Open House 8 Windmill Lane, Atkinson NH Saturday Oct 22nd 11-1

Will Fannie's "Tool" Sink Your Home Sale?

Getting to closing in an appreciating market, when the buyer needs a loan (which means the bank requires an appraisal) has always been a challenge as it can be difficult for the appraiser to find adequate sold comparables to justify the sale price if values are going up rapidly.
Well things may have gotten exponentially more difficult with the addition of Fannie Mae's "tool", Collateral Underwriter.
Collateral Underwriter is a software program which is supposed to be a "risk management tool" that lenders can use to have a "constructive dialogue with the appraiser to resolve specific appraisal questions or concerns".
The reality is that, despite Fannie Mae's protests to the contrary,  the program is basically a juiced up Automated Valuation Model (AVM) - think Zestimate on steroids.  The problem with Zestimates and all AVMs, including Fannie's new tool, is that they lack the ability to differentiate between geographic locations and we all know the first tenet of real estate is location, location, location!  (They also lack the ability to tell which house had 30 cats and a cigar smoker living there but that's a whole other issue.)  They all take every sale within a proscribed radius and average the sale price.
I personally had a very telling experience with two of my listings and their Zestimates.  One listing was an updated and upgraded townhouse in a very desirable and well maintained development.  The development is small and units don't become available there too often but when they do, they sell well.  The other listing was a small, basement level, garden style condo (think converted brick apartment building).  The listings are in two different towns.
The interesting thing here is that the Zestimate for the townhouse came in about $25,000 lower than where it sold because the development it is in is within a certain number of miles from another much larger, more congested and less well maintained development where properties sell for less.  Zillow can't tell the difference.
On the other hand, my little basement condo received a Zestimate that was easily $100K more than it would EVER sell for because of it's proximity to another more desirable development that has much larger townhouses (as opposed to the subject property's apartment-like units) and is much more well maintained.  Apples to oranges!  A newbie real estate agent with the ink still wet on their license would know that, despite geographic proximity, you cannot compare the two developments...but Zillow doesn't know that...and neither does Fannie Mae's tool.
And that, my friends, is the problem.  This tool will potentially generate numerous erroneous comps which will raise flags (interestingly, Fannie admits that comps that come in above the appraisers value WILL NOT raise a flag but comps that come in below WILL raise a flag) which will cause appraisers to either spend a lot of time justifying the comps they did use and justifying why they did not use the comps that CU comes up with OR they will have to go with the lower comps.

Will this sink your sale?  The National Association of Realtors has reported an uptick in the number of contracts that have fallen through because of appraisal issues and The Mortgage News Daily published an article which indicated that there has been an increase in appraisals reflecting market values well below what has been expected.  Mortgage News Daily queried their members about this phenomenon and Fannie's tool was mentioned more than frequently.
Fannie Mae responded by reissuing instructions clarifying what constitutes the appropriate use of the tool. In particular that CU is not meant to be used in place of the lender's own due diligence in performing an appraisal review and that it's license prohibits a lender from using it in a manner that interferes with the independent judgment of the appraiser.
However, as recently as last month there were reports of lenders actually rejecting appraisals that came in at contract price but were flagged as "over value" and/or pressuring appraisers to ditch certain comps and use others to bring the value in line with the value produced by Fannie's "tool".
What can you do as a seller?  The first thing is to just be aware that this is going on so that you can make realistic and informed decisions about the sale of your home and your next purchase and the second is to realize that listing your home for a price that is beyond the most recent (truly) comparable sold comps is probably not going to end well.
For a realistic evaluation of your home's value, you can contact me at 603-490-5344.

Coming Soon! 8 Windmill Lane Atkinson NH 03811

This stately hip roof colonial exudes classic New England charm!
From it's brick walk way to it's pillared front porch,
to it's two story entry foyer with turned staircase, this home welcomes you!

They say the kitchen is the heart of every home and this kitchen will fill your heart with joy!


Constructed with equal parts efficiency and charm, it's sure to be the heart of your home!
And how can you help but fall in love with this eating area, with it's rounded shape, domed wooden ceiling and multi-paned windows which let in lots of light and the peaceful wooded view?
Perfect for entertaining, the kitchen leads into a spacious and gracious family room

which offers hardwood floors, crown molding, sliders to the deck, tons of space
and a custom designed arched brick, gas fireplace to keep you cozy on those chilly days and nights to come (the central air will keep you cool during the summer heat).
For those more formal occasions, the dining room, with it's tray ceiling and beautifully detailed hardwood floor, is on call!
Across the hall from the dining room sit two more rooms.  How will you use the space?
Formal living room to office? Music room to library?  The choice is yours.

