More Subprime Mumblings Emerge

OMG.... Banks are thinking about using Subprime B paper loans again???? I would think we have learned are lesson about Subprime loans from the recession. This is one way to hurt the current housing recovery..







More Subprime Mumblings Emerge

List of Real Estate Online Auction Sites

www.hubzu.com

www.hudforeclosed.com - Fee

www.bid4assets.com

www.treasury.gov/auctions/treasury/rp/

www.realtybid.com

www.tranzon.com

www.hudsonandmarshall.com

www.schraderauction.com

www.auctionzip.com

www.hilcoreal.com

www.jjmanning.com

www.maltzauctions.com

www.higgenbotham.com

 

More brokerages pull the plug on Zillow, Trulia | Inman News

I completely back this decision and believe that Massachusetts Realtors Association and Brokerages should consider doing the same to protect the integrity of Massachusetts real estate property listings.


More brokerages pull the plug on Zillow, Trulia | Inman News

Site Serves as Database of Deaths in Houses Article

This article is so true. Moreover, in Massachusetts, according to Massachusetts General Laws Chapter 93, section 114, it not required to disclose a death in a real estate property, disclosure of parapsychological or supernatural phenomenon, felony, suicide or homicide, or the property has had an occupant with HIV or AIDS.

Site Serves as Database of Deaths in Houses

https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section114

America's 10 Most Energy-Efficient Cities

Just read this Realtor Magazine article about the top 10 energy-efficient U.S cities, which I am so happy to see that Boston is #1. However, I am very surprised to see that Chicago so low on this list. I have been to Chicago a few time and love the city, but the one thing that I remember most about the city is that they pride themselves on being a green city and try to lower their carbon footprint.

America's 10 Most Energy-Efficient Cities

Here are the cities that took the top spots in ACEE’s rankings:

1. Boston
2. Portland, Ore.
3. San Francisco
4. New York City
5. Seattle
6. Austin, Texas
7. Washington, D.C.
8. Minneapolis
9. Chicago
10. Philadelphia

Sources:
  "America's 10 Most Energy-Efficient Cities," REALTOR(R) Magazine (Sept. 24, 2013)
 "The Most Energy-Efficient Cities in America," Business Insider (Sept. 22, 2013)

What is RADON

 

 

What is RADON

Radon is a naturally accruing radioactive, odorless, colorless, tasteless gas that is the result of decaying Uranium or Thorium. Radon normally will work its way up from the ground or ground water and into a home from cracks in the walls and/or floors, spaces inside walls, construction joints, gaps around floors or service pipes, and water supplies. An acceptable level of radon is below 4 picocuries per liter of air (pCi/L).Now below 4 pCi/L is an acceptable level of Radon established by the EPA; however, there is no level considered safe and the effects of Radon exposure is believed to cause lung cancer.

 

Typically, Radon is mentioned during the real estate process and is tested for by the potential buyer between the time after the accepted offer and before the signing of the Purchase and Sale Agreement (the P&S). Testing for Radon is usually done during the home inspection and can be tested many ways but the typical two ways are either by a CRM (continuous radon monitor) or by carbon charcoal solution. The CRM is a little more expensive and can cost over a $100 but it will tell the Radon levels immediately. The carbon charcoal solution is less expensive, normally around $40 to $60 dollars. The charcoal solution comes in two small containers and needs to opened and put side by side at the lowest levels of the property, normally the basement. The downside of this test is that it needs to be left for at least 48 hours and no more than 72 hours. Then they would need to be mailed to the lab, which will mail back the results, in all, the whole test process takes about 5 to 7 days.

 

 If you are a potential buyer or a real estate agent that is worried about having a test come back positive for above acceptable levels of Radon (above 4 pCi/L), don’t worry, there is a solution. There is a device that is called a Radon Mitigation System which is a system of vents and fans which placed in the basement and pull the Radon gas out of the basement and vents it to the outside. In turn, it lowers the level of Radon in the property. This system usually cost around $2,000 to $2,500.

