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“Lakes Region” is plural for a reason

6/9/2018

While Lake Winnipesaukee is unquestionably New Hampshire’s largest and most famous lake, the fact of the matter is that “Lakes Region” is plural for good reason. Two hundred seventy three of New Hampshire’s 1,300 lakes and ponds are located in this beautiful part of this beautiful state.

As a Realtor®, I’ve noticed that many visitors find themselves drawn here by Winnipesaukee’s beauty only to leave discouraged when they can’t find waterfront properties that fit their budgets. But New Hampshire offers far more waterfront than what’s on Winnipesaukee. The Lakes Region’s wide variety of different-sized lakes offers a range of options and benefits for a variety of budgets, while still offering close proximity to the big lake.
Let’s take a quick look at some of the area’s lakes. You might just find that the saying “life is better by the lake” is true no matter what lake it is.

Lake Winnipesuakee--The sixth largest natural lake completely inside U.S. borders, Winnipesaukee hosts 44,568 acres and an estimated 625 billion gallons of water. Though it’s known as the “Tahoe of the East,” with with 72 square miles of waterbody, Winnipesaukee is considerably smaller than Lake Tahoe. However, Tahoe has only 75 miles of shoreline, compared to 182 miles of shoreline on Lake Winnipesaukee, and more than 240 miles of waterfront when you consider the lake’s more than 250 islands, approximately half of which are inhabited (Lake Tahoe has only one small island).

Winnipesaukee is 22.9 miles long, its width is 7.5 miles, and it is about 187 feet deep, with an average depth of 62 feet. It is bordered by eight Lakes Region towns: Alton, Center Harbor, Gilford, Laconia, Meredith, Moultonborough, Tuftonboro and Wolfeboro.

Big Squam--With 6,765 acres, a length of 3.7 miles and a width of 3.4 miles, and 60.5 miles of shoreline, Squam Lake is New Hampshire’s second largest lake.

Squam has a depth of 98 feet, hosts 67 islands, and is bordered by the towns of Holderness, Center Harbor and Sandwich.

It’s common knowledge that the movie “On Golden Pond” was filmed on this scenic lake, but did you know that Squam Lake was originally called “Keeseenunknipee,” which meant "the goose lake in the highlands?"

I guess that name didn’t have an enduring ring to it, so in the early 19th century the lake was given another name, Asquam, meaning "water." Eventually “Asquam” was shortened to Squam.

Lake Winnisquam--New Hampshire’s third largest lake is known for pristine waters. It has a surface area of 4,264 acres, a length of 5.4 miles, a width of 1.7 miles, an average depth of 52 feet, a maximum depth of 154 feet, and 28.2 miles of shoreline. It is bordered by Sanbornton, Tilton, Laconia, Meredith and Belmont.

Winnisquam has two basins, a larger northern basin and a smaller southern one, with a the Route 3 bridge separating the two.

Newfound Lake--Refreshed by eight underground springs, Newfound Lake is recognized as one of the cleanest lakes in the United States. It offers 4,105 acres of water, a length of 5.7 miles, a width of 2.7 miles, an average depth of 65 feet and a maximum depth of 168 feet. Newfound offers 19.8 miles of shoreline and is bordered by the communities of Bristol, Hebron, Alexandria and Bridgewater.
Newfound Lake is host to Wellington State Park, which features the largest freshwater swimming beach in the New Hampshire state park system.

Ossipee Lake--This 3,091 acre waterbody is 3.5 miles long and 2.3 miles wide. It has an average depth of 27 feet and a maximum depth of 73 feet. With 10.6 miles of shoreline, Ossipee is bordered by the communities of Ossipee and Freedom.

Lake Waukewan--Bordered by Meredith, New Hampton and Center Harbor, 912 acre Lake Waukewan is 2.1 miles long and has a width of .9 miles, and offers 8.1 miles of shorefront. It is Meredith’s water supply, featuring clean water and a maximum depth of 68 feet and an average depth of 22 ft. Waukewan flows into Meredith Bay of Lake Winnipesaukee through the Inn at Mills Falls.

Opechee Bay--This 426 acre lake is about half the size of Central Park in New York City. It is 1.9 miles long and .7 miles wide, about 65 feet deep, and offers 5.9 miles of shoreline. It is bordered exclusively by the City on the Lakes, Laconia.

Paugus Bay flows into Lake Opechee at the Lakeport Dam and Opechee flows into Lake Winnisquam in downtown Laconia.

Lake Wicwas--I sometimes wonder how many people visit and pass through Meredith without ever realizing that there’s another lake in town besides Winnipesaukee! Though overshadowed by the big lake, quiet, peaceful Lake Wicwas (aka Wickwas) offers 322 acres of surface, a length of 1.2 miles, a width of .5 miles, and 5.9 miles of shorefront. It has an average depth of 13 feet and a maximum depth of about 35 feet.

Lake Kanasatka--Located a half mile north of Winnipesaukee, this beautiful 371 acre lake offers scenic views of Red Hill, It is 2 miles long and .6 miles wide with an average depth of 18 feet and a maximum depth of 30 feet. This peaceful lake offers 5.2 miles of shoreline in the low property tax town of Moultonborough.

There are presently 157 waterfront properties actively listed for sale on these nine lakes alone, ranging in price from $159,900 to $19.8 million. When you add “Lake Access”, “Right of Way to Water” and/or “Beach Rights” to the search the number of properties will expand dramatically, as will your options.

“Lakes Region” is plural for a reason. This beautiful area offers a wide variety of lake options for a variety of budgets, while still offering close proximity to the big lake. Contact me or visit www.RocheRealty.com to find your “life is better by the lake” home!

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How to buy a home in a seller's market

6/2/2018

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Homebuyer beware: it’s a seller’s market in the Lake Region. You’ve got to shop smart or someone else could end up owning your dream home.

Throughout 2017 and the first quarter of 2018, single family homes and condominiums in
Laconia, Gilford, Meredith and Moultonborough sold at the fastest median pace in over a decade.

This seller’s market pace is fueled by low inventory. For example, during the first quarter of 2018 Laconia and Gilford had the lowest supply of homes for sale since at least 2007.

So if you’re a homeowner looking to maximize the return on your property investment, it’s a great time to sell because home values are peaking, buyers are more plentiful than home inventory, and there are relatively few competing properties.

But what if you are a prospective home buyer? Here are a few tips to help you be a smart, competitive buyer in a seller’s market:

Get preapproved--If you’re not a cash buyer you should prioritize getting preapproved for financing before taking any further steps.

Preapproval will help you establish a realistic buying budget that considers all of your housing expenses and ensures you’re shopping in the appropriate price point. Preapproval will also help you determine four very important things: what type of financing you qualify for, how much interest it will cost, how much money you’ll have to put down, and how long it should take to “close” once the seller accepts your offer.

Preapproval is always a good idea for homebuyers planning to finance, but it’s especially important during a seller’s market because attractive homes and good values can sell very quickly and it can be heartbreaking to miss out on the home that you really want because another buyer is preapproved and you’re not.

The bottom line is that sellers take preapproved buyers more seriously. Preapproval sends a signal that you’re serious, prepared and qualified. Meet with a lender, get preapproved and share a copy of your preapproval letter with your agent, who can then add it to your offer submission. If you are a cash buyer, talk to your agent about submitting proof of funds with your offer.

Keep a poker face--It’s super exciting to finally find the home you’ve been searching for. But don’t let the listing agent see your desire and excitement when you find the home of your dreams.

A good Realtor® pays as much attention to people as much as they do to property. The listing agent’s job is to broker the best deal they can for the seller. When the listing agent senses that a prospective buyer loves the home and wants it so bad (maybe because the buyer blurted out something like, “Oh, I just love it and want it so bad!”), it sends a demand signal that can compromise the buyer’s future negotiation position.

A smart buyer keeps a poker face during showings and open houses. Even if your heart is racing, wait until you’re safely out of sight and earshot to do the I-just-found-the-home-of-my-dreams happy dance in front of your Realtor®. Then ask your agent to prepare an offer as quickly as possible, before someone else does.

Use contingencies to act quickly and with confidence--Buying a home is a big decision and, as much as you may want the home, it can be nerve wracking to actually commit. But in a seller’s market buyers are competing with other buyers and so quick action is essential.

Ask your Realtor® about contingency agreements, which are predefined conditions that must be met in order for a home sale to be completed. If agreed contingencies are not satisfied prior to closing, the sale can be cancelled and deposited funds will be returned to the buyer.

Contingency agreements give buyers a chance to do two things once an offer is accepted. First, the listing will move from “Active” to “Active Under Contract” in the MLS, giving you some time (14 days is common) to breath, think, process, pray and do the due diligence (for example, have the home professionally inspected) that will help you be confident as a homebuyer. The effect is clearly that of “first right of refusal.” Backup offers may be accepted by the seller, but a signed Purchase and Sales Agreement puts the buyer in control for a time, even in a seller’s market.

The most common residential contingency clauses give buyers the option to withdraw an offer if the property appraises for less than the agreed-upon purchase price, or if the home inspection results are not satisfactory to the buyer for any reason.

On a related note, while buyers should use proper contingencies to protect themselves, it is important to not insist on too many contingencies when submitting an offer during a seller’s market, as this can generate fear in the seller that they are wasting time on an offer that will never close, and possibly missing out on other opportunities as a result.

Write a letter--Finally, you may consider adding a personal note to the seller in your offer package. I’ve seen two recent examples that helped put the buyer’s offer over the top. The first, written by a single mother and aspiring first-time homeowner, focused on her immediate emotional connection to the home, and how she looked forward to having a new generation of family members establish loving memories and milestones there. The second example, which was written by a male client with a highly technical background, focused more on his admiration for what the current owners had done to improve the home structurally and aesthetically. Sellers can find such personal letters endearing and influential when considering multiple offers.

In a seller’s market you’ve got to shop smart, be prepared and act fast before someone else snaps up your dream home. Smart buyers can take advantage of preapproval, a stoic poker face, contingency agreements and personal letters to be competitive in a seller’s market.

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Listing expired? Make selling a “co-mission”

5/26/2018

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Last week we focused on the Realtor® aspect of what to do if your listing has expired and your home hasn’t sold. This week we’ll talk about the other critical team member in the home sales equation—the home owner.

If your listing has expired and you still want (or need) to sell your home, it may be time to shift focus from “commission” to “co-mission” thinking.

“Commission” thinking is the view that it is exclusively the listing agent’s job to sell your home in exchange for a commission payment based on a percentage of the closing price. But a listing estate agent’s job is to help homeowners sell their homes. In other words, it’s a team effort.

I have found that the most efficient and effective real estate sales occur when property owners and listing agents work collaboratively on a CO (joint; mutual; common) MISSION (an important goal or purpose).

In other words, expired listings can be overcome when real estate professionals and homeowners work together toward the important mutual goal of selling a home.

When a listing has expired, one way to sell the house is to lower the price. But what if that isn’t necessary? What if you instead took some steps to improve the perceived value of the home? Here are some things you can do as the homeowner to help your home sell in the shortest period of time, for the greatest value:

Create a great first impression--Your property is the product that either attracts or repels buyers. Accordingly, the importance of curb appeal cannot be overstated. If prospective buyers like what they see on the outside of your home, they’ll be enticed to see the inside. If they don’t, they won’t. Keep in mind that first impressions don’t just occur during scheduled showings; curious buyers drive by homes all the time. Here are some things you can do to create the best first impression possible:

Make it sparkle on the outside--If you were selling a used car you’d take it to the car wash, right? Why not do the same thing for your house? You can, with pressure washing. Pressure washing does a number on the staining, moss and mildew that can do a number on the curb appeal of a property’s decks, patios, siding, roof and gutters. There are many things you can “do it yourself,” but when it comes to exterior cleaning, it really pays to hire a professional. Even if you have access to pressure washing equipment, there’s a risk of damaging the exterior of your home (your biggest investment) by forcing water into or behind the siding, which can cause or exacerbate mold issues. You can also peel paint, splinter or damage wood, rip up or damage the surface of shingles if you don’t know what you’re doing.

