Archive for the ‘Real Estate’ Category

The extension and expansion of the home-buyer tax credit is good news for buyers, sellers and REALTORS in southern New Hampshire. The federal government hopes that the extension will have a positive effect on the real estate market. The first time tax credit had a big impact on the lower end of the market in southern New Hampshire towns like Derry, Salem and Londonderry. The expansion of the credit to move up buyers means that the upper end of the market should benefit, especially in a town like Windham NH with higher priced homes.  At one point in October there was only two home available for sale in the $200,000 to $275,000 range in Windham. The inventory was depleted as a result of first-time buyers rushing to put homes under agreement before the November 30th deadline. Now all buyers have a chance to benefit from the program. This should help with the inventory of higher priced homes in town. Here are the details:

The time limit for the program has been extended. You must have a home placed under agreement before April 30, 2010. The closing on the property must take place before June 30, 2010. First time buyers will still qualify for up to $8,000. Income limits have been raised so that single buyers can earn up to $125,000 and still get the full credit while a married couple can earn $225,000. A FIRST TIME BUYER MAY NOT BE WHAT YOU THINK! Under the program, you are a first time buyer if you have not owned a home during the last three years.

Now, buyers that want to trade up can also qualify. Those who have owned and occupied a residence for the at least five of the past eight years can claim a $6,5000 tax credit if they close on a purchase before the end of June.  Also, this program does not require you to pay the money back to the government as earlier versions did. Prudential Dinsmore Associates, REALTORS are not accountants or tax advisors and if you plan to participate in the program we urge you to consult with a tax planning professional before you purchase a home. Here is the IRS link to the program information.

If you want to explore your options, why not contact Prudential Dinsmore Associates, REALTORS today.

Cobbett’s Pond, in Windham New Hampshire, has experienced a dramatic transformation over the past twenty years. The summer cottages and seasonal lifestyle have been totally replaced by upscale homes with year round residents.  

My great-grandfather’s farm ran to the shore of Cobbetts Pond in Windham and my grandfather rented summer cottages along the shore. I grew up on Cobbetts and still live there today. The changes that are taking place along the shoreline are simply amazing to me.  The old summer cottages are being replaced by luxurious waterfront homes and the recession has had little impact on the pace of change.

A little history first: Cobbett’s Pond was named for the Reverend Thomas Cobbet, a minister from Lynn and Ipswich, Massachusetts who received a grant of 500 acres on its northern shore in 1662. The first summer cottage was built in 1886. From then until the 1970’s the pond remained largely a summer community with public beaches, a dance hall over the water and a thriving summer theater nearby. When I grew up on Cobbetts most of the residents disappeared after Labor Day. There were a smattering of year round residents but all my lake buddies were gone in the fall.

All that began to change in the eighties when a few cottages were demolished to make way for modest year round homes. The real change occurred in the early 1990’s. Prudential Dinsmore Associates sold 3 waterfront lots on the “big pond” that had remained vacant for years.  The prices in the $225,000 to $250,000 range raised the bar at that time. At that same time, we also sold quite a few summer cottages in the $300,000-$350,000 range which were torn down for new upscale homes. This was the beginning of the changes on the lake. Today, it seems that a cottage is being torn down every time you go out in your boat being replaced by a lavish new home. 

The increased desirabilty of the town of Windham has raised the cache of Cobbetts. The main appeal is that you can enjoy waterfront living close to work. If you are going to make a large investment it is nice to know you can enjoy your lake house each and every day without having to travel two hours to the north. Many business owners and professionals from southern New Hampshire and northern Massachusetts call the lake home. A good many of the new homes are being built by Windham residents who want to stay in town but want to live on the water. Of course Boston is a straight shot down Interstate 93, less than 35 miles to the south.

The market for waterfront property on Cobbetts remains strong in spite of the current downturn. Waterfront properties that are priced correctly are selling to the pool of buyers who want to be on the lake.  

Imagine enjoying your ”front” yard by the water as the warm sun rises over the lake while a Great Blue Heron flys by, low over the water.  Savour the drive home from work, turn onto your narrow road, knowing the day is done, and walk barefoot to a lakeside patio to enjoy the an evening cocktail. That is until the kids start begging to go tubing or water skiing. There is a firework display over the water on the fourth of July. Even the winter is enjoyable watching the carnival of ice fishermen, skaters and snowmobilers. This is lakeside living at its best and it all can be yours.

