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Is the market showing slim signs of recovery?

Sat, 01 Nov 2025 13:36:16 GMT

Is the market showing slim signs of a recovery? A second rate cut will help.

The president of Greater Boston Association of Realtors, GBAR, Mark Triglione, is telling it like it is. It HAS been over a decade since the real estate market was anything close to encouraging- and I'd say 'much longer.' While I'm on the fence about the unequivocal veracity of this announcement, there seems to be a pulse...

With over 38 years' experience in the Metro-West real estate area, I will be your best advocate to list and fetch the highest value for your property. Should you need a buyers agent to help locate your new home and negotiate on your behalf, call me at 617-275-6240; www.PropertiesbyLesley.com

Contact me for a valuable discussion.

Boston Globe article is below...

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Rates go down. Sales go up. Is Greater Boston’s housing market beginning to thaw?

High interest rates and prices have made buying a home feel impossible for three years now.

By Andrew Brinker Globe Staff, Updated October 27, 2025, 5:01 a.m.

A home for sale in Brookline in 2011.

A home for sale in Brookline in 2011. Steven Senne

If you wanted to buy a house in Greater Boston, it’s hard to imagine a harder time to do it than the last couple of years.

Sky-high prices plus higher interest rates made the cost of buying around here more expensive than ever before, sidelining buyers and sellers alike and effectively freezing the housing market.

Now, finally, there are some tentative signs that Greater Boston’s housing market may be warming back up, albeit slowly.

Sales of single-family homes in the region were up 9 percent in September compared with the same month last year, with 813 homes sold last month compared to 746 in September 2024, according to new figures out Monday from the Greater Boston Association of Realtors. New listings in GBAR’s coverage region, which includes most of Greater Boston except the North and South Shores, also climbed 14 percent year-over-year, while total inventory was up 16 percent.

“It’s been over a decade since I’ve been willing to say it’s both a great time to buy and sell real estate in Greater Boston, but Fall 2025 is that time,” said GBAR President Mark Triglione, who is also the owner of Premier Realty Group, Inc. in Reading. “When sellers price right, they are still getting fantastic activity and results, but the increased inventory and dropping rates make it a great time to buy.”

New rules for MA home inspections: agents can't discuss

Fri, 06 Jun 2025 17:19:18 GMT

Is it time to wave goodbye to home inspections as a negotiation tool?

New state law says real estate agents can’t discuss such contingencies with buyers, sellers.

By Jim Morrison Globe Correspondent, Updated June 6, 2025

For years now, home buyers in this super-competitive real estate market have felt pressured to waive their right to a home inspection when making an offer, knowing at least some competing buyers will likely do the same. A new state law aimed at eliminating that contention has agents and brokers talking.

Implementation of the new regulations has been extended to Oct. 15, and includes language barring any contract provisions from frustrating the purpose of the home inspection, including “unreasonably limiting a prospective purchaser’s ability to schedule, receive, and review a home inspection.”

If the inspection reveals the need for expensive repairs, the buyer can proceed, renegotiate the contract, or simply walk away from the deal. Without an inspection, the buyer doesn’t know exactly what they’re getting until after they own it and have no other option but to foot the repair bill themselves.

In recent years, some home buyers who waived their home inspection contingencies have discovered surprising and sometimes expensive repairs after the sale. Morgan Cohen, owner of the home inspection firm MKC Associates based in Watertown, said he’s done post-purchase inspections for homeowners who waived their right to have their house inspected before they bought and later regretted it.

“We’ve done post-purchase inspections where we’ve found [dangerous] knob and tube wiring and others with underground oil tanks,” he said. “One of my colleagues inspected a house that was clearly built on a concrete foundation that contained pyrrhotite [which can cause concrete to fail]. A year after the owner purchased the home, he had it inspected and found out the foundation was crumbling and needed to be rebuilt.”

Presumably, if those homes had been inspected prior to purchase, an inspector would have flagged them. The buyer could then have withdrawn the offer or negotiated a price that reflected the need for vital, expensive repairs.

A contingent from the New England Chapter of the American Society of Home Inspection reached out to state Senator, Michael Moore, of Millbury for help. Moore has seen firsthand what can happen to families who unknowingly buy homes with dangerous and expensive flaws. His Central Mass. district around Worcester is home to a small but still growing number of homes with crumbling concrete foundations that contain pyrrhotite. The concrete looks fine at first, but over decades, cracks and spalls develop and eventually, the foundation becomes unsafe and must be replaced, costing homeowners $100,000 to $250,000 or more. Moore proposed a bill that was folded into the Massachusetts’ Affordable Homes Act that was signed into law in 2024.

“The inspectors approached me with concerns that home buyers felt pressure to sacrifice their home inspection, and we talked about the liability that someone could incur by not having the home inspection,” Moore said. “I’m happy that the Executive Office of Housing and Livable Communities established some regulations that the home inspectors are happy with. This is going to benefit potential homeowners. It will protect their quality of life and their future financial security.”

While home buyer advocates applaud the intention of the law — to level the playing field in what has been a years-long seller’s market because of lack of inventory — one concern that came up in every interview for this story was the difficulty to enforce it. A buyer’s agent could find a way to communicate that their client will forgo an inspection if their offer is accepted. As long as nothing is in writing, who would know?

“We’ve seen our veteran and first-time home buyer clients get shut out of the market for almost a decade because of inspection contingencies. It’s a huge problem, so I’m all for this change,” said attorney Scott Kriss of Kriss Law / Atlantic Closing and Escrow, which is based in Needham but has offices nationwide. “It always comes down to the policing of the law. It’s going to be very hard to say, ‘You only took this offer because you knew they’d waive the inspection.’ Well, how do you know that? How’s it going to be enforced?”

There are consequences for agents found violating the new law. The regulations read, “A violation or failure to comply with the provisions of 760 CMR 74.03 shall constitute an unfair or deceptive act or practice in the conduct of trade or commerce under M.G.L. c. 93A, [Section] 2, if undertaken by a Person acting in a business context, such as a Real Estate Salesperson or Real Estate Broker.”

Agents and brokers found violating Chapter 93A can be liable for triple the cost of the actual damages.

“At least it’ll put agents in the mindset,” Kriss said. “They can’t lead with, ‘We’re only taking offers with no inspections.’ And whether that will happen or not, they’re going to be in the frame of mind that this is something that they can’t do.”

Do you need to protect yourself as a seller while looking for your new home?

Wed, 26 Mar 2025 16:20:21 GMT

Here are several options to do just that.

Your home was listed at a good price, lots of interest was generated, and you have several offers. The problem is: you haven’t found a new home to move into yet, you’ll need to accept one of the offers, but you can’t move before having a place to go.

Below are several ways to protect yourself and ensure that you can live in your home until you find the house you want.

· Disclosing in MLS – Direct your agent to put language into MLS saying, “Sale Is Subject To Seller Finding Suitable Housing”. This means that the seller will not close a sale until they find a home suitable for their needs. While buyers used to be dissuaded by this practice, it’s now common due to persistent inventory shortages. If such an agreement was made, this language would carry forth to the Purchase and Sales agreement.

· Delaying the Closing Date – Setting the closing date as far out ahead as possible allows the seller more time. The typical duration for closing is usually 2-3 months, but some agreements go longer. When the seller needs more time to find a home, and the buyer is amenable, a longer timeframe is not unusual.

· Rent Back – This is a good option when a seller must close on their current home before being approved to purchase another. The seller will receive their proceeds from the sale while remaining in the property for as long as they need until they secure financing for and move into their new home. During this time the sellers either agree to pay the new owner’s rent, or have the rental fees deducted from the sale price for a predetermined length of time.

Other creative alternatives can be explored, allowing buyers and sellers to negotiate and close a transaction. When both parties are flexible and work together, these solutions can streamline the process to a successful close.

