Winter in the Berkshires

Berkshire County entertainment  moves to warmer indoor sites in winter and continues uninterrupted in January and February.   Berkshire County is a winter wonderland  during snow ski season.  But our Berkshire Winter entertainment goes way beyond the  sleek slopes and downhill ski runs.  We are sharing this New York Times Article written by columnist Mark Vanhoenacker.  You can read the entire article by clicking the link at the bottom of our page which will take you to the New York Times website.  Wishing you lots of snow and warm fires during this winter season!

For many, the Berkshire Mountains are inimitably tied to one season: summer, when the area’s tandem blooms of high culture and cherished New England countryside draw a devoted global audience to this sparsely populated corner of Massachusetts.

What do you do to earn your fee?

You have decided to list your Berkshire property with a discount agency or perhaps sell your Berkshire County property on a “for sale by owner” website. You know that Real Estate Agents  will usually charge a flat fee percentage of the sale price for selling your house. You believe that Realtors® get paid too much for doing too little.  We understand.  To help you know where your fee is going  we have compiled a list of activities that every Harsch Associates Realtor® performs for their clients whether buyers or sellers.

In fact we list 55 activities that are routinely done by your Harsch Associates’ Realtor® (H.A.) for every buyer and seller. A little more research would turn up well over 100 tasks that your Realtor® should perform for you in return for their fee. We think once you know the facts you will agree that the professional fee for selling your home is very reasonable.

Before your H.A. Realtor® lists your property on the local Berkshire County Multiple Listing service the Realtor® researches current properties on the market comparable to yours, looks at your towns’ recent sales in the MLS, looks at property tax rolls, verifies county public property records, completes a comparative market analysis, discusses marketing planning and strategies, explains the listing contract, disclosures and addendums, completes a listing presentation, presents the required state forms for signatures, and assesses the curb appeal of the home. All of these things occur before you even agree to list your home with the agent. Those are 10 tasks that must be completed to give you an idea of the value of your home. An top agent will also ask that you get a professional appraisal of your home before you decide to list. Keep in mind that if you do not list your property with an agent you speak with then all of these Realtor® tasks are completed without compensation.

Twenty two more tasks begin and continue after you list your property with a Harsch Associates Realtor® and they include: reviewing the title to your property, getting a plat map from the local public offices, reviewing any homeowner association fees and bylaws, reviewing lead based paint status, obtaining the owner statement of property condition, completing the forms required by the MLS system to list your property, completing a brochure to present to buyers, discussing inclusions and exclusions involved in the sale, compiling a list of needed repairs, making recommendations for improving the home to impress buyers, obtaining average electric and fuel costs per year, obtaining copies of keys to the property, completing a file with legal paperwork required by the state, discussing the listing with the Broker, measuring the rooms, verifying additional amenities and special fixtures or furnishings that add to the value of the home, photographing the interior and exterior of the home, preparing a video presentation virtual tour of the home, adding the home to the agency’s online website, adding the home to many syndication sites and creating written print ads.

Twenty three more tasks begin after the home is placed on the market. Now comes the matter of showing the home to its best advantage and screening buyers.

This means multiple car trips to and from the home to be present when a potential buyer tours the house to protect the sellers interests, multiple trips to and from the home to meet with other Realtors® who bring buyers, answering multiple phone inquiries, checking on the property if it is unoccupied on a regular basis, notifying the owner of any concerns or issues discussed by the potential buyers, receiving offers of purchases, mediating offers to purchase, delivering the sellers disclosure to the potential buyer, obtaining a pre-qualification letter from the buyers bank, delivering purchase and sales agreements to potential buyers and owners and co-brokers, confirming and handling deposits and escrow accounts, updating the MLS listing to pending if the seller approves the offer, arranging for Title V reports, being present at the inspection of the home by the buyers’ inspection agent, following up with the loan processing, reviewing the home inspector’s report for errors, verifying all inspection and contingency clauses in the purchase and sales agreements, attending appraiser appointments and reviewing the appraisal document, communicating with lawyers and lenders while making every effort to ensure that “no surprises” occur at or before the closing.