Cobbetts Pond is a 302 acre spring fed lake with an average depth of about 30 feet and with 50 feet being it’s deepest. The “Big Pond” and the “Little Pond” are divided in the middle by the “Narrows” giving the outline the lake an hour glass shape. There is a seperate village district that taxes for lake improvements and water quality initiatives. All waterfront construction is governed by local Windham zoning laws and the state of New Hampshire Shoreline Protection Act.  More information about waterfront living in southern New Hampshire here. 

Overlooking the “Narrows” this exquisitely appointed residence offers crown moldings, hand-crafted cabinetry and designer fixtures. Incredible custom kitchen features granite and opens to the great-room which offers panoramic lake views. Luxurious master bedroom suite with fireplace an spa bath overlooking the water. Over 6,000 Sq.ft with ten rooms. 3 car attached garage plus a 3 car carriage house with an unfinished bonus room above. A unique lot with over 100 feet of frontage and offering beautiful views and sunsets.  Offered at $1,395,000. Click here for full details and more pictures.

Waterfront elegance can be enjoyed in this beautiful custom home. 114 feet of lake frontage allows you to enjoy sweeping lake views. Impressive entry with leaded glass doors and handsome wood and cast iron staircase design.  Designer kitchen with granite counters. Beautiful master suite and attached two car garage. Offered at $1,150,000. Click here for full details and more pictures.

BUILDING LOT WITH ALL APPROVALS ON COBBETT”S POND.  $349,900 CALL OR E-MAIL FOR FULL DETAILS

See all of the current homes for sale on Cobbetts Pond in Windham NH.

Choosing the ten best things about Windham, New Hampshire is a little subjective but these things really stand out in my mind. If you want to add a favorite thing you’re welcome to do so.

1. COBBETTS POND: O.K. I’m very biased on this one since I live on the lake. Every morning when I get up and look out the windows and watch the sun rise through the mist covered pond I find this place magical. And what a place to raise kids. Swimming, fishing, tubing, lake friendships, what could be better.  In the winter a whole knew character overtakes the place with ice fishing huts, ice skating and power sports.  Personally, I like coming home on a summer evening after work. As soon as I pull onto my narrow road that winds to my home I know that I’m done for the day.  I can kick back, put on my shorts, walk around bare-footed and have a cocktail while watching the boats go by.
2. WINDHAM’S ABUNDANT OPEN SPACE AND RECREATION AREAS: Most people have know idea about all of the opportunities to get outside in Windham. There are the many open space preserves. Incrediblyscenic Deer Leap, a high granite cliff overlooking Moekel Pond with walking trails. Foster’s Pondrecreation area with beautiful trails, pond and wildlife. Canoe launch area on Canobie Lake. Boat ramp for Windham residents on Canobie Lake. The town beach on Cobbett’s Pond. The Windham “Rail Trail” which offers one of the most picturesque places for a walk or bike ride in southern New Hampshire. And of course Griffin park with all of it’s recreational amenities.
3. THE PEOPLE OF WINDHAM: Windham NH is a great community with many warm and wonderful people. It’s a diverse community where people are passionate about what is “best” for Windham. Hundreds of people tirelessly volunteer to make our community a better place.
4. WINDHAM SCHOOLS: Windham NH has an excellent, well funded school system. Windham parents are passionate about providing the best education possible for their children. This is epitomized in the new Windham High School. The teachers who our children have had over the years have been caring and involved. They have made a real difference in how our children take on the world.
5. THE HILLS AND VISTAS:Riding around the town of Windham NH offers some incredible scenery. It is a town of rolling hills and this makes for some panoramic views. The views approaching the Castle Reach neighborhood as you pass Searles Castle and overlooking the apple orchard, is one of my favorites. The views from the homes on Jenny’s Hill are superb. The new neighborhoods at Ryan Farm and Terra Bella have incredible home-sites with views.
6. EASY TO GET TO AND FROM: One of the best things about Windham NH is that you can easily get to where you want to go on interstate 93. I-93 is a straight shot into Boston. I can be in the North End for dinner in less than 35 minutes (without traffic). The seacoast is less than an hour away and the lakes and mountains of northern New Hampshire are under two hours.
7. COMPASSION:WIndham NH resident have been at the forefront of helping people who are in need. The Shepards Pantry helps feed those in need locally and is a joint project of St Matthews Catholic Church and Windham Presbyterian Church. Helping Hands is another group that does an incredible service to those in need. There are individual initiatives like the founding of Nobody’s Children by a local physician to provide medical and humanitarian aid to children in Romania and Bosnia.  It’s the initiative of the Windham Presbyterian Church in provided aid to communities in Rowanda including a water project for a local clinic. All of the examples above have led me to provide support a Zezouma Sanou, a teacher and the people of his village in Bukina Faso. Compassion and concern for the needs of other is a great testament to the spirit of the town of Windham.
8. BREAKFAST AND LUNCH: The best place for breakfast or lunch in Windham is found at Windham Junction. Great sandwiches and delicious salads. Eat in or out in a great atmosphere adjacent to the Windham Rail Trail.  
9. GELATO VS. ICE CREAM:  Of course nothing beats getting a great scoop of ice cream at a local stand and for this Johnson’s Farm is the best. Not only is there the ice cream but also farm animals. Windham Junction is a great place to grab an ice cream if you’re out enjoying the rail trail. My new weakness is found at Shabby Chic. Of course this place would be located just down the street from my home. The home made gelato is wonderful and of course the cupcakes can’t be beat.
10. A cocktail and appetizer upstairs in the Common Man.

