Joshua's Blog
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Are you facing foreclosure? Don't just walk away, here's why:
- Where you live -- In moving from a house to an apartment, landlords often pull credit before offering a lease agreement. Going from a house to a smaller apartment is a hard pill to swallow, having to move into an area where the landlord isn't concerned with a credit score could be a nightmare.
- Where you work -- While applying for a new job, employers often pull credit as well which might prevent potential candidates from being able to qualify.
- What you drive -- If/when buying a new car, both the loan rate and the insurance premium are affected by credit score.
- The simple act of getting a new cell phone contract can be denied by bad credit.
- The interest rate is at an all time low which should be bringing buyers out in droves.
- The combination of the interest rate and lower home prices (especially foreclosed properties) are helping first time home buyers out tremendously.
- Its the perfect time to buy up. For buyers looking to sell their home now and buy something larger, now is the perfect opportunity. Remind them that "an incoming tide, raises all ships" meaning if they want to wait to sell when the market is better, the market will be "better" for their new dream home and whatever percent of increase they get on their old home will translate to what increase they will have to pay on their new home costing them possibly 10's of thousands of dollars more.
- It is an investors paradise out there right now. With foreclosures hitting an all time high, investors are coming out of the woodwork. Find them, because they are looking.
Having had the opportunity to work with many sellers in dire straits, I can understand the potential of a foreclosure can be one of the most stressful times in a person's life. Harassing phone calls come multiple times throughout each day and demands become more and more bold. If a seller is unable to renegotiate their mortgage, the prospect of trying to get now, what they paid for their house in the last five is a near impossible task. It would feel easier just to pack up and walk out then to try and find a solution because for most people, it appears as though there are none.
A foreclosure will ruin your credit which will affect:
All of these issues will directly affect stability and quality of life. Explore the options, lenders don't want to foreclose. If renegotiation is an option, talk with a loan workout group who can offer all the details of a short sale (when the lien holder accepts less than what is owed in order to sell the property) possibility.
Need to know what your house is worth or if the local market has stabilized? Find out here.
Are you sure you want to buy "THAT" investment property?
When I first got in the business a little over six years ago, it was hard (but not impossible) to find an insurance company who would insure a home with knob-and-tube wiring. Well now, it's really hard to find that same coverage. Since I've been licensed, I've seen that same change in coverage concerning fuses vs. breakers. You can find the coverage, but now it's becoming less and less available. The change that I am starting to see now, is one that scares me quite a bit more than the other two. The issue--insurance companies not providing insurance on investment properties without a "lead-free" certificate. Now I am aware of the dangers of lead based paint, but eliminating coverage on homes with lead based paint is going to alienate a large portion of multi-family homes nationwide. We are seeing a huge influx in foreclosed multifamily homes in this area, if coverage can't be obtained, does the bank let them go at yard sale prices or do they let them fall into disrepair, stay as a non-performing asset and devalue an entire neighborhood? Abatement isn't cheap, so check with your insurance agency before you put that next investment under contract.
If you found this article helpful, check out this other potential nightmare when buying foreclosed property.
Joshua Matthews-Keller Williams Coastal Realty
Potential NIGHTMARE when buying FORECLOSED property
Having represented dozens of buyers purchasing short-sale and foreclosed properties and having the opportunity to review more than a hundred purchase and sale addendums offered by banks (take a look at my earlier blogs: Bank Trick #1, Bank Trick #2, Bank Trick #3, Bank Trick #4) I thought I had seen it all.
The newest issue of concern when buying foreclosures and purchasing a foreclosed property actually has nothing to do with the bank you're buying it from as much as it does dealing with the code enforcement department of the town the property is located in. For properties (single family/multi family) where the electrical service provider (ie. PSNH-Public Service of New Hampshire) has removed the electrical meter from the side of the home, THE NEW OWNER MUST BRING THE WIRING SYSTEM UP TO CODE before the town will re-issue a certificate of occupancy. This can be a very expensive cost to a buyer so make sure you check with the town before entering into a contract which might have a $3,000-$7,500 hidden "cost" after closing.