We are at 55 tasks for each and every home listed by the Harsch Associates Realtor® and we haven’t even begun to discuss handling referrals, continuing education to keep current on state laws regarding real estate, daily review of the MLS to seek homes for buyer clients, working the community to foster good will, covering for in house agents when they are on vacation or out of town, writing up offers of purchase for buyer clients, attending closings, updating websites, calling other agents for feedback on your home, handling rescission of offers, car maintenance, continual e-mail and voice mail return calls, counseling buyers and seller through the long process of the first offer to the closing date, office meetings, open houses, and handling negotiations (16 additional tasks).

Incredible amounts of work are being done by your Harsch Associate Realtor® behind the scenes as they present a calm and professional demeanor to clients and potential buyers. As an American author once said  “always behave like a duck, calm and unruffled on the surface but paddling like the devil under the surface.” From the initial listing presentation until the day of closing and handing you the check your Harsch Associates Realtor® is there paddling like the devil to sell your home. Another fact to consider is that if you accept a lower sale price your listing agent’s fee is also accepting lowered fee because their fee is tied to the amount the Berkshire County home actually sells for.

These tasks are just a few of the activities included in the professional fee you pay your Harsch Associates Realtor® at the closing. If your home does not sell the Realtor® receives no compensation for time and effort since no fee is paid upfront.  We believe that our agents are the best at selling Berkshire County Real Estate.   To discuss listing your home this 2012 spring season call a Harsch Associates Realtor® today to get the process started. 413-458-5000. We work haard for you from beginning task to handing over the key to the new owner.

This is not your father's housing market... attracting buyers

Today’s buyer-take-all Berkshire County property bonanza is a boon for fence-sitters and buyers with great credit and deep pockets. But Williamstown MA home sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.

For Williamstown or Berkshire County MA home sellers who have never been through the process before, it’s a different world. One where the value of the house isn’t measured in the profit made on the sale, but by the enjoyment the owners had from living in the home.

Here are seven things experienced Berkshire County home sellers would tell you, if they could.

We have some Berkshires Advice.  Go North!  There is GOLD in those hills!  Northern Berkshire County is a golden treasure chest of great home buys!

Friends Find It Faster- Click to Like

Summer in the Berkshires

“Go North” was once the resounding cry of the Alaskan Gold Rush days.  Gold was to be found in the Alaskan Mountains. The same is true of  our Northern Berkshire properties and towns.  When you are willing to drive just a little farther you find some of the best Home buys in the Berkshires.   North Adams Real Estate, Williamstown Real Estate and Adams Real Estate along with Hancock and Lanesborough Real Estate offers  some of the most affordable and some for the most enjoyable locations in New England. 

Find your PEACE of the Berkshires here in the northern part of Berkshire County MA along with one of the most beautiful and serene environments in New England.  To get our latest news and laugh at our office dog telling about his work day visit our Facebook page by clicking the Icon.

Do you want to buy a home but feel you just can’t right now?  Do you have a home that has been for sale way too long?  Then take a short minute and read our blog on how to achieve the goal of buying a home in a great market or selling your home for the best price.  Read more….

We offer three more virtual tours this week.  Our tours feature commercial property and homes in North Adams.  Take a moment, sit back and relax and watch with us as we walk through some very affordable business opportunities and home getaways in the Berkshires.

Are you an entrepreneur who sees opportunity everywhere?  Do you need a great place to start a business whether a net business or professional services? 

North Adams is a thriving community where MASS MOCA and MCLA along with Berkshire Community College and Northern Berkshire Healthcare reside. 

We have a great Victorian circa 1901 Home that is now a Berkshire commercial property available for a great price.  Take a Virtual Tour Now.

Are you just starting out and want your own North Adams home?  You are unique and your decorating personality is just as unique.  Your comfort zone should most certainly be your home and we have several great starter homes where you can begin the journey to creating your own “take a breath, you are home” story.   Come to Massachusetts Ave, North Adams

Are you looking for summer Berkshire home to escape the heat  and humidity?  Want to come home to the Berkshire County MA mountains for the summertime where the living is easy and you can go to a different cultural event every night or weekend all summer long and come home to relax by your pool in the evenings for less than $330,000? Then tour this home Swimming Pool, Deck and more delights!

