Self Directed IRA's and Real Estate Investing

     I had read a Robert Kiyosaki book (I don't remember which one) quite some time ago about investing in real estate with IRA money.  I didn't know how it worked and frankly, forgot about it.  Until, that is, I read the book he wrote with Donald Trump,    "Why We Want You To Be Rich" . 
     I began investigating how to go about leveraging IRA money and how it worked.  This was a personal interest I had because my husband and I had gone through 2 downturns in the economy and saw our IRA balances dwindling. 
Of course, they rebound, but we felt to out of control and frustrated with what was happening to our future.  We decided we no longer wanted to play the "blame game" and bemoan our fate. 
If there was a way to be in the driver's seat, I wanted to be there. 
Anyone who drives/rides with me knows I don't make a wonderful passenger. 
To the point that when my teenage sons began to drive, one of them tactfully told me that it helps him to be in the back seat when he is not driving.  "You don't get freaked out by what you don't see" he told me.  Ahhh...Sadly, I see my IRA balances every month. 
     Additionally, I knew if there was a way to do this, then as a business owner who advises clients and investors on building wealth through real estate, I needed to know as much as I could about this particular strategy. 
     As I dug a little deeper I found a company called Pensco Trust and my education was off and running!! They are a custodial company whose sole business is self directed IRAs.  I attended a class they gave and was overwhelmed with the depth and complexity of this area. 
I guess to say "complex" is a little misleading, because there are some very basic rules that need to be followed.  It's the layers beyond each basic rule that boggled my mind.  
     And then, I realized that I don't need to know all the specifics by heart.  I need to know enough to seek out the professionals who know the other questions to ask and be able to advise me accordingly. 
     After attending this class, I happened to see an article that was picked up by the Associated Press.  I am not even able to properly credit the date or writer, but it was eye opening because it said,
"Despite extensive efforts to educate workers about saving for retirement, many employees are not doing a good job of managing their company-sponsored 401(k) accounts, a new study indicates.
The analysis of nearly 1 million retirement portfolios found that 69 percent have inappropriate risk or diversification of holdings and 36 percent have worrisome concentrations of company stock. In addition, one-third of savers aren't putting enough aside to qualify for the full company matching contribution." 
     Yikes!!  That is really frightening.  The article continues but those are the first 2 sentences.  It bears thinking about at the very least.   
     So, if you have an interest in how this works, let me know.  I will be happy to discuss it with you and be able to direct you to the right advisers to assist you in making a decision about your IRA money.  If there is a real estate market ripe for this type of investment, this is it!

Technology and real estate go together like a horse and carriage

Technology and real estate. 
"Back in the day" I started in real estate (less than 15 years ago), the MLS system we used was still in DOS mode and only covered the real estate board of which we were members. 
How far we have come.  As discussed yesterday, when I did it again. 
I opened up the Sunday Boston Globe and took the chance of glancing at the front page of the real estate section.   I know ... two weeks in a row.  What was I thinking? 
A brief perusal of the headline did not make me shut the paper and put it in the pile that we use to start our fireplace with!  Immediately, I thought we were off to a good start.  It was a very good article about the use of technology in real estate. 

I blog, so I guess that a pretty good indicator that I embrace technology. 
Since I fall more into the category of the median age of the Realtor® than the median age of the buyer, the learning curve on the technology trends tends to be a little more steep for me. 
However, I am always on the lookout for the new "hot" trend and then find out the "how's and why's" of learning it. 
I got some good information from this article and even more from the posts that followed.
It's important for me as a listing agent to have all the tools that enables my client's property to be exposed to the greatest number of potential buyers. 
It's important as a buyer's agent for the buyer to feel comfortable with an agent who is communicating in the same "speak" as they are.  
As stated in the article, the needs of the median age buyer are different than the older buyer or any age of the seller.  I have not survived this wild real estate market by not providing the services my clients need and want, whatever generation they belong to. 

Another benefit for both buyers and sellers is to choose an agent with the ability to consult with them and offer options and payment methods they are not getting from many other agents. 
From a previous post, you may remember that I am an 
In the consulting model, buyers and sellers alike can pick and choose the services they want and need and save thousands of dollars by paying for only the package they put together. 

