Article 1 (Brighton/ Allston Year end real estate update.) Article 2 ( Don't leave your home out in the cold.) Article 3 (The Importance of Furnishings in Staging Your Home for Sale.) Article 4 (Precautions When Renting a Car) Article 5 (Q&A with Michael Merrill) Article 6 (Spring Has Sprung in the Real Estate Market!) Article 7 (10 Tips For Luxury Home Buying.) Article 8 (You Want HOW MUCH at Closing? )

BRIGHTON/ALLSTON YEAR END REAL ESTATE UPDATE By Shari Marquis Nationwide, 1997 was another banner year in real estate sales! Locally 1997 set new records also. Brighton / Allston is a very stable community with only a small percentage of the properties selling on an annual basis. This year was an excellent year for sales in Brighton / Allston. The average sale price of a single family home in Brighton increased 12.6% to $214,231 from $190,194 in 96. Over the last two years, the average sale price of a single family home in Brighton has increased 28% from the 1995 average price of $166,223. 1997 individuals sales ranged from a low of $130,000 to a high of $435,000. In Allston, we see a similar picture, with the average sales price of a single family home up to $190,761 from $135,00 in 1996. An increase of 41% over the prior year! At the same time, the average sale price on a multifamily home in Brighton is $269,532 and $258,815 in Allston. This represents an increase in average prices of 13% in Brighton and 26% in Allston. The condominium market also showed a healthy 5% increase in average price, from $96,383 in 1996 to 101,101 in 1997, with a 40% increase in the number of units sold. Although, in most cases, condominiums have not reached the market value they had at the peak of the market in 1987-88, our condo market is very healthy. However, the market value of most single and multifamily properties in Brighton has surpassed the peak prices of the eighties and set new peaks. How long will this last?? No one has a crystal ball, but prices are expected to remain relatively stable and possibly show a slight increase of 1-2% over the year. Thus far, the market for single, two and three family homes has had a shortage of inventory on the market (not many homes for sale) causing prices to increase because of lack of supply and high customer demand. Prices should level off as more properties are listed for sale in the early Spring. This creates a window of opportunity for homeowners who are ready to sell their homes now. There are more buyers competing for the same property, which is causing multiple offers and in many cases higher prices. As more properties are listed for sale, there will be more competition for the same buyers. There has never been a better market for home sales. Prices are up, interest rates are down and there are lots of qualified buyers ready to make a purchase. In addition, the tax law changes are putting more money in your pocket. (All prices and statistics are compiled from MLS-1 sales data)   Shari Marquis G.R.I. Owner of Marquis Real Estate Better Homes and Gardens 1996 REALTOR® of The Year Director of MLS PIN, GBREB & MAR Chairman of MLS PIN Technology Task Force Chairman, Communications and Technology MAR Vice-chairman, NAR MLS Policy Committee

DON'T LEAVE YOUR HOME OUT IN THE COLD Real Estate Facts: Judy Moore 2/98 Winter has worn out its welcome and you're catching your annual dose of cabin fever. Maybe you're considering taking off for a warmer climate for a while. Before you close that suitcase, consider some of the hints below from the Greater Boston Real Estate Board's Residential Association of Realtors® if you are planning to leave your house for any length of time this winter season Be sure to check weather stripping around doors and storm windows. Make a trip up to the attic and inspect old insulation. "Replacing old insulation will save you money on your heating bill and is a good idea even if you'll be sticking around this winter," Judy Moore, president of the Residential Association of Realtors® says. She recommends that you leave your heat set at about 62 degrees to prevent water pipes from freezing and resulting in water damage of they should burst. Make arrangements with a neighbor or responsible child in the area to shovel a path in front of your house and up to your door if you plan to be away for any length of time when snowfall is a threat. "In many instances, you can be held responsible for accidents that occur on your property due to slippery spots. Some mail carriers will even refuse to deliver mail to those houses without a path to the mailbox.," Moore cautions. "In addition, a shoveled walk also gives the appearance of someone living there -- a thwart to burglars." Before leaving your home for any length of time, you should also make arrangements to have mail and newspaper delivery stopped. For shorter trips, you might want to ask a neighbor to take your mail in for you. Not only will this guard against stolen or misplaced pieces of mail, bit it too will help make your home look