Article 1 (Are you working with or at the best Real Estate Company?) Article 2 (June Roundup: Sales of New and Existing Homes Slide) Article 3 (Q & A with Michael Merrill) Article 4 (Short On A Down Payment? Try a Lease/Purchase Agreement)

Are you working with or at the best Real Estate Company? By David Friedberg The business of real estate is a serious one. For most buyers or sellers, their home is the most valuable asset they will own. To entrust one's home to an agent and company who are well trained, experienced and has traditional and cutting edge resources to widely expose their property to the marketplace is paramount. Naturally, if you are working in the business you should be working where these resources are not only available but are constantly re-evaluated and updated. Ads are not the best way to sell your home or attract the buyers who will eventually buy. In fact, only a small percentage of buyers come from ads, though most companies do spend large sums to advertise in buyers guides, local and regional newspapers and internet media. In addition, signs are not a very large percentage of how we attract buyers either. So, what is left? Direct mail? Open Houses? The Internet advertising? Actually, the bet ways include networking. Typically the agents in the marketplace are working with buyers and will search the Multiple Listing Service (a computer database) and learn about the properties for sale networking with the listing agents; they will preview homes in order not to waste the time of the buyer; they will search the internet, find out about properties that may be for sale by the owner directly and essentially scour the market for the right home for the buyer. When it comes to working for a seller, the obvious is to insure the widest exposure of the listing to potential buyers and agents working with buyers through excellent marketing and communication and with diligent follow-through. What does it take to be a good real estate sales agent? Knowledge of the marketplace- the property values and the trends within the marketplace- no longer can you tell a buyer or seller what you think without substantiating your claims. Good follow through- the worst thing that can happen is that you don't finish what you started or keep alive the "warm and fuzzy" feelings a buyer has for a property they saw with you. Good communication- with this you will ensure a clear understanding among all parties involved in the sale. Sensitivity to your customer or client's needs; in other words, an ability to listen and translate- we really do not want to sell anyone anything, we want a buyer to sell themselves after we have presented to them all the information they need to properly decide what step to take. Excellent tools to expose yourself and your listings to potential buyers and sellers- you must constantly look at the possible ways to "get the word out" about yourself and your abilities to do what it takes to help your seller or buyer make a move. Constant training and practice in all these areas is what makes one successful. So I ask you buyers and sellers to be as well as agents (current and future ones), are you working with or for the right company? It is up to you to be working with the right agent and company and for the agent to expose yourself to as many ways to better yourself to better serve your deserving customers or clients. Please call me if you have any questions. Best of Luck!

June Roundup: Sales of New and Existing Homes Slide By Jay McHugh of RE/Max Affiliates As expected, the torrid sales pace of new and existing homes is beginning to slack off a bit, but there is almost no doubt that 1999 will end up in the record books as one of the best years ever. The Commerce Department reports that sales of new homes dropped 5.1 percent in May to a seasonally adjusted annual rate of 888,000, slightly above the record 875,000 new homes sold last year. That sales pace is expected to continue to decline for the next few months. A slowdown also was noted in existing sales, with May showing a decline of 4.0 percent to 5.04 million units from a pace of 5.25 million units recorded in April. Both National Association of Realtors President Sharon Millett and Home Builders President Charlie Ruma said slips were expected. Said Millett, "May was the second month off of the record recorded in March. We expected sales to slide a bit, but the pace is still very high and we anticipate another strong year." Added Ruma, "This is still a very healthy sales rate. New home sales spiked in April, perhaps because people jumped into the market to try to beat increasing mortgage rates, so this decline wasn't unexpected." The national median existing-home sales price rose 3.3 percent in May to $133,100, compared to $128,900 recorded a year ago. Interest rates drifting higher... The Federal Reserve reports that interest rates are continuing to edge up, hovering around 7.65 percent by the end of June, nearly a full percentage point above the 6.74 percent level reached earlier this year. Housing leaders note that interest-sensitive housing sales have fallen in recent months, showing signs of an economic slowdown and reducing pressure for the Fed to raise interest rates to battle