Archive for the 'Harsch Associates News' Category

Buying the Listing. Conflict of Interest?

Tuesday, May 4th, 2010

woman with for sale sign on home

Berkshires Real Estate Market Value Opinions can often reflect serious Conflicts of Interest

Sellers of real estate tend to seek the advice of one or more Realtors ® to provide a market value opinion upon which to base a listing price.  Home valuation advice from Realtors® can be fraught with conflict of interest. The Realtor® is strongly motivated to get the seller’s signature on the listing (collecting a fee when and if the property sells) and the seller can be easily convinced that their home is worth more than actual current market value of similar homes. 

One of the most common problems seen in the real estate trade is “buying the listing”. What this means is that the agent that suggests the highest list price to a seller typically walks away with the listing. Once the Realtor® has the contract signed, the Realtor® then begins to work the price down to the point at which the property will sell.

“Buying the listing” occurs so often that every agency and Broker has a story to tell.  Our agency recently had firsthand experience with such a story, which involved another local Realtor® and seller.  This particular seller had asked several agents to provide them with a market value estimate for the home.   After doing a comparative analysis of the local Berkshire Market and previously sold homes similar to the seller’s the Harsch Associates agent had suggested its selling price would be approximately $320,000.

 A competing agent priced it substantially higher and obtained the listing at a starting price of $495,000. This seller became another unwitting victim of “buying the listing”. Both agents are very active in the community.   The difference in this transaction was the vanity pricing which netted a new listing for the agent who gave the highest valuation to the seller.

Once listed there followed a series of price adjustments over the course of the next 10 months.  The starting price of $495,000 reduced to $439,000 and then dropped again to $399,000, and finally down then down to $349,000.  At which point a buyer was found and the home was sold after 11 months at $316,800. 

Was a conflict of interest readily evident?  Was harm done related to the conflict of interest?  Yes it was.   Placing a time value on money reveals that at 1.5% carrying cost monthly for an unsold home and the additional 10 months on the market cost the seller $47,520.  That is if we value the home at the sale value of $316,800.  In fact, in this seller’s case, time was important.  The seller wanted a rapid sale for undisclosed reasons.   It is reasonable to argue that the seller lost on this sale related to the vanity or “buying the listing” price given by the agent who obtained the seller’s listing. 

In a recent article by Prudential Real Estate, the author concluded that an unsold home costs 1.5% of its value, per month to own. This includes all costs such as debt service (or the value of money), upkeep, insurance, taxes, etc.  This seller lost an extra eight months opportunity to sell because his house was overpriced at the outset.  

Overpricing cost the seller time and money because when homebuyers search for a Berkshire home, they tend to search within a selected price range.  Whether it is in Williamstown or Stockbridge, Lenox or Great Barrington pricing your home above what it is actually worth in the current Berkshires market means that your home will never appear in a net search result unless the buyer is willing to spend above the market value.  In this buyer’s market, the willingness to spend above value is very unlikely. 

Beware of an agent who suggests a price that far exceeds what another agent has quoted to you. 

Get and use a Berkshire County bank approved licensed appraiser and appraisal to utilize as your definitive guide to the loan value of your property.   Look at the local tax assessor’s valuation of your property.  Consider seriously selecting the agent whose opinion is closest to that of the appraiser and within a reasonable dollar number of the assessor’s valuation.    That Realtor® is more attuned to the market and more likely to sell your home in the shortest time for the best price.  If a bank loan falls through because your property is overpriced, you have lost valuable time, opportunity and money.

If you do decide to list with the agent that suggests the highest price, oblige them to indicate the period within which they will sell at the higher price.  Hold the agent to that promise by limiting the listing term.  If the agent in our example above who listed at $495,000 would have been obliged to place a time limit on the contract, the Realtor® might have considered pricing the listing within true market value.   The only winner in this particular situation was the Realtor® who “bought the listing” by feeding the seller a price, which seemed to be a potentially wonderful windfall waiting to happen which then turned into a tornado that cost the seller an additional $47,000 in lost carrying costs and valuable time without offers on the market.   Price to sell not to hold.   Harsch Associates Berkshire Real Estate Agency offers the most complete comparative market analysis and encourages the seller to seek an approved Berkshire home appraiser and read the entire appraisal report before discussing it with several agents.  Having a list of questions such as “how will you as an agent and your agency market my home”  “how often will you report to me the activity that my listing has received”  “will you do a custom video of my home and make it available to all potential buyers” and finally “in this market how long will it take to get offers and possible close on the sale of my home at this price.”    Selling your property is serious business.  Know the facts before you sign on the dotted line and make a commitment with your money and time. 