 Now, I do need to explain one thing, Radon is a gas, so different areas of a property will have different levels of radon. Normally, each level up will have a half the pCi/L level of Radon than the level below it. For example, if the levels in the basement of a three floor house (3 floors above ground plus a basement, in all, 4 floors) is 6 pCi/L (2 pCi/L above acceptable levels), then the first floor levels will be 3 pCi/L. And the second flood would be 1.5 pCi/L. And the 3^rd floor would be .75 pCi/L. Why I am mentioning this is for two reasons, first, to give you knowledge and options. If you about to purchase a home which has been tested and showed signs of higher than acceptable levels of Radon, you would have several options. Such as, you could back out of the deal, you could ask for a credit from the seller at closing in the amount that would correct the issue, or you could ask for the seller to correct the issue before closing. One other possibility is if the levels tested in the basement was just above acceptable level, such as 4 or 5 pCi/L, and you are not planning on using the basement as living space, than you could postpose dealing with the issue until later because on the first floor would be around 2.5 to 3 pCi/L, which is well below the acceptable levels. Now, I am only giving this as an option and not approving or disapproving this idea.

The second reason is for potential condo buyers. One thing to remember about condos and Radon is that most condo associations consider basements as common space areas. And if any repairs needed in a condo association common space area, the cost would fall upon the condo associations. These condo association funds are in the from the condo fees the condo owners pay each month.

What this means is if you are purchasing a condo:

·         First, even if the condo you are interested in is on higher floor (2+ floors) you should always test for Radon in the basement. 

·         If higher levels of Radon is detected, most likely the seller will not be able to do anything about it within the normal closing timespan (30 – 45 days). They would have to go through the condo association board first and get their approval (which normally meets once a month).

·         Also, you and/or the seller cannot do anything to fix the issue without the condo association board’s approval. This normally will take time.

·         Always consider the facts, the floor level the property is on, how high the level of Radon test is, and what the amount would be at the property floor.

·         How to calculate the approximate Radon level on different floors. Each level up is about half the amount of Radon below it. Example: Basement is tested and comes back with 6 pCi/l, then the 1^st floor would be about 3 pCi/L, 2^nd floor would be 1.5pCi/L, and 3^rd floor would be .75 pCi/L, etc.  

·         If the property you are interested in is on the first floor, prepare for a longer closing time and get the property fixed properly.

My best advice for future condo owners who may find a place that has higher than normal levels of Radon and the property is on the 2^nd floor or higher, if the levels of Radon are not extreme, I would not make it an issue. I would close on the property and if the issue concerns you, I would become good friends with the condo owners on the first floor. Remember, the closer you are to the ground, the more exposure you’ll receive. Once you know the owners of the first floor and have informed them of the issue (which should make them very concerned), all of you should talk with the condo association or go to the monthly condo association meeting and address the issue there. Then the association would have to correct the problem.

Radon is not something to take lightly; however, it is not something to consider uncorrectable. If you consider all the facts about Radon and the property you might be interested in, you will most likely be able to make the deal work and still have a safe new home. Please feel free to contact me with any questions or concerns you might have.

Some common myths about radon ( Information from http://ma-radon.info/MA_general.html):

MYTH: Scientists are not sure that radon really is a problem.

FACT: Although some scientists dispute the precise number of deaths due to radon, all the major health organizations (like the Centers for Disease Control and Prevention, the American Lung Association and the American Medical Association) agree with estimates that radon causes thousands of preventable lung cancer deaths every year. This is especially true among smokers, since the risk to smokers is much greater than to non-smokers.

MYTH: Homes with radon problems can't be fixed, or cannot be fixed economically.

FACT: There are solutions to radon problems in homes. Thousands of homeowners have already fixed radon problems in their homes. Radon levels can be readily lowered for $900 to $2,500.

MYTH: Radon is only a problem in certain parts of the country.

FACT: High radon levels have been found in every state.

MYTH: A neighbor's test result is a good indication of whether your home has a problem.

FACT: Radon levels vary greatly from home to home. The only way to know if your home has a radon problem is to test it.

MYTH: It is difficult to sell homes where radon problems have been discovered.

FACT: Many types of problems can hinder a home sale, but when the problems are fixed before the home is listed, the sales are not slowed down. It is the same for radon. All homes should be tested for radon, and those with problems fixed before being listed for sale.

MYTH: I've lived in my home for so long, it doesn't make sense to take action now.

