Boston Real Estate Blog

1892 Grand Brookline Victorian with amazing potential for developer or rehab specialist. Lots of original restored ornate woodwork and classic detail. Features 16 Rooms with 8 Fireplaces 9 Bedrooms 4.5 Baths. New composite deck. Servant wing with kitchen and full bath. Beautiful 4 car garage with walk up loft.

List Price $1,975,000

MLS# 71100877

Square Footage: 7286

Taxes:  $18,375.00 FY 2010

Exclusive Listing Agent: Herbert Rikeman

Reside Real Estate Company 45 Newbury Street Boston 02116

Direct 617-930-4800

contact@resideboston.com

www.bostonerealty.com

Kendall Square, home to MIT, has long been known as the center of biotechnology and computers.  There are more Nobel Prize winners living per square foot than any other area of the world.  Kendall Square is the home to companies such as Genzyme, Microsoft and Google as well as many start-ups.

Centrally located between Harvard square and Beacon Hill Kendall Square is 5 minutes away from the best museums, restaurants, and nightlife Boston and Cambridge have to offer.

Seeing potential in Kendall Square’s location and industry developers, with the city’s encouragement, have began to build more residential projects in the area.  Two notable projects I recently visited are Third Square and The Watermark.  Both are brand new modern buildings offering luxurious finishes and amenities.  Both feature a fitness center, 24 hour concierge and lounge but  they come in very different packages.

The Watermark is a LEED Certified Green building.  All the appliances are Energy Efficient.  The paints and finishes used in the building emit dramatically fewer VOC’S (volatile organic compounds) than traditional finishes.  The carpets are free from formaldehyde, a substance used to make most carpets stain resistant.  These factors make for superior indoor air quality.  The tower boasts amazing views of Boston’s skyline and the Charles River.  From the sunny apartments one can see the sailboats and the esplanade.  At night the buildings light up the skyline.

Third Square is designed in a courtyard formation.  Two fitness centers and an indoor lap-pool overlook the sunny, beautifully landscaped courtyard.  The building’s low-rise massing, and mixed-use of retail and residential create a really strong  community.  In the summer the residents enjoy barbecuing in the shade.  The courtyard provides a little oasis from Kendall’s urban atmosphere.

If you are interested in taking a tour of these buildings or other full service listings please call or email me today.

Mortgage Market Update 

April 26, 2010

As the first time homebuyer deadline rapidly approaches, I wanted to keep you informed on current interest rates and a few items pointers on Flips and Deposits that may help going forward.  

Mortgage Rates:  Mortgage rates bounced around a tight range for most of last week, as there wasn’t much in the way of news to motivate movement in the first three days of the week. Below is a sample of some of our key rates for a 740 FICO and 80LTV borrower w/ NO points:

Program Updates:    Below is a graph which illustrates how borrowers are financing their new home purchases. “FHA IS THE WAY” has been the motto of many mortgage bankers and brokers since the collapse of the secondary mortgage market in 2007. Notice how FHA market share has grown since then and one might argue many of the first time home buyers who took advantage of the tax credit were able to because of FHA. 

Underwriting Updates:   

Flips - Property Flipping is a process of purchasing existing or proposed construction properties with the intention of reselling the properties for a profit. Individuals that flip properties employ a variety of different approaches to reach their objective - some briefly hold title(months or days) and others assign their interest in a contract to a third party(nominee) without ever taking title. Although these practices are legal, obtaining financing through conventional means can be problematic if:

·         The time the seller has title to the time of the P&S signing is less than 90 days

·         The increase in sales price is greater than 20% from their cost and significant repairs can not be substantiated

Although we may be able to work through some of these issues, it is always best to involve me in the process early if you suspect the property may fall into the definition of a flip.  As usual, Mortgage Insurance guidelines are significantly stricter so please pay special attention to any borrower with any preapproval with less than 20% down. 

Deposits - In most circumstances, deposit funds must be drawn from a homebuyer’s personal account. If your client’s intention is different from that, urge the homebuyer to contact the lender immediately.  You may have cause for concern under the following scenarios: 

• Deposit written on a credit card check
• Friend or relative writes check instead of your client
• Funds wired from an unknown source

Since most banks must now verify source of deposit money, deals could be delayed or even denied under the above deposit situations.

