It’s all good…. As you’ve likely heard or read from a variety of sources, the Spring real estate market, in such towns as Weston, Wellesley, Needham, Wayland, Lexington and Concord to name just a few, is Hot, Hot, Hot. And with properties priced below $1 million and sometimes even below $1.5 million*, a better word to describe the market is frenetic. A typical scenario that we have been seeing of late is as follows:

• A home priced at $895,000 comes on the market on a Wednesday.
• A broker’s open house is scheduled for Thursday.
• Public open houses are scheduled for Saturday and Sunday.
• Offers are due by the end of the day on Monday, which ultimately results in multiple bids, some over asking and some forgoing inspection and/or mortgage contingencies

I’m not sure if I’ve seen this level of activity – ever….

And so…the bottom line is that we have a changing market. Or maybe more accurately said, we have a market that has drastically changed. And given this, our pricing strategy needs to change as well to adapt to this evolving market. But before I get to all that, let me start at the beginning. When we – as real estate agents – meet with you as sellers to provide you with a value for your home, also known as a Comparative Market Analysis (CMA), it is standard to take the last six months of solds as comparatives. The theory behind using six months of data is because this time frame is considered current enough from which to draw relevant market trends and pricing conclusions. At least that’s the way it used to be – but not anymore….

The market has changed so dramatically in the last few months that to accurately price a home, you need to analyze the pending - “sold but not yet closed” – activity that is happening as we speak, right now. The truth of the matter is that looking at a sold home from late October (just under six months ago) tells a very different story because it was a much different market – a market that is virtually no longer relevant today. And so for the first time that I can remember, we are presenting CMAs by using the pending or very recently listed/sold data. This concept is known as pricing in an appreciating market. It’s absolutely fascinating. And given this recent, frenetic activity level, it almost seems as if we are in the midst of a history-making market. Of course I would be remiss if I didn’t add that these market trends of late are subject to change or shift at any moment in time, which makes all this even more fascinating. Stay tuned….

What are your thoughts on this subject? Are you currently selling your home? If so, have you experienced this frenetic market activity? Or are you currently buying a home and seeing this kind of activity from the other perspective? And what are your thoughts on how this Spring market will continue to evolve and develop? I can’t wait to hear.

For a complimentary home appraisal and advice on how to price your home effectively in this Spring market, please contact me, Lisa Curlett (781-267-2844 or www.homesalesbylisa.com). I would be delighted to help you with your home selling process in any way that I can.

* The higher-end market above $1.5 million is a bit of a different story, however. Because of the nature of the higher-end market, these properties do not sell as quickly, and so the market for this price range is more static. Thus when pricing at this level, a six-month analysis for comparatives is still relevant.

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.

The September 2011 Pinnacle Report for Wellesley and Weston real estate is here, and you may have gotten the postcard in the mail saying that it has been published….  Pinnacle Residential Properties is going green, and so for the first time ever, the report will not be mailed automatically to households.  We write this report in an effort to help you make the most informed decisions about buying and selling property.  Not only does the Pinnacle Report detail what has happened in these markets by price range, it also provides you with the average ratio of sales-price-to-assessment data, conveys what may be on the horizon and so much more.

If you would like to receive the latest Pinnacle Report, there are two ways to do so.  Either email me by clicking here so I can get your information and send you a copy of the Pinnacle Report OR sign up on the Pinnacle website by clicking here.  I hope you find the report to be as “intelligent” and “insightful” as other readers have, and please contact me with any questions or need for additional information.

The Pinnacle Report for Needham and Dover will also be released soon so please let me know if you would like a copy of this too.  Enjoy, and happy reading…..

Time again for my twice-monthly Pinnacle Report covering the Weston, MA real estate market….  We’re back in Weston, enjoying the last nine days before the kids go back to school on August 31.  In fact, today we went to the Weston Town Pool (pictured above), which is such an incredible community asset.  With its large shallow end, watering mushroom, diving board and lap lanes, the pool appeals to kids and adults of all ages.  There is also a water park/activity section, massive sand box, picnic tables, snack bar and loads of chairs to place in either the sun or the shade.  But keep in mind that the pool will be closing for the season this Sunday, August 28, so if you haven’t had a chance to venture there this summer, you have a few more days to do so….

Now on to the market recap.  In the last two weeks in Weston, six single-family homes came on the market and five sold.*  We continue to see  our overall inventory (103) decrease slightly as it has been doing throughout the summer months and approximately 30% of our listings priced above $2.5 million.  We await the Fall market, which will begin in early September.  In the meantime, enjoy these last weeks and fleeting days of summer.

To fully enjoy all of the market stats, please click Weston Pinnacle Report 8-8-2011-8-21-2011 for the details.

* Sold means “pending/under agreement” and not yet closed.

Time again for my twice-monthly Pinnacle Report covering the Weston, MA real estate market….  This time, though, instead of being in quiet, peaceful Weston, I am writing this from the majestic mountains, serene lakes and breathtaking views of Bigfork, Montana.  To say the change in scenery is monumental is an understatement.  Our Northeastern world, which I adore and find absolutely gorgeous, is so completely different than the beauty of the mountains and lakes of Montana. I hope you enjoy these photos as much as I love sharing them with you….

Now on to the market recap – six single-family homes came on the market in the last two weeks in Weston, and two sold.* Our overall inventory (107) continues to decrease slightly as it has been doing since mid-June, but it is still higher than where it was this time last year (100).  Properties priced above $2.5 million continue to constitute approximately 30% of the active listings.  As it stands now, the summer is coming to an end, and we are gearing up for the start of the Fall market in just a few weeks.

To fully enjoy all of the market stats, please click Weston Pinnacle Report 7-25-2011-8-7-2011 for the details.

* Sold means “pending/under agreement” and not yet closed.