Helpful Seller Info

Your Sudbury Market in 2013 Was Awesome!

Every year I take a little time and analyze the Sudbury real estate market data for trends, changes, and other useful information … for your update click on the YouTube link.  To make a long story short, many trends are up and the market is currently favoring sellers over buyers.

Seller Credits Explained … Can You Pay for Buyer’s  Closing Costs?

Seller Credits Explained … Can You Pay for Buyer’s Closing Costs?

In general, most underwriting guidelines allow for the seller to pay a buyer’s closing costs. However, no matter what you negotiate, the amount of the credit at the closing table cannot exceed the buyer’s actual costs.

The following guidelines currently apply:

Conventional financing:

  • 90.01% + 3% credit
  • 90% or less 6% credit

FHA financing

  • 6% credit

VA financing

  • 4% credit


A seller should not give money back to the buyer at closing for repairs, decorating allowance, new carpet, etc. A closing cost credit is the only way for the seller to give money to the buyer without affecting the purchase price.

If a concession falls outside of these parameters, then the underwriter will subtract the dollar figure from the purchase price and run the loan to value ratio. If the ratio now exceeds the threshold for the loan program, the buyer may need PMI or not qualify for the loan program.

If you have a relocation customer whose company is paying their closing costs, then the amount of the seller concession will be limited. The buyer can not be reimbursed twice.

Closing costs are all of the buyer’s one-time fees associated with obtaining their mortgage. It does include escrows and pre-paids.

Allowable Costs:

Points Tax Service Fee

Appraisal Underwriting & Processing Fees

Credit Report Municipal Lien

Attorney’s Fee Plot Plan

Title search Recording & Courier Fees

Flood Certification First year’s insurance binder

Title Insurance Tax, Insurance & PMI escrows

For More Detailed Information feel free to call or email Tom Coburn, William Raveis Mortgage Broker, mobile: 508-380-7975  email:

Your Home is Worth How Much?

Your Home is Worth How Much?

Your home is very special to you – no doubt it holds many warm memories, but buyers who are looking at your house have just looked at lots and lots of them and your home is just “the  fifth one they saw today”. Unless it’s a perfect match, your home is no more special to them than numbers 3 or 18 were. Therein lies the challenge when thinking about pricing your home.

In very basic terms: Real estate is a commodity, not a product.

With a product the manufacturer makes something, then establishes the price it will sell for. They advertise it, and the public either buys the product or not at that price. Think clothing, TV’s or furniture in a store.

With a commodity, the sellers set an “asking price” and then buyers decide their “bid price”. The buyers assign their own value based on two things: one, what is happening in the market … prices fluctuate daily and are influenced by supply and demand and two ,what are their perceptions of the value of the exact facts, features and benefits inherent in that commodity. The potential buyer’s perception of value determines what your property is worth to them. Think auction.

Also, with all commodities and especially real estate there are two market trends – either appreciating or depreciating which depend on the laws of supply and demand. When fewer properties come on the market than go off, there is a shortage of inventory and prices go up … this results in an appreciating market. When more properties are coming on the market than are being sold, there is an oversupply of inventory, and prices go down … this results in a depreciating market. We are currently in a flat or slightly appreciating market, just having snapped out of seven years of depreciating market.

Your potential buyers are comparing your home to similar ones in your town as well as similar towns. They are visiting other homes for sale that are comparable in size, style, condition and location. They see what your competition is asking, and are also working with their agent to see what comparable homes sold for in recent months. Putting all of their observations and data together they are determining their opinion of the fair market value of your home. Hopefully you too have done some research and have come up with a reasonably similar fair market value and price your home accordingly.

The bottom line is: your buyer is an educated consumer and in real estate both sellers and buyers have to agree on the fair market price of a property in order for it to sell. If you price your home based on your emotional evaluation of how “special” it is, and not what it is worth compared to similar ones in the eyes of a buyer you will lose time and money. Yes – money. A recent study by Zillow, the real estate portal, suggests that overpriced homes actually sell for less money (when they do eventually sell) than if they had been priced correctly from the start.

Of course your home is priceless to you, but it’s the only thing you have to sell … to the home buyer it is not the only choice out there. Because of that you’ve got to be priced at the point that buyers agree with your positioning as it compares to all the others you are competing against. If your thinking of selling, give me a call I can help you sell your home, my pricing accuracy is over 97% list to sell ratio (without any price changes).

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