Paul Harsch, President of Harsch Association Berkshire Real Estate Agency

Williamstown MA,  www.harschrealestate.com

No Deal. Qualified Seller? Maybe Not.

Tuesday, April 27th, 2010

 

 

 

unqualified sellers

No Deal. Qualified Seller? Maybe Not. 

 The moments we remember fondly always involve wonderful times in life when everyone seems contented and things just hum along happily.  In real estate terms, good markets are when things are more or less “in balance.”  In the Berkshires, we remember this period as the all time great “seller’s market” and it occurred between 2002 and 2006.  Everyone was getting into real estate sales, investments and upgrading homes to flip.  The economy was sound (neither weak nor overheated) and unemployment was low.  An idyllic period we remember fondly.  Then came 2007 and unemployment rose as companies were sold, employment was shipped overseas and Berkshire property sales began a decline that continues even now in 2010.    

I write this at the end of April of 2010 and the economic pendulum has swung from a bustling economic boom so far, far downward in the direction of unemployment (Berkshire record numbers) and loss of portfolio values brought about the Wall Street debacles documented in the papers daily.  Jobs are as scarce as qualified buyers are.    Unfortunately, many of our Berkshire sellers are remembering, “the way we were.”

Selling a property in this buyers market requires a seller to focus on the “way we are” right now, right here, today.   Some sellers are not “qualified” to sell for one of several reasons. We typically think of qualifying buyers as buyers who can obtain a mortgage.   Brokers and Realtor® must often dig down into a seller’s unspoken words and feelings about the house sale to ascertain if a seller is qualified enough to sell their property.

To be fully “qualified”, a seller must meet several standards:

  1. The seller needs to have sufficient equity over and above their debt, to be able to sell in the open market or the sale becomes a short sale requiring bank approval, which is not easy to get.
  2. The seller needs to be informed and realistic about the current market conditions.  Like analyzing a stock portfolio, this will require shifting priorities and accepting the point at which the cost of keeping a house far outweighs the benefits of other current investments.  
  3. The seller needs to have a strong reason to have to or want to sell at today’s soft prices. Those who say they will sell if they get their price are an example of sellers not qualified.  A passive aggressive seller move toward a bank who threatens foreclosure may be setting a price so high the property cannot possibly achieve that return; however, the seller by listing the property will meet the qualification of the bank to show good faith in attempting a sale.
  4. The seller needs to demonstrate confidence in and cooperation with their Realtor who is out there where the tire rubber meets the road: We are in the market daily watching the listings, sales and closings of properties in the area and comparing those sold properties to the seller’s property.
  5. The seller must select a qualified agent to represent them.  Experience, diligence and skill really do make a difference and agents vary greatly in these qualities.  Finding a Realtor® with a proven record of accomplishment who exceeds at selling in a down market is about as easy as finding a needle in a haystack.   Unfortunately, the agent turnover rate in real estate can rival that of professional shark trainers.  A skilled fortunate few remain in the business for more than 5 years full time and even rarer is a 20-year veteran.  At times like this, you do not need a friend in real estate, you need an experienced businessperson with the wisdom to bring in the buyers and then negotiate a fair price without losing your sale.
  6. All involved on the sell side need to be of one mind. Unless all decision makers are of one mind, it is almost impossible to sell, especially when concessions are the norm in a buyers’ market.
  7. The property must be priced on the low side of realistic and must be displayed like a Ferrari auto on a luxury lot (shining, spotless, in perfect repair).
  8. Focusing on special features or attractions is even more important now.  Spectacular views and settings, a unique attribute such as exceptional energy efficiency, knock out decorating, or the “ideal floor plan” will go far in this competitive market. With so much to choose from, buyers naturally will have to find something especially appealing to be convinced to tour your house.