FACT: You will reduce your risk of lung cancer when you reduce radon levels, even if you've lived with a radon problem for a long time.

MYTH: Short-term tests cannot be used for making a decision about whether to fix your home.

FACT: Short term tests can be used to decide whether to fix your home, and for higher radon levels (8 pCi/l or higher) that is all that should be used. Keep in mind that, even though the action level is 4, this is not a "safe" level and that radon levels below 4 pCi/l still pose some risk. Radon levels in most homes can be reduced to 2 pCi/l or less.

Why Apartment Rental Prices in Boston are High

 

 

I always seem to hear the same thing from clients looking for rentals, “wow, Boston apartment’s rental prices are so high”, even more so with out of state clients relocating to the Boston area. Boston is one of five cities that have the most expensive apartment rentals in the country, followed by New York, Miami, LA, and San Francisco, according to Trulia. Over the past few years, the country has seen a drastic increase in rental prices and about 3.9% increase just this year alone. Now, as you my already know, this nationwide increase is mainly due to the recession we just went through. Mainly because when people are losing their homes or when large amounts of people can’t be approved for mortgages because of banks tightening of loan requirements, this put more renters on the market looking for apartments. In turn, this allows landlords and property management companies to raise the rent. It is almost like a scale with housing properties on one side and rental properties on the other, when the housing market is down due to recessions, foreclosures, and/or banks tightening of mortgage requirements, the rental side moves up. But the good news is that when rental prices become too extreme, which we have been seeing lately, people start looking to buy a home. Why pay your landlords mortgage when you could be paying your own?  And when people would rather buy their own home instead of paying overpriced rent, the scale starts to tip and the housing side start to rise and the rentals side starts to fall. And I think the country is almost to that point right now. We can see this happening by how the housing market is going crazy and the banks are now starting to lower their approval requirements. However, the recession only explains one factor for why the Boston rentals are so high. Yes, the recession did hit Boston; however, not as bad as the rest of the country, such as Rhode Island and Florida.

 

Boston is not only on Trulia’s top 5 list of most expensive rental cities, it on their top 5 list of highest renal price hikes during the past year. Where most of the country has seen about a 4% rental hike, Boston has had a 5.5% hike from this time last year. It’s so high that most Bostonians pay at least half or more than half of their monthly income on rent alone. So what causes Boston to have such high rental prices and price hikes, Boston is a very unique city and has many factors that cause the rental market to be so extreme and I would like to explain them. The first and one of the largest factors is size. Boston is one of the smallest cities in the country. Personally, I can walk from Kenmore / Fenway area to the North End in about an hour. How many cities do you know where you can walk from one side of the city to the other side in about an hour? Not many. And this is after Boston reclaimed a lot of land from the ocean and the Charles River during the mid to late 1800’s. So with limited space and large amounts of people looking to live in Boston, this does effects the rental market and its prices.

 

The second factor on my list, Boston is one of the oldest cities in the United States and has a lot of history. We have the Boston Massacre site, the Old North Church, Boston Commons, and Paul Revere and Sam Adams gravesite. This attract a lot of people to want to live here and when there is a desire, this causes a demand, and when there is a demand, dollars are not too far behind. I think this is self-explanatory and therefore, really doesn’t need too much to be said.

Last on my list, but not least. In my opinion, the largest factor to effects the apartment rental prices in Boston is the Colleges and Universities. Yes, Colleges and Universities. Now you are asking yourself, how can schools really cause Boston to be one of the most expensive rental cities in America? It’s very simple; Boston has huge number of desired schools in the country. Such as Harvard, Boston University, Boston College, Northeastern University, Tufts, Suffolk, and UMASS, just to name a few. And every September, these schools bring in thousands of students and teachers to Boston. Native Bostonians and any person who has been in Boston on September 1^st, knows this is true. September 1^st is the worst day to go anywhere in Boston. Thousands of moving trucks are doubled park and furniture on the sidewalks and people running around like chickens with their heads cut off. If I could instill one piece of knowledge to you, DON’T COME TO BOSTON ON SEPTEMBER 1^ST!!!!! And if you are moving to Boston around that time, Move in before or after September 1^st. Trust me, you’ll be saving yourself a lot of stress…..

