Real Estate Trends – Windham, New Hampshire #3

Introduction:

Welcome back again for our latest real estate market trend report.  For those of you that are here for the first time what we do in these reports is examine the real estate market in a city or town in Massachusetts or New Hampshire to evaluate the current conditions.  We do this by looking at the changes in three key metrics year over year for the municipality to see how the market has changed and then evaluate what those observations might mean for that market moving forward.

Today we are highlighting the market in Windham, NH in Rockingham County

 Windham Junction in Windham NH - Windham New Hampshire Real Estate

Market Trends in Windham, NH – June 2015 and 2016:

The Windham, NH market has fallen off some since last year.   The average prices were down and the median prices were down as well.  The days on market appeared to be down a lot, but on further examination that may not actually be the case.  Inventory was up a lot with 24 sales in June of 2015 down to 34 in June 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Windham, NH the average listing price in June 2015 was $496,558.  This was down to $470,382 in June 2016.  This gives a modest decrease of 5.27% year over year. 

Looking at the median prices we see that it was lower in both years.  For June of 2015 the median listing price for Windham, NH was $494,900 and in June 2016 it was $454,450 which now gives a larger decrease of 8.17%.

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for in Windham, NH in June of 2015 was $498,577 and in June 2016 that was down to $467,373.  That gives another modest decrease of 6.26%, and slightly higher as the average list price. 

We see the same pattern as we did for the median list price.  For June of 2015 the median sales price for Windham, NH was $483,450 and in June 2016 it was $460,000 giving another decrease of 4.85%.

Prices have gone down some for Windham, NH this month.  The metrics did not have much of a pattern this time.  Overall the range wasn’t huge going from just under 5% to just over 8%.  The median listing price was a bit higher than the others being almost 2 points higher than the next highest.  We would give this less weight than the others.  That pulls the spread to only about 1.5%.  So overall the range isn’t big or that big of a decrease.  Overall the median sale price is the one considered the most useful and that was the lowest drop of all of them so best guess is that prices are down just under 5%.

Average Days on Market:

Finally the last metric we look at are the average days on market, which is the measure of how long it takes for a property to sell in the current market.  For Windham, NH the average days on market in June of 2015 were 114.54 and the average days on market for June 2016 were 54.18 giving a large 52.70% decrease.

However, as we have seen many times before in our previous posts for AbingtonBedfordSeekonk, BelmontTopsfieldCanton, Dracut (Condos)HamiltonWakefield, Amesbury (Condos), Dracut #2, Taunton, Reading, Stoughton, Wrentham, Stoneham, Dedham, Nashua, NH, Tewksbury, Brockton (Multifamily), Lowell (Multifamily), Acton , Foxboro, Pembroke, Chelmsford, BeverlyFramingham (Condos), Plymouth County (Condos), Marlborough, Billerica, Waltham, Dracut (Condos) #2, Derry, NH, Framingham, Burlington, Duxbury, Acton #2 , Taunton (Condos), Tyngsborough, Milton, Salem, NH, Boston’s Hyde Park, Boston’s West Roxbury , Somerville, Canton #3, Pelham, NH, Westford, Plymouth (Condos), Boston’s Jamaica Plain , Halifax, Braintree (Condos), Newton (Multifamily), Plainville ,Boxford, Wayland , West Bridgewater, East Bridgewater, Marlborough (Condos), Natick (Condos), Gloucester, (Condos), Melrose (Condos), Norton (Condos), Newburyport, Atkinson, NH, Fairhaven, Lexington, Arlington (Condos), Salisbury, Weston, Groton, Wellesley, Littleton, Lowell (Condos) #2, East Boston (Condos), Dedham #3, Hanover, Canton (Condos), Belmont #2, Seabrook, NH, Hingham (Condos), Lakeville, Raynham, Holliston, Londonderry, NH, Georgetown, South Boston (Condos), Needham #2, Arlington #2, Foxboro #2, Boston’s Roslindale (Condos), Burlington #2, Salem NH #2, Boston’s South End (Condos) #2Somerset, Everett (Multifamily), Sharon, Dedham #4, Boston’s Brighton (Condos), Winthrop (Condos), Littleton #2, Ipswich, Westport, Franklin (Condos), Groveland and Boston’s Fenway (Condos) #2 outliers in the data can really skew these numbers.  This again is the case for Windham, NH in June.  In this instance there was a very high days on market place in 2015.

