The Two Things You Don’t Need to Hear from Your Listing Agent

 

by The KCM Crew on September 16, 2014

You’ve decided to sell your house. You begin to interview potential real estate agents to help you through the process. You need someone you trust enough to:

1. Set the market value on possibly the largest asset your family owns (your home)
2. Set the time schedule for the successful liquidation of that asset
3. Set the fee for the services required to liquidate that asset

An agent must be concerned first and foremost about you and your family in order to garner that degree of trust.  Make sure this is the case.

 

Be careful if the agent you are interviewing begins the interview by:

• Bragging about their success
• Bragging about their company’s success

An agent’s success and the success of their company can be important considerations when deciding on the right real estate professional to represent you in the sale of the house. However, you first need to know they care about what you need and what you expect from the sale. If the agent is not interested in first establishing your needs, how successful they may seem is much less important.

Look for someone with the ‘heart of a teacher’ who comes in prepared well enough to explain the current real estate market and patient enough to take the time to show how it may impact the sale of your home. Not someone only interested in trying to sell you on how great they are.

You have many agents from which to choose. Pick someone who truly cares.

Thinking of selling a home, contact someone who cares.

Noemi Cardoso
William Raveis Real Estate
911 Main Rd, Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com

4 Reasons to Buy Before Winter

 

by The KCM Crew on September 8, 2014    
                

It's that time of year, the seasons are changing and with them bring thoughts of the upcoming holidays, family get togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don't have to look much farther to find four great reasons to consider buying a home now, instead of waiting.
 

1. Prices Will Continue to Rise

 

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next five years to be between 11.2% (most pessimistic) and 27.8% (most optimistic).
 

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
 

2. Mortgage Interest Rates Are Projected to Increase

 

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of next year.
 

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
 

3. Either Way You are Paying a Mortgage

 

As a recent paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
 

4. It’s Time to Move On with Your Life

 

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.
 

Bottom Line

 

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Cork Flooring: A modern floor choice.

I had a showing on a modern house today, and the looks, 'oh's! and what's?' along with the face expressions I saw on the other agent and their buyer's were annoying. They were shocked to see a house that is not the average new englander house. Even tough the whole marketing advertises this is a 'true contemporary with european flare', somehow they still expected to see a cape with all the 'normal' local materials.

Just because you never saw a house with cork floors or Plynyl woven floormats by Chilewich, or copper counter tops, or a custom made barn door as a bathroom door, it doesn't mean they are not viable solutions to a creative archtect or home owner. There are much more building materials than the maple, brazilian cherry, oak, vinyl, ceramic, granite, marble, corian and carpet.

In many countries houses are built with cement, travertine floor and roofs are made of clay, yet, even if different from the houses in the local market, these houses are gorgeous, energy efficient, don't burn completely down with a fire and many are truly innovative. Besides being creative and not a cookie cutter local style (cape, colonial, ranch, raised ranch), a contemporary home allows for creativity, not just in style, floor plan but in use of environmetaly friendly materials.

So, I decided to share a little about some of these innovative materials. 

Today we will share information on Cork flooring, which amazingly has been used for over 100 years in Europe and South America. From harvest to installation, cork flooring is possibly the most environmentally sustainable, non-toxic and healthy of all flooring surfaces.

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Cork Flooring: A modern floor choice

by Bob Borson

Cork flooring is a bit of a mystery – not just to me but to everyone I’ve ever asked … although they don’t all admit it. If you do any research on cork at all, you will find all sorts of conflicting information. Normally I could turn to my overwhelming experience and share more information than you would ever want to know except I have only used cork on the floor in a project once before – in this kitchen:
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The client who requested this cork floor does a lot of entertaining and cooking so invariably spends hours at a time on her feet while in the kitchen. I do love the way this kitchen looks – so clean and modern – every time I look at it I ask myself “why aren’t more people using cork?”

I spent a lot of time looking for reasons to use or not use cork. I’ve skimmed millions of pro/con lists … and I have come to the conclusion that everybody has different opinions and experiences. People equally love it or hate it, there doesn’t seem to be any consistency and it’s driving me crazy!!!! The cork I’m talking about isn’t the stuff you buy to use on the typical bulletin board – that stuff is not nearly as dense and can fall apart fairly easily. No, the cork used for floors can be some amazing stuff.
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Commercial flooring applications in Europe have been using cork for well over a century, but the growing interest in green living is making cork a more popular choice for residential living in the United States. From harvest to installation, cork flooring is possibly the most environmentally sustainable, non-toxic and healthy of all flooring surfaces.