11. What’s your favorite thing about Windham NH?

If you think that Windham NH might be a place you would want to explore check out the homes for sale and detailed community informationat PrudentialDinsmore.com

Bank owned homes are currently a huge segment of the the real estate market in southern New Hampshire making up about 20% of the sales in the first quarter of 2009, according to Peter Francese of the New England Economic Partnership. So you’ve heard the stories splashed all across the media about how bank owned homes are being listed and sold below market value offering home buyers the potential to “steal” a home. Our experience it that there are tremendous opportunities for buyers purchasing bank owned properties but, and this is a big but, you need to know the rules of the game and be prepared for them in advance. This is where a knowledgeable real estate professional can be extremely helpful.

RULE # 1: BE PREPARED FOR PROPERTY CONDITION ISSUES. Many bank owned properties have serious condition issues. During the last bank downturn in the early 1990’s the banks often spent a great deal of money renovating and preparing their REO property for the market. Today, because of the large numbers of homes in inventory and the convoluted issue of who owns the mortgage, properties are being sold strictly “as is.” In a normal real estate transaction you receive a seller’s representation of condition but with bank owned property you will receive no seller’s representation about the property condition. If you are lucky you will recieve a form with all of the information blank and be notified that the property is sold ”as is.”  Essentially you are buying the property blind with the right to inspect.  Some bank owned properties are in relatively good shape and in need of very little repair but others need substantial work and repairs. As a buyer, you have to realize that this is why many bank owned homes have such great prices.

RULE #2: BE PREPARED FOR MUTLIPLE OFFERS.  There are often multiple offers on bank owned properties and this is to be expected since many are prices below market. You need to know that there are no order of contacts and the seller can accept any offer no matter when it is presented. You may or may not know about other offers. There is no requirement that you as a buyer be informed of other offers. As a buyer you have to be prepared for the fact that you may lose a property to a competing buyer. 

RULE # 3: BE PREPARED FOR UNRESPONSIVE ASSET MANAGERS AND LONG WAIT TIMES IN NEGOTIATIONS. Bank asset managers and the listing real estate agents are dealing with hundreds of properties. Some who are experienced and have adequate support staff are quick, about responding to offers and issues, and are easy to work with but others are arrogant and unresponsive. In fairness, the approval process requires multiple decision makers. This may be the most frustrating part of the process.

RULE #4: UNDERSTAND THE BANK ADDENDUM.  When you write your offer you will be required to sign the REO Addendum. Be assured that all of the terms of this Addendum protect the REO seller not you. You should have it reviewed by an attorney. Also be assured that unless you sign this agreement your offer will not be accepted.  Watch for you inspection times which often begin at the time your offer is “verbally” accepted and per Diem penalties for not closing on time.

RULE #4: HAVE A GOOD SOURCE OF FINANCING IN PLACE.  You need to be working with a bank or mortgage company that is responsive and quick to act. If you are financing with FHA there may be condition issues that will prevent you from being able to obtain the loan.

RULE #5: BE PREPARED FOR THE INSPECTION ISSUES. In our experience with bank owned sales the inspection process can present challenges. For example, if the house has been winterized with the water turned off you may be required to pay for having the water turned on for your inspection. Every bank owned property is different and in some cases the seller will pay to de-winterize and in others they require the buyer to cover the expense. We have seen this expense run around $350 for buyers. It is important that you incur this expense because freeze ups (broken pipes) are often an issue with bank owned homes.   