Buyers-make sure you are using an agent who has been through the process of representing a buyer purchasing a foreclosed property before. These transactions require a different skill set and an unprepared/uneducated agent can cost you money in the long run. As always, I'm always happy to answer any questions concerning this or other matters regarding real estate.
Wishing you all the best life has to offer,
Joshua Matthews, Licensed Realtor in NH & ME
Director, Strafford County Board of Realtors
Keller Williams Coastal Realty
Portsmouth, NH 03801
(603) 781-4030
The banks are "caving in" & offering help with closing costs
A large portion of my business in 2008 came from representing first time home buyers and investors purchasing both short-sale and foreclosed property. Up until recently banks were pretty firm on their prices until they were ready to make another price reduction. I've seen banks hold on to properties for nine additional months only to sell them for what our initial offer was. The one things which has rung true in this area for almost all banks was no seller concessions on the purchase price, but recently, some banks not only will help if it's needed with closing costs, they're advertising 3%-5% seller concessions for OWNER OCCUPIED buyers. The banks are at a saturation point where they need to unload these properties and with an estimated 40% increase in foreclosures in 09', they're getting more aggressive with pricing, commissions, and incentives. I understand that this may be a regional phenomena, so for those agents around the country, what are your experiences?
Joshua Matthews--Keller Williams Coastal Realty
Want to lower your carbon footprint? Visit the Re-Store!!!
Those who know me know I like working on projects around the house, inside and out. Those who know me really well, know I love saving money on those projects. The habitat for humanity organization recently opened the Re-Store in Dover NH. When I first heard of the idea, I thought "this place is going to be full of junk people don't want". When I actually stepped foot inside Re-Store, I could not believe the bargains they had on all sorts of construction materials both donated from companies like Home Depot and Lowe's, to salvaged items from remodels in perfectly good shape. From flooring to kitchen cabinets to closet organizers, this place may not have it all, but it's got enough for the D.I.Y. homeowner, landlord, or contractor (as a matter of fact, the day I went, it was being raided by several contractors buying up CHEAP items to put in their projects). The Re-store's stock turns quickly so, what you see today might not be there tomorrow so you should visit often. In my years as a home-owner, land-lord, and Real Estate Agent, I've seen my fair share of waste, so it's not hard for me to get behind a project that just makes sense. Although the "What's my Carbon Footprint" movement is still in it's infancy, I have started to grasp just how much impact we have as individuals and anytime we can reduce, recycle & re-use as a community we can infinitely multiply our efforts.
Hope to see you there!
Joshua Matthews-Licensed Realtor in NH & ME
Timber Framing Home Planning Event
I am attending a Timber Framing Home Planning Event this Saturday in Manchester. If you are unfamiliar with "Green" building, this is a great way to see some of the cutting edge construction techniques being used. Timber frame homes help with your impact on the earth and reduce your carbon footprint so if you're interested in this sort of thing make sure you register (or if you just want to peek at some of the most beautifully constructed homes) at Riverbend Timber Framing, here's is the itinerary for the day:
HOME PLANNING SEMINAR
Best Western Executive Court Inn & Conference Center
Manchester, New Hampshire
Saturday, November 15, 2008
ITINERARY:
12:30-1:00 Welcome; Sign in
1:00 - 1:45 "Green Home Design", Jeremy Bonin AIA NCARB LEED AP,
Bonin Architects & Associates, PLLC
1:45 - 2:30 "Timber Framing", Aaron Caswell, Riverbend Timber Framing
2:30 - 2:45 Break
2:45 - 3:15 "Financing Your New Green Home", Wayne Barrows, 1st Metropolitan Mortgage
3:15 - 3:45 "Solar Energy Systems", Jay Lowrie, Sea Solar Store
3:45 - 4:00 Group Questions & Answers
Best Western Executive Inn & Conference Center
13500 S. Willow Street, Manchester, NH 03103
Traveling on Interstate 93 north or south, take Exit 5. The Best Western Executive Court Inn & Conference Center is 3 miles north on Route 28.
