Matt Bower, Daily Times
04/14/2007
WARWICK - The cold weather yesterday wasn't enough to stop the hammers of Ron Phipps and a crew of more than 50 volunteers as they worked to complete a "house-in-a-box" to help survivors of Hurricane Katrina.
Once the house is complete, it will be shipped to the Gulf Coast for assembly. It is just one of 54 planned homes being built for survivors of the hurricane through a national campaign known as Operation Home Delivery, the brainchild of Phipps.Phipps, a Warwick resident, board member and past president of the Rhode Island Association of Realtors, said the plan came to him after speaking with a close friend of his, Marine J. Danny Cooper, an executive officer with the Alabama Association of Realtors."We were at a meeting in Washington, D.C., about six months after Katrina had hit and I said to him, 'So is everything back on track now,' and he said to me, 'Oh no Ron, disaster is starting to unfold now,'" Phipps said. After learning from Cooper that families in the Gulf Coast region were still struggling and dealing with the effects of Katrina, Phipps started to work with the National Association of Realtors (NAR) and Habitat for Humanity to come up with a way the agencies could help those families."We have a relationship with Habitat where we typically build one house per year with them, but for this cause we decided to do one per state," he said. Phipps said using the Operation Home Delivery program, the National Association of Realtors encouraged realtor associations throughout the country to sponsor and build a new home for victims of Katrina."It was really important last year when [Realtor associations] raised $70,000 in each state, especially for Rhode Island, because there are only 5,200 Realtors here, so that was a big deal," he said.Phipps said it costs $75,000 in materials alone to construct one "house-in-a-box," but he said realtor organizations across the country have raised more than $4.6 million with $270,000 coming from Habitat for Humanity. Every penny goes directly to the victims in need, he said.Phipps said there will be 54 houses in total; one from each state plus four more for four extra territories."I may have initiated this cause, but the Rhode Island Association of Realtors and NAR made this inspiring campaign possible," said Phipps, the New England-endorsed candidate for the president of the National Association of Realtors in 2011. "By combining our compassion, our vision and our sweat, I knew we could do something meaningful for Katrina victims."Phipps said not all of the houses will be built outside the area, as some Realtor associations, such as those in Massachusetts and Connecticut, have gone down to the region and helped build homes on site."Realtors have hearts of gold. We're in the shelter business, we're fixers and we're doers," he said.That good-will spirit was on display in New Orleans during a Realtor convention when thousands of Realtors donated their time to help the city, according to Ken Libby, owner of Stowe Realty in Vermont and vice president of the New England Region of Realtors."Twenty-eight thousand Realtors volunteered 8,600 hours of their time to help rebuild the city," said Libby.Phipps, who also visited New Orleans, said the level of devastation there was overwhelming. If one were to take all the houses in Vermont and shipped them down to the Gulf Coast, that number would be equal to the number of homes that were destroyed in the hurricane," Libby said."When you go block after block of empty, destroyed houses for miles, you can't help but have a great sense of loss. The thought of not doing anything about it doesn't even cross your mind," he said. "The lesson of this project is that we'll positively influence the lives of 54 families with the work we're doing."Phipps said he was there when a mother and her two daughters moved into the first completed home that was built in New Orleans last November."I felt like a proud parent to see the looks on their faces," he said. "People came together to do great things and everyone shared in the responsibility of making that happen."Phipps led volunteers from the Rhode Island Association of Realtors and from the Providence Chapter of Habitat for Humanity in a "wall-raising" ceremony yesterday morning to commemorate the program, which started in February 2006, he said."All houses will be built and delivered by the end of 2007," he said.
©Kent County Daily Times 2007
For more information please log onto www.phippsrealty.com
Saturday, April 14, 2007
Rhode Island Realtors Build Habitat House for Gulf
Phipps drives to build homes for Katrina victims
THE Warwick BEACON :
Written by SIBIELSKI, REBECCA
Thu, Apr 12 07
By REBECCA SIBIELSKI
“This is what realtors are all about. We are in the shelter business,” says Ron Phipps, national director of the National Association of Realtors (NAR).
Phipps talked this week about his involvement in building houses for Hurricane Katrina victims through a project called Operation Home Delivery. Phipps, along with the Rhode Island Association of Realtors (RIAR) and realtor associations across the country, is lending his hands to bring relief to the victims.
Phipps, the driving force behind the project, became involved shortly after he was appointed an NAR liaison for housing and diversity. He was attending an orientation at the Washington, D.C., headquarters about a month after Katrina when he bumped into a friend, former Marine Danny Cooper.
Cooper told Phipps that the disaster was continuing to unfold after the storm had passed. The impact was felt and the strong, stoic Marine cried as he put into words the overwhelming human loss.
Phipps, deeply affected by the aftermath of Katrina, began to work closely with the NAR to create a national program encouraging every realtor association across the country to take part in raising funds to build a new home for survivors, with the objective to build 54 homes by December 2007.
