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!

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.

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.