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What are Typical Closing Costs?

Fri, 22 Aug 2025 13:36:35 -0500

What are typical closing costs? How do I compare Loans (other than interest rate)?

Closing Costs Types: Loan Fees and Pre-Pays

Whenever you're talking about Mortgages, there's really two types of closing costs. It's easy to get confused, so I thought I'd write this post to keep it clear. First up are what we could call mortgage related closing costs. These are the costs a bank or other lender typically needs to pay in order to make sure that the property and the buyer are able to be financed. They may have different names to different lenders but they usually are things like:

1) Credit Check - to check the buyers' credit worthiness

2) Plot Plan - to make sure the house is where it's supposed to be and doesn't have any obvious location problems

3) Appraisal - a third party opinion of the home's value.

4) Origination fee - the fee charge by whoever is doing the paperwork, could be a bank or a mortgage rep.

5) Attorney or Title Company Fees - these fees are paid to the person who conducts the closing, prepares the HUD, etc.

6) Recording Fees - These are fees owed to the state/county in order to record the sale at the local registry, generally required by most lenders.

7) Lender's Title Insurance. Title insurance is generally required for all mortgages. It's not inexpensive, and varies with the price of the house. Although almost always required, Lender's Title Insurance is rarely included in any advertised "no closing costs" mortgages. The other closing costs in this section are usually included (either all or most) in no closing costs loans.

These costs are generally similar no matter how expensive the home you purchase is (except Lender's Title Insurance). I've found lenders can charge different prices for each one, but the total of these fees, typically, should be under $3500.

Pre-pay Mortgage Expenses

Pre-pays are actually money you are paying yourself for future expenses. They are typically:

1) Home Insurance - generally, a full years home insurance policy is paid up front.

2) Real Estate Taxes - although most banks pay the taxes for you out of the escrow fund, someone has to fill up the escrow fund - and that's you!

3) Water/Sewer bills

4) Other municipal bills

5) Pre-pay Mortgage - often times you will need to make a partial mortgage payment at close. It all goes to the house, but it can add to your initial costs.

These costs generally VARY with home much your house costs. So a home that costs 100K has much smaller pre-pays than a house that is 400K, or 600K.

Optional Closing Costs

There are some other fees that are optional, but may have significant impacts to your over all "home purchase bill".

Mortgage points: If your loan has points, you're likely paying money to insure a lower interest rate over the life of the loan. Generally, points make sense if you hold the loan a long-time and the cost of the points (which varies) isn't too much vs. the interest rate discount you are getting. As a rule of thumb, I generally think a point should pay for itself in about 18 months or less. (so if a point was $3000, you should be saving about $170 a month vs. the same loan with no points). That's just a guideline, everyone should review their own situation carefully to determine the "value" of a point.

Buyer's Title Insurance: Ah, more title insurance. This policy is for you the buyer. While not required, it's generally recommended.

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About Matt Heisler

Matt Heisler is a real-estate professional and owner of this website. He has been selling homes in MA for buyers and sellers for over 20 years. He is an expert in foreclosure purchases, short-sale purchases, short-sale sales, buy and hold investing, fix and flip investing, and of course traditional residential home sales. He is happy to take questions as they pertain to real estate on Title V, Radon, Termites, Sump Pumps, Roofs, Foundations, Wells, Septic Systems, Cash-Flow, Staging, and a host of other housing issues. As a Vanderbilt University alumnus, he is proud to serve his local community.

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Home Styles for Beginning Buyers, from Colonial to Antiques

Sun, 17 Aug 2025 20:40:05 -0500

Hey! Here's my Intro to House Styles Video!

Commonly Found House Styles

While not exhaustive, I hope this provides a good overview of some of the basic styles here in MA. I'm glad you found this page, which has been one of the most popular here on the blog. Please note, that I think its a good idea - especially if you're in certain price ranges - to be open to various houses styles that might fit your needs - but that you aren't "used to". All houses have drawbacks, and positives, but finding the right mix of those for your situation is what makes a great match! Since a lot of people are particularly interested in what make a Cape different from a Colonial, those two are listed first.

Colonial House Style

This Colonial type home is

popular throughout Metrowest

Colonials are the most popular house style. They've been around so long, that it can be useful to talk about the various sub-styles. These are not necessarily "official", but I find them useful. Antique Colonial, Garrison Colonial, Flat-front colonial and Contemporary colonial are good starting points. Antique colonials are homes that predate today's housing styles - anything earlier than 1940 is a good line in the sand to draw. Garrison Colonials

This Garrison Colonial is easily identified by the second

floor hanging over the first floor.

were popular in the 70's and 80's, and are easily recognizable by the fact that the top half hangs over the bottom half. Most colonials built today are the contemporary kind, and they are distinguished by the complicated roof lines and lack of a flat front. (Older colonials -50's and 60's -typically are flat all across the front and back). Any kind of colonial can have an attached garage or a garage under, which is usually determined by the builder to adjust to the slope of the lot (and to save money). While attached garages are usually preferred, similar colonials with attached garages command price premiums to homes with a garage under.

Cape House Style

Started right on Cape Cod, the classic cape was a three bedroom home with two beds upstairs and one downstairs, but over time developers built several different bedroom configurations for these homes, including 3 beds all up stairs, 2 up 2 down, and more recently, 4 beds upstairs. These homes have been popular since the 1940's, both for their curb appeal and their cheaper (than a colonial) costs. Today, there are relatively few differences between modern capes and colonials, except for one - the roof line generally interferes with the living space on the top floor.

Roof lines interfere with the top

level in most capes. Dormers are common

but not necessary.

If the roof line has no affect on any upstairs rooms, it's a colonial, otherwise, it's a cape! Easy right? Smaller capes have very small bedrooms upstairs, which today's buyers no longer care for. Many Capes have It's not a question of age, though, as some older capes have very spacious rooms upstairs, and most need to be checked out up close to see for sure. If you can get a good side view of the Cape, you can often see how much space is probably upstairs, but don't forget many cape have rear dormers that significant expand the head room on Capes.

Ranch House Style

Ranches have just one main level.

Ranches are desirable for their one-level living. Unlike Capes and colonials, ranches have the kitchen, bedrooms, and all living space on one level. Commonly built without basements in much of the country, the majority still have basements in New England. Ranches are expensive to build on a square foot basis, so as land costs increase, they are a less common choice for developers.

Split-Level House Style

Splits are easily identified by a door that is halfway

between the first floor windows and the

lower-level windows.

Because of their practicality - low cost and large living space - the split-level home is alive and well in New England. Generally, you don't see too many until the 1960's, and they made up a lot of the stock in the 1970's and 1980's. Split level homes have ranch floor plans, but generally have additional living space in the lower-level. the hallmark of the split is the stairway - generally, the front door brings you to a landing that has a half flight of stairs up to the primary living area, and a half flight down to the garage, basement, and additional living space.

Raised Ranch

Raised Ranches have just two levels

and they look like colonials a bit, but

the kitchen and bedrooms are on the

second floor.

Often confused with the split, a true raised ranch is a home where the living area (kitchen, bedrooms, etc) is up a FULL flight of stairs. (So for those of you saying a split and a raised ranch are the same thing, technically they are not). Generally, these homes are built with garages and additional living area down stairs, but the whole house is basically upstairs, in a classic ranch pattern. Although a raised-ranch can be the right solution for a particular lot, they are unusual and less popular than other house styles. From the street, they look a lot like colonials, but the garage under the main floor next to the front door is hallmark of this home.

Antiques

This Large Victorian is easily spotted

with the large amount of decorative trim and complex roof

that adorns the outside.

Older homes (those built before 1940) were, for the most part, built at a very individualized level. Although they share certain characteristics, with the passages of time and often countless renovations, predictions about the floor plan are often difficult to make. A generally useful description is Victorian (which typically involves some significant details on the inside and out) or farmhouse, which can be much simpler, less ornate homes. Farmhouses built before 1890 in this area often have post and beam construction of the period, and generally have some functional issues (low ceilings, etc) that reflect the limited house building technology of the period.

Multi-level

A Multi-level homes typically have the main living level where the front door is, and the bedrooms are a half flight up. It's not uncommon for bigger versions to have 4 levels of living space.

The twisted cousin of the split, the less common multi-level typically has 3 or four levels of living, with each level separated by a half flight of stairs. Like split-levels, these homes often offer great usable space at a great price, and can be surprising practical. But aesthetically they aren't as popular, probably just because homeowners are used to other styles.

