ARE YOU PLANNING ON BUYING YOUR FIRST HOME?

If so, and you don’t have piles of money, you should be aware of changes in the lending guidelines and policies of the Federal Housing Administration (FHA), Fanny Mae and Freddie Mac.  These groups help to make homes more affordable and can now make it less costly for first-time buyers! 

One major change is regarding mortgage insurance.  When a buyer borrows more than 80% most lenders will require mortgage insurance that will cover the loan until it is paid down to the 80% level.  FHA-backed loans have not reduced the premiums on this mortgage insurance to 0.85.  This is an estimated savings (for the average homebuyer) of $900 per year and can directly affect the buyer’s ability to purchase as the mortgage insurance premium is calculated into the long-term debt ratios used for mortgage approval.

Fannie Mae and Freddie Mac have also loosened down payment guidelines, allowing some prospective homebuyers to be approved with a down payment as low as 3%.  These are huge incentives to prospective first-time homebuyers, a class of buyers that has seen a marked decrease in the last few years.  Historically first-time homebuyers make up about 40% of the home buying public.  Recently this number has dipped as low as 31%, a huge impact on an industry struggling to recover.

Here are some points to remember when considering a home loan backed by Fannie Mae, Freddie Mac or guaranteed by the FAH:

1.     The 0.85 mortgage insurance premium is still higher than what would be charged by a conventional lender.

2.     Not all borrowers will qualify for a 3% down payment loan.  Prospective borrowers must have enough income to afford the monthly payments (that seems a no-brainer).  The home must be the buyers’ primary residents.

3.     Some of these programs require that the buyer earn less than the median income (not sure if this is location specific or not).

This last item may eliminate some borrowers immediately as their income may be too great, but typical for their area, or, it would not be enough to carry a mortgage on a house in that locale, due to home prices.

Another thing to keep in mind is that traditional lending institutions may have more stringent loan requirements.  This is may have been triggered by the government’s imposition of a “loan buyback” program, where the lender may be required to take back the servicing of the loan because of some snafu in the paperwork, etc.   Regulators are looking into ways to make this scenario easier for banks to navigate, which may ease lending requirements.  Stay tuned.

Remember the lifetime of the loan in considering its final cost.  A longer loan at a lower rate will cost you more in the end, provided you stay in the home for more than the national 3-5 year average. 

In the end, it is still a better scenario for buyers to bring more money to the table.  Buying a home not only provides a place to live, but an opportunity to create equity over time and long-term security.  Mortgage rates on all fronts are expected to continue to be in the lowest ranges in history but home prices are anticipated to rise.  If you are considering your first-time home purchase, now is the time.  Real Estate continues to be one of your best investments.  And you can sleep in it!

Massachusetts Homes Sales Steady Through September 2014 and on Martha's Vineyard too

Several groups publish real estate sales data.
On a national level, the Standard & Poor's/Case-Shiller Index reports on residential sales in 20 cities across the country.  They report that, through the end of September, prices rose 5.6 percent in August, down from the same period last year, which showed a double-digit price increase trend.  This slowdown has been attributed to several factors, but primarily to a return to a slow and steady growth pattern in the economy and therefore in housing as well.
On a more local level, the Massachusetts Association of Realtors and The Warren Group, report that sales in Massachusetts have dropped a bit in September from levels seen in September 2013, while median home prices have stabilized.  The two agencies differ in their actual numbers/percentages, but both report this slowdown in sales and leveling off of the median home prices in Massachusetts.
On Martha's Vineyard, sales for the period January - September 2014 total 260 for single family homes, with a median price point of $585,500 and an average of 225 days on the market.  The same period in 2013 had sales of single family homes totaling 263 with a median price point of $600,000 and 289 days on the market.
Our market seems to be following the state and national trends.
Another factor that we have often seen influencing sales is the election cycle.  With several major state and senatorial seats in contest, many potential buyers and sellers adopt a "wait and see" attitude when it comes to their real estate interests.
Other factors that can impact sales include the international turmoil and accompanying threats to the USA and the spread of the Ebola virus.
Interest rates remain stable and there are some qualification and oversight changes in the works for lending institutions that will take effect in 2015, so we can expect some improvements in the lending field for buyers.  That, and the elections and incoming representatives (whoever they may be), should spur new activity in the New Year.
Plan now to make your real estate ownership dreams a reality.  Call a professional.

