4 Pitfalls to Selling Your Home for the Best Price in the Shortest Amount of Time

You've decided to sell your home. Great! Now what? Many folks who make the decision to sell their home fall victim to the following four pitfalls. By educating yourself about some common missteps you can save yourself from making a costly mistake when hiring an agent and listing your home.

1) Overpricing - It's no surprise that every owner wants the highest possible sale price for their property. This desire is one that some agents take advantage of by selling you on an unrealistically high list price. Once they have a signed listing agreement they'll bank on price reductions to sell your home. The problem with this tactic is that it costs homeowners thousands of dollars. A property that is originally listed too high not only squanders its first few weeks on market but also carries a stigma throughout its life on-market due to the unrealistic original list price. All this results in lower demand down the road and a lower sale price. It's important to remember when interviewing agents that the highest suggested price is not always the best. Make sure to ask your agent for specifics on how they arrived at their price suggestion.

Experience shows that the highest price is realized within the first 30 days of being offered for sale on the open market.

2) Not Managing Expectations - Real estate is very much a perception based industry. Buyers want to feel like they are receiving good value. Many times agents try to stretch the truth by counting a glorified hallway as an extra bedroom, only to have potential buyers disheartened when actually viewing the home. One of the jobs of a good agent is to accentuate the home's positives and frame things in a way that adds perceived value to a home. Rather than listing a home with an extra bedroom, listing it with a utility room can turn a disappointed buyer into an excited one as they discover a useful extra space. Many times in our industry perception is reality and buyers who leave a property feeling great about all the "additional" value a home offered will be far more likely to put in an offer than those who left disappointed about the tiny bedroom.

As a Realtor, we have an obligation to relay the information about a house honestly.  Further, we also request the seller fill out a “Seller’s Statement of Condition”.  We follow up by verifying information with the appropriate local authorities to clarify such potential questions such as zoning, side-line setbacks, etc.  This helps to avoid surprises that could impact the transaction.

3) Not Making the Best First Impression - You know the old saying a picture is worth 1,000 words? Well in real estate they are probably worth 100,000. Too many times sellers allow their agents to take photos with a cell phone or take photos themselves. Today's buyers are making snap decisions viewing homes online and are basing these judgements off your photos. Hence they need to be high definition, clear, and purposeful. You are telling a story with your media plan and want to entice buyers to see your home in person. The single best way to turn off potential buyers is with poorly lit, poorly edited, and poorly executed photos. Additionally, video is becoming huge in real estate as even more of the house hunting process is taking place online. Ask your agent about adding HD Video to your listing to further entice interested buyers to your property.

As your Realtor, I will be at all showings early, in order to turn on the lights, de-clutter, put the dog out, etc.  When we list your home, we’ll offer suggestions on how best to present your home to prospective buyers.  Some can overlook your personal “stuff”, and some can’t.  Don’t take the chance!  Put your best look forward!  Studies have shown that landscaping can increase the amount realized by as much as 5%!

4) Not having a Customized Marketing Plan - Our last pitfall is one that many sellers fall into. Many agents you will interview will not have a specific plan to market your home. They will instead rely on scripts and a standard listing presentation to get you to sign on the dotted line. After that they'll simply list your home on MLS and hope buyers find it. Marketing for homes cannot be one-size-fits-all. Every home has a distinct set of buyers that will be interested in it and every set of buyers has a distinct way to be reached. Ask your agent who your home will appeal to and how they plan to proactively market to them. If their plan relies heavily around submitting your listing to hundreds of sites you've never heard of you may want to stay away.

We do have a marketing plan with aspects that some agencies do and some that most agencies do not.  Our agent will go over it with you and tailor it to your needs and concerns.  The best current information indicates that the internet is the number one method of attracting buyers; signs continue to be number 2!

Psst! Harvard Talks Homeownership!

Harvard: 5 Financial Reasons to Buy a Home Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. This year he released a new paper on homeownership - The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home. Here are the five reasons, each followed by an excerpt from the study: 1.) Housing is typically the one leveraged investment available.  “Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.” 2.) You're paying for housing whether you own or rent.  “Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.” 3.) Owning is usually a form of “forced savings”. “Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.” 4.) There are substantial tax benefits to owning.  “Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.” 5.) Owning is a hedge against inflation. “Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.” Bottom Line We realize that homeownership makes sense for many Americans for many social and family reasons. It also makes sense financially.  - courtesy of KCM - Keeping Current Matters

Psst! It's About More Than Real Estate!

