As of February 1, 2012 there were 975 single family residential homes on the market in the Lakes Region communities covered in this repor

Home is all about the holidays and having friends and family over for parties and celebrations. We have Thanksgiving, Christmas, New Years, and the 4th of July. We also have Super Bowl Sunday which, to many, is probably the biggest non-holiday house party of the year. I think Super Bowl Sunday should be changed to Super Bowl Monday, call it a holiday like it should be, and give people the day off. Production is way off on Monday anyway as hung over employees just pretend to be working. Of course, the game time would have to be changed to noon on Monday or people won’t work on Tuesday and we are right back where we started.

People have always gathered to celebrate big sporting events. I think it goes back to prehistoric times when the cavemen had a successful hunt. They all went into their caves to have a feast, drink fermented fruit juice, and draw pictures of the hunt on the walls. These were the first known flatscreens. Humanity progressed and in the Roman times spectators watched teams of gladiators dismember each other from skyboxes in the Coliseum in Rome. I’m sure there were just as many taverns around the stadiums back then as there are today. These establishments were for those who couldn’t afford the 87 Denarius Roman silver coins that it would cost to buy the equivalent of a $2,500 Super Bowl ticket. Many modern sport fans that don’t make it in person to the big game gather in sports bars to watch the Super Bowl. Fans like to be with other fans and to be surrounded by the trappings of sports; the memorabilia, pictures of stars, pennants, banners, and big screen TV’s. It also helps that the pubs have food and drink which are the key ingredients for any successful Super Bowl party.

Other fans like to gather at their homes and have Super Bowl Parties. Drawing from their prehistoric past and the sports bar, many avid sports fans demand that their home have a properly outfitted Man Cave for these special events. But the Man Cave has become so much more than just a place to gather and pay tribute to sports. It is a retreat to which today’s hunter and breadwinner goes to unwind and gather strength to carry on the battle the next day. While the lady of the home requires a nice kitchen, a walk in closet, and a Jacuzzi tub, the warrior/sports fan of the home could care less. The Man Cave is paramount in his mind. This is an important observation if you are selling a home in today’s market. Do you have an existing Man Cave or is your home Man Caveable? It could make a difference in selling or not selling your home.

I find it my duty to expose the best of the Man Caves on the market to the manly men out there that might be looking to upgrade to something more befitting their station in life. My first selection is at 141 Riverwood Drive in New Hampton. This cave is located in a 6,289 square foot, thirteen room, four bedroom, five bath super high quality, custom built home that would impress even Tom Brady. It has everything a Caveman’s wife would want; gourmet kitchen, granite counters, an open floor plan, a great room with a huge field stone fireplace, a first floor master suite, formal dining room, beautiful woodwork, and exquisite craftsmanship throughout. Who cares! The Man Cave here is over the three car garage and provides ample space for the largest and most intense sport watching get-togethers you can imagine. It features large comfortable leather chairs and couches, a massive widescreen TV, a fully stocked bar/kitchen area with granite counter tops, a popcorn machine, and pool table. A three quarter bath is adjacent so you don’t have to run downstairs at the commercial break. This property is offered at $649,000 and is currently assessed at $761,050. You won’t find a better equipped Cave, plus you get an additional 5,000 plus square feet of space for the missus.

Another truly fabulous Man Cave property I have seen recently is at 109 Hickory Stick Lane in Laconia. This Man Cave is located in the lower level (feels more natural) of a 3,553 square foot, four bed, four bath, high quality home built in 2007 in Country Club Shores. This home also has all the bells and whistles for the ladies including a well appointed kitchen, first floor master suite, tile, granite, hardwood floors, and breakfast nook. The lower level Man Cave is truly great; cork flooring, widescreen, built in Bose surround sound, pool table, and fully equipped bar with a kegerator (beer tap-very important). There’s a separate workout room with an exercise machine that looks like a piece of art (it’s too nice to hang your clothes on it though), and a bedroom in case you can’t make it back upstairs. The downstairs bathroom is what really defines this space. There is a sink and a urinal only—a true Man Bath. This home is manly priced at only $399,900. If you are a true sports fan looking for a new home, you could be there for Super Bowl XLVII. Call me…

Nothing sells products (including houses) like commercials. We are inundated with them on television. But TV commercials are extremely expensive to produce and to broadcast. Videos for the internet vary from amateurish to professional grade and can be produced either inexpensively or with a budget the size of Ben Hur depending on how lavish one wants it to be. The truth is, however, that really good quality videos can be produced relatively inexpensively.

