Why move to Ipswich, MA? Views like this one. Ranked among the world’s best beaches, Crane Beach is the place to be all summer long. It is certainly less crowded in the middle of winter, but still provides amazing views as you can see.
To learn more about the town of Ipswich and Ipswich MA real estate, call me at 800.25.BUYER (ask for John) or email me.
The Federal Open Market Committee (FOMC), a component of the Federal Reserve, announced today that they are lowering rates yet again. Without getting bogged down in the minutiae, this is great news for potential Massachusetts real estate buyers.
Why? Property values continue to fall in Massachusetts as a whole as well as the Boston area, but it is very possible, and indeed likely, that Boston area real estate market values will reach a bottom over the course of the next year.
How will this happen? With the help of today’s FOMC decision, key interest rates will soon reach their lowest levels on record. The cost of capital will be almost nil, and as a result banks will undoubtedly lower mortgage interest rates. Lower rates mean that more folks that are undecided whether to purchase a home will lean towards buying.
Think how much money you could ’save’ by paying 4.5% over 30 years versus paying 5%. This thought, combined with the ever-volatile equity and bond markets, means that real estate will be your best investment (and most stable).
To learn how buying real estate in Massachusetts will be great for your investment portfolio, feel free to contact me at 1.800.25.BUYER (ask for John) or email me
If you are in the market for Massachusetts real estate, you will sooner or later come across the terms assessed value and appraised value. Is there a difference between an assessment and appraisal? If so, how will this difference affect you and your ability to purchase real estate?
Definition of assessed value: the worth or value of a piece of property as determined by the taxing authority for the purpose of levying an ad valorem (property) tax.
In Massachusetts, each town has a tax assessor, and this person is responsible for determing the value of each parcel of land and its improvements (typically houses). After the tax assessor determines the value, he/she passes this information along to the town for the purpose of levying the tax.
How is this value determined? In most cases, the assessed value is based on some percentage of market value. Typically the assessor, in conjunction with the town, will figure out what the tax base needs to be for a given year to meet budget requirements. They will then look at previous records and current market values and assign a value to each parcel of land. At times, assessed values will be almost 100% of market values, but typically they are a lower percentage. Assessed values of properties are public records, and can be found by visiting the tax assessor’s office at your local Town Hall or by viewing local land records.
Definition of appraised value: an estimate of value based on an appraiser’s analysis of data within the context of the appraisal problem that the appraiser was employed to solve. While this appears to be a mouthful (and it is), let’s break it down so it is more understandable.
First, what is an appraiser? This person will be a qualified professional, typically licensed by the state in which they practice. A more experienced appraiser will be certified. Who do they work for? Appraisers work for appraisal companies, banks, real estate companies, and other lending institutions.
If you need a loan to purchase Massachusetts property, in most cases the entity you are borrowing from will hire an appraiser (at your expense, typically $250-$600) to provide an unbiased value of the subject property based on many factors. In almost all cases, the appraised value must be equal to or higher than the proposed purchase price. Basically, the bank will want to make sure they are making a solid loan and that you as the borrower will not be borrowing more than the property is worth at the time of purchase.
On what factors is an appraisal based? Major factors include current market values of similar homes in similar conditions in the same neighborhood as well as housing trends and demand for the subject area. Appraisers typically have access to census data that shows population trends by town or region. Additionally, an appraiser will take into account any additions that have been done (are they fitting with the style of house?) and other improvements to the property (curb appeal matters!). There are a few different types of appraisals, but the key is that the appraiser should be familiar with the area so he/she can provide an unbiased expert opinion of value which can be a benefit to sellers and buyers.
In the current Boston area real estate market, buyers are finding that houses can be bought for thousands of dollars below assessed value. If you have a question about assessed values or appraised values, do not hesitate to contact me to discuss your questions or concerns. Seeking answers from a qualified professional is never a bad way to go, and I guarantee to save you money when you buy a home in Massachusetts.
call 1.800.25.BUYER and ask for John
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