7 Tips for Home Sellers Regarding Energy!

From "Ready. Set. Sell. How Energy Efficiency Can Help Sell Your Home"

1. Get a home energy evaluation to spot ways to make your house cooler in summer and warmer in winter.  It will give you a plan for energy efficiency, an attractive selling point.
2. Swap in high-efficiency, compact fluorescent (CFL) light bulbs that will cut your utility bills immediately.
3. Improve insulation which can trim up to 20% off heating and cooling bills, according to Energy Star.
4. Install low-flow faucets and shower heads and save between 25% - 60% on water.
5. Use programmable thermostats to help cut heating and cooling costs by 5% - 15%.  Check out Nest thermostats.
6. Consider investing in solar power to save up to 25% on electric bills and add $20,000 to the value of a home for each $1,000 in annual energy savings.  Massachusetts currently offers some tax incentives to install solar panels.
7. Document your improvements and energy savings so real estate agents can give that info to buyers.

Check out the website NextStepLiving.com for more information.

This article was in the Bay State Realtor magazine, a benefit of being a Realtor.  Hire a professional.

Bottom Line - The Fed study found...

              .....that homeownership is still a great way for a family to build wealth in America.

Buying A Vacation Home? Here Are 6 Important Considerations

Whether your purchase is for personal or investment use, here are some key criteria to consider when assessing your choices.

1. Keep costs within your budget.  Get pre-qualified for a loan before looking for that dream vacation home - unless you are paying cash.  Consider these ongoing costs that come with a second home and how much ongoing income you will need to  meet these obligations.  These are costs incurred whether you rent the home or not.

• Monthly mortgage
• Real Estate Taxes.
• Municipal assessments
• Maintenance
• Homeowners insurance
• Flood insurance (see my earlier article on this!)
• Furnishings
• Caretaker
• Emergency fund
• Travel costs for you to visit the property

2.  How often are you going to use it?  Is it a 2 hour drive, a one hour ferry ride or a combination that will make it difficult to arrange for that amount of time.  Are family and friends a consideration in deciding on a location?  If so, where are they coming from?  Is the house suitable for use in the "shoulder" seasons?

3.  Let's talk location.  If the beach is important to you - the house you select should be close enough that you can get their.  Additionally, if that is the paramount reason that someone would want to rent your property, make sure it fills that bill.  Beach is not the only consideration.  Think about transportation to and from the house, to town, to other recreational activities.  Don't buy a house out in the woods, far from everything, unless you are using it to write the next great American novel and need the solitude!

4.  Maintenance.  The lawn will still need to be mowed even if you are not here.  And, do you want to spend your vacation time mowing grass?  Painting trim?  Winterization?  Some areas have homeowner associations who will let you know if you are not keeping your property up to par, but you can't depend on that - you'll want/need a caretaker.  Many areas of vacation homes have a proliferation of property managers.  Get recommendations though, because the last thing you want is the call that water is pouring out of the windows of your vacation home!

5.  Income Potential.  Find out about the rental market.  What is the vacancy rate?  What will it cost you to list your property on one of those vacation rental sites?  Can you handle the calls and money or should you hire a local professional?  If so, what will they charge?  A local rental agency can give a realistic price range/date range for the rental of your property and provide some other useful services, such as meeting and greeting your tenants and handing over and collecting keys.  All of this effects your bottom line, so don't be too easily swayed by the weekly rental number and remember, you are opening your home to people you don't know.  Be prepared.

6. Selling Out or Trading Up.  A second/vacation home is not usually a forever home, so gaze into your crystal ball and think about where you want to be in 5 years or 10 or whatever number and gauge how this property will fit into that plan.  Will the property hold its value or are the kids hoping you'll pass it along to them.  And consider the tax consequences.  There could be capital gains taxes, depreciation recapture, etc.  You need to factor this into the decision to buy that second home.

Your real estate professional is here to assist you in making this important decision and in answering these important considerations.  A summer home can be yours - happily!

Disclose Encroachment

Disclose Encroachment

How does a listing agent know when to disclose property line problems?

MAY 2014 | BY BRUCE AYDT

Q: A neighbor’s fence cuts into the seller’s lot. As the listing agent, should I disclose that?

A: Article 2 of the Code of Ethics requires REALTORS® to avoid “exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. REALTORS® shall not, however, be obligated to discover latent defects in the property.”

The Code of Ethics and Arbitration Manual discusses “pertinent” facts: “Absent a legal prohibition, any material fact that could affect a reasonable purchaser’s decision to purchase, or the price that a purchaser might pay, should be disclosed . . . if known by the REALTOR®.”

