Archive for January, 2009
Home Buying 101 - Step 5: Get a Buyer’s Agent
January 19th, 2009 categories: Home Buying 101
This is the fifth installment of my Home Buying 101 series, now updated for 2009.
Previously, on Home Buying 101, I told you about the rights you have as a home buyer and borrower.
Now, it’s time to find a good agent - a buyer’s agent that is.
As a home buyer, you need to have an advocate on your side, looking out for you. Your buyer’s agent will not only show you houses, but will help you locate financing, negotiate on your behalf, educate you on the buying process and the real estate market, set up inspections, locate an attorney and other people who are integral to buying and will help you determine value of the homes under consideration.
A true buyer’s agent will also show you foreclosures, for-sale-by-owner and un-listed properties if you want them to.
Yes, You Need to Sign a Contract
In order to receive the benefit of all of these services and truly be represented by an agent, you will be asked to sign a contract. This contract also ensures that the agent can be paid at the closing.
Note: It is against the law for an agent in Connecticut to show a buyer another brokerage’s listings without a signed buyer agency agreement. For example, if I show a buyer a home listed by RE/MAX West of the River, I must have the buyer sign a buyer agency agreement as my brokerage is RE/MAX Precision Realty.
A savvy buyer may not want to get locked into a long buyer agency agreement with an agent they just met - understandable. A way around this is to ask for a short-term agreement or one that only covers a select few properties. A buyer and agent can look at a few properties together and the buyer can “test-drive” the agent’s approach, industry and market knowledge - something that’s difficult to gauge in a meeting.
If the agent never asks you to sign a contract, then find one who will. If an agent isn’t willing to protect his/her own interests, then they may not be willing to protect yours. Or, that agent has too much free time on his/her hands.
Who Pays the Buyer’s Agent?
A buyer agent’s service is not free. Although most buyers don’t pay anything out-of-pocket for the service, the home seller, through their listing agreement, pays for the buyer agent’s commission and the commission is built into the home price and paid with the proceeds of the closing. Read the rest of this entry »
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How Can It Always Be a Good Time to Buy Real Estate?
January 16th, 2009 categories: Real Estate Industry, Real Estate Market
I heard the National Association of REALTORS’ “It’s a Good Time to Buy” campaign today, again.
The marketing campaign has been around since 2007 in some form and I’m wondering if it has done anything to bolster buyer confidence…which I think was it’s intended goal.
It’s not as if consumers don’t get that the National Association of REALTORS (NAR) represents REALTORS and their interests - not those of average Sue and Bob Home Buyer. Buyers I work with either don’t pay attention to what NAR has to say, don’t know who the heck they are or are skeptical of anything NAR and REALTORS in general have to say.
Whether the campaign was in anticipation of or in response to negative media attention, average home buyers have been doing what they always do, buying houses because they need a place to live and want to feel good about owning their own home. They are completely oblivious to NAR’s message. Read the rest of this entry »
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Glastonbury CT Essential Real Estate Market Statistics for Buyers and Sellers
January 14th, 2009 categories: Real Estate Market
Note: These real estate market statistics are for single family residential homes in Glastonbury - not including condominiums.
Historical Median Sales Price 2000-2008
Glastonbury followed a similar trend from 2000-2008 as did all of Hartford County. According to the data, the median sales price in Glastonbury did not decrease from 2007 to 2008.
However, it’s important to note that the median sales price/square foot actually dropped from $181.79 in 2007 to $176.78 in 2008, which means houses were selling for less in 2008 in Glastonbury.
Historical Median Sales Price/Square Foot
2000 - $123.92
2001 - $131.69
2002 - $137.25
2003 - $153.98
2004 - $162.99
2005 - $176.13
2006 - $181.64
2007 - $181.79
2008 - $176.78
Current Market Outlook
Overall, Glastonbury has just under 5 months of inventory. Or based on last years sales, about how long it would take for the houses currently on the market to sell.