In sum, when times are challenging, simply putting property on the market does not begin to prove a seller’s qualifications. It takes skill and perception by both parties to determine the level of qualification of the seller. The highly “qualified sellers” are the ones who are walking away from the closing table this year, maybe not with glee, but with the comfort of knowing that they did well in an otherwise very challenging market and can now move on in their lives to the next phase.

What is equally important to recognize is that these sellers, rather than fight against the market, have been able to trade from one property to their next with relative ease since whatever they are purchasing will also be at a value relative to what they sold.  Experienced sailors say, “The tide raises and lowers ALL boats at the same time.”  The same is true of the housing market. 

Paul Harsch III is President of Harsch Associates Real Estate located in Williamstown MA, home of The Clark Art and Williams College.  Paul has been a Broker in the Berkshires for over 35 years and speaks from the experience of many real estate cycles.   Harsch Associates serves all of Berkshire County MA, Southern Vermont and New York State.  He can be reached at Paul@harschrealestate.com

 

 

 

 

Open the Floodgate_Lower the Price

Monday, April 26th, 2010

House in red

 

Open the Floodgate- Lower the Price

A recent article in the New York Times carried the title “Dry Your Eyes and Lower the Price.”  That is timely advice if your home is on the market this season.   Lots of tissue will come in handy as your realtor provides you with a market analysis, which may indicate that homes are selling from 9% to 13% below assessed value depending on location, condition and number of homes on the market in your neighborhood. 

 

Brokers around the nation are going deeper into the analysis of their local markets because of the number of homes on the market and the limited number of buyers available in the market.   This analysis ability can help you price your home in a range where the floodgates will open and you will begin receiving offers.  Building in price reductions is a good tactic if you actually want to sell.  

 

Listing a home for sale in this kind of market is dicey at best.  If you want a large return and have years to wait for that magical return, it might be advisable to hold out and wait for several years before you decide to sell.  If you intend to stand firm on your price regardless of the market you might question yourself and your family to see if you really want to spend the time and effort to clean, stage, and leave your home every time a “looker” comes through.  If you have many lookers and no “takers”, it is time to consider dropping the asking price a little at a time until you hit the floodgate level.   

 

Something to help with the tears and tissues?  Remember that holding onto a house costs you 1.5% of the value of the home every MONTH.   If you home is valued at $300,000 that would be $4500 per month.  If you hold onto you are determined to stick it out compare it to the stock market.   Would you do the same if your stock investment were losing $4500 per month?

 

Then stand back and sort through those offers and smile on your way to the bank.  You sold it!

Lottery Anyone? Predicting the Berkshire Housing Market.

Monday, April 26th, 2010

house money scale
Lottery Anyone? Predicting the Berkshire Housing Market .  
 
Predicting the right time to invest in the stock market and predicting the right time to buy low in the housing market carries the same “trying to catch a falling knife” safety advice.  Don’t. 

Let’s play “timing the market.”  You will need a friend to help you with this game.  Get a blank sheet of paper and a pencil.  As you begin to draw a line down the length of the paper, ask your friend to stop your line when they believe the market has hit bottom and will begin to rise.

Keep in mind that you can begin drawing the line back up at any time you choose.  Most likely, your friend will stop you when you start to draw the line back up the page.  However, they will have missed the “bottom” of the market since they had no way to predict when you would change the direction of your line from down to up.

Predicting when to buy, sell or hold is difficult for the experts and even more so for amateurs.

Why then are most financial advisers encouraging home purchases now?  Do they believe the bottom has been reached and costs of a home will now rise along with interest rates?  Who knows?  That being said, Market Watch.com provides several reasons as to why buying now is a good bet. 

