Why Investing in Real Estate Is Your Next Best Move

Investing in real estate is your next best move. Here’s why.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Investing in real estate may be your next best move.

Roughly 68% of all Americans are homeowners, so if you’re a part of the 32% who keep helping their landlord become wealthy with monthly rent payments, the question is this: What would it take for you to go from a renter to a homeowner, and why is this important?

There are loan programs across the country designed specifically for wannabe homeowners who don’t have a lot of money saved. FHA loan programs, for instance, require only a 3.5% down payment to initiate your home purchase. There’s also a program called Mass Housing which helps Massachusetts residents get better terms and conditions and lower interest rates—even if you have credit issues.

If you upgrade your property, those benefits accrue to you over time.

There are also great tax advantages to becoming a homeowner that you don’t get as a renter. Additionally, you can take advantage of appreciation rates. Nationally, properties have been appreciating anywhere from 4% to 7% over the past seven or eight years. Wouldn’t it be better for you to enjoy these benefits?

Furthermore, if you upgrade your property, those benefits accrue to you over time. If you upgrade your rental, those benefits accrue to your landlord.

If you’d like to know more about the benefits of homeownership or how you can transition from renter to homeowner, don’t hesitate to give my team and me a call or send us an email. We’d love to help you.

Why It’s Important for Your Agent to Be Connected

A connected agent is an agent who will help make your real estate transaction much easier. Here’s how.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Why is it important for your real estate agent to be locked into networks that can assist you in your next real estate transaction? Essentially, it makes the entire process easier and faster.

Your agent needs to know people in the insurance, financing, and banking industries who can help get the money together for you to optimize your sale or purchase.

If your agent has a network like this, it will help you formulate a successful plan for your transaction.

It’s also important for home inspections to be handled in a professional way by your agent. The way that this can be facilitated is if your agent is well-connected with home improvement specialists such as carpenters, builders, kitchen experts, plumbers, etc. For any kind of issues that can happen in your home, it’s important that your agent has a relationship with someone who can help fix it.

Having a network like this will enable your real estate professional to help you formulate a successful transaction when you decide to buy, sell, or invest. If you have any other questions for me regarding real estate, don’t hesitate to reach out to me via phone or email. I look forward to hearing from you soon.

What if You’re Selling a Home With Asbestos?

If you’re a home seller, here’s how to deal with asbestos in your home.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

If you’re selling your home, asbestos is an issue you may need to deal with.

In case you don’t know, asbestos was outlawed in several countries back in the 1960s when it was discovered to be carcinogenic That’s why, if your home is found to have asbestos pipes, asbestos-covered boilers, asbestos insulation, etc. during its inspection, you’ll likely be required to remove it for the safety of the future owners.

MASS Save offers programs that remove asbestos from homes and install brand-new heating and insulation systems.

The good news is, asbestos can be removed by asbestos abatement companies, and it’s usually not as expensive as you think. Getting it professionally removed not only makes the home safer for buyers, but it also increases your home’s saleability.

Here in Massachusetts, MASS Save offers programs that remove asbestos from homes and install brand-new heating and insulation systems—the services of which are compounded into a seven-year, no-interest loan term. If you take advantage of these programs, you’ll improve the efficiency of your home’s heating system, increase its safety, and amp up its value for a small amount of money.

If you have any more questions about asbestos and how it can impact your home sale, don’t hesitate to reach out to me. I’d be happy to help you.

Good News: Interest Rates Have Plummeted

Interest rates have dropped, which is good news for buyers and sellers.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

In case you haven’t heard, interest rates recently dropped to as low as 3.5% on a 30-year fixed basis. Just a year ago, they were hovering in the high 4% range and even began inching toward 5%. If you’re a buyer, this means you can buy a $360,000 home right now for the same mortgage payment that you would’ve paid last year for a $300,000 home. Interest rates matter if you’re selling a home as well. Since buyers can afford more, you can sell for more. This is why our market continues to be strong.

If you have any questions about this or any other real estate topic or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.

Get More Value by Tearing Down Your Home (Yes, You Read That Correctly)

Your for-sale property might be more valuable if, instead of selling it, you tore it down to free up that land for another home. Today I’ll explain.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

If you’re thinking of selling your home, today’s message is for you: You might get more value from having the home torn down to free up that land to build another home.

We find this happening increasingly often in resort areas as well as with homes that are old, deteriorated, or aren’t up to the power of the neighborhood they reside in.

Find out how much the land is worth based on what lots are selling for in today’s market.

To profit from this process instead of the traditional selling process, there are several factors to keep in mind:

1. Does your property conform to zoning laws that give you the ability to convert it into one or more building lots? If not, you may have to appeal to the Board of Appeals, whereafter you’ll have to hire a survey attorney and go through the appropriate channels in order to determine how many lots your property can actually be converted to before you consider this alternative.