Here are some of the best real estate videos out there on the world wide web:

How about something funny:

Here are several videos that I have produced for my clients:

See more of these videos at http://www.sellersownwords.com/ and see how they can help you sell your home!

The successful sale of any home in today’s somewhat trying real estate market can be broken down into distinct components that are inexorably linked together; (1) marketing the property, (2) the available pool of willing buyers, and (3) price.

It is logical that if you have a property for sale and you market it correctly, at the correct price, that you will eventually get a buyer. That’s the way it always has worked. So what has changed? Well for one thing, there are a whole lot fewer buyers in the swimming pool today. That’s no secret. So what do you do to increase your odds of finding a buyer. The answer really lies with the proper marketing of the home and the price it is offered at.

Buyers don’t generally fall from the sky, although sometimes it appears to be that way. Some have called it divine intervention when one miraculously appears. In reality, buyers are found through the marketing of a home no matter how ineptly or professionally it is done. There was a time when you could put a handmade cardboard sign on your lawn and you could sell the place over the weekend. Those times are long gone and may never return. Ineptness doesn’t work very well anymore unless you put an unbelievably low price on a property. Selling a home today has gotten very competitive and complicated.

The problem is that most sellers don’t know, or understand, how homes are marketed to begin with, let alone which methods are effective. Understanding exactly what your agency is going to do for you and comparing their program to others is very important. It is impossible to assess whether a buyer exists for your home unless you know for sure that your property is being seen by EVERYONE THAT MIGHT BE LOOKING FOR A HOME. Not only that, it must be marketed correctly and in the most positive and professional way possible. Properties that are promoted with a few fuzzy pictures, poor lighting, and even poorer composition combined with vague or incomplete descriptions of the property itself won’t get you far. If your agent relies on local newspaper ads as his primary print advertising component you should plan on living in your home a long, long time. Today you need professional grade photography, full color promotional material, national internet exposure on as many realty sites as possible, social media exposure, color print ads, video, and more. Reports can be provided to home sellers showing the number of times buyers see their home on the internet. So if plenty of people are looking at a property on line but not calling to see it in person, what should the seller conclude? Sellers also need to be very conscious of feedback from agents and buyers that have seen their property.

That being said, if you feel confident that your property is being seen by EVERONE THAT MIGHT BE LOOKING FOR A HOME, and no buyer comes forth to even make an offer, you can probably safely conclude that your price is very likely too high for the current market. If so, it is time to bite the proverbial bullet, swallow your pride, and reduce the price of your home to where it will attract an offer. Generally speaking, there is a buyer for every home at the right price.

Here’s something to think about on pricing. Last year, out of the 773 homes that sold, 50 sold in a week or less. They sold at 97.5% of the original asking price and at an average of 85% of assessed value (based on those providing tax assessments in the MLS). The 61 homes that sold in 8 to 14 days were at 95% of the original asking price and at an average of 88% of assessed value. The 78 homes that sold in 15 to 31 days sold at 94% of the original asking price and 90% of assessed value. It is no surprise that many sales took a lot longer. There were 398 properties that were on the market over 90 days before finding a buyer. These properties sold at 90% of the original list price and at 91% of assessed value. So it appears the better the price, the quicker the sale. You might also argue that you can get more for a property if you list high and play the “let’s negotiate” game. There were also 1,062 properties that had their listings expire without selling in 2011—I wonder if they were all playing that game?