Cork is harvested from the bark of the Quercus suber tree, more commonly referred to as a cork oak tree, which is grown in the Mediterranean region and has a life span up to 250 years. After the first 25 years of growth, the tree is stripped of its bark for the first time using traditional hand labor methods.

This process is repeated every nine years with little or no affect on the health of the tree. During each harvest, about 50 percent of the bark is removed.

Unlike traditional wood flooring, the entire tree is not cut down, only the outside is removed. Harvesting does not harm the tree and a new layer of cork bark grows, making it a renewable resource. Ultimately, old age is what kills the trees, not the harvesting process.

Similar to growth of the raw material, manufacturing methods are also geared to protect the environment. To produce cork flooring, virgin cork bark and post-industrial waste cork from the manufacturing of other cork products is ground into small granules. During the manufacturing process, all raw materials are consumed, either for the finished flooring product or as an energy source. Production waste of cork dust and tree trimmings are burned in furnaces that supply heat to bake the cork tiles.

For people with allergies, cork flooring is an ideal surface. It is antimicrobial and less likely to be affected by mold and mildew. It does not absorb dust or pollen, making it easier to rid the home of these potential allergens.

The benefits of cork don’t end there. The bark contains a substance called suberin, a waxy waterproof substance present in the cell walls of cork tissue and a natural insect repellent. Suberin also protects cork from fire and when cork is burned, it does not release any toxic gasses.

And to add to its bounty of riches, the insulating properties of cork flooring contribute to energy efficiency. Experts say that even a cork under-layment will provide significant insulation in the cold months.
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Cork Facts:

• Cork is a completely natural product, largely unchanged by processing.
• Cork is naturally fire resistant and it does not release any toxic gases on combustion.
• Cork flooring is regarded as one of the better choices in flooring for natural sound insulation because it absorbs ambient sound and generally reduces noise
• Due to the elastic nature and miniature cells composition, it is an extremely durable flooring material.
• Cork is worth considering for people with allergies. Due to the presence of a naturally occurring substance called suberin, cork is naturally resistant to deterioration and water damage, resists the growth of mold, mildew, bacteria, prevents the cultivation of mold, and keeps away bugs and dust mites.
• Cork flooring is warm under foot and insulates heat and cold.
• Cork has a unique cellular structure with millions of cells enclosed with a gaseous substance, providing a comfortable cushioned surface that gives a soft feeling to the feet and joints of people walking and standing on cork floors for extended periods.
• Cork floors have a very long life and can be repaired if damaged.
• Cork is an anti-static surface

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Cleaning Cork Floors:

The daunting task of re-finishing or re-staining cork can become a burden due to the nature of the material. Cork must be initially sealed, and re-sealed every few years in order to protect the integrity of the material by keeping dirt and moisture at bay. Since cork has a thin outer layer, moisture and excessive dirt can damage the flooring. In addition to the added maintenance of sealing the floor, cork cannot tolerate regular cleaning products and, therefore, requires special attention. A solvent paste wax is recommended, but this process can be rather time consuming to apply.

• Wipe away spills immediately.
• Sweep or vacuum your cork floors regularly to remove dirt, dust, grit or debris which may act like sandpaper and will scratch any floor. This will prevent abrasion or scratches on the surface of cork floor.
• To clean a heavy stain or spill, use only the cleaners especially recommended for cleaning cork floors.
• Cork floors being a natural wood product can absorb moisture. Never allow any liquid to stand on cork floors; water can seriously damage the floor over time.
• Damp mop the floor at least once a week or as required. Avoid wet mopping. Be sure to use only a ‘damp’ mop as excess water will harm the floor in the long term.
• Do not flood the floor while cleaning or mopping.
• You can use mild wood-floor detergent once in a while for cleaning cork floors thoroughly.
• Use only non-abrasive soaps and cleaning materials when cleaning cork floors. Do not use oils or waxes or ammonia-based cleaning products. Never use harsh solvents or cleaners; many solvents can discolor or damage the floor’s surface.
• Place door mats and pads at the entrances, to prevent dirt, sand and grit being tracked onto the floor. However, do not use mats with rubber or other non-porous backings since these could trap moisture

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Resources:

I’d like to thank the following sites for contributing to my research on this post: US Floors Build Direct WE Cork Wicanders APC Cork but most of all I would like to thank Floor Covering News. Since I was having a hard time getting some information I felt was reliable, I shot an email off to FCNews and they responded back immediately. The next morning I found an email waiting for me that was full of data, resources, pictures and links. It really was above and beyond and I will remember it. I love getting such good service – makes me feel special.

12,575 Houses Sold Yesterday!

