Consumer News And Recalls

BOSTON (WBZ) ― WBZ's David Wade and Paula Ebben hosted a web chat Thursday on the current real estate and mortgage market. They were joined by Professor Alan Clayton Matthews from the University of Massachusetts-Boston. Matthews is an economist with regional expertise; Amy Slotnick, Director of Strategic Development for Fairway New England Mortgage. Amy has more that 25 years of experience in the Massachusetts real estate market and is a Certified Mortgage Planning Specialist; and Gary Rogers, President-elect of the Massachusetts Assocation of Realtors. Gary is a Re/Max agent in Waltham.


Laurie -  I am a newly engaged female in my early 20s and my fiance and I are looking to buy our first home together. I recently got approved for a soft second morgage. I'm not sure I completely understand what that is. I was told that I would get two mortgages and the second one would have a lower rate... Do you have any insight for me on this matter?

Paula_Ebben - Amy Slotnick says: Your pre-approval should be for the total amount of financing you may require. If you have less than 20% down payment, a lender will often suggest a first and second mortgage in order to avoid private mortgage insurance. Most second mortgage products carry a higher rate of interest than the first, and in today's interest rate enviroment, you may be better off considering a loan with private mortgage insurance. If the second mortgage rate is lower than the first, it is typically a home 

Julie - We have been considering a move to a nearby town with a better school system... but now we are afraid of how long it may take to sell our current home. Are contingencies back in play in the local real estate market?
 
David_Wade - Great question Julie- I have Gary Rogers here. He is the President Elect for the MA Assoc. of Realtors. He says the average market time right now is about 100 days on the market. However, we are seeing homes that are priced properly can sell in 2-5 weeks. As for contingencies... some buyers are tolerable to the "subject to the buyer finding suitable housing" contingency. Especially if they are a "tenant at will" and have some flexibility in their current housing. Also- if they think the home is a go 

David_Wade - Also Julie-----  Concurrently, as your home is being marketed, you should try to find a few homes that would be acceptable to you in the town that you are looking at. That way, when you do get an offer on your home, you'll be ready to make a move on the home of your choice. Good luck! 

HomeSeller - Do you see the market turning around anytime soon for sellers? 

Paula_Ebben - This is from Alan Clayton-Matthews: Don't hold your breath, maybe in the second half of this year prices will firm and start to rise. But if you're thinking about waiting to sell a house, I wouldn't suggest trying to time the market...there are too many other reasons other than a few percent in price to consider. I've been burned myself trying to time the market! 

David_Wade ANS Gary Rogers from the MA Assoc. of Realtors says the most important thing is curb appeal. Prosepective buyers make a decision in less than 10 seconds of whether or not to make an appointment to see the inside. Lanscaping goes a long way as does a nice paint job. Secondly, stripping wallpaper and using up-to-date paint colors is very important. Even homes with dated kitchens and baths show much better with fresh paint. 

joeich - A home in my neighborhood is going up for foreclosure sale. Will that affect the value of my home? 

Paula_Ebben - Gary Rogers says: Yes. One of the most important things is if the home is kept up in good manner. One of the big problems right now in Boston is a concern abut foreclosed home becoming a blight on the neighborhood. It's not necessarily an automatic decline in values, if the neighborhood is desirable in general it should sell quickly. 

Brad - so, are folks surprised that downtown Boston home prices actually appreciated (by 6%) in 2007...a different story than you hear/read in the popular press. 

Paula_Ebben - Gary Rogers: It shows that real estate is very local. Boston is still a city that attracts a lot of highly paid people, some of whom are taking advantage of the lower prices for the first time in a long time. 

Rick - My mortgage is upside down, and I got a 30% pay cut -- at 7.75% interest, is there any way to reduce my monthy payment? I doubt I'd qualify because of the pay cut. 

David_Wade - Hello Rick. I have Amy Slotnick here from Fairway NE Mortgage. She says besides the cut in your income, the biggest obstacle for you right now would be a lack of equity in the property. She would suggest that you call your current lender and ask them to assist you. If all of your mortgage payments have been on time, perhaps they would consider modify your existing loan. Otherwise- notify the mortgage company that you have had a decrease in your income and you may have some difficulty to stay current th 

Carley33 - Why buying a Foreclosure during an auction, do they allow to do a home inspection? 

