nov 2009 18:23:00 +0000

There was some good news as the median price seems to be holding significantly above the low reached earlier this year (~ $320,000 vs. $296,000 in February 2009).

Other highlights of the recent sales data include:

Median home prices in October ($320,000) are up ~8% from the February 2009 low ($296,000) but down 8.6% from the October 2007 peak ($350,000- see figure 2).
Home sales in the month of October were lower than one year ago (10 vs. 17) and 2009 YTD figures are relatively flat vs. 2008 (136 vs. 140, a 3% decrease- see figure 1).
A large percentage of homes continue to be sold at prices below the official assessment value continuing a trend that has been in place for greater than one year (see figure 3).
2009 YTD data suggest higher priced homes (>$400K) have been more difficult to sell with only 30 out of 136 homes sold were priced above $400,000.

Figure 1
[click chart to enlarge]

Figure 2
[click chart to enlarge]

Figure 3
[click chart to enlarge]

It does appear that a bottom may be forming for the Longmeadow real estate market (as well as the rest of the US). This combined with a recovery economy may lead to a more normally functioning real estate market in 2010.

Here is a link to the data for 2006-2009 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz
Vacation Rentals at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

Western Mass Real Estate Stats

noreply@blogger.com (Sydney Hirsch, Re/Max Prestige) — Thu, 08 Oct 2009 15:53:00 +0000

Real estate stats are now in for August and are showing that single family home sales in Western Massachusetts rose 16.7 % in August, 2009, from 431 in August 2008, to 503, according to the Realtor Association of Pioneer Valley.

But the median price fell 5.5% from $210,000 to $198,500, continuing a pattern of strong sales and weak prices.

There were 5.9 months of supply on the market at the current rate of sale in August, compared to 7.8 months of supply a year ago. but the average home is spending longer on the market, 187 days as of 2 months ago, up from 168 days in August 2008, also according to statistics released by the Realtor Association.

Sydney Hirsch

Seniors Real Estate Specialist

Relocation Specialist

Let 25 years of experience work for you!

413-567-5552 Direct

413-847-1303 Cell

http://www.sydneyhirsch.com/

Longmeadow Real Estate Continues to Improve

noreply@blogger.com (Jim Moran, LongmeadowBiz) — Sat, 12 Sep 2009 16:52:00 +0000

There was good news this month....both home sales and prices in Longmeadow are increasing!!

Home sales in the month of August were significantly higher than one year ago (19 vs. 12) and YTD figures improved to show an increase vs. 2008 (110 vs. 103, a 7% increase).

[click chart to enlarge]

Median home selling prices in August continued to increase toward the peak reached in October 2007 ($350,000 vs. $335,000 in August). Median home prices in Longmeadow are up 8.1% from August 2008 ($335,000 vs. $310,000).

With an increasing number of homes being sold and the accompanying increase in median home sales prices, it does appear that a bottom may be forming for the Longmeadow real estate market (as well as the rest of the US). This combined with a recovery economy may lead to a more normally functioning real estate market in 2010.

Here is a link to the data for 2006-2009 Real Estate Transactions that were used to develop the above graphs.

Longmeadow FSBO
East Longmeadow FSBO
House for Rent at LongmeadowBiz
Vacation Rentals at LongmeadowBiz

LongmeadowBiz.com- Longmeadow's #1 Business and Community website

Real Estate Buzz at LongmeadowBiz

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