Multi-levels typically have the main level (kitchen, family room) even with the door - in contrast to splits where the door is neither on the main level or the lower level - and the bedrooms are usually up a level. There are usually three small bedrooms up there. Their can be one or two levels down from the main level as well, providing plenty of physical space.

Contemporary

These homes are often characterized by their different look, both inside and out. Inside, the main features are open spaces, vaulted ceilings, and large windows with lots of light. Unfortunately, the majority of them were built in the 1980's, and they suffer from stylistic choices of that period - vertical siding, dark wood trim, and windows that aren't as efficient or useful as today's modern windows. These homes still appeal, however, to those who are looking for something else, something different, and when brought up to modern day palettes, can be stunning show pieces.

Fun Fact

I have actually lived in 3 of the homes pictured! Can you guess which ones? Take a stab in the comments!

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About Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Condominium Complexes in Massachusetts With Driving Tour Videos And Map

Sun, 10 Aug 2025 21:53:56 -0500

Looking for Massachusetts Condos Information? Look no further. Here's a great summary, by town, of some of the newer, larger, and more interesting complexes in Metrowest.

View Metrowest Condominium Complexes in a larger map

Key:

Blue Pointer: Standard Condominium Complex

Green Pointer: Active Adult Community (Over 55+) Complex

Purple Pointer: Affordable, Income restricted Units At This Complex

**Click on the "pushpins" on the map for the Names of each complex!**

Town Detail Pages

Ashland Condo Complexes

Featuring: Village of a Thousand Pines, Spyglass Hill, Shadow Creek, Village of the Westerly Condominiums, Village of the Westerly Condominiums, Mayflower Village

Auburn Condo Complexes

Featuring: Forest Park, Pine Ledge, Whitman Bailey

Available Tours:

Forest Park, a popular starter community

Pine Ledge

Whitman Bailey , an Over 55 Complex (recently built!)

Show me Current Condos for Sale In Auburn!

Boylston Condo Complexes

Featuring: Timberbrook Condos

Charlton Condo Complexes

Featuring: Upham Farms, Countryside Village Condominiums

Clinton Condo Complexes

Bigelow Mills

This completed, 37 unit complex has wonderfully stylistic units, with brick and modern amenities. These renovations are a rarity in Metrowest, so if you like this style, you should put Bigelow mills on your list.

The Woodlands

The Woodlands is a large, sprawling complex carved into the hills in Clinton. There are a wide variety of floorplans and styles, everything from significant multi unit buildings to duplexes, townhouses, garden style, some units have basements, and some do not. You can see many units in the Woodlands and not have a understanding of all the choices available! Although the original developers of the Woodlands were forced by the real estate pull back to sell part of the development back to the bank, it is likely that the new owners will be able to raise the capital to continue developing the complex. Fees are a little on the pricey side, (but you do get a lot for them) at the woodlands, and vary greatly from unit to unit.

SHOW ME CURRENT CONDOS FOR SALE IN CLINTON

Framingham Condo Complexes

Bishop Gardens/ Bishop Terrace

Bishop Gardens is a 112 unit complex has mostly has practical 2 and 3 bedroom units in popular townhouse style. They are usually 900-1300 sq feet. Bishop Terrace is a similar complex with similar units. Many of the units have basements, some of which have been finished. It is an older complex, and as such, some units have been updated and some have need to be. No garages here, all outdoor parking and it is tight with few open spaces. The units were not built with A/C either, so most do not have it.

Chapel Hill West

This completed, 168 unit complex has larger units up to 1700 sq feet. Many units have senic views of the Sudbury Reservoir, and terrific access to the Mass Pike. These units are garden style (1 level). There are no private garages, but there is a common area garage to which some units have deeded rights. It is a high rise tower, and the fees can get large as they often do in high rise buildings, and vary with the size of the unit, but do include heat, hot water, and several other expenses.. Great Access to the mass pike, as the exit is right across the street.

Chapel Hill East

This completed, 180 unit complex has larger is right next to Chapel Hill West. Many

units have scenic views of the Sudbury Reservoir, and terrific access to the Mass Pike. These units are garden style (1 level). There is some underground parking. It is a high rise tower, and the fees can get large, but do include heat and hot water, an inground pool, exercise area and other amenities. It is an older complex, and as such, some units have been updated and some have need to be.

Victoria Gardens

This completed, 18 unit complex off of Concord St in Northeast Framingham gets Kudos from me. Why? They were built with Mansard roofs. If when you pull in the driveway, you want to feel that you own a special place, the curb appeal of these units will not disappoint. Having said that, the units at Victoria Gardens are all three levels of living, so they won't work well for folks who don't care for stairs. 1 Car garages, A/C are the norm, and the units are well appointed inside.

Windsor Green

Windsor Green is a completed, 200 unit complex that has practical townhouse units (two levels). There are no garages. The units are priced in the low 200's, primarily due to their size (about 1000 sq feet) and age (they were built in 1970). They are in a terrifically convenient location on the North side of Framingham.

SHOW ME CURRENT CONDOS FOR SALE IN FRAMINGHAM

Grafton Condo Complexes

Forest Hills

This completed, 220+ unit complex was built out in the early 2000's, with accompanying garages. This complex is not an adult community. These units are located close to the 122 interchange with the Mass Pike. Enjoy my Driving Tour of Forest Park in Grafton!

Hilltop Farms

This completed, 258 unit complex has larger units up to 2000 sq feet, with accompanying garages. This complex is not an adult community, and it's young age, built in 2005, means that the units have modern amenities and styling. They are located in south Grafton, so they are a little less convenient to the pike than other complexes in Metrowest.

Lordvale Acres

Flint Pond Estates

This 72 unit complex has larger units up to 2000 sq feet, with accompanying garages. This complex is also not an adult community. Many of the units have 3 bedrooms but only 1 car garages, which is an odd choice, but may work for some folks. They have central air and basements, which I think are always a big bonus with condos. These units are located in North Grafton, and offer great mass pike access.

Winslow Point, Grafton MA

Winslow Point is still under construction, and their one level units in West Grafton make them some of the more affordable new construction in the area.

SHOW ME CURRENT CONDOS FOR SALE IN GRAFTON

Holliston Condo Complexes

Balancing Rock Village

This in process, 49 unit complex These units are designed with modern amenities, such as garages and A/C, designer kitchens, cathedral ceilings, and other features all in floorplans around 2000 sq feet. With many lots and units for sale, and prices under 500K, it should be a stop on your list if you are in the market for an adult community. Just a short distance from beautiful downtown Holliston. These units are on municipal sewer.

Hollis Hills Preserve

This in process, 32 unit complex is another complex designed for active adults. These units are also designed with modern amenities, such as garages and A/C, designer kitchens, cathedral ceilings, and other features all in floorplans around 2000 sq feet. These units are single family units, . This complex is being built essentially in downtown Holliston, which should be a huge draw. These units are on a private sewer system.

The Orchards at Holliston

This in process, 72 unit complex is for all buyers. The units have different floor plans, some with master bedrooms on the second level, and some with first floor masters. With sales in the mid 350's, there's good value here for Holliston, but these units are selling quickly, and delivery for some units will be spring 2012. Some units may be available now. These units are on a private sewer system, but have town water. Fees are currently mid 200's.

SHOW ME CURRENT CONDOS FOR SALE IN HOLLISTON

Hopkinton Condominiums

Featuring: Stagecoach Heights, The Preserve, Peppercorn Village, Deerfield Estates, Sanctuary Lane Estates, Indian Brook Condominiums, The Trails (Legacy Farms).

Hudson Condo Complexes

Deer Path Farms Condominium

This luxury units being developed are very unique in the Metrowest Condo market. Offering significant contemporary features - open floor plans, vaulted rooms, and a large number of glass walls and skylights, these spaces are for the those who want something different. At over 3500 square feet, they aren't small or economical, and provide a alternative for the high end condo buyers. Its a smaller 44 unit complex, and it is not finished. This complex is marketed as custom built, so other units may differ substantially from those currently being marketed. City/Water and Sewer.

Sconset Village-Sauta Farms

This young 66 unit active adult community has been completed, unlike many being developed in Metrowest. These units are often 2500 sq feet or so, with two bedrooms, and bonus space in the basement. 2 car garages, A/C and modern finishings. On the expensive side for inventory in this space, over 550K.