 

by The KCM Crew on April 23, 2014 


If you read certain headlines, you might be led to believe that the housing recovery has come to a screeching halt. Naysayers are claiming that rising mortgage rates and a lack of consumer confidence are keeping Americans on the fence when it comes to purchasing real estate. That is actually far from reality.


After all 12,575 houses sold yesterday, 12,575 will sell today and 12,575 will sell tomorrow. 12,575!

That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. According to the report, annualized sales now stand at 4.59 million. Divide that number by 365 (days in a year) and we can see that, on average, over 12,500 homes sell every day.

If you are considering whether or not to put your house up for sale, don't let the headlines scare you. There are purchasers in the market and they are buying - to the tune of 12,575 homes a day.

So, if you are ready to sell give me a call and let's get started.

Noemi Cardoso
William Raveis Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com

Real Estate: This Spring Will Be Different.

The KCM Crew. - Posted: 17 Apr 2014.

Just like May flowers, every spring the housing market blossoms as buyers come out ready to purchase their dream house. This spring, we believe we are going to see the strongest purchasing market we have seen in a decade.

Why are we so bullish on the housing market this spring?

Here are a few reasons:

MILLENNIALS

Contrary to many reports, this age demographic is READY, WILLING and ABLE to become homeowners. As a matter of fact, the latest National Association of Realtors’ gender study revealed that the Millennial generation has recently accounted for a greater percentage of all buyers than any other generation.

BABY BOOMERS

As prices have risen, so has the equity in many homes across American. Homeowners, having been shackled to their house because of low or negative equity for the last several years, are again free to make a move without worrying about bringing cash to a closing table in order to sell. We believe this new-found freedom will release a pent-up demand of sellers who want to move-up to the home they’ve always dreamed of or want to downsize their primary residence and also purchase a second home they can use for vacation, retirement or both.

BOTH PRICES and MORTGAGE RATES are on the RISE

As the economy improves, more and more Americans are regaining faith that their own personal finances are headed in a positive direction. With this new confidence, they want to take advantage of the opportunity that presents itself with real estate still undervalued in most parts of the country and mortgage rates being well below historic numbers.

A Home’s Cost vs. Price Explained

by The KCM Crew on April 2014.

We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned about price but instead about the ‘long term cost’ of the home. Let us explain.

Recently, we reported that a nationwide panel of over one hundred economists, real estate experts and investment & market strategists projected that home values would appreciate by approximately 8% from now to the end of 2015.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30 year fixed mortgage rate will be 5.7% by the end of next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

3 Reasons to Sell Your Home This Spring

by The KCM Crew on April 8, 2014    

 

 

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.

1. Demand is about to skyrocket

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.

These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition - For Now

Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.

The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 4% this year and 8% by the end of 2015. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.

Moving up to a new home will be less expensive this spring than later this year or next year.

Hispanic Millennials & Housing

by Jeymy Gonzalez on April 2, 2014    

Nielsen recently released their report “Millennials – Breaking the Myths” and today I want to focus on the information reported about Hispanic Millennials.

Of the 77 million Millennials, 19% are Hispanic. This group (age 18-36) is the most racially and ethnically diverse than any previous generation. According to this report, Nielsen expects the Hispanic population to grow by 167% by 2050.
Millennials are 14% first generation, and 12% second generation Americans, keeping strong ties to their home country, culture and language. For example:

1. 63% of the Millennials feel it is their responsibility to care for an elderly parent, according to Nielsen: “this is partially tied to the ethnic diversity of the generation. Typically ‘Hispanic and Asian Americans’ have cultural expectations that elderly family members will be cared for by the younger generations.”

This can help you to understand why when a Hispanic Millennial is looking for a home, they are requesting that extra bedroom.

2. 65% of Hispanic Millennials are U.S. Born and are more bilingual than other generations

• In 2003, 34% were Spanish dominant, 44% English dominant, 22% bilingual
• In 2013, 31% were Spanish dominant, 31% English dominant, 38% bilingual

"Today, the bilingual Hispanic is the dominant group within these Millennials.” According to this report, this is telling us that “Hispanics are choosing to speak more Spanish and maintain cultural ties.”

Where are they looking for homes?

This report revealed “62% of the Millennials prefer to live in the type of mixed-use communities found in urban centers where they live in close proximity to a mix of shopping, restaurants and offices. This is the first time since the 1920s where the growth in U.S. cities outpaces growth outside of the cities. And, 40 percent say they would like to live in an urban area in the future.

