General Index 

Buying investment property can be for all sorts of reasons. Tax related, Estate related, and for Income are usually at the top of the list. This post will focus on key steps for buying investment property for Income reasons.

Income and Cash Flow are the Same for Investment Property

For all intents and purposes, Income and Cash Flow are talking about basically the same thing. Some might say that cash flow is "gross cash flow" and income is "gross cash flow - expenses", but for the purposes here I'll be using the two interchangeably. The reason is that if you're looking for income from your investment property, you're looking for cash in your pocket, not some theoretical number.

How to Find Investment Property for Income

Let's assume you can find your way to a website where most Income property is that is for sale is listed. To find the best investment property that generates cash, you need two basic numbers to start off, and then you need to work through some additional numbers to refine your estimate. The two numbers you need at the start are rental income and the mortgage payment you would need to pay for that property. The easiest number, and the most likely to be accurate is the mortgage payment. If you're buying an investment property with cash, than this number is zero, and virtually all rental properties will be cash-flow positive, so the real question will be how much will they be cash flow positive? But most investors, especially researching this topic, will be looking to borrow money to do so. Most mortgages on investment property at this time will require a 20% down-payment, and rates will vary. So finding out what your rate will be, and knowing how much cash you'll require to put up are key steps. Once you have that numbers, I find it's useful to plug the numbers into a spreadsheet (If you aren't spreadsheet friendly, I can e-mail you one. Just e-mail me and ask!), so that you can quickly calculate how much each property will cost on the mortgage side. The next easiest number is usually rents. Most rents are published with property being marketed, but you do need to use your own nose here - many landlords are tempted to advertise "ideal" rents, in order to make their property look better on paper. Also, some may be honest about rents they are charging - and perhaps they could get far more if they wished. Either way, you'll want to put a ball park number in the spreadsheet to understand your gross yearly rental income.

Additional Expenses when Screening Investment Property for Income Projections

Taxes are a big ticket item that's easy to validate and plug into the spreadsheet. Once you have those three numbers, you have the basis for coming up with which properties will generate the most cash, but now you'll have to start digging. First, you'll have to look at the top properties on your list and validate that the rent figures you're using are accurate. You can't get top rents for building with unpopular locations, or units that have wacky floorplans or unpopular styling. Also be on the lookout for any work that needs to be done immediately, and you need to factor that into your figures in some way. An investment property that costs $200K but needs 20K of work is really going to cost you $220K, and that will change your figures some, and affect your cash on hand as well. Lastly, look for shared infrastructure, especially heating systems, that most states require the landlord to pay for. If a two-family shares a hot water heater, the landlord has to "include" heat into his rent price, and although that likely means you'll get more in rent, it often won't be the full amount you'll be spending. Water bill estimates can be especially valuable. (This is why buildings with separate utilities are highly desirable - no risk for the Investor, as the tenant will handle those bills with the utilities directly).

Calculating Rough Cash-Flow or Income Numbers

With all the major expenses and income refined at this point, you can now get a good idea of the cash that the income property will generate. Take your adjusted gross rental income, and subtract the mortgage, taxes, common expenses, and insurance. It can also be a good idea to add in a vacancy estimate if rents in the town your buying in are soft. If your numbers are negative, move on! Betting on rising property or rent is not a good strategy for all but the least risk-averse investors. With the income values on hand, its time to reflect on some truisms on Investment Property.

Additional Cautions when Buying Investment Property for Cash-Flow

The best properties ON PAPER may have risk elements that you're not considering. Check carefully. If the property is in a blighted neighborhood it may be difficult to sell when you're ready to move on. It may have a clouded title, a failed septic, or any one of a thousand things that may get you after you've bought the property. If it's in an area heavily populated with other investment property, when rents get soft they may go lower quickly. In an area that is less populated with rental property rents tend to be "stickier", and less sensitive to the competition. It can be harder to find those properties, but it is often worth the looking and waiting, as they can be less risky. There's no hard and fast rules here, different strategies can all be successful, but I often find that people looking for Income properties have their own levels of risk tolerance, and not all properties are suitable for their goals.  Also note that if there are more tenants to deal with, it'll be more time/expense on your part replacing them.  Lastly, if buying a large building with many units, build in higher vacancy rates if the units are all the same layout, especially if they are unpopular layouts, like studios.  If you have three studio tenants leave in a month, it's hard to find three new ones than it would be for a one or two bedroom unit.

