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A new lending proposal, referred to as the Dodd –Frank Act, based on the Senators that have submitted this proposal, will require that new purchases of real estate have a down payment of 20% or more.  This new proposal will be required for both first time home buyers as well as move up buyers.  Financial institutions that do mortgage funding with less than 20% securitized will be required to retain 5% of the credit risk of that loan.  Needless to say, that cost will be passed along to consumers.  “Are you kidding?” 

The motivation is clearly to address the deflation of property values, risk of foreclosure and the necessity to revisit a nationwide real estate bail out again in the future.  According to CoreLogic’s recently released statistics, approximately 2.7 million borrowers made down payments of less than 20% in 2010.  Of today’s current homeowners, 10.8 million have outstanding mortgages with less than 20%; an additional 11 million currently owe more than their home is worth. That means that 24.5 million people could never be move up buyers under this proposal.

The National Association of Realtors is strongly opposed to this measure noting that it would take the average household 10 years to save for a modest 10% down payment.  Even lending institutions understand the fatal flaw in this logic but need to come to grips with a loss in equity should our economy endure another real estate downturn in the future.  Is this the time to pass such radical regulation?   Consider that much of the foreclosure stock is being erased by purchasers who are grateful to purchase at adjusted home prices but as a majority, have done so with less than 20% as a down payment. 

The Federal Home Administration has been the agency where borrowers will flock to seek relief from the 20% down rule.  At this time, the FHA requires only a 3.5% down payment for qualified buyers.  This agency however has begun to withdraw from being the agency of last resort since the risk associated has become too great for this one institution to bear.  Industry advocates with a vested interest in vibrant home sales will enjoin on the battle front to convince decision makers that we need to find common ground so that a whole new generation of buyers as well as move up and side-ways buyers are able to be continued home purchasers. 

For more information visit our Goodwin Realty Group website

Most people understand the notion of staging your home’s interior prior to marketing but do you realize that staging begins outside?  Why spend both time and money beautifully staging the interior if your home doesn’t invite the customer in!  For this reason, it is important to look at the exterior of your home as critically as you do inside, and perhaps more importantly.  The buyer’s decision to enter your home and the emotion it invokes makes a big difference.

In warm weather, tidy the yard removing distracting items such tree limbs, broken plantings and dead flowers.  Be sure the lawn is weed-free and freshly manicured at all times.  Mulch bushes and flower beds.  Dress up the front with colorful, flowering plants.  Be sure to address areas such as the walkway and driveway as well for uneven areas of wear or intrusion of moss or other natural flora.  Powerwash the exterior of the house or paint as needed.  For a double bonus both inside and out, wash windows until they sparkle.  Make sure the gutters are properly connected and cleaned of leaves and other debris.  Move children’s toys and yard equipment to the rear of the house.  Check to be sure that light bulbs in lighting fixtures are working properly.  Take a walk around the exterior of the house and note any item that may need repair such as rotted window sills, vinyl siding that has come undone, compromised or broken seals on windows and trim or siding that either needs replacement.

In inclement weather, be sure that walkways and stairs are clear of snow and ice.  When possible, clear dirt and sand away from these same areas.  Make sure that your driveway is plowed and wide enough to allow customers to safely and easily get in and out of their vehicle.  Check that your house street number is prominently displayed or large enough for viewing.  Keep your ‘for sale’ yard sign upright and cleared of snow or leaves.

When you have concluded all the exterior primping, ask your real estate sales agent to take pictures from different angles and at different times during the day.  Walk to the front of your house and view your home as a potential buyer would do.  Note that shutters, mailboxes, steps, windows, roof, siding and lighting all come together to give an impression of the condition and maintenance of the interior of the house. 

For more information contact us at:  Goodwin Realty Group

With the Savings and Loan crisis in the 1980’s and 1990’s, a refinancing boom in 2003-2005 and now with the ongoing foreclosure debacle, it is becoming increasingly difficult to be assured that your home purchase will be delivered free and clear without title defects.  It is easier to spot physical defects such as encroachments but will improperly discharged mortgages or bank reassignments be discovered? 