Hoft Farm is a 90+ acre preserve in West Tisbury managed by the Nature Conservancy.  It's open to the public and there are walking trails through it's various eco systems.  You can find out more about the projects on the Island of the Nature Conservancy by visiting their site (nature.org).  The Conservancy has been a vital part of the preservation of the Island's beautiful and bountiful places for many years.

Why You Should Visit Located on Martha's Vineyard, this parcel of pitchpine and oak woods, freshwater ponds and scenic open field has some of the most intact and healthy morainal woodlands found anywhere from Long Island to Cape Cod.

Location West Tisbury, Martha’s Vineyard

Size 90 acres

Why the Conservancy Selected This Site The Hoft Farm property offers a unique perspective on the history of Martha’s Vineyard’s natural landscapes and the impact of humans on these landscapes. The 90 acres include a number of parcels of land in various stages of use and recovery.

What the Conservancy Is Doing A farmhouse on the property is a private residence (not open to the public) is used as a field station to support ecological research and to house burn crews. The burn crews conduct prescribed burns on the islands each spring and fall.

Time to Take Your House Off the Market?

Many sellers feel that the spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the fall and winter have their own advantages. Here are five reasons to sell now.

Only Serious Buyers Are Out

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere 'lookers'. The lookers are at the mall or online doing their holiday shopping.

There Is Far Less Competition

Housing supply always shrinks dramatically at this time of year. The choices for buyers will be limited. Don't wait until the spring when all the other potential sellers in your market will put their homes up for sale.

The Process Will Be Quicker

One of the biggest challenges of the 2013 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.

There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 25% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.

It's Time to Move On with Your Life

Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

Courtesy of KCM - Keeping Current Matters.

Ignoring Insurance Risks Can Be Costly

One of the first stages during the hunt for a new home is crunching the numbers to figure out your budget. And no matter how high or low that budget may be, prospective homebuyers should take into consideration the cost of insuring the home. It's easy to overlook insurance, especially since you may be more worried about the number of bedrooms, the school district, or the size of the backyard. But before you can close on the purchase, your lender will require you to line up homeowners insurance. You may be hit with some sticker shock if the home you are about to buy ends up being a high risk- and therefore high cost- home to insure. Once you’ve got a few homes in your sight, you should get some preliminary home insurance quotes on each property. Just as you will compare asking price and property taxes- figure your insurance costs into the equation as well. Even homes of similar size and style can vary greatly in terms of cost to insure. Here are a few lesser known home features that affect insurance costs: Location- The location of a home will have a huge impact on the insurance premiums due to the proximity to a fire station, the fire station ratings and the flood zone it’s located in. When you shop for homeowners insurance you will be asked how close the home is to a fire hydrant and to a fire station. In the event of a fire, the quicker the fire department can respond to the home, the less damage will be incurred. The average claim for a residential fire exceeds $33,000, according to the Insurance Information Institute (III). Therefore insurers typically charge lower premiums for homes within a close proximity of each. Fire stations in each community each have a specific fire protection class rating which also affects the home insurance premiums on a home. Last but certainly not least, the specific type of flood plain that a home is located in may require you to carry a separate flood insurance policy in order to obtain a mortgage. Flood insurance is recommended for all properties, however, in certain high-risk flood plains a flood insurance policy is not only required- but the coverage could double your annual insurance spend. Roofing- Ask your realtor about the home's roof. You'll want to know how old it is and the material it's made of. Roofs that are 20 or more years old can be considered high risk and may be expensive to insure. Replacing a roof also can be costly so you'll want to weigh the pros and cons. Newer roofs, built with impact-resistant material, are ideal. These roofs are made to withstand nature's harshest elements, and they can also qualify homeowners for more preferred home insurance policies. Swimming Pool- You might be looking specifically for a house with a pool but you should know swimming pools can drive up your insurance premiums. Accidents frequently happen in and around pools so insurance companies see them as a high-risk home feature. Remember, you can be held liable even if a trespasser has an accident at your pool. For this reason, homes with swimming pools located on the property should meet all local safety codes and carry high limits of liability coverage. Age- The age of the home can also affect your premium. Typically older homes have outdated electrical wiring and plumbing systems, which can lead to fires or water damage. If you are considering an older home, ask your realtor the age of the plumbing, HVAC and electrical systems. If they have been updated in recent years, this is important to note with your insurance agent. If not, make sure you know what this may cost you in additional premiums and to upgrade in the future. Security equipment- Security equipment is a plus for obvious reasons- items such as burglar alarms, deadbolt locks, and smoke alarms can make your home a safer environment. In addition, insurance providers offer discounts for homes featuring these items. In fact, you could save 10% or more on your premium. Take note of the types of safety devices in the homes you are comparing so you can get accurate discounts figured into your insurance rates. You likely won't make a decision on a house because of insurance factors alone. But it's best to have an idea of where you stand as you consider your options. Start by checking out average home insurance rates in your state. Then work with an agent you can trust to compare quotes on various properties. An educated search can help you find the home of your dreams and home insurance premiums that won't break the bank. Carrie Van Brunt-Wiley, editor of the HomeInsurance.comBlog.  The HomeInsurance.com blog serves as a resource center for insurance consumers and homebuyers across the country.

