Posts Tagged ‘market’

Perfect Pricing: the Sweet Spot for Bedford Listings

Figuring out the perfect pricing for any Bedford home for sale would be easier if there were a way to confirm past instances that hit that mark precisely. But that can’t be done. It’s the nature of the beast: it’s simply not possible. Even if a comparable Bedford home’s asking price resulted in being sold immediately at that exact amount, it only could have been priced perfectly. We can’t know that it wasn’t priced too low.

Even if the pricing on some Bedford home was quickly met and even exceeded—IOW, it resulted in a bidding —that might be evidence that it had been originally priced too low. Even that isn’t certain because the supposed underpricing resulted in a sale that was higher than expected, which is a perfect result. So perhaps that was the perfect pricing. You see the ambiguity.

So if you can’t ever determine what constitutes perfection in pricing—even after the books are closed on a given sale—then there is no way to guarantee a number will result in the maximum outcome. That’s why the whole issue of pricing any Bedford home is forever going to be an art (with as much science thrown in as possible). That being the case, getting the “science” part right is pretty important.

When it comes to pricing Bedford homes, it stands to reason that the mortgage lending industry would have put maximum effort into determining the most predictive residential real estate values: in other words, any Bedford home’s most realistic pricing. A week ago, one of the nation’s largest mortgage lenders offered their advice to homeowners. They acknowledged that while “we’re on an upward swing” in property values in general, it’s still important to get “a very accurate estimate of home value” to attract multiple buyers and avoid surprises during the sale process. Their three steps to discovering that:

Online search. Using the massive amount of data is a starting point for establishing a baseline.

Knowing the Market. It’s vital to measure your own house against those that are most similar to yours and on the market now. Visits to nearby open houses will offer the best opportunities to observe how similar homes are priced and marketed.

Calling in the pros. Ultimately, the do-it-yourself idea for home pricing seems to yield to what is available when the assistance of a real estate professional can be called upon—at least in the opinion of the other pros: the lenders. Rallying the in-depth data that current and historical comparable sales figures provide is persuasively the superior path, from their point of view.

Perfection in pricing might not be attainable—but if success in selling Bedford homes is a good stand-in, one way to achieve the desired end result is to seek out a professional with a proven track record like mine. Call me!

Joan Parcewski —CRS, MRP, CSHP, SRES, CBR, LMC, Realtor & Notary
978-376-3978   JParcewski@LAERRealty.com    OR    JParcewski@gmail.com
 
Licensed MA & NH    
Introductory Video  https://youtu.be/RrM4q17cjU0
Laer Realty PartnersJoan_Parcewski (1 of 1)

 

Housing Opportunity Comes in an Ugly Box

Another great article by guest blogger Kathy Vasel of Sage Bank.  And this goes out not only to the buyers who may be on the fence but also to the sellers.  The same opportunity is out there for you as you will not only be selling your house but more than likely will also be buying one.  This is the time to put your home on the market and make your dreams happen.     Joan Parcewski, Woods Real Estate     joan@woodsre.com    O 978-262-9665   c 978-376-3978

 

Is it really an opportunity now to invest in real estate when it seems to be declining?  Or did you miss the boat?  Those are great questions! You will see why I believe it is still a great investment!  It is not only one of the reasons below but all of them to create this tidal wave of opportunity.   Opportunity doesn’t come in a pretty box with a bow for you to open…it is ugly.  The stars have never been better aligned to buy real estate.  If you wait the opportunity window will close.

Where are the interest rates?  Rates are currently at the lowest level in history.  Let me say that again…rates are at the lowest they have been in history.  Talk to your parents who may have bought their first home with an 18% interest rate.  Do not think the rates will stay where they are forever.  We have been spoiled and this is not reality.  Do not get fooled.  Normally interest rates follow gold prices.  Have you seen the way gold is growing in value?  The Feds are holding rates down which is not normal.   Interest rates are affected by stocks and bonds.  When the stocks decline, bonds improve and interest rates will go up.  The Feds job is to bring inflation to turn the market around.  Inflation helps the government but hurts people.  I predict as a nation the Feds have to have inflation and rates will go up.   The only good thing about inflation for the people is that their home values increase.

Let’s talk about population…there are 310 million people who need a place to live.  They either live in a home, need to buy a home, or rent which will absorb the real estate on the market.  There are approximately 15 million college students.  The normal tracks of life are to graduate, get married, and you guessed it buy a home.   Once they graduate and start buying real estate will soar and bring up values.

