More about Merrimack Valley Real Estate

Merrimack Valley Real Estate Blog Moved

This will be the last post for Merrimack Valley Real Estate.  I have moved the blog to a different a hosted Wordpress site for easier usability.  Please visit our new format!!

 

Why is a Short Sale better for me than a foreclosure?

I have written past articles about why you should consider a short sale over a foreclosure. Lately, I have been on a few short sale appointments where the home sellers feel if they are going to lose their home anyways why bother with a short sale instead of a foreclosure. So I thought it was worth reiterating why a short sale is usually more beneficial to a homeowner than a foreclosure.

There are 2 reasons that a short sale is better than a foreclosure:

1. Credit Retention- A short sale will typically impact your credit score less than a foreclosure.  There are definitely many factors that can effect how your score will be impacted in a short sale.... unfortunately many times there are other credit issues other than just the mortgage.  In a short sale, the debt is usually reported as settled.  Also, when looking for certain types of credit, even if your score is high, the mere fact that a foreclosure is reported on your credit report will prevent you from receiving certain types of credit.  In a short sale, many institutional loan products will be available to you in as little as two years vs seven years for a foreclosure.
2. Controlling the deficiency judgment- Whether you do a short sale of a foreclosure, you may have to deal with a deficiency judgment.  In the state of Massachusetts a bank has up to two year to file for the deficiency and up to 20 years to collect.  They can garnish wages, attach future assets and so on.... In a short sale, many times the right for the bank to pursue a deficiency judgment negotiated right off the table.  You do not have that option with a foreclosure.  Even if in the short sale the bank retains the right for a deficiency judgment it could be for less than what it would be in a foreclosure.  Don't forget you have to pay all the costs associated with the bank trying to collect the debt.

With that said, the past several months my short sale team has closed on approx. 15 short sales.  Out of the 15 short sales, 14 of the short sale properties had the deficiency judgment negotiated away.  The bank gave up any future claims with the seller.  1 of the short sales a second mortgage retained the right to pursue a deficiency judgment, while the first gave up that right.  So the deficiency judgment was drastically reduced in this situation.

Don't give up so easily, what you decide today can impact you for many years to come.

 

Should I Short Sale My Home

Avoid Foreclosure- Know your options including a short sale

Why a Short Sale?

Free list of non-profits for homeowners facing foreclosure in Massachusetts

 

If you have missed mortgage payments and do not know what your step is call me.  I can explain the different options to you and help you decide what option is best for you.  Of course the call is confidential and of absolutely no obligation.  Call Kevin at 978-360-0422

See what a recent client had to say!!

"Thank you so much for helping us sell our home during such trying economic times.   Your expertise in short sales and knowledge of the real estate market was instrumental in getting three offers on our home the first day it hit the market!  The offer accepted was more than the asking price!  You did an outstanding job in going the extra mile when any issue arose. 

 

We can’t thank you enough for giving us your objective opinion numerous times and guiding us through contract negotiations and the closing process.  You truly have the client’s best interest at heart from the moment you meet them until the job is done!  We HIGHLY recommend you to anyone looking for the “BEST” in the business to sell their home!

 

Thank you again and we look forward to getting together with you soon!"

 

 

 

 

 

Stay or Don't Stay During a Short Sale?

A question I receive quite often from a short sale seller is should they move right away.  First off you need to do what is best for your family.  But with that said, It is best if you stay in your home while going through the short sale process. 

There are several reasons that make it important to stay in your home during the short sale process.

• Usually an occupied home sells better than a vacant home.
• The home will be kept up, lawns mowed, gardens weeded and any maintenance issues taken care of.  Abandoned properties deteriorate quickly.  One big problems is pipes freezing.
  
• If you leave the home, the bank will consider it abandoned and take the steps to secure the home and could accelerate the foreclosure process.

What you can do, is start packing.  Pack everything but the bare essentials and keep everything neatly organized in a garage or basement.  You will eventually be moving anyways.  Starting the packing process early will prevent a lot of chaos later on as well as make your home easier to show.  You generally will have a minimum of 30 days to move but will generally have a good sense of when you should start looking for another place to live about 60-90 days ahead of time.

If it all possible stay in your property during the short sale process.  It will help expedite the short sale and prevent a myriad of headaches.

