con•cede  [kuhn-seed] verb, -ced•ed, -ced•ing. verb (used with object)

1. to acknowledge as true, just, or proper; admit: He finally conceded that she was right.

2. to acknowledge (an opponent’s victory, score, etc.) before it is officially established: to concede an election before all the votes are counted.

There are many times in life that you need to make compromises. You’ll find that you may have to give something to get something. You may have to concede something in order to succeed in something. It is no different in a real-estate transaction. Sometimes a home seller can lose sight of the fact that his goal is to actually sell his home. A seller may think he is losing and the buyer is winning if he makes concessions. It is kind of ingrained in our psyche. I think it started in grade school on the ball field. No one ever likes to concede the game…

But in a business transaction, making concessions is part of the deal making process. And in reality, selling a home is just that; a business transaction. It is not about who is right or wrong or admitting defeat, it is about compromise, and the art of making a deal work. The most common “seller concession” is a contribution toward the buyer’s closing costs. This has been common practice for many years particularly for first time buyers who have good credit but not all of the cash necessary to purchase a home. In an FHA loan, for example, the buyer has to come up with at least a 3.5% down payment but is allowed to get a contribution from the seller of up to 6% of the purchase price to cover closing costs. These costs include items such as the title search, appraisal, tax stamps, etc.

A contribution toward the buyer’s closing costs obviously is really a reduction in what the seller will net on the sale, so it should be looked at with respect to the other terms of the offer. If the buyer has made a low ball offer then he’s not likely to get a concession for closing costs, too. The seller may also feel that he does not want to accept what would be essentially a 6% reduction in his asking price, especially if his home is really (and truly) priced correctly. These days, most sellers realize that they will have to give up something so no deal should be lost over a seller concession for closing costs. Buyers are too hard to come by! If the seller really doesn’t want to contribute all that is requested, he could counter to see if the buyer could come up with part of his closing costs. If the buyer truly needs a seller contribution, all or a portion of that amount can be added on top of the purchase price so that the seller nets an amount that is acceptable to him. The property, of course, will need to appraise at the slightly higher purchase price. The buyer also has to be approved for a loan for that slightly higher amount. This can be a win win for both parties.

After the initial deal is made, other concessions may be asked for to correct defects in the home found as a result of the home inspection process. Many times there are items that arise that the buyer would like to have fixed before the closing or have another seller concession so that he can fix them later. They may, or may not, be big issues to correct. Sometimes they get blown out of proportion by either the buyer or the seller. The buyer should be aware that he might not get all, or any, of the home inspection issues corrected if he has received a large seller concession up front to make the deal happen. The buyer can also opt out of the deal and not purchase the home if the issues are too big to resolve. At that point the seller has another decision to make. He can concede something and succeed in selling his home to the buyer or put his home back on the market and hope to find another buyer. He must remember though, all the defects found in the home inspection have to be disclosed to any future potential buyer. Sometimes making a few concessions can go a long way to getting you where you want to be…

There were 1,399 residential homes for sale in the towns in this Lakes Region report at the start of September, 2010. The average asking price was $521,155 and the median price was $269,000. The inventory level is up compared to last September when there were 1,318 homes on the market. The average price then was $553,314 and the median was $285,000. The current inventory level represents a 22 month supply of homes on the market, oil is about $90.00/barrel, and unemployment is at 9.1%. But, football season is starting. So you see, there are always some bright spots…

Tweet

As the dog days of August heat up, there are 1412 single family homes on the market in the communities in this Lakes Region

This steamy summer weather can create some real turnoffs for buyers that seem more pronounced when it is hot. There are also some simple steps you can take that would make your home more appealing if you are trying to find that all elusive buyer.

Probably the biggest turn off to a buyer is odor. You might have noticed odors only get worse in the hot weather. While the dog days of summer are not referring to dog (or cat) odors, it might as well be as far as real estate is concerned. Nothing will kill a showing quicker than pet odors on a ninety five degree day. Unless, that is, the homeowner is a smoker and likes to keep their home shut up tight for that enhanced second hand nicotine effect. Anyway, if you own pets, have your carpets shampooed, make sure the litter box and especially the back yard is kept clean (you really don’t want the buyers tracking stuff inside, do you?), and that you take the four legged children with you while the home is being shown. Some buyers, believe it or not, are afraid of dogs. A barking fido can also be a bit distracting when you are trying to show a home. Put some fresh flowers out or bake some brownies to create a pleasing aroma.

If you have air conditioning turn it on! Let’s show the potential new owner how comfortable your home is. He’ll not only know that you have air conditioning the minute he walks in but that it actually works. If you have a basement, you probably have high humidity down there creating sweating water pipes and increasing the possibility of mold growth. Basements can smell musty and moldy so why take that risk. A dehumidifier is a must in most basements in hot weather so if you have one turn it on. Creating a comfortable experience during a showing might just help you sell your place.