For answers to your questions, reach out to me at 617-275-6240 or Lesley.Palmiter@gmail.com .

What are the 4 crucial steps to buying and selling at the same time?

Fri, 21 Mar 2025 14:04:29 GMT

Organization is key when simultaneously buying and selling

What are the 4 crucial steps to buying and selling at the same time?

1. Do Your Research and Hire the Right Agent! Are they a REALTOR®? If so, they are trained and certified in the highest code of ethical standards. Does your agent have deep industry experience, especially in assisting people selling and buying property at the same time?

2. Ensure Your Agent Has Access to MLS. Searching on Zillow, Trulia, and Realtor, for instance, gives limited information on the marketplace. All REALTORS®, however, use the ‘gold standard:’ MLS. This database has much more detailed (legally valid) information. When you hire your agent, they will set you up to receive daily email feeds of all new properties that come on the market meeting your criteria.

3. Get Preapproved for a Mortgage!

Before you start searching for homes with your agent, get preapproved. This is especially important when buying and selling at the same time. Your mortgage broker will calculate what you can afford based on the projected sale price that your agent has estimated for your current home. If you think your home could sell for $500,000, have them also calculate scenarios for $475,000 and $525,000. This will give you a good understanding of your buying power, whichever price your home sells for. As all selling agents require a pre-approval to accompany an offer, you’ll be ready when you find the right home.

4. Be Proactive and Take Action!

Do not become someone who regrets what they didn’t do. A pro-active person is the one who can make life decisions, whereas others let things go to a point where life makes your decisions for you. Wouldn't you rather be in the former group, as it's a better hedge against unexpected costs, potential legal risks, and family security. Factors such as your urgency, financial situation, and the time of year are the usual motivators. It’s an anxious time, but trust your agent’s advice, as they are working on your behalf. Taking one step to start the process is better than staying stagnant.

Bottom line, it’s crucial to actively search listings, focusing on your preferred communities. Ensure that you’re fully prepared to strike when the right house comes on the market. At the same time, be proactive and start taking all the necessary steps to list your home for sale. Whether you’re prioritizing buying or selling first, being fully prepared on both fronts is essential!

For more information on the transaction process, and how to protect yourself whether selling or buying, look for my future posts. For help, reach me at 617-275-6240 or Lesley.Palmiter@gmail.com .

Are you frightened by selling in this marketplace?

Sun, 09 Mar 2025 16:35:25 GMT

It can be daunting, but with the right agent- not so much!

Do any of these thoughts about selling your home make you hesitant to take the first step?

• Worried about selling and buying at the same time?

• Scared to list your home because you don’t know where you'd go if it sells before you find a new home?

• Are you searching for a home but cannot seem to find it?

• Worried about having to move twice?

If you answered yes to any of these questions, then you are one among many who feel the same way. From low inventory levels to higher mortgage rates, the real estate landscape has experienced many challenges lately, leaving sellers wondering when the “right” time to list would be given current market conditions.

Since the beginning of the pandemic in March 2020, inventory levels have been decreasing, eventually reaching historically low levels. There is some good news, however: inventory has grown slightly, and I’ve seen properties that have gone on the market recently, already making price reductions. Not to forget, March is the best time to list and take advantage of motivated buyers before other sellers start to saturate the market.

Bottom line: waiting to research your home selling options isn’t making progress toward buying your dream home. Don’t stress – you have options! However, in today’s market, planning your move is crucial. The right agent will help you explore all possibilities and understand your protections to avoid paying for two mortgages, moving multiple times, selling without a new home lined up, or struggling to find the right one in the location you want.

I’ve often told sellers that managing dual transactions is like being a symphony conductor. As I’ve done this thousands of times, in both downturns and difficult markets, I’ll help you start on the right foot! Reach out at (617) 275-6240, or Lesley.Palmiter@gmail.com

Look for my follow up blogs to learn step by step how to navigate the process with me at your side.

Zillow's Analysis of the Strength of the Boston Housing Market

Fri, 07 Feb 2025 01:05:28 GMT

Zillow's Analysis of the Strength of the Boston Housing Market

In a recent Zillow article, the Boston area housing market is estimated to fare well against other U.S. cities. Despite its remaining high housing cost, in an analysis of 50 markets, Boston ranks 16th with properties continuing to gain in value.

Read on.

How Does Boston's Housing Market Rank Among Hottest In U.S.?

Find out how Boston measures up against the rest of the country in cost and inventory.

Scott Souza,Patch Staff

Posted Wed, Jan 15, 2025

Under Zillow's formula, Boston home values increased 4.7 percent to an average value of $694,494, and are expected to grow another 2.1 percent in 2025. (Jenna Fisher/Patch)

MASSACHUSETTS — How hot is the real estate market in the Bay State's largest metro area?

In a new analysis, the online real estate marketplace Zillow ranked the 50 largest U.S. metro areas based on the company’s home value growth projections, how quickly homes sell, job growth, new construction permits, and expected growth in owner-occupied housing.

Buffalo, New York, is projected to be the hottest housing market this year, the first time it has held the title in back-to-back years, Zillow said. Boston ranks in 16th place.

Under Zillow's formula, Boston home values increased 4.7 percent to an average value of $694,494, and are expected to grow another 2.1 percent in 2025.

One major problem facing homebuyers looking to purchase in Boston — to the surprise of no one who has explored such a move — is inventory. Zillow's forecast said that Boston's inventory of homes available for purchase has dropped 45.8 percent since the pre-COVID years of 2018 and 2019.

Behind Buffalo, the hottest markets are Indianapolis; Providence, Rhode Island; Hartford, Connecticut; Philadelphia; St. Louis; Charlotte, North Carolina; Kansas City, Missouri; Richmond, Virginia; and Salt Lake City, respectively.

Zillow said its 2024 forecast that Buffalo would have the hottest real estate market in 2024 was proven out in its market heat index. The city has the most new jobs per new homes permitted, Zillow said, noting that new jobs often mean new residents, which raises competition and drives up prices unless builders can match the additional demand.

Affordability is a top consideration for buyers. Zillow said lower-than-average home prices and rent costs in Buffalo, Indianapolis, St. Louis and Kansas City, Missouri, pushed those cities to the top 10.

Buyers consider "relative affordability," too. Providence, Rhode Island; Hartford, Connecticut; and Philadelphia are close, more affordable alternatives to expensive Northeast cities such as New York or Boston, Zillow said.

Among the fastest-growing markets is Virginia Beach, which leapfrogged over 23 other markets to the No. 13 spot in this year’s forecast. Memphis, Tennessee, fell the farthest, dropping 30 places as new housing permits eclipsed low job growth.

The western half of the country was shut out of the top 10 in 2024, but this year, Salt Lake City came in at No. 10. San Diego was the only other Western metro in the top 20.

Cities at the bottom of the ranking are New Orleans; San Francisco; San Jose, California; Portland, Oregon; Austin, Texas; Minneapolis; Denver; Memphis, Tennessee; Milwaukee; and New York City, respectively.

2024 Most Expensive Year for Home Sales in Massachusetts

Fri, 07 Feb 2025 01:05:06 GMT

Home buyers found a challenging year in 2024

It was a frustrating experience for home buyers in 2024. They need to have deep pockets, a good banker relationship, and an open schedule. That said, the city of Waltham proved to be a bright spot in the mix. See below for 2024 statistics, story credit to the Waltham Patch.

Buyers hoping for a deal in the condo market were also out of luck, with the 2024 median price reaching $535,000, nearly a 5 percent increase from 2023. (Shutterstock photo).

MASSACHUSETTS — The Warren Group has published its December housing market report, revealing that, in 2024, the price for a home in Massachusetts has never been more expensive.

In 2024, the median price for a single-family home rose by nearly 8 percent, eclipsing the $600,000 mark to reach $615,000.

