Want To Buy A Home In Massachusetts?

If you are thinking of buying a single family home, condominium or investment property in Massachusetts, here are a few tips to help you get started:

1. Take a few moments to discuss what you're looking for with your spouse or partner before you start setting up appointments to look at properties. Make a list of "must have" features together, then discuss other "would like, but can live without" features. After you've looked at a dozen or so properties, re-evaluate your criteria. Often priorities shift with time.
2. Have a realistic idea of how much you can afford before you start looking (most lenders will pre-qualify you for free). Not only will this save time, but will also avoid needless disappointment on everyone's part.
3. Don't sign a contract with an agent that locks you into looking with him or her, or guarantees them a commission even if you find the house yourself! Specify instead that a commission will be paid only if you buy a property shown to you by that agent. This enables you to look with others, and also at For-Sale-By-Owner properties, at your own convenience.
4. Don't bring an agent with you to look at FSBO properties, or bring them into the picture when it's time to draw up a contract, UNLESS you are willing to pay their commission through either a higher sales price, or out of your own pocket. Otherwise, you may risk losing the house. (note: Contact your local for sale by owner service for help if you aren't sure of the process)
5. If you find the house you want to buy before you've sold your home, and the seller is reluctant to sign a contract with you with the contingency that you sell your home first, you may draw up a contract that allows the seller to continue marketing and advertising the property yet gives you the "first right of refusal" should they receive another offer. This way you will be notified immediately if the seller has another offer, giving you an opportunity to re-offer if necessary. Another option is to put a non-refundable deposit on the property. This shows the sellers that you are serious about buying their property.
6. If you sell your house before finding a home you want to buy, be sure your sales contract is contingent upon you, the seller, finding suitable housing!! We have heard several stories of people frantic to find a home under pressure, and even having to rent after the closing, because they sold first. Remember, the seller is legally bound to sell once the contract is signed.
7. When presenting an offer, be courteous and respectful of the sellers. In general, avoid criticizing the property with statements like "we don't care for the new carpeting, and therefore will have to replace it". This will not justify a lower offer and may possibly insult the sellers, decreasing your chances of their accepting your offer.
8. If you feel the property may be overpriced, yet the seller refuses a lower offer: Make your offer contingent upon the property appraising for the selling price or higher.
9. Request that you be permitted to walk-through the house (shortly before closing) after the furniture is removed to make sure that some of the home's faults weren't covered with furniture, rugs, or wall coverings. It is far easier to request compensation for necessary repair work before the house is sold than afterwards.
10. Request that the seller complete a property disclosure or disclaimer form (not required when selling "by owner" in Massachusetts) before you make an offer. Agent-listed properties carry no guarantees, and it is the seller who is legally bound to be truthful in reporting the condition of the property. We recommend that any major deficiencies in the home are reported to the buyer regardless of the form being utilized. Also, be aware that in some states the disclosure/disclaimer form is not required and that real estate documents will vary from state to state.
11. Make the time frame of your offer short (24 hours or less) so the seller has less time to "shop the bid" among other interested parties, or to accept another offer. Also, don't make the deadline time at midnight unless you usually are awake at that time!
12. If you don't know much about building construction, don't worry. Simply make your offer contingent upon the property passing a professional home inspection. This is also an excellent way to become more familiar with the upkeep needs of your future home.
13. Put everything in writing. Your sales contract should spell out whether the washer and dryer stay, etc.

Good luck and happy house hunting!

Appraisal or Market Analysis - It Can Mean The Difference Between Selling and NOT Selling

In 2002, Massachusetts 4 Sale By Owner first introduced Western Mass consumers to the idea of for-sale-by-owner (FSBO) real estate and have since helped hundreds of buyers and sellers each year learn how to navigate the world of real estate without agent representation.

Although most serious home sellers come to us first for advice, occasionally we get frantic calls from well intentioned sellers who felt confident to test the water without us. We understand the DIY mentality and it's absolutely OK. Unfortunately, by the time they call us, their efforts are faltering and are about to throw in the towel. In order to know if we can help them, I need to know where the marketing efforts have failed, so I begin asking questions.

One of the first questions I ask, even before I've seen a picture of the home is "How did you determine your asking price?" The answer I am often given is . . ."I had an appraisal." I press harder, "What kind of an appraisal did you have?", I ask. The seller answers, "I had not one, but two real estate agent appraisals."