For Sale by Owner? Prepare to Negotiate!

In a recovering market, some sellers might be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional. The real estate agent is a trained and experienced negotiator. In most cases, the seller is not. The seller must realize the ability to negotiate will determine whether they get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies which work for the buyer and will almost always find some problems with the house.
• The termite company if there are challenges
• The buyer’s lender if the structure of the mortgage requires the sellers’ participation
• The appraiser if there is a question of value
• The title company if there are challenges with certificates of occupancy (CO) or other permits
• The town or municipality if you need to get the Cos permits mentioned above
• The buyer’s buyer in case there are challenges on the house your buyer is selling.
• Your bank in the case of a short sale.

And this is just one side of the transaction!  Add into this the time required to be available to show 

the property - and at it's best advantage!  No wonder real estate sales is a profession!  Hire a 

Realtor for this most important transaction.

- courtesy of KCM - Keeping Current Matters.

A 3% Inflation Rate Will Affect Sales

This from Lawrence Yun, Chief Economist for the National Association of Realtors.

The most recent U.S. inflation rate has clocked in at a manageable 2 percent.  This level is not inherently worrisome for consumers.  But pressure is building, and rates are expected to trend higher.  Apartment rents and home owner equivalency rents (a fuzzy hypothetical figure of what home owners would pay to rent out their homes) are both increasing more than 2 percent annually and could soon approach 3 percent.  Persistent housing shortages and falling rental vacancy rates are behind the rising rates.
Because housing costs make up the largest part of the consumer price index, these increases are significant.  But other sectors contribute to inflationary pressures, too.  Medical costs, which have been rising more gradually in recent years (they should record their slowest price gain in 40 years in 2013) are likely to head back up.  Energy costs are also rising sharply.  Crude oil prices were up 19 percent from a year ago, while natural gas prices jumped 23 percent.
The only component of the CPI (consumer price index) that is falling pertains to electronic devices.  And even those drops are not absolute price declines. (If a new model sells for the same price as the old model, statisticians compute it as a decrease though consumers get no price break).
So if inflation spikes from 2 percent to 3 percent, does this create significant hardship for consumers or the overall economy?  More than you might think.  That's because as inflation ticks up, so do mortgage rates.  If inflation rises to 3 percent by 2015, which is more likely than not, mortgage rates will have to rise by a full percentage point to compensate lenders for the loss in purchasing power of the money returned to them.  A one percentage point increase on a $200,000 loan will increase the monthly payment by $167.  On a $500,000 loan, the payment rises by $417.
So yes, inflation matters and it will accelerate in 2014 and 2015. . . .

---published in Realtor magazine (a publication for real estate professionals)

What does this mean for you?  If you are thinking of selling, do it now to have a wider spectrum of buyers who are able to purchase your home.  Each percentage point increases in interest rate drops a buyer's purchasing power by 10%.  If you're buying, read the prior sentence.
We will (hopefully) never see the kind of interest rates that put a standstill to the housing market that we saw 30 years ago (imagine 17 percent interest rates!!), so despite tighter guidelines for mortgage approval and economic indicators that continue to cause concern, it is still the best time to get on with your life and buy that home you've dreamed of.  Call a Realtor today.

5 Housing Trends for this Fall - 2013

Home prices won’t climb as fast this fall as they had been rising. But sellers need not worry: This is still their market.

Still, this fall brings good news for homebuyers: They have been granted some extra time to grab low mortgage rates. Lenders now regard buyers as their golden customers. Even people who lost their homes to foreclosure or short sale may get a second chance to get a mortgage to buy a house again.

If you are still paying a higher interest rate on your mortgage, this is really your last chance to refinance.

For homeowners who have already refinanced but are thinking of cashing out some of that equity, think twice. But if you really want to cash out, home equity loans are making a comeback.

Here are five housing trends you should expect to see this fall.

Home prices chill

After a strong summer homebuying season, the housing market is likely to cool off in coming months.

