If you are planning on  trading cash in lower-risk certificates of deposit (CDs) or bonds for real estate, you are trading  into a dramatically higher-risk asset.

Home inspection

Most people know to always have a home inspection done when they are buying property. While a competent home inspector will note all the items working or not, the inspector is not pricing  out the costs to get all those items repaired, nor other items like  painting, flooring, etc., that you might plan to have done.

It’s your job to put together a list of all the work and us at R.P. Valois & Company to  price them out. Put that number into your financial analysis and note  that properties in poor condition rarely sell at a large enough discount  to compensate for all rehabilitation work that needs to be done!

Title abstract and insurance

When you buy property, a title policy protects you in case there is a  title problem, like the seller’s ex-fiancé was a part owner in the  property but didn’t sign off on the sale. In this case, it is the title  insurer’s problem and the title insurer will cover costs to defend you and settle any  dispute, up to the policy maximum limit, unless the title issue was  “excluded” from the title policy.

The Schedule of Exclusions will note issues the title insurance  policy will not cover, like recorded easements. It is vital to review  the information there as well as in the title abstract. If there is a title issue that was “excluded” from coverage, it is your problem, not theirs.

Survey, plats, legal description

We as developers can put your mind at ease making sure your land, lot or condominium — plus parking spaces and storage — will also have a defined legal description of what you own. There may be  a county plat showing it and/or you might want to have a survey done of  the lot lines.

Either way, you should walk the property and compare  what you physically see to what is on the plat/survey to make sure you  are comfortable that no neighbors’ fences, driveways, etc., are  encroaching on your lot.

If it is a condominium, make sure you review  the recorded rights to your interior space, patios, parking spaces,  storage, etc.

Homeowners association

If you are buying a property in a common interest development like a  condo or townhome, you are not only buying your individual unit, you  are buying into the larger entity. Thus, you are responsible for your  share of the cost to pay for those, via homeowner association (HOA) fees.

There are many many  risks related to HOAs; a few range from unfunded reserves for repairs  and replacements to litigation and water issues.

You can do analysis to  better reduce your risk of buying into an HOA that is in a disastrous  state, but you have to do the hard work of doing the proper due  diligence.

Financing

You also need to make sure you are getting a fair deal on your financing, we can direct towards a qualified representative. Just getting a bid from any lender is not good enough. Shop around to get pricing from at least two  lenders and carefully compare those mortgage bids to determine which one  gives you the best fees vs. interest rate.

It’s not easy to do,  as the good faith estimate (GFE) forms are quite complicated, but that’s no  excuse for not doing the proper analysis.

Insurance

Lastly, do you have the proper type and amount of insurance coverage  in place? Make sure to sit down with your insurance agent and determine  what you need to be adequately covered. Look into umbrella policies as  well as earthquake, interior condominium Home Owners Insurance policies and any other  coverage you need.

Pick our brain so you have the proper coverage for your risks.

A real estate investment, whether rental property or a home, is the largest, most complicated and riskiest purchase you  will ever make. Experienced investors know how to better reduce their  exposure with the proper due diligence; you need to make sure you know  how to do the proper steps, too! Let Bob show you where the value in your investment is best placed.

It’s your money, and your retirement, at risk. You don’t want to find  out, after disaster strikes, that you could have reviewed, analyzed,  researched and done the hard work upfront to have protected yourself and  avoided that issue from ever happening in the first place.

Three, two, one … still here?

You invest in your home to improve livability first, not value. If  you get more value in the process, consider it a bonus, but don’t make  ROI your prime directive.

Otherwise, you’ll end up like the potential client who came into my  office a few years ago with a three-page, single-spaced typewritten (as  in made with a “typewriter”) list of things he wanted in his house.

His list included this line: “A large dining room, near the kitchen.  Although we don’t need or want a dining room.” Why would he want to  build a room he didn’t need?

Because he’s thinking of things to make the house valuable, instead of things to make it livable.

So let me rephrase the remodeling-ROI question this way: What are  some cost-effective ways to improve the livability of your house?