lived-in. Other useful tips to retaining that lived-in look include using automatic timers for lights and stopping delivery of the newspaper, she adds. If your travel plans don't include your pet, be sure to make arrangements with a neighbor or local kennel to ensure their care. Also, don't forget to make arrangements with someone to look after your house plants if you plan to be gone for an extended time. Here's some other tips you might want to consider before leaving: Let your close neighbors know about how long you will be gone, as well as any details about persons who may be visiting your home during your absence. Make sure your house number is both on the front and the back of your home and can be clearly read by neighbors who see anything suspicious that should be reported to the local police. If you have a second car, you might want to consider leaving it parked in your driveway, or making arrangements to have a neighbor park in your driveway to give the appearance that someone is home. If you are leaving a car behind, you also might want to have someone start it up periodically to help ensure your battery stays charged. Be sure all locks on doors and windows are secure. Leave a travel schedule along with telephone numbers where you can be reached with a house sitter or friend in the event you need to contacted in an emergency. Also, be sure to leave local telephone numbers of friends or relatives with your house sitter or neighbors as emergency numbers. "You'll enjoy your time away from home even more by knowing that you're leaving it well prepared and protected against the elements and crime," Moore says. The Greater Boston Real Estate Board's Residential Association of Realtors® is one of nearly 1,800 local boards and associations of Realtors nationwide that comprise the Nation Association of Realtors (NAR). As the nation's largest trade organization, NAR is "The Voice for Real Estate," representing nearly 750,000 members involved in all aspects of the real estate industry.

The Importance of Furnishings in Staging Your Home for Sale By Sara Rosenfeld, Sr. Vice President, Co-manager for the Brookline Office of Hunneman & Coldwell Banker (617) 731-2447   For anyone interested in selling their home, I believe one of the most important tasks the seller needs to complete is to stage the home for marketing. Staging their home and the grounds, but also the removal of extra personal belongings and the proper placement of the Seller's furnishings to make the property look its best. The result of careful staging, in most cases, includes a reduction of marketing time and an increase in sales price. A furnished home is much more welcoming than a vacant home. Many buyers want to experience how the home feels by actually sitting in a room for a period of time. This cannot be accomplished in a vacant home. Buyers need assistance in visually moving into the property. Carefully staged furnishings allow a Buyer to actually see the room's size and ability to hold a certain amount of furnishings. Furnishings also add color and texture to the room. Most real estate professionals will encourage a seller to keep their furnishings and some personal belongings in a vacant home in order to prevent the rooms from looking smaller. Vacant rooms have a tendency to trick the eye and give a smaller appearance than a furnished room. This is especially true in bedrooms where a size of a bed can be very hard to imagine when there is not a bed or other furnishings. Real estate professionals also advise their clients to keep furnishings in a home for safety. Vacant homes are unfortunately a target for vandals, especially those that appear vacant. Keeping the home furnished, having lights on timers, and having someone regularly check the property is the best way to prevent unnecessary break-ins. Many sellers who are relocating will actually go out of their way to leave their furnishings behind until the property goes under agreement (an offer is accepted). In most homes, Sellers have made it a point to purchase furnishings over the time they have owned the home that go with the property or show off a special feature in the property. This is especially true with older, historically significant homes. There is something very special about a house built in a certain era that has coordinating furnishings, especially the Victorian Era. Many of Metro Boston's finest historic home are filled with the finest of historic furnishings. Many of the homes sold each year are estate sales where the owner has passed away. Leaving some of the owner's furnishings behind also tells a buyer more about who has lived in the home. Many buyers like t find out as much as they can about the current owner and their life in the home, especially if the live there for a long time. Some of the world's population will not purchase a home unless they know the history of the owners. What a better way of finding out about an owner who is no longer with us that looking at their furnishings!