Do you want lots of room for lots of family or just the herd of pets you love and care for?  Then this North Adams MA home is your dream come true for a very UNBELIEVABLE price!  Previsit this great buy

We hope you have enjoyed your Northern Berkshire properties tours and will call us at 413-458-5000 to make offers or make appointments to view other properties in the Northern Berkshires.  Shop our full service website and save some favorite homes.  We look forward to providing you with exceptional service!

35 years of Excellent Service in the Berkshires

Best Regards!

The Harsch Team of Real Estate Agents

Make an Offer- I'll Consider it- 3 Magic Words

Is there a rule of thumb in the Berkshire Real Estate  market for how much below the asking pricea potential buyer should initially offer for a listing? 10 percent below? 20 percent below?

This seems like an easy question, but unfortunately quick fix answers will  not work in the Williamstown MA real estate market.   The magic words to begin the process of negotiation are “make an offer.” The truth is that there will be number of factors at play you are not aware of , no matter where in Berkshire County or Williamstown  MA the home is located, no matter who the seller is and no matter who the buyer is.  Getting to the bargaining table is a poker game in the beginning.  Throwing down your cards and walking away means you lose without a doubt.  Staying in the game means you may sell your home or buy the one you want for a great price.

For a seller the three magic words are “I’ll Consider it.”    Consideration is the beginning of negotiation.  Negotiation is a poker game taken to the highest level.  Taking a hard line on any offer is unwise as another offer may not appears for many years.  A Williamstown MA seller is competing with thousands of homes suddenly available in the Berkshires.  Historically during the period of 2004-2007 Berkshire County and Williamstown Real Estate were undoubtedly  HOT second home housing markets and Western MA, Berkshire County was the place to be for executives, stockbrokers, and those in the upper income brackets who lived in New York or Boston and summered in the Berkshires.  The Stock Market was hot, the Real Estate Bubble was growing, fixing and flipping properties was a viable career option for college graduates in mid 2000′s.  Wages and bonuses were high and America was coasting along a financial pinnacle path that has since become unsustainable. 

The vital and most important thing to remember is that the simple rules of supply and demand usually prevail. If it’s an attractive Williamstown MA property at a a below market price, there will be competition for the property.  Competition is the Williamstown Ma Home Seller’s BBF (best friend forever).   Pricing a minimum of 10% lower than your neighbors means your property will get rapid attention and probably sell quickly and you will get closer to the initial asking price.

A new home to the Williamstown MA housing market with a price 10% below its Comparative Market Value ( new=on the market for less than two weeks) is likely to get multiple offers if it is attractive and the sellers are willing to entertain any and all offers.  Keep in mind we stated “entertain” which does not mean accept.  This is not the time to take offense at low and outrageous offers.  It is the time to use the three magic words “I’ll consider it.”  

If  the Williamstown MA property has been on the market at the same price for two months or longer, the uninformed buyer’s agent will most likely recommend that an offer of 3-5% below the asking price be offerred.  We recommend to our buyers they consider offering 8 to 10% below asking not unusual for a market where thousands of Berkshire Properties are for sale.   Even if the property is great often we can spend a few hours crunching numbers and recent sales after which we can show hard data supporting a much lower price.  Keep in mind this is the advice a buyer’s agent is giving to their client.  You as a seller now have an insider’s peak into how the offer process works.   

This is the point in the transaction process when the seller’s agent and the seller will be called upon to use all their negotiating and social skills to reel in the buyer to get to the negotiating table.  This is the time for a level head and cool poker face and a willingness to “consider it.”  Keep in mind “consider it” does not mean acceptanceof a ridiculous offer.  “Consider it’  means only that “you will think about it and get back to the potential buyer and their agent”.  Think carefully about what you are willing to give to the buyer in lieu of lowering the price and what you can give to the buyer to make the property worth more to the buyer.  Using a skilled seller representative will be the vital key at this point in the process.  You are fishing for a buyer and you will need all the skill you and your agent possess to land a qualified buyer and then get them to the closing table.