As always, please let me know if you have any questions or need any additional information.

Best, 

Jason Deeb
Senior Loan Officer

Direct:  781.486.7143
Cell:      617.901.8405

Fax:      781.245.7373
Email:   jdeeb@msamortgage.com

Mortgage Rates:  Since the last Mortgage Market update, mortgage pricing has rocked back and forth with little to no change in rates.  Given some of the soft economic data and continued demand for US Treasuries, we still expect rates to stay flat over the near term.  Below is a sample of some of our key rates for a 740 FICO and 80LTV borrower w/ no points with the month over month changes in red:

Home Sales Data:  Existing Home Sales were 0.6 percent lower in February led by a 4.8 percent decline in condo sales. Median home price fell 1.8 percent and total existing inventory rose 9.8 percent (yikes). While these stats are discouraging, they do not imply significant weakness as much as they imply continued stagnation after a busy summer buying season and the dreadful weather in the Northeast recently.   On the bright side, this sentiment should help keep mortgage rates low from a historical perspective but the road ahead will be bumpy at best.      

Program Updates:   Effective April 1, 2010, MassHousing will be lowering the maximum Loan to Value from 100% to 97% on one unit and condo properties. All applications with Loan to Values greater than 97% must be dated before March 31^st, 2010 and be closed and funded by May 31^st, 2010.  I am current on my MassHousing preapprovals but please be aware that many borrowers may have an outdated preapproval which will undoubtedly cause problems during the loan process. 

Underwriting Updates:   The rate of litigation against condo associations has been increasing which can potentially cause problems during the loan process.  Although most of the litigation is minor in the amount of damages sought and an exception can be granted, there is still a few pieces of documentation that needs to be collected that can cause delays. Specifically, there may be additional information needed by the attorney representing the association and/or court papers.  It is advised to ask the following questions

• Owner occupancy? (ideally 50% or more)
• Year Association was established? (ideally 3 years for limited review)
• If one investor owns more than 10% of the units?
• If there is any pending litigation AGAINST the association?

All of these questions are included on the attached questionnaire which is attached for your review. However, it may save time to ask these 4 questions before a showing or making any offer. 

As always, please let me know if you have any questions or need any additional information. I look forward to a very strong spring season where we close many deals together.  If there is anything I can do to help please let me know.

Jason Deeb
Senior Loan Officer 

Direct:   781.486.7143
Fax:       781.245.7373

Mobile:  617.901.8405

Email:   jdeeb@msamortgage.com

Just a bit of real estate news from down South. Florida was hit hard with foreclosure sales, then short sales. Now more and more sales of half-finished homes. Lots of bare-studed houses abandoned by their builders are sitting on market. Of course, purchasing a partially built home is nothing new. During the housing boom, many new-home buyers signed purchase contracts before a contractor had even poured a slab. But now, the contractor might no longer be around to finish the job, particularly if a deal involves a custom home. You should consult a general contractor before purchasing an unfinished home anywhere. Here in the Boston area we are not seeing this kind surplus as new construction homes in the area have dropped to its lowest inventory in 40 Years. Thinking of puchasing a new construction home? Feel free to ask questions. I have sold many new construction condos and single family homes in the past and they are all a challenge. So be sure to have the right buyers agent to represent you when buying.

617-236-5005 www.bostonerealty.com www.luxreblog.com 

New Construction Condos Boston

Homeowners insurance is a must have with the purchase of a home. Most lenders require it. So you should make sure you have the right coverage including coverage for personal items. I recommend you review your policy with your agent or provider to make sure you are properly covered for fire, water damage and liability. I also found this article on the Boston Globe website that is helpful: http://www.boston.com/realestate/news/blogs/renow/2009/12/homeowners_insu.html 

You can also contact our recommended insurance agents:

Peabody Insurance 116 Main Street Peabody Ma 01960 Agent: Richard Disessa. Phone 978-531-9863 Fax 978-532-1272 Email: peabodyinsurance@comcast.net

Gaurd Insurance 279 Mount Aburn Street Watertown Ma 02472 Agent: Vickie Fotopoulos. Phone 617-926-4000 Fax 617-926-8334 Email: Vfotopoulos@guardinsure.com