Westrdige Village, or the Village at Westridge

This complex is large in scope, and relative to many over 55 Complexes in this area, relatively dense. However, architecturally the curb appeal is enhanced by the many different kinds of units and floor plans that are available here - including some harder to find stand alone units (even if they are right next to someone else!). With a nice finish level and very good amentities, Westridge is a good destination for that next staycation!

Esplanade

This complex is in a location convenient to downtown Hudson. These units remain among some of the most affordable over 55 units in the area, largely to their smaller sizes and apartment style set ups. Some have covered parking, and the finish level here is very nice, largely making for turnkey purchases.

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Marlborough Condo Complexes

Ice House Landing

Ice House Landing is very close to the new APEX complex, downtown Marlborough, and the 495 route 20 interchange, making it an ideal location for many folks. These younger units won't overwhelm you with space, but their prices are reasonable, and their modern finishes mean they generally do not require updating at this time. Be forewarned that not all units have basements, and there are price differences between those that do and those that don't.

Renaissance Lofts

A new conversion in downtown Marlborough, it offers the marketplace with styles of converted factory buildings and lofts, made popular in more metropolitan areas, and offer some interesting spaces in an evolving part of Marlborough

Assabet Ridge/The Regency

This over 55 Complex is young and spacious, with plenty of amenities. Located between Marlborough Apex complex and Hudson downtown, there are plenty of shopping and dining options within just 10 minutes at this location.

Village at Crane Meadows

This active adult community (55+ and over) has 91 units and was built around 2005, so these units are nice and still "like new!" These units have open spaces and cathedral ceilings, modern amenities like two car garages, and A/C. Although the units technically have three levels, most of the living area is just on the main-level. Most units are two bedroom units. With a fee around $300, and recent sales under 350K, these units are practical financially as well. Water and sewer taken care of by the town of Marlborough!

Williams Burs Heights

This complex is often marketed as single families. The fee is fairly nominal, and there are few "condo-like" amenities, so although technically condos, it may make more sense to think of them as single families with an HOA fee. (Home Owners Association Fee). Units are around 1400 sq feet, have a couple of different styles, and no garages. Prices have been near 200K.

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Medway Condo Complexes

Sanford Mill Condominiums

This former mill right on the Charles River has been beautifully redone for those seeking the more aesthetics that you can get with refurbished mill buildings. Some units have lofts/multi-levels, and they all have at least some exposed brick and beam.

No of Units: 69
Adult Community: No
Water/Sewer: Municipal
Garages: No
A/C: Yes
Unit Types: Smaller 1 and 2 bedrooms

Woodside Condominiums

This 52 unit complex was built in early 2000-2001, and has some well lit units with spacious floor plans. With City Water and City Sewer, plus gas heat, they will remain popular for some time.

No of Units: 52
Adult Community: No
Water/Sewer: Municipal
Garages: Yes
A/C: Yes
Unit Types: Larger 2 bed, 2.5 bath units

Show me the latest condos for sale in Medway!

Medfield Condo Complexes

Olde Village Square

Olde Village Square is a fairly unique complex both for it's prices, and it's "tight" neighborhood layout. You won't find many complexes with this mix of factors, and if you are looking for a luxury layout in a house-like condo without a lawn to worry about, this high end development may appeal to you.

Thurston Place

The condominiums at Thurston Place are stand-alone units that have approximately 2000 square feet or more, 2-car garages, A/C, and contemporary floor plans. The exteriors have nice detail and finishings. There are just 11 units in the complex off route 109, and the 'lots', like Olde Village Square, are very small. These units are under 600K, but may run more with options, and the fees have not been determined at this time (buyer beware...).

SHOW ME CURRENT CONDOS FOR SALE IN MEDFIELD

Milford Condo Complexes

Walden Woods

Walden Woods is a 165 unit complex that is being developed. The good size units (approx 2000 sq feet) have cathedral ceilings, fireplaces and two car garages . Close to the Hopkinton line, located in North Milford. There are several plans available and lots to choose from as of this writing, The complex is not an adult community, and is generally priced near 400's.

Zain Ridge

Zain Ridge is an under development mixed zone community of 70 units, where 18 have an over 55 restriction. These are two bedroom units with one bedroom upstairs, and the master on the first floor. These 1500 square foot units look small from the front, but with prices from the high 200's to the low 300's, they are certainly worth a look. Near the Holliston line.

LELAND STANFORD FARM

This 80 unit, not completed, under development community has floor plans that look quite similar to the complexes on America's Way Boulevard, in Ashland. It's the same builder, so that's probably not such a surprise. For around 300K, buyers get quite a lot, A/C garages, good sized family rooms and kitchens, but there are lots of stairs in this townhouse style, so that should be taken under consideration. Town Water, Town Sewer at this complex.

Granite Woods

This 32 unit complex, competed in 2004, has some attractive town house style condos, typically in duplexes (side-by-sides). 1500 sq feet and 1 car garages can be expected. Note, high tension power lines are near this location (see map), and are visible from the property. Town Water, Town Sewer at this complex.

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Millis Condo Complexes

Pine View

This 33 Unit complex has some units with pretty practical floor plans and units with basements. Basements are a great perk when condo buying, as many of us have too much stuff and limited areas to put it. These units were built in the mid 80's, and many still reflect the styling of the period (stained wood work, brass, etc). The units are typically heated with electric, which is offset a bit by the shared walls, limiting outside exposure.

RockView Meadows

This over 55 Active Adult community is under construction and has 42 projected units. These units, like other in process condo communities, consist of fairly large sizes (2200+ sq feet or more) and modern amenities (2 car garages, A/C available). This complex has low fees (as of this writing) but new complexes often see their fees increase as time goes on. The units are typically duplexes, so you only have one "shared" neighbor.

SHOW ME CURRENT CONDOS FOR SALE IN MILLIS

Natick Condo Complexes

Nouvelle at Natick

This high rise is Metrowest offers one of the few truly urban options for condo hunters. Although fees are terribly high, they may come down as this project continues to sell units and fill the nearly 215 units planned. Early buyers were lured in to vastly overpaying (the perils of buying direct, I'm afraid, you can read more here), but current prices are much better aligned with reality (with sales mostly in the 400's to 600's (2014). These units range from 1 beds to units with master suites, and some specialty units. As part of new Natick Mall complex, walkable access to stores and restaurants is the best in Metrowest. These units and their modern styling and location remain unique in Metrowest, and buyers will pay more to live here than properties of comparable size. (Parking at Christmas time will still be an issue, however.) It should be noted that the fees are about $1/sq foot / month at this writing, which is a lot.

Natick Village

This 865 unit complex is one of the largest in Metrowest. Currently, owner-occupancy in this complex is under 50%, which may affect the purchase of some unit owners. Most units for sale are under 200K (yr: 2012), which is terrific affordability in desireable Natick. Units are typically small, however, with most units under 900 square feet, and most are under 800 square feet. Conveniently located off 135, they offer great access to much that Natick has to offer.

Village at Pond Street

This 9 unit complex is new construction. These extra large luxury units, at over 2700 sq feet, come with 2 car garages and lots of other amenities, but also come with a very Natick like price tag above $600K (yr: 2012). These 3 bedrooms units with colonial like floor plans are going to appeal to families looking for space and new construction at a good price in Natick.

South Natick Hills

This 268 unit complex is new construction. Streets include Allison Way, Morgan Drive, and Sienna Way. There are different types of units at these complexes. Some large luxury units, at over 2000+ sq feet, come with 2 car garages A/C, Master Baths and 3 Bedrooms. Note that the master bedrooms are typically on the first floor, with two bedrooms upstairs. These homes are built by Pulte. Prices are north of $600K (yr: 2012). There are some smaller options with fewer amenities on Morgan drive, where you have 1700 sq feet, no garage, and a single level of living (garden style). These units sell in the mid 300's-400's, depending on size. (yr. 2012) Town Water and Town Sewer at this complex.

Deerfield Forest

This 335 unit complex is very similar to Natick Village. Streets include Walden, Squire, and Thoreau. However, most of the units are 1 bedrooms, with some two bedroom, garden style apartments. Many units for sale are under 200K (2011), which is terrific affordability in desireable Natick. Units are typically small, however, with most units under 800 square feet, and most are under 750 square feet. Conveniently located off 135, they offer great access to much that Natick has to offer. Many of these units have high tension power line visibility.