I recently spoke with James Poole of Poole’s Pressure Washing. He showed me dramatic before and after pictures of properties he’s serviced. I was blown away by the difference (you can see some examples at facebook.com/poolespressurewashing). I learned that James doesn’t actually pressure wash houses. He does what’s called a “soft wash.” With this method they use a low pressure system, water and detergents to agitate the organic staining, dirt or other buildups that are on a home.

The benefit to using this “soft wash” method is that it minimizes the risk of damage to the exterior of your home. This is much more practical and effective than traditional pressure washing, which has been found to damage various types of siding and surfaces. Now that the outside is sparkling, let’s move to the inside of the home…

Clean and cut clutter to close--A clean, clutter free interior makes an amazing difference when showing a property to buyers. It sounds obvious, but it is crucial that your home looks livable. Prospective buyers can be easily distracted by clutter. Clean and declutter as though you are expecting very important visitors… in this case visitors who may want to give you tens or hundreds of thousands of dollars (or more) for your property!
Pay special attention to cleaning windows so your property looks great from the outside looking in and inside looking out. Open or remove drapes, curtains and valances so every possible ray of natural light penetrates the interior of your home. Just like lighting is important when filming actors, models or products, proper lighting will help your Realtor® take the best pictures and give the best showings possible.

Paint for profit--Everyone knows you can cover up wear and tear, crayon marks and other sales distractions by painting walls. But did you know that paint color is an important factor that can affect a home’s selling pace and price?
Experts often advise choosing neutral colors when painting rooms, but some recent information suggests that fresh paint in the right color may actually help you sell your home more effectively. Zillow’s 2017 Paint Color Analysis studied over 32,000 photos from homes sold nationwide in order to determine how certain paint colors impacted average sale price versus comparable homes with white walls. Their findings suggest that homes with:

blue or soft gray-blue kitchens sold for a $1,809 premium
powder blue or soft periwinkle colored bathrooms sold for $5,440 more than expected (white bathrooms sold for an average of $4,035 below similar homes)
light cerulean to cadet blue bedrooms can earn a $1,856 premium
slate blue to pale gray blue dining rooms sold for $1,926 more on average than homes with white dining room wall colors
front doors painted in shades of dark navy blue to slate gray sold for $1,514 more
light beige, pale taupe or oatmeal-colored living room walls sell for $1,926 more

If your listing has expired and you are still motivated to sell your home, it may be time to shift focus from “commission” to “co-mission” thinking. As a homeowner, you are a critical member of the home sales team. By taking a few actions to improve curb appeal, cut clutter and leverage color, you can help your listing agent help you. It might be the difference between a successful sale and another expired listing.

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My Listing Expired. Now What?

5/18/2018

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A home I have under agreement right now was listed previously with another agent. The home didn’t sell the first time around and the prior listing expired after nearly six months, even though the property is affordably priced, is in great shape and offers attractive amenities including an in-ground pool, tennis courts, and 150 feet of Lake Winnipesaukee water frontage with stunning views, a private, sandy beach, kayak/canoe racks, and four long day docks.

Expired listings are an all-too-frequent reality in real estate, so I thought it might be helpful to share some tips on what to do if your listing has expired. In this week’s exciting episode, we’ll focus on the real estate professional. Here are some options:

Give your current agent another chance--There are some advantages to trying again with your current listing agent. For example, she or he is already familiar with your property and can update and reactivate the listing very quickly. Giving your current agent another chance spares you the time and effort of interviewing other agents, who must start from scratch with questions, paperwork, photographs and marketing. Besides, breaking up is hard to do. What do you say to your Realtor®? “It’s not you, it’s the property?” “I can’t be in a committed listing relationship with you, but we can still be friends?”

If you’re open to keeping your current agent, ask how the market may differ now. For example, if your Lakes Region home was listed over the winter it may have been exposed to lower traffic than it would receive this time of year when far more people are visiting the region and shopping for homes. Perhaps there are fewer homes for sale now and therefore less competition. Maybe some comparable homes are under agreement and establishing the price precedent your home needed.

Also ask your agent what, if anything, he or she is going to do differently to sell your home this time around. We’ve all heard that the definition of insanity is “trying the same thing over and over and expecting a different response,” so if your home hasn’t sold it’s perfectly reasonable to expect a new approach in order to achieve a new result. On the other hand, if the agent doesn’t have satisfactory answers to those questions, you might…

Give another agent a chance--There are advantages to bringing in a fresh set of eyes, especially if your previous agent wasn’t proactive and responsive in their communications (perhaps the leading cause of breakups between sellers and agents). Here are some important questions to consider when interviewing a replacement Realtor®:

Will you put a lock box on my property? I’m amazed how common this practice is. My perspective is that lock boxes don’t sell your home, they just let people in. I’ve had numerous experiences where I was given a lock box code over the phone and never saw the listing agent during showings, inspections or walk-throughs.

Further, lock boxes open real estate professionals and home owners to a lot of potential liability. For example, what if something is stolen during a “showing” where no one was there to represent you? Or what if your pipes burst because a buyer agent unfamiliar with your home thinks they just turned off the lights in the basement, when, in reality, they just turned off the oil burner switch and it’s 10 below?

Do you practice real estate full time or part time? There are some fine people who practice part time and just pick up a listing here and there. A part-timer may get the job done but if your listing has expired there are two issues important to consider: time and commitment. For example, what if the agent is busy with his or her primary job and can’t show your home in a timely fashion? Well, I guess they could put up a lock box.

Further, real estate requires a steep and constant learning curve. Someone who is not 100 percent committed to the business may not be current with the latest training and techniques to make sure your property sells, for an appropriate price, with minimum legal liability.

Where is your office located and what does it focus on? In this case, my client disclosed that his previous listing agent had only a handful of showings over the nearly six months of prior listing. I looked into it and found that the prior agent’s office was in a town more than an hour away from the Laconia property. That agent may be very good, but it’s tough to devote over two hours just to get to and from the property you’re trying to sell. I guess she could have put up a lock box.

Further, the agent worked for a metropolitan office of an ubermegabehemoth international franchise, so the Lakes Region represented only a miniscule, infinitesimal, teeny, little fraction of that agency’s sales.

On the other hand, my office and home are about ten minutes away from the above-mentioned Laconia property, and since its inception decades ago, Roche Realty Group’s slogan has been: “We sell the Lakes Region.” In other words, Lakes Region properties are not an afterthought for us—they are the only thought.

Agent approach and office location and focus can make a huge difference. Because I am dedicated to Lakes Region markets including Laconia, Meredith, Gilford and Moultonborough, practice real estate full time, and don’t use a lock box, I have the above-mentioned property under agreement after just 18 days on market, and for $11,000 more than the previous agent’s expired listing price.

Now that we’ve talked a little bit about the agent side of the equation, in our next exciting episode we’ll explore what you as the homeowner can do differently if your home hasn’t sold and your listing has expired.

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A Sale of Two Cities

5/12/2018

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I recently spotted a story about the cheapest home for sale in San Francisco, the most unaffordable city in the United States. If Charles Dickens had been a real estate professional he might have opened the listing remarks with: “It was the most affordable of homes, it was the most unaffordable of markets.”

The median price for a one bedroom home in the “City by the Bay” is estimated at $820,000 (meaning half of comparable homes cost more). The most affordable home listed in San Francisco in February was an uninhabitable (hey, what do you expect?) 1,085 square foot, one bed, one bath single family home on a 0.06 acre lot about five miles from the city’s center.

Originally built in 1900, this property was listed for $399,000.

Like all good real estate professionals, the listing agent did what he could to tactfully describe the home in order to drive both interest and perceived value. “Very poor condition,” the listing bragged. “Very little likelyhood (sic) of buyer obtaining a loan,” it boasted. Hey, even Charles Dickens may have been at a loss for words when it came to describing this property charitably.

Naturally, the agent complemented his literary listing remarks with photos designed to highlight the property’s best features.

Unfortunately, the most appealing photo, a landscape shot designed to provide supporting evidence for the claim of “Terrific Bay Views!”, looks to me like a terrific view of the world’s most expensive shanty town.

The images quickly went downhill from there.

Now, I’m no remediation expert but I’ve discovered enough fuzzy, gray/green leftovers over the years to know mold when I see it, and one glance at the picture of the home’s dark, sooty and battered entrance hall suggested a ceiling festooned with growth like last Thanksgiving’s forgotten cranberry sauce.

The rusty, moldy and otherwise dilapidated bathroom (with an avocado green tub) looks like a perfect location for a scene in the next installment of the “Saw” horror movie franchise. The one bedroom home’s kitchen photo inexplicably features six befouled mattresses.

Finally, had you spoken with the listing agent, he would have disclosed that none of the appliances worked, that the plumbing was not functional, and that the heating system, flooring, and interior sheetrock were all severely damaged.
With all that going for it, San Francisco’s most affordable house naturally attracted multiple competitive offers from prospective buyers. Of the 23 offers received, 12 were over $520,000 (for a property listed at $399,000), and the winning offer was for $565,000, cash.

"This is 'affordable housing' in San Francisco," the listing agent said during an interview. "When you have a property that's below a million, it's a steal. If it's close to $500,000, it's a joke."

Now that we’ve addressed the City by the Bay, let’s cover the City on the Lakes.

The median list price for a one-bedroom, single family home in the Laconia is presently $80,000 (about one tenth of San Francisco’s median). The highest valued one bed, single family home listed at this time is an immediately inhabitable 674 square foot one bed, one bath, four season cottage on a 0.61 acre lot (more than ten times the size of the lot in San Francisco) with a boat slip and 125 feet of Lake Winnipesaukee waterfront.

Lovingly updated since its original construction in 1966, this home is listed for $524,900 (that’s over $40,000 less than the uninhabitable home in San Francisco sold for).

The listing agent (full disclosure: his barber cuts my hair) evoked the spirit of Charles Dickens and wrote:

“You just can’t get much closer to the water than 87 Harglen. This adorable four-season waterfront cottage could be a playhouse for your inner child, a happily-ever-after home for your retirement years, or both. This personal paradise is located on one of the best lots in quiet, private, no-wake Pickerel Cove, which connects you to over 45 thousand acres of beautiful Paugus Bay and Lake Winnipesaukee water… With a nearby private beach for the community, snowmobile trails and skiing, there are infinite recreational possibilities outside, and easy-to-maintain single floor living with no stairs once you're back inside…The property also features an external 12’ x 16’ multipurpose room which could serve as a bunkhouse for guests, an art studio, personal workshop or more…”

Naturally, the agent complemented these literary listing remarks with photos designed to highlight the property’s best features.

If you were to search MLS # 4682787 or visit www.87HarglenLane.com, you’d see that this home has legitimately terrific interior and exterior views of the water (which is literally steps away) and the Belknap Mountains.

The entrance to this property is a bright 17 by 8 foot heated lakeside sunroom with views of water and mountains.
The bedroom easily swallows a king-size bed, the bathroom is nicely finished, spacious and well tiled, and the bright, open kitchen flows naturally from the living room and is well-appointed with exotic granite countertops, high end laminate flooring and new cabinets.

If you spoke with the listing agent, he’d disclose that the appliances—including the Deco All-in-One Compact Electric washer/dryer—all function and can convey with the sale. He’d also tell you that 87 Harglen Lane in Laconia is a special property that offers a million dollar view for half the price and proves you can live large in a small home.

So there you have it, a tale of the sale of two cities. In San Francisco, “If it's close to $500,000, it's a joke." In Laconia, a similar investment secures a personal paradise with peaceful water and mountain views that will make you feel a million miles away from the hustle and bustle of modern life.

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Rising construction costs highlight the value of existing homes

5/1/2018

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If you’re in the market to buy a Lakes Region home the best bang for your buck is on existing resale properties, not new construction.

That’s because construction material costs are accelerating. Bloomberg recently reported that the cost of framing lumber spiked 16 percent between December 2017 and March 2018. Additionally, a National Association of Home Builders survey revealed that other construction materials (including particleboard, plumbing, concrete and insulation) cost 5.1 percent more in March 2018 than they did a year ago, the biggest annual price increase in nearly eight years.