That doesn’t mean buyers will no longer face competition when bidding on homes, or that prices will drop. But the end of warm weather, coupled with higher mortgage rates, will probably slow the housing frenzy, says Robert Dorsey, chief data analytics officer for FNC, a real estate valuation company.

“Price increases, which had been really robust, seem to be slowing down a little,” Dorsey says. “As we go into the fall and winter, there is a seasonal decrease in home sales. The economy has been stagnant and interest rates are increasing. I think there will be reduction in price increases and demand.”

This is good news for homebuyers. While the inventory of homes for sale remains tight, potential homebuyers will get a bit of extra time to find the home they want without the pressure of watching home prices shoot up.

Should you wait and see if prices eventually drop? No, Dorsey says.

“We may have a period of flat prices, but they will likely continue to go up,” he says. “I don’t think home prices in general are going to go down. Plus, you will likely get a lower interest rate today than in six months.”

Standards loosen up for buyers

As mortgage rates rise, lenders will no longer see homeowners lining up to refinance their mortgages. Their golden customers now are homebuyers, and they will do whatever it takes to attract as much business from homebuyers as possible.

Expect underwriting standards to loosen up in coming months as lenders turn their attention to buyers, says Anthony Sanders, professor of real estate and finance at George Mason University. Lenders also are likely to offer incentives and reduce loan fees to entice more buyers, Sanders adds.

“I think banks have gotten crushed because of the decline in refinancing,” Sanders says. “Now that the cash cow has been milked, they have to build up their pipelines for purchases.”

The average credit score for loans that closed in August has dropped to 734, according to data compiled by Ellie Mae, a mortgage technology firm. That’s the lowest average score since the company started tracking the data in August 2011. About 31 percent of the mortgages closed had a score below 700. A year ago, only 15 percent of the loans fell below that threshold.

But it remains to be seen how much the standards will be loosened, given the new mortgage regulations that go into effect next year.

Distressed buyers go after a second chance

A lot of people lost their homes to foreclosure or short sale in the last few years. If these people can show that a job loss, or reduction in income, was responsible for losing the home, they can apply sooner for an FHA-insured mortgage.

The FHA previously required a three-year wait after the foreclosure to apply for a new loan. The FHA now makes exceptions, shortening the wait time to one year for borrowers who lost their jobs or income, and whose credit was tainted as a result.

“It’s not one of those programs where everyone qualifies, but it’s a really good program for people who lost their jobs because of the economy,” says Scott Schang, manager for Broadview Mortgage Katella in Orange, Calif.

To qualify for the program, borrowers must present documentation showing they lost at least 20 percent of their income for six months and that they were able to get back on their feet and pay their bills on time for at least one year, he says.

“You absolutely have to have all your documentation, including unemployment benefit documents (and) bank statements showing the income loss,” he says.

There’s no shortage of buyers interested in the program, but they should make sure they really are financially prepared to own a home again before applying for the loan, says Ed Conarchy, mortgage planner for Cherry Creek Mortgage in Gurnee, Ill.

“Just because you can do something, it doesn’t mean you should,” he says.

Mortgage rates take a quick nap

After increasing by more than a percentage point over the summer, mortgage rates are likely to take a break this fall, as long as the Federal Reserve continues to cooperate with borrowers.

“This fall, I would see rates remaining fairly stable,” says Cameron Findlay, chief economist for Discover Home Loans in Orange County, Calif. “I don’t expect them to bounce out of the range of 4.3 (percent) to 4.8 (percent).”

But that could quickly change if the Federal Reserve cuts back on the $85 billion per month bond-purchasing stimulus program that has helped keep rates low for so long, Findlay says.

Mortgage rates spiked in May when the Fed said it planned on reducing the amount of purchases by the end of the year. Investors expected the Fed to trim the program after a September meeting, which would have caused rates to climb. But the Fed stuck with the stimulus program, giving borrowers some extra time.

Eventually, the Fed will slow the pace of purchases and rates will jump. This fall could be the last chance for buyers and refinancers to grab a low rate.

Homeowners cash out equity

Many homeowners have regained equity as home prices increased steadily this year. As these homeowners realize their gains, they may be tempted to cash out some of that equity to remodel their homes, pay for the kids’ college or pay off credit cards.

In the second quarter of this year alone, 2.5 million homes with a mortgage returned to positive equity, shows a recent report by CoreLogic.

Those who have enough equity have two common options to extract it: a cash-out refinance or a home equity loan. Since mortgage rates jumped over the summer, home equity loans have started to look more attractive to borrowers who don’t want to refinance with today’s rates.

Lenders also have been more willing to make home equity loans, now that prices are rising again.