Will I date myself too much by saying "I remember when" no one wanted the MLS to be available to the public?  The sky was going to fall because the consumers would have all our information and wouldn't need us (Realtors®) anymore.  Nothing could be further from the truth.  The value of a Realtor® proved to be far more relevant than prices and addresses.   

A refreshing change of pace

I just returned from spending 2 glorious days of R&R in Newport, Rhode Island with a few friends.  What a great time of year.  The trees and flowers were in bloom and budding and the weather was spectacular.   It did not feel like mid-April, and it was a wonderful change of pace.  Ocean Drive was beautiful, The Inn at Castle Hill provided an unforgettable setting for cocktails on the lawn at sunset, the food at Scales and Shells and
The Rhode Island Quahog Company, as always, was amazing, and the company was superb.  WOW!!  It was a taste of the good times to come this spring and summer. 
     There is a sense of rebirth in the air in the spring real estate market, causing a nice change of pace there too.  The media is continuing to strike a more positive chord (albeit occasional) in reporting about the market. 
    Buyers right now have an incredible opportunity and the reason lies in a previous post of mine.  The cut in interest rates that is being reported is not reaching the purchase market.  The rates for mortgages are vacillating, but the prediction is that the overall trend will be to rise.  So, while prices may continue to fall a little more before stabilizing (and then begin the upward rise), the impact of 1/2-1% increase in the interest rate will end up costing the buyer's monthly mortgage payment to be higher in the long run. 
     Many local communities are seeing enough inventory to last 9-12 months, and sellers are being negotiable. 
     Buyers are definitely out buying and in some cases competing with multiple offers on the right property.  In a spring market with so many buyers looking, a house that has been on the market for 6 months may lead buyers to think they have ample time to  see "how low it will go" only to have it snatched away from them.  
New concerns for sellers are being fueled by daily reporting about the increasingly stringent lending standards.  One tool the buyer can put into their tool belt to give them a competitive edge is to have an approval subject to appraisal ready and waiting.  This strategy alone can compel a seller to possibly consider a lower offer (especially if they are reviewing more than one offer).     

Talk about the "bottom" coming

I did something yesterday that I have been shying away from recently ... I read The Big Move , which is the title of yesterday's Boston Globe Real Estate section.  Sometimes I feel the need to torture myself, and fill my head with even more negative news about my industry. 

Of course, there is more than enough (bad news)to go around.  I'm not an ostrich, although, there are days I feel that if I read one more thing that tells me the sky is falling, burying my head in the sand and staying there looks really good.  So, I have made a conscious effort to discriminate about what I read in order to fill my head with positive images and thoughts.   

Why I took the risk yesterday is just one of those things that cannot be explained.  And I got a pleasant surprise.  The "R" word was mentioned fewer times than I have fingers on one hand, there was a sense of optimism in the several articles and some good solid advice for both sellers and buyers. 
It was, in my opinion, a real turn in the tide of the "gloom and doom" we have been assulted with for more than just a couple of years.  You can read them for yourself.  A few had a focus on sellers , another few with a focus for buyers , and gave some really good advice. 

So, no, it's not a great time to sell.  Yes, it's a pretty great time to buy, especially as a first time homebuyer.  The 2 are never going to align to be good at the same time.  Kind of like the World Series ... there is a winner and a loser and never both at the same time.  There are good strategies for both, and from my perspective, that is good enough reason to begin reading about the real estate marekt again!

Book Recommendation

I just finished reading 'Why We Want You To Be Rich', and I must admit, I was pleasantly surprised.  I really enjoyed it! 
It had been recommended by a colleague of mine. 
My initial reaction was "Donald Trump?". 
Second reaction was, "Robert Kiyosaki!".  I have been a follower of his since I first read 'Rich Dad, Poor Dad' 
many years ago.   Additionally, my partner (in the investment leg of my business), Suzanne Koller, and I refer to Robert Kiyosaki and his works in the investment workshops we conduct.  So, I was compelled to make the purchase and begin reading.  One of the things I like about Kiyosaki, (and that has brought criticism to him), is that he doesn't tell you what to do, where to put your money or advise you on what's best for you.  He gives you principles, and ideas of where to begin your education if you want to head down the path of creating wealth. 
Ultimately, he confirms that you are responsible for your own financial destiny.  No one makes choices for you except you, and education is the best way to make informed choices.  I think that's called "accountability".   

