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Kaye Lewis
"Let's Talk Greenwich Real Estate"
Thu Dec 11, 2008
So How Bad is the Greenwich Market?
The average home sales price is approx $2.8MM now, down about 5% from last year. The median is below $2MM. The number of contracts is down between 30-35% for 2008 as compared to 2007, depending on where the figures are derived (MLS vs MLS+non MLS). Homes must be compelling, whether it's price, condition, or some unique feature (waterfront, etc.) to motivate today's buyers into making offers.
In our office meeting today, Jeffrey Jackson of Mitchell, Maxwell & Jackson, Inc., appraisers with offices in the tri-state area, addressed our office and said that current home values in Greenwich, Cos Cob, Old Greenwich and Riverside were approximately the same as those in 2005. He also stated that if the current downturn follows the same pattern as that in the 1980's, it should last approximately 5 years. Greenwich's volume of sales contracts began to drop in number in 2005, so by his observation, we are just about in the middle of the cycle. Although there are no guarantees, the historical perspective would indicate that we are just about at the bottom of falling prices. Since buyers have been concerned about jumping into the buying process before the prices hit the bottom, it appears that we might be at or near the lowest prices on many Greenwich homes right now.
With government interventions occurring, mortgage interest rates are now and will be in the near future some of the lowest in a 30 year period, which means that if you have good credit and enough liquidity to put down a 25% down payment, you will undoubtedly get a great invesment opportunity along with the Greenwich lifestyle many find so appealing. This may well be one of the best opportunities any buyer, but especially first time buyers, will have in years to come.
Posted by: Kaye
on Dec 11, 08 | 10:59 am
Fri Dec 05, 2008
OK, So We're in a Recession—-Ya Think?
The National Bureau of Economic Research, a private committe of economists, revealed this week that the US has been in a recession since late 2007. The the Dow dropped 680 points---isn't it amazing how well kept this secret was for nearly 12 months!
Data going back to post-WWII indicates that recessions last typically about 10 months. Some have lasted 16 months, some only 8 months. Let's assume worst case scenario for our exercise here.
It's possible that we're over the worst of it and we might just have a Spring market in Greenwich, CT in 2009. The quantitative research directors at NAR (much smarter than me) project that the recession will end between 2nd and 3rd quarters of 2009...of course, they don't live in Fairfield or Westchester counties and still have jobs. And more importantly, there is no such thing as a national real estate market; all real estate markets are local and most of us are only interested in the one where we own property!
One of the best indicators of the Greenwich market is the inventory levels of 2007 vs. 2008. As of 12/1/08, there are 544 single family homes on the market versus 470 for the same time in 2007. That's a 15% increase in buyer selection. There are 195 active condo listings in 2008 versus 204 in 2007 at this same time---less than 5% more. So while there's not SO MUCH inventory, you should also know that it's partly because so many listings have expired and not returned to the market, yet...and don't forget, our Greenwich home sale units are down by 33% in 2008 as compared to 2007.
If you're a seller, you need to sharpen your pencil when pricing your property if you want to be one of the homes that sells in 1st quarter 2009. Interest rates are great now for buyers and I anticipate we'll see decent activity after 1/1/09, but only on the homes that are value priced---as one smart agent recently said, "Trust the market; we have savvy buyers here and they know value when they see it." I have always believed that our motivated buyers have studied their niche market of interest so intently that they know the minute trends often better than many agents.
Pricing will be the key to selling any property in 2009. Sellers, please don't be stubborn and chase the market down because in the long run, anyone who does will ultimately sell for less due to an extended period and all the headaches that entails!
Posted by: Kaye
on Dec 05, 08 | 2:49 pm
Fri Nov 14, 2008
DON’T LET TINY CLOSETS SHUT OUT BUYERS
Experts in home staging and closet organization share their best tips on how to make the most of sparse storage space.
By Kelly Quigley
Walk-in closets and roomy pantries are a necessity for many of today’s home buyers, who have lots of stuff and need a place to store it. So when your listing is lacking in storage space, you have a big challenge to overcome in order to maximize buyer appeal.