Precautions When Renting a Car By Richard Mazzarella   We receive many questions from both our clients who are taking a pleasure vacations and our business clients involved with corporate travel regarding the procedures to obtain proper insurance when renting a car. If you have a personal auto policy in Massachusetts or you are listed as a regular driver on your spouse's car, the liability coverage on either your own car or that of your spouse will automatically extend to provide coverage for you concerning property damage and bodily injury liability for anyone or anything that you might hit, but it does not cover any damage to the rental vehicle itself. If you do not have a personal auto policy and/or are not named on your spouse's policy, you are in a different category. Normally, most of the people in this situation ate driving a company owned and insured car. If you are driving a company owned car and you are not listed on your own vehicle or your spouse's vehicles as a regular driver, the commercial auto policy for the company owned vehicle needs to include an endorsement called "broad form drive other car coverage." This endorsement gives the same automatic extension concerning liability coverage as the personal auto policy. Without this endorsement and/or your listing on a personal policy, you would have no liability protection when driving the rental car. The general solution to insure the rental vehicle itself is to rent it using your American Express card, which will provide coverage for collision and theft of the vehicle. Some of the other credit cards provide this protection as well, but this is not a uniform benefit within the industry so you should check with the particular credit card company that you have concerning their regulations. When using you American Express card, there are several exclusions and/or limitations that you should be aware of. A few of the more common concerns are the following: 1. The American Express card WILL NOT provide coverage for rental cars with a sticker price of $50,000 or more. 2. The American Express card WILL NOT provide coverage for sporty or exotic cars such as Corvettes, Mercedes, Porsches, BMW, Jaguar XJ6, Rolls Royces, etc. 3. The American Express card WILL NOT provide coverage for pick-up trucks or cargo vans or full-sized vans. 4. The American Express coverage will not apply to any rental longer than thirty days. 5. This rental coverage is only available within the United States and Canada. 6. This rental coverage will not apply if your are driving the rental vehicle outside the authorized rental territory. Hopefully, this list of snags will enable some of you to stay out of trouble you don't need. This list of helpful hints apply to cars that are rented and driven within the United States. For those people traveling outside the United State, they will need to check with their insurance provider to obtain the necessary coverage that pertains to their particular destination.

Q&A with Michael Merrill of Merrill and McGeary, a real estate attorney.   Q: I recently found a condominium unit I like. I made and offer to purchase and paid the deposit. After the inspection there were a few repair items I either wanted credit for or repairs. How is this generally handled? If a credit is agreed to, do I get a check from the Seller or is the purchase price reduced? I am also concerned, because this agreed to, do I get the check from a the Seller or is the purchase price reduced? I am also concerned because this is a Condominium which is self-managed and the books and accounts seem to be unorganized. How can I be sure there is no future liability which will become known after I become the owner and the Seller is long gone?   D.R., Boston MA   A: These are all good questions, because they often arise in the purchase process whether it is a house or a condominium unit. The resolution of repair items is part of the negotiation process, much like the one you engaged in when you agreed to purchase price and other terms of the offer. The home inspection is to allow the Buyer to have a trained professional view the unit and the common areas. The professional will be able to advise you of issues which you were unaware of when you made the offer. If it is likely you will need repairs and will have to pay the cost thereof you can negotiate these items with the Seller. The Seller has no obligation to agree to any of your repairs, nor do you have an obligation to accept the Seller's offer. If the Seller does agree to make an adjustment often it is in the form of a payment to the Buyer. From the Buyer's perspective the Buyer would rather have a check from the Seller at closing rather than a reduction in the purchase price. This helps with cash flow. As for the books of the condominium, I recommend you speak directly to the condominium's president or treasurer, and if necessary, review the accounts yourself. If you are unable to review the books to your satisfaction you should have your lawyer include certain representations and have your lawyer include certain presentations and warranties in the purchase and sale agreement which will survive the agreement and give you some protection.   