Roy Sanborn --Lakes Region of New Hampshire

Avoiding the Mistakes

The total number of residential sales for March 2008 in our Lakes Region of NH communities came in at 58 homes changing hands compared to 54 homes in March of 2007. Given the difficulty showing property this winter this slight increase in sales numbers could be considered a major victory. We had four sales that exceeded the $1 million mark this past month. Last year in March there were none. On the other end of the spectrum there were 28 sales below $200,000 last month compared to 20 for the same month last year. So buyers seem to be getting active now on both ends of the real estate ladder.

There is an explosion of real estate related shows on TV right now. Channels like HGTV are providing a wealth of information to home buyers and sellers. This past week HGTV aired the "25 Biggest Real Estate Mistakes" when buying or selling property. If you missed it, I am sure it will be on again. You can also go to HGTV.com and find a summary by doing a quick search. There is a lot of good advice and anyone buying or selling property should check it out. They list the #1 mistake made (by sellers) as "Failing to Showcase Your Home and Make Small Cosmetic Changes". Failing to make small, affordable changes and improvements will prolong the time it takes to sell a home and will probably result in a lower sales price. Staging rooms to showcase them at their best and making sure the home is spotlessly clean are simple processes that many sellers don't take to heart. A thorough cleaning, minor repairs, and a fresh coat of paint will make any home sell quicker and for more money. The #2 mistake (again on the seller's side) was "Setting Too High of a Sales Price". Setting the sales price based on a market analysis provided by a real estate professional rather than on what the owner "thinks" it is worth is truly the correct approach. Putting a totally unrealistic price tag on a home will discourage buyers from looking at it and cause the home to stay on the market much longer leading buyers to think that there is something wrong with it.

There is good advice offered in the other 23 "big mistakes" as well. As a REALTOR ® I know for sure that there are also hundreds of other "little mistakes" that can cause you a lot of grief or cost you money when you buy or sell property. Way down at mistake #13 was "Not Hiring an Agent". This really should be the #1 mistake. Being an agent, I am obviously a little biased here. But the other 24 mistakes are things that good agents have been telling their clients and customers about right along. We actually live these TV shows on a daily basis. So get an agent. And also avoid mistake #14 by getting the "right agent" who will do a good job for you, keep you informed, and will prevent you from making any mistake, big or small. Then you can sit back and watch some more TV.

HOMES SOLD MARCH 2008

The Most Livable State

As of April 1, 2008 the total number of residential homes on the market for the towns listed in our Lakes Region of NH Real Estate Market Report stands at 898 listings. The total is inching back up from a low of 778 listings in January. The average list price is moving up as well from $522,535 in January to $556,521 as of April 1 as more of the higher priced listings find their way back into the market.

Last week NH was named the Most Livable State in the nation for the fifth year in a row by the Washington based CQ Press. The week prior, the CQ Press also named NH as the Safest State in the nation. This may be a little bit of old news by now, but it is still worthy of repeating. It really is a pretty big deal. The news is also very meaningful relative to our struggling housing market. Many of us locals tend to take our beautiful state for granted every now and then. And we might question the wisdom of being designated the Most Livable State considering we are at the tail end of a record setting winter that seemingly will never end. But these awards are representative of the very reason why so many people want to visit, vacation, and live here. And because so many people find our little state such a great place to live, our real estate market will recover more quickly and be stronger than the markets in other parts of the country. People want to live where there is a superior quality of life and where they can feel safe. NH epitomizes those attributes. The Most Livable State award is based on a list of 44 factors including median household income, crime rates, health, business tax climate, employment opportunities, environment, education, and believe it or not the number of sunny days! In my estimation, for NH to get this award we must have scored extremely high in all the other categories because we sure didn't have many sunny days this winter! All I saw this winter was white outs, snow banks, and the back end of my snow blower!

