Southern NH Real Estate Answers

Good NEWS in Real Estate

First Time Home Buyers - $8,000 Tax Credit

Are you eleligible for the first time home buyers tax credit?

Below you will find some information regarding the $8,000 government tax credit we’ve all been hearing so much about - it’s a great opportunity that should be utilized if possible, but there is a lot to it.

• The IRS defines a first time home buyer as someone who has not owned a primary residence in the three years prior to the current home purchase.
• The tax credit is yours to keep.  It does not have to be replaced.
• The tax credit is equal to 10% of the purchase price of the home, up tp $8,000.
• The tax credit is available for homes purchased on or before 1/01/2009 and before 12/01/2009.
• Single taxpayers with incomes of up to $75,000 and married couples with incomes of up to $150,000 are eligible for the full tax credit.

 

Feel free to contact me via e-mail or phone for more information on this opportunity.

Real Estate Auctions

"I’m interested in buying a home that’s coming up for auction. I have seen it in the paper, so I know the date and time. What else do I need to know?"

 

First, I strongly suggest that you seek the professional advice and council of a Realtor. A Realtor can help you discover information about the property that you may or may not have access to. You should definitely have someone representing you; there are no second chances when it comes to an auction. As the gavel comes down, and you are the top bidder, it is yours with no contingencies! A good buyer broker who specializes in foreclosures is your best bet.

 

It is important that you preview the property before the auction, paying close attention to the big ticket items such as the roof, cellar, kitchen, bathrooms, foundation, wiring, plumbing, etc. You may want to bring someone knowledgeable about building systems and repair costs.

 

It will also be important to check with the town hall, pull the tax card, making sure that there are no back taxes, fines or outstanding fees associated with the property. You should also perform a title search, to see if there are any liens or second mortgages. If the property has city water and sewer, check to see if there are outstanding balances due there as well. As these unpaid charges against the property will become the responsibility of the winning bidder.

 

At an auction, a realtor is not required. However, you must know the value of the property, and you must know the rules and process. Realtors can discover the minimum price that a bank will more than likely set for the property at auction. So to win the bid over the bank, you will have to pay more than the bank. You would want to be aware of all factors surrounding the purchase including the value of the property before and after the sale.

 

You can find better opportunities with far less headaches and liability by working with a buyer broker to find you the properties you want as they appear for auction or as they are listed on the market for sale.

 

 

 

State Of the Market

As a Real Estate Professional I know how vital it is to know your market.  I keep track of my market's statistics on a regular basis.  This not only allows me to better inform my clients on what to expect when buying or selling, but also allows me more successfully guide them through the whole process.My advice: Know the State of YOUR Market... Information is a POWERFUL tool for success   State Of The Market * As of April 1st 2009
Active on Market	373
Average List Price	$267,925
Average Sale Price	$247,399
List to Sell Ratio	94.5%
Average DOM Market Time	134 days
Number of Sales YTD	84 homes
Number of Expired YTD	109 homes
Depreciation 1st Q	4%
Number of Pending	128
Avg List Price on Pending	$219,206
Avg DOM for Pending	102
Avg DOM for Sold	103

*Information is for the Manchester, NH .  Subject to errors and ommisions.

As a Real Estate Professional I know how vital it is to know your market.  I keep track of my market's statistics on a regular basis.  This not only allows me to better inform my clients on what to expect when buying or selling, but also allows me more successfully guide them through the whole process.My advice: Know the State of YOUR Market... Information is a POWERFUL tool for success   State Of The Market * As of April 1st 2009
Active on Market	373
Average List Price	$267,925
Average Sale Price	$247,399
List to Sell Ratio	94.5%
Average DOM Market Time	134 days
Number of Sales YTD	84 homes
Number of Expired YTD	109 homes
Depreciation 1st Q	4%
Number of Pending	128
Avg List Price on Pending	$219,206
Avg DOM for Pending	102
Avg DOM for Sold	103

*Information is for the Manchester, NH .  Subject to errors and ommisions.

What can I expect to pay for home improvement expenses after I buy a home?