There are numerous factors causing the cost of new construction materials to swell. For example, demand has surged since August 2017 when hundreds of thousands of homes in Puerto Rico, the Florida Keys, Houston, Texas and California were damaged or destroyed by hurricanes and wildfires. There is also inflationary pressure on construction commodities, and the prospect of import tariffs affects the cost of steel and other building materials.

So if you’re in the market to buy and looking for the best bang for your buck, existing homes can offer superior value… and location.

To illustrate, consider my latest listing, a three level, two bed, three bath, 1,645 square foot townhome at Paugus Bay Racquet Club, a 32 unit condominium association located at 833 Weirs Boulevard in Laconia.

This property, which is listed for $172,900, was built in 1974 when labor and materials were more affordable and prime waterfront locations were still available. That works out to $105.11 per square foot (and that doesn’t even include the unit’s five decks which add real functionality to the home).

Let’s compare that cost to three recently-developed Lakes Region condominium communities in Laconia and Meredith. Prices on these properties generally ran from $180 to $310 per square foot, with an average cost of $245 per square foot. That means the newer construction cost about 133 percent more than this unit at Paugus Bay Racquet Club, and that was before many material prices surged to their present levels.

New construction is nice when it is complete (and the dust and drilling, blasting, nail gun, hammering and truck noises finally subside), but it’s hard for new projects to profitably offer the value, location and amenities that an existing community like Paugus Bay Racquet Club boasts.

The open and flowing main level of this home features a large closet/mudroom/pantry space, a half bathroom with washer and dryer, a dine-in kitchen, and a comfortable living room with a covered deck that offers seasonal, filtered views of Paugus Bay.

Go upstairs and you’ll find a full bath and two bedrooms with a generous amount of closet space and private, enclosed decks. The master bedroom on the quiet backside of the building is so large that it easily swallows the two queen-sized beds it is presently furnished with. The bedroom across the hall offers an enclosed deck with peek-a-boo views of Paugus Bay.

Go to the lower level beneath the main floor and you’ll discover a spacious bonus room that could be used as a recreation room, a sweet office suite, or an extra sleeping space. This level also boasts a large closet/storage area, a three quarter bath and a sprawling, covered walkout deck that’s perfect for barbequing and entertaining.

As they say in the late night infomercials, “But wait, there’s more!” Paugus Bay Racquet Club also offers a beautiful kidney-shaped in-ground pool with a large sunbathing area, an adjacent tennis court, and more than three quarters of an acre of common space on the other side of Weirs Boulevard, directly on Paugus Bay.

This peaceful patch of ground hosts more than 150 feet of Lake Winnipesaukee water frontage with stunning views, westerly exposure (meaning longer days with more sun, and exquisite sunsets), a private, sandy beach, kayak/canoe racks, and four long day docks capable of holding up to seven boats.

At $105 per square foot, this condominium at Paugus Bay Racquet club (MLS #4688336) offers an outstanding value in today’s marketplace, a value difficult to for projects being constructed today to compete with, and it features a prime waterfront location that is simply not available like it was four decades ago.

Please contact me if you’d like to schedule a showing of unit C6 at the Paugus Bay Racquet Club, or if you’d like help selling or buying a Lakes Region residential property.

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Is it time to let go and list your home?

4/29/2018

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Selling a home is a little like jumping off a high spot while clutching a rope swing. In both cases it is critical to let go at just the right time.

If you’ve been holding onto your Lakes Region property in Laconia, Gilford, Meredith or Moultonborough now might be the right time to let go and list.

Here’s why. In March 2018, home sales in 174 nationwide markets showed the highest price increase in four years, according to the real estate web portal Redfin*.

The spike in home value is predictable, not surprising. Swinging like Tarzan is the direct consequence of jumping from a high perch while gripping a knotted rope. Similarly, elevated home prices are the direct consequence of low inventory. The lower the supply of homes for sale, the higher home prices tend to swing.

The median nationwide price for homes sold in March 2018 jumped 8.9 percent compared with March 2017. That’s because the supply of homes for sale was down 11.9 percent from a year ago, and the number of new listings in March dropped 5.6 percent compared to last March.

On average across the nation, homes went under contract in 43 days in March 2018. That’s over a week faster than a year ago and a March record. Nearly a quarter of homes sold for more than their list prices.

The trends are similar here in the Lakes Region. For example, listings for single family homes and condominiums in Gilford, Laconia, Meredith and Moultonborough in March 2018 were down 11 percent from last year.

The median ‘days on market’ for listed Lakes Region homes in March, 2017 was 36. This year that number plunged to just five days on market.

As a result of low inventory, homes in these four Lakes Region towns are selling at the highest prices and fastest speeds in at least a decade (visit www.LakesRegionHomeSeller.com for details).

But with home sales as with rope swings, timing is everything because markets can swing like pendulums. Hold onto the rope for too long and you risk landing in the shallow water, or the dirt. When prospective home sellers hold on too long, home sales can plummet, which typically causes prices to drop a few months later.

Further, there’s the looming impact of rising interest rates. We’ve been blessed with a low interest rate environment during the last nine years, in which rates were under four percent. But many analysts are predicting five percent interest rates by the end of the year. According to a Redfin survey of 4,000 consumers at the end of last year, a five percent interest rate would cause more than a quarter of today’s homebuyers to slow their plans.

Lakes Region homeowners who held on too long and missed the opportunity to sell at the previous peak had to wait nearly ten years for home values to recover.

If you’ve been thinking about selling your Laconia, Gilford, Meredith or Moultonborough home, now might be the right time to let go and list. If you’re ready to take the plunge I’m here to help. Contact me to see what your property might be worth today in today’s market.

*If you'd like more information regarding Redfin's home pricing data, visit:
https://www.redfin.com/blog/2018/04/market-tracker-march-2018.html

If you'd like information on reviews of Redfin services, visit:
https://www.consumeraffairs.com/housing/redfin.html?#sort=recent&filter=1

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"Autopilot" home prices like zestimate wrong 36 to 84% of time

4/21/2018

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Remember a few years back when that plane’s autopilot algorithm made a perfect emergency landing on the Hudson River in New York City?

Me neither. That’s because an algorithm didn’t land that plane. An experienced human pilot did.

If you’re wondering what this has to do with Lakes Region real estate, bear with me and read on.

The man-made miracle
On January 15, 2009, US Airways Flight 1549 was rocked by a rapid succession of explosive bangs less than three minutes after takeoff. It was the unmelodious percussion a commercial jet makes while smashing through a large flock of Canadian geese at more than 200 miles per hour.

The plane was about 2,818 feet above New York City when its twin engines instantaneously “ingested” multiple birds roughly the size of Thanksgiving turkeys. The engines belched flame then went dead silent. The cabin flooded with the odor of fuel.

The pilot in command, Chesley "Sully" Sullenberger, issued a Mayday: “This is Cactus 1539, hit birds. We've lost thrust on both engines. We're turning back towards LaGuardia."

But Sully quickly realized they’d never make it back. He considered Teterboro Airport in New Jersey but made another snap decision based on many years of education and experience. He radioed: "We can't do it ... We're gonna be in the Hudson."

The aircraft began a 240 mile per hour “glide descent” and Sullenberger addressed passengers and crew with three little words you never want to hear from your pilot: "Brace for impact.”

Sully then “ditched” (the euphemism for crash landing a powerless plane not designed for water landings) the commercial airliner into the Hudson River at approximately 140 miles per hour.

I’m certain many of the geese involved didn’t make it, but all 155 passengers and crew aboard Flight 1549 survived. The incident became known as the “Miracle on the Hudson.” Stephen Rice, Ph.D., an aeronautics and robotic flight expert with Embry-Riddle Aeronautical University later admitted, “No autopilot today could have landed the plane on the Hudson River.”

REALTORS® are to home sales what pilots are to flying
So what does this gripping introduction have to do with Lakes Region real estate? In real estate, as with commercial aviation, technology is a useful tool. But there is simply no substitute for human experience and judgement.

Millions of home buyers and sellers have been engrossed with the home value equivalent of autopilot. Just visit a major real estate dotcom like Homes.com, Zillow or Redfin, enter an address and instantly get a free estimate (based on “proprietary algorithms”) of that home’s value.

But air passengers rely on experienced professionals (not just sophisticated technology) to get them where they want to go, and home buyers and sellers should too. Let me tell you why.

Last year an independent research firm published the results of a nationwide study of home sales and reported that the Redfin Estimate “more accurately predicted the value of thousands of homes for sale” than estimates by Zillow and Homes.com.

Of the 5,074 homes sales evaluated in the study, 64 percent sold within three percent of the price predicted by Redfin, compared to 29 percent for Zillow and 16 percent for Homes.com.

But if you analyze those numbers critically, this study really shows that Redfin offered the least inaccurate automated prediction of home value.

Redfin’s predictions were three or more percent off closing price 36 percent of the time. Zillow’s Zestimate® was outside that range with 71 percent of its predictions, and Homes.com predictions were more than three percent inaccurate a whopping 84 percent of the time.

So think of it this way… would you feel confident flying an airline with a 36 to 84 percent likelihood of missing your destination airport’s runway by at least three percent? Then how much trust can you place in algorithms scientifically proven to guess home value too high or too low 36 to 84 percent of the time?

The study also reported that the median prediction error rate (how much estimates exceeded or fell below actual sale price) for Redfin was 2.06 percent off actual sale price. Zillow had a 5.95 percent median error rate, and Homes.com’s was 10.26 percent.

If you apply those error rates to the median closed price for single family homes sold in New Hampshire in 2017, Redfin’s autopilot guess would be off by $5,479 in home value. Zillow’s would be off by $15,827, and Homes.com would be $27,291 too high or too low. (For reference, as a whole single family homes sold in New Hampshire in 2017 closed 1.46 percent below listed price.)

Don’t get me wrong, technology is a powerful tool. Real estate is a data driven career and REALTORS® depend on digital SLR cameras, drones, smart phones and mobile devices, computers, web applications, satellite imagery, databases, CRM systems and a variety of software. But we ultimately rely on human judgement and experience because we know that your home’s sales price is likely to depend upon many factors alien to algorithms, including the property’s condition, the motivation and means of buyers and sellers, the marketing skills of the agent, and the psychological impact of supply and demand levels.

Automated estimates can be useful, but I believe home valuation is more challenging in New England, where homes built and added onto since the 1700s can neighbor ones constructed in the 21st Century. The quality of land and view here can vary dramatically between the subject property and a comparable home a half mile away. Algorithms that are accurate in metropolitan markets, where builders quickly erect hundreds of standardized condominiums or single family homes based on the same materials and handful of models, can struggle with the unpredictable variables New Hampshire’s rural real estate market is full of.

The bottom line is that technology is a useful tool but in real estate as with airlines there is no substitute for human experience and judgement. That’s why Redfin’s website says its automated Estimate “is just a starting point—it is not an appraisal or a substitute for the expert pricing advice of your real estate agent.”

In other words, if an estimate with a 36 to 84 percent chance of being off the mark is good enough, trust autopilot pricing (did I mention that Lawrence Sperry, the inventor of autopilot, fatally crashed his plane into the English Channel?). If you’d like what Redfin calls “expert pricing advice,” contact me.

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Is FSBO or Pro the better way to go?

4/7/2018

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Driving past this house with a “For Sale by Owner” sign made me think about what real estate professionals call “fizbos” (the phonetic for FSBO, the abbreviation of For Sale by Owner).

The sign is on one of the busier streets in Laconia so it’s got decent drive-by visibility. But there’s no street side parking and I couldn’t catch the phone number while cruising past at 30 miles per hour.

Before you note the number of grays in my photo and assume I’m slow on the uptake, myopic or both, let’s put this in context. Imagine sprinter Usain Bolt—the eight-time Olympic gold medalist and world record holder regarded as the fastest man alive—streaking past at his top speed of 27.8 miles per hour while trying to comprehend and memorize seven digits no taller than a playing card. Now picture him trying again while sprinting the opposite direction, on the far side of the street.

I’m as obsessed with selling houses as my dog is with vanquishing the mail carrier so I tried to find the property online, the same way 51% of buyers identify the homes they ultimately purchase.