Great News! Higher FHA Loan Limits

There aren't a lot of positives to talk about as far as residential sales here in the Lakes Region of NH for February of 2008. A lackluster total of 34 homes sold compared to 51 for February of 2007. Low end sales were strong with over 50% of the sales under the $200,000 mark. This is the first month that I can recall in a long time where there was only one sale over $1 million. That honor belongs to a nice 3,000 sq ft, 4 bedroom, lake front home on Dockham Shore in Gilford. This 2 year old home has a bright open concept floor plan, hardwood and tile floors, a home theater, mahogany decking, cobblestone driveway, 103 ft of shorefront, and a 40 ft dock. The great thing about this property is that it just looks like it is supposed to be on the lake and was not overbuilt for the area as many of the newer lake homes are today.

There is some truly great news on the financial front for buyers looking for a mortgage. As part of the Economic Stimulus Act of 2008, the Federal Housing Administration has just raised the purchase price limits on homes to allow more properties to qualify for FHA loans. For example, in Belknap County the limit on a single family home was $200,160 but is now increased to $281,250. These loans will now be more appealing to a much wider range of buyers. Under the old limit, buying a newly constructed home was almost impossible. By raising the limit many newly constructed homes will now be able to be purchased through this program. While historically FHA loans were considered to be more for first time and low income buyers, there are no income limits so expect these loans to be utilized more by a broader range of people in the coming year. FHA loans can be used as a way to refinance your present home or even do a reverse mortgage. Rates and guidelines are similar to the standard 30 yr fixed loan programs. The advantages of an FHA loan include a low down payment, it allows for seller contribution toward closing costs, and the buyer can also receive gift money from friends or relatives to complete the transaction. It is a great program for some hard times and it should be a tremendous success this year.

No signs at this time...

Snow and more snow. The weather we have been experiencing has certainly slowed down buyers from looking at property here in the Lakes Region of NH. Everyone seems to be struggling with the effects of winter. Trying to stay up with keeping walkways, decks, and driveways cleared seems like a full time job. To me one good thing out of all this is that the snow seems to have obliterated the huge number of real estate directional signs poised on just about every street corner. Sellers see these signs as a beacon to help a stray buyer or two get to their property. But the sheer number of these signs, to me at least, doesn't pass on a very encouraging marketing message to the public. If a serious buyer wants to find a certain property he will even without a directional sign---well maybe not right now, unless some more snow melts in front of the house!

Rates were down and now they are back up a bit. They seem to change almost daily. Undoubtedly, there are buyers out there that have had preliminary talks with their lender, had gotten a rate quote, and then found that the rates were different when they found a property that they wanted to buy. Even rates quoted at the time of an application for a mortgage are not guaranteed at the time of closing unless the buyer "locks in" the rate. Lenders offer programs where buyers can lock in their rate for a specific period of time. These programs protect the buyer from having his rates increase any further. There are also options that allow a one time rate "float down" should interest rates drop so buyers can get that lower rate. There may be deposits, fees, or slightly higher rates associated with these types of programs depending on how long a rate lock you need. Some lenders offer free rate locks for 30 or 60 day periods. You can even find programs that allow buyers to lock in a rate and then go shop for a property. So check with the different lenders in the Lakes Region to see who offers the best program and the best deals.

We had three sales on Lake Winnipesaukee in January of 2008. That compares to 10 in January of 2007, and 6 in 2006 and 2005. I don't necessarily think things are slowing down too much on the big lake as there are currently 12 other waterfront properties pending and we are seeing increased activity on all listings. Now is the time that serious buyers are out scouting for property so that they can be on the lake for summer.

The highest sales price honor this month goes to the property at 230 Edgewater Dr on prestigious Governors Island in Gilford. This home is a stunning 8,000 square foot Adirondack style home constructed in 2006 with all the amenities and attention to detail expected in this price category. This fabulous home sits on a 1.6 acre lot with 300 feet of waterfront, a sandy beach, and docking for five boats. You also have a garage big enough to park all seven of your cars too!

Another noteworthy sale was the property at 140 Alpine Park Rd in Moultonborough, which went pending after only two days on the market. That tells you something. Selling for a cool $2.2 mil, this property consists of a cottage built in 1955 that sits on a 2.8 acre lot with 288 feet of frontage. The property has south-westerly exposure affording awesome sunsets and views of the Gunstock Mountains for the new owners. I suspect it won't be long before the cottage is demolished to make way for new construction