Marketwatch.com  gives  5 excellent reasons to buy a home this year. First Affordability is better than ever.  The inventory of homes is large and you can be choosy and ask for improvements before signing on the dotted line.  If you choose to buy a new home, you can get huge discounts from builders who want to clear out their inventory.  Historically mortgage rates are at record low.  You can call the shots because you don’t need to buy and sellers know pre-approved buyers are hard to come by in this economy.   Need one more reason?   The interest on your already low interest loan is tax deductible.  And what about the tax rebate?  Our Associates at Harsch Real Estate look forward to helping you find your dream home when you feel the time is right.   413-458-5000

Is it still a man’s world? Buying a home in the Berkshires and Trends in Female home ownership for 2010 and Beyond

Monday, March 15th, 2010

Is it still a man’s world: Buying a home in the Berkshires and Trends in Female home ownership for 2010 and Beyond 

 

Nationally households headed by women have grown 400% since 1950.   The increased importance of women in real estate has produced both marketing by gender and paradoxically, marketing NOT by gender.  For example Home Depot had considered producing and makreting a line of “woman” tools, however gave up after women shared that they wanted quality tools as much a men and not smaller lighter and perceived less sturdy “woman” tools. 

Women are playing greater roles in the Berkshire Housing  market than ever before.  Social and economic trends such a delayed marriage, higher divorce rates, lower remarriage rates and increasing participation in the labor market have given single women a growing presence in the Berkshire housing market.  Fannie Mae estimates that this year there will be 31 million women-headed households in the U.S.  By 2050, women will outnumber men by 6.9 million per the U.S. Census. 

If you are woman looking to buy a home or condo in  the Berkshires these are few important options to investigate.

 Ask your Harsch Associates Berkshire Realtor® about finding sellers that will include “seller contributions” at closing such as paying settlement costs.

  • Grant programs from community groups, private organizations and government tend to favor women.  Search online for woman homebuyer grant programs.
  • Study your home buying options.  One of the most common barriers to women who want to purchase a home is “limited information about home buying”
  • Your Harsch Associates Berkshire Realtor will work to  understand your financial situation, family needs and can work with local financing institutions to get you into your new home.
  • Consider a condominium for your first home.  Recent studies suggest that single women currently make up approximately 47% of the condominium buyers in the United States. The reason is obvious if you think about it.  Condominiums are an increasingly popular choice for single women because of the various benefits such as convenience, security, and often virtually maintenance free living.  You will pay condominium association fees however you will receive many amenities that might not be possible to purchase when you begin making house payments.  These include such items as a pool, tennis court, common rooms, and off street parking facilities. 
  • For more information about women and home buying trends investigate these key search words online _ female home ownership, single woman and home ownership, women and condominiums, housing trends and women and financing a home for women

Good Reasons for Lowering Your Price

Tuesday, March 2nd, 2010

Housing prices are, as economists say, “sticky downward.” While stock prices can plunge dramatically in a single day,

Good Reasons to Drop your Price

Good Reasons to Drop your Price

housing prices sometimes take years before they fall enough to restore the balance between supply and demand.

Don’t blame buyers for this. They always adjust quite readily to the new reality of lower housing prices. Sellers, though, are slow to come around. And so we must wait while they gradually whittle their prices down to the new levels. Here are some reasons you should consider cutting yours right away:

1. It’s often best to get out of a weak or falling market as early as possible.

In 2007 the median price of a home in the Berkshires fell from $210,000 to $188,750—a little over -10%. In 2009 so far the median selling price has dropped by -7.28% to $175,000.  Smart sellers were quick to lower their prices so they could get out early.

2.  There’s a risk that prices could fall much lower.

A fair percentage of homeowners may be “underwater” in that they owe more than their properties are now worth; some may even be facing foreclosure in the near future. Foreclosures depress property values, since the homes are often sold at bargain prices.

3. Statistics that are showing only modest declines in median sales prices may be misleading.

Some sellers (including developers/”flippers”) have been offering generous incentives and credits to sell their homes. So while the statistics are showing modest drops in sales prices, the amounts sellers are actually netting have been dropping by somewhat more.

Median sales prices can also be misleading if certain kinds of homes are selling better than others. It’s even possible for the median sales price in an area to rise at the same time that individual home prices are falling dramatically.

