Massachusetts Real Estate

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The Metrowest Massachusetts Real Estate Market What Does The Future Hold

Metrowest Massachusetts Real EstateWorking as a Metrowest Massachusetts Realtor one of the questions I am asked most often is when I think the market will turn around? While I don't pretend to have a crystal ball or a magic hat and certainly am not an economist, it is easy for me to see that the Real Estate market in Metrowest Massachusetts will not be changing all that much in the next year.

Let me say that this is not about being a pessimist or being negative. This is about being very realistic and honest. Over the last six months I have gone on a number of listing interviews where the seller has decided not to sell their home because they want to wait "till the market comes back". One of the things that I find amusing is the belief by many that the market is going to come back overnight.

Here in Metrowest Massachusetts the Real Estate market peaked in the Spring of 2005. The years prior to 2005 were marked by a run up in home values like we had never seen before. There were years during this time where property values increased by over 10%. These values were not sustainable much like other areas around the country.

Depending on what town you are located in values have dropped by around 20-25% since the peak. Are we near the bottom? That is anybody's guess at this point but if I were a betting man my money would not be on a recovery this year.

One of the things that I find most fascinating about the decision process is a sellers unwillingness to part with the lost equity on their current home, even though they will be turning around and purchasing another home under the same conditions.

In the article I wrote selling your home in a buyers market this concept is explained in greater detail. It seems that people get so caught up in their loss that they forget that when they go ahead and buy another home that property would have also dropped in value.

Another way to rationalize the Real Estate market and what kind of appreciation is necessary to get back to where we were at the market peak is to look at stocks.

Lets say you purchase a stock for $100 dollars and it goes down by 25%. The stock is now worth $75 dollars. Many would incorrectly assume that if the stock goes back up by 25% it would be worth $100 again. WRONG - it would be worth $93.75. The stock needs to appreciate around 33.5% just to get back to break even! It works the same way with housing folks but on a larger scale.

If you owned a home worth $500,000 in the Spring of 2005 and it has dropped by 25% it is now worth $375,000. Well guess what if the market goes up 25% the home will be worth $468,750. Still a long way off from $500,000.

Most economists predict that once we do finally hit bottom we will only see a more historical norm of 2-3%Metrowest Massachusetts Realtor yearly appreciation on our homes. Do the math - with this kind of reality check it is very easy to see why it is going to take a very long time to get to the levels were were at prior to the Real Estate correction.

Some food for thought. As of this writing interest rates are outstanding hovering near 5%. There is talk that due to the massive influx of capital into the credit system that interest rates could be headed to 4.5%!!

If you have wanted to sell your home for whatever reason and are not because you don't want to lose the equity you once had then you could be making a huge mistake.

Interest rates are at a once in a life time level. When the economy does finally improve interest rates this low will not last. Interest rates should be a big X factor in your decision making process.

Seriously folks it could be 5-10 years before we get back to the levels of 2005. What are the chances that interest rates will be where they are when that finally happens? When your home finally does get back to 2005 levels so will all the other homes in the area.

Stop worrying about lost equity if you really want to move.

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About the Author: The above Real Estate information on the Metrowest Massachusetts Real Estate MarketRE/MAX Executive Realty Metrowest Real Estate what does the future hold was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. 

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Bill Gassett is a thirty-two year veteran to the real estate industry. He enjoys providing helpful information to buyers, sellers and fellow real estate agents to make sound decisions. His work has been featured on RIS Media, National Association of Realtors, Inman News, Placester, RESAAS, Credit Sesame and others.

Comment balloon 63 commentsBill Gassett • March 19 2009 10:32PM

Comments

Bill, Excellent job. Great analogies, easy to understand and you make your point really well.

"Stop worrying about lost equity if you really want to move"... a great piece of advice.

Posted by Barb Szabo, CRS, E-pro Realtor, Cleveland Ohio Homes (RE/MAX Trinity Brecksville Ohio) about 10 years ago

Thanks Barb. I don't know what makes people believe we are all of a sudden going to wake up one day and see the boom times all over again. It is not going to happen. The correction is going to last a while longer and then we will have a slow and steady climb. Those that want to sell their homes now should do so and stop worrying about what they used to have in equity.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Bill for once I hope your wrong...  It's scary to think how long the real estate market will need to rebound.  But I wonder if we need to get back to the high peak days.  Places like FL, NV, and CA had such a rush on RE it was unsustainable.  We've been lucky in Raleigh that our appreciation never hit those double digits. 

