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Archive for the ‘Lessons Learned 101’ Category

Why Do I Need A Real Estate Attorney To Buy or Sell Real Estate?

Thursday, July 22nd, 2010

A lot of our clients ask us, “Why do I need a real estate attorney to buy or sell real estate? Isn’t it something you as a broker can handle and save me the extra money?”

The short answer is NO.

As high end, professional real estate brokers, we at Luxury Residential Group ALWAYS advise our clients to seek the guidance and services of a licensed real estate attorney when purchasing property in Massachusetts. 

Real Estate Attorney Duties:
  • Look over the offer
  • Negotiate the Purchase and Sale on your behalf and look out for your best interests.
  • Run the title search to make sure there are no liens on the property
  • Acquire title insurance – In MA, there are no title companies.  The attorneys act as brokers to acquire title insurance.  This differs from state to state.
  • Review condo documents and budget if purchasing a condo.
  • Inspect deed for any defects (If the unit does indeed have that parking space included and if it is deeded or just a “Right” to park).
  • Work with the cooperating attorney and brokers to make sure all dates, deadlines and contingencies are met.
  • Work with the lender to secure proper financing.
  • Conduct the closing and explain all the papers you are signing.
  • Disburse closing funds from escrow accounts.
  • File the deed and make sure everything goes on record properly.

Along with these services, the use of a lawyer is paramount to protect your legal best interests. Without using an attorney, you leave yourself open to significant liability that go beyond the cost of your condo.  At the end of the day, the services of an attorney should only cost you $1,250 to $2,000.  If they broker the title insurance, it could be less(note, the average cost above, does not include the cost of the title insurance itself).  Your real estate broker understands all the documentation, but they are NOT licensed attorneys. It is unfair to expect them to be.

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Posted in Lessons Learned 101, Role of Real Estate Attorney | No Comments »

Google Versus The Chinese Government – Winds of Change?

Friday, January 15th, 2010

googlechinaGoogle, risking billions of dollars in revenue, has threatened to pull their popular search engine out of China if  the Government continues to sensor its content and search results. No other company in the world has the same impact or power over commerce and business as Google.  The Chinese Government has told Google that if they are going to operate in China, they MUST play by their rules.  This means they cannot show search results that contain human rights terms, critical political views, religious propaganda or pornographic material.  The company has agreed to follow these strict guidelines for the last few years but things may be about to change. Recently, two Chinese human rights activists Gmail accounts were hacked by highly sophisticated means. Google has taken exception to this and without directly blaming the Chinese Government for the breach, they have told them that they would pull out of China if they continued this kind of behavior and censorship.  At the Google headquarters, Chinese citizens left flowers and notes in admiration of Google’s stand.  A civil uprising is beginning to take shape in the country and its momentum may force the Government to ease its stand.

GooglevChina

Luxury Residential Group’s Thoughts:

We applause Google for putting their core principals ahead of their bottom line.  It may be one of the most refreshing, and forever lasting events of our time.  Nothing, throughout history, has been able to force change in China until now. Who would have thunk that Google, an American company, would be able to accomplish something  that no other Government or Human Rights Group could.  We feel that Google will prevail in the end, stay in China and put a huge dent in the Governments stand on censorship.

What does this have to do with Real Estate?

It highlights the fact that no matter how much money is at stake, or how far two parties are apart in a negotiation(could be $500 on a $5 million dollar transaction), one should NEVER challenge or question another’s core principals. It will undoubtedly end all negotiations and profitable relationships moving forward.

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Posted in Lessons Learned 101, News | No Comments »

What is The Role of An Attorney When Buying A Condo?

Saturday, January 9th, 2010

By Steven Ceprano – Boston Real Estate Attorney

Steven Ceprano - Summers and Summers LLP

Steven Ceprano - Summers and Summers LLP

We had Steven Ceprano of Summers and Summers in Boston, MA answer that question for us:

Conference with client, cover issues such as how to hold title (tenants in common, joint tenants, tenants by the entirety), information on type of property to be purchased (i.e., single family, condominium, multi-family), and financing issues.