In reading, 'Why We Want You To Be Rich', I was intrigued by what I learned about Donald Trump.  I knew him (of course, I don't know him at all, so it's more of my perception of what I thought I knew!) as the brash, arrogant man we see on the news and read about in the tabloids.  He certainly has done enough to give all the gossip mongers fodder for quite some time to come! 
What came across in the book is a man who is driven, determined, open minded, and focused on continuing education.  Education of all things ... that was the biggest surprise of all.
And, not just education for himself.  He has a desire for all Americans, as a population, to have a strong financial education so they have the ability to make decisions about their future and not rely on the government or company to take care of them in their times of need.

Each chapter was divided between the section written in Robert's voice, and that written in Donald's voice.  It was fascinating to find out about their very different upbringing, education and start in the business world.  It was fascinating to to read that Robert Kiyosaki was intimidated and felt inferior when he was approached by "The Donald" pair up to write this book.   It is fun to read as Robert reached the realization that they were on equal ground, each had strengths that complimented the other, and why they were able to write this book in 2 voices but put across one message.  
The other surprising thing for me was how easy a book it was to read.  It is written with true stories, combined with principles and I found it was not at all tedious, as sometimes books about wealth building can be.    
If you read it, I hope you will enjoy it and get as much out of it as I did.

Isn't an ACRE a parcel of land?

hat is an ACRE™? 
It does refer to a measurement of land size.   

It also stands for Accredited Consultant in Real Estate™.   You may have seen reference to ACRE™ on the Real Town homepage or written about in the education section by clicking on the Education tab. 
If you are Realtor®, it is a designation worth pursuing.  

If you are a consumer, you may be asking yourself:
How Does Consulting Differ From the Real Estate Sales approach?
Is it just a fancy new catch phrase that means the same way of doing business?

I graduated from the ACRE™ program with this designation late last summer.
The consulting model provides the Realtor® the tools to Give their Clients Choices for Services They Need and Want and the way to pay for them!
The "one size fits all" model of the traditional commission structure is not for everyone.
Consulting is finding out the needs of the client and then recommending the options that best fit those needs. Based on the Needs Analysis, we may find out the traditional commission structure is the right thing. If we find out it's not, then there are solutions for you!

I had written about this topic last fall, and since then, I have learned so much about it.  I have used it in several presentations for sellers and investors ... no buyers yet.  The reaction has been very positive.  Consumers are not used to having options, so it's nice to see the connection begin to take place as I lay out the choices they have.  They see numbers attached to each option and begin to just shake their heads.  It makes so much sense to them and they are excited!  It's great.

If you compare it to going out to dinner, sometimes you like to sit down, order off the menu and have someone take care of you.
Other times when you go out, you may be in the mood for a serve yourself buffet line. It is sometimes less expensive than the order off the menu option (or not), and it may be the right thing for you at the time.
Consulting is similar ... it's having a choice. Now isn't that a refreshing change of pace?

This is a very brief description.  You may choose to find out more, or you may choose not to.  Either way is perfectly fine, because after all, isn't that what choice is all about?

Why do they call them wisdom teeth?

Why they are called "wisdom" teeth is a little beyond me.  Of course, the answer is because they usually appear in the late teens/early twenties and so you are supposed to possess more wisdom than you did in your adolescent years. 
And perhaps, they call them that because when you see your other teeth coming out of alignment (after your parents spent thousands of $$$$ on braces straightening them so you would grow up being able to flash that beautiful smile!) because the "wisdom" teeth are coming in at an angle (also known as "impacted") you are wise enough to have them removed.  

For whatever reason, when they have to be removed, it is brutal.  I remember going through it myself over Christmas break from college in my sophomore year.  I actually think it's worse than the pain of childbirth.  And with childbirth, you have this amazing blessing that has you totally mesmerized while you are going through the healing process. 

