Home Buying and Selling: Who Works For You?

More often than you’d expect, homeowners refer to the person they bought their insurance from as their agent. It sounds reasonable but it’s definitely not accurate. That person is the agent of the insurance company and they legally represent the company, not the customer. Even an independent agent who can place a policy with different companies is still an agent of the company.

A mortgage officer, in most cases is an employee and represents the company. And the same is true for a title or escrow officer. It’s important to understand the actual relationship to know what you can expect from them. Any business person who wants to stay in business must treat their customers fairly and with a high degree of service. As a customer, you should be able to reasonably expect honesty and accountability. The difference is that employees owe their loyalty to their employer and agents owe their loyalty to their principal.

An agent owes more than just honesty and accountability. The principal can expect complete disclosure, obedience, loyalty, reasonable skill and care and confidentiality from their agent. This advocacy is very beneficial during the buying or selling process to coordinate all aspects of the transaction. The agent can bring valuable experience to your side of the transaction to provide confidence that your best interests are being represented from start to finish.

Most states have a recognized procedure for the real estate professional to create a formal relationship between themselves and a buyer or seller. This requires a fiduciary/statutory responsibility that places the principals’ interests above the agent’s own personal interests.

In Massachusetts real estate brokers and salespeople/agents are required to provide consumers the Massachusetts Mandatory Licensee-Consumer Relationship Disclosure form at the first personal meeting with you to discuss a specific property. The form explains the types of agency an agent can provide. Although, this has been mandatory for years, many buyers who have looked at properties with other agents often tell me they have never seen the form! Consumers have a right to know who an agent represents.


Additionally, while a home seller is required to sign a written agreement in order to list their home for sale with a REALTOR (member of the National Association of Realtors), it is also in a buyer's best interest to have a written agreement with an agent who is going to represent them as a buyer agent. It clarifies expectations so there are no surprises or misunderstanding about responsibilities and makes for a less stressful transaction. More about buyer agency...
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 About the author: Marilyn Messenger  is a local broker associated with Andrew Mitchell and Company, Concord. She has been representing buyers and sellers in Concord, Wayland, Sudbury, Maynard, and the towns west of Boston since 1993. She is a Certified Residential Specialist (less than 4% of Realtors have achieved the CRS® designation), an Accredited Buyer Representative and is an active member of the Real Estate Buyer Agency Council. Messenger is also a Certified Luxury Homes Marketing Specialist and a Million Dollar Guild Member. Visit www.MarilynMessenger.com.  

New Construction - Common Misconceptions

Everyone Loves New Construction!

Builder confidence is up! New single-family homes and condominiums are finally being built again and what’s better than having everything shiny and new, built with state-of-the art materials, energy efficient systems and appliances, and everything to fit the way you live, work, and play?

Given the choice, a lot of home buyers would prefer to purchase a new home than a house that someone else has lived in; especially buyers who don’t have the time, interest, or money for repairing or renovating a house that someone has lived in.

Whether you are a first-time buyer, moving-up, down-sizing/right-sizing, or someone who has bought and sold multiple times, if you have not purchased new construction before or you did it along time ago, you may have some misconceptions about buying new construction. Here are a few common misconceptions about new construction.

Expectations
The biggest misconception about new construction is that because it’s new, it will be perfect! New houses are built by people and we all know that people are never perfect. A new house can have defects just like a resale. While home buyers expect and even look for things to be wrong with an older house that has been lived in, they don’t expect any issues in new house. Realistic expectations are important when buying any house so remember, there is no such thing as perfect!

Selections and Upgrades
One of the most fun things about buying a new home is that you get to pick out flooring, cabinets, counter-tops, appliances, tile, fixtures, etc. and have everything color-coordinated, up-to-date and just the way you want it. With so many choices it’s easy to get carried away with making selections that are so trendy that you may grow tired of them in a short-time. And, it’s also easy to pay for extra for upgrades that you may not need and that really don’t add value.

