2008 is A Great Time to Buy

Recession fears, or realizations, are everywhere here in the beginning of 2008, and most homeowners and soon-to-be homeowners are hesitant, if not scared, of the real estate market. Analysts have continued to use big words and intimidating figures to back up their articles' titles, begging them to be read. Well, here's a couple of statistics that can help shed an optimistic light on the current market, and perhaps stimulate buyers to regain their confidence.

The median price for US homes fell 1.4% in 2007, marking the first decline since they first started recording the data back in 1968. The real estate market ballooned a little out of control for several years, and now seller's are lowering their expectations, making listing prices more realistic. Read more here

Additionally, after the Federal Reserve lowered the benchmark overnight lending rate, mortgage rates responded by falling to the lowest its been since 2004. Read more here

So, what does this all mean for buyers? It means buyers can now borrow money at a lower rate, and they can buy homes that are accurately priced. 2008 is a great time to buy!

Optimistic Takeaways from 2007

There have recently been several terrific entries in Boston.com's Real Estate Now blog. Although the author also published a counterpart piece, there's a great entry that draws attention to many positive aspects of the current and recent real estate market. The author notes that price reductions have presented an excellent opportunity for buyer's with good credit whom were previously shut out of the market, as well as for trade-up buyers. Additionaly, the disappearance of subprime lending has put a stop to predatory lending, suggesting buyer's need not be as skeptical of the mortgage industry. Read the full article here, The Best of 2007: a buyer's agent view.

Newly Completed Harborview Condos takes Drastic Turn - Now Rentals

Harborview on the Navy Yard has been under construction for the past two years or so. The 224-unit, mixed-use condo development, also includes nearly 26,000 square-feet of retail space, and was just completed within the past few weeks, on the Charlestown waterfront. The development's sales center has been welcoming potential buyers, and brokers, for about the past 18 months, and sales of the residences seemed to going pretty steadily. However one of the main partners in the project, Trammell Crow Residential, recently announced that the residential development was now going to be "repositioned for sale as an upscale mixed-use rental development."

In an article in the most recent issue of Banker and Tradesman, the principal of Trammell Crow Residential, Joseph Torg, explained "with mortgage markets tightening nationwide and local housing sales continuing their slowdown, we determined that the best direction for the project is to reposition the property as an upscale rental building."

It's unfortunate that developers couldn't lower the listing prices on the residences to promote quicker sales, and keep the waterfront development as residential ownership. However it's hard to disagree with the present increase in rental rates, and the growing market concerns, that the developers are trying to take advantage of potential buyers in the market who have decided to rent property for a while until, in their mind, the condo and mortgage markets become more attractive. There has been no word, as of yet, as to when the development will begin to accept rental applications from prospective tenants.

Flat Fee MLS in Massachusetts

More and more homeowners these days are choosing to sell their properties without the representation of a seller's broker. With any major decision, there are both pros and cons that need to be considered and worked out. A seller's broker can offer valuable advice, provide marketing services, and tap into their own real estate network. For this array of support, they are compensated with a commission, generally between 2% and 3% of the closing price. However, if a homeowner decides to sell their property on their own, then they are able to retain this amount of money for themselves. Until recently, this option was less attractive then using a seller's broker, only because the broker could offer services that the homeowner couldn't attain by themselves.

Today, homeowners now have access to using the Multiple Listing Service, a tool essential to real estate professionals. Homeowners can submit their properties as an Entry Only Listing through a real estate brokerage. It's termed "Entry Only Listing" because that is the only duty of the brokerage, to enter the property into the MLS. The rest of the duties associated with the marketing and selling of the property are the responsibility of the homeowner. The cost of this service is generally only a couple of hundred dollars. It's no wonder many homeowners are venturing down this path when you compare this amount to the thousands, if not tens of thousands, of dollars a homeowner must relinquish for a seller's commission.

Boston Condo Group offers their own Entry Only Listing Service, assisting sellers by placing their properties on the Multiple Listing Service. For more information, please click the following link - Massachusetts Flat Fee MLS

Costly Mistakes Buyers are Making In Today's Market

Buying a home is a very important decision in one's life. When purchasing a home many consider (amongst other things) money (financing), location, value and "vital features" the buyer's home must have. However, it is during this buying phase that many people make the most common mistakes that not only lead to buyer's remorse but can easily be avoided.

Many buyers go into the purchasing process with the belief that finding a home should take a lengthy amount of time. This is not the case. Sometimes buyers may find their "dream home" within the first few weeks of searching (some even within the first week!) yet pass over this home and continue to search. The reason for this is because many people often think that more "time and effort" is equivalent to how perfect the home will be. While purchasing a home is a major investment in the buyer’s life, the buyer if properly represented by their broker/agent should trust their agent's advice. Brokers/agents know what kinds of properties exist and which do not, what is available and what is not. Passing up a perfectly great home because it seemed "too easy" can be a bad decision for both the buyer and the agent. Your broker/agent is there to serve you and will advise you to help you make the best decisions possible. Buyers often feel uneasy about purchasing one of the first homes they have found, however with the proper guidance from your broker/agent this just might be the perfect home for you.

While purchasing a home is a large financial investment, buyers should not hold out on price if the unit they desire is their "dream home." When buying a home many buyers often think that they are spending too much money. However, if your reputable broker/agent and you do the proper research you may find the home is correctly priced. Backing out of a deal because of a small price difference can be a big mistake. Many buyers will always have a hindsight bias, where they believe they should have purchased in earlier years when "prices were more reasonable." However, in three years you may be saying the same thing about the unit you had passed up.

Another mistake buyers often make, is having the belief that buying a home is strictly for financial reasons only. If you believe the market is "unstable" and this is just a financial investment (like investment banking) then it will never be "the right time" to purchase a home. However, see purchasing a home as more of a way to meet ones goals, move your life forward, and possibly even a new adventure.

After making a large investment (such as purchasing a home) buyers often try to cut costs by not hiring a lawyer. Lawyers can not only help look over the fine print but make the buyer feel more secure with their purchasing decision. They can also take care of any last minute errors. Therefore, hiring a real estate attorney whose fees remain constant despite the price of the home you are purchasing is the best route to go.

Lastly, when searching for one's "dream home," make sure to really investigate the surrounding location. Many open houses are often held during prime time to make the residence look the best. You want to be happy with your new home 24 hours a day, seven days a week. Not seven hours a day three days a week. Come check out the area at night, the weekends, and even during rush hour. This way you know the home is exactly what you thought you were purchasing. And with an insightful broker/agent who may have even done the research for you, you are sure to be happy with your new residence.