Leo Foussekis, Esq, a.k.a. @thegreeklawyer - Friday Real Estate+ Chat Ep. 6

We are at Leo's sassy new office in Dedham, MA talking #MarketTrends, #NARSettlement etc Comment with any questions under one of the replays and we'll get back to you or reach out to us directly: Leo: @TheGreekLawyer | https://www.leoatlaw.com Karina: @MyBostonRealtorKarina | https://linktr.ee/mybostonrealtorkarina Dmitriy: @Dmitriy.Realtor | https://tiny.cc/Dmitriy Replays: https://www.instagram.com/p/C5Y0_9cx1qw https://www.youtube.com/live/KoeiHfQytFE?si=s7ROsoODJrLFhJy0 https://fb.watch/rjVon_DSu6/ https://www.linkedin.com/video/live/urn:li:ugcPost:7182053565387935744/ #RealEstate #RealEstateChat #Homebuyer #HomebuyerTips #BuyerTips #RealEstateAttorney #LeoFoussekis #DmitriyDribinskiy #KarinaDemurchyan #mybostonrealtorkarina #realbroker #RealEstate #massachusettsrealestate #MassachusettsLiving

MORE

HOW DO I PRICE MY PROPERTY?

There are generally three things that can happen with pricing a home: 1. Under-pricing 2. Pricing it "Right" or 3. Overpricing With prices climbing up during most active seasons due to demand surpassing supply - traditionally spring and fall in dynamic markets like Boston and Greater Boston - sometimes there's a fine line between all three of these. Always remember that pricing a property is an invitation to the marketplace. It's an opinion of value ultimately to be corrected upward or downward as the real market value will get defined through actual offers from qualified buyers. Asking Price vs. Fair Market Value: Asking price = Owner’s and Agent’s educated OPINION on what current market buyers are willing to pay for it. Fair Market Value = Actual price buyers are willing to pay evidenced by concrete and qualified offers. Below is a short version of pricing fundamentals overview and why overpricing makes less sense generally, unless a seller is not in the rush to sell, and maybe just looking to test the market rather than sell as efficiently as possible.  Firstly, I would recommend requesting a comparative market analysis (CMA) and doing a detailed review of the current and recent prices of comparable properties in close proximity to yours. Your Realtor can create and review a CMA with you to help understand the competitive landscape and determine the appropriate sale price range. To price your property “right”, I recommend the following steps: Review 3-9 months worth of market activity with your agent from several angles including: Price per square foot range for Sold, Under Agreement and Active for sale properties comparable in age, size, condition and location Review "pricing pyramid" exhibit below to understand the basic psychology of the buyers' behavior I would also ask your Realtor to sign you up for MLS listings as if you were shopping for a houselike yours. Watching the market in the pre-listing launch period of say two weeks of going live on MLS should give you a great perspective on what else is available to buyers and how they're likely going to perceive the value of your property in the context of your competition.      When someone is selling a renovated, move-in ready or even luxury property, sometimes they may think pricing it above their fair market value range should only bring "serious buyers" and give them a cushion to negotiate. The reality usually is that at 10%-15% above "fair market value range" you may hurt the urgency to visit the property and take action. Buyers will often say something like "let's wait till the price comes down", which is an awful strategy for buyers because as soon as the price does thereotically come down, they'll be competing with more buyers, but if they don't have a great advisor on their team, they sometimes miss this point. If it's a very unique, ultra luxury property with great marketing, including beautiful photos & video, 3D walkthrough, personalized website etc, it may attract virtual high net worth individuals from out-of-state or even foreign buyers, but that's a relatively tiny segment of the real estate market. As a general rule of thumb, we want to build anticipation and create a sense of urgency for maximum exposure as soon as possible when the property goes live on MLS to gauge true current demand at this price point. Even very financially comfortable buyers are often not interested in "overpaying", so pricing your property attractively, i.e. at or slightly below market value, will: compel majority of potential buyers to rush to see it and take action minimize price objections let buyers recognize value in the context of other available properties and understand they will probably need to compete for it and take action asap   If buyers see better or similar options for lower prices than your asking price, they'll deduce that your property is possibly overpriced. They may also get concerned appraisal may not come at the asking price, which may cause an issue for most buyers who would be financing their purchase. If, on the other hand, buyers see a fair price and recognize good value, they're more likely to make an offer in a multi-offer situation and be willing to step up well asking price to get the property they like. All this applies to properties in every price niche, but it's most frequently luxury properties that may seem overpriced as they spend more time on the market waiting for the right buyer. This is something luxury home sellers are often prepared for and it’s not necessarily a big issue, but if there's an urgency to sell, choosing the “right” price and marketing approach, including a strong pre-launch, will play a key role in how quickly the house attracts its new owner. Pricing a property is a bit of an art form - a mix of financial analysis, common sense and intuition, but ultimately the so-called pricing formula’s main components are: LOCATION + SIZE + CONDITION + FEATURES (Tangible & Intangible) linktr.ee/MyBostonRealto…\n\n#homebuyingtips #BostonHomes #BostonRealEstate #RealEstate #MyBostonRealtorKarina #REMAX ","username":"MyRealtorKarina","name":"KarinaDemurchyan, a.k.a. #MyBostonRealtorKarina","date":"Tue Sep 20 01:36:06 +0000 2022","photos":[{"img_url":"https://pbs.substack.com/media/FdD-oEQXkAALUky.jpg","link_url":"https://t.co/MzG5fobyFx","alt_text":null}],"quoted_tweet":{},"retweet_count":0,"like_count":0,"expanded_url":{},"video_url":null,"belowTheFold":true}">       Let me know if you’d like to discuss your home’s value and feel free to sign up for a monthly What Your Home Is Worth report.   Karina Demurchyan Realtor® (est. 2008), Assoc. Broker (9555596) CLHMS, ABR, CDPE, GREEN, ASP Real Broker MA, LLC (423031) 90 Canal St, Boston 02114 617-549-5503 / MyBostonRealtorKarina@gmail.com linktr.ee/MyBostonRealtorKarina Certifications:
 Certified Luxury Home Marketing Specialist (CLHMS)
; Accredited Buyer Representative (ABR)
; Certified Distressed Property Expert (CDPE)
; Accredited Staging Professional (ASP)
; New Homes Specialist
; GREEN. 