Paula_Ebben - From Gary Rogers: for the most part, inspections are allowed. If you see a property at an auction, they allow people to walk through the property and do a visual inspection before the bidding starts. It's a good idea to bring either a home inspector or somebody very knowledgable such as a general contractor with you to take the time to check it out before you bid. 

donfromboston - ... i want to buy in a new condo development, but it's only 30% sold; will i be able to get a loan at a good rate? and what if the developer never sells the rest!? 

Paula_Ebben - Hello Don. Amy Slotnick from Fairway NE Mortgage says recent changes to the underwriting guidelines for condos will make it difficult to get a conventional Fannie Mae fixed rate loan if the association is only 30% sold. But, there are many adjustable loans that do not follow Fannie Mae guidelines and are priced competitively with no negative amortization. 

Bob - Because prices are down, is this a good time to think about buying a second home? 

Paula_Ebben - Alan says: Sure, if you want it and you can afford it, it's not worth waiting to try to time the market. You might only save a few percent by waiting, but then again you might not. So if you've seen a property you want and you're ready for - go for it... 

Ladymitzi - How much in $ have houses fallen?.... north of Boston, about two years house was assessed at 395,000.00 it is probably less than that now..... by how much do u think? 

David_Wade - Ladymitzi, there are so many variables involved. You'd really need to have the home reassessed. Median home prices fell about 10-percent over the past year if that helps. 

Rick - Okay, thanks. The Mort. Co. stopped selling new mortgages, so I don't think they'd be interested in helping. 

David_Wade - Amy says it's still worth making the phone call because they are still servicing your mortgage and they don't want it to become deliquent. 

joeich - I know a lot of buyers do research about homes themselves, like on Zillow.com for example. That site has my home listed completely wrong on # of rooms and square footage. Do you know if there is anyway to correct this... It under values my home based on bad data. 

Paula_Ebben - from Gary: Sites like Zillow gather data on property from mnay sources. Because of this, data tends to be somewhat questionable. Sometimes a house will have an addition put on which will add to the square footage, but this additional space is not added on to the public record in some instances. 

joeich - Is there really such a thing as a no closing cost mortgage, if I wanted to re-finance. Truly NO cost? 

David_Wade - Amy Slotnick from Fairway NE Mortgage says on a "no closing cost" loan the costs are just absorbed in the rate. For instance, instead of getting a 6% rate with costs... you might get 6.25%. 

Steph - How do you find home stagers that are legit? 

Paula_Ebben - Gary: the best advice is to contact your realtor. They have a lot of experience with stagers, both good and bad, and can ususally make a great recommendation. 

David_Wade - Good point Brad. My number was for the entire state. Obviously stats change from town to town, city to city. 

Brad - David_Wade....try to put some fences around your comments of "median home prices fell". Prices in downtown Boston did not fall last year. 

Ladymitzi - Thank you very much, yes that helps... 

grace - Our house has been on the market over 6 months; several price breaks, yet hasn;t sold (low $600's). We refinished floors, walls, and woodwork -- but did not udate tiled 70's bathroom or c 

Paula_Ebben - From Gary: In the last year, there have been two battles going on: one is a price war, the other is a beauty contest. You need to win both to sell your home. What probably is happening is that your home was initially over-priced and now you've been chasing the market down to its current level. I would speak to your realtor and have a frank conversation about investing in some modest upgrades and re-pricing your home. 

ladydi - Do You have any idea when sales and home values might be taking an upward turn?? 

David_Wade - Hello. I have Professor Alan Clayton-Matthews here from UMass-Boston. He says prices may stop falling by the end of the year. But, don't expect them to start rebounding fast. The appreciation rates will probably be no more than a few percent every year for several years. He says the housing slump of the early 90's lasted eight years. And the one in the mid 1900's lasted 25 years! 

joeich - Are there any particular price categories of homes that are selling really well right now? Really poorly? 

Paula_Ebben - Gary: There are price categories in every community that are selling better than others. This can change within a few weeks depending on inventory levels. I would evaluate your competition continuously and make sure that you're priced below your competition. 

Dmatt - Hi there - I've got a question about real estate for you Gary; looks like this could be a great time to buy a vacation property on the Cape...Your thoughts? 