Posted by Lee & Pamela St. Peter, Making Connections to Success in Real Estate (Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522) about 10 years ago

Bill, This post lays out the unfounded fears our buyer's & seller's can't seem to get beyond. It is very simple to do the math, but the trading of equity (seems to be foreign to some very smart people)..when selling and buying in the same market..sell low and bonus time buy low, conversely wait to sell high, and the replacement property will...be...bonus purchased high, oh well that is real estate (thank god it's not rocket science).

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) about 10 years ago

Pam - As the saying goes all Real Estate is local. In your market the time for rebound back to the peak may be much quicker because you did not climb as fast and as far as we did here in Massachusetts. Here in Massachusett are values shot out of sight much like CA, FL and NV.

Steve - The math is real easy. If you are buying and selling under the same market conditions there is not much difference. The key is what kind of interest rate environment will you be in when you make another purchase.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Bill - The slower the rebound the healthier the real estate market will become. Pricing the property is by far the most important thing to do and I have been preaching this at every listing appointment, emails and conversations. This is a fantastic analogy and another spin for a potential seller that I'm going to include the next time I have this conversation, if I may. Loved it! Thank you for sharing

Posted by Petra Norris, Realtor, Lakeland FL Homes for Sale (Lakeland Real Estate Group, Inc.) about 10 years ago

Bill--Well thought out explanation of the situation. Sounds like the conversations I have with my potential clients. Things might start getting better for the economy in a year or two but that doesn't mean houses will automatically go back to the pricing we saw a few years back. It will be a slow climb as it should be.

Posted by Teri Eckholm, REALTOR Serving Mpls/St Paul North & East Metro (Boardman Realty) about 10 years ago

Petra - Very true! The Real Estate market will be much better served when appreciation rates go back to historic norms. I appreciate the compliments on my analogy.

Teri - I expect the economy to get better and for our Real Estate markets to improve. There is no question that will happen in time. It is however, silly to assume that we are going to get back to record levels anytime soon. That will most likely not happen for a very long time.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Hi Bill. Timely post and a great explanation...I just had a client ask me the other day iif they should wait until prices went up to sell their home....With the prices jumping up on a monthly basis a few yeas ago I think the sellers are under the impression that they are going to get up one morning and the values will have rebounded overnight.

Posted by Cecily Parks (iMove Group, Knipe Realty NW, Inc.) about 10 years ago

I like the way you explained it in your comment to Steve. Sell low + Buy low + Rates Low = you can still come out ahead. If you sell your current house for less, you'll make it up by purchasing your replacement house for fewer dollars, too.

Posted by Pat Starnes-Front Gate Realty, 601-991-2900 Office; 601-278-4513 Cell (Front Gate Real Estate) about 10 years ago

Cecily & Pat - Thanks for your thoughts. For those that are going to buy and sell in the same market and want to move I can not understand why they would wait. Interest rates will go up at some point in the future. Unless you are not going to be buying another home there is not a lot of sense waiting for lost appreciation.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Great post.  I have a seller who wants to buy -- found a great price for the new home but can't make the transition from losing on their home (with the thinking you described).  However, I have a seller who is willing to take a loss on his current home but really reluctant to buy unless he gets rock bottom prices with the fear of very slow appreciation on the new one--finds one and keeps hesitating or loses with a low bid on multiple offers.

Posted by Cathy Tishhouse, Royal Oak Real Estate (RE/MAX Showcase Homes) about 10 years ago

Hi Bill..Great Explanation of Percent Gains and Loss's. The last two real estate down turns here lasted 8-10 years before just getting back to were prices were...the good news everyone did gain with some mortgage reduction in the ten years.

Cheers, thanks for sharing your prospective on how long it takes to get back to where we were.

Posted by Fred Carver Personal Real Estate Corporation, Accredited Real Estate Consultant (RE/MAX Camosun Victoria BC Real Estate) about 10 years ago

Cathy - It is funny how people just lose sight of possible goals if they are going to lose money on an asset.