Traveling on Interstate 293 take Exit 1. The Best Western Executive Court Inn & Conference Center is 2½ miles south on South Willow Street.
From airport: Exit terminal to Perimeter Road and turn right. Follow to end. Then take a sharp right onto Route 28 south (South Willow Street). The Best Western Executive Court Inn & Conference Center is 1 mile on the left.
I hope to see you there!
Joshua Matthews-Licensed Realtor in NH & ME
For the Sellers out there: Short-sale vs. Foreclosure
This is the most difficult market the real estate industry has seen in almost the last 20 years. Families who made an investment in their homes are now finding that for verying reasons not only are they unable to pay their mortgage, but they aren't even able to sell their homes for what they owe. Whether it's the common theme of an increased mortgage payment or other reasons like relocation or divorce, some families feeling like there is no other choice, just pack their bags and walk away from their home and let it be foreclosed on. This dibilitating choice ruins a persons credit by about 300 points and also prevent the ability to buy another home for at least 4 years. Most people aren't aware that there are other options, and a mortgage company won't bother to educate their clients about them. Short sales are becoming a wide spread option for most home owners in this exact situation and talking to a company who specializes in these is your best option. I have directed clients in the past to call Tom Girard from The Loan Workout Group and they have found a huge deal of success. Take the time to educate yourself on the options and don't hesitate to call me if you have any questions. This problem is a widespread issue nationwide and has plagued hundreds of thousands of people throughout the country, so I understand the issues and there isn't any reason for embarrasement. Many agents haven't educated themselves on the process yet and without the experience, won't be able to sell your house even if they get an offer you and the bank would be willing to accept.
I am a member of the R.E.Expert network, endorsed by the Real Estate Advocate. If you would like more information either as a buyer or seller, please don't hesitate to contact me, I would be more than happy to help and earn your business.
Joshua Matthews-Keller Williams Coastal Realty-Portsmouth NH
Protecting your Buyers & Yourself: Bank "Trick" #4
I was in shock when I read this most recent addition to a contract with a bank addendum because it essentially gave the bank carte-blanche over the P&S.
Article 15. The Seller reserves the right to terminate the Contract for any reason in its sole discretion. Should the Seller terminate this contract, the Seller's sole liability to the Buyer will be to return the Buyer's deposit, at which time the Contract and all addendums thereto shall cease and terminate and Seller and Buyer shall have no further obligations, liabilities, or responsibilities to one another.
In the dozens of addendums I've had the opportunity to review, this is the first time I've seen this. It was easy for me to find this in the 5 page addendum the bank sent over, but it might not have been in the 22 page addendums I have seen in the past. This becomes another issue of disclosure to your buyer. If you have not fully disclosed this issue to your buyer, and the bank actually does back out, the buyer could have already paid for (and you are now responsible for): dewinterization of the property, a home inspection, a septic inspection, a water test, radon air/water test, lead paint test, pest inspection, site survey, and an appraisal-all of which could come up to a few thousand dollars. This is a huge risk for all parties involved on the buyers end, so with proper disclosure by the SELLING AGENT it will be up to the buyer to decide if they want to enter into a contract with this clause.
I have had the opportunity to review dozens of bank addendums, I know the "tricks" they hide in the contract. If you are a buyer, please, please, please make sure you are working with an agent who is familiar with both Short-sales and Foreclosures as they require a different skill set than an ordinary transaction.
Joshua Matthews-Keller Williams Coastal Realty-Portsmouth NH
Protecting your Buyers & Yourself: Bank "Trick" #3
With the current economy the way it is right now and foreclosures rolling into the market in waves, I'm sure many of my fellow agents have seen this clause already, but buyers may not have. The importance being, make sure you disclose the following clause to your buyers and the lender they are working with so all parties understand the timetable they are bound by.
