I am thinking of buying a second home in Lincoln NH. I am concerned values will continue to decline but

Asked by Joseph Battaglia, 01852 Sun Nov 30, 2008

still would like to buy. Should I offer at 25% below to offset or wait? I would like to get it done this year but if I should wait, I will.

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someonefroml…, Home Owner, Lincoln, NH
Fri Aug 31, 2012
Hello Joseph,
YES! Buy! It's wonderful living here in Lincoln. My husband and I bought a second home 20 years ago and just this last year when we retired, chose to live here full time. The town is busy, but not overwhelmed by traffic/tourists like the North Conway area. The economy's great. And it's only 2 hours to Boston. Perfect location.

We used a broker named Miles Moran http://(www.mooserealty.com) when we bought. Miles is a local guy, born and raised, and is tapped into many wonderful deals. A few months ago I spoke with Miles on another matter and he told me he had a foreclosure listing in the South Mountain area that originally sold for $600,000 that was on the market for only $400,000. So he knows the deals.

That said, please do not fall into the trap of offering 25% below market value. It's really not gonna get you anything, and might insult the seller into refusing to deal with you. Sellers only want to get fair market value, and that's really all buyers are entitled to get too. FAIR market value.

Rather, to figure out fair market value, ask your broker to evaluate the prospective sale by doing a "fair market analysis" just as if he/she were going to list the property. This is a great method for zeroing in on what you might offer. Then start your bid at maybe 5% below fair market value.

One trick: before you make your offer, decide what is the MOST you'd be willing to spend on the property. That way you will find it easier to agree to a sales price once the emotion (and stubbornness) of negotiations kicks in.

Good luck and follow your dream. It's wonderful here!
Rita
1 vote
Scott Godzyk, Agent, Manchester, NH
Mon Dec 1, 2008
Joseph there is no set amount to deduct from a listing price, some banks price their homes to sell the day they are listed while others list at retail. The only way to know what to offer is to have your buyer broker research what it is worth in todays market, then depending if there are any other offers in you will know what to offer. You can start low and go up however if there are multiple offers you may lose out. Good luck with your purchase.
Web Reference:  http://www.ScottSellsNH.com
1 vote
Gregg Brooks, , New Hampshire
Mon Dec 1, 2008
My first question would be how long you plan to own the second home? 3 yrs, 5 yrs more? hard to say i know but that would be part of the equation. Has the 2nd home mrket bottomed out? Once again trying to time the real estate market is like trying to time other markets. It's anybodys guess. you can look at the market swings on a historical basis and see what that tells you but keep in mind the market sample is much larger that Lincoln NH.
I think the key is to work with a buyer agent who will give you a historical picture. Do an analysis of sale prices in 2006, 2007 and ytd and go from there. On the other hand the expansion of Loon Mtn has been battled for, what, about 20 years now and it's finally here. you can bet the owners/developers have deep enough pockets to keep things going.
IF you wait the oppotunity may pass you by, make an offer and see what they say. The answer will be one of 3 options, yes, no , or counter. The third option is typically what happens. An offer will give you insight into where thy're at and then you can go from there.
1 vote
someonefroml…, Home Owner, Lincoln, NH
Fri Aug 31, 2012
Oh, PS, values did drop a little bit over the past few years, but it has definitely not been a bloodbath here, like other places. I would say our condo reached a high value of maybe $200,000 and is now worth maybe $180,000. But we also rented our condo out which has made it a profit center which has definitely offset the loss in value.
0 votes
Steve Loynd, Agent, Lincoln, NH
Fri Nov 27, 2009
Joe, I think you are far better off hiring a buyer broker and having them give you a history of prices and the current market values for the type of property you are looking at (making an offer of 25% will insult the seller) if the property is priced correctly (ensuring you'll not buy that one). Sure there are properties that are over priced but not all are, a good deal can be had if location isn't important. But to say I will only buy...(Say) slope side, you will never get something for a big discount. So 25% is meaningless in the context of location, that liking buying a car that doesn't run because its cheep!. Call me 800-926-5653...and don't just buy on price alone.
Steve Loynd- Managing Broker - Alpine Lakes Realty.
0 votes
Scott Mosher, , 03251
Thu Apr 9, 2009
Hello Joe & hellos to Lowell! Obviously more than just a little late to the game, but thought I'd toss my own 2-cents' worth out there too. Considering your current, "just over the border" location - and based on these two, rather direct inquiries - I'm gonna go out on a limb and assume that you've either visited our li'l piece of heaven previously, have a friend or loved one who suggested it to you, or perhaps some combination thereof? Regardless though, you're obviously somewhat familiar with our home. With this in mind - and if you're at all still looking in/around the communities of Lincoln & Woodstock NH (ie: Loon Mountain region) - I can say, w/absolutely no hesitation - that your best course of action is to simply continue educating yourself (ie: monitoring market activity) until such time as you - and ONLY YOU - decide that the time is right. If/when that time comes however, might I also suggest that you protect your own interests by aligning yourself with a local Realtor as your Buyer Agent. My friend Steve, who responded to you earlier, is a fine area expert among others. Of course, feel free to reach out to me as well, or any of us if/when you're next in the area. Best to you & yours Joe!
0 votes
Steve Zalla, Agent, Lincoln, NH
Sun Jan 25, 2009
Hi Joseph, I and a specialist in the Loon Mountain Area Real Estate, my office is at 189 Main St Lincoln. Please email me or give me call and I'll be glad to go into detail just what is going on here. You may notice, the prices are holding failry well, we are in a different market, it's second homes-vacation homes, not the market of single family, median homes that the media refers to every night. There is definitely a pattern here of where offers seem to get accepted and just how much the values have declined. I can show you all the comps of what has sold, how long it was listed, what is currently on the market and for how long. Please feel free to contact me anytime. Buona Fortuna! (Good luck!)
Web Reference:  http://www.stevezalla.com
0 votes
Tom McGuirk, Agent, Hampton, NH
Sun Nov 30, 2008
When is it the right time to buy? Depends. Not on the market so much as it does on your education of the market. There are great deals available NOW. You have to be able to distinguish what is a deal and what is not, as well as what fits your needs and what doesn't.