There is no such trade off while healing from the effects of wisdom teeth removal.  I now have experienced the flip side of this procedure in the role of caregiver.  Parker and Evan had to have all 4 extracted on Thursday.  They came through with flying colors.  The surgery was preformed at Central Mass Oral Surgery where they were wonderful!  It was an efficient, fun and relaxing atmosphere.  They made the boys feel completely at ease and it was a pretty quick process.

Getting them home, settled, re-medicated and fed, in addition to a million other little things, I have been working full time since Thursday.  From the vivid memory I carry from many years ago, it seems as though not much has changed in the healing process.  I think today, I will get a little break from the last few and it should continue to get easier from here. 

Wish me luck, and in the meantime, don't over do it while you are out shoveling or snow blowing the effects from yet another snow fall.  Just remember, we will be seeing crocuses in no time ... keep telling yourself that!

Great Bar-B-Que in Marlborough MA

My family is slowly rising out of the fog created by the loss of our dear Spike.  He is still in our hearts and minds, but the sorrow is slowly subsiding.  I guess that's part of the circle of life and each day it gets a little easier to laugh about a memory instead of cry.  We are laughing a lot so that is good....he was a happy guy and he I know he is loving seeing us be happy about our life with him.

We thought we needed a little break and we love to eat out where there is good food.  Last night we headed to a past favorite for total comfort ... barbeque.  Firefly's in Marlborough offers a consistently delicious fare.  We have been a few times in the past, sampled their catered menu at a few parties and have always come away smackin' our lips! (It's barbeque, OK?  It is one of the few venues that make lip smacking totally acceptable!). 

On Monday evenings, they offer a great promotion, especially if you have twin teenage sons ... all you can eat chicken and ribs.  In the past, the chicken has come home with us for a 2nd meal the following night and it is more than enough for a full meal since everyone gets 1/2 of an entire chicken!  This night was not the exception. 
The meals come with 2 sides, a bowl of vinegar dressed cucumber slices, and unlimited trips to the condiment bar, that inlcudes peppers, olives, bean salads, and much more.

 
If you are a barbeque aficionado, or are a casual eater, the array of sauces they offer on the condiment bar is amazing.  They have Memphis, North Carolina Kansas City and a few more that I don't even remember the names of.  Then there is an entire display case filled with bottles of barbeque/hot sauces from what seemed like every corner of the world!  It can be overwhelming, even for the afcionado.  That kind of "overwhelming" is what I can handle.  And, don't let that stop you from trying just one thing, even if it's the tried and true traditional sauce you enjoy.
The sides include red beans and rice, collard greens, sweet potatoes with pecans, really great fries (according to the teenagers!), great cornbread, and more!  Everything we had was amazing and we rolled out (even though the teenagers said they could have forced down a dessert, but didn't!) feeling like we had a nice treat out, and enjoying the company too! 

So if you like BBQ, Firefly's is a good place.  They have a few other locations you can check out.  Bon appetite!

Winter brings some not so apparent dangers

I receive a monthly newsletter from a home inspector I recommend quite a bit.  His name is Peter Ottowitz and Peter is a licensed home, mold and energy inspector. 
I enjoy reading his e-newsletter because there is always a tidbit of information I get from it which I was not previously aware.
This month, the featured article was on a silent killer we normally hear about in the winter months, and that is carbon monoxide.  You may remember there was a lot of press about it a few years ago.  The law was passed in MA, and made effective in March, 2006 that made it mandatory for all homes to have monoxide detectors installed.  The statistic quoted by the Home Safety Council that blew me away is that currently, only about 35% of homeowners have carbon detectors in their home.  

I thought I would share with you exactly how easy, and inexpensive it is to install a CO2 detector.  The law states that for existing homes, the detectors do not have to be hard wired.    So, first, go to your local hardware or home improvement store.  Ask for a plug in model of the detector.  
The cost runs between $30-50 for each detector (in some areas they may be more or less).  Some come with batteries.  I can tell you from experience, these batteries are not always functional.  Having a CO2 detector will do you no good if the batteries are not working.  To be on the safe side, just purchase some additional 9V batteries.  If the ones provided are working, you will have extra on hand when the annoying chirping sound starts indicating the batteries need to be replaced. 