Natick Green

This complex has some small, apartment style units under 700 sq feet. But they are also quite affordable, trading at 140K-180K or so, depending on condition (yr 2013). They are typically 1 and 2 bedrooms. There are also larger 900 sq foot 2 bedroom units in this complex, and they will sell between 200-250. There are 318 Units, and they have a tennis court! Fees are typically in the $300-360 range depending on size of the unit. Most of the units have heat pumps, which give heat and A/C (electric heat, but that's OK for smaller units), and town water, town sewer.

SHOW ME CURRENT CONDOS FOR SALE IN NATICK

Northborough Condo Complex Detail

Featuring: Bigelow Farms, Lawrence Falls, Dunia Gardens, Pheasant Hill, Sunnyside Estates, Church Street Village

Take me to the Northborough Condo Complexes Detail Page
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Northbridge Condo Complexes

Shining Rock

Shining Rock is a newly completed complex that abuts a golf course (appropriately, Shining Rock Golf Club). There are 68 units, and most units are 2 or 3 bedrooms, 2.5 baths, and have today's modern amenities. It is NOT an over 55 community, so these units are available to everyone. With around 2000 sq feet, there's plenty of room for expansive singles and families too. Sale prices vary widely but are in the 300's, depending on size, location, and finishings.

Marston Heights

Marston Heights is an under-development 59 unit complex that is primarily ranch style where the units are attached (via the garages) like duplexes. They are 1500 sq feet or so, with 2 beds and prices under 300K - but options may push you over that. With some decent finish work, these units are very economical and have lots of features at this price point. Gas available, city/water and sewer too!

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Shrewsbury Condo Complexes

Featuring: Adams Farm, Quinsigamond Shores, The Village at Orchard Meadows, Minna Terrace, South Meadow,

Take me to the Shrewsbury Condo Complexes Detail Page
Show Me Condos For Sale in Shrewsbury

Southborough Condo Complexes

Carriage Hill

Carriage Hill offers a luxury adult community close to Boston, and built and completed. These units offer space, amenities, and a large enough community to share expenses. With a surplus of brand new units throughout other towns in Metrowest, these units are trading at very good values, as they are about 8 years old at this time.

Meeting House Lane

Meeting House Lane is a 29 Unit complex right next to one of the best coffee places in Metrowest, The Red Barn! Actually for Java-happy folks, there are three coffee places (Red Barn, Starbucks, and Dunkin Donuts) all within easy walking distance. The units themselves are 1800 sq feet, close to Route 9, and have modern amenities, as the complex was built in 2007. Units often have two bedrooms, 2.5 baths, and 1 car garages. Central Air is also part of most units. Private sewer at this location. Complex is open to all ages, some units affordable. Prices in the mid 300's.

Southborough Meadows

Southborough Meadows is an Active Adult Community (55+) located on the eastern edge of Southborough. 2 Bedroom, 2900 sq foot+ units are typical here, with 2.5 -3.5 baths. These ranch style units are a good choice for an over 55. It's a 26 Unit complex, and most units have central air. Built in 1997. Prices are around 300K.

Vickery Hills

Vickery Hills is an Active Adult Community (55+) located in Southborough. 2 Bedroom, 1200 sq foot units are typical here, with 1.5 or 2 baths. These are large and spacious, and come with lots of good amenities as they were built in 2002 or later. Many of the units have nice views.

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Sudbury Condo Complexes

Grouse Hill

The new construction at Grouse Hill offers units in the mid 400's approximating 2100 sq feet and is still under development. This complex, like many of the newest complexes in Metrowest, is an over 55 Adult community, meaning that only purchasers with at least one spouse at the 55 Age or over is allowed to purchase the property.

Mahoney Farms

This over 55 adult community. These expensive, 700K plus units are 2500 sq feet or more, and come with few sacrifices. First floor master bedrooms, and units are attached. The complex has septic system/s and homes are energy star certified.

SHOW ME CURRENT CONDOS FOR SALE IN SUDBURY

Upton Condo Complexes

Samreen Villa

This recent complex of 50 + units has some great townhouses with good functional floor plans (although the family rooms tend to be smaller). Some unit owners have finished their basements, but regardless, the units have basements, and any condo owner will tell you that is quite the plus. It is quite close to a rail line that passes through, and some units abut the rail line, so that should be taken into account when pricing the units.

SHOW ME CURRENT CONDOS FOR SALE IN UPTON

West Boylston Condo Complexes

Afra Terrace

This 52 unit complex is still under development. With many units priced in the 300's, they are affordable luxury, offering almost twice the space of single families of a similar price. They have all the modern amenities of today's homes, including garages and A/C, but many units have master bedrooms on the first floor, which may not work for all families.

Angel Brook Village

This 132 Unit over 55 Community is still be developed. With recent sale prices under 300K, it can offer desirable living spaces at affordable prices. There are still numerous floor plans available.

SHOW ME CURRENT CONDOS FOR SALE IN WEST BOYLSTON

Westborough Condo Complexes

Westborough Village

These units are going to be anywhere from 1100-2200 square feet in size, some will be town houses and smaller ones will be single level living. Located in the West part of Westborough, these units are very close (too close?) to the T-stop, but look to be on a nice parcel of land that will quickly be come a stop for most home buyers looking in Westborough. City Water/City Sewer, A/C and many other amenities will be available for those that need them.

Powder Hill Estates

This completed, 52 unit complex is for those who like the amenities of houses, but prefer the low maintenance aspect of condominiums. These units were built in the early 90's, and can have two car garages, 2000-3000 sq feet, and other 'house like' features. There are not many complexes like this in Metrowest. Note that the maintenance does come with a cost, as fees can be $400- $600/month.

Walker Meadow

This Active Adult Community has 100 units and was completed in 1999. Practical 1 level living is featured here, with attracted ranches being the dominant style. 1 Car garages and around 1500 sq feet, make these units practical, if you can find one available.

Orchard Hill

This Active Adult Community has 100 units planned. Like many of the under construction adult communities in the area, these boast cathedral ceilings, fireplaces, modern kitchens, A/C and garages. The condo fees are quite good, relative to the living area offered. Westborough is very convenient in all respects for amenities, highways, and offers a town with good resale.

Carleton Gardens

There are 158 units in Carleton Gardens. These older style units on Milk street are smaller, generally under 1000 sq feet, but are inexpensive for homes of any type in Westborough.

Heritage Hall/ Rutters Brook

With older style units on Mayberry street, this units are practical and affordable. These 2-bedroom units are usually under 900 sq feet and sell for less than 100K. There's 72 Units in Heritage, 31 in Rutters Brook, and . Fees range from $160-200.

SHOW ME CURRENT CONDOS FOR SALE IN WESTBOROUGH

Worcester Condo Complexes

Salisbury Hill

This 280 unit complex, still under construction, has appealing units and features for prices. The units are being built with A/C, garages spaces, and master bedroom bath features. This is an active adult community (over 55), so those seeking to downsize may consider these units in this upscale neighborhood in Worcester.

Pointe Rok Estates

Pointe Rok boasts a gated, 80 unit community that was completed in the late 80's. With townhouse style units available, with square footage above 1500 sq feet, and plenty of amenities, these units offer actual luxury for less.

Salisbury Green

Salisbury Green is a completed, 90+ unit community that was completed in the late 80's. Naera the Holden Line just off Salisbury Street. Townhouse style units available,

with square footage above 1500 sq feet, and plenty of amenities, these units offer actual luxury for often less than 300K. 2Bedroom, 2.5 bath units, A/C, are all common amenities. Garages too! Higher fees (near $500/ month) keep the prices down. City Water, City Sewer.

SHOW ME CURRENT CONDOS FOR SALE IN WORCESTER

Hopkinton, MA Condos

Sun, 03 Aug 2025 21:22:04 -0500

View Metrowest Condominium Complexes in a larger map

Key:

Blue Pointer: Standard Condominium Complex

Green Pointer: Active Adult Community (Over 55+) Complex

Purple Pointer: Affordable, Income restricted Units At This Complex

Walcott Valley

These older units are often dated in spots, but remain affordable and well located near downtown Hopkinton. A short walk from the Boston Marathon starting line!

Stagecoach Heights, Hopkinton MA

These units have yet to be finished, (new construction!) and are built by the same developer that did several complexes in Ashland that look quite similar. They are vertical townhouses with three floors. There are probably several, slightly different styles and finishing available, so look for final prices to be 300-350K. They will be hooked up to Natural Gas, a plus for heating an cooking, but have private septic, so research how that will be maintained/repaired and replace in the condo documents. Many of these units are quite close to 495, so although they offer good space for the price, resale may be affected.