Lovely french doors separate the two rooms.
The second floor of this delightful home offers a master suite large enough to be a true oasis
complete with a dual vanity master bath with whirlpool, overlooking the private back yard, separate shower and a walk in closet large enough to count as a small room.
Three more generously sized bedrooms,  a main bath, a charming laundry room and a stairway to the finished attic playroom rounds out the second floor offerings.
In the event you need more finished space, you'll find it in this home's daylight lower level.


You'll find this enchanting home sitting squarely at the intersection of comfort and style on a 1.120 acre lot in a lovely neighborhood.  Highly desirable, Atkinson, New Hampshire is conveniently located right on the Massachusetts border.
Offered at $610,000.
Showings begin on Saturday, October 1st.
You can contact me at 603-490-5344 for more information.

Coming Soon! Contemporary Saltbox Colonial In Londonderry NH 03053

Looking for a user-friendly colonial floor plan with a little extra sense of style?  You'll find it sitting prettily at the end of a cul-de-sac at 18 Victoria Drive in Londonderry.

Everything about this home, from it's siting on the lot, to it's beautiful stone walkway,
    to it's gorgeous skylit Great Room
    to it's multi-level Master Bedroom Suite

celebrates a unique sense of style.
This home also offers two more bedrooms each with it's own private bath, an efficient working kitchen adjacent to a spacious eating area

and additional finished space in the walkout lower level.
The expansive cedar decking  which wraps around 3 sides of this lovely home was built in 2015 and invites you to expand your living space to the outdoors.
The grounds are a delight in any season, offering just the right mix of lawn, perennial plantings and natural woods.
(Early summer 2016)

   September 2016
And something to look forward to next spring!

This stylish multi-level home offers a total of 2779 square feet and the central air will help you keep your cool in this hot, hot, hot real estate market.  Offered at $330,000.  Showings start on Saturday, September 17th.
Don't miss out!
You can call me at 603-490-5344 for more information or to schedule a private viewing.

Coming Soon! 90 Allamimo St Manchester NH 03102

This perfect little jewel of a home will have you from hello!  From your first glance at it's lovely neighborhood setting and inviting landscaping, it will be love at first sight!

Four Things A Home Buyer Might Tell A Seller

1.   YOU'RE SHOOTING YOURSELF IN THE FOOT WHEN YOU OVER PRICE YOUR HOME.  Yes, even in a relatively hot market!  Today's buyers, particularly those working with a knowledgeable buyer's agent (and most serious buyers are), have access to a wealth of information about what comparable homes have sold for and what you are competing with.  They will be unwilling to pay more for a home just because it's yours (not to mention the whole appraisal issue).  Further, if your home is priced higher than it should be it will compare poorly against other properties which are properly priced in that range.  The bottom line is, do you want to price your home to sell it or do you want to price your home to help sell others?
2.  THE MINOR MAINTENANCE ITEMS YOU LEAVE UNDONE BECAUSE THEY'RE "NOT IMPORTANT" MAKE WE WONDER WHAT OTHER, MORE IMPORTANT BUT LESS OBVIOUS, THINGS YOU'VE LET SLIDE.  Seriously, the unknown is always a little frightening to people and buying someone else's house falls into the category of major unknown.  Don't frighten off potential buyers by leaving maintenance items undone.  Same goes for cleaning and organization.  A lack  in either or both areas sends a message of neglect which will show up in the offers (or lack thereof) made on your home.  So, do yourself a favor and "get 'er done" before you put the house on the market.
3.  YOU SHOULD TAKE PREPARING YOUR HOME FOR SALE SERIOUSLY.  In today's world of HGTV, DIY and Professional Staging

buyers have high expectations, particularly as you move up the price point.  If you can afford to have your home professionally staged, you should do it.  Data has shown that staged homes sell more quickly and for more money.  If you can't afford a full staging, you should take the advice of your real estate agent or a stager you hire by the hour (your agent can recommend someone) about what belongings, decorations and furniture to "edit" out;  what changes or improvements will give you the biggest bang for your buck and what finish materials (countertop, flooring, paint) have the broadest appeal.  Remember, once you decide to put your property on the market it ceases to be your home and becomes your product.  You want to present your product so that it sells as quickly as possible and for the most money possible. Right?
4.  HOW COULD YOU LET PICTURES THAT LOOK THAT BAD APPEAR ON LINE? Dark pictures, blurry pictures, pictures of the front of the house that include the side view mirror of the picture taker's vehicle, not to mention pictures that memorialize your breakfast dishes or your dirty laundry.  With regard to these last two items, reread Items #2 and #3 above and take them seriously.  With regard to the rest, part of your due diligence when interviewing agents should be asking for examples of how they've presented past listings.  An agent who cannot be bothered to take good pictures (or have them taken) and present them in an organized and pleasing manner is probably not an agent you want representing you.

For help getting your home sold in Southern New Hampshire for the best possible price and terms, you can contact me at 603-490-5344.