Included in the concept of pertinent facts is a fact that may affect “the potential purchaser’s ability to resell the property at a future date.” The encroachment of the neighbor’s fence onto the property of the listing clearly may affect what a reasonable buyer may decide to purchase in that the title to the property has some “flaw” or “cloud.” The encroachment may also affect the buyer’s ability to sell the property in the future unless the encroachment is resolved.

Unless the seller can work with the neighbor to resolve the problem, that encroachment is likely a pertinent fact that should be disclosed to a prospective buyer. Most likely this sort of encroachment would also be required to be disclosed on a seller’s disclosure statement, whether the disclosure statement is required by law or by practice. Even if the encroachment is considered “minor,” it may still be considered pertinent by a hearing panel in an ethics complaint. As in any question of disclosure, the best practice to stay within the Code is “when in doubt, disclose.”

I've had this question raised many times, regarding several different topics, and it always comes back to the question "If it would impact a buyer's decision to purchase the property, it should be disclosed."  And the Golden Rule with a twist - wouldn't you want to know if you were the buyer?

Your Secret Credit Score

So, you’ve been diligent; paying your bills on time; checking your Free Credit Score periodically.  Everything looks great and you’re ready to buy a house.  You’re confident and you make an offer on the home of your dreams.  You meet with your mortgage broker and fill out all the paperwork to apply for that mortgage, confident that your good credit score is going to put you in that house at a great rate.

Surprise!

Your mortgage broker sends you a commitment letter with terms you don’t understand.  How could they be asking you for more information, and offering you a higher rate than you expected?

You have a secret credit score.

That free credit report you get so easily is not the credit report that your mortgage lender will see.  And now you have only a short period of time to “fix it”, if you can! 

How to avoid this?  Get your mortgage broker (or friendly banker, if you’re early in the purchase process) to run your credit and review it with you.  You’ll see things there that you may have time to dispute and correct.  The credit bureaus have a process for disputing charges and things like duplicate accounts, mixed identities, etc., but you’re going to have to direct that process.  There was a recent news article about this process and the lax attention and zero responsibility that the credit bureaus have for correcting bad information on you.

Also, if your credit report is “pulled” too many times, it lowers your score!

Unfair - yes!  So, be proactive and protective of your credit health.  Review your real credit score/report and get on with making your real estate dreams a reality!

Lead Paint Horror Stories

I just heard a horror story about lead paint where the seller was a municipality and the buyer had a 4 year old son.  The municipality assured the buyer that there was no lead paint in the 1890 structure.  Two years later, the son tested positive for lead paint levels above normal!  

The following answers some common questions about lead paint.

It’s Always A Good Time To Review the Massachusetts Lead Paint Law Disclosure Requirements

By Rich Vetstein on May 08, 2014 05:00 pm

Fraught with liability and danger, the Massachusetts Lead Paint Law is always a hot topic for Massachusetts residential real estate professionals. Fortunately for us, my colleague Attorney Marc Canner recently gave a seminar on the Lead Paint Law in which he prepared a very helpful Frequently Asked Questions (FAQ) with Practice Pointers which he’s graciously allowed me to share here.

The overriding policy of the Mass. Lead Paint Law is to encourage full disclosure of all lead paint related issues and give buyers the opportunity to test for lead paint before they purchase a home with lead paint. Unlike rental properties, however, there is no obligation on the seller to de-lead prior to a private sale. But common sense dictates that a lead-free house may be more valuable and marketable, and this is particularly true for multi-family properties where tenants with children under six years of age may in any event trigger the de-leading requirements of the law.

Further, penalties for non-compliance with the disclosure requirements are quite stiff. Sellers and real estate agents that do not meet the requirements can face a civil penalty of up to $1,000 under state law and a civil penalty of up to $10,000 and possible criminal sanctions under federal law for each violation. In addition, a real estate agent who does not meet requirements may be liable under the Massachusetts Consumer Protection Act, which provides up to triple damages.

What lead paint disclosures does a listing agent have to provide?


Whenever an owner of a home built before 1978 sells, the listing agent must provide the (1) the “Property Transfer Notification Certification”, and (2) all 10 pages of the Department of Public Health’s “Childhood Lead Poisoning Prevention Program ‘CLPPP’ Property Transfer Lead Paint Notification.” Most agents only use the one page form, and that’s a “no-no.”

Practice tip: It is a good idea to combine the two forms as one document in DotLoop (or other transactional software system) or on the MLS when the listing agent is providing these to the Buyer.