In 2015 there was a property with 1071 days on market; this was more than the next 3 properties combined and more than 61% of the total days on market for all 24 Properties.  When removed the new calculation for the remaining 23 properties gives an average days on market of 46.56. 

Using the adjusted numbers we now get a small increase of 16.36%.  This totally changes the basic conclusion that the days on market were down a lot.  At first it looked like there was a very large decrease in the days on market but now it looks like they are actually up a tad.

Windham, New Hampshire Summary:

The Windham, New Hampshire real estate market is down a lot since last year.  The average prices were down and the median prices were down as well.  The days on market were up a small amount as well after adjustment, which gives some additional support to a down market.

In summary if you are looking to sell a house in Windham, NH now you should expect to get less for it than you would have gotten last year.  You could also expect it to possibly take a little more time to sell compared to last year as well. 

 

Do you need to sell your Windham, New Hampshire house fast?  If you would like to sell your home  fast and hassle free  schedule a consultation  with us today.

Please share your questions and comments below.

 

 

 

(Image credit: Windham Junction 1910 via Wikipedia)

 

 Q & A Saturday – How Will the Brexit effect US Real Estate?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about  selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “How Will the Brexit effect US Real Estate?

In this video Shaun talks about some of the recent and long term effects of the “Brexit” in the USA.

 

Some of the main points covered in this video are:

1)      What is the “Brexit”?

2)      What were the short term effects?

3)      How does it affect US Real Estate?

4)      What might be the long term issues?

 

The Brexit was the recent vote by the citizens of the United Kingdom to leave the European Union.  The immediate aftermath of the vote spooked people and there was a sharp decline in the equity markets worldwide, for a couple of days.  People quickly stopped freaking out and they returned to where they had been quickly and are actually higher than before the vote already.

In terms of real estate in the USA mortgage rates did dip after the vote and those have stayed a bit lower than they had been.  This could persist for a while and keep money cheap.  If nothing else it will be another excuse for the FED to keep interest rates low rather than raise them as the assured everyone was the plan starting back around this time last year.  The other possible real estate related consequence is there is a theory that foreign money might not flow into London real estate the way it has been and some of that could flow into various US markets.  It is to early to say for sure on that one but it is a very plausible theory.

 

 

Do you need to sell a house in Massachusetts or New Hampshire and had been hoping to get British Pounds for it?  If you would like to sell your home  fast and hassle free  schedule a consultation  with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

  

 

 

(Image credit: Hand Holding Brexit Sign via Times Higher Education)

 

Q & A Saturday – When Do I Need Flood Insurance?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about  selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “When Do I Need Flood Insurance?

In this video Shaun talks about when you will need flood insurance for your house.

 

Some of the main points covered in this video are:

1)      What is Flood Insurance?

2)      What is my risk?

3)      When do I have to get it?

4)      Should I get it if I do not have to?

 

The National Flood Insurance Program (NFIP) was created by Congress in the 60s to help with people that were victims of floods since most homeowner’s insurance policies did not cover these events.  The program is run by FEMA and rates are based on risk levels for a given property based mostly on the location and the expected probability of a flood occurring.

Unfortunately there is a lot of controversy as to how accurate the flood maps are and if these probabilities are realistic.  Also in the last few years many maps have been redone, putting many properties in flood zones that were not before, and rates have increased, sometimes significantly.

The short story is if you are deemed to be in a “High Risk” zone and have a mortgage held by pretty much any back you will be required to have flood insurance.  If you have a mortgage through a private they may require it as well but might not.  If you own the property outright it is your choice to have the coverage or not.  There can be good reason to have the coverage but you also may feel it is a waste of money and would rather self insure (as in pay for any flood damage yourself with money you have set aside for repairs).

Flood insurance has become a much bigger concern the last few years as it can be very expensive now so those costs have made some places very unaffordable for people to buy.  Some changes were made that made things a little easier on people but it has still become a much more important consideration when buying a property than it was even a few years ago.

