Jack's New Hampshire Real Estate Blog

Yes, that is right… I Jack Lavoie, 20+ year real estate veteran am going back to school….. Auctioneer School that is! Lol

For eight consecutive days (from 8am to 8pm) I will be learning all aspects of the auctioneering business from the Yankee School of Auctioneering. I am a believer in creative marketing and feel that many properties could benefit from an auction. I am looking forward to assisting my clients by offering real estate auction services combined with my appraisal and brokerage services beginning in December.

Picture this scenario…. You are being transferred and need a buyer for your home within 30 days. Wouldn’t it be great if you could have the traditional exposure of Multiple Listing Service combined with quick sale excitement of an auction? When I say auction, I don’t mean exposing your property to a situation where someone can buy it for 10 cents on the dollar. I mean selling the house with a “Reserve”. That means that YOU, the seller, set a minimum sales price. A private auction is not like a bank/foreclosure auctions where the bids are “low balls” since the buyers usually can’t even look at the property, never mind inspect it. With a seller (not a bank) auction, we set a day or weekend when prospective buyers can take a complete look at the home. We stage the house to appeal to a wide range of buyers and even have a pre-auction home inspection. Imagine having an mortgage professional at the pre-auction showings to pre-qualify prospects! Do you think the offers might be higher if the buyer’s can fully “kick the tires” and have access to a professional inspection?........Absolutely!!!!

Investors… your carrying cost will kill you when you are flipping a house. You can’t afford to carry the house for months. Why not rehab the house…..and when it’s finished list the property AND schedule an auction out 14 days. Only 14 days of marketing with save you THOUSANDS of dollars and allow you to move onto your next deal.

Well, the 2^nd half of the Patriots game is about to start… so to paraphrase auctioneer speak………I’m going once…..going twice……GONE!!!!!! (until my next blog post…lol)

A Window of Opportunity

I was talking with my fellow “Weight Watcher”, friend and real estate colleague Bill Weidacher the other day as I was sampling some of his famous “Rotissary chicken soup”. Bill mentioned he was going to contact all of his clients and let them know that interest rates have come down and there was a “window of opportunity” to buy or refinance at low, low rates!!! As we were talking I got to thinking… Everybody wants a deal, but most people think in terms of price and rarely terms. Do you realize that by having a mortgage interest rate 1% lower on a $200,000 home, it is equal to buying that home for about $180,000. Here is an example, lets say you are thinking of buying a home for $200,000 and financing the whole amount at today’s low rate of 5.5%. Your principal and interest would be $1,136 per month. Lets say you decide to “wait for the bottom” and you don’t buy, but instead wait a year after interest rates climbed to 6.5%. Do you realize that the $200,000 home will now cost you $1,264/month (P & I). Another way to look at it is that the price would have to drop to $180,000 to have the same payment with the new interest of 6.5% (versus 5.5%). In terms of payment, the lower interest rate is worth about $20,000 in house value. I am not convinced that we are at the bottom of the market yet, but I am sure that interest rates will be higher someday soon. My advice is while interest rates are low and inventory is high, that you consider buying NOW.

I don’t have a down payment?

In this economy who does?...lol Did you know that in the U.S.D.A offers “Rural Housing” loans that allow you finance 100% of the purchase AND closing costs. Don’t let the word “rural” fool you. Any town (Bedford, Goffstown, Auburn etc) in New Hampshire is eligible except for Manchester and Nashua. A good portion (atleast 1/3) of the appraisals I do for home sales is for the U.S.D.A. It is a great program.

So you have heard that it is “a bad time to buy”….and that there is “no money available”……and that you “need a down payment”.. Well, hopefully you now know that those are myths.

I tell my clients that it is ALWAYS a good time to buy real estate if it is for the right reason and the right terms and NEVER a good time to buy if its for the wrong reason and the wrong terms.

Choose a real estate professional that will make sure you are buying for the right reason.

We all know that the economy is tough and people are hurting right now. Many people are facing foreclosures, but thanks to an announcement by Fannie Mae and Freddie Mac, many will be spared this holiday season. Fannie & Freddie announced that they and many of their servicing agents (mortgage companies) will postpone/suspend all foreclosures until January 9^th, 2009. Are Freddie and Fannie showing their soft side during the holiday season?...... I doubt it. While they will surely get some good press and good will, their motivation was to put a hold on foreclosures until they unveil new loan modification programs.