For the year there were 773 residential properties sold at an average price of $306,460 (which was 92% of the average asking price at the time of the sale) and these homes were on the market an average of 147 days. Incredibly, in 2010 there were also 773 sales at an average of $320,898 (which was also 92% of the average asking price) and those homes were on the market for 144 days! Pretty amazing and consistent!

So what price ranges were selling last year and how many days on the market did it take to sell a house? Just over 50% of the homes that sold in 2011 were under $200,000. Homes over $400,000 comprised 18.5% of the total sales and most of them were waterfront properties. As you can see from the following chart, the higher the price range, the longer it takes to sell. Also, remember the days on market shown here only represents the amount of time the home has been listed with the agency that sold it. Homes are often listed multiple times before they sell, so the average days on market is actually higher. But just to show you that you can sell your home in this market 190 of the 773 homes that sold in 2011 went under agreement in a month or less, 112 of those went under agreement in two weeks or less, and 51 were under contract in a week or less. 

The following chart shows the average sales prices in each town since 2006 and the percentage change in pricing since the overall peak in 2007. There were seven communities in 2011 where the average sales price when up compared to the average posted in 2010, but the average price for all towns combined dropped $320,898 in 2011 to $306,460. Most towns are still well off the highs of 2007 except for Moultonborough and New Hampton.

The median sales price also topped out in 2007:

So all in all, residential sales in 2011 were pretty much flat compare to 2010 with a slight drop in the average sales price. Hopefully, the strong finish in December will continue throughout the new year!

The least expensive sale in December was at 65 Cow Island  in Tuftonboro. This classic Lake Winnipesaukee summer camp has the desired knotty pine interior, wood floors, a first floor bedroom, two large bunk rooms upstairs, a wood stove, and the requisite screened porch where you can sit and tell lies all night. The camp sits on a .79 acre level lot with 150’ of shallow sand bottom frontage and crystal clear water. This property was offered at $324,500 and sold for $282,000 after 190 days on the market. This property is currently assessed for $352,900 so I’d say you have a pretty happy camper there.

Out at 62 Varney Point Left  Gilford there’s a new owner that will be tearing down the existing structure to make way for her dream home. The existing home, which was built in 1930 and remodeled in 1988, was not quite to her tastes. But the fantastic westerly views and 115’ of shore front which features a 24’ x 32’ boathouse, attached dock, and breakwater was. The property was offered at $1.195 million and sold for $925,000 after 121 days on the market. That’s just over the new assessed value of $896,540. It will be intersting to see what she builds there…

The largest sale of the month was at 97 Pleasant Street in Meredith. This 1960’s vintage, three bed, four bath, 4,000 square foot home has been nicely updated throughout. It features a first floor master, eat in kitchen, double sided fireplace, recreation room, screened porch, and a three car garage. It sits on a .48 acre lot with 136’ of frontage, dock, and has great views down Meredith Bay. This home was first listed in 2006 at $1.75 million, re-listed in February 2011 for $1.3 million, and sold for $1.1 million which is just under the $1.19 million assessment.

So how did we do for the year on the Big Lake? Pretty darn good, I’d say! The total number of sales were up from 96 in 2010 to 107  in 2011 for an 11.5% increase. However, the average sale price was down below the $1 million mark for the first time since 2003 when it came in at $994,688. The average price is down partially due to some weakening in waterfront prices but also because more lower and fewer higher priced homes sold compared to the prior year. There were 69 properties sold below $1 million last year compared to 52 in 2010. On the high end there were just four sales over $3 million while there were nine in 2010. The total sales volume for waterfronts sold was $106.4 million in 2011 compared to $120.7 million in 2010. The largest sale on the lake for the year was at 31 Wallace Point in Moultonborough at $4.325 million.