The law calls for 1 detector for each level in your home.  Yes, that does include the basement, regardless of if it is finished or unfinished.  The law also states that one detector is needed to be within 10 feet of the bedrooms.   So, if you have a colonial or cape, for example, you would need  minimum of 3.....one for the basement, 1st floor and 2nd floor.  If the bedrooms in your home are spread apart, you may need 2 for the level the bedrooms are located.  
Remove the detectors from their packaging, and plug them into the wall.  If you hear an annoying chirping sound that does not stop, then you will be happy you purchased additional batteries as back up. 
And that's it. 

You are absolutely required to have CO2 detectors in place before selling your home.  I urge you to go to the store today to purchase these life saving devices, install them and protect you and your family from the silent killer known as carbon monoxide poisoning.

The heart of a home....a tribute

As I speak to buyers or sellers about features of a home, the kitchen is frequently the focus.  It is where family and friends tend to congregate, no matter how inviting the remainder of the home is.  Is it the cooking that brings everyone together, or is it the comfort of fond memories we have that begin there?  Whatever the reason, that's where we seem to gather.

My family and I went through an experience yesterday that has left us sad and empty and it got me to thinking about the heart of our home. 
We had to have our beloved yellow lab, Spike, put to sleep.  It was a truly heart wrenching for my husband, my teenage sons and me.  We were home together yesterday and needed to rely on one another because of the pain and emptiness we were experiencing.  We all agreed that it feels like the heart of our home has been yanked out.   Spike was so much part of the fabric of our family and as I'm looking out my office window, I am missing seeing him take his usual path through the woods.  Even the fresh snow has covered his tracks from the recent week. 
My sons are home from school today due to the weather.  Usually, they would come down stairs and go directly to Spike to give him a kiss and a hug.  Today is different and lonely.

Spike often made himself completely at home in our kitchen.  There are so many funny stories.....Like the time (many years ago when he still had the agility to carry this off) I had a stick of butter on the counter, walked into the family room, then back into the kitchen only to find the stick of butter missing, and Spike licking his lips and looking very guilty!
He was such a social animal and made himself at home wherever we were.  Since I enjoy cooking, that meant Spike had himself sprawled out in the middle of the floor to be near me.  I had to be very aware of where he was, because one quick step in the wrong direction could send me flying and it was up to me to step over him! 

For so many, our pets become family members.  They give us such unconditional love.  They help people heal from illnesses or disease; they are working wonders helping troubled teens get back on track. The immediate solace given by our pets is irreplaceable. 

So, my frame of reference about the heart of a home has changed.  I will never again have the conversation about the heart of a home being the kitchen without having my private chuckles and special thoughts about Spike along with it.

Farewell, my dear Spike.   You will be missed and never out of our hearts.

Does the buyer get a better deal by going to the listing agent directly?

In the waning days of 2007 and these first few weeks of 2008, there appears to be a growing number of buyers in today's market who seem to be making contact directly with listing agents of properties, and disclosing that they do not have buyer representation.  I have spoken to some of my colleagues and friends and am hearing the same thing from many of them. 
Interesting. 

Why is that? 

With all the information available today, why would a buyer knowingly not want someone to represent their best interests?  Perhaps, they are not making this decision "knowingly".  Are we as a real estate community not doing a good enough job of educating buyers to their rights?  I don't think that is the reason for this particular path buyers seem to be taking. 

Buyers are being inundated daily with many conflicting messages from the media. 
My theory is that the buyers are under the impression that they will get the best deal by dealing directly with the listing agent of the property.  After all, there is no lack of information for the buyer to come to their own conclusions about the price they should be paying.  And the attitude seems to be that if this one doesn't work out, they will go on to the next.  My own conversations with a few website visitors have said exactly that.  The information they are being bombarded with in the media creates this illusion.  

Buyers seem to believe that they have to make a choice between with getting the best price and being represented by a buyer's agent in the transaction. 

So, buyers ... In the purchase of your biggest investment, pre-planning and taking the time for this next step will produce a big pay off for you in the long run. 
Interviewing a few agents (2 or 3 is a good number) about their experience and expertise in the area you are looking, their buyer agency credentials, and what services they bring to the table for you is a good use of time in the long run.  The best way to come up with a list of buyer's agents to begin interviewing is ask your friends, co-workers and family members who they used, what their experience was and would they use that buyer's agent again.  "Why" or "why not" should be the next question to follow. 