 

 

Do you have a house in a Flood Plain?  Do you need to sell a house in Massachusetts or New Hampshire and can’t afford the flood insurance?  If you would like to sell your home  fast and hassle free  schedule a consultation  with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

          The Governments “Flood Smart” website to learn more and see your risk.

          Our main article on Selling a House As Is.

          Our Video on Selling a House As Is.

          All of our posts on Selling a House As Is.

          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

 

(Image credit: Japanese Floods via RT.com)

 

Q & A Saturday – What is NOI for Rentals?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about  selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is NOI for Rentals?

In this video Shaun talks about what the Net Operating Income (NOI) for rental properties.

 

Some of the main points covered in this video are:

1)      What is NOI? = Net Operating Income.

2)      But what exactly does that mean?

3)      Why is it important to know this?

4)      What should you shoot for with your NOI?

 

The Net Operating Income (NOI) for a rental is basically the Net income after taking into account all expenses other than financing costs.  By financing costs this would be the principle and interest payment part of your mortgage payment, not taxes and insurance if those are included in the mortgage payment.  Those two items would be included when calculating the NOI.  For a quick synopsis you take the Gross Rental Income less vacancy and credit losses (i.e. non-payment of an occupied unit) less all of the non finance expenses such as property taxes, home insurance, maintenance and repairs, management, owner paid utilities, other municipal fees, any kind of rental registration fees and then any other expenses that you need to pay for your rental.

Why is this number important?  For commercial sized rentals (Apartment buildings with 5 or more units and any non-residential or mix use building) this number is directly used to determine the value of the property for resale and bank financing.  Obviously in those cases it is a vitally important number since the “Sold Comps” appraisal method used for small properties is not used.

For smaller rentals like condos, single family houses, duplexes, as well as 3-4 unit places.  In these cases the familiar appraisal methods are used so they are not directly used for financing.  However for selling the property to investors the income and expenses will be of paramount importance.  For single unit properties many of the potential buyers will be resident owners and this will not be important but if the property is in a heavy rental area it will be an issue.  It also will be important for anything over 1 unit the person will be at least a partial investor, even an owner occupant in a duplex. 

 

 

Do you need to sell a rental house in Massachusetts or New Hampshire and don’t know what your NOI is?  If you would like to sell your home  fast and hassle free  schedule a consultation  with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

          Our Video on using The 50% Rule for Rentals.

          All of our posts on Land Lording Topics.

          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

(Image credit: Net Operating Income via Property Metrics)

 

Q & A Saturday – What is The Right of 1st Refusal?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is The Right of 1st Refusal?

Real Estate Contract - Right Of 1st Refusal Clause

In this video Shaun talks about what a right of 1st refusal clause is and when you might see it when selling your home.

 

Some of the main points covered in this video are:

1)      What is The Right of 1st Refusal clause?

2)      When a retail buyer might use it.

3)      What some of the advantages are of using one are.

4)      What some of the disadvantages are of using one are.

5)      Why an investor might offer one.

 

A right of 1st refusal clause is not a widely seem technique in real estate transactions.  However it is not particularly rare either so it is good to understand what it is and when it might come up.  When dealing with real estate agents and transactions on the retail market you do not see it very much.  When it does come up is when a buyer puts in an offer with some other contingencies that the seller is not crazy about.  When this happens they might agree to add this type of clause to smooth out the differences.  Basically what a right of 1st refusal does is add a clause saying that the seller can still accept other offers on the property but the buyer has the right to exercise their right to buy the property, but will waive the other contingencies.  For the seller it gives them the ability to accept an offer that they mostly like without being totally bound by a contingency that might not play out.  The most common situation to see this is when the offer is subject to the buyer selling another property.  The buyer is helped since their offers may otherwise be rejected since people will worry that this contingency will not be met or at least not met for a long time and it will drag out the process. 

While the exact clause can take any form usually the basic form will state that the buyer has the right of 1st refusal and spell out what they need to do to exercise that right.  Usually it will involve waiving the clause in question and often all other contingencies.  Also the usual consequence will be forfeiting the deposit if they cannot buy the property, which this means as a seller you would want a pretty sizeable deposit when accepting this kind of clause in this type of situation.