RULE # 6: BE PREPARED FOR THE LAST MINUTE CLOSING GLITCH. In our experience there are often last minute closing glitches. There may be title issues or an asset manager who needs to sign off on some paperwork has not done so.

SO WHY WOULD ANYONE WANT TO BUY A BANK OWNED PROEPRTY?

We’re back to where we began…bank owned homes are often tremendous buys and may even be offered below “market value.” They may offer you as a buyer an opportunity to own a house in a neighborhood or community that you never could have afforded. So if bank owned properties are of interest to you, go for it, with a real estate professional to guide you along the way.

Saerch for bank owned homes in southern New Hampshire now by clicking on the bar shown below.

The results for first quarter home sales in southern New Hampshire are just in and a sampling of single family home sales in the towns of Windham NH, Salem NH, Pelham NH and Londonderry NH offer an interesting look into what is happening with the local real estate market.

SALEM NH SINGLE FAMILY HOME SALES: Closed sales were up substantially in the first quarter of 2009 vs. the first quarter of 2008. 43 single family homes sold in 2009 vs. 37 in 2008. The average sales price dropped from $324,065 in 2008 to $234,923. As discussed elsewhere, this does not mean that prices actually dropped by this amount but rather it means that first time buyers are a huge factor in the market and purchasing many homes in the lower price ranges. In fact, 67% of the homes sold in Salem during the quarter had selling prices of less than $249,900. No Homes sold over $500,000 in the quarter and only 3 sold between $400,000 and $499,900. The most activity was in $200,000 to $249,900 range. Reflecting this trend is the fact that 37% of the homes were financed through F.H.A. Average time on market for closed sales was 157 vs. 115 in 2008. In summary, sales are up in Salem, especially in the lower end of the market.

WINDHAM NH SINGLE FAMILY HOME SALES: Closed home sales were also up in Windham with 21 homes closed in 2009 vs. 19 in 2008. Average sold home prices declined form $446,053 in 2008 to $409,745. 38% of the homes sold in 2009 were in $300,000 to $500,000 price range. 6 homes sold over $500,000 with the highest priced home being in the $700,000 to $799,9000 range. Average days on market for closed sales was 167 in 2009 vs. vs. 160 in 2008. In summary, sales are up in Windham with the greatest activity in the $300,000 to $500,000 range and with good activity over $500,000.

PELHAM NH SINGLE FAMILY HOME SALES: Closed home sales remained stable in Pelham with 18 homes closed in both 2008 and 2009. The average closed sales price was $297,184 in 2009 and $354,687 in 2008. Average days on market for closed homes dropped to 142 in 2009 vs. 149 in 2008. Again, the lower end of the market dominated activity with 50% of sales being under $249,900. Five homes sold between $400,000 and $499,900.   

LONDONDERRY NH SINGLE FAMILY HOME SALES: In Londonderry closed sales dropped slightly from 28 in 2008 to 26 in 2009. The average closed sales price dropped from $313,669 to $256,219. This again reflects the trend in other towns where the lower end of the real estate market is dominating sales volume.  50% of the sales in 2009 were below $249,900. 50% sold for between $300,000 and $499,900. No homes sold for over $400,000.  50% of the sales were financed with F.H.A. financing. The average days on the market for closed sales dropped from 138 in 2008 to 115 in 2009.

In other news the National Association of REALTORS reports that NAR’s Housing Affordability Index rose 0.9 percentage points to a record high 173.5 in February from January. The HAI is a measure of housing affordability that shows the relationship between home prices, mortgage interest rates and family income, and has been tracked by NAR since 1970.

Note: This representation is based in whole or in part by data supplied by the Multiple Listing Service of the Granite State South Board of REALTORS Inc. (and NNEREN)  Neither the board or it’s M.L.S. guarantee or is in any way responsible for its accuracy. Data maintained by the Board or its M.L.S. may not reflect all activity in the market.

The days are getting longer and warmer and the question on everyone’s mind is, will there be a normal spring real estate market? Well, maybe not on every one’s mind but cerainly on the minds of buyers and sellers of homes in southern New Hampshire as well as being an obsession with local real estate agents and brokers. 

The main focus of this blog will be to offer a personal perspective on southern New Hampshire with with various tangents about real estate, observations, local updates and personal favorites of every kind. What gives me the right to offer my views and observations in a public forum like this? Well as the venerable Ronald Reagan once said, “I’m paying for this blog,” or something to that effect. And as someone who was born and raised in Windham New Hampshire I have a long history with the area. Hopefully you will find what is written here both informative and more than a little entertaining.