Memberships:
 Greater Boston Board of REALTORS® (GBREB)
; Massachusetts Association of REALTORS® (MAR)
; National Association of REALTORS® (NAR). Service Areas: Acton, Arlington, Ashland, Bedford, Bellingham, Belmont, Beverly, Bolton, Boston, Boxborough, Braintree, Brookline, Burlington, Cambridge, Canton, Carlisle, Chelsea, Cohasset, Concord, Danvers, Dedham, Dover, Duxbury, Essex, Everett, Foxborough, Framingham, Franklin, Gloucester, Hamilton, Hanover, Hingham, Holbrook, Holliston, Hopkinton, Hudson, Hull, Ipswich, Lexington, Lincoln, Littleton, Lynn, Lynnfield, Malden, Manchester-by-the-Sea, Marblehead, Marlborough, Marshfield, Maynard, Medfield, Medford, Medway, Melrose, Middleton, Milford, Millis, Milton, Nahant, Natick, Needham, Newton, Norfolk, North Reading, Norwell, Norwood, Peabody, Pembroke, Quincy, Randolph, Reading, Revere, Rockland, Rockport, Salem, Saugus, Scituate, Sharon, Sherborn, Somerville, Southborough, Stoneham, Stoughton, Stow, Sudbury, Swampscott, Topsfield, Wakefield, Walpole, Waltham, Watertown, Wayland, Wellesley, Wenham, Weston, Westwood, Weymouth, Wilmington, Winchester, Winthrop, Woburn, Wrentham; occasionally Worcester & Lowell areas, as well as Cape Cod. #BostonRealEstate #Realtor #RealEstateAgent #RealEstate #Newton #Boston #GreaterBoston #BuyHome #SellHome #Invest #REI #realestateinvesting #realestateinvestor #realestateinvestors #KarinaDemurchyan #MyBostonRealtorKarina #Connector #HaPPyBeginnings #Relocation #ISpeakRussian #Риэлтор #Бостон #ЯГоворюПоРусски #КаринаДемурчян #МойРиэлторКарина

MORE

WHAT IS SELLER FINANCING?