One lender betting on the return of home equity loans is Discover Financial Services. The lender recently started offering home equity loans from $25,000 to $100,000 with rates fixed for up to 15 years.

Could we be heading back to the days when homeowners used their properties as cash machines?

Findlay says it’s unlikely, at least for now.

“This generation of consumers has learned that home prices can go up and they can go down,” he says.

All text by Polyana da Costa, Bankrate.com contributor

Who’s Side Are You On Anyway?

Who’s Side Are You On Anyway? Understanding Massachusetts Real Estate Agency & Designations

By Rich Vetstein on Oct 12, 2013 12:27 pm


Reviewing this blog, it occurred to me that I’ve never written about real estate agency and designations, which is one of the more confusing aspects of real estate law. I think all the new disclosures and regulations imposed by the Board of Real Estate, while well-intended, have made this area unnecessarily complicated. I’ll try to explain agency in plain English.
Massachusetts Mandatory Licensee Consumer Relationship Disclosure
The Massachusetts real estate brokerage industry is highly regulated by both state law and regulations, as well as local and national codes of ethics. Under state regulation, once you sit down with a Massachusetts real estate agent to discuss a specific property, the agent should give you a form called the Massachusetts Mandatory Licensee Consumer Relationship Disclosure. The disclosure form describes the five types of agency relationships between and among buyer, seller, and agent:
Seller’s Agent – This is typically known as a listing agent. The real estate agent represents only the seller, not the buyer. The listing agent owes the seller undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability. However, a listing agent must disclose all known material defects in the real estate to buyers.

Open Houses:  Open houses are often the cause of disputes as to agency and commissions. Under Mass. regulations, at any open house the listing agent must conspicuously post and/or provide written materials explaining to attendees the relationship they may have with the agent conducting the open house. If a buyer is working with an agent (but the agent is not present at the open house) it’s a good idea to write the name of the agent’s name and leave the agent’s card at the sign-in, otherwise the listing agent could be considered the procuring cause of the buyer which could cause a dispute down the road.

Buyer’s Agent – A buyer’s agent works for the buyer only. The agent owes the buyer undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accountability. Like a listing agent, a buyer’s agent must disclose any knownmaterial defects in the real estate. Some agents are exclusive buyer agent’s and do not take on listings. Some argue that the expertise of the market provided by a buyer’s agent provides a competitive advantage.
Designated Seller’s and Buyer’s Agent – This type of agency occurs when a listing agent refers an agent working in the same office to represent the buyer. So, two agents in the same office are representing both sides of the transaction. The happens a lot when an unrepresented buyer is introduced to the property at an open house, and the listing agent will refer the buyers to a fellow agent in her office. This is usually the smart and prudent choice to avoid the conflicts inherent in being a dual agent representing both buyer and seller, discussed below. Both buyer or seller must agree to a designated agent agency in writing. The designated agent owes her client the same duties and obligations discussed above.
Dual Agent – A dual agent represents both sides of the transaction — buyer and seller –but can be a risky proposition. The upside for the agent is that he or she keeps the entire commission, but the agency can be fraught with potential conflicts of interest. Dual agency is allowed only with the express and informed consent of both the seller and the buyer. Written consent to dual agency must be obtained by the real estate agent prior to the execution of an offer to purchase a specific property. A dual agent shall be neutral with regard to any conflicting interest of the seller and buyer.
Non-Agent Facilitator – This is the rarest of all agencies. When a real estate agent works as a facilitator that agent assists the seller and buyer in reaching an agreement but does not represent either the seller or buyer in the transaction.
What is a “broker” vs. a “salesperson”?  Under the Massachusetts regulations governing real estate agents, a real estate broker runs the real estate office and is the broker of record, overseeing the transactions of all salespersons (agents). A broker must complete 40 additional hours of education and must work for a broker for at least three (3) years before they can move on to licensure as brokers. A broker is responsible for accepting and escrowing all funds, such as a deposit placed on the purchase of a home, and for finalizing transactions. A real estate broker must supervise any transactions conducted by a salesperson.
A real estate salesperson is what most folks consider real estate agents. A salesperson must be affiliated with a broker, either as an employee or as an independent contractor, and work under the supervision of the broker. A salesperson can not operate his own real estate business.A salesperson also has no authority or control over escrow funds.
What Is A Realtor®? A Realtor is a real estate broker or salesperson who is a member of the National Association of Realtors and has agreed to conduct herself under the comprehensive NAR Code of Ethics. Not all real estate agents are Realtors. Membership in the NAR gives a Realtor full access to the entire Multiple Listing Service providing a national database of all sold and listed properties. Realtors can also file complaints against each other and the organization accepts complaints from consumers. Complaints can affect membership status and fines can be levied against agents who are found guilty of wrongdoing by a multi-member panel of their peers. The NAR does not have the ability to suspend a real estate licenses–that action can only be accomplished by the Mass. Board of Real Estate.
_____________________________________________

Look At Your Windows - They're Paying Your Electric Bill!

