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Some of the technology being used is based on an “AVM” or automatic valuation formula. AVM is what Zillow is using when displaying their famous or infamous “Zestimates“. It is a formula which gives a home value sight unseen. Is it accurate?…well not always. AVM’s tend to be much more accurate in parts of the country where the  home construction is more “cookie cutter” then here in the Northeast, which is full of varying types and ages of home construction.

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Anyway…back to Homesnap. This app is the fastest way I know to get information about homes as one is traveling and spots a home that you find interesting or attractive in your home search. No more remembering an address or a company. Just take a picture with your phone and voila you are empowered with all the available listing information. Check it out and let me know if you find it useful. Of course it is free

Accept the things you cannot change

The two main reasons that the housing prices have softened:

1. the current economy
2. the inventory of distressed properties (foreclosures and short sales)

As an individual homeowner, there is no way for you to impact either of those two situations. The best think-tanks in the country are struggling to discover solutions.

Have the courage to change the things you can

There is not a vacuum of buyers in the market. There is a vacuum of homes a buyer in today’s market will purchase. Let us explain: could you sell your home today for $1? … $1,000 … $10,000? Of course you could. There are plenty of buyers in the market for a home they consider priced correctly. You have to decide what the correct price is for your home if you truly want to sell. If you want your house sold, you must list it at a price a buyer will pay for it. Not a buyer from 2006 but today’s buyer who has plenty of homes from which to choose.

It will take courage to sit with a real estate professional and honestly decipher the true value of your home. If you want to sell, you must have that courage.

The wisdom to know the difference

We all realize that the economic situation will take some time to correct. If we want to wait for prices to return to 2006 levels, we will probably have to wait for 5-7 years.

Look at the reason you decided to sell in the first place and decide whether the extra money you would get from the sale is worth that wait. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

This is where your wisdom must kick in. You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

City of Gloucester Website - Home page

“click” on the tab (left side of page) that says “online services”.  That will bring you to this page:

City of Gloucester Website - Online services page

The property tax records and water/sewer bills can all be accessed by “clicking” on the highlighted type.

The next page will then ask you for your address or parcel ID number.

City of Gloucester address page for online tax records

If you are unfamiliar with your parcel ID number, it can be found in the “assessors” records online , on a tax or water bill or by calling our helpful Gloucester assessors office. Fill in the address and voila the computer does what computers do and you have your annual records in front of you!

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It is unique in the fact that it offers so many varieties of water views from its singularly spectacular location. It sits on a peninsula facing south with views in every direction. This means that sunrises and sunsets can both be seen from this property. The water views that can be found at this location are many: open ocean, Boston skyline, up the  Annisquam River and working waterfront all from one vantage point. The lot size is small (2,740 sf) and the home has not changed hands since 1963. Assessed at $440,700 and priced to reflect the value of a 360 degree water view in Gloucester MA homes at $2.4 million, one thing can be assured:the taxes will be changing after this sale!

Kings wood in a Gloucester MA attic

Ever wonder about those really, really, wide pine floors we find in our New England homes? They have a very interesting history in our country. Interestingly, enough they may have been just as influential in the American Revolution as the Boston Tea Party! The British fell in love with the white Pine species of trees for their usefulness as light, strong and exceedingly tall masts of sailing ships, & the British Navy. They were considered so valuable that the “Kings men” (militia) went through the virgin New England forests marking the most desirable trees (widest & tallest) to be saved for shipment to the British Monarch. Three hatchet marks in the shape of an arrow was called The Kings Broad Arrow”. These trees (24 inches or more in diameter) were so important that they were mentioned in The Charter of Massachusetts Bay 1691.

The Broad Arrow

Predictably over time, the colonists became less and less willing to surrender the resources of the colonies to the British Monarch. They began ignoring the Kings Mark and harvesting these premier trees for them selves and using it for their own needs, which were usually for building structures instead of supporting the British monarchy and its Navy. It became more and more apparent to the British they were fighting a losing battle as the trees mysteriously disappeared and the New England forests became devoid of the tallest and widest white pine trees.

And now comes the part we are slightly familiar with. The King decided to tax the colonists on the width of the boards in their homes…with a caveat. The Kings men inspecting the homes for board width(s) were not allowed to go beyond the first floor of the home or structure. The colonists (not being dumb) then proceeded to use all the “best wood” or widest boards on the second & third floors. Hence, many of our second and third floors in our oldest homes in New England have incredibly wide floor boards. A little repeated fact is that this floor tax caused The Pine Tree Riot which was a precursor to the Boston Tea Party!

4 Reasons to Choose an FHA Mortgage

First a little background about FHA (Federal Housing Administration) mortgages. These mortgages were initiated by the US government in the 1930′s to allow the first time home buyer to purchase a home, despite some high risk factors when compared to other borrowers. FHA loans have evolved with the times and have consistently serviced the consumers that no other lending institution was willing to risk their money on. However, no matter what actually did occur with these so-called “high risk borrowers” the FHA mortgages were and are guaranteed to be paid by the US government if the consumer stops paying the mortgage. For instance, if a homeowner were to default on their FHA loan, the lender would not incur a loss because the US Government would repay the loan to the lender.

There are four great real life reasons to choose an FHA loan:

1 If your credit score is between 620-640. Todays lenders have drawn the line at anything below a 640 credit score.

2  An FHA mortgage only requires 3.5% downpayment.

3  If your down payment is a gift.

4 If one has undergone a bankruptcy or foreclosure.

One or more of these reasons could prevent a first time home buyer from getting a mortgage with a traditional lender. However, the FHA allows more than one of these situations to exist simultaneously with a borrower.

OK, there has to be a catch….is it the rate? No it isn’t the rate, that is still comparable to other 30 year conventional loans. It is in the form of the insurance. It is called the Mortgage Insurance Premium (MIP), paid in two ways:

1.  Upfront: It is equal to 1.15% of the total loan, paid at closing and frequently rolled into the total amount of the loan. For instance if you borrow $100,000, MIP would equal $1150 and you would be borrowing $101,500 (if not paid at closing).

2.  Monthly: There is also a monthly fee that lasts for 5 years no matter how much equity you have in your home. It is calculated to be 1.15% spread out into monthly payments. For instance with the $100,000 loan example above it would be $101,150 * 1.15 / 12 (annual payments) = $96.95 per month mortgage insurance. If for instance, one has over 20% equity in the home after 5 years, the MIP would end.

Would I get a FHA mortgage if I had other mortgage options? Probably not, but I would choose home ownership over the alternative hands down, if my budget permitted it. And yes, I felt this way before I became a real estate professional, before the mortgage interest rates were at an all time low and before home prices shifted downward by 30% off of the peaks of 2005-2006….!

just in case you are wondering

Dentil Moulding 4 Laurel St., Beverly MA 01915

One of the classic styles in building mouldings is frequently miscalled  ”dental”.  It is relatively easy to understand why …because it looks like its name (toothlike), but it is spelled like its’ latin roots. Den is “tooth” in latin and the moulding is characterized by a square mold with spaces in between them, similar  to a characterization of teeth. Usually found below a cornice, it is considered a classic style in architecture and is documented on the grave of Darius from 500BC! Having long admired the classic architecture I am thrilled to highlight a new listing with exquisite dentil moulding in the living and dining rooms. The picture above, highlights this style found at 4 Laurel St. Beverly MA. The picture belows shows off more of the architectural detail found in this pretty house including unique built ins.

Dentil moulding under the cornice