Here’s an extreme example of how this could happen: Suppose that there are just two kinds of properties in the town of Homesville: luxury homes and starter homes. In 2007, 20 luxury homes were sold for $800,000 each and 30 starter homes were sold for $400,000 each. In 2009, 15 luxury homes were sold for $600,000 each and 10 starter homes were sold for $300,000 each. Even though the prices of all homes in Homesville dropped by 25% between 2007 and 2009, the median sales price rose from $400,000 to $600,000.

4. It’s a great time to buy.

Your house may have dropped by 15%, but so has your replacement house. If you’re selling in order to trade up, this market may be working in your favor.

5. The amount you’re “bleeding” each month may be larger than you think.

Say you have a vacant $500,000 home with a $400,000 mortgage and monthly payments of $2,400 a month. You may think it’s only costing you $2,400 a month to wait for a buyer. Not so. You’re also missing out on an opportunity to earn interest on your $100,000 of equity. If the interest rate is 6%, you’re losing an additional $500 a month. Of course this analysis doesn’t even take in to account costs of upkeep, utilities, taxes, insurance etc.

6.  Some real estate agents themselves are out of touch with the market

Some inexperienced or even unethical real estate agents suggest unrealistic prices to sellers to either get the listing in the first place or out of lack of due diligence or experience. Those listed properties then languish on the market. Sooner or later, those listings expire and the seller moves to another agency or the listing agent is recommending a series of price reductions. Time has been lost and so has the opportunity to sell during the initial rush when a property is first placed on the market. In either case, its an expensive mistake.

7. The asking prices of neighboring properties may be giving you an inflated sense of your home’s worth.

In a falling market, many sellers (and agents too) have unrealistic expectations of what their homes are worth. Just because a neighbor with an similar home is asking $600,000 doesn’t mean that your house is worth $600,000. The ultimate selling price for the neighbor’s house might end up being only $500,000 and if you price your home according to the neighbor’s asking price you could well have missed an entire selling season not to mention the added carrying costs and inconvenience of a long delay in your plans.

Berkshires’ Williamstown emphasizes Livability

Tuesday, March 2nd, 2010
Williamstown in the Berkshires is renowned for Livabilty

Williamstown in the Berkshires is renowned for Livabilty

Putting an Accent on Livability This Berkshires Community Is Much More Than a College TownBy KATHLEEN MITCHELL  
Peter Fohlin says Williamstown offers plenty of arts and recreation options without the traffic and bustle of a large city.  
 
 
In 2007, Money magazine named Williamstown as a contender for one of the best 100 places to live in the U.S., an honor that speaks to how much this Northern Berkshires community has going for it.The town earns high marks because it is home to Williams College, which has consistently been ranked as the top small liberal-arts college in the country, but also home to the prestigious Sterling and Francine Clark Art Institute, which sits a short distance from downtown and attracts tourists from around the world, and also the Tony Award-winning Williamstown Theatre Festival, which runs every July and August.“This is one of the easiest towns in Massachusetts to live in,” said Town Manager Peter Fohlin. “We don’t have choking traffic, there’s lots of outdoor recreation space, and we have a great variety of restaurants and entertainment. The college provides a great deal of opportunity for people to take part in cultural events, music, and drama, and we are centrally located — just a few hours from Boston, New York and Montreal. Where else would you want to live?”Williams College is the predominant physical presence downtown, and its buildings line both sides of the main street. But they are punctuated by shops, businesses, and eateries, and the college and the town share a peaceful and mutually beneficial coexistence.In this, the latest installment of its Community Profile series, BusinessWest takes a close look at what makes Williamstown such a desirable place to live, and also at two exciting new multi-million-dollar projects which will provide new office space, luxury condominiums, and a rebirth of the town’s noteworthy Purple Pub.Town and GownOriginally called West Hoosac, the area was incorporated in 1765 as Williamstown after Ephraim Williams, who was killed in the French and Indian War, bequeathed a significant sum to the town on the condition that it was named after him.

He started a free school that opened in 1791 and was named Williams College in 1793. Today, that early learning institution plays a vital role in the town’s economic and geographic profile.