Then, do some homework prior to your interviews so you will be prepared with a list of questions.  Ask the same questions of all the buyer's agents you interview. 
Ultimately, you will most likely have a "gut" reaction to someone who you feel strongly about, either positive or negative. 
After taking this step, if you still believe you have to make the choice between getting a good deal and being represented, (and just to re-iterate ... you don't!) ask some very specific questions of the listing agent.  What is their role?  What does it mean for you?  What can you expect?  What are your rights? 

You have to be even more informed and diligent if this is the route you believe you decide to take. 

Perfection......a fleeting state of being

Perfection. 

If this past Sunday taught us one thing, it is that perfection is a fleeting state of being.  One minor (or major) blip makes perfection a thing of the past.  While perfection lasts, it sets you up for a huge fall.  And the fall does eventually come.  Just ask Tom or Bill, or any member of the team.  It was a pretty sickening feeling for me as a fan/spectator.  I won't even try to fathom what is was like for the team, coach, or owners. 

Perfection does set a high standard in any other walk of life ... spouse, job, house.  The feeling of euphoria is short lived, and is over in a blink of an eye when it eventually becomes flawed.   

At least with a house, you can cosmetically enhance it so it becomes your idea of perfection.  Change the paint, carpet, move some walls, add new cabinets, etc.  The prices seen today are allowing more and more consumers to envision a feeling of perfection because they can use more of their hard-saved cash for improvements that previously would have had to be used for a down payment.  What a great feeling.

My lender friends are telling me that January saw a higher than usual request for pre-approval letters.  That indicates that more purchases will be made, and in a typical spring market that begins to happen after the Super Bowl.  And let's face it, New England fans are working hard to overcome the sense of loss we have all experienced and with no more football, house hunting will be filling in those Sunday afternoon gaps.

One question that continues to be asked is "When will it bottom out?"  The answer is only truly known once the upswing has begun.  Many end up loosing out on the "bottom" because they waited for the billboard to tell them "The bottom is here"!  It doesn't happen that way, so get pre-approved, begin seeing some houses and getting educated to market conditions, and you will feel more confident in the great deals that are out there and won't be scratchin your head when the upswing has begun.

New Video Phone Technology ideal for long-distance families!

As a Realtor®, I am frequently the recipient of new ideas, that includes products, services and business opportunities.  Many times, these are delivered via email, and are most likely met with the same fate.....reorganization into the delete file.  Last week, something came across my desk (actually, the phone since it was a call from a colleague) about a product called a video phone.    I checked into it a little more and eventually attended an information session about this product.  I loved it!!

Imagine, you are someone like me.  I live in MA with my husband and children.  My in-laws, and a brother and his family are in NJ, another brother in MD, PA, CO and my sister in FL.  Not to mention aunts, uncles and cousins in parts of the country other than MA.  I have twin sons.  Do you not think their grandparents would love seeing their little cherubic faces when they call them?                                                                                                                                Or perhaps you travel a lot with your job.  A call to home that allows you to see your family every day would certainly make the travel more tolerable.                                                        Webcams have accomplished the same thing for some time, although I don't know of anyone who uses them.  AND, my in-laws are now 83 without a computer and has no interest in getting one. The phone seems so much better.

And with the number of people from other countries who live in the US and still have family in other parts of the world, what a great way to keep in touch.  In case you can't tell, I was very impressed. 

So, if you are at all interested in finding out more, please contact me.  It's very cool!!

It's a Patriots free weekend

This is a football free weekend......leaving Patriots' fans all over the nation sitting on pins and needles.  The anticipation will leave many anxious and at loose ends.

One way to quell that nervousness is by getting out to look at houses.  If you are even THINKING about the prospect of buying a home, whether it be as an investor or a primary residence, the drop in interest rates and prices makes this a prime time to be shopping.  There has been an increase in properties going under contract in the past month.  Many of those are seeing multiple offers. 

There are a few things you must do before getting out "in the market" to be prepared.                         

