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Cambridge Real Estate September Statistics
Cambridge Condominiums – September 2011
- Properties listed for sale: 99
- Properties sold: 53
- Average sales price: $511,825
- Average original list price: $533,872
- Sales price to original list price ratio: 95.87%
Cambridge Single Family Homes – September 2011
- Properties listed for sale: 21
- Properties sold: 3
- Average sales price: $473,333
- Average original list price: $514,333
- Sales price to original list price ratio: 92.03%
Fall Cambridge Real Estate Market Recap
In spite of the doom and gloom predictions swirling around the Real Estate Market, we are lucky to be experiencing an extremely stable market in Cambridge – both in terms of pricing and sales volume. With interest rates remaining at historically low levels and a relative inventory shortage, we expect high buyer activity this Fall. Sellers who have held back putting their properties on the market may want to consider taking advantage of this confluence.
Year to date, 85 single family homes have sold in Cambridge at an average price of $1,091,466. While the number of units sold has remained stable over the same time last year, the average sale price has declined by 8.4%. However, a closer look shows a shift in the price range of properties sold. As of early September 2010, 20 properties had sold in the $1M-1.5M range with the balance scattered among all other price ranges. To date in 2011, 15 single family properties sold in that range with roughly an equal number (14) selling in the $500K to $600K range – this shift in mix is significant in terms of the average sale price calculation. We are also seeing a 21% drop in Single Family inventory over this time last year.
Condominium Sales in Cambridge have remained stable both in terms of price and unit sales. By this time last year 509 properties had closed with 506 to date in 2011, the 22011 average sale price of $497,980 changed only $806 year over year which is statistically insignificant. However, we do have an inventory shortage with available units down 30%.
Tips on Becoming a Homeowner
Are you interested in becoming a homeowner and want to know how? Here are a few suggestions to simplify the process from start to finish:
STEP #1: Ask about financing. There are state and government programs designed specifically for first-time homebuyers. Consult with a mortgage lender to determine which financial option is right for your specific needs. Coldwell Banker Residential Brokerage is affiliated with NE Moves Mortgage, LLC. Through this relationship, I have access to knowledgeable mortgage loan officers who can help you determine which program is right for you.
STEP #2: Take the mystery out of mortgages. It’s important to be aware of what mortgage lenders look for. Know your financial status as it affects the terms of a mortgage and the interest rates or types of mortgages you qualify for.
STEP #3: Get pre-approved for a loan. It’s critical to be pre-approved for a loan because it serves as a commitment to lend a specific amount based on the information you provide. A pre-approved loan gives you the confidence and buying power you need.
STEP #4: Do your homework. Get to know the market you are interested in. Spend time researching different neighborhoods, school districts, transportation, etc. Go online to sites such as NewEnglandMoves.com to obtain information on buyers’ resources. Doing this type of homework gives you a better understanding of what is available and at what price.
STEP #5: Simplify your search. Create a checklist of the important features you want in a home, such as location, or the number of bedrooms or bathrooms. Other questions to answer: What will the commute to work be like? Are there shopping centers, parks, and schools located near the home?
STEP #6: Find an agent. A sales agent will help you identify homes for sale and in the right price range. The agent also can help with tasks such as writing contracts, negotiating the asking price, and closing the purchase.
STEP #7: Make an offer. Once you find the right house, make an offer. Make sure it is contingent on two items: 1) You’re able to obtain adequate financing (if you haven’t already done so), and 2) you can pull out if the property doesn’t pass the home inspection and the owner can’t come to terms about how to fix the problem. Be prepared for counter-offers from other buyers and some negotiation with the seller. Make an earnest money deposit, which is a check you’ll give your agent to indicate you are serious about buying the house. The check will apply toward the sales price if the deal goes through; if not, you get it back. You should also set a time limit with your agent that the offer you’ve made is good for three days. If an offer is accepted, it goes to the contract phase.
STEP #8: Be safe, not sorry. You’ve found your dream home! Now you need to ensure it’s worth every penny. Making an offer contingent on an inspection by a registered home inspector can save thousands of dollars by avoiding unseen problems. Inspectors check the house for any structural damage. In the contract with the seller, it should state any necessary repairs to be made before the closing. Prior to closing, walk through the house to see if the repairs have been made.
STEP #9: Protect your investment with homeowners’ insurance. Lenders require homeowners’ insurance to protect the new homebuyer’s interests as well as their own. There are many providers so shop around for the best rates.
STEP #10: Before, during and after the closing. This is where the seller and buyer sign settlement-closing papers to transfer the ownership of the home and all transactions are finalized.
If you need any assistance or guidance throughout the home buying process, please feel free to contact me.
How to Make Sure Your Home Sells at the Right Price
Establishing a reasonable and profitable listing price for a home is perhaps the greatest challenge for every home seller. Many factors must be considered before settling on a listing price. It is recommended that you take the following steps before setting an asking figure.