There were four sales on Winnisquam last month at an average sale price of $370,250 compared to just one last December. The largest sale for the month was at 264-3 Black Brook Road Road in Sanbornton. This property consists of a three bed, three bath main house, a 1 bedroom guest house, and a three car detached garage on a .65 acre lot with 125’ of frontage. This house was first listed in June of 2009 at $725,000, listed in 2010 for $659,900, and in 2011 for $649,900. After another $20,000 price reduction it sold for $575,000 which is just over the current assessment of $556,000. This brings the total on Winnisquam to 23 sales in 2011 at an average price of $480,536. That’s a 44% increase in total sales from the 16 sales posted in 2010. Just as on Winnipesaukee, the average sale price was down for the year when compared to the prior year’s average of $560,000.

Over on Squam there was just one sale in December and that was the property at 50 Route 113 in Holderness. This is a 1926 vintage, four bed, two bath, 1,600 square foot New Englander on a 1.71 acre lot with 114′ of shore front, sandy beach, and a dock. It was first listed in 2009 for $729,000 and then re-listed this year at $699,000. It was reduced to $499,000 and sold for $450,000. The property is currently assessed at $624,710. Do you see a pattern? There were just seven sales on Golden Pond in 2011 at an average $1.036 million. But that is somewhat better than the five transactions in 2010  although the average sales price was about one half of the $2 million average posted .

We’re hoping that 2012 will be a great year for sales on all the lakes in the area. After all, there’s no place more beautiful and better to live or vacation in than the Lakes Region and right now many people believe there is no place to invest than in lakefront property. If you are considering a waterfront property this may just be one of the best times ever to buy.  So contact your REALTOR® and go take a look. You may just find the home you’ve always dreamed of…

The New Year always seems to start off with a big drop in inventory due to many listing agreements expiring at the end of the year.

With 2012 underway, there appears to be a bit of optimism in the air. Showing activity seems to be up a little after the holidays and we are getting lots of property inquiries. People are out shopping for homes and it feels good. I do think that 2012 is going to be the Year of the Buyer. As I said last week, there is no better time to buy than right now. First of all, buying a home now means you will only have to make eight to ten payments before the world ends on Dec. 21. That leads me to believe that vacation home sales in warm areas will spike shortly. But just in case we are all still here on the 22nd, you will most likely have gotten a property at a greatly reduced price compared to just a few years ago. You will also have a loan with an unbelievably low interest rate around 4%. Remember when we thought a 6% or 7% rate was fantastic?

There were 180 homes listed in the towns in Belknap County (plus Moultonborough) that have an asking price that is less than 90% of the property’s assessed values. Seventy of those homes were priced under 70% of assessed value and some were as low as 30%. On the lower end many were bank owned, but quite a few weren’t. Just because a house is priced under assessed value doesn’t necessarily mean that it is a good deal, but it is a good place to start for the bargain hunters. Here are a few “non-bank” owned homes that would be worth checking out if you are in the market:

Up at 361 Ladd Hill Road in Belmont there’s an open concept, 1,512 square foot, two bedroom ranch built in 1987 on .95 acres. It is priced at $140,000 or 69% of its assessed value of $203,200. A 1,654 square foot, three bedroom ranch built in 2007 on 1.4 acres at 279 Horne Road also in Belmont looks like another possible good deal. This property is a short sale and is on the market for $185,000 which is 71% of the assessed value of $262,700. Over in Center Harbor at 256 Waukewan Road there is a 1,672 square foot, four bedroom, two bath cape built in 1980 on 5.75 acres of land that offers privacy and good upside potential. The property also has an 800 square foot barn, a 1,200 square foot garage/workshop, and an in-ground pool. This property is listed at $199,000 or 62% of assessed value of $318,900. Seems like it could be a good deal. You’ll have to go and check it out.