The worst thing that can happen is the buyer will say no to your first counter offer.  The best that can happen is the buyer will negotiate further up than he or she would have liked and you’ll increase your selling margin.  Either way the chances of a sale increase the more negotiating skills the seller’s agent has.   The take away from this conversation if you remember nothing else is to repeat the three magic words before you respond to any offer for your property “I’ll consider it.”  And for any buyer the magic words remain “make an offer.”

Anyone in Williamstown or Berkshire County who expects to collect a fee for selling real estate in Massachusetts MUST be Licensed in Massachusetts.  A large percentage of real estate licensees are members of the National Association of Realtors (registered trademark), the trade organization of the profession.  Only members of the National Association of Realtors and the state and local Boards may participate in Multiple Listing Service and the Information Data Exchange.

Licensees must assist the public in one of the following ways in Massachusetts: Buyer Agency, Seller Agency, or Facilitation.  It is very common for clients to sign a working agreement with a licensed real estate agent and under law, licensed real estate agents must provide a disclosure form to members of the public with whom then intend to work upon first meeting to discuss a property or upon first meeting to discuss creating a working relationship.

Agents or those real estate licensees procurred as Buyer’s agents or Seller’s Agents have a duty of ABSOLUTE faith to the lawful instructions of their Principals (similar to employer in some ways).  The licensee must follow strictly the  guidance of the client and advocate only for the client’s interests above and beyond all others.  Creating an agency relationship with a licensee also creates what is called vicarious liability for the principal (you the client).   You are responsible by virtue of creating an agency relationship for what your Real Estate Agent does on your behalf.  Should your agent inadvertently state a false fact or otherwise perform a misdeed in the transaction then you are responsible for the resulting liability.   You may also be responsible for other agents if your own agent assigns “showings” to another agent in the firm during the time you have agreed to agency representation.   You should read and understand fully any document your agent asks you to sign.  If you are unsure of the liability involved consult with your attorney before signing an agreement.

Facilitation brokerage does not create an “Agency” relationship and thus removes the risk of vicarious liability from the client.   In the facilitation brokerage agreement the Real Estate Agent has a duty to treat both parties (buyer and seller) fairly and equally providing complete disclosure to both parties involved in a real estate transaction.  The information provided to both  parties allows the clients to make decisions based on full and equal disclosure.  The real estate agent acting as a facilitator has the same  legal obligation to the client in regards to trustworthiness, accountability for all funds, and full disclosure of known facts as any other licensee in the State of Massachusetts.

The majority of buyers and sellers want competent assistance with what is a relatively complex transaction of considerable financial importance in their lives.   A seller wants to sell their property for the best price and a buyer wants to buy a property for the best price.   Both the buyer and seller are working toward the same goal.  A facilitation agreement allows full disclosure to both parties of the same information, requires that the facilitator be neutral in the transaction, and that every effort is made to bring all parties to the closing table in a mutually agreed upon and satisfying price for both seller and buyer.   No adversarial activity is required or encouraged in a facilitation transaction, in fact the goal of facilitation is  closing the deal with EVERYONE content that the best outcome has been achieved.

Berkshire Real Estate in the Springtime

Spring has officially sprung and mud season is upon the Berkshires.  Williamstown, Stockbridge, Lenox, Great Barrington,  and the Berkshires in general are thawing and the smell of fresh green is in the air.  Shopping for a new nest is what spring is all about.  Sunshine and warm weather causes buyers to feel that  same longing for a new start.  Traditionally spring has been the peak season for putting a home on the real estate market.  Why sell in the your Berkshires home in the springtime? 

We have seven good reasons why this is the season to sell your Berkshires real estate:

S=  Sprucing up the exterior and increasing curb value is much easier during the spring season when plants begin to sprout, snow has melted and the siding, porches and walkways of the home can be power washed and scrubbed.  Curb appeal is the number one hook to get buyers inside to look at your home.

P= Placing your real estate offering on the MLS and every site where properties are offered before the competition gets into the ballgame.  Get your offering out there early and of course Price based on a the market in your area-  get that comparative market analysis from your agent and hire that real estate appraiser to give you the write up professionally on the current market value of your home.

R= Ready, set, GO!  Spring is the perfect time to increase the square footage perception of your home without spending a dime on construction.  Clean out that garage, basement and attic to give your buyers the impression your home is much larger than it appears from the outside.  Spring cleaning, tag sales and donations to local charities all go together nicely when the weather warms up.

