Do you have plans to buy a home soon? If so, has it occurred to you that some of the homes you inspect may be overpriced? They may be priced too high for the market.
How would you recognize that kind of situation? Should you assume that all houses are overpriced and make low offers on all of them until one is accepted?
Relax. There's a way to assure yourself of becoming a satisfied homeowner without taking the risk of paying too much. Consider for a moment how prices are set on the homes you will be seeing.
Some prices are arrived at by the owner's "guess-timation:, while others are decided only after thorough investigation of the present real estate market by knowledgable real estate agents. The latter involves careful study of homes for sale now as well as those which have sold recently. As a result, homes listed for sale with a highly successful real estate agent tend to be priced fairly up-front, from the very beginning.
Thus, by selecting your agent carefully, you can be assured of having a gnerous selection of homes from which to choose without having to worry about pricing. You'll be able to focus your concentration on features which fit your lifestyle and enjoy the process of choosing your next home...a satisfying experience.
It is time to put an end to the Proposition 2 1/2 overrides in Hamilton and Wenham, Massachusetts. When Prop 2 1/2 was enacted in 1980 it had provisions to allow towns to pass overrides, but those overrides were intended for emergency purposes. Overrides were not intended to be used to subsidize school funding on an annual basis as has become the norm in our two towns. If override supporters in Hamilton and Wenham believe that "emergencies" have existed in our towns for 10 out of the past 11 years, then the answer lies with a broken system that obviously has not and can not be fixed by simply throwing more money at it.
Here's a little something that unfortunately many of our citizens do not realize: Each override is not one-time cost event. Each override is added to the basis of our tax cost and continues in effect year, after year after year. So we will be paying for last year's $1.8 mil override amount again this year and again in 2010 and 2011 and so on. We have been paying the $660k override passed in 1999 each year for 9 years now! That override alone has cost the taxpayers over $7 million.
And here's a FACT about ALL the overrides we have had to pay since 1998: The individual override amounts add up to $7,707,000. But hang on to your seats (and your wallets!) because compounded over the years, with the 2 1/2 % standard annual increase, and the real cost of those overrides has been whooping $39,518,000! Let me repeat that: $39,518,000!
If our national economy's meltdown has taught us anything, it's that we can not, and should not support a system that does not work. $39 million has not fixed the so-called "emergencies" in Hamilton and Wenham and another override certainly will not either. And did you know that we are the ONLY two towns in the Commonwealth with this kind of outrageous history of overrides? Just last year, out of 356 towns and cities in MA, only 102 sought override attempts...and two-thirds of those were rejected.
Residents must stop the override addiction in our two towns this year... By just saying NO! $39 million is enough! Help make a difference in 2009. Start on the local level.
Jay Burnham, VP of Coldwell Banker Residential Brokerage in Beverly, MA, recently attended the 3-day CyberStar® National Conference in Scottsdale, AZ.
The CyberStars® is an invitation-only group of 200 top real estate agents from the US, Canada, Australia and the Bahamas, chosen for their ability to meet the needs of today's consumers through the use of technology and personal service. Jay Burnham is one of only five agents selected for membership from Massachusetts and he is the only CyberStar® from the North Shore region.
The annual CyberStar® Summit brings together top agents for a 3 day event where technology focused real estate professionals present, share and network with one other. The meeting's purpose is to enable CyberStar® members to provide ever-improved customer service to their buyers and sellers. Summit participants were exposed to the newest and most effective cutting-edge technology tools.
The CyberStars® have successfully marketed homes in the midst of what is considered the most difficult real estate market ever experienced. Burnham sees his CyberStar® membership as an important part of his success. "I am honored to be part of such a wonderfully helpful and sharing group of real estate professionals. Our networking activities keep me up to date on the best ways to help my sellers and buyers, an advantage not available to other agents", said Burnham. "I returned from Scottsdale with a renewed enthusiasm and with unique technological tools and systems I can use to elevate my level of service."
For more information about Burnham or his team, call 978-233-2828, send an email to jay@northshorerealestate.com or visit his website at http://www.northshorerealestate.com/.
REMV, or Real Estate Music Video, is the newest and hottest way of video marketing homes. Like the music videos you see on TV and Youtube, this application can range from hard-hitting impact marketing, to soft (think James Taylor) and smooth video marketing.
To give you an idea of what an REMV can look like, here's a sample:
If you think this marketing application is cool, you should see what you can do with a single property REMV. A key component to creating this kind of video is looking at your photography in a different way. It's no longer just about posting pictures and adding a soundtrack, it's about telling a story and creating a sequence of photos that take the viewer on a ride complete with images of the area as well as the individual property.