As part of the bailout plan, the government is putting strong pressure on them to “work out” the loans with as many homeowners as possible. The programs and policies won’t take effect until January, which is why they are suspending the foreclosures until then.

Having said that, not all mortgages are back by Freddie or Fannie. Therefore, if you are experiencing trouble and facing foreclosure you want to find out if you qualify for your “stay of foreclosre”.

If you are facing foreclosure, I would recommend the following:

First of all, spend the next few days and take a realistic look at your finances and figure out if you can actually afford the house. If you can, and can demonstrate it, you will most likely be able to work out a decent arrangement with your lender. If not, it may be the right time to liquidate the house by either a straight sale, short sale, deed in lieu or at last resort foreclosure/bankruptcy. Believe it or not, there are more options available to homeowners in distress than you might believe. I am always willing to meet with anyone to assess their situation in a confidential, respectful manner and spell out the options.

Speaking of holidays, I want to wish all my friends, family, clients and of course…my subscribers….lol, a wonderful Thanksgiving. Thanksgiving is time to value your family and be thankful for what you have. No matter what your situation is, I hope you can set the stress aside for a day and enjoy the ones you love. H-A-P-P-Y ….T-H-A-N-K-S-G-I-V-I-N-G !!!

P.S.  Please share the blog with any of your friends so they are kept abreast of these important real estate and financial issue.

Eight long but exihilarating days later and I am now a graduate of the Yankee School of Auctioneering. After passing the test, I have now fulfilled my requirements for the Massachesetts auctioneer license and only a December 8^th exam away from my NH license. Did you know that it is traditional for an auctioneer to be dubbed “Colonel”? Well, Col. Lavoie sounds good to me!...lol

I want to personally thank Jay Daley from the Yankee School of Auctioneering and Maggie Rose from Classic Benefit Auctions and Classic Auction Service for a great school and education. They are true professionals and full of integrity. I am looking forward to using what I learned to assist my real estate clients. While not for everyone, I believe that a very well promoted auction is the perfect solution for many homeowners, estates, investors, private and public lenders. I plan on using a real estate “shot gun” approach by utilizing both MLS and auction services to market the heck out of my client’ properties. To give my auction business a jumpstart, I am planning on holding a “mock auction” next month to reherse/practice my systems and have some fun with it.  I will keep you posted when I set the date as I will invite all my subscribers to the Mock
Auction and reception (yes....adult refreshments will be served...lol).

I would like to say thank you to all my classmates this week for all I learned from you. I enjoyed your enthusiasm and questions as well as your friendships. I also want to congratulate Mary Scimemi for “Ace-ing” the exam (wink) and my buddy Bob "I'm gonna sell it" Wallace for conducting a very "interesting" benefit auction today.  :)

So how does the “Colonel” get on TV? Well…it is true, I have been asked to co-host Monday 11/24’s “Demetri Live” show on Manchester Cable 23 TV. The show airs live from 9-Noon. “Dee” (Demetri) and I will discuss current events, conduct interviews and in the 3^rd hour…talk real estate!  I am looking forward to having lots of fun in my debut on the Manchester Cable station.

One last thing to my Yankee School friends…. The Pines 55, The Oaks 7.  Sorry, but I think we kicked your ##s today!!!...lol

Everybody knows that the market is tough right now. You’ve heard the news, seen all the “For-Sale” signs and listened to the so called "experts". I believe the slow market will continue into 2009, however houses sell in ANY market. If you are in a market where there are 100 houses per year that sell and sales drop drastically by 20%, it still means that 80 houses will still sell. So how to do you make sure your house is one of the 80 that sells compared to the 500+ that will be on the market…….. CREATIVE MARKETING

During the “Boom” it was possible to sell houses in Manchester, Bedford or any other New Hampshire town with a 3-point marketing plan…….. 1) Enter it into MLS, ) 3) Slap a sign in the ground and 3) Wait for the buyers!!!! Well…not anymore!!

The name of the game is Exposure and Appearance. These are the keys to making sure your house stands out from the other “Would be seller”.

Appearance

If your house is not in top shape you won’t be able to get top dollar. There are so many homes on the market that buyers do not have to inconvenience themselves with homes that need “sprucing up”. If they do decide to make an offer on a house that needs work, they will discount their offer for MUCH more than the cost of repairs. So please, please, please FIX the items that are broken and make sure each room is freshly painted and flooring is neutral and appealing.

