Archive for the 'home ownership' category

If you've been on the fence about buying a home, here's some news to consider.

The National Association of REALTORS® has just reported the news that the Federal Housing Authority (FHA) is set to increase fees on FHA loans significantly, effective April 1st.  From the article:

The agency is raising its fees in an effort to try to recoup some of its depleted reserves*, which suffered from the rising number of home owners who defaulted on their mortgages. The agency also says it’s raising fees to try to encourage the return of more private capital to the market. 

FHA loans allow for smaller down payments, as low as 3.5 percent compared to traditional loans, and they often have less stringent credit requirements, which have made them soar in popularity in recent years. (The agency insures loans but doesn’t issue them.) About 40 percent of all new mortgages for home purchases in 2010 were FHA-backed mortgages. 

In particular, FHA will increase two fees that borrowers pay. Starting April 1, it will increase its annual mortgage insurance premium for loans under $625,500,  bringing the total cost from 1.15 percent of the loan amount to 1.25 percent. Starting June 1, larger loan premiums will see an increase of 0.35 percent of a percentage point, bringing the total premium costs up to 1.5 percent of the loan amount, The New York Times reports. 

FHA also announced it will raise a fee for the upfront mortgage premium by 0.75 of a percentage point, which will now total 1.75 percent of the loan amount.

So what does this mean for a typical borrower?  According to The New York Times:

... a borrower with a 3.5 percent down payment with a mortgage of $193,000 can expect to pay an upfront mortgage premium alone of $3,377, compared to the prior $1,930. That can be rolled into the mortgage.

From the example, it's plain to see that these rate hikes will have an impact on how much home you can afford.  But if you secure a mortgage before April 1st, you can avoid these new fees (and save yourself some money).

In addition, these rate hikes will also apply to anyone with a current FHA loan who refinances.  So if you've been considering refinancing, now would also be a good time, before these rate increases go into effect.

Remember, you can search all MA homes for sale right here from my site.  Registration is free, and you are never obligated to buy a home.  And of course, you can take advantage of my Exclusive Buyer Guarantee and save AT LEAST $10,000 on any home you purchase through me.

As 2011 draws to a close, I want to wish my friends, family, and real estate clients a very happy and prosperous New Year.  For me, 2011 was a transformative year, a year of changes to many aspects of my business and how I will do business going into 2012.  Our total sales were up, and we are carrying some nice property listings into the new year, and picking up three new ones in January (so far).

Of course, on a personal level, the birth of our third child (on July 4th no less!) was the high water mark of 2011.  Adam Robert has brought much joy to our family, and of course to his older siblings, Faith Gloria and James Christopher.  My wife Jenn and I head into 2012 excited about what the new year will bring for our little family.

As 2012 begins, I look forward to helping you with your real estate needs.  Look around, you will find some good resources to help you, whether buying a home in MA or selling a home in MA.  Here are a few links to get you started:

FREE Resources For MA Home Buyers

FREE Resources For MA Home Sellers

BUYERS - Save AT LEAST $10,000 On Your Home Purchase

We'll also be rolling out an exciting new marketing tool in mid-January for our buyer clients and seller clients, something I'm very excited about.

The new year promises to be an exciting one, a very important election only being one highlight, but whatever else happens, one thing is sure:  real estate buyers will still need to buy homes, and real estate sellers will still need to sell homes.  And we'll be here to help as many people as we can to achieve their real estate dreams.

So, my sincere best wishes for a Happy and Prosperous New Year to you and yours, and I look forward to helping you with your real estate needs in 2012.

In big news for the RE/MAX brand, RE/MAX has won the JD Power Awards in the 2011 Home Buyer/Seller Study.  In fact, "RE/MAX Ranks Highest in Customer Satisfaction among Both Home Buyers and Home Sellers".  Click the following links to learn more:

Buyer Survey

Seller Survey

You can also read the Press Release HERE.

RE/MAX sells more real estate than any other real estate company.  RE/MAX agents average more experience than agents in other companies, and sell more homes on average than agents in other companies.  And now consumers have lent their voice and ranked RE/MAX agents tops in quality.

Few communities in Massachusetts evoke the sense of history that the beautiful town of Lexington does.  Most of us, of course, know that the Battle of Lexington was the first battle of the American Revolutionary War.  For me, the connection runs deep, as I am descended from Dr Joseph Warren, who sent Paul Revere on his famed midnight ride and later died heroically at the Battle of Bunker Hill.

Indeed, there are many wonderful reminders of our historical heritage to be found in Lexington.  But residents of Lexington MA know it today as much for its wonderful downtown (with its great selection of small shops, art galleries, and diverse restaurants) as well as for its great school system and wonderful tree-lined neighborhoods.

Many people covet a home in Lexington.  And the real estate market in Lexington is healthy, with a nice mix of condos and single family homes.  Whatever your housing needs, my website is a great resource for homes for sale in Lexington MA.  You can search single family home for sale in Lexington, while those interested in buying a Lexington condo or townhouse will find them all conveniently listed.  Whether you're a first-time homebuyer just out of college or a seasoned homeowner ready to move up to your dream home, the Lexington real estate market has what you are looking for.

If you're thinking of selling your Lexington home, you can request a Free, No-Obligation Market Analysis.  You might be pleasantly surprised to find out just how much your Lexington home is worth in today's market.

In a story that sounds like I made it up - the founder of the For Sale By Owner (FSBO) site ForSaleByOwner.com has sold his own home - with the help of a traditional real estate agent.

The story can be found HERE.

From the story:

Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.

After giving up on the DIY route, Sambrotto’s decision to hire a broker led to attracting multiple offers, closing for $150,000 over the original asking price. The Wall Street Journal reports the listing sold for $2.15 million including a 6% commission.

As a full-time experienced REALTOR, I can tell you that I am not in the least bit surprised.  Studies consistently show that agent-listed homes sell for anywhere from 12%-17% higher than comparable FSBO homes in the same market, much more than the average 5% that a seller is trying to save by going the FSBO route.

In fact, this one bedroom condo at Melrose Towers I sold recently was a FSBO for over six months.  I spoke to the owner several times and he finally agreed to list it with me.  The night we signed the paperwork he told me the absolute bottom line he needed to get after all other expenses.  I listed it for the exact price he was advertising it at, and we got an offer 4 days after I listed it, for $500 over the asking price.  It closed about six weeks later.  When all was said and done, the seller walked away from the closing table with $6,000 more than the bottom line number he had given me, even after paying a 5% commission.

I'm pretty sure he does not regret his decision. 

If you're thinking of selling your home in MA, contact me for a free no obligation Market Analysis.  Go ahead and save yourself months of aggravation, and net more in your pocket at the closing.