Buying a Southern NH Home: How to Reduce Stress

By Dave | Published: May 3, 2012

Nervous or fearful woman with her fists held up to her mouthIf you’re preparing to buy a Southern NH home, you may already be thinking about the stress of interviewing real estate agents, searching for homes and getting a mortgage.

Here are 7 ways to reduce the stress often associated with buying a Southern NH home:

  1. Hire a real estate agent who fits your personality.  Find someone who you trust, who communicates well with you, and who you feel comfortable being around.
  2. Listen to your agent.  Once you’ve hired an agent you trust, listen to her advice.  Don’t stress yourself out by second guessing her.  You hired her because she’s an expert, so relax and take her recommendations.
  3. Have it your way.  Make decisions based on your needs and desires, not those of your parents or friends.
  4. Get early mortgage approval. The best time to shop for your mortgage is before you start shopping for a house.  Get approved for your mortgage, and then start your house search.
  5. Know when to give in.  Are you really going to let that $500 the sellers refuse to give up keep you from owning the home you want?  Successful negotiation depends on both parties doing some give and take.
  6. Focus on the positive.  It’s unlikely that you’ll ever find a home that meets all your needs, wants and desires.  Focus on the positive aspects of the home you’ve chosen such as location, comfort and safety; don’t worry about the minor negatives that can easily be changed such as the lime green wallpaper or the shag carpet.
  7. Expect buyer’s remorse.  After making any big purchase, a little buyer’s remorse is bound to happen.  Remind yourself of all the things you like about your new Southern NH home, and the buyer’s remorse will pass.

If you’re in the market for a new Southern NH home, we can help you accomplish your real estate goals while keeping stress to a minimum.  Give us a call today at 603-821-1134 or email us at info@teamheeter.com for more information.

Posted in Buying Tips | Comments closed

Sales Boom in Bedford, New Hampshire!

By Linda | Published: April 26, 2012

A small house made of folded $1 billsThe real estate market is moving at a pretty good clip this spring – for many agents, it is one of the busiest seasons in the past decade!  To give you some feel for how very different this market is than last year’s market, here are two market overviews we did for Bedford, NH.  The price ranges are only slightly different – not nearly enough to account for the huge difference in inventory levels between the two time periods.  (June of 2011 versus April of 2012)

The older market overview:

The Bedford Market as of 6-14-11 in the price range of $180,000-$230,000

 Active Residential Listings: 7

Contingent or Pending Residential Listings: 2

Sold Residential Listings (past 90 days): 3

Sold Residential Listings (past 180 days): 8

Sold Residential Listings (past 365 days): 17

(Average Days On Market for those Sold properties was 75)

 Based on the average of 1 sale per month for the past 3 months, the current inventory represents about a 7 month supply of homes.  (5-7 months worth of inventory is generally considered a balanced market)

Editor’s note: At the time of this Bedford, NH market overview, looking at the number of sold in the past year (365 days) indicated there was only 5 month’s worth of current inventory, but since the pace of sales had been slower in the past few months, we focused on that number (90 day sold), which gave us the 7 month supply of homes.

The recent market overview:

The Bedford Market as of 4-23-12 in the price range of $100,000-$200,000

 Active Residential Listings: 1

Contingent or Pending Residential Listings: 6

Sold Residential Listings (past 90 days): 6

Sold Residential Listings (past 180 days): 8

Sold Residential Listings (past 365 days): 21

(Average Days On Market for those Sold properties was 103)

Based on the average of 1.75 sales per month for the past year, the current inventory represents only about half a month’s supply of homes. (5-7 months worth of inventory is generally considered a balanced market)

*****

Since I’m sure some will wonder what the current activity level is above $200k, here’s a Bedford, NH real estate market overview in an identical price range to that of the June 2011 market overview.

