Market Madness in Bolton, Mass

Lest anyone think that the pain in the real estate market is being borne solely by sub-prime buyers in the lower echelons of the market, there is ample evidence in some upscale country towns that this is not the case.

This morning's MLS updates brought the news that an 18-month-old home in the young, up-and-coming Northwoods subdivision has been listed for $950,000, with the unusual disclaimer, "Please save everyone's time; price is nonnegotiable." What makes this case so interesting is that the current owners purchased the 6000-square-foot residence (new) for $1,082,000 in June of 2006 and purportedly poured another $200,000 into it for custom upgrades, including a fully finished lower level. The property is currently assessed for $1,036,900, and ominously, the sale is "subject to bank approval."

The market has not been kind to these sellers. They first listed their home in August, 2007, for $1,250,000, and subsequently reduced it to $1.1 million in October, finally taking it off the market just before Christmas.

There are currently 47 MLS-listed homes on the market in Bolton today, with an average asking price of $833,409. Twelve of these (about 25%) are priced at $900,000 or more. Only one home in the entire town is under contract, that that one is priced much more modestly, under $500,000.

The town's current absorption rate suggests that these upper echelon homes could linger on the market for as long two years. In the last six months, 35 MLS-listed homes were sold in Bolton, with an average sale price of $619,511. Only three of these homes were priced over $900,000, including one in the same Northwoods neighborhood, which closed in December at a reported price of $912,000, excluding buyer-paid upgrades.

Consider the Neighborhood!

Real estate guru Barbara Corcoran stresses the importance of scoping out a neighborhood as part of a buyer's due diligence in buying a home. That means driving around at different times of the day, and getting out of the car to walk around and talk with residents and local merchants. You may notice things you didn't perceive from the vantage point of your dashboard, such as noise, smells, untidy backyards, or barking dogs, all of which can affect future property values.

Ms. Corcoran offers 9 Smart Tips on How to Handle Nasty Neighbors, and also counsels would-be purchasers to be wary of selecting homes that are near or adjacent to country clubs, intersections with stop signs, empty lots, or halfway houses, all of which can be sources of unwanted traffic, noise, or the kind of unrelenting activity that does not make for a serene environment.

Market Conditions Reports for Princeton and Harvard

One of my New Year's resolutions is to post regular Market Conditions reports for the towns I cover, with statistics and perspective on what is happening in the respective real estate markets for each of these distinct areas.

Here is my current report for the town of Princeton. It presents a sobering picture of what home sellers are facing, showing a 17-month supply of homes, based on the purchasing patterns during the last six months.

Today's report for Harvard shows an uptick in activity in the under-$500,000 price range, with three homes in that tier of the market having accepted offers since the beginning of January. The high-end picture is sobering, with a 24-month supply of homes in the $900,000 and over range.

Buyers' Contingency Strategies May be Backfiring

I have been involved in two situations during the last three weeks in which buyers with homes to sell submitted lowball contingency offers. Their strategy backfired.

Sellers are not fond of working with buyers who have home sale contingencies, but in this market, they have had to do so. It's possible to structure these deals so that everyone wins. But in order to persuade a seller to consider the contingency, the buyers must make an attractive offer, and they have to demonstrate that they are taking aggressive action to ensure that their home sells within a reasonable period of time.

In one recent case in which I was representing the seller, the buyers submitted an offer that was about $20,000 below the assessed valuation. The offer was sent to my clients without a preapproval letter, and with not one, but two home sale contingencies. One of the homes that the buyers needed to sell was not even on the market at the time of the offer, and we were informed that because of the holidays, it would be at least two weeks before it would even be listed. Needless to say, the sellers were less than enthusiastic about negotiating with these buyers, and the offer quickly fell apart.

Another seller client recently received a similar contingent offer, more than 12% below the asking price, contingent on the sale of an out-of-state property. The buyers asked for three months to put their current home under agreement. This would have put the sellers in the unenviable position of having to wait out the spring market for a sale that may or may not ever happen. Even with a 48-hour right of first refusal, it would not have been a "win-win" situation.

