Real Estate Information Archive

During his State of the Union address last Tuesday, President Barack Obama called on Congress to approve new legislation that would give all homeowners who are current on their mortgages the opportunity to refinance at record-low mortgage rates.

While details of the program have yet to emerge, the new legislation - in theory - is designed to give responsible homeowners a reasonable chance to refinance without running into roadblocks from lenders. This would also give homeowners an opportunity to take advantage of today’s continued, record-low interest rates.

According to CoreLogic, a company that tracks national mortgage activity, an estimated 28 million homeowners could cut the interest rates on their loans by more than one percentage point if they could refinance. If you’re one of the many homeowners considering a refinance, here are some important facts you need to know first. Be sure to consult with your real estate agent and/or financial advisor, as well.

January through November 2011, 324 single family homes sold in Westport Connecticut versus 325 units sold during the same time in 2010. More proof that the real estate market in Westport is stabilizing! Consumer confidence is up, interest rates are down, and homes are being priced right; all factors contributing to market stabilization. Unit sales year-to-date are up by 41% over 2009 and down by 15% from 2007.

The median sales price continues to lag slightly behind last year. From January to November 2011 the median sales price of single family homes in Westport was $1,101,500 versus a median sales price of $1,125,000 during this same time frame in 2010. Although the median sales price in Westport has been falling since 2008, the rate of decrease has slowed down dramatically year over year. Homes sold between January and November of 2009 had a median sales price 12.8% lower than homes sold in the same time frame in 2008. From 2009 to 2010 they were down only 4.5% and so far this year, prices are down only 2% from the same time frame last year.

We will continue to keep a close eye on the real estate market in all of Fairfield County and report select town statistics each month in our monthly newsletter. Visit http://www.yourfairfieldcountyhomes.com/Newsletter to sign up to receive these stats via email.  If you have an interest in a specific town or neighborhood, contact us for details that meet your needs.

*Source:  Greater Fairfield County Consolidated Multiple Listing Service

With historically low interest rates and an ample supply of homes on the market, now is a great time to buy a home! Whether you are a first-time home buyer, relocating to a new area, or downsizing, there are some mistakes you do not want to make when buying a home. Here is a list of the top three:

1. Don’t start your search blind

Have a clear view of your needs and wants before you start looking. Keep a list of ‘must haves’ and ‘would like to haves’. Take this list with you when you go to see each home. Although this list may change slightly after you have viewed a few homes, it will give you a basis from which to start your search  and also keep you on target. 

This brings me to the next item on my list:

2. Don’t buy the first home you see

Although you may end up purchasing the first home you see, take the opportunity to see a few homes before you make your decision. There are a lot of homes currently on the market to choose from and each has its own  advantages and disadvantages.   Shop around to compare homes and values.  This is where a thorough, skilled, knowledgeable and trustworthy Realtor can be a huge time saver.  Which brings me to the last item on my list:

3. Don’t go it alone

There are numerous advantages to working with a qualified Buyer’s Agent. Local REALTORS® know the market. They have seen multiple homes in your price range and can help you to determine value. They have experience negotiating purchases and can advise you on which homes may have the best re-sale value, helping you when it comes time to move again.

Home staging, in today's challenging real estate market, gives sellers a real advantage!  In fact, it is one of the first benefits of my service that I discuss when talking to home owners who are thinking of selling their homes.

In the present real estate market, your home really must stand out from its competition.  Regardless of size, style or other specific features, the majority of buyers are looking for updated homes that are in good condition.  Your home has to make a great first impression and grasp the attention of the buyer from start to finish.  With appealing staging, buyers will notice your home's best assets and they will feel ‘at home’ from the moment they approach the front door.

Before we list a home for sale, my team and I walk the property, both interior and exterior, examining the home’s features and condition.  We also shoot some photographs so that we can determine generally how the house will present itself to buyers around the world on the internet, when listed.

At that time, we note items which would benefit from repair as well as the areas where staging will have the greatest impact.  We usually point out a few items to the owners, suggesting some ways they might improve their property, thereby increasing the value and or the speed at which their property is likely to sell.

Some of our suggestions may include the following:

De-clutter – Cluttered countertops, table tops and other flat surfaces can make a room look small and cramped. Take a look around each room.  Select the items that you can live without while your property is listed and pack those items away.  Other items which you might need can be arranged in plastic containers and stored in less visible places, for easy access.