Faced with an estimated $3.75 million budget, a leadership committee consisting of volunteer realtors from all around the nation joined together to come up with a way to raise money. The Realtor Relief Fund agreed to contribute $5,000 per house and The Realtor Foundation donated the remaining amount with money they collected for charity.
To date there have been 48 houses funded with six more to go.
Today and tomorrow (a tent has been erected so that the work can proceed in the anticipated snow and rain) from 7:30 a.m. to dusk, volunteers from RIAR will join forces with Habitat for Humanity Providence Chapter in building a new “House-in-a-Box” that will be shipped to one of four locations in the Gulf Coast that were affected by Hurricane Katrina. Starting today participants will begin preliminary work on the houses and on Friday they will put together the exterior of a house to determine that the measurements are exact. The house will then be disassembled and shipped to a location to be erected in either Louisiana, Alabama, Mississippi or Texas. Beginning at 10 a.m. on Friday, Phipps will lead more than 30 RIAR volunteers in commemorating the event with a “wall-raising” ceremony at their parking lot, 100 Bignall St. in Warwick.
Phipps said that although he may have proposed the concept, it was the hard work of thousands of realtors that made the project possible. “The process took a long time and it was a lot of work, but we all made it happen,” said Phipps.
Phipps, along with other participants, has left messages on the houses he has worked on. The date, place the house was built, good luck notes and other inspirational messages will stay on the exterior until the house is completed.
When the idea was first proposed, some people questioned what difference 54 houses would make when there was an estimated need for 100,000. Phipps’ response was simple. “You have the ability to positively alter the lives of these families. When you see a little girl holding her doll in her arms, ready to move into her new home, you can’t help but be touched by what you’ve done.”
Chelo’s Bar and Grill, Big Fish, and Dunkin’ Donuts will provide food and refreshments for volunteers. Anyone interested in participating in the event can contact the RIAR at 785-3650.
For more information please log onto www.phippsrealty.com
THE Warwick BEACON :
Written by SIBIELSKI, REBECCA
Thu, Apr 12 07
By REBECCA SIBIELSKI
“This is what realtors are all about. We are in the shelter business,” says Ron Phipps, national director of the National Association of Realtors (NAR).
Phipps talked this week about his involvement in building houses for Hurricane Katrina victims through a project called Operation Home Delivery. Phipps, along with the Rhode Island Association of Realtors (RIAR) and realtor associations across the country, is lending his hands to bring relief to the victims.
Phipps, the driving force behind the project, became involved shortly after he was appointed an NAR liaison for housing and diversity. He was attending an orientation at the Washington, D.C., headquarters about a month after Katrina when he bumped into a friend, former Marine Danny Cooper.
Cooper told Phipps that the disaster was continuing to unfold after the storm had passed. The impact was felt and the strong, stoic Marine cried as he put into words the overwhelming human loss.
Phipps, deeply affected by the aftermath of Katrina, began to work closely with the NAR to create a national program encouraging every realtor association across the country to take part in raising funds to build a new home for survivors, with the objective to build 54 homes by December 2007.
Faced with an estimated $3.75 million budget, a leadership committee consisting of volunteer realtors from all around the nation joined together to come up with a way to raise money. The Realtor Relief Fund agreed to contribute $5,000 per house and The Realtor Foundation donated the remaining amount with money they collected for charity.
To date there have been 48 houses funded with six more to go.
Today and tomorrow (a tent has been erected so that the work can proceed in the anticipated snow and rain) from 7:30 a.m. to dusk, volunteers from RIAR will join forces with Habitat for Humanity Providence Chapter in building a new “House-in-a-Box” that will be shipped to one of four locations in the Gulf Coast that were affected by Hurricane Katrina. Starting today participants will begin preliminary work on the houses and on Friday they will put together the exterior of a house to determine that the measurements are exact. The house will then be disassembled and shipped to a location to be erected in either Louisiana, Alabama, Mississippi or Texas. Beginning at 10 a.m. on Friday, Phipps will lead more than 30 RIAR volunteers in commemorating the event with a “wall-raising” ceremony at their parking lot, 100 Bignall St. in Warwick.
Phipps said that although he may have proposed the concept, it was the hard work of thousands of realtors that made the project possible. “The process took a long time and it was a lot of work, but we all made it happen,” said Phipps.
Phipps, along with other participants, has left messages on the houses he has worked on. The date, place the house was built, good luck notes and other inspirational messages will stay on the exterior until the house is completed.
When the idea was first proposed, some people questioned what difference 54 houses would make when there was an estimated need for 100,000. Phipps’ response was simple. “You have the ability to positively alter the lives of these families. When you see a little girl holding her doll in her arms, ready to move into her new home, you can’t help but be touched by what you’ve done.”
Chelo’s Bar and Grill, Big Fish, and Dunkin’ Donuts will provide food and refreshments for volunteers. Anyone interested in participating in the event can contact the RIAR at 785-3650.