Fred - The last real correction in Massachusetts was in 1987 and lasted until 1994. At that time it was nothing near as bas as it is now in the economy, stock market ect. In fact the stock market recovered real quickly from the correction in 1987 but the housing market took 7 years just to become more "normal". People seem to forget the facts.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

I must be one of your biggest fans.  Love your blogs always.  We will get back and hanging in

Posted by Pat Laracy Baker, Pat Baker Dream Home Maker (Realty Executives Boston West) about 10 years ago

Thanks Pat I appreciate the compliments!

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

If the incentive package helps us, maybe the first time home buyers will start buying homes.  That will give the owners of those homes a chance to move up the ladder and purchase another home.  You're right about the market.  Prices will not appreciate as fast in the future.  In our market, prices did not increase as much as other areas, and now we are only about 20% less than in years past.  Hopefully this year will slowly start to rebound.

Posted by Kay Van Kampen, Realtor®, Springfield Mo Real Estate (RE/MAX Broker, RE/MAX) about 10 years ago

Hi Bill -

"One of the things that I find most fascinating about the decision process is a sellers unwillingness to part with the lost equity on their current home, even though they will be turning around and purchasing another home under the same conditions."

I've got a seller right now going through this exact scenario....wants to sell high and buy low....they are beyond reasoning with....I've come to the conclusion that these are sellers who really don't want to sell if they can't see the forest for the trees in this market.

Posted by Julie Dumaine-Russell (RE/MAX Alliance) about 10 years ago

Kay - It is such a fantastic time for a 1st time buyer! Prices have dropped quite a bit, interest rates are at all time lows and there is an 8000k tax credit. Who could ask for more. At some point in time we will look back at this period as one of the best times in our history to buy a home.

Donna - Those are the kind of clients that will just drive your crazy. You can't have your cake and eat it too.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Bill, I loved the way you explained it.  It's going to be a long time before prices will return to those dramatic highs...I honestly can't think of a better time to buy when prices AND interest rates are so low.

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) about 10 years ago

Bill, What an excellent job explaining the market in a clear fashion.  I think the buyers in our area are listening and are out and about.  I think people waiting for the bottom of the market or things to get better will be kicking themselves if they don't act now.

 

 

Posted by Audrey June-Forshey, GRI, Gaithersburg, MD (RE/MAX Realty Services) about 10 years ago

Bill, for all the sub prime mess, lending mess, job layoffs, bailouts....it is still a market correction going on. We appreciate too high, too fast, salaries didnt' go up that much and we shut out first time home buyers.

Now we are correcting, it is hard and painful and full of corporate and govt' mistakes.

But, we are still correcting.

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 10 years ago

Bill I don't even know any more what to comment on your posts as I feel I am repeating the same song everytime about how great they are! Oh, here's one. You like the same photos as I do LOL. ~Rita

Posted by Brian Burke, Broker & Advising Expert-Denver Luxury Real Estate (Kenna Real Estate) about 10 years ago

Bill - well, as you say I think we HAVE to be as honest as we can, and no one really knows for sure what is going to happen, when, and how quickly. The decision to buy, as you implied, really depends on the individual situation, and with the interest rates being what they are, if folks have some equity or have some compelling reasons to move, this may be the right time depending where they are and where they are going. I still think we have a ways to go to reach a point where most people are feeling good about the market. That does not mean this is not a good time for the right buyers and sellers. We may not see interest rates like these for a long time.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) about 10 years ago

Hi Bill, my most recent clients understand fully about pricing right and selling low. They lowered the price as far as they can go to still have money to pay off the balance of their mortgage and have $ for a down payment on their next house. Now if only these buyers would buy already!!

Posted by Tony Orefice, Realtor/Harrisburg NC,Concord NC (Wilkinson ERA/www.TonyORealtor.com) about 10 years ago

Hey, great post. Thanks for the information about your area.

Posted by Brian Belcher, Charlotte Realtor (RE/MAX Executive) about 10 years ago

Hi Bill, although our market has not seen the decline that yours has, I have a couple of clients thinking the exact same thing.  Great job conveying your thoughts, as always!

Posted by Zilkia Olmeda-Martins, GRI, Realtor, San Antonio Texas Luxury Homes (RE/MAX North - San Antonio) about 10 years ago

Bill,

I found this post to extremely well written and very informative.  Thank you Bill!!!