David_Wade - Hello Dmatt. Professor Alan Clayton-Matthews of Umass-Boston says 'yes' if this is the right time for you to buy. If you are looking forward to some nice time on the beach it's probably not worht waiting until next year, because prices probably won't drop much lower and interest rates might be higher next year. Good Luck with the Sagamore traffic!! 

Taxman - I have received several bids on my home averaging $50,000 less than its assessed value. Should I get an appraisal for property tax relief? 

David_Wade - Taxman... it definitely may be worth a call to your assessors office. Why not? Everyone likes a little tax break. Especially someone with a name like Taxman. 

Fancy - Different realtors are all over the place with pricing of the home I am trying to sell. I want to price to sell but also make the most money possible. 

Paula_Ebben - Gary says: This is one of the problems in trying to get a gauge on the market. Pricing a home is basically an estimate of value and can vary depending on the experience level of the realtor. I would ask each realtor to give their best estimate on what they feel the home will sell for, and price on the bottom end of that estimate range. This will always generate more interest than if you price it too high. Pricing conservatively tends to attract the most motivated buyers. 

Bob - I'm interested in getting a home equity loan.. is this a good or bad time? How are rates trending? 

David_Wade - Hello Bob- Amy Slotnick of Fairway NE Mortgage says home equity lines are the only mortgage product that truly reflect what the Fed is doing with rate cuts. Home quity lines are tied to the prime rate which is currently 6%. That's down 2.25% from September. As more Fed cuts are expected, these rates may go even lower. However, be aware these rates are subject to change and can go up just as fast. 

Bob - Has this become a good time to look at renting instead of buying? 

Paula_Ebben - Gary says that as long as you make a smart purchase, it's always better to own instead of renting. The mortage interest deduction alone will save you thousands on your taxes. Waiting until prices are on the rise again is an invitation to mutliple offer situations where you may be paying higher than you normally would have for your future home. Not to mention interest rates, if the interest rates go up 1 or 2% before you buy you may be pricing yourself out of owning a home. 

grace - Are selling agent bonus incentives effective (in standing out from the crowd of avail. listings)? 

David_Wade - Grace, this is David. I was talking to a Realtor the other day who told me it's good to use your money to perhaps buy down a point on the mortgage for a prospective buyer. Buyers love anything that lowers their costs. She also said offering a $1000 bonus to buyer's agents who get someone to buy your home can be effective. However, paying down points or helping with closing costs would probably be much more effective. Please the buyer... not the agent. 

Chucktownlady - When will the new limits for loans that PRES BUsh approved go into effect? 

Paula_Ebben - Amy Slotick jumped to answer your question: HUD has been given thirty days from the signing of the economic stimulus package to publish median home prices throughout the country. Once this is done, and it should be the first week in March, the new loan limits will be 125% of the median price published by HUD. For instance, if the median price of homes in Boston is $416,000, then the new conforming loan limit in Boston will be $520,000. It is not yet clear whether the list will be county by county or town 

maria - I own a home on the cape ,i need to sell and move on , what should i do? 

David_Wade - We seem to be getting a lot of questions about the Cape. So here are a few nuggets about what's happening with real estate on the other side of the Sagamore. Gary Rogers, Pres-elect of the MA Realtors says just like any market, proper pricing and preparing your home for sale are key on the Cape. Home insurance is becoming more expensive on the Cape as many of you probably know because of perceived climate changes. Homes ARE selling on the Cape, the key is to get some professional advice on makingyour ho 

pam - do you see rates coming back down in the 5's 

Paula_Ebben - Unfortunately, Amy says your question is virtually impossible to answer. Every day the economic news differs, some days pointing towards inflation which will drive rates up, and others pointing towards recession which will drive rates down. The only thing I can say for sure is that we are in an incredibly volatile interest rate environment! 

