Home Selling - Price Matters!

Price Reductions Concord, Acton, Sudbury...

The housing market started strong in 2020 with media reports about low inventory, higher prices, bidding wars/multiple offers, crowded open houses, and houses selling in a day or two! And, there were the letters and calls from real estate agents with some even knocking on doors to say they have buyers for your home. Wow, it's a seller's market! So why wouldn't a  home-seller think they could ask whatever price they want?

Pricing is based on supply and demand and clearly we have been having supply shortages for the past couple of years and with COVID-19 inventory is even lower; and yes, there are still buyers ready to buy! The truth is though, that even in a hot seller's market, buyers still have their limit and they will not make an offer on a house that they perceive to be over-priced.

Why? Because people are too polite to make a low offer; they don't want to insult anyone. Or, they assume that sellers expect list price or close to list price and won't be willing to negotiate. Making an offer on a house is a big decision and there is a lot of work and emotions involved. They do not want to be disappointed and they don't want to waste their time. Buyers want to make offers that they believe they have a good chance of being accepted.

What about more marketing? Some sellers will ask their agent to do more marketing - more pictures, more advertising, more open houses - of course, open houses are not an option for now and may not be for a long time. Sure, these activities may help get buyers' attention but ultimately PRICE is the most important part of marketing. Price is what gets a property in front of the right buyers, not just people who are looking...

Home sellers who over-estimated the demand for their property have always had to adjust their pricing even in so-called sellers-markets. 2019 was a sellers market in Sudbury and there were 148 price reductions on single-family properties. In 2018, also a sellers market, there were 150 price reductions, and year-to-date as of 4/23/2020, there have been 32 price adjustments/reductions on 28 homes for sale in Sudbury. Data in Concord and other nearby towns is similar. Click for real-time price reductions.

Pricing a house for the market is not an exact science and although we can look at "comps" - comparable properties that are currently for sale along with sales pending and closed sales, but the data does not always reflect what a buyer would actually be willing to pay. Market conditions are fluid and are always changing. The Corona-virus is certainly teaching us that we can't depend on how markets behaved yesterday, all we can do is adjust.

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Thinking about selling your home? Although no one can predict how future markets will react, there are always things that need to be done to plan for your move. Understanding your options and having a solid plan in place will be the keys to your success when the time is right for you. It's never too soon to start planning, so let's talk soon. Conctact me anytime - marilynmessenger@realtor.com; 508-596-3501. Get the latest market information at www.marilynmessenger.com.

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.  

Home Buying: Tips for Negotiating Success!

Congratulations, you finally found the house you've been searching for! The next step is to have your buyer agent submit an offer on your behalf and unless it meets the price and terms that the seller is looking for, you will most likely have to negotiate. In the current where there are so few homes for sale, even if you offer full price, etc., you may still end up having to negotiate.

Here are a few tips to help you negotiate a successful outcome and get the house you want:

1. Stay focused on the end result; don't get hung-up on the process.
2. Getting the house is what is important, not "how" the seller negotiates. Don't take a seller's response personally; it's not about you.
3. Offer what you can to keep the negotiations moving so you can to agreement; often it's the small gestures that matter.
4. Be patient and stay positive. 
5. Sometimes it take time. 

Negotiating is not something that most people do on a regular basis and buying a house is one of the most important and highest price items you will ever buy. Having a experienced buyer agent/broker, who knows the local market and has good relationships with other local agents, on your side to represent you through the negotiation process will help make the process a lot less stressful and increase your odds of success. Remember, success means getting the house for the best price and terms you can in the real estate market you are in.

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"There were multiple offers on the house we ended up buying [and on our house when we sold it]… Marilyn was invaluable in helping us to navigate through those negotiations." – Julie in Sudbury

Homes for sale

About Buyer Agency

There were multiple offers on the house we ended up buying and on our house when we sold it, and Marilyn was invaluable in helping us to navigate through those negotiations. - See more at: http://www.marilynmessenger.com/#sthash.bVASmH06.dpuf

There were multiple offers on the house we ended up buying and on our house when we sold it, and Marilyn was invaluable in helping us to navigate through those negotiations. - See more at: http://www.marilynmessenger.com/#sthash.bVASmH06.dpuf

Who Saves the Commission?

