Wells Fargo is cutting the maximum amount it will lend relative to value of the homes in real estate markets where it believes price are still falling. This means larger down payments + limits on the size of refinance loans.

“Distressed” markets in Massachusetts include Barnstable, Berkshire, Norfolk, Plymouth and Suffolk counties. Bristol, Essex and Worcester counties were identified as only “soft”. Dukes, Franklin, Hampden, Hampshire and Nantucket counties were not categorized.

Read the Newsflash Wells Fargo sent out alerting their wholesale clients of the new rules.

“All the vampires walkin through the valley
Move west down ventura boulevard
All the bad boys are standing in the shadows
All the good girls are home with broken hearts

And Im free, free fallin
Yeah Im free, free fallin” - Tom Petty

Check out all these bite sized listings with GINORMOUS price drops. They are all under $350,000 and are getting cheaper by the minutes.

70565236 - 2 Garden Court, Cambridge (was $295, now $259)
70686540 - 681 East Seventh Street, South Boston (was $295, now $289)
70624279 - 84 Willow Street, Cambridge (was $319, now $289)
70701626 - 668 Tremont Street, South End (was $339, now $309)
70693058 - 24 Bay State Road, Cambridge (was $342, now $325)
70694902 - 1454 Beacon Street, Brookline (was $339, now $329)
70699466 - 145 Pinckney Street, Beacon Hill (was $409, now $335)
70694776 - 66 Athens Street, South Boston (was $349, now $339)

What are the average closing costs for buying real estate in Boston? Apparently Massachusetts is the 12th most expensive state to close a real estate transaction in. Numero uno? That dubious distinction goes to New York.

Origination Fees:
Points ($) $699.71
Application fee $415.00
Commitment fee $565.00
Document preparation $170.00
Funding fee $225.00
Origination or lender fees $1,110.00
Processing $376.25
Tax service $65.17
Underwriting $255.00
Wire transfer $30.00

Title and Closing:
Appraisal $321.88
Attorney, closing or settlement fee $436.67
Credit report $12.74
Flood certification $11.00
Pest, other inspection $50.00
Postage/courier $27.82
Survey $125.00
Title insurance $738.57
Title work: Title search, plat drawing, name search, endorsements $237.50

Government Fees:
Recording fee $138.00
City/county/state tax stamps/intangible tax $1,371.49

Prepaid $1,350.57
Escrow $700.00
Total Cost $3,365.09

Average origination $1,282.67
Average title and closing $1,566.52
Average origination plus title $2,849.19

Source - Bankrate.com

Here’s what the City of San Francisco is doing with their “hard earned” cash.

Thanks to a maze of bureaucratic indecision and historic restrictions, taxpayers may shell out $1,123,000 ($100,000+ per foot) to build the 10 ft ramp needed to make the Board of Supervisors president’s perch in the historic chambers accessible to the disabled.

Here’s how they judiciously spent the money:

• $77,000 for the city’s Bureau of Architecture project manager, design and construction fees.
• $455,000 for the actual construction, plus asbestos removal.
• $28,000 for a construction scheduling consultant.
• $3,500 for an electrical consultant.
• $68,000 for the Bureau of Construction Management to oversee the construction and various consultants.
• $12,000 for Department of Technology and Information Services oversight.
• $16,500 for permits and fees. (Yes, believe it or not, the city charges itself.)
• And as much as $65,000 for bid overruns.

Read all the gory details online at the San Francisoco Chronical.

This morning as I was running through all of the sold data Territory has accumulated over the last year I came across one statistic which I couldn’t help but share. Since last year Territory has delivered a Sales Price to List Price ratio of 91.6%. This takes into account negotiated discounts, seller concessions and rebates. At an average price of $460,000 we are talking boatloads of money saved. Yeah, do the math, it’s more than $38,000 per deal!