Taxman - In this depressed market, what percentage of assessed value would be deemed reasonable for selling purposes 

David_Wade - Taxman. Gary Rogers of the MA Realtors says the answer is "none". Assessed values within the same neighborhood can be different on two nearly identical homes. Each towns assesment practices can be very different. Some go by market value at the time of purchase which could have been years ago. WHEN a home was assessed matters greatly as it doesn't track the market that closely. 

maria - thank you...i have done a lot to my home already.. where should i look for a real estste person 

David_Wade - Ask friends, family or neighbors who they've had good experiences with. Nothing beats a really great reference from a trusted source. You can then interview several to see who you fell comfortable with and who seems to make the most sense. It's not necessarily the agent that gives you the highest selling price. 

Taxman - What is a PIM 

David_Wade - Do you mean PMI? 

HomeBuyer - As a prospective home buyer, how much leeway can I expect when making an offer? Generally speaking, how far under list price can I go? 

Paula_Ebben - Gary says if the house is priced fairly and your buyer agent feels it's a good value, it may be worth offering close to asking. If you feel it's grossly over-priced for the neighborhood, make an offer that you feel is reasonable, and if they don't accept it, you won't feel badly in not getting the house. 

HomeBuyer - If I'm looking to buy... if I wait, might prices come down even more? 

David_Wade - Prof. Alan Clayton-Matthews of Umass-Boston says they may fall even further, but probably not by much. And you might have many other more important issues that will determine when you should buy. In other words, if you are a renter with an expiring lease, now might be a great time. However, if you have another six months on your lease, then waiting might be ok. Market timing should only be one factor in deciding when to buy, and a risky one at that. 

maria - Thank you for your time...David...hAVE A GREAT DAY...ALL THE WAY FROM CAPE COD...PLEASE KEEP THE SNOW AMOUT'S LOW.....:o) 

David_Wade - I'll talk to the meteorologist and ask him to give the Cape mainly rain. 

Taxman - PMI yes 

Paula_Ebben - From Amy: PMI stands for Private Mortgage Insurance which is insurance which protects the lender in the case of a default. PMI is required on any loan with less than a 20% down-payment. Although it protects the lender, it is a fee paid for by the buyer on a monthly basis. A lender may suggest that you take a blended mortgage (first and second) in order to avoid the need for PMI. However, in this rate environment, second mortgage rates are quite high and it can actually be less expensive to pay private 

Denise - We have a first mortgage with a rate of 5.875 for 25 years and a second mortgage with a rate of 10.500 for 15 years. Should we try to refinnace and combine both mortgages into one payment 

Paula_Ebben - Amy says it really depends on the size of the loans and the blended rate. Call me, to analyze your situation I would have to be able to review the specifics of both loans. 781-719-4670 or amy@amyslotnick.com. 

ivymom - In your opinion, should I wait to see where the market and economy are going before trying to sell? 

David_Wade - Ivymom... Prof. Alan Clayton-Matthews of Umass-Boston says there's no reason to wait. The market, according to most forecasters, is going to continue to fall a bit. And when it does flatten out, the rebound won't come quick. Any appreciation gains are going to be modest after that. Remember, if you are moving within the same market, the house you will be buying will also be affected by the same forces. 

grace - laminate coutertops (because we did spend on speculation), --- Do you think this could be the offer-stopper? ...and what is your opinion about cost effectiveness of renovations? Thank you so much. 

David_Wade - Hello Grace. We have a report coming up at 5pm tonight on the cost effectiveness of renovations. Some are more beneficial than others. I can tell you, I was in a home with a Realtor the other day for a story and her home had laminate countertops and it sold in a few days time. The price was the big factor... not the counters. 

Carmie - If an older couple is thinking of selling an older 2 family home could they still get a fair selling price even in today's market? 

Paula_Ebben - Gary says define fair selling price, While prices have declined somewhat, I'd be willing to bet that you've enjoyed healthy appreciation over the years on average. Multi-family homes are popular with first time buyers as they always have been. There are lots of first time buyers out there waiting for the right house. 

Michelle - Do you recommend open houses? 

Paula_Ebben - Gary says YES! Anything that gets prospective buyers in to a property is good. Many realtors know that the chances of it's selling at an open house statistically are minimal, there are some success stories. 

paula - were can I find free information on foreclosures and will i get a better deal than buying direct from a agent? 

David_Wade - Paula that's a great question. Buying a foreclosure has its own set of issues and obstacles. Amy Slotnick of Fairway NE Mortgage says you need to be ready with cash in hand, you need to be ready to close quickly and usually without ever seeing the inside. As far as free information, there are always Public Notices in the local papers, however internet sites that track these foreclosures do charge a fee. 