I didn’t know the street number and I couldn’t find the home using Trulia or Zillow search maps. I also couldn’t find the property on ForSalebyOwner.com, Owners.com or Craigslist (real estate – by owner). When I tried HomesbyOwner.com, the site wouldn’t even load. So I gave up.

It was only after I drove by again and noted the street number that I found information online. While the property’s got some great things going for it, it’s been on the market 23% longer than the trend for Laconia and its price was recently reduced by about six percent.

Why fizzbo?
According to the National Association of REALTORS® 2017 Profile of Home Buyers and Sellers, fizbos accounted for just eight percent of home sales in 2016. Home sellers typically try FSBO when seeking to maximize profit by avoiding the commission a brokerage would earn for successfully selling a client’s home. Commonly fizbos still pay commission to a buyer’s agent (unless the seller can procure their own buyer, one comfortable making one of life’s biggest purchases without the benefit of professional representation).

This DIY approach is arguably more common during seller’s markets, which Laconia and other Lakes Region towns are now experiencing (visit LakesRegionHomeSeller.com for details).

The fizbo seller assumes full responsibility for:

properly pricing and effectively photographing and marketing the property
staging the home’s interior and exterior for maximum appeal
addressing every call and attending every showing (no matter how inconvenient the timing)
taking time to deal with both legitimate prospects and “Lookie Lous” who have both nothing better to do and a compulsion to see the interior of a home they’re a) not truly interested in, b) not qualified/prepared to buy, or c) both
deciding to accept, reject or counter offers, which often includes navigating contingencies and concessions (e.g. arranging and paying for negotiated repairs or lowering the sale price to address the cost)
overcoming obstacles and buyer’s remorse
coordinating the appraisal process (and praying the “price is right”)
facilitating the home inspection (precarious for fizbos because they’re not insulated by representation)
the proper completion of myriad legally binding contracts and documents

The FSBO seller will also be responsible for complying with closing complexities once an offer is accepted, as well as legal liability for any errors, misrepresentations or omissions.

Fizbo marketing methods and results
According to the Profile of Home Buyers and Sellers:

28% of FSBOs did not actively market their homes at all
35% used a yard sign (only 7% of buyers found homes this way)
5% bought newspaper ads (less than 1% of buyers found homes this way)
24% promoted to friends, relatives, or neighbors (6% of buyers found homes this way)

Aside from the very real risk of mistakes leading to legal liability, FSBO sellers face three distinct challenges:

Pricing--Homeowners can find it difficult to accurately and objectively determine market value because of sentimental value influence, lack of experience, and reliance on one-size-fits-all town tax assessments or free online assessment tools dependent on algorithms that often struggle with local and rural market trends (like a “Zestimate” or Homes.com value).

Marketing--Individuals are severely disadvantaged compared to real estate brokerages with dedicated marketing teams and budgets and years of experience successfully promoting homes in the local market (for example at Roche Realty Group we promote properties on approximately 80 national and international real estate websites and that’s just one small piece of the marketing pie).

Showing--Once again, experience is a factor. There’s a difference between showing a house and selling one. Also, buyers are often uncomfortable with a seller’s presence during a showing or open house, and they’re far less likely to share brutally honest but useful feedback directly with the home’s owner. Finally, buyers who sense weakness in the selling process may aggressively take advantage of the opportunity to drive better terms and pricing because they know a commission is not part the price.

None of these observation are intended as a knock against the fine people who try to sell homes by themselves. It’s simply a matter of experience and team support. To use another sports metaphor, prior to Game 3 of the 2001 World Series, President George W. Bush threw what some considered the finest ceremonial first pitch ever.

In retrospect, he pitched way better than aspiring professional baseball player Michael “Air” Jordan, retired Hall of Famer pitcher Nolan Ryan, or even Justin Bieber. Heck, Bush had even co-owned the Texas Rangers.

Despite all that, neither the Diamondbacks nor the Yankees invited the President of the United States to stay and pitch the rest of the game because the stakes were too high and he lacked the team connection and experience needed to deliver the best result possible.

The National Association of REALTORS® reported that in 2016 the typical FSBO home sold for $190,000 compared to $249,000 for agent-assisted home sales. And leading real estate research firm Collateral Analytics studied 1.35 million 2016-17 home sales spanning 13 markets and 770 nationwide zip codes and found that fizbo sellers closed at prices 5.5 percent below those on similar properties sold by Realtors®. This suggests home sellers either net greater or roughly equivalent proceeds when they use a professional because agents tend to achieve superior sales prices that are high enough to offset commissions.

Please contact me if you’d like to have a winning pro team help you successfully sell your Lake Region home.

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(Half) million dollar listing

4/2/2018

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Perhaps, like me, you’ve been around long enough to remember when a quarter of a million dollars was a lot of money. Today it takes a lot more than that to buy a McMansion, as even the average American home costs more than $250,000.

According to the National Association of Realtors®, in February 2018 the median price for an existing home in the northeastern United States was $258,900. And the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported that the median sales price for new houses sold in the U.S. last month was $326,800.

Since it costs that much to buy a fairly average home today, I thought it might be interesting to take a look at some current examples of what you could get in our region if you invested a little more, say, in the $500,000 range.
They say the three most important words in real estate are “location, location, location” (unless you sign a purchase and sales agreement without telling your spouse, in which case the three most important words would be, “You did what?!?” But that’s the subject of another article). As you’ll see, location directly impacts the value of each of the following currently-listed half million dollar homes.

Portsmouth, NH--$517,700 today will buy you in late July (when construction is complete) a two bed, one and three quarter bath garden level condominium with 1,512 square feet of livable space on a single level. This condo will offer an open concept kitchen with stainless steel appliances, granite countertops and a huge center island. The living area will be adorned with a corner gas fireplace, and the master bedroom will offer a walk-in closet and an adjoining bathroom with a step in shower.

The listing boasts that “the ‘Seavey’ home is everything you've been looking for!” I didn’t know what that meant but the exclamation point implied it was exciting, so I googled the definition. According to the top search result at Urban Dictionary, “Seavey” can be used as a noun, verb and adjective. The adjective form means “super-cool or just plain awesome.” I assume that’s what the listing agent meant, as the verb’s definition would make Stormy Daniels blush and this unit doesn’t even have a chimney.

This property’s development is located in Middle Hill, which, according to the developer’s website, is “only a 1 mile walk or bike ride to the vibrant Portsmouth downtown…” and, I presume, all the specialty salts and pet foods, raw juices and oxygen, cigars, candles, yoga, and psychic readings that a hip urbanite’s heart could desire.

Rye, NH--$525,000 will buy you a one bed, three quarter bath (with radiant floor heat), 600 square foot year-round beach cottage with 0.2 acres, steps away from Wallis Sands Beach.
According to the listing, this 1955 era “property was completely rebuilt in 2016 with finishing touches this year,” and features granite leather finished counter tops, stainless steel appliances, “wood-grain finish on tiled floor throughout,” an outdoor shower with its own hot water tank, and a large patio and yard with privacy fence.

Boston, MA--$539,000 will get you a one bed, one bath, 520 square foot parlor level (a few steps above street level) brownstone condo in the heart of Boston, “just steps to dining and cafes on Tremont and Copley Square.”
Originally built in 1860, “this unit has an open kitchen, hardwood floors, full bathroom and ample sized bedroom.” In addition to the $1,037 per square foot list price, you’d have to pay homeowners association fees of $290 per month ($3,480 per year).

Laconia, NH--$524,900 will buy you my latest listing, an adorable four-season one bed, one bath, waterfront cottage on one of the best lots in quiet, private, no-wake Pickerel Cove, which connects you to over forty-five thousand acres of beautiful Paugus Bay and Lake Winnipesaukee water.

Located on a quiet, dead-end street a quarter mile from the community's shared private sandy beach, this 674 square foot completely updated 1966 era home sits on .61 acres and features a boat slip and 125’ of waterfront, which is literally just steps away.

There are water and Belknap mountain views from the 9’ x 8’ front deck, the large paver patio, the 17’ x 8’ heated lakeside sunroom and the spacious, open concept living room. The adjoining kitchen area is adorned with exotic granite countertops, high end laminate flooring and new cabinets. The bedroom and bathroom are surprisingly roomy and the property includes a storage shed and an external, seasonal multipurpose room that could be used as a bunkhouse for guests or a workshop.

So there you have a few examples of what $500K can buy you in a prime “location, location, location” in today’s market: a “Seavey” new Portsmouth condo or a bit of Boston brownstone within walking distance to shopping, dining and entertainment, a seacoast cottage adjacent to a bustling public beach that you share with throngs of tourists, or your very own personal paradise with interior and exterior views of the Lakes Region’s water and mountains. If you’d like to learn more about the latter please visit www.87HarglenLane.com.

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Will it be your list opportunity or missed opportunity?

3/18/2018

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If you’ve considered selling your Lakes Region home now may be the perfect time to list… before presently-peaking home values inevitably drop again.

Across the Lakes Region property values are peaking while the number of “days on market” required to sell is plummeting. In two of the towns I analyzed for this article, the year-to-date supply of homes for sale is also the lowest it has been in years. Yes, it’s a seller’s market but this opportunity won’t last forever.

Let’s take a look at four Lakes Region towns—Laconia, Gilford, Meredith and Moultonborough—where the data suggests it’s a great time to list:

Laconia--In 2017, single family homes and condominiums in Laconia sold at the highest median closed price and the fastest median pace (40 days on market) in over a decade. Year-to-date, Laconia offers the lowest number of active listings (single family homes and residential condominiums) since at least 2007.

Gilford--As with neighboring Laconia, last year Gilford homes (single family and condominiums) sold for the highest median closed price since 2007. They also closed at the fastest median pace (38 days on market) in at least a decade. Year-to-date, Gilford offers the lowest number of active listings for single family homes and residential condominiums since at least 2007.

Meredith--Last year Meredith homes (single family and condominiums) sold at the fastest median pace in at least a decade (38 days on market). The median “closed” price for Meredith homes was also the highest since 2007.

Moutonborough--In 2017 Moultonborough homes (single family and condominiums) closed at the highest median home prices since 2007. Moultonborough homes also sold at the fastest median pace in at least a decade (44 days on market).

It’s a seller’s market but it won’t last forever…
Peaking home values are obviously encouraging to potential sellers. A low inventory of homes for sale gives you the best listing opportunity as there is less competition (especially right now… the market will inevitably be flooded with more and more competitive listings as we progress into spring). Finally, a low number of days on market suggests motivated buyers. Quick closes are a win for both buyer and seller.

But there are numerous factors working to arrest skyrocketing home prices. The real estate site Zillow predicts that home builders will start constructing more entry-level homes to meet homebuyer demand. If you wait too long to list, you may find yourself in competition with new builds that haven’t been a part of the market mix in significant proportion since before the great recession.

Then there’s the imminent threat of increasing interest rates. Mortgage rates are now at their highest level in four years and predicted to rise even higher, with some experts predicting five percent in the near future. While climbing rates indicate a good economy, they can force many potential homebuyers from the market. Rising rates also reduce the likelihood of competitive bids for your property. According to a Redfin survey of 4,000 consumers at the end of last year, a five percent interest rate would cause more than a quarter of today’s homebuyers to slow their plans.

Finally, there’s the recently passed tax legislation which limits property tax deductions to $10,000. This reality hasn’t sunk in for many buyers yet, but the longer you wait to list, the more impact these changes will have on demand at higher price points, because the tax incentives just aren’t there the way they used to be, especially for second/vacation properties.

List opportunity or missed opportunity--Lakes Region property values in Laconia, Gilford, Meredith and Moultonborough are the highest in at least a decade, while the number of “days on market” required to sell is at its lowest point in ten years. Low inventory is presently to the seller’s advantage, but only if you make this your list opportunity, not missed opportunity.

To sweeten the pot, if you contact me to list your property now there may be time and opportunity for it to be featured in the 44-page, full-color Roche Realty Group “Lakes Region New Hampshire Living” portfolio of properties, 80,000 copies of which are distributed in 240 locations statewide.