Aha, we now know the problem . . .

A real estate agent does not provide an appraisal. An agent offers a Comparable Market Analysis (CMA), which is a sales tool. It can be helpful, but not definitive in your quest to set a competitive asking price. The analysis can be flawed by the agent's experience (or lack of), thedesire to obtain a listing, the worry over other agent competition, and other factors.

A Uniform Standard Appraisal, as performed by a licensed residential real estate appraiser, contains all the information that an agent supplies, and more. Bear in mind that an agent ONLY includes MLS data, so every report is flawed. An appraiser looks at ALL data (MLS, for sale by owner, foreclosures, etc). The appraiser also measures the property accurately. An agent uses data supplied by public information which is often inaccurate and outdated. An appraiser utilizes a standard "credit/debit" formula to more accurately compare properties side by side. An agent's "opinion of value" is never used by a mortgage lender to determine whether a buyer can obtain a loan for your property. They rely on the independent appraiser's report only. Finally, an appraiser ONLY uses properties that have actually SOLD as true comparables. An agent often sprinkles several properties that are currently on the market (often with their own agency) to inflate the seller's opinion of their property's worth. Until the property sells, the asking price is only wishful thinking on the seller's part.

Ask yourself this. . . .

If real estate agents are so good at what they do and understand how to price your house for the current market better than you, why are there so many overpriced homes for sale with agent signs in their front yard? Perhaps, the answer is that the agent is more concerned about gaining a listing at YOUR expense.

Our recommendations . . . .

If you want to have an agent give you a market analysis, that's fine. Just make sure that the agent leaves ALL the paperwork with you for you to examine closely without being under pressure. Never sign a listing agreement on the spot without weighing this information carefully and looking at your other options. Be realistic about your competition and don't overprice in a buyer's market.

FSBO Publishers Network Launches Real Estate Blogs

FSBO Publishers Network is the nation's largest organization of independent for-sale-by-owner services, of which we are a member. As a regional publisher of both a print magazine ("A Buyer's Guide To 4 Sale By Owner & Builder"), multiple websites (MA4salebyowner.com, HomesByOwner.com, MAbuilder.com) and several blogs, we are dedicated to providing the best services possible for consumers here in Western Massachusetts. Being part of a national organization gives us a unique perspective on local real estate markets in other areas, and provides us with an opportunity to explore new innovations and opportunities that will help our customers.

Recently, FSBO Publishers Network launched two new real estate blogs with the purpose of providing consumers and member publishers an opportunity to share information, discuss topics and become a platform where we can continue to promote innovations within the real estate industry that will help consumers save money and regain control over the sales process.

We invite you to take a look at both blogs, share your thoughts and be sure to subscribe to each in your favorite RSS Reader.

FSBO Publishers Official Blog

Real Estate By Owner - A Consumer Forum

What's So Great About Western Massachusetts?

I have lived in New England my whole life and for the past twenty years, Western Massachusetts has been my home. It's amazing how many people think that living in Massachusetts means living in Boston, or its many suburbs. Once, while traveling through Idaho, a woman saw my Mass license plate and asked, "Massachusetts....that's prairie, right?" Perhaps she was referring to the rolling hills! So much for geography class.

Here is just some of the reasons why I love living on "the other side" of Massachusetts:

1. Lifestyle: Small towns, slower pace, fresh air, town meetings
   
2. Easy commute: From my home I can walk to work, the corner store (yes, we really do have one), the bike path, the library, the elementary and the middle school
3. Location: In ten minutes I can be on the highway, headed for the beach (1.5 hrs), Boston (2 hrs.), VT ski country (1.5 hours) or NYC (2 hours).
4. Culture: Where do you think everyone in Boston wants to go to enjoy themselves? BSO summers in the Berkshires for a reason, folks.
   
5. Education: The Five College community - Amherst, U-Mass, Hampshire, Mt. Holyoke and Smith....no need for name dropping here!
6. Recreation: Too many options to think of - skiing, biking, kayaking, camping, horseback riding - a healthy lifestyle.

If you're tired of sitting in traffic, when you could be enjoying life, consider moving to Western Mass. Property values have held up well here during the recent real estate downturn. Buy in Western Mass and make the commute to the city only when you have to. Isn't that what FedX was meant for?