Can the Buyer sign the Property Transfer Notification Certification form before the Seller?


No. It is invalid. The Property Transfer Notification Certification (“Property Transfer Form”) must be completed and signed by the Seller before the Buyer can sign. The Buyer’s signature acknowledges they are in receipt of the disclosure. Thus, the Buyer cannot be in receipt of the disclosure until the Seller first completes the form.

Practice tip: If the listing agent is slow to send the Property Transfer Form, then the buyer’s agent should document the requests by email. In addition, the buyer’s agent should email the listing agent’s broker to request the timely receipt of the Property Transfer Form.

What disclosures and acknowledgements have to be completed on the Property Transfer Form?


All disclosures and acknowledgements have to be accurately completed, including the Seller’s Disclosure, the Purchaser’s or Lessee Purchaser’s Acknowledgement and the Agent’s Acknowledgement. Agents should be aware that HUD and the EPA have audited broker’s files in the past and have at times found them deficient from a compliance standpoint. Thus, it is critical to accurately fill out the form.

Practice tip: Make sure that the Property Transfer Form includes the property address. The older form, “CLPPP form 94-3 dated 6/30/94” does not include a line for the address. Both agents working on the transaction should sign the form.

Does a listing agent have to provide a Property Transfer Form for a property built after 1978?


No. The lead paint law only applies to homes built after 1978. Therefore, testing for lead-based paint is not required.

Practice tip: If the listing agent provides a Property Transfer Form for a home built after 1978, neither the buyer nor the buyer’s agent has to sign the form.

Does a Seller have to accept an offer from a Buyer who is requesting lead paint testing?


A property owner or real estate agent cannot sidestep the lead paint law simply by refusing to sell or rent to families with young children. The purpose of the lead paint law it to protect the health of children and pregnant women. An owner cannot refuse to sell or refuse to renew the lease of a pregnant woman or a family with young children just because a property may contain lead hazards that they do not want to spend the money to remove. Any of these acts is a violation of the Lead Law, the Consumer Protection Act, and various Massachusetts anti-discrimination statutes that can have serious penalties for a property owner or real estate agent. A case in point: a Boston area landlord was recently hit with a $75,000 penalty by the Mass. Attorney General’s office for lead paint violations.

What is required to obtain a Certificate of Compliance?


Owners of homes built before 1978 where children under six live should have the property inspected by a licensed lead inspector. Typically, an inspector will look to remove peeling, chipping or flaking paint. A full list of surfaces to be deleaded is available in the CLPPP form.

Practice tip: To contact a licensed lead inspector, click this link.

Does a listing agent need to disclose a Letter of Interim Control?

Yes. A Letter of Interim Control is only valid for one year. Thus, if a home built before 1978 that has a Letter of Interim control but does not have a Certificate of Compliance, then the agent needs to Disclose the Interim Letter of Control and likely engage a professional to determine what work is needed to bring the property into compliance.

What is the contractors’ role in the lead removal process on home improvement projects?


In a previous article, I noted that new regulations went into effect in 2010 that cover paid renovators who work in pre-1978 housing and child-occupied facilities, including renovation contractors, maintenance workers in multi-family homes, painters and other specialty trades. These regulations provide that most home improvement projects on homes built before 1978 require certified lead paint removal project contractors to follow strict lead paint removal precautions. Nothing in these new rules requires owners to evaluate existing properties for lead or to have existing lead removed.

Are there lead paint removal tax credits and loans available?


There are a number of lead paint removal no and low cost loans available. MassHousing, for example, has a “Get the Lead Out” Lead Paint Removal loan program for income eligible owners or tenants.

In addition, Massachusetts has a tax credit of up to $1,500 for each unit deleaded.

If an agent has a buyer purchasing a home built before 1978, should the agent request lead removal be done before the closing or after the closing?


If making these strategic decisions, we recommend that you consult a real estate attorney in order to be in full compliance with lead paint laws.

At closing, should Sellers sign the form in the closing package that says the Seller agrees to remove all known lead paint?


The form typically contained in most lender closing packages states that the Buyer agrees to indemnify and hold the lender harmless in the event of any non-compliance with lead paint laws.

___________________________

Richard Vetstein and Marc Canner are Massachusetts real estate attorneys. Rich can be reached at rvetstein@vetsteinlawgroup.com and Marc at mcanner@cannerlaw.com

Open House at 51 Old Purchase, Edgartown on April 26, 2014

We will be hosting an Open House to the public on Saturday, April 26, 2014 from 11:00 - 2:00.  This 3 bedroom, 2 bath home has been carefully maintained and is located in a convenient and popular area.  Come by or call 508-939-0206 to arrange a private viewing.