Posted by Lori Churchill Cofer, Realtor - 509-330-0086 - Pullman, WA (Beasley Realty) about 10 years ago

Hi Bill, I run into to this a lot in San Diego, though strange as it might sound,in the newspaper this morning., local economists suggest that we are near the bottom with price declines and heading upward in the number of sales.  I should write  a market report but don't have the software as yet for the Mac to do the graphs and the structure for charts.  Congrats on the feature, the explaination is well based but we continue to see the resistence of the selling market and they still don't get it. They would benefit at the other end of this if they need to sell and if they don't, they should stop dabbling.

Posted by William Johnson, Retired Real Estate Professional (Retired) about 10 years ago

Brilliantly explained Bill ! ... and my market is similar to yours, but over the last 2 years we've probably seen drops of 15-20%.

I do believe it's a terrific time for buyers right now, hence the fact that I am thankfully swamped with buyers and showings and offers (oh my !)

Great post as always mate !!!!

Cheers !

Sheldon

Posted by Sheldon Neal, That British Agent Bergen County NJ (Bergen County, NJ - RE/MAX Real Estate Limited) about 10 years ago

It does not matter what state you live in, sellers and buyers alike are waiting for someone to give them that one perfect statement: "Yes, we have hit rock bottom!" Even when we are able to say that housing prices seem to be stabilizing, guess what, interest rates will be on the rise! Educating our consumers seem to be the best and only way to help them!

Posted by Terrie Leighton, Reno Real Estate Agent ~ Selling Homes in Reno (Ferrari-Lund Real Estate ) about 10 years ago

Congrats on the feature.  Good information on your area that also pertains to many areas.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 10 years ago

Well said Bill... people need to realize that home values were artificially inflated to begin with due to the massive amount of capital that hit the system along with lax lending standards.

HOWEVER...

The Treasury is printing up a Trillion to buy a trillion in debt... prices could go back up as money floods the system again.. not because of real value... but because the dollar will lose it's value and inflation is on the way.

Prices could go back up... but $100 for a loaf of bread could also be in our future..

Posted by Paul Francis, Las Vegas Real Estate Agent - Summerlin Homes (Francis Group Real Estate) about 10 years ago

 

Prices could take 10 years to recover.  Does the seller want to stay in a house they don't want to be, or don't love or can't afford for 10 years?  

That's like staying in a loveless marriage or a job you hate.  You can't put a price on the psychological damage of doing something you don’t want to do for 10 years of your life.  That could be 10% or more of your life.  This is really crazy to think that, for money, you'll stay miserable or if not miserable, unfulfilled or unhappy.  

There is an easy solution for buyers.  See my blog about EquityLock Financial.

I have a seller offering this service to a buyer that is afraid the market is going down.  If the buyer pays 1 million for a home and 36 months from now they want to sell and the Home Price Index in their area goes down 10% the homeowner will get $100,000.  The pay out is tied to the Home Price Index not the sale price of the home.  So, if the buyer paid 1 million and sold for 1.2 million and the Home Price Index fell 10% the homeowner would still collect the $100,000.

If a buyer thinks this is a waste of money then they are agreeing that the market will be up later and will not go down so buying now is the choice to make.

If a buyer thinks that the market is going to fall then the buyer or seller can buy, or split the cost of this product, so the buyer can buy now and have full protection that they will not loose equity in their home.

 

Posted by Maya Thomas, Broker, Please see my client recommendations. about 10 years ago

Good points Bill. People, who have equity are waiting things out in hopes things will get better but it certainly may take much longer than we all think before things get back to the boom days. 

As Paul mentioned, the fed's move to print 1.15 trillion yesterday was a bold one, and one that is not being talked about in the media. That money will not filter into the economy so quickly but it will start to free things up.

Not sure $100 bread is in the future, but inflation certainly is. Untill people can access credit, homes will continue to sit but those homes are definite starting to go back up in price in some areas. California has a while to go till they hit their bottom as they are still well above what prices were 20 years ago.