2. Consult with a real estate professional to determine the property’s worth with a house versus the property’s worth if the house were torn down. Find out how much the land is worth based on what lots are selling for in today’s market.

3. Allow enough time for the process to play itself out. If you do get a building permit, you’ll need to have time to make the arrangements. In some cases, you might have to get the approval of the Historic Commission or another channel; you’ll also have to get building permits furnished to a buyer before they're likely to pay a substantial price for the property.

If you have any questions, thoughts, or concerns regarding your situation, feel free to reach out to us. We’d be glad to hear from you.

How Elderly Home Sellers Can Avoid Selling at a Discounted Price

If your neighbor wants to buy your home, there are four tips to remember to keep yourself from selling at a discounted price.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Are you a senior citizen thinking of selling your home and you have a neighbor who wants to buy it? Here are four tips that will help you avoid selling at a discounted price.

First, make sure you obtain an accurate market analysis. This is especially important considering we’re still in a seller’s market.

Second, if you’re a single person, make your decision with your head—not with your heart. In this case, when a decision is made based on emotion, money is oftentimes left on the table, and valuable equity along with it. You might think you’re doing your neighbor a favor, but in fact, you’re doing yourself a disservice.

When a decision is made based on emotion, money is oftentimes left on the table, and valuable equity along with it.

Third, expose your property to the largest audience of prospective buyers. Roughly five million home sales are expected to happen across the country throughout 2019, which means there might be somebody out there who’ll pay $10,000, $20,000, or $50,000 more than what your neighbor is offering while trying to buy at a discount.

Lastly, don’t cave in to the pressure of doing something just to satisfy someone else because you think it’s the easiest solution.

If you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

What’s Going on With Pending Home Sales in the Market?

Here’s a quick-but-important message regarding pending home sales in the market.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

In April of this year, pending home sales actually dropped by 1.5%, according to the NAR of Washington, D.C. This was a modest change from the growth seen in the previous month. Only one of the four major regions of the country—the Midwest—experienced growth, while the remaining three regions reported a drop in their respective contract activity.

The pending home sales, according to the NAR, is a forward-looking indicator based on contract signings. In March, they were at 105.9 but fell 1.5% in April to 104.3.

Though the latest monthly figures show a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising.

Year-over-year contract signings declined by 2%, making this the sixteenth straight month of annual decreases. Lawrence Yun, the NAR’s chief economist, said that the sales dip has yet to account for some of the more favorable trends toward homeownership such as lower mortgage rates.

Though the latest monthly figures show a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising. It’s inevitable that sales will be higher in a few months.

As far as the local activity here in the Northeast, the Pending Home Sales Regional Breakdown indicated that actual signings declined by 1.8% to 88.9 in April. That’s now 2.1% lower than what it was a year ago.

In the Midwest, the index grew 1.3% to 96.8—2.4% lower than where it was in April of 2018.

If you have any questions regarding what’s happening with your specific property value or about what might be happening in your neighborhood, feel free to reach out to us. Let us know what we can do to make your real estate experience a pleasant one.

Familiarizing You With TRID and What This New Rule Means for You

I’m happy to inform you that the new TRID regulations are now in effect.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Today I’m coming to you with a brief message concerning TRID, or the TILA RESPA Integrated Disclosure Rule, and the regulations it consists of.

You’re probably wondering, “What is TRID, anyway?”

The Lenders Network states, “As of October 3rd, 2015, the CFPB integrated the TILA (Truth in Lending Regulation) and RESPA (Real Estate Settlement Procedures Act) Disclosures. Essentially, there are now two new forms that lenders are required to send out within three business days of receiving a loan application from the consumer.”

It goes on to say that, “The Dodd-Frank Wall Street Reform Act directs the Consumer Financial Protection Bureau to integrate the TILA and RESPA disclosures in such a way that these two new, integrated disclosures are now called the Loan Estimate and Closing Disclosure. RESPA’s Good Faith Estimate, GFE, and TILA’s Truth in Lending Disclosure were integrated creating the loan estimate. The final TIL and HUD-1 Settlement Statement were integrated creating this new disclosure.”

“TRID is designed to help borrowers understand their loan more clearly before they actually go to closing, and it streamlines and condenses certain loan disclosures. It also changes the timing of certain mortgage processes. TRID provides consumers with a clearer, more easy-to-understand estimate of the costs involved in obtaining a mortgage.”

This new regulation “will make shopping for a mortgage and comparing loans easier.”

“Providing consumers a more convenient way of comparing loan offers from different mortgage lenders, TRID reduces the amount of paperwork involved and provides a more clear and accurate loan estimate. The loan estimate replaces the GFE, which has always been provided from lenders three days after receiving a loan application. A loan estimate, however, will be standardized with all lenders and will create one clear state of terms and estimated fees.”