Ask for a CMA. A competitive market analysis (CMA) will provide a list of recent sale prices of similar homes in the area (with comparable numbers of bedrooms, baths, square footage and lot size), the asking prices of homes currently for sale nearby and other important information. Prospective sellers should be provided with a professional estimation of a legitimate selling price.
Take the Emotion Out of It. A qualified sales associate will evaluate the location, condition and size of your home. A house in a secluded, exclusive area may appeal to some, while others will want to be closer to schools, shopping and health care facilities. What is the physical condition of your home? Is it a fixer-upper? Does it make a good first impression (the ever important curb appeal)? Will it appeal to a growing family, or is it better suited to empty nesters?
Determine If It Is a Buyers/Sellers Market. Real estate markets vary from neighborhood to neighborhood. Home inventory, mortgage interest rates and the local economy play a role in determining whether the buyer or seller has a negotiating advantage. Interest rates remain at historically low levels and financing is available for those qualified, putting buyers in a good position to achieve homeownership.
Do the Math. Do not forget to figure in closing costs, legal fees and other selling expenses when determining the selling price. A qualified sales associate will provide cost estimates, and negotiate with a potential buyer to ensure a good sale price.
Give It the Once Over. There is one more step to ensure that the house sells for your price, or more. Do as much as possible to improve the home’s appearance: touch up the paint, fix leaks, seal any cracks, clean out the clutter, and eliminate pet odors. The house has only one chance to make a first impression.
Make the Most of Your Open House
In any market, one of the most effective ways to attract buyers is through an open house. Here are a few tips to help you maximize the open house experience.
Invite the neighbors. Neighbors are a great way to help deliver open house attendees. They serve as champions for the neighborhood and can spread the word that your home is available.
Use signs to attract buyers. Signs are a sure way to lure prospective buyers to your home. I often place “Open House” signs at nearby, well-traveled intersections with directions to the home. I will know local ordinances about when and how long signs can be posted.
Offer fact sheets/brochures. I will provide prospective home buyers with information about the property and price. Effective take-aways include details about the property’s features, the neighborhood, proximity to shopping, main highways, schools and recreational facilities. Photographs help buyers remember the house. Previous inspection reports and a list of home improvements, new appliances and/or fixtures are also helpful.
Maximize curb appeal. Ensure the outside of the home is as appealing as possible. Water and mow the lawn, trim the trees, cut back overgrowth and plant colorful flowers. Also, be sure to store bicycles, gardening equipment, children’s and pet toys, and remove the car from the driveway to provide parking. The front door should have a “welcome” feeling; a fresh coat of paint works wonders.
Neat and tidy sells. Potential buyers want to evaluate every room in the house, so you must create a positive experience for the potential buyer. Remove all clutter and make sure lights are working throughout the house. You may even consider baking cookies or burning candles to make the home smell pleasant – just don’t over-do a particular scent!
Let the sun shine in! Nothing improves atmosphere like a room filled with natural light. Raise the blinds, open the curtains and wash the windows so the natural light can shine through.
For more helpful suggestions, or to learn how I can assist you in the sale of your property, please feel free to contact me.
Attracting Buyers and Maximizing Your Selling Price
Selling a home can be a stressful undertaking. Sellers normally have a strong belief in how much their home is worth, but securing the right offer is not always easy. There are a number of things sellers can do to impress potential buyers and maximize the possibility of gaining the best deal. I have identified several tips that allow sellers to differentiate their home from others on the market by making it look its very best and presenting it as a desirable place to live.
Focus on Curb Appeal: The outside of the house makes the first impression. If the “curb appeal” is strong, people will want to see what is inside. To improve a home’s appearance, water and mow the lawn, trim the trees, cut back overgrowth and plant some colorful flowers. Also, properly store bicycles, gardening equipment, and children’s toys. In addition, be sure the front door has a welcome feeling. A fresh coat of paint on the front door works wonders for a good first impression.
Remove the Clutter: Virtually all homebuyers are on the lookout for one thing – a clean, spacious home. Homebuyers tend to show less interest in an untidy home. A dirty home will likely mean a lower selling price. The two most important rooms in a buyer’s mind are the kitchen and bathrooms. Make certain these rooms are sparkling clean and in good condition. In addition, avoid overflowing closets or displaying too many family collectibles. Consider storing some furniture to open space in rooms. Buyers need to imagine themselves living in the home. By neatly displaying and making all available space accessible, the seller affords the buyer a suitable opportunity to look towards the future.
