General Index 

Purchasing a New Home Shouldn't be an Impulse Purchase

I have a love/hate relationship with new construction.  It's easy to sell, but really complicated for the average buyer.  It really comes down to mis-perceptions by the buying community.

Here are the big four:

It's a New Home, so it Must be A Good Home

Right off the bat, we've got issues.  Not all new construction is good. Most new construction can be good, but you have to really be aware of where the shortcomings can be, and address them before that offer gets signed.  Fortunately, most towns in my area have pretty good building codes, which reduces really sub-standard construction risk.  But there are no codes for the quality of the materials on the inside, and that's where most buyers need to be careful.

Anything that goes wrong on a new construction home will be covered under the warranty

This one is usually not true either.  Most builders will make "best efforts" to right the problem.  But that's a LONG way from saying you're totally covered.  And some builders will fight you tooth and nail even for legitimate issues.  Usually, the warranties are pretty well spelled out in the Purchase & Sale, but few buyers read them closely, or think critically about problems they might have down the road.  Most of us are optimists, after all, and we want the shiny new house to be perfect, so we'll think positive.  That works, right?

At least I know what the value is of my New Construction Home

No, not usually.  You know what you paid. You know what the buyers paid before on other homes in the neighborhood before you.  But did you have an in depth discussion about the lot? Is it less nice than the comparables you looked at?  Do you really have a home/floorplan that will sell well in the future?  Shared driveways, lots with steep slopes, all of these will be impacted when the house goes to re-sale, but often times builders are able to sell these homes regardless of lot impacts.  Buyers should be very cautious when evaluating what has been purchased by others, versus what they are purchasing. It's not JUST about the house!

The Builder of My New Home Is a Great Guy, I can't Wait to Work With Him

Most of the builders I know ARE great guys.  But this is a business, and a tough one.  Builders, especially successful ones, have seen it all, and make no mistake:  they intend to make money.   They have likely been through dozens, maybe hundreds of transactions, and that experience can be used against the consumer if there's a conflict.  Many buyers don't give a second thought to buying direct, but most are far out matched in terms of experience.  Land development, construction, decorating, plumbing, landscaping, real estate law, and architecture are all very specialized industries, and to keep everyone playing fair you had best be an expert in each one if you plan on going direct.  Knowing the difference between 2x6 and 2x4 construction, or having installed a garbage disposal doesn't mean you can read a spec sheet and see the gaps.  It's hard to get the horses back inside the fence once the door is open, so be prepared before that first sit down.

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

I like posting about the Sox because:

A) Nothing like seeing your old predictions in print, right or wrong.

B) I like baseball (It's a bit obvious, isn't!)

C) It's nice to post something local, but not real estate related every once in a while.

After last nights big win against Toronto, the Sox have a look of a team poised to go to the playoffs, but the gap that remains to be covered is significant.  With both the Yanks and the Rays scuffling a bit (4 wins in their last 10) and the Sox starting to put things together (6-4 in the last 10), I'm going to go out on a limb and say they make it.  Bottom line is the Sox are getting healthier and their pitching looks like its going to go on quite a roll.  V-Mart is heating up, Ellsbury is showing signs of life (and he will make a monster difference at the top), and Pedroia will return soon.  Can't tell me that Pedroia over who ever is playing on second isn't a huge upgrade, and that's no offense to Bill Hall, who usually mans the spot, and has been the 10th man on this team.  But Hall is no former MVP, and Pedroia is a true threat to any pitcher, almost any time.

Most people would say that the Rays will be the odd team out, but I think it is possible that the Yankees could be at risk.  Although busy at the trade deadline, the Yankees really picked up a bunch of guys who probably can't help them much, and tie up their roster, reducing their flexibility down the stretch.  Lance Berkman is having a terrible year - he can only hit from the left side - relative to years past, and I'm not even sure in the brutal AL East he's a quality platoon player. (not surprised by his 2- for 20 start with the Yanks, expect more scuffling).  Granderson has certainly had some grand years, but isn't the threat he was.  And pitching wise, they've had some guys go cold this year, real bad.  If they get into a stretch where they NEED wins from Vasquez, Burnett, and Hughes, I'm not sure they'll answer the call.  Rivera, Jeter, Petite, and Posada are all playing well - despite their AARP status - but is it the same team if even ONE of them goes down? Or Two?  No one wants anything to happen to other players, but as players get older, they tend to tweak stuff, if not outright break it.  Or they could just get tired, it's a hell of a marathon at that age.  Even if everyone stays on the field, close looks show the Yanks aren't the same team.  Jeter's OPS of .737 is first in the AL (qualified), and sixth overall, but this is a player who has a CAREER OPS of .840.  So, Wow.  Posada and A-Rod aren't the threats we're use to seeing with solid (if unspectacular) OPS in the low 800s (.812 and .808 respectively).  And lets try to remember the Yanks play in a bit of a band box in the new stadium (Thankfully, not like last year, but it's no pitchers park...)