Ø      Review offer to purchase

Ø      Negotiate and prepare purchase and sale agreement

Ø      Review condominium documents and financials.

Ø      Advice concerning financing and tailoring of purchase and sales terms to lender’s requirements

Ø      Review the results various inspections

Ø      Review title examination with bank’s attorney

Ø      Attend closing and review papers which buyer is required to sign

Ø      Set up escrows and special arrangements to correct title, complete construction or assure possession

Ø      Arrange title insurance protection for buyer against losses due to title defects, if desired

Ø      Transfer of security deposits and notices to tenants (if purchasing multi family house)

*We at Luxury Residential Group always recommend having the representation of an attorney when purchasing a property in Boston, MA. Please do no not try to make a go of it yourself.  You leave yourself open to too many risks. An attorney generally charges $1,250-$2,000($500-$750 to negotiate the P and S, and another $750 to $1,250 to handle the closing and make sure you have the proper title insurance.

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Posted in Boston Real Estate Attorney, Closing Costs, Lessons Learned 101, Title Insurance | No Comments »

Title Insurance – What does it cost and why do I need it?

Thursday, December 31st, 2009

Written By Joshua A. Golden, Principal at Luxury Residential Group LLC

What is Title Insurance?

Title insurance is policy that covers homeowners and mortgage companies from unknown defects in the deed. It is the responsibility of your attorney to do a title search prior to closing. Unfortunately unforeseen circumstances come up.  Both buyers and lenders should have title insurance. The lenders policy only covers their portion of the mortgage.  If you pay cash, or put down a large amount at closing, you should have title insurance covering your portion of the value as well.

You might ask yourself, what does title insurance cover?

Title insurance covers many things, mostly unforeseen and for a large portion uncommon circumstances.  At a recent closing, the buyers attorney (Steven Ceprano of Summers and Summers in Boston) told us a story about something that happened to one of his clients:

A buyer moved forward with the purchase of a property. 1 year later a woman comes forward saying that she never authorized or intended to sell this property.  Her husband at the time forged her signature while she was out of the country and she was notifying the current owners that she was taking the property back.  She had a right to her home that was illegally sold.  Now, had the buyer NOT had title insurance, they would have been out of luck and would have had to go through a lengthy lawsuit to get their money back.  Since they did purchase the policy, the insurance company was responsible for paying them back the money they had put down on the home.  The buyer was free and clear but the insurance company had to go through the process of recouping their losses.

How often does a total loss like this happen? Almost never, but is it worth taking the risk?  We at Luxury Residential Group do not think so.

What is title insurance going to cost me?

Title insurance is something you pay once, at closing, and is usually $3.25-$4.00/$1,000 paid.  For example, if you buy a home or condo for $425,000, you should expect to pay between  $1,375 and $1,700.  Although a good amount of money, it pales in comparison to a $425,000 dollar loss and covers you for as long as you and your heirs own the property.

What you should take away and Luxury Residential Group’s two cents:

Having a title defects is a very common occurrence which is usually picked up by a title examiner, hired by your attorney and paid for by you.  If a defect is found, it is the responsibility of the seller to take care of and have it removed from the title prior to closing. Unfortunately, a lot of buyers and sellers these days try to do things themselves(P&S, Closings, and filing of the deed) in order to save themselves money on closing costs and doing a thorough title search is overlooked or something that is unknown by the buyer.  Buyer BEWARE, if you do this, you run the risk of SIGNIFICANT losses.  You should ALWAYS hire a professional and experienced attorney.  If you do not, you might find yourself responsible for paying back former owners, lenders, painters, plumbers, gardeners and pretty much any other contractor you can think of who may have gotten burned by the previous owners.  You also run the risk of not only losing your property, but having to fight a lengthy court battle to get your funds back.