When the market heats up it is always tempting for sellers and buyers to think they can get a better deal on their own without a real estate agent to represent them. But who's really getting the better deal?

One of the most common reasons buyers want to deal directly with the seller is because they feel they can save the commission.  It’s a valid consideration but interestingly, it’s the same reason the seller isn’t employing an agent; they feel they can save the commission.

Both parties cannot save the commission.  The buyer feels they have earned it because they’ve had to find the home, determine its value and negotiate with the seller.  They had to arrange their own financing, title and inspections.

The seller equally feels that they have earned the commission because they have incurred all of the marketing expenses and have invested hours upon hours to be available to show the property, hold open houses and answer inquiries. They have had to research value, financing, title work and make decisions.

There is certainly value in all of the things that buyers and sellers are willing to do to save the commission but only one person can save the commission only if the buyer and seller can reach a written agreement.

There is value to having a third party advocate helping each party to the transaction.
The Profile of Home Buyers and Sellers (Exhibit 8-1) reports that 14% of sales were For-Sale-by-Owners in 2004 compared to just 9% in 2013.  The trend shows that agent-assisted sales rose to 88% in 2013 from 82% in 2004.

The three most difficult tasks identified by for-sale-by-owners is attracting potential buyers, getting the price right and understanding and performing the paperwork. When surveyed, sellers most value the home selling in an anticipated time frame and for an expected amount.

Buying or selling a house may look easy - just take some pictures, put it on the Internet, have an open house...so why pay a commission? The reality is that both parties cannot save the commission.  It is earned by providing specific services that are essential to the transaction.  The capital asset of a home represents the largest investment that most people make.  An investment that important certainly deserves the consideration of a professional trained and experienced to handle the complexities involved.
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BTW - all real estate is local and while the media is reporting on inventory shortages leading to bidding wars, cash buyers, contingencies being waived, the market is Sudbury is actually starting to turn a bit. Current inventory is higher that is was last year at this time and also up from last month. A lot of houses came on the market in May. The median list price is also a bit lower; and there have been 24 price reductions on 23 single-family homes during the past month. Want to know more? Call 508-596-3501 or check out houses for sale at www.marilynmessenger.com. 

A Lower Payment is Your Choice

94% of purchasers last year opted for a fixed-rate mortgage at some of the lowest rates in home buying history.  Yet, some of them will pay more in interest than necessary based on the time they’ll own the home.

If a person only plans to be in the home a few years, the adjustable-rate can offer significant savings.
Not only is the interest rate on the adjustable-rate lower than the fixed in the initial period, amortization on a lower interest rate amortizes faster than a higher interest rate.

In the example shown below, a $200,000 mortgage for 30 years is compared using a 4.25% fixed-rate to a 3.25% 5/1 FHA adjustable rate.  The first five years of the ARM generates a $113.47 a month savings which accumulates to $6,808.20.  In addition, due to faster amortization on lower interest rate loans, the unpaid balance at the end of five years will be $3,001 lower on the ARM for a total savings of $9,801.

Assuming the adjustable-rate mortgage was to escalate the maximum allowed at each period, the breakeven would occur in 8 years and 6 months. If a person were to sell the home prior to this point, the ARM would provide a lower cost of housing for the homeowner.

For some people, the uncertainty of how the interest rate may change is not acceptable.  On the other hand, for the risk tolerant individual who may be more confident in financial matters or who may know when they’ll be moving next, the ARM can be a smart choice.

To make projections using your individual numbers, see the Adjustable Rate Comparison.

While you can do some basic calculations to help you decide it is always best to talk with an experienced loan officer to review actual rates and mortgage options since not all variable rate mortgages work the same way. If you would like a recommendation for a loan officer/mortgage representative who can help you purchase a home in Wayland, Sudbury, Concord or any of the towns west of Boston, contact me anytime. There are lots of online mortgage options, however, working with a lender who knows the local market can make the process go a lot more smoothly for you.

Homes for Sale

Sudbury MA Real Estate Update - 2013 Sales & Prices Up!

2013 was a good year for selling a house in Sudbury MA. Both the median sale price and the number of single-family homes sold were higher than in 2012. Although the median price was still lower than in 2005 when the housing market peaked, there were more homes sold.