The departure of Francona and now Epstein has been discussed, talked about, and dissected ad nausem at this point, by lots of others but me, so I'll try to use my space here to point out some things which have been, ahem, under emphasized by the local media.

Were Changes Needed at the Red Sox?

Francona was a very successful manager. But, despite his success, he wasn't going to be here forever. His health alone and the constant stress in this market had me wondering aloud two years ago how long he could keep it up. He was very good, but the game's managers are getting much more consistent, and with the "unified" team work approach that I expect the Sox to continue to use, anyone they pick will probably be able to do a very good job. As good as Francona? Well, we'll see. As good as Grady Little or Jimy Williams? Much better than those guys. And the Sox still have a very good team - good teams have a way of making managers look smart. I enjoyed, at some level, watching guys like Grady Little (who would often make boneheaded moves night after night), and getting wound up about it. With Francona, there was hardly ever a move that didn't have a good reason behind it. There were warning signs his tenure might be ending for years, but going to the playoffs makes most people forget those things. To wit:

2 of the last 4 Red Sox teams have scuffled badly in April.

2011: 11-15

2010: 11-12

and 3 of the last 4 Red Sox teams have scuffled badly in September, mostly due to injury.

2011: Do I even need to pour salt in that wound?

2010: 13-14

2009: 15-13

This shows a long-term trend of something - struggling in the division, or perhaps not being ready when leaving Spring Training, and not being able to compete in September is really an issue. Injuries have been a problem, but why are they such a problem for the Sox? That needs to be fixed. On paper, I would argue that the last three years the Sox have been the best team in the division on paper - and they have no division titles to show for it. Again, this is not about September 2011, but this reflects a trend that has been true for years. Change was needed.

Similarly, Epstein, well known to despise the media attention that the GM of the Red Sox gets, got a better opportunity, and a chance to run a baseball team with 1/10th the scrutiny. Of course he took it. Bashing Epstein is ridiculous. Anyone who looked at today's team and compared it to the 2003 team would be blown away at the improvement at virtually every position. And that's not all, he also resurrected the farm system, stockpiled draft picks, and did it all while not blowing the budget. And for those who are out there saying it's easy cause he's had all this money to spend, that's just ludicrous. There are more teams spending more money than ever before. I think in 2004 the Sox were #2 in payroll. In 2011, they were third. They are $40 Million, or 20% behind the Yankees, and anyone who thinks that's not a huge difference I ask you: Would you like a 20% raise tomorrow? Or does it make no difference? Thought so. Forty Million, in terms of players, is TWO pitchers at $20 Mil/year, and those would likely be aces on most staffs. So, it's HUGE. The media knuckleheads can nit pick all they want, Epstein has produced, from top to bottom, a fantastic system, sold tickets, made money for the team and WON. Are Lackey and Crawford going to live up to their deals? No. but no one bats 1.000 in that game. In 10 years, he's only had one untradeable contract, and that's an accomplishement in itself.

One last comment: The Beer and chicken news story is like the junk food it describes. Filling, yummy, and totally bad for you. Everyone is yapping like this is why they fell apart in September. What a load of SH**. It might be, like 2%, of what happened. It's not worth talking about.

Enough about the past, Here's what Cherington's Future Will Be

Now that I wrapped up predictions for last year, time to go out on the limb this year. I reserve the right to tweak this in December, but here are the big pieces.

1) Bye Papi! The Sox will try to sign Papi. But to a one year deal, and he'll get two somewhere else (Angels, Baltimore, and Rays are top contenders. Yankees aren't, they have no room for a DH). The Sox won't try very hard because....

