Fall in New England Real Estate

Real estate properties in New England in the FAll
Rural New England, USA autumn foliage: The beautiful Fall season, great for the colors, not for the conventional real estate market.

We are based in the middle of Massachusetts, so pretty close to the heart of New England and Fall is a special season for us.
September has been pretty gorgeous with finally pleasurable temperatures that swing between chilly and warm, and great dry days of sunshine.

Pumpkin season in New England, when home sales slow down, sellers have to scramble and buyers hope to get a great deal!
Halloween soon! Pumpkin season is almost here! As they fill homes and yards, homes also are left unsold.

 However, a beautiful September in Massachusetts this year, 2019, doesn’t mean that the Fall isn’t coming. Leaves are changing colors and are gracefully falling in chain spirals on our green lawns
It’s possibly the best season in New England; the Foliage draws people from all over the globe, Halloween is one of the kids’ favorite times of the year (and of some adults’ too!), apple picking, cinnamon donuts and all that goes on in this beautiful period.
Labor Day marks a change in the real estate market, and it’s not always as pretty as the colors of the season. While it definitely makes many homes look so beautiful, cozy and welcoming by painting them with the warm colors of the New England Fall, it’s also the last chance for sellers and buyers to make a deal and move on.

Home Sellers and Home Buyers may have closed deals and moved during the more favorable Spring season, usually in the last part of it as it tends to start a little late up here, in the North-East of the country. Many others may have closed during the second part of the year favorable for residential sales and purchases, the Summer. All others either drop out of the market, waiting to restart fresh in the Spring or show their motivation and take drastic measures.

The warm colors of the New England Fall are attractive for foliage enthusiasts, not so much for home owners who want to sell, but haven't been successful until now, and it could be late on the conventional market.
Sunny days, warm weather, chilly at night and early morning, and in the real estate market it’s getting cold as well!

For Buyers that means increasing efforts and starting to reduce their expectations, like the towns and neighborhoods that they would like to move to, physical conditions of the property, type of home, features and amenities.
It’s also the time that Sellers really use the only effective option they may have, to finally sell, especially if they went through the whole Spring and Summer without success, a price cut.
We could think that the Sellers’ and Buyers’ actions should finally meet on common ground and real estate sales pick up, but that doesn’t always happen, not to the degree that one could expect and certainly not in all local real estate markets.
The reality is that there are obstacles to a marked pickup in buying and selling activity.
Schools start mostly at the end of August, so families with school-age children, which are approx 1/3 of all potential buyers, tend to postpone a move. Mostly Millennials and Empty-Nesters can take control of the market, but may not be the most motivated buyers to power the marketplace.

The feeling of home is what first time buyers want, but if they have young kids they may postpone their purchase until the end of the school year, unless they are lease-purchasers; then, they just want to buy ASAP!
Bowl of fallen leaves on a tablewhile home prices start tumbling in the Fall season in New England.

Millennials typically struggle to qualify for finance thanks to the heavy burden of student loans that haven’t lead to very high salaries to start out at. They also tend to overlook homes which require any amount of work, even minor. Amenities nearby are considered indispensable, not to mention that they accept the idea of being renters more than other generations, so they don’t pressure themselves into purchasing. There certainly are many other reasons, they just don’t rush into buying as much as other generations.
Empty-Nesters tend to be savvy and have probably been the the process of acquiring a home, possibly more than once, and therefore emotions don’t push them into buying so easily. Their experience also allows them to go through all the steps to buying and selling very cautiously. So they often prefer to wait the market out to sell, in the end, they know that property values tend to rise over time which is great if you’re downsizing as they usually do. Many are also financially more stable and can make thought through decisions, which doesn’t help the number of sales.
Of course there are many other reasons why the real estate market usually slows down during the Fall, especially towards the end, with weather related issues and more, but that’s what often happens in the conventional real estate market of homes sold traditionally, whether through a real estate agent or directly by the owner in a FSBO.

Kids love this time of year and they don’t want to switch schools now, so buyers with school-age kids pull out of the market.

Despite factors influencing both Buyers and Sellers, markets often tip into temperatures that tend to look replicate the weather, so it chills into a “cold market” and is generally perceived as the best time to snap up deals from very motivates Sellers. Many don’t want to go through another Winter in the home they have decided to sell. A cut in price may be the last hurdle before being able to move to a warmer climate down South and may now become acceptable. Psychologically Sellers could be satisfied that they at least tried during the favorable months, but if a 5% cut is what it takes it could still be a tough pill to swallow. Buyers know this, especially in this age of information easily accessible information. The problem is that all unsuccessful Sellers who don’t want to lower their financial expectations enough, as a price reduction of less than 5% is not always very effective, will continue being unsuccessful, the listing go stale and the house unsold.