With an investor the situations are usually a little different.  Most of the time this will only come up in situations where they offer an Option or Lease Option type of contract on the property.  In these cases they are only asking for the right to buy the property already.  With a lease option often a seller might want to just sell buy is willing to rent if they eventually can sell.  Sometimes a right of 1st refusal might be given so they can continue to try to sell the property while the investor is looking to secure a tenant for the property.  Usually if the seller gets another offer prior to the investor fully executing their contract they can sell it unless the investor is willing to execute the deal and pay the rent without having a tenant in place.  The less complicated situation would be an option to purchase where the investor might not have the cash on hand to purchase the deal but wants to have a contract on it to be able to try to secure financing, or a partner, or a wholesale buyer or just do more complete due diligence on the property.  In these situations the buyer would have to decide if the seller had another offer if they felt it was a good enough deal that they would be able to solve these problems quickly and exercise the option or if they will just let it go.   

 

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure if you want to entertain a right of 1st refusal clause?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our Video on using What is a Lease Option.

–          Our Video on using A Real Estate Agent when buying.

–          Our Video on Selling FSBO.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

  

 

 

(Image credit: Real Estate Contract via setestate.net)

 

Real Estate Trends – Bedford, New Hampshire #2

Introduction:

Welcome back again for our latest real estate market trend report.  For those of you that are here for the first time what we do in these reports is examine the real estate market in a city or town in Massachusetts or New Hampshire to evaluate the current conditions.  We do this by looking at the changes in three key metrics year over year for the municipality to see how the market has changed and then evaluate what those observations might mean for that market moving forward.

Today we are highlighting the market in Bedford, NH in Hillsborough County

 Bedford NH Town Hall - Bedford New Hampshire Real Estate

We first looked at Bedford, NH back last November, seeing price drops of 20% or more.    

Market Trends in Bedford, NH – April 2015 and 2016:

The Bedford, NH market has fallen off significantly since last year.   The average prices are down substantially and the median prices were down by a similar amount.  The days on market were also up by a lot as well.  Inventory was up a little pretty stable with 15 sales in April of 2015 up to 17 in April 2016. 

Average Listing Prices:

We will first start off by looking at the average listing price.  In Bedford, NH the average listing price in April 2015 was $562,067.  This was down to $432,129 in April 2016.  This gives a huge decrease of 23.12% year over year. 

Looking at the median prices we see that they were lower in both years.  For April of 2015 the median listing price for Bedford, NH was $479,900 and in April 2016 it was $374,900 which now gives a slightly smaller decrease of 21.88%. 

Average Sale Prices:

The next thing we will be looking at is the average sale prices.  The average sale price for in Bedford, NH in April of 2015 was $555,109 and in April 2016 that was down to $420,796.  That gives another massive decrease of 24.20%, and slightly larger than the average list price. 

We see the same pattern as we did for the median list price.  For April of 2015 the median sales price for Bedford, NH was $489,000 and in April 2016 it was $363,300 giving another very large decrease of 25.71%. 

Prices are down definitely down substantially for Bedford, NH this month.  The averages and the medians are all down well over 20%.  Overall not a huge range being roughly 22-26%.  However we do see that sales are both down more than their listing counterparts and the median sale price is down the most.  Therefore we would say that prices are down at the top of that range in the neighborhood of 24-26%, and most like at the top of that as well.  This is actually down even more than the huge decreases we saw last time for Bedford, NH

Average Days on Market:

Finally the last metric we look at are the average days on market, which is the measure of how long it takes for a property to sell in the current market.  For Bedford, NH the average days on market in April of 2015 were 38.33 and the average days on market for April 2016 were 88.76 for a huge 132% increase.

Bedford, New Hampshire Summary:

The Bedford, New Hampshire real estate market is down a tremendous amount since last year.  The average prices and the median prices were all down well over 20%.  The days on market were up a lot as well further showing a much weaker market.

In summary if you are looking to sell a house in Bedford, NH now you should expect to get significantly less for it than you would have gotten last year.  You can also expect it to take a lot more time to sell compared to last year as well. 

 

Do you need to sell your Bedford, New Hampshire house fast?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

Please share your questions and comments below.