2) Ryan Lavarnway is ready for the majors. He needs work defensively, but he needs at bats at the top level. The minors are crowded with catching prospects, so they need to move someone up or out. This guy is a moose and he can hit. He can't catch full time - he's not ready - so he'll need to DH to get at bats. He needs 500 AB's next year. I think he'll get them. But if he's catching.....

3) Bye Tek. There could be a situation where they keep three catchers, but I don't see it. Roster is too small, and if Lavarnway keeps improving, they'd have to cut ties with Tek mid season, which is not very classy. Personally, I hope the Sox pick him up as a specialty coach - both Salty and Lavarnway still need a steady hand, and he's been great at game plans with pitchers. But that's not likely. Without a doubt though, the Sox just can't deal with another woeful September from Tek, and they have other options.

4) Welcome Kalish! This could be a bit premature, Kalish is very tradeable, but he's ready to man RF for the Sox. If he does get traded, it'll be to get more right-handedness on the roster.

5) Beckett doesn't get traded. Pure mindless drivel.

6) Lackey doesn't get traded either. In a bizarre way, fans got some good news yesterday. Lackey's been pitching with a ruptured tendon in his elbow. Although it means we have to replace him on the roster, fans don't have to watch him - getting some much needed space between him and them - and there's a good chance that he'll return to the 4.5 ERA pitcher who eats innings. The Sox need that guy in 2013, hopefully he'll be back. He has NO CHANCE of being traded. His contract is too expensive, no one is going to pick up someone until they know they can pitch after Tommy John, and he stunk last year. He's a Sox, for at least two more years (and then his contract is trade-able, as the Sox have an option for another year at the league minimum.)

7) Crawford doesn't get traded. Too soon to fold on this hand.

8) Wakefield is a maybe. The Rotation is thus: Beckett, Lester, Buckholz, and perhaps Dice K after the all star break. That means the Sox are woefully thin at pitcher. If they sign some decent free agents, than he's gone. But if they don't get enough arms he's cheap enough to roll the dice with. They're going to have to get creative here....

9) Bye Papelbon. He's a quality closer, had a magnificent year, and someone will offer him 3 at 12, or four at 10. Sox won't tie up that capital in a closer. They can't.

10) Bard gets a crack at the rotation. I don't think they'll find enough help in free agency. I don't really think a worthwhile free agent starter is out there, but the Sox will sign one or two, as they can't count on Dice K for anything at this point. But they are still thin. I think the Sox know that Aceves, as great as he was down the stretch, doesn't have enough "stuff" to get through lineups twice. But Bard does, and he's good enough, with a strong enough delivery, to try in the rotation. He might even be better, as he learns how to pitch through a tough inning. Originally a one pitch pitcher, he has three now, and could turn into a legit back of the rotation starter. Hell, he could win quite a few games with just his fast ball.

11) Closer by Committee returns. Well, maybe not really. The Sox have gotten better at finding bullpen help, and they'll need to this year as well. I think Jenks is the plan here, but there's enough pieces out on the board to not know how this plays out. Lots of bullpen guys move around every year.  With Papelbon and Bard gone, there will be lots of discussion as to how everything fits together. However it fits together, it won't be as seamless as Bard and Papelbon were this year - until September of course.

Still more stuff in the air, but those are the headlines until January.

Do Good Things Today!

Matt Heisler

Analysis of Boylston Housing Market Statistics

The Boylston update looks little changed, but it's trending up for sellers, and down for buyers.  The Market time for homes sold is trending down, and with 7 sales in pending that will likely be in the next report, Boylston is definitely tightening up.  With sellers on the market just an average of 130 days, they won't be too anxious.  Exceptions are sure to be out there, but the last two reports are good reports for sellers.

To be sure, this isn't a report similar to what we've reviewed in Natick, where the Hot Seller Index was over 120.  We're at just under 70, a neutral market, but when these pending hit next month, I expect we'll be quite a bit higher, since its such a small market.

