6 Economic Projections all MA Residents Should Hear
If the US economy stays on its current track, we are on pace to see:

• Interest rates hold for 2-3 years while GDP increases
• Home sale prices increase 2.5% per year in Massachusetts
• 10 million jobs added nationwide by 2016;  MA unemployment rate going down(not as fast as nationally)
• Next wave of buyers are 15-19 years old now. Home price increases will provide equity for families to assist with this age group as first time home buyers in years to come
• Increase in multi-family housing demanded, investors continuing to buy with low rates
• Rents continuing to climb with demand, yet affordability of ownership has never been better (ratio of earnings to price to purchase)

The above thoughts are from my notes from the Economic Expectation Seminar held at the Federal Reserve Bank in Boston, Nov. 7, 2012 by the Greater Boston Association of Realtors. Please contact me to talk about trends within your neighborhood and community.

Best Value Home Improvement-Judge the Book by Its Cover

There are so many choices in homes, it's easy to understand why prospective buyers are reported to make a decision within 10 seconds of whether they will even go into a home with the intent to purchase.

That 10 seconds is critical. Think of where a prospective buyer spends those moments--pulling into the driveway, approaching the door, waiting at the door, and just inside the entry. What do they see? yard, exterior maintenance, and general condition of home upon entering.

Now, take the test yourself! Hit the play button to see how the pictured home was transformed. Where would you be eager to go? Which home would entice you to come inside? Which home would leave you with the best impression when you were leaving?

I've seen the projection for return on landscaping as an investment range from 97% to 200%. The variables seem to be: what was it when it started? how large/mature are the plantings, and the sophistication of the design. The landscape needs to be in proportion and in keeping with the home size and style.

Please check out my vendor partner, Max Cohen Landscape Design, for more information and ideas.

It's All Online, Why Work with a Buyer's Agent?

I love working with clients that are eager to learn and research. There's so much information online--sites with estimated home values, flood zones, mortgage calculators, and Google. Often clients are more knowledgable in parts of a property search than I am. So why work with me, or anyone else, as a buyer's agent?

1-I have access to up to date listing information. Syndicated sites often post old information or misinformation. Helping you interpret and sort information is key.

2-My commitment to my clients is to get them into properties of interest as soon as possible. Often my clients get in before open houses and other showings.

2-My ties within my firm connect me with properties before they even hit the market.

3-I'll personally connect with the seller's agent to gather information. I'll work to position you to make a strong offer that will meet your needs and position you well to have an offer accepted.

4-Become a trained consumer with an eye for major issues to consider. It's fun to coach home buyers as to how to effectively shop for properties that meet their needs.

5- A phenomenal inspector will find problems and also suggest how you should care for your property. I am happy to suggest a number of inspectors that I have worked with successfully in the past.

6-As important as inspector, finding stellar legal representation can save the deal and protect you as an investor. Again, I'd love to connect you with a reputable lawyer.

7-Negotiating can be tricky, I am successful in de-escalating situations and keeping the primary objectives in focus. I treat others with respect and find it possible to come to win-win terms nearly all the time.

Pricing a Property: What's Its Value?

Determining a property’s value is a somewhat ambiguous process. I often work with clients, both selling and buying homes, who come from a scientific background. I genuinely appreciate data-backed decision making; I have been married to an engineer for 25 years! It would be so convenient to plug in a price per square foot for a home in a particular area, but it is not that simple.

As a real estate agent, my determination of a home’s value is really an interpretation of the market demand for that sort of property.  So how do I do that? I do look at sold properties in that area. First properties of like style are considered, then I look for homes on similar streets (a familiarity of the area and having been in some of the homes is needed for this). From that group, I find the homes that have similar attributes such as bedrooms, baths and square feet of living space. Next I consider factors such as: proximity to public transportation, views from the yard or deck, privacy of the lot, layout of the floor plan, how the home is updated, construction materials used, proximity to services and shopping, the school and school district's reputation, location of the schools, whether other homes in the neighborhood look similar in size and upkeep to the property being considered, plus more! 

Pricing does get unscientific as some point. The value of working with informed real estate agent is getting that opinion of what is a good value in the area. My goal is to help buyers select properties that serve their needs, that can also be sold if in the future. When I help sellers price their properties, it’s all about knowing what properties have recently sold and pricing a property relative to current market listings. So, determining a property’s value is a blend of data analysis, familiarity of the inventory, and an understanding what consumers are drawn to currently.