Even in the hottest market, correct pricing matters and there were lots of price reductions during 2013 and there were also a number of "expired listings", houses that did not sell during their listing contract period. There are generally three reasons why houses do not sell, and pricing is number one. Home buyers search by price and if a property is not priced correctly in will not be exposed to the right buyers.

Current inventory and list prices in Sudbury are lower than they were last year at this time. Only 44 single-family houses for sale; the lowest I've ever seen! And home buyers are out there. I visited six public open houses yesterday to preview listings (a buyer agent should actually see the houses!) and gage market activity. Buyers are definitely out there! Anyone thinking about selling, now is the time to put your house on the market for sale. Don't wait for everyone else. "The early bird catches the worm!"

                      Click on the slide show for details.

Contact me if you would like more information about the market, the buying or selling process, or to request a valuation report for your home in Sudbury, Wayland or any of the towns west of Boston. 

If you are thinking about buying a house, having your own buyer agent represent you is especially important when the market is so tight. As a buyer agent/broker, I will personally (in addition to automated systems) make sure you know about houses that come on the market right away and that you are prepared to move forward when you find home that's right for you.

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www.marilynmessenger.com  - find a home; request a home valuation report; information to start planning your move. 

Home Selling: What Kind of Showing Was It?

One of the most frequent calls from homeowners to their agents is about the listing’s inactivity due to the lack of showings. The homeowner commonly believes that the home is shown only when a buyer walks through the house with an agent.

Today’s buyers are more sophisticated than in the past due to the abundance of information available to the public on the Internet.  There are seemingly inexhaustible sites with homes for sale, valuation estimates and virtual tours.  There are extensive mapping sites with satellite images, traffic conditions, entertainment, shopping and other points of interest.

There are actually three legitimate types of property showings.  A knowledgeable buyer can view a home for sale online and make a reasonable determination of whether the home will fit their needs. Occasionally, buyers will drive by a home to get a feel for the home and also the neighborhood which might cause them to eliminate any further examination or consideration.

The third type, the physical showing, certainly gives the buyer the opportunity for the closest scrutiny but is generally reserved for properties that have passed the inspections of at least one other type of showing.
Sellers should be aware of the different types of showings and that a sales agent’s job is to help the buyer find the right home. The listing agent’s job is to market the home so that the right buyer finds it either through their own efforts or that of the buyer’s agent.

Communication is crucial to the success of the selling process. Real estate agents need to know what's going on with their listings and let their seller clients know what's going on in order for them to make the right decisions moving forward. If a property is getting lots of activity on line but few or none are resulting in visits to the house it means there is a disconnect between what the buyers expect to see for the price and what the photos and description show compared with other properties.

As a listing agent, I always provide to my clients. For online views I subscribe to updated service on Realtor.com, Trulia, etc. and can share the number of times the listing showed up in a search as well as the number of times someone clicked on the listing for details. For live showings, I personally follow up with each agent and share the feedback with my sellers.
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Like every industry, real estate has changed. Please contact me if you want to talk about how people buy houses in today's world. Visit www.marilynmessenger.com to see houses for sales, view market reports for Concord, Sudbury, Wayland, Maynard, and Stow; request a home valuation, and more.

Why Borrowers Pay Different Rates

While it is tempting to contact the mortgage company/lender that advertises the lowest rates, it is important to understand that the advertised rates are what people who have excellent credit scores, solid employment, etc. get.
Most likely you will be offered a different rate, here's why.

Lenders, like any business, have to make a profit.  The cost of acquiring the funds, the operating costs to service and the expected profit margin are easily identified.  The variable in pricing is the type of mortgage and the credit worthiness of the borrower.

A loan with a 3.5% down payment is riskier than a loan with 20% down payment.  If the lender has to take the property back to recover their expense, the margin is greater between what is owed and what the property is worth on an 80% mortgage.

Credit scoring is a risk-based pricing method that allows a lender to be competitive in the market for the best loans from different borrower groups.  Individual lenders set their own levels for what they consider “A” credit which is reserved for the best rates.  If good credit is approximately 710 to 740, scores below that are considered higher risk and will have higher rates.