I read House Beautiful - and always find something interesting in it, whether it'a about design or color (I'm an amateur artist) but this month's issue (October - see cover below) has an article titled Tech Support.  I was so amazed at what I read that I have to share it! (I'm going to type it as written in the magazine).

1. Save The Birds:  Every year, millions of birds fly into glass windows.  This patterned coating - visible to birds but not humans - prevents that.  All you'll see is clear class.  Ornilux Mikado coating, available through architects and contractors.  ornilux.com

Let's save the birds!

2. Power Windows: The next big thing in every? Coming soon: windows that double as solar generators! SolarWindows are sprayed with an electricity-generating coating that enables them to collect power from the sun and any fluorescent or LED lights inside.  newenergytechnologiesinc.com.

Amazing - right?

4. Fogging Up:  With this easily installed, Wi-Fi-enabled window film, you can use your smartphone to switch between see-through and opaque-but-translucent almost instantly.  Just measure the window, cut the electrostatic file to size, an stick it on the glass. Sonte Film, From $299 sonte.com

Who needs shades anymore?

5. Lockdown:  In collaboration with Honeywell, Andersen Windows is launching a system that lets homeowners know when windows or doors are unlocked.  Via sensors embedded in the company's E-Series/Eagle windows and doors, you can see a room-by-room list on your smartphone or tablet.  VeriLock, from $120 per wind or door.  andersenwindows.com

Maybe a bit much for where you live, but how about on your vacation home or Paris apartment?

7. Sunblock: 3M's Prestige window film allows in 40 to 70 percent of natural light, yet blocks up to 97 percent of infrared light, 99.9 percent of UV rays and 60 percent of heat.  It helps keep temperatures consistent from room to room and reduces glare on TV and computer screens.  3M Prestige Series window film, from $10 - $15 per square foot. 3m.com.

Never mind that it protects your carpets, furniture and artwork.

I hope you've been amazed as I have on what retail scientists are working on to make our lives a bit more comfortable and energy efficient.

Should I Wait for Interest Rates to Come Back Down?

Should I Wait for Interest Rates to Come Back Down?