inflation. Nevertheless, National Association of Realtors economist Jim Smith foresees interest rates declining again toward the end of the year to 6.0 to 6.5 percent range. Immigration pushing housing demand... Harvard University's Joint Center for Housing Studies is out with its annual forecast of American housing, and is predicting 1.1 million new households will form every year for the next 10 years -- with nearly a quarter of them being formed by new immigrants. Sixty-five percent of the increase is expected to come from the movement of the population into ages where households are headed by older, single individuals. The remainder of growth will be generated by increased single headed households caused by divorce rates, declining marriage rates and low re-marriage rates. The study says baby boomers will drive homeownership rates and values up, and spend more on remodeling their properties. "Echo boomers," the children of baby boomers, are expected to account for more than 1 in 10 owner households by 2010. Many of the "echo boomers" will be immigrants or second generation Americans. Men at home... New York: A report by TIME Magazine shows that 59 percent of people with home offices are men, and most of them want to stay home to be close to their children. New York: A report by TIME Magazine shows that 59 percent of people with home offices are men, and most of them want to stay home to be close to their children. According to the study, among the benefits of being a stay-at-home dad are:     · Children with dads who work from home are twice as likely to get A's on their report cards.     · Work at home dads drink less, with 13 percent admitting to have eight drinks per week, compared to 32 percent of fathers in traditional offices.     · Half of work at home dads play baseball with their kids. Twenty-one percent of traditional working fathers say they prefer to watch video games with their children.     · 14 percent of home office dads claim to be within their target weight compared to 25 percent of fathers that work away from home who admit being overweight by 11 pounds or more.

Q & A With Michael W. Merrill of Merrill & McGeary, a real estate attorney. Q:   I am a Trustee in a Condominium. A unit owner requested the Trustees of the Condominium to allow him to use a portion of the common area hallway outside his unit. He actually wants to build a wall around the area and make it part of his unit. Due to the location of the area and its appearance the Trustees would like to grant the unit owner permission because we think it will improve the hallway. However, one unit owner said we cannot do this without her permission. What rights do we have in this situation? K.B., Boston, MA A:   The Trustees can grant the unit owner the exclusive right to use common area as long as a majority of the Trustees and the abutting unit owners consent. The Trustees do not need 100% of the unit owners to agree. However, it is not sufficient for this to occur as a result of a telephone call or a letter. The Trustees and the unit owner should follow the requirements of the Massachusetts Condominium Law (Chapter 183A) in order to validly authorize the use of the area by the unit owner. This includes recording at the Registry of Deeds a Master Deed Amendment signed by the appropriate parties and an easement plan describing the easement area. The Master Deed Amendment should set forth the terms of the agreement with the unit owner, the abutters and the Trustees including, for example, the construction of the wall, the length of the agreement, responsibility for the maintenance of the area and the cost and expense of document preparation and recording. This is a complicated matter which impacts common area and therefore I recommend the Trustees contact the Condominium's attorney before proceeding any further. Q:   I am purchasing a house which is being constructed. The closing is several weeks away, but I know the house will not be finished on time. Unfortunately, I have to move out of the place I live in now as of the closing date. If the house is not finished and I cannot close, I will have nowhere to put my personal belongings and furniture other than storage. Can I ask the Seller to let me put my things in the garage or the house? If not, should the Seller pay for the cost of my storage since it is his fault the house is not finished on schedule? R.W., West Roxbury, MA A:   This is not an unusual situation, but unfortunately, it is a difficult one for you. You should ask the Seller if you can store your property in the garage or in the house. While the Seller may not be legally responsible to store your belongings pursuant to the terms of the purchase and sale agreement, I am sure he feels a moral obligation to assist you if he can. If you and the Seller agree to put your belongings in the garage or the house, I recommend you enter into a written use and occupancy agreement with the Seller. This document will make it clear what the agreement of the parties is; for example, with regard to the responsibility for insurance, cost of storage, access to the property and the belongings, and length of the agreement. It is always best to have a written agreement in these situations to avoid misunderstandings.