Boylston Housing Market Statistics - Raw MLS Data

• There are 31 homes (vs. 35 in the last Bolyston, MA Home Sales Report) listed as For Sale.
• There have been 19 houses sold (vs. 20) in the last 6 months, and 12 homes (vs. 15) sold in the last 3 months.
• There was an Average Market Time of 173 days (vs. 238) for just SOLD homes.
• There is an Average Market Time of 130 days of the homes For Sale.
• There was an Average Sold Price of $407,385 for sold homes.
• Boylston has 0 properties advertised as lender owned (typically foreclosure) .
• Boylston has 2 properties advertised as short sales required by lender .
• Boylston “Hot Seller Index”: 69 Last Report: 73

*All statistics are for Single Family Homes and based on MLS data.

Read my Explanation for Massachusetts Home Data Reports.

Our Most Accessed Posts

• What is a condo fee or HOA fee and what does it pay for?
• What is a 203K loan, and can it help me fix up a home I want to buy?!
• Will Solar Panels add Value to my Home and build Equity?
• Is it a bad idea to buy a house near power lines? Is it safe to buy a house near high tension powerlines?
• How do I buy a home if it has a failed septic?
• Investors can make money on foreclosures - can you?
• What should I do if I have high levels of Arsenic in my Private Well?

Matt Heisler is a real-estate professional and owner of Heisler & Mattson Properties. He has been selling residential real-estate for over 20 years. He has given several talks on real estate, including presentations on first-time buyer tips & tricks, and profiting in real estate investing in Massachusetts. As a Vanderbilt University alumnus, he is proud to serve his local community. *All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

What I thought would be a note of interest for the Metrowest community, a little detail on the coming Wegmans, has turned into an article that has been popular here on the blog for sometime. Apparently, I'm not the only one who had a passing interest in a new competitor on the grocery store scene. So, I thought I do a brief little overview, and comparison, of where things now stand, after my little visit to Wegman's this week.

Wegmans in Northborough Key Differences from other Grocery Stores

I was a little underwhelmed at many of the descriptions that I read about Wegmans. I knew it would be huge, but what would it be like? How do you make a grocery store different? It sounds like a hard question, until you go. There are several differences at Wegmans from other grocery stores. Here are a few.

• Large Organics Section: Wegmans has a very large organics section. Once you're in it, you realize while Whole Foods gets nervous when Wegmans comes to town. It certainly looked to me like the largest Organic section of any other grocery store that I'd seen - bigger than Hannafords, Market Basket, any Stop and Shop, Shaw's, Price Chopper, and probably bigger than Roche Bros (although I shop there less frequently, and know the store less).
• The Food Bazaar: Wegmans has a large "food court" area. But I won't call it a food court because that significantly demeans what it really feels like. Wegmans has a style where they feel you should see everything, how it's made, packed, displayed and so forth. So their "food court" has the feel of an outdoor city market, indoors of course. Complete with sit down cafes. Really, it's exceptionally unique little spot (it reminded me of Manhattan, or a market square in Europe ) and it's FUN! I think the reason people get excited about Wegmans is they make grocery shopping fun. And in today's very utilitarian, but kinda sterile, big box stores, Wegmans stands out. As an example, most grocery stores have a lobster tank. Wegmans had a lobster tank, but with a 5 or 6 lb lobster. Have you ever seen a 5 lb lobster? The claws are like someone's shoes. It was really cool. Both my 3 year-old son and I enjoyed that.
• People: You can go through all the aisles of a Stop and Shop and maybe see one, or two staff. Not at Wegmans. In the deli, bakery, fish and cheese areas, there are so many staff you feel like you're at a series of specialty stores - not at a grocery store. Again, fun. I suspect that's exactly the way they like it too.

Where is Wegman's in Northborough?

Here's a map.

View Grocery Stores of Metrowest in a larger map

Where does Wegman's Stack Up?

Far from scientific, this is just one man's opinion on the various markets in Metrowest. (And for those who are skeptical, yes, I do food shopping for my household).