The Preserve, Hopkinton MA

This 40 Unit Complex was built in 1992 and features largely two-bedroom units with 1 car garages. Most units have around 1500-1800 sq feet.. Located close to the Southborough Hopkinton T-line, a great spot for rail riders and nature lovers, as Hopkinton State Park is nearby as well.

See My Video Tour Here!

Peppercorn Village, Hopkinton MA

Peppercorn Village is a new development of 44 units that have yet to be complete. It is unusual in that the development itself is not entirely condo - there are single families as well being built. These 2300 sq foot units come with 2 car garages and A/C, so it's a good fit for anyone who needs space, or desires new construction, but doesn't have the price tag that new construction can run in Hopkinton. West side location.

Deerfield Estates, Hopkinton, MA

Deerfield Estates is a 47 unit Active Adult Community (over 55+). These units aren't one the larger size of the classic downsize, with 2200 square feet and are detached homes. First floor master bedrooms, A/C, and 2 car garages are all part of the basic plan. These units are well and septic.

Sanctuary Lane Estates, Hopkinton MA

Sanctuary Lane Estates is a 40 unit complex, and is also an Adult (over 55+) Community. This complex is also under development, but offers smaller floor plans, fewer amenities, and the units are attached. They are also much cheaper, advertised under 400K, and are part of the municipal sewer. They do have central air, 2 car garages, fireplaces and two car garages.

The Trails in Hopkinton (Legacy Farms North)

Indian Brook Condominiums, Hopkinton, MA

This 112 Unit complex has curb appeal friendly units that offer a break from plainer condo styles. With two bedrooms on the top floor and and main living level below, they cram a lot of utility in just 1200 sq feet. No garages here, and the lack of that feature means these units sell quite cheaply, in the 250,000 dollar range. They do have basements, a nice perk in this price point. .

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How Do Home Assessments Relate To Home Prices?

Thu, 17 Jul 2025 21:02:02 -0500

How Accurate Are City and Town Assessments?

How Home Assessments are Calculated

Assessed values are mostly calculated by computers that have access to basic information about a home, including approximate land value, size, age, and occasionally an updated notation on condition. Assessors are in a house only rarely though, and generally the market moves in various directions for various houses and so the correlation with market value can be off by quite a bit (10-20% is not uncommon, but more than 20% is rarer.) The towns' goal is not to determine market value, just taxable value, so in normal markets (small rates of increases) the values will typically be below asking prices. Homes that have recently been updated may far exceed assessed value, especially if such updating did not require a permit (and thus, the town is unaware that such updating has happened). Many towns will have the assessor re-visit after a major renovation, to make sure the property is correctly assessed. Lastly, note that assessed values, due to the tax cycle, can be 6-18 months behind the market in direction, which is a fancy way of saying they really reflect valuations in the past, more than current factors. When the market moves slowly, this is generally not an issue, but when it moves quickly in either direction, you'll see some strange discrepancies.

How Home Values are Calculated by Industry Professionals

There are methodologies for calculating home

prices in the abstract, but there's no uniform

approach.

Home values are calculated by industry professionals as close to real time as possible. By looking at actual sales that have happened recently, pros try to establish current MARKET value, not approximate TAXABLE value. There are many different ways to do this, but most analysis techniques focus on similar home styles and similar locations. The goal is to find out what the real-time valuation is. Many non-professionals focus on single metrics - like $/sq. foot. But across different house styles, the ranges in any one metric are large enough to not be useful. For example, you'll find that antique properties will vary widely on a $/Sq. foot basis, but even similar homes that have very different locations will also vary substantially. In addition, at some point, condition begins to play a major factor. A 1960's home, tastefully renovated, is going to get substantially more than one that hasn't. Often part of the job is understanding which updates most buyers will pay for - and how much. The reverse is also true - there can be problems that will push the price down. Some of these are termed functional obsolescence, defined as parts of a home that no longer fit today's needs. A good example might be a home that doesn't have any garage - today, most buyers have cars, and lack of a garage will deter most buyers, resulting in a lower price, that may not be fully reflected in the assessed value. There are other issues as well.

How Can I Calculate a Home's Value?

Well, the EASIEST way is to look at about 200 houses and figure out why they are selling and why they are not. Then you'll have an idea of what buyers will pay for - and what they expect to be compensated for. You need a good sense not just of what is important to you - but what is important to everyone one, or most everyone. It's easy, for example, to understand that a home that has significant highway noise will sell less than a similar home without highway noise. But how much less? 5%? 10%? 20%? It depends both on the home, the highway (how many lanes?, the noise (how much noise?), and many other factors. There simply is no solely math based approached that has proven reliable, otherwise, banks and appraisers would never make a mistake, which is clearly not the case - they make lots of them, despite rigorous mathematical approaches. Zillow has tried to solve this problem mathematically, but my own analysis has shown that Zillow "Zestimate" can be off by an AVERAGE of 14%, in either direction. To put that in perspective, on a $400,000, that's a difference of over $55,000. Not very accurate, and the reason is simple: Zillow can't "hear" a highway, it can't "see" a steep driveway, it doesn't know that the kitchen "has been updated", and it knows nothing about landscaping, paint, roofs, driveways, mudrooms, and many other things that buyers care about.

An Educated Home Buyer is a Happy Home Owner. Read On!

Practical steps to declutter your home and have it show it’s best!
How can I shop for the best interest rate for my mortgage?
Should I get an adjustable or fixed rate mortgage?
Have a home? Quick 10 ways to save money!
Can I win my bid war by dropping contingencies, and should I do that?
Confused by your Estimated Closing Disclosure with Closing Costs? This can help.
Upgrading a bath? Handy idea book here with many options to think about!

About Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

How do I file an Abatement in Massachusetts

Wed, 16 Jul 2025 21:22:12 -0500

The Abatement Process in Massachusetts isn't overly complicated. Let's talk about what they are, and what to do if you're thinking the town is asking a bit too much from your wallet. As always, this is not legal advice about what to do, as I am not an attorney, but it should give you a good overview of how the system works, and give you insights as to what your next steps are.

What is an Abatement and What is an Assessment?

I often find that folks aren't clear on the terms that are used by the town offices, and getting the vocabulary out of the way is important to de-mystifying the process. We'll start with the assessment. A town's assessment is their stated value of your home. You can read more about a town's assessment at the link, but there are some key things to keep in mind. The first, and most important, is that an assessment is NOT A MARKET VALUE of your home, although it is often related to that value in some way. When we say market value, we generally mean "today's value" but an assessment is often an estimated value in the past, often 6 months or even 24 months in the past. Also, an assessment is NOT AN APPRAISAL. An appraisal is usually the process to get the market value.

The reasons towns have assessments is to collect taxes. An assessment is used to place a value on the property RELATIVE to other properties at that same point in time (which is in the past!). It's goal is to be "fair", more than it is to be accurate, although it tries to be both.

An Abatement is a formal request, by the Tax Payer, to not pay their taxes because they feel their assessment is to high. Note, you can't appeal your taxes - you can only appeal the amount that the town has assessed your home, which is the basis for how they calculate your taxes.

How are Assessments Calculated?

Assessments are calculated, generally, by simple computer programs that most towns have in their offices. Using recent sale data and property data as inputs, they calculate assessments for homes that haven't sold in a while. A good assessor, who tweaks the program for local variables, can have a very accurate model for the properties in the town. But the system is far from perfect, which is why homeowners are allowed to file abatements.

How do I Know If My Assessment is Too High?

If you haven't bought your home in a long time, you may not know. It is not easy to determine what your home is "actually" worth (and Zillow is often of minimal help). Although most homes are assessed accurate, some are not, and there are some warning signs you can watch. In my experience, properties that have a permanent material issue - like a really steep driveway - tend to be properly assessed around a purchase, but over time, tend to gravitate away from the correct assessment as they get muddled in with homes that do not have the same material issue.

Bottom line, be friends with your local realtor, and stay on top of your homes market value. Then watch your tax bill and watch the assessment number. If the assessment is clearly over market value, it may be time to file an abatement.

When Should I File an Abatement?

Generally, the first thing you should do - before filing an abatement - is discuss with the town assessor the assessed value of your property, and understand their reasoning behind the valuation. Hopefully, you have already researched your home valuation, and can provide counter evidence to the assessor. Having an open, unofficial dialog with the assessor should be possible - but not all towns will be friendly about it. Be prepared, have good data, and a sound rational, and most assessors will hear you out at least.