Michael W. Merrill   Q: I am investigating the purchase of a house in a subdivision. There are six house lots with a private driveway running through the middle of the lots which serves each lot. The plot plan for the subdivision does not show the driveway, but rather depicts two of the rear lots with shapes like pan handles. The driveway actually is on the panhandles of those lots. The broker said each of the other four lots has an easement to use the driveway which is referenced in the deeds. Is this odd? Should I be concerned.   K.R., Quincy MA   A: This sounds like an unusual situation. I recommend you carefully review the title to all of the lots and the easement before you acquire the house. Your primary interest is that you have the right to use the driveway and that the use and character of the driveway cannot be changes by the owners of the lots to your detriment. Secondly, you should be concerned about any costs associated with the maintenance and repair of the driveway. Generally, all the owners who use the driveway would agree to share in these costs including snow removal. It is possible the strange shape of the rear lots was mandated by the Town which may require buildable lots have frontage on a public road. This question could be answered by the Town's Building Commissioner or Planning Director.   Michael W. Merrill

Spring Has Sprung in the Real Estate Market! By Peter Ziegelman   The snow may still be on the ground, but the real estate market is heating up! There are many new people coming into the market and, with interest rates the lowest they have been in almost two years, now is a great time to buy and sell. Some people believe it is a seller's market -- and for all intents and purposes, it is. What's important to remember is that although prices have increased, the interest rates have lowered so the increase and decrease cancel each other out. As a seller, if you got caught in the late 80's with an overpriced unit, the prices have now surpasses those days and it is a great time to sell. The market has changed in regard to rental vs. sale/ Many people in the South End are finding that rentals are so high that it makes more sense to buy when you take into consideration prices as well as tax savings. In any case, now is a good time to recoup on what was bought in the 80's and even make good profit. After considering all these points as a seller, maybe you are still wondering why you should see. There are two types of sellers. Those who want to upgrade to a larger unit and those who have bought investment property and want to sell it. Sellers of rental property should consider with all the headaches of owning such property, the major increases that have taken place in value and the great new tax laws that now is the perfect time to sell that investment property. No one knows where the market will go, but with the hills and valleys of the economy, now may be the best time for it to be considered. Those who wish to upgrade may find that with the low interest rates available and higher salaries, that now is a perfect time to sell and buy a new place. Keep in mind that with the fast paced market we are in that one must sell one's first unit before offering on a new unit. This is because the market is so swift that no sellers are taking sale contingency offers. In any case, the potential seller should really take a hard look at all possibilities as now is the perfect time to sell. As a seller, you are probably asking yourself, "What do I need to do prepare my home for sale?" Today, the less work the buyer has to do the better. Most buyers tend not to want to deal with any major construction and like that decorator look. If you are willing to do some work your return can be up to three times the money you put into it and usually sells much more quickly. At this point, another question might come to mind..."How does my unit compare to others on the market?" Here, it is important to keep in mind most buyers are looking for amenities... the more the better! Things like hardwood floors, working fireplaces, laundry, outdoor space, parking, updated kitchen and baths are all selling features that are looked at in setting a price and can increase the value by thousands. Other aspects are finishes, common area condition, neighborhood location, type of heat (electric vs. gas or oil) owner occupancy, storage and light exposures. Most units at this point are selling in the $250-$350 per SF range with new construction selling at an even higher premium on smaller units. In conclusion, if you choose to sell your home or investment property find a broker who you feel comfortable with, as it really becomes a partnership. Some property owners have chosen to try and market their properties on their own and this on paper seems like a good idea. What they forget is that by doing that they are taking on a great deal of additional responsibility, including expensive ads, keeping the deal together, getting the best price, sitting for fire inspections, appraisals, open houses, as well as getting all necessary paperwork to make the deal work. If you have lots of Free time, then maybe it is worth a try, but most people do not and with a seasoned Realtor, you can be sure that you will get the best price and the deal will run smoothly from start to finish. The keyword in this market to Sellers is SELL...SELL...SELL.

