I was on a listing appointment the other day and the seller asked me “What will it cost to sell our Eastman Home?”

So I broke out my computer and pulled up my most recent settlement statement or more commonly referred to as a HUD statement.

The biggest expense that a seller has is the commission paid to the Real Estate Broker. I know it’s expensive but there is an unbelievable amount of work that goes into selling a property. After the commission the next biggest expense would be the New Hampshire State Transfer Tax. The rate is 1.5% of the sale price usually split between the buyer and seller. Let’s take a $300,000 sale price. Multiply buy 1.5% and divide by two and the buyer and seller would pay $2250 that goes to good old New Hampshire.

Legal fees usually are not much for a seller. The seller has the deed prepared and barring any unusual circumstance the cost runs about $125-150. Town taxes can vary widely depending on the date of closing. Some time a seller will get a credit back for pre-paid taxes and other times they will have to pay in. Like I said it all depends on the date of closing and the tax billing cycle.

Most closing the seller will see a credit or money coming back to them for fuel in storage. If you use oil or LP Gas and there is fuel in the tanks, the buyer will reimburse the seller for that fuel. Association fees are another credit back to the seller. If you live in a community like Eastman, sellers will get money back as long as their dues are paid in advance.

And of course if there is a mortgage balance, the balance must be paid in full at the time of transfer. The mortgage is secured as a lien on the property and is recorded at the County Registry. This really isn’t an expense but a settling of debt.

This might not be the entire list of expenses for all property transfers but for the basic home or condo, this should give most sellers a good idea of what to expect.

The town of Grantham and the community of Eastman NH are going to get a town wide reassessment. The process is underway but will really take off after town meeting. Both new construction and recently sold homes are going to be the focus and will be the basis for all properties in the town.

For the full details down load the News Release PDF issued by the town.

The numbers are finally in. Although on a national level they are not great, locally they are not bad.

Home sales dropped 7.2% from December to January but the good news is January 09′ to January 10′ sales were up 11.5%
I see this as a positive number as inventory seems to be declining also.

As for the Northeast, existing-home sales fell 10.9 percent to an annual pace of 820,000 in January but are 22.4% above a year ago. The median price in the Northeast was $245,300, a gain of 8.8% from January 2009. When prices start to go up that is never a bad thing.

On a more local basis. January was a so much better this year than last. In the Eastman Community there were 5 home sales in Jan. 10′ vs. 0 home sales in Jan. 09′. There were also 2 condo sales this January vs. 0 units sold in 09′

Statistically these numbers are staggering but I think they are way to unrealistic to put percentages on them. Here’s something to consider though. It took, starting Jan. 1st through May 31st to get a total of 10 home and condo sales in Eastman last year. Are we going to have a better year than last. I believe so! Will prices start to increase? That, I do not anticipate. There is just to much inventory on the market for prices to increase. Price stabilization? Maybe… it will depend on weather we sell 40 units or 60 units.  If we get into the 60’s for total unit sales that would help to cut the inventory, which will help pricing power.

I’m including the State, Merrimack and Sullivan Counties Sales Stats Jan-2010. As you will see on page one, all trend lines are still heading in the wrong direction. Again, I am not a huge fan of days on market as that number can be manipulated several ways. If a listing changes from one agency to another. If a listing is withdrawn then entered as new after 30 days (which is perfectly legal). There are others but you get my point. Cost per sq. foot and median sales price are good to look at.

This is the time of month that I usually post the State & County Sales Stat.

What I really want to talk about is what has happened to Eastman in the last year to year and a half. Here are some great numbers that to look at:

After the financial crisis of September 08′ buyers that were in the middle of a transaction kept going and stayed the course. In the fourth quarter there were 10 total transactions, 6 homes and 4 condos were sold. A respectable number considering buyers basically vanished. We didn’t see the affects of the melt down until the first half of 09′ particularly the first quarter. There was one condo sale and three homes sold. By the end of the second quarter there were 11 home sales and one condo for a total of twelve for the quarter. The total home/condo sales for the first half of 2009 is 16.

The third quarter 09′ things in the financial markets were starting settle down and the stock market was showing signs of recovery bouncing as much as 20% from the lows of the year. This stabilization brought out some home buyers along with tax incentives, low interest rates and fallen home prices. Buyers were looking, but the weather played a roll as the early summer months brought plenty of rain. From 07/01/09 through 09/30/09, six homes and four condos sold. A slight drop from the previous quarter.

Nicer weather and the looming end to tax credits brought buyers out the decision to buy was made. There were 17 total transactions. Twelve homes and five condos were sold. This momentum seems to have carried over to this year as the first five weeks of 2010 we have had five home sales and two condo sales, far surpassing 09’s first quarter already.