Now back to what I was saying. Not only do colleges and Universities affect the rental prices, but they affect the areas lease dates as well. A huge majority of apartment landlords and property management companies set the lease date on a September 1^st cycle. And being on a September 1^st cycle in turns effect the rental price because you have thousands of people, not only students and teachers, but everyone else who has wanted to move but couldn’t because either they themselves are in a September 1^st lease cycle or they could not find any apartments during the year. HHHMmmmmmmmm I wonder why? Yes, you got it, because most of the apartments are all on a September 1^st cycle. And so, because of September 1^st and the thousands and thousands of people looking for apartments from May to September, the landlords knows that it will be a feeding frenzy. So they can jack up their rent into craziness and still knows they will have a new tenant by September. Also, just to let you know, the closer you are to these schools, the more expensive with less square footage the apartment becomes.

 

	Summer 2013 Boston and Surrounding towns Average Apartment rental Prices   www.ScottMaHomes.Com                                                                  www.ScottMaHomes.Blogspot.com
	City / Town	Neighborhood	Average Apartment Rented Prices & Average Square Footage									Average Apartment Listing Prices & Average Square Footage
			1 Bedroom	Avg Sq Ft		2 Bedrooms	Avg Sq Ft		3 Bedrooms	Avg Sq Ft		1 Bedroom	Avg Sq Ft		2 Bedrooms	Avg Sq Ft		3 Bedrooms	Avg Sq Ft
	Arlington		$1,375	721	SqFt	$2,083	1,205	SqFt	$2,891	1,760	SqFt	$1,796	721	SqFt	$2,200	1,205	SqFt	$2,744	1,760	SqFt
	Boston -							SqFt
		Allston	$1,875	769	SqFt	$2,276	964	SqFt	$2,378	1,171	SqFt	$1,941	769	SqFt	$2,304	964	SqFt	$2,482	1,171	SqFt
		Back Bay	$2,658	684	SqFt	$4,447	1,167	SqFt	$8,000	1,872	SqFt	$2,752	684	SqFt	$4,539	1,167	SqFt	$8,769	1,872	SqFt
		Beacon Hill	$2,382	601	SqFt	$3,339	1,069	SqFt	$3,975	1,392	SqFt	$2,465	601	SqFt	$3,598	1,069	SqFt	$5,150	1,392	SqFt
		Brighton	$1,577	665	SqFt	$1,973	952	SqFt	$2,332	1,267	SqFt	$1,558	665	SqFt	$2,029	952	SqFt	$2,896	1,267	SqFt
		Charlestown	$2,368	736	SqFt	$2,861	1,135	SqFt	$4,148	1,569	SqFt	$2,418	736	SqFt	$2,932	1,135	SqFt	$4,079	1,569	SqFt
		Chinatown	$2,500	805	SqFt	N/A	N/A	SqFt	N/A	N/A	SqFt	$2,483	805	SqFt	N/A	N/A	SqFt	N/A	N/A	SqFt
		Dorchester	$1,575	757	SqFt	$1,556	1,075	SqFt	$1,764	1,186	SqFt	$1,394	757	SqFt	$1,636	1,075	SqFt	$1,796	1,186	SqFt
		East Boston	$1,989	874	SqFt	$1,659	946	SqFt	$2,382	1,337	SqFt	$1,987	874	SqFt	$1,761	946	SqFt	$2,418	1,337	SqFt
		Financial District	$4,000	822	SqFt	$4,000	1,127	SqFt	N/A	N/A	SqFt	$2,895	822	SqFt	$4,050	1,127	SqFt	N/A	N/A	SqFt
		Hyde Park	$1,500	1,026	SqFt	$1,408	954	SqFt	$1,717	1,321	SqFt	$1,500	1,026	SqFt	$1,375	954	SqFt	$1,789	1,321	SqFt