While it’s nice to have everything done at the same time by the builder, sometimes waiting and getting things done later on your own can be a better and more cost effective choice. If you decide to buy upgrades, buy for own enjoyment and don’t expect that you will get your money back when you sell. What you sell for will depend on the market at the time and as soon as you move-in, your new home becomes used! Buy what you like, don’t over-personalize and don’t do anything because you think it will be a money-maker later especially if you are buying in a large development of similar homes.

Home Inspections
A lot of people have the misconception that they don’t need to do a home inspection when buying new construction because everything is new, under warranty, and you’ll do a final walk-through and prepare a punch-list of items that the builder will fix.

Having a home inspection is just as important for a new house as for a resale. Remember, new is not perfect and there may be items that weren’t installed or not connected properly, etc. A walk-through is not the same as a thorough inspection by a professional home inspector. Buying a home is a big investment; don’t be “penny-wise and pound foolish.” Also, make sure you know exactly what items are under warranty and for how long!

Non-Negotiable
That builders/developers don’t negotiate is another misconception about buying new construction. This is something that home buyers are led to believe by the on-site salesperson who represents the builder, and while most buyers would never accept that premise if they were buying a resale property, for some reason they believe it about new builds.

Builders are like every other seller and whether or not they will negotiate depends on a number of variables – the market, the size of the development, how far along the project is, how qualified you are, which items you want to negotiate about – price, terms, features, etc. Like every other seller, some builders are easier and friendlier and more financially stable than others; some are good business people and know when it pays to be flexible and others just dig in.

On-Site Sales
Another great thing about about buying new construction is that builders make it so easy to buy by building sales models and having an on-site agent/salesperson to help you.

The most important misconception that buyers have about new construction is that they cannot have or don't need a buyer agent/broker on their side. While the majority of home-buyers know that it makes sense to have their own buyer agent represent them and they want a professional whose fiduciary responsibility is to work on their behalf to get them the best deal, help them understand their options in the local market, help them do their due diligence, and negotiate on their behalf when they are buying a resale, many still think that when buying a new home it's OK to go directly to the on-site agent/salesperson and do whatever that seller's agent tells them to.

Unfortunately, too many buyers don't even think about getting their own representation until they've already been to the site, talked with the on-site seller's rep, given up a lot of personal and financial information, and decided to buy. And by then, it's too late!

Yes, you can have your own buyer agent and buying a new house does not take away your right to representation. The majority of new homes are listed on MLS (multiple listing service) just like resale listings, and the listings include an offer of cooperation and compensation to buyer agents. The builder will pay your agent's fee out of the proceeds of the sale, the same as any other seller!

BUT, some new construction seller agents will often include a note on the MLS that buyers do not see that stipulates "buyer agent MUST be present at the first showing." There's the catch! They know that buyers drive around and will often stop at a model home "just to look" and the next thing they decide to buy. On-site agents do not want buyers to have a buyer agent on their side; the seller's agent want to control the buying so they can maximize profits for the builder (and themselves!) I have had buyers tell me that they were told that they could not have a buyer agent because they came to the site without their agent.

Take away
If you already have an agreement with a buyer agent to represent you, make sure you do not go to any new construction sites without your agent.

If you are thinking about buying new construction and do not have a buyer agent, get one before you visit any new construction sites and before you talk with anyone on-site. That way when you decide to buy, you will have a agent on your side! By the way, make sure your agent knows the area and has experience as a buyer agent for new construction.

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About the author: Marilyn Messenger is a licensed broker, Certified Residential Specialist, and Accredited Buyer Representative, associated with Andrew Mitchell and Company in Concord MA. She has been representing new construction home-buyers in Sudbury, Wayland, Maynard, Stow, and the towns west of Boston since 1993. Her clients have purchased new single-family homes, luxury properties and condominiums from both local and national builders. Her experience experience on a local Planning Board, Zoning Board, and board member of an HOA has been especially helpful to her new construction clients. Visit www.marilynmessenger.com for more.