As long as interest rates stay around 5% we should see this momentum carry on. The forecast is for rates to rise to 6% or higher and I believe that will stop the rebound in housing sales. I can only hope we don’t see a fourth quarter like the first quarter or 09

Eastman Home Sales Chart

The Eastman community has 336 condos. There are six basic floor plans but the original four designs are the most common. They are the Wheelock, Webster, Ledyard, and Parkhurst. The Wheelock is the smallest floor plan. A two level has approximately 1155 square feet. The Parkhurst is the largest of the original 4 totaling approximately 1521 square feet on two levels.

There are some variations to the floor plans but most changes are found if there is a lower level. Many lower levels were finished to the original owners liking, without changing any structural supports.

Websters and Parkhursts are the two units that could be altered the easiest on the main or second floor. Some were altered during construction and some interior changes take place as properties change hands or owners needs change.

Another variation found is with the Ledyard. Nearly all were built with spiral stairs. The exception is in West Cove “C” where a slight floor plan change was made adding some square footage but most importantly removing the spiral stairs and changing the stairs to a more conventional style.

Last but not least is the addition of the A Design and the B Design. Towards the end of the condo development there was a decision made to adapt the four original units by taking the best features of the four and build two options. These units three floors, the “A” has 2300 square feet and the “B” has 2489. These units not only make great vacation getaway’s but work well for full time living. The only issue with these units is the fact that there is limited supply. Only 53 are in existence vs. 283 for the original four.

The latest local sales stats are finally out. For New Hampshire, the average days on market is down and the median sales price is up month over month, up 20%. That’s great news for sellers. The third number that I like to watch is the average selling price per square foot. This number was down month over month but is still well above the five year low set in February of 09′.

Grantham home sales were up month over month mostly due to the strength in Eastman home sales. We have seen a significant jump in activity locally. I know that 2009 started off in a terrible way. As bad as it was in the first few months, I know that we finished strong.

If you do download the PDF, I’ve also included the sales stats for Sullivan and Merrimack Counties. The most interesting stat I see in the county breakdown is that fewer new listings are coming on the market. This seems to be a trend as I have noticed that for several months. If this trend continues, the total inventory will become less, as homes sell there will be fewer and fewer choices and that will translate into pricing stabilization and even strength.

I’ve said this many times before but a shrinking inventory and interest rates that are bound to rise, now is the time to buy. If there is any downward price movement in homes, and I doubt there will be much, it will cost you so much more if you get a higher interest rate.

Sales Stats November 09′

In the State of New Hampshire starting January 1st, 2010 all building inspectors “practicing or conducting home inspections” must be licensed by the The New Hampshire Board of Home Inspectors.

The new statute RSA 310-A:189 reads like this:

License Required. Beginning January 1, 2010, no person shall practice as a home inspector or conduct home inspections in this state without a home inspectors license issued by the board.

I know there are two sides to this story. Some inspectors say that if an inspector is bad or not doing a good job, they will eventually disappear as they will not get enough work to survive. I believe that is true as with any business, especially in the service industry your only as good as your last job. The good survive and the others find a new line of work or work for someone else.

My thinking on why this license requirement is good is; It will create a minimum standard for all inspectors. There will be a place to go if someone has issues, either bad or good. A central location to find inspectors, this is always an issue with new buyers. Buyers need information and it is hard for them to find an inspector an compare one to another. There are many different certifications that inspectors carry and hopefully a central board will help sort these designations out.

I am fortunate to have worked with several very good inspectors over the years but I think the consumer or buyer will benefit from this license requirement.

This is a great article on the First Time Home Buyer’s Tax Credit. Click on the continue reading button to get the PDF link. This is worth reading if you are planning to buy or even thinking of buying.

With interest rates as low as they are right now and home prices at their most affordable buying rather then renting is just an opportunity that shouldn’t be passed up!

Tax Credit Advice

I had a chance to stop at the boat launch on Little Lake Sunapee. It was such a beautiful day in November that I took some video of the lake. I’ve spent a lot of time on the lake in a kayak or boat. It’s one of the best lakes around with such easy access.

Click on the continue reading button to get the YouTube link.

http://www.youtube.com/watch?v=VCKTYnQRKKA

I was in Sunapee the other day looking at some of the best lake and MT view lots that have been available in a long time.

Click on the continue reading tab to get the hot link to the video I took while I was up there. The video is posted on YouTube

http://www.youtube.com/watch?v=e9s4zwlZg-E