The “American Dream” is transitioning from the white picket fence in the suburbs to the historic brownstone stoop in the heart of the city” and the markets with a major concentration of Millennials reflect this desire:

Top 10 markets for Millennials (by %):

• Austin, TX (16%)
• Salt Lake City, UT (15%)
• San Diego, CA (15%)
• Los Angeles, CA (14%)
• Denver, CO (14%)
• Washington, DC (14%)
• Houston, TX (14%)
• Las Vegas, NV (14%)
• San Francisco, CA (14%)
• Dallas-Ft. Worth, TX (14%)

 

Home Sales Up in 3 of 4 Regions

Some industry gurus are questioning whether the housing momentum we saw early in 2013 began to dissipate later in the year. The more dramatic have claimed the housing sector is still on shaky ground. Others have blamed the slowdown in sales on a lack of consumer confidence or rising interest rates.

The National Association of Realtors (NAR) just released their 2013 4th Quarter Housing Report. The report revealed that home sales numbers barely outperformed (an .08% increase) those in the 4th quarter of 2012.

We believe the leveling in home sales is directly attributable to a lack of salable listing inventory; specifically in the West.

Three of the four regions in the NAR report had an increase in sales: Northeast (+7.1%), Midwest (+2%) and South Regions (+3.6%). A big fall-off in sales occurred in the Western Region. The dramatic fall-off in the West (-8.1%) can be directly linked to a shortage of inventory in their hottest markets.

If the decrease in sales was caused by an eroding of consumer confidence and/or rising interest rates, we believe each region would have seen similar decreases.

by The KCM Crew on February 19, 2014 in For Sellers

Spring is just around the corner and this is the best time of the year to sell a home. If you are ready to sell your home and  are looking for an agent that work with your goal in mind give me a call and let's start working and get your home sold.

Noemi Cardoso
William Raveis Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com

10 Things That Make a Home a Good Home

Buyers spend a lot of time looking at properties online, touring homes on the Sunday open house circuit, and talking to their real estate agent. They’re laser-focused on finding the best home that meets their needs. The problem is, buyers sometimes don’t take the long view of a property. They’re only looking at a home as a potential buyer — and not as someone who, years down the road, may also have to sell the property. Given that homes are such a big investment, there should be a little inside your head, picking away at your options and decisions.

As the home buying market starts to heat up again, here are ten things you should consider when choosing your next home.

1. Location, location, location

 

Perhaps nothing is more important than the three L’s, and there’s a reason why it’s said three times.

Location is extremely important when it comes time to sell. You can have the worst house in the world with the ugliest kitchen and bath. But put it on a great block or in a good school district, and your home will be coveted.

Location location location matters on so many different levels. At the highest level is the town where the house is located, then the school district, then the neighborhood and the block — right down to the location of the lot on the block. Keep all of this in mind when shopping. Also remember that while real estate markets rise and fall, no one can take a great location away from you.

2. The school district

 

The school district is right up there on the list of what’s most important to many buyers. It’s not uncommon for buyers to start their search based solely on the school district they want to be in. Parents want their kids to go to the best school, which can drive up prices of homes in those districts. Even though you might not have children, buying a home in a good school district is always smart. If the schools are desirable, homes tend to hold their value. As a homeowner, you should always be aware of how the schools are doing, not unlike being aware of your roof’s condition, the neighborhood development or city government.

3. The home’s position on the lot

 

Where the home sits on the lot in relation to the street or the overgrown oak are key elements in picking out a home. In the case of a condo, an end unit vs. an interior unit is a key consideration. You may have chosen the most beautifully renovated home in the best school district and figure all is good. But if the main living areas are shaded by a neighbor’s extension or the master bedroom looks into the neighbors’ family room, you may have a location problem. Light or privacy may not be a hot button for you, but chances are, they might be concerns for a future buyer.

4. Crime

 

It’s a good idea to check the latest crime figures for a neighborhood. It can give you a good snapshot about the number and severity of crimes over a time period. So much information is online nowadays that when you find your perfect home, a quick Internet search on the area should provide you with the much-needed information.

Most municipalities post their police blotters or crime statistics online these days.  Don’t freak out if you notice more crime than what you’d have expected. Crime, especially petty crime, is everywhere. If you’re new to the area, consult with your real estate agent if you have concerns.

5. Walkability

 

More than ever, ‘walkability’ is becoming a key factor in the search process.  There are entire websites, apps and algorithms that help people figure out how walkable their future home is. As a matter of fact, Zillow even has a Walk Score for most homes.  As people get out of their cars and slip into their Keds, they want a home in a walkable neighborhood. People put high value on the ability to walk to a store, school, work or public transportation.  The more we move away from cars and the more we see invested in public transportation over the coming decades, the more of a huge value-add walkability will become.