Offering 25% below asking on all properties may be a bit misguided -- you may let a great deal pass you by. There are planty of BUYERS out there in the same situation as you -- wanting to buy and waiting as the right opportunity comes along. It is not unheard of in today's market to have a bidding war on property that is priced properly. I have sold property for asking or above asking in this market -- because the properties were priced right.

It sounds like you want to get a deal (as everyone does) and the only way to get a deal is to have the ability to recognize a deal -- eduation is key.

Keep two things in mind: If it's a deal today, it's a deal; AND Concentrate on the cost per month not the cost of the property. Yes, values may come down but if the interest rates may start creeping up, there may be a zero net gain (per month). If you're holding the property for a long period of time, values will inevitable go up so do not fret about the short term gains or losses. It won't matter as the years pass.
0 votes
Chuck Braxton, Agent, Meredith, NH
Sun Nov 30, 2008
Hello, Joe:

A lot of agents have been working hard with their seller clients to get to realistic pricing so as a buyer it would be useful to have an agent working on your behalf to provide a pricing study for properties in your budget range. You may find that the prices are already attractive, but an agent working with you should have the energy to make realistic, but low offers. The nice thing is that your agent's fee can be paid by the seller, so I say, why not put some of the seller's money to work for you? An important criterion for selecting a buyer agent might be someone who has the knowledge of the area, but is not working with sellers there.

Generally speaking, we are seeing more motivated sellers at certain price points than others. However, properties in those price ranges still may not represent good values or the strongest position for future appreciation.

If you are considering a condo in the Lincoln area, you will also want to have a clear picture of the financial strength of the association as well as the income potential. Some complexes built in the late 80s may be reaching the point where major unfunded repairs may be looming. Again, a buyer's agent will have an obligation to you to do a lot of digging on your behalf. Many condos in Lincoln have an excellent track record of rental income, but you should factor in softness in discretionary spending on ski trips in the near future.

Of course if you plan on serious use as a base for year round recreation, then it may make sense to consider a home rather than a condo as you would have more control over expenditures and a clearer picture of future property upkeep.

Good luck, Chuck
Web Reference:  http://www.ChuckBraxton.com
0 votes
Ron Fredette, Agent, Bedford, TX
Sun Nov 30, 2008
It's always a good time to buy @ the right price...a buyer agent can review with you the proper strategy. Do you have one?
Web Reference:  http://www.ronhomes.com
0 votes
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