Short On A Down Payment? Try a Lease/Purchase Agreement By Davis Rowley, President of the Residential Association of Realtors Buyers who find themselves short on cash for a down payment despite having qualified for a mortgage may want to ask the seller to consider a lease/purchase agreement, according to the Greater Boston Real Estate Board Residential Association of Realtors®. Often referred to as a delayed closing, a lease/purchase agreement can help prospective homeowners overcome financing obstacles and move into homeownership quicker than they might think. Often times, all buyers need are just a few extra months to save enough for a down payment to make the purchase. A lease/purchase agreement is a good option for buyers in a market like today's, where inventory and interest rates are both low and there's no guarantee a dream home will still be available when they're financially ready to buy. Lease/purchase agreements are often called "forced savings" agreements by lenders, because under the agreement, a portion of the tenant's monthly rent-usually 10 percent to 20 percent-is applied toward a down payment on the home. When the down payment savings reaches a specified amount, the tenant can obtain the actual financing for the remaining amount of the purchase price, the property goes to settlement and the title is conveyed. This arrangement generally works best for buyers who need an extended period to raise the funds, and for sellers who do not need the equity from the sale of their home to purchase another. Typically, lease/purchase agreements are more common in real estate markets that are sluggish. However, these types of deals can still be found in healthy markets, and are often used by sellers who want to sell their home but can afford to generate a little bit of rental income from it while they are waiting for a buyer. With a lease/purchase or delayed settlement agreement, a regular contract is written on the property and earnest money is held in a non-refundable escrow fund. The rent is then set somewhere over the market rate-usually between $100 and $300 monthly-and is put toward the down payment and closing costs. All contingencies of the selling contract in essence are removed except for the financing. The necessary appraisals and home inspections are completed and a specific contract is written that outlines how the sale will proceed. Under a lease/purchase agreement, closings typically occur between nine months and a year after the initial contract is signed. If the potential purchaser for some reason decides not to purchase the property, they lose their escrow funds. Usually, the selling price is also negotiated up front. When a seller agrees to a lease/purchase agreement, it enables the buyers to begin living in the home they want to buy. The seller knows the house is sold and that if the agreement falls through for any reason, they maintain any earnest money that's been put down. Unlike a lease/purchase agreement, renters looking to enter the homeownership arena should understand that a rent-with-an-option-to-buy doesn't always guarantee that the property will be theirs down the road. .The "option" in this type of agreement refers to an acknowledgement by the renter that if the property should ever become available for purchase, he or she would be interested in purchasing it. The property's owner, meanwhile, also acknowledges this fact and agrees to offer the property to the renter first. Rent-with-an-option-to-buy agreements make the most sense when an individual is 'cash poor' and can't afford a down payment, wants first option to purchase property in the future, or is having a delay or problem in a selling property he or she currently owns and needs additional cash to purchase a new property. This type of agreement also works when a seller is hesitant to sell due to a personal or professional situation (uncertainty about a job move, for example), but needs the property to generate an immediate cash flow. One of the most important factors parties entering lease/purchase contracts should insist on is that of including the exact selling price in the agreement. The seller needs to protect himself from selling too low in a hot real estate market and the potential buyer needs to be certain as to any contingent arrangements which may extend the offer period, and in turn cause a readjustment of price. Renters interested in becoming homeowners via a lease/purchase agreement can locate properties owned by sellers who are open to lease/purchase agreements in a number of ways. The best source, however, is to contact your local Realtor. Typically, all renters properties listed in the local multiple listing service will indicate if a lease/purchase option is available on a particular property. Both sellers and purchasers considering entering a lease/purchase agreement should seek professional representation by a Realtor who is well-versed in handling these types of contracts. Renters or sellers who are choosing this route should have professional representation to assist them in preparing a solid agreement to ensure both sides understand what it is they are entering into. Both parties to such an agreement need to realize that they are entering into an actual contract that will have an addendum that spells out what each side will be required to. For many people, the lease/purchase option is a good way. It provides a viable method that can make buying a home a reality quicker than some a lot of buyers think.