6. The neighborhood’s character

 

You may have found the absolute most perfect home, on the best block, in the best school district and on a great lot. But there could be circumstances outside your control that may give you pause — specifically, the character of the surrounding neighborhood.

Check out the area late at night, early morning and in the middle of the day. See if there are any odd weather or traffic patterns and try to observe some of the neighbors. You may even go so far as talking to some neighbors. It’s important to walk around, open your eyes and ears and make sure there isn’t anything you’re overlooking. That next-door neighbor practicing drums in the garage at 9 p.m. could be a source of immediate neighbor conflict. Go into it with eyes wide open.

7. Don’t buy the best house on the block

 

Simply put, avoid buying the best house on the block because there may not be any room for your investment to grow (unless you physically have the house moved to a better neighborhood). It’s better to buy the worst house on the best block, because you can improve the house to add value to an already great location.

8. Is it a fixer-upper?

 

If you’re buying a fixer-upper, make sure you understand what you’re getting into.  Did you set out to buy a home that needed work? Or does the home just happen to be in the most desirable neighborhood, the block of your dreams?

Do your homework upfront. If you want to build an extension or add another story to the property, make sure it is within local zoning or building codes. Have the property inspected so that you know exactly what you’re getting yourself into. Sometimes, what appears to be a simple kitchen needing cosmetic work turns out to be a huge project. Ask yourself repeatedly if your life can support a home renovation. Not only does a renovation take money, it takes time, energy and emotional stress.

9. Will the home hold its value?

 

A good real estate agent who’s been working the neighborhood for some time can vouch for the long-term value or investment potential of the property. But be sure to find ways to add value, or at least be certain the home will hold its value.

The market may be strong when you purchase, but ask yourself, “Am I in a seller’s market?” “What would happen to this property if the market changed tomorrow”? Check out the median home value in the neighborhood as it compares to neighborhoods around it. The Zillow Home Value Index gives you one, five, and 10-year snapshots of how home values have gone up or down in neighborhoods and cities.

10. Taxes, dues and fees

 

Many people overlook the monthly fees associated with homeownership. Nearly every property will have taxes, and any sort of planned community or homeowners association (HOA) will have regular assessments.

Be sure that the amount of property tax and assessments are clear from the get-go. If in doubt, go to city hall or do research online. If you’d be buying into a condo complex, be sure to get your hands on the meeting minutes, financials of the HOA and the condo documents. Any mention of changes coming down the pike?

Does the HOA seem well funded? It could take one quick $10K assessment to immediately affect property values if you need to turn around and sell your new home. And any uncertainty about the building, its integrity or the financials could scare off buyers when it’s time to sell.

Author: Brendon DeSimone

The #1 Reason You Should Sell Now

by The KCM Crew on January 13, 2014 in For Sellers 

The price of any item (including residential real estate) is determined by ‘supply and demand’. If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. Putting your home on the market now instead of waiting for the increased competition of the spring might make a lot of sense.

Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory available in most markets currently, a seller will be in a great position to negotiate.

So if you are ready to offer your house now, feel free to contact me. I am ready to start working for you when you are.

Noemi Cardoso\
William Raveis Real Estate
Cell: 508-558-1945
Serving MA & RI
Fluent in Portuguese and English

Predictions for 2014: Sales Will Surge

by The KCM Crew on January 6, 2014
 
Many housing pundits are calling for home sales to do slightly better in 2014 than they did in 2013. To the contrary, we strongly believe that home sales will skyrocket with increases of 10-15% in 2014. Here are the three categories of buyers we believe will create this strong demand.

The First Time Buyer

 

The Urban Land Institute recently released a report, Emerging Trends in Real Estate 2014, projecting that 4.48 million new households will be formed over the next three years. Millennials will make up a large portion of these new households. With the economy improving, we believe they will finally be moving out of their parents’ homes and, when they compare renting versus buying, many will choose homeownership.

The Move-Up Buyer 

 

Over the last several years many homeowners were trapped in their home by negative equity. This prevented them from moving up to the home of their dreams. Zillow has just revealed that home equity increased by $1.9 trillion dollars in 2013 an increase of 7.9% in the last twelve months. With home values rising, this pent-up demand will finally be released and move-up properties will be in high demand.

The Immigrant Buyer

 

No one knows what will happen with immigration reform. However, we do know what such reform would have on housing demand. A recent study released by the Immigration Task Force of the Bipartisan Policy Center (BPC) found that immigration reform, if passed, would dramatically increase demand for housing units; increasing residential construction spending by an average of $68 billion per year over the next 20 years.

We realize that our projections are based on three situations that are still uncertain. However, we believe that these issues will come to fruition and thereby dramatically increase demand for homeownership.


