Despite the growing evidence the real estate market is on the upswing, within one week I heard about two sales in our office coming in with low appraisals. Any time a lender is used in the purchase, it involves an appraisal. The appraisal is how the lender ensures the size of the loan doesn't exceed the value of the house used for collateral. Before throwing in the towel, here are some moves that may keep the sale alive.
- Buyer requests a review of the appraisal or a second appraisal. This is a long shot as the lender will need a compelling reason to doubt the appraisal. It's worth combing through the appraisal for any missing information on upgrades, updated systems, added rooms, etc. Make sure the comps used match the property.
- Seller and buyer split the difference - buyer adds cash and seller reduces the price.
- Buyer makes up the difference if they have enough cash on hand.
- Seller reduces the purchase price to meet the appraised value.
It's a difficult and trying time. Assess the facts, leave emotions aside and listen to your agent's advice. Contact me if you want to work with a REALTOR® who knows how to problem solve your way to success. 603-526-4116, donna@donnaforest.com, www.donnaforest.com
We all like to save money when we can thus it is enticing to try and sell your house as a For Sale by Owner (FSBO). However, before undertaking selling the largest asset you own, you might want to read on a bit more.
- An agent-assisted home sale has a 13% higher sales price than a FSBO sale.
- In 2014, only 9% of homes sales were FSBO. (Compared to 14% in 2003). Of the 9%, almost half were because the seller knew the buyer.
- 88% of buyers used the internet and agent in their home search. Most agents have an internet strategy to provide better exposure and can put their listings in front of hundreds of other agents - who are working with buyers.
- Agents are less inclined to show FSBOs since they will be doing twice the work.
- Agents are more likely to close a deal as they are more skilled in negotiating and resolving issues.
- 8 out of 10 FSBOs will end up listing their house with an agent.
Bottom line, before undertaking the complexity of selling your home, see what a real estate professional can offer you. Contact me and put my 20+ years of home selling experience to work for you. 603-526-4116, donna@donnaforest.com, www.donnaforest.comSource: Statistics from the National Association of REALTORS® Profile of Home Buyers and Sellers 2014
When you took out a mortgage to buy your home did you pay points? You may be able to deduct that prepaid interest on your federal tax return--but only if you meet a long list of rules.
- Published: November 17, 2014
- By: Dona DeZube
The good news for 2014 was that home prices rose and the average days on market dropped. The median and average sale prices were higher in 2014 for many of the local towns and nationally, the median price will most likely be up 5.6% from 2013. Nationwide, with one month of data left to be tabulated, existing home sales are expected to finish down 3% from 2013. In this area, New London is the only town exceeding 2013 sales. Newbury – 1/1 -12/31/14 43 Solds 153 Days on Market (DOM) $274,000 Median Sales Price 1/1-12/31/13 46 Solds 159 DOM $251,500 Median SP New London – 1/1 -12/31/14 89 Solds 193 DOM $386,000 Median SP 1/1-12/31/13 69 Solds 208 DOM $350,000 Median SP Sunapee – 1/1 -12/31/14 56 Solds 201 DOM $317,650 Median SP 1/1-12/31/13 57 Solds 218 DOM $260,000 Median SP With a strengthening economy, solid job gains, and a healthy increase in home prices, existing home sales are forecast to rise about 7% in 2015. Contact me if you would like to know the statistics for your town and how it impacts buying and selling in this market. Donna Forest, Broker Associate, 603-526-4116, www.donnaforest.com, donna@donnaforest.com Figures are based on information from the Northern New England Real Estate Network, Inc. for the period 1/1/13 thru 12/31/13 and 1/1/14 thru 12/31/14.
As we are more than halfway through the year, it is a good time to take a look at where the market is heading. Results of the latest Home Price Expectation Survey by Pulsenomics indicate the panel feels home values nationwide will appreciate by 4.6% this year with an average annual appreciation of 3.5% over the next 5 years. Specific to our market area, we still have plenty of inventory and, in most towns, sales are lagging behind last year. This will keep prices lower for the time being. However, in the larger picture, we continue moving forward towards a healthy and balanced real estate market. Newbury – 77 Currently for Sale 1/1 -8/15/14 16 Solds 122 Days on Market (DOM) 1/1-8/15/13 27 Solds 144 DOM New London – 89 Currently for Sale 1/1 -8/15/14 53 Solds 156 DOM 1/1-8/15/13 42 Solds 159 DOM Sunapee – 80 Currently for Sale 1/1 -8/15/14 27 Solds 161 DOM 1/1-8/15/13 32 Solds 205 DOM Figures are based on information from the Northern New England Real Estate Network, Inc. for the period 1/1/13 thru 8/15/13 and 1/1/14 thru 8/15/14.