For more information please log onto www.phippsrealty.com
Monday, April 02, 2007
Spring Real Estate Forcast
Finally the winter is waning and spring is waxing! The real estate market wanes and waxes like the moon and ebbs and flows like the tide. 2007 will be no exception. This past winter has been particularly challenging as it started very gentle and February was brutally cold. The local real estate market has calmed down over the winter months, but the real indicators of the market are about the present themselves. Among the elements that impact the market are perception, the amount of inventory, the cost of mortgage money, the availability of money, the reasonableness of buyers and sellers, the number of foreclosures, and fundamental demographics. One must remember that real estate is local, and probably more local than any other financial indicator, because real estate is fixed. It is located where it is! Unlike buyer and sellers and their money, the real estate stays where it is. Sometimes we forget the most obvious things, simply because they are obvious; location, location, location.
Perception: How buyers, sellers, homeowners, renters, economists, reporters, and financial advisers perceive real estate impacts its value directly. Over the past year, and since August of 2005 in Rhode Island, real estate has lost some of its shine. Part of the reason is the fundamental of real estate. Price/Value ebb and flow. The value has been ebbing despite the fact that people need shelter. It is a basic human need. While value may be adjusting downward, the correction is modest. Moreover, as prices come down, more people can purchase homes. In short, it minimizes the over all change.
Amount of Inventory: The number of houses is lower right now than the end of last year, but we expect more houses to come on the market creating an oversupply. This will put additional pressure on prices.
Cost of Money: Thirty year fixed rate mortgages are still in the 6.2% range. This is very competitive, particularly for those of us who worked with 18-20% thirty year fixed rate mortgage back in the early 1980s. Projections for this year suggest that cost money will remain very competitive.
Availability of Money: Less money will be available because of the sub-prime mortgage crisis. Over the past ten years, people with poor credit and limited cash were able to obtain mortgage money based on non-verified information, i.e. income, cash on hand, etc. Many of these mortgages were adjustable rate mortgages. When the interest rate went up, the buyers could no longer afford to keep the property. This readily available supply of ‘easy’ money is gone. The net impact will be less money for first time and marginal buyers. People with good credit, will however, be able to find mortgage money to be there when they need it.
Reasonableness of Buyers and Sellers: The buyers have had a very good handle on the change in the market over the past year. The sellers have, however, been living in nostalgia. The values have corrected and many sellers believe that we are still in 2004. The difference in understanding of the market had lead to a communication gap. The sellers and buyers were speaking different languages. Average sales price went from $282,900 in 2005 to $282,500 in 2006, but the number of sales dropped from 10,000 single family homes to 8600. Many sellers have been unwilling to take less to sell their homes. Spring 2007 has suggested that sellers have the message and are speaking the language of the market. Fair value-fair price equal a sale.
The Number of Foreclosures: Unfortunately, we will have a record number of foreclosures this year. On one hand it provides buyers with a great opportunity to buy at less than fair market value. On the other, it will lower the average sales price after the post foreclosed property is sold. Additionally, it will cause some buyers to pause in anticipation that the market will correct further. For market analysis purposes, these transactions need to be put in appropriate context. They are not arms-length, fair market value transactions. The number of foreclosures does not speak to the human cost to those families who loose their homes.
Fundamental Demographics: All real estate is local. One must look at the demographics. Our population is stable and family size continues to shrink which increases the demand for housing. The number of new housing units in our area, while still increasing, is increasing at a much slower rate. Our value is also significantly less than metro Boston, fifty miles away. The creation of new jobs in Rhode Island has been encouraging as well. The aging of the population will also influence the health of our market.
In conclusion, the real estate market is leaping into spring. We will have some storms, but overall the real estate climate is going to be livable.
Ron Phipps, CRS, ePro, GRI
For more information please log onto www.phippsrealty.com
Perception: How buyers, sellers, homeowners, renters, economists, reporters, and financial advisers perceive real estate impacts its value directly. Over the past year, and since August of 2005 in Rhode Island, real estate has lost some of its shine. Part of the reason is the fundamental of real estate. Price/Value ebb and flow. The value has been ebbing despite the fact that people need shelter. It is a basic human need. While value may be adjusting downward, the correction is modest. Moreover, as prices come down, more people can purchase homes. In short, it minimizes the over all change.
Amount of Inventory: The number of houses is lower right now than the end of last year, but we expect more houses to come on the market creating an oversupply. This will put additional pressure on prices.
Cost of Money: Thirty year fixed rate mortgages are still in the 6.2% range. This is very competitive, particularly for those of us who worked with 18-20% thirty year fixed rate mortgage back in the early 1980s. Projections for this year suggest that cost money will remain very competitive.