You’re most likely to encounter small storage areas in older homes, condominiums, and lofts. In many cases, the problem is compounded by cluttered living areas, as items that would normally be kept out of view become part of the décor.
“We’re a consumer society, and we have more stuff than ever before,” says professional organizer Barry Izsak, owner of Arranging It All in Austin, Texas. “Twenty or 30 years ago, people lived with less. They didn’t have three sets of dishes and 15 pairs of black shoes.”
But even tiny closets and other storage problems are surmountable after you get the sellers’ cooperation. Start by explaining to your sellers that all of their hard work purging and organizing will give them a head start on packing for the move — and will go a long way in winning over potential buyers, says Izsak, a former president of the National Association of Professional Organizers.
Izsak suggests telling sellers: “If a closet is packed to the gills, it’s only going to draw attention to how small it is. The smartest thing you can do is weed through what you have so the closets look ample, not overflowing.”
Apply the Two-Thirds Rule
Whether you’re facing a jam-packed closet in the bedroom, bathroom, or kitchen, you should ask sellers to sift through their belongings and clean out everything that’s not used regularly. “A rule of thumb is to have closets no more than two-thirds full,” says Terrylynn Fisher, CRS®, GRI, a broker with Diablo Realty in Walnut Creek, Calif.
Fisher, who’s also a trained staging expert, says prospective buyers should be able to look inside a closet and think: “I have more stuff than this. But there is extra room in the closet, so surely my things will fit.”
Bedroom closets, which can make or break a sale, need special attention when they’re on the small side. That means removing clothes, shoes, and bulky jackets that are out of season or worn only on formal occasions. “It’s a fact that most people wear 20 percent of their clothes 80 percent of the time,” Izsak says.
But sometimes it’s not just clothes and shoes clogging up a closet. Ramona Creel — a professional organizer in the Washington, D.C., area who has worked with home owners and real estate practitioners to get homes in shape for sale — says purses, hats, and sports equipment also are commonly misplaced in bedroom closets — making the space seem smaller than it really is.
Box It Up, Move It Out
If the extra items can’t be moved to an emptier closet in the home, they should be packed away in labeled storage boxes, which can be neatly stored under the bed, in the garage, or in a basement. But if these options aren’t feasible, which often is the case in condos, consider doing what Fisher encourages her sellers to do: rent storage space.
The cost of storage is usually well worth the improved appearance of closets and other cluttered areas of the home, she says.
What if sellers have weeded out clothes they don’t wear and closets are still packed? Make sure drawer space, hanger space, and shelving in the bedroom are being used wisely, Izsak says. Jeans and tee-shirts that are hanging in the closet are prime candidates for moving to the drawers — if there’s space.
Sellers also can consider buying an inexpensive closet organizer that can double a closet’s capacity. Many discount stores and online retailers sell rods for less than $20 that hang from the existing closet rod and create a second level of hanging space.
Declutter Kitchens, Baths, and Beyond
You can encounter closet challenges in virtually any room of a house. In each instance, follow the same advice given for bedroom closets: clear out the items that aren’t used often and box them up for storage, either on-site or off-site.
In the kitchen, have sellers pack up their little-used pots, pans, and other cooking utensils that fill up valuable cabinet space. Non-perishables can be donated to a local food bank or stored in boxes in a less conspicuous part of the house. Pot racks are a viable option for some, but not for all. “You have to have nice-looking pots,” Fisher says. Otherwise, they can work against you.
For overstuffed bathroom closets and shelves, sellers should remove extra towels and toiletries. If a bathroom lacks a closet or shelf space, you must find innovative ways to make sure sparse storage isn’t the first thing a potential buyer notices. Fisher has placed rolled-up towels in iron wine racks, while Iszak relies heavily on decorative baskets to group small items.
“It looks pretty to the eye, but it serves a very functional purpose,” Izsak says.
An excess of toys can be a big problem in kids’ closets. Under-the-bed trundles can store toys out of sight, as can attractive storage bins and toy chests — which can double as benches or tables in the bedroom or playroom. Parents can work with their kids to cut down on the number of toys in the room by donating them to charity or boxing them up.