• First and foremost, meet with a lender you know and trust and get pre-approved.  If you are considering putting an offer on a property (and you never know when you "know" you are in the "right" house), a pre-approval is essential to accompany the offer.  In today's market, most agents or sellers won't even consider an offer that does not have a pre-approval to review at the same time.  If you are in a multiple offer situation, this can make the difference between having your offer considered with the others, or not. 
• Secondly, find a Realtor® who will represent your best interests.  If you are reading this thinking, "I don't know any Realtors®", the best place to start is by talking to anyone you know who owns a house.  Ask about their experience with the Realtor®, and get referrals.  When you speak to the agent, find out if the agent is either an Accredited Buyer's Representative (ABR®) or Certified Buyer's Representative (CBR®).  Agents with either of these designations have taken courses and have been trained extensively in buyer representation to earn these designations.  A good buyer's agent will conduct an initial consultation with you to find out more about you, your expectations and what you are looking for, as well as spend time with you explaining the process of buying a home.  You wouldn't expect a doctor to perform surgery without first spending time with you to find out what's wrong, correct?  Be wary of the agent who is willing to put you in the car to view houses as soon as they hang up the phone with you and before this important first step has been completed.  Furthermore, remember...the seller is being represented by their agent.  It is vitally important that you have your own representation. 
• It's also helpful to find out if the agent you are meeting with is an ACRE (Accredited Consultant in Real Estate).  This is a relatively new designation and so there are not many out there.  Again, agents with this designation have spent time in extensive training to work as a consultant with their clients.  Just as you would have a lawyer advise you on legal issues, and a CPA work as a tax consultant, a real estate consultant is truly working in your best interest.  You can find out more about this topic on my website at and click on the ACRE  icon on the top right.

So, if you are antsy this weekend, there is a lot to be on the lookout for in the real estate market.   Enjoy!  And Go Pats!!!

The numbers are in.....less than 1/2% difference between 2006 and 2007

We all know that good news does not boost circulation.  You wouldn't know it by reading the headlines in the papers, but the Central MA real estate market has some really good news!

In a year end comparison of the residential real estate market between Middlesex and Worcester Counties, the 2007 numbers were affected by about .5% over 2006.  (All numbers were taken from MLS PIN statistics.)

Middlesex County saw an increase in the number of sales of 1%, and increase in days on market by 1.08%, the sales price was down by .5%, and the ratio between list and sale price remained the same at 96%. 

Worcester County saw a 10% decrease in the number of sales, a 17% increase in days on market, and a rise in average sale price by .5% and the ratio between list price and sale price remained the same at 97%.  So, fewer sales, but a rise in average sale price.

I was actually so surprised at what I found, that I went back to my numbers (which I had originally double checked) and triple checked them.  Why was I so surprised?  Well, if you read or listen to any news on any day of the week, the media has the sky falling down around us.  Doom and gloom. 

This just goes to show that unless you have solid numbers to go by, the media will have you walking around with your head in your hands, frantic about the condition of your biggest investment.

The buying environment now is quite amazing.....lowest interest rates in a year and still low housing prices.  It's a great combination.  These numbers are telling us that the media has it all wrong.....at least when it comes to reporting accurate news about the state of Central Massachusetts real estate.

Snow is not the only thing that dropped on us in the past few days!

While much of MA saw a large snowfall on Monday, this morning we woke to news that something else has fallen.  Inman News has reported another drop in mortgage interest rates, and we are now seeing 30 year fixed rate mortgages as low at 5.45%!  That's really huge, and it's great news for MA home buyers. 

I am seeing that most buyers are ready to make a move.  They have seen prices fall over the past 2 years, and good buys are to be found, especially for the patient!  The short sale market, or pr-foreclosure market, is producing some very solid deals.  Patience is a virtue with these transactions since they can take several months to close, depending on the lender.  As a buyer, all your ducks need to be in a row with your lender.  An "approval subject to appraisal" is the best way to be qualified when presenting an offer.  At the right price, we are seeing multiple offers on properties.  Buyers are educated to the market and those that have the strongest showing with mortgage approval are winning out.  

There is a prediction that the local market will bottom out this year and will most likely not happen until after the spring real estate market is behind us.  So, while there is a lot of snow on the ground and no doubt, much more to come, showings on listngs are up, which means buyers are already looking and getting ready to buy. 