“We don’t have tracts of land suitable for large-scale industry,” Fohlin explained. “The industrial space we have is intensely developed, and the downtown is occupied largely by Williams College. Its academic and athletic facilities are all downtown, with retail and commercial businesses sprinkled along the campus. So there is no identifiable boundary between the campus and the community. You don’t cross a line on campus or off campus.”

Even the college offices are housed in rented spaces in commercial buildings on Spring Street, which is where the hub and bustle of the town is found. “There is nothing on Main Street. It runs through the center of town, and the town’s businesses and campus buildings are all on the veins of side streets with a fair number of residences sprinkled in,” Fohlin said.

As a result, the downtown area is very compact and an attractive draw for people who want to be park their cars and walk wherever they need to go. “It’s easy to find a place to own or rent where you can walk to restaurants, the movie theater, a golf course, or the college’s cultural and sporting events,” said Fohlin.

Since townsfolk and college students intermingle, the town and college have established and maintain an excellent working relationship. “We have a peaceful and amicable relationship with the students,” he continued.

There are seven crosswalks on Main Street, and Fohlin says officials monitor the status of the town/gown relationship by the number of hand waves exchanged between students and drivers at the crosswalks. “I sent a letter to the college about how polite the students are this year,” he said.

The college, the community’s largest employer, works hand-in-hand with town officials and has consistently provided support to the community. “In 2002, they donated $1.5 million toward the construction of a new elementary school,” Fohlin said. “They have endowed a staff position at the high school in language arts and continuously donate computers and furniture to the school. We have a continued collaboration over sidewalk maintenance and the roads where the college and the town intersect, and we try to identify mutually beneficial projects, because the dividing line between the town and college is imperceptible.”

As a result, the two entities work out a cost-sharing agreement for infrastructure projects. Last year the town increased the size of its municipal parking lot by 50%. The project cost $400,000, and the college managed it and paid for it. “Their students use the parking and they are part of our community,” said Fohlin.

Even the Town Hall history is associated with the college. It once operated as a fraternity house and Fohlin said every year former students who once lived in it come back to walk its halls.

Going Up

There isn’t much room in the town for new development. So growth comes from the redevelopment of existing properties. At present, there are only two projects that fall into that category. Both are former restaurants, with one located on Route 2 and the other on Route 7. However, it’s unlikely they will open again as eateries.

“The restaurant market in Williamstown is pretty much shaken out,” Fohlin explained. “We have pub-style, Greek, Italian, Mexican, American steaks, chops, and fish. There’s a lot of diversity, and most of them have been in business from 10 to 50 years. We are right-sized in the restaurant business.”

The town doesn’t have any fast-food restaurants or big-box stores, but Fohlin said there is no need for them, as they can be found in nearby North Adams. “Wal-Mart just built a Superstore there and has other stores in Pittsfield and in Bennington, Vt.,” he said.

The town has a single-screen movie theater, and although it’s small, it’s located on Spring Street. “People can walk to Spring Street, eat there, go the movies, and even cross between crosswalks without any problems. There is also a marvelous coexistence between vehicles and pedestrians,” Fohlin said.

A major redevelopment project on Spring Street, which Fohlin calls “exciting,” is expected to be completed in January. “The former Hopkins Furniture Store is being rebuilt as an environmentally friendly LEED-certified building,” he said. “There will be retail shops on the first floor, including Nature’s Plaza, an outerware and outdoor activity store which is moving from Bennington, Vt.

The $4 million project was initiated by Mark Paresky, a major Spring Street landlord, who gutted the building and rebuilt it. The LEED gold status he is seeking requires high-efficiency heating and cooling mechanisms and materials, insulation, and the use of recycled and regional products wherever possible.

The first floor will also house a resurrection of the town’s famous Purple Pub, which burned down about two years ago.

“It was a town institution frequented by generations of college students,” Fohlin said. “Everyone is looking forward to it coming back. It’s a great social gathering place. Williamstown without the Purple Pub is like a flagpole without a flag. It’s not Williamstown if the Purple Pub is not open.” The restaurant will be housed in the new back addition to the building and will feature folding doors that will open onto a small patio for outdoor dining in good weather.