Sudbury MA - Good News for Home-buyers: Homes for Sale Up 40%

Homes for Sale in Sudbury

While the media continues to report about low inventory resulting in fewer sales, the number of single-family houses for sale in Sudbury MA has increased approximated 40% over last year at this time. There are currently 90 single-family homes for sale in Sudbury compared with 64 last year at this time.

Prices for current listings on the market range from $425,000 to $3,750,000. The median list price of $899,450 is lower than last year at this time when the median list price was $922,450.

Luxury home-buyers continue to have the most opportunities in Sudbury.

There are 29 single-family homes on the market listed between $1,000,000 and $1,499,999, and 9 between $1.5 million and $3,750,000. The average time of the market for many of these homes exceeds fourth months; sellers may be ready to make a deal! See all of the properties for sale at www.marilynmessenger.com.

Pending sales are also up from last year at this time. There are currently 47 with sales pending including 34 that have accepted offers and are being shown for backup.

There were 17 closed sales in April; only one more than in April 2014. The median sale price of $640,000 was 3% lower than the median sale price in April 2014. Year-to-date there have been 52 closed sales compared with 36 for the same period in 2014. The Y-T-D (through 4/30) median sale price is $632,500, up 5.6% from the same period in 2014.

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"We were so pleased to have worked with Marilyn for a second time! Marilyn helped us to buy our first home in Sudbury 10 years ago and when we were ready to sell it, we called her again. The process of buying and selling can be overwhelming, but Marilyn helped us to sort through it all. She is a master at organization and coordination of the many parties involved in this process. She was on top of all of the details so that nothing fell through the cracks. There were multiple offers on the house we ended up buying and on our house when we sold it, and Marilyn was invaluable...MORE...  Contact Marilyn

Sudbury Real Estate Market Update - Sale Prices Up in May!

Sudbury MA - Sale Pending

Overall, the Sudbury market is similar to many of the desirable suburbs that are commutable
distances from Boston, Cambridge, and Waltham.

There are fewer single-family homes for sale that last year at this time. The number of closed sales both in May and year-to-date through May 31 is also less than in 2013 for the same time periods. Median sale prices are for closed sales were higher higher, and the luxury properties market is thriving again as is the 55+ condominium market.

Lower supply meant to increased competition among buyers and it was not unusual to see houses have accepted offers within a day or two; many receiving multiple offers/bidding wars. I am starting to see some closed sales with sale prices above asking. Keep in mind, it generally takes about 60 days to close from the time of an offer; the buying decisions for these houses were made a couple of months ago at the peak of the Spring market.

As busy as the market has been, there were still very single-family home sellers who had to reduce their list prices because their houses were not selling.

Here is the link to more details on my Trulia blog. Contact me at 508-596-3501 to discuss how the market effects your decision to buy or sell a house in Sudbury. Search for homes or request a market valuation for your home at www.marilynmesenger.com.
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Here is the April 2014 real estate market video report for Sudbury MA:

As of April 30 2014 there were 67 single family properties offered for sale in Sudbury, MA. These properties were on the market an average of 138 days and the median listing price was $939,000.

15 single family properties were sold in April 2014, 11% less than last year. Time on market is down and the median sale price in April 2014 of $665,000 was about the same as compared to last year at this time.

Current activity is brisk, houses that are priced correctly are getting accepted offers quickly, often within just a few days. In any market, houses that are not priced correctly to do not sell and require a price reduction in order to expose the property to the right buyers. There were 13 price reductions on single-family homes during April. 

 

As of today, May 12, 2014, the number of single-family homes for sale in Sudbury has actually surpassed the number at this time last year! There are 74 for sale, up from 69 last year. Luxury home buyers have excellent choices in Sudbury as $1 million to $1,499,999 is the price range with the highest inventory - the are 24 luxury properties for sale in Sudbury, up from 20 last year. The price range with the next highest number of homes for sale in Sudbury is $900,000 - $999,999; there are 13 for sale.

