A New Way to Look at Golf

About a year ago, my best friend of 14 years was diagnosed with Non-Hodgkin's Lymphoma and the prognosis didn't look good. Thankfully, he pulled through. In the last year, I've become more involved with the Leukemia & Lymphoma Society and I've met some pretty interesting people--survivors, like my best friend. So headlines like the one about Miles Levin, an 18-year old who has had to grow up fast over the last 2 years and who died this past Sunday, always grab my attention. I was reading his blog online and stumbled across this entry. I really touched me. I know this has nothing to do with real estate, but it is a poignant message and I felt compelled to share it.


From the blog of Miles Levin, aged 18.

I went to the driving range the other day and I was thinking...

I was thinking how you start out with a big bucket full of golf balls, and you just start hitting away carelessly. You have dozens of them, each individual ball means nothing so you just hit, hit, hit. One ball gone is practically inconsequential when subtracted from your bottomless bucket. There are no practice swings or technique re-evaluations after a bad shot, because so many more tries remain. Yet eventually you start to have to reach down towards the bottom of the bucket to scavenge for another shot and you realize that tries are running out. Now with just a handful left, each swing becomes more meaningful. The right technique becomes more crucial, so between each shot you take a couple practice swings and a few deep breaths. There is a very strong need to end on a good note, even if every preceeding shot was horrible, getting it right at the end means a lot. You know as you tee up your last ball, "This is my final shot, I want to crush this with perfection; I must make this count." Limited quantities or limited time brings a new, precious value and signficance to anything you do. Live every day shooting as if its your last shot, I know I have to.

2nd Quarter Sales Statistics

The National Association of Realtors today announced sales and pricing statistics for the 2nd quarter of 2007. Home prices improved in many metro areas, but sales continue to lag compared to 2006. Overall pricing acrouss the country remains flat, but are beginning to creep up after bottoming out in 2006. The median home price for existing single family homes was $223,800 down 1.5% from $227,100 from the same period last year.

Home sales continue to lag, with single family home sales falling 11% from the same period last year on a national level. Comparatively, existing home sales in the Northeast fell 6.8% over Q2 sales in 2006, an improvement on the trend at a national level. Also encouraging is the 0.7% increase in median home prices for existing single family homes to $298,000 versus Q2 in 2006.

As a Realtor, my primary objective is to educate clients that buying a home is still a solid investment. Individual circumstances dictate whether now is the right time to buy for you; the mortgage crisis being what it is and the tightening of lending to even those with exceptional credit. Pat V. Combs, the President of the National Association of Realtors echoes this. According to her, homes continue to be a good investment particularly since most home owners stay in their home an average of 6 years. This can be compared to long term stock market investors weathering the ups and downs of the market on a micro level. In fact, according to Combs, "a typical owner who bought six years ago is seeing a 45 percent increase in the value of their home."

If you have questions about these statistics, or if you want to know if now is the time to buy for you, then drop me a line or give me a call.

Real Estate - Real Solutions

Last week, The CBS Evening News with Katie Couric had a special report called Real Estate Real Solutions. I thought the segments were good because they gave buyers and sellers insight to the market, steps sellers can take to improve their chances for an offer, and even tips for people who want to try to go it alone without an agent. Keep in mind this was the national market in general with some spotlights on local markets in other states; all markets are local so be careful making assumptions in your town and even your neighborhood!

A note to those sellers who want to go it "alone." If you want to try this just to save money paying a commission, then let me tell you about 2 services you can still get from a REALTOR for a reduced commission.

ENTRY ONLY LISTING. This is a listing in which a REALTOR will provide the seller with very minimal services such as advertising the home on the MLS and providing forms to the seller. All negotiations, showings, open houses, and any additional advertising (and the costs associated with them) are the sole responsibility of the seller.

LIMITED SERVICE LISTING. This is a listing for which a REALTOR will perform at least one of the following (but not all):

1. Present offers to purchase diretly to the seller


2. Advise the seller on the merits of an offer


3. Advise the seller in developing, communicating, or presenting counteroffers


4. Participate on the seller's behalf in negotations leading to the sale of the listing property

Both of these options can help you "go it alone" without leaving you in the dark. I encourage anyone considering this to speak to an agent first to hear first hand exactly what he or she can and will do for you to sell your home.

I also encourage anyone looking to buy or sell a home to check out Real Estate - Real Solutions on The CBS Evening News website.

1st Half Sales Results

I thought I would share some sales statistics for RI for the 1st half of 2007. I'm often asked what the average price of a home is in a given area of RI, how long a property has been on the market, etc. And I've been keeping everyone apprised of the "doom and gloom" reported in the media--another pressure on home sales in my opinion.

Well here are some numbers for you to consider.

In the 1st half of 2007, 5,133 homes and condos were sold with an average selling price of just over $335,000. We have to be careful when considering the average selling price of an entire state, especially in a place as small as RI where multimillion dollar homes are never more than a 20-30 minute drive from the most depressed areas of the state.