Availability of Money: Less money will be available because of the sub-prime mortgage crisis. Over the past ten years, people with poor credit and limited cash were able to obtain mortgage money based on non-verified information, i.e. income, cash on hand, etc. Many of these mortgages were adjustable rate mortgages. When the interest rate went up, the buyers could no longer afford to keep the property. This readily available supply of ‘easy’ money is gone. The net impact will be less money for first time and marginal buyers. People with good credit, will however, be able to find mortgage money to be there when they need it.
Reasonableness of Buyers and Sellers: The buyers have had a very good handle on the change in the market over the past year. The sellers have, however, been living in nostalgia. The values have corrected and many sellers believe that we are still in 2004. The difference in understanding of the market had lead to a communication gap. The sellers and buyers were speaking different languages. Average sales price went from $282,900 in 2005 to $282,500 in 2006, but the number of sales dropped from 10,000 single family homes to 8600. Many sellers have been unwilling to take less to sell their homes. Spring 2007 has suggested that sellers have the message and are speaking the language of the market. Fair value-fair price equal a sale.
The Number of Foreclosures: Unfortunately, we will have a record number of foreclosures this year. On one hand it provides buyers with a great opportunity to buy at less than fair market value. On the other, it will lower the average sales price after the post foreclosed property is sold. Additionally, it will cause some buyers to pause in anticipation that the market will correct further. For market analysis purposes, these transactions need to be put in appropriate context. They are not arms-length, fair market value transactions. The number of foreclosures does not speak to the human cost to those families who loose their homes.
Fundamental Demographics: All real estate is local. One must look at the demographics. Our population is stable and family size continues to shrink which increases the demand for housing. The number of new housing units in our area, while still increasing, is increasing at a much slower rate. Our value is also significantly less than metro Boston, fifty miles away. The creation of new jobs in Rhode Island has been encouraging as well. The aging of the population will also influence the health of our market.
In conclusion, the real estate market is leaping into spring. We will have some storms, but overall the real estate climate is going to be livable.
Ron Phipps, CRS, ePro, GRI
For more information please log onto www.phippsrealty.com
Saturday, March 10, 2007
20 steps to get the best deal on a home in 2007
When it comes to real estate, timing is everything. And if you're buying this year, your timing is perfect.
For most homes in most areas, it's a buyer's market. That means you'll see plenty of houses on the market with prices that have slowed, stabilized or, in some places, even declined. And motivated buyers will likely be more amenable to making concessions.
"For someone who's been sitting on the sidelines, it's a great time to buy," says Eric Tyson, co-author of "Home Buying for Dummies."
The biggest problem many buyers may encounter: too many choices. But that's not a bad problem to have, says Colby Sambrotto, chief operating officer of ForSaleByOwner.com "See everything in your price range so you can make an informed decision," he says.
Spring and summer tend to be the prime home-buying season. And in many markets, buyers will have a lot of options. Want to make sure you get the best home for you? Here are 20 steps to help you get the best deal on a home this year:
For most homes in most areas, it's a buyer's market. That means you'll see plenty of houses on the market with prices that have slowed, stabilized or, in some places, even declined. And motivated buyers will likely be more amenable to making concessions.
"For someone who's been sitting on the sidelines, it's a great time to buy," says Eric Tyson, co-author of "Home Buying for Dummies."
The biggest problem many buyers may encounter: too many choices. But that's not a bad problem to have, says Colby Sambrotto, chief operating officer of ForSaleByOwner.com "See everything in your price range so you can make an informed decision," he says.
Spring and summer tend to be the prime home-buying season. And in many markets, buyers will have a lot of options. Want to make sure you get the best home for you? Here are 20 steps to help you get the best deal on a home this year:
1. Know your score. Pull your credit report and purchase your credit scores. "It's especially critical this year because the government has started cracking down on mortgage lenders offering nonstandard financing," says Chicago-area attorney Diana Brodman Summers, author of "How to Buy Your First Home." A small change in your credit rating can make a big difference in the amount you pay for your home over the life of a loan, or even whether you'll be offered a loan at all.
Do this early because if you find mistakes that lowered your score, you'll need time to correct the record before you apply for financing. And, if you find that your scores are correct, but lower than you expected, you can change your habits, pay down some balances and rack up a few more months of good marks on the record before you obtain financing.
2. Get preapproved for a mortgage. Preapproved, not prequalified. Prequalified simply means you're good for the loan -- if your income, debts, credit and other factors are exactly as you stated and can be documented. In other words, it's more like wishful thinking. Preapproved means these things have already been checked and verified. This is always a good idea in any market, especially now. Along with a lot of housing choices, there are many more selections on the mortgage menu in recent years too, says Tyson. Sorting out the mortgage first will let you concentrate solely on the loan terms, without the added pressure to choose something quickly or risk losing your "dream house." Since you're likely to have more options in terms of properties, this step will also help you narrow the field to only those homes you can truly afford.