Posted by Everard Korthals, Mountain Realty (---Preferred Lifestyle Advisors---) about 10 years ago

Bill- great post - people seem to be stuck on the "on-paper equity" numbere here as well and do not see to get your point - I guess if we all keep saying it, sooner or later it will be understood

Posted by Randall Sandin, 843-209-9667 - Search for Charleston SC Real Estate (Carolina One Real Estate) about 10 years ago

Bill   I totally agree   My thinking is in our area in MA we will not see those home prices for  5-10 years  ( just look at the pre- foreclosures, this trend will not be ending soon )  and we know first hand the banks that have owners in trouble don't or cannot move fast enought to help them. I also try to show home sellers how they will be buying better. 

P S, I am now with  RE/Max Right Choice in Fall River Ma my agency American DReam has merged with them. 

Posted by Karen Ann Martin, Realtor Fall River Westport MA Real Estate Agent (Safe Harbor Realty ) about 10 years ago

Bill - I like Petra's comment.  We will come back and we will come back strong.  As you said, it may not be as soon as we hoped it would be.  Good post - good information.  Thanks.

Mary

Posted by Bruce & Mary Smith, REALTORS, Savannah Lakes Village McCormick SC (Savannah Lakes Homes) about 10 years ago

I've read this and now I am off to read it's sister article Selling Your House in a Buyer's market, I know it must be filled with great info for sellers who must sell during this real estate cycle.  Keep the great posts coming!

Posted by Janie Coffey, Uniting Extraordinary Homes w/ Extraordinary Lives (First Coast Sotheby’s International Realty) about 10 years ago

Missy - You bring up an excellent point when you mention that salaries did not keep pace with housing prices. I know here in Massachusetts that was certainly evident. Our housing values just got way out of control!

Paul - I do think we will see some inflation when we finally break out of the economic environment we are in but lets hope inflation is nothing like you mention. That would be just as bad as what we are facing at the moment.

Maya - Your points about the emotional side of buying and selling are well taken. If you want to move and you can then by all means you should be moving! I have never heard of the program that you mention either. That sounds very interesting. How does a company like this make money?

Victor  It was a bold move. I don't think the government can stand pat anymore and they know it. They have to sue every means possible at their disposal.

Karen - Good to hear you have made the move to RE/MAX. You will love it!

Everyone else thanks for all your comments - they are very much appreciated.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Bill, as always enjoy reading your post and this one is excellent.  It would be nice if we had a crystall ball..THe market here is not too bad, but I agree with you sellers should "Stop worrying about lost equity if they really want to move."

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty) about 10 years ago

Bill,

You're right on when you say  "Interest rates are at a once in a life time level. When the economy does finally improve interest rates this low will not last. Interest rates should be a big X factor in your decision making process." 

I posted yesterday about a "sweet spot" with interest rates and prices.  Agents who have Short Sale listings didn't like the post.  :)

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) about 10 years ago

Great points Bill - Just wrote on this same topic. If people would realize that selling low and buying low only effect you if you are looking to downsize in home . Lateral is neutral & they could make some quick equity if they were stepping up in house.

Thanks for the post

Posted by Greg Miller, Florida Home Loans - Conventional,FHA,USDA,VA (Ruoff Home Mortgage ) about 10 years ago

Bill,

You make a really great point about the change in percentage down versus up.

There are two things buyers and seller need to know.  The first thing is where is the bottom of the market?  This is the primary focus and it is near term

The second thing is a "recovery".  I my opinion, it will be years until markets will reach the high water mark that we saw in 2005 and 2006.  I believe the same to be true of the stock market.

Posted by Mark MacKenzie about 10 years ago

Hi Bill-CONGRATS on the feature. I hope the market turns around sooner rather than later just in Va the sings are some better. CONGRATS on your new listing and the one you sold. Have a great Fri

Posted by Sharon Lee, Retired and loving life (Sharon Lee's Virtual Assistance) about 10 years ago

What people don't seem to remember about the run-up in values is "they weren't a seller then"! Great blog post as always Bill :-)

Posted by Christianne O'Malley, Exceptional Service - Delivering Results in Reno! (RE/MAX Realty Affiliates) about 10 years ago

Bill, as always, great post. I am of the opinion that prices were out of control, they need to be affordable to whatever group of people the home is geared to. I really love your post, thank you for saying it so well.

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) about 10 years ago

Mike - If interest rates are not a consideration then buyers and sellers are both looking past an important component of the decision making process.

Mark - I would have to agree that both the housing and stock markets will take years to get back to the levels they were at.