It is up to the builders and real estate agents in each community to make sure this doesn’t happen.

Harvard: 5 Financial Reasons to Buy a Home

by The KCM Crew on December 2013 in For Buyers

Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. This year he released a new paper on homeownership - The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home.
Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available. 

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.” 

2.) You're paying for housing whether you own or rent. 

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning. 

“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for many social and family reasons. It also makes sense financially.

Buying a Home? Don't Let Fear Get in Your Way

by The KCM Crew on December 9, 2013 in Millennials    

Our founder, Steve Harney, occasionally asks to do a personal post on what he sees as important to our industry. Today we are reposting one of his favorites from this past summer. Enjoy! – The KCM Crew

Last week, I was talking to a young couple I know that was about to close on their first home. They were riding the wild rollercoaster of current mortgage rate swings and were not happy about the mortgage process overall. Yet, when the conversation shifted to finally living in a home that they own, their disposition changed dramatically.

A smile came across their faces as they talked about decorating their son’s bedroom and how much he will enjoy the backyard. They talked about inviting friends over for dinner and their family over for the holidays. The more they talked, the more excited they became.

I asked them if many of their friends were also buying. I was shocked to find out that they weren’t. Why not? Their friends believed that homeownership was financially unobtainable right now. Many wanted to own but didn’t think they could afford the monthly mortgage payment. They decided to rent instead.

I said that, with interest rates and prices where they are today, owning a home might not be any more expensive than renting one. The couple agreed but said their friends were afraid; afraid they might not qualify for a loan, afraid to handle negotiations with a seller, afraid of the home buying process itself.

Wow!

People should not make decisions out of fear! I’m not saying that every young person should own a home. I am saying that anyone that is qualified and wants to buy should not be afraid of the process. I realize the process may seem daunting but realize over 10,000 homes sell every day in this country. Sit down and discuss your goals with professionals from both the real estate and mortgage industries. Get the facts. Make an informed decision. Don’t let the fear of the unknown prevent you from living the life of your dreams.

Why Do American Families Buy a Home?

by The KCM Crew on September 9, 2013

in For Buyers, Pricing

There is a plethora of opinions voiced by real estate gurus as to why the dream of home ownership is so important to most Americans. However, study after study reveals the same five reasons families decide to buy a home. They…

1. Want a good place to raise children
2. Want a place where their family feels safe
3. Want more living space
4. Want control of that living space
5. Realize that owning makes better financial sense than does renting

(For those who question the validity of  number five after the recent housing crisis, Harvard University just finished a study on the issue)

If you are considering purchasing a home, look at the five reasons mentioned above. If any of them apply to you and your family, perhaps it is time for you to take the plunge. With both prices and interest rates rising, waiting will only increase your monthly cost as we move forward.

Noemi Cardoso
William Raveis Real Estate
www.DistinctiveHomes-NE.com
Noemi@Distinctivehomes-ne.com
 

Do Remodeling Projects Pay?

by Monica Perdue

We all love to see the before and after on home remodeling shows and the biggest appeal seems to be updated kitchens and master baths.  It’s all about the “wow” factor!  But when you are selling your home, it’s important to consider (in business terms), the ROI, which is Return On Investment.  Cost versus value is clearly a tricky thing.  According to the National Association of REALTORS, “A house that sparkles on the surface will sell faster than its shabby neighbor, even though both are structurally well-maintained… Buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can’t see has probably also been maintained.”

Considering potential renovations requires research.  Personally, I’d love to have a luxurious master bath with heated Travertine tile floors, mosaic accents in the over sized fully glass-enclosed shower with wall jets, not to mention those sexy above counter sinks, but is it worth the investment?  Appraisers care more about the condition of the house and property, square footage (overall living space), number of bedrooms and baths, and what your neighbor’s home sold for, not necessarily the latest bathroom renovation . It’s all about function over form.

The Remodeling 2012–13 Cost vs. Value Report (www.costvsvalue.com), outlines which project give you the most bang for your buck! It may not all be so sexy, but when you’re ready to sell, getting more return for your investment makes you feel much more warm and fuzzy about the deal.

Entry Door Replacement (Steel): Not sexy at all, but this simple update costing an average of $1,100 gives you an 85% return, that’s over $900 back.  And in the meantime you have more security and an entryway that could appeal to potential buyers.

Deck Addition (Wood): This is definitely a more fun add-on, but may not be on your remodel list. This renovation has an average 77% return, with the average cost around $9,000 and a re-sale value of $7,000.  It’s definitely something to consider.  Using composite over wood elevates the cost significantly (average$15,000 ) and your return percentage drops to 67%. When considering this type of remodel, wood may provide the best return.