In December, there were 3,657 single-family home sales in Massachusetts, a 16 percent increase from December 2023 when there were 3,150 transactions. Meanwhile, the median single-family home price increased 11 percent year-over-year to $600,000, a new all-time high for December, matching the high mark for the yearly total.

During the course of 2024, there were 42,019 single-family home sales in Massachusetts, a 2.9 percent increase from 2023. In addition, the year-end median single-family home price increased 7.9 percent on the same basis to $615,000 – a new all-time high.

Waltham was a bit of a rarity in the 2024 home market, as the city saw both less homes sold and a slight decrease in median sale price. The city saw more than 12 percent fewer homes sold in 2024, and the median price decreased by $1,000 compared to 2023, with the number now sitting at $785,000.

Buyers hoping for a deal in the condo market are also out of luck, with the 2024 median price reaching $535,000, nearly a 5 percent increase from 2023.

During the course of 2024, there were 18,783 condo sales, a 2.2 percent decrease from 2023, which marked the fewest condo sales for a year since 2011. Meanwhile, the year-end median sale price increased 4.9 percent from 2023 to $535,000 – a new all-time high.

Changes to Massachusetts Homestead Law

Thu, 30 Jan 2025 16:21:40 GMT

Below is the article as posted by the secretary of state.

The state of Massachusetts recently changed the parameters of property valuation under the Homestead Law. Questions and FAQs are included in the information below as posted by the Secretary of State.

Homestead FAQs

This information is not designed to provide any legal advice or address the practical effect of an estate of Homestead. As in all areas of the law, to fully understand your rights, you should consult an attorney of your choice.

What is a Declaration of Homestead/Homestead protection?

An estate of homestead is a type of protection for a person’s principal residence. Even if you don’t declare a homestead exemption with the Registry of Deeds, you’ll still benefit from an automatic homestead protection of one hundred and twenty-five thousand dollars ($125,000).

While this automatic protection may be sufficient to protect a deposit made upon your estate, it’s not likely enough coverage to protect the full value of your home. To protect the value of your property up to one million dollars ($1,000,000) per residence, per family, you must file a document called a “ Declaration of Homestead ”. You can file this form at the Registry of Deeds in the county or district where your property is located, referencing the title/deed to the property.

Who can file a Homestead protection?

If you own and occupy (or intend to occupy) your home as a principal residence, you can file a homestead protection. A sole owner, joint tenant, tenant by the entirety, tenant in common, life estate holder, or holder of a beneficial interest in a trust may all be regarded as owners.
If the home is held under a joint tenancy or tenancy by the entirety, the homestead exemption remains whole and unallocated between all owners. If there are more than two joint tenant owners, you can add an additional two hundred and fifty thousand dollars ($250,000) to the exemption amount in certain cases. If your home is owned by multiple owners, as either tenants in common or as trust beneficiaries, the homestead exemption will be distributed among the owners in proportion to each of their ownership interests.
Manufactured or mobile home owners are also eligible to declare homestead protection under the provisions of the new statute.

My home is held in trust, am I entitled to a Homestead protection?

Yes, if you hold a beneficial interest in the trust. You are considered an “owner” and eligible for an estate of homestead in that case. When a home is owned in trust, only the trustee can declare a homestead on behalf of the trust’s beneficiaries. The trust declaration and or trustee certificates may also need to be recorded at the Registry of Deeds.

In the declaration of homestead, the trustee must identify each of the beneficiaries to the trust that occupy or intend to occupy the premises as their principal residence. Any spouses of the resident beneficiaries must also be identified, and each must state whether they also occupy or intend to occupy the premises as their principal residence.

Where do I file my Homestead?

You can file your homestead declaration in the county or district Registry of Deeds where your residence is located. Click here to locate your Registry of Deeds office .

To acquire a homestead for a mobile home, also referred to as a manufactured home, you must file at the Registry of Deeds in which the mobile home is located. The Registry of Deeds must file your manufactured home declaration, even if you don’t have a deed on record. Forms are also available from the Secretary’s office, as well as at legal stationery stores or your local attorney’s office.
Make sure all forms are filled out completely and properly notarized.
The recording fee for homestead declarations is thirty-five dollars ($35.00). You can send a check with your completed form, payable to the Commonwealth of Massachusetts.

How am I protected?

The Homestead Act protects the property or manufactured home serving as your principal residence, which is considered the primary dwelling where you, and your family if applicable, reside or intend to reside. Homestead declaration protects against attachment, seizure, execution on judgment, levy or sale for the payment of debts up to one million dollars ($1,000,000) per residence, per family.

Homestead declaration benefits each owner named on the homestead and any of the owner’s family members who occupy or intend to occupy the home as their primary residence. Each family member can use, occupy, and enjoy the home.

The new law provides additional protections to spouses that are not listed as owners in their principal residences. For example, protection extends automatically to a new spouse where an unmarried person declared a homestead and later marries.
Also, divorcing spouses are protected against the loss of homestead through termination or divorce. Neither divorce nor remarriage will affect the homestead of the spouse who still primarily resides in the home.
If you are purchasing your new principal residence, your closing attorney must provide you, as a mortgagor, with notice of your right to declare a homestead protection. At that time, you will be asked to acknowledge receipt of this notice in writing.

How am I protected if I am 62 or older, or disabled?

If you’re sixty-two (62) years of age or older, or disabled regardless of age, the Homestead Act protects your real property or manufactured home against attachment, seizure, execution on judgment, levy or sale for the payment of debts. The real property or manufactured home must serve as your principal residence, and each individual filing as either elderly or disabled grants protection up to a maximum amount of one million dollars ($1,000,000) —regardless of whether the declaration is filed individually or jointly with one another. Elderly persons, regardless of marital status, are personally exempt up to one million dollars ($1,000,000) each. If two owners qualify for the elderly or disabled homestead protection, the aggregate protection on the home increases to two million dollars ($2,000,000).

Note that any elderly or disabled homestead protection terminates upon the person’s death. If there are multiple owners, and only one qualifies for an elderly or disabled homestead protection, consider filing one homestead declaration per owner to protect the family’s right to use, occupy and enjoy the home.
Additionally, if there are dependent minor children under the age of 21 living with all elderly or disabled homeowners, consult an attorney to adequately protect the childrens’ right to use, occupy and enjoy the home. Make sure to use the proper homestead form when you file.

What does the Homestead law mean by a “disabled person”?

The law defines a disabled person as an individual who has any medically determinable permanent physical or mental impairment that meets the disability requirement of supplemental social security income. You can learn more about these requirements from the Massachusetts State Supplement Program’s website .

For the purpose of the law, an individual is considered disabled if he or she cannot engage in any gainful activity as a result of the physical or mental impairment.
If you are declaring a homestead to benefit a disabled person, you must include either an original or certified copy of the disability award letter issued by the United States Social Security Administration, or a certification letter signed by a licensed physician registered with the Massachusetts Board of Registration in Medicine.
Disabled persons must meet the disability requirements stated in 42 U.S.C. 1382c(a)(3)(A) and 42 U.S.C. 1382c(a)(3)(C) as in effect at the time of recording.

Are my spouse and children covered, should I pass away?

Yes. If the parent who declares the homestead dies, the law protects the family’s right to use, occupy and enjoy the home.

The law protects married persons (regardless of whether they both owned the home), unmarried individuals, and any minor children under the age of 21. Any homestead protections would continue even if the surviving spouse remarries.

If I am over 62 and my spouse is under 62, should we both file?

Yes. The law states that an elderly homestead protection for any individual over the age of 62 is limited to that qualifying individual. Protection would end upon the transfer of their ownership interest, subsequent declaration of homestead on another property, abandonment, or death. To avoid an unexpected loss of homestead protection for any spouse under the age of 62, you should file one homestead per owner.