If, after hearing you out, they rule against you, then you should file the official Abatement paperwork with the town. This formal application serves the town notice that you are serious about the issue, and will force the town to come up with research to validate their model's assessment. Be prepared, once you file an abatement, they will probably ask to see the inside of your home, so if you're telling them it's a dump, and it isn't, that will not go over well. In fact, there is certainly a risk that he determines your home is worth more than the assessment, so be sure of your numbers before inviting him to tea.

Does Filing an Abatement Guarantee I Won't Have to Pay My Real Estate Taxes?

Don't be silly. Death and Taxes are the two certainties in this world, and you'll be paying taxes. However, if your home was over assessed, you'll be paying less taxes. Here's an example.

The town does it's annual re-calculation, and determines that your home is worth 700,000. Now, you happen to know that your neighbors house, which has the same floor plan and size, recently sold at 625,000. There are probably differences between your home and your neighbor's, but not 75,000. Armed with the public record sale of your neighbor's house, you head to the assessor and chat with him. He comes over, and agrees - your home is about the same, and reduces your assessment to 625,000. Yeah! But you still have to pay taxes on the $625,000 assessment. You're bill is down 12% or so, but you're still paying 88% of that original tax bill.

What if the Assessor overturns my Abatement and I still think they are Wrong?

You can appeal to the state, who will look at the assessors data and yours and make a final ruling. The state board is the Appellate Tax Board, and their information can be found here: http://www.mass.gov/anf/hearings-and-appeals/oversight-agencies/atb/.

Don’t Go Just Yet! More Information for you…

About Matt Heisler

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

How do I Purchase a Home with A Failed Title V?

Sat, 12 Jul 2025 20:42:40 -0500

You Tube Version? Right Here!

Purchasing a Home with A Failed Title V

Generally, banks require that homes have working septic systems. In Massachusetts, it means that they have to have a "Passed Title V" or Passed Title 5. This document (more on Title V Here) is the banks assurance that at least at the present time, the system is working correctly. If the home has failed Title V, generally, most banks won't lend on it. So that leaves you two options:

Pay Cash for a Property with a Failed Title V

If there's no bank involved, well, then they can't object! Purchasing a home direct allows you to circumvent the banks requirements - this is why many investors purchase in cash. Most municipalities will allow a cash buyer up to a year to fix the septic system and update the Title V. But if the septic system isn't working, you won't be living there. Obviously, if you are buying the property to fix it up, fixing the septic must be a priority (to open the potential pool of buyers as wide as possible), and in my studies, is usually immensely profitable (usually netting 200-300% return). But not all of us can buy properties with cash. So you might be able to:

Put Money in Escrow to Get the Septic System Fixed and Get a New Title V

Some banks (emphasis on SOME!) will allow a buyer to have the some of the money from the purchase put in escrow to fix the property for septic repair. But to do this, there needs to be an estimate of what that might cost. In general, that means someone, buyer or seller, must pay for a septic design, and get a various number of bids (1-3 is customary) based on the septic design.

Other Title V Reading

A septic design involves several steps, but can generally be done for $1500-$4000. Most excavators are able to give solid estimates based on a design, but generally assuming that they don't hit ledge, or other rocks that would require blasting. Once the estimates are obtained, the bank will usually ask for 150% of the design estimate to be put in escrow, where an attorney holds it, and the attorney will pay the bill for the septic, when it's fixed, and then return any extra money to whomever put it in escrow.

An Example Escrow Arrangement for Title V Repairs

A home is on the market for $200K with a failed Title V. A buyer agrees to purchase the property, and the seller agrees to put the septic repair money in escrow. The estimates are $15,000 for the repair of the system. They buyer, at close, pays the seller 200K, and the seller pays his lenders (100K, for example) and then takes 150% of the 15K ($22,500) and puts that in escrow with the closing attorney. The seller leaves the closing table with $77,500. The buyer then has the new system put in place, and it only costs $14,000. The buyer sends the bill to the closing attorney, who pays the installer, and refunds the difference ($8,500) to the seller. There are variations on how this works, but this would be a typical scenario.

Do Good Things Today! Matt Heisler

How Will The Trump Tariffs affect the Housing Market?

Wed, 30 Apr 2025 13:53:20 -0500

Will The Trump Tariffs affect the Housing Market?

Transcription of Above Video

Today's weekly video is on the Trump tariffs. It's been hard not to watch the news as the White House Administration has gone through a surprising turn of events around tariffs. As this is an inside real estate blog, I want to share my thoughts on whether the Trump tariffs will affect the housing market. You may not know what tariffs are, but the White House Administration threatened to put tariffs on a number of countries and then ended up putting incredibly high tariffs on virtually every country and even some islands that nobody had ever heard of, on everybody, and then just a few days later, changed their mind and reduced them to a more reasonable set of tariffs. But tariffs are tariffs, and the amount of tariff pain rippling across the globe is quite large, including China, where both countries have reciprocal tariffs somewhere around 150. That's going to drive trade between the two of them down significantly. There's just no doubt about that, but the real question here is, how does any of this affect housing?

I want to say basically at the start of this video that nobody knows anything. And the reason we don't know anything is probably because a lot of the folks in control of the tariffs don't seem to have a plan. I mean, it sounds unkind, but it's very hard for me to believe that this is all part of some sort of master plan. There's just too much at stake for any of this to sort of be some sort of plan. This isn't really how stuff is typically done, which is what makes it so interesting and fascinating at some level and so incredibly terrifying at another. So, I'm going to just start off by saying no one really knows where this is going to go because, for example, as far as tariffs go, we get a lot of lumber from Canada. Now, normally, you wouldn't think that we would have a trade war with Canada, but only time will tell if this entire process will get more rational and predictable. But for right now, the only things that are certain are that things are uncertain, and the second thing that is probably certain is that buyers do not like uncertainty.

I've been selling real estate for 22 or 23 years, and I can tell you without fail that if buyers are watching headlines, then they are not looking as closely at the housing market as they might otherwise have been. Now, that doesn't mean that they're not going to buy houses, but they will probably be less aggressive in their bidding. So, there will probably be fewer offers made on properties, and the bids will probably be less aggressive, and that is because the future is uncertain. And people really don't know how that uncertainty is going to translate going forward. This is my attempt to show everyone where the pain points are in the housing market to see if we can talk about where the tariffs might show up the most or the kinds of things that people should look for in order to see if the Trump tariffs are having an effect on the market. From an overview, we're going to talk about four ways tariffs might impact the market. We're going to talk about new construction, interest rates, inflation, and then the possibility of recession. All four of those things have been in the news this week, they are all very real players in secondary impacts of any sort of tariff scenario.

I'm going to start off with new construction. Now, new construction is not a huge component of the real estate market. There are a lot of houses, but relatively very few new houses, but it is watched because ultimately, builders' costs get passed on to consumers and the higher those costs get, the harder it is for consumers to buy new construction, which tends to create new construction overhang, more houses for sale that are being built because builders don't build them in onesies and twosies. Most builders build a whole bunch of houses at once and then hope to sell them as they go along. Will tariffs affect new construction? Well, in my earlier example, I said that if we attach a lot of tariffs to Canada, that's going to affect lumber prices. I think the good news for housing is that a lot of things are either primarily made locally or mostly made locally or entirely made locally. Things like concrete, asphalt shingles, and windows. A lot of these supplies are made right here in the good old USA, either mostly or completely, and so we're not really likely to see a lot of impacts from tariffs on that—they're already here. They don't get taxed for being shipped here. But there are still a lot of things in houses that are going to get taxed, and they will increase builders' costs. So, those things are going to be everything from wiring to insulation, lumber obviously as talked about, and a lot of the finished materials have some sort of Chinese component. And right now, those tariffs are very high. The good news in the short term is that most places have stocked up on these materials, and builders really won't need to feel the pain, probably for a couple of months. But if these tariffs stay in place, without a doubt, builders are going to have to start to buy more supplies from the places that they are, and that includes China. If some of these things are sourced in China, it's going to drive up their costs, which they are going to attempt to pass on to consumers. This process is not going to be fast. This is something that we may be talking about at the end of the year in September or so, when these types of effects will really start to show up. And it's, as noted, it's really difficult to know if the tariffs are going to stay in place for that long. It's not really in either country's interest to have tariff levels this high for an extended period of time. This is going to cause a lot of pain for both parties. So, hopefully it won't really happen. And in the short term, I don't expect builders' prices to go up, but this is definitely something that we'll want to be watching as the trade wars, which are here officially, if they continue to heat up and they continue to limit buyers' ability to source goods from places that they have previously.