Paula_Ebben -Thanks for being with us today - and thanks to our experts for all of the terrific information. Hope you enjoyed it! 

David_Wade - We thank you all for your questions. If you would like more info on mortgages you can contact Amy Slotnick at amy@amyslotnick.com. Hopefully, you will stay tuned for our daily reports on this important topic. Thanks again and good luck!! David Wade 

Taxman - it was informative thnx

Laurie -  I am a newly engaged female in my early 20s and my fiance and I are looking to buy our first home together. I recently got approved for a soft second morgage. I'm not sure I completely understand what that is. I was told that I would get two mortgages and the second one would have a lower rate... Do you have any insight for me on this matter? Paula_Ebben - Amy Slotnick says: Your pre-approval should be for the total amount of financing you may require. If you have less than 20% down payment, a lender will often suggest a first and second mortgage in order to avoid private mortgage insurance. Most second mortgage products carry a higher rate of interest than the first, and in today's interest rate enviroment, you may be better off considering a loan with private mortgage insurance. If the second mortgage rate is lower than the first, it is typically a home Julie - We have been considering a move to a nearby town with a better school system... but now we are afraid of how long it may take to sell our current home. Are contingencies back in play in the local real estate market? David_Wade - Great question Julie- I have Gary Rogers here. He is the President Elect for the MA Assoc. of Realtors. He says the average market time right now is about 100 days on the market. However, we are seeing homes that are priced properly can sell in 2-5 weeks. As for contingencies... some buyers are tolerable to the "subject to the buyer finding suitable housing" contingency. Especially if they are a "tenant at will" and have some flexibility in their current housing. Also- if they think the home is a go David_Wade - Also Julie-----  Concurrently, as your home is being marketed, you should try to find a few homes that would be acceptable to you in the town that you are looking at. That way, when you do get an offer on your home, you'll be ready to make a move on the home of your choice. Good luck! HomeSeller - Do you see the market turning around anytime soon for sellers? Paula_Ebben - This is from Alan Clayton-Matthews: Don't hold your breath, maybe in the second half of this year prices will firm and start to rise. But if you're thinking about waiting to sell a house, I wouldn't suggest trying to time the market...there are too many other reasons other than a few percent in price to consider. I've been burned myself trying to time the market! David_Wade ANS Gary Rogers from the MA Assoc. of Realtors says the most important thing is curb appeal. Prosepective buyers make a decision in less than 10 seconds of whether or not to make an appointment to see the inside. Lanscaping goes a long way as does a nice paint job. Secondly, stripping wallpaper and using up-to-date paint colors is very important. Even homes with dated kitchens and baths show much better with fresh paint. joeich - A home in my neighborhood is going up for foreclosure sale. Will that affect the value of my home? Paula_Ebben - Gary Rogers says: Yes. One of the most important things is if the home is kept up in good manner. One of the big problems right now in Boston is a concern abut foreclosed home becoming a blight on the neighborhood. It's not necessarily an automatic decline in values, if the neighborhood is desirable in general it should sell quickly. Brad - so, are folks surprised that downtown Boston home prices actually appreciated (by 6%) in 2007...a different story than you hear/read in the popular press. Paula_Ebben - Gary Rogers: It shows that real estate is very local. Boston is still a city that attracts a lot of highly paid people, some of whom are taking advantage of the lower prices for the first time in a long time. Rick - My mortgage is upside down, and I got a 30% pay cut -- at 7.75% interest, is there any way to reduce my monthy payment? I doubt I'd qualify because of the pay cut. David_Wade - Hello Rick. I have Amy Slotnick here from Fairway NE Mortgage. She says besides the cut in your income, the biggest obstacle for you right now would be a lack of equity in the property. She would suggest that you call your current lender and ask them to assist you. If all of your mortgage payments have been on time, perhaps they would consider modify your existing loan. Otherwise- notify the mortgage company that you have had a decrease in your income and you may have some difficulty to stay current th Carley33 - Why buying a Foreclosure during an auction, do they allow to do a home inspection? Paula_Ebben - From Gary Rogers: for the most part, inspections are allowed. If you see a property at an auction, they allow people to walk through the property and do a visual inspection before the bidding starts. It's a good idea to bring either a home inspector