This is significant for consumers because it “will make shopping for a mortgage and comparing loans easier. Furthermore, the Closing Disclosure or the HUD-1 Statement has been replaced with the Closing Disclosure. The new Closing Disclosure is more complete with the cost and the fees clearly stated, and the Closing Disclosure will also be more accurate. TRID has made provisions on how much certain items actually cost at closing, and they can vary from the estimated cost and the Closing Disclosure.”

Before you go to close on a home, TRID mandates that all closing costs must be made known to you, the consumer, a minimum of three days before the conveyance.

If you have any further questions, thoughts, or concerns regarding TRID regulations, give us a call at 978-256-3306 or visit our website at HomesAreUs.com. Let us know how we can help!

The Factors That Affect Home Pricing

If you ignore certain factors, your home may go unsold on the market. Here’s what you need to keep in mind.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

When it comes to correctly pricing your property, there are a few factors that can play a role in your decision. The first one is your competition.

How many properties are on the market near you? If there are few homes like yours in the area, you’ll see your value and price increase. However, when a wide range of inventory comes onto the market, it’ll adversely affect your property’s value.

Another factor is interest rates. When rates increase by 1%, buyers’ affordability can decrease by 6%. When rates fluctuate, it’ll affect your pricing.

If your property is overpriced, buyers won’t even look at it.

When you put your home on the market, 60% of your marketing plan is determined by pricing your home correctly. If it’s overpriced, buyers won’t even look at the property. On top of this, agents will use your property to leverage the sale of a cheaper home with the same value. If your property expires and you list it again down the road, it likely won’t sell for what it could have if you’d priced it correctly from the outset.

Lastly, the National Association of Realtors says that your home will have the most exposure within the first three to four weeks of being listed. Keep that in mind before you think of setting a high price that wards off buyers.

If you have any questions about this or any other real estate-related topics, feel free to reach out to me at 978-256-3306. In the meantime, I look forward to hearing from you soon.

6 Fast Facts About Real Estate You Might Find Interesting

Today I’ll pull back the curtain a bit on the real estate industry and share some interesting statistics about it.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Here are six statistics about the real estate business I think you might find interesting:

1. 93% of all homes sold nationwide are sold by only 7% of the agents. The reason for this is many “agents” obtain their real estate license not to actively work in the business, but rather so they can make a few extra dollars in the event that a friend or family member needs to buy or sell a home somewhere down the line.

2. 60% of your home’s marketing plan is determined by pricing your home correctly.

3. Real estate commissions range from 4% to 10% of the sale price. A 10% commission typically happens with large commercial acquisitions, while a 4% commission is usually a discount rate agents offer to sellers.

A 10% commission typically happens with large commercial acquisitions, while a 4% commission is usually a discount rate agents offer to sellers.

4. The average transaction, from inception to closing, takes a minimum of six weeks.

5. The average agent sells 2.3 homes per year.

6. 87% of all licensees can’t afford the $200 reinstatement fee. 

If you’d like to learn some more interesting real estate statistics, you have any questions about our market, or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.

Forge Your Path to Financial Independence Through Real Estate

Do you want to become financially independent? If so, becoming a real estate investor may be the right next step in your life.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

Financial independence is an economic indicator suggesting that someone is no longer dependent on income from a job requiring them to trade their time for money.

Financially independent individuals generally draw on passive income sources, and today I’d like to highlight how you can achieve this status for yourself by investing in real estate. After all, financial independence is, in essence, financial freedom. It allows you to spend time doing the things you enjoy.

Financial independence is, in essence, financial freedom.

Though real estate is cyclical, the overall trend over the last 50 years has been one of considerable appreciation. In fact, in our current real estate climate, investing in just half a dozen properties could bring you into the realm of financial independence.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How the Government Shutdown Affects Real Estate

The government shutdown has ended for now, but may resume in the near future. Here’s how it’s impacted real estate so far.

Selling your Massachusetts home? Get a home value report

Buying a Massachusetts home? Click here for full MLS access

There’s no question about it: The recent government shutdown will have a negative effect on the real estate industry. What changes are occurring now and what could happen in the future? Today we’ll be taking a look.

Many lenders access information from either the IRS or the Social Security Administration in order to verify applicants’ income. This process is currently strained because these government entities are short-staffed and the few remaining workers are still having to handle these services.

Consumer confidence is low.

At the same time, people are still seeking FHA and VA loans. Though these processes are still continuing as normal, staff is also reduced. Because of this, a backlog is building and their services are becoming delayed. 

On top of all this, consumer confidence is low: 800,000 people weren’t receiving paychecks, there’s uncertainty about whether the shutdown will resume in the near future, and much more. We can’t necessarily measure the impact of low consumer confidence, but we’re sure the effects will show up in the long term. There’s also a worry that interest rates may begin to fluctuate due to the shutdown. 

If you have any questions or need further information, feel free to reach out to me. I look forward to hearing from you soon.