Food Shopping In Metrowest: from Wegmans to Bj's

So, here's a little summary on each store:

Wegmans: What they have: Everything.  Why you should go: To rediscover the FUN of food.  Try something new, and learn something different. Can you save a little money at some other stores? Yes, but if you like variety, organics, and taking the dreary out of food shopping, you can't beat Wegmans. Once the staff gets trained and the initial "rush" of traffic winds down, the long waits in line I went through will be a thing of the past, I'll bet.  However, the store is so large, don't expect you can "run in" and do your shopping.  It's an event.

Hannaford: What they have: Your basic groceries - and value.  It take a little effort, but there are usually plenty of deals at Hannaford.  I find shopping there the easiest, most cost effective, and I thought it was clearly best in Metrowest.  The deals at Hannaford are still the best, and their fruits are very, very good, and last a long time at home.  They'll still get the majority of my food dollars.  Why you should go: Great generics and daily deals will save you serious dough.

Market Basket: Market Basket is like Hannaford, good deals, good fruits and veges, similar food items, but the stores are not as nice or as pleasing.  My wife loves them, but the Ashland store is too far for me - I'll stick with Hannaford.  Why you should go: Arguable the freshest fruits and vegetables in Metrowest. Usually longer lines and less helpful staff.

Stop and Shop: There are many Stop and Shops throughout Metrowest.  Their convenience, for most of us, is unparalleled, but they lost me because the fruits and vege section is just not very good.  Shortages, produce that doesn't last at home, just disappointing.  You deal with it, until you find something better.  If it was super cheap, you'd deal with it more, but it's not.  Why you should go: Time is against you.

Roche Bros.: My Mom's favorite store for years, Roche has high quality items.  They also have high quality prices.  They do run specials, but only on limited items, and most items are quite pricey.  The new store in Westborough is very nice, with a nice coffee cafe in the opening, but worth the extra prices for the same food?  Not for me.  Why you should go: Great stores, great service.

Price Chopper: The new Price Chopper in Shrewsbury is a very nice store.  It's not Wegman's though.  I'm sure the new one in Hopkinton will be similar to one the one in Shrewsbury.  It's very similar to Hannaford, but has fewer "great deals", IMHO.  Why you should go: A solid place to shop, but not a standout in any one area.

Shaw's:  A nicer Stop and Shop, not too many left in Metrowest.  Why you should go: It's next door. If it's not next door, I'm not sure you should.

Whole Foods: Like Roche Bros, a nice change a pace that comes with a healthy change in price.  Lot's of Organics, but tough on the wallet for every day shopping.  The closest one to me is in Framingham, which means it has the added negative of being difficult to get to.  Why you should go: You care a great deal about food, and price is no object.

Trader Joe's: Trader Joes prides itself on unique food items, and passionate staff.  While I feel it's hard to do "day to day" food shopping there, people who prefer Traders Joes are usually very outspoken about it.  Their unique business model allows them to be price competitive on the items they wish to be.  Why you should go: It's not like any other store.

BJ's: Last on this list as they are really a "big box store with food" as opposed to a grocery store, I nevertheless buy quite a bit of food their.  The brands I like of coffee, cereal, pasta sauce, and many other items, plus the cheapest deli in the area (even better than Wegmans and Hannaford) make BJ's  worth a stop from time to time.  The new store, also at Northborough Crossing, is a larger version of the one in Westborough, and much like the one in Foxborough, which also has a gas station.  For the true bargain hunter, BJ's has the most consistent prices on staples.

Do Good Things Today!

Matt Heisler

Analysis of Ashland Housing Market Statistics

Well Ashland looks softer, but it's not much softer. Sellers have barely begun to wait around - just four months on average - and buyers are still picking up properties in under 100 days, so that a tight market in Ashland. It's also worth noting that out of the 61 properties for sale, 11 of them are "bank clouded" either with a short-sale or foreclosure issue to deal with. That leaves just 50 "ready to move" properties in MLS, not very many for a Town of Ashlands size.

Buyers: Be prepared for thin pickings this fall and winter, as most home sellers are done for the year. There are some easier places to find housing, just check out my Best Towns to Buy in Metrowest, they aren't all as tight as Ashland.