Article 10. (Which can vary) Buyer(s) may take possession after the final closing papers are signed by the Seller and the Contract is funded. Possession to the property may not be taken before the occurrence of both transactions stated previously. Any violation will be considered a breach of contract. If the closing does not take place on the originally scheduled close by date due to a Buyer(s) delay, Buyer(s) shall pay a fee of $100.00 per diem to Seller until the closing is completed.
If you have not disclosed this to your buyers, your commission could be at risk. Make sure you set the expections of the contract to both the Buyer AND THE LENDER. If you're working with a lender who you have not used before, make sure they understand that if they drop the ball on their end, they should be the one to foot the bill.
I have had the opportunity to review dozens of bank addendums, I know the "tricks" they hide in the contract. If you are a buyer, please, please, please make sure you are working with an agent who is familiar with both Short-sales and Foreclosures as they require a different skill set than an ordinary transaction.
Joshua Matthews-Keller Williams Coastal Realty-Portsmouth, NH
Protecting your buyers: Title Insurance
With the massive influx of both short-sale and foreclosure inventory on the market, title insurance is needed more than ever. I sold a 3yr old foreclosed home back at Christmas to some really good friends of mine. A 3 bedroom 3 bathroom cape with 1 car garage under and finished basement on 3/4 acre at the phenomenal price of $175,000. They were truly exited, as was I for them.
They called me on Friday to tell me they received a DEMAND FOR PAYMENT IN FULL FROM THEIR MORTGAGE COMPANY because the town had notified the mortgage company that improvements were made to the home without a permit which is a violation of the terms of their mortgage. The problem is, "the improvement" the town was speaking of was the finished basement which had been finished prior to the foreclosure, it had nothing to do with the current owners. (An amusing aside: the copy of letter from the town which was provided by the bank was dated 11/07/07, which was 2 weeks before our initial offer on the property. The bank had essentially provided us with the evidence they knew about the problem before we had even viewed the property).
The short end of it is, my buyers are fine and their title insurance is stepping in to take care of the matter, but what would have happened without title insurance or that letter? I always promote insurance for exactly what it is, insurance and as I stated before, with the massive influx of both short-sale and foreclosure inventory on the market, title insurance is needed more than ever.
Wishing you all the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
Need Help With Short-sales?
I've been selling real estate going on six years now and the market is certainly different now than when I first got into it. Setting the market aside, I think we agents need to grow and conform to the both the needs of our clients and the market itself. We are in the middle of what is arguably the worst market in the last decade, yet I am having my best month ever and there's no end in sight. My business is littered right now with both buyers and sellers involved in short-sales and foreclosures. When I first started working these, it was apparent I would be totally bald by the age of 35 because dealing with lenders and banks involved in these transactions was hands down the most difficult thing I had encountered in this industry. Then, like a beacon of light shining down from the heavens, I discovered an asset which could make my life 100 times easier. I started working with Tom Girard from the Loan Workout Group. He has partnered with a lawyer and once you hand them all the info, they take the ball and run with it. I was losing valuable marketing time spending hours a day on the phone with banks trying to get answers, payoffs and numbers and now Tom handles all of that for me and my clients. There isn't a charge to either me or my clients, his firm is paid by the bank they work the deal out with. I would strongly urge any agent to pick up the phone and give him a call, the info which he provides is worth its weight in gold.
Wishing you all the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
As the boyscouts say, "Always be prepared"
Or "a good offense is the best defense" is a better phrase for the day. 2 weeks ago I had 5 closings set up for today (and I wasn't sure how I was going to be able to attend all of them), and as fortune would have it, at the moment only 1 will close (today). Out of my 5 deals, I had 2 short sale and 2 foreclosures. Had I not prepared all my clients 2 weeks ago that we may not close today, I'd be putting out fires instead of finding breathing room in my day.
