Even though the economy is tough these days, there is opportunity for some of us! If you’ve kept your job at roughly the same pay and hours, and there’s no reason to expect any changes , you may be able to get a great deal on a more substantial home in the White Mountains of NH or Western Maine. If you own a starter home, or a home in the best selling range of our area, you’re in an excellent position to “move up”. Many homes in the mid range market are just sitting, waiting for a buyer. Opportunity knocks!

First, determine how much more you may be able to afford. Interest rates are at historic lows. If you haven’t refinanced in several years, you may be able to get more home for the same money you’re presently paying now. Interest rates are currently at about 4%. If your current loan is at 6% or even more, that could make a big difference in your current borrowing power . A $200,000, 30-year loan costs $1,199/month at 6 percent interest. At 4 percent, that same loan only costs $954. That’s nearly $250 less per month. You could actually buy a home for $50,000 more with a slightly lower monthly payment than you currently have now . Of course, if you don’t want to move, you might want to consider a refinance of your current home.

Another housing expense you want to take into account are your real estate taxes on your current home . From town to town in our valley real estate taxes can vary to a considerable degree. Taxes in the Mount Washington Valley and Western Maine can range from $9.15 per 1000 dollars evaluation to as much as $ 21.78 dollars per thousand . On a $200,000 home, taxes alone could range from $1,830/year to $4,500 /year. If you live in a town with the highest tax rate, you’re paying $2,526 more per year, or over $200/month more than the town with the lowest rate. That can give you a lot more borrowing power without increasing your monthly housing expenses. Compare the homes first, then compare the taxes.

Moving up doesn’t necessarily mean buying a larger home. You could buy a home in a more convenient location for your family needs, or have a mountain view, more privacy, better amenities, or a higher quality home. In our valley mid-range homes have been discounted substantially more than starter homes and there is a better selection too. In a stronger market, mid-range homes sell for substantially more. Moving to a home in the $225,000 and up range in this area generally means a substantial discount in value when compared to starter homes.

To take advantage of the opportunities in a down market, it’s time to look at your loan, your taxes, and properties that are in slower moving price ranges 225K to 400K . It’s the same opportunity you’ve always heard: “Buy when everyone’s selling. Sell when everyone’s buying.” As you can see, our present real estate market may provide you an opportunity to improve your long term equity position and have a nicer home to enjoy too, especially if you have an older loan and live in a higher tax-rate area. Even if you don’t, there are plenty of deals out there.

When buying a home, you should be aware of some of the changing factors that add value to a home. Energy efficiency is becoming very important and quality has become more important than size. These homes can save you money in heating, cooling and maintenance costs, as well as improving the comfort of your new home. Is it time to start looking at your options?

We’re often led to believe that the median sales price in any given area is a reflection of home values. Most economic reports and local housing indicators use this number to determine market conditions. The median home sale price is actually the point where half of all homes sold above a certain price, and half sold below. It is reflective of sales trends, not home values.

When the median homes price is low for any given area, there are many potential causes that are unrelated to true home values. For instance, during a slow market, or season, most sales may occur in the entry level range of homes. Just because a large number of fixer uppers, foreclosures and mobile homes have sold during a given period does not mean that the average family home has lost substantial value. It means that most buyers are looking for low end properties. Again, the median sales price reflects a trend, not the value of any particular home.

Similarly, when a high number of upper end home sales occur in a particular area, that does not mean that prices have gone through the roof. It simply means that more people have bought higher end homes.

Do not, however, ignore median home price trends. If most sales are on the lower end of the spectrum, that generally means there’s less competition for mid-range and luxury homes. For example, if there are 20 homes on the market in the $300,000 price range, and 2 buyers per month purchase a home in this price range, then it will take an average of 10 months to find a buyer, given that all of these homes are of the same general quality. Those who need to sell will reduce the prices on their homes, or improve the value. The best valued homes will sell first. The least valued homes may not sell at all. Sellers must compete for buyers.