 

Should I Short Sale My Home

Avoid Foreclosure- Know your options including a short sale

Why a Short Sale?

Free list of non-profits for homeowners facing foreclosure in Massachusetts

This post is provided by Kevin Vitali of EXIT Group One Real Estate.  If you are facing foreclosure and don't know where to turn call Kevin.  Kevin will explain your different options that are available to you and help you decide which option is right for you and your family.  Call 978-360-0422.

 

Open House- North Andover Townhouse- New to Market

3 Bedrooms, 2 Full Bath, Approx. 2000 sq feet

Meticulously maintained townhouse. This townhouse has it all... size, location and condition!!

Many recent updates including kitchen, baths, refinished floors and much more.... move into this library area gem and not worry about a thing.  Quick walk to downtown!! Rooms are spacious and there is a nice flow through the living area.

The kitchen is new with tons of room including a great eat in area. Have your own outdoor space including a large deck as well as a fenced in yard.

New Kitchen, New Baths, New Roof and much, much more.....

Only 269,900

Open House Sunday September 5th 12-2pm

61 Ayers Village Road in Ayers Village is Sold! Successfull Short Sale!!

Ayers Village, Haverhill  -  The colonial at 61 Ayers Village Road has been sold.

Property information

Many time I am asked by buyers and real estate agents that do not normally engage in the business of short sales, is how much does the seller owe on the home or what is the deficiency that the bank is taking.  Of course the question is asked because they the the larger the deficiency the less likely that the bank will accept an offer.  NOT TRUE

The bank is not so concerned with the deficiency balance as much as they are about the price of an offer as compared to fair market value today.  My short sale team has successfully negotiated deficiencies that are more than 50% of what is owed on the property.  The bank knows in today's market that they can only get so much for a home.  What is owed is not a huge consideration for the bank.  The banks are more concerned with what is fair market value today and how close can we get to fair market value.

If you are a seller that is under water on your home and don't know where to turn, call Kevin at 978-360-0422.  He will explain all of your options and devise a plan that is best for you and your family.

Townhouse For Sale in Merrimac

Private yard!!

• 1,164 sq. ft., 1 bath, 3 bdrm townhouse - MLS® $185,000 - Taste, Stye and Charm

Merrimac, Essex County  -  Taste, style and charm abound in this not your "cookie cutter condo". Approximately
14,000 square feet of exclusive use yard!! with garage/storage shed Rare opportunity to have your own private yard with a condo!! Tons of living space as well as 3 bedrooms. Completely renovated around 2000. Deck off master bedroom as well as off the kitchen. Kitchen is spacious, light and bright, Minutes to down town Merrimac as well as route 495. No monthly condo fee!!  Property is a short sale and is subject to lien holder approval acceptable to the seller.

View all the photos

 

 

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This post was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422.

I pride myself in the quality of my work while helpingbuyers and sellers make dreams come true.

Real Estate Services in the northeast Massachusetts, around the Merrimack Valley, Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury

 

 Information on Foreclosure and Short Sales

Should I Short Sale My Home

Avoid Foreclosure- Know your options including a short sale

Why a Sort Sale?

Free list of non-profits for homeowners facing foreclosure in Massachusetts

 

Pricing it Right- Understanding How Buyers Think and Search for Homes

Pricing your home right is 70-80% of the marketing of your home.  No amount of marketing will sell an overpriced home.  The right price should generate showing activity of 12-20 showings in a 3-4 week period.  With-in 12-20 showings a properly priced homes will receive an acceptable offer.

Lets look at how the different parties generally view the value of a home for a given real estate market.

Sellers want as much money as possible and it is easy to overvalue their home based in inaccurate data or lack of data.  Buyers tend to make decisions based on lack of data and fear of over paying so they try and pay as little for a home as possible.  As a seller you can ask any price you want for a home, but you need a buyer that is willing to pay that price to get your home sold.

One thing sellers always say when their list price is over priced and they are not receiving many showing and no offers is,  Well they can always make an offer.....

The problem with that mentality is the farther your price is extended over the fair market value of the home, the less likely the right buyers are viewing your home.