Hot off the "Actual Statistics" press, it is now time for my Complete 2008 Report of how the real estate market fared in my area of the country - the Massachusetts North Shore, north of Boston. The area of observation consists of 22 towns on the North Shore and considers only SINGLE FAMILY homes for comparison.
So how did we do in December and thus far this year? In December, 145 single family homes came on the market on the North Shore and 148 homes went under contract. That marks the first time in 12 months that more homes SOLD in a single month than came on the market. Unfortunately, this is proving to be common for the month of December as last year and the year before we experienced the same occurence in December and it is likely a result of sellers taking their homes off the market for the holidays or waiting until the new year to place their homes on the market.
Except for December, every month in 2008 showed more homes coming ON than going OFF the market. In January, that difference was +150, in February, +188; in March, +226; in April, +262; in May, +199, in June +175, in July +148, in August +99, in September +167, in October +113 and in November +40.
That's 1,767 more homes that came on vs. went off during the year 2008.
At first glance, this seems like good news because in 2007, 2,146 more homes came on vs. went off the market. So 2008 showed a drop of almost 18% in the delta. Unfortunately, upon closer examination we see that the overall number of new listings for 2008 was down by 847, or nearly 17% less than in 2007. Likewise, the number of Under Agreements for 2008 were down 468, or about 16% over 2007. So overall, 2008 was nearly identical to 2007.
So, what does this mean in general for our market area?
It means that we will likely continue to remain in a DEPRECIATING market and will continue to remain there until this trend reverses...but there is "light in the tunnel"...it's just faint.
Here's a recap of the previous 12 months:
In December, 145 single family homes came on the market on the North shore and 148 homes went under contract.
In November, 190 single family homes came on the market on the North shore and 150 homes went under contract.
In October, 308 single family homes came on the market on the North Shore and 195 homes went under contract.
In September, 374 single family homes came on the market on the North Shore and 207 homes went under contract.
In August, 317 single family homes came on the market on the North Shore and 218 homes went under contract.
In July, 374 single family homes came on the market on the North Shore and 226 homes went under contract.
In June, 444 single family homes came on the market on the North Shore and 269 homes went under contract.
In May, 497 single family homes came on the market on the North Shore and 298 homes went under contract.
In April, 518 single family homes came on the market in the North shore and 256 homes went under contract.
In March, 454 single family homes came on the market on the North Shore and 225 homes went under contract.
In February, 357 single family homes came on the market on the North Shore and 169 homes went under contract.
In January, 313 single family homes came on the market on the North Shore and 163 single family homes went under contract.
The solution? Sellers need to continue to price their homes ahead of the declining price curve. As noted above, many homes are selling, but they are the ones that are priced properly and AHEAD of the declining value curve.
I will continue to provide updates throughout the year and we'll take a look and see if the market is changing or if we can expect more of the same for a while.
Regards,
Jay Burnham, VP Coldwell Banker Residential Brokerage North Shore, Massachusetts
The following are The Boston Globe Newspaper's real estate headlines for the past six months...all of them (good or bad). You determine for yourself what kind of a market we continue to experience.
THE BOSTON GLOBE
October, '08:Pending home sales rise in August - More buyers are drawn to market by low-priced foreclosure properties "Some pending home sales may not close because banks are reluctant to lend as property values keep sinking and foreclosures mount."
September, '08:Mass. Home prices, sales fall further "Economics professor Karl Case said he has scrapped his latest forecast for a housing recovery in early 2009 because of the uncertainties caused by the Wall Street crisis."
September:Homebuilding falls to 17-year low - Starts decrease 6.2% in August, signaling economy weakening "Builders in the US broke ground on the smallest number of new homes last month in more than 17 years."
September:Pending home sales off by 3.2% in July "Fewer Americans signed contracts to purchase previously owned homes in July as harder-to-get financing kept would-be buyers from taking advantage of lower prices."
August, '08:Bay State home prices still sliding "July house prices in the Boston area suffered the largest decline since the current housing market downturn began two years ago, while statewide prices had the biggest drop since 1987."
August:Existing-home sales fall in July - Region's prices drop 5 percent "In July, existing-home sales in the Northeast dropped about 12 percent when compared with July 2007"
August:Existing-home sales fall to 10-year low - Realtors report median price plunges 7.6% in 2nd quarter as slump deepens "A third of all existing-home sales in the 2nd quarter were foreclosures or ‘short sales,' in which lenders took a loss on the property."
August:Pending home resales climb 5.3% in June on lower prices
August:With 2 million mortgages in peril, bailout will do little to stem foreclosures
July, '08:Home construction plunges to 17-year low - Drop suggests no end in sight
July:Loan woes eroding confidence - State's slumping housing market could get worse before it gets better "We are not anywhere near the bottom of this market yet."