Ashland Housing Market Statistics - Raw Data

• There are 61 homes listed as For Sale (vs. 50 in the last Ashland Home Sales Report).
• There have been 64 houses sold (vs. 58) in the last 6 months, and 37 homes sold (vs. 40) in the last 3 months.
• There was an Average Market Time of 98 days for just SOLD homes.
• There is an Average Market Time of 132 days of the homes For Sale.
• There was an Average Sold Price of $418,012 for sold homes.
• Ashland has 1 properties (vs. 1) advertised as lender owned (typically foreclosure) .
• Ashland has 10 properties advertised (vs. 6) as short sales required by lender .
• Ashland “Hot Seller Index”: 86 Last Report: 95

*All statistics are for Single Family Homes.

Read my Explanation for Massachusetts Home Data Reports.

Our Most Accessed Posts

• What is a condo fee or HOA fee and what does it pay for?
• What is a 203K loan, and can it help me fix up a home I want to buy?!
• Will Solar Panels add Value to my Home and build Equity?
• Is it a bad idea to buy a house near power lines? Is it safe to buy a house near high tension powerlines?
• How do I buy a home if it has a failed septic?
• Investors can make money on foreclosures - can you?
• What should I do if I have high levels of Arsenic in my Private Well?

Matt Heisler is a real-estate professional and owner of Heisler & Mattson Properties. He has been selling residential real-estate for over 20 years. He has given several talks on real estate, including presentations on first-time buyer tips & tricks, and profiting in real estate investing in Massachusetts. As a Vanderbilt University alumnus, he is proud to serve his local community. *All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Time for an update of my...

Best Towns to Buy or Sell a House in Metrowest.

Every few months, I take all the data from the market reports and combine it in a snapshot.

In Brief, this report shows where the most demand vs. supply is.  In the towns at the top, homes are selling faster, often outpacing inventory, and buyers are finding themselves in competitive situations more often.  At the bottom, sellers are struggling to find buyers, and towns often have very high market times. For More information on Best Town Methodology, check here:

Notes on the Rankings.

Key Notes in this Best Towns to Sell Ranking

A) Natick broke a record on the blog for best town to sell your house with a Hot Seller Index of 121.

B) Shrewsbury and Northborough, with their good MCAS scores and pike access are very popular towns, and their markets are among the coolest in Metrowest. They are great places to look for homes at the moment. Further west, Sutton's softness is also surprising, and unlikely to last, as the last couple of reports show - it's usually near the top, and probably will be there before long.

C) Westborough made a pretty huge jump - that market is as hot as we've seen it in a while.

Yes, you read that right, in the recent spate of reports Natick had the HOTTEST MARKET EVER recorded here on the blog. It's also worth noting that there were seven towns above the 90 mark, which was also a record, for the most markets that are hot at one time. I'm sure some of you will read this and say, "But I thought housing was in a slump, how can there be hot markets?" It's really important to remember that any "numbers" that you get at a large level - statewide, or national numbers - gloss over the reality of what's actually happening on the ground floor. Now I track 24 towns on the blog, and only seven are truly great markets for sellers. Many are neutral markets and 5 or 7 are really poor markets for home sellers, (and therefore good markets for home buyers). Overall, Metrowest has an average of 82, which reflects that. The entire purposes of these posts is to show what is really happening in each little market, as the ebbs and flows of the economy, buyers preferences, and seller's willingness to price appropriately, are all jumbled together. It's quite fluid, even over fairly short time spans.

Frankly, with interest rates where they are, the fact that there are cold markets is a bit of a head scratcher. The Boston Globe Real Estate Blog recently posted that frustrated sellers were giving up. That's an interesting take - but it's not what we're not really seeing here in Metrowest. What we are seeing is that sellers that have flaws in there property - bad lots, bad floor plans, poor condition - aren't finding enough buyers or are willing to move their prices low enough to find those buyers. Personally, I think when the economy or the real estate market is bad, buyers become very "risk averse", and don't want to purchase any property for themselves that appears risky or hard to move. This is a natural tendency, of course, but when inventory gets tight, it can leave many buyers on the sidelines. I do bump into people all the time who have been looking for 10, 18 even 24 months for a house. That's TWO YEARS! (and WAY TOO LONG).