or somebody very knowledgable such as a general contractor with you to take the time to check it out before you bid. donfromboston - ... i want to buy in a new condo development, but it's only 30% sold; will i be able to get a loan at a good rate? and what if the developer never sells the rest!? Paula_Ebben - Hello Don. Amy Slotnick from Fairway NE Mortgage says recent changes to the underwriting guidelines for condos will make it difficult to get a conventional Fannie Mae fixed rate loan if the association is only 30% sold. But, there are many adjustable loans that do not follow Fannie Mae guidelines and are priced competitively with no negative amortization. Bob - Because prices are down, is this a good time to think about buying a second home? Paula_Ebben - Alan says: Sure, if you want it and you can afford it, it's not worth waiting to try to time the market. You might only save a few percent by waiting, but then again you might not. So if you've seen a property you want and you're ready for - go for it... Ladymitzi - How much in $ have houses fallen?.... north of Boston, about two years house was assessed at 395,000.00 it is probably less than that now..... by how much do u think? David_Wade - Ladymitzi, there are so many variables involved. You'd really need to have the home reassessed. Median home prices fell about 10-percent over the past year if that helps. Rick - Okay, thanks. The Mort. Co. stopped selling new mortgages, so I don't think they'd be interested in helping. David_Wade - Amy says it's still worth making the phone call because they are still servicing your mortgage and they don't want it to become deliquent. joeich - I know a lot of buyers do research about homes themselves, like on Zillow.com for example. That site has my home listed completely wrong on # of rooms and square footage. Do you know if there is anyway to correct this... It under values my home based on bad data. Paula_Ebben - from Gary: Sites like Zillow gather data on property from mnay sources. Because of this, data tends to be somewhat questionable. Sometimes a house will have an addition put on which will add to the square footage, but this additional space is not added on to the public record in some instances. joeich - Is there really such a thing as a no closing cost mortgage, if I wanted to re-finance. Truly NO cost? David_Wade - Amy Slotnick from Fairway NE Mortgage says on a "no closing cost" loan the costs are just absorbed in the rate. For instance, instead of getting a 6% rate with costs... you might get 6.25%. Steph - How do you find home stagers that are legit? Paula_Ebben - Gary: the best advice is to contact your realtor. They have a lot of experience with stagers, both good and bad, and can ususally make a great recommendation. David_Wade - Good point Brad. My number was for the entire state. Obviously stats change from town to town, city to city. Brad - David_Wade....try to put some fences around your comments of "median home prices fell". Prices in downtown Boston did not fall last year. Ladymitzi - Thank you very much, yes that helps... grace - Our house has been on the market over 6 months; several price breaks, yet hasn;t sold (low $600's). We refinished floors, walls, and woodwork -- but did not udate tiled 70's bathroom or c Paula_Ebben - From Gary: In the last year, there have been two battles going on: one is a price war, the other is a beauty contest. You need to win both to sell your home. What probably is happening is that your home was initially over-priced and now you've been chasing the market down to its current level. I would speak to your realtor and have a frank conversation about investing in some modest upgrades and re-pricing your home. ladydi - Do You have any idea when sales and home values might be taking an upward turn?? David_Wade - Hello. I have Professor Alan Clayton-Matthews here from UMass-Boston. He says prices may stop falling by the end of the year. But, don't expect them to start rebounding fast. The appreciation rates will probably be no more than a few percent every year for several years. He says the housing slump of the early 90's lasted eight years. And the one in the mid 1900's lasted 25 years! joeich - Are there any particular price categories of homes that are selling really well right now? Really poorly? Paula_Ebben - Gary: There are price categories in every community that are selling better than others. This can change within a few weeks depending on inventory levels. I would evaluate your competition continuously and make sure that you're priced below your competition. Dmatt - Hi there - I've got a question about real estate for you Gary; looks like this could be a great time to buy a vacation property on the Cape...Your thoughts? David_Wade - Hello Dmatt. Professor Alan Clayton-Matthews of Umass-Boston says 'yes' if this is the right time for you to buy. If you are looking forward to some nice time on the beach it's probably not worht waiting until next year, because prices probably won't drop much lower and interest rates might be higher next year. Good Luck with the Sagamore