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Sell your home like a champ, with the ROPI-Dope

3/11/2018

In 1974’s “Rumble in the Jungle,” former heavyweight boxing champion Muhammad Ali “shook up the world” by using a strategy called the “rope-a-dope” to defeat both the odds and his younger, stronger, undefeated and heavily favored opponent, world heavyweight champion George Foreman.

If you’re wondering what in the heck this has to do with real estate, bear with me and read on. I’ll explain below how to use a similar strategy to sell your home like a champion.

But first, let’s look at how the rope-a-dope worked. Starting in the second round, Ali repeatedly leaned back against the boxing ring ropes and covered up, allowing Foreman, who was renowned for his raw punching power, to land hundreds of thunderous blows, mostly on Ali’s arms and body.

If you thought taking punches from a 6’3” 220 pound, heavily muscled, Olympic gold medalist and heavyweight champion is a counterintuitive way to win a fight, you weren’t alone.

At the time many observers believed Ali was completely outmatched and absorbing a horrible, possibly lethal beating.
In reality, Ali’s position and protected stance caused much of Foreman’s punching power to be absorbed by the springy elasticity of the ring ropes. The result was that Foreman’s strength and energy were sapped by throwing a huge volume of punches that missed, were blocked, or landed with little damage.

After the fifth round it was evident that Foreman’s power was fading, increasingly depleted by the huge volume of wild blows he was throwing. In the rounds that followed Foreman’s punching and defenses were rendered ineffective.
By the eighth round Ali sensed that the timing was right. His moment of opportunity had arrived. He pressed in, ultimately landing a left hook and a hard right to the face that dropped Foreman to the canvas.

Ali won the fight, one of the most famous of all time, by knockout.

By using the rope-a-dope, Ali won using strategy over size, patience rather than power, and timing more than technique.

If you’ve owned property in Gilford, Laconia, Meredith or Moultonborough for the right length of time, you can use a strategy similar to the rope-a-dope to sell your home like a champion.
I call it the ROPI-Dope.

What is the ROPI-Dope? You may be familiar with the term “ROI” which stands for Return on Investment. Business professionals and investors frequently use this term to describe how much profit they’ll earn in exchange for the amount of investment they put up.

As I specialize in real estate, I’ve appropriated the term “ROI” and modified it to be specific to property, hence “ROPI”—Return on Property Investment.

How can the ROPI-Dope help you sell like a champ? Like, Muhammed Ali, you can use strategy, patience and timing to sell your home for a profit, regardless of its size.

Here’s an example of how the ROPI-Dope works: many homeowners who purchased single family homes in Laconia in 2008, which was the previous peak in area home values, have been “on-the-ropes” ever since.

Their property investment has been battered by market blows that BOOM! drove median single family home values from $214,950 in 2008 to $161,000 in 2009 and BAM! down to just $155,000 in 2013.

But strategic patience is often rewarded. The home market is elastic, just like ring ropes.

By 2014 Laconia’s median single-family home prices spiked a bit to $190,000. Encouraging, but it wasn’t time to press the attack just yet. Prices dropped again in 2015 (to $175,000).

In 2017 Laconia area single home values finally surpassed the previous high in 2008, hitting a median closed price of $215,000.

Is the timing right? Has the moment of opportunity arrived? Muhammed Ali looked like he was losing throughout much of his fight with George Foreman. Similarly, people who bought in 2008 have looked like they were losing value for ten years.

But Ali prevailed because he was patient and he had a plan. He endured because he understood elasticity. You can too.

Ali was victorious in round eight, and now that median home prices have surpassed the previous peak, 2018 may be the year for you to stop leaning against the ropes and take a swing at a winning sale.

But median prices don’t tell us the tale-of-the-tape for your home specifically. Your Lakes Region home’s value may be above or below the general trend, depending on a number of factors. And if you bought a home in Gilford, Laconia, Meredith or Moultonborough prior to 2004, your ROPI may be a knockout.

The best way to know is to get a comparative market analysis of the value of your home so you can see what it might sell for in today’s market conditions. If you’ve seriously considered selling, please contact me to learn more about your home’s value. When it comes to your Return on Property Investment, is it time to act, or better to stay covered and endure a little longer?

Why you should hire a Realtor with W.I.T.

2/3/2018

Some people assume Realtors simply show a few houses and then collect commission checks at closing… easy-peasy. But real estate professionals with “W.I.T.” do a lot of hard work between showings and closings in order to make deals happen successfully for their clients.

What is W.I.T.?
If you wonder what exceptional Realtors do for their clients, I would reply: “W.I.T. Whatever It Takes.”
When Realtors contract with buyers or sellers, they assume a legally mandated “fiduciary duty” to provide the highest standard of care to their clients. All licensed Realtors in New Hampshire provide services including advice, counsel and assistance in negotiations. All agents and brokers owe their clients confidentiality, loyalty, full disclosure (for example of material defects known about a property), lawful obedience, and the promotion of the client’s best interests.

It’s this last part—promotion of the client’s best interests ahead of our own—that distinguishes Realtors with W.I.T. from the rest.

I can’t speak for all of the 900 plus licensed professionals in the Lakes Region Board of Realtors, but I can tell you from experience that I and my esteemed colleagues at Roche Realty Group will do just about whatever it takes legally, morally and ethically to help clients successfully buy and sell homes.

Agents with W.I.T. attitudes:
Go above and beyond to help clients save time money--
For example, when my recent client’s lender required an engineer’s report in order to finance a deal, I called and called and called until I found an engineer who would do the required work immediately, whereas others demanded two or three closing-delaying weeks in order to conduct an inspection. This extra effort on my part saved my client up to $1,300 compared to what other engineers were charging for the same service.

On the seller side, I recently served clients who were motivated to sell their Meredith property and were willing to concede $10,000 for roof updates and willing to pay the $4,500 they had been quoted for mold remediation.
It would have been quicker and easier for me to simply go with the first roofer and mold remediation provider. But I take seriously the promotion of my client’s best interests ahead of my own. With a little extra W.I.T. power I found a roofer who would update the necessary sections for just $4,500, and a mold remediation firm that did the job for just $750. The deal came together and a little extra effort saved my clients $9,250, making the sale a much better deal for them.

Get things “broom clean”-- With the possible exception of agreed-upon “chattel” (non-real estate property, like furnishings), homes must be “broom clean” at the time of walk-through, just before closing. This means everything not agreed upon or affixed to the property must be removed. If the property is not broom clean, the contract is breached and the deal can fall through at literally the last moment.

When our clients can’t get a property broom clean themselves (for example, those who live out of state), Realtors with the W.I.T. attitude get it done.

This morning, on behalf of a client who lives in the Midwest, I helped Habitat For Humanity employees load a box truck full of unwanted sofas, beds, desks, end tables and other items that will be sold to help support the nonprofit’s noble vision. This required showing up an hour and a half before they got there and digging out enough ice and snow for Air Force One to make an emergency landing, so that Habitat’s box truck could back up to the Meredith bungalow I’m selling, which lacks a driveway.

In December, on behalf of clients who live in the D.C. area, I had to drag a roll of remnant carpeting big enough to cover the field at Gillette Stadium out of the vacation home they were selling. Then I crammed the carpeting into the back of my Prius, which was something like stuffing a 100 pound marshmallow into a piggy bank.

My goal in being a Realtor is certainly not to get needlessly involved in this type of time consuming manual labor. The point is that exceptional Realtors will do whatever it legally, ethically and morally takes to make deals come together.
In conclusion, while some assume Realtors show a few houses and make easy money, the reality is that a lot of hard work takes place behind the scenes. Whether you’re looking to buy or sell a home, it’s important to choose a Realtor with a Whatever It Takes attitude, one who takes very seriously the duty to promote your best interests.

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH. He can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com
Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Learn from Belichick, sell with winning timing

2/2/2018

Would you consider selling your Lakes Region home if you had a good chance to score a winning number for it? If so, you could learn a thing or two about timing from New England Patriots coach Bill Belichick.

In a 2017 interview Coach Belichick talked about the critical importance of timing in both sports and business, saying: “You can be fast, but making the cut at the right time is a little bit more important than being fast. Running the route on the right timing is a little bit more important than being… tall.” He went on to say, “So, a lot of that is instinctive, and a lot of that is gained through experience. Timing is an important part of all critical decisions.”

Similarly, timing is a critical component in selling your home for a winning amount. Let’s look at the stats.

The stats indicate that now is an opportune time to sell your home
Like good football coaches, good realtors use stats and careful observations of the field to make smart decisions about timing. Let’s be very clear (picture me blasting a coach’s whistle to demand your rapt attention right now)… both nationwide and local real estate stats seriously suggest that there is no time like the present to sell your home.

Unlike my old high school football coach (who, if questioned, mashed against my face mask and sprayed moist little flecks of chewing tobacco while screaming witticisms like, “Yours is not to question why, yours is but to do or die!”), I’ll gladly and civilly explain why now is the time to make a pass play.

Buyer demand is growing-- Mortgage rates hovered around four percent throughout 2017. Low rates stimulate buyer frenzy, like players frantically scrambling to recover a fumble. Further, rumors that interest rates will rise have prompted many renters, first time buyers and others to pile on before rates rise and price them out of the market. These two combined factors have resulted in consumer demand as big as Rob Gronkowski’s catcher’s mitt-like hands.

Supply is shrinking-- Simultaneously, the supply of homes for sale went down faster than the Oakland Raiders this season.

To illustrate, the real estate site Trulia reported that in the fourth quarter of 2017, U.S. home inventory decreased by 10.5%. “That is the biggest drop we’ve seen since Q2 2013.”

Trulia cited a 5.9 percent inventory drop in the availability of premium homes and a whopping 19 percent drop in starter homes compared to the fourth quarter of 2016.

Those are the national stats. Here in our division, the Lakes Region, the downward trend in supply is even more evident. For example, there were 340 single family homes or condominiums listed for sale between January 1st and February 1st 2010 in Belknap and Carroll Counties. In 2012 that number dropped to 314. In 2014 it dropped again, to 293. The drop continued in 2016, with only 251 residences listed in that same month-long timespan.

This year, only 191 single family homes or condominiums were listed between 1/1/2018 and 2/1/2018. That’s 64 percent fewer homes than were listed in January 2010!

Don’t miss the window to score-- Still addressing the importance of timing, Coach Belichick said, “The bigger and faster and quicker and all that [a player is], the better, but… in sports or business, the right decision can be the wrong one if the timing is bad.”

Similarly, timing may be more important than the size of your house right now. Right now demand and prices for homes are peaking, while competition (other properties for sale) is at a historically low level.
For example, earlier this month I listed a modest little bungalow that other realtors passed over because it didn’t look like an easy sell. Within 24 hours of listing, with no additional marketing, I received a very strong offer. Within 48 hours I had other inquiries, showings and competitive offers. The home is under agreement, just like that, because of timing.
But if you wait too long to list, home prices may rise to the point where they price many buyers out of the market. If interest rates rise, as they are predicted to do (perhaps five percent by the end of 2018), it will exacerbate the problem.

The play clock is running out on this article so I’ll finish by saying you have a very good chance to score a winning number for your Lakes Region home right now, but only if you get on the field and go for it. Like Coach Belichick said, “Timing is an important part of all critical decisions,” and now is the time.

The Bungalow-down

1/27/2018

According to the New England Real Estate Network’s multiple listing service (MLS), 50 Lakes Region bungalows are for sale, under agreement or were sold within the last year. Okay, so that’s not exactly breaking news, but if you and I toured each of these properties that are collectively referred to as “bungalows,” you’d be astonished by how widely they vary.

For example, these bungalows ranged from $19,000 to over $1.98 million in value. The smallest is 308 square feet with one bedroom and one bathroom. The largest was nearly nine times the size of the smallest, offering 2,689 square feet of livable space with five bedrooms and four baths.

Most of these Lakes Region bungalows were listed as single family residences, but some were listed as mobile homes and some as condominiums.

Which leads to the question…

Exactly what the heck is a bungalow?
Some questions are easy to answer. For example: “Tide laundry detergent pods sure look tasty… should I snack on one?” Answer: “No, absolutely not!” But the answer to “what is a bungalow?” is more elusive because bungalows offer a practical, adaptable and economical core design concept that has evolved over the centuries.