In a recovering market, where most entry level homes have already sold, there’s generally a push to move upward, into a more substantial home. Many families have either outgrown their home, or have made improvements over time and would like a better home. This increases the demand for mid-range and luxury homes, and is an indicator of the market heating up. When selling a mid-range or luxury home, after this point and before the peak of the market is the best time to sell for those who plan to downsize, or rent. In contrast, if your plan is to move up to a larger home in the same area, a slow market may offer better opportunities as most buyers are competing for entry-level homes. You’ll have greater bargaining power if you’re moving into higher price range.

Another commonly used measurement of market trends is the Average Sales Price. This is where the total dollar amount of sales is divided by the number of homes sold. This can be skewed as well. If, for instance, the multi-million dollar mansion in town that sells every 20 years or so is sold during a given period, the average home sale price will be very high.

Several factors can have a very distinct effect on the value of homes in a given market. Employment and incomes have a direct influence on home values. High employment increases value. High income levels increase values even more. As you’ve always heard, location has a direct influence on value. Homes by the ocean, lakes, mountains, and many urban developments are often in greater demand and command more value. Where location is the driving influence, everything counts: excellent schools, low crime, desirable locations and neighborhoods.

To get a realistic idea of the value of your home, a real estate agent will conduct a Comparative Market Analysis (CMA). This will compare your property to homes that have already sold. This is important because you may need this information if an appraiser comes up with a lower figure for the value of your home. In a CMA, your property will also be compared to similar properties that are currently on the market. This will give you substantial insight into the properties your home must compete with.

If you’re looking to get a true reflection of your property’s market value, contact a Realtor. Realtors rarely charge for a Comparative Market Analysis when you’re looking to put your property on the market. If the price meets your needs, and fits into your plans, your agent can usually get your property on the market very quickly.

“To buy or to rent?” Recent graduates, young couples, relocating professionals and others have all asked themselves this question at one point or another. While each option has its benefits, the decision to purchase an apartment, condominium or house as opposed to renting, is complex and based on a number of factors. According to a survey from October 2010 from the National Association of Realtors, nearly eight out of 10 respondents believe buying a home today is a good financial decision  The question that remains is whether or not now is the right time to purchase a home for you.

For most people, deciding to purchase a home is the largest financial decision of their lifetime. Before making the jump into homeownership, potential home buyers should consider the “soft” lifestyle issues as well as the “hard” financial ones. The professionals at Coldwell Banker Wright Realty have provided the following four financial and lifestyle questions to consider when determining if buying a home is the right decision for you:

1. Do you have a steady income? At or near the top of every potential homebuyer’s mind is whether or not they can afford to buy a home right now. Buying a home remains a sound financial decision for those with documented income and a good credit history, and a steady income can provide a strong backbone for the initial down payment and future mortgage payments. The “Affordability Radar” tool on coldwellbanker.com is a great way to begin this planning and assess “how much home you can afford.  Don’t hesitate to speak with a real estate professional even before you’re ready to buy a home. Along with a financial planner, a real estate professional can help you answer and uncover questions about the cost of homeownership.

1. Do you plan to stay in a home for an extended period of time? With proper planning, a home purchase has historically proven to be one of the strongest investments one can make. Along those lines, it’s imperative to understand that investing in a home is much different than investing in a stock portfolio. Homes typically appreciate in value over time while the owner builds his or her equity through monthly mortgage payments. If you anticipate staying in a home for only one or two years, it doesn’t necessarily mean buying is not for you, but you are less likely to see a significant financial return on your investment.

1. Do you plan to sell a house in order to buy a house? A local real estate professional can help you understand current local market conditions and will help you make smart decisions when listing a home on the market. If you do not currently own a home that needs to be sold prior to purchasing a new one, now is a particularly smart time to buy. Even with lenders becoming increasingly more thorough in their approval process, mortgage financing is still widely available for those with a steady income and solid credit. High inventories and low interest rates give first-time homebuyers a tremendous amount of opportunity and flexibility in markets across the U.S.