Closing #1. (My Sellers Bank & Short-sale)An unprepared bank not fully staffed to handle the amount of foreclosures and short-sales on their doorstep just can't deliver. Fortunately I prepared the buyers agent for the possibility, and I employed the help of a lawyer to take it the final 10yards of the deal. The other agent understands the scenario and with good communication, everybody is OK with closing the deal next Thursday or Friday.
Closing #2. (My Buyer buying a Foreclosure) Bank again is unprepared to close today due to a huge delay in there response time. They have requested the closing be pushed back 25 days. My buyer is...annoyed, but willing to wait, he's getting a fantastic deal. I've been preparing him all along for the possibility.
Closing #3 (My Buyer buying a Foreclosure CASH SALE)Just found out at 11am that we won't be able to make the closing at 1pm because the bank can't get the deeds to us in time (closing moved to Monday). Another couple of issues we had-not only had the property been properly foreclosed on, the Notary who oversaw the paperwork was using an expired license. Both issues were only discovered Tuesday so I prepared my buyer it may not happen today anyway.
Closing #4 (My Buyer buying a Short-sale) Arguably the best deal in town in the last year, and we still don't have payoff numbers from the bank. I'm promised we will be able to close for 4pm but once again, I've taken the initiative and told my buyers to be prepared for a setback. The Sellers Lawyer shot us another addendum last night a 5:45pm which he needed signed to be able to close today (we've been under agreement 3.5 weeks.
Closing #5 (My Seller, Resale)We received the P&S 2.5 weeks ago with an aggressive closing date of today. I was pretty sure it wouldn't happen and made sure the Seller knew it when I was having him sign the contract. Fortunately, this is a second home and he doesn't need this sale for anything else so pushing it back 2 weeks isn't a problem.
I guess what I'm trying to point out (especially to new agents) in these 5 different scenarios is, have a good level of communication with your clients especially in this market, and especially if your buying/selling short-sales or foreclosures. Any number of things can come up and if you haven't prepared your buyer for the worst, get prepared to dig in because some will unleash on you with both barrels (or cannons depending on the scenario and need).
Wishing you all the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
Who Says The Market Is SLOW, The Spring Market Has Come Early
Amid a flood of negative publicity about a downward market, possible recession and the worst winter in over a decade in the northeast, I find myself wrapping up my biggest month ever in over 5 years...BY DOUBLE. I know there are those who might say it's a fluke, but I'm already lining up next month to challenge my figures this month.
The majority of my business is coming from first time home buyers, and why shouldn't it? We are seeing 5 year low pricing on resale homes, there is a influx of short-sale and foreclosure properties, and the interest rates are still under 6%. I'm using every opportunity to talk to friends about what a fantastic market it is for either first time home buyers, or for those looking to buy up, that I'm actually calling people to action who hadn't even really considered purchasing. I've had the opportunity to pick up several investors looking both buy and flip and also those looking to start a portfolio.
We are definitely facing a challenging market right now and the months ahead, but I guess my question to you is, how do you view it? Do you see and follow the trend of doom and gloom or do you see it as the huge opportunity which it is?
Wishing you the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
Protect your Buyers: Bank owned trick #2
Since my last blog seemed to get a lot of interest, here's another issue for agents to be on the lookout for. In the New Hampshire Purchase & Sales Agreement Page 2 Section 10:
10. TAXES, CONDO FEES, SPECIAL ASSESSMENTS, RENTS, WATER AND SEWERAGE BILLS AND FUEL IN STORAGE SHALL BE PRORATED AS OF TIME AND DATE OF CLOSING OR: ALL UTILITIES AND TAXES TO BE PAID IN FULL AND KEPT IN GOOD STANDING UNTIL THE CLOSING DATE.