Minor Kitchen Remodel: When I saw this, my big question is “What does ‘minor’ mean?”  Essentially this is a re-facing of the kitchen, keeping all the structure of the current kitchen, replacing cabinet facings (doors, drawers and hardware), updating counter tops, sink and faucet, new energy efficient oven and cook top, as well as repainting. This “minor” kitchen remodel could cost an average of  $18,500 with over 75% return – potentially $14,000 back in your pocket when you sell.

Siding Replacement (Vinyl): This is not an exciting conquest when looking at remodeling options, but when you are selling your home, consider what an inspector will be looking at for your prospective buyer.  No one wants to come into a home with a need for hefty updates, especially replacing siding.  If your house needs it, it’s definitely value added.  Another 73% return with an average cost of $11,000 adding $8,000 in home value.

Basement Remodel: More “livable” space always increases value. While this is the most expensive remodel yet, it provides great return for dollars spent.  Extra living space immediately adds value, but a finished basement can be many things to many people. It could be a second/separate living space for family. It could be a great place to entertain. A place to send your kids to watch movies, or to get away from your kids.  Possibilities are virtually limitless.  This being an extensive project with extensive costs (average $60,000), this would be a great option for someone looking to sell down the road. Get some of that value for yourself and then hopefully get it back at about 70% return when you sell.

Bottom line, your remodeling plans need to be something that will make you happy now as well as help you sell later because in most cases you won’t get 100% of your investment back. With all renovations to your home, your return will vary from buyer to buyer as well as from one location to the next. It’s important to discuss your desired updates with a respectable contractor. And when considering these renovations for resale value, it’s even more important to discuss with your local real estate professional. They have the best grasp of what you can gain based on the renovation and the buyers market in your area.

© 2012 Hanley Wood, LLC. Complete data from the Remodeling 2012–13 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

Noemi Cardoso
William Raveis Real Estate
Noemi@DistinctiveHomes-NE.com
Serving MA & RI

Selling a House? 5 Reasons You Should Do It Now

by The KCM Crew on June 20 2013 ·

in For Sellers

Many are talking about why now is a great time to buy a home. Today, we want to look at why it might also be an opportune time to sell your house. Here are the Top 5 Reasons we believe now may be a perfect time to put your house on the market.

1.) Demand Is High

Homes are selling at the fastest pace since November 2009 when the market spiked in response to the home buyer tax credit. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that monthly sales increased 9.7% over the same month last year. Total sales have been above year-ago levels for 22 consecutive months. There are buyers out there right now (buyer traffic is 31 percent stronger than a year ago) and they are serious about purchasing.

2.) Supply Is Beginning to Increase

Total housing inventory last month rose 11.9% to 2.16 million homes for sale. This represents a 5.2-month supply at the current sales pace, compared with 4.3 months in January. Many expect inventory to continue to rise as more sellers escape the shackles of negative equity. Selling now while demand is high and before supply increases may garner you your best price.

3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.

4.) Interest Rates Are Rising

According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year mortgage have shot up to 3.98% which represents a jump of more than ½ point since the beginning of the year. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:

“Rates are unlikely to keep going up so quickly and should remain below 5%.”

Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5.) It’s Time to Move On with Your Life

Look at the reason you are thinking about selling and decide whether it is worth waiting. Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of your situation by putting the house on the market today. The time may have come for you and your family to move on and start living the life you desire. That is what is truly important.

Inventory is low, buyer's are very active, interests still can be found in the 4% and summer starts tomorrow. This is a very dynamic combination. If you are ready to jump back into the market to sell either be to relocate, upgrade or downsize this is the time to do so. Call me and let's get the ducks in a row to get your home SOLD!

Noemi Cardoso
William Raveis Real Estate
508-558-1945

 

Landscaping Can Impact House Prices

CHICAGO (May 15, 2013) – The Appraisal Institute, the nation’s largest professional association of real estate appraisers, today advised homeowners to properly maintain their landscaping, which can significantly affect property values.

“If a landscaping change is positive, it can often enhance price and reduce a home’s time on the market,” said Appraisal Institute President Richard L. Borges II, MAI, SRA. “But if the change is negative, it can lower the price and lengthen the time a home remains for sale.”

Curb appeal is essential when selling a home, Borges said, noting it’s the homeowner’s opportunity to make a great first impression. A home with lackluster landscaping or an exterior in desperate need of a fresh coat of paint will likely be unappealing to prospective buyers and ultimately could affect the home’s potential resale value, he said.