A seller may choose to act as a lender to finance a real estate transaction. This may involve taking back a second note, or even financing the entire purchase if the Seller owns the home free and clear. Sellers would usually do this when a buyer has difficulty qualifying for a conventional loan, meeting the purchase price. It could also be because Buyer prefers to bypass the banks altogether. Seller financing differs from a traditional loan because Seller does not give Buyer cash to close the purchase as would a lender. Seller essentially extends a credit against the purchase price of the home while the Buyer executes a promissory note and trust deed in Seller's favor. If the property still has a current outstanding mortgage balance, these special circumstances must be acceptable to the lender with the first mortgage position on the property. Title or escrow company would prepare necessary paperwork after the terms are worked out between the Buyer and Seller. As a Seller considering such scenario you should thoroughly evaluate the creditworthiness of the Buyer first. Ideally, Buyer would be pre-approved by a lender and present a pre-approval letter with their offer. If they don’t qualify for a loan from a lender, you may want to understand the reasoning behind it. Fear of default makes many Sellers reluctant to take back a second note, however on the upside Seller financing can bring a higher sale price and expedite the sale. See the Internal Revenue Service website for a copy of its Publication 537, "Installment Sales." Who Sets The Rates For Seller Financing? The interest rate on an owner-carried loan is negotiable. You or your Realtor can check with a lender / mortgage broker to determine the current rates on institutional first or second loans. Seller financing typically costs less than conventional financing because Sellers don't charge typical loan fees. Interest rates on an owner-carried loan will also be influenced by current Treasury bill and certificate of deposit (CD) rates. Sellers usually aren't willing to carry a loan for a lower return than they would earn if their money was invested elsewhere, so you may want to also consult your financial advisor if you’re working with one. What Are The Benefits Of Seller Financing? Seller financing offers tax breaks for Sellers and alternative financing for Buyers who can't qualify for conventional loans or prefer not to deal with a bank. If you are a Seller, the risks you face are the same as those facing any lender: Is the borrower a good credit risk? Will the property hold enough value over time to allow for the repayment of all loans made against it? You should run a full credit check on the borrower, require hazard insurance on the property, and include a due-on-sale clause. There also are financing, disclosure, and repayment-term requirements that need to be met. I recommend you consult and work closely with a trusted real estate attorney (let me know if you need a recommendation) with experience of dealing with creative financing, including seller financing, when putting together this kind of transaction. You may also want to work with an experienced transaction coordinator (TC) well-versed in creative transaction (let me know if you need a recommendation).     Read more: https://www.biggerpockets.com/blog/creative-financing Creative Finance with Pace Morby https://www.facebook.com/groups/217210172609089 Creative Real Estate Finance✌🏼New England https://www.facebook.com/groups/1004607944167251   If you would like to explore creative financing options as a Buyer or Seller, you can save my digital card and book a 30min consultation at your convenience to discuss and strategize on your plans.   Karina Demurchyan Realtor® (est. 2008), Assoc. Broker (9555596) CLHMS, ABR, CDPE, GREEN, ASP Real Broker MA, LLC (423031) 90 Canal St, Boston 02114 617-549-5503 / MyBostonRealtorKarina@gmail.com linktr.ee/MyBostonRealtorKarina   Certifications:
 Certified Luxury Home Marketing Specialist (CLHMS)
; Accredited Buyer Representative (ABR)
; Certified Distressed Property Expert (CDPE)
; Accredited Staging Professional (ASP)
; New Homes Specialist
; GREEN. 

Memberships:
 Greater Boston Board of REALTORS® (GBREB)
; Massachusetts Association of REALTORS® (MAR)
; National Association of REALTORS® (NAR). Service Areas: Acton, Arlington, Ashland, Bedford, Bellingham, Belmont, Beverly, Bolton, Boston, Boxborough, Braintree, Brookline, Burlington, Cambridge, Canton, Carlisle, Chelsea, Cohasset, Concord, Danvers, Dedham, Dover, Duxbury, Essex, Everett, Foxborough, Framingham, Franklin, Gloucester, Hamilton, Hanover, Hingham, Holbrook, Holliston, Hopkinton, Hudson, Hull, Ipswich, Lexington, Lincoln, Littleton, Lynn, Lynnfield, Malden, Manchester-by-the-Sea, Marblehead, Marlborough, Marshfield, Maynard, Medfield, Medford, Medway, Melrose, Middleton, Milford, Millis, Milton, Nahant, Natick, Needham, Newton, Norfolk, North Reading, Norwell, Norwood, Peabody, Pembroke, Quincy, Randolph, Reading, Revere, Rockland, Rockport, Salem, Saugus, Scituate, Sharon, Sherborn, Somerville, Southborough, Stoneham, Stoughton, Stow, Sudbury, Swampscott, Topsfield, Wakefield, Walpole, Waltham, Watertown, Wayland, Wellesley, Wenham, Weston, Westwood, Weymouth, Wilmington, Winchester, Winthrop, Woburn, Wrentham; occasionally Worcester & Lowell areas, as well as Cape Cod. #BostonRealEstate #Realtor #RealEstateAgent #RealEstate #Newton #Boston #GreaterBoston #BuyHome #SellHome #Invest #REI #realestateinvesting #realestateinvestor #realestateinvestors #KarinaDemurchyan #MyBostonRealtorKarina #Connector #HaPPyBeginnings #Relocation #ISpeakRussian #Риэлтор #Бостон #ЯГоворюПоРусски #КаринаДемурчян #МойРиэлторКарина