3. Determine your dollar limit. Decide how much you want to pay, not just how much you can pay. The maximum for which you qualify isn't automatically the amount you want to spend, says Summers. You may want to buy less house to allow for a future where one of you might want to stay home with the kids or make a career change. "Everyone would like to see you move into a bigger house -- they would get a bigger fee," says Summers. "But that's no good if you're miserable." And if you get overextended and life throws you a curve, like a job loss or family illness, "you have to have a fudge factor," she says.
Do this early because if you find mistakes that lowered your score, you'll need time to correct the record before you apply for financing. And, if you find that your scores are correct, but lower than you expected, you can change your habits, pay down some balances and rack up a few more months of good marks on the record before you obtain financing.
2. Get preapproved for a mortgage. Preapproved, not prequalified. Prequalified simply means you're good for the loan -- if your income, debts, credit and other factors are exactly as you stated and can be documented. In other words, it's more like wishful thinking. Preapproved means these things have already been checked and verified. This is always a good idea in any market, especially now. Along with a lot of housing choices, there are many more selections on the mortgage menu in recent years too, says Tyson. Sorting out the mortgage first will let you concentrate solely on the loan terms, without the added pressure to choose something quickly or risk losing your "dream house." Since you're likely to have more options in terms of properties, this step will also help you narrow the field to only those homes you can truly afford.
3. Determine your dollar limit. Decide how much you want to pay, not just how much you can pay. The maximum for which you qualify isn't automatically the amount you want to spend, says Summers. You may want to buy less house to allow for a future where one of you might want to stay home with the kids or make a career change. "Everyone would like to see you move into a bigger house -- they would get a bigger fee," says Summers. "But that's no good if you're miserable." And if you get overextended and life throws you a curve, like a job loss or family illness, "you have to have a fudge factor," she says.
4. Make a list, check it twice. Another way to narrow your search in a market with many choices is to really zero in on the individual features of your future home. Which items do you really need? Which do you merely want? Which don't matter? And what would be a deal-breaker? "You've got to make sure that what you're looking for is really what you want," says Patricia Fitzgerald, broker/owner of Coastal Properties in Jupiter, Fla. If you're buying the home with a spouse, make up your own separate lists first, then try to integrate them. That way, you approach sellers and agents as a united front -- and you're more likely to get what you want.
5. Do your homework. If there are communities you like, do the in-depth research now. Buyers, especially in a market with a lot of choices, "get caught up in finding the 'perfect house,' and don't do their research," says Tyson. Instead, "you want to be able to take advantage of the fact that we've got a lot of choices."
Study the quality and cost of living. If you're semi-local, shop in the community for a week or so. Buy groceries, gas and all the little necessities in the same places you'd patronize if you already lived there. Sample the way of life by checking out things you use, like libraries, health clubs, bookstores, restaurants and movie theaters.
Test the commute. It's one thing to drive an area on Sunday morning and look at homes. It's another to roll out of the driveway at 7 a.m. Monday morning and fight commuter traffic. So drive it during rush hour. And if you want to use public transportation, check out those options, too.
Scope out the schools. If you have kids, or are planning a family, research the neighborhood schools. What do they look like, and what kind of reputation and scores do they enjoy?
Read the newspaper. Almost every community has a local paper. Subscribe -- via mail or online, and keep up with the local happenings. From water quality to zoning, you're likely to get the inside information you really don't get anywhere else.
5. Do your homework. If there are communities you like, do the in-depth research now. Buyers, especially in a market with a lot of choices, "get caught up in finding the 'perfect house,' and don't do their research," says Tyson. Instead, "you want to be able to take advantage of the fact that we've got a lot of choices."
Study the quality and cost of living. If you're semi-local, shop in the community for a week or so. Buy groceries, gas and all the little necessities in the same places you'd patronize if you already lived there. Sample the way of life by checking out things you use, like libraries, health clubs, bookstores, restaurants and movie theaters.
Test the commute. It's one thing to drive an area on Sunday morning and look at homes. It's another to roll out of the driveway at 7 a.m. Monday morning and fight commuter traffic. So drive it during rush hour. And if you want to use public transportation, check out those options, too.
Scope out the schools. If you have kids, or are planning a family, research the neighborhood schools. What do they look like, and what kind of reputation and scores do they enjoy?
Read the newspaper. Almost every community has a local paper. Subscribe -- via mail or online, and keep up with the local happenings. From water quality to zoning, you're likely to get the inside information you really don't get anywhere else.
6. Hire a buyer's agent. A good real estate agent can help you focus your search and avoid the pricing pitfalls. Ideally, you want "someone patient, someone focused on the neighborhood you're interested in," says Tyson. Talk to several agents. "Have they taken advanced classes or received a designation?" says Fitzgerald. "Is it somebody that you feel comfortable with, somebody who's going to listen to your needs? Is what you're looking for what they're showing you?" Don't fall victim to the trap that you can save money by not using an agent. The seller, after all is paying that agent in most cases, and even if there's only half a commission involved, don't you think the seller wants to save that same amount you have your eye on?