Winning The Race - How to Be A Successful Buyer In A Seller's Market

This year has certainly been frustrating for buyers.  There is very little available on the market and homes that are priced appropriately for their location,  size and condition are off the market as fast as they come on.  It can seem like a hopeless race with too many hurdles at times but, as I tell my buyer clients, you only have to find one home.  Despite all evidence to the contrary, the right one will come along so the best thing you can do is make sure you are absolutely prepared when the opportunity presents itself.

 So, What Steps Can A Buyer Take To Prepare To Be Successful In A Seller’s Market?

FINANCING FIRST! I cannot stress enough the importance of getting your financing ducks in a row BEFORE going shopping for a home. It’s critical that you understand how a lender is going to look at your income and debt (which may well be different than the way you look at it) because that will impact how much of a loan you can obtain which, of course, will impact what price house you can buy. There is nothing worse than falling in love with a $350,000 home only to find out you can only afford a $325,0000 home. In a seller’s market that is an insurmountable difference.

The other critical reason for financing first is that if you do fall in love with a house that is in your price range, the seller will not consider an offer if you cannot show that you are qualified to purchase it. And, considering the market, if you start the financing process AFTER you find THE house, there is a very good chance it would be gone before you could go to a lender, provide that lender with all the necessary documentation and obtain a valid financing letter.

Become Educated Regarding The Market Area You Are Interested In. Location, Location, Location is more than just an old saying, it has meaning. You could take the same house and move it to different towns and it would sell for a different price. Also within a given a town the same house would sell for a different price depending upon its location within the town…cul de sac neighborhood vs main street, for instance… so you need to become acquainted with what your dollar will buy in the area you want to be in.

Set Realistic Expectations. Once you understand what your dollar will buy, you can go through your fantasy list of wants…at least 3,000 s.f., 4 bedrooms, 3.5 baths, finished lower level, brand new kitchen with granite counter tops, hardwood floors, 3 car garage and determine which of those wants are attainable, given your budget, and which need to be adjusted.

Make Yourself Available. In a hot market, there is a good chance the home of your dreams will not be available long. Reconcile yourself to the fact that your home search may not always be convenient.  Actually, do yourself a favor, reconcile yourself to the fact that your home search WILL BE inconvenient.

Make A Strong, CLEAN Offer. A seller’s market is not the time to lowball! If you find THE home, make a strong offer right out of the gate. DO NOT ASK FOR MONEY BACK TOWARD CLOSING COSTS UNLESS YOU REALLY NEED IT AND DON’T CLUTTER UP YOUR OFFER WITH A LAUNDRY LIST OF PERSONAL ITEMS YOU WANT (that will create a problem with your financing anyway)

Understand That There Is More To An Offer Than Price. The sellers and their agent will be looking at your qualifications (financing first!), how much you are putting down, the terms of any contingencies – home inspection, financing – you need to strike a balance between so long it won’t appeal to seller and so short it is not do-able, what you are asking for (do yourself a favor – DO NOT ASK FOR things the sellers specifically excluded), whether or not you need money back toward closing costs (do not ask for it unless you really need it).

Understand That The Seller Is Not Tied To You Just Because You Have Made An Offer And You Are “Negotiating” With Them. A common buyer misconception is that once an offer has been made in writing and the seller has responded (either verbally or via email) that the seller is now tied to them until they “finish negotiating”. That is not true. Until all terms have been completely agreed to and all parties have signed the contract, the seller is free to take another offer. So, don’t mess around. Make your best offer right out of the gate. You may not have another chance.

Understand The Purpose Of A Home Inspection. The purpose of a home inspection is to uncover serious defects to the structure and systems of the house that were previously unknown to the buyer. I bring this up because some buyers are under the misperception that the home inspection is an opportunity to renegotiate the agreed upon sale price. If something that is serious and was previously unknown is uncovered, then certainly, the sale price might be renegotiated or the seller might agree to fix it but if the item was previously disclosed or is typical for the age of the house, the seller will most likely not agree and then the buyer will either have to accept that or will have to withdraw and will have lost the money they spent on their home inspection. So, make your offer based upon any already disclosed items.

Do Not Get Caught Up In A Bidding War And Go Over Your Maximum Comfort Level. It goes without saying that you should not offer more than you are approved for.  You should also not offer more than you're truly comfortable with, regardless of whether you're approved for that amount.  Only you know what your best offer is.  It may be asking price, higher than asking or lower than asking.  Your best offer is the offer that you will be comfortable with if  accepted and, even more importantly, it is the offer that you will be comfortable with if it is not accepted.  There is nothing worse than discovering what a property you bid on sold for and realizing you would have been happy if you bought the house for that price.

DO NOT GET DISCOURAGED AND DO NOT GIVE UP!  If you get your financing in line, do your market research so your expectations are realistic and make YOUR best offer right out of the gate, you can be successful!

For help successfully purchasing in Southern New Hampshire's Seller's Market, you can contact me at 603-490-5344.