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Archive for the 'Buyer Info' Category
Cut Your Property Taxes in Cambridge, Somerville and Watertown – the Residential Exemption
I’m dismayed every time I find out that a homeowner – who’s usually a home seller at that point - hasn’t received the residential exemption that he or she was qualified to receive. If you’ve failed to apply for the exemption by the deadline you are not able to get that money back – no matter how many years you missed out. It’s a lot of money to let slip away.
What’s the Value of the Residential Exemption?
For Cambridge homeowners who qualify for the 2010 residential exemption, $198,423 is deducted from the property assessment. This amounts to a reduction in the 2010 tax bill of $1,531.83.
Here’s more information about the residential exemption in Cambridge.
For Watertown residents, for the 2009 tax year, the 2009 residential exemption reduces the assessed value of the homeowner’s property by $88,733, which translates to a savings of $1,086 for qualifying Watertown homeowners. The value of the exemption in 2008 was $1,063.
The Somerville residential exemption for 2010 reduces the assessed value of a qualifying homeowner’s residence by $138,011 resulting in a tax savings of $1,697.54. The application form for the exemption is online and questions should be directed to the Assessor’s office at 617-625-6600 ext. 3100.
Residential Property Tax Rates – 2008 – 2010
Wondering what are the property tax rates in Cambridge and nearby towns?
The 2010 residential property taxes have been announced by most towns. I’ve decided to add them to last year’s post so you can see the rates from 2008 and 2009 as well.
Tax rates are expressed in dollars per $1,000 of assessed value. In other words, if your Cambridge property, for example, was assessed at $500,000 you would multiply the tax rate of $7.72 by 500 to calculate your property taxes.
2010 Residential Property Tax Rates
Cambridge Residential Property Tax Rate:
- For 2010: $7.72
- In 2009: $7.56
- In 2008: $7.36
Arlington Residential Property Tax Rate:
- For 2010: $12.11
- In 2009: $11.92
- In 2008: $11.45
Belmont Residential Property Tax Rate:
- For 2010: $12.16
- In 2009: $11.89
- In 2008: $11.27
Medford Residential Property Tax Rate:
- For 2009: $10.08
- In 2008: $9.12
Somerville Residential Property Tax Rate:
- For 2010: $12.30
- In 2009: $11.71
- In 2008: $10.95
Watertown Residential Property Tax Rate:
- For 2009: $12.24
- In 2008: $11.39
Wondering if a town has a residential exemption? Of the towns listed above three do – Cambridge, Somerville and Watertown. Read more about the residential exemption in Cambridge, Somerville and Watertown.
What’s A Two-Thirds Family House? Deciphering Cambridge and Somerville Real Estate Terminology
Home buyers new to the real estate search in Cambridge or Somerville and nearby towns are often perplexed by one of the terms they see in the MLS (the Multiple Listing Service). “What the heck is a 2/3 family?” they ask.
The MLS uses the “2/3 family” as a descriptor in the Style of Condominium field. No question about it – it looks odd.
The term refers to condominiums in multi-unit buildings with two or three units. Cambridge and Somerville have loads of multi-family buildings. These wood-framed houses are typically either two-family houses or three-family houses (also called three-deckers or triple-deckers). When these multi-families are converted to condos the “2/3 family” designation is used to denote the style of condominium building.
The term does not refer to two-thirds of a building but to a two-family or three-family building.
The condos in a triple-decker are typically the same size and layout since a three-decker customarily consists of three, identical stacked units.
A two-unit association often contains two very different units. While it’s true that some two-families consist of identical units – a sort of two-decker style – more often the two-family has a smaller first floor unit and a larger unit upstairs, with additional rooms on the third floor.
Are you searching for a condo? Search here – by map or by search criteria – and see all condos available for sale in the MLS. And if you have questions or would like to set up an appointment to see any condos that catch your eye remember – I’m only a phone call or email away!
Whaddya Mean There Are Other Offers? I Thought This Was A Buyers’ Market!
Given the unrelenting doom and gloom in the media, it’s no wonder you feel like you’ve got the upper hand when you’re looking for a new home. Visions of lowball offers, grateful sellers, and bargain basement prices dance in your head.
So it can come as a surprise when you find yourself in a multiple bid situation. Who knew there wold be competition? Real estate is local and even today you may find yourself competing with other buyers for a house or condominium. There have been plenty of multiple bid sales in my market – Cambridge condominiums have received multiple bids, it’s not uncommon for Arlington single families to have multiple bidders, and a single family in Medford recently sold for well over the asking price after receiving 10 offers.
Here’s a game plan to take you through the crazy, stress-producing process of buying a home when you’ve got competition.
What’s a savvy buyer to do when there are multiple offers?
For starters, don’t be discouraged and don’t be afraid. It is possible to “win” and get the house of your dreams and it doesn’t necessarily mean you have to break the bank to do so. I’ve bought three of the four properties I’ve owned in multiple bid situations – including my first house. And I’ve been happy with every house – no regrets!
Work With A Buyers’ Agent
You need to be working with a buyer’s agent who will represent your interests in the transaction. Sometimes buyers think that going directly to the seller’s agent will give them a leg up. But the seller’s agent’s responsibility is to the seller, not to you as a buyer. And it’s quite likely that the seller will still owe the same commission to the listing office even though only one agent is involved in the transaction. And most important – in a multiple bid situation the listing agent’s responsibility is to get the best offer for the seller – regardless of whether you’ve submitted an offer directly to him or her. The sellers’ goal is to get more money in their pockets – not the agent’s.