 

Because Title Insurers have noted the complexity of real estate, two types of holding Title have emerged as a result--INSURABLE TITLE and MARKETABLE TITLE.  In the following paragraphs we’ll explore what they mean for the home buyer and which one affords more protection.

 

A marketable title is the “gold standard” and is a title that has no known defects.  This type of title accounts for the majority of title policies issued. 

 

An insurable title is a title that may have issues that prevent it from being delivered clean, clear and marketable but not so quirk some that it would prevent a Title Insurer from insuring.  In short, the known defects are “acceptable”.  Without this type of title many properties would not be able to sell.  Here are some examples of when an insurable title may be used:  a tax sale in a chain of title, a series of property lot line errors, pool, septic system, barn or other structure encroaching on a lot, a missing or deceased owner or heir, an old mortgage not properly discharged, unreleased liens.  These are overlooked and the title becomes “insurable” when a Title Insurer is willing to accept the deficiencies and write the policy.  The Title Insurer of course is motivated to pick up this policy by noting the limited level of risk.  The exception will be noted in the coverage section of the resultant Title Policy.

 

There is no requirement that a property convey without title problems—and in fact there are some rare circumstances where properties are sold with major title defects.  This of course may not be the case with mortgaged money as lending institutions have imposed their own restrictions.  The job of the closing attorney in many cases has been to resolve as many title difficulties as possible.  The benefit being that the “baggage” of the known title defects is not simply passed along to the next owner but rather addressed at the earliest occurrence.  The value of “insurable” title is that many difficult properties eventually find their way to the closing table instead of being tied up for an endless amount of time until their issues are fully resolved.

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In the past, to “sell” a home in Massachusetts and nationwide, the Seller simply needed to deliver a newly constructed deed to the new home buyer.  New home owners would safeguard this treasured document until their eventual sale.  Through the years and with the complexity of zoning regulation, family dynamics and mortgages, this paper deed needed to be publically acknowledged to render its validity.  Hence the ‘recording’ of the deed at the municipality’s Registry of Deeds.  Here in Easton, MA, our Registry is located in Taunton, which is the registry for all of Bristol County. Just recently they have added a satellite location in Attleboro.

 

As our society became quick paced and sales of homes were more frequent—a bygone era of passing the farm along to the next generation—the need for a form of home protection for good title was instituted.  Title insurance as it is called, was created to give comfort that the new property was conveyed a good, clear title, i.e. free from claim, encumbrance and defect.  Not only was this insurance for the new home owner but also for the lending institutions that were rapidly turning over property after property in a faster moving market.  This insurance then became a lending requirement by the lending institutions as a way to protect their collateral against true or erroneous claim.  A split of the title insurance emerged.  One form is a mandatory title insurance policy for the lending institution, paid by the borrower/home buyer and accounted for on the HUD settlement sheet.  The second form of title insurance is a policy that covers the new owners whose interest is not only for the mortgaged amount (as required by the lending institution) but the entire purchase amount. 

 

Because humans are responsible for creating deeds, title searches, recording and plot surveys and are subject to error, it is highly advisable to purchase both the bank policy and the owner’s policy to protect your biggest investment against mistake. 




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Successfully selling real estate in New England, Massachusetts or even our local area of Easton, Massachusetts has much to do with the weather.  Predictably if there is snow on the way or heavy snow on the ground, the general public shies away from typical house showings. 

The weather this year has been incredibly complex with major snowstorm followed successively with yet another major snowstorm.  Add to that unusual melting creating dangerous ice and the possibility of getting the public out to view homes before the crocus’ bud seemed near impossible.  Therefore it would only be reasonable to conclude that an open house during this time would be a planned disaster.