Our market seems to still be recuperating from the long winter we experienced. Sales were down the first few snowy months and this is likely reflected in the lower sales volume for 2014 as compared to 2013. (Although New London is definitely up from last year.) The state released their year-to-date figures thru May. Residential sales are down 7.9% and the median sales price is up 7.9%. While not a resounding two thumbs up yet for the market, there are many positive indicators it is heading in the right direction. I think the next few months will show that we’ve moved beyond recovery and are looking at a more normalized market. Newbury – 73 Currently for Sale 1/1 -6/24/14 9 Solds 122 Days on Market (DOM) 1/1-6/24/13 13 Solds 239 DOM 91% List to Sell New London – 91 Currently for Sale 1/1 -6/24/14 40 Solds 172 DOM 93% List to Sell 1/1-6/24/13 24 Solds 189 DOM 92% List to Sell Sunapee – 85 Currently for Sale 1/1 -6/24/14 18 Solds 144 DOM 95% List to Sell 1/1-6/24/13 22 Solds 182 DOM 92% List to Sell Bradford – 34 Currently for Sale 1/1- 6/24/14 7 Solds 133 DOM 96% List to Sell 1/1-6/24/13 9 Solds 222 DOM 95% List to Sell Figures are based on information from the Northern New England Real Estate Network, Inc. for the period 1/1/13 thru 6/24/13 and 1/1/14 thru 6/24/14.
With home ownership! Gallup recently released results from their April Economy and Personal Finances poll that asked Americans to choose the best option for long-term investments. Given the choices of real estate, stocks & mutual funds, gold, savings accounts & CDs, or bonds, Americans today think real estate is the best option for long-term investments, ranking it ahead of gold and stocks. As housing prices continue to improve, I believe more and more Americans will consider real estate to be their best course of action for long-term investment.
This belief that home ownership builds wealth is also backed by a study published in 2012 by the Federal Reserve (Federal Reserve Bulletin June 2012 Vol. 98 No. 2) that revealed a homeowner’s net worth is 30 times greater than that of a renter. The average homeowner had a net worth of $174,500 while the average net worth of a renter was $5100. It is a great time to be building wealth by buying a home now so you can take advantage of the low interest rates and spring inventory. Give me a call and put my 20 years of real estate experience to work for you! 603-526-4116; www.donnaforest.com; donna@donnaforest.com.
Known for service, trusted for results – Coldwell Banker Milestone Real Estate.
The real estate market continues to move towards a sunnier forecast with a prediction of 4.5% appreciation nationwide for 2014 (based on a February Pulsenomics survey of 100+ economists, investment strategists, & housing market analysts). The expectation is that appreciation will continue at a more normal rate of 3% annually thru 2018. Looking at the local markets, it appears that our stormy winter kept buyers inside and sales are a mixed bag with some towns being ahead of sales 1st quarter and many lagging behind. See below for a sample of 1st quarter sales.
New London – 1st Quarter
2014 10 Homes Sold 94% List to Sell Ratio 125 Ave Days on Market (DOM)
2013 8 Homes Sold 93% List to Sell 319 Ave DOM
Newbury – 1st Quarter
2014 2 Homes Sold 91% List to Sell 102 Ave DOM
2013 5 Homes Sold 88% List to Sell 179 Ave DOM
Sunapee – 1st Quarter
2014 6 Homes Sold 90% List to Sell 215 Ave DOM
2013 10 Homes Sold 91% List to Sell 196 Ave DOM
Bradford – 1st Quarter
2014 2 Homes Sold 92% List to Sell 89 Ave DOM
2013 6 Homes Sold 94% List to Sell 259 Ave DOM
Spring should bring renewed interest in our market area. If you are thinking of buying or selling, your timing is perfect! Contact me to put my 20 years of experience to work for you. 603-526-4116, donna@donnaforest.com, www.donnaforest.com
Data is based on information from the Northern New England Real Estate Network, Inc. for the period 1/1/13 – 4/1/13 and
1/1/14 – 4/1/14
Teamwork from the Team that works – Coldwell Banker Milestone Real Estate.