Moving on to the second piece of tariffs' secondary impacts, we're going to talk about interest rates. Now, unlike new construction prices, interest rates affect everything, and there is a lively debate out there about what is going to happen to interest rates based on inflation. You have sort of a classic push and pull between the Federal Reserve's two main mandates. For those who don't know, the FED basically has two things that they try to do at the same time, even though they are generally polar opposites. They try to have low inflation and they also try to have high employment or low unemployment. So generally, if you have employment that is really high, that starts to stoke inflation. It's not the only way to stoke inflation. There are other ways and tariffs are one of them. So tariffs without a doubt are going to cause a spike in inflation. Now, I'm not even going to begin to pretend to figure out how much of a spike in inflation tariffs are going to have, because again, until you actually know how much the tariffs are going to be, and they need to be that way for an extended period of time before people have to start sourcing these materials and these products from these places that are being tariffed. But if they go on long enough, and if the tariffs are high enough, there is no doubt that prices are going to go up on a range of goods. Now, is this going to happen in three months, four months? Again, we still really don't know, but it is going to happen if the tariff wars go on. The more inflation goes up, the more difficult it will be for the FED to lower rates. And they have basically said as much this week. They said, we sort of need to know where everything is going before we can make decisions about rates. I think the FED is very optimistic that had the tariffs not gone in place, then we would have continued to see inflation fall. If inflation had fallen, I think very much, the FED would have been happy to cut rates by two or three or even four times this year, which is almost the full point that obviously would be very, very positive for the housing market, especially if job numbers haven't really been affected. But now, with the tariffs on, it's unclear what the FED will have to do. They will sort of have to pick whether or not to support the job market by lowering interest rates or to fight off inflation by keeping interest rates high. My bet is, if the tariffs have a significant inflationary effect, there is no chance that the FED will be dropping interest rates, even if they are transitory. So, there's going to be a lot of pressure here on the White House to get results quickly, because the one thing that they would really like to see happen is the FED drop interest rates, and the FED isn't going to do that as long as inflation remains elevated, which the tariffs most definitely are going to do.

So, what happens if inflation keeps going up and the FED doesn't move interest rates? Well, then what we have is a recipe for a recession. So, a recession will most definitely affect housing, although maybe not in the way a lot of people would like to see it. When you have recessions, typically recessions are characterized by decreases in spending, but those decreases in spending are driven by job losses. Job losses mean that people will sell their houses

All been through recessions. I think most of us who are watching this video have been through a couple of recessions, so we know that this is how it is a certain percentage of people are going to lose their jobs. They're going to have to relocate. And a certain number of people are going to have to sell their houses. In order to do that, if you have this kind of force selling, which we get in recessions, then you're going to see the supply go up with interest rates elevated the way that they are. It is very easy for me to see that such a thing will probably pull prices down. But before every buyer out here says. Thank God housing prices are going to go down. We are a very long way away from having a recession right now. The economy is still growing. We would need to see job numbers over the next several months. Not just not be positive, but we need to see them start to go negative. And right now, there really isn't any evidence that that is going to happen. Part of that is because the terrorists have only been in effect for a week, and there's those effects have been moderated. A lot of companies right now probably aren't going to do as much hiring as they would have done, but they aren't going to do any firing either, so we're not going to see a lot of job losses, not until companies really start to feel some real pain, which I don't really think they're going to see right now. So, I think the forecast, I think for housing is that, uh, things will probably be a little bit more moderated. I think the buying Community will be more uncertain, and they will be more hesitant about stuff. But until we really see job losses, the supply, which is the main part of the problem. In the Northeast area is likely to follow the pattern of the last couple years, which is just that. There won't be enough Supply. So, with that said, I think the housing market will remain largely unaffected by the tariffs. You know, again, a lot of these secondary effects, whether they be interest rates or inflation or recession. We really won't see any of this stuff for months, and with this spring Market, basically here today and already starting. Uh, it's unlikely to have any effect until well past June or May again. You have to remember the average person selling their house or buying a house has a very high level of motivation with the amount with the interest rates where they are in order to solve whatever problem they're trying to solve. Some headline news isn't going to change whatever Pro that problem is. They're going to continue to need to buy or sell, and so if things calm down even a little bit, I think we'll probably see a fairly active and aggressive housing market for the next several months. All bets are off. If the tariffs continue to climb and the longer they stay on, the more likely we are to see effects that are negative.

For home sellers, but positive for home buyers, but in the meantime. This is where we're at, so I hope everyone enjoyed this video. And if you have any questions, leave them in the comments.

Why Are FHA and VA Appraisals More Difficult than Conventional Loans?

Wed, 30 Apr 2025 13:20:20 -0500

Why Are FHA and VA Appraisals More Difficult than Conventional Loans?

Transcript of the above video!

This is Matt Heisler with Vanderbilt Properties. In this video, we will discuss why FHA and VA loans have a more difficult appraisal process than conventional financing. We will also address some of the problems you might encounter. If you plan to buy a house using an FHA or VA loan, this information is crucial to ensure you are targeting suitable properties and avoid appraisal issues. If problems arise, the seller may not agree to fix them and may seek a buyer with a different loan type. To save time, target houses with minimal appraisal issues. These issues may not be apparent during inspection.

What makes VA and FHA loans special? They require significantly less money down than other loan types. Many people believe 20 percent down is necessary to buy a house, but this is untrue. Most first-time buyers, especially in expensive areas, obtain higher loan-to-value (LTV) loans. Sometimes it is 10 percent down, and sometimes as little as five percent. For higher LTV ratios, VA and FHA loans are often used. Private lending with such low down payments is uncommon. FHA loans offer another advantage: generally, credit requirements are less stringent than for conventional financing. This can vary, but it is a general rule. FHA loans make sense for those with lower credit scores and less than five percent for a down payment.

I recommend buyers save an extra 1.5 percent to reach five percent down and pursue conventional loans. This often makes the house a better asset. However, this is a general recommendation, and FHA or VA loans are sometimes the best option. VA loans, for veterans, allow zero percent down and 100 percent financing. This is a significant benefit. These are high LTV loans, meaning more money is borrowed relative to the house price. VA loans at 100 percent are among the highest LTVs available.

If you enjoy this video, please subscribe. Subscriptions help keep these videos coming. If you are buying or selling a house in Massachusetts or Rhode Island, watch until the end for a special offer.

High LTV loans often indicate buyers with limited cash. While anyone can use an FHA loan, many users lack capital. Therefore, appraisers thoroughly examine the house to ensure there are no significant upcoming expenses. Lenders worry about foreclosure costs and potential losses if the buyer cannot cover expenses. Conventional financing with 20 percent down reduces this risk. Lenders are confident they will be repaid, even if the market fluctuates. This is why conventional financing offers lower interest rates and is more appealing. However, if conventional financing is not an option, FHA and VA loans are better than renting. Lenders take on more risk with these loans and must ensure the property will not cause issues for the buyer.

With conventional loans, structural problems may be acceptable with repairs. However, FHA loans will not be approved for houses with obvious structural issues, including termite damage. Significant mold is also a disqualifier, as it poses health risks and cleanup is expensive. The FHA does not differentiate between minor and major mold issues. The roof must be in good condition, with no leaks or signs of needing replacement soon. Lead paint is a concern for FHA appraisers. They look at the house's age and require peeling paint to be fixed in homes built before 1978. The heating system must be operational, and all bedrooms must have heat, at least in Massachusetts. Deteriorated asbestos wrappings are another potential issue.

This is not an exhaustive list. FHA appraisers may be particular about handrails and basement floors. The FHA's scrutiny stems from the low down payment opportunity. They need to ensure buyers do not run out of cash in the first few years. In the long term, houses are generally good investments, and buyers often refinance out of FHA loans. Once there is 10 percent equity, refinancing is common, and the buyer's financial situation likely improves. This enables them to handle capital improvements and safety issues. FHA and VA loans offer an opportunity to buy property with high LTVs, but appraisers are thorough before approving these sales.