Interesting Article on the Housing Finance Challenges

August 10, 2013 in the New York Times

The Housing Market Is Still Missing a Backbone

By GRETCHEN MORGENSON
IN a speech in Phoenix last Tuesday, President Obama finally entered the debate over the future of
United States housing policy. But his talking points offered few details about how to reduce the
government’s giant footprint in the mortgage market.
Mr. Obama vowed to keep mortgage costs affordable for first-time home buyers and working
families, pleasing those who think that the government should have a large role in this arena. His
call for investment in rental housing was a welcome change from past mantras that focused solely
on increasing homeownership across the country.
Playing to taxpayers who are angered by the government’s takeover of Fannie Mae and Freddie
Mac in 2008, Mr. Obama said he wanted to wind these companies down. That’s an important goal.
But as if to prove how hard this will be, both companies later in the week announced enormous
profits for the second quarter of this year, most of which go to the government in the form of
dividends. Together, the companies reported $15 billion in profits; with Treasury on the receiving
end of this lush income stream, it will be tempting to keep the mortgage finance giants in business.
Yet with the government backing or financing nine out of 10 residential mortgages today, it is
crucial to lure back private capital, with no government guarantees, to the home loan market. Mr.
Obama contended that “private lending should be the backbone” of the market, but he provided no
specifics on how to make that happen.
This is a huge, complex problem. In fact, there are many reasons for the reluctance of banks and
private investors to fund residential mortgages without government backing.
For starters, banks have grown accustomed to earning fees for making mortgages that they sell to
Fannie and Freddie. Generating fee income while placing the long-term credit or interest rate risk
on the government’s balance sheet is a win-win for the banks.
A coming shift by the Federal Reserve in its quantitative easing program may also be curbing
banks’ appetite for mortgage loans they keep on their own books. These institutions are hesitant to
make 30-year, fixed-rate loans before the Fed shifts its stance and rates climb. For a bank, the
value of such loans falls when rates rise. This process has already begun — rates on 30-year fixedrate
mortgages were 4.4 percent last week, up from 3.35 percent in early May. This is painful for
banks that actually hold older, lower-rate mortgages.
Private investors, like mutual funds and pension managers, aren’t hurrying back to the residential
mortgage market, either. Deep flaws remain in the mortgage securitization machine, and it needs
to be retooled before investors will begin buying these securities again.
Perhaps the largest problem for investors who might otherwise be willing to return to the mortgage
market is the lack of transparency in privately issued securities. Investors interested in mortgage
instruments are not allowed to analyze the loans going into these pools before they buy them.
The banks putting together the deals typically provide some data, like borrowers’ incomes and
credit scores, as well as whether the loans backed primary residences or second homes. But
investors don’t get access to actual loan files that can tell them what they need to know about the
quality and types of the mortgages packed inside the deals.
A CIVIL case filed by the Justice Department last week against Bank of America highlights the
downside of nondisclosure. In that matter, prosecutors accused the bank of misleading investors
when it sold them a mortgage security in early 2008. Although the bank contended in marketing
materials that the security contained prime loans that met its underwriting standards, more than
40 percent of those loans did not comply with those standards, prosecutors said.
Lawrence Grayson, a Bank of America spokesman, said the bank was fighting the case.
“These were prime mortgages sold to sophisticated investors who had ample access to the
underlying data and we will demonstrate that,” he said in a statement last week.
But the Justice Department contends that the bank failed to disclose important facts to investors
about the quality of the mortgages in the $850 million pool, which wound up performing badly. As
of June 2013, prosecutors said, 15.4 percent of those mortgages had defaulted, indicating that they
were of a far lower quality than advertised. The Justice Department estimates that investors will
lose more than $100 million on the deal.
Then there’s another issue. Investors are also unlikely to take an interest in mortgage securities
because serious conflicts of interest are still embedded in the process.
For example, in the aftermath of the crisis, investors learned that they could not rely on the trustee
banks charged with overseeing these loan pools to do their jobs. The trustees are supposed to make
sure that firms administering the loans treat investors fairly. These duties include taking in and
distributing payments as well as foreclosing on borrowers.
Even though the trustees are supposed to work for investors, these watchdogs are actually hired by
the big banks that not only package the mortgage securities but also provide administrative
services for them. So it was perhaps not surprising that the trustees failed to make the big banks
buy back loans that didn’t meet the quality standards set out when the securities were originally
sold. Such buybacks could have prevented billions in losses for investors, and the trustees’ inaction
indicated where their allegiances lay.
Yet another reason for investors around the country to steer clear of mortgage securities is the
recent action by Richmond, Calif., to seize underwater home loans and reduce the amount of debt
outstanding on the properties. Many of the loans that the city officials want to restructure are held
by mutual funds and pensions.
Pimco and BlackRock, two huge mortgage investors, are among those represented in a lawsuit filed
last week against Richmond, contending that such a plan would violate the contracts that investors
agreed to when they purchased the loans. And the Federal Housing Finance Agency, the overseer of
Fannie and Freddie, has concluded that Richmond’s action could threaten the safety and
soundness of the companies’ operations, harming taxpayers.
Mr. Obama’s views on the path forward for housing finance are welcome. But much work needs to
be done before private capital will come back to this market. Eliminating conflicts of interest and
increasing transparency in the securitization process will go a long way to achieving that end.

Open Houses this Weekend on the Island

We just listed two office suites in Vineyard Haven with views over the Lagoon.  I can tell you from experience that this view is very calming and a real plus to have in a small office environment where normally you might be looking at blank walls.  Each suite is available immediately and includes utilities.  There is a common kitchen, baths and a loading area.  The building was renovated in 2002 and the spaces have heat and air conditioning.  A short term lease is offered - up to 18 months.  Call for more details at 508-939-0206.

Millennial Home Buyers - Is this You?

Millennial Home Buyers [INFOGRAPHIC]

Selling a House? Don’t Overprice It

Selling a House? Don’t Overprice It  That's if you truly want to sell it in the least amount of time for the most money!

Homes for Sale on Martha's Vineyard Today!

Here are the stats for single family homes for sale on Martha's Vineyard as of today, July 9th, 2013.

Edgartown - 143 single family homes are on the market for sale.  Average asking price = $2,060,000.  Median asking price = $1,325,000.  Average Days on the Market = 233

Oak Bluffs - 104 single family homes are on the market for sale.  Average asking price $900,460.  Median asking price = $677,500.  Average Days on the Market - 283

Vineyard Haven - 88 single family homes are on the market for sale.  Average asking price = $1,768,000.  Median asking price = $1,024,000.  Average Days on the Market - 277

There is still time to buy a home here before the mortgage rates increase!  