Adventures of the For Sale by Owner Kind

Ok, for whatever reason, For Sale by Owner properties have cropped up a lot this week. As I brought one client to see one, his summation of the experience was, “OMG, why would anyone ever do that? And you’ve got to write a play about FSBOs.” He has a point.

My heart seriously goes out to hard-working, well-intentioned home owners who want to go it on their own. However, with realtors access to information and ability to reach both buyers and realtors who WANT to work with them, a home owner just cannot keep up.

Some thoughts to consider:

Realtors bring in home sale prices at 6% higher than FSBOs do. Even with paying a commission, the owner nets more from the sale.

Realtors prefer to work with realtors.  People in the business know the legalities of what must be shared, when various documents must be produced, and how to keep a transaction on track. Rarely do I see an owner seller even providing the most basic documentation from the beginning.

Owners may be comfortable showing their home, but buyers are usually not. When a buyer is shown a property with a realtor, the realtor can help interpret how features add to the value of the home.  A realtor may also field questions a buyer may have that would never be addressed face to face with a owner. Let a realtor share unbiased facts to help a prospective buyer understand how to address challenges they see in a property.

Screening prospective buyers and security are other factors to consider. Realtors work with buyers that are pre-approved by a lender and are truly prepared to purchase a home. Working with a realtor, sellers have the best of all situations with data on who has entered their home as well as unrestricted ability for realtors to schedule showings online.  Sellers don’t need to sit by their phones and get realtors with buyers have access.

Feedback is yet another consideration.  Realtors receive feedback on the property from other realtors that show it and sometimes realtors from their firm.  Buyers are often shy to share true feelings about the property, leaving for sale by owner sellers wondering why their sales efforts are ineffective.

Lastly, profession marketing is key. There’s so much more than putting a property on MLS. There are firms that will help for sale by owners to put their property on MLS, but what does not happen is all the listing being featured on syndicated sites and being shared with colleagues in the agents office. Not all realtors or realty firms are equal in doing this either. Marketing at the home is rarely done as well either—realtors have professionally made flyers and notebooks to create a polished presentation at the property.

Why Buy Realty Now? Wallet and Soul Love It!!

Post for Keeping Current Matters 

3 Questions You Must Answer When Buying a Home

Posted: 17 Apr 2012 04:00 AM PDT

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And some of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought six years ago lost their shirt? We understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.

There are three questions you should ask before purchasing in today’s market:

1. What are the experts recommending?

In the last 120 days, many experts have said that buying now makes sense. This list includes: John Talbott, Christopher Thornberg and Warren Buffett.

2. When will I begin to see appreciation if I buy now?

This is a great question. Macro Markets, LLC is a company that studies housing prices. They started their Home Price Expectation Survey in 2010. They ask 100+ housing industry experts to project housing prices through 2016. The most current survey shows that the experts are predicting prices to remain relatively flat in 2012. The experts then project prices to rise reaching a cumulative appreciation of over 10% by 2016.

Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom: you want to buy low and sell high. This decision should not only be a financial one however.

That leads us to our third and final question:

3. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. TheFannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the reason you decide to purchase or not.

Bottom Line

Don’t allow money to get in the way of you making the right decision for you and your family. In the long run, the finances will work in your favor anyway.

Let My Team Help You!

I work with an amazing team to help home owners prepare their properties for sale. After I meet with you and outline a marketing strategy for your property, it's time for an action plan!

We start by bringing in a professional stager, Debbe Daley is fantastic! She'll thoughtfully advise you how to best prepare your home to appeal to the biggest audience of potential buyers as possible. Her thoughtful suggestions will help you to efficiently prepare your home for viewing. Debbe can offer simply furniture placement suggestions, full-staging as well as thoughts on paint colors.

Next, depending on your needs, you may want to work with the Lifecycle team to de-clutter, organize, repair within your home. Just having the help clean out and liquidate belongings can keep your preparations as stress-free as possible. Jason Suderman and his crew have a versatile skill set and are simply a delight to work with!

Once your property is ready to market, we'll engage the services of a professional photographer.  David Bragdon brings his love of science into his thoughtful approach to photographing your home. With close to 90% of home searches starting online, it is essential to present your home with outstanding photographs. David's photographs will be used on websites, virtual tours, and promotional flyers.

Perhaps your home's curb appeal could use some sprucing up. Max Cohen can help you! Max's spectacular designs are award winning and vary from residential to public spaces.

See more on my team and their websites at: anncohenrealestate.com