June, '08:The price must be right - More than ever, the starting figure is key to quick home sales
June:Home resales rise, prices fall "The supply of homes for sale remains about twice the level representing a stable market and figures have yet to show any sign of sustained sales gains."
June:May new-home sales fall, orders stall "Compared with a year earlier, sales of new homes were down 40 percent."
June:State home sales decline in May - Tally hits 18-year low; prices drop 8.6% so far in ‘08
June:Home prices apt to fall much more - US home prices only about halfway through their decline
June:1 in 11 mortgages deemed in jeopardy - First quarter worst in nearly 25 years
May, '08:Single-family home prices fall sharply in April - Massachusetts median down 12 percent over a year
May:Lenders offer little help in foreclosures - Many reluctant to accept short offers for distressed homeowners
May: Foreclosure filings keep rising in Commonwealth "Some affluent suburbs among communities with highest rates of foreclosure in first quarter"
May:Condo sales in Boston drop off - Prices are down in a market formerly seen as bulletproof
April, '08:Housing prices keep falling as slump enters its third year "Sellers lowering expectations to close deals" "Home sellers in Massachusetts are slashing prices at double-digit rates to close deals"
April:Mass. Foreclosures up 140% in a year "Almost 1,200 Massachusetts properties were seized in March"
April:Home foreclosure rate shows no sign of abatement - Bank repossessions top 51,000 in March across the country
A large, and growing group of residents from the Massachusetts towns of Hamilton and Wenham have recently formed a Political Action Committee under the name ENOUGH IS ENOUGH (EIE).
Six weeks before the town elections in Hamilton and Wenham in May 2008, Jim Kent, a Hamilton resident, wrote a letter to the editors of the Hamilton/Wenham Chronical and the Salem News asking for citizen participation in a group aimed at defeating the $1.8 million school funding override. A group got together and decided to call themselves "Enough is Enough", a battle cry to stop the budget busting pending override.
It was an exciting six weeks, with members walking the streets talking to neighbors, volunteers making signs, helping elders with absentee ballots, writing letters to the editor and distributing flyers.
In a very close election, the override was passed, in Hamilton by only 35 votes. Even with the defeat of their objective, EIE believed that the election result was a tremendous accomplishment considering the short time frame of the group effort. Most importantly, the group became very cohesive and fast friends. Over 100 people contributed in some way.
In June of 2008, Enough is Enough reorganized as a political action committee. Jim Kent, the founder, is now co-chair along with Robert Sica. The group's leadership also includes Elizabeth Dunbar as Secretary, and Ed Howard as Treasurer. Several key committees have been formed with many volunteers actively at work.
A website has been launched to provide important information to the citizens of the two towns and the committee is hard at work on activities that will strengthen town government and provide cost effective services to all of the citizens.
A large, and growing group of residents from the Massachusetts towns of Hamilton and Wenham have recently formed a Political Action Committee under the name ENOUGH IS ENOUGH (EIE).
Six weeks before the town elections in Hamilton and Wenham in May 2008, Jim Kent, a Hamilton resident, wrote a letter to the editors of the Hamilton/Wenham Chronical and the Salem News asking for citizen participation in a group aimed at defeating the $1.8 million school funding override. A group got together and decided to call themselves "Enough is Enough", a battle cry to stop the budget busting pending override.
It was an exciting six weeks, with members walking the streets talking to neighbors, volunteers making signs, helping elders with absentee ballots, writing letters to the editor and distributing flyers.
In a very close election, the override was passed, in Hamilton by only 35 votes. Even with the defeat of their objective, EIE believed that the election result was a tremendous accomplishment considering the short time frame of the group effort. Most importantly, the group became very cohesive and fast friends. Over 100 people contributed in some way.
In June of 2008, Enough is Enough reorganized as a political action committee. Jim Kent, the founder, is now co-chair along with Robert Sica. The group's leadership also includes Elizabeth Dunbar as Secretary, and Ed Howard as Treasurer. Several key committees have been formed with many volunteers actively at work.
A website has been launched to provide important information to the citizens of the two towns and the committee is hard at work on activities that will strengthen town government and provide cost effective services to all of the citizens.
"As I token of appreciation for your business, I am pleased to present you with a brand new SEGWAY." ...Jay Burnham, Coldwell Banker, Beverly, MA
A what?
That was likely the reaction of many homeowners when told they would receive a Segway if they sold a home with Realtor Jay Burnham.
A Segway is an electrically powered, two-wheel, single-person vehicle in which the riders stands and steers via handle bars.