		Jamiaca Plain	$2,015	853	SqFt	$1,910	973	SqFt	$2,556	1,346	SqFt	$2,039	853	SqFt	$2,003	973	SqFt	$2,552	1,346	SqFt
		Leather District	$3,042	1,062	SqFt	$3,714	1,285	SqFt	N/A	N/A	SqFt	$3,111	1,062	SqFt	$3,717	1,285	SqFt	N/A	N/A	SqFt
		Mattapan	N/A	N/A	SqFt	$1,375	1,039	SqFt	N/A	1,300	SqFt	N/A	N/A	SqFt	$1,333	1,039	SqFt	$1,700	1,300	SqFt
		Midtown	$3,198	745	SqFt	$6,185	1,367	SqFt	$10,225	2,383	SqFt	$3,139	745	SqFt	$6,447	1,367	SqFt	$14,400	2,383	SqFt
		Roslindale	$1,050	1,000	SqFt	$1,587	1,060	SqFt	$2,061	1,225	SqFt	$1,050	1,000	SqFt	$1,614	1,060	SqFt	$2,035	1,225	SqFt
		Roxbury	$1,060	725	SqFt	$1,650	887	SqFt	$2,214	1,264	SqFt	$1,083	725	SqFt	$1,770	887	SqFt	$2,315	1,264	SqFt
		South Boston	$1,823	673	SqFt	$2,542	1,066	SqFt	$3,156	1,290	SqFt	$1,929	673	SqFt	$2,679	1,066	SqFt	$3,176	1,290	SqFt
		South End	$2,626	750	SqFt	$3,259	1,336	SqFt	$3,570	1,621	SqFt	$2,644	750	SqFt	$3,460	1,336	SqFt	$5,168	1,621	SqFt
		West Roxbury	$1,213	697	SqFt	$1,581	1,031	SqFt	$1,825	1,447	SqFt	$1,506	697	SqFt	$1,669	1,031	SqFt	$2,254	1,447	SqFt
	Brookline		$1,988	721	SqFt	$2,767	1,126	SqFt	$3,243	1,596	SqFt	$1,970	721	SqFt	$2,804	1,126	SqFt	$3,429	1,596	SqFt
	Cambridge		$2,268	730	SqFt	$2,761	1,077	SqFt	$3,528	1,483	SqFt	$2,324	730	SqFt	$2,898	1,077	SqFt	$3,699	1,483	SqFt
	Dedham		$1,175	683	SqFt	$1,625	1,085	SqFt	$1,825	1,816	SqFt	$1,175	683	SqFt	$1,625	1,085	SqFt	$1,817	1,816	SqFt
	Everett		$1,307	812	SqFt	$1,336	1,036	SqFt	$1,670	1,289	SqFt	$1,347	812	SqFt	$1,413	1,036	SqFt	$1,682	1,289	SqFt
	Medford		$1,520	837	SqFt	$1,900	1,210	SqFt	$2,160	1,463	SqFt	$1,514	837	SqFt	$1,910	1,210	SqFt	$2,210	1,463	SqFt
	Newton		$1,524	742	SqFt	$2,184	1,169	SqFt	$3,025	1,712	SqFt	$1,524	742	SqFt	$2,159	1,169	SqFt	$2,846	1,712	SqFt
	Quincy		$1,289	732	SqFt	$1,664	1,079	SqFt	$2,092	1,367	SqFt	$1,319	732	SqFt	$1,744	1,079	SqFt	$2,048	1,367	SqFt
	Somerville		$2,140	930	SqFt	$2,153	1,144	SqFt	$2,523	1,388	SqFt	$2,103	930	SqFt	$2,251	1,144	SqFt	$2,614	2,523	SqFt
	Watertown		$1,703	868	SqFt	$1,865	1,140	SqFt	$2,389	1,501	SqFt	$1,750	868	SqFt	$1,904	1,140	SqFt	$2,440	1,501	SqFt
	Information Collected by: Scott Mitchell Realtor, ABR, CDPE, GREEN. RSPS, SRES, Notary Follow Me on: www.ScottMaHomes.com      www.ScottMaHomes.Blogspot.com ***The Information contained in this chart is averages and was collected from MLS from the dates of 6/21/2013 to 9/2/2013. This chart can not be responsible for inaccurate information posted to MLS. Some prices and/or sqaure footage number can seem inaccurate due to the number of apartments listed or rented during the charts time frame.

 

Therefore, it is not just one thing that causes the Boston rent to be so high, but multiple factors working together. Thus, the past nations recession, the city’s size, age and history, and it colleges and universities are a huge factors in why Boston is one of the most expensive place to live.