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Posted in Closing Costs, Lessons Learned 101, Title Insurance | 1 Comment »

Do Your REALLY Want to Sell Your Home Or Condo?

Friday, November 20th, 2009

If the answer is yes, then you need to be forward thinking  and accommodating in these uncertain times.  If you are not reasonable with your pricing, you will sit on your property for months, sometimes years at a time. You will also start questioning your broker, blaming them for not selling it in a reasonable period of time. What you should be asking your broker is, WHAT NEEDS TO BE DONE TO SELL MY CONDO OR HOME? You should always hire a Seller’s Agent who is reputable, trustworthy and experienced.

We have some some pointers that will save you a lot of time, money and headaches:

  1. PRICE, PRICE, PRICE -  We all know that your property is the best.  We understand you put a lot of love, sweat and money into making it perfect.  Unfortunately, if you want to sell it in a downturn, the best strategy is to price it 10-15% below your neighbors who are selling a comparable home. The bottom line is, those same neighbors will be sitting on their property 3 to 5 times longer, and eventually end up at the same price point if not lower than what you sold your property for months earlier.
  2. UPGRADES – Not all, but most buyers, prefer not to pay a big premium for your style and upgrades. Yes your finishes are superior, but if you ask a $1.5 to $2.0 million dollar buyer what they would prefer: A higher floor unit, same layout, with lesser finishes but a better view, for $1.7 million, OR, a slightly lower floor unit with superior finishes for $2.0 million, most if not all would go with the higher floor.  The buyer can use the $300,000 to style it to their liking while achieving superior views. Be realistic.
  3. MAKE IT EASY AND ENJOYABLE TO SHOW – Always make sure your home is clean, clutter free and smelling good (scents can deter buyers).  Also, do not make it difficult for your broker to show the property.  Things like, “My dog is sleeping”, “the maids didn’t come”, “the in-laws are here for a week” etc etc. Your goal is to sell!! Even though your life might be disrupted for a few months, this is probably the single biggest asset you own, so do your best to deal with the inconvenience.  Allow the broker to show the property on SHORT notice and do their job.  If you don’t, you will undoubtedly miss good opportunities.
Clean and Pristine Condition

Clean and Pristine Condition

From reading this blog posting you know what we are getting at. If you are FORWARD thinking, you will be rewarded.  Everything comes down to price in the end. Listen to your broker, that is why you hired them.  They are looking out for your best interests.  If you feel they are not, find someone else to market your property ASAP.

Posted in Lessons Learned 101 | No Comments »

Nouvelle at Natick Collection Auction Feedback and News

Thursday, October 8th, 2009
Jeff Shuman

Jeff Shuman

The auction at Nouvelle at Natick Collection was a clear success for buyers in Natick on Sunday.  Accelerated Marketing Partners (AMP) was ready that morning to auction off 44 of the 215 apartments in this BRAND NEW LUXURY building. People started arriving as early as 10:30. The room was packed by 11:30, with many people forced to stand in the back. People were eager to get a piece of this unbelievable deal. As the end approached, the head of AMP removed 3 units and added 2. It was an exciting process and many of the units ended in a bidding war.

The results were better than expected! All 43 units, sold at an average $300 per square foot and were well below what you might have expected to pay just 6 months ago for an ultra luxury, new construction condo in a great area.

Result averages by condo size:

1 Bed, 1.5 Bath: 8 units sold, 47% below listing price, sales price of $266,875,  $305/Sq. Ft., with a low of $249,00 and a high of $290,000.

1 Bed + Study, 2 Bath: 6 units sold, 49% below listing price, sales price of $322,000, $304/Sq. Ft., with a low of $308,000 and a high of $364,000.

2 Bed, 2 Bath: 19 units sold, 44% below listing price, sales price of $372,000, $293/Sq. Ft., with a low of $333,000 and a high of $417,000.

2 Bed + Study, 2.5 Bath: 3 units sold, 50% below asking price, sales price of $413,000, $265/Sq. Ft., with a low of $395,000 and a high of $447,000.