The first home sellers to complete a sale as part of the promotion went home with their new Segway - worth $5,850 - on Friday.
David and Sheila Eddison sold their Topsfield home with Burnham, a Realtor at Coldwell Banker in Beverly.
The couple moved to Mount Desert Island, Maine because David took a job at Jackson Laboratories, a nonprofit genetic research company, as an information technology manager.
Sheila Eddison was an active community volunteer and the couple had lived in their Topsfield home for 26 years.
They received the Segway, adorned with a red bow, on Friday afternoon, two hours after they closed on the sale of their house at 28 Stagecoach Road, selling to Jackie and Eddie White.
The couple's new Maine home is on 40 acres and also includes several summer cottages the couple will rent. Sheila Eddison said she can envision going from cottage to cottage on the Segway, which is the X2 model, that comes with larger, off-road type tires.
"I'm glad we have this one," Sheila Eddison said. "Given the terrain we have to go over," David Eddison said, completing her sentence.
The couple received a quick lesson on using the Segway from Burnham and MaryBeth Alosa of Segway of Northern New England. She showed them how to get on, turn it and how the "key" works.
After a few minutes the Eddisons were zooming around the back parking lot of the Coldwell Banker office on Dodge Street, with Sheila Eddison even maneuvering over a bumpy grassy area and a downed stick.
"You make a lot of friends when you are riding because you have a lot of people wanting to talk to you,' Alosa said.
The top speed of the X2 model is 12.5 miles per hour and goes 15 miles after a 6-8 hour charge.
Burnham said he was introduced to the Segway when his wife took a tour on one in Washington, D.C. in 2001.
Burnham has had his - a milder version that the Eddisons received that's more appropriate for use just on pavement - for 16 months and said he typically rides it to work several days a week in the spring, summer and fall.
The typical 10 minute car ride from his Hamilton home to his Beverly office can be done in about 15 minutes at top speed, but Burnham said it usually takes him about 20 minutes because he enjoys the scenery.
He recently began the Segway promotion, which will go "indefinitely" Burnham said. A new Segway goes to the seller of a home that's closing price is $500,000 or more.
"I want to get as many people on these as possible...it's a clean, green eco-friendly machine" he said.
...Reported in Wicked Local/Beverly, with News from the Beverly Citizen by Bobby Gates
In January of 2007, I wrote a blog entitled "Knowing Exactly When the Market will Change" that received many comments, replies and supportive feedback. In that blog, I stated that it is my belief that as soon as we have 3 consecutive months when more inventory is going off (under contract) than is coming on (new listings) we can once again expect to experience an appreciating market.
Hot off the "Actual Statistics" press, it is now time for my March update (February 2008 statistics) of how the real estate market is faring in my area of the country - the Massachusetts North Shore, north of Boston. The area of observation consists of 22 towns on the North Shore and considers only SINGLE FAMILY homes for comparison purposes.
So how did we do in February and thus far this year? This February, 357 single family homes came on the market on the North Shore and 169 homes went under contract. Once again more listings came on than went off the market: +188 during the month of February. In January, that difference was +150 for a total of +338 so far in 2008.
So, what does this mean in general for our market area?
It means that we remain in a DEPRECIATING market and will remain there until this trend reverses.
The message: Real estate values will continue to decline until this trend reverses.
Part of the solution? Sellers need to recognize that it is no longer 2005 or 2006 or even 2007 and price their homes ahead of the declining price curve. As you can see, many homes are still selling, but they are the ones that are priced properly and AHEAD of the declining value curve.
I will provide another update again in the beginning of April (for the month of March) and we'll take a look and see if the market is changing or if we can expect more of the same for a while.
Regards,
Jay Burnham, VP Coldwell Banker Residential Brokerage North Shore, Massachusetts
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Do you have plans to buy a home soon? If so, has it occurred to you that some of the homes you inspect may be overpriced? They may be priced too high for the market. 
Here's a little something that unfortunately many of our citizens do not realize: Each override is not one-time cost event. Each override is added to the basis of our tax cost and continues in effect year, after year after year. So we will be paying for last year's $1.8 mil override amount again this year and again in 2010 and 2011 and so on. We have been paying the $660k override passed in 1999 each year for 9 years now! That override alone has cost the taxpayers over $7 million.
Hot off the "Actual Statistics" press, it is now time for my Complete 2008 Report of how the real estate market fared in my area of the country - the Massachusetts North Shore, north of Boston. The area of observation consists of 22 towns on the North Shore and considers only SINGLE FAMILY homes for comparison.
In January of 2007, I wrote a blog entitled "
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