Let the sunshine in! Nobody likes to view a home in the dark with the shades all drawn. Open the curtains and blinds. Most buyers today are looking for bright spaces, not dark closets. Obviously, if you are going to shine some light on your home, make sure it is spotless.

Make sure your lawn is mowed. Having grass two feet tall is a sign that the home owner doesn’t take care of the property, not to mention it ruins the home’s curb appeal. Also keep the lawn watered to keep the grass green throughout the summer showing season. A brown, dead lawn is not going to help your curb appeal either. Make sure your plants and flowers look great and set them off with some fresh bark mulch in the beds. One highly experienced agent informed me that to make a home sell quickly have the owner plant lots of red geraniums. He said it is guaranteed to work. He just got a new listing and his sellers have planted them everywhere. The place looks fantastic! I am anxious to see if this works. It sounds better than burying a St. Joseph statue in the yard because you can at least see the geraniums. I’ll report back on the progress. If it works I’m going to start buying them for my clients…

Tweet

 It is great to report that the waterfront sales on Lake Winnipesaukee and Lake Winnisquam seem to have held their own over the summer season despite a downturned economy and general reluctance on the part of everyone to buy just about anything. Astute buyers still recognize that waterfront properties are a great place to invest their money. Unlike the stock market and other investment opportunities, buying a waterfront is a tangible, secure investment right now and is something that can really be enjoyed.

In the 3^rd quarter of 2009 there were 26 sales on Winnipesaukee (including island properties) at an average price of $1,076,621. There were 7 homes sold at over $1 million with the highest sale being the property at 55 Broadview Terrace in Gilford that changed hands for a mere $6.5 million.  This is a 11,464 square foot, 6 bedroom, 8 bath home constructed in 2005 sitting on a 1.59 acre lot with 270 feet of frontage. Obviously, this is a fantastic home with all the amenities and quality one would expect at that price.

Year to date, there have been 55 waterfront transactions on the big lake at an average price of $960,961 with a total sales volume of $52.85 million. That represents about 40% of the total sales volume for all the residential properties in the towns that share the waterfront on Winnipesaukee. So how does that compare to last year? In 2008 there were 53 waterfront transactions over the same time period with an average price of $1,314,639 and a total sales volume of $69.68 million. That sales volume represented about 39% of the total sales volume for the same period last year. Pretty consistent.

Sales on Lake Winnisquam got off to a real slow start in the first six months of the year with only 2 sales. However, in the 3^rd quarter there were 9 transactions at an average of $529,667 and a total volume of  almost $4.8 million. The highest sale was at 87 Collins Brook Rd in Meredith at $740,000 for a 4,572 square foot, 14 room, 6 bedroom home, with 170 feet of frontage. The 11 transactions year to date on Lake Winnisquam came in at an average price of $495,409. That average is down from the $620,250 average posted in 2008 but the total sales are up from 8 sales in the first three quarters of 2008.

As with the residential market in general, the average prices on waterfront properties are down a bit signaling that there are some good deals out there for those buyers looking for their slice of the Lakes Region waterfront pie. Currently there are 27 properties available on Winnisquam ranging from $275,000 to just under $2 mil. On Winnipesaukee there are over 130 properties available where you can spend as little as $200,000 for an island property and just under $400,000 for a mainland direct waterfront access. So if you are looking for a waterfront retreat now is the time. I’d be happy to help, especially if you want to match that $6.5 million sale last month!

You can blame the lack of sales on hard economic times, the uncertainty, or the daily dose of bad news coming out of the boob tube and you’d be partially right. No one feels good about the economy right now so it is tough to get the nerve up to buy something as huge as a new home unless a buyer feels like he is getting the steal of the century. But I think a lot of people aren’t buying because it is just not fun anymore. The market is very confusing right now and there’s a lot of conflicting data. It is hard to get excited about buying when you can’t figure out where the market really is. So it is not surprising that some buyers can’t recognize a good deal even when it whacks them in the face. Some buyers think that they should make ridiculous low offers on what are already reasonably priced properties just to be on the safe side. I’m not saying buyers shouldn’t get the best deal they can on a home. They should and it is their REALTORS® job to help them get it.

But buyers need to understand that they are buying the home, not the “deal”. It is almost like buyers have a misconceived notion, probably fueled by news reports from California or other hard hit areas, that all houses should be half price. REALTORS® need to do a better job explaining that home ownership is a long term investment and educating the buyers in the realities of pricing and values. The process would be a lot more successful and FUN if buyers were confident that they were purchasing the right home for them and getting a good value as well.

