Lawrence Yun, NAR chief economist, said a weakening was inevitable. “Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” he said. “December’s housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed.”

Worcester County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Nov 2008	520	271	357	147	$244,043
Nov 2007	n/a	n/a	424	159	$307,099

Hampden  County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Nov 2008	264	127	154	118	$182,195
Nov 2007	n/a	n/a	239	116	$206,074

Hampshire County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Nov 2008	63	33	43	133	$281,124
Nov 2007	n/a	n/a	75	110	$295,648

•                          
  Extending the $7,500 tax credit to all home buyers and eliminating the repayment requirement             
               
• Making the 2008 FHA and conventional loan limits permanent
  
  
• Putting the Troubled Asset Relief Program back on track 
                           
• Permanently barring large banks and banking conglomerates from engaging in real estate brokerage and management.

Worcester County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Oct 2008	707	246	433	148	$246,008
Oct 2007	n/a	n/a	419	142	$302,512

Hampden  County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Oct 2008	348	137	263	121	$199,813
Oct 2007	n/a	n/a	266	104	$223,993

Hampshire County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Oct 2008	92	23	70	111	$270,547
Oct 2007	n/a	n/a	86	162	$294,909

Condominiums and townhouses offer an affordable option to single-family homes when buying Western MA real estate, and they’re ideal for those who appreciate a maintenance-free lifestyle. But before you buy, make sure you do your legwork. These are some of the important elements to consider:

• Storage. Some condos have storage lockers, but usually there are no attics or basements to hold extra belongings.
• Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain out doors, this may not be a good fit. However, if you dread yard work, this may be the perfect option for you.
• Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.
• Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home — good news if you like to travel.
• Security. Keyed entries and even doormen are common in many condos. You’re also closer to other people in case of an emergency.
• Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees decided by the condo board, whether or not you’re interested in the amenity.
• Resale. The ease of selling your unit may be dependent on what else is for sale in your building, since units are usually fairly similar.
• Condo rules. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets, or don’t allow owners to rent out their units. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.
• Neighbors. You’re much closer to your neighbors in a condo or town home. If possible, try to meet your closest prospective neighbors.

That is the question all Western MA homeowners should ask themselves when they consider selling their home. And the answer is YES!

The first item on the fix-it list: clear the clutter! If your closets, attic, basement, garage, and other storage areas appear neat, half-full and organized, your house will seem to have more storage space. To accomplish the clutter - clearing task, empty the house, hold a garage sale, and use the profits to help offset the next set of fix-it priorities.

Check your house for “curb appeal”. The exterior is the first impression a prospective buyer has of your home. Make it as inviting as you can. Think of it as outside decorating. Clean (or paint, if necessary) the exterior, re-sod brown spots and crab grass, mow the lawn, pull weeds, remove dead trees or plants, and trim the shrubs.

Flowers give warmth and personality to a home. Plant them tastefully in pots or beds at the entrance, on decks and around patios. If it isn’t flower season, at least clean the beds, remove the dead leaves, and cover the ground with fresh wood chips or other clean looking mulch.

If you have a limited budget, make the most of it. Put the money where it is most obviously needed and the return the greatest and most visible.

Fix Little Things

Take care of the little obvious things: fix leaking faucets, stop running toilets, replace broken windows, kill pet or mildew odors, repair holes in screens, remove mildew from tile, and re-caulk around bathtubs and sinks. Walk around; look at your house with a prospective buyer’s eyes. Small things tell buyers whether or not a house has been maintained. 

Paint it! 

A coat of light-colored, neutral paint–white or off-white–will make your home’s interior look crisper, cleaner, and also larger. Many buyers may not be able to imagine their sofa in your decor. White interiors work for the greatest number of people without their having to redecorate immediately. If you just moved, would you want to redo every room?

Your Carpeting

If the carpet is in reasonable condition, have it shampooed. If it is worn, threadbare or a non-neutral color, consider replacing it with beige or gray. You do not need to purchase the best quality money can buy. Lifetime wear is not required. You want it to look great now. Neutral walls and carpet do not offend anyone. Almost all furnishings look good with them. Rental property managers know this and have been doing it for years.

