Fab Real Estate Blog

Lew Sichelman is one of my favorite real estate writers.  It helps that he sometimes quotes me in his articles.  His latest article pertains to Open Houses - Door is Closing on Open Houses. 

Do open houses work?  Are they worth it?  The article presents both viewpoints.  It also created some talk in my office today. 

I heard over and over:  Yes, open houses work!  Yes, open houses work! 
So I probed a bit deeper:  How do they work? 

"They help me gain new buyer clients," was the only response I heard. 
But, do they sell the house you are holding open?  The answer was a resounding, "No."

Yes, many agents have success finding new clients while holding open houses.  I've done it.  Many newer agents use it as a way to find their first clients.  Of course, some experienced agents do the same.

Personally, I am not a fan of the open house.  My job is to sell the home I have listed.  Yes, I often obtain new buyer clients from my listings.  But is my time - and more importantly, my sellers' time - best utilized by my sitting at an open house?  Sure, I may meet a new client.  How is that serving my seller?

Let's spend our time productively.
Sellers do not need to vacate their home for 3 or 4 hours on a Sunday so I can try to increase my business.  Sellers can use that time to catch up from the workweek to ensure their home remains in model home condition for showings.  Sellers can also use that time to enjoy their family...selling a home is stressful enough - we don't need to add to it by kicking them out of their house.
I can use the time to work with clients...or to market your home...
Heck, I can even use that time to speak with YOU, my seller, to discuss the market and how we are going to get your home sold.

According to the National Association of Realtors, only 7% of buyers begin their home search by visiting open houses.  Meanwhile, about 85% of buyers begin their search on the internet.  Where would you, Mr. and Mrs. Homeseller, prefer that I spend my time?

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

This is a new one for me:

I called to schedule an appointment to show a home.  The homeowner answered, I identified myself, and her response was: 
"I'm sorry.  Can you call me back in 30 minutes?  I'm at the doctor's office and he is examining me right now."

OK.  I know I preach that sellers need to make their homes accessible - it's the only way to have your home shown and sold!

But, you really don't need to answer your phone while you are undergoing a medical examination.  Voice mail will do just fine.  I will leave a message and you will know exactly when I will be showing your home. 

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

I was in the office the other day talking with a colleague.

We were discussing the market.  Our business.  Our projected business.  We laughed.  We made some jokes.

Then we broached the topic of all the short sales and foreclosure properties on the market.  Short sales have definitely become the new big thing around here.  And, the already-foreclosed homes have begun trickling onto the market.

We discussed why some people may find themselves facing foreclosure.  It all comes down to this:

We're all just three months away from foreclosure.

If we were to lose our job, not be able to find a new one, and fall three months behind on our mortgage payment:  We would then receive our notice of default and the foreclosure process would begin.

If we were to become ill, not be able to work, and fall three months behind on our mortgage payment:  We would then receive our notice of default and the foreclosure process would begin.

If we were to lose our spouse, not be able to work as we needed to take care of the kids, and fall three months behind on our mortgage payment:  We would then receive our notice of default and the foreclosure process would begin.

There are so many reasons people can fall behind on their mortgage payments. It's not all due to predatory lending.  It's not that all of us took out loans that were too large for our budgets.  It's not all because of the sub-prime loans that were available in the past.  And, it's not because we all looked at our homes as piggy banks and took that equity out as cash to pay for cars and vacations.

Anyone can lose their home.  It can happen to any of us under the right (or wrong) circumstances.

There's no reason to pass any blame.  Let's look at what happened and rectify the situation so those who find themselves in such an unfortunate situation can move on with their lives.

For those facing foreclosures, perhaps we can help them complete a short sale.
For those who have or are about to lose their homes to foreclosure, perhaps we can help them locate rental housing.

This market, and this economy, is tough on every body. 
It's time to stop playing the blame game and moving on with solutions.  Hopefully we'll all learn a little compassion, too, for those who find themselves in unfortunate situations.

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

Yesterday, clients of mine wrote an offer on a Danbury, Connecticut townhome they hope to buy.  The property is being sold as a short sale, which means the sellers owe more than what the property is worth in its as-is condition in today's market. 

We wrote a solid offer.  Of course, another offer came in the same day.   

