The Newbury Street Aggregation Program is a venture between Taurus, AI Bank, and Urban Meritage. The program is all about purchasing properties in Boston’s Back Bay area. Specifically focusing on Newbury Street which is one of the worlds premier retail, housing, and office locations. Taurus is an investment company and from the looks of public records they have acquired around 17 properties on Newbury Street with a total investment of $150 million dollars. Most of the buying occurred from 2006 into 2007. I am wondering when they will start buying again. Probably in a couple years.

This initiative is about long term growth and controlling the retail, residential and office market on Newbury Street. I think this plan is genius. If I was going to bet on one street in Boston, it would be Newbury Street for sure. Imagine owning Newbury Street, the entire strip. I give Taurus a lot of credit and look forward to watching them buy more properties on Newbury Street.

One of the biggest misconceptions in real estate is Assessed Value. Assessed Value is an amount that a city puts onto a property in order to determine annual taxes.

A good definition would be: The dollar value of an asset assigned by public tax assessors office for the purposes of municipal taxation.

As a property owner you want the assessed value to be as low as possible. The city wants this number to be as high as possible. If you own a home that you keep doing renovations to your assessed value will increase every time you apply for a building permit. Why? Because the city views this as bettering your homes value and they will jump at any chance they can get the tax you.

Assessed Value is based on the land and the actual building. The assessed value estimate is based on a number of things like sales transactions, building inspections and use.

Today’s real estate buyers are obsessed with assessed value. When buyers see an asking price of $500,000 but the Assessed Value is $430,000 they have a hissy fit. When the agent tells the buyer that you cannot base Market Value on the Assessed Value the buyers look at the agent glazed over. That is, until the agent says… if this property was assessed at the asking price you would not be able to afford the annual taxes. You want this number to be as low as possible.

The market changed every day and values go up and down. Assessed values only change once per year which is why they should be treated as estimates for tax purposes and nothing more.

Lower is better.

There is generally nothing typical when deal with a short sale.  The short sale transaction can be complicated at times but if you are organized it will make a huge difference.  Many short sale deals fall apart.  These are the basic steps to a successful short sale.

1) Counsel Seller on alternatives to a short sale

2) Recommend Seller speak with attorney or tax professional

3) Execute Listing Agreement

4) Gather all required paperwork from Seller

5) Market property

6) Receive bona-fide offers

7) Discuss potential commission reduction with buyers broker.
Review offers with Seller and Seller accepts offer.

9) Execute contract and addendum with accepted buyer

10) Submit completed short sale package to lender

11) Follow up with lender to check the status of short sale package.

12) Receive approval from lender and review with seller

13) Deliver accepted short sale package to buyer

14) Proceed with closing.

Working with buyers and sellers is not an easy job. Buying and selling is a very emotional process for many consumers.  The job of the agent or broker is to take out the emotion.  The best way to do this is to provide proof. Your job will become a lot easier if you do your homework.

If you are working with a seller you should always have comps in hand.  You should never provide market info without proof.  Sellers always want a certain price.  They always think their home is worth more than their neighbors. Show comps and you will not only gain respect but you will have an easier time selling the property.

This goes for buyers as well.  Buyers often want to low ball and it usually does not help the deal.  Show comps.  When working as a buyers agent you have two jobs.  You need to get the buyer to understand the homes value and you have to educate the sellers agent on why you are offering a certain price. The best way to do this is to provide comps.

Give reasoning for your position and you will come out on top most of the time.  Don’t dispute unless you have something to base your beliefs on.