It is important to understand how buyers think and choose properties to view with their agent.  Most home buyers are truly looking in a $50,000 price bracket.   Say we have a home buyer searching for homes in the $300,000 to $350,000 price bracket.  What are they really looking for?  Hoping to find a 350,000 to 375,000 home for $325,000.  So they are going to choose homes that best suit their needs in a given price range, than call their agent to schedule a showing.  Remember, with the internet, most home buyers are choosing the homes they view!!  It is important to remember that the home buyer, viewing property online, usually will stop their home search on the quarter marks  25,000- 50,000- 75,000 and so on.

 

So, say all the data points to your home being worth $315,000- $335,000 and you list for $379,000 hoping you will find that one buyer that will pay more than fair market value for your home.  What happens? 

Most of the true buyers for your home will never see your home!! 

Lets repeat that.  Most of the true buyers for your home will never see your home!!  Your true buyer is someone who's top end price they can or are willing to pay is $325,000 to $350,000.  Most likely your home will never come under their radar, because they have stopped their search at $325,000 or $350,000. 

Now your house sits on the market at $379,000, your frustrated at the lack of showings and no offers, the feedback for your home is probably poor or at the very least no one thinks your house is special.  Why? People looking in the 350k to 400k range don't want a 315k-335k house!!  They really want a 400k-to 425k house.  Quite frankly your house does not compare or compete with most of the houses these buyers are looking at.  Your home is most likely lacking location, size, amenities or condition that is expected in this price range by the buyers looking at your home.

One other thing to remember about buyers......  To put an offer in on a house, the buyers are usually emotionally involved with that home.  They do not want to start a negotiating process that they feel will not have a positive outcome.  I have had buyers like overpriced homes but they don't want to bother putting in an offer because they feel the will never get the home. 

So lets go back to that $379,000 list price.  Say a buyer does like your home but feels the price of the home is 325-335K and they are willing to pay that.  They feel they have to start the negotiations 300k or less to obtain that price...  That is a price over 20% less than asking.  Most buyers think they don't have a shot in hell to pull the deal together.... so what do they do?  They move on, because they don't want to go through an emotional negotiating process where they think the outcome will be negative.

Even in this market well priced homes are selling at asking or over asking prices.  A well priced home creates buyer interest, the greater the interest, the greater the demand , when there is demand you have buyers competing.  Competing buyers create good offers!!  If priced right you will create a sense of urgency and buyers will not want to lose out.

Pricing is critical, work with your agent for a very well crafted pricing strategy.  Proper pricing will create a shorter marketing time and produce a higher price for you than pricing high and crossing your fingers and eventually realizing that you need to lower the price.

 

 

 

 

_____________________________________________________________________________________________

This post was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422.

I pride myself in the quality of my work while helpingbuyers and sellers make dreams come true.

Real Estate Services in the northeast Massachusetts, around the Merrimack Valley, Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury

 

 

2 Story For Sale in South Lawrence

Desirable South Lawrence Townhouse

• 984 sq. ft., 2 bath, 2 bdrm 2 story - MLS® $72,500

South Lawrence, Lawrence  -  Affordable and spacious South Lawrence town house, located right on the North Andover Line. Clean and fresh this unit is ready for you to move right in. Full basement offers opportunity for finishing as well as laundry and work area. CONDO FEE INCLUDES HEAT and HOT WATER. Hop on to 495 in minutes 1.1 miles from the Commuter Rail in Lawrence. Outdoor patio for relaxation. This unit has much to offer check it out.

Property information

41 Floyd Avenue in North Tewksbury is Sold!

North Tewksbury, Tewksbury  -  The colonial at 41 Floyd Avenue has been sold.

Property information

For more information on getting your Tewksbury home sold call your local Tewksbury Realtor, Kevin at 978-360-0422

30 Market Street, Unit 14 in Downtown Arts District is Sold!

Downtown Arts District, Lowell  -  The other at 30 Market Street, Unit 14 has been sold.

30 Market Street was a short sale with a first and second loan with Bank of America (also had to negotiate with a mortage insurance company). Listed in November and closed in June. Client sells in a short sale and walks away happy.

Property information

If you have missed mortgage payments or know you will, or have received your notice of default, order of notice and don't know what to do... Call Kevin at 978-360-0422.  You have about 5 options to prevent a foreclosure on your property.  I will explain your options and discuss which options may be best for you.  Of course any conversation we have is confidential and free!!  There are reasons to prevent the bank from taking your home in foreclosure and it is important to know you do have options.