I= Improve your Instant Appeal!   A coat of neutral white paint will go a long way toward making your home appear fresh and inviting.  While you are at it consider replacing that old carpet with some basic neutral color and voila ! Instant appeal!

N= New Buyers.  Buyers have cabin fever from the long winter inside and are ready get out and about into the sunshine.  Make your home the sunniest view on your street by placing some spring time yello pansies or other yellow cool weather plants in hanging pots on the front porch.

G=Great Marketing will sell your home faster than a for sale by owner sign in the front yard.  Choose an agency with local and Internet presence.  When you interview your real estate agents ask about their website, how many hits do they get a week, how many of their buyers are from the surrounding area and how many come from outside of the area.   Ask the agent how they plan to make sure your home gets seen in the most places.  Ask them to take you on a tour of their website and share with your how many homes they have sold in the past two years.

These are just a few reason why spring is a great time to get Berkshire home on the market.  Here at Harsch Associates Berkshire Real Estate we strive to be the top Real Estate Website in Berkshire County.  We attract buyers from New York, and all through New England with some as far away as Los Angeles and Miami.  Harsch is your source for real estate solutions, service and stability in the Berkshires.

Williamstown CMA

A comparative Market Value Analysis or “CMA” in Realtor speak is a Broker price opinion based on the current real estate Market in Williamstown or the  Berkshires or your real estate location.  “Your location” is the key word here.  The same home in Palm Springs Florida may sell for far more than a similar home in Hancock MA.   Location  is everything in the real estate market.  While homes in the Berkshires and Williamstown, Stockbridge, Lenox, and Great Barrington.  Key points to keep in mind when you imagine how much your house is worth are

• How many jobs does your town area offer- right now
• What are the demographics of the community-  young families, retirees, and careerists
• How many homes are on the market right now

What is the least important fact when you imagine how much your home is worth?

• Current listing price of homes in your neighborhood (meaning the how much is the “for sale “amount on homes still for sale- which can be 8-36% higher than what the home will eventually sell for)
• What you paid for your home, what improvements you made when you bought the home

What is the most important piece of information to keep in mind when you imagine how much your home is worth?

• What have homes sold for in your neighborhood within the past 12 months (not in 2007 when real estate experts claim the housing market bubble was a the top of the boom)

The four values that a Broker or professional may discuss with you…

• Market Value- the most probable price that a property should sell for in the current competitive and open market.  Market value depends on what a buyer is willing to pay in the current real estate market.   Suppose you owned a BMW car lot with 15 used BMW vehicles all in excellent condition.  Colors may vary, options may vary and sticker price may vary.  However, the bottom line in sales is what is important to the buyer- If price of the vehicle is the bottom line for the buyer, the cheapest BMW will be snapped up.   If the buyer is insisting on a BMW loaded with options then the vehicle with the most options for a price within reason will sell first.  Bottom line is the buyer will determine which vehicles sell and how quickly they sell.  The same is true of real estate.   The seller of BMWs may want top dollar and that would be possible if the car lot owner had only one BMW and it was the only one in town.  Not true in vehicles and not true in real estate in 2011.
• As-Is Value- no frills included, the property is being sold exactly as it is.  What you see is what you get.  The end.  This price will usually be much lower than the Market value and it may be possible to negotiate it lower.
• As-Repaired Value- This is a tricky one.  The appraiser or broker may place a value on the cost of repairing the issues found during the home inspection.  After the recommended repairs, the house should be in turnkey condition.  Problem with this one is that after you make the improvement the home may still sit on the market for a while.  A good thing about this one is that you can negotiate with the buyer and perhaps lower the price if the buyer will do the repairs themselves.
• Quick-Sale –Value- This value is below the current market value and usually indicates the buyer needs to immediately liquidate the property or the property is in foreclosure.  This value may be considered if the buyer has immediate need of cash, has already purchased another home, or if the buyer has moved to another state and does not want to continue carrying the cost of two homes. 
• Conservative real estate experts estimate that 1% per month of a home’s value is the actual carrying cost for an empty home.  If you home is worth $200,000 then 1% per month translates to expenditures per year of $24,000 per year.  If the home is on the market for 3 years then the owner has lost $72,000 in carrying cost.  Meaning actual value received upon selling for $200,000 minus the $72,000 to hold the home 3 years = $128,000.    That is a 36% loss of value. 