But if we look a little deeper, there is really low inventory in the $100,000 - $199,999 and $600,000-$699,999 price ranges - less than three months which is technically a buyer’s market - and more inventory in other price ranges.
Which Houses Are Selling
I also took a look at houses currently under deposit. Out of 33 homes under Show or Depos status in the MLS, 13 were in the $200,000 - $299,999 range.
And although there is low inventory in the $300,000 and $399,999 price range, only 4 homes are currently under deposit which seems to indicate that segment is slowing down or, it entirely possible buyers just aren’t finding anything to buy.
Advice for Buyers in Glastonbury
There is only one active listing under $199,999 so Glastonbury isn’t all of a sudden becoming highly affordable. However, if you’re in the $300,000 - $399,999 range, the small number of homes under deposit (only 4) tells me that could be a good price range to find some value.
Advice for Sellers in Glastonbury
Glastonbury is a very desirable community to be in so home values will remain higher than much of Hartford County. But don’t let that and the fact that there is a balanced market, with just under 5 months of inventory, lull you into overpricing. The most activity is in the $200,000 - $299,999 price range.
There are some other bright spots - in the $600,000 - $699,999 price range, there are only 6 homes on the market and 2 under deposit. The competition is largely new construction but a larger home in an established neighborhood would really stand out here.
Also, in the $400,000-$499,999 price range, there have been no new listings since December (other than 55 and older) and 5 homes are under deposit. There are some buyers out there so this could be a good time to list your home if you think it might be in this price range.
For more articles and resources:
Top 5 Real Estate Market Predictions for 2009
Glastonbury Property Records Database
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Home Buying 101 - Step Four: Know Your Rights
January 13th, 2009 categories: Home Buying 101
This is the fourth installment of my Home Buying 101 series, now updated for 2009.
Home buyers have several rights regarding fair housing and lending practices, including protection from illegal discrimination and the right to know the true costs of borrowing money.
The Department of Housing and Urban Development already has a great section of their website dedicated to the rights of home buyers. These are all links to their site:
Fair Housing Laws that provide equal access to housing.
Real Estate Settlement Procedures Act (RESPA) RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services.
In addition, you have several other legal rights when you are purchasing a house (in Greater Hartford, the following are included in the standard GHAR purchase and sales agreement):
The right to have an inspection and make purchase contingent upon a satisfactory inspection (must be checked on the contract, though)
The right to receive a seller’s disclosure report
For related topics:
Home Buying 101 Updated for 2009
7 Questions About the Hubbard Clause Answered
Home Inspection Options in Real Estate Purchase & Sales Contract
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Newington CT Essential Real Estate Market Statistics for Buyers and Sellers
January 12th, 2009 categories: Real Estate Market
Note - this is only single family residential and does not include condominiums.
From 2000-2008, Newington kept pace with all of Hartford County with the median sales price appreciating at roughly the same rate.
While it helps to have some historical perspective, these are the numbers you need to know now if you are buying or selling in Newington.
Home Sellers
In the price ranges above $400,000, expect a long wait to sell your home. And the median list price/square foot of $187.93, which is above 2008’s median sales price/square foot of $154.67, tells me that homes in this range tend to be overpriced. For a home to stand out, the best way is to deliver value and price below competing homes.
Of the 30 homes currently under deposit or on Show status in the MLS, 25 were listed for less than $300,00 and the median list price/square foot is $155.28.
If your home is in the range of $200,000 - $299,999, you can expect significantly less time on the market. This price range can be considered a seller’s market, still. However, I would still caution home sellers to not to overprice their home since buyers are shopping for value.
Home Buyers
There isn’t much to choose from in Newington, other than listings under $250,000. Most of what’s on the market has been on for a while. The best value can be found in the $300,000 - $399,999 price range.
To search the MLS for homes in Newington.
For a free Comparative Market Analysis on your home.
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