10 Tips For Luxury Home Buying REMAX AFFILIATES ARTICLE 1. Separate emotions from logic. Most salespeople know that people buy with emotion and rationalize with logic. Luxury home buyers are apt to do this a lot, but most often they have logical goals and expectations for the prospective property they purchase. Making a buying decision for emotional reasons can often result in overpaying or worse yet, overpaying for a property that does not totally meet one's needs, wants and desires. There is nothing wrong wit h falling in love with a property before you buy it. Take some time, however, before you begin the process. Write down and crystallize exactly what it is that you want in your new home. Is it space, privacy, location or view? When it is love at first sight, you can make sure the property meets most or all of the points on your list.   2. Know Your Financial Alternatives. While most of us will not have to decide whether to pay cash or finance a property, high end buyers typically understand all the alternatives open to them. You should too. Using stocks or securities as collateral, getting a home equity loan at the time of purchase, or the benefits and obligations of 15, 20 or 30 year mortgages. What would be the impact on your budget and your financial well being if you were to add $100 to the principal portion with your payment each month? What is you double the principal portion of your mortgage payment each month? Take time to sit down and calculate all the different alternatives and their impact. If you need help with these calculations, talk to a real estate professional, financial planner, or accountant. You will be surprised at the impact of some of these techniques. For instance, an extra monthly principal payment of $100 on $100,000 loan shortens the term from 30 years to 20 years and two months and saves $64,000 in interest over the life of the loan!   3. Understand value in the marketplace. It can be more difficult for high end purchasers of real estate to know the market, because typically the market is smaller with fewer sales to use for comparison. Nevertheless, through networking, social and business contacts, many high-end buyers get a very good feeling for the pulse of the market. You can get the same knowledge by asking your agent to supply you with multiple listing printouts showing recent comparable sales of similar properties, properties currently on the market, as well as those that were on the market and were withdrawn or expired without selling. Recent sales of similar properties can set the "base line" in a stable market. Offering prices of the similar properties should set the upper limit of the value under consideration. Properties that 'expired' show the dream prices of sellers that were never realized. Ask your real estate agent to tell you the average number of days the property, such as what you are considering, is typically on the market before it sells. In a resort or second home market, anything under 90 days means you are most likely in a seller's market, which means you can expect to have less flexibility in your negotiations. In a primary home market, an average of 30-45 days would mean the same thing.   4. Don't be obsessed with potential financial return. Rarely does a high-end purchase acquire an important property looking for investment returns. More often, family considerations, privacy, status, etc. are more important. Trying to second guess the real estate market buying your home strictly for investment results can often lead to disappointment. Follow the secrets listed here, find the property that truly meets your needs. Don't buy strictly on the bases of potential financial return.   5. Develop a 'feel' for the market. Through networking, both social and business, high end buyers develop a keen sense of the best side of town, the side of the street to be on and neighborhoods. You can get the same insights by talking to friends and associates about the area you are considering. When you have narrowed down the field to your final selection, the level of investment you are contemplating certainly warrants an hour or two knocking on doors, "interviewing" your potential new neighbors. What do they like best about living here? is there anything they wish they could change? In addition, check the area at different times of the day to notice traffic patterns or noise from aircraft, for example.   6. Always deal with an expert. Whether it's for tax issues, legal advice or medical opinions, people of means are used to dealing with experts. This is no different when contemplating a real estate purchase. You should interview the real estate professional you intend to work with just as you would interview a potential employee, attorney, or accountant. Ask for his or her resume, how long they have been in the business, what are their qualifications, designations, when and what was their last educational class they attended. Understand there is nothing wrong with a person new to the business. What they lack in experience can often be compensated for in enthusiasm. Most times they will have an experienced company with a broker or manager that can serve as a back-up. High end buyers know, however, exactly who they are dealing with. You should too.   7. Don't over extend. Most high end buyers got to be where they are by being careful with their money. Compute your gross income from all sources. Make sure the property your are contemplating will cost more than 35-38% of this income for principal, interest, taxes and insurance. Don't forget, there will always be the unexpected repairs and maintenance that can surprise you. Do you have enough money put aside to cover the payments for six months should something happen to your job or income stream? If not, you may want to consider a property that only requires 25-30% of your gross income to carry. While home ownership is one of the most important traditions of our society, you don't want to become house poor. Make sure that you still have a life after working to pay for the purchase, maintenance and monthly mortgage of your new acquisition.   8. Don't major in minor details. The living rooms is 3 inches too small and the closet door sticks. High end buyers don't forget what is truly important in a luxury home purchase. Remember, every home is a compromise, no matter what the price. It is value, location, and how close it meets your wants, needs and desires that counts. A sticky closet door can be fixed. A yard too small for your children or an eastern exposure when you are a late riser are difficult, if not impossible, to change.   9. Have an exit plan. Markets do crash, oil supplies dry up, and interest rates can go through the roof. While no one wants to have to sell their home under the gun, mortgage the kids, or give up dining out and vacations, it is good to know that if the worse happened, there are certain specific steps you can take that would allow you to "weather the storm." For example: Cash in retirement account for $20,000, tap your equity line for $50,000, or borrow against life insurance. See, the worst doesn't seem so bad after all. You have a plan.   10. Investment potential vs. investment certainty. Understanding and using the secrets if the high end home buyer will help ensure that your decision is rational, logical, and one you can live with through good times and bad. Following the tips will allow you to enjoy your home purchase for many years of which the potential appreciation is significant. beyond this, understanding the power of reduced interest costs through additional principal payments magnifies the already significant forced saving benefits of home ownership. While you may not be contemplating a $2,000,000 waterfront estate, following these 10 secrets can help you feel like a million bucks in the home you have decided to purchase.