Make those Necessary Repairs: Homebuyers will automatically expect all features in a home to operate safely and efficiently. If a buyer notices a number of problems, they may question whether the home has been cared for. Any faulty or outdated electrical outlets and wiring, furnaces and water heaters, along with leaking roofs and other plumbing concerns, should be repaired prior to putting a house on the market. Potential buyers may also react negatively to spot holes in window screens, broken windows and burned-out light bulbs.
Eliminate Odors: Make sure to take out the trash and empty ashtrays. Also be certain to bathe pets and clean drapes. It is important to ensure that the home smells nicely. Fresh flowers and room fresheners also work wonders in creating a pleasant environment.
Work with your Sales Associate: Being objective is hard. So utilize your real estate sales professional to gain an even-handed appraisal of what improvements can and should be made. Sales associates have the experience and knowledge to help identify potential problem areas or to suggest necessary improvements that appeal to potential buyers.
A “Do And Don’t” List for First-Time Homebuyers
For most people, buying a home is the most significant investment of their lives. And in spite of the doubt and confusion clouding both the financial markets and news headlines, 2011 presents many genuine real estate opportunities – especially for first-time buyers.
On average, prices are down and historical data demonstrate that purchasing a home has proven a sound long-term financial investment. However, first-time homebuyers are often understandably anxious when it comes time to making what could be the largest purchase in their life. Here is a simple “do and don’t” list to make the process easier for everyone dreaming of homeownership.
DO:
• DO utilize free online tools to arm yourself with as much knowledge as possible. Visit real estate Websites like NewEnglandMoves.com and Realtor.com to find information on the latest tax credits, mortgage calculators, and the home buying process overall.
• DO take time to access and closely review your credit score. A sound financial track record and solid credit score can help lock in a loan and lower interest rates. Checking your records with a fine-tooth comb in advance will also ensure that you catch any errors ahead of time, as well as help you better understand how lenders may perceive you.
• DO explore mortgage pre-approval. Obtaining this early green light will help others involved with your purchase know that you are serious about home ownership – and well-qualified.
• DO line up your “all-star” team of professionals before game day. A team of experienced professionals will be key to making the home buying process simple and seamless. Start by interviewing and selecting a sales associate who you “connect” with. That sales associate should also be able to help you identify suitable lawyers, mortgage lenders, home inspectors and others who play a role in the process.
• DO anticipate your future needs and buy for lifestyle. Try to anticipate how long you’ll live in your next home and plan for major lifestyle changes when possible. What may make a perfect starter home for a couple might not work as well when children come into the picture. Remember, people move for lifestyle reasons and your first home will likely not be your last.
• DO hone in on your housing priorities. Your ideal home may have a porch, a pool and five full baths. But before you start looking, make sure to separate your “must-haves” from your “nice to haves,” so you know where you can compromise to meet your budget.
DON’T:
• DON’T fall in love with the first house or neighborhood you see. That grand colonial with the picturesque view may win your heart at first glance, but don’t fall in love too fast. You need to keep an open mind to make sure you find the right fit for all your needs. At the end of your search, it may turn out that the riverfront ranch that’s closer for your commute is a better choice all-around.
• DON’T buy beyond what you can afford. It’s easy to fall into that all-you-can-eat attitude when it comes to your first home purchase. You “want it all” when it comes to size, amenities, location, etc. But remember that your eyes may have a larger appetite than your wallet. Make sure that the down payment, closing costs, monthly expenses and taxes are truly within your income and savings range before you sign on the dotted line.
• DON’T treat your home the way you treat your stock portfolio. It’s unrealistic and unwise to expect your housing investment to appreciate as quickly as you’d hope for your stock portfolio. Buying for lifestyle, as opposed to trying to turn a quick profit, will help ensure that you are viewing home purchasing and ownership in the right context.
• DON’T try to time the market. By the time most consumers sense a major real estate or financial market shift, the tables have typically already turned. Instead of waiting for a slim and unreliable window of time – and potentially missing out on the perfect home – buyers should focus on their own lifestyles and buy when the time is truly right for them.
• DON’T jump into an exotic or confusing mortgage. When it comes to down payments and mortgages, if it sounds too good to be true, it probably is. Be sure to read carefully through every aspect of the proposed agreements to fully understand your end of the bargain. For instance, what seems like an attractive rate now may balloon exponentially a few years down the road. So arm yourself with information and don’t be afraid to ask questions.
• DON’T underestimate the value of a trustworthy real estate agent’s on-the-ground expertise. While being a savvy buyer and doing one’s homework will help on the road to homeownership, a local expert with years of negotiating experience is invaluable when it comes to scouting out the perfect home – and closing the deal.
Caught in Between Selling and Buying a Home?