What surprises me, I guess, is that the buyers in each of these situations weren't savvy enough to make the sellers an offer they couldn't refuse. If they had done that, these two properties might be under agreement today.

Is the Massachusetts Market Springing Back?

No one is sure whether it's the unseasonably warm weather, or a meaningful shift in buyer sentiment, but there are rampant anecdotal reports of increased activity in the local housing market, at least in the greater central Massachusetts region.

For example, I am working with some buyers who are interested in purchasing a condo in southern Worcester County, and we've been looking at a variety of units in Grafton, Millbury, Northbridge, Hopedale, and Uxbridge.

My buyers decided to add the town of Auburn to their list of possibles, but when I called, over the weekend, to arrange an appointment for a cute townhouse there, the listing agent told me, in a tone of disbelief, that he'd just received two offers on this unit, and that the seller expected to choose one of them within the next few hours. This townhome had been on the market for about three months, with little activity, and suddenly, everyone wanted it!

There are 13 condominiums currently on the market in Auburn, with an average price of $225,408 and an average time on the market of 138 days, according to MLSPIN. (Two of these units have accepted offers but they are available to be shown for "backup.") This represents a six-month supply, based on the fact that during the last 180 days, 13 units have sold in Auburn for an average price of $192,431.

So it looks like even though current list prices for condos in Auburn are about 10% higher than the most recent selling points, buyers are making offers and whittling down the inventory.

Whatever the reason, this is good news!

What is that snake in my sunroom?

It was a pretty quiet Memorial Day weekend, except for Saturday night, when I heard a commotion in my sunroom, home of my Spanish Timbrado canaries. Intrigued, I came downstairs and turned on the light and was taken aback to see my orange tiger cat, Neil, proudly keeping watch over a coiled pile of a snake--a pretty long snake at that!

Horrified, I could see that Neil had apparently been playing with the then-unidentified snake, which seemed woozy and unhappy to be the object of the cat's attention.

I hurriedly scooped the snake onto a magazine and brought it out so that it could sidle into the bushes.

I have no idea how the snake got into my home, but I thought it would be interesting to find out what kind of snake it was. I was delighted to find a fabulous online resource on Snakes of Massachusetts, compiled by U. Mass Amherst. It offers a species-by-species guide to the snakes found here in the Commonwealth, and I was able to identify my visitor as an Eastern Ribbon Snake, a harmless snake that frequents ponds and wetlands, like those in my backyard.

Home of the Week in Carlisle!

Here's the view from the front porch of this expanded contemporary farmhouse, overlooking glorious open fields on Curve St., one of Carlisle's most scenic country roads.

On 2 acres, this appealing 4-bedroom home is loaded with extras, including an au pair suite, two laundries, a large 2nd floor studio, and a 3-car garage. It offers over 4300 sq. ft. of very livable space.

Originally listed at $975,000, this light, bright, open-concept home is currently priced at $939,000. It's listed by Coldwell Banker Residential Brokerage in Concord, and I'd be happy to arrange an appointment, or send more information, if it piques your fancy!

Siggy Needs a Home

This is Siggy, a beautiful black and white springer spaniel who needs a new home, now.

I met Siggy as part of my work for the New England English Springer Spaniel Rescue, an all-volunteer group of people throughout the Northeast who love Springers and spend a lot of their spare time trying to place needy ones in new loving homes.

We haven't been able to find a home for Siggy, and he's running out of time.

Siggy just turned 14 years old, but looks more like he's 10. He's healthy and friendly, and does not deserve the fate his owners are contemplating--to be put to sleep because he sometimes barks when they leave him at their summer cottage. Siggy has a lot of love to give, and a lot of life left.

He gets along well with other dogs and cats, and is very attached to his people. My feeling is that if he were in a home with other dogs, he wouldn't be so lonely.

If you'd like more information about Siggy, please contact me. Time is running out.

