For those of you interested in buying new construction* in Weston, MA, I wanted to share with you some market information so you could enter into this buying decision with current, hot-off-the-press data:

Active Properties on the Market. Of the active properties on the market, only 8 of the 79 (10%) are newly-constructed homes, and they range in price from $1,749,000 to $9,900,000 with a median list price of $3,745,000 and an average list price of $4,379,250. The average days on market is 225 days, the average living area is 7,088 square feet, and the average list price per square foot is $560. So given the median list and average list price, you can see that the active new construction is mostly high-end, has been on the market for 7 1/2 months without selling, and has a high list price to square foot ratio.

Pending and Sold Properties on the Market. In looking at the last six months of pending and sold newly-constructed homes, we see some similarities and differences from the data above. First, the market percentage numbers are comparable. There are currently 4 pending newly-constructed homes out of a total of 39 pendings (10%), and there are 5 newly-constructed homes that have sold in the last six months out of a total of 51 solds (approximately 10%). When we look at the pricing of these nine pending and sold properties, we see a range in price from $1,010,000 to $8,000,00. Interestingly, with the exception of the days on market, the other market figures for the pendings look very similar to the actives. While the days on market is only 143 days (4 3/4 months), the median list price is $3,672,500, the average list price is $4,358,750, the average living area is 7,687 square feet, and the average list price per square foot is $533. The market figures for the five solds, on the other hand, tell a very different story than the data for the eight active and four pending newly-constructed homes. Specifically four of the five homes sold below $1,700,000, and the fifth property sold for above $4,000,000, which results in a very low median sale price ($1,480,000) and average sale price ($1,959,449).  The average days on market was 152 days (5 months), which is comparable to the pendings and less than the actives. All of the other market figures, however, were lower than those of the actives and pendings. For example, the average living area was 5,513 square feet, and the average list and average sold price per square foot were $365 and $341, respectively.

What do you get at these price points? Below $2,500,000, you’ll generally get less than 6,000 square feet of living space, which includes the garage, with four bedrooms and approximately an acre or less of land. Over $2,500,000, you’ll usually get more than 6,000 of living space which also includes a finished basement, at least five bedrooms and more than an acre of land. In addition, these homes will feature more expensive finishes in the form of mouldings, paneled libraries, fireplaces, tile choices, cabinetry, built-ins and more.

In the event that you are interested in new construction in other towns, I am sharing our Pinnacle blog on New Construction in Wellesley. For more information on new construction or on the real estate market in Weston, Wellesley, Wayland and the surrounding towns, please contact me, Lisa Curlett (781-267-2844 or www.homesalesbylisa.com), to answer any questions or for a complimentary home appraisal.

* For these purposes, new construction is classified as homes built from 2011 on and those that have been torn down and rebuilt and not those that have been completely renovated.

As many of you know and have likely experienced, the multiple bid situation is happening more and more these days. Especially with homes priced under $1 million in such towns as Weston, Wellesley, Wayland and Needham, multiple bids have become more of the norm than not. Given this current state of affairs, I wanted to share a few quick tips to help with the process when you are buying a home and either anticipate being in a multiple bid situation or find yourself in one:

• Visit the property more than once – sometimes this isn’t possible if the property comes on the market, and there are five offers on it that same day. But if you have the luxury of going back to see the home a second time, make sure you do. You often see new things or view things differently on a subsequent visit. A second showing may ultimately make or break your decision to put in an offer.
• Find out what’s most important to the seller – usually it’s price, but often closing date, your plans for the house (i.e., tearing it down or renovating it) or other such matters can be equally as important. It’s crucial to know this information before you write up the offer.
• Put your best foot forward – you may not get a second chance so make the offer the strongest you can muster. That being said, the inspection contingency (unless you are knocking down the house) is something you always want to include. If you feel comfortable financially and can eliminate the mortgage contingency, this can significantly strengthen your offer in the eyes of the seller. But this is something you have to consider very seriously because if you don’t have a mortgage contingency and don’t get financing, you will be losing your 5% deposit, which can often be sizable. If you’re not comfortable with taking out the mortgage contingency, the other option – if feasible – is to put down more money and reduce the amount you are borrowing. This can also serve to lessen the seller’s anxiety about the mortgage commitment process.
• Picking your “best and final” number - make sure the final price you give is really your best and final. This way if you find out that buyer party #2 got the house for just $1,000 more than your bid, you won’t be devastated because you weren’t willing to pay any more than your best and final number. It helps if you think about this final price in those terms.
• Show your commitment to the home purchase – put down more money as a deposit. It is standard where we live to put down 5% at the P&S (purchase and sale agreement). Often in a multiple bid situation, however, you will see buyers increase that amount to 10%. And though it’s just a gesture, because the money doesn’t even touch the seller’s hands until the closing, it does show your deep commitment to buy the house.
• Get your offer in on time and have all of the pertinent paperwork attached – if there is a deadline for offers, and you are late in getting in your paperwork, you could be doing yourself a disservice. The paperwork at this point in the process usually includes the offer, contingency addendum form, agency disclosure, pre-approval letter, copy of the offer check and completed lead paint form.
• Keep your fingers crossed and a smile on your face - if you tried your very best, and you did not end up “winning” the house, don’t despair. Either the deal will fall apart and you will have a second chance at the house. Or more realistically, you will find another home that is likely better suited for you. I know it sounds cliche, but “what’s meant to be, will be” – and 9 times out of 10, this is true and a good thing too.