If you are looking for a Gilford property with some great potential, check out the house at 259 Morrill St. This 1970’s vintage, 2,252 square foot, three bed, three bath cape has large rooms and an open floor plan and sits on a beautiful 7.6 acre lot that has subdivision potential. While the home needs some updating, it is reasonably priced at $219,000 which is 77% of the taxed assessed value of $282,150. For more privacy take a look at the property at 140 Hermit Woods Road in Sanbornton. This 2,369 square foot contemporary was built in 1980 and has three bedrooms, two baths, an open floor plan that features a large living room with cathedral ceilings, loft area, and wood stove/hearth. It sits on a secluded 10.65 acre lot with 100’ of frontage on Hermit Lake. This home is priced at $349,000 which is 64% of the assessed value of $543,900. If a Winnipesaukee waterfront is in your future, you should look at the property at 48 Little Road in Meredith. This 5,827 square foot Adirondack home was built in 1982 and has five beds, six baths, and a separate guest apartment. There’s a three car garage and a two bay boat house to hold all the toys. The home sits on a 2.52 acre lot with 265′of shorefront and crystal clear waters. This property is offered at$1.495 million which is 72% of the assessed value of $2.085 million.

See, you don’t have to be a “one percenter” to get a great deal on real estate and feel like a millionaire. All you need is to get your REALTOR® to help you find your home before the world ends…

It is hard to believe but it is New Year’s Eve yet again.

Anyway, I looked back at my predictions from last year—and at the predictions a lot of people made that are way smarter than me. The National Association of REALTORS® predicted a 5 to 10% increase in home sales in 2011 because of a rebounding economy and job creation. I think they missed on the economy and jobs part. The NAR currently has revised home sales numbers over the past four years downward because of apparently double counting some two million sales. Just a small error. But it does appear that nationally sales are running about 12% higher than last year although with those downward adjustments. Kind of makes you feel good and bad at the same time?

I predicted that if you owned a waterfront property that the water in front of your home would freeze, you’d have to shovel your walk at least three times last winter, and you’d lose power at least once. I think I got those right. But I also predicted interest rates would go up in 2011. I was totally wrong on that one. Rates are lower, but can’t (I don’t believe) go any lower than they are. I predict rates are going to have to rise some. It is a pretty safe bet this time as lenders are going to seek to recoup the new charges Fannie and Freddie will be charging lenders to cover the costs of extending the recently passed payroll tax cut! Go figure, we have a struggling housing market and Congress decides to fund the continued tax cuts on the back of a struggling housing market –the very market they say is essential to a recovering economy. Who was covering the costs of the payroll tax cut before?

I predicted that homes sales in the Lakes Region would rise in 2011. It looks like the total sales will be down just a little, maybe 1% or so, but “just a little” is probably pretty darn good. I think we will be about the same in 2012. Most sales will continue to be on the low end under $200,000 and sales of mid-range priced homes will continue to struggle until the jobs outlook and the economy improves. But, if you are a first time buyer, this is probably the best time in the history of the world to buy a home! Interest rates are less than 4% for qualified buyers, home prices are at bargain basement prices, and inventory levels are at an all time high. If you are thinking about buying a home this is an extraordinary time to do so. Don’t squander it.

Vacation and retirement home buyers have, and will continue to take advantage of these market conditions. Vacation and retirement homes fueled our residential and condo home markets in 2011 and there is no reason to think that will change in 2012. When you consider the volatility of the stock market and low returns on other investment vehicles investing in Lakes Region real estate looks better and better. There are few places that offer more to retirees and vacationers in term of serenity, year round beauty, and activities than the Lakes Region.  That you can take to the bank!

Last year I predicted that the buyers that understand and grasp the current market conditions and realize that buying real estate is a long term investment would have great success in the real estate market. They did, and will continue to do so. I have provided examples of these success stories every month. While the real estate market may be struggling to get back to the boom times, those that recognize the opportunity will be very well rewarded. So in a nutshell, I predict that the Lakes Region real estate market will continue to be less than great in 2012 but that it will be a stellar year for home buyers.

Now to the more important predictions for the New Year! I predict that there will be a record breaking sale on Lake Winnipesaukee, that we are likely to see Green Bay and New England in the Super Bowl, and that the world will not end on December 21, 2012 as some claim. It may, however, seem like it ended on February 5th for some Patriot fans if they don’t win…

I don’t know if you have ever noticed, but homes have feelings, too. I’m not suggesting that houses can be happy or sad, although I am sure some feel neglected and abused. What I am really talking about is how a home feels and the feelings you get from the property while you are there. It’s something we all experience, but probably don’t think about much. I got thinking about it a couple of weeks ago when I previewed a property that two of my associates have listed in North Hampton, NH. This property consists of 55 acres of beautiful fields, a caretaker’s cottage, a huge three story barn built in the 1800’s, a 60’ x 80’ storage barn, various other out buildings, and a Royal Barry Wills designed, 4000’ square foot, four bedroom cape. You begin to get the feel of the property when you first drive onto the lot, but it is the home itself that stood out to me.