Today’s market overview:

The Bedford Market as of 4-26-12 in the price range of $180,000-$230,000

 Active Residential Listings: 2

Contingent or Pending Residential Listings: 6

Sold Residential Listings (past 90 days): 6

Sold Residential Listings (past 180 days): 10

Sold Residential Listings (past 365 days): 16

(Average Days On Market for those Sold properties was 99)

 Based on the average of 1.33 sales per month for the past year, the current inventory represents about a 1.5 month supply of homes.  (5-7 months worth of inventory is generally considered a balanced market)

Comments & Conclusion:

It’s worth noting that the average Days on Market is higher for the Sold properties in the two more recent market overviews.  You might think this is odd, expecting that it should be lower in a more active market.  There are several potential explanations for this.  One, the higher Days on Market on average of more recent sales may be due to the cleaning out of older inventory – properties that have been for sale for a longer period of time and finally sell as the market for properties in general tightens somewhat.  Two, the Days on Market average still includes a large portion of 2011 real estate sales, since we are only 4 months into 2012, so the numbers for just the sales in recent months may be very different.

Just for fun, let’s test theory number 2.  What is the average days on market for the Bedford, NH homes in the $180k to $230k price range that have sold in just the past 90 days (3 months)?  Drumroll please…..   120!!  Well, there’s another theory shot down by a bunch of brutal facts. ;p

Therefore, I’m inclined to go with the first potential explanation for seeing higher Days on Market in the recent sales – demand has caught up to the inventory level and in the case of this price range, surpassed it.  If these market conditions continue, it’s only a matter of time before prices rise again!!

 

If you’d like to look into the possibilities for buying, selling, or investing in this market, give us a call at 603-821-1134 or email us at info@teamheeter.com!

Posted in Market Info, New Hampshire | Comments closed

The Most Cost-Effective Projects for Southern NH Homes

By Dave | Published: April 23, 2012

House made of various toolsAccording to Remodeling Magazine’s 2011-1012 Remodeling Cost vs. Value Report, seven out of the top 10 most cost-effective projects across the U.S. (based on value recouped) are exterior replacement projects.  In New England it’s 9 out of 10.  While the most cost effective interior project in New England is what you might expect (Minor Kitchen remodel at an estimated 71.7% value to cost), here are the less obvious five most cost-effective exterior replacement projects:

1.  Garage door replacement.  A significant factor in curb appeal for homes with a garage, an upscale replacement is expected to recoup 78.4 percent of costs.  According to the report, an “upscale” price for a garage door replacement is about $3,000.  Though cheaper at an estimated $1,545, the midrange garage door replacement is only expected to recoup 74.5 percent of costs (still placing it in the top 10).

2.  Siding replacement.  Again the 2 upscale versions have a higher return, with fiber-cement siding recouping 76.8% of costs and foam-backed vinyl recouping 74.6% while the midgrade vinyl siding replacement is only expected to recoup 72.8% of it’s costs, despite being cheaper.

3.  Entry door replacement. For this one, only the midrange project fell within the top 10 for most cost-effective at an estimated 73.6% of cost recouped.  An upscale replacement is only expected to recoup 61.3% of the cost.

4.  Deck addition. Again the midrange project (wood deck) fared better on this than the upscale version (composite), with an expected 73.1% of cost recouped versus 52.5%.

5.  Window replacement. Between the midrange vinyl replacement windows, the upscale vinyl replacement windows and the upscale wood replacement windows, the midrange project has the highest expected value to cost at 72.2% versus 72% and 65.2% respectively.

According to the 2011-2012 Remodeling Cost vs. Value Report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal.

Since resale value can vary by region, it’s smart for owners of Southern NH homes to work with a Southern NH real estate agent through the remodeling and improvement process.  An agent can provide insight into projects in his or her neighborhoods that will recoup the most when the owners are ready to sell.

Want help identifying the improvement projects that will recoup the most value when you sell your home?  Give us a call today at 603-821-1134 or email us at info@teamheeter.com.

Posted in Home Renovation, Selling Tips | Comments closed

Homeowner’s Insurance and Your New Southern NH Home

By Dave | Published: April 19, 2012

You know you need homeowner’s insurance but what kind and how much?  To help you figure this out, here are answers to some of the most frequently asked questions about homeowner’s insurance.

How much homeowner’s insurance do you need?  

Lenders require you to carry enough coverage to protect their investment, which means the amount of your loan.  But the amount of your loan most likely isn’t enough to rebuild your home if it was damaged.  To be able to replace your home and it’s contents in case of a disaster, you probably want a policy that insures the replacement value of your Southern NH home.

It’s a good idea to sit down periodically with your insurance agent to review your homeowner’s policy.  You want to determine if your coverage matches current construction costs and the replacement value of your Southern NH home’s content.