This is a change from prior homestead protection law. Under the former statute, filing a new declaration of homestead voided any earlier homestead. This opened up a claim period for previous creditors, leaving homeowners unprotected for a period of time. With the new law, a second homestead declaration would relate back to the first declaration, ensuring that the homeowners maintain their homestead protection.
When your spouse turns 62 and qualifies for an elderly homestead protection, you may also consider filing another elderly homestead on their behalf. If you and your spouse both qualify as elderly, you may aggregate each personal one million dollars ($1,000,000) protection to two million dollars ($2,000,000).
In all cases, you may want to consult an attorney to take any personal matters into consideration.

Will my Homestead declaration protect my home from being taken if I go into a nursing home?

It depends. Any liens imposed by the Massachusetts Department of Transitional Assistance as a result of Medicaid benefit payments are exempt from the homestead protection.

However , as long as the recipient or the spouse of the recipient is alive, the Commonwealth will not look to the residence for reimbursement of Medicaid benefits.

If the surviving spouse is also the recipient of Medicaid benefits, the Commonwealth will file a claim for reimbursement from the estate for the entire amount of Medicaid benefits paid, once the surviving recipient has died. You should consult an attorney to address your specific concerns regarding Medicaid.

Is there anything I will not be protected from?

The homestead law does not protect against the following:

Any sales for federal, state and local taxes, assessments, claims, and liens;
Any mortgages on the home;
Any executions issued from the Probate Court to enforce judgment that a spouse pay for the support of a spouse, former spouse or minor children;
Any buildings on land not owned by the owner of a homestead estate are attached, levied upon or sold for the ground rent of the lot where they stand;
Any execution issued from a court of competent jurisdiction to enforce its judgment based upon fraud, mistake, duress, undue influence or lack of capacity;
Any liens on the home recorded prior to the creation of the homestead.

What happens to my Homestead if I refinance, re-mortgage, or take out a home equity loan?

Any homestead declaration is automatically subordinate to a mortgage on the home that is executed by all of the home’s owners. If you previously executed a mortgage that included a waiver of the homestead protection, the new law applies to your existing homestead. This “waiver” is treated as a subordination, and the previously recorded homestead remains in full force.

As a result, you don’t need to immediately file a new homestead declaration after you refinance, take out a second mortgage or a home equity loan.

However, you may still want to refile in certain cases. Under the new law, you can file a new declaration without penalty because the subsequent declaration relates back to the previous declaration.

If there are multiple owners, any mortgage executed by fewer than all of the owners is still subject to homestead, and is considered superior only to the homestead estate of those owners who are parties to the new mortgage, their spouses and minor children, if any. The homestead protections of any owners who were not parties to the new mortgage would remain intact.

If I divide my time equally between my winter and summer residences, can I declare a Homestead on both?

No. You can only declare a homestead on your principal residence. You can have more than one residence, but the law only allows protection on your primary dwelling. There are currently no legislative plans to allow the exemption to apply to a vacation home that is not a principal residence.

For example, a person cannot declare a homestead exemption on one residence while a spouse declares the exemption on another family residence, unless each can prove that the residence is their principal residence.
If you file a homestead declaration for a vacation home and it isn’t your principal residence (or you don’t intend to reside in it as your primary dwelling), the law won’t cover the home. Also, the subsequent homestead on the vacation home would terminate any prior homestead on your actual principal residence.

Does the Homestead protection take the place of home insurance?

Absolutely not! Homestead protections do not replace home insurance or any other type of liability insurance. These are separate and distinct types of protection. Homestead protection applies after any insurance is used to pay for liability incurred under that particular insurance policy (e.g. home, automobile, etc.).

What if my home is sold or damaged?

If you sell the home, the law protects your sale proceeds for one year after the date of the sale, or on the date when you purchase a new home with the proceeds, whichever is earlier. If your home is damaged, the insurance proceeds are protected for two years after the date of the loss, or on the date when the home is reconstructed or you purchase a new home, whichever is earlier.

If you need to occupy a trailer, manufactured home, or other type of temporary housing while your primary home is reconstructed or replaced, the law would not consider that location as principal residency. You would not need to keep proceeds in an escrow account to maintain homestead protection, but you should still consult with an attorney as escrow may provide other advantages.
Any excess proceeds would lose homestead protection after reconstruction or when a new home is purchased.

How does the Homestead declaration help protect a home against unsecured creditors in bankruptcy proceedings?

Homestead declaration protects you from unsecured creditors and certain other debts or attachments, but it does not shield you from first or second mortgage lenders and/or equity lenders who possess a security interest in your home. If payments are not current on these types of secured credit, you risk losing the home to foreclosure proceedings.

In a Chapter 7 bankruptcy, or asset liquidation proceeding, you are allowed to claim certain exemptions which function as asset protection allowances. If a homestead declaration is in place, and state homestead exemptions are claimed, you would retain a much greater portion of the proceeds from a liquidations sale of the home than you would likely keep under federal bankruptcy law exemptions. This factor decreases, or perhaps even eliminates, the possibility that you would need to sell the home in Chapter 7 proceedings.
In all Chapter 13 bankruptcy proceedings, the court would require you to repay some or all of the unsecured debt over a three- to five-year period. You would need to repay a percentage of that debt at least equal to however much the unsecured creditors would receive under Chapter 7 liquidation regulations. By increasing the amount of the home’s exemption, the homestead declaration decreases the proceeds which would become available for repaying unsecured creditors through the Chapter 7 alternative. This may decrease the percentage of the unsecured debt you would be required to repay through a Chapter 13 proposal.

Where can I find more information about bankruptcy issues as they apply to Homestead protection?

You can speak with qualified counselors from Money Management International , a private non-profit agency with chapters nationwide.

In Massachusetts, contact MMI at (800) 208-2227 . They make up the largest non-profit, full service credit counseling agency in the United States. Since 1958, they have helped consumers find the tools and solutions they need to achieve financial independence.

Is the Homestead form difficult to understand and fill out?

No. It simply asks for basic information. Just make sure you use the right form based on ownership.

If your home is held in trust, the trustee(s) must fill out the form entitled Declaration of Homestead for Homes Owned by Trustee(s) .
For all other owners, or natural persons, fill out the form entitled Declaration of Homestead for Homes Owned by Natural Persons .

Be careful when writing the book and page number or certificate of title number of your deed or title. If you need assistance locating your deed to determine this information, please contact your local Registry of Deeds office .

Can my Homestead be terminated?

Yes, homestead protections would end for any of the following reasons:

If the home is conveyed by deed to a non-family member, and the deed is signed by the owner and if applicable, a non-owner spouse or former spouse residing in the home as a principal residence at the time the deed is drafted;
If any recorded release of the homestead is signed and acknowledged by the owner and if applicable, a non-owner spouse or former spouse residing in the home at the time of the release;
If the home is abandoned as a principal residence by the owner, owner’s spouse, former spouse or minor children, only as they apply to rights of the persons who abandoned the home;
NOTE: Military service is not considered abandonment under the law.
For any deeds held in trust, if either the trustee or a beneficial owner identified in the homestead declaration records a termination on the property held in trust;
If a subsequent homestead declaration is made on another home, such as a vacation home. This new declaration would terminate a prior homestead on an actual principal residence. Note that there are a number of transfers that do not terminate an already declared homestead.
Any transfer of the property between spouses, former spouses, co-owners, a trustee and a beneficiary or a life tenant and a remainderman will not terminate a previously declared homestead.
Also, if a conveyance or release is made without the signature and acknowledgement of a non-owner spouse or former spouse who is residing in the home at the time the principal residence is conveyed or released by an owner, it would not affect the homestead of the spouse who failed to sign.

What is the filing fee?

Filing a Declaration of Homestead costs thirty-five dollars ($35.00). Personal checks should be made payable to the Commonwealth of Massachusetts.