3 Bed, 2 Bath: 6 units sold, 58% below asking price, sales price of $550,000, $284/Sq. Ft., with a low of $489,000 and a high of $628,000.

 2 Bed, 2.5 Bath Penthouse: 63% below asking price, sales price of $470,000, $294/Sq. Ft.

 Overall Averages:

Asking price of $769,367

Sales Price of $375,884

Square Footage of 1261

$300/Sq. Ft., 49% below listing price

At the conclusion of the auction, bidders who stuck around, were given an opportunity to buy similar units at auction prices. 12 more units were bought at this time, bringing the total units sold to 55.

RECENT NEWS FROM THE SALES OFFICE

Nouvelle will be offering AUCTION PRICES for the next 30 DAYS on ALL available units. UNITS HAVE BEEN SELLING FAST!! Please CALL Jeff Shuman at (978) 460-0921 to schedule a tour of this exciting project and great opportunity.

WHAT DOES THIS MEAN FOR YOU!!!!

Luxury Residential Group will be offering $1,000 BACK on all units purchased through LRG at Nouvelle.

CONDITIONS:

1)      INITIAL VISIT MUST BE WITH A BROKER FROM OUR OFFICE.

2)      YOU MUST PURCHASE A UNIT TO RECEIVE THIS REBATE!

3)      REBATES WILL BE GIVEN BY CHECK ONCE THE BROKER FEE IS RECEIVED BY OUR OFFICE!

Posted in Boston Condo Auctions, Lessons Learned 101, News | 1 Comment »

Some Helpful Tips on Securing a Mortgage

Thursday, September 10th, 2009

Understandably, guidelines on securing a mortgage have become more challenging. It is crucial that you are prepared for tougher, but not unreasonable, requirements. You will be asked to provide important, timely documentation to the lender/underwriter(Person who reviews your information for the mortgage company).  You should always stay informed and up-to-date on the latest regulatory changes. Most professional mortgage agents will walk you through the steps necessary to help secure your loan.  Rest assured, there are systems in place to help you achieve your short and long-term goals with ease.  If you keep composed and patient, your loan will be secured in a timely fashion. Although many of our clients are “Conforming”(A loan Under $523,570 if you put down 20+%) or cash buyers, it is important to remain informed. Buyers sometimes overlook the challenges involved with securing financing for a new home.  Just remember, be patient, be prepared, and be thorough, it is not as difficult as you may initially think.

Posted in Lessons Learned 101, Mortgage Beat | No Comments »

Boston Luxury Apartment Rental Gone Bad – Lesson Learned

Thursday, August 6th, 2009

Had an interesting thing happen today that I thought would be relevant to share with our Luxury Residential Group  Blog readers.  An amazing, nice, young professional couple hired us to assist them in their search for an ultra Luxury Apartment in Boston.  After a month of Searching, we finally found the perfect home.  It was located at 134 beacon Street and was on the market for sale for nearly 3 years.  The developer decided to cut his losses and lease the property for the next year or two to hopefully catch the market on the upswing.  Our clients came to an agreement with the developer for a 2 year term at $12,000+/month. Unfortunately, the listing sales agent had different ideas.  Although we had an agreement in principal, the developers agent, who we will not name, used our rental offer as leverage to procure a buyer for the above mentioned property.  Another party stepped up and blew our “deal” out of the water on the purchase side.  Although the actions of the developers agent was understandable, it was highly unethical.  There is no legal action because the leases had not been signed and the deposit checks had not been cashed.

Lesson: Never expect a deal to be done until you have copies of signed documents by both parties.  Also, it is essential to know that whatever financial considerations are involved, they have been accepted and deposited into the bank by the lessor or their representatives. It also teaches us that sometimes, even though we feel pressured to make certain decisions, we need to go for it because the opportunity may not be there tomorrow.

Posted in Lessons Learned 101 | No Comments »

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