Think about how you’d feel when you go to buy that brand new, shiny, candy apple red convertible that you have always wanted (this is a guy thing mostly, so ladies stay with me here). Let’s say it is a Corvette (GM needs the help). You have always wanted one, you’ve studied and researched the options, the engine, and you know what to expect for a price. You shop and find two or three sitting at the dealerships and pick the one you like the best and buy it. There is excitement, anticipation, and you can’t wait to pick it up and go for a spin. You got want you wanted at a price that you knew was fair. Boy, this is fun! Now compare that to buying a 4 door sedan for your business and you have to concentrate on the deal only because the car doesn’t matter. It is only about the deal. Two total different experiences in buying. One is fun and fulfilling and will brings you joy and the other really means nothing other than you bought a car and you can say you got a good deal. Buying a home should be fun and exciting too! And it will be if buyers, with the help of their real estate agent, approach the process in the right frame of mind.

So start your day of home searching by doing something like going to have ice cream at Ben and Jerry’s (preferably with your agent) to set the proper tone for the day. Then go look at the properties that really fit your needs and your pocketbook. Focus on finding the house that excites you the most and that you’ll be happy in for years to come rather than just finding a deal. That sounds a lot more like fun!

Residential Homes Available June 1, 2009

Report covers the towns of Aton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton and is complied using NNEREN MLS data.

First Quarter Lakes Region Residential Sales Results

As billed, March did indeed go out like a lamb weather wise and sales wise with only 44 residential homes sold in the Lakes Region of NH. That total is 24% off from last March’s tally of 58 homes. The average price of the homes sold in March was also down from $330,774 last March to $218,530 this March. The major reason for the drop in the average sales price is the fact that far fewer high end homes are selling. Of the 45 homes sold in March, 18 were bank owned properties and 3 were short sales.

The numbers for the 1^st quarter of the year show that we are down about 11% from last year with respect to the total number of residential sales: 112 so far this year compared to 126 last.  The average sales price for the 1^st quarter came in at $237,480 compared to $356,812 last year. Again, this drop seems to be a function of fewer high end home sales. In the 1^st quarter of 2008 there were nine homes that sold over $1 million compared to just two for the same period in 2009.  The total gross sales volume in 2008 was $44.96 million compared to just $26.6 million this year. One good sign is that the average days on market has dropped from 132 last year to 112 this year signifying that some properties are moving just a little quicker.

A quick look at the 1^st quarter condo market shows that there 19 units changed hands with an average sales price of $223,550 compared to 35 units sold in the 1^st quarter of 2008 at an average sales price of $196,735. So even though the sales numbers were off 45%, the condo average sales price has held up better than the residential sector so far this year. There were only two bank owned condos sold and one short sale so far this year which seems to indicate that far fewer vacation home owners are in trouble. The same scenario holds true in the mobile home market where 1^st quarter sales dropped from 13 in 2008 to 9 in 2009 but the average sales price rose from $33,262 to $43,332. 

The Lakes Region Residential View contest is underway so if you live in a home with a view send a photo of  it along with your contact information to my attention at Roche Realty Group or email me at rsanborn@rocherealty.com. Yes, waterfront views are also views! I’ll post them at http://www.lakesregionhome.com/ and on May 13^th an independent panel of  judges (I promise, no tax assessors) will pick the best view submitted.  The winner will receive $100.00.

Residential Homes Sold March 2009

Report covers the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton

You might be able to put lipstick on a pig, but that won’t change the fact that the number of homes sales are down and that things are pretty quiet in the real estate world right now. If there was ever a year where we need to get the elections behind us so the country can get back on track this is definitely it. There was a total of 69 residential homes sold in September in our Lakes Region towns. That is down from the 88 transactions last September and 85 in September 2006. Looking at the whole year thus far, a total of 508 homes were sold during the first three quarters of this year at an average price of $361,817. That puts us 22% off last year’s total of 652 units for the same period. Not great, but it could be worse. If there is any good news in these numbers it is that we are only about 8% off last year’s average sales price of $394,915 for that nine month period. I don’t know about you, but to me that sounds a whole lot better than the percentage the stock market is down!

Unfortunately, these tough economic times are forcing a number of homeowners to sell their homes.  Even more unfortunately, because of the recent decline in real estate values many homeowners won’t find a buyer at their current asking price.  It goes without saying that any homeowner would like to sell his property at a price that covers his current debt. So usually he sets the asking price based in part on that mortgage payoff amount. But if the homeowner owes more on the house than what it is worth in today’s market he is not likely going to be able to find a buyer. One solution to this seemingly “no-way-out” situation is the short sale.  A short sale is when a lender agrees to accept less than what is owed on a property so that the property can be marketed and sold at a price more in line with current values. If a recent hardship has resulted in the inability of a homeowner to keep up with the mortgage payments, many times the lender is willing to negotiate a reduced payoff rather than going through a costly foreclosure process. More importantly, the short sale process is a solution for the homeowner that prevents a foreclosure or bankruptcy situation that would damage his credit rating even more.  If you need assistance in understanding the short sale process, requirements, documentation, and time lines please feel free to call me at anytime for more information.