7. Don't trash the house. It's become almost routine to point out all the things you don't like about a house to shake the seller's confidence and try and bring down the price. This can be a crucial mistake. First, it makes them angry. Second, once you've insulted their house (and them), it's going to be tougher to get them to negotiate a good price. If you're at the stage where you're making an offer, but there are details you really can't live with, be tactful and kind, says Ron Phipps, broker with Phipps Realty in Warwick, R.I. Instead of declaring that their 1950s kitchen is horrible, say "I understand the kitchen is original." Then follow with something along the lines of "obviously, competing houses have been updated and that would be a priority for me," says Phipps.
8. Study comparables. Do this before making a first offer. When you look at the comps (which should be within six months and ideally within three months), what's the relationship between the list price and the sales price? That's going to give you a good idea of just how much room you have to bargain. And just how much your first offer cuts from the asking price can vary with the town, neighborhood and price range. "In some areas of the state, people wouldn't be distraught," at an offer than came in 15 percent to 20 percent below the asking price, says Phipps. "In my area, the sellers would be offended and you wouldn't get a counter offer." And that's why it can pay to have a professional on your side. Especially in today's market, "you need a buyer's agent to explain the nuances of the market," he says.
9. Stay current. Keep up with the market while you're shopping. In the areas you like, watch the for-sale signs go up and come down. How long are homes staying on the market? Look at the listing for the asking prices. Comb the local paper to see what they actually bring when they're sold. What's the relationship between sales price, value and asking price? The trends you see can really help when it's time for you to make those offers.
7. Don't trash the house. It's become almost routine to point out all the things you don't like about a house to shake the seller's confidence and try and bring down the price. This can be a crucial mistake. First, it makes them angry. Second, once you've insulted their house (and them), it's going to be tougher to get them to negotiate a good price. If you're at the stage where you're making an offer, but there are details you really can't live with, be tactful and kind, says Ron Phipps, broker with Phipps Realty in Warwick, R.I. Instead of declaring that their 1950s kitchen is horrible, say "I understand the kitchen is original." Then follow with something along the lines of "obviously, competing houses have been updated and that would be a priority for me," says Phipps.
8. Study comparables. Do this before making a first offer. When you look at the comps (which should be within six months and ideally within three months), what's the relationship between the list price and the sales price? That's going to give you a good idea of just how much room you have to bargain. And just how much your first offer cuts from the asking price can vary with the town, neighborhood and price range. "In some areas of the state, people wouldn't be distraught," at an offer than came in 15 percent to 20 percent below the asking price, says Phipps. "In my area, the sellers would be offended and you wouldn't get a counter offer." And that's why it can pay to have a professional on your side. Especially in today's market, "you need a buyer's agent to explain the nuances of the market," he says.
9. Stay current. Keep up with the market while you're shopping. In the areas you like, watch the for-sale signs go up and come down. How long are homes staying on the market? Look at the listing for the asking prices. Comb the local paper to see what they actually bring when they're sold. What's the relationship between sales price, value and asking price? The trends you see can really help when it's time for you to make those offers.
10. Determine the real value of the property. Buyers sometimes focus on how large an offer it will take to "get" the home, and lose site of what it's actually worth. But before you make an offer, sit down and determine, based on tax records, which can often be found online, comparables and the other data, just how much is the property actually worth? Then analyze the relationship between the actual value of similar houses and their selling prices. Often there's a pattern, and that can help you too, says Phipps. In addition, knowing the home's real value serves as a good touchstone to keep you grounded during negotiations.
11. Research the sellers. Are they motivated? Do they have to move by a certain date? While your offer should be determined by how much the house is worth, "There's nothing wrong with doing some intelligence on the seller and using that to your advantage," says Phipps. Your best source: the agent or the sellers themselves. If the listing agent or the sellers are at home when you view the property try to engage them in small talk. Ask them where they're going and why. "It's amazing how many sellers and agents volunteer a lot," says Phipps. A buyer's agent can also help in that area too, says Tyson." Your agent should do as much inquiring as possible on the sellers and their situation," says Tyson. While you do have to get a handle on why they're selling, "If you lowball someone, they're not going to think you're serious," he says.
12. Look at the real numbers. Was it for sale by owner? Have the sellers used other agents? And how long has it really been on the market? The current listing may show that the home has only been on the market two weeks. But it may not show that it's been on the market before -- and recently. Some agents will pull a property off the MLS, and then put it back on the market to reset the clock, says Phipps. A buyer's agent can look at the listing records and determine just how long, in total, these owners have been trying to sell that home. And that can make a big difference in the offer you make.
13. Leave room for a second offer. Many sellers will assume that if you knock $20,000 off the price the first time around, you're looking for a counteroffer that will reduce the asking price by $10,000, says Phipps. But it's a fine line to walk. Offer too little and they won't believe you're a serious buyer; too high and you leave little room to negotiate.