Misconception about the Declaration of Homestead

The Declaration of Homestead Act basically allows a homeowner to protect up to $500,000 in equity in their home against creditors.  The home must be the homeowners primary residence. 

I have recently run into a situation where homeowners are stunned that creditors have filed a lien against their home, and say to me"I have a Homestead on file they can't do that".  The Declaration of Homestead, does not prevent a creditor from slapping a lien on your home nor wipes out the obligation of the debt.  It does protect the equity in your home, either from your home being forced to sell or on the execution of a sale.  Your homes equity may be protected but having a lien slapped on your home can be cumbersome to be removed if you are trying to sell. (It has recently come up in two short sale situations, where creditors find out the home is being sold)

 

There are certain types of liens that are exempt from the Declaration of Homestead:

• Federal, state and local taxes, assessments, claims, and liens;
• Mortgages
• An execution issued from the Probate Court to enforce its judgment that a spouse pay for the support of a spouse or minor children;
• Building where the land is rented
  
• Upon an execution issued from a court of competent jurisdiction to enforce its judgment based upon fraud, mistake, duress, undue influence or lack of capacity
• Debts contracted prior to the acquisition of the homestead

If you are purchasing a home or do not have a Declaration of Homestead, it is a good idea to file one.  There are no down sides at all to have one on your home.  Form for the Declaration of Homestead.

 

 

Replace of Give a Credit for that Old, Out Dated Carpet....

I ran across this great article with good sample pictures.  Many times sellers want to give credit for carpets (or other items).  Personally, I always recommend you replace the carpet with a nice neutral carpet.  First of all it while buyers are choosing properties on the internet they are looking at the old ugly carpet and not realizing there is a credit available.  Secondly the new carpet can change the whole look of the room. 

In this difficult real estate market you need to give your home every advantage possible.

Reprinted from Shar Sitter; Home Staging in Minneapolis.

New Carpet or Carpet Allowance? This is a question I face when I meet with clients to do a home staging consultation or any home staging service for their home.

I find that most clients do not want to spend the money up front to buy new carpet much less have the hassle of moving all the furniture. It is easier for them to give a carpet allowance or reduce the price. I understand that but I cannot say I agree.

What I find is that many times the buyer cannot get past the ugly or worn carpet. It sends an instant message that the home is outdated or not taken care of. Plus, many buyers want "move in ready" and they can get it now with the amount of inventory on the market.

 

 

 

 

Money isn't everything when making an offer

Here is an interesting article from MSN Real Estate.  I felt this article made some good points.

I recently closed on a real estate transaction that highlighted some of the points in this article.  I had buyers who knew they were competing with multiple offers on a property.  They asked me my advise about how they should handle the offer.  Initially they wanted to receive money back for closing costs and wanted to include personal items of the sellers in the sale.   They had the cash to pay the closing costs and I also counseled them to leave the personal items out of the offer.  I also suggested that they offer full price after running a comparative market analysis on the property to determine fair market value. 

Scenario One- My buyers did end up purchasing the property but i found out after the closing that there were two offers higher than ours.   Why did my buyers offer get accepted?

1. They kept there offer clean and to the point, there were no requests for closing costs from the sellers and we kept it uncomplicated with tight dates.  Closing quicker was important to the seller as they were already retired and living in another home.
2. We had a very strong pre-approval letter from a lender that verified assets, income and credit and ran it though automated underwriting.
3. We kept the personal items out of the offer.  Selling a home that your family grew up in can be emotional.  All the other offers included personal items of the sellers and those buyers got quite adamant about wanting those items.  The sellers took a personal affront to the buyers stubborness.

At the end of the day we didn't press any of the sellers hot buttons and presented a strong offer.  Our offer was $5,000 less than the highest buut because our offer was "clean" an  The buyer and seller were both happy and received what they wanted out of the transaction.

Scenario Two A few years ago, I had a client that was looking in one town.  They stumbled upon a house that they loved and had everything they wanted.  It was also priced well and with-in a few days had multiple offers well over asking.  My clients asked my what they needed to do to get the property.  I had worked with them several times before and was very comfortable that I knew their risk tolerance and their finances.  We offered $25,000 over asking as well as removed the home inspection contingency and the mortgage contingency.  Once again, my buyers were not the highest offer but they purchased the property.  Why?