Each owner, whether or not they qualify for an elderly or disabled exemption, must sign and acknowledge the document under the penalties of perjury before a notary public.
If the home is owned by two spouses, both must sign the declaration form.
If the home is owned by one spouse independently, only that spouse needs to sign the declaration. However, they must declare their spouse and state the spouse’s name.
If there is more than one owner, given that the tenancy may change, it may be advisable to file a separate declaration for each tenant. Consider consulting an attorney if you have numerous owners.

How can I tell if my real property is recorded or registered land?

In most cases, your real property is recorded land. Your evidence of title will be a quitclaim deed with a book and page number assigned by the Registry of Deeds. If your property is registered land, you may receive a copy of your certificate of title, in addition to a land registration office book and page number, instead of a quitclaim deed.

Prior to April 9, 1997, the Registry issued large documents called owner’s duplicate certificates of title.

If you are not sure whether your real property is recorded or registered, contact your local Registry of Deeds office .

If I filed before the new law passed, do I need to refile?

If you filed a homestead declaration prior to August 6, 2024, you don’t need to re-file your homestead declaration to qualify for the increased protections. The new law creates an automatic $125,000 protection on homes that do not have a homestead declaration filed at the Registry of Deeds in order to safeguard deposits and situations where a declaration may be incorrectly filed. Homestead protections extend to pre-existing debts and the proceeds of a sale or insurance coverage.

Needham joins push back on 2021 MBTA Communities Law

Wed, 15 Jan 2025 15:42:30 GMT

Needham joins Milton in 2021 MBTS Communities Law push back

There may be other communities that push back on this state law, initiated by then governor Charlie Baker in 2021. The argument is not over, and the plan may need to be re-written. But there is no doubt that changes are coming to Massachusetts to support more population density in towns that provide MBTA transportation.

Read the article below.

In latest pushback to key state housing law, Needham voters say no to town’s plan

Suburb becomes latest to rebuff controversial state housing law; will now have until July to craft a new plan

By Andrew Brinker Globe Staff,Updated January 14, 2025

Voters at Needham Town Hall on Tuesday cast their ballots in a referendum on the town's MBTA Communities zoning plan. Jonathan Wiggs/Globe Staff

NEEDHAM — Voters in Needham Tuesday soundly rejected a plan that would have paved the way for the production of more multifamily housing in this suburban town of 32,000 and aligned it with a much-debated state housing law.

After months of urgent campaigning that engulfed the town in political tension, a strong majority of voters voted down a plan town leaders spent well over a year crafting. According to preliminary results of a town-wide referendum Tuesday, “no” votes appeared set to prevail by about 2,000 votes out of nearly 12,000 cast.

The vote is a blow to the local officials who helped craft the plan, as well as some local housing advocates, who saw it as a vision for Needham’s future. The plan was spurred by a Dec. 31 deadline to comply with the MBTA Communities Act, a state law that mandates cities and towns served by the T write zoning that makes it easier to build multifamily housing.

Now, Needham will need to adopt a new plan by a new state deadline of July 14, or risk finding itself out of compliance with state law, much like Milton — where voters last year rejected their town’s plan in a similar referendum — and about three dozen other communities in Eastern Massachusetts that have not adopted MBTA Communities plans.

The plan voters shot down Tuesday was the more ambitious version of two proposals Town Meeting considered last year, and would have allowed multifamily housing development up to 4½ stories in key commercial and industrial areas near commuter rail stations. In theory, it would’ve made room for 3,296 units, well over the 1,784 required by state law, though town leaders say that strongly overestimates the number of new units the zoning would produce.

But the majority of voters saw the plan as too ambitious, and agreed with the leaders of the “No” campaign, who were concerned the plan would contribute to infrastructure issues like traffic and urged the town to opt for a smaller option.

Elizabeth Kaponya, a Needham Heights resident who was on the committee that helped create the plans sent to Town Meeting last year and voted “no” on Tuesday, said she was worried the plan would change the suburban character of Needham.

“I feel that the potential increase of the population of this town would change its character completely,” said Kaponya, 67. “And the infrastructure may not be able to handle it. Do we have enough fire hydrants for all these new buildings? Could our roads handle the traffic?”

Kaponya and “No” campaign leaders said Tuesday the town should instead adopt the other plan presented to Town Meeting, a more modest version that would comply with state law without spurring change too quickly.

Still, the vote was another sign that there are pockets of fierce opposition to the law — Massachusetts’s most significant housing law in decades — in communities outside of Boston that state housing officials hope will begin to shoulder some of the burden of digging out of Massachusetts’ housing crisis.

The “Yes” campaign had sought to sell the plan as a well-thought-out solution that would push Needham toward solutions to some of its most intractable issues, including a stagnating population, decreased commercial foot traffic, and soaring housing costs.

Campaigners urge voters in Needham to reject a controversial housing plan mandated under state law. Jonathan Wiggs/Globe Staff

Leaders of the campaign said before the vote that selling the plan to residents was an uphill battle. With complicated issues like housing and zoning, it is easier for some residents to say “no” instead of “yes,” they said, especially with a backup zoning plan to fall back on.

After October’s Town Meeting vote, and the subsequent campaign by opponents to force a referendum, the plan quickly became one of the most controversial political issues in recent memory in Needham.

Long-friendly neighbors planted dueling signs in their yards. Facebook pages became filled with fights over the zoning. And the campaigns both accused each other of misrepresenting the facts of the plan, creating confusion that heightened tensions.

On Tuesday, voters streamed in and out of polling locations across town all day, often greeted by sign-toting campaigners who braved frigid temperatures. Occasionally, passing drivers beeped at the sign-holders to show support.

Two members of the “No” campaign who stood bundled in scarves holding “Vote No” signs on Highland Avenue around 6 p.m. Tuesday said the debate became vitriolic. They declined to give their names, saying they were worried about inciting retribution from neighbors.

They said they worked for the “No” campaign because they saw the plan as too much housing, too quickly.

“There’s been a lot of development since I was a kid growing up here,” said one, who said she was a local teacher. ”I know things change and that’s a part of life, but this seems extreme.”

At least for now, the vote leaves the town without an MBTA Communities plan, though Governor Maura Healey’s administration on Tuesday gave Needham and several other communities that had been considered noncompliant a temporary reprieve in the form of an extended deadline to meet the law’s requirements.

That reprieve came on the heels of a ruling last week by the Supreme Judicial Court that state officials had the power to enforce the law but must put its detailed guidelines through a formal regulatory process. The Healey administration on Tuesday filed emergency regulations while they do that, but also extended the deadline for noncompliant communities to July, leaving places like Needham more time to figure out a zoning plan.

DOJ accuses landlords of collusion to raise rents

Mon, 13 Jan 2025 16:45:03 GMT

DOJ accuses landlords of collusion to raise rents

Landlords are accused of colluding to raise rents. See where.

By Alyssa Fowers, Szu Yu, Chen, Steven Rich, and Rachel Lerman

January 8, 2025

Millions of rents across the United States may now be set using one company’s algorithmic software, according to a federal lawsuit and a Washington Post analysis.

RealPage, a property management software company, uses a trove of data to suggest rental prices to landlords. The software has been widely adopted by property managers — and is now facing strenuous legal pushback.

Over the past three years, the company has been sued by the federal government, which alleged in August that it unlawfully decreases competition among landlords; by several individuals; and by the governments of Arizona and D.C., which have accused RealPage and dozens of property management companies of colluding to raise prices.

On Tuesday, the Justice Department expanded its suit to sue six large landlords, which it says operate in 43 states and D.C.

To assess how widespread use of RealPage’s rent software may be, The Post identified 3.1 million market-rate rental units managed by companies named in the lawsuits. That analysis found 10 counties where more than 1 in 3 multifamily units are managed by a property company allegedly using a rent-setting program from RealPage.