 

 

 

(Image credit: Bedford NH Town hall by Magicpiano via Wikipedia)

 

Q & A Saturday – What is an Assumable Mortgage?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “What is an Assumable Mortgage?

Assumable Mortgages - Creative Real Estate

In this video Shaun talks about what is an Assumable Mortgage and how they work.

 

Some of the main points covered in this video are:

1)      What is an Assumable Mortgage.

2)      What are the advantages.

3)      What are some of the drawbacks.

4)      What types of mortgages are most likely to be assumable.

 

An assumable mortgage used to be a pretty common way to purchase a house until the early 1980’s.  Sellers would offer their houses up with possible financing in place and there was not much to taking over a mortgage and the seller no longer being obligated to paying the loan, the new owner would be.  However at that time banks realized they were losing a lot of potential income as rates were in the double digits for home mortgages and the loans being assumed were far less than this.  At this time the “Due on sale” Clause started being very common and soon would be found in all conventional mortgage loans.  Typically today the only loans that can potentially be assumed are FHA and VA loans.  Even with those the new borrower will have to go through a qualifying process that is not much different than the one needed to get a new loan.

There are definitely some advantages to the seller if the loan is assumed vs. being taken “subject to”, which essentially is the same result except that the sellers name is still on the loan and they are ultimately still responsible if the new buyer does not pay it.  Therefore, MUCH less risk for the seller in this scenario.  On the opposite side it will be more risky for the buyer since in this case they are responsible for the loan when in a Sub To deal they can walk away unscathed (The ethics of this is a different story…).

The only real reason to want to take on as assumed mortgage would be if the terms are much better than the ones available to the new borrower.  Unlike a Subject To situation the borrower needs to qualify so the only reason to assume is if the rates and terms are very good.  Currently with the very low interest rates on mortgages there is not likely to be a big spread here.

In summary while assumable mortgages used to be very common they no longer are.  Only a small subset of mortgages generally have the possibility of being assumable and with the more stringent qualifying process needed (unlike back in the 70s and 80s) the advantages of the process is limited as well for the buyer.  So while still possible it is not a very useful method to sell a house and not a particularly advantageous method to buy one either.

 

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure if you can sel with an assumable mortgage?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our Video on Selling a House with Seller Financing

–          Our Video on Selling a House with Subject Too Financing

–          Our Video on The Due On Sale Clause

–          Our Video on Selling a House with a Wrap Mortgage

–         Our Video on What are the Different Types of Seller Financing

–          Guest post on 3 Reason to Sell with a Lease Option

–         Our Video on Selling a House with a Lease Option

–          All our articles/videos on Financing and Lease Options

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

 

(Image credit: Assumable Mortgages via PRMI)

 

Q & A Saturday – Should I Hold an Open House?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Should I Hold an Open House?

 Open House Sign - Should I have an Open House? - Massachusetts and New Hampshire Real Estate

In this video Shaun talks about Pros and Cons of holding an Open House when selling your home.

 

Some of the main points covered in this video are:

1)      What is an Open House.

2)      What are some of the drawbacks of holding one.

3)      What are some of positives of Open Houses.

4)      Why Real Estate Agents like to hold them.

 

An Open House is an age old tool used to help sell a house.  In the past maybe it was a more effective tool but few pros will honestly tell you it is all that useful.  The major flaws for this is that many of the people that show up are not even buyers and the ones that are have not been qualified at all, so even if they would like to buy your house they might not have the ability to do so.

Beyond the general ineffectiveness of Open Houses there are concerns of having lots of strangers going through your house and possible theft.  Even without anything nefarious happening there is the hassle to making sure the place is clean and put together in a state where you will not mind having people going through the home.  While much of this will be true with any showing they will usually have an agent accompanying them and will be less likely to steal but also just going through as many things.  Along that same line unlike a private showing you will have many neighbors just being nosy and poking around your place.

So why do many agents still recommend them?  They are usually a great way to get some buyer leads.  As mentioned above many of the people that are interested in buying a place might not really want or be able to buy yours, but they might be able to buy something and the agent will get their name and contact info and try to convert them to a buyer client.  There isn’t anything wrong with this but be aware that the agent is likely to get more benefit than the seller in most situations.

