steve's White Mountain Blog

I have been a Realtor for 27 years in the White Mountains of New Hampshire, but what I'm about to discuss is the same in every market in the U.S. Let me call the market sale "property M' and the short sale "property S" - let's assume they would both appraise at the same price and are the same style and basic floor plan.

Negotiated settlement on property "M" ...offer made and accepted at $205,000. The Home inspection reveals a failed window, a broken ground wire (other small electrical issues), and out of code pressuring reducing valve (and other small plumbing issues). Since these are Code and structural issues the seller agrees to make the needed repairs. The closing happens in 40 days from contract to close. The place is delivered clean and in good working order.                                    

Offer is made on property "S" seller accepts $195,000 subject to lender approvals. The seller provides a hardship letter to the lender, they provide two years of tax returns and a financial work sheet. The bank negotiator opens the file asks for review and out side opinion of value. three weeks go by...no word from the lender, no contact from bank hired appraiser. Seller continues to live in the property but has stopped making all association fees (6 months ago) payments. Buyers have a home inspection a month after the contract is signed...find similar problems as the market value sale...but in this case the seller has no money and wouldn't make repairs. Buyer moves forward because the deal is "so good". Six weeks in the appraisal is done and the lender asks the seller for a cash               contribution at closing, the seller says "no I will not bring money to closing -if you don't like it go ahead and foreclose!" We continue with the bank negotiations and forward them a proposed HUD settlement. The lender refuses to pay off the HOA fee because we are in a non-redemption state. The Home owners association has placed a lien on the property - a pay off agreement must be negotiated to allow the buyer to get a "clear title". The Buyer agrees to pay off the $4,000 HOA fee at closing...after all they are getting a "great deal".

Final closing on the short sale...no repairs, HOA fees on the buyers side of the settlement statement (with release fees and discharge of lien recording fees this added $5,000 to the deal) No repairs made, the property is left in horrible condition and dirty (as the seller doesn't care anymore) and the closing takes place 150 days after contract.

    WHO GOT THE BETTER DEAL?                                                                     

Was this an extreme example? No this actually closed in a reasonable amount of time given the bank requirements and the speed they are reacting to the files. Did I paint the seller unfairly - NO, they are about to take a credit hit and are difficult to work with...they are disgruntled, embarrassed and stubborn...and blame all Realtors and lender for their unfortunate circumstances.

It's not Just "Black and White"...If you need the seller to contribute money , repairs or close in a timely manor a Short sale may not be for you. There are some great deals on short sales but you must  be willing to buy as is and wait for a closing date...as yet to be determined

Look for any type of property in the White mountains of New Hampshire, use the MLS search button at the bottom of this post or call me directly.

I find the parallels of building Adirondack homes –also know as Great camps to be an interesting look at how the past ingrains itself in our present. A handful of well known men came together to form a group in 1858 called the “Philosopher’s club”. They were lead by Landscape artist William Stillman and a guide named Steve Martin, the group of 10 consisted of two lawyers, two scientists, two doctors, two writers and two poets one being Ralph Waldo Emerson. These men from Boston and Cambridge Massachusetts, were the dandies of their day…but they were out of their element in the woods of Upstate New York…this realization inspire one poem written by Emerson: 

Look to yourselves, ye polished gentlemen!
No city airs or arts pass current here.
Your rank is all reversed; let men or cloth
Bow to the stalwart churls in overalls:
_They_ are the doctors of the wilderness,
And we the low-prized laymen.
In sooth, red flannel is a saucy test
Which few can put on with impunity.
What make you, master, fumbling at the oar?
Will you catch crabs? Truth tries pretension here.
The sallow knows the basket-maker's thumb;
The oar, the guide's. Dare you accept the tasks
He shall impose, to find a spring, trap foxes,
Tell the sun's time, determine the true north,
Or stumbling on through vast self-similar woods
To thread by night the nearest way to camp? 

Stillman an accomplished and well known paint at the time shared these thoughts of his experience: “I became more fascinated by the solitude and savagery of the wilderness than by anything paintable”.

       Fast Forward 150 years – we seek the same feelings

The Families we build these beautiful homes for are Doctors, Lawyers and captains of industry during the week, but long to be part of nature when they escape the city. Much like the Philosophers club of 150 years ago.

Custom rustic designs don't come together without a fair amount of hard work and an eye for details.

      Post and beam, intricate stone and hand split cedar shakes...appear rustic, casual and campy.

     Combining architectural shingles and copper roofing adds texture and appeal to this modern camp.

   Last but not least a great mountain setting for your custom designed Adirondack master piece.

Our skilled craftsmen make these homes feel casual and inviting...yet maintaining that woodsy appearance of a classic great camp born from the Adirondack -post and beam style of days gone by.

 Another spring day, enjoying the view of mt Washington from the top of loon mountain ski area.

There may be no better location in the White Mountains for a ski home. With a Ski trail 50 feet from the building site , direct access and views of the Pemigewasset river, and a cross country path for a property line - this piece of land truly has all the recreational offering you could want in a resort life style.