Risk must be assessed for both the borrower and the property that collateralizes the loan.  The borrower’s credit history and income stability are strongly evaluated by the lender but if a default should occur, the property must secure the loan to avoid a loss to the lender.



The challenge for some buyers is they are unaware of what their credit score is and how it will affect the interest rate offered by the lender.  It is to the buyer’s advantage to be pre-approved by a reputable lender prior to starting the process of looking for a home.  In some cases, the lender can actually improve the borrower’s credit score to help them qualify for a lower interest rate.

Contact me for a recommendation of a trusted mortgage professional - marilynmessenger@realtor.com
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Marilyn Messenger is a Certified Residential Special (CRS) and an Accredited Buyer Representative (ABR) associated with Andrew Mitchell and Company based in Concord MA. She has been managing the home buying and home selling for process in Wayland, Sudbury, Maynard, Stow and the town west of Boston for 20 years.

Sudbury MA - Housing Market Still "Hot" in September!

September Closed Sales: The Sudbury market was still "hot" in September; sales and

prices were both higher than in September 2012. There were 23 closed single-family home sales during September in Sudbury compared with 6 in September 2012. The median sale price was $675,000 was up from $566,000 in September 2012.

Year-to-date (through 9/30): Sales and prices for the first nine months of 2013 are up over the same period last year in Sudbury. YTD there have been 203 closed sales in Sudbury compared with 183 in 2012. The median sale price in 2013 was $675,800; it was $639,000 for the first nine months of 2012.
Current: As in most places, there are fewer homes on the market than last year at this time (10/16); there are 66 single-family homes for sale compared with 93 on 10/16/2012. List prices in Sudbury range from $409,00 to $3,495,000. See homes for sales at www.MarilynMessenger.com.
The current median list price in Sudbury is $952,000; last year on 10/16 the median list price in Sudbury was $795,000. As in Wayland, the price range with the most choices is one million to 1.499 million – there are 17 for sale. The average time on the market for these properties is 266 days; some of these sellers may be ready to make a deal; most people do not want to have their homes on the market during the winter months. Buyers, this is time to buy if you want to be in your new home for the holidays!

Condominiums (townhouses and garden-apartment style): There were 5 closed sales of condominiums in Sudbury during September; all were new construction. The median sale price was $707,000.

Current: If you’re ready for easy living, there are 13 units for sale in Sudbury compared with 14 last year at this time. Prices range from $219,900 to $849,000; the median price is $714,900. The majority of townhouses for sale in Sudbury are new construction. Tip for buyers: you are entitled to have your own buyer agent/broker represent you when you buy new construction, you do not have to go directly to the builder’s agent. In order to have a agent working on your behalf, you must have your agent accompany you to your first visit to the site even if it’s just drive through to look around. Call 508-596-3501 to find out more. 

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Want to know more? Call me at 508-596-3501 or
Request a free home valuation report
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Market reports for Wayland, Concord, Sudbury, Stow, and Maynard at www.marilynmessenger.com

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Sales Tax Holiday Weekend; So What's a Tax Stamp?

Everyone knows this weekend is the Massachusetts sales tax holiday! Who doesn’t love a tax

holiday? We hear a lot of news about federal income tax, state income tax, property taxes, capital gains tax, tax loop-holes, proposals for new taxes on everything from gasoline to computer services…taxes are always being talked about.

The tax we never hear about is called a “tax stamp”. A what? It’s the tax the state of Massachusetts collects when you sell a house. When I talk with people who are planning to sell their home about what their selling expenses will be, they are almost always surprised (and not in a good way) to hear they have to pay the state when they sell.

How much is it? $4.56 per thousand and unlike federal gain taxes that are only on the “gain” and there are standard exemptions (check with you accountant), tax stamps are paid on the total sale price whether you have a gain or not.

Example: You sell your house $550,000. The tax would be 550 x $4.56 = $3,058.00. This is the amount that will show up on the as a deduction on the sellers side of HUD settlement statement and paid at closing (before you get the proceeds.)

So that's what a "tax stamp" is! Enjoy the sales tax holiday even if you're planning to sell!
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Marilyn Messenger has been selling residential real estate  in the Wayland/Sudbury area for 20 years. Visit www.MarilynMessenger.com or call 508-596-3501 for answers to your home selling and/or buying. questions.