1. How do your other options compare? For renters, calculating month-to-month housing expenses is as easy as inquiring about the monthly rent and average utilities. The calculation gets a bit more complicated when considering the monthly cost of owning a home. A real estate professional can help you understand a range of financial considerations from annual property taxes to the tax incentives for owning a home.

 There is no one right decision when it comes to renting versus buying a home.Each individual should take the time to look at their personal and financial situation to decide what will work best for their needs and lifestyle.

There are plenty of things to do to make your home more sellable. One of the most important things you can do is to de-clutter your home and get the details right. Realtor Magazine has a great article on getting your home ready to sell, Finishing Touches by Melissa Dittman Tracey. According to Tracey, if you’re planning to sell you can stage your home, or use some elbow grease. Here are some fantastic tips from her article:

Box it up. Most people pack up after they sell the house, but why wait? Sellers should start packing as early as possible—ideally, before they put the home on the market.

Show off the laundry space. Buyers will be impressed if the laundry room is fresh, inviting, and organized. Make sure light bulbs are working, and hide soaps in a cupboard or line them neatly on a shelf.

Focus their attention. Pick a focal point for each room. For example, the focal point of a bedroom is usually the bed, and for a music room, it’s the piano. If a room is mostly empty, you can help draw attention to a corner with a plant or mirror.

But there’s much more. Tracey gives expert advice on:

• Floors
• Lighting
• Painting

Here’s the full article. If you are all ready, fill out our form where we sell New Hampshire or Maine real estate.

It’s hard to believe. Especially since there were no automobiles here 150 years ago. According to AAA in their Northern New England Journey quarterly magazine, the original road opened on August 8th, 1861. And, ”Freelan O. Stanley and his wife, Flora, made the first motorized ascent of Mount Washington on August 30, 1899, in his Stanley Locomobile.”

We thought there was something strange about it being called the “auto” road way back when. It was originally called the Mount Washington Carriage Road. For more information about the “auto road” and the 150 year anniversary, visit mtwashingtonautoroad.com.

Both New Hampshire Homes and Maine Homes are forecast to rise in value during 2011 according to HousingPredictor.com. Maine is expected to do slightly better. HousingPredictor.com wrote: “Healthy employment, fewer foreclosures and distressed properties are producing a better housing market in Maine as the state recovers from the real estate crash and financial crisis. Maine ranks in the five lowest states in terms of foreclosed properties.” In fact, they predict Portland, ME to be the top market in the country this year.

New Hampshire will fare well also according to HousingPredictor.com: “Stoked by better employment than in most other areas of the country and record international exports, the New Hampshire economy is eyeing the New Year with an optimism not seen in many areas of the U.S. That’s not to say the state is out of the woods yet in the financial crisis, but it’s driving a recovery in housing markets.”

All in all, it looks like the White Mountains and Western Maine will see a turnaround this year if HousingPredictor.com is on the money.

AARP magazine has just published an article, Vacation Like a Vanderbuilt, America’s most lavish vintage resorts can be surprisingly affordable, by Bill Newcott. They make mention of a recent $60 million expansion and renovation. AARP has rooms listed as available for $199 per night. Among guests, 3 presidents have visited the hotel. The A-list of guests, according to AARP include Babe Ruth, Winston Churchill, and Princess Margaret. The Omni Mount Washington Resort is listed 4th in the series of affordable, lavish hotels.

If you’re looking for a luxury mountain home to buy in the Mount Washington Valley, here’s the perfect place to stay and set the tone.

It’s not surprising New Hampshire won the top spot for retirees to live. New Hampshire has a fantastic climate, low crime rate and has been a vacation destination for families from all over the Northeast.  AARP and money-rates.com rated the top states to retire based on Economics, Climate, Crime Rate, and Life Expectancy.