Access to competitors’ rental data is at the center of the legal battles against RealPage. The Justice Department alleges landlords provide private rental data to RealPage, which uses its technology to train the company’s pricing algorithm and make suggestions to landlords on what to charge.

“These recommendations are based on the sensitive information of their rivals,” the suit states.

One landlord using RealPage revenue management technology started increasing rents within a week of using the program, raising prices more than 25 percent in 11 months, according to the suit.

In a video on its site, RealPage said it helps properties “exceed the market” by 2 to 5 percent in revenue. But the company has said that its software — the latest version of which is called AI Revenue Management, or AIRM — does not let clients see competitors’ specific rents and that its “price recommendations are based primarily on the subject property’s own internal supply and demand data.”

RealPage said about 600 customers use its revenue management software for more than 4.5 million residential units. RealPage declined to provide their locations, citing customer confidentiality, and said The Post’s map would be “highly inaccurate” without that confidential data.

Among property management companies named in the lawsuits, some have stopped using the software, RealPage said, while others do not use it at all their properties. In court filings, the defendant property management companies have broadly denied allegations of collusion.

The lawsuits indicate that use of RealPage’s software is widespread: They list more than 50 property management companies, including some of the largest in the country, as customers of at least one of three RealPage rent-recommending programs.

Nationwide, the named companies manage at least 12 percent of all multifamily housing units, a Post analysis found, often concentrated in areas that have seen recent building booms. Of units built since 2020, more than 70 percent are managed by alleged clients of RealPage’s rent-setting software.

In the region around D.C., the first government to file suit against RealPage, about 24 percent of multifamily units are managed by companies alleged to have used RealPage’s rent software.

These buildings are often new high-rises chock-full of amenities. In just one square mile of Washington’s Navy Yard neighborhood, for example, where an onslaught of development has sent rents soaring, 22 buildings are managed by companies named in the suits, according to The Post’s analysis.

Rent prices in D.C. increased 1.6 percent from June 2023 to June 2024, and are up more than 10 percent from their pre-pandemic levels.

In its lawsuit, D.C. alleges that RealPage and property management companies used the software to “inflate rents for tens of thousands of apartments across the District, causing District renters to pay millions of dollars they would not have.”

In one case, the D.C. lawsuit alleges, RealPage sent a monthly report in 2022 to property management company WC Smith, stating the company was able to increase revenue per unit by 4.6 percent.

RealPage has disputed that its technology is designed to raise prices, saying it is intended to adjust prices based on supply and demand, and it recommends both price increases and decreases. RealPage also argued that rent increases have been lower in the areas of Maryland and DC where use of its software is more prevalent.

Many Boston residents left reeling at new tax bills

Sat, 11 Jan 2025 14:59:20 GMT

New tax bills leave many Boston residents reeling.

January tax bills have gone out in the city of Boston and they've left many residents reeling. It's my estimation that this will create an unfortunate new shift in home ownership, with many elderly residents choosing to move on, when and where they can.

‘Lord help me... I can’t afford it.’ Jan. property tax bills leave some Boston homeowners reeling.

By Niki Griswold Globe Staff, Updated January 9, 2025

Betty McGuire has lived in her Dorchester house for nearly 60 years. She now worries about how she will afford to stay in her home after receiving her January property tax bill, which included a close to 45 percent increase from her previous quarter bill.

Betty McGuire has lived in her Dorchester triple-decker for nearly 60 years. It’s where she and her husband raised their nine children and watched their family grow to include 19 grandchildren and seven great-grandchildren.

“I want to be able to leave it” to them, McGuire, 80, said. “We’ve been here all our life. The kids have all grown up here.”

But as Boston’s cost of living continues to climb , staying in her home feels increasingly challenging. When her latest property tax bill landed in her mailbox at the start of the month, her concern intensified. It was about $260 higher than her previous quarter bill, a 44.5 percent increase from her last bill in October — far more than she expected.

“‘Lord, help me to make it,’ that’s all I was thinking about,” she said. “I can’t afford it, but I don’t know what to do.”

McGuire isn’t the only Boston resident feeling the pinch this month, as homeowners and other residential property owners across the city open their January property tax bills. These are the first bills issued since Mayor Michelle Wu failed to convince state lawmakers to grant her the power to temporarily shift more of the city’s tax burden onto commercial real estate. Wu’s goal was to soften the blow for residents like McGuire. The state Senate rejected Wu’s proposal last month after final city numbers showed homeowners would face lower increases than Wu’s administration initially projected.

Now, Boston residents are seeing the result of that political wrangling, printed right there on their third-quarter tax bills .

For retired seniors such as McGuire, living on fixed incomes, the higher tax bills hit particularly hard. She is set to pay about $535 more in property taxes this year than she did the previous year, around a 22.7 percent year-over-year increase.

McGuire’s resources are already spread thin. Since her husband died in 2008, she’s survived on her Social Security check and rent payments from tenants. Several of her family members live in the four bedrooms on her second floor, and three elderly residents rent out the third. But she doesn’t charge any of them close to market rent; they can’t afford it.

“What am I gonna do, throw them on the street?” she said. ”I believe in helping people. They all came, asked ... could they live here because they had no place to go. And I said, ‘Yes.’”

Altogether, she has barely enough to pay her mortgage and bills every month, McGuire said. There’s rarely any money left over, let alone enough to pay her higher property tax bill. “I’m wondering what I’m going to do,” she said.

She’s not alone.

Paulette Durrett, a 76-year-old retiree, said she was “shocked” when she saw her January tax bill for the Mattapan home she’s owned since 1983: It was more than double what she paid in the previous quarter.

Her taxes went up by more than $223, or a 133 percent increase from her October bill. She will be paying an additional $447 in taxes this fiscal year, 66 percent more than last year.

She’s determined to stay in her home, but whether she’ll be able to worries her.

“I’m more concerned than I was before, because I was starting to think that the increase would only be 10 percent or 30 percent at the most,” Durrett said, adding that she’s trying to cut back on her heat bill and other expenses to compensate. “But, quite frankly, I’m 76. Where am I going, right? I’m a Bostonian. ... This is my home.”

Sherry Peterson’s January tax bill is almost $500 higher than her October bill, a 40 percent increase. That translates to nearly $1,000 more the 76-year-old Mattapan homeowner expects to pay this fiscal year in property taxes compared with last year, a 20 percent jump.

“Every year it gets more expensive to keep living here. Who can afford these increases?” Peterson said.

Not all homeowners experienced dramatic spikes in their taxes this month. But for some, even smaller increases can hurt.

Adonica Chaplain, 78, relies on her pension and Social Security checks to make ends meet and said she is already struggling to pay for rising home insurance, utilities, and grocery costs.

Her January property tax bill for her Hyde Park home was nearly 13 percent higher than her previous quarter bill, and she is set to pay about $152, or 6.4 percent, more in property taxes this fiscal year, according to property tax records. That amount still feels like a stretch for Chaplain, given her fixed income.

“We’re living paycheck to paycheck,” Chaplain said. “You just do what you have to do ... [but] any increase makes it tough.”

McGuire, Durrett, Peterson, and Chaplain are all part of the grassroots advocacy group Massachusetts Senior Action Council , which spent months lobbying lawmakers on the City Council and Beacon Hill to support Wu’s legislation. The seniors argued the measure was essential to help shield them and other vulnerable residents from sharp property tax increases. State Senate lawmakers, including Senator Nick Collins of South Boston, ultimately killed the proposal, pointing to final data that showed the coming tax spike for residents was not going to be as severe as the city had previously projected.

The Senate’s argument rings hollow to 65-year-old Roslindale resident Tony LaCasse. LaCasse followed the debate over Wu’s tax proposal as it played out on Beacon Hill and said at the time he was sympathetic to Wu critics, including opponents in the Senate, who warned the proposal could hurt the business sector , even as he understood Wu’s desire to help residents. He also understood that, thanks to a large commercial tax base and a high residential exemption, Boston homeowners pay lower property tax bills than residents in many surrounding towns. So he thought a moderate tax increase would be acceptable.

