Vanessa Riffelmacher

Follow this link for some very good information from the National Association of Reatlor's Chief Economist Dr. Yun, who recently spoke in Andover. I was present, and this link will bring you to his power point presentation, but in a pdf. If your a "stats" person, you'll find it very interesting. http://www.massnear.com/flyers/YunPresentation.pdf

My understanding of the things he said, is that the increase in values, will be small and slow over the next several months, and increase at a steadier pace next year. Again I can't predict the future - - nor can he but he is far greater experienced at such things and monitoring indicators.

Also, what I learned, is that if somone was trying to decide whether to sell now or next year, that he said now is better then than,,,,,in part because interest rates are at their lowest and therefore buyers will have more buying power now rather than later as interest rates are also projected to increase (he said possible to 8 % next year). So it is logical to try and find buyers now, rather than later. The money is out there for qualified buyers.

You aren't likely to see more than a 1 or 2% increase in value if you wait - - and balancing that out with how many months of mortgage you'll be paying (never mind condo fees and maintenance, etc), then dollar for dollar, it seems to make sense to look into contacting a Realtor now.

Be sure and use a Realtor as opposed to just a sales agent. Realtors have a far greater ability with exposing your home on the market and to far more buyers, to gain a greater price for your home.

Feel free to write or call if you have any further questions.

Vanessa Riffelmacher
Graduate of the Realtor Institute
REMAX Colonial
978-877-8087 - Wed Jun 25 2008, 12:08

In as much as I agree in theory with your answer Cameron, the LTV (loan to value) ratio isn't based on the Assessed value of the property, but rather the APPRAISED value of the property. Your lender will send an appraiser out to determine the "fair market value" of your home in order to support to the bank that their investment in lending you the money is a sound one. The assessed value is based only on the town's need to raise revenue via taxes. Tax assessors almost never see the true value of a property - - because they never go in them, or even rarely do they walk the land. If the property doesn't Appraise for the amount of your offer to purchase price, then the bank won't commit to the loan. Disclaimer here - - I am not a lender or tax advisor in anyway. Due to the market downturn in the past couple of years, we are beginning to see a lot of properties selling for less than the assessed value because the towns only reassess every 3 years. My thoughts are than when the towns reevaluate property values in their next rotation, you'll see a lot of attempts in towns to drastically increase their tax rates because the current values that are assessed are out of sync with the actual market. Therefore, the Actual Fair Market Value will be determined by the Appraiser for your Bank, and if they value the property at at the price which you have offered to purchase it for, then the value will still be 100% and your loan will still be for 95% of that appraised value - - regardless of what the assessment is. Now - - lets imagine the appraisal comes in at the Assessed value or even up to 80% of the assessed value - - then in fact your loan should be adjusted be adjusted and the PMI eliminated if you are borrowing any less than 80% of the LTV. Ask your lender for a copy of the Appraisal - - you pay for it - - you have a right to a copy of it. Then ask him to adjust the PMI.

Vanessa Riffelmacher
Graduate of the Realtor Institute
REMAX Colonial
978-877-8087 - Wed Jun 25 2008, 11:53

Chad

Ditto to Keith's response. If you are the Seller (or even the buyer), there is no need for your income to be verified. As far as I know, the only 1099 Doc is a tax statement recording income given to sub contractors which is used in filing income taxes. I've no clue, and maybe you need to ask the buyer's attorney directly why he would need such documentation, if you aren't using a Realtor. Otherwise, your Realtor should be walking you through this process. Many issues arise in transactions, such as this. Realtors do much more than just show pretty houses all day! Good luck! ;-)

Vanessa Riffelmacher
Graduate of the Realtor Institute
REMAX Colonial
978-877-8087 - Wed Jun 25 2008, 11:39

Hi Denise,

Your location is very good - - that is a plus! Location location location has always been and remains rule #1. (Some Brokers will say it is really Price price price, these days, however I still believe in the location rule as well)

Secondly, it will be helpful to know how many square feet of living area in your home. All of the other benefits and improvements sound lovely and I agree with Mike that proper staging goes a long way in getting top dollar for a home in this market.

The way to get the most solid answer is to contact a Full Time Realtor for a FREE Comparative Market Analysis. I will also be glad to do that for you, and am fairly local as well so that will be to your advantage.

Feel free to contact me as well at 978-877-8087.

Thanks,
Vanessa, GRI, CBR http://www.VanessaR.net
978-877-8087 - Wed Jun 11 2008, 13:03

If there are (in fact) multiple offers on a property, then you are in a bidding war. If your buyer agent has done a CMA for you, telling you the worth of the property - - then let them guide you. In MA, all offers must be presented forthwith! A listing agent can't just sit on an offer and wait for others to come in, without notifying the Sellers that they have one in hand. (The Sellers can instruct the agent that they will look at all offers together at the same time). In those cases, when I am working for a Buyer Client, and the Buyer really really wants the home, and feel it is a great price, in great condition, and it will be great terms, than I would recommend to them to put their absolute best foot forward upfront so they know they have done all they can to secure the opportunity to own it. However, depending on the market in the town you are buying in,,,,,, I have been in a few bidding wars over these past couple of years (as a listing agent) and even though there were multiple offers - - none came in at full price, and there was a lot of negotiating to get the price up. This isn't true for all towns and cities in MA. You and your agent know whether this is a HOT BUY, in a HOT TOWN. Good luck! - Mon Jun 9 2008, 18:15