Details That Make a Great Impression
Your next task is to attend to details that make a storage area go beyond looking ample to truly shine. Experts say it helps to paint the inside of closets a bright, neutral color and to clean the lighting fixtures so the space won’t appear dark and dingy.
Creel, who runs the Web site OnlineOrganizing.com, says quality hangers also improve the look. “It’s amazing what a difference consistently sized and shaped hangers can make,” she says.
Toss out the wire hangers and put those big bulky suit hangers in storage, Creel says. Instead, use plastic tubular hangers, which can be purchased in bulk from almost any discount retailer. Izsak suggests taking it a step further by grouping similar clothing items together and facing the same direction.
If a seller decides to empty out closets entirely before showings, it’s smart to add a few decorative touches by hanging a dress and placing a hat box on the top shelf, Fisher says. Just as it’s smart to make sure closets are no more than two-thirds full, it’s also important that they’re not completely barren.
Always Think Creatively
With every home you list, you will face a unique situation that calls for a unique response. You’ll find that what works for one closet may not work for another closet. And some sellers surely will be harder to motivate than others.
One thing is certain: it’s always better to show off a home’s closets in their best light — even if they’re small — than it is to act as if the storage space is a downside of a property. As popular as walk-in closets are, some buyers may not be put off by smaller storage spaces.
As is the case in any other room of the house, if a small closet is “too cluttered and too personalized, buyers won’t be able to picture their belongings in your space,” Fisher says.
But by putting the best face on any small space, you should be on track for a successful home showing.
Please feel free to comment and/or send in your suggestions.
Posted by: Kaye
on Nov 14, 08 | 1:04 pm
Wed Oct 29, 2008
6 Key Facts About the First-Time Buyer Tax Credit
The tax credit may be enough of an incentive for potential buyers to jump off the fence even in Greenwich CT. That is, if you know about it. If you're thinking of helping your children buy a home, this may be a great advantage for them now.
The $7,500 home ownership tax credit that the federal government created earlier this year as part of the Housing and Economic Recovery Act (H.R. 3221) is another reason buyers should jump off the fence and get into the real estate market.
When you combine the tax credit with today’s low interest rates, wide selection of for-sale inventory, and affordable home prices, many of the pieces are in place for your customers to buy now. But tax credits can be confusing. To help you understand how the credit works and why it would help them, you must learn the details.
Here are 6 things buyers should know:
1. Buyers have until July 2009 to make a purchase that qualifies.
The tax credit was passed in July of this year as part of the Housing and Economic Recovery Act (H.R. 3221). It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if your customers wait to buy in the first half of 2009 they can take the credit on their 2009 tax return. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.
2. Buyers don't really have to be "first-timers."
The tax credit is actually available to any individual or household that hasn’t owned a home for at least three years. And the NATIONAL ASSOCIATION OF REALTORS® has asked Congress to expand the credit to all buyers, not just those who haven't owned a primary residence in recent years.
3. Even if buyers exceed the income limit, they can benefit from the credit.
The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500. Sounds like a great deal. But what if you make more money than the income limit of $75,000 for individuals and $150,000 for households? Good news: Individuals whose income exceeds the $75,000 limit but don't make more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000. By the way, any house is eligible as long as it’s a primary residence and is in the United States.
4. Think of it as an interest-free loan.
The federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable. NAR is pushing congress to remove the repayment provision, making this tax credit a true tax credit rather than an interest-free loan.
5. You don't have to be authorized before making a home purchase.
There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.
6. New-home construction qualifies.
For a home that a buyer constructs, the purchase date is the first date the buyer occupies the home.However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.
As mentioned above, NAtional Association of Realtors has asked Congress to do away with the repayment provision of the first-time buyer tax credit and expand the credit to all home buyers, not just first-timers. The proposals were part of a four-point housing stimulus plan the association submitted in mid-October.
“Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible,” said NAR President Richard F. Gaylord. “It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans.
Use the following link to see a chart recapping this info---
http://www.realtor.org/GAPublic.nsf/files/chart_homebuyer_tax_credit_.pdf/$FILE/chart_homebuyer_tax_credit_.pdf
From Realtor Magazine
By Robert Freedman | November 2008
Posted by: Kaye
on Oct 29, 08 | 2:02 pm
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