The best advice your agent can give you is to have your home appraised prior to putting it on the market.  The cost can range from $300-$450 and is well worth the time and effort.  The number one reason homes do not sell is that they are overpriced for the current market.    Priced right is half sold!

The first question buyers will ask an agent is “how long has that one been on the market?”   Buyers make incorrect assumptions about homes that have been for sale for a long time (some in Williamstown for a long as five years or more).   The first assumption is that the seller will be willing to entertain any offer out of a desperate need to unload the property.  This assumption is more often wrong than right.

When the buyer discovers that the NEW listing has actually been on the market for 5 years the next question is “if they are trying hide the number of days on the market what else are they trying to hide?”    Full time agents and serious buyers (with lots of time to browse the NET) know full well how long a house has been for sale.    Nobody is being fooled and the agent who “churns a listing” over and over may begin to be perceived as less than honest. 

Agents defend “churning a listing” by stating they are honoring their fiduciary duty to the client.   However, Article 1 of the National Association of Realtors Code of Ethics makes it clear that the obligation to the client is primary but where exactly does “resetting the odometer” fall on the ethical spectrum.

Smoke and mirror tactics cannot conceal the fact that most likely the “churned listing” is overpriced.  We recommend sharing these three tips with the seller:

1. stage the home so it looks more attractive

2. price it right and sell it

3. move on with your life

Lets face it churning a listing is an attempt to manipulate the facts in an untruthful way.  Real Estate Agents  would always function with fiduciary responsibility to their clients as a priority in a perfect world.  We all live in reality and reality is that wrong facts are worse than no facts at all.

American Dream?

Writing about Williamstown Real Estate and Berkshire county in general we do not foresee auctions on the rise but we do see real estate activity on the upswing. The increase in real estate sales activity will be welcome news for Berkshire County sellers who have endured some pretty lean years since the bubble burst in ’08.

Berkshire Real Estate Sales volume had dropped substantially until the tax incentives helped lift volume last winter and prices have generally taken a beating but we think the worst is behind us now.

This is not to say that the Williamstown real estate and Berkshire Real Estate market will shift rapidly from a buyer’s market to a seller’s again this year or any time soon but what we wish to emphasize is that the best breaks for most buyers may soon be gone come spring. April is historically the most active month of the year for properties to go under contract, particularly in the northern states where winter weather can keep people indoors.

If this coming April turns out like most years, then we would expect a pretty active buyer pool which will typically grab the best properties first, leaving those sellers and their agents who still haven’t adjusted to the “new reality” scratching their heads wondering why their property hasn’t sold.

There is no mystery however. If a property remains unsold for more than a reasonable period of time which come spring, would be only a month or two, then the only reason and remedy is price. It’s that simple.

I like the analogy of an apple tree for our real estate market this season. Let’s consider this a year when there are lots of apples on the trees just as we expect there will be plenty of listings for buyers to choose from.  One tree loaded with apples sits on one side of a wall and belongs to a farmer with two children. They are young children and so can only pick the lower apples and only the ones they can readily eat so that there are plenty of apples on the tree which eventually fall to the ground and rot.

The other tree on the other side of the wall belongs to a young farmer with loads of children and they invite all their friends to come pick apples any time which they do, for pies and canning and eating so that the tree is picked bare and none go to waste. They used ladders too so every good apple was picked.

And so it is with real estate.  If there are loads of buyers, all the homes and properties are sold but if there are too few buyers for the number of homes or properties, then many will remain unsold, particularly the ones that at too high, in price that is.

If you are a seller, the lesson this year will be one of pricing to the market, from the beginning of the season so that your property is one of the lucky ones to be picked. I expect there will still be quite a few unpicked apples by the end of the season.

If you are a buyer, there should be plenty of fruit to choose from but getting there early so you can pick from the best priced properties will make a difference and that is why we say “going, going, gone”.