Inman News  is the nation's leading independent real estate news service and content provider to 250+ U.S. newspapers and 50,000 Web sites.

It's warming up out there.....and it has nothing to do with the weather!!

There is a lot of activity in the market.  First of all, Bank of America has bought out Countrywide Home Loans.  Countrywide had filed for bankruptcy protection several months ago due to all the bad paper it was carrying.  That was a result of the high number of sub-prime loans they had outstanding and that was going in to default.  I'm not certain how long the transition will take, but chances are very good that there will be a transition lag that will slow things down a bit. 

Additionally, there are signs the fed may lower the interest rate again.  Right now, it's below 6% in many cases.  That is spurring buyers to buy.  The properties may not be moving at the price the seller wants (or in some cases, needs) it to, but we are finding that once the right number is reached, not only are offers coming in, but in many cases, multiple offers. 
THAT is when you know you have hit the market value for any particular property.  There is not a lack of information available to the buyers, and they will not overpay.  Sellers, wouldn't it be great to have a bidding war because you have 2 or more offers on your house?  You may end up with a higher price than you listed it for.  BUT, it has to be the right number. 

So, as the rain falls, the temps remain almost spring-like, and the snow begins to melt, remember we are still in the early part of January, and properties are moving.  That is promising for the spring market to come.  In the meantime.......Enjoy the weekend.  Go Pats!!!

Follow up to 'Don't Get Left Out In The Cold'

It just goes to show you.....put your thoughts out to the universe and see what happens.  On Saturday, I spoke to a prospective buyer who had requested some information from my website.  She was in the process of getting pre-approved and while she had an idea about the price range, she was not sure.  I was thrilled she was so dedicated to getting the pre-approval process in place before she did anything further.  The opposite is called "Cart Before The Horse" syndrome.  

Toward the end of our conversation, I asked her the name of the lender she was using for her pre-approval and lo and behold,"NACA" was the name she came up with.  If you remember my last post, it was about my introduction to this organization through a newspaper article.  She went on to tell me that they had expanded beyond the Greater Boston area and were now able to assist buyers in Central Massachusetts. 

Once she told me the preparation she had to go through to even have the initial consultation with them, I was impressed.  So, as I follow this process, I will continue to write to keep you updated.  I will be interested to see how it rolls out.

In the meantime, the mild temps are already making people thinking about the spring real estate market.  That's a good thing!

Don't get left out in the cold

In the December 30th Boston Globe Magazine, there was a section highlighting Bostonians of the Year.  One that struck me most was about Bruce Marks.  I had never heard of him prior to reading that story. I'm sure the reason it caught my eye is because of the nature of my business.  Bruce Marks is the CEO of a non-profit organization called Neighborhood Assistance Corporation of America (NACA).  The story says he is an advocate of the underdog in the mortgage industry. 

Bruce Marks got his start in the 80's by assisting hard-working, qualified people to purchase housing, in a lending environment that did not want to take a 2nd look at these people.  His approach seems far different than the stories we are hearing about the predatory lending practices by any mortgage brokers/companies that has helped make headlines in 2007. 

He actually did his homework, helped educate the potential buyers to the obligations and responsibilities of home ownership and ultimately assisted thousands of people to own part of the American Dream.  In today's world, he is now advocating for the "victims" of the crisis caused by unethical practices that made many rich and at the same time have caused many to be homeless.   He is helping thousands to restructure their debt, get out of these "noose-like" provisions of the loan and get back on their feet. 

It was a nice story.  I came away believing he is one of the good guys.  Hopefully, there will be more stories like this one.  Many think their only option is foreclosure if they are caught in a loan they can no longer afford (due to the adjustable rate going way up!), in a house with no equity left (if there ever was any due to 100% financing practices).  That's not the case.  There is definitely a way to get out of the mire and help you get back on your feet.  And, it's not another astronomical cost tied to the ones you already can't afford!! 

If you know of anyone who is in this situation, encourage them to call or email me.  It does not cost them anything but some time that will be spent with me getting educated to the process.   This is a new specialized field that has come to the forefront because of the current crisis and it's important to know someone who can help direct you and that HELP is available!!!