But he was “flabbergasted and puzzled,” he said, when he opened his January tax bill, containing a 68 percent increase over the previous quarter’s bill. While he said he can afford the $270 quarterly increase, many others can’t, he said.

“After the bill failed to pass the state Senate, there was a lot of finger-pointing at the city, over saying that they provided inaccurate numbers and overstated their case, and that doesn’t appear to be the case, in terms of my experience just opening up this tax bill,” LaCasse said.

Ultimately, he said he blames state senators for his higher taxes, as well as the state’s home rule petition system , in which municipalities have to get state approval to change a wide variety of local laws — a legal structure most other major US cities do not face.

“A lot of [the city’s] day-to-day business is subject to legislative oversight, and in many cases, never gets acted on,” he added. “That’s not good government.”

Collins said in a statement that “residents need relief” but Wu’s proposal was the wrong mechanism to provide that help. He encouraged residents to apply for a tax abatement and pushed the city to use its participatory budgeting surplus to provide support to vulnerable homeowners.

City spokesperson Emma Pettit said in a statement that while the average single-family home’s property taxes went up by 10.4 percent in January, that “masks” the full range of tax increases residents are experiencing . She pointed to an online tax calculator residents can use to see how much the mayor’s proposal would have lowered their property tax bills this quarter.

The 10.4 percent annual figure was based on a single-family, owner-occupied home valued at $838,000 in fiscal 2024, which saw a 4 percent increase in value this fiscal year. Individual property owners will see tax increases that are bigger or smaller than that 10.4 percent figure, depending on how much their specific property changed in value. Also, since the city is halfway through its fiscal year, that annual increase is being stuffed into two quarters, rather than four.

McGuire, while stressed and frustrated, said she is unsure about whom to blame for her higher bill.

“But I know that the Legislature and the councilmen and all those [elected officials] could run their job better by considering who these increases hurt most,” she said. “I pray that it doesn’t put a lot of seniors out of their homes.”

Andrew Brinker of the Globe staff contributed to this report.

Governor Healey's new housing bill implements Homestead Law

Tue, 07 Jan 2025 16:59:58 GMT

Massachusetts housing bill and the new Homestead Law

Great news as borrowed from my real estate legal advisor, Stefan Nathanson: The Massachusetts Homestead Law (Ch. 150 of the Acts of 2024) recently changed as part of the Governor’s new housing bill. A homestead estate provides limited protection of the value of a principal residence against unsecured creditor claims.

All homeowners receive an automatic homestead exemption of $125,000 even if they have not formally recorded a declaration of homestead.

Declared Homestead: All homeowners who have recorded a declaration of homestead at their county Registry of Deeds now receive an exemption of $1,000,000 (increase from the previous exemption of $500,000).

Elderly or Disabled: All homeowners who are over the age of 62 or who are disabled receive an exemption of $1,000,000. This exemption is doubled for a married couple who are co-owners ($1,000,000 each).

Another good change: The new law provides additional protections to spouses that are not listed as owners in their principal residences. For example, protection extends automatically to a new spouse where an unmarried person declared a homestead and later marries.

Over 80% of mortgages are under 6%

Sun, 05 Jan 2025 16:29:33 GMT

Recently released Q3 2024 NMDB data reveals:

Borrowed from Odeta Kushi, VP Deputy Chief Economist at First American Corporation

Recently released Q3 2024 NMDB data reveals:

21.3% of mortgaged homes have a rate < 3%
33.9% have a rate 3.0 - 3.99%
18.1% have a rate 4.0 - 4.99%
9.5% have a rate 5.0 - 5.99%
17.2% have a rate >= 6.0%

82.8% of mortgaged homes have a rate below 6%, that's down from the peak of 92.7% in Q2 2022. The share of mortgaged homes with a rate above 6% is the highest since Q4 2016.

The lock-in effect will continue to limit market potential in 2025, but it’s not the only factor. While financial considerations are crucial in deciding to buy or sell a home, lifestyle choices and events—such as death, divorce, diplomas, downsizing, and diapers—also play a significant role. Mortgage rates are unlikely to drop enough next year to ‘unlock’ most homeowners. Therefore, the driving force behind sales activity will remain the five Ds.

Renters hate to pay broker fees. Will this change in Massachusetts?

Sat, 04 Jan 2025 16:11:59 GMT

Renters hate to pay broker fees. Will this change in Massachusetts?

Lesley Palmiter Real Estate

Published by Lesley Palmiter

Renters hate to pay broker fees. Could this be the year those fees go away?

By Spencer Buell Globe Staff, Updated January 4, 2025, 6:00 a.m.

This is a long overdue conversation on tenancy in general, Massachusetts, in particular. It's a fraught situation with strong opinions on both sides about who should shoulder the cost of the action: the state or municipalities. Nevertheless, as a longtime advocate of affordable housing, I welcome it.

New York has already taken the plunge to make landlords responsible for paying the agents for facilitating their client's housing, not the tenants. There's an argument that it would raise the rent to cover the agent fee. However, as rentals are just as competitive as other housing, it's possible that landlords may insist on a lower fee for agents. Or that it might be negotiable.

Despite the possible upheaval it would cause, similar to new rules recently instituted to the purchase market, I see this a a positive change.

Read on.

Three-deckers on Albion Street in Somerville, a city where it is common for tenants to pay a broker fee before moving in.

Three-deckers on Albion Street in Somerville, a city where it is common for tenants to pay a broker fee before moving in. David L. Ryan/Globe Staff.

SOMERVILLE — Moving to one of the most expensive rental markets in the world requires sacrifice. Most of those who opt to settle around here understand they will pay handsomely for the privilege, trading a high sticker price for access to colleges, culture, walkability.

What they may not know, but learn quickly, is that here — and almost nowhere else — there can be another barrier to entry: Tenants are typically required to pay a fee to their landlord’s broker, usually a month’s rent, before they can move in. A bitter pill, and one they may need to swallow several times as they move from place to place.

“The rent here is already so high. The fact that we also have to pay a broker fee is just insane to me,” said Bryan Daley, 29, explaining he recently paid $3,200 to a broker he met only once, briefly, during a tour of a two-bedroom Somerville unit via FaceTime. “We’re not the ones who hire the broker, but we’re the ones who have to pay them.”

Among renters, the system is reviled, and a rite of passage in a tight market that gives enormous leverage to landlords.

Now, hoping to capitalize on the momentum from a New York City Council vote in November to prohibit tenant-paid fees, elected officials in Somerville, Cambridge, and Boston are mounting a newly invigorated effort to end the practice.

But unlike New York, where the city council was able to change the law on its own, communities in Massachusetts need approval from the Legislature for such a change, and Beacon Hill lawmakers have historically avoided tinkering with the status quo.

Supporters of allowing landlords to pass the fee on to tenants say that it helps ensure a smooth transfer of apartments, in line with tenant-focused laws on high-stakes measures like lead mitigation and fair housing, and that brokers in Greater Boston — where the job is known to be a grind — are fairly compensated.

Related: Renters are vexed by broker fees. Brokers say they earn their money. Skeptics also say freeing tenants from the burden of paying the fee would do little to bring down the cost of housing: After all, if landlords were forced to pay it, they could just raise rents accordingly.

But that’s a debate that should happen in Somerville, not on Beacon Hill, city officials say.

“It’s just infuriating to have to tell people who live in Somerville that our powers are really limited at the local level,” said Councilor Ben Ewen-Campen. “The real estate industry has a much easier time getting their way politically on Beacon Hill than they would in a city hall of a city where our constituents are facing this hellish housing crisis.”