traffic!! Taxman - I have received several bids on my home averaging $50,000 less than its assessed value. Should I get an appraisal for property tax relief? David_Wade - Taxman... it definitely may be worth a call to your assessors office. Why not? Everyone likes a little tax break. Especially someone with a name like Taxman. Fancy - Different realtors are all over the place with pricing of the home I am trying to sell. I want to price to sell but also make the most money possible. Paula_Ebben - Gary says: This is one of the problems in trying to get a gauge on the market. Pricing a home is basically an estimate of value and can vary depending on the experience level of the realtor. I would ask each realtor to give their best estimate on what they feel the home will sell for, and price on the bottom end of that estimate range. This will always generate more interest than if you price it too high. Pricing conservatively tends to attract the most motivated buyers. Bob - I'm interested in getting a home equity loan.. is this a good or bad time? How are rates trending? David_Wade - Hello Bob- Amy Slotnick of Fairway NE Mortgage says home equity lines are the only mortgage product that truly reflect what the Fed is doing with rate cuts. Home quity lines are tied to the prime rate which is currently 6%. That's down 2.25% from September. As more Fed cuts are expected, these rates may go even lower. However, be aware these rates are subject to change and can go up just as fast. Bob - Has this become a good time to look at renting instead of buying? Paula_Ebben - Gary says that as long as you make a smart purchase, it's always better to own instead of renting. The mortage interest deduction alone will save you thousands on your taxes. Waiting until prices are on the rise again is an invitation to mutliple offer situations where you may be paying higher than you normally would have for your future home. Not to mention interest rates, if the interest rates go up 1 or 2% before you buy you may be pricing yourself out of owning a home. grace - Are selling agent bonus incentives effective (in standing out from the crowd of avail. listings)? David_Wade - Grace, this is David. I was talking to a Realtor the other day who told me it's good to use your money to perhaps buy down a point on the mortgage for a prospective buyer. Buyers love anything that lowers their costs. She also said offering a $1000 bonus to buyer's agents who get someone to buy your home can be effective. However, paying down points or helping with closing costs would probably be much more effective. Please the buyer... not the agent. Chucktownlady - When will the new limits for loans that PRES BUsh approved go into effect? Paula_Ebben - Amy Slotick jumped to answer your question: HUD has been given thirty days from the signing of the economic stimulus package to publish median home prices throughout the country. Once this is done, and it should be the first week in March, the new loan limits will be 125% of the median price published by HUD. For instance, if the median price of homes in Boston is $416,000, then the new conforming loan limit in Boston will be $520,000. It is not yet clear whether the list will be county by county or town maria - I own a home on the cape ,i need to sell and move on , what should i do? David_Wade - We seem to be getting a lot of questions about the Cape. So here are a few nuggets about what's happening with real estate on the other side of the Sagamore. Gary Rogers, Pres-elect of the MA Realtors says just like any market, proper pricing and preparing your home for sale are key on the Cape. Home insurance is becoming more expensive on the Cape as many of you probably know because of perceived climate changes. Homes ARE selling on the Cape, the key is to get some professional advice on makingyour ho pam - do you see rates coming back down in the 5's Paula_Ebben - Unfortunately, Amy says your question is virtually impossible to answer. Every day the economic news differs, some days pointing towards inflation which will drive rates up, and others pointing towards recession which will drive rates down. The only thing I can say for sure is that we are in an incredibly volatile interest rate environment! Taxman - In this depressed market, what percentage of assessed value would be deemed reasonable for selling purposes David_Wade - Taxman. Gary Rogers of the MA Realtors says the answer is "none". Assessed values within the same neighborhood can be different on two nearly identical homes. Each towns assesment practices can be very different. Some go by market value at the time of purchase which could have been years ago. WHEN a home was assessed matters greatly as it doesn't track the market that closely. maria - thank you...i have done a lot to my home already.. where should i look for a real estste person David_Wade - Ask friends, family or neighbors who they've had good experiences with. Nothing beats a really great reference from a trusted source. You can then interview several to see who you fell comfortable with and who seems to make the most sense. It's not