   * BUT!! – The sale is subject to third party approval.*

What does that mean to a laymen? It is up to the sellers lender to bless the conditions and terms of the sale, and agree to a negotiated pay off , of the current mortgage. The seller owes more than the asking price, and his lender requires the opportunity to review the sellers: hardship, request for debt relief and current assets and ability to bring money to closing.

* How long can that take –and what does a buyer have to supply?

Here is the hard part for a buyer: the sale can take anywhere from two months up to nine months, and even if you agree to pay the asking price the lender can decline the sale ( due to thing outside of your control). When the buyer enters a negotiation they will be required to provide (in this case): Proof of funds (your ability to buy) first five digits of your social security number, date of birth, phone numbers, and citizenship.

* Why would the seller put themselves through this?

The Seller could just let it go to foreclosure, but a short sale offers a better chance to recover financially in less time than a foreclosure: 1) when purchasing in the future mortgage applications asks have you ever had a property foreclosure (there is no question about short sales) 2) Credit score foreclosure drops your score 250 -300 points while a short sale may only show up as late payments -with a notation "paid as negotiate" with a credit score hit as little as 50 points. 3)Security Clearance & Current Employment: A foreclosure has a serious impact on security clearance, and on credit checks for employees with sensitive positions (or future sensitive positions) while a Short sale is not specifically reported on ones credit and not currently challenge in Employment. 4) Deficiency Judgment: in a Foreclosure (depending on state law) the bank can pursue a judgment after the foreclosure, while in a successfully negotiated short sale the lender may waive the right to pursue the deficiency.

* Why would the buyers put themselves through this?

In many cases the price of the property is well below comparable sales in the area. In the case of a land sale the buyer is literally buying enough time to design a home, and get all the necessary quotes to be ready to start the work when the deal is approved. Since interest on land loans is not deductible, you want to line up your construction loan and hit the ground running when you own the vacant site.

63 owners paid an average price of $455,000 for these ski home sites (like the one pictured above), and there is only one that is listed as a short sale. The asking price (*subject to 3rd party acceptance) is $199,900. It's a 0.65 acre site with town water & sewer, and underground utilities...and will need a shoreline permit prior to building.

More information about homes, condos and land available on the South Mountain slopes of Loon visit our web site of ski back properties www.slopesideatsouthmountain.com Lincoln New Hampshire /Loon Mt area.

Ever been accused of being the master of the obvious? I wrote a purchase agreement, where I pointed out that my buyer will assume the upcoming special assessment of $10,000 for a new roof (in a condo development).

The seller's agent accused me of  "negative selling" to get a better price for my buyer...DAH! But no it's not that easy, sure I want the best deal for my buyer that is my job. I also don't want either side to feel as though we glossed over this expense. AND>>> it wasn't disclosed in the seller disclosure. Why you may ask? Because the "required property disclosure" given to the buyer is 20 months old. July of 2009, was the signature date. I think a $10,000 special assessment should be acknowledged somewhere...and I think I just covered your ass too -Mr. Seller's agent (oh and BTW -we are required to update the disclosure so it's never more than one year old).

If your seller thinks we're beating him up, Have him pay for the new roof...and find someone else to buy the place after he doles out 10K. There are plenty of fish in the sea...and not all of them need dental work.

    Need all of the pieces to your buying puzzle...you've come to the right place.

Use the MLS search button at the bottom of this post to view all area properties - no matter who has it listed and then hire the right agent to advise you on purchasing.

This FSBO – For Sale By Owner story should convince all you bargain hunters that foregoing the assistance of a real estate professional can be detrimental to your financial & healthy future.

A Licensed broker friend of mine from another state told me this tale this is not an urban legend it was in fact something that happened to him personally. While working the “FSBO” classified he spotted what appeared to be a great deal. Good enough to consider it as a buy and flip property…a busman’s holiday if you wish.

With the thought of buying it himself, he DISCLOSED his status as a New Jersey real estate broker to the seller. The initial visit looked promising, and a re-visit was scheduled with the potential buyer (a R.E. Broker) suggesting to the seller he should make a “list” of concerns that anyone looking would want to know about.

There were some cause for concerns in the basement a few neat round holes had been cemented over and no explanation was given upon the initial walk-through. The second visit, started cordial with the New Jersey Broker asking about “that list” he had asked the seller to compile…none was written or offered.

Suspicions on the veteran brokers part, suggested a metal detector be employed for this visit. Sure enough buried tanks set the detector pin in the direction of the strongest probability. Further investigating showed there to be at least two tanks, and other metal “object” in other parts of the “affordable –for sale by owner property”.

How does an agent from New Hampshire know the details of this Non-Disclosure story? This New Jersey broker uses me to buy and sell properties in New Hampshire, because I know what is required here and will protect my client whether he is buying or selling…no deal is a preferred solution to a bad deal every time.

Buyers: When sellers don’t hire a real estate professional it doesn’t mean you’ll get a better deal by saving the commission payment. It can mean they don’t want you seeking advice from someone who knows what to look for.

Sellers: Avoiding a commission can be a costly mistake…we know how to remedy every situation. Disclosing an issue can keep you from being sued later, or possibly result in finding a reasonable repair prior to the sale. We have seen it all and that is why our guidance and knowledge is affordable compared to the alternatives.