Using Feng Shui to Buy, Sell, and Move In to a Home

I am a trained Feng Shui practitioner, and often use the principles of this ancient art of energy flow to assist my buyer and seller clients in assessing or enhancing the merits of the homes they may be purchasing or selling. I know that when Feng Shui techniques are used appropriately, and with a sincere and focused intention, they act as powerful tools to transform an environment.

Barbara Madding and Peg Donahue, who are colleagues and good friends of mine, and together offer Feng Shui analytical services through Feng Shui Connections, have founded the New England Center for Feng Shui and Intuitive Arts, which offers seminars and workshops on a multitude of fascinating topics including Feng Shui, dowsing, geopathic stress, and architectural psychology.

For the next three weeks, they will be offering Thursday evening teleclasses of particular interest to those who are in the process of buying, selling, or moving into a new home.

On Thursday, March 16th, the focus will be Using Feng Shui to Attract the Perfect Buyer for Your Home, which will outline how you can prepare both the interior and exterior of your home for sale, and highlight the strongest areas of your property to maximize its appeal.

On Thursday, March 23rd, Barbara and Peg will provide Feng Shui Tips for Purchasing Your Home, a discussion of which shapes, sites, and qualities are likely to be supportive to the lives of a home's inhabitants and which could create unwelcome challenges.

On Thursday, March 30th, the series comes full circle, with a workhop on Moving into a New Home and Settling Your Chi, which will describe simple space clearing techniques to rid your new home of old energies from the past occupants, and instill fresh life force that is harmonized to support your highest good.

You don't even have to leave the comfort of your own home to participate in these teleclasses, which will be conducted from 7:30-9pm on a conference call line. You can register online at the NECFS website; the fee is $35 per teleclass, or $90 for the series. If you're interested in participating but can't be present for the live teleclass, no worries! The classes will be taped and will be available for listening for 60 days after the event.

The Sale of Fernside

Well, it's finally a done deal.

After 899 days on the market, Princeton's beloved Fernside has been sold, for $1.9 million.

The majestic 19th century mansion will undergo a transformation from a Bed & Breakfast Inn to a residential treatment center, affiliated with McLean Hospital in Belmont, according to published reports.

New Federal Standards for Arsenic in Water

Homeowners in New England, where there are about 2.3 million private wells, should be aware that as of January 23, 2006, the EPA has greatly reduced the allowable amount of arsenic that can be present in drinking water, in order for it to be considered safe or "potable," from 50 parts per million to 10 parts per million (Maximum Contaminant Level = 0.010ppm).

It is estimated that up to 15% of all private wells in New Hampshire may not meet this standard.

Though the regulation was promulgated in January 2001, it did not take effect until today. If you purchased your home during the last several years, and would like to retest your water to ensure that it complies with the new standards, you can find a list of Massachusetts DEP-certified labs online.

If you rely on well water and are considering selling your home, it would be advisable to investigate the arsenic level now, and take remedial action, if necessary, for your protection and to forestall problems once your home goes under agreement.

The Boston Home Show

Whether you're buying a home, redoing a room, or just dreaming about the possibilities, The Boston Home Show, opening on Friday, January 13th and running through Sunday, January 15th at the Bayside Expo, offers a wealth of information.

Attendees can also enter to win a $10,000 kitchen makeover from Kitchen Magic, a $15,000 home theater from New England Home Theater, or a day of around-the-house fix-up services from the Handy Man Network.

Flora in Winter!

If you can't wait until the New England Spring Flower Show for a fix of wonderful plants and flowers, treat yourself to a visit to the upcoming Flora in Winter exhibition, an "art and floral extravaganza" that will be on display at both the Tower Hill Botanic Garden in Boylston and the Worcester Art Museum from January 26-29, 2006.

Events at Tower Hill during the four-day feast for the senses include a luncheon and lecture/demonstration on Ikebana, the Japanese art of flower arrangement, and a Mozart Piano Candlelight Concert, in honor of the venerable composer's 250th birthday.

The Harvard General Store is for Sale!

All of the agents in my office were surprised and saddened this week to see that Harvard's beloved General Store (home of Harvard Camera) has come on the market.