According to American Bungalow magazine: “Since the period when most bungalows were constructed – roughly 1880 to 1930 in the United States – literally every type of house has at one time been called a bungalow.”

While authorities quibble over many details, what they do tend to agree on is that bungalow homes first appeared in America in the 1880s, especially in New England. Over time, the term “bungalow” has become synonymous with small one or one-and-a-half story homes with wide, low-pitched hip or gable roofs, often with deep eaves and exposed rafters.

Bungalows typically feature some combination of the following:

•           open floor plans
•           most or all of the living space on the ground floor
•           built-in cabinetry
•           beamed ceilings
•           simple wainscoting (most often in dining and living room)
•           a large fireplace (often featuring built-in cabinets, shelves or benches)
•           dormers
•           a large, covered front porch (sometimes a rear porch)
•           unfinished attic spaces
•           (originally) unpainted wood trim

The Dictionary of Architecture and Construction defined a bungalow simply as: “A one-story frame house, or a summer cottage, often surrounded by a covered veranda."

Gustav Stickley, a famous American furniture designer and manufacturer, wrote that a bungalow is “a house reduced to its simplest form where life can be carried on with the greatest amount of freedom; it never fails to harmonize with its surroundings...”

Why are they called “bungalows?”
The origin of the funny-sounding term “bungalow” goes back to at least 1659. In the waning days of the British Empire, British Army officers in India adapted the local term “bangala” (which means “belonging to Bengal”) to describe an unpretentious one-story house with a porch that was designed as a temporary retreat for travelers. Today in New Hampshire, many bungalows provide exactly that: a temporary retreat for those who travel here to enjoy the Lakes Region.

Though the style’s popularity waned subsequent to 1930, there was a resurgence in interest following World War II. At this time the word “bungalow” became synonymous with inexpensive vacation homes located near the sea or lake shore.

Why are bungalows so ubiquitous?
Bungalows eventually became one of America’s most popular home styles. Because bungalows were easy to build, economical, and adaptable to taste and region, this home style ideally suited the needs of a growing population of young, middle-class families who yearned to own their own homes.

But bungalow demand really accelerated when enterprising businesses made prospective homeowners an offer many couldn’t refuse: bungalow kit delivery.

Imagine if you could use an Amazon Prime membership to ship all the materials needed to construct a house—including pre-cut lumber, nails, doors and plumbing—right to your door. Sound kind of crazy? Well, at the height of the bungalow’s popularity, Sears, Roebuck & Company and other firms sold bungalow building supplies and even full construction kits through mail-order catalogs. Prospective house buyers could have an entire home shipped to them in parts and pieces. Then, with the help of some local craftsmen, the homeowner could follow instructions to build a practical, attractive small home at an affordable price. I’m not sure if they offered free delivery back then, but nonetheless mail order delivery spiked the popularity of bungalows nationwide.

So that’s the low-down on bungalows (or the bungalow-down). I’ll close by synthesizing and paraphrasing the definitions of Gustav Stickley and others, and assert that a bungalow is “a simple, space-efficient retreat where life and recreation can be carried on with the greatest amount of freedom, a practical home (or vacation home) that is located near and harmonizes with beautiful surroundings, such as New Hampshire’s Lakes Region.”

Why renters should take the home buyer’s plunge in 2018

1/6/2018

On Monday, January 1st at one p.m. over a thousand otherwise presumably sensible people rang in the New Year by shuffling as a group through the 15 degree Brooklyn air and splashing into the breathtakingly cold Atlantic Ocean along with the regular members of the Coney Island Polar Bear Club.

It takes high courage to brave the low temperatures and make that plunge.

Similarly, record levels of consumer confidence and an environment of low unemployment might make 2018 a great time for prospective homebuyers to brave the jump into the ownership pool… especially if they’re renting presently. Here are three good reasons why:

Rent costs are snowballing
Renters have some chilling facts to consider. For example, Rent.com reported that 88 percent of surveyed property managers raised rent in the past year. Fifty-three percent of survey respondents said they were more likely to bring in new tenants at higher rates than renegotiate new leases with current tenants.

Further, Zillow.com reported that in the second quarter of 2017 rents as a percentage of income were at a historic high of 29.1%. That proportion has snowballed over time and is up 13 percent from the share of income devoted to rent between 1985 and 2000.

Worse yet, the Urban Institute has reported, “Over a quarter of renters, or 11.1 million households, are severely cost burdened, spending at least half their income on rental housing.”

The percent of income required for homeownership is melting
On the other hand, it might warm you to know that Zillow also reported that the percent of income required to buy a median-priced home in the second quarter of 2017 was just 15.8 percent. That number has melted like a snowman on a spring day and is down nearly 33 percent from the historic share of income spent on mortgages between 1985 through 2000.

The bottom line is that in many markets buying a home may cost significantly less than renting one.

Interest rates remain low but are expected to rise
Finally, buyers should not be frozen into inactivity just because of reports that mortgage interest rates are creeping glacially forward after years of record lows in the three percent range.

It is true that the rate for a 30-year fixed mortgage recently broke the four percent mark, but if you look at rates in a historical context, it is still a great time to buy. For example, in the 2000’s interest rates averaged about six percent, and in the 90’s about eight percent. In the 80’s interest rates were in the 13 percent range and people still bought homes!

Industry experts anticipate interest rate increases in 2018, perhaps resulting in five percent by the end of the year. That means that now may be the time to buy a home because the longer you wait the more expensive it will become to borrow.

Perhaps, like me, you think it’s a little nuts to join the Polar Bear Club and jump into ice cold water on a 15 degree day. But rising rents and interest rates make right now a perfectly sensible time for renters and other prospective homeowners to take the plunge and join the club of homeowners.

How to keep (your home) from getting stuck in a snowbank

12/15/2017

When I was a teenager and knew everything (or at least far more than my parents), I insisted on getting a Pontiac Sunbird as my first car because: A) I thought rear wheel drive was super cool, and B) my parents were coldly unsympathetic to my pleas for a Corvette.

But in my first winter of driving I quickly discovered that being stuck helplessly in the snow on the side of the road was super uncool.

This time of year your listed property can stay as stuck in a snowbank as a used, 1979 Sunbird with questionable tires—unless you take the right steps to sell during the winter and holiday months.

I may not know everything like I did when I was 17, but I have learned some tips on how to keep property sales from spinning out of control when the conditions are icy and snowy:

Sell the snow to snow bunnies
Don’t think of snow as the inconvenient, never-ending precipitation that cruelly forces you from your warm bed extra early so you can chisel your windshield just so you can see how painfully slowly your morning commute is grinding along. Think of snow like kids do… as beautiful, plentiful and free recreation material. That will help you list your home with words that attract snow lovers and help prospective buyers visualize how they can take advantage of the season.

For example, winter buyers often warm up to words like: “15 minutes to skiing and snowboarding.” If you’re a homeowner reading the Laconia Daily Sun, chances are your property is in close proximity to Gunstock Mountain Resort, snowmobile and cross country skiing trails, ice fishing and other winter activities.

Location, location, location
If your home is in an urban area be sure to highlight how conveniently buyers can access life’s needs even when the weather is bad.

For example, the warm, cozy Cape Cod I have listed at 264 South Main Street in Laconia is within walking distance of the Shang Hai Chinese restaurant, South End Pizza & Seafood, the Vista Foods Supermarket, Sunflower Natural Foods, and the delicious, steaming-hot drinks prepared at Wayfarer Coffee Roasters. When New Year’s Resolution time arrives, the brand new, fully equipped Fit Focus Fitness Club is also within walking distance.

Feature quality photos from all seasons
If you’ve taken photos that show your property in different seasons, share them with your Realtor.

It is best to use high quality equipment and have an experienced photographer take pictures of your home and land, like we do for clients at Roche Realty. But if you have decent pictures of the property that were taken in the spring, summer and fall, share them. A seasonal variety of listing photos can help buyers picture what their prospective new home looks like the rest of the year.

What to show when there’s snow
If your home has been on the market since there were leaves on the trees, ask your realtor to update your listing description for wintertime. Highlight any cold-weather desirables like an updated roof, an attached garage, quality insulation, or a new water heater or HVAC system.

Don’t just say it’s cozy… make it cozy
The colder it is outside, the cozier it is inside… if you do things right.

Crank the heat a little higher when there’s a showing or open house. You might light some candles or even a crackling fire in the fireplace or woodstove if you have one. If you just happened to fry up some bacon and/or bake some cookies the morning of the open house, warm, comforting smells will permeate your home.

Also, consider spreading some welcome, warmth and cheer with potentially hypothermic visitors: set out some hot apple cider, tea or cocoa to enjoy as they visit the home that may soon be theirs.

Winterize your (open) house
Potential buyers brave the elements to arrive at your winter open house. Make sure your driveway, walkways and front porch are clear of snow and ice. Set out a doormat so visitors can wipe their feet before entering.

It’s also a nice touch to place rubber or plastic trays inside for slushy, snow-covered boots. Leave a pair of your own shoes there and visitors will get the idea.

This attention to detail demonstrates that you care about your house, which potential buyers will appreciate.

Decorate simply and strategically
Homes can show better during the holidays if decorated simply and strategically.

I’m sorry to be “Bah Humbug” but when it comes to selling homes, that oversized Nightmare Before Christmas inflatable in the front yard is about as helpful as rear wheel drive and bald tires on an icy road. And a Rockefeller Center-sized Christmas tree wedged under an eight-foot ceiling makes a living room look cartoonishly puny.

On the other hand, bright red and green poinsettias are an inexpensive and colorful touch. If you decorate with string lights, white lights are best because they’re the least distracting. And if you had to pick one just holiday decoration, make it a wreath on your front door. Wreaths can easily be customized—for example with a colorful bow—to match the personality of your home and create a classy, cheerful first impression for visitors.

I may not know everything like I did when I was 17, but I do know this: Winter sales don’t have to spin out, and your listed home doesn’t have to be helplessly stuck in a snowbank all winter… because that’s super uncool.

Why Winter Can Be a Hot Time to Sell Your Home

12/8/2017

We’ve all heard myths and urban legends that simply aren’t true. For example, you may have heard…

If you put a penny on the railroad tracks you’ll derail the train, flatten the penny, or both.
If you cross your eyes they’ll stick that way… forever!
If you swallow gum it will remain lodged in your stomach for seven years. Unless…

You eat Pop Rocks and drink soda, in which case your stomach will burst (and the previously-swallowed gum will be expelled by the explosive chemical reaction).

Similarly, many of us have heard the real estate equivalent of being sternly cautioned to wait an hour between eating and swimming… the myth that people should wait for spring, because you can’t sell houses in the winter.

I’m here to help homeowners melt that real estate myth and clearly see the truth, even if they did sit too close to the TV when they were little.

Why winter can be a prime season to sell your home
The change of season changes the dynamic of real estate sales, giving fewer listings more leverage. There are several reasons why winter can be a strategic time to sell your home:

Low inventory means high visibility
The supply of for-sale homes tends to dip with the mercury in the thermometer. There are fewer homes on the market this time of year because many homeowners fall for the myth that you “can’t sell a snowbank.”

But the truth is that people need to buy homes all year long, regardless of weather. By listing during the seasonal dip in inventory you can potentially concentrate stronger, more rapid interest on your property than you could next spring, when the market will saturated with an abundance of competitive new home listings.

Winter buyers are more serious
Lots of “Lookie Lou’s” look at lots of properties and go to lots of open houses in the spring and summer. There may be fewer buyers during the winter months, but you are likely to find that those who do bundle up to brave the ice, snow and wind are more focused and more motivated than fair weather shoppers.

Buyers with pressing timetables and limited options may be less picky, more open minded, and more motivated to make quick offers.

Cold weather generates warm regards from your listing agent
A good realtor will always be motivated to sell and will make clients feel like the most important people in the world, regardless of season. But the reality is that listing in the winter can help.

Realtor activity often slows down during the icy and snowy months, especially here in New Hampshire’s Lakes Region. Fewer clientele means listing agents have greater motivation and more time and energy to promote the properties they represent.