Repaint – If your rooms are painted very intense colors that might not have broad appeal or if they have faded or chipped paint or busy wall paper, consider removing the wall paper and painting in more neutral colors. These features can distract buyers causing them to think that your house needs an abundance of costly changes in order to meet their needs.  They can also cause a buyer to miss some of the positive features such as space, layout, sunlight, windows, storage space, hardwood floors, etc.  Wall paper is a particular deterrent. It is rare that two people would have chosen the exact same wallpaper for a particular room.   Buyers always see wall paper removal as an overwhelming chore or as an expensive job. It is one more task they will need to complete to make the home their own. A fresh coat of paint makes a house look clean and well cared for.  If somewhat neutral, it also presents a blank canvas which might easily accommodate a new buyer’s furnishings.

Rearrange – One of the main steps in staging is placement of furniture throughout the house.  Arranging furniture in a certain way can open up rooms, promote flow from one room to the next, and create an environment that allows the buyers to picture themselves living in the home and envision how their personal items would fit. Instead of purchasing new furniture, we often suggest moving furniture from one room to another or borrowing a few pieces from friends and family and maybe storing some extra pieces in the garage, basement, attic, at a friend’s house or in an inexpensive storage facility for a short time until the house is sold. 

Clean – Perhaps a no-brainer but crucial for each showing!  Never under estimate the power of a clean and appealing front entry, a neat living room, vacuumed carpet, polished floors and clean countertops!

Once convinced that home staging will help them to sell faster and for more money, home sellers often ask the next question, ‘How much will this cost me?’ The good news is you have options! In addition to the services we offer, I have a database of professional stagers with whom I have worked closely over the years.   Many will offer a free consultation, allowing you to explore many options before making any significant investment.

An important step in the home buying process is the final buyer walk-thru, prior to closing. I have compiled a list to help answer some questions home buyers and sellers may have about the final walk-thru.

·       What is the purpose of the final walk-thru?

The purpose of the walk-thru is to make sure that the property is in the condition it was when you agreed to buy it. 

·       When should the final walk-thru take place?

The ideal time to do the walk-thru is after the seller has completely vacated the premises and just a couple of hours before the closing.  This way you will have an accurate assessment of the property’s condition.  However, due to timing constraints some home buyers may not be able to do the walk-thru on the day of the closing.   Also if you are buying a company owned property, they sometimes require the final walk-thru a few days prior to closing.  If this is the case, a walk-thru can take place the day before or even a few days before the closing.  In this case, I would still suggest that you ask your real estate agent if they would accompany your friend or if they might walk thru the property a couple of hours before closing to confirm that a tree hasn't fallen on the roof or that the house has not been flooded by a major pipe break or some other disaster hasn't occurred.

·       Who should be present at the walk-thru?

Typically, the home buyers and buyers’ real estate agent will be the only people present during the walk-thru. However, in some cases a buyer might request the presence of an inspector or contractor.  On some occasions, the seller’s agent might be present to allow access to the home.

·       What should I look for during the walk-thru?

The walk-thru is not a home inspection. At the time of the walk-thru the home building inspection will have been completed and all negotiations done. Take a copy of your contract with you so you will have the list of repairs and changes the seller has agreed to make. Look for these items to be sure they were completed. If major repairs were agreed upon then scheduling a time with an inspector to review the repairs prior to the walk-thru is recommended. Walk-thru the home and make sure personal items that were included in the sale have been left and that no debris or trash remains.

·     What happens if the condition of the home is not satisfactory at the time of the walk-thru?

Consequences of an unsatisfactory walk-thru may vary depending on the issue. For example, if furniture and personal items that were not contained in the contract are left at the home then the buyer’s attorney may ask for the sellers to remove these items or provide money to the buyer at the closing to cover the cost of removal.  If something has been removed from the house, such as a washer or dryer that was included in the contract, then the buyer’s attorney might ask for their return or for money from the seller to cover the cost of replacement.

·       As a seller, what can I do to avoid issues arising during the final walk-thru?

Make sure you understand the items that are listed in your sales contract.    Be sure to leave those personal items that you have agreed to leave and clear out any trash or debris. If you have agreed to make repairs, be sure to provide copies of those receipts and any warranties that may be associated with those repairs, to your attorney for reference and for delivery to the buyer.  Please leave the house clean and ready for occupancy. 