Here’s my short list:

1. Walk-in pantry instead of kitchen cabinets

Kitchen cabinets are expensive. Half of them are up high on the wall  where they’re hard to reach, and the wall space they take up could be  better used for windows. A pantry takes up less space, stores a lot  more, is much easier to use, and costs less to build.

2. Comfortable shower instead of big bathtub

My firm does a lot of work in late-’70s/early-’80s neighborhoods that  are loaded with huge tubs. We’re taking them all out, one at a time, and  replacing them with comfortably sized showers (not the  racquetball court-sized ones you see in home shows) that people actually  use every day.

A shower takes up less space, uses less hot water, and is far more sanitary than a big tub.

3. Group windows together facing best views instead of scattering them around the house

Got a great view somewhere? Bring it into the house with lots of  glass. Take excess windows from bedrooms and bathrooms and use them to  connect the inside of the house with the outside.

We once remodeled a house on the coast of Lake Erie that had one  window — one — facing the lake. Hey, pal, did you notice you have one of the Great Lakes in  your backyard?

4. Keep ceiling heights reasonable for the room size

“Volume” ceilings do not automatically make better rooms. They just  make taller rooms, rooms that are harder to decorate and more expensive  to heat and cool.

Instead, focus attention on a view, a large fireplace  or other element — and away from the ceiling height. Use wall trim and  multiple paint colors to break up the volume of the room and create the  illusion of height.

5. Spend more time planning, and less money building

I toured a client’s existing home before we began designing the new  one. “Of course,” she said as we peeked in on the kids’ rooms, “These bedrooms are way too small.”

“Really?” I thought. The smallest was  probably 14 feet by 15 feet. But each bedroom had at least one door or one window  on each wall.

Pretty, but the design left little room for furniture.

I suggested we more carefully design the new bedrooms, keeping the  furniture placement in mind. In the end, we were able to easily  accommodate each child’s bedroom furniture comfortably in smaller  bedrooms than what they’d had before.

6. Consider the simple elegance of the box-form house

Subtlety and restraint used to be virtues in home design. These days,  far too often, inexperienced designers attempt to attract attention to  their homes by adding more stuff: more gables, more materials, more  bay windows, etc. Others know that proper proportion, scale and details are  what turn heads.

The simple box-house is a classic American form that’s survived 150  years of stylistic changes. Greek Revival, American Four-Square,  Tidewater Georgian … all simple boxes. Great proportions, great  details … done.

And here’s a bonus: The box-form is easier and cheaper to build, and because it encloses a larger volume in less perimeter, it’s less expensive to heat, cool and maintain.

7. Share part of the master bath

This isn’t for everyone, but it really tightens up the budget and the  floor plan. Make the toilet and a sink in the master bath accessible to  the rest of the house, instead of building a separate half-bath — it  won’t be used much by you during the day, and rarely by guests at night.

Why have two baths when one will do?

8. Spend it when you have it, not before

Sure, it’d be great to have those granite countertops now, but your  budget’s tight and granite is 10 times the cost of laminate tops. So  how about putting in nice laminate tops now, and replacing them with  granite in five years when you have the cash? You can easily do the same  with light fixtures, flooring, window treatment …

9. Compartmentalized bath — two baths in the space of 1 1/2 baths

Each kid doesn’t need a personal bathroom, but does need privacy and  room to share. A compartmentalized bath puts two sinks in one room and  the toilet and tub/shower in another, so three kids can use the bath at  once and keep a little more harmony in the family home.

I doubt any of these ideas will ever make a magazine’s list of “Best  Remodeling ROI” projects. But every one saves you money over a more  “conventional” design strategy, and every one increases the livability  of your home.

.

WALTHAM, Mass. – April 10, 2012 – The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes put under agreement in March went up again for the 11th straight month compared to the same time in 2011. Condominium pending sales were also up from the same time last year. Pending figures are a leading indicator of actual housing sales in Massachusetts for the following 2-3 months.

“Activity in the market place continues to build as reflected in the number of homes that went under agreement in March,” said 2012 MAR President Trisha McCarthy, broker at Keller Williams Realty in Newburyport. “We are taking important steps towards market recovery with each successive month of increased pending sales.”