Really, there's just a lot of things that the FHA cares about. But it's all because you're taking advantage of an opportunity to put very little money down to buy a fairly expensive asset, and they need to make sure you don't run out of cash in the first couple of years. So, why do they not worry about it in the long term? Well, in the long term, a house is generally a good investment they. Go up in value, and you're probably going to refinance out of that FHA loan as soon as you can, simply because it's not a very cost effective loan. As soon as you have 10 equity in the property, they know you're probably going to finance your way out of it. And on top of that, you're probably going to be in a better financial situation, so that when things like capital improvements or safety issues come up and need to be fixed. You'll have the cash to do. It doesn't mean you'll want to spend it, but it does mean that you'll have the cash to do those things there you have it. Folks, that's my overview of why FHA and VA loans are great because they give you an opportunity by property with really high LTVs, but also why the appraisers are so careful before they let those properties get sold.

How to Find, Qualify, and Buy Affordable Housing in Massachusetts

Wed, 02 Apr 2025 12:35:07 -0500

Rough Transcript of the Video

How are you today? Welcome to my channel inside real estate. Today we're going to talk about affordable housing. When I talk about affordable housing in this video, I'm not talking about housing that is merely affordable. I'm actually talking about the legal definition of affordable housing. In the simplest way, affordable housing is housing that isn't sold according to market rates.

Normally, when you have a house and you put it on the market, your goal is to get whatever price the market will bear, the highest price possible. Affordable housing isn't set up that way at all. With affordable housing, when it is built, a spreadsheet is created. They figure out what they should charge for it, and it's usually a rate that's much lower than what the market rate would be. That's what makes it affordable. There can be a lot of variances in this. Something that's affordable in a wealthy town is going to be quite a bit more expensive than something that's affordable in a town that is less wealthy or where the real estate is less expensive. Affordable is really relative to the community that the property is built in. You can have very expensive, affordable properties. They're just affordable relative to everything else that's selling in that town.

How affordable is this stuff? It's not unusual to see this trade somewhere between 20 to as much as 40 percent less than what the unit or house might get relative to its price at market, like other property. While initially, that sounds like a good deal, and it is. Your entry cost is very low. You do need to remember that when you sell it, you're going to be selling it at the same discount. That doesn't mean you're going to be selling at the same price. As the town goes up in value, your unit, your affordable unit, is going to go up in value, but you're not going to get an opportunity to capture market value, except in rare instances where the property no longer qualifies as affordable housing. That's a rare case, though, so I'm not going to talk about it too much in this video. I don't have a ton of time to do it.

The key things that you want to remember here are that affordable housing is very cheap relative to the town that it's in. It is not set at market price. The price is calculated on a spreadsheet and has a lot to do with where the house sold last, and how much the town has moved up since. The other things you need to know about this is that because it's not sold at market rates, there are lots and lots of people that want it. Let's initially talk about where this affordable housing came from, why it exists. At the end of this video, I'm going to talk a little bit about how you can buy one of these affordable units, and maybe you can't. If you can, I'm going to explain to you what's involved as a typical process for buying them.

Where do these affordables come from? Builders have known for a long time that if they buy a piece of land and put one house on it, they can make a certain amount of profit. If they put two houses or four houses on the same property, their margin, the amount of money that they can make, goes up quite a bit. Developers, as a general rule, are incentivized to put in what's called high-density housing. Basically, they're incentivized to put in as many units as they can on a small piece of land as possible because that increases their margin, that makes them make more money. Towns have zoning in place that specifically restricts how many units you can put on certain pieces of land. On top of that, it was very common for developers to go in there and buy land and say we want to do this with it, and for the towns to say no.

I'm sure that there were some other kinds of affordable housing, but affordable housing has a significant part of the market. It really started to take shape when Massachusetts passed its 40b laws. The 40b laws typically were an override to local zoning that allows developers to put in high-density housing in towns where there is not enough affordable housing or enough high-density housing, depending on how they're calculating it, regardless of what the town zoning actually says. It turns out that if you're going to apply for building permits this way, it's very expensive and time-consuming, but the developers use it as leverage against the town to get higher-density units put in place. The towns usually let them do that because they're going to lose if they go to the state. This way, they can sort of control a little bit more what actually gets built. You can't really stop the developer from doing high-density housing, unfortunately. Or, I shouldn't say unfortunately. But from the town's perspective, this is usually an unfortunate thing. For everyone else who needs housing and recognizes that there's not enough of it to go around, this is a good thing. The purpose of the law was to help create more housing, more housing options for people that live in Massachusetts, and for the most part, it works.

There is a condition, though. Usually, with the town's demand, is that the developer dedicate a certain number of units based on the project. If they put in 100 units, it's not uncommon for them to do 10 units that are affordable. If they want to take advantage of the 40b law, that's a condition of the 40b law. They have to set up these units that are going to be sold far below market rates. On the surface, this makes a lot of sense. By putting extra units on the property, the developer can make more money, but as part of making more money, he has to lose money on a few units, not too many, but a few, or make no money, in order for the affordable housing to be created. That's where it comes from. At the end of the day, most of the affordable housing that you'll see in Massachusetts is part of a larger community where it's off to the side or sometimes scattered throughout. Basically, it's part of a larger development, and it was decided between the developer and the town or the developer and the state how many units needed to be there and at what price they were going to be sold. That's how the affordables get created. Even though it sounds like a good idea, it's very important to remember that you're not getting in at a market price, and when you sell it, you're not going to get out at a market price. You're going to get out when you sell it at a price that is determined by the same spreadsheet that they used in order to determine the price when you bought it. This housing functions a little bit differently than market-rate housing. With market-rate housing, you can buy something that's beat up, put in some elbow equity, clean it up, fix it up, do some renovations, and you can make a profit on those renovations and build equity for when you sell the home later. Affordable housing doesn't really work that way because no matter what you do to the property, as a general rule, you can't sell it at market. You can't capture the benefit from doing that work.

In that way, it's just very important to remember that you're kind of stuck with riding the town. As the town goes up in value, your unit will too, so you do get to develop equity. At the end of the day, you can't really improve the house in any meaningful way in order to change the price. Generally, expansions and the other kinds of things that you could do with unregulated housing, market-rate housing, you just can't do it. That's an overview of affordables. Now, we're going to dive into how do I find them, and how do I buy them, and the difficulty with doing that. Finding them is relatively straightforward. There just aren't very many. If you take a look, you're not likely to find very many, especially if you're looking in a narrow area. Generally, I recommend to folks who are looking for this kind of product that they cast a pretty wide net, you know, six, seven, eight, nine towns to go look at the affordables. The reason is, even if you find an affordable, it may not be the right affordable for you. By that, I don't mean that you don't like it. By that, I mean, you won't qualify. In order to qualify for an affordable, typically the way it's done is the person who's buying it needs to be at a certain income level relative to the town. It's not uncommon for me to see that the person's income level needs to be between 80 percent and 85 percent of the town median. I'm not exactly sure where they get the town medium income. I'm pretty sure that they get it from the IRS, but I don't know for sure. There's a limit as to the amount of income that you can have, and they make adjustments based on your household size, based on the number of kids that you have, and the number of people in your household. From there, they have income limits for the number of people that can buy these houses. I would say 90 percent of the time. The people who call me about affordables simply don't qualify because they make too much money. These really are for people who are. Uh, not making sort of an average amount of money. I have to be making below average amount of money, but here's the tricky part. The tricky part is, you have to be making enough money to qualify for a mortgage on the place. So, in practice, your income needs to fall in this very small band between not making too much and not making too little. It's not just about income. There are other disqualifiers. If you have significant assets, like investments, or own other properties, you may not qualify for affordable housing. These programs are designed for people with limited financial resources. There are exceptions and variations in the process from town to town, and even from unit to unit, depending on the parameters set when the affordable housing was built. However, the key thing to understand is that your income must fall within a narrow band to qualify.

Despite the limited number of people who qualify, these units are so inexpensive relative to the market that they typically receive dozens of applications. When you file an application, it is similar to a rental application but with more paperwork. The town reviews all applications and often disqualifies many applicants due to excessive income or assets. The remaining qualified applicants form a small subset. Then, the town randomly selects a winner from this group. The price of an affordable unit is fixed by the town, not the market. You will know the exact price, but these units are typically very difficult to obtain.

If you've watched this far, you've likely learned about the origins of affordable housing, why it's not sold at market rate, and the general parameters for applying. Keep in mind that this is not a quick process. The town often markets these properties for an extended period to gather numerous applications. Even if you qualify, there's no guarantee you'll be selected. These units can be hard to find and hard to win, but if you succeed, it can be a great opportunity. If owning a house is your goal and you want to escape the rental market, this might be a viable option. If you want to know more, leave a comment, and we'll see if you might be a candidate."

It's gonna be hard to win, but if you do get in there, it could be a great deal.