The distinguished 19th century building, a revered landmark on Harvard's historic common, has almost 8000 square feet on three levels, with hardwood floors and original moldings. It is being offered for sale as either a residential or a commercial property, for $995,000.

Home Design Portfolio

If you're thinking of updating or redesigning a room in your current home, or possibly planning a custom build, HomePortfolio is a great resource.

It's a website that enables you to search for home design products by category, and create your own private folder so you can save them online, and connect directly to the Internet portals of the manufacturers.

You can also search for local interior designers, and sign up for Home Design Update newsletters, with information on the hottest products and trends, and news of upcoming home design events and sneak preview opportunities in the greater Boston area.

New Listings in Harvard

Realtors checkingMLSPIN, the Multiple Listing Service that covers most of Massachusetts, found that the market started showing signs of activity again today, after a long winter's nap that began in the weeks before Christmas.

Agents in my office listed two homes today, at opposite ends of the market. One is a 1984 colonial in the established Candleberry neighborhood. With almost 4000 square feet of living space (including a finished lower level), this home offers central air, three fireplaces, a screened porch and a fenced yard, at an asking price of $869,900.

Perhaps the more intriguing of the two is the eagerly awaited 2-bedroom Victorian cottage with fabulous westerly views in the Village of Still River, within walking distance to the Oxbow National Wildlife Refuge. I haven't seen it yet, but it looks adorable, and it's a sure bet that it will be scooped up quickly, at the attractive price of $375,000, including a new septic system.

If you'd like more information about either of these homes, I'd be happy to help.

Bye-bye Burning Bush

The Massachusetts Department of Agricultural Resources has announced that as of January 1st, 2006, it will begin to prohibit the sale and importation of 140 species of plants and bushes that it has identified as being "invasive" or "noxious."

Among the outlawed flora is the ubiquitous "Burning Bush" (Euonymus alata), a source of dramatic fall color in many local gardens (including mine!). It can be sold until July 1, 2006, so if you have been thinking of adding this fiery feature to your landscape, do it this spring, while you can still find specimens in local nurseries.

And don't worry, the state has no intention of forming local posses to remove the banned plants, trees, and shrubs that are ensconced on private property!

Other common species targeted by the ban include purple loosestrife, the Norway Maple, and the orangey Oriental bittersweet, which is much sought after for autumn decorative flourishes.

The complete Massachusetts Prohibited Plant List can be found here.

Illegal Mortgage Broker Ordered to Cease Business

The Massachusetts Office of Consumer Affairs and Business Regulation announced on December 21, 2005 that the Division of Banks had directed Boston Financial Group, Inc. (d/b/a BFG Mortgage), owned and operated by Jose de la Rosa in Jamaica Plain, to "cease engaging in the business of making or soliciting mortgage loans from Massachusetts consumers."

The Division of Banks took this action when it learned that Boston Financial Group had misrepresented itself as a licensed mortgage broker. The company is not licensed to do business in the Commonwealth as a mortgage lender or as a mortgage broker.

Consumers can verify the license status of a mortgage lender or broker at the Division of Banks' website, or by calling its Consumer Hotline at 800-495-2265.

Looking for Todd Gross? He's on the Web!

If you miss the accurate forecasts and indepth weather discussions that were the hallmark of former WHDH Meteorologist Todd Gross, you're in luck!

Todd has just debuted a fabulous new blog, Todd Gross New England Weather, with forecasts updated at least twice daily, maps, charts, analysis, astronomy highlights, school closings, reports from local weather spotters throughout New England, and links to other sources of information to please even the most fanatical weather junkie.

Todd hopes to eventually get back on the air in the Boston market, but in the interim, his site is the next best thing.

Hudson artist Marc Albanese creates watercolor home portraits in a "classic American Realism" style, as seen here.

Samples of his strikingly beautiful work can be seen at his website, along with his original landscape works that are available for acquisition.

Marc can work from a photograph, but prefers to see his subjects in sunny daylight. Prices for his custom home portraits start at $225 for a watercolor painting and $150 for a pencil drawing.