Historically, appreciation for real estate is a 6% average.  A great example of appreciation is when Manhattan was sold in the year 1600 for beads and cloth which was equally valued for $24.  If that money was invested into the bank the mathematical calculation with compounded interest would be worth over $200 billion today.  My point is everything appreciates historically even though currently you may not be seeing that appreciation.  So let’s say real estate may only grow in value at 2% to use worst case scenario.   Let’s use this example, if you were to purchase a home today for $100,000 and used $10,000 for a down payment.  With a 2% appreciation growth in that house you gain a $2,000 value.  Since you invested $10,000 that equals a 20% return on your investment.  Are you getting that in your bank account right now?  Not to mention, you will have tax deductions when you buy real estate which increases your wealth and net worth.

Are we at the bottom you might ask?  If the rental for a single family home is at $1,400 per month and you can get a mortgage payment for the same $1,400 per month it is an indication that we are at the bottom.  Oh and by the way, this is absolutely attainable right now.  However, you may be still thinking you want to make sure you get the cheapest purchase price you possibly can and want to still hold out and wait.  Or you may be afraid of overpaying.  If you buy when the market is still going down you are buying right.  Some thoughts you may have are:  I don’t want to settle on this market, I want to buy the cheapest price, I ‘m afraid to over pay.  Fear can turn to greed which may cause you your self inflicted loss.  Do you remember grandparents telling you I wish I bought when?  Don’t let this happen to you.  When the market rebounds and home prices start increasing you will have missed the boat.  When prices increase again that means that it is gone…the market sailed by you.

Are you a follower or a leader?  So here is the real question to think about.  If you are a leader you will do your own research and determine it is without a doubt a remarkable time to buy real estate.  Most leaders make their money when they don’t follow the crowd.  When the crowd starts making purchases it is too late to buy at the lowest level, because everyone is doing it and this causes values to increase.  Remember history repeats itself and what goes down must come up. In 1992 there were many articles written that will make you think you are reading about today’s news.   Do you remember what happened after 1992?  Did we have a real estate boom?

Educate yourself, buy smart…Buy Now!  Go find out about the ugly box of opportunity waiting for you.

Kathy Vasel
Senior Mortgage Consultant
NMLS# 50076
sage bank

 

66 Concord Street, Suite M, Wilmington, MA 01887

 

 

Direct: 978.433.5322
Office: 781.995.3440
Mobile: 978.502.2998
Fax: 781.995.3423
kvasel@sagebank.com

 

Why Consumers Still Need An Agent – A Reprint from Trulia

While there is no question that today’s consumer is computer savvy and uses the internet to find homes and make decisions on how much a house is worth, these points from Trulia (an online website for home listings) points out the important role that the agent still plays in the home buying and selling process:

 

In a world where the Internet makes marketing miracles possible and  home data seems to flow free, every once in a while you’ll hear of  someone attempting to buy or sell without an agent.

While some stories speak of success, they also reveal the time,  expertise, and energy that go into a sale and the indisputable benefits  of having an agent.

Here are four ways a recent story of an Australian owner taking charge of his property marketing showed that marketing and managing a home is a time-consuming  undertaking and why now, more than ever, smart consumers need to use a  real estate agent. The story was that, thanks to social media, a  homeowner sold his Californian bungalow for $A1.05 million, $135,000  above the asking price.

1) Online marketing takes time and expertise

According to  various Down Under news sites, the owner set up a website, blog,  Twitter feed, YouTube videos, and a Picasa photo page for the home.

This  story illustrates two things – both that online marketing works, and  that it takes hours of effort. This home sold above its asking price as a  result of the interest generated by a professional’s online marketing  efforts — Opray is a professional online marketer who spent many hours  every day promoting his home through these multiple channels. Most sellers don’t have this level of expertise or the time to spend on the  effort.

 

2) A home’s information alone is not enough – every home lives in a market

Opray was quoted in the National Business Review, “I know my house better than any agent. Who better to sell the house than me?”

This  comment is typical of someone who doesn’t realize that knowing about a  home is just the first step. The real key to moving a listing is knowing  how that home fits into the market – and only a professional brings  that kind of focus and real experience.

 

3) Showings and connections sell homes

From TheMoveChannel.Com: “Opray aimed to bring as many buyers to the home’s blog as possible, giving them a personal insight into the house.””

To  sell his property, Opray had to develop a following and create  connections online. This is easy for agents, who are already tapped into  a network of people buying and selling.

 

4) Even the smartest use an agent for expertise

Even with all of Opray’s social media efforts to help sell his home on his own, in the end he hired an agent.

 

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