Landscaping is typically associated with lawns, trees, bushes and flowers. But other items also can be considered part of landscaping, such as fire pits, decks, patios, waterfalls, swimming pools and outdoor lighting … all of which could add to the value of the home.

Borges added that homeowners should trim growth regularly, replant approximately every 5 to 10 years depending on growth and not “overwhelm” the house. He also advised that homeowners check out what their neighbors have done and keep landscaping maintenance and improvements on par with neighborhood norms.

According to the International Association of Certified Home Inspectors, trees that are too close to buildings may be fire hazards. Additionally, larger tree root systems that extend underneath a house can cause foundation uplift and can leech water from the soil beneath foundations, causing the structures to settle and sink unevenly.

According to a recent study conducted by Lawn & Landscape magazine, about two-thirds of homeowners say they’ll get less than 60 percent of their landscaping investment back when they sell the home.

“Landscaping improvements could make an impact on resale value, and homeowners need to consider how long they’ll be in the home and whether to make short-term updates or plan for the long haul,” Borges said.

Borges said homeowners should ask themselves the following questions when it comes to the quality of their home’s green space:

• Is the landscaping attractive enough to make the prospective buyer walk through the front door? Keep the design contemporary and in line with comparable properties in the area.
• Could the landscaping provide cost savings? Landscaping that requires little or no water to maintain could be desirable depending on the geographic area.
• Is the landscaping energy-efficient for the home overall? For example, it’s a good idea to plant trees in a place where they block the sun in locations with year-round hot climates.
• Are the trees planted at a safe distance from the home and are they healthy and well maintained? Weak, old or damaged trees planted too close to a home or building could pose dangers to the home’s structure and will need to be removed. Consumers should also be sure that mulching or beds don’t get too close to wood around foundations to avoid wood-destroying organisms.

Ready to get that project going and sell your house? If so call me and let's now add to best marketing plan to get your house the exposure it needs to show off and attract that buyer!

Noemi Cardoso

William Raveis Real Estate

Cell: 508-558-1945

www.DistinctiveHomes-Ne.com

Fluent in Portuguese and English

Licensed in MA & RI

Top 10 Remodeling Projects [INFOGRAPHIC]

 

Spring is finally here and in another couple of weeks we temperature will be great for those home exterior projects we all have, specially after a winter filled with storms. So check below the top 10 remodeling projects and what type of recoup money you can expect when selling your home.

 

 

 

Have a great and healthy Spring.

 

 

January Pending Home Sales Up in All Regions

WASHINGTON (February 27, 2013) - Pending home sales rose in January, and have been above year-ago levels for the past 21 months, according to the National Association of Realtors®. There were healthy monthly gains in all regions but the West, which is constrained by limited inventory but was slightly improved.

See the interview with NAR Chief Economist Lawrence Yun

The Pending Home Sales Index,^* a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from a downwardly revised 101.3 in December and is 9.5 percent above January 2012 when it was 96.7. The data reflect contracts but not closings.

The January index is the highest reading since April 2010 when it hit 110.9, just before the deadline for the home buyer tax credit. Aside from spikes induced by the tax credits, the last time there was a higher reading was in February 2007 when it reached 107.9.

Lawrence Yun, NAR chief economist, said inventory is the key to this year's housing market. "Favorable affordability conditions and job growth have unleashed a pent-up demand. Most areas are drawing down housing inventory, which has shifted the supply/demand balance to sellers in much of the country. It's also why we're experiencing the strongest price growth in more than seven years," he said.

"Over the near term, rising contract activity means higher home sales, but total sales for the year are expected to rise less than in 2012, while home prices are projected to rise more strongly because of inventory shortages," Yun said.

The PHSI in the Northeast rose 8.2 percent to 84.8 in January and is 10.5 percent higher than January 2012. In the Midwest the index increased 4.5 percent to 105.0 in January and is 17.7 percent above a year ago. Pending home sales in the South rose 5.9 percent to an index of 119.3 in January and are 11.3 percent higher January 2012. In the West the index edged up 0.1 percent in January to 102.1 but is 1.5 percent below a year ago.

Yun expects approximately 5.0 million existing-home sales this year. However, price growth could exceed a 7 percent gain projected for 2013 if inventory supplies remain low. Previously, NAR had expected 5.1 million existing-home sales in 2013, while prices were forecast to rise 5.5 to 6.0 percent.

The National Association of Realtors^®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. For additional commentary and consumer information, visit www.houselogic.com and http://retradio.com.

 

# # #

 

^* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

Also released today are annual data revisions. Each February, NAR Research incorporates a review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. There are no changes to unadjusted or annual data.

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com