Consider this. In Providence, the average list price (the "asking price" when the house first goes on the market) was $215,814 in the 1st half of '07 and the average selling price was $207,322. On the EAST SIDE of Providence, however, the average list price was $601,944 with an average selling price of $548,933.

A licensed REALTOR can look at the condition of your home, your individual neighborhood, and the larger municipal area in which you live to help correctly price your home for TODAY'S market. A friend of mine recently asked me about a website, increasing in popularity, that enables you to see active and sold listings on the market with great map capabilities, etc. I visited this site (I am not going to put its name here.) a few days ago and found that the "recent" sales data on many of the houses I checked were from 2005--the TOP of the market 2 years ago.

Pricing your home correctly is probably one of the most important factors in determining how long your home will take to sell. Other things to consider: Make your house stand out among the competition. Repair any defects; de-clutter your home; keep your house clean for any last minute appointments that pop up (not just at open house time); keep your yard tidy.

The following table shows # of Days on Market (DOM) of the 5,133 homes that were sold in the 1st half of the year. Nearly 1/2 sold within 2 months and the majority sold in less than 120 days.

0 - 30 Days....................1,401
31 - 60 Days................... 936 (2,377)
61 - 90 Days................... 702 (3,039)
91 - 120 Days.................. 565 (3,604)
121+ Days......................1,529 (5,133)

If you're thinking about selling your home, then give me a call or send me an e-mail. I'll be happy to look at homes that have sold in your neighborhood in the last 2, 4, or 6 months to get a more accurate picture of the real estate market where you live.

Mortgages Today Take More Time, Money

Due to the recent fallout in subprime mortgages, lenders are now taking a closer look at applications for home financing. The changes in the approval process may ultimately cost many people, particularly subprime borrowers (those with FICO scores under 620), more time and money. In fact, in today's market, it may be unlikely for a borrower with a credit score lower than 620 to obtain a no-money-down loan; most lenders are requiring a minimum of 3% to 5% down and a solid verifiable income history. In fact, lenders have increased the minimum score for loans requiring no down payment from 570 to 620. The irony is that this same group of people could have easily qualified for this type of loan just a few months ago. Analysts and experts believe recent changes to the application process means 10% to 15% of borrowers who qualified under the old rules no longer qualify for 100% financing under the new rules.

Those who are self employed or who are paid in cash will have greater difficulty obtaining financing--particularly if they are in the subprime category. Many lenders are scrutinizing income history and may require FICO scores as high as 700 for 100% financing if there is no verifiable history of income. Additionally, home appraisals are being more carefully researched. In some cases, second appraisals are required for approval adding to the time it takes to get a loan regardless of credit worthiness and income. Many subprime lenders and those with loose lending policies have gone out of business in the crisis which means an increase in business at the remaining lenders adding to the length of time to approve an application.

So what can you do? One of the best things you can do if you're looking to buy a home is know your FICO score. You can obtain your FICO score from online sources (just Google FICO scores--I'm not advertising any of them here) or your mortgage professional. Talk to your mortgage professional about your score and how you can improve it. S/he may be able to refer you to a credit counseling agency that can tell you things like what types of accounts to open/close; which accounts to payoff first; etc that may result in your score going up. Also there may be programs in your area for first time buyers or for invidivuals looking to move into more depressed areas of a city or town. Second, keep good records. When you sit with a mortgage professional, have at least 2 recent tax returns and your last 3 or 4 paycheck stubs to show income history and work stability. Finally, consider putting something down. Banks are more willing to loan money to borrowers who put some of their own savings on the line.

Are You in Danger of Losing Your Home?

The headlines are in the papers daily. It's impossible to open a paper or log onto a news website and not hear all the "doom and gloom" of the housing market. The reality is that thousands of people in this country are in danger of losing their homes because their ARMs are coming into the adjustment period and interest rates (and therefore mortgage payments) are rising--in some cases significantly.

This situation is forcing many people into foreclosure. Some try to sell at a bank-approved loss (a short sale or a deed in lieu) in order to avoid foreclosure. Keep in mind that any forgiveness of debt by a lender, even though you have experienced an economic loss, is treated as income by the IRS. The lender is obliged to complete a 1099 for the amount of the forgiveness, and that amount will be taxed at ordinary rates in the tax year in which the debt is forgiven. Please contact a tax professional or attorney if you have questions about how short sales, deed in lieu, foreclosures, or any similar situation may affect your taxes.

If you, or someone you know, is in danger of losing her home, then please contact me. I will e-mail you a copy of a brochure published by the National Association of Realtors (NAR) titled "Are You Having Problems Paying Your Mortage? Learn how to avoid foreclosure and keep your home." The brochure provides information on pending legislation sponsored by the NAR as well as contact information for government agencies and counseling services that can help you through this difficult period.

4th of July in RI!

The 4th of July is just around the corner and there are celebrations taking place all over the state. Find information about picnics, parades, and fireworks displays. I need to give the folks at Whofish credit for this outstanding list. If you have a favorite 4th of July event that isn't listed here, then please let me know and I'll add it. Have a safe and fun 4th!