The number of single-family homes put under agreement in March was up 38.8 percent compared to the same time last year (*3,256 homes in 2011 to 4,519 homes in 2012). This is the 11th straight month of year-over-year increases and the first month since June 2011 to go over the 4,000 homes under agreement mark. This month also had the most pending sales in March since MAR has been tracking the data. On a month-to-month basis, single-family homes put under agreement went up 34.2 percent from 3,368 homes in February.

The number of condos put under agreement in March was up 30.4 percent compared to March 2011 (*1,422 units in 2011 to 1,854 units in 2012). On a month-to-month basis, condos put under agreement were up 45.2 percent from 1,277 units in February.

About Pending Sales:
The tracking of signed purchase and sales agreements (also called “pending sales”) provide reliable information about where the real estate market is heading in coming months.

A pending sale or a sale “under agreement” is when the buyer and seller agree on the terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close and be recorded as such. MAR is the only organization which compiles this statewide information from Multiple Listing Services each month.

A major barrier for first time home buyers is obviously the tighter lending standards since the housing bubble burst. I can assure you I have local bankers that can help you move forward during these stricter times, bankers that have always been conservative even during the most loose time periods and have not been put to the stricter guidelines for previous mistakes.  “If you can get the financing, it’s a great time to buy a home with the prices this low. Another strong indicator to me besides the sudden increase in home sales is the slight rise of mortgage interest along with the strong presence of investors that have lifted home sales.

I can help you make this happen, give me a call at 508-965-2378

NEWS YOU CAN USE

I can provide you with up-to-date information and statistics on local market conditions. These can differ substantially from what you hear in the media reports, which are often skewed to heighten drama.

MAXIMIZE POTENTIAL

Feel free to ask specific advise on home maintenance, or suggestions for upgrades that will enhance your property’s resale value. I am a Certified Stager and will gladly recommend small choices that will bring big dividends.

LOCAL INSIGHT

I’m always happy to provide information on community amenities such as parks, schools and trails or even local special events.

LET’S TALK VALUE

Request a market analysis when you need an estimate on your home’s current value for a potential refinance or for insurance, estate planning or property tax purposes.

I’m also available to discuss issues or new developments in the community that could affect property values

ACROSS THE MAP

I can help you or a family member secure the services of like-minded real estate transaction, so please don’t hesitate to call.

Working by referral is the commitment I have made to provide my clients with unsurpassed service whenever they need me, and to maintain long-term relationships that will offer added benefits for years to come.

My primary source of new business is referrals from people who already know and respect me. Since I don’t have to spend excessive amounts of time prospecting and promoting myself, I can focus my time and resources on the tasks that benefit you most, and always deliver truly exceptional service.

YOU CONTROL MY BUSINESS

I want to earn your confidence and your referrals; therefor I have a vested interest in making sure that you are completely satisfied at the end of our transaction together. My goal is that you will be so impressed that you can’t wait to tell your friends and family about me and the fantastic service you received.

SERVICE ABOVE AND BEYOND

I devote myself to serving the needs of my best clients like you before, during and after the sale. I will stay in touch and send you valuable information every month, and I’ll also call from time to time just to see if you need anything.

There are a number of ways I can help, such as researching your home’s current value, or suggesting improvements that will enhance its resale potential. And when you have a need for a particular trade or service, I know many reliable professional that I work with daily and would be happy to recommend. If there is ever something that I can do for you, please feel free to ask.

When we enlist the services of any professional, aren’t we really looking for someone we can trust-someone proven who comes highly recommended and is willing to go that extra mile?

According to a recent survey, nearly two-thirds of Americans don’t have a will-which leaves it up to a judge and the laws of the state to determine the distribution of these assets and belongings if they should pass away unexpectedly.

DOCUMENT YOUR DECISIONS

1. A Last Will and Testament provides for the care of minor children by establishing guardianship and dictates how you want your remaining assets divided among the heirs. An executor is named to oversee the distribution of assets and pay any taxes, debts or other obligations that are due.

2. A Power of Attorney allows a designated individual to handle critical financial transactions on your behalf if you become incapacitated. This can include powers that range from signing checks for household expenses to arranging the sale of property or other personal or business assets.