Flood Insurance and Its Impact on Property Values

The Biggert-Waters Act that, when implemented, will redraw the flood plain maps nation-wide and allow insurers to recoup losses suffered from major storms such as Hurricane Sandy, has been modified.  President Obama has signed the HFIA A14 (Homeowner Flood Insurance Affordability Act, Article 14), which puts off some of the major impactful aspects for 4 years, requires a reexamination of the flood maps and contains the following highlights:

1. The sale of a property is not a trigger.
2. Annual premium increases will be limited to a minimum 5% increase and a maximum 18% increase on renewals.
3. Establishes a surcharge for existing policies.
4.  Maintains the Grandfathering rules currently in effect.
5.  Maintains the 25% premium increases for non-primary, business properties and severe repetitive loss properties.

What does this mean for you if you have a property in a flood zone?  Increased premiums.  Maybe not substantially, at first, but there is one other consideration that will realize a major impact - property value. 

Property value is comprised of a number of aspects - you’ve heard the term “location, location, location”.  But other factors such as condition also impact value.  In the past, having a beachfront property meant a higher price tag and you (the Buyer) expected to have higher expenses, such as real estate taxes, etc.  Enter the new flood insurance.  If your annual premium, in just the first year, is $50,000 for $250,000 of insurance (the maximum amount you can procure from the government - the rest must be purchased from private insurers), will this impact your decision to buy?  Will it impact how much you are willing to pay for this property?  Yes. 

If over the course of your ownership the premium cost to you will increase between 5 - 25% per year, this impacts the value of the house and what anyone would be willing to pay for it.  If its not your primary residence, its 25% increase every year!  And, remember, insurance policies are based on replacement cost - not what you paid - not what the assessors think its worth, but what it will cost to replace the structure. 

Here on Martha’s Vineyard, the cost per foot for new construction can vary widely, so your premium will also vary depending on that factor alone.  If you pay cash for your home, or have no mortgage, you do not have to purchase flood insurance.  Just remember that FEMA is not going to bail you out (literally) should a major event occur. 

Expect to see waterfront/flood zone properties decrease in value.  The municipalities where these properties stand will see their tax revenues decline as property owners file for abatements based on their inability to sell or because they purchased a property at a price far below the assessed value.  Almost a tsunami.

Home Sales Up in 3 of 4 Regions

Some industry gurus are questioning whether the housing momentum we saw early in 2013 began to dissipate later in the year. The more dramatic have claimed the housing sector is still on shaky ground. Others have blamed the slowdown in sales on a lack of consumer confidence or rising interest rates. The National Association of Realtors (NAR) just released their 2013 4th Quarter Housing Report. The report revealed that home sales numbers barely outperformed (an .08% increase) those in the 4th quarter of 2012. We believe the leveling in home sales is directly attributable to a lack of salable listing inventory; specifically in the West. Three of the four regions in the NAR report had an increase in sales: Northeast (+7.1%), Midwest (+2%) and South Regions (+3.6%). A big fall-off in sales occurred in the Western Region. The dramatic fall-off in the West (-8.1%) can be directly linked to a shortage of inventory in their hottest markets. If the decrease in sales was caused by an eroding of consumer confidence and/or rising interest rates, we believe each region would have seen similar decreases. Here on the Vineyard we are also experiencing a lack of inventory in most price ranges.  This may be relieved as the weather improves (please - let the weather improve!).  What homes are for sale are being looked at, even though its February.  Perhaps the buying public is tired of waiting - even for their second home, which is our primary market.

Proposed Revised Flood Plain Maps for Martha's Vineyard

I've just attended a seminar on new flood maps and how they will impact homeowners' insurance on Martha's Vineyard.  The new maps increase the area of potential impact and future real estate sales.  If a home is located within one of the zones and the buyer obtains a mortgage to purchase the property, the lending institution will require a certificate of elevation.  A licensed land surveyor and several other professionals are licensed to do these at varying costs, depending where GIS sites are located, etc.  This will create an added cost to the buyer/seller (not clear who should bear this cost yet).  This certificate can delay the closing process by weeks. The insurance premiums will continue to increase over the years - as approved by the government, which guarantees the first $250K in these policies.  The government (FEMA) and the insurance companies have depleted their reserves with the Hurricane Katrina and Sandy cleanups/payouts.  So, the government has agreed that they can: increase the flood plains and insurance rates.  