What about coverage for earthquakes and floods?

Many homeowners assume coverage for all natural disasters is included in their insurance policy.  Not true.  In fact, the most important thing for you to know about flood and earthquake insurance is that it is not included in a basic homeowner’s insurance policy.  Both require separate policies in order to get reimbursed for damage.

Even though people often just associate earthquakes with California, most of the United States has the possibility of being affected by an earthquake, even New Hampshire.  Unless you specifically purchase earthquake coverage, damage to your Southern NH home caused by a quake is not covered. (Granted, the risk level in New Hampshire for an earthquake of significant enough magnitude to cause damage is much lower than other areas, but it’s not nonexistent.)   The same is true with flooding.  You don’t have to live next to a large body of water or major river to sustain water damage from flooding.  A small creek next to your home can still cause damage during a flash flood.  You may not have realized that floods are New Hampshire’s most significant hazard.

Do you need to shop around for insurance?

Fortunately, although you should always review the various protections offered under each plan, there are some common standards for homeowner’s policies, so coverage for a particular type of property doesn’t change much from company to company.  However, rates can vary greatly, which means it is worth your time and effort to shop around for the best prices/value before you buy your homeowner’s policy.

If you’d like a referral to a professional homeowner’s insurance agent, give us a call today at 603-821-1134 or email us at info@teamheeter.com.

Posted in Buying Tips | Comments closed

How to Rent Your Southern NH Real Estate and Turn a Profit

By Dave | Published: April 13, 2012

For rent sign rider in front of a houseMaybe you have a home on the market that isn’t selling, or maybe you own a vacation home in Southern NH that you don’t use often enough. Whatever the reason, you’re thinking about renting your Southern NH real estate.

Being a landlord isn’t easy.  There are pitfalls that can prevent you from turning a profit and problems that can keep you awake at night.

Here are six tips to help reduce your stress and make a profit from your rental property:

1.  Study the Southern NH real estate market and rental situation.  Take landlords who are successful in your area to lunch and learn from them.  Find out who they use for legal work, paint jobs and pest control.

2.  Research.  Find out vacancy rates and how much properties are renting for in your area.  Rental property owners associations and sites like mrlandlord.com can be great resources.

3.  Do thorough expense calculations and analyze your cash flow before putting out your “for rent” sign.  Overestimate when in doubt.  Make sure you’ve added in big expenses like real estate taxes, rental insurance and property management fees, if you’re going to get help managing your Southern NH real estate.

4.  Have a well-funded savings account labeled “maintenance reserve.”  Landlords often fail to budget enough for seasonal tasks like snow removal.  And, you never know when Mother Nature will throw a tornado or hail storm your way.

5.  Understand local rental and eviction control laws.  Keep extremely good records and be proactive; it can save you aggravation and money.  For example, if someone isn’t paying you rent, and you let them go too long without paying, it becomes difficult to recover the money or evict them.

6.  Thoroughly screen all potential tenants before renting to them.  Review the applicant’s credit history, eviction history, criminal history and rental history.  Also, personally interview the applicant or have your property management company interview the applicant and send you the information for your final approval.

There is good news!  Rents are rising.  According to the National Association of REALTORS® the average apartment rent is projected to grow 3.5 percent this year.  Additionally, in today’s economy, more and more people are interested in Southern NH real estate for rent.

Posted in Investment Real Estate, Rental Properties | Comments closed

Some Recent Statistics for the Southern NH Housing Market

By Linda | Published: April 4, 2012

Team Heeter is in the middle of our busiest spring ever (but never too busy for your referrals ;-) …), and we thought you might like to take a look at several recent Market Overviews we’ve put together for people thinking of selling.  (Pay special attention to how many properties are currently under contract – ‘Contingent or Pending’ – in each price range to get a true feel for how active the market is right now!)