Another factor to keep in mind is that you might want to communicate some personal background about yourself. This really depends on the scenario, and it is completely up to you and your comfort level, but sometimes adding some personal information can help the seller identify with you. On the other hand, sharing personal information can also work in reverse. But it’s something to keep in the back of your mind and weigh the pros and cons in each particular situation.

What are your thoughts on this subject? Have you ever been in a multiple bid situation(s)? If so, how did you fare? Are there other tips you would add to help with the process? I can’t wait to hear….

For more information on this or on the real estate market in Weston, Wellesley, Wayland and the surrounding towns, please contact me, Lisa Curlett (781-267-2844 or www.homesalesbylisa.com), to answer any questions or for a complimentary home appraisal.

“What should I expect from my home inspection?” is a question my buyer clients consistently ask me during the home buying process. And given that we are in the midst of the Spring real estate market, which is prime home-buying time, I figured I would take this opportunity to share my thoughts on the subject:

• Expect another negotiation with the seller – This is the first and foremost expectation. In fact, I went back and did a little research on the subject. I looked at my last 30 transactions in such towns as Weston, Wellesley, Wayland, Dover and Natick. For some background, in some of these transactions, I represented the buyers, and in others, I represented the sellers. In addition, these 30 transactions took place at a wide range of price points – from condos in the $300,000s to newly-constructed homes priced at almost $3,000,000 and everything in between. And the truth of the matter is that in all of these transactions – yes, 100% of them – there was another negotiation following the home inspection. Yikes. And in terms of dollars and cents, these negotiations generally resulted in a credit to the buyer at the closing or a reduction in purchase price.
• Don’t be surprised if there are high radon levels – I was shocked when I looked further into these 30 transactions and found that more than 43% of them had radon as an issue – either there was a radon system already in use or the home tested high for radon levels*. The bottom line is that radon is very prevalent where we live. And yet the good news is that it is fixable by installing a radon mitigation system – the average cost of which is approximately $1,500.
• Be prepared to pay close attention and take notes – The true goal of every home inspector should be to educate his** clients (because the buyers hire and pay the home inspector) about their new residence. It shouldn’t be to needlessly alarm buyers about various aspects of the home or vilify the seller for what may have been done incorrectly to the home. This is a time for the buyers to learn about the property’s systems, utilities, mechanics, special characteristics, etc. so that when the deed is transferred to the buyers, and they are officially the new owners of the house, they understand how to operate and manage their new abode.
• Budget a certain amount of time and money – When you call to schedule a home inspection, the home inspector will ask about the size of the home – this is because it will help him determine how long the inspection will take and how much it will cost. On average, a three /four bedroom, 2,200 square foot home will take approximately three hours to inspect. Most home inspectors will charge anywhere from $500 – $1,000. And make sure you mention that you want to inspect for pests (no extra charge) and test for radon (anywhere from approximately $75 – $125 depending on the mode of radon testing).

What are your thoughts on the home inspection process? Did it go smoothly? Were your expectations met – or even exceeded? Were you surprised and/or enlightened by what you learned during the home inspection? Did you think it was money well spent? Did you feel your inspector did an adequate job? I can’t wait to hear….

For more information on this or on the real estate market in Weston, Wellesley, Wayland and the surrounding towns, please contact me, Lisa Curlett(781-267-2844 or www.homesalesbylisa.com), to answer any questions or for a complimentary home appraisal.

* The EPA considers radon levels that are higher than 4.0 pCi/L unsafe and needing remediation.

** In all of my home inspections over the years, the home inspectors have all been male.

So many homes, especially the older ones or those with space constraints, have quirks and eccentricities, and we love them for that. It’s what gives them charm and character. But sometimes it also makes them impractical. I’ve seen homes such as these without dining rooms, living rooms, family rooms* and/or mud rooms. In essence, older homes weren’t built with our modern-day version of family rooms or mud rooms. And owners whose homes have space constraints often take rooms and convert them into other kinds of rooms. For example, we sometimes see a dining room converted into a family room because the family puts an emphasis on that kind of living space over a formal dining area. And often we see homes in which the dining room has been switched to a home office. It really comes down to how you live as a family and the priority and importance you place on each of the rooms.

Interestingly, this concept doesn’t usually apply to newly-constructed homes as the builders have the floor plan and room make-up down to a science. They know to include all of these rooms – living, dining, family and mud rooms and sometimes the bonus of a first-floor office – and size them according to today’s living. Newly-constructed homes usually feature smaller living and dining rooms because we often don’t use these formal spaces as much, and they offer larger kitchens and family rooms because this is where we spend the majority of our waking time. Plus they almost all include mud rooms because having a place to store all of the shoes, coats, hats, gloves, boots and sports equipment as well as a place to hide all of that mess has become paramount these days.

So what if you were buying a home, and you had to forgo a room, which one would it be – the living, dining, family or mud room? What room can you live without, and which rooms are highest on your priority list? Or would you opt for a home that had all of the requisite rooms? And finally, if you were buying a home in which the owners had converted one of its rooms – its dining room into a home office, for example – would you switch it back or leave it as is? I can’t wait to hear….

For more information on this or on the real estate market in Weston, Wellesley, Wayland and the surrounding towns, please contact me, Lisa Curlett (781-267-2844 or www.homesalesbylisa.com), to answer any questions or for a complimentary home appraisal.

* I’m using the modern – or today’s – definition of a family room, which is informal living space that is generally attached to or adjacent to the kitchen.