New Hampshire has low tax rates. There’s no employment tax, and sales taxes are related to dining and lodging. In our area of the White Mountains, check our list of Mount Washington Valley property taxes by town to determine what it would cost to live in a private residence.

If you love the 4 seasons, they’re spectacular here in the White Mountains. Many people work throughout the northeast and vacation in the White Mountains with the hopes of either moving or retiring here someday. It’s definitely an enviable location and environment with clear air, clean lakes and rivers, and the type of scenery they makes you feel alive.

In most of these towns, the crime rate is extremely low. Some towns don’t even have a local police station, relying on neighboring towns and county sheriffs instead.

And life expectancy? We live forever up here. Must be something in the relaxed pace, the mountain air, and the beauty we find throughout the entire area. Yes, it’s a fantastic place to retire. Retirees would be wise to invest their money in New Hampshire real estate.

Legislative Update

Business Roundtable Submits Recommendations to Help Revive the Housing Market

Richard A. Smith, president and CEO of Realogy, is the chair of the Business Roundtable’s Housing Working Group, which recently submitted the following recommendations to the White House and Congress to stimulate the U.S. housing market:

➢    Keep mortgage interest rates at historically low levels (below 5%) for at least one year;
➢    Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10% of the purchase price of the home or $8,000 to a higher limit of either 10% or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
➢    Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
➢    Make permanent the current temporary conforming loan limits; and
➢    Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

Housing Industry Associations Endorse Business Roundtable Proposal

“The National Association of Realtors® (NAR) and our 1.2 million members applaud the Business Roundtable for its sound policy recommendations put forth to reinvigorate our nation’s housing market. The proposal they announced today is consistent with the recommendations NAR has advocated and reflects the critical need to continue efforts to bring stability to the housing market.”

– Charles McMillan, president, National Association of Realtors®, “Realtors® Join Business Roundtable in Calling for Renewed Focus on Housing Stabilization,” Yahoo Finance, June 10, 2009.

“The National Association of Home Builders (NAHB) supports the Business Roundtable’s efforts to promote policies that will stimulate housing demand. NAHB looks forward to working with all interested parties in the business community, on Capitol Hill and in the Obama Administration to foster new ideas and policies that will help to get housing and the economy back on track, particularly at a time when the recovery is facing a number of significant challenges.”

– Joe Robson, NAHB chairman, “Statement from NAHB Chairman Joe Robson on Enhancing the Home Buyer Tax Credit,” Yahoo Finance, June 11, 2009.

“Stimulating the housing market is one of the best ways Congress can help accelerate the recovery of our national economy.  Offering $15,000 to potential homebuyers is a powerful incentive that I believe will jumpstart the housing market. The current $8,000 credit for first-time buyers has had a positive effect on the housing market this year. Increasing the amount and expanding the benefit to include all homebuyers will have an even larger impact in spurring the housing market and stabilizing the economy.”

– David G. Kittle, CMB, Chairman of the Mortgage Bankers Association, “MBA Supports Proposal for $15,000 Tax Credit for All Home Buyers,” RISMedia, June 12, 2009.

Bill to Increase Homebuyer Tax Credit Introduced to Senate

Drawing on more than three decades of experience in the real estate industry, U.S. Senator Johnny Isakson, (R-Ga.), introduced legislation to invigorate housing demand and to boost the economy by expanding the first-time homebuyer tax credit passed by Congress earlier this year.  Specifically, Isakson’s legislation would:

➢    Increase the maximum amount of the credit from $8,000 to $15,000 and expand the current tax credit so that it applies to any buyer of any home, not just first-time buyers

➢    Eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit so that there is no income limit for eligibility

➢    Extend the tax credit for one year from date of enactment and would still allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010.

– “Isakson Continues Push to Stimulate Housing Market,” The Daily Citizen (Ga.), June 10, 2009.