 

First, let’s get our definitions straight:  Home maintenance and repair projects are projects that need to be done to maintain the integrity of your home.   They include areas like roofing, furnace maintenance, windows, exterior painting and electrical. These projects need to be addressed first in order to efficiently run the home without jeopardizing safety or energy use.  Once these projects are taken care of, it is then time to take a look at home improvement projects in other areas in the home.  By definition these projects include anything done to improve the look or function of your home, but are not strictly necessary for its maintenance, integrity, or occupancy.

 

Kitchens and baths are among the top rooms people consider for remodeling first, and are often improvements considered as buyers shop for a home.  Buyers also often explore the possibility of making smaller rooms bigger, or making other additions on to the existing structure.  In the warm weather months or climates, improving the landscaping is another high priority for many new home owners.  All of these improvements are personal choices, not necessary changes, that were most likely planned on or made prior to a home purchase – but what is a reasonable amount of money to spend making a home “your own”?

 

The National Association of Realtors Profile of Buyers has gathered data to best help answer the question of what to expect for home improvements once the home is purchased.

·         The typical buyer spent $4350 on home improvement projects within the first three months of their home purchase.

·         Repeat buyers typically spend more than first time buyers; $5330 compared to $3070.

·         28% of first time buyers spend less than $1,000 on home improvement projects.

·         Buyers who purchase new homes typically spend slightly more than those who purchased previously owned homes.

·         Home buyers who plan to stay in their homes for one year or less spend the most money on home improvement projects within the first three months, $5830.

It would be prudent to examine your list of desired home improvements and identify those that may qualify for a tax credit.  Tackling these projects first may help you have the necessary money to tackle other projects in the future.  Please consult your tax accountant before expending any money – you may even find that you can afford to tackle a project that you would have thought too expensive, or even become aware of improvements you could make that would save you money in the long run.  For example, new laws provide tax credits for making your primary residence more energy efficient. You may want to consider these improvements as an advantage over others that do not qualify in the same manner.

Ultimately, what you spend on home improvement projects is a personal decision - but a little homework can let you know if the changes you may make to a newly purchased home are reasonable as compared to market trends.  You may also save yourself some money by prioritizing projects for maximum tax benefits, or even energy efficiency.

 

 

Suzanne Damon

Member of the Greater Manchester-Nashua Board of Realtors

To reduce, or not to reduce? That is the question!

When a property is on the market for a long time and it still has not sold, a homeowner might ask his Realtor: Do I need to reduce my price? Have I over-priced my home? In my experience, whenever the days on the market exceed 90 days, and especially when the days on the market approaches 200, the first question everyone focuses on is the price: "Oh, it must be priced too high. Let's drop it and try to get some attention."

However, there could be other factors to consider.  An over-priced property is “death” to a serious seller.  Sometimes the reason a property  has not sold has nothing to do with the current price.  It could be the way the property is being marketed, or the condition of the property that is being presented.

Ideally, you want to really only consider a price reduction once you determine in concert with your Realtor, that it is absolutely necessary in order to maintain a competitive edge.  Here are guidelines to consider:

 

• Realize that your Realtor is not your adversary, but on your side. Enlist their help. In slow markets and in buyers markets it is not unusual for sellers to point fingers  at the agents and the agents to point fingers at the seller’s unrealistic expectations  regarding price.
• Evaluate the current marketing program with your Realtor. Are there multiple quality photos posted on line and in the MLS? Do you understand who the buyer for your property is and how to that qualified buyer?
• Evaluate feedback from recent showings.
• Are print ads being used effectively?
• Consider through a buyer eyes how your property would be viewed. Take a step back and consider if you were a buyer what would you find attractive about the property and what would you consider a negative. Curb appeal, maintenance  issues inside and out, odors, cleanliness, and clutter all impact the over all attraction in a sale.
• Review pending sales in your neighborhood. Examine the history: how many days on the market before the price was reduced and how much of a reduction each time?
• Compare sold properties with active listings. Are they reversed? Are sold prices higher?