On a recent February weekend, this Easton, MA Realtor held an open house on both a Saturday and Sunday (from 11 to 2 p.m.) for an average but clearly well priced and well presented home that would be perfect for first time home buyers.  Naturally I hoped this would yield a potential buyer and a good turn-out.  On Saturday, generally the lighter of the two weekend days, the open house attracted over 15 families.  This was triple the best expectation!  In anticipation of Sunday’s open house, double that number brochures were printed.  At one time I counted 12 cars in the driveway and street.  Needless to say those brochures were consumed with more than half the time of the open house remaining. 

While this can be counted extremely successful ---multiple full price offers—the conclusion I reach is far more important.  Almost everyone that came out had no problem disrobing winter gear and footwear.  Cabin fever and pent up home buying frustration propelled most to come out and look around.  With one successful home buyer, that leaves a potential 30-40 still looking.  That gives me pause!  It could very well be that this is the “sign” for real estate market recovery we have cautiously been looking for these past few years.

Visit our website for more information!

We are happy to announce a new feature that has been added to our website! You can now view Real Estate Market statistics for Easton, Norton, Mansfield, Foxboro, Taunton, Raynham, Attleboro & North Attleboro. The information includes the Average List Price History of Homes for sale in these towns as well has historical and current data related to the number of homes for sale in these areas. Check it out and let us know what you think! Today would be the perfect time to poke around here since we are getting snowed in AGAIN! Stay warm everyone!

http://www.goodwinrealtygroup.com/Real_Estate_Market_Stats.html

The National Association of Realtors recommends having a home inspection as part of the home buying process. It usually takes place within 10 days after the Offer being accepted and generally prior to the signing of the Purchase and Sales Agreement.

The home inspection should address 3 major areas:

1. The home inspection should include a visual examination of the readily accessible physical structure and major interior systems of a residential building. The inspection is non invasive.
2. During the home inspection the inspector should discuss the conditions of the home with the client.
3. The inspector should provide the client with a report.  Areas that may have concealed damage should also be noted. 

The home inspection or home inspector should not:

     Report on the market value or marketability of the property

   Advise the client about the advisability of purchasing the property

   Determine the cost of repair of any item noted in the report

   Offer to make and/or perform any repair or provide any remedy

   Cite specific building codes

 

For a more detailed description of home inspection prohibitions and the Massachusetts Standard of Practice 266 CMR please go to www.state.ma.us/reg/boards/hi 

We work with many great home inspectors.  Please check out our Concierge List . All home inspectors are required to be licensed.

While shopping for our Christmas tree with my family this weekend, I reflected that this event bares many similarities to my profession as a real estate agent. I know this may be a little far-fetched and secular but allow me a few festive moments.

Our ritual began with all family members scoping out the grounds for a potential candidate at which time all tree nominees are subject to a unanimous vote resulting in the final selection—the coveted Christmas Tree. Walking around the tree farm I noticed many trees, tall and overgrown had obviously been “on the market” far too long. Some tagged with orange bands were clearly “under contract”. Others appeared to be requiring tender loving care or a badly needed haircut. Our internal compass guided us to the far reaches of the tree farm where we expected to find the “choice” trees. Instead we stumbled upon a new subdivision of Christmas Trees “under construction”.

I don’t think we were overly fussy, we had our “want and desires” clearly carved out before we started the process however despite the size of the tree farm, the available inventory accounted for the greatest difficulty in finding the perfect tree.

I noted that each tree had its own unique make-up. No two trees were quite alike having different smells, needles and color and some with a prime sunny location, others in the shadow of other trees, resulting in their scraggy appearance. I realized too that despite all the differences and irregularities, they would all find a loving family--just ask Charlie Brown!

After much discussion our final decision was made! As a “qualified buyer”, there still was sticker shock as our “premium tree” didn’t appear to be any different than the rest. And yes, there was a twinge of buyer’s remorse as the saw blade gently touched the base of the tree! Tying and bundling our purchase, we excitedly discussed how we would then “improve” the tree when we got it home, lights and decorations that is.