The second part of appearance is STAGING. A good friend of mine Karen Cormier tells her clients “You can sell your house the way you live in it” What she means is that sellers need to de-clutter, de-personal and stage their home to appeal to the widest range of people possible. In my real estate business, I surround myself with the best specialist and Karen is the best house stager I know. Karen is available for you if you seek staging advice

Exposure

The more buyers you attract the better the chances to sell your house and at a higher price. So how do we attract buyers? We do it by making it very easy for them. According the National Association of REALTORS, 94% of buyers begin their search on the internet. Buyers can view listing on line in the privacy of their own home. I believe if they are “shopping” online, you ought to be able to show them the whole property. We do this by offering a very professional VISUAL TOUR which allows the buyer to view the interior and exterior home in great detail. VISUAL/VIRTUAL Tours used to be an exotic tool for REALTORS, but know it is necessary. Here is a link of an example of a Visual Tour courtesy of another good Realtor Friend of mine Judi Farr.  Click here her for Judy's Visual Tour.

Another creative way is by auction. Reserve Auctions in conjunction with Multiple Listing is becoming increasingly popular and creates great exposure. It is a great benefit for someone who needs a contract on their home within 21 days. Imagine having the power of multiple listing combined with the benefits of an auction. It is the “double shot gun” apprpoach. Interestingly, I have a program that I will unveil in December that will combine the best of both worlds (MLS & Auctions). If you are interesting in obtaining a preview of our auction program, feel free to email me @ jacklavoie@comcast.net. New Hampshire Real Estate Auctions

“I Jack Lavoie can cut taxes for 33% of all New Hampshire Citizens.”

Both men have promised “tax cuts” to Americans. I am quite skeptical of this therefore, in the spirit of the election, I am putting my patriotic hat on and am sharing my own tax cut plan.

“Read my Lips!!! ….. (to quote a former president)…. Here is my tax plan!!

If you are a homeowner and are paying property taxes, you may be eligible for a tax abatement. Your property taxes are based on your property assessment that your town or city assigns you. Most assessor’s do a great job, but there job is very difficult. They must design a computer/statistical model that will accurately appraise thousands of parcels at the same time. Even the best of models will not fit every property, which is why in every town, nearly a 1/3 (33.3%) of the properties are over assessed and a 1/3 are under assessed. It’s the 33% of the over assessed who can get a tax break on my plan (there I go again…lol).

Many people look at their assessment and say to themselves "Oh, I could never sell my house for what it’s assessed for!" …lol  That doesn’t mean your house is over assessed. Sounds confusing, but I will explain why.

In every town, it is the assessor’s goal to have assessments equal the true market value of the property. Every five years or so, the town does a complete revaluation of their town to do this. Each year thereafter, the assessment stays the same, but the market value could go up or down which means the assessments are higher or lower than market value. Here is the key...... As long as every property in the town is either over assessed or under assessed the same, then it is fair. You are only entitled to get a tax abatement if you are MORE over assessed than average person in the town. Here is an example.

If the “Assessment ratio” for the town is 120%, which means the average property is assessed at 120% of the actual market value, you will not be able to fight your taxes if your house is assessed at $120,000 and is only worth $100,000. The reason being is that your house is in line with the 120% assessment ratio ($120K is 120% of $100K).  If your house is only worth $80,000, you may have an excellent case to get your $120,000 assessment reduced down to $96,000, since $96,000 is 120% of $80,000.  If you can prove your home is worth $80,000, your assessor may reduce your assessment in this example to $96,000.

The State of New Hampshire Department of Revenue provides the official “Assessment Ratio” for each town in the State on an annual basis. That is one half of the equation. The other half is figuring out what your property is worth in terms of market value.

In abating your taxes, if will be necessary to provide “proof” of your market value estimate, as of April 1^st of the tax year being appealed. This can done by hiring a Certified Appraiser like myself to provide a professional opinion of value. The appraisal with be attached to an official abatement form and will need to be filed in a timely fashion. The balance of abatement process does not need to be discussed right now, but the important thing is to know that 33% of you qualify for my plan. Besides...... my quick description of my plan had  10 times more detail/meat than either Obama or McCain's tax plan!...lol

If you would like to contact me and find out if you are a candidate for a tax abatement, feel free to contact me @ jacklavoie@comcast.net. I do residential and commercial tax abatements throughout the state of New Hampshire should you need my assistance.

Tax bills will be mailed out soon. When you receive your tax bill, get the process going and you may be one of the 33% who can get an abatement…….a lot more than the other guy’s plans! J