1. We removed all risk from the contract for the seller.  Removing the mortgage contingency and the home inspection contingency allowed the sellers to move forward with the contract with no risk of the buyers not performing.  The home was a remodeled turn of the century home and the seller was a builder.  We offered to close quickly and we had a sizable deposit on the property by the Purchase and Sale.  He wanted to recoup his profit as quickly as possible with as little risk.
   

This goes to show that money is not everything and you should talk with you agent about structuring and negotiating an offer.  Will this work everytime...NO.  But if you take the time to assess the situation and put your best foot forward you may just beat out other buyers.  Or, if your not in a competing offer situation you may save $1,000 of dollars.

 

 

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This post was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422.

Kevin has helped numerous home buyers buy the house of their dreams.  Kevin brings good buyer insight as well as strong negotiating skills to the table.  Let Kevin help you buy you next home.

Real Estate Services in the northeast Massachusetts, around the Merrimack Valley, Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury

 

 

How much does a short sale cost?

I receive this question a lot.  Sellers are concerned about how much a short sale will cost on their home. In a nutshell, the answer is a short sale should cost you nothing.

Most fees in a short sale are paid by the bank!! The bank allocates fees for real estate commissions, attorneys fees and general closing costs when they are running a financial analysis on a property.  In many cases, the home owners bring nothing to the closing table.  There are a few expenses that it is difficult to get a bank to pay.  Those expenses are condo fees, 6D certificates and water/sewer bills.  You need to keep those items current or it can hinder the short sale approval (though not completely impossible). If the condo association (in state where condo fees are super liens) or municipal water or sewer the bank will then consider paying theses expenses.

Be wary of firms that are offering to help you with a short sale but would like upfront fees from you.  There are many reputable short sale attorneys and real estate agents that will work on your short sale contingent on a successful closing.  Meaning they will not get paid until the property closes and if it does not close you owe them nothing. 

Kevin is a Certified Short Sale Agent and can help you though the many aspects of the pre-foreclosure.  Kevin will sit down and discuss your options with you and decide which options are worth pursuing.  If a short sale is the right option Kevin and his short sale team will help you with a short sale of your Massachusetts home,

Is the housing recession over?

I just ran across this article on Zillow.  I can't say it any better than this article.  I have felt that we are starting to see a bottoming out of home prices and home prices should stabilize throughout the end of the year.  Good News!!

Unfortunately, I believe that the housing market will remain relatively flat for the next few years.  I don't think we will be seeing any major appreciation in the next two to three years.  Again the Zillow article explains it well.  Real quick there are several factors in force.

• Foreclosures are still on the rise.  We still have several years of the foreclosure inventory to sell off that are just going into default or are not in default yet.
•  We have a large number of sellers sitting on the sidelines waiting for the market to improve to sell their home.  Some of them just can't wait any longer.
• There are still a high percentage of homeowners that have negative equity on their home and are current on their mortgage, but a financial hardship could put them in a foreclosure situation.
• The general economy is still poor with unemployment still high.

So, yes, we will see the housing recession end.... but no we will not see any significant appreciation for several years.   This is just my opinion and my position is one of cautious optimism.  Read the Zillow article.....

For buyer's this may be a good opportunity to jump into the home market.  Prices are probably near there low.  More importantly interest rates are extremely low. The thing to consider if you are buying in today's market is .......are you buying for the intermediate to long term.  Buy a home that will suit your needs for at least five years. If your purchase is short term maybe you are better off renting.

Sellers, the time to sell is the time to sell.  If you have pressing needs waiting for the market to turn around could leave you waiting a long time.  If you have the equity and you have a need to sell..... downsizing, upsizing, relocation, etc..., you can't put your life on hold indefinitely.  If you e a move up buyer you actually are better off buying in a down market than waiting for your house to appreciate.  Don't forget that not only does your home appreciate so does the purchase on the other end.  Check out this article on the economics of buying up in a down market.

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This post was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at kevin@kevinvitali.com or call 978-360-0422.

I pride myself in the quality of my work while helpingbuyers and sellers make dreams come true.

Real Estate Services in the northeast Massachusetts, around the Merrimack Valley, Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury