Wallingford, CT Real Estate Market Update

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As we take a look at how our single-family homes on the market have been performing lately, the news is good. The big news is that our home sales have not only outperformed our expectations, they have surpassed them by far. In fact, when looking at the relationship of inventory as to sales, we are seeing home sales that have exceeded our new inventory coming on the market over the past couple weeks.

The median selling price is currently $279,000 with an average price per square foot of $172. Our days on market are not as telling as the rest of numbers, with the average DOM currently registered at 212 for the Wallingford area.

Fairly High Percentage of Properties With Price Reductions

One statistic that many consumers do not tend to hear about is the percentage of properties with price reductions. At the moment we have 38% homes that experience some form of price lowering from the time they were listed to now. The reason this is relevant and useful to you is that this number points to the number of properties that may or may not have been priced appropriately to begin with.

Consider this: a great home in a great location that is situated among other similar homes but priced way over the rest – simply will not generate enough attention, if any at all. As a buyer, this means you should exercise savvy in your judgment when looking at properties. For sellers this is a huge wake up call to those that may be expecting more than their home is realistically going to yield.

Market Action Index Showing Wallingford Buyers Still Have the Edge

Our current Market Action Index is at 12.7, indicating a buyer-centric market for the time being. However, this trend is moving upward toward a seller-controlled environment as we approach 30 (a MAI above 30 implies sellers’ advantage while below 30 marks a buyer-controlled climate).

What Does This All Mean To You as a Consumer?

It means that now is just about the best time to buy. There’s no telling how the Presidential election will impact the housing market so right now, as we are sitting in a fairly certain market with reasonable prices, record setting low interest rates and buyers out there seeking competitively priced properties, it only makes sense to reach out and grab the opportunity!

If you would like a more detailed look at how we are doing in our marketplace, or if you want to explore buying or selling your home, contact us today for a customized consultation where we can assess your needs and get started on making your goals become a reality.

Traditional Vs. Online Marketing: Why Traditional Marketing is Fast Becoming Obsolete

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Believe it or not, there is more to selling a home than just putting out ads. And as we delve deeper and deeper into this digital age, what used to be considered luxuries are now necessities to the marketing scheme of any successful real estate agent. Consider some of the traditional ways that real estate agents for years (generations?) have marketed their clients’ properties – and notice how each item is entirely passive. 

·         1. Putting a sign outside the home, hoping a buyer will drive by.

·         2. Listing the property on major national websites or the local MLS with the expectation that an offer will be received eventually.

·         3. Hoping that other agents will notice the new listing and introduce it to their buyer clients.

·         4. Advertising the property in print publications, again with the expectation that a buyer will notice the listing.

·         5. Holding one or more open houses with the intent and hope to generate interest.

As someone that wants to successfully sell their home, it’s important to ask yourself:

Do I want my agent to be passively marketing my house? Or is a proactive approach critical in today’s market?

Today, we live in a world where nearly everyone holds a smartphone (or tablet, laptop, notebook, book reader) and each provides an unlimited gateway to instant access of information. At the same time, we also live very much in a “here and now” world. Where there once may have been a charm of sorts to sit down and meet with your agent over coffee and discuss your needs prior to engaging in the standard forms of advertising – now, it’s a whole new ballgame.

Buyers are savvier than ever before and they too don’t have that much time on hands. So the first thing they do is jump online to shortlist locales, neighborhoods, school districts and other macro aspects of their home search. Next, they begin shortlisting on a more specialized level. They pare down specific neighborhoods, research about area restaurants, shopping, crime rates, amenities and other things. At this point in their search, most of them haven’t even engaged in a conversation with a real estate agent.

Now, ask yourself this question:

Would I rather be a seller hoping for a buyer to drive by and just happen to see the “open house” sign – or does it make more sense to position my property out there for buyers to find before they start shortlisting?

In fact, the real estate industry is fast changing and soon enough the only way to succeed in selling your home will be to reach far out and grab the business.  In other words – you will have to make it happen yourself because it simply won’t happen on its own.

So the next time you find yourself asking an agent, your agent – or even one that you are thinking of hiring – what they will be doing to get your home sold, be sure that their answer shows they are proactive rather than stuck in yesteryear.

Carbutti & Co. Realtors Remains at the Forefront of Technology

This is where we come in. With the use of expert video technology as a standard approach, we accept nothing less than taking a proactive stance at marketing your property. Where some agents might host an open house to introduce a property on the market, we also provide an intimate look into the home with a video tour. Where you might see flat, one-dimensional photographs of a home “marketed” by others, our listings practically jump off the page and speak to buyers. Where buyers may expect to receive cold, impersonal emails – we take the time to communicate face-to-face, even if that means doing so online.

In the business of real estate, we know it is critical that we stay current with the times and with one look at our blog you will see that we take this very seriously. You can see examples of our video tours, subscribe to receive our bi-weekly education video communications or take a town tour to get a close look at some of the wonderful aspects of your community of choice. When it comes to selling a home, we utilize unique, custom communication tools catered to making buyers feel valued. 

These are the very things that stand out. These are the tools that make buyers want to view our listings. These are the things that make our homes sell.

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To find out how we can help you get your home sold, call us today for a customized consultation so we can determine your needs and start working on it right away!

Wallingford – The Quintessential Town You Will Fall In Love With (If You Haven’t Already)

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Many of you that are watching this video are long time residents of the Wallingford area and needless to say, you already know all that we have to offer. But even then, we wanted to share with you a unique look at our town and enjoy all that our home encompasses.

From the quaint shopping area of Downtown Wallingford, gorgeous vineyards, expansive parks and phenomenal school districts – there is so much to this New England wonder!

As Ernie St. Amant mentions in the video, “Everyone knows each other in the community”. We are firmly connected with one another, we take pride in our town and it shows in everything we do. You will see the hustle and bustle of activity year round; Parents coaching kids’ sporting teams, volunteers serving their communities, teachers an active part of our children’s lives – even out of the classroom.

And who says we can’t hit the big city when we feel like it? With instant access to all major highways, professionals and families alike have a great time living the dream of being in a quiet, comfortable and safe haven town – without giving up anything.

Wallingford is the perfect place to raise a family. An ideal location for young professionals. A quaint town with rich layers of history and plenty of more memories in the making.

Welcome to Wallingford! We look forward to seeing you soon!

National Association of Realtors Reporting Significant Increase in Sales in First Quarter

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We have all been waiting while watching the real estate market – especially during the rollercoaster ride that has resulted in some very low lows. But now, as we are in the midst of 2012’s second quarter the signs all point to an improving market. The National Association of Realtors is reporting home sales on the rise, home prices stable but lower than they have been in years and significant distressed properties on the market. All create a ripe environment for a great deal on a home creating an opportunity that many buyers are jumping to take advantage of before it gets too late.

Huge Jump In Home Sales in 2012

The NAR recently reported that home sales have reached the same level as they were during the first quarter of 2007. In the face of a changing real estate environment this is further indication of a strengthening market that highlights heightened consumer confidence with buyer power to match. The main reason for this spike in sales has been the phenomenal deals available to buyers right now. Combining the record-setting low interest rates with equally as unrivaled home prices, buyers are able to afford more home today than they have been able to purchase for years.

Great Deals Continue to Motivate Buyers

Almost a third of the sales reported in the first quarter of 2012 were of distressed sales. The reason buyers are attracted to bank owned or short sale properties is because they end up getting a fantastic deal on the home since banks want to quickly unload the property.  Despite the misconception that these properties are rundown, they are actually often in good condition. Buyers are savvier than ever before and realize that this opportunity will likely turn around soon enough with interest rates and home prices beginning to rise in some markets. In some areas interest rates have dropped to as low as 3.6% for qualified buyers with good credit standing.

Home Prices Starting to Come Up In Some Markets

As predicted by analysts, some markets that were hard hit by the recession such as Phoenix are beginning to see higher increases in home values. Before this trend spreads to most other markets, buyers are getting off the fence and buying up the properties they might have otherwise waited a bit longer to purchase. Currently, as reported by the NAR, the national median list price has dropped to $158,100 – indicating a very opportune time to buy.
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If you have been considering purchasing a home – we invite you to contact us so that we can show you how today’s fast-improving market works in your favor. Through our extensive resources and tools, we will be able to guide you through and to the successful purchase of your dream home!

Three Essential Strategies When Selling Your Home

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Once you have made the decision to sell your home, the next step is to put it on the market and get the word out!  Hopefully, the home will sell in record time.  But if you are like many homeowners these days, the number of sellers still outweighs how many interested buyers are out there.  So how can you stand apart?  How can you be sure that your home is the one attracting the most attention in the neighborhood?  And aside from that positive feedback from the buying community, what can you do to get the most out of your listing and be successful?  Here are three absolutely vital aspects of selling a home – that if followed are sure to help you successfully achieve your selling goals:

Do Your Homework and Be Prepared

The single most important thing you can do before even taking the first step in selling your home is to hire the perfect agent.  This is not a matter of just finding the next person you know that deals with real estate professionally.  Hiring an agent is a process that should be done carefully and with much thought.  Does he or she take an active marketing stance?  Are they accessible?  Do they have a strong, solid and proven track record?  What do recent clients say about dealing with this agent and/or broker?

Understand what your competition is selling. By knowing and understanding the other options buyers looking in the same area have, you will gain a competitive edge and be able to adjust your home based on the others’ offerings.  One example is the comparison between an older home versus new construction.  Though the amenities and number of bedrooms, bathrooms and square footage may be the same – buyers might easily prefer new construction.  Your preparedness will help you overcome challenges such as this example perhaps by compensating with incentives or making updates to your home.

Strengthen the Perceived Value of Your Home

Now, more than ever, buyers are savvy and they know what to expect.  That is why when they see several properties in one area they are able to easily distinguish a good deal from a not-so-good one.  By working to enhance the perceived value of your home you can stand to gain significant leverage over other sellers in the area.  One of the best examples of this is a new home that offers a 13-month warranty to go along with the sale.  Nothing provides more reassurance to buyers than to have the sellers stand by their product.  And if the home does have any issues, buyers know that the warranty will cover those issues.  The typical cost of a home warranty is not more than $350-$400 but it can cost less depending on the coverage chosen and company.  Imagine the edge you will have when buyers see most major components of the home as well as little things covered by a warranty plan.

Realistically Determine Your Selling Price

One of the most damaging things you can do to the potential sale of your property is to price it inaccurately.  Though homeowners are free to price their home as they wish, once area comparable sales, appraisals and inspections, as well as buyers’ perceived value are taken into consideration, prices can change dramatically.  It is important to know your competition, assess your property as compared to that competition and then price the home accordingly. Overpricing can clearly lead to lack of buyer interest while underpricing can backfire in more than one way; the seller would obviously get less money and also buyers could potentially be turned off thinking that something is wrong with the property.
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For a customized assessment of your home’s selling position and for an analysis of how much you can potentially sell your home for – contact us today!

Beware of the Companies That Will “Pay Cash For Your House”

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Imagine being in the midst of a terrible financial situation, behind on your mortgage, unable to pay your bills and considering selling your home before you really want to.  Now imagine a shark sneaking up behind you and then snatching away your lifelong dream, putting you in a position you will likely never recover from.

Well, there are sharks out there that are trying to capitalize on the financial troubles of many families and homeowners in the nation.  These are the ones that spend lots of advertising dollars on blaring billboards, audaciously claiming that they “ Will Buy Your Home For Cash” and “Close In 7-10 Days”.

Think about it.  It sounds too good to be true, doesn’t it?  It is.  The single biggest risk of dealing with these companies, aside from the fact that you are exposing very personal details of your financial life to them, is that they will likely steal your equity.

Getting Pennies on the Dollar For Your Home

Consider this recent example:  A woman I met a short time ago was behind on her mortgage payment and feared that her home would face foreclosure.  Rather than approach a Realtor, she responded to one of these ads and almost found herself trapped.  With years of experience dealing with these types of “investors”, we were able to go in and show her how big of a mistake that would have been.  It turns out she had a significant amount of equity in her home.  Had she proceeded to engage with this company that wanted to “help” her, she would easily have lost all if not most of the equity that she had built up over the years.

The most enticing thing to people in such situations is that they see an easy and quick out with the companies’ claim to close in seven to ten days.  But if you take a closer look at some of the websites of these companies you will notice that they are a bit off.  Here is an example of one site that comes up in the first few Google picks. You will notice right away that there are typos on the site – something that hardly signifies a quality, long-standing company.

A Better Way to Get Out of a Tough Situation

Rather than deal with these less than scrupulous companies and risk losing the hard earned equity on your home, visit your Realtor.  He or she will walk you through your options and explore viable alternatives to giving up and getting out then losing out in the process. In the woman’s case above we suggested that she sell her home, pocket the equity of her home and move on.  Rather than allow this alarming trend to continue, homeowners should educate themselves on the programs designed to really help them get out of the financial difficulty they are facing.  Recent changes made by the government to PMI fees for homeowners that refinance allows property owners a chance to seize the opportunity of today’s lower interest rates while avoiding foreclosure.
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Remember, if something sounds too good to be true – especially when it comes to your home – it probably is.  To find out where you stand and how you may be able to sell your home quickly but effectively, contact us today.  We will help you determine exactly what you can get for your home, how long it might take to sell it and what you can expect if you choose otherwise.

What Would Warren Do?

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The news spread like wildfire.  No, it’s not another politician’s sex scandal or the latest (definitely not greatest) gas prices.  It is the monumental statement made by Warren Buffett that he would buy up “a couple hundred thousand” single-family homes.  The catch is that he would do that if it were something he could practically manage. He may not be able to practically manage it but individuals certainly can.

Think about that.  For months, if not more than that, countless Realtors have been urging their clients and potential clients that now is the perfect time to buy.  Now that it comes from one of the biggest investors of our time, it brings new light to the subject for many investors and has generated widespread industry buzz from the moment the billionaire uttered those words.

In an interview where he discussed several topics, soon into the discussion with Becky Quick of CNBC’s Squawk Box, he said that in addition to equities, single-family homes are probably the most attractive investment there is out there right now.  With the low rates that seem to be heading further down still, he suggests buying at these low interest rates and then for homeowners to refinance if and when the rates dips even more. 

He cited that the only reason he has not purchased as many homes as he would have liked is because of the practicality of managing the transactions and properties.  Apartment units might have been more manageable and in his words, he said he would “load up on them” had that been the case. But for the everyday investor it makes perfect sense to seize this opportunity and Warren Buffett highlights this repeatedly in his most recent discussion on CNBC.

Mr. Buffett shared his perspective on the idea of buying homes at distressed prices, fixing them up and renting them out as an ideal way to get a solid return on investment.  Referring to the changing trends and attitudes within the housing market, he also said this is the perfect way to “short the dollar” because with a 30-year fixed rate mortgage it can go two ways; either the interest rate is too high down the line after which you can go and refinance or if it’s too low the other guy’s stuck with it for 30 years.  Could this be the return of the house-flipping craze that we saw boom in the mid 2000s?

Mr. Buffett’s statement brings new light to something that so many agents and mortgage consultants have been saying all along.  Buy now.  At a time when stocks are just now rebounding after four years of inching their way back up, he says that consumers should acquire 30-year fixed rate mortgages and then refinance when rates go down further. 

If homeowners can hold on to their property for a long time after purchasing it at the lowest rates the industry has to offer they are sitting on the best investment possible of our time.  Of course equities are still very strong but they have come up quite a bit and Warren Buffett says owning a home is a “leveraged way of owning a very cheap asset”, making it quite possibly the most attractive investment that you can make.