I've warned my buyers on the issues they will now face with attempting to buy a short sale: 

• We will probably wait about 4-6 weeks before learning if the bank will accept the offer.  I've waited as long as five months on others. 
• The sale will be strictly as-is - the sellers will make no repairs. 
• If it goes through, they will be buying a home they like at a very, very fair price. 

So now the waiting has begun. 

Hopefully they will have the needed patience!  

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

New Milford, Connecticut Real Estate Update 
April, 2008

Closed home sales in New Milford, Connecticut:

Single Family Homes:
There were 17 single family home sales closed in New Milford, CT.
List Prices ranged from $269,900 - $609,900.
Closed Sales Prices ranged from $240,000 - $620,000.

The average closed real estate sales price for single family homes in New Milford was $367,317.
The median closed sales price was $362,000.
On average, these homes sold for 96% of their final list price.
Days on Market ranged from 41 - 691 days, with the average being 238 days of market time.

This compares to 27 single family homes closed in April, 2007, with an average closed sales price of $423,042 and a median closed sales price of $360,000.

Condos:
There were 12 condominium sales closed in New Milford, CT.

The average closed real estate sales price for condos in New Milford was $159,791.
The median closed sales price was $147,000.
On average, these homes sold for 97.9% of their list price.

This compares to 7 condos closed in April, 2007, with an average closed sales price of $222,985 and a median closed sales price of $157,000.

Currently available homes for sale in New Milford, Connecticut:

Single Family Homes:
Currently, there are 279 single family homes for sale in New Milford, CT.
List Prices range from $144,900 for a bank-owned fixer to $4,200,000 for a restored 1800's home on 65 acres.

Condos:
Currently, there are 73 condos available for sale in New Milford, CT.
List prices range from $89,900 for a one-bedroom unit to $539,900 for a detached unit in an active-adult community.

New Milford, Connecticut, is the southernmost town in Litchfield County and is known as The Gateway to Litchfield County.  The town borders the northeastern shores of Candlewood Lake.  Several lake communities surround its Candlewood Lake shores, and typically offer a private beach for residents, boat docks and other amenities.  New Milford enjoys a population of about 28,000 residents.

This Market Report prepared by:
Don Fabrizio-Garcia, REALTOR
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

Data compiled from the Greater Fairfield County MLS and believed to be accurate.

Brookfield, Connecticut Real Estate Update 
April, 2008

Closed home sales in Brookfield, Connecticut:

Single Family Homes:
There were 12 single family home sales closed in Brookfield, CT.
List Prices ranged from $320,900 - $715,000.
Closed Sales Prices ranged from $317,000 - $715,000.

The average closed real estate sales price for single family homes in Brookfield was $441,933.
The median closed sales price was $376,500.
On average, these homes sold for 96.9% of their final list price.
Days on Market ranged from 41 - 528 days, with the average being 233 days of market time. 

This compares to 8 closed sales in April, 2007, with an average sales price of $430,375 and a median closed sales price of $394,500.

Condos:
There were 3 condominium sales closed in Brookfield, CT.
The average sales price was $285,466
The median sales price was $300,000
These units sold for 96.9% of the most recent list price.


This compares to 4 closed sales in April, 2007 with an average sales price of $268,725 and a median sales price of $250,000.

Currently available homes for sale in Brookfield, Connecticut:

Single Family Homes:
Currently, there are 170 single family homes for sale in Brookfield, CT.
List Prices range from $199,900 for a major fixer property to $2,100,000 for a Candlewood Lake waterfront home.

Condos:
Currently, there are 29 condos for sale in Brookfield, CT.  List prices range from $182,500 for a one bedroom unit to $629,900 for a newer detached unit.




Brookfield, Connecticut, is located between Candlewood Lake and Lake Lillinonah, creating a multitude of water recreation opportunities in the town.  Several lake communities border Candlewood Lake, and typically offer a private beach for residents, boat docks and other amenities.  Brookfield enjoys a population of about 16,000 residents.

This Market Report prepared by:
Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
CT Home Group
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

Data compiled from the Greater Fairfield County MLS and believed to be accurate.