We have a new listing in Menemsha - here's a photo of the 3 bedroom 2 bath home located close to the fun in the harbor.

Kathleen Kendrick will be hosting an Open House here this Saturday, July 13th from 11:00 - 1:00.  Call her at 617-291-6775 for additional information.

HomesonMarthasVineyard.com

MVSummerRentals.com

Buying a House? 3 Reasons to Do it Now!

Buying a House? 3 Reasons to Do it Now!

Selling a House? 5 Reasons You Should Do It Now

Selling a House? 5 Reasons You Should Do It Now

One Month of Vineyard Real Estate Activity

In the last month (May 10th through today - June 10th), 109 properties came on the market for sale on the Island.  The median asking price for these properties is $795,000.

41 properties sold (passed title) in the last 30 days.  Median price of $440,000 and the average days on the market were 375!

20 properties have had a price adjustment (down) in the last 7 days to a median of $587,000.  Average days on the market are 271 (so far).

Last week we executed the purchase and sale agreement on this beautiful new home on Whaler's Walk in Edgartown.

We also have some new listings:

This Aquinniah condominium:

This Edgartown/Katama home:

And a new home will be going up on a piece of land in Vineyard Have.  Stay tuned for details!

Housings Impact on the Economy

When economists talk about the housing industry, many don't realize the many other industries impacted by housing's ups and downs.  Here (courtesy of the KCM Blog) is a breakdown on theeconomic impact of the average home sale.

Recently the research team at the National Association of Realtors (NAR) looked at studies done by the Bureau of Economic Analysis, the Census Bureau, Macroeconomic Advisors and the Joint Center for Housing Studies at Harvard. After reviewing the data, they determined the total economic impact of a typical home sale in the United States is an astonishing $56,464.

Here is the breakdown of their report:

Economic Contributions are derived from:

▪                Home construction

▪                Real estate brokerage

▪                Mortgage lending

▪                Title insurance

▪                Rental and Leasing

▪                Home appraisal

▪                Moving truck service

▪                Other related activities

When a House is Sold in the United States:

$14,958 – Income generated from real estate related industries

$5,647 – Additional expenditure on consumer items such as on furniture, appliances, and paint service

$3,509 – Expenditure on remodeling within 2 years of purchase

It generates an economic multiplier impact. There is a greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be: $11,575

Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy which is estimated in the U.S. to be: $20,775

When you add the numbers up it comes to over $56,000!

Expert Advice Does Not Mean Perfect Advice by THE KCM CREW on MAY 16, 2013

Don’t be afraid of those two words-expert advice. Remember:

• An expert doesn’t mean you’re going to give perfect advice.
• An expert means you’re going to give excellent advice.

Here’s the difference:

If you go to a doctor with a serious illness, she can’t tell you how it’s all going to wind up in the end. She can’t know for sure. Therefore, she can’t offer perfect advice.

However, your doctor can only give you excellent advice. She can tell you about your illness and your options, whether it be surgery or medications. She can also explain what she believes to be the best option for you based on your history, symptoms, and overall health. Ultimately, though, you’re going to make the final decision of whether you go through with the treatment plan.

Once you make that decision, your doctor will take you by the hand and walk you down the road to recovery. She will explain to you that there might be adjustments that need to be made to the treatment plan, because no one can know for certain how things will turn out.

She might have to adjust your medications or increase or decrease your treatment schedule. But every step of the way, she’s there with you, helping you get to your ultimate goal. This is called excellent advice. (By the way, does this sound like what we do with our clients?)

Similarly, if you went to an attorney, he can’t tell you how the case is going to end up or how the judge or jury will rule. That would be perfect advice. What an expert attorney can do is explain your options. He might pick one or two he believes to be the best ones to pursue. He will then leave you to make the decision on which option you want to take. Once you decide, he will help put a plan together based on the facts at hand. He will help you get to the best possible resolution of the case. And along the way, he’ll make whatever changes are needed. This is excellent advice. (Again, does it sound similar to how we help our clients?)

Your role as a real estate professional is similar to the role of the doctor and lawyer. You can’t give buyers or sellers perfect advice because you don’t know what’s going to happen—you can’t know the future. However, you can give excellent advice based on the information and situation at hand. You can guide them through the process and help them make the necessary changes along the way. And that’s exactly what your clients want…and deserve!

Today’s post is an excerpt from our newest eGuide, Real Estate’s New Market Reality, which explains how the role of the real estate professional has changed and what you can do to successfully help more buyers and sellers. You can download the entire eGuide at www.NewMarketReality.com. – The KCM Crew