3. A Trust is a separate legal entity that is structured to hold assets which you transfer to it. Trusts help prevent financial uncertainty, delays and family discord after death by directing the prompt distribution of the estate. Unlike a will, the contents of a trust typically avoid probate and are also kept private-and some can be used to reduce taxes.

4. An Advanced Healthcare Directive is a Living Will (which expresses your preferences concerning life-sustained procedures) or a Healthcare Power of Attorney (which allows an individual to make healthcare decisions on your behalf0 or both.

Average Payback: 103%  of  cost.

2. Bathroom Remodel- this includes updating fixtures, sink and all ceramic flooring and walls.This along with the kitchen are the most likely to bring return as far as interior remodel goes.

Average Payback: 102%  of cost.

3. Minor Kitchen Remodel- this may include new cabinet doors, wall oven,  counter top  & sink with new faucets and a new floor.

Average Payback: 98.5% of cost.

4. Attic Bedroom Addition- this includes expanding available bedrooms by adding a dormer, new windows and closet space.

Average Payback: 93.5% of cost.

5. New Replacement Windows- Although this remodel is something appreciated when lived in, most shoppers expect the windows to be in both functional and well insulated  condition.

Average Payback: 82% of cost

In the Northeast median prices fell to $239,000 from $260,300 in August, and declined 1.4 percent from the previous year. “In my opinion with all the foreclosures and short sales that have saturated the market during this past year it is pretty clear that the market has somewhat sustained its value.”

In the Midwest, the prices fell to $139,700 in September from $149,600, and fell 5.2% from the previous year. The Northeast showed the least decline while the Midwest showed the heaviest decline. “My opinion again but I’m sure we will all look back at these years as the years of opportunity. How many of us will actually take advantage of this?”

The South saw its price drop to $149,500 from $155,000 in August, That was down 2.6% from September 2009. “From what I’ve been hearing median price of $149,500 seems pretty high. I have a few friends that have bought lovely 3 bedroom ranches in the $50,000-$60,000 range.”

The median price in the West declined to $213,600 from $214,700. On a yearly comparison however the West was down 4.9%  “Remember real estate has always been trends of peaks and valleys, none last forever.”

1. CURB APPEAL- first impression only happens once so it is important to grab their attention along with their desire to further investigate your home. Pruning trees, mulching flower beds and removing unnecessary clutter is essential. Painting the front door a vibrant color is always a good touch. Remember keep the outside of your home neat throughout the selling process is a very important step in capturing a potential buyer!

2. CLUTTER- we’ve talked about the importance of the exterior grabbing the eye of any potential buyer but the process must continue indoors where the clutter is more likely to occur. Personal pictures should be reduced to a bare minimum to avoid someone focusing on them rather than the home itself. Kitchen counters, refrigerators, bookshelves should all be kept clean. So, for now take a box and clear all these items and store them away.

3. REARRANGING- sometimes items of clutter could be furniture. Removing furniture that is an eye sore or causing the room to look small and crowded is a big step in assuring the potential buyer sees the home for all it’s worth.  Storing these items away during the listing or completely ridding yourself of them depends on there condition, however either way they should be taken out of the home. Another good idea to clean clutter is before you put the home on the market is to have a garage sale.

4. ROOM FUNCTIONS- this means that the purpose of every room should be staged as it’s purpose. Dining rooms should appear as such and not be a catch all because of it’s lack of use. Patios and decks should represent a place to relax with nature and not a place for all outdoor items to be stored. Concentrate on making your home look as you would through the eyes of a buyer. Sometimes it’s best to walk through the home with a buyers eye and you’ll be surprised how many things will look different to you.

5. ATMOSPHERE- you want everyone walking into your home to feel welcomed. This means the home should smell good, feel light and airy creating a nice flow with no obstructions from room to room. Baking cookies and brownies before an open house is always a good way to fill the air with delight. Sometimes repainting the interior, changing carpets and old furniture is the only way to accomplish a nice fresh smelling home. Always make sure all light bulbs are in working order and have a higher than normal watt to assure a bright open field. Curtains and shades should be drawn and in good looking condition. The temperature should be comfortable during all seasons with a working fire in the winter a great touch.