Long Term Trends about the Best Towns to Sell or Buy in Metrowest

After doing these reports across the whole year, we can definitely see that it helps to be further East. This is only natural, as there are more people to the East, as we approach Boston, and as those prices and rents rise (as they have) we see the "spillover" effect into Metrowest. Someday, when the market heats up, we'll see the seller markets improve further west, as the spillover goes west.

I'd also like to point out that even though the "Hot Seller Index" changes, it doesn't mean that the town got "worse" or better. Already we've seen big changes in the Index for certain towns, and the towns haven't changed in any meaningful way, sometimes, towns just get hot (or cold). Many times the stats for a town "cool off" when a bunch of sellers list their property for sale - a good thing for buyers when there are many new choices - it's not always a lack of purchasing.

Do Good Things Today!

Matt Heisler

OK! I tried to make a lot of predictions on this blog this year about the Sox. The whole point, to me anyway, of putting it on paper is to avoid any "rear-view" window type of stuff.   Each one of the predictions below was referenced in an earlier post. Let's see if my predictions were worth reading this year.

Well, other than the standings, (kinda a big one, I know), there was some value to reading what was posted here.  Looks like it's worthwhile for more posts in 2012.  More on the manager, GM, who is in and who is out next time.....

Do Good Things Today!

Matt Heisler

What is the MLS?

The MLS is the Multiple Listing Service, MLS for short, and is the primary directory of homes for sale in most states. A long time ago, if a home was listed for sale you needed to talk to the agent that was marketing the property - the listing agent. In order to facilitate that marketing, companies began printing books with the listings that each agent had, forming a common repository of listings that all agents could search. As the world moved on-line, the books did too, and now we are left with the MLS as an internet site where listing agents enter the property, and it is now searchable by agents and buyers alike. (with some differences, noted below)

What is the MLS in Massachusetts?

The MLS in Massachusetts is the largest Listing Service in Massachusetts. Virtually all agencies subscribe to the MLS rules, which is necessary to agree to, as part of the agreement to list homes for sale in the MLS database.

Do you provide customers with access to the MLS?

Yes, I do, in two ways. First, my website allows access to many towns with quicklinks based on price ranges in those towns. As per MLS rules, I can't show you address for these homes, just price ranges and addresses. If however, you subscribe to my version of MLS here, you will see all the addresses, have access to map integration, and the full set of tools that make internet shopping so useful.

Why should I list my Home in the MLS?

A simple way to look at selling your home is that by creating the most demand, you can achieve the highest price. So the more people you can advertise to, the more showings you can generate, the higher the price someone will offer for your home. A person who desires your home can't make an offer if they don't know it's available. MLS has partnered with many agents, brokers, and other internet sites to maximize the amount of exposure that your home may get in Massachusetts and in surrounding states, as well as across the country and around the world.

What happens if I don’t list my home in the MLS?

It is very likely that you will get far less exposure, and usually that exposure translates to a lower sales price. There aren't many people driving around neighborhoods anymore, looking for for sale signs. Most people who track such things believe that between 85-90% of all home buyers are using the internet to look for a home. In Massachusetts, those numbers are probably low.

What else has homes listed besides the MLS in Massachusetts

There are other listing services, but none are as big. Boston Link, which focused in Boston, is still around but most Boston brokers list properties in both, as buyers come from all over, not just the next town over, and MLS is better at reaching those buyers than Link at this time. There are also websites that are not affiliated with MLS, such as For Sale By Owner sites (often called FSBO, (pronounced Fiz-Bough), but these are designed as person-to-person websites, and don't have nearly as much traffic or exposure.

What Are MLS Numbers?

MLS Numbers are the identification numbers that MLS uses to unique identify each listing in it's database. Those numbers are often useful to track and search for later, as they pop up in lots of places around the internet.