Selling a home and buying a new one can be a difficult balancing act. A homebuyer can take a liking to a home that is for sale, wants to make an offer to buy it, but is hesitant because they have yet to sell their existing home. In an ideal world, both transactions would occur simultaneously. However, homebuyers and sellers can get caught in between real estate transactions. I offer several tips to increase the chances of coming close to selling and buying at the same time and what to do if caught in between situation arises:
Consider bridge loans: Getting a bridge loan may be an option to move ahead with the purchase of a new home, while still waiting to sell the current home. A bridge loan means borrowing from the current home’s equity until the proceeds from its sale is obtained. With some bridge loans, the requirement is to pay just the interest. Other bridge loans require a single payment of interest and principal when the loan needs to be paid back. There are times that bridge loans can be extended but as they can be expensive if protracted, it’s best to use them for overlaps of a few days between closings, or at the most, a few months.
Buy on contingency: An ideal way to insure against getting caught in between real estate transactions is to have a prior-sale contingency included in the purchase contract on the new home. It provides the opportunity to withdraw from an offer if the current home does not sell by a certain date.
Consider whether to buy or sell first: There is still a possibility of getting caught in between even with a prior-sale contingency in the purchase contract. Homeowners should consider whether it is better to buy or sell first. It is important to note that most people need to sell their current home in order to qualify for a loan to buy their next home, which is usually more expensive.
Coordinate a lease from the buyer: Many people find themselves in a situation when the sale of the current home has been finalized but the purchase transaction is still not completed for the new home. One way to bridge the gap is to lease the current home from the new buyer until it is time to move into the new property. An attorney should draw up a contract or lease agreement. Coordinating a lease is effective because it alleviates financial concerns and removes the hassle of having to go to a temporary residence before finally moving into the new home.
Look into renting: The buyer may not always be able or willing to lease back the home, so another option to consider is to rent another property. Although relocating twice in quick succession is not ideal, renting serves as a quick fix and can be a necessary option before moving into that dream home.
Review home equity options: If it is necessary to borrow for a longer period than a few months, the best option is to use home equity, particularly if a sizeable equity has been built up. Options include a fixed-rate home equity loan and a home equity line of credit.
His and Hers Home Buying: Finding a Home as a Couple
For most couples, buying a home is the most significant purchase they will ever make together. While the prospect of owning a home is an exciting one, it can often seem overwhelming, especially for those who are new to the real estate process. From selecting a neighborhood to deciding how to use a spare room, navigating the world of homeownership together requires some extra work. However, couples will be thankful they put in the additional effort when the “sold” sign is posted on the home of both of their dreams.
For those couples looking to purchase a home, I offer seven simple tips that will ensure a “harmonious house hunt” without rocking the relationship:
Get pre-approved for a loan. There are few things worse than finding the perfect home, only to find out that it costs more than one can afford. Before beginning the house hunt, I recommend getting pre-approved for a loan. A pre-approval will let couples know where they fall financially while informing the mortgage company that they are ready to buy. Additionally, being pre-approved for a loan can help speed up the closing process once an offer has been accepted.
Set a budget. Beyond basic income and savings, there are a number of other financial elements to consider before setting a price range for the new home. Once a couple has decided on a location, they should consider its proximity to their family, jobs and a good school for children and gauge travel costs. The next step is to add up monthly bills, including the couple’s car payments, phone bills, insurance costs, groceries, and credit card payments. This total estimated cost of living should be factored into the couple’s overall budget.
Get on the same page. Whether it is a quiet neighborhood or a two-car garage, everyone has their own “must haves” when it comes to the home of their dreams. For a couple looking for a home to share, it is important to discuss each of their essentials before beginning the search. Keep in mind that agreeing on all of the features of a future home will likely be impossible, so be prepared to compromise. Once the list of “must haves” is finalized, contact a real estate professional who can determine if the expectations are realistic given the homes currently on the market.
Allocate additional funds. The down payment on a new home is just one of the significant financial aspects of a move. Even after both people’s belongings are combined there will likely still be a need to purchase furniture and other items like a washer and dryer. The last thing a couple will want to do is start out their life together with nothing in the bank!
Be patient. A Coldwell Banker survey found that women are likely to make up their minds faster than men. Almost 70 percent of women surveyed decided the day they walked into the house that it was right for them, while 32 percent of men needed two or more visits. It will likely take multiple trips to the home before both members of the couple decide it is “the one.” If a spouse needs more time, be patient and try not to pressure them.
Take inventory of everyone’s belongings. Before moving into a new home together, each member of the couple should make a list of the furniture they plan to keep and compare it with their partner’s. There may not be a need (or a place) for three televisions and two kitchen tables in the new house. Consider selling unwanted pieces of furniture online, or holding a garage sale. The money made is sure to be put to good use on purchases for the new home.
Sign a contract. For a couple who has yet to walk down the aisle, it is important to contact a real estate attorney before closing on a home. A contract should be drawn up outlining who is responsible for what expenses and how assets will be divided in the event of a split.
For more helpful tips and suggestions, please feel free to contact me.