11. Research the sellers. Are they motivated? Do they have to move by a certain date? While your offer should be determined by how much the house is worth, "There's nothing wrong with doing some intelligence on the seller and using that to your advantage," says Phipps. Your best source: the agent or the sellers themselves. If the listing agent or the sellers are at home when you view the property try to engage them in small talk. Ask them where they're going and why. "It's amazing how many sellers and agents volunteer a lot," says Phipps. A buyer's agent can also help in that area too, says Tyson." Your agent should do as much inquiring as possible on the sellers and their situation," says Tyson. While you do have to get a handle on why they're selling, "If you lowball someone, they're not going to think you're serious," he says.
12. Look at the real numbers. Was it for sale by owner? Have the sellers used other agents? And how long has it really been on the market? The current listing may show that the home has only been on the market two weeks. But it may not show that it's been on the market before -- and recently. Some agents will pull a property off the MLS, and then put it back on the market to reset the clock, says Phipps. A buyer's agent can look at the listing records and determine just how long, in total, these owners have been trying to sell that home. And that can make a big difference in the offer you make.
13. Leave room for a second offer. Many sellers will assume that if you knock $20,000 off the price the first time around, you're looking for a counteroffer that will reduce the asking price by $10,000, says Phipps. But it's a fine line to walk. Offer too little and they won't believe you're a serious buyer; too high and you leave little room to negotiate.
14. Have a backup plan. Don't set your mind on one house and say it's that or nothing. "It helps you remain more objective," says Phipps. And you won't get carried away and pay more for a house than the house is really worth. And if you are seriously considering other homes -- and could be just as happy with other choices, have your agent convey that point, says Phipps. Doing the negotiating yourself? Be respectful and honest. Alert the seller to that fact without threatening them with it. Something along the lines of "we're looking at two other houses, we know the numbers there are workable and we can get either at a good price." But don't say it if it isn't true.
15. Put all extras in your first offer. Negotiations are more elastic in the beginning, when the buyer and seller are most likely to want to reach an agreement, says Phipps. It's a lot easier to include that entire list of concessions or repairs in the beginning than to drop it in at the very end. And that list should include a warranty deed and title insurance, he says.
16. Don't let them play mind games. "If you make a good offer, within the realm of reasonable, and the seller rejects it outright, move on," says Phipps. Some sellers don't really want to sell. Others like to play games. And that just slows your search for a home. "In this market, it makes sense to take advantage of the breadth of inventory and deal with a seller who wants to sell," he says.
17. Surrender where you can. You're going to be dealing with the seller throughout the process, so on points where it really doesn't matter, giving ground can be smart, says Phipps.
18. Call your insurance agent. How will the neighborhoods you're shopping affect your home and auto premiums? Your agent will be happy to tell you. And it's even more important since some areas are seeing large increases in premiums in the wake of natural disasters. "It's free knowledge," says Summers. And like the price of groceries in your new community, "it all goes into the cost of living and you never think of it until you move there."
19. Call the power company. Look at your current power bill to see just how much juice you're using each month. Now call the would-be supplier in the neighborhood you're considering. How much would it charge for the same power? "It may require a little math," says Summers. But it can save you from sticker shock after the move.
20. Educate yourself. "Education is more valuable now," says Tyson. "People have trepidation and fear because they realize that real estate doesn't go up every year." But with low rates and decent prices on housing, he says, "it's a good opportunity to get into the market."
Dana Dratch is a freelance writer based in Atlanta. March 8th, 2007
15. Put all extras in your first offer. Negotiations are more elastic in the beginning, when the buyer and seller are most likely to want to reach an agreement, says Phipps. It's a lot easier to include that entire list of concessions or repairs in the beginning than to drop it in at the very end. And that list should include a warranty deed and title insurance, he says.
16. Don't let them play mind games. "If you make a good offer, within the realm of reasonable, and the seller rejects it outright, move on," says Phipps. Some sellers don't really want to sell. Others like to play games. And that just slows your search for a home. "In this market, it makes sense to take advantage of the breadth of inventory and deal with a seller who wants to sell," he says.
17. Surrender where you can. You're going to be dealing with the seller throughout the process, so on points where it really doesn't matter, giving ground can be smart, says Phipps.
18. Call your insurance agent. How will the neighborhoods you're shopping affect your home and auto premiums? Your agent will be happy to tell you. And it's even more important since some areas are seeing large increases in premiums in the wake of natural disasters. "It's free knowledge," says Summers. And like the price of groceries in your new community, "it all goes into the cost of living and you never think of it until you move there."
19. Call the power company. Look at your current power bill to see just how much juice you're using each month. Now call the would-be supplier in the neighborhood you're considering. How much would it charge for the same power? "It may require a little math," says Summers. But it can save you from sticker shock after the move.
20. Educate yourself. "Education is more valuable now," says Tyson. "People have trepidation and fear because they realize that real estate doesn't go up every year." But with low rates and decent prices on housing, he says, "it's a good opportunity to get into the market."