If there is no mortgage on the property, there is no requirement (as of today) for that homeowner to purchase flood insurance.  However, if you currently have flood insurance on your property, expect the rates to increase, perhaps substantially.

The new maps are still a year or so away from being finalized as each municipality has the right to review and revise, plus there is an appeal period.  For more information, please contact your insurance company.  They will be able to definitively identify how this

may impact you and your home.  

Do You Toss Those Bank Statement Inserts?

I usually do, but this time I decided to read it.  And I decided that it contained some useful information worth sharing.

First I learned that my bank account/checks are protected by something called EZShield!  Didn't know that and there's more.

Did you know?  More than 1.2 million fraudulent checks are written each day - more than 13 per second?!  (Office of the Comptroller of the Currency).  Scary!

So here are some helpful tips on protecting your money and your identity.

1. Monitor your accounts and monthly statements to ensure their accuracy.  Surprisingly, many people don't bother to balance their personal checkbooks!  I guess I'm weird that way.  Plus I look at my credit card statements carefully!

2. Each year, order copies of your credit report from each of the three major credit bureaus to verify their accuracy.  This one bit me a few years ago.  One of the credit bureaus combined my credit with the credit of someone whose name was similar (her credit wasn't as good).  Could have been a catastrophe for me as I was in the middle of buying a house, but I did get it worked out.

3. Thoroughly shred documents containing any personal information before disposing.  Think about what is on your bank statement - photocopies of your signature!  Never mind the account number, where you spend money, etc.

4. Never write your Personal Identification Number of your ATM/Debit card.  And never write your Social Security Number or credit card number on a check.  We live in a password-protected society and it's hard to remember all the user names and passwords, but this advice is critical, and I would add that you shouldn't sign up for more credit cards or add PINs to existing cards if you don't need them!

5. Remove passwords, PINs and identification cards containing your Social Security Number from your purse or wallet.  I'm removing mine today!  Yikes!

6. Never put outgoing mail that may contain checks or tax documents in your mailbox at home.  They know where you live!

7. At home, keep a checklist of the critical items stored in your wallet, purse, laptop and/or PDA.  I can tell you that I was scared breathless when I left my laptop at the airport!  (I was one of the lucky ones and did get it back - intact).

8.  Only order from internet sites that use secure methods of obtaining personal account or credit card information.  Duh!

9. Always log off after an online banking session.  No need to elaborate on this tip!

If you suspect your identity has been stolen/compromised:

1. Immediately file a report with your local police.
2. Call the Federal Trade Commission at 1-877-ID-THEFT.
3. Contact the three major credit bureaus to place a fraud alert on your record.
4. Maintain a record of each contact with authorities.

So, that's most of what was on that little piece of paper that was in with my bank statement.  My thanks!

Your Home Maintenance Checklist!

• 

  Is Your Home Older Than Its Years?

  Would you throw away $20,000? You are if you’re letting your home age faster than it should. Here’s a simple maintenance strategy to keep your home young. Read

Visit houselogic.com for more articles like this.

Copyright 2014 NATIONAL ASSOCIATION OF REALTORS®

Susan Cahoon, Principal and Broker of Homes on Martha’s Vineyard, was recently awarded the National Association of Realtors’ SRES designation.  SRES, which stands for Seniors Real Estate Specialist, is earned when a Realtor completes a training course and passes an examination.  SRES professionals are well-versed in the needs of our growing and aging population, from the “GI Generation” to the “Millennials”.  “Senior” now encompasses anyone over the age of 50!  “Our needs are often complex, and must address a range of services, while still considering the must-haves of younger family members”, said Susan. “That’s why getting this additional training and knowledge was so important to me.”  An SRES Realtor has access through a wide network of professionals who provide specialized from reverse mortgages to identifying appropriate adult or assisted-living communities. 

Susan has been a real estate professional since 1975, working in management, sales, property management and development in both residential and commercial real estate in the Suburban Boston and Cape Cod and Islands market.  She and her business partner, Tjark Aldeborgh, opened Homes on Martha’s Vineyard in 2011 at Post Office Square in Edgartown.  Homes on Martha’s Vineyard offers a full range of real estate services – sales, rentals and property management.  A full-time, year round business, their real estate agents are committed and caring; making sure that their customers are treated with unequaled service and professionalism.  Susan can be reached at 508-939-0206 or at Susan@HomesonMVY.com.

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.