I AM A CHILD OF THE SEVENTIES

While I was born in the late fifties and count myself among the vast baby boomer horde that overtook and transformed America, my coming of age was in the seventies. It was a haze of Pink Floyd, Eagles and Earth Windham and Fire in a time when inflation was rampant, a huge energy crisis persisted and all of America was in a huge group funk.  My first car was a 1974 Mustang II fastback. Oh, let me step back, my first car was a parent hand-me-down, a 1971 Oldsmobile 98 “land boat.” Unfortunately (or fortunately depending on your perspective) it blew up in a massive fireball on the side of the road when it was being returned from being serviced. My Dad had to leap from the car but I got a new Mustang out of the deal. The 1974 Mustang II was the model that destroyed the original concept of the over powered muscle car and turned it into little more than a souped up Pinto because of the oil embargo and the energy crisis. In spite of its limitations, I did get the car to move out on many occasions.  One time in West Virginia that little car saved my life.  You see two of my college fraternity brothers and myself were escaping the Three Mile Island Nuclear meltdown. I was attending Dickinson College, in Pensylvania, in 1979 which was a few miles away.  We stoppped at a bar to make a phone call in West Virginia to tell our parents we were safe and sound. Well the locals didn’t like the presence of a Mustang II with New Hampshire plates in their territory. Thus began a five mile ride of terror being chased by a car full of drunk locals brandishing a rifle out their window pointed at us.  Just as we were approaching the interstate and safety I lost control of the car and we did a 360 degree spin and stalled on the side of the road. The upstanding local citizenry was pouring out of their car in our direction with evil intent when I turned the key on the ignition and that beautiful little car started right up and we were able to leave our pursuers in the dust.  Anyway, we lived to tell the story or our own personal “deliverance.”

NOW THAT I’VE GOT YOUR ATTENTION, WHAT DOES THIS HAVE TO DO WITH REAL ESTATE?

Now that I’ve got your attention, you might wonder where this is all leading to on a real estate web site. Well it it is all carefully crafted to introduce you to the fact that I got my New Hampshire real estate license in 1978 and sold my first house that summer while still in college.  My family and I started a local real estate company that year which is now Prudential Dinsmore Associates, REALTORS. While doing something for a long time can make you nothing more than an old hack, in my case, it offers a lot of perspective on the real estate market. To often we become focused on the part of history we are travelling through and that blinds us to the bigger picture.

This first house I sold in the summer of 1978 was a little 3 bedroom split-entry for $42,900. The mortgage interest rate was 9.5%. Right now it would be worth about $220,000 or five times more in value. If a person had bought a house and stayed in it for 30 years and paid off the mortgage over that time, in addition to the tax breaks they would have a free and clear asset that had increased in value by five times. All while providing a good place to live and enjoy life.

The seventies and early eighties were troubled times. Interest rates rose to as high as 18%. Those people who had the courage to buy when interest rates seemed totally intolerable did very well on their real estate investments. In the late seventies into the early eighties building lots in Windham NH sold for between $15,000 and $20,000. Today, they are worth $150,000 to $200,000 or ten times higher in value. In between prices went both up and down. The recession of the late 1980’s into the early 1990’s was especially severe in southern New Hampshire and the five largest New Hampshire banks all went bankrupt. People who had the courage to buy during that down turn did very well with their real estate investments and home purchases.

When I first started selling homes in southern New Hampshire people moving from out of state were amazed that many houses had only a one stall garage and did not have central air. Granite counters had not even been imagined at the time. While the real estate market always changes over time it has offered long term stability and financial rewards, especially to those who could muster the courage to buy in bad times. Nothing remains static for long.

IS NOW THE TIME TO BUY?

There is no question that times are tough for some, and this is not a time to buy a house if you are unsure about your job, but if you have some job security and the means to afford a reasonable house payment, housing affordability has never been better.  Interest rates are low and home prices are incredible in southern NH. As I said before, nothing remains static and nobody can predict the future, however, there is a possibility that interest rates could rise in the future as the demands of government financing pushes up rates. If inflation starts to head higher keeping your assets in cash will be a poor choice. So while doing nothing might seem like the safe choice, it just might be the most dangerous. Kind of like leaving the scene of a nuclear power plant meltdown only to end up being pursued by armed rednecks.  Well you get the idea.

Thats all for now…