You need somebody on your side. A buyers’ agent who’s familiar with the local real estate market will be able to:
- Pull comparable sales info to enable you to decide on a reasonable but competitive offer price
- Advise you about real estate activity in the neighborhood for similar houses
- Strategize about how to put together a compelling offer that has a strong chance of prevailing in a bidding war
How Does the Seller Decide Which Offer To Accept?
When the seller looks at several offers there are only so many points to compare. You want to shine on all points:
Price – Go over the comparable sales information with your agent. Don’t get stuck on the asking price – the house may be purposely priced low to generate excitement – and that strategy worked! Carefully go over the stats and decide on a price that makes sense and seems competitive. Your agent will have experience in the market and be able to offer advice but ultimately you’re deciding on an offer price that is comfortable for you and reflects just how much you want the house. Don’t assume that multiple bids means the offers will go sky high – sometimes all the offers can be under the asking price. Other times it does seem the sky is the limit – we’ve had at least two houses in Cambridge sell for $1,000,000 over the asking price. The comparable sales info and the amount of activity for the listing should give you some sense of how the offers might go.
Dates – Your agent will find out what dates work best for the seller – do your best to meet them. Maybe you’ll have to move in with your parents for a few weeks or move more quickly than you had hoped but remember – you’ll be moving into the house you love. The temporary inconvenience will be quickly forgotten.
Contingencies – The typical offer contingencies are financing, inspection, and in the case of condominiums, satisfactory review of the condominium documents. You should have a letter of preapproval from your lender at the ready. Be aware that some buyers may very well drop any and all of their contingencies. You have to decide if you are comfortable eliminating any contingencies. Perhaps you have cash on hand from a previous sale or your parents will back you up and you’re open to the idea of dropping a financing contingency. Or you had the chance to go through the property with an inspector prior to submitting your offer. Everyone’s situation will be different and everyone’s risk tolerance varies as well. Decide what if any contingencies you’re comfortable eliminating. And if you are including contingencies discuss with your agent how to minimize the impact – by tightening dates, increasing the dollar value of repairs you’re willing to take on, etc.
Deposits – In Massachusetts your offer is typically accompanied by a $1000 initial deposit check. You and your agent may want to discuss increasing the deposit. This comes at no cost to you since the deposit will go towards your down payment. From the sellers’ perspective, however, it shows evidence of the seriousness of your offer.
Respect The Emotions Involved In Selling A Home
Don’t forget that selling a home is often an emotional transaction. Honor that. The sellers want to feel good about passing on their home to its new caretakers.
Now is not the time for pointed questions or asking for repairs – though that time may come if you’ve allowed for an inspection. Remember – you’re being compared with other buyers. Don’t stand out as a pain in the neck – it’s not to your advantage if you want the house.
Keep extraneous issues out of the offer. You’re buying a house – not the furniture. Focus on the goal and talk about extras later outside of the home purchase agreement.
And one no-cost but often very effective tool is a letter to the sellers. Write about who you are, why you love the house, and how you’ll take good care of it. Mention any special things that stood out to you. If you can tell the sellers took good care of the house say so. If you like their decorating mention that. Sellers will often remember and remark about the letter weeks after receiving it.
Ultimately the seller wants the best price and the fewest hassles. And if they can feel good about the new caretakers of their family home all the better.
What Happens Next?
There aren’t any rules for how the seller chooses an offer. You may get an opportunity to better your offer and resubmit at an agreed upon time. Or the seller may choose one of the offers on the spot. It’s typically to your advantage to submit as strong an offer as possible in the first round. But it also might not a bad idea to have a small buffer so that you can increase your offer by a few thousand if given the chance. But remember – you might not get that chance. Plan accordingly and put your best foot forward.
Go For It!
Some buyers are tempted to walk away from a multiple offer situation without even making a bid. But if you’ve found the house you really want – give it your best shot. A multiple bid situation is not insurmountable. And you can’t assume that you’ll have to write a sky high offer to get your offer accepted. Every situation is different and some multiple bids don’t even generate an over-asking price. When I sold my first house, purchased in a bidding war during a down market, one of the first people at the open house was one of the other bidders from five years before. I never regretted buying that house and for him it was the one that got away. So – work with your agent, craft your bid, and know that you’ve done your best. And maybe, just maybe – you’ll be the happy new owners. Good luck!
Buying A Home in Belmont? Better Get A Parking Space
If you’re searching for a home or condo in Belmont, Massachusetts it’s important to pay careful attention to each property’s parking options.
Overnight parking is prohibited in Belmont on all public and private ways. The restriction applies to the hours of 1:00 a.m. to 7:00 p.m.
Most single families in Belmont will have driveway parking. If you’re in the market for a condominium, however, parking options may be more varied. If the property listing indicates that parking is included, you will want your attorney to review the condominium documents to confirm that you do in fact have the right to park in a legitimate assigned or deeded parking space.
What are the options if parking is not included with the property?
There are several parking lots in Belmont that allow overnight parking. Cars must be removed before 7 a.m.
- Waverley Square municipal lot
- Cushing Square municipal lot
- Belmont Center municipal lot
- Belmont Public School parking lots (Cars may not be parked at Chenery Middle School until after 9 pm)
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