You Want HOW MUCH at Closing? By Rick Fedele   The moving van is en route, the dog is at the kennel, the kids are in the car, and you find out that your closing costs are more money - sometimes thousands more - than you anticipated. Closing cost "shock" is one of the worst things that can happen when you're buying a home. The most horrific part is that there is very little time to do anything about it; many buyers simply pay the amount just to get the transaction settled.   The Good Faith Estimate One safeguard is to receive a Good Faith Estimate from your lender, (but keep in mind that the operative word there is "estimate"). An intentionally "whittled down" estimate is one tactic that lenders might use to entice you to buy... or your estimate might have been prepared by someone inexperienced, or not accountable. It is very unpleasant to discover your actual closing costs are higher than those estimated, so make sure your Good Faith Estimate is prepared accurately and completely, and is guaranteed and signed by a lender representative having authority to stand behind it. You should know exactly what is included before signing - there should be no surprises at closing. Get to the Point Generally speaking, points are fees charged by lenders to increase profit. One point is 1 percent of the amount you want to borrow. If the mortgage is $100,000, one point equals $1,000. Every point you pay up front (in the closing cost) reduces your interest rate over the term of the loan, approximately a quarter of a percent. Points are also referred to as a "loan discount" or a permanent buydown fee. This one-time charge used to adjust the yield on the loan to what market conditions demand. This should be itemized as "loan discount" on your closing fees. No point loans reduce the amount of cash you need at closing, but increase the interest rate over the life of the loan. This type of loan is well-suited to someone who is planning to sell the property in a short amount of time. If you happen upon a no-point loan, you're probably being charged a higher interest rate.   What Are All of These Fees? There are two types of closing costs: settlement charges and prepaid charges. Settlement charges are those fees for services related to the processing and closing of your loan. Your closing costs should be itemized, line by line, so that you're aware of all of the costs included. The corresponding line numbers are assigned by the U.S. Department of Housing and Urban Development (HUD). These numbers should appear on the Good Faith Estimate provided you by the lender, as well as on your final Settlement.   Settlement Charges There are a number of settlement fees that are incorporated into closing costs, such as loan origination fee, appraisal report fee, credit report fee, lender's inspection fee, underwriting review fee and escrow settlement fee. Among your settlement charges you'll see a line item, "Miscellaneous Settlement Charges." Be certain to obtain a full explanation of any costs that fall under this category.   Prepaid Charges Prepaid charges represent payments in advance for, or deposits for future payments of items such as interest charges, insurance premiums, real estate taxes, and initial deposits to your escrow-impounds accounts. Prepaid charges have one line item "Other Prepaid Charges" that you should be particularly wary of... be sure you know exactly what those charges entail before signing. Some closing costs are controlled by the lender while others, such as homeowners' insurance premiums, are generally controlled by a third party (such as your homeowners' insurance agent). Many charges are also absorbed by the lender, ask your lender for details. Likewise, there are likely to be other charges associated with the closing of your loan which haven't been addressed here - ask your lender for a specific explanation of every charge incorporated into your closing costs. Getting a guaranteed Good Faith Estimate eliminates closing cost shock, so keep in mind that a competitive quote is worthless if not guaranteed in writing. You should know exactly what your closing costs will be when you go to sign - a closing should be a time of joy, not shock.   Richard Fedele is President of Summit Funding, a Boston-based mortgage company with offices at 376 Boylston Street. Summit is an affiliate of Pacific Guarantee Mortgage Company (PGM), based in Greenbrae, California. PGM is the largest mortgage broker in the United States with a full line of loans and an annual volume of in excess of $1 billion. PGM has more than 40 offices and 135 loan originators throughout the country, and brokers its loans to a network of more than 200 nationwide lenders. For additional information, please call (617) 859-0900.