So that's the call:  Sox get in, someone else gets the WC, but I think the division is close at the end: No more than 2 games difference top to bottom.  I exepct the Yankees to come back to the pack.

• Marlborough, MA has 145 (vs. 154 in last report) single family home listed as Active
• Marlborough, MA had 131 (vs. 123 ) single family sales in the last 6 months, and 28 single family sales last month
• Marlborough, MA had 16 single family homes in pending last month
• Marlborough, MA has an Average Market Time of 103 (vs. 94 days ) for sold properties
• Marlborough, MA  has an Average Sold Price of $305,000 for sold properties

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Understand your own definition of safe

Not everyone has the safe definition of safe. Some folks may look at Car theft as an acceptable risk, while others may feel that it is not. So first off, understand your own definition of what's safe, what's acceptable from a safety perspective, and then you're likely to have a more positive dialog when answering those questions. Don't assume that the person you're talking to has the same definition that you do, it's a good idea to ask about the numbers that are likely tracked. Auto Theft, Non-violent Crime, Violent Crime are typical categories that you can talk about with any resident expert. You can usually find them at your local police department.

Find Experts to Talk about Crime Statistics in your New Neighborhood

Local Prices may be an Indicator of a Safe Real Estate Purchase

Do Good Things Today! Matt Heisler

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• Grafton, MA has 110 single family home listed as Active

• Grafton, MA had 89  single family sales in the last 6 months, and 11 single family sales last month
• Grafton, MA had 3 single family homes in pending last month
• Average Days on Market for Solds: 149, 50 % under 95 Days on Market

To enter my contest to win a copy of "Real Estate Investing Made Simple", by M. Anthony Carr, simply leave a comment/question at the end of this article.  Each month, we will choose a new winner at random, and contact you through your comment if you are the winner.

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

My buyers this year are universally not trying to get the home buyer credit; most of them think it would be nice to have, but this late in the game don't want to be completely dictated by the artificial stop date.  They do all agree that:

1) It's pretty tough to find a good house in your price range

2) Many attractive properties are moving so quickly, they're devoting a lot more energy than they expected in finding them.

What's a buyer to do?  Most of my folks will probably let the credit expire, and if there's a lull (and I think most of us expect some kind of lull, they'll probably take advantage then.  But there are other options:

1) Think out of the box.  There are some great properties out there - but because they aren't the lowest risk options, buyers are taking a pass.  Probably a mistake!  These properties have great utility, good-to-great pricing, and will make good homes for folks.  Right now, the market is overlooking these properties, but that won't last for ever.

2) Look down your price range, and build some elbow equity.  Same notes here.  The market is "chasing" the same properties, but there are values to be had.  With most contractors still looking for business, it could be a great time to remodel the house you want, and build some equity that way.

In housing, like other investments, its good to be a contrarian!  Don't follow the herd when you can lead the way.

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I had two conversations about the fall market this week, so that's probably prompting this entry.  But if you're reading this, you clearly have to buy, but if you're buying AND selling, let's get this out of the way:  Price-wise, the season makes little difference.  Unless you're willing to do temporary housing (which comes with it's own set of expenses), it rarely makes a significant difference if you buy or sell in the Spring, Summer, Fall, or Winter. Any advantage you gain in buying is neutralized when you're selling, so basically its a wash.  But if you are ONLY buying, then keep reading.

The basic premise behind when it's a good time to buy is very simple.  You want to be buying when there is the least competition.  Let's face it, if as a seller, I think that this is the last and only offer I'll get for a while, I'm more inclined to deal with it.  There's no better spot to be for a buyer than alone on the table!  So when is the least competition?  Well, the market moves in strange ways, but the best times for a buyer are listed below, generalized over a typical season, and ranked from Worst to Best.

12. June

11. May

10. April

9. July

8. March

7. January

6. September

5. February

4. October

3. December

2. August

1. November

December is actually the weakest month for buyer traffic- poor weather, and lots of competing events for peoples time contribute - but the selection is poor since many folks pull their homes from the market for the month, just to re-list in January. August typically has decent inventory - November too - but no traffic (don't ask me why, but August is usually very slow.)  Again,  there are plenty of years where this ranking doesn't bear out exactly, as consumer confidence, mortgage rates, and other factors can move the activity around, but by and large, this is a good pattern.

An additional caveat:  If you're buying condos, they tend to be weaker in the spring, and stronger in the fall.  I think that's because a lot of leases end in Aug/Sept, and condo buyers tend to be first time buyers who are more likely to purchase condos in this area.  Spring does tend to bring more competition, simply because there are more entrants in the market, and they are more likely to chase the preferred housing that is on the market - weakening the buyers position.

So, if you're out there buying, don't put your search on hold. Now is the time to be looking for your deal!

*All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Activity In Natick, Massachusetts

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