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FieldGrass · Guest

Hard Rain > > "Asking $557, assessed $557, sold $520", And you're considering paying 3% over assessment, how does that make sense ?

1. Assessment does not always relfect the real value. It is a reference.
2. Comparing the condition of the two houses, this one worth the asking price, and anything below can be considered a good deal.

I do agree, however, that the more I think about it, the less attactive to buy now versus waiting for a few more months when all the dusts are settled.

On the other hand, though, don't you agree that more turbulent situation usually means more opportunity?

FieldGrass · Guest

WestCoastXPlant > What bothers me is reports that loans now take forever to close -- I've been in BoAs queue for a month now...

This is indeed disturbing, as this will impact on one leverage that many of us have -- short closing turn-around. Do you know why?

And If you don't mind -- can you tell us why you are in a queue for loan before your offer is accepted?

Thanks?

john p · Joined: 10 Mar 2006 Posts: 1820

I think you need to look inward to understand the macro and micro economics from a value perspective.

My father used to tell me that the value of anything is the amount someone is willing to pay for it. You can increase the value by seeking out the best buyers through marketing. These "immune" towns get their marketing through their school systems (MCAS scores). Because people in many of those towns value education, the kids most likely put in more of an effort and behave better in class. My feeling is that in other towns, if your kid is bright, they will end up in the advanced classes where the kids are away from the ones that don't care (not to say that all kids in the slower track don't care). You have to evaluate how much that is worth to you. I grew up in a town that had a top 20 school district and my parents still sent me to a private high school. Lot of good it did...

Anyway, just because the market of the town has crusted over and is pretty tight, doesn't mean you are. I mean are you flexible? Can you move somewhere else? Would you get a substantially much better quality of life in another area? Just because these towns are frozen with plaque in their arteries doesn't mean that you can't be fancy free. Look at towns like golf courses. There are some old country clubs in Massachusetts that are very old and tired but have an old reputation and that is pretty much all they have left. There are much, much better new golf courses than say, the Salem Country Club. Shaker Hills, the Pinelands, New Seabury, and this awesome one I played at in the Blackstone Valley area which was designed by Jack Nickalus I think... If golf isn't your thing, think restaurants. I mean Jacob Wirth and Durgin Park are great, but a Todd English joint might be a little better... I would say think about the new kid on the block as well.

Being a native from Massachusetts I have seen sleeper towns become exclusive bedroom communities. Take Harvard, Medfield, Needham, Hopkinton, these towns emerged in the past fifteen years. In the city, it would be places like the Charlestown Navy Yard, South End. Prior to that the new kids on the block in the 80's were Acton, Concord Carlisle, Sudbury, Topsfield, Lynnfield. In the 70's the new kids on the block were Lincoln, Dover, Sharon, Cohasset. Think about what the new kids on the block towns are. I see Plymouth, Plympton, Halifax, Groton, Newburyport, Boxford, Bolton. The commuter rail extensions in the past 10 years or so have opened up some really quiet, and peaceful areas. The quality of life to have a balance of crickets and wildlife to working in a city with a world class career is absolutely amazing living. I wouldn't trade my house in Halifax for one that was twice as expensive in Newton.

You know, I loved skiing in Stowe, but Sugarbush (the newer kid) is really awesome. Those front four at Stowe are amazing runs, but Castle Rock in Sugarbush is quite cool too. Anyway, don't get caught in the crusty old worn out reputations because when a place trades on their reputation that is several decades old they don't have the horsepower to maintain the buzz. Play the Salem Country Club and then play New Seabury and you'll get what I"m saying.

However, we do have a few "Pebble Beach" quality towns that will defy gravity. These towns are listed in the top 50 zip codes in the United States. These places seem to make sense if money is no object.

GenXer · Joined: 20 Feb 2009 Posts: 703

FieldGrass: What happens if you put all your savings down and you lose your job?

WestCoastXPlant · Guest

melonrightcoast · Joined: 22 Feb 2009 Posts: 236 Location: metrowest

WestCoastXPlant:

WestCoastXPlant · Guest

melonrightcoast, this is really interesting. I got a number of preapprovals (I used one mortgage broker and shopped a bunch of large banks myself).

BoA was the only one where I saw this type of lag...I don't know in terms of closing, but none of the LOs indicated that I should put more money down to close faster (they did point out I'd pay less Smile

which is a bit of a DOH item but I guess some people don't know that). In fact, it's weird to me that a bank would require that you put bigger down as opposed to verifying you can hold the house for a year with no income given the amount of foreclosures in the market (granted for immune towns probably not so much)

melonrightcoast · Joined: 22 Feb 2009 Posts: 236 Location: metrowest

Renting in Mass · Posted: Mon Jun 01, 2009 1:08 pm GMT Post subject:

These case studies are really helpful. Thanks FieldGrass. If I ever make an offer, I'll return the favor.

Admin, would it be worthwhile to create a "case study" section of the forum for these types of discussions?

FieldGrass · Guest

URGENT TACTIC ADVISE --

Hi All,

We made the offer. The listing agent came back and asking "Is this your best offer".

This is standard question by many realters, which according to my experience, indicates our offer is in the final bid.

I have decided to feedback with "offer-as-is" in a couple of hours. Do you see this differently?

Thanks.

FieldGrass · Guest

THe listing agent said there are four offers.

30+ people showed up in Sunday Open house.

The listing agent does not know anything about the age of the roof, furnance, etc, while the seller does not know either because these were all handled by the passed-away husband.

Apparently, the listing agent is trying to get rid of the house as soon as he can.

Brian C · Joined: 13 Feb 2009 Posts: 98

JCK · Joined: 15 Feb 2007 Posts: 559

As Brian points out, make sure your offer letter has the standard contingencies (mainly mortgage and inspection).

If they don't know or won't tell you the age of the roof/furnace, etc., you should assume that these items are at the end of their useful life and will need replacement either immediately or within a few years. Alert your inspector to this lack of disclosure, so he or she can investigate before you commit.

Brian C · Joined: 13 Feb 2009 Posts: 98

If you do have an inspection and these items need to be addressed, dont be afraid to have local contractor come and write a estimate (in writing) what its going to cost to replace.

My original offer was 8% off asking. After the home inspection, I took another 2% off plus they addressed few of the issues using my guys.

If you know the house needs work, dont be afraid to go a little above your "final" because the inspector will give you justification to drop the price. Just play it smart.

john p · Joined: 10 Mar 2006 Posts: 1820

I was in that situation before where the selling agent said something like we have four offers so we want you best and final offer.

We lowered our price $5k because I didn't like the notion of being in a blind auction.

We lost that one.

I am glad we lost that one because a better one came along...

I think each scenario like this is a bit different so you have to rely on your own gut and research.

You have to be all business and not get clouded by too much emotion.