Danbury, Connecticut Real Estate Update
April, 2008

Closed home sales in Danbury, Connecticut:

Single Family Homes:
There were 29 single family home sales closed in Danbury, CT.
List Prices ranged from $149,900 - $749,000.
Closed Sales Prices ranged from $139,900 - $718,000.

The average closed real estate sales price for single family homes in Danbury was $369,302. 
The median closed real estate sales price was $319,250.
On average, these homes sold for 97.4% of their most recent list price.
Days on Market ranged from 2 - 832 days, with the average being 177 days of market time. 

This compares with 39 closed sales in April, 2007, with an average closed sales price of $430,225 and a median closed sales price of $385,000.

Condos:
There were 22 condominium sales closed in Danbury, CT.
The average closed real estate sales price for condos in Danbury was $264,063.
The median closed sales price was $244,500.
On average, these homes sold for 96.6% of their most recent list price.

This compares with 42 closed sales in April, 2007, with an average closed sales price of $235,930 and a median closed sales price of $242,250.



Currently available homes for sale in Danbury, Connecticut:

Single Family Homes:
Currently, there are 303 single family homes for sale in Danbury, CT.
List Prices range from $79,000 for a summer-only as-is cottage in a lake community to $2,499,000 for a spacious Candlewood Lake home.

Condos:
Currently, there are 277 condos available for sale in Danbury, CT.
List prices range from $79,000 - $839,000.

Danbury, Connecticut, a former military depot during the American Revolution, is a diverse community of about 78,000 residents that borders New York State to the west and the southern shores of Candlewood Lake.  Several lake communities border Candlewood Lake, and typically offer a private beach for residents, boat docks and other amenities.  Danbury enjoys a convenient commute location to lower Fairfield County and Westchester County, New York.  Danbury is situated just about an hour by car to Hartford, Connecticut and New York City.

This Market Report prepared by:
Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
CT Home Group
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

Data compiled from the Greater Fairfield County MLS and believed to be accurate

Sherman, Connecticut Real Estate Update
April, 2008

Closed home sales in Sherman, Connecticut:

There were 3 home sales closed in Sherman, CT.
List Prices ranged from $359,000 - $597,500.
Closed Sales Prices ranged from $330,000 - $572,000.

Marketing time ranged from 191 - 290 days on market.  The average was 237 days on market.

This compares with 4 closed sales in April, 2007, with an average sales price of $549,700 and a median sales price of $505,750.

Currently available homes for sale in Sherman, Connecticut:

Currently, there are 61 homes for sale in Sherman, CT.
List Prices range from $299,900 for a small cottage with beach rights to $3,300,000 for an expansive estate on more than 24 acres.

Sherman, Connecticut is a small semi-rural community of about 4,000 residents that borders New York State to the west, New Fairfield to the south and hugs the northwestern shores of Candlewood Lake.  Several lake communities border Candlewood Lake, and typically offer a private beach for residents, boat docks and other amenities.  The northernmost town in Fairfield County, Sherman is often cited as being the fastest growing town in Connecticut per capita, yet still retains its rural roots and charm.

This Market Report prepared by:
Don Fabrizio-Garcia, REALTOR
Real Estate & Appraisals
203.746.1199
Connecticut Real Estate and Homes for Sale

Data compiled from the Greater Fairfield County MLS and believed to be accurate.

New Fairfield, Connecticut Real Estate Update
April, 2008

Closed home sales in New Fairfield, Connecticut:

There were 6 home sales closed in New Fairfield, CT.
List Prices ranged from $310,000 - $1,695,000.
Closed Sales Prices ranged from $302,500 - $1,565,000.

The average closed real estate sales price for New Fairfield was $640,475.
The median closed real estate sales price for New Fairfield was $405,675.
On average, these homes sold for 94.4% of their final list price.
Days on Market ranged from 43 - 239 days, with the average being 110 days of market time.

This compares with 12 closed sales in April, 2007, with an average sales price of $533,541 and a median sales price of $434,750.


Currently available homes for sale in New Fairfield, Connecticut:

Currently, there are 117 homes for sale in New Fairfield, CT.
List Prices range from $159,000 for a small cottage in need of work  to $10,000,000 for a 41 acre waterfront estate.