 

Contact me at 508-596-3501 if you would like to know more about the Sudbury real estate market.

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Marilyn recently represented me in a very successful real estate transaction. I was a first time seller and the sale was quite non-routine. Marilyn expertly guided me through the entire process. She maintained a high level of contact and was always available. I had a great experience working with Marilyn. I would both retain her again and recommend her without hesitation.

Kristin Lacroix
Chief Financial Officer at Massachusetts Department of Environmental Protection

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Search for homes or request a home valuation report: www.marilynmessenger.com

 

 

Wayland Sudbury Home Prices Up 20%!

Great news for home sellers in Wayland and Sudbury! The real estate market is back!

Year to date, the median sale price for single-family houses is up 20% over last year. Meanwhile, the number of homes for sale remains historically low making this a great time to put your house on the market if your ready to move.

There are currently 30 single-family properties for sale in Wayland. 8 properties already have accepted offers and are being shown for backup. In Sudbury there are 44 single-family homes for sale and 14 properties have accepted offers. Buyers are moving quickly on houses that are priced and marketed correctly and there is definitely a pent-up demand.

Prices for single-family houses in Wayland range from $325,000 for a 2 bedroom, 1 bath ranch-style home on a fairly busy road, to $9,300,000 for a 23 room luxury estate on 12+ acres of land. The median list price in Wayland is $1,220,000. The prices range with the most opportunities is $1,000,000 to $1,499,999; there are 10 properties for sale.

Prices in Sudbury range from $429,000 for a 3 bedroom, 1 bath ranch-style home on a side street, to $3,495,000 for 13 hilltop estate on 7+ acres with it's own 3 par mini golf course for practice. The median price in Sudbury is $950,000. As in Wayland, the price range with the most opportunities is $1,000,000 to $1,499,999. Many of the luxury homes in Sudbury have been on the market for a year or longer; some of these sellers may be ready to negotiate. See homes for sale.

Sudbury and Wayland also have some excellent choices for condominiums including new townhouses. If you are thinking about buying new construction, remember, the real estate agent at the site is working in the best interest of the developer. If you want a buyers agent to work on your behalf, do not visit the site without your agent as you will lose your right to representation. Contact me for additional information about buying new construction.

See the full market updates at http://www.marilynmessenger.com and contact me if you're thinking about selling, buying or both.

Luxury Homes Market Update

The Keeping Current Matters blog recently published a post titled “Luxury Market Surges” that includes an InfoGraphic (based on data from the National Association of Realtors and the Wall Street Journal) showing that the number of homes sold for $1 million-plus year-to-date has increased substantially over 2011. Varying by region, the overall increase for million dollar-plus homes nationally was 44.1 percent. For homes sold with a mortgage, the increase for $1 million+ homes was 28%; compared with 8.5% for homes sold for under $1M.

Luxury home sales in the Northeast increased 27.6 percent. Sales in the towns west of Boston certainly helped fuel the increase in the Northeast. Year-to-date, sales of luxury homes in Weston increased by 50 percent -- 87 up from 58; in Wayland there have been 23 sales this year up from 13 in 2011 – a 77 percent increase! Sales in Concord were up from 38 in 2011 to 55 in 2012, an increase of 45 percent. The number of estate home sales in Sudbury remained steady with 23 sold, one more than for the same period in 2011.

The median price for the luxury market in Weston, Wayland, Sudbury and Concord also increased. While there are still lots of excellent opportunities for move-up buyers and people who are moving to the area, the number for sale continues to decrease, so list prices have also increased from last year. Click here to see what homes are for sale. Request additional information or ask a question. 

About the author: Marilyn Messenger is licensed real estate broker with Andrew Mitchell and Company in Concord MA. She has been selling luxury properties in the towns west of Boston since 1993. As member of the Institute for Luxury Homes Marketing; a Certified Residential Specialist, and Accredited Buyer Representative, Marilyn has the knowledge and experience to provide the efficient and cost effective services her clients expect. Visit www.marilynmessenger.com for more information.