Mobile Office - Favorite Apps

As a REALTOR, my clients expect me to be able to provide services from wherever I am to wherever they are. The days of telling people to wait until I get back to “the office” or telling them they need to scan, print or fax documents, are so yesterday. They don’t have scanners, printers or fax machines when they’re at home or on vacation and that’s when real estate happens!

If you run a business then like it or not these electronic devices are becoming your office too.

Here are a few apps that will run and sink multiple devices (smartphone, IPad/tablet, laptop, desktop) and store everything in the Cloud so you can access you files from anywhere. Using them enables me to provide great service while keeping my business organized and productive and I know they will help you with your business too. BTW, they’re free!

1.       Evernote: take notes, record voice notes, keep client files organizes, share documents and PDFs that anyone can open, take photos. You email directly to your files (Evernote calls them notebooks).

2.       Stitch: helps you mark up and edit photos and PDFs – the other day I emailed a PDF to a mortgage underwriter to show her where the town inspector signed off on a permit. The scanned copy that I was sent was not clear and the recipient could not see where he signed. I used stitch to draw a red circle around the signature and we were all set. No printing or scanning…

3.       Docusign Ink: my clients think it’s great to be able to create their signature with their finger or stylus right on the IPad. I can also circulate docs for email signatures. No need for printers or scanners. The documents are clear. The signatures are legal and secure.

4.       IBooks – View a PDF as a presentation.

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Marilyn Messenger, a Certified Residential Specialist serving Concord, Wayland, Sudbury and the suburbs west of Boston, has been combining cutting-edge technology with personal service to the make the home-buying and selling process easier and convenient for 20 years. Visit www.marilynmessenger.com for more. Connect with Marilyn’s Real Estate profile on Google+.

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Get Your Offer Accepted

As the market shifts from a buyer's market, it's good to know how to improve your chances to have the seller accept your offer.

Once you decide on a home, don't waste time; write an offer and submit it as soon as possible.

Competing with another buyer happens more frequently than you'd expect. Multiple offers are a seller's advantage but here are some tips to level the playing field:

• Realistic offer - don't give the impression you're trying to "steal" the property. Ask your agent for comparable sales that can justify your offer.
• Pre-approval letter - this satisfies seller's biggest concern that an unqualified buyer will unnecessarily take the home off the market and the seller will lose other opportunities.
• More earnest money - it shows you're serious and makes the seller feel like the contract will actually close.
• Minimize contingencies - from a seller's standpoint, each contingency is one more reason why the sale won't go through. They feel the home is "off the market" and they're in limbo.
• Shorten inspection period - your buyer agent can help you set a reasonable date but let the seller know you're willing to close prior to that if possible.
• Write a personal letter to the seller telling them why you want their home - this can be the emotional connection to the seller that makes the difference in you getting the home.

A seller wants to feel confident that the offer they accept will actually close so they can plan for their next move. Following tips like these can definitely affect negotiations and help put together an offer that is more likely to be accepted.

Note: The number of homes for sale in Wayland, Sudbury, Maynard and the towns west of Boston is the lowest it's been in years. Click here to stay updated about new listings and price changes. Contact me to start planning your move.

Rent or Buy? Must Ask Questions

Whether you should buy or rent a home depends on your wants, needs, priorities, short and long term goals. Given the option, most people still prefer to own, especially these days when rents have gone up and mortgage rates have gone down. The decision is not only financial, but in fact, most people buy for quality of life reasons.

Here are some must ask questions to answer if you’re trying to decide:

1)      What are your short and long term plans?

2)      What type of house do you want?

3)      What community do you want to live in?

4)      What is the upfront cost?  Down payment that goes toward the purchase price vs. security deposit, first and last month rent, rental agent fee.

5)      What is the actual after tax cost?

6)      How often do you want to move? A landlord can decide to sell the property at the end of your lease term end do you want to move after a year? What if you have children in school and there aren’t any rentals in that school district?

7)      Do you have a pet(s)? Many landlords do not allow any pets.

8)      How important is control over your living space?

9)      Do you like to decorate? You can’t change a rental; and why would you want to spend money on someone else’ property?

10)   How do you feel about paying your landlord’s mortgage/expenses, building some else’ wealth?

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