The 63,000-square-foot structure’s second, third, and fourth floors will be professional office space and will include a ‘penthouse’ office on top of the original building with an open deck above the third floor. “The building will house the first new Class A office space built in northern Berkshire County in the last 30 years,” Fohlin said.

Another project that is generating excitement is the conversion of the former General Cable Mills into a mixed-income residential community. The mills’ history of making wire and cable dates back to just after the Civil War, and their renovation will be a dramatic addition to the town.

The mills run along the Green River on Water Street. The first phase of the project involves the rehabilitation of the three existing mill buildings into 61 luxury condominiums. Fohlin said 12 of the units will be reserved for people who make 80% percent of the median income or less and will be priced according to their incomes, while the other 49 will range in price from $300,000 to $700,000. Occupancy of the first phase is planned for the fall of 2010.

The second phase will be the construction of 21 new riverfront townhouses and duplexes, while the final phase of the project will be the development of a 30,000-square-foot parcel on the southern end of the property, which is zoned for business. The use of that area has not yet been determined.

General Cable Company manufactured wire and cable in the buildings until the early 1990s. Before being closed for redevelopment, it served as incubator space for small technology and investment companies.

“General Cable mills sit right on the edge of the downtown area,” Fohlin said. “It would have been a disaster to have an abandoned mill there. To add housing stock where people can walk to restaurants, movies, and the golf course is a pretty cool thing, and adding 61 units when the economy is in such difficult shape is something to feel good about.”

Williamstown is known as ‘Town Beautiful,’ and its bucolic landscape is part of its attraction. “The town is surrounded by mountains on all sides. One of the most spectacular sites is when it snows in the winter at the high elevations. It’s like someone took a paintbrush and put a white line around the town. It’s like we are living in a bowl,” Fohlin said. “Above 1,300 feet, there are no buildings, which reduces the area that can be built. Water, sewer, and natural gas are all limited to the greater downtown area.”

Although many people love living downtown, the town offers a variety of residential options. People who want more privacy live in south Williamstown. The majority of that area contains farmland and converted farmland, with homes that range in price from about $1 million to $10 million.

On the other end of the spectrum, there are two mobile-home communities, which Fohlin is proud of, as they make it possible for people of all income levels to enjoy the town. One community has about 100 homes, while the other houses about 40 units.

New construction is also ongoing. “We have a steady homebuilding business here, especially for second homes,” Fohlin said. “We have 11 new homes under construction right now. This is a highly desirable community because of the quality of our public schools and municipal services. It attracts people who move here and causes parents to bring their children here under school choice.”

The Big Picture

Fohlin said that, in addition to being a college town, Williamstown is known for its culture. “The Sterling and Francine Clark Art Institute is world-famous. It was built here in the 1950s by the Clark family as a safe depository for their art collection in the event of a nuclear war with Russia,” Fohlin said. “After they passed away, it was turned into a public institution of world renown. People from all over the world come here to see the Clark art collection.”

The museum is in the beginning stages of a $25 million expansion project. Pritzker Prize-winning architect Tadao Ando and landscape architects Reed Hilderbrand Associates will design a campus plan that enhances the institute’s setting, expands the facilities for its public and academic programs, and reconfigures its galleries to broaden the ways in which visitors experience works of art.

Tourists frequent the town in every season. “In the summer we host the Williamstown Theater Festival and the Williamstown Film Festival. Conferences are also held at Williams College by the Massachusetts Teacher’s Assoc. and smaller organizations,” Fohlin said.

The Williams Inn, a dozen or so motels, and a half-dozen bed and breakfasts house the tourists, who frequent Williamstown in the fall for the foliage and in the winter for the nearby ski resorts.

“The college is our economic flywheel, and tourism is on top of that wheel. It’s what makes our economy go,” Fohlin explained, adding many people visit the town in tour buses.

Tourists also visit the town to enjoy canoeing on the Hoosic River and the Rural Land Foundation’s network of hiking trails.

Fohlin sees the town as a great place to visit and an even better place to take up residence. “Everyone has to live somewhere, and anybody who can should live in Williamstown. It’s a great town,” Fohlin said. “I’ve always said Massachusetts gets better the farther west you go. And if you can’t find what you want in Williamstown, you don’t have to travel far to find it.”