New Fairfield, Connecticut is a small community of about 14,000 residents that borders New York State to the west and Candlewood Lake to the east.  Several lake communities border Candlewood Lake, and typically offer a private beach for residents, boat docks and other amenities.  New Fairfield enjoys a convenient commute location to lower Fairfield County and Westchester County, New York.  New Fairfield is situated just over an hour by car to Hartford, Connecticut and New York City.

This Market Report prepared by:
Don Fabrizio-Garcia, REALTOR
Real Estate & Appraisals
203.746.1199
Connecticut Real Estate and Homes for Sale

Data compiled from the Greater Fairfield County MLS and believed to be accurate

It finally happened.  Many didn't believe me.  But now I've seen it happen.

A home is listed for sale as a short sale - the sellers owe more on the home than it is worth in today's market.

Here's the scenario (the specifics have been changed, but the story still works):
This home has been on the market for a while now - over six months.  The price has been reduced and now stands at $375,000 - a real bargain for this home.

Of course, soon after this price reduction an offer came in: $370,000, all cash, as-is, no contingencies.

Sounds great, right?  Wrong.

In all short sales, the bank, when considering whether or not to accept an offer and write off the loss, sends out an appraiser to appraise the property.  Of course, the bank sent out their appraiser, who valued the home at $415,000.

Guess what?  The bank rejected this all-cash offer. 

Banks - even when dealing with short sales and foreclosures - want to sell for fair market value.  In a short sale situation, when the offer is less than fair market value, it may make more financial sense for the bank to reject the offer and foreclose on the property.  It is a financial decision the bank will make.

Are short sales good deals?  Often they are.  Especially for homes in need of work - the work needed limits the pool of possible buyers for that home, decreasing the appeal of the home, and thus potentially decreasing the home's value.  Short sale homes in need of work can often be good deals.

Other short sale properties may also be good deals.  Banks are not emotional when making their decisions.  If the offer makes financial sense for the bank, then they will accept it.  If the offer is within reason of the fair market value, as determined by an appraisal, then the bank may accept it.

But, if the offer is too low, too far below fair market value, and the bank will fare better financially by foreclosing on the home, then the offer will be rejected.

Lesson Learned.  Point Proven.  I knew I was right!

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

Buyers in this market often wonder how much to offer on a house they want to buy.

Some just wildly assume they can offer 10% or 20% or 30% less than list price.
Others have read an article in the paper that they should offer less than 10% of list price, and buy for no more than 90% of list price.
Others just don't know what to do.

What should you offer?  If you want the house, then offer fair market value.

We will look at what comparable homes have recently sold for.  We will create a market analysis for the property and determine its current market value.  That's what you should offer.

If the home is priced 10% - 20% over the fair market value, then it is safe to assume that the sellers will not accept an offer of fair market value.  We can give it a shot, but it's probably best to keep looking.

Sellers who are unrealistic about their list price are not going to suddenly become realistic when presented with an offer at fair market value.  In fact, they will probably be insulted by your offer and then refuse to negotiate. 

Let's focus our search on homes that are priced fairly.

In the Greater Danbury area, homes are selling, on average, for 95% - 97% of their list price.
Homes that are overpriced just don't sell.  Unrealistic sellers will still be sellers in 6 months...12 months...18 months or more.

Spend your time wisely.  Make your offers wisely.  And buy your new home!

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale

I'm not a fan of combination lockboxes.  That much I admit.

I know that sometimes they are required.  Particularly for bank-owned foreclosure properties - sometimes the banks require that we use these combination lockboxes.

But this was a new one for me.  Showing Instructions:  Email listing agent

That's it.  Just email the agent.  (To be fair, they did give the listing agent's email address).  No lockbox code is given in the listing - to get it, you have to...email the listing agent.

So, I planned on showing this home today.  I emailed the listing agent two days ago.  No response.  I emailed the listing agent again yesterday.  No response.  I called the listing agent's office today (left a message because, of course, no one answered).  No response.  And, there is no direct number listed for the listing agent.

I didn't show that home today.  Perhaps they lost a sale.
What a shame.

Don Fabrizio-Garcia, REALTOR
Connecticut Real Estate & Appraisals
CT Home Group
Keller Williams CT Realty
203.746.1199
Connecticut Real Estate and Homes for Sale