No landscaping, no problem
I have three winter words for you if your property is lacking in the landscaping department: “Let it snow, let it snow, let it snow!”

Properties listed in the spring or summer require constant attention to existing landscaping, which is a critical aspect of curb appeal. Warm weather months also highlight any deficiencies in existing landscaping.

Higher closing prices
According to Trulia, “Statistics show that homes actually sell at a slightly higher price in winter.” I was curious to see if this assertion would hold up in the Lakes Region, so I did a quick study of Belknap County single family homes listed between the beginning of May and the end of August, 2017, and I compared the results against homes listed between the beginning of December 2016 and the end of March 2017.

Sure enough, the median closed prices for homes listed during the winter months were about 3.6 percent higher than comparable Belknap County properties listed in the spring and summer months, netting a median difference of an extra $7,650 for the winter listings.

Those are the cold, hard facts. So don’t let a real estate myth make you wait until spring to sell. Winter months can mean more focus on fewer listings, and more motivated buyers. You can sell your home in the winter months, and if you contact me, I can help.

But please just don’t go outside with a wet head this time of year… you’ll catch your death of cold!

Feel free to contact me with questions about buying or selling residential real estate in the Lakes Region. Your questions may be the subject of a future article.

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH. He can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com
Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Cape Cod Homes: Economical and Efficient Today, like They Were 400 Years Ago

11/17/2017

Cape Cod style homes were first built by early settlers who had two important concerns that persist for homeowners to this day: affordability and energy-efficient protection from harsh New England winters. Nearly 400 years after the first homes of this style were built, those characteristics continue to make Capes a great option for 21st century homebuyers.

Designed to be cozy, Cape Cods make excellent starter homes for first-time home buyers seeking affordable properties, and they are also an attractive option for retirees and empty nesters who are seeking to downsize, minimize stair climbing, and stretch income and savings as far as possible.
A style that endures for a reason
Though the style seems quintessentially American, Capes originated with English settlers in the 1600s, inspired by English thatched cottages and the “hall and parlor house,” a small, affordable, two-room style of home. In New England these homes were adapted with local building materials to keep out the winter cold.

The term “Cape Cod House” wasn’t coined and popularized until the 19th century when the book Travels in New England and New York was published.

The style’s popularity waned for a time, until a Boston-area architect reintroduced the Cape in the 1920s as a contemporary housing option that retained historical exterior features with modernized interiors.

In the mid 20th century, the Cape Cod style became highly popular with suburban developers who planned communities designed to supply inexpensive homes for the young families of World War II veterans.

Affordable, built for function before form, and efficient to heat and clean, these American classics are still great options for today’s military veterans.

What makes a Cape Cod a Cape Cod?
A Cape Cod house is a compact, one to one-and-a-half story frame building often featuring:

a steeply pitched gabled roof that allows snow to slide off easily
a centrally located chimney and front door flanked by multi-paned windows
wide clapboard or shingles on the exterior and the roof to help cut the cold
small rooms with low ceilings, making them easier to heat
a main bedroom on the lower level
sleeping rooms located in the attic space above
a narrow “captain’s stairway”to second floor rooms (which were often kept for seafaring boarders), designed to maximize first-floor space
flooring comprised of softwood or hardwood such as heart pine, chestnut, or oak planks
“gunstock” corner posts; frame construction named for the tapering shape of a rifle stock
exposed, rough-hewn beam ceilings that add to the home’s rustic charm
wainscoting designed to cover the lower part of walls as both decoration and protection against dampness
in New Hampshire, Capes often feature granite steps and foundations

After nearly four centuries, Cape cods continue to appeal to homeowners for both aesthetic and practical reasons including affordability and energy-efficient protection from New England winters.

I have an adorable circa 1820 Cape Cod with classic wood shake exterior, granite steps, exposed beam construction, hardwood flooring, gunstock corners, historic wainscoting, and plenty of storage and workspace listed for sale at 264 South Main Street in Laconia. Please contact me if you’d like to schedule a showing.

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH. Brent can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com.

Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Surfing the Seller’s Market

11/17/2017

If you’re considering selling your Lakes Region home, you’re like a surfer. You’re studying the swells, eager to catch the next big wave at its crest, so you can get the best ride, the best return for your money.

Both nationwide and statewide data show a tide of steadily swelling home prices that are being buoyed by a variety of factors including the following…

a strengthening economy
low national and statewide unemployment
healthy consumer balance sheets
low mortgage interest rates
a low supply of homes
sustained high demand from buyers

Prices are swelling, like waves
Peaking prices suggest that now might be a great time to be prepared to sell your Lakes Region home… before the wave breaks, the market shifts, and the best opportunity passes you by.

A real estate data firm, CoreLogic, recently reported that home prices rose seven percent nationally in September 2017, compared with September of last year.

According to the New Hampshire Association of REALTORS® (NHAR), “The New Hampshire residential housing market again showed a dramatic monthly median price increase in October.” NHAR reports that:

last month, the median price for single family homes in New Hampshire was up 6.9 percent from October, 2016, to $265,000, the highest median price for any October since 2005
year to date, 2017 home sales are behind by just 0.1 percent (only 15 sales) from last year, in which New Hampshire saw the most single family home sales ever
year to date sales volume is up more than 6 percent over year to date last year, the highest dollar volume in New Hampshire history
the amount of time it takes to sell a single family home in New Hampshire continues dropping, as October saw an average of 67 days on the market, a 15 percent decrease from last year

The nonprofit organization also reported that the Granite State’s condominium prices were up 5.2 percent from last October, to a median price of $197,500.

Don’t miss the wave
Timing real estate is like timing a big wave. No one can say for sure when conditions will reach their absolute peak, but one thing is certain: real estate is cyclical and it comes in waves, with many ups and downs.
There are several major factors on the horizon that could lead to a potential downturn in home values.

First, low interest rates could see an upward turn. That will certainly impact values negatively. Swells in interest affect mortgages and make already peaking home prices even less affordable for buyers, dampening demand.

Second, the record stock market gains over the past nine years could reverse trend and negatively impact real estate values, because many times these two markets go hand in hand. REITS (real estate investment trusts) are already seeing some effects.

Third, proposed major tax reform is on the immediate horizon. While the process is still being filtered through, there are proposals to eliminate the second home interest deduction and property tax deduction. And for primary homes, the interest deduction proposed is less than half of what was originally allowed. Also, a cap of $10,000 on property tax deduction, or possible elimination, is being proposed.

It’s been decades since we had a major tax overhaul in this country, but the last overhaul did have a major impact on home values.

Finally, the adage “what goes up must come down” applies to real estate. The increases we have seen during the last nine years could be heading to a peak. If you’re looking to catch the wave at its perfect moment, now would be the ideal time to explore your options and receive some estimates on the value of your property. You might be pleasantly surprised how your value has risen.

It is said that “time and tide wait for no man.” If you’re seriously considering selling your Lakes Region home please contact me for a complimentary market analysis on your home.

Feel free to contact me with questions about buying or selling residential real estate in the Lakes Region. Your questions may be the subject of a future article!

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH. He can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com

Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Thousands of reasons to be thankful for New Hampshire

11/16/2017

It has been said that the three most important words in real estate are “location, location, location.”

As I write these words, my eyes are drawn from the computer monitor to a local view too dazzling to ignore. Puffy cumulus clouds afire with orange, pink and purple hues are scuttling across a slate gray sky while the sun sets majestically behind tree-lined mountains on the far side of the lake.

I am so grateful for scenes like this, and for all of the natural beauty that surrounds us in the Lakes Region. But we have many more reasons to be thankful as residents and homeowners in our beautiful location, the Granite State. Here are a few:

Quality of Life

New Hampshire has been ranked America’s “Most Livable State” eight times since 2004, according to Morgan Quitno Press, a research and publishing company that ranks U.S. cities and states.
In 2017, S. News and World Report named New Hampshire the number one state in the nation for opportunity, number two for best state overall, number three for education, and number four for health care.
New Hampshire was rated the number one state for “quality of life” for those considering moving to the United States, according to BritishExPats.com.

Employment and Earnings

New Hampshire had the highest median household income in the nation in 2016, according to the U.S. Census Bureau.
In October 2017, New Hampshire’s unemployment rate was 2.4 percent, which is the fourth lowest in the United States, according to the Bureau of Labor Statistics.

Family and Education

This year New Hampshire was rated the best state to raise children, according to a report published by the Annie E. Casey Foundation.
Also in 2017,S. News and World Report ranked New Hampshire as the number one state in the nation for Pre-K through 12 education.

Retirement

In 2017 New Hampshire was Bankrate.com’s top pick for the best state to retire.
New Hampshire was also chosen as the number one state for retirement by moneyrates.com. This ranking was based on cost of living, unemployment rate, tax burden, average climate, violent and property crime rates and life expectancy.
The Lake Winnipesaukee area was rated the number one retirement place in the country under the category of “leisure living for recreational and cultural opportunities” by MacMillan Travel’s Fifth Edition of Retirement Places Rates.

These ratings give us some great reasons to be grateful we live here, but there are many more. New Hampshire has nearly 18 miles of ocean coastline, 40,000 miles of rivers and streams, and 1,300 lakes and ponds, including the “Tahoe of the East,” Lake Winnipesaukee.

The Granite State also boasts 182 mountains over 3,000 feet, and, with over 87 percent of the land covered by forests, including 760,000 acres of National Forest, New Hampshire is the second most forested state in the nation.
When it comes to “location, location, location,” New Hampshire is a hard place to beat, and I am sincerely thankful to live full time in a state whose beauty draws millions of worldwide visitors each year.

Please contact me if you would like help buying or selling a home in the Lakes Region. I also welcome your questions about buying and selling residential real estate.

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH. He can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com
Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Nation’s Natural Disasters will Affect New Construction In New Hampshire

11/2/2017

The nor’easter that just hammered New Hampshire damaged or destroyed numerous homes and cottages across the state, from Allenstown to Bartlett, Dover, Epping, Gilford, Thornton and Warren.
While the local property losses are costly and heartbreaking, the good news is that the Granite State has fared far better than other parts of the country.

For example, when Hurricane Harvey hit Houston in August, it damaged more than a quarter of a million homes and completely destroyed more than 15,500.

In September, Hurricane Irma invaded the Florida Keys, damaging 90 percent of homes there, and demolishing one in four. Overall, about 675 residential and commercial structures were lost.

In October, Hurricane Maria pummeled Puerto Rico with 155 mile per hour winds, resulting in the destruction of hundreds of properties. Also last month, wildfires charred northern California, incinerating more than 8,400 homes and other buildings.

While recent storm damage in New Hampshire was small by comparison, natural disasters elsewhere can directly impact the real estate market here in the Lakes Region.

Nationwide recovery will elevate new construction costs
Massive efforts are currently underway to repair the cumulative property damage in Texas, Florida, Puerto Rico and California.

The simultaneous repair and reconstruction of hundreds of thousands of homes and buildings will require massive amounts of lumber, shingles, sheetrock, copper, plumbing, plywood, concrete and other building materials.
Further, skilled construction workers are attracted by work opportunities like moths are attracted to flame. Many will relocate—at least temporarily—to storm-struck areas.

The spike in demand for building materials, combined with the potential shortage of skilled workers, will likely cause new construction costs to rise nationwide, including in New Hampshire, just as costs rose in the aftermath of Hurricane Katrina in 2005.

For many home buyers, the likelihood of rising new construction costs will make existing properties an affordable, attractive alternative.

I asked my principal broker, Frank Roche, who played a critical role in the original development of Lakes Region communities including South Down Shores, Long Bay, Grouse Point Club, Samoset Condominiums, and Broadview Condominiums what his thoughts were.

Frank said, “There’s no question that the best home values out there right now are on resale product. There is a wide variety of existing home choices ranging from planned communities to condominium developments to water access communities. And think about it… many of these communities were developed during the go-go years in the 1980s. Land and construction costs back then were much, much more reasonable.

“So many people today think new is better,” he added. “But if you’re looking for value, look for quality existing communities and focus your attention on upgrading some of the functionality of the home.