necessarily the agent that gives you the highest selling price. Taxman - What is a PIM David_Wade - Do you mean PMI? HomeBuyer - As a prospective home buyer, how much leeway can I expect when making an offer? Generally speaking, how far under list price can I go? Paula_Ebben - Gary says if the house is priced fairly and your buyer agent feels it's a good value, it may be worth offering close to asking. If you feel it's grossly over-priced for the neighborhood, make an offer that you feel is reasonable, and if they don't accept it, you won't feel badly in not getting the house. HomeBuyer - If I'm looking to buy... if I wait, might prices come down even more? David_Wade - Prof. Alan Clayton-Matthews of Umass-Boston says they may fall even further, but probably not by much. And you might have many other more important issues that will determine when you should buy. In other words, if you are a renter with an expiring lease, now might be a great time. However, if you have another six months on your lease, then waiting might be ok. Market timing should only be one factor in deciding when to buy, and a risky one at that. maria - Thank you for your time...David...hAVE A GREAT DAY...ALL THE WAY FROM CAPE COD...PLEASE KEEP THE SNOW AMOUT'S LOW.....:o) David_Wade - I'll talk to the meteorologist and ask him to give the Cape mainly rain. Taxman - PMI yes Paula_Ebben - From Amy: PMI stands for Private Mortgage Insurance which is insurance which protects the lender in the case of a default. PMI is required on any loan with less than a 20% down-payment. Although it protects the lender, it is a fee paid for by the buyer on a monthly basis. A lender may suggest that you take a blended mortgage (first and second) in order to avoid the need for PMI. However, in this rate environment, second mortgage rates are quite high and it can actually be less expensive to pay private Denise - We have a first mortgage with a rate of 5.875 for 25 years and a second mortgage with a rate of 10.500 for 15 years. Should we try to refinnace and combine both mortgages into one payment Paula_Ebben - Amy says it really depends on the size of the loans and the blended rate. Call me, to analyze your situation I would have to be able to review the specifics of both loans. 781-719-4670 or amy@amyslotnick.com. ivymom - In your opinion, should I wait to see where the market and economy are going before trying to sell? David_Wade - Ivymom... Prof. Alan Clayton-Matthews of Umass-Boston says there's no reason to wait. The market, according to most forecasters, is going to continue to fall a bit. And when it does flatten out, the rebound won't come quick. Any appreciation gains are going to be modest after that. Remember, if you are moving within the same market, the house you will be buying will also be affected by the same forces. grace - laminate coutertops (because we did spend on speculation), --- Do you think this could be the offer-stopper? ...and what is your opinion about cost effectiveness of renovations? Thank you so much. David_Wade - Hello Grace. We have a report coming up at 5pm tonight on the cost effectiveness of renovations. Some are more beneficial than others. I can tell you, I was in a home with a Realtor the other day for a story and her home had laminate countertops and it sold in a few days time. The price was the big factor... not the counters. Carmie - If an older couple is thinking of selling an older 2 family home could they still get a fair selling price even in today's market? Paula_Ebben - Gary says define fair selling price, While prices have declined somewhat, I'd be willing to bet that you've enjoyed healthy appreciation over the years on average. Multi-family homes are popular with first time buyers as they always have been. There are lots of first time buyers out there waiting for the right house. Michelle - Do you recommend open houses? Paula_Ebben - Gary says YES! Anything that gets prospective buyers in to a property is good. Many realtors know that the chances of it's selling at an open house statistically are minimal, there are some success stories. paula - were can I find free information on foreclosures and will i get a better deal than buying direct from a agent? David_Wade - Paula that's a great question. Buying a foreclosure has its own set of issues and obstacles. Amy Slotnick of Fairway NE Mortgage says you need to be ready with cash in hand, you need to be ready to close quickly and usually without ever seeing the inside. As far as free information, there are always Public Notices in the local papers, however internet sites that track these foreclosures do charge a fee. Paula_Ebben -Thanks for being with us today - and thanks to our experts for all of the terrific information. Hope you enjoyed it! David_Wade - We thank you all for your questions. If you would like more info on mortgages you can contact Amy Slotnick at amy@amyslotnick.com. Hopefully, you will stay tuned for our daily reports on this important topic. Thanks again and good luck!! David Wade Taxman - it was informative thnx

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