Dana Dratch is a freelance writer based in Atlanta. March 8th, 2007
Northeast home sales overcast but clearing
Excess inventory and a sluggish employment picture left the real estate market in the Northeast under overcast skies but forecasters see a break in the clouds on the horizon.
Slow building growth in the Northeast means the area's supply and demand "are reasonably in balance," says Bernard Markstein, senior economist with the National Association of Home Builders.
The Northeast has enjoyed "higher prices than the rest of the country," particularly New York, Boston and some areas of New Jersey, says Yun. A median priced home runs about $274,600 -- about 25 percent higher than the national median -- according to National Association of Realtors (NAR) data.
Even in those places, some excess inventory has left the market "a little soft" says Markstein.
"Things look sluggish, so the recovery will be a little slow," he says. "Job growth is below the national average."
At the start of 2007, inventory is about on par with the rest of the country, which means that at the current sales rate it would take roughly 7.2 months to sell all the homes currently on the market, says Lawrence Yun, a senior economist for the NAR.
And while that's high (anything over a six month supply signals a buyer's market), it's "not anywhere near alarming," Yun says. In addition, sales rates have also slowed. His prediction: a slower recovery than the nation as a whole.
Homeowners and sellers will likely enjoy a good forecast this year. While prices in the region were down about 5 percent on average for 2006, that's "at or near an end right now," By the end of 2007, the region should see average gains of 1 to 3 percent in value, matching the national trend.
Some areas are already looking up.
In Providence, "our market began to correct in August of 2005," says Ron Phipps, broker for Phipps Realty in Warwick, RI. Sales rates started to drop off last year "because buyers knew it was a buyer's market and sellers refused to acknowledge that," he says.
"The funny thing about that is it's not a huge swing from where they were," Phipps says.
In the Northeast, "most of the states are seeing a rebound of sales rates," says Ken Libby, a regional vice president for the NAR in New England.
In the region, "Boston had the toughest go of it during the summer," Libby says. "A significant increase in inventory" coupled with job pressure. But the market "has flattened out" now, he says.
Over 2006 "prices softened a little," in some areas of New England, says Libby, also the broker/owner of Stowe Realty in Stowe, Vt. Prices were up in Massachusetts, Connecticut, New Hampshire and Vermont just under or above 2 percent, he says.
He expects that sales in the region will increase. "This year, I think the prices have adjusted," says Libby. "I think the new listings coming on the market reflect the adjustment. I think we'll have an average year, if not above average."
Posted 8 March 2007 Dana Dratch Bankrate.com
Slow building growth in the Northeast means the area's supply and demand "are reasonably in balance," says Bernard Markstein, senior economist with the National Association of Home Builders.
The Northeast has enjoyed "higher prices than the rest of the country," particularly New York, Boston and some areas of New Jersey, says Yun. A median priced home runs about $274,600 -- about 25 percent higher than the national median -- according to National Association of Realtors (NAR) data.
Even in those places, some excess inventory has left the market "a little soft" says Markstein.
"Things look sluggish, so the recovery will be a little slow," he says. "Job growth is below the national average."
At the start of 2007, inventory is about on par with the rest of the country, which means that at the current sales rate it would take roughly 7.2 months to sell all the homes currently on the market, says Lawrence Yun, a senior economist for the NAR.
And while that's high (anything over a six month supply signals a buyer's market), it's "not anywhere near alarming," Yun says. In addition, sales rates have also slowed. His prediction: a slower recovery than the nation as a whole.
Homeowners and sellers will likely enjoy a good forecast this year. While prices in the region were down about 5 percent on average for 2006, that's "at or near an end right now," By the end of 2007, the region should see average gains of 1 to 3 percent in value, matching the national trend.
Some areas are already looking up.
In Providence, "our market began to correct in August of 2005," says Ron Phipps, broker for Phipps Realty in Warwick, RI. Sales rates started to drop off last year "because buyers knew it was a buyer's market and sellers refused to acknowledge that," he says.
"The funny thing about that is it's not a huge swing from where they were," Phipps says.
In the Northeast, "most of the states are seeing a rebound of sales rates," says Ken Libby, a regional vice president for the NAR in New England.
In the region, "Boston had the toughest go of it during the summer," Libby says. "A significant increase in inventory" coupled with job pressure. But the market "has flattened out" now, he says.
Over 2006 "prices softened a little," in some areas of New England, says Libby, also the broker/owner of Stowe Realty in Stowe, Vt. Prices were up in Massachusetts, Connecticut, New Hampshire and Vermont just under or above 2 percent, he says.
He expects that sales in the region will increase. "This year, I think the prices have adjusted," says Libby. "I think the new listings coming on the market reflect the adjustment. I think we'll have an average year, if not above average."
Posted 8 March 2007 Dana Dratch Bankrate.com
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