So are there any good reasons to have an Open House.  Yes there are still reasons that it can work.  The biggest generally will be if you do not want to have lots of showings at many different times.  You may limit the buyer pool but if your privacy and routine is paramount then setting aside a few hours on the weekend to have everything happen is not a bad idea.  More useful is if you have a place you expect to have a lot of interest you may see it come on the market several days ahead of the Open House and say that there will be no showings prior to it.  This can get a lot of interested, qualified, buyers out to it and also give a sense of urgency if the turnout is good.  This one situation is where it can be a very useful marketing tool for selling the house.

 

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure if you want to have an Open House?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our Video on using A Real Estate Agent when buying.

–          Our Video on Selling FSBO.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

(Image credit: Open House via The News of Salem County)

 

Q & A Saturday – Should I Use Price Per Square Foot to Value My House?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Should I Use Price Per Square Foot to Value My House?

Price Per Square Foot Mistake - Massachusetts and New Hampshire Real Estate

In this video Shaun talks about how a price per SQFT number relates to the value of your house.

 

Some of the main points covered in this video are:

1)      What exactly price per square foot is.

2)      Limitations of price per SQFT.

3)      How price per SQFT usually changes with the size of a property.

4)      The situations where it can be useful.

5)      Some other methods for valuing that we’ve discussed before.

 

Valuing a property using the price per square foot method is usually a very poor way to find the value of a property.  This number generally will not account for the location of the property, the size of it, the current condition or any other number of important factors.  Even when using more targeted versions of the number that might only include places that sold within some parameters it still very rarely accounts for all the different factors.

One of the most ironic parts of using the price per square foot method is that even with everything else being the same; it is only good if the places are very similar in their square footage!  In general if you have places in the same area price per square foot will get lower as a place gets bigger.  So even once you adjust for everything else if the two places differ in size by a large amount price per square foot will still not give a very good estimate of the value.

So the only instances where this method works is when you have properties in the same location, with extremely similar condition and level of finishes that are also very close in size.  Anything else is just a poor representation of value.  As mentioned in the video one example that could use this is a condo association with a couple different size units that are still pretty similar.  The case we have was a situation where we have a place in a complex with 2 different sizes for small 2 bed room 1 bathroom units.  We have one of the bigger ones that are only about 5% larger.  So if we wanted to value our unit and none of that size sold but several of the slightly smaller ones sold.  If all the places were in similar condition there isn’t much else to adjust for other than the small size difference so the only adjustment needed would be a small bump for the extra space therefore this is not a bad way to do it.  That being said in the same complex using the 1 bedroom units that are only 60% as large would be of no value to use price per square foot because there are other important factors to consider.

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure how to value it?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Last week’s video on valuing property with The Assessed Values.

–          Our Video on how Inaccurate Zestimates are.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

(Image credit: Price Per Square Foot Mistake via The Valley of Hearts Delight)

 

Q & A Saturday – Is my House Worth the Assessed Value?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Is my House Worth the Assessed Value?

Property Tax Assessment - Massachusestts and New Hampshire Real Estate

In this video Shaun talks about how a houses assessed value relates to the value of your house.

 

Some of the main points covered in this video are:

1)      The assessed value is used for taxing purposes.

2)      Assessed values can be high or lower than current market value.

3)      Home owners should not give much weight to that when figuring out value.

 

A property’s assessed value has little to do with a property’s actual market value.  These days it is pretty common to see assessed values that are less than current value.  Of course a few years ago assessed values were almost always higher than the current value.  The biggest issues with these are that there is often a large lag in the sales used to make the assessment vs. current ones that will indicate the market value.

Assessed values are one of many poor tools that home owners might use to value their properties (Looking at you Zestimates!).  The only good way to try to determine current market value is to use recent sales of similar homes in your area.  This is not that difficult to do but it will take a little work if you do not have access to your local MLS service.

 

 

Do you need to sell a house in Massachusetts or New Hampshire and not sure how to value it?  If you would like to sell your home fast and hassle free schedule a consultation with us today.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Some useful resources:

–          Our Video on how Inaccurate Zestimates are.

–          If you want to sell a house in Massachusetts or in New Hampshire we can help.

 

 

 

 

 

 

(Image credit: Property Taxes via Redfin)