Royal Barry Wills was an architect who was born in Melrose, Mass in 1895 and opened an architectural firm in Boston in 1925. Over the years he was involved in more than 2,500 home projects either as a builder or as the architect. In 1946, Life magazine proclaimed him to be responsible for “designing the kind of house most Americans want.” He was probably most famous for his cape style design which created a more spacious and user friendly interior than the traditional New England cape. These capes also featured larger living rooms, kitchens, and bedrooms as well as the addition of wings for family rooms, dens, screened porches, or garages. There was always a large center chimney fireplace and often multiple fireplaces throughout the home. The exterior utilized graduated clapboards, large 12 over 12 pane windows, a lower pitched roof, small dormers, and detailed front entries.

We have a number of Royal Barry Wills homes in the Laconia area and the thing that struck me when I went into the North Hampton home is that they all “feel” the same. You get the “feel” underfoot of a solidly constructed home that was well designed and thought out. But you also have “feelings” of being in the grander surroundings of a simpler time. You feel that you are in a high quality home even though the design or materials might be slightly dated by today’s standards. The “feel” and the “feelings” you get in one of these homes is quite different than you would get in a newer colonial or ranch.

All homes evoke certain feelings. You can the feel quality, comfort, charm, serenity, warmth, character, and personality of every home you go in. You can also definitely feel the lack thereof. A home devoid of feelings is a pretty hard sell. Home buyers know when they find a home that “feels” right to them both physically and emotionally. Buyers have to connect on an emotional level with a property before they buy it. Seller’s need to recognize that as well and strive to make their home “connectable” to the buying public especially in this market.

If you are selling your property, the holidays are a great time of year to enhance how your home feels. Your home is decorated in its finest, the tree is lit up, you’ve got a fire going in the hearth, and it’s warm and inviting. Homes have a great feel during the holidays. Try and carry that feeling throughout the rest of the year. It could just help you make a sale! Merry Christmas!

The least expensive transaction last month on the big lake was an 838 square foot, two bedroom year round cottage with a guest house at 156 Black Point Road in Alton. This cute property has a knotty pine interior, eat in kitchen, stone gas fireplace, and a deck overlooking the water. There are two lots of record equaling 9/10 of an acre with 103 feet of frontage and two grandfathered crib docks. There’s also an association beach just down the street if the kids need to dig in the sand. This property was originally offered at $725,000, reduced to $579,900, and sold for $450,000 after 526 days on the market. This property is currently assessed for $489,400 by the town of Alton. It sure sounds like the new buyer should be happy with their purchase.

Over at 189 Dockham Shore Road in Gilford, a really nicely done 2,636 square foot, three bedroom contemporary waterfront home also found a new owner after only 56 days on the market and just in time for the holiday season. This high quality home, built in 2007, features an open concept living area with a beautiful great room with hardwood flooring, cathedral ceilings, gas fireplace, a bar area, lots of built ins and a wall of windows facing the lake. The custom kitchen has granite counter tops, tile floors, and a great center island with a gas cook top. There is also a formal dining area and a nice three season porch overlooking the water. The second level contains an elegant master suite with a gas fireplace and a private outside balcony. There’s also a secluded office that looks down into the great room should you need to pretend to work. On the walkout lower level are two guest bedrooms, a guest bath, and a family room. This home has lots of other great features including in floor heat, Bose surround sound system, and a lawn irrigation system. The house sits on a third acre lot with 50 feet of frontage with a sandy entry area and a dock. The new owners thought it was perfect for them and paid $873,000 which was just off the $899,000 asking price. The home is currently assessed of $764,930.

