Whats My Massachusetts Home Worth?     Find Out Now

Competition is tight among home buyers.  Housing inventory is low, interest rates are low and home buyers are competing against each other for desirable homes.  It is the perfect atmosphere for the ever dreaded bidding war! 

CNBC reports that over one third of all homes for sale nationwide went over asking price.

Lets take Tewksbury MA.  The Tewksbury Real Estate market shows 153 properties sold in the past 6 months.  ( I removed all new construction that sold as they skewed the numbers even higher)  What does the data show?

  • All the homes sold for an average of 1.6% below the asking price of the homes for sale.
  • 35 out of the homes 153 that sold or 22.8% sold for over asking.
  • 18 out of the 153 homes that sold or 11.7% sold for the asking price.

Win the Bidding War

Get your financial house in order-  Work with your real estate agent and mortgage broker and get a solid mortgage pre-approval before even looking at homes.  A seller wants to know you can close.  Buyers offers with weak pre-approvals will automatically be thrown out of the mix.   A savvy listing agent will ask to call your mortgage broker to assess how thorough of a job the broker has done to issue your mortgage pre-approval.

Come in Fast-  Develop a methodical strategy to find the new homes that will suit your needs.  This does not mean bouncing from website to website.  I means be highly focused and working with your agent and the tools they provide for you to find the homes quickly.

Come in Strong-  How you handle yourself and your initial offer will send a message to a seller and the listing agent.  You want to stand out and show the seller you want the house not only in what you offer but also how you handle yourself.   A seller does not want to tie themselves up with a nit picky, wishy washy buyer, especially when they have a few buyers to choose from.

Use and Escalation Clause-  An escalation clause states you will pay x amount more dollars than the next highest offer up to x amount of dollars.  it takes some of the guesswork out of the bidding.  I have been highly successful using an escalation clause when I know we are in a multiple bid situation.

In this real estate market, you cant avoid multiple offers on good homes.  Don’t shy away from a multiple offer situation, just put your best foot forward.  If you don’t get the home, you know you did the best you could.  You alsojust might win the bidding war and get the home of your dreams.

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This article, Win the Bidding War Against Other Home Buyers, was written by Kevin Vitali of EXIT Group One Real Estate.  If you would like buying or selling a house call me at 978-360-0422.

 

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Should I buy or rent my next place

Many renters are asking should I buy or rent a home right now.  As renters are looking to renew leases or seek another place to live they are starting to realize that it may be cheaper to own.  A recent study by Trulia shows that nationwide it is 36% cheaper to own nationwide.

Here in Tewksbury Massachusetts and the surrounding areas renters are starting to realize that owning is probably cheaper than renting.  I did an analysis in the recent past of two identical condos in Tewksbury MA Real Estate market.  One just closed and one was recently rented.   The rent vs buy analysis clearly showed that buying was a better option.

I recently worked with a buyer in Lowell Massachusetts who was interested in the downtown Historic District.  Rents were approaching 1800-2000 a month for what they were looking for in a home.  A mortgage, including condo fee and taxes was just under $1600 for similar units!!  In an excerpt from the analysis of this exact scenario break even was 7 years with the rent being $1,082 a month…. and far quicker at $1800 a month.

Should I buy or Rent

What could you do with a couple several hundred dollars a month?

Today’s real estate market only reinforces that buying is the the better option if you are asking if “Should I Buy or Rent?”

Do you want to see for yourself?  Here is a great Rent vs Own calculator.

Other Reasons it is a Great Time to Buy

  • Interest rates are still at historical lows.  It is a great time to lock in that 30 year fixed mortgage.
  • Plenty of low money down or even some no money down programs available.
  • Owning a home provides stability.

Bottom Line

If you feel personally this is now the right time to buy a home, buying a home may make a lot of sense for you financially.  If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to discuss plan of action to get you into your first home!  I can make buying your first home as painless as possible.  Call me at 978-360-0422.

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UCC Solar Panel Advisory

UCC Solar Panel Advisory

Previously I have written an article about solar panels, Selling Your Home with Solar Panels.  Before signing a lease and installing solar panels or having a lease agreement transferred to your name, their are a few things to consider.  One point that was brought up  in this article, is that most companies will file a lien or an encumbrance against your home.  Register John O’Brien, from the Southern Essex Registry of Deeds has issued a […]

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48 Straight Months of Home Appreciation

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Whats happening nationwide in the real estate market is also reflected in the Massachusetts real estate market.  The infographic below shows what has been going on in the real estate market. 46 straight months of home appreciation.  This is comparing the same month year over year. More units are sold per month over the same month the previous year. Inventory is quickly drying up. Financially distressed homes are decreasing. Given the length of improving conditions, […]

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Andover MA Short Sale Closed

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I have successfully closed another Andover MA Short Sale. While the market has picked up and homes are appreciating there are still homeowners that need to short sale their home.   Homeowners that need to do a short sale can be found in Andover or any number of surrounding communties in Essex or Middlesex counties. Short sales can be very complicated transactions and requires a short sale agent that has experience.  Experience is crucial in […]

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Maximize Your Home Search

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Learn to maximize your home search. Inventory on homes is very low.  Market times are down. There is a lot of competition among home buyers.  The good properties coming on the market are going in the first few days of hitting the market. If you are serious about buying a home, you need to be aware of these homes immediately and be scheduling a showing the first day or two.  Here are a few tips […]

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Podcast- What is Wrong with Zillow?

I have been a frequent guest on Keeping it Real Estate on North Shore 104.9.  The show airs every Saturday at 9 a.m.  One of the topics this week was “What is wrong with Zillow”. You can listen to this past Saturdays podcast: So What is wrong with Zillow? Zillow is wildly popular among home buyers and home sellers.  It definitely has some good information to impart.  So what is wrong with Zillow? Zillow is […]

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The First Showings of Your Home are Online

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The past 10-15 years have definitely changed the dynamics for home buyers and home sellers.  The primary difference is the internet.  What home sellers need to understand is that the first showings of your home are online. What do you mean The First Showings of your Home are Online? I have been a full time agent since early 2002.  By 2005 most home buyers were using the internet as their main tool of identifying homes […]

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Good News for Home Sellers, New Home Buyers Entering the Marketplace

TransUnion is estimating that millions of “boomerang buyers” will hit the real estate market in the next several years, providing good news for home sellers sitting on the sidelines. TransUnion defines a boomerang buyer is a homeowner that experienced a financial crunch and may have lost a home to foreclosure or short sale, had serious late payments on their mortgage, or went through a loan modification. These homeowners have not been in a position to […]

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5 Reasons not to Hire a Family Member as Your Real Estate Agent

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So I just arrived back at the office from a showing where I heard, I have a “family member who is a real estate agent” they will be handling the transactions.  This article discusses 5 reasons why you should not hire a family member as your real estate agent. This woman spent a half an hour on the phone with me saying her and her husband are downsizing and they don’t know where to start.    […]

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