Just a few of the reasons why this college town receives high grades for its livability and should continue to do so in years to come.

Pending Home Sales Down from Surge but Higher than a Year Ago

Tuesday, March 2nd, 2010

Berkshire homeowners, buyers and sellers are very much aware of the trend in home sales described in the article below.  Berkshire home sales have trended downward for months and 2010 seems to indicate that this downward trend in Berkshire County is leveling off.  Here at Harsch we evaluate all trends related to Berkshire home buyers and home sellers for the best pricing and marketing strategy.  Located in Williamstown for over 35 years we are one of the oldest Berkshire Real Estate service agencies in this region.  House and Keys in Female Hands

Washington, January 05, 2010

Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.

Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago. In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008. Pending home sales in the South fell 15.0 percent to an index of 97.8, but are 14.7 percent higher than a year ago. In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.

Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.

“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.

Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Adaptive Reuse: Building on Tradition

Tuesday, March 2nd, 2010
Turning industrial buildings into Home Sweet Adaptive Home

Turning industrial buildings into Home Sweet Adaptive Home

Adaptive Reuse is a process that adapts buildings for new uses while retaining their historic features.  The simplest example of architectural adaptive reuse is the antique barn resurrected as a unique and stunning new residential home.   Initially architects and structural engineers evaluate foundations, beams, columns and flooring to determine the stability of the building.  Once it is determined that the fundamental structure is sound the process of renovation begins.

The trend of adaptive reuse has caught on with a passion in larger metropolitan areas such as Boston, New York, Chicago and Atlanta. An outstanding example is   Chicago Soldier Field,   the Chicago Bears’ historic stadium.  The ability to reuse this site and adapt it to the requirements of a modern professional football stadium is impressive.    The Power House  is a fine example of adaptive reuse of a turn of the century steam plant located in Long Island City, New York.   Massachusetts boasts many adaptive reuse projects including Old City Hall,  The Apartments at Coolidge School in Watertown, MA, and The Atlas Lofts

The last two adaptive reuse projects are part of the Mitchell Properties LLC portfolio of adaptive reuse projects.  Their newest project  coming online in 2010 is located in Williamstown MA.  Cable Mills Condominiums will be a community located in the Berkshires with stunning views of river, mountains and Williamstown.  A short two minute walk to the Taconic Golf Club, the Village center and Williams College are a few of the amenities that will make this development truly unique.  Berkshire Living Urban Style describes Cable Mills Condominiums.  The condominium residences comprise the style of the Boston Loft with the visual and sensual beauty of the Berkshires. 

Harsch Associates Real Estate a well know Berkshire Real Estate Brokerage firm is now taking reservations for Cable Mills Condominiums.  Whether a second home, a primary home, or an investment in the Berkshires you will appreciate the easy lifestyle that Cable Mills Condominiums offers.  New wine, old bottle and vintage perfection.

Berkshire Real Estate: Buy, Sell, or Hold?

Friday, January 29th, 2010
What Road will Berkshires Real Estate take?

What Road will Berkshire Real Estate take?

I recently spent a sunny afternoon looking back over 23 years of statistics for the Berkshire Housing Market.  I was seeking some indication of what is in store for the Northern Berkshire Housing Market in 2010.  However, as Yogi Bera once said “predictions are difficult to make, especially about the future.”

That verity aside, I do believe that statistics provide some useful assistance to us as we look ahead, and so does information about the state of the general economy, historical trends, and so forth. Taking all of this in to account, it is my expectation that the level of inventory will remain at higher average levels for some time to come and will take longer to absorb than the past, leading to longer days on the market on average as well.

These changes will not only effect Berkshire real estate, but the industry as a whole.

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Dear Paul,
Selling your home of 29 years can be quite a task! Luckily we had you to help with the sale. I highly recommend your agency. You were forthright, honest, reliable and persistent. Frankly, not all Realtors could stand up to these qualities.
There is no doubt in my mind that if there was a way for the sale of our farm to happen and in the special time frame we needed, that you, Paul, were going to make it happen.

Best regards and many thanks to you and all your staff.

Sincerely,
Virginia Skorupski