Residential Homes Sold September 2008

Report covers the towns of Aton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, and Tilton

Unfortunately, the month of April won’t be remembered as the month that things turned around in the Lakes Region of New Hampshire as far as home sales go. The sales that closed in April were a result of buyer activity in February and March so it isn’t very surprising that the numbers came in so low. Most REALTORS® in the Lakes Region will attest to the fact that there really wasn’t much going on in those two months other than shoveling and cleaning up after seemingly endless snow storms. April’s total of 46 residential sales in the twelve towns listed was 30% lower than April of 2007. For the first 4 months of the year we stand at 172 sales which is about 25% of the total for the same period last year in these same towns. The average sales price has also dropped for the same period from $402,478 in 2007 to $373,502 so far this year or about a 7% drop from last year.

There were four homes that sold this month exceeding the $1 million mark and the Town of Moultonborough gets the top honors with total of 7 sales with an average sales price of $1.029 million. The highest sale was for a $3.1 million to be built, 4,300 square foot, 13 room, 5 bedroom waterfront home on Eagle Shore Road in Moultonborough.  

Reports from across the country show that average sales prices for homes are down. We may still see some downward movement on pricing on some properties here in the Lakes Region, but for the most part I believe that home prices have pretty well bottomed out.  It seems like housing might be the best bargain out there right now given the fact that just about everything else seems to be going up in price. The real encouraging thing that I have noticed is there have been a lot more homes going under contract over the past few weeks. Our office had four properties that came on the market recently that were priced well and showed real value to potential buyers. Those four listings were on the market for 5, 18, 20, and 37 days!  That proves that buyers are out there and they are paying attention. It also proves that if a homeowner is willing and able to offer his home at the correct price point it can sell pretty quickly!  What a great concept…

RESIDENTIAL HOMES SOLD APRIL 2008

For the towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmantion, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, Tilton

The total number of residential sales for March 2008 in our Lakes Region of NH communities came in at 58 homes changing hands compared to 54 homes in March of 2007. Given the difficulty showing property this winter this slight increase in sales numbers could be considered a major victory. We had four sales that exceeded the $1 million mark this past month. Last year in March there were none. On the other end of the spectrum there were 28 sales below $200,000 last month compared to 20 for the same month last year. So buyers seem to be getting active now on both ends of the real estate ladder.

There is an explosion of real estate related shows on TV right now. Channels like HGTV are providing a wealth of information to home buyers and sellers. This past week HGTV aired the “25 Biggest Real Estate Mistakes” when buying or selling property. If you missed it, I am sure it will be on again.  There is a lot of good advice and anyone buying or selling property should check it out. They list the #1 mistake made (by sellers) as “Failing to Showcase Your Home and Make Small Cosmetic Changes”. Failing to make small, affordable changes, and improvements will prolong the time it takes to sell a home and will probably result in a lower sales price. Staging rooms to showcase them at their best and making sure the home is spotlessly clean are simple processes that many sellers don’t take to heart. A thorough cleaning, minor repairs, and a fresh coat of paint will make any home sell quicker and for more money. The #2 mistake (again on the seller’s side) was “Setting Too High of a Sales Price”. Setting the sales price based on a market analysis provided by a real estate professional rather than on what the owner “thinks” it is worth is truly the correct approach. Putting a totally unrealistic price tag on a home will discourage buyers from looking at it and cause the home to stay on the market much longer leading buyers to think that there is something wrong with it.

There is good advice offered in the other 23 “big mistakes” as well. As a REALTOR ® I know for sure that there are also hundreds of other “little mistakes” that can cause you a lot of grief or cost you money when you buy or sell property. Way down at mistake #13 was “Not Hiring an Agent”. This really should be the #1 mistake. Being an agent, I am obviously a little biased here. But the other 24 mistakes are things that good agents have been telling their clients and customers about right along. We actually live these TV shows on a daily basis. So get an agent. And also avoid mistake #14 by getting the “right agent” who will do a good job for you, keep you informed, and will prevent you from making any mistake, big or small. Then you can sit back and watch some more TV.

RESIDENTIAL HOMES SOLD MARCH 2008

Towns of Alton, Barnstead, Belmont, Center Harbor, Gilford, Gilmanton, Laconia, Meredith, Moultonborough, New Hampton, Sanbornton, Tilton