Pawtucket -- 19th-Century Fourth of July, July 1, 2007
Historic fun for children and grownups will highlight the Old Tyme Mill Fourth, a 19th century celebration of Independence Day at Slater Mill. Beginning with the Salute to the Flag and recitation of the Pledge of Allegiance, the event gets quickly into high gear with three-legged races, sack races, and a hoop relay for kids plus an egg-and-spoon race and watermelon seed spitting contest for adults. Slater Mill interpreters will present a variety of Independence Day orations including portions of President Abraham Lincoln's 1863 Independence Day address, originally delivered to 67 commemorate the Battle of Vicksburg. Location: Slater Mill, 67 Roosevelt Ave. Time: Begins at 2 p.m. Cost: The Old Tyme Mill 4th is free with admission to Slater Mill (adults, $9; seniors, $8; children age 6-12, $7). Information: 401-725-8638 or visit www.SlaterMill.org

Block Island -- Fourth of July Fireworks, July 3, 2007
Bring your blanket and enjoy our display while relaxing on the beach. Location: Crescent Beach, along the island's east coast from Old Harbor to Clay Head. Time: 9 p.m. Cost: free.

Bristol -- Drum and Bugle Corps Competition, July 3, 2007
The Competition is one the highlights of the Bristol Fourth of July Celebration. It has grown to become one of the finest competitions, featuring top Drum and Bugle Corps from the United States and Canada. Location: Mount Hope High School, Chestnut Street. Time: 7 p.m. Cost: Bleacher seats, $20-$25; lawn seats, $10; family four-pack lawn seats, $35, Information: 401-253-0445.

Bristol -- Fireworks, July 3, 2007
The fireworks will be on display above Bristol Harbor. The best places to view the fireworks are south of Poppasquash Road near the water. Time: 9:45 p.m. Information: 401-253-0445.

Warwick – Fourth of July Fireworks, July 3, 2007
Location: Oakland Beach. Time: Begins at Dusk. Rain date - July 5

Block Island – Fourth of July Parade, July 4, 2007
A real homespun patriotic parade along The Block's main street. Theme of this year’s parade is Your Favorite Children’s Book. The Block Island Fire Department hosts its annual Steak Fry at 1 p.m., serving steak, corn on the cob, and beverages. Location: Spring Street. Time: 11 a.m. Information: 401-466-2474.

Bristol -- 222nd Fourth of July Parade, July 4, 2007
This gigantic parade includes everything a patriotic Fourth of July parade should have. No wonder: the town has been hosting the parade for 222 years, and it receives entries and viewers from all of Rhode Island and neighboring states. Many people arrive very early on parade day or even the night before to bivouac and set up picnics along the parade route. Visitors are advised to arrive before 8 a.m. – some streets adjacent to the parade route are closed to traffic beginning at 7 a.m. The parade will step off at the corner of Chestnut Street and Hope Street (Route 114) and end on High Street, between State Street and Bradford Street. Time: Parade begins at 10:30 a.m. Information: 401- 253-0445.

Bristol -- Linden Place Fourth of July Parade Picnic, July 4, 2007
Linden Place, an 1810 Federal mansion in the heart of Bristol, will host its annual Fourth of July Parade Picnic. Located directly on the historic Bristol Fourth of July Parade route, Linden Place will be offering bleacher-style seating, tables and chairs under the shade of the Linden trees, a continental breakfast and picnic lunch, restroom facilities and elbow room. Location: 500 Hope Street. Time: 8 a.m.-2 p.m. Cost: Adults, $50; children, $35, includes breakfast and lunch. Information: 401-253-0390.

Chepachet – Ancients and Horribles Parade, July 4, 2007
Parade of locally created floats and displays steps off at 4 p.m. at Routes 100 and 98, and travels along Putnam Pike. Information: 401-568-6206.

East Providence – Music and Fireworks, July 4, 2007
Location: Pierce Memorial Stadium, Mercer Street and Lyon Avenue. Band of Brothers performs, followed by fireworks display. Time: Gates open at 6:30 p.m., concert at 7 p.m. Rain date is July 5. Information: 401-435-7511.

Newport – Fireworks, July 4, 2007
Fireworks start at dusk. Information: 401-845-9123.

Pawtucket -- Post-Game Fireworks, July 2, 2007 to July 3, 2007
A fireworks spectacular will follow the 6:15 p.m. game between the Pawtucket Red Sox and the Knights. Location: McCoy Stadium, Ben Mondor Way. Information: 401-724-7300.

Snug Harbor – Parade, July 4, 2007
Parade begins on Sherman Road. Reviewing stand is at Snug Harbor Marina. Time: 6 p.m. Information: 401-789-0409.

Wakefield -- Fourth of July Celebration, July 4, 2007
Live bands, children's activities, barbecue, fireworks. Location: Old Mountain Field, Route 108. Time: 5-9 p.m. followed by fireworks. Information: 401-789-9301.

Westerly -- Fireworks on the Beach, July 9, 2007
Fireworks at Westerly town Beach. Time 8:45 p.m. Information: 401-322-1026



Photo of the Bristol 4th of July Parade copyright Richard Benjamin