Kathy Stankard

The Warren Group, a private real estate data tracking firm, released its October 2009 sales data for Massachusetts. Their findings show sales of single family homes rose 17.2 % for October 2009 as compared with the same month last year--this marks the fourth consecutive month of increases.

While this is great news for Massachusetts, RE/MAX Executive Realty, the largest real estate company in the metrowest Boston area, actually reported a 27% increase in closed October transactions over last year. RE/MAX Executive Realty is comprised of seven offices in Franklin, Grafton, Holliston, Hopkinton, Medfield, Natick and Upton and is serviced by 125 full time agents averaging over 10 years' experience in the real estate industry.

Give me a call or email if you have questions about the current real estate market at 508-369-5131 or franklinmahomes@comcast.net.

The holiday season is kicking into gear and many Franklin Massachusetts events are planned for all ages to enjoy.

This week, just after Thanksgiving the town of Franklin will hold its annual Christmas on the Common, Sunday November 29th at 4pm. Santa and his elves will visit and there will be refreshments, decorating of the common and the holiday lights will be lit.

The following week, the Cub Scout Pack 126 will host its Annual All You Can Eat Pancake Breakfast with Santa. This will take place on Saturday December 5th from 8-11am at the Elks Lodge on 1077 Pond St, Franklin. Cost is $5 and under age 3 is free.

Finally, the Renaissonics Carols Concert with a variety of instruments will be held to benefit the local Franklin Food Pantry and the Global Pennies for Peace (for school construction in Pakistan). This will be at the First Universalist Society on 262 Chestnut St, Franklin on Sunday December 20th from 3:30-5:30. Cost is $20 donation and under age 12 is free.

We all know that the past two years have been financially challenging for many and my heart goes out to any family or person struggling with unemployment or financial troubles. However, I have to share the plight of Realtors recently handling short sales in Massachusetts.

My Franklin, Massachusetts and metro west of Boston area does not have a large number of short sales like the western part of the state does so I am not as accustomed to handling these complicated transactions and therefore use a short sale attorney as a guide. A former client of mine contacted me in January to list their west of Boston home that was facing a short sale and asked for help. We put it on the market in January and quickly learned that the house was quite desirable with multiple bids. An offer was accepted but the seller's lender had merged and the lender was taking an extraordinary number of months to get homes to close.

It is now late November and we JUST got our first response from the bank regarding their valuation of the property which was $10,000 more than what the buyer agreed to pay back in February. Now the buyer must either come up with the extra money or the deal is off and the house is back on the market!

I should add that my seller has stopped returning phone calls in the past few weeks and has apparently dropped off the face of the earth. Myself and the attorney have asked the seller to call to get the water and electricity back on since it is necessary to heat the home. The seller shut off the utilities without letting anyone know.

So the bottom line is that Realtors across the country are working on short sales for sometimes up to a year only to find that they will not get paid--maybe at all--for their efforts. The home could go into foreclosure without any compensation to the Realtors!

Sure, a prospective buyer can make an offer on a Franklin, MA home they see at an open house without any buyer agent involved but why would you? In most cases, the services of a buyer agent are free to the buyer in that the seller has already set aside money to compensate the buyer agent. So buying direct from the listing agent is essentially throwing free money away.

Some people believe that they will save money on the home price by not having two agents involved but that is not usually the way it works. In fact, it is more work for the listing agent to juggle both sides of the transaction so why should they cut their price when they have the work of two people to handle. When a listing agent and a buyer agent are both involved in a home sale, each agent handles only their well-defined piece of the transaction.

A Massachusetts buyer agent provides guidance, education, negotiation help and an objective third party view of the property. This is the person who you can count on to tell you the truth about the area, the positives and negatives of the home, and an analysis of the home's true value. No home is perfect regardless of its age but it is important to know whether the home is good for resale or not. Some homes are beautiful but when a buyer may need to relocate in a few short years the buyer agent can advise which homes to avoid if a future resale may be imminent.

So the key is to find a buyer agent that seems to be a good match for your personality and lifestyle. The buyer agent who you feel a connection with is someone you can trust to listen to your needs and help you find the best home at the best price. Buyer agents also realize when they don't click with someone and sometimes have to refer a buyer to an agent that may be a better fit.

Once not too long ago, a Franklin, Massachusetts homeowner called to get an idea about what their ranch-style home would sell for in today's market.

As a Realtor, I said, "I would be happy to swing by and walk through your home with you, then I can research the data on comparable homes and provide you a cma report." The homeowner said, "Cma? What does that mean?" I was reminded the consumer does not necessarily know what a comparative market analysis is or how Realtors and/or a bank appraiser can determine the true home value.

This home was built in 1969 and was on a level landscaped lot in a neighborhood setting. Overall the condition of the home was good but the bath had not been updated since the late 1970s. The kitchen, however, was brand new with granite countertops and stainless steel appliances--almost as if it did not belong there. There were 3 bedrooms and one bath and the basement was partially finished.

The home had major improvements to plumbing, electrical and roof but cosmetically the bath and extensive bedroom wallpaper made the overall look appear dated despite the new beautiful kitchen. What was I to do? How would I price this home properly?

The method to determine proper pricing is based on living area, condition, age and location but not necessarily in that order. Some people have told me that Zillow helps them know their correct value and others compare their home to another sale nearby but the only accurate way is to consult with a local Realtor who has studied the sold, pending and actively listed homes that are closest in kind to yours.

Using this ranch as an example, the home was in good condition for its age and was located in a neighborhood. Its living area was generous when compared to other ranches in Franklin. The price of the home, however, must take both the great kitchen AND the not so great bath and wallpaper into account.

Searching the Multiple Listing Service for 3 bedroom ranch homes that had been active, pending or sold over the past 3-6 months turned up some interesting findings. The highest priced sale was $305,000 for a 10 room neighborhood home with new kitchen and bath whereas the lowest priced sale was $255,000 for a 5 room home with minimal updates on a main road. Okay...now we were getting somewhere... I could safely deduce that the price must be within this range of price but this was $50,000!

Two homes in particular stood out as being most comparable to my seller's ranch--these had both just sold within the $279,000-$289,000 range. They each had certain updates, were also located in a neighborhood setting and were generally in good condition. (I tried to include the graph of homes here but it was too large to fit.) This ultimately was my suggested list price range based on today's data only. I always remind sellers that new listings could come on tomorrow or current listings could sell which would all change the data we were using.

The lesson here is that pricing a home properly takes time, research and knowledge of the market area and its homes. If you have been wondering what your home is worth in today's market, please email me or give me a call... "I would be happy to swing by..."