The largest sale of the month honors goes to a property at 28 Dale Road in Meredith. This beautiful 4,773 square foot, three bedroom, four bath Adirondack was built by Skiffington Homes in 2003 on a level 1.21 acre lot with 200 feet of frontage on Fish Cove. This home features the requisite natural woodwork, hardwood flooring, soaring ceilings, floor to ceiling stone fireplaces, a gourmet kitchen, great open spaces, and high end finishes and the craftsmanship one would expect in this style home. There’s a first floor master suite, two guest bedrooms up, a nice screened porch, and a huge family room on the lower level. This really looks like a home where casual lakeside living will come very easily. Initially priced at $1.795 million and subsequently reduced to $1.595, it found a buyer for $1.45 million after 407 days on the market. The current tax assessment is $1.45 million. I bet the new owners are going to have one of those Lexus’s December To Remember Christmas deals over there this year!

Over on Winnisquam and Squam there were no sales. Zip, nada, none. But that’s OK because December will be full of Christmas miracles, both on and off the lakes…

As of December 1, the residential home inventory was bulging like the sack of toys in the back of Santa’s sleigh!

The mortgage industry meltdown has certainly made buying a home in today’s market a somewhat daunting task. Lending requirements are back to basics with a renewed emphasis on the “three C’s of credit”: credit history, capacity (your ability to pay back the loan) and collateral (the value of your property and your down payment or equity). That’s the way it used to be so that’s really a good thing. But with Fannie Mae and Freddie Mac guaranteeing the bulk of all home loans today they are going to rather extreme lengths to ensure that there are no bad loans written. Buyers face more and more demands to prove income, verify assets, show steady employment, and explain things like small bank account deposits. In addition, not only does the property being purchased have to appraise, but the property itself goes under a lot more scrutiny. Concerns about the condition and state of repair of the property often can affect getting a mortgage. The National Association of Realtors has gone on record stating lending regulations are too tight and are hurting the housing recovery. From what I see I would agree. The pendulum has swung too far. That’s the bad thing.

One housing segment that has been hurt by even more regulations are condominium complexes. In order for someone to purchase a condominium with a loan backed by Freddie or Fannie the condo association must meet some pretty stringent guidelines. So it’s not just the buyer’s credit that is checked, the condominium association’s financial picture is closely scrutinized and must be approved. For example, condo associations must have a minimum of 10% of their annual budget set aside for reserves. No more than 15% of the units can be more than 30 days delinquent on their condo fees. No more than 10% of the units can be owned by a single entity and no more than 20% of the project can be “non-residential space” such as restaurants or shops. Buyers are also required to get condo unit owners insurance and the association must have fidelity insurance if it is larger than 20 units in order to ensure that the association funds are protected. There also can be no litigation against the association with respect to structural soundness, safety, or habitability of the units.

Essentially, what this means is that if a project is not approved by Freddie or Fannie then the only way a buyer can purchase a unit is with cash or a conventional “portfolio loan” from a local bank with 20% down. As many of the buyers for condo units in our area are first time buyers and need to use FHA financing with a lower 3.5% down payment these rules really limit those buyers’ choices. Some condo associations, like Waukewan Village in Meredith NH, have taken the initiative to get their complexes approved in order to make it easier for their owners to sell should they desire. That’s pretty smart. Waukewan Village is the only association in Meredith currently approved. In Laconia Weirs Crossing, Quail Ridge, Water Street Condominiums, Beaver Pond Estates, and Meadowbrook Town Homes also have approvals. There are currently no associations approved in Belmont or Gilford although Mulberry Hill in Gilford is currently in process. HUD.gov has a page that consumers can go to and check which complexes are approved. Some lenders are given designated underwriting authority by HUD to certify that associations meet the requirements and that could certainly save buyers some time. So if you are considering a condo purchase you should check to see whether they meet with Fannie or Freddie’s approval.Your local REALTOR® would be happy to help you and answer any questions you may have.

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