 

Market Overview 1

The Nashua Condominium Market as of 3/19/12  in the price range of $100,000-$150,000

Active Condominium Listings: 24

Contingent or Pending Condominium Listings: 17

Sold Condominium Listings (past 90 days): 14
Sold Condominium Listings (past 180 days): 35
Sold Condominium Listings (past 365 days): 65
(Average Days On Market for those Sold properties was 110)

Based on the average of 5.4 sales per month for the past 365 days, the current inventory represents just under a 5 month supply of homes.
(5-7 months worth of inventory is generally considered a balanced market)

 

Market Overview 2

The Nashua Multi-Family Market as of 03/30/12  in the price range of $175,000-$225,000

Active Multi-Family Listings: 8

Contingent or Pending Multi-Family Listings: 5

Sold Multi-Family Listings (past 90 days): 0
Sold Multi-Family Listings (past 180 days): 4
Sold Multi-Family Listings (past 365 days): 12
(Average Days On Market for those Sold properties was 124)

Based on an average of 1 sale per month over the past year, the current inventory represents an 8 month supply of homes.
(5-7 months worth of inventory is generally considered a balanced market)

 

Market Overview 3

The Milford Condominium Market as of 3/30/12 in the price range of $125,000-$175,000

Active Condominium Listings: 10

Contingent or Pending Condominium Listings: 1

Sold Condominium Listings (past 90 days): 1
Sold Condominium Listings (past 180 days): 1
Sold Condominium Listings (past 365 days): 9
(Average Days On Market for those Sold properties was 69)

Based on the average of .75 sales per month for the past 365 days, the current inventory represents just over a 13 month supply of homes.
(5-7 months worth of inventory is generally considered a balanced market)

 

Comments

As you can see, the market ‘rate of absorption’ can vary considerably by town, price range and property type.    If you’d like to find out what your market looks like, call us at 603-821-1134 or email us at info@teamheeter.com.

Posted in City Info, Market Info, New Hampshire | Comments closed

Southern NH Real Estate: 5 Pricing Myths Debunked

By Dave | Published: March 28, 2012

A small house made of folded $1 billsThere are a few misconceptions about how to set the sales price for your Southern NH real estate. Here are five common pricing myths and the reality behind them.

Myth #1: It’s OK to test a high price on your Southern NH real estate just to see if anyone will buy it at that price.

Truth: If you’re serious about selling your home, don’t play games. In a buyer’s market you have a very small window of opportunity to pull in serious buyers when your home first enters the market. If you play games, like over pricing your home just to test the market, buyers will just ignore your home in favor of those that seem to offer better value.  Then, when you’re tired of testing and adjust your price to a more attractive level, buyers will see how long it has been on the market and be inclined to offer even lower.

Myth #2: You should price your Southern NH real estate higher than the market value to allow for room to negotiate.

Truth: No matter what your reasoning or rationale, overpricing your home is never a good idea. When your home is overpriced, very few potential buyers inquire about it or visit it. If no one wants to buy your home, you won’t have anyone to negotiate with.

Myth #3: The appraisal value of your home has no impact on the sales price of your home.

Truth: Lenders consider the value of your home to be the price for which the home is appraised. For example, if you and your buyer have agreed on a sales price of $300,000, but the appraisal comes in at $280,000, the lender considers the value of the home to be $280,000, not $300,000. When this occurs, buyers will want to renegotiate the sales price of the home to
match the appraisal price.

Myth #4: Real estate agents want to price homes high because they’ll make a higher commission.

Truth: If you’ve done the work needed to find a great real estate agent, you should trust him or her to price your home correctly. Because of their experience, real estate agents understand more than anyone else the importance of properly pricing your home. If they’ve incorrectly priced your home, it won’t sell, and the agents earn nothing.  Also, real estate agents who are building a long term business understand that the most beneficial income generating strategy they can employ is to provide the kind of advice and service that will turn their clients into ‘raving fans’ – who will continue to refer their friends and family!

Myth #5: Real estate agents want to price homes low because they’ll sell faster and easier without the agents having to do any work.

Truth: Professional real estate agents know that setting the price too low can be almost as harmful as setting the price too high. Buyers who are looking in a specific price range may not consider your home because of the low price tag. They assume it will not fulfill their needs or worry that there’s something wrong with it.  On the other hand, with proper advertising, pricing a home just slightly under the current market value can sometimes promote enough excited interest among buyers to result in multiple offers for a seller to choose between and a higher price than if there were only a single buyer negotiating with the seller (yes, even in a buyer’s market).

If you’re ready to sell your home, Team Heeter can help you price it right. Give us a call today at 603-821-1134 or email us at Info@TeamHeeter.com for more information.

Posted in Confidence, Selling Tips | Comments closed