There is a healthy, active inventory of 7,973 single family homes on the Greater Fairfield County Consolidated Multiple Listing Service. To date, we have 4,051 sales representing a unit sales decrease of 11% vs. the first seven months of 2010. The result is a 14 month supply of homes currently on the market. The median selling price county-wide is $400,000 which is only a 1.5% decrease versus this same time frame last year.  This update provides more evidence that prices during the first 7 months of the year did level off.  This is not the case in every town and can be broken down for each specific property so it is important for our listeners to talk to their REALTOR® about the advantages of buying or selling in a specific town and price range at this time.

There are 1,055 properties with fully executed contracts waiting to close. The median list price of those homes is $335,000, 16.3% lower than the median sales price of closed homes so far this year.  Indications are that the last 5 months of this year will produce a lower number of sales and lower selling prices.  In various towns, we have seen the top end of the market slow dramatically as activity in the lower tier continued.

There are 485 properties with accepted offers.  The median list price of those homes with accepted offers is $364,900, 8.7% lower than the median selling price of the properties that have closed so far this year. 

Overall, county-wide sales in the upper tier remain just behind the rate of sales last year with 177 closed single family sales, over $2MM this year, which is .6% less than the number of sales in that price range last year.  72 single family homes over $3MM have sold so far this year representing a unit sales decrease of 4%.  Sales in the upper tier started out strong but seem to have slowed during the second half.

Sellers should talk to their REALTORS® about ways to make their homes stand out above their competition and if they really want to sell they must price realistically! It is interesting to note that 15% of sales in one Fairfield County town closed at or above list price during the first 5 months of the year.  Buyers recognize a fair deal and will compete with other buyers when they see a fairly priced property.

You’ve probably heard more than once that today’s perfect storm of low prices, high inventory, and affordable interest rates are making this the right time for you to buy that home you’ve always wanted. As you begin to shop around, however, there are several important criteria to consider in order to make the best choice for you and your family.

Discuss the following with your real estate agent before you begin looking for a home. This will help narrow down the choices and shorten the search process.

Type of home: One-story or two, single-family, duplex or condo? How will paying homeowner dues affect your overall buying power? Will a swimming pool be a bonus or a hindrance? Making these decisions in advance will help you focus on the right types of homes to look at.

New or existing: A new home is all shiny and clean, but will carry with it some hefty initial costs such as landscaping and window coverings. Many builders are offering great deals on new homes that aren’t yet in move-in condition. Weigh the potential bargain against the costs involved in completing the home on your own. While these factors don’t come into play with existing homes, you need to assess its general condition, which will also impact your budget.

Features: Weigh the costs of gas vs. electric heating and cooling, the possible need for fencing, etc. How important is a fireplace? Does the home have enough bedrooms and bathrooms to support your family in the coming years?

Ease of maintenance: What is the condition of the roof? The appliances? Will you have to paint the interior or exterior and/or replace the carpeting? Be sure to factor in such costs in your budget and your negotiations.

Location: For many of today’s home buyers, it’s all about lifestyle. Do you want to be in the city or in the country? Nearer to libraries, parks and entertainment or set among tall trees and lakes? What about the need for public transportation? Nearby hospitals and schools?

Crime rate and public schools: Check with local enforcement and local residents to get a feeling for statistics and quality. Your real estate agent should be able to run detailed crime and school reports for your perusal.

Economic stability: Whether an area is growing or not can affect its future property value – as will the economic stability of the area.

Property tax: Examine the annual amount of real estate taxes and other assessments levied in the neighborhoods you are considering.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission.

There is a healthy, active inventory of 8,078 single family homes on the Greater Fairfield County Consolidated Multiple Listing Service. We have 3,371 closed sales representing a unit sales decrease of 11.6% vs. the first six months of 2010. The result is a 14 month supply of homes currently on the market. The median selling price county-wide is $400,000 which is only a 0.7% increase versus this same time frame last year. This is not the case in every town and can be broken down for each specific property so it is important to talk to a local REALTOR® about the advantages of buying or selling in a specific town and price range at this time.

There are 1,192 properties with fully executed contracts waiting to close. That is 8.1% less than last year at this same time. The median price of those homes is $364,950, 9.6% lower than the median price of closed homes so far this year.

There are 534 properties with accepted offers vs. 536 last year, just about flat.  The median list price of those homes with accepted offers is $394,950, 1.2% lower than the median selling price of the properties that have closed so far this year.  This shows that prices are still soft but declining at a slower rate than in prior years. 