Professional Inspection

Consider having your house inspected by qualified inspector. Safety- and health-related items, such as radon and electrical problems could kill a sale if not properly attended to. It is much better to fix these items on your own time schedule and financial terms than hurriedly during a contract negotiation. Roof leaks, even if inactive, are also deal breakers.

What else do you fix amongst the inspector’s flagged items? Unless you can realistically get money back, fix only the problems with major systems. You want to keep your home’s selling price as low as possible to increase the pool of buyers.

Do not undertake any major remodeling in preparation for sale. It places more limitations on the size of your buyer pool. Tastes vary, and some people will dislike the results of your efforts. You will have to raise your selling price to reflect your fix-up investment, thereby pricing your home out of the range of other potential buyers.

A neutral color scheme in a house that sparkles brings you the highest return in the shortest time. 

Learn more about Western MA real estate at ShannonDonohueHomes.com or give us a call, 413-519-2676.

Search all Western MA homes for sale.

Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors^®.

Worcester County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Sept 2008	862	258	451	150	$252,937
Sept 2007	n/a	n/a	444	145	$296,177

Hampden  County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Sept 2008	437	182	228	121	$198,889
Sept 2007	n/a	n/a	277	108	$215,618

Hampshire County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
Sept 2008	117	37	78	120	$250,181
Sept 2007	n/a	n/a	91	120	$275,142

Worcester County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
August 2008	774	292	557	143	$278,251
August 2007	n/a	n/a	644	134	$328,589

Hampden  County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
August 2008	369	172	259	119	$202,979
August 2007	n/a	n/a	315	100	$230,499

Hampshire County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
July 2008	119	53	107	136	$294,754
July 2007	n/a	n/a	127	131	$314,145

Before You Buy
If you already know you will rent your vacation home, consider these questions as you look at properties:

Is there a rental market in the area?
What is the average rent that your neighbors receive?
If you are looking in a development, are there any by-laws which restrict your rental capabilities?
Is this a seasonal area or year-round location?

Worcester County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
July 2008	896	293	496	149	$285,378
July 2007	n/a	n/a	583	144	$335,710

Hampden  County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
July 2008	416	151	284	129	$215,459
July 2007	n/a	n/a	332	96	$222,732

Hampshire County	Active Listings	Pending Sales	Sold Listings	Average DOM	Average Sale Price
July 2008	134	50	98	110	$301,041
July 2007	n/a	n/a	127	118	$304,273

President Bush signed into law this week The Housing and Economic Recovery Act. This is the most sweeping change to housing reform since the New Deal of 1934. It is designed to assist more Americans invest in home ownership and shore up the faltering housing and mortgage markets. Like any legislation, it comes with the good and the bad. I encourage you to write your Congressmen to see if we can get legislation to revoke some of the bad.  

• GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  View 2009 FHA and GSE loan limit estimates (PDF)

• FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The down payment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
  View 2009 FHA and GSE loan limit estimates (PDF)
  FHA Reform Chart (PDF)

• Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
  First-time homebuyer tax credit chart
  Frequently asked questions about the first-time homebuyer tax credit

• FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
  FHA Foreclosure Rescue Chart

• Seller-funded down payment assistance programs – codifies existing FHA proposal to prohibit the use of down payment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
  More about the seller-funded down payment assistance provision
  Tips to finding down payment assistance programs (PDF)

• VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

• Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

• GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

• Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

• National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

• CDBG Funding – Provides $4billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
  More about the CDBG funding provision

• LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

• Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

In the current Western MA real estate market, there has been a lot of buzz around “short sales.” What is a short sale, exactly? A short sale is when a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of a property by a financially distressed owner – in essence, the lender forgives the outstanding balance of the loan.

1. Identify potential short sales
2. View the property
3. Do your research
4. Find all liens and mortgages
5. Figure out the financing
6. Contact the lender
7. Complete the lender’s short sale application
8. Assemble the proposal
9. Negotiate
10. Close the deal