If no problems are readily apparent -that doesn't mean a hidden defect isn't lurking out of sight!!

      Loon Mountain Ski Resort – Slope side

        Saturday – Open House – January 8^th 10am – 2 pm

        There are only 51 Condos that are truly ski back locations

…And not many owners ever sell once they own here!!

Here is a once in a lifetime chance to secure a ski to your door Location…never have to park in no mans land – or wait for a shuttle Bus or even walk for that matter…ski to and from the trails at Loon.

         Vaulted Living Room with Wood Burning Fireplace...and a table for 8 in the dinning room.

This condo was completely redone less than 5 years ago, New Carpet, new Garage doors, a huge playroom-Den addition, and all professionally & tastefully decorated and furnished as a mountain side show place.

  Den / Media Room was a new addition 5 years ago...Top floor master, with bath decked out in Subway tile

Offered Fully Furnished at $449,900…Rams Horn listing

   The Children's room features two trundle beds, with additional mattresses that pull out from under the twin beds...and the Guest Room offers beautiful decor with an adult size queen bed and plush surroundings.

The Entrance to Rams Horn is Directly beside the Governor's Lodge & Kanc Quad Lift at Loon mountain, come by on Saturday to see this show place condominium (or Ski To the door off the Blue Ox trail...near the Gondola).

Ride the lift to the top of the mountain...and when you're done for the day- Ski Home and enjoy the view

Why we see Mortgage Rates rising?

After reaching the lowest levels in decades, mortgage rates have shot higher over the past two weeks. After the Fed's official announcement on November 3, mortgage rates began to move higher for a variety of reasons. There are stronger than expected economic data causing investors to raise their outlook for economic growth, which generally leads to higher inflation. In addition, there was substantial opposition to the quantitative easing program from other countries and from many US politicians and economists, meaning that the Fed will face strong resistance to an expansion of the program. Investors had viewed the $600 billion initial level as a first step which would likely be increased in the future. Stronger economic growth and opposition to quantitative easing has reduced the likelihood that the program will be increased.

The recent news has not been uniformly negative for mortgage rates. Current inflation levels remain extremely low. In fact, the Consumer Price Index data released this week showed that annual core inflation dropped to a record low in October. The bottom line, when mortgage rates reached such extremely low levels, it has left them in a position to reverse direction very quickly (there is no place to go but up).

Due to the Thanksgiving holiday, all of this week's economic reports will come out before Thursday. Revisions to third quarter GDP and Existing Home Sales will be released on Tuesday. Durable Orders, New Home Sales, Personal Income, Consumer Sentiment, and the Fed Minutes from the November 3 meeting will come out on Wednesday. There will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday and will close early on Friday

If you have buyers sitting on the fence a rate increase may push them one way or the other…I always say a yes is as good as a no, it erases a maybe.

It’s time to write the maybe contracts…make it a yes.

If you are looking for a custom home at a ski resort in the White Mountains of New Hampshire? We  Have Got You Covered. Our Parent Company Cargill Construction has been through a strict vetting process which allows them to be the premiere building in all of these spectacular resort destinations.

               A Trip By Cannon Mt Ski Area in the Notch

Views From the Mount Washington Hotel at Bretton Woods Resort...home sites and condos for sale slope side

  Loon mountain Slope Side homes on the New south Mountain side, offering Adirondack style ski homes.

Ski Resort home designs are better left to the experts, 35 years of White mountain building and general contracting has taught us a lot about dealing with varying terrain, drainage, snow weight loads,  and recreational use needs...that come from the owners distance to the home once finished.

    Adirondack style homes in the White mountains.

 Here are just some of the Thousands of Homes designed and built in the Lakes and mountains of New Hampshire, if you are looking to buy or build a home in New Hampshire - We have got you covered!!

Alpine Lakes Realty   Together with out Builder partner  Cargill Construction  Offering Realtor Services and design build general contracting services...it's one stop shopping for your custom ski house in New Hampshire

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Great Price , Super location wonderful privacy…two lots were purchased to build this home on…and that ensures quiet enjoyment from inside as well as outside the home…2.5 acres, with sauna & hot tub all for $188,500.

Fabulous Private,Quiet setting on TWO lots to protect your Beautiful view over open field to NH White Mts.Open concept living room dinning room and kitchen,lots of bright sunshine from the South facing window, with 1st floor Master Bedroom plus another bedroom and loft upstairs.Enjoy Hot tub and sauna on the property. Near Waterville Valley,Loon Mountain,New Hampshire's White Mt National forest & lakes region. A perfect 1st home or Getaway at an affordable price.

2 Bedroom Contemporary Home   Brick Walkway to Mountain View   Mountain View in Back Yard   2.5 Areas   Plenty of Privacy   Out Door Jacuzzi

Open Concept   Dining Room   Plenty of Counter Space   Living Room   Mountain Views from Home   Loft area with Mountain Views

Subject to errors, omissions, prior sale, change or withdrawal without notice Copyright 2010 Joe Macord

Search Properties, by price, town and style  by adding your search criteria to the MLS button at the bottom of this post