Sharon, Christianne, Andrea, Rebecca, Sharon/Greg - Thanks for the compliments on my article...very much appreciated.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Bill,

Being in the same market as you, I too have encountered these issues. It does help to educate your clients. Interesting post!

Posted by Randi Steckler (RE/MAX Executive Realty) about 10 years ago

Bill, can I say ditto ten times? Heck, it only makes sense. So? You won't sell your house at the higher price, but neither will you be paying that higher price. Good explanation.....our interest rates are awesome. ;-) Wow, and your article was reblogged twice. ;-)

Pepper

Posted by Mesa, Arizona Real Estate Mesa Arizona Realtor, AzLadyInRed (Homes Arizona Real Estate LLC) about 10 years ago

Bill - Great points regarding selling a property.  I totally agree that sellers should look at the opportunity on the other end but it is hard for them when it may be easier "to wait till the market returns".  Like you said, they may be waiting awhile.  It is hard.  But it is better than taking listings that have no chance in selling.

I was on a listing appointment yesterday where I told the guy $110 to $120K.  The Realtor that he saw prior to me said $140 to $160K  and his neighbor said dont selling for a penny below $160K.  LOL, so there is a lot of confusion out there !  Even $110 to $120K is a bit on the high side : )

 

Posted by The Somers Team, Real People. Real Dreams. Real Estate. (The Somers Team at RE/MAX Access) about 10 years ago

The first reason to buy a home is for the benefit of having a place to raise and enjoy your family. The appreciation should not be the only reason to buy your home.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) about 10 years ago

Bill I am glad that you gave that example showing that it requires more than a 25% increase after a 25% decrease to just get back to the same number.  It is hard to see unless it is demonstrated like that.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 10 years ago

Randi & Teri - Thanks for your comments on buying and selling Real Estate in Metrowest Mass.

Chris - That is one of the most frustrating parts of our business. If you take a step back a moment and look at your scenerio from the outside, the appraisal figures on the home are not even close. As a seller, they really must be scratching their head. Of course if they were really objective and looked at the cold hard data they should be able to see which Realtor is telling the truth and which one is giving them pie in the sky figures.

Terry - Another very good point. There are other thoughts that should go into the decision making process besides the financial side.

George - Thanks. I bet most people do not realize this fact. I learned it a long time ago watching my stocks go down:)

David - Thanks for the compliments of the graphics.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Great reading for potential buyers and sellers. I particularly like the comment that for stocks or homes, after a property has declined x%, when it increases by the same % it isn't back to where it started!

Posted by Sharon Simms, St. Petersburg FL - CRS CIPS CLHMS RSPS (Coastal Properties Group International - Christie's International) about 10 years ago

Sharon - Thanks. There are many that don't realize how the numbers actually work. It is amazing when you see it in black and white.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

Bill - Excellent response to those too familiar questions.  Now when you get the questions again you can send them to your blog, or better yet make it a part of the pre-listing package.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) about 10 years ago

Bill, I'm not surprised this was featured. This should be in a magazine! We are seeing signs of the bottom of the market as far as inventory being down but prices still have a ways to go. I also like the comment about prices going back up but if they decline 20% and then go up 20%, it won't be the same dollar amount. People don't think about that, do they?

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) about 10 years ago

Jennifer - Right on! I have already emailed this to a few.

Sharon - I am looking forward to a great Spring Real Estate market as well. Things have really picked up here in Massachusetts.

 

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

It's our job to keep it real.  To be successful in today's market requires a fresh approach and new way of thinking.  There are plenty of buyers out there, you are one of the few Realtors that can help sellers create that demand for their home.  For many sellers, now is not the time to wait.

Posted by Jason & Amber Gardner, We're Committed to Your Success! (Hasson Company, Realtors) about 10 years ago

Amber - I know there are some that would love to move that just can't because they have no equity left and don't have enough saved for a down payment on a new place. There are plenty though that can but don't because they just can't let go of their lost equity. Many do this with stocks too. Some will sell their winners but hold the losers. They just can't bear to take a loss and end up losing more in many cases.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

This should give sellers something to think about very seriously as they make decisions about what step to take next.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) about 10 years ago

Christine - Every sellers has different motivations for leaving the home they are in. Looking at the whole picture objectively can be a big help in the decision making process.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) about 10 years ago

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