I can't speak for every state, I can't even speak for every town because public utilities are handled differently by different towns, but locally in this area both city water and city gas bills transfer to the new owner. If you don't have something similar to the above verbiage, you could possibly be putting your buyers at risk. Once again, as the buyers agent, any outstanding bills that show up on your buyers doorstep the day after closing could essentially come back and find you. Ask for help, find your broker, protect your buyer and yourself.
Wishing you the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
Protect your Buyers: Bank owned trick #1
For those of you who haven't had the opportunity to sell a bank owned property yet, look out for this little fast one the bank likes to try, if you're not looking for it, you just may miss it:
Recording fees, escrow fees and other customary closing costs WITH THE EXCEPTION OF TRANSFER TAXES, shall be paid by either Seller and/or Buyer in the manner customary for residential real estate transactions in the city in which the Property is located.
ALL OTHER COSTS AND EXPENSES, INCLUDING ANY COST, EXPENSE OR TRANSFER TAX, imposed by any state or local entity not otherwise addressed herein, including any tax or assessment imposed upon the Property for any period prior to the closing date due to a change in the use of the Property after the closing date SHALL BE PAID BY THE BUYER.
This seems pretty cut and dry but when its hidden in a 22 page bank addendum you just might miss it. I can tell you my personal experience having represented buyers who purchased properties from 5 different banks (but far more than 5 properties) this clause will be hidden in the addendum although the verbiage may not be exact.
The most recent foreclosure transaction I have is under agreement is for $230,000, and in New Hampshire the transfer tax stamps will be over $1,700. I would absolutely hate to explain to my buyer that I screwed up if I were a newer agent who missed this clause. I guess ultimately they would have the right to come back at me and essentially I might be the one paying the transfer tax stamps.
So agents educate yourselves, ask your fellow agents for help, and know the bank is looking to recoup any monies they can. They are sometimes selling the property for less than half what they took it back at. Good luck and good selling, and as always, I'm more than happy to answer any questions.
Wishing you the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
Foreclosures-Protect Your Buyers Issue/Part 2
I wrote a blog a few weeks ago titled cold snap = frozen pipes which sparked a lot of interest. I had a few comments posted by a few members who suggested frozen pipes wouldn't be an issue if the house was winterized.
I am currently representing several different buyers buying several different foreclosed properties and the issue I am running up against time and time again is banks are being inflexible when it comes to both home inspections & de-winterizing properties because the properties are being sold AS-IS. As a buyers agent we are trying to do home inspections for informational purposes only, but the banks aren't even permitting that. The banks have paid to have the properties winterized, but they not only make no representation or guaranty of the work that was done, they also will accept no responsibility for issues after closing and I have recently seen three times now broken pipes on a "winterized" home. So all of you buyers agents out there, prepare your clients that there may be an issue after closing if they are indeed to have the property delivered to them in AS-IS condition.
Please don't let me scare you away from foreclosures right now, because in my experience they are driving my business through the roof. There are just some phenomenal deals out there, some just too good to pass up. I personally have over $1,000,000 in foreclosures under agreement right now with the average sale equalling $150,000. Try to turn what the media is proclaiming a negative into a positive for you, your buyers, & investors-just educate them a little on what possible scenarios they might face on closing day.
Wishing you all the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
Protect your Buyers
After sitting through a recent seminar on foreclosures and short sales, I picked up a little info I thought would benefit many agents and buyers in this current market.
When buying a foreclosed property AT AUCTION it's important for both agents and buyers to understand that in most states, the existing owner can contest his foreclosure up to a year after the fact. So potentially your buyer/investor could buy a property, spend 10's of thousands fixing it up, and 9 months down the road, the previous owner might be able to take it back. This was a huge fact that I had no idea about and I had actually brought buyers to several recent auctions (in NH agents can get paid by the auctioneer if they have previously registered those buyers before the auction). It's my fear that we open ourselves to liability as agents with issues like this.