How does Zillow and Trulia work with the MLS?

Zillow and Trulia are among the largest websites that have asked for, and received, permission to download MLS listings and post them on their site. As a rule, they only post limited information about each home, may or may not display the listing agents contact information in an obvious place, and generally will post fewer pictures. Most "third-part websites" take the full and complete MLS information and only use part of it. Also, although they are pretty good (one to two days) at picking up new listings, they are often slow to note price changes, pending sales, and closings. Closings on Zillow can often take months to show up, for example. Serious house shoppers would do well to get on an MLS website that is the full functioning and direct link to MLS for all these reasons.

Do Good Things Today!

Matt Heisler

Analysis of Worcester Housing Market Statistics

Don't look now, but Worcester is looking stronger.  After a pretty negative report last time, which showed huge jumps in inventory and little sale movement, the trend has almost reversed, with buyers pushing up sales  almost 20%, while inventory fell.  Short-Sale are clearing off the books too, as over 25% of the short-sale have dried up.  Even bank owned foreclosures is a smaller number at this point.  My Hot Seller Index is at 74 for Worcester, a big jump, and indicates we're headed for a neutral market if the sale keep up and inventory continues to shrink (and I think it might, based on some pendings out there).  Buyers: There's still good deals in Worcester, but it won't be as easy today as it was two months ago, but there are values to be had.  As always, be aware that Worcester is actually a collection of a dozen or so "sub-markets", and if you'd like information on the part of town that you're looking in, just let me know, we'll narrow it down a bit.

Worcester Housing Market Statistics - Raw Data

• There are 636 homes listed as For Sale (vs. 679 in the last Worcester Home Sales Report).
• There have been 531 houses sold (vs. 449) in the last 6 months, and 327 homes sold (vs. 293) in the last 3 months.
• There was an Average Market Time of 144 days for just SOLD homes.
• There is an Average Market Time of 160 days of the homes For Sale.
• There was an Average Sold Price of $170,940 for sold homes.
• Worcester has 39 properties (vs. 41) advertised as lender owned (typically foreclosure) .
• Worcester has 99 properties (vs. 123) advertised as short sales required by lender .
• Worcester “Hot Seller Index”: 74 Last Report: 69

*All statistics are for Single Family Homes.

Read my Explanation for Massachusetts Home Data Reports.

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Matt Heisler is a real-estate professional and owner of Heisler & Mattson Properties. He has been selling residential real-estate for over 20 years. He has given several talks on real estate, including presentations on first-time buyer tips & tricks, and profiting in real estate investing in Massachusetts. As a Vanderbilt University alumnus, he is proud to serve his local community. *All information is posted in good faith and is assumed to be reliable, but may rely on third party information sources.

Real Estate Tax Rates for Massachusetts Towns

Hello!  Looking for expected 2016 Tax Rates?  Don't worry - I have them for you here. 

Welcome! Here you will find the 2015 final tax rates for the towns in the state of Massachusetts. New budgets are coming, and we'll have 2016 estimates soon. These tax rates may change through the year, but they are what has been estimated so far. 2014 actuals are right next to them.

Looking for the cheapest rates? This list is sortable! You can click on the table headings to sort by town name, tax rate, or percent change from 2014 to 2015!

Looking for 2013 years rates? They are at the bottom.

Massachusetts towns tax a certain amount for each $1000 of Assessed property value. (Not Market Value! Read the difference here). So a home that is ASSESSED at $400,000 in a town that has a $15/thousand tax rate would pay $400,000/1000*15 = $6000 in Real Estate Taxes.

 Too fast? Here it is again:

• Assessed Value: $400,000
• Assessed Value in Thousands = 400,000/1000 = 400.
• Tax Rate PER Thousand: 15
• Tax Bill: 400*15 = 6000.

This information is available in PDF from from the state, Here

I sorted the information alphabetically, but if you want to see it sorted by tax rate, Click Here! (Residential Only)!

2013 Tax levels