More Home - Less Money - Tips For Massachusetts Home Buyers

In many parts of the country property values have tumbled in recent months. Western Massachusetts, however, seems to be holding its own. Buyers who have been waiting patiently, hoping for prices to drop more, may be disappointed. Recent reductions in mortgage interest rates mark the start of the spring real estate season and will be welcomed by many potential home buyers. With prices remaining stable, how can buyers s-t-r-e-t-c-h their buying power further? Here are a few helpful ideas:

• Cast a wider net. Rather than looking for a home in a specific city or town, think about looking within a radius of your work. Pinpoint your place of employment on a map and draw a radius that represents a reasonable commuting distance you are willing to consider. You may be surprised that your area includes additional living opportunities. You can even search for real estate online using a radius option. Often you will find a lower cost community. If schools are a major reason for choosing a community, you may want to weigh other educational opportunities available in Massachusetts - including public, private, regional or charter schools. Many communities participate in school choice, where students in one district may attend school in another district if space is available.
  
• Make it pay. Consider purchasing a two-family home, letting your tenant help pay your mortgage. In the future you can keep the home as a rental property or sell it in favor of purchasing a single family residence. Be sure to consult with your attorney and/or CPA about the pros and cons of becoming a Massachusetts landlord.
  
• Under-size. Just how big a home do you really need right now? There are advantages to looking at smaller homes with good "add on" potential. Look at neighborhoods where ranches are becoming two-story homes, etc. If you haven't had a chance to read Sarah Susanka's "The Not So Big House", try to do so. It may change the way you think about what a house needs to be in order to be "home".

One of the smartest ways buyers can be assured of getting the most home for the money is to purchase directly from the owner or builder. Remember, agents commissions are added onto the sellers asking price, so buyers lose by paying more for the property.

A Buyer's Guide To 4 Sale By Owner & Builder in Western Massachusetts

We are very excited to announce our BRAND NEW publication, available for the Spring '08 real estate season. "A Buyer's Guide To 4 Sale By Owner & Builder" is a 'must have' guide for anyone thinking about relocating to Western Massachusetts, or for local buyers who are looking for a new home in their own back yard.

This comprehensive buyer handbook will acquaint consumers with information specific to Massachusetts, an area map and localisms, articles on a variety of subjects important to the home buying process, plus helpful tips about our ground-breaking laws affecting new residents to our area. We will feature a few of our newest properties on the Internet, plus help buyers find new developments, retirement housing and local resources.

Consumers will find the guide locally in over 250 high-traffic locations throughout the greater Pioneer Valley and it will be available to view and download in its entirety directly from our website, 24/7. Guides will also be available as a free subscription by mail to out of area buyers.

We welcome inquiries from builders & developers, buyer's agents and others who are involved in the local housing market as we prepare our first issue for press. Contact us for more information, including a "sneak preview" of the premier issue.

Who Is Looking To Buy A Home In Western Mass?

It certainly feels good to see traffic on MA4salebyowner.com is on the upswing. The holidays are over, and three major snow storms are behind us. A recent Daily Hampshire Gazette article pointed to our local real estate market here in the Pioneer Valley as being stable, and that we've been pretty lucky, compared to the eastern end of the state. It as helped that our major industries center around higher education and health care, not the technology sector.

As buyers begin to come out, sellers need to join the party. April is generally the start of the season, but this year we predict an earlier start due to the length of time it may take to sell. Of course, real estate agents are poised to fight for new listings and do their best to dissuade sellers from striking out on their own. One of the talking points agents use is to tell sellers that they can't get wide exposure when selling by owner. We're here to say they're wrong. Just yesterday we tracked our website visitors for about an hour and wrote down where they came from. Take heed -- Realtor Association of Pioneer Valley!

Here's a sampling of where recent buyers are coming from:

Haverill, MA; Florence, SC; New Bedford, MA; Worcester, MA; Springfield, MA; Boston, MA; Reston, VA; Natick, MA; Northampton, MA; North Andover, MA; Phoenix, AZ; New Bedford, MA; Longmeadow, MA; Frederick, MD; San Diego, CA; Buffalo, NY; Goffstown, NH; Atlanta, GA; Chicopee, MA; and Burlington, VT

It's no accident that buyers find our website. We work hard to improve our search engine optimization so that our home sellers reach buyers naturally.