Southern NH Real Estate Answers

What is a short sale?

Some have asked what is a "short sale" in real estate?

A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's Loss mitigation department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the  debt.  In such instances, the lender would have the right to approve or disapprove of a proposed sale. (Wikipedia)

State of the Market - May 2008

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 * May 2008
Active on Market	400
Average List Price	$269,119
Average Sale Price	$225,906
List to Sell Ratio	95.76%
Average Market Time	104 days
Number of Sales YTD	163 homes
Number of Expired	249 homes
Depreciation	19%
Depreciation over 2 years	25%
Number of Months Supply	11 months
Current Interest Rate - 30yr fixed	5 %

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

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 * January  21, 2008
Active on Market	376 days
Average List Price	$269,776
Average Sale Price	$244,219
List to Sell Ratio	94%
Average Market Time	77 days
Number of Sales YTD	9 homes
Number of Expired	29 homes
Depreciation	12%
Depreciation over 2 years	25%
Number of Months Supply	7.62 months
Current Interest Rate - 30yr fixed	5.69%

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

Professional Fee

A seller asked me over the phone if I would cut my commission/professional fee to 4%.

MY response:  If the FIRST THING your Realtor/Licensee does is reduce their fee, how do you think they will handle protecting your PRICE?

Also, the first thing you’re going to do is remove any motivation by the Realtor/Licensee to get OTHER Realtor/Licensee’s excited about selling your home? That being said you can ALWAYS find those who will do something for less than the other guy. If your standards for professionals lean towards mediocrity and less than average performance, by all means, contact a limited service broker. However, if you truly wish to protect one of the largest investments of your life–opt for a quality professional who will work to preserve your equity and protect your interests.

Reverse Mortgages...

Reverse Mortgages, what are they?

 

A little "buz" is happening in the real estate world. It's called Reverse Mortgages. A reverse mortgage is a loan against your homethat you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or repay a loan each month.

Sounds too good to be true doesn't it?

To be eligible for such a program, you must own your own home and be 62 years of age or older. You do not typically have to pay anything backuntil you die, sell your home, or permanently move out of your home. This is a unique way to keep those who qualify in their homes. To not be burdened with real estate taxes and other maintenance issues that can plague a mature home owner. So that they can continue to enjoy quality of life.

Remember: you never see a uhaul truck a long side the casket!

State of the Market Address...

I have posted a chart to express the state of the market. Especially as it compares to last year at this time. As you can tell there really is not a significant difference between this year over last year. With the exception of length of time on the market. it's been very interesting educating the consumer on actual market data.

Both buyer and seller can benefit from knowing the "truth".

Download Manchester.pdf

Manchester NH Real Estate, state of the market!

I have had a lot of people ask me: "How is the real estate market?".

My response always gains a reaction of bewilderment from the person that I am speaking to. The market has two things to say...(it's the market that always does the talking).

1) The average sales price has decreased from 2nd qtr 2006 to 2nd qtr 2007 by only 1%. The market has faced an overall 10% decrease in pricing since 2006. Not bad since we gained in the triple digits from 2002 to 2005!

2) The average days on the market is a bit longer. We went from 70 days to 87 days. That's 2.5 weeks longer on the market from 2nd qtr 2006 to 2nd qtr 2007.

The reason that folks are "bewildered", is because it's not really as "bad", "slow" or "depressed" as one might have thought.  The media has impacted the real estate market locally in a negative manner. I really don't think that  the "truth" is being reported. Numbers don't lie!

MOLD!?!

I was in a property last week that was seriously contaminated with mold.

I really never realized the negative effects of mold until I spent an hour in this property. As I opened the door, I looked in the home towards the kitchen in the rear of the house.

I saw the color black everywhere. (the house was vacant) I said to the buyer that I was with that we needed a mask before we could go in to the home. After using a mask, and going in and out of the house to take some "breathers" from the disgusting smells, I was still ingesting the toxins of the mold spores.

Later that day, I became ill. Sick to my stomach, and a headache. I slowly become very sleepy and just "yucky" sick. I left the office to go home and shower. Even still by that evening, I was nauseas and weak. I can tell you first hand that mold is not tolerable in my system.

I have since researched out how to avoid this in the future and have tried to educate myself on "Mold Mitigation". Here is a website that I found useful:

http://www.sdmold.com/removing_mold.html

A GREAT TIME TO BUY REAL ESTATE

I have been learning about real estate blogging.  I have read the articles, searched the web and talked to the hosts of other web blogs.  What I have learned is that I have been doing this all wrong.

I need to make frequent short entries. I have decided that I will treat my blogg as a "release" to my day to day issues as well as give opinion and insight into the real estate market.

Today's thoughts are focused on:  IT"S A GREAT TIME TO BUY REAL ESTATE! 
The inventory is diverse, the negotiations are fierce, and the interest rates are still relatively good. I  have found a lake front two story, 1500sq ft home, contemporary home listed for $229,900. I saw a home listed in Manchester NH for $225,900 sell for $175,000. I found interest rates

ranging  from 6.25% to 6.75%.

All of this combined makes it a GREAT TIME TO BUY REAL ESTATE!

"CRACKLING AND POPPING" - Adjustments in NH Real Estate

    A recent visit to the chiropractor brought to my attention the parallels between the adjustments of the real estate market and the "adjustments" the doctor was making with my spine. Here, in the greater Manchester New Hampshire area real estate industry there have been  many adjustments to make.

    Adjustments from the seller's perspective include longer time in the marketing process. The length of time that a home stays on the market has lengthened. In January of 2005 there were 53 closed single family sales with an average length of time on the market of 79 days. In 2006 there were 35 closed single family sales in Manchester averaging 77 days on the market. Recently, this past January there were 36 closed sales averaging 96 days on the market.

    But the most significant adjustment  sellers are experiencing  is with regard to pricing. The average sales price on a home in the Manchester NH area in 2005 was $259,322.  In 2006 that average was $260,174. So far in 2007 the current average selling price for a single family home is $222,787.

    The buyer is also busy making adjustments in the market. Today's buyers are looking at more inventory on the market than they have seen in the last 8 years. It is taking buyers much longer to make up their mind about their purchase. And when they do make up their minds, many act as if they think the property is ON SALE not for sale!

    Buyer wear-with-all is different today as compared to the last few years. Their ability to purchase is less due to a of lack of necessary funds to complete the transaction. Basically, people do not save money anymore. Buyers are relying heavily on 401Ks and other retirement accounts to obtain the funds to complete the transaction, or seeking closing funds from the seller in negotiations.

    The professional realtors in the industry are also experiencing their own adjustments.  Our way of working the business has changed.  83% of realtors today have been in the business less than 8 years (National Association of Realtors report). This means that most do not understand what a "normal" market is. They are used to listing a home, and selling it by the end of the week.  It's a time in our industry where the capable agents will survive and learn to adjust to the market.

    A true professional will tell you about the "crackling and popping" that is going on, not only concerning the local market, but on a national level as well.

Thanks for reading and your comments are appreciated.

Suzanne Damon