“New kitchen updates, bathroom upgrades and flooring choices can make something used look new. But most importantly, you can buy into the communities that are considered prime locations because they were built at a time when there were many more choices, and they were much more affordable for developers.”

He noted that while some of the newer condominium developments around the Lakes Region have been selling for up to $318 per square foot, buyers who are open to older, existing properties can find more favorable costs.

For example, I have a single-family, four-bed, two-bath home listed at 39 Old Hubbard Road in Meredith that is valued at about $257 per square foot. Because the home was built in 1968, it offers an incredible value at Winnipesaukee Beach Colony Club, one of most sought-after water access communities in the Lakes Region.

The home features a beautiful post and beam living room with a cathedral ceiling that is just as majestic today as it was nearly 50 years ago when the property was first constructed.

To further illustrate the value of existing homes, for less than the cost of new construction, this property includes a deeded 24’ dock, and access to the small community’s large, private, sandy beach and 600 feet of shorefront, which are just a few hundred feet away from the front door.

While recovery from natural disasters will likely cause new construction costs to rise spike, the inventory of existing homes like this one in Meredith continue to offer affordable, attractive alternative for home buyers.
Feel free to contact me with questions about buying or selling residential real estate in the Lakes Region. Your questions may be the subject of a future article.

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH.
Brent can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com
Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Is your house scaring buyers away?

10/21/2017

Halloween is just around the corner and many Lakes Region homes are adorned with fake cobwebs, skeletons, jack-o’-lanterns and other frightful decorations intended to spook the local trick or treaters. But what if your listed home has features that are unintentionally scaring away potential buyers just as surely as if your house were haunted?

Following are a few common home selling ghosts that can frighten buyers and haunt sellers, along with some fear-busting remedies:

The undead roof
Regardless of their actual backgrounds, many prospective home buyers peer and squint and become amateur roofing inspectors when they step out of the car to see a property. Roof concerns can scare them before they even step foot inside.

According to the actual roofing experts at the National Roof Certification and Inspection Association (NRCIA), a nonprofit organization that certifies over 1,100 roof inspectors, “Roof deficiencies are the most common problem reported by home inspection associations. Thirty percent of real estate inspection claims are due to roof leaks and water penetration. Thirty-nine percent of homeowner’s insurance claims are because of roof problems.”

The fear buster
If your home’s roof is nearing the end of its projected lifespan, replacement could help you close more quickly. Otherwise, you might be able to calm fears in prospective buyers by proactively communicating the facts on your roof’s age and construction.

The National Association of Home Builders (NAHB) reports that most roofing products are designed to last at least several decades under normal weather conditions:

Asphalt shingles: about 20 years (though higher-quality asphalt shingles may be warrantied for up to 50 years)
Architectural asphalt: about 30 years on average
Wood shingles and shakes: estimated lifetime of 30 years
Metal: The International Association of Certified Home Inspectors projects metal roofing to last 40 to 80 years
Slate, concrete or clay tiles: rated for a life expectancy of 100 years or more

Research what the experts report regarding your roofing material’s life expectancy, and list in your seller’s disclosure when the roof was last updated. Sellers and listing agents cannot offer their own warranties on remaining roof life, but if you can provide evidence to suggest there may be years or decades left in the roof, you may be able to minimize fears in buyers.

Creaking doors
Doors that shriek and moan when being opened, or that mysteriously resist opening are expected features in haunted houses, not in hunted houses. For all my clients and I know, the coat closet we were never able to open yesterday may have an actual skeleton inside!

But seriously, jammed windows and creaky doors can stop showing momentum and alarm buyers who want to invest their hard-earned money into a well-kept home.

The fear buster
Expect prospective buyers to open and close all doors (and possibly windows) in the home. Walk through the property pretending you are a curious buyer visiting for the first time.
WD40 is to squealing door hinges what holy water is to vampires. Get out the sandpaper and smooth down door edges so they open and close quietly and properly.

Zombie appliances
What’s avocado green and just won’t die? No, it’s not a zombie, it’s the 40 year-old oven in the Gilford property I showed last week.

While many prospective buyers don’t actually know roofs, they know outdated appliances when they see them, which can cause them to anxiously wonder what else needs replacing.

The fear buster
If your old, white refrigerator is yellowing like a mummy’s wrappings, or your stove top is harvest gold, it might be time to update to stainless steel. New appliances can have the exact opposite effect of old ones, sending a reassuring signal that you care about and for the property, potentially making buyers less anxious and more excited.

Title Terrors
A “title” is the very important document that demonstrates ownership, so title problems can quickly spook buyers away.
For example, conveyance without a recorded deed sometimes happens during transfers between family members, which can later interfere with or even inhibit the sale of your home. Title research can reveal accurate or inaccurate liens, such as a paid-off mortgage that is still showing up as a valid lien on the property, or a “mechanic’s lien” that was filed for work done on the house by a subcontractor.

The fear buster
Just as I advise buyers to get pre-approved, I advise sellers to be similarly proactive with regards to title.
Contact your title company, find out what you must do to prepare for selling, and address any issues promptly. Whether valid or invalid, listed liens must be addressed. It’s better to identify and address any issues early.

The Ghost of Odors Past
There’s an adage in real estate that says, “If I can smell it, I can’t sell it.” in the fertile imaginations of nervous prospective buyers, a musty smell can quickly evoke images of mold and mildew monsters lurking and spreading behind the walls.

The fear buster
You may have heard the term “noseblind” on those FeBreeze commercials. I looked into it. It’s an actual cognitive adaptation, a real condition! If you’re noseblind to the smell of your home, get an honest opinion from a friend, neighbor or your friendly neighborhood Realtor.

Then do whatever you must to tackle mustiness and other odors. Proactively address any mold and mildew buildup, pet urine on the carpet, or smoke odor.

The opposite of a haunted house experience is an inviting house. There’s nothing like entering a house and smelling something like fresh baked cookies, whether in the form of actual baked goods, or scented candles.

Have a happy Halloween, but if you’re going to spook anyone, make sure it’s trick or treaters, not prospective home buyers! Please email me at brent@rocherealty.com with any questions about buying or selling residential real estate that you’d like to see addressed in an upcoming article.

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH.
he can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com
Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Selling Your Home in Laconia: Some Why’s and How’s

10/9/2017

If you own a single-family home or condominium in Laconia, it might be a great time to sell. First let’s look at some reasons why. Then we’ll consider some “how to” tips.

Reasons why it may be a good time to sell your home in Laconia:
Single-family homes are selling faster and for better median prices in Laconia. Year-to-date 2017, median “sold” prices are the highest in nine years, and the median number of “days on market” for single-family homes is just 20. That’s 59 percent faster than 2016 and the fastest pace in at least ten years.

Last year Laconia also sold 141 condominiums, the highest number in eleven years. The median days on market for condominiums year-to-date is just 22. That’s 45 percent faster than last year and the fastest pace in at least ten years.
These trends suggest Laconia homes may be close to peak. When you then consider the possible impact that increasing expenditures at city and county levels may have on future property taxes, and the very real possibility of increased interest rates, it could be time to capitalize on your most important investment. For those of you who are thinking about scaling down or moving, it might be a perfect time.

Now that we’ve looked at a few of the “why’s” of selling, here some tips on how to economically get your home ready for the quickest sale at the best possible price.

“How to” tips for selling:

Work from the outside in
If prospective buyers like what they see on the outside of your single-family home, they’ll be enticed to see the inside. If they don’t, they won’t.

Clean gutters, a tidy lawn and well-maintained grass, flowers and shrubs go a long way toward creating favorable impressions. Keep in mind that first impressions don’t just occur during scheduled showings; curious prospective buyers drive by homes all the time. It doesn’t have to cost owners any money to maintain their landscaping, but it could cost them a lot if they don’t.

Decorative shutters and window mounted flower boxes offer affordable options to immediately add charm and color to your home’s curb appeal.

Finally, if you have a functional but boring concrete walkway, you might dress it up with stone, clay or concrete pavers that can add complementary color, texture, and appealing width to your walkway.

Clean and cut clutter to close
Whether you own a condo or a single-family home, a clean, clutter free interior makes an amazing difference when showing a property to buyers. It sounds obvious, but it is crucial that your home looks livable. Prospective buyers can be easily distracted by clutter. Clean and declutter as though you are expecting very important visitors… in this case visitors who may want to give you tens or hundreds of thousands of dollars for your property!

Pay special attention to cleaning windows so your property looks great from the outside looking in and inside looking out. Consider removing drapes, curtains and valances so every possible ray of natural light penetrates the interior of your home. Just like lighting is important when filming actors, models or products, proper lighting will help your REALTOR® take the best pictures and give the best showing possible.

Paint for profit
Everyone knows you can cover up wear and tear, crayon marks and other sales distractions by painting walls. But did you know that paint color is an important factor that can affect a home’s selling pace and price?

Experts often advise choosing neutral colors when painting rooms, but some recent information suggests that fresh paint in the right color may actually help you sell your home more effectively. Zillow’s 2017 Paint Color Analysis studied over 32,000 photos from homes sold nationwide, in order to determine how certain paint colors impacted average sale price versus comparable homes with white walls.

Their findings suggest that homes with:

blue or soft gray-blue kitchens sold for a $1,809 premium
powder blue or soft periwinkle colored bathrooms sold for $5,440 more than expected (white bathrooms sold for an average of $4,035 below similar homes)
light cerulean to cadet blue bedrooms can earn a $1,856 premium
slate blue to pale gray blue dining rooms sold for $1,926 more on average than homes with white dining room wall colors
front doors painted in shades of dark navy blue to slate gray sold for $1,514 more
light beige, pale taupe or oatmeal-colored living room walls sell for $1,926 more

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH and can be reached at (603) 229-8322 or brent@rocherealty.com
Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

Protecting Yourself as a Home Buyer

10/6/2017

Buying a home, especially your first home, can generate alternating emotional currents of excitement and fear. Proper contingency agreements are a way for home buyers to insulate themselves against fear and protect themselves against unpleasant shocks when investing in a new home.

Contingencies are pre-defined conditions that must be met in order for a home sale to be completed. If the buyer’s (or seller’s) contingencies are not satisfied prior to closing, the sale could be cancelled and earnest money, funds deposited in good faith and held in a separate escrow account, will be returned to the buyer.

Common residential real estate contingency clauses for home buyers include:

A “clear title” contingency to insure against problems that may arise regarding the seller’s legal ownership of (and therefore right to sell) the property. Sellers generally will have 30 days to clear any title issues
An appraisal contingency that gives the buyer the option to withdraw an offer if the property appraises for less than the agreed-upon purchase price.
A financing contingency, to insure that the buyer is qualified and able to obtain sufficient funds to purchase the home.
A home inspection contingency to protect against major problems with regards to things including the home’s structure, heating and cooling (if applicable) systems and roof. It may be negotiated for the seller to assume responsibility for the cost of repairs noted by the home inspector, up to a pre-defined amount

Other contingencies may cover the availability of property, casualty insurance and flood insurance. If purchasing a home that is not connected to a public water or sewer source, buyers may include contingencies for water quality testing and a septic inspection.

Finally, buyers may also insert a “home sale contingency” that empowers them to sell their current property in order to qualify for financing of the new home. Sellers may accept such a contingency, but they will generally require a “kick-out clause” that allows them to keep the house on the market. In the event that they receive another offer that does not have a home-sale contingency, you would have a set amount of time, for example three days, to remove the home sale contingency and complete the sale. If you do not, the home could be sold to another buyer.

Buyers can and should use proper contingencies to protect themselves, but it is also important to not insist on too many contingencies when submitting an offer, as this can generate fear in the seller that they are wasting time on an offer that will never close, and possibly missing out on other opportunities as a result.

Feel free to contact me with any questions about contingencies or other residential real estate topics… I’m happy to help and may address them in an upcoming article.

Brent Metzger is a sales associate at Roche Realty Group in Meredith, NH.
Brent can be reached on his cell phone at (603) 229-8322, at the office at (603) 279-7046, or by e-mail: brent@rocherealty.com
Please feel free to visit www.rocherealty.com to learn more about the Lakes Region and its real estate market.

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