How did we do it? Well first, the “Buyer’s” market has helped. Second, we had great clients who positioned themselves brilliantly so they could negotiate the best deals. Third, and most importantly we used all of our cunning and Territory’s unique negotiating strategy to squeeze every last dollar out of every deal. Did we lose some along the way? Ugh, yeah we did. Being aggressive can have its downsides but hey, when you want to bake a cake you start by throwing a few eggs on the floor. Wait that’s not how that saying goes. Anyways, we are pretty proud of our accomplishments to date and I know our clients have been ecstatic with our performance.

For comparisons sake the SP:LP ratio for all of Massachusetts over the same period was 96% at an average price of $410,000. So it’s simple, you can work with everyone else and save $16,000 per deal or you can come on over to Territory and bank an extra 2o grand. Still don’t think its worth having a real buyer’s agent?

And the unanimous decision goes to…

How does a 1300+ square foot, 2 bed, 2 bath, 2 fireplace unit overlooking Olmsted’s emerald necklace sound? Good right?  Would it sound even better if I told you it was less than $405 per sqft?  Booyeah baby we have ourselves a pick of the week.  Get yourself over to the open house Sunday from 2:45 to 4:00.

70664885 - 52 Fenway, Boston

MLS # 70717854 - 30 Edgerly Road, Boston

On the Upside…

• has a second bedroom
• located in the historic Fenway, steps to Back Bay
• recently renovated
• central air
• washer/dryer
• close to two T stations

On the Downside…

• only has one bath
• located in the Fenway, home of the college party
• no parking
• 1st floor unit
• you have to walk down Mass Ave to get to either T station

Open House this Sunday from 12:00 to 1:30.

From the Chicago Tribune comes one of the most amazing real estate stories ever.

“The new buyers of a rundown graystone on the South Side showed up Jan. 9 to look at the house they won at a foreclosure auction. They took the plywood off the front door and went inside to make sure the utilities had been shut off. Then they called the police.

Sitting upright in the corner of a bedroom off the kitchen was a human skeleton in a red tracksuit. Next to him lay a dead dog. Neighbors told police the corpse was almost certainly Randy Johnson, a middle-age man who lived alone in the North Kenwood house.

Somehow, Johnson’s house was transferred three times to new owners without anyone noticing he was inside.”

At the heart of the story is an issue that may play a huge role in the future of real estate. Loans involving mortgage fraud that lead to forclosures can result in banks selling houses that they have no right to sell. As the old saying goes, “Buyer Beware”. If you are buying REO property you better have the best damn attorney in town doing your due dilligence.

George P. Hassett of the The Somerville News brings our attention to a battle pitting a 14-unit condo development against a single tree. In George’s own words “the tree has prevailed”.

“The developers of 343-347 Summer Street, had seen their project delayed by lawsuits from the neighborhood for six years but were coming off a legal victory and had only one obstacle in their way before cashing in with new West Somerville condo’s: a single tree that had to come down for construction of a fire lane.”

The developers of the condo project, Dakota Partners (formerly Emerald Development Group) Dakota bought the property, an empty lot on Summer Street behind the Dilboy VFW Post, in 2001 from the Massachusetts Bay Transportation Authority at an auction for $670,000.

The Setting: An empty lot owned by the “government” which is creating little value for the neighborhood and zero tax revenue for the city.

Enter Stage Left: A private developer who is wiling to risk both time and money to develop residential condos. These will deliver not only tax revenue to the city but also new residents to the neighborhood.

Enter Stage Right: Dr. Mohammed Hanif Butt, an orthodontist who lives directly next to the site. Dr Butt has fought against the project for years and has spent $100,000 on legal fees during the case.

And by “Bad” I mean Michael Jackson’s Neverland Ranch is going to auction and we will all have an opportunity to  make a bid on March 19 in Santa Barbara, Ca. Get your flights now.

To be included in the sale: “all personal property inside, all fixtures and appliances, furniture, and “all merry go round type devices,” any rides, games. The auction literally includes every single thing that is or isn’t nailed down. ”
Wacko-Jacko tried everything he could to save his child-luring retreat, even refinancing his $300 million loan from Fortress Investments with help from Sony Music, HSBC and Barclays Bank, but the Neverland loan was not part of that deal. 

Who’s bad ….