Massachusetts Home Buyer Guide

A home inspection is serious business. 

As much as some sellers and real estate agents want to play down the home inspection, it is one of the most important steps of buying a home. Aside from the obvious reasons of wanting to know about major defects, a home inspection is a time to learn. A good home inspector will thoroughly answer home buyers' questions and educate home buyers, especially first-time home buyers, about maintaining a home in general and specifically their soon-to-be home.

With the above in mind, it is important that Massachusetts home buyers understand what a home inspector will check and what the limitations are for a home inspection.

Massachusetts home buyers who have been actively searching for homes are well aware of the lack of real estate inventory available right now, but would-be home buyers only searhing online may be unaware of how little inventory there really is available. 

MLS Property Information Network (MLS PIN), the primary multiple listing service in Massachusetts, has decided to change the way home listings are displayed after a seller accepts an offer starting today (Tuesday May 21, 2013). MLS PIN will do away with the "Active" with a flag status (ACT) and require listing agents to list homes with fully-executed offers as under agreement (aka, UAG). Listings marked as active with a flag status on May 21, 2013 will automatically be changed to UAG.

The National Association of Home Builders (NAHB) publishing arm recently released a study of what home buyers want in a home. 

"The housing downturn of the last few years affected not only the number of new homes that are built each year, but also the characteristics, features and size of the ones that do get built.  Builders and other industry professionals now have an opportunity to find out what home buyers really want and will not give up in  today’s market, as well as which features they are ready to leave behind in light of current economic realities," according to the NAHB study released February 19, 2013. 

A recent survey of milleninals shows that age group has a strong interest in homeownership, and their interest in becoming first-time home buyers has increased in the past year, PulteGroup, Inc., a national homebuilder, reported April 1, 2013.   

For renters ages 18-34 with an income of more than $50,000, 65 percent indicated their intention to buy a home has significantly or somewhat increased in the past year.  The definition of millennials varies slightly depending on who you ask, but generally it makes up people born from about 1980 until about the year 2000.  

Greater Boston home buyers may start to rejoice in the sweet sounds of the commuter rail or subway. 

According to a study released March 20, 2013 by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR), Boston real estate values during the last recession performed 129 percent better on average if they were located near public transportation with high-frequency service.

Massachusetts home buyers calculating the total cost of homeownership may need to remove the potential for tax breaks to repair or replace a septic system and/or for removal of lead paint. 

As part of a package of tax increases and the elimination of a variety of tax breaks, Massachusetts Governor, Deval Patrick, hopes to raise $1.9 billion annually in revenue. Two of his proposals are to eliminate the lead paint tax credit and the septic system repair / replacement credit. 

For those Massachusetts home buyers that have benefited or will benefit from purchasing a home at prices at or near the bottom of the real estate market, they may have to share their good fortune with the Commonwealth of Massachusetts, if a proposal by Governor Deval Patrick is enacted by the legislature.    

As part of a package of tax increases and the elimination of a variety of tax breaks, Governor Patrick hopes to raise $1.9 billion annually in revenue. One proposal is to eliminate the capital gains tax exemption on home sales.

Presently, Massachusetts follows federal tax law in exempting up to $500,000 in capital gains on the sale of homeowners primary residence. Governor Patrick's proposal to the eliminate capital gains exemption is in conjunction with raising the income tax from 5.25 percent to 6.25 percent, effectively raising the capital gains rate to 6.25 percent.  

For example, if a homeowner sells a home after livng in it for a number of years for a gain of $200,000, that homeowner will have $12,500 in tax liability. 

In real estate, there are dozens of industry terms that can be confusing or overwhelming.  Condex, LTV, ARM, Assessed vs. Appraise valued, FSBO, REO, Short Sale, BOM, etc.  It’s endless.

There are even many different ways to refer to real estate agents: agent, broker, realtor.  Are these terms all the same thing; can they be used interchangeably?  Here is some clarification on what each title means and what exactly is a Massachusetts Realtor.

With data available through November, 2012 will go down as a record year for favorable housing affordability conditions, and a great year for home buyers who could obtain a mortgage, according to the National Association of Realtors (NAR).

There have been many consequences discussed if the politicians in Washington don't come to an agreement on the so-called "fiscal cliff" budget and tax crisis by December 31, 2012. 

A recent article entitled, "10 Things Real Estate Listing Sites Won't Say" found on the MarketWatch.com Web site stated it was very difficult for home buyers to find reviews on real estate agents.

Maybe that is the case in general around the nation, but Massachusetts and New Hampshire consumers have a few good sources to find reviews and information about real estate buyer agents, as well as listing agents, when searching for help in buying a home or selling a home. 

The article used as an example the short-lived attempt by real estate company Redfin to roll out a feature called "Scouting Report" that provided information about agents' sales and other data. Redfin pulled the plug on Scouting Report about a week after it's September 2011 debut because of reported "inaccuracies in the data."

If the mortgage interest tax deduction were eliminated or limited, Massachusetts taxpayers would be disproportionately hurt because homes are more expensive than in other parts of the country, The Boston Globe reported December 10, 2012.