Bill to Spur Home Sales Introduced to House of Representatives

Saying that it was critical to spur home sales because of their impact on our nation’s economy, U.S. Rep. Howard Coble (R-NC) announced that he has introduced legislation to:

➢    Extend the [homebuyer] tax credit through January 1, 2011 (currently, the credit only applies to purchases made between April 8, 2008 and December 1, 2009)

➢    Repeal of the limitation based on modified gross income (currently, the credit would “phase out” for singles making more than $75,000 and couples making more than $150,000); income limitations aren’t necessary if the credit is capped at $8,000

➢    Extend waiver of the recapture provision.  Under current law, the tax credit for purchases made in 2009 does not have to be paid back unless the homeowner sells or ceases to use the property as a principal residence within 36 months of purchase.  Extending this waiver ensures that the credit isn’t treated as an interest-free loan, but still requires responsible homeownership

– “Coble Introduces Bill to Spur Home Sales,” The Daily Citizen (Ga.), June 10, 2009.

Chief Economist at Moody’s Economy.com: “Expand the Housing Tax Credit”

“Based on simulations of the Moody’s Economy.com macro model, the expanded tax credit, if extended through the end of 2010, would increase 2010 sales by almost 600,000. This in turn would generate $33 billion in additional real GDP, lifting growth in 2010 by about 25 basis points. That would translate into $56,000 in real GDP generated for each additional home sale. Benefits would flow to a range of hard-pressed industries, including mortgage lenders, real estate firms, insurance companies, property maintenance and repair businesses, and building supply retailers.”

– Mark Zandi, chief economist, Moody’s Economy.com, “Expand the Housing Tax Credit,” Moody’s Economy.com, June 16, 2009.

Tips for First-Time Home Buyers in North Conway NH

Like any other life changing experience, buying a home for the first time can seem like an incredible challenge. However, once first-time homebuyers are able to organize their priorities, conduct some useful research and interact with a trusted North Conway NH real estate agent, confusion can quickly turn into excitement. Keeping in mind some of the basic tips outlined below can help pave the way to a successful first-time home buying experience.

Prior to researching the Mt. Washington Valley real estate market and hunting for mortgages, you will need to analyze your family’s goals and priorities. Take some time to reflect and determine if it is the right time to purchase your first home. You may also want to ask yourself where you want to be in the next few years and consider how purchasing a home for the first time fits into your family’s long-term goals.

Once you determine you are ready to purchase your first home, you may want to research the details of the home buying process. Though you may not understand everything you read, any insight you gain will help you avoid unwanted headaches further along in the process.

The next important step in the home buying process may seem obvious but is often overlooked during the excitement of purchasing a first home. Very simply, as a first-time home buyer, you need to determine what you can afford. Too often, first-time home buyers underestimate or simply miscalculate the costs of owning a home. Before searching for your first home, ask yourself if your income is both adequate and reliable enough to afford mortgage payments.

There are also upfront costs to consider when buying a home. Though the amount required to cover a down payment and possible closing costs will vary, there are usually some out of pocket expenses to incur when closing on your first home. Being prepared for these expenses, as well as any unexpected costs that occur after you have moved in will help your transition into home ownership.

After determining what your family can comfortably afford, you should start shopping around – for both homes and mortgages. By this time, you should have a good idea of what types of amenities you are looking for in a first home and what neighborhoods best match your family’s needs. As your search advances, you may want to attend some open houses in your neighborhoods of interest. Even if you don’t find the perfect home right away, being active in the market will give you a better chance of finding the best fit for your family.

While looking at homes, you may also want to see what types of mortgages are available to your family. If you are able to determine what rates you qualify for and estimate your mortgage payment before actively bidding on a home, you can narrow down your price range and make a confident offer when the time comes.

Though following the previous steps can help a first-time home buyer find the right home, buyers never need to go it alone. After conducting your own research, it is a good idea to find an agent you can trust. Besides being able to assist you when searching for the right home, a reliable real estate agent can help guide you through the home buying process.

If you are patient with the home buying process and do your homework before purchasing your first home, your diligence will most likely lead you to the perfect home for your family.