During the course of this class I was also informed about evicted owners/tenants from foreclosed properties as well. In some circumstances, an occupant refuses to leave the premises even at the auction so whoever is the winning bidder gets to deal with the headache of eviction. Buyer Beware: if the occupant can show/prove a hardship such as a major illness-they can't be forced from the property. There was somebody in the audience which had actually suffered this exact case. He had purchased a property with an elderly couple who had refused to leave, during the course of the eviction (a 6 month process due to winter months) the husband had died and the wife suffered a minor stroke and he was still fighting to get her out 15 months later. He had essentially given her a free place to live for over a year. Nobody likes the thought of kicking a sick, old woman out on the street, but I like the idea of essentially paying somebody else's rent/mortgage even less.
I guess it all comes down to education. With the increase in both short sales and foreclosures on the rise, educate both yourselves and your clients to better insulate yourself from possible legal action.
joshua matthews-keller williams coastal realty
4 great things about the market right now
I recently had the opportunity to sit down with Rick Geha, the broker/co-owner of a Keller Williams office located in Stockton, California-The #1 location of foreclosed properties in nation. As a matter of fact the day I spoke with him he told me there were 3600 single family homes on the market in his town, 64% of which were either foreclosure or short sale properties. I have been a huge proponent of "your local real estate market is not the national real estate market", but during my conversation with him, he told me four undeniable truths that translate to any market.
Look for every opportunity in your day to day lives, to find new buyers and investors. Take the time to educate the people in your lives that now is the time to buy and explain to them the opportunity they have to save big.
Wishing you the best in life and business,
Joshua Matthews-Keller Williams Coastal Realty
recession doesnt mean depression
I know the majority of america is freaking out about our nations economy right now, and some of it is rightly deserved, but i think the majority of americans have some misunderstandings about what it actually means. A recession is when the economy has two quarters of downward growth in a row. Can this have some negative affects? Yes, but what you need to keep in mind is that recession doesnt mean depression. Since the great depression during World War II, there have been 10 recessions and although people have struggled, they have made it through rough times. Most importantly, the longest recession only lasted 15 months, so there should already be an end in sight if you look at how things have corrected themselves in the past. What does this mean? Much cheaper home prices across the board-both new construction home sales and resales which is perfect for first time home buyers. Another benefit first time home buyers are reaping right now is the lowest interest rates ever. If you know of somebody who is thinking about buying a home, get them in one today-i promise you five years down the road they will be thanking you for the little push. Dont follow the national doom and gloom portrayal of how the market is, look for the opportunity which has presented itself for all of us.
Joshua Matthews-Licensed Realtor in NH & ME
Cold snap=frozen pipes
I just wanted to pass along a little friendly advice for other Realtors out there. At a recent office meeting the issue of empty homes which hadn't been winterized came up and i thought passing this info along might keep a fellow Realtor out of trouble. If you have a home in which the seller has vacated the property either due to relocation or just because they have moved into their new home, keeping the heat set at 50 of their old home may not keep the pipes from freezing during a cold snap depending on the age of the home. This creates a problem for them because when a seller vacates a property, their home insurance WILL NO LONGER COVER THEM unless they have notified their insurance agency of the vacancy. Letting your seller know this might keep you out of trouble. also, Realtors e&0 insurance will not cover an agent for "watching" a property after the sellers have vacated.
there was an issue locally where an agent had voluntarily offered to check in on a property the sellers had recently moved out of after buying a new home. The local market had been slow and the agent hadn't had any calls on her listing but happened to be in the neighborhood so she stopped in only to find that there were the pipes had frozen and burst. Upon calling the sellers, they notified their insurance agency who promptly told them they weren't covered because they hadn't notified them of the change so now the affected sellers felt like they had no option but to go after the listing agent. The agent unfortunately found out by her e&o agency that she is not covered for issues like this and has now had to hire an attorney of her own to help settle the dispute.
It all comes down to educating your sellers and make them aware of any possibilities. I assure you after hearing of this other agents plight, I called my sellers of vacant homes and made them aware of their own responsibilities.