If it is determined that a reduction in price is necessary, you really only want to make one price reduction so make sure its right! Price your home so that it falls in the  bottom 2-5 listings or, if you’re really determined price it less than anything else on the market in your range.  We all agree, reducing the price is painful, so try to only be in pain once.

 

REMEMEBR: If a seller does not conform to the marketplace, that person is not a seller. That person is just somebody with a sign in his yard!

When will we know if the real estate market is improving? Five signs to help you know. (part two)

3) Watch the cost of financing or refinancing.

Right now the amount of money that it costs to loan money to a borrower is very steep.  These are known as “loan fees”. These fees are higher than I have ever known them to be. I think lend the rate of foreclosures decreases, we will be able to see the light at the end of the tunnel, looking towards strength in the housing market.   

 

5) What goes up must come down: Watch for housing prices to stop falling.

Buyers are considering that this is a great way to pad their pockets in a tough market. First quarter numbers are showing some signs of strength with the refinancing market. Competition comes into play again as the residential real estate market bounces out of the deep hole. When it costs 1% in loan fees to finance or refinance a property, you will know the credit markets are gaining a stronger position.

So, not only watch the rate at which money is lent but the cost to borrow that money as well. 

 

4)The number of foreclosure filed and bank repossessions decrease.

The number of foreclosures is still increasing at a steady pace. However, in our market this is down over this time last year. One sign of an improving real estate market is the reduction in the amount of foreclosed homes on the market. There are a couple of ways for this to happen. First, homeowners have to make their mortgage payments on time and do whatever is necessary to modify their mortgage to an affordable amount. Second, lenders need to get their inventory through the process to SOLD - therefore decreasing the inventory level. When    

It only makes sense, in order for real estate values to go up they must first stop coming down. In some markets home values have been hit pretty hard. Yet, in other areas they have not been hit hard at all. Nonetheless, everyone is affected by falling housing values. When this happens, the number of buyers increases to create more of a balanced real estate market. We as a nation, and locally are working hard to create the buyer incentives so that our local inventory can be absorbed.

    

 

When will we know if the real estate market is improving? Five signs to help you know. (part one)

It seems that the Realtors in my office are much busier then they were 2 months ago. I stopped to think about it and realized our market is “talking” again.

Noticing a change in home sales of 3.31% over this same time last year, its no wonder things are a little busier in the life of a professional engaged in the real estate business. Now, don’t mistake this for 2005 all over again - but things are looking up.  

In order to better understand the local real estate market.  It is defiantly worth paying attention to the numbers and a few basic concepts:

 

1) Watch the number of “for sale” signs shrink in your area.

I am certain that over the last couple of years you have noticed the large number of real estate signs in your travels. Whether it be on your path to work or in your neighborhood. Nonetheless, they have been abundant.

As you travel in the next few days count the number of “for sale” signs that you see.  As those homes sell the bank, realtor, or new homeowner will take down the sign.  At some point you will notice fewer signs, and can begin to suspect that things are changing. You can also measure this electronically by visiting real estate web sites that allow you to view homes for sale and pricing.

 

2) Is your Realtor paying attention?

Have you ever noticed how difficult it is to get a Realtor to return your phone call? These days its easy to get your Realtors attention. Any realtor worth their salt will bend over backwards to give you specialized individual attention.  That's what can happen when the market suddenly grinds to a halt - agents are reminded of how important it is to keep every customer totally satisfied.  However, the day will come when it will take just a little longer for your realtor to return your call.  This is actually a good sign - one that the real estate market is getting healthier.   

 LOOK FOR PART TWO OF THIS ARTICLE, AND THREE MORE SIGNS OF A HEALTHY MARKET SOON

Suzanne Damon...

Full Price Offers?

Do sellers expect full price offers today? Or do buyers expect 50% off sales?
What is needed to bring these buyers and sellers together?
The Answer: A good education!

Did you know that on average in Manchester NH the list to sale ratio is 96.2%? That is to say, homes are selling in this area at 96.2% of list price. For a buyer that gives you good statistical data to base offers in reality and for the seller it allows you to understand where offers are most likely to come in.

Knowing the market and its facts will help either a buyer or a seller in any market condition.