Last year, the state Senate included a ban on tenant-paid broker fees in a major housing bill, but the measure wasn’t in the House version, and didn’t make it into the final one the governor signed in August. Some state representatives have said they would try again this year.

Other home rule petitions on renter policy have gone nowhere on Beacon Hill in recent years, including efforts by Somerville and Boston to bring back rent control. But this year, they hope the combined effort of those three cities — with perhaps more to follow — will put additional pressure on Beacon Hill. Boston, Cambridge, and Somerville alone account for 12 percent of the Massachusetts population, and are home to a significant portion of renters statewide.

“It makes absolutely no sense” that Somerville residents “should have to suffer” because the State House, not city officials, controls how apartments are rented, said City Councilor Willie Burnley Jr., himself a renter, who is helping lead the municipal charge.

There are many explanations for the lack of action on the issue at the State House, but local officials note the difference in housing status between the renting population and state lawmakers. A Globe report last year found there are more landlords than tenants in the Legislature, and at least 86 percent of state lawmakers own homes.

There are more landlords than tenants in the Massachusetts Legislature. Still, there is hope among some legislators that they can pass a statewide ban this year, which some argue would be preferable to having the rules set city by city, said Senator Will Brownsberger, who represents parts of renter-heavy Cambridge and Boston, but also Belmont, where most people own.

“I’m a strong believer that we need to have statewide policies — otherwise it creates confusion and complexity. That’s not in the interest of housing development and tenants broadly,” Brownsberger said.

He said other recent votes in the State House backing new eviction protections and access to free legal counsel for tenants showed “there’s a strong support for tenants in the Legislature.”

The virtual consensus in Somerville, meanwhile, is that ending forced broker fee payments is simply common sense.

Ask around.

“It just makes it that much harder for people to rent in an already incredibly expensive market,” said Matt Brunelle, a 31-year-old software engineer who now lives in Arlington and said he has paid five broker fees, north of $10,000 total, to move into apartments over the past decade.

“We didn’t even need to use a broker to find my current place,” said Tyler Harley, 32, who recently moved from Cambridge to East Boston, and said his landlord made him pay the fee anyway. “But you still have to pay what they ask you to.”

Average rents for a two-bedroom apartment in Somerville, Boston, and Cambridge are $3,000, $3,295, and $3,450, respectively, according to Zillow. That means moving from one apartment to another can require cash on hand of more than $13,000 — first month’s rent, last month’s rent, and a security deposit up front.

Still, banning tenant-paid broker fees could disrupt a real estate industry that has worked this way for many years, and perhaps not for the better, said Demetrios Salpoglou, chief executive of local real estate listing sites Boston Pads and Cambridge Pads.

He said renters tend to take for granted how much work a licensed broker does to make the process of finding and moving into an apartment go smoothly, be it arranging early-morning and late-night tours of units, or running background and credit checks while following state and federal law. A lot of what they do a smalltime landlord wouldn’t, or couldn’t, do properly on their own.

“Real estate agents work really, really hard for their commissions,“ he said. “There’s so much behind the scenes that the consumer doesn’t know.”

If landlords had to pay the fees themselves, Salpoglou said, they might opt to handle the transaction without a broker, creating new risks and headaches that prospective tenants would have to endure. Or they might start negotiating with brokers, and pay them a lot less.

Related: Micro-apartments will become a cost-effective solution for renters — eventually

It would turn what was once a relatively seamless, if expensive, process into chaos, he said, without meaningfully lowering the cost of housing.

“This is a distraction,” he said. “We have to start asking the right question. Which I think is, ‘How do we rapidly increase supply?”

The Greater Boston Real Estate Board, for its part, doesn’t support landlords forcing tenants to pay broker fees. “We believe that whoever brings the broker to the transaction should be responsible for paying the fee,” said Greg Vasil, its CEO.

How to prevent frozen pipes in your home

Wed, 25 Dec 2024 16:12:25 GMT

How to prevent frozen pipes in your home

December 25th, 2024 Lesley@lesleypalmiter.pro

Every year many Boston area residents are faced with the cost and headache of dealing with a frozen accident, called a pipe. These pipes are often located in basements because of their proximity to the outside in a space not typically heated. However, in a particularly bad cold snap, a frozen pipe can happen anywhere. Know that there are mitigation techniques. Below are some, as presented by The Boston Globe.

New England freezes

New England has become accustomed to warmer winters during the past several years, but the big freeze is back. Temperatures have plummeted in recent days, with lows reaching single digits in many parts of the area. This has plumbing companies working overtime.

Mike Sullivan, of CBS News, Boston, interviewed Dominic Federico, a plumber with 128 Plumbing, Heating, Cooling, and Electric on December 23rd. “We have been very active lately with a lot of frozen pipe calls and no heat calls.” Federico added, “in the last week, it was over 100 customers.”

How to prevent frozen pipes

Federico offered some tips to prevent frozen pipes: “If you haven’t done this before, homeowners should disconnect hoses from outside spigots and shut them off inside to reduce the chance of frozen pipes. More seasonal preparedness tactics ahead of winter include “checking the batteries in thermostats, and to make sure furniture does not block baseboards,” he added.

Offering more safety related advice, Federico said: "With any high efficiency equipment or a power water heater you have to make sure the vent outside is not frozen or covered in snow or anything like that because then carbon monoxide is going to back up into the house.”

Advice like this is especially important in older homes with less insulation. Newer homes include systems with safety alerts built in. "Now there is smart technology to find out you are having a problem before you have a problem," added Federico.

This real estate agent adds that even with pipes located inside the house but in an area where temperatures remain cold during the winter months, such as a basement, wrap them in a thermal material, such as heat tape or thermostatically controlled heat cables.

Temperatures are expected to remain frigid for several days, especially overnight.

Merry Christmas and Happy Hanukkah! Should you have any questions or need help selling or buying property, contact me at 617-275-6240 or Lesley@lesleypalmiter.pro. Because everybody needs a pro!

Why doesn't the Fed rate reduction lower interest rates?

Tue, 24 Dec 2024 16:40:39 GMT

Why doesn't the Fed rate reduction affect interest rates?

Lesley Palmiter Real Estate

Published by Lesley Palmiter

People often ask, “if the Fed just lowered the interest rate, why aren’t mortgage rates dropping too?” The following is what the Federal Reserve does. (Attribution to Bankrate with this writer’s marketplace observations.)

The U.S. Federal Reserve sets borrowing costs for short-term loans by changing its federal funds (prime) rate. This dictates how much banks pay each other in interest to borrow funds from reserves, kept at the Fed on an overnight basis.

In 2022 - 2023, the Fed increased this key interest rate to help calm inflation — hikes that made it more costly for Americans to borrow money or take out credit. This appeared to have the right effect, as throughout late 2023 and 2024, inflation softened.

Fixed-rate mortgages — the most popular type of home loan — don’t mirror the federal funds rate, they track the 10-year Treasury yield. The fed funds rate affects short-term loans, such as credit card rates and the rates on new home equity loans and lines of credit.

The Fed also buys and sells debt securities in the financial marketplace. This helps support the flow of credit, which tends to have an overarching impact on mortgage rates.

This broker, agent, and analyst, predicts that certain “hot spots” of population exit migration throughout the country, the Boston area among them, will cause a significant bump in available inventory, beginning in spring of 2025.

Available inventory will affect pricing, but not necessarily interest rates right away. Those in the lending industry project these rates to remain between 6 - 7% throughout 2025.

Should you have questions or would like help selling or buying, contact me at 617-275-6240 or Lesley@lesleypalmiter.pro. Because you need a pro!

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December 25th, 2024 Lesley@lesleypalmiter.pro

Why doesn't the Fed rate reduction lower interest rates?

Why doesn't the Fed rate reduction affect interest rates? ﻿

Why doesn't the Fed rate reduction affect interest rates?