Sales in the upper tier have slowed versus last year with 145 closed single family sales priced over $2MM this year, which is 9.8% less than the number of sales in that price range last year.  62 single family homes over $3MM have sold so far this year representing a unit sales increase of 3.3%.  We will monitor the top of the market to determine if a trend towards stabilization is in fact developing.

Sellers should talk to their REALTORS about ways to make their homes stand out above their competition and if they really want to sell they must price realistically! It is interesting to note that 15% of sales in one Fairfield County town closed at or above list price.  Buyers recognize a fair deal and will compete with other buyers when they see a fairly priced property.

Traditionally in the real estate process, an inspection is requested by a home buyer around the time they are applying for a mortgage. In fact, more than 85% of home buyers request an inspection as a way to uncover hidden faults and costly repairs that may need to be taken care of. In today’s buyer’s market, revealing such faults prior to closing can serve as a bargaining chip for sellers, forcing the seller to either accept a lower price or foot the bill for repairs prior to closing.

That’s why an increasingly important strategy for home sellers in today’s market is to have your property inspected before even putting it on the market. Here are some reasons why:

• When potential buyers are considering your home, knowing that an inspection has already been done can make your home much more attractive to them. A pre-inspection can give you an important competitive edge by making buyers more confident about placing a bid on your home; with a pre-inspection, buyers know there will be no hidden surprises awaiting them down the road.
• If defects are uncovered once the buyer has already placed a bid and is applying for a mortgage, you are suddenly under the gun to either accept a lower offer or cough up the funds for repairs. Conversely, a pre-inspection allows you to take care of any repairs within your own timeframe. If expensive repairs are uncovered before putting your home on the market, you can budget accordingly over a period of time and comparison shop for the best pricing.
• A pre-inspection also allows you to decide which repairs are not necessary before putting your home on the market. Certain problems you might have been worried about may turn out not to be as bad as you originally thought…and, therefore, not make a difference in how you price your home.
• Having a pre-inspection affords you more control in the negotiating process. Being aware of your home’s pros and cons in advance, helps put you in the driver’s seat when it comes to price negotiations. In fact, a pre-inspection allows you to price your home more accurately in the first place.

As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Pricing Your Home Right!

My clients often want to price their homes above expected selling price because they want to leave room to negotiate or “wiggle room" as some call it.

What they don’t know is that leaving “wiggle room” can cause them to be priced above their market, reducing or even preventing showings causing their house not to be shown and not to sell. 

Fairfield County market activity is improving but inventory still exceeds normal levels and buyers remain concerned about the possibility of a double dip drop in real estate values.  Buyers don’t want to over pay and are being very cautious. 

Lenders are also extremely guarded.  Not only does the buyer have to be exceedingly qualified to gain mortgage approval but appraisers are also being very conservative in their calculations.  Fair selling prices must be well substantiated.  If a seller finds a buyer who is willing to overpay, the property is not likely to appraise satisfactorily for their lender!  Buyers paying cash will probably order an appraisal and even cash buyers are not likely to pay more than appraised value.

There are plenty of houses to show.  Agents will show the houses that are fairly priced, first.  If your house isn’t among them, you might just miss buyers all together.  In this market, the houses far outnumber the buyers, so no seller should miss a chance to get their house shown and sold.

Lastly, if your house is overpriced, a buyer who is searching in that price range will see other houses that offer them more.  The other houses will be larger, newer, have more land, be in better condition, have more amenities, be in more desirable locations, have better layouts and flow, have more land etc.  They will buy the other houses where they get more desired features.  Wouldn’t you?

Pricing right works! I just reviewed all properties, sold in 4 local towns since January 1, 2011.  Of the 510 sold properties, 76 of them or 15% sold at or above the List Price and they sold in half the time of the others.  If you’ve ever had your house on the market, you can certainly appreciate getting market value with only half the inconvenience of showing your house.  That is a major victory! The properties that sold at or above list price are below.

If your home is priced right, buyers will pay your price.  If not, you can always refuse their offer and wait for the possibility of another offer.  But, be careful when refusing offers.  Be certain that you can document the value before refusing offers.  The research does show that first offers are often higher than offers that might follow.

Barbara Corcoran, the NBC real estate expert insists that pricing is a war and your price has to be lethal for you to win the war and sell your house.