The New Hampshire Department of Environmental Services is calling on private well owners to test their water more frequently and for a wider range of contaminants. 646-057 dumps About 40 percent of New Hampshire’s population (about 530,000 people) get their drinking water from around 250,000 private residential wells, and a surprisingly high percentages of those wells have unhealthy levels of natural contaminants. Based on studies by the U.S. Geological Survey, about 20 percent of private wells in New Hampshire have arsenic levels that are higher than public water systems are allowed to provide (10 parts per billion), and in some areas it’s as many in one in every two wells. Long-term exposure to arsenic has been linked to cancer,200-120 CCNA cardiovascular disease, immunological disorders, diabetes and other medical issues. The Dartmouth Toxic Metals Research Program recently produced a 10-minute video on the health effects of arsenic in groundwater in New Hampshire; you can find the video by searching the internet for “arsenic in small doses.” There’s no federal or state standard for radon in drinking water, but an estimated 55 percent of private wells exceed the NHDES-recommended action level of 2,000 picocuries per liter. Only by testing can homeowners make informed decisions about treating their well water to minimize the amount of radon gas coming into their homes. The main health risk from radon exposure is an increased risk of lung cancer from breathing radon gas; long-term exposure to radon leads to the deaths of an estimated 100 New Hampshire residents each year. No State Testing Requirements Private well water is rarely tested, except when properties are sold or a change in taste, odor, or color raises suspicions about water quality. New Hampshire has no State requirements for the testing of private wells, although the law (RSA 477:4-c) requires that certain information concerning a home’s water system be disclosed to a purchaser, including an unsatisfactory water test. (“Unsatisfactory water test” is not defined.) Many mortgage lenders require some water quality testing when writing a mortgage. However, their requirements are not consistent, and historically there has been more emphasis on aesthetic contaminants than health-related contaminants. Some municipalities, however, do have private well testing requirements. Even when a private well is tested, the analyses often don’t include all of the right contaminants. The naturally occurring contaminants of concern include arsenic, fluoride, radon, and other radionuclides (radioactive chemicals). Other contaminants, caused by human activities, are industrial solvents, petroleum products and fuel additives [such as benzene, toluene, ethylbenzene, xylene and methyl-t-butyl ether (MtBE)], and lead and copper from plumbing. Bacteria in wells may be from either natural or human sources but typically enter wells because of poor construction. Bacteria shows up in about one in five water samples from private wells analyzed at the state Public Health Laboratory. When should private wells be tested? NHDES recommends the following: 1. When a well is first drilled. 2. At least once every 3 to 5 years for all wells. 3. At the time of all real estate transactions. 4. If obvious changes in water quality (such as changes in taste, odor or color) are noticed. The frequency of periodic testing should be based on past testing results, testing results for neighboring wells, and past and present land uses in the area. Testing for specific contaminants should be performed more frequently if they are known to be present at elevated levels. What Parameters Should Be Tested in Private Wells? NHDES recommends the following analyses, which cost approximately $165 at the Public Health Laboratory: arsenic, bacteria, radon, alpha screen, lead, copper, nitrate, nitrite, fluoride, pH, sodium, chloride, iron, manganese, and hardness. NHDES also recommends testing for volatile organic compounds once every five to ten years, which costs $120 at the Public Health Laboratory. If the cost of testing is too great for some homeowners, NHDES recommends spreading out the testing over time, performing some tests now and the rest in later years. A number of private labs also offer these tests. Private labs tend to be more expensive than the State Lab, but they also tend to provide results to the well owner more quickly. American Academy of Pediatrics Weighs In In May 2009, the American Academy of Pediatrics issued a policy statement on Drinking Water from Private Wells and Risks to Children, urging states to require testing when homes are sold, and urging local governments to provide access to information about local groundwater conditions and recommendations for testing. What is Being Done? A handful of New Hampshire municipalities already require testing of private wells, typically in connection with certificates of occupancy. A group of state, federal, and university scientists and public health professionals have formed the New Hampshire Arsenic Consortium, which is cooperating to educate the public and conduct research about arsenic in private wells. NHDES is working with N.H. Department of Health and Human Services and Dartmouth College to better understand the health risks to private well users and to help private well users make informed decisions about well testing and water treatment options. NHDES is also working with municipal building code officials on a uniform interpretation of “potable water” as referenced in the International Plumbing Code to provide for improved public health protection. For more information about NHDES’s private well testing recommendations and about the health effects associated with various contaminants, and a list of accredited private labs, please call NHDES Drinking Water and Groundwater Bureau at (603) 271-2513, or visit the NHDES web site at www.des.nh.gov and look for “Private Well Testing” under the “A to Z List.” Source: GREENWorks, A publication of the New Hampshire Department of Environmental Services, Concord, NH
If you plan on getting a mortgage, you need to be extra cautious with your finances. Here are the top 5 show stoppers you should avoid.
- Purchasing large ticket items. Don’t buy a new car or even furniture until after the loan closes. New payments will impact how much money you can borrow or can even prevent you from qualifying for a loan.
- Paying late on bills. One 30-day late payment can subtract 80 to 110 points from your credit score. Many lenders require at least 12 consecutive months of on-time payments
- Shuffling money around. Lenders scrutinize all your bank statements as part of the approval process. Any unusual deposits or withdrawals will require clear documentation of what they are. A large sum of money transferred into an account right before closing could be lethal.
- Job changes. Taking on a new job can present some hurdles as lenders like stable income that will likely continue. Changing job fields or starting your own business will be a red flag.
- Getting a new credit card. Even something as simple as getting a Kohl’s credit card will impact your credit score.
Give me a call if you want to work with a REALTOR® who can help you avoid the common pitfalls when buying your dream home.
Donna Forest, Broker Associate, 603-526-4116
Teamwork from the Team that works – Coldwell Banker Milestone Real Estate.