As we made our last steps heading to the car, there was one lowly tree that we passed repeatedly in our search. With a little sunshine and time, it had promise. The vendor suggested we tag it for next year. My investment opportunity was replaced by a “nay” vote saying we’ll take our chances right back here, same time next year.

Things You Need to Know About Maintaining Your Home

All Preventative Maintenance:  Hire a trusted and capable handyman that can help with household items, both big and small. You can do much of the maintenance yourself, but with busy schedules life gets in the way of good intentions. Refer to our Concierge List for handymen we recommend or are highly recommended by our clients.  Keeping up with minor, relatively inexpensive preventative maintenance can save you thousands of dollars.

HVAC Care:  For smooth running systems and your family’s air quality, change the filters in your forced hot air heating system and your central air conditioning system.  Keep track of the minor signs of water seepage or moisture of your water heater, indicating wear and replace when necessary.  Contract to have your heating and hot water system serviced yearly.  In addition have a yearly maintenance program for your central air system.  Chimney and wood burning stoves need to be serviced from time to time as well.  Refer to our Concierge List.

Water and Moisture:  Keep up with the caulking around your kitchen and bathroom areas. This will prevent potential water damage and mold.

Clear gutters of leaves to prevent water running over the gutters against the house or too close to the house which could result in damage to the trim and siding.  Improperly maintained gutters may also redirect water into the basement.

Look for and replace trim boards and siding that have water damage.

As cold weather approaches, shut off your outside water spigot from the inside and then open the spigot from the outside insuring there is no water remaining in the pipes. Water must be blown out of your sprinkler systems and pipes leading to your outside pool. Refer to our Concierge List.

Other Equipment & System Maintenance:

Sump pumps , water filters, well pumps, smoke detectors, carbon monoxide detectors and all appliances all need to be checked annually to avoid equipment failure.  Private water systems need to be serviced and private septic systems need to be cleaned out according to your private sewer service plan.

Outside Decks and Walkways:

Decks made of wood need to be sealed periodically to extend their life.  Decks made of composite need to be cleaned annually.  Walkways need to be maintained for their appearance as well as for their safety.

Among the many definitions of the word, Webster’s Dictionary defines “trapped” as “a situation from which escape is difficult or impossible”.   This is exactly how many of my customers have been describing their real estate experience for the past two years.

Take Mark and Jane (real people with their names changed), who purchased their home in 2004 expecting to remain there for a few years with their eventual goal to then move-up to their dream home.  When those few years drew near, they called asking for me to “list their home for sale”.  Their dream home was simply a bigger home for their growing family, more land around them and to locate a home on a less traveled street.  Their expectations were not unusual or uncommon. 

They are the typical home owner today.  Strategically putting a 20% down payment on the home they currently own, combined with sweat equity of home improvements or anticipated home appreciation, they were right on target for their planned “move-up”.  What a wonderful time to purchase real estate reports the media---home prices are rock bottom and interest rates are the lowest in 50 years.

Unfortunately the recession of the past several years has erased any possibility of home appreciation.  Gone too is that nice 20% down payment they originally made on this home.  And their sweat equity of a kitchen remodel, bathroom improvements, new roof and exterior landscaping has not added the value that they squarely intended. 

Selling means that they may just barely break even after all settlement charges are complete.  Therefore they are left with no down payment monies for their next home.  Refinancing is equally distressing as the comparable sales indicate that the value needed for their new loan is not supportable.  If they choose a “short sale” option, the credit blemish prevents them from a purchase for 2 to 4 years going forward.  Yes, they are TRAPPED! 

My customers have come to me seeking professional advice.  I applaud them--this family has done all the right things.  It’s devastating for me to inform them that the best solution for them is to wait.  If doing all the right things has this as its “just reward”, is there little doubt that we have got to come up with a better solution than waiting for values to increase? 

To my customer, “take consolation by knowing that a huge majority of the population share your situation”.  Having been here before, our real estate market will mend and will improve.