MORE

HOW IS THE MARKET?

You guessed it - IT DEPENDS. Where are you looking? What type of property? What is your motivation and objectives? Market is always shifting, but we can take a look at its current and past dynamics through various reports on MLS and other tools when you schedule your free Real Estate chat with me @ https://calendly.com/mybostonrealtorkarina. There is surely much pent up demand in the marketplace after a pause due to increased interest rates in 2023. As we're entering the 2024 spring market, properties are being quickly absorbed by buyers and investors. Lenders think there will be mortgage rate adjustments around the end of the spring, which will allow homeowners to refinance later this year or next year when the interest rates are likely to improve even more. Here's a Feb 8, 2024 update from lender Shant Banosian at Guaranteed Rate https://www.instagram.com/p/C3F46XIsczU. You can save my digital card and book a 30min consultation at your convenience to discuss and strategize on your plans. Karina Demurchyan Realtor® (est. 2008), Assoc. Broker (9555596) CLHMS, ABR, CDPE, GREEN, ASP Real Broker MA, LLC (423031) 90 Canal St, Boston 02114 617-549-5503 / MyBostonRealtorKarina@gmail.com KarinaDemurchyan.com linktr.ee/MyBostonRealtorKarina Certifications:
 Certified Luxury Home Marketing Specialist (CLHMS)
; Accredited Buyer Representative (ABR)
; Certified Distressed Property Expert (CDPE)
; Accredited Staging Professional (ASP)
; New Homes Specialist
; GREEN. 

Memberships:
 Greater Boston Board of REALTORS® (GBREB)
; Massachusetts Association of REALTORS® (MAR)
; National Association of REALTORS® (NAR). Service Areas: Acton, Arlington, Ashland, Bedford, Bellingham, Belmont, Beverly, Bolton, Boston, Boxborough, Braintree, Brookline, Burlington, Cambridge, Canton, Carlisle, Chelsea, Cohasset, Concord, Danvers, Dedham, Dover, Duxbury, Essex, Everett, Foxborough, Framingham, Franklin, Gloucester, Hamilton, Hanover, Hingham, Holbrook, Holliston, Hopkinton, Hudson, Hull, Ipswich, Lexington, Lincoln, Littleton, Lynn, Lynnfield, Malden, Manchester-by-the-Sea, Marblehead, Marlborough, Marshfield, Maynard, Medfield, Medford, Medway, Melrose, Middleton, Milford, Millis, Milton, Nahant, Natick, Needham, Newton, Norfolk, North Reading, Norwell, Norwood, Peabody, Pembroke, Quincy, Randolph, Reading, Revere, Rockland, Rockport, Salem, Saugus, Scituate, Sharon, Sherborn, Somerville, Southborough, Stoneham, Stoughton, Stow, Sudbury, Swampscott, Topsfield, Wakefield, Walpole, Waltham, Watertown, Wayland, Wellesley, Wenham, Weston, Westwood, Weymouth, Wilmington, Winchester, Winthrop, Woburn, Wrentham; occasionally Worcester & Lowell areas, as well as Cape Cod. #BostonRealEstate #Realtor #RealEstateAgent #RealEstate #Newton #Boston #GreaterBoston #BuyHome #SellHome #Invest #REI #realestateinvesting #realestateinvestor #realestateinvestors #KarinaDemurchyan #MyBostonRealtorKarina #Connector #HaPPyBeginnings #Relocation #ISpeakRussian #Риэлтор #Бостон #ЯГоворюПоРусски #КаринаДемурчян #МойРиэлторКарина

MORE