Other markets are very different and may even accelerate in the Fall and go strong in the Winter, as they are much less sensitive to the classic real estate cycles, like the market we, Proxima Investors specialize in, which is the market of Sales on Terms.
This allows us to position the properties that we purchase in a much less competitive market, offering a deal to a very motivated category of Buyers who are also typically very

Father with Daughters Drawing Face On Halloween Pumpkin and probably not thinking about moving now unless they get a great deal!

Our busiest months are the cold ones here in New England, because Sellers run out of options and start looking around for alternatives and that’s how many of our Sellers find us: looking for a Home Selling solution that works for them. And that’s what we’re about.

At Proxima Investors we sell most of our properties through our program of Lease-Purchase or Lease-Option, in all variants, as we have designed it specifically for our model and unlike any other investor. On the other side of the deals, we purchase the properties we sell in any of the many ways to acquire real estate ranging from Straight Options to Lease-Purchase, from Wholesaling to Delayed Purchase , from Seller Finance or simply CASH depending on the goals of the Sellers and the best method of achieving them. A conventional sale is only cash minus all the closing costs that occur, often as a surprise, in an ordinary Purchase & Sale transaction and the Seller has to take care of everything with that set amount of money and make the most of what’s left after all the costs of a pricey conventional sale.
Almost all homes and many Sellers qualify for at least one of our programs and they all provide a fast selling option for the most financial return. If you’re a Seller or a Buyer, ask to see if you’re a fit for success through our programs, test us and you will probably be blown away by finding out how many options you have outside the box of a conventional sale.

Lease Purchase specialists of Northborough MA
Proxima Investors of New England

More info for our Sellers and our Buyers is available on our websites, by sending a quick email (proximainvestors@gmail.com), easy WhatsApp 617-921-9265, just calling 617-999-0269 or why not message us right here!?

We can’t wait to hear your questions, but in the meantime don’t forget to embrace and enjoy the Fall, so beautiful in New England, it’s really worth it!

Mortgage and Lease-Purchase

Shopping for a Mortgage in a Lease-Purchase Deal

Mortgage Shoppers need time to find the best deal!!!

mortgage, investment, real estate and property purchase and sale
Shopping for mortgages to fund the purchase and sale of a residential property

There are numerous pros in Real Estate Lease-Purchase Deals compared to more traditional ones, but many of them are focused on financing, typically a classic funding tool, a mortgage. It’s a fairly complex process and it takes time and effort, so particularly time is key in securing a loan to purchase a property with good terms, such as interest rates and so on.

In a traditional purchase, the deal is formally initiated by an offer from a potential buyer that is accepted by the seller. It typically comes contingent to obtaining the funds needed to close within a certain timeframe.

For obvious and less obvious reasons the deadline has to be clear and short term, otherwise the longer it takes and the more significant stress will the seller have financially if the deal eventually falls through. examples of the issues which may either arise or amplify are the loss of value of the property, the difficulty in finding another interested buyer, attracting opportunistic businessmen, uncertainty for the future which may make any exact plan very hard to imagine.

Buyers find themselves under pressure if they don’t want to lose the property which would be typically taken off the market in a “pending sale” or “under contract” or similar status. The seller needs to close in a reasonable timeframe to minimize or faces the above issues.

A mortgage application is a process which requires time or it could be unsuccessful
The underlying issues of a conventional seller as opposed to a lease-purchase seller

To pile on, in the easily accessible information age we find ourselves in nowadays, these events are public domain and very few buyers don’t do online research on the properties they’re interested in. When they encounter changes of status, price drops, extended periods of time of active listings and so on, they are much less attracted and may perpetuate the issues.

That’s also why some sellers want to deal with buyers who are preapproved or can provide proof of sufficient funds, or impose other conditions, but the typical effect is to scare off probably most buyers. It’s a strategy that appears to work with sellers with strong leverage and no urge to sell, willing also to deal with the effects of that strategy for a while. Not many who are on the market are in that position, though.

The bottomline is that the traditional process, while it may usually complete smoothly, it could also present challenges difficult to overcome and definitely jeopardize any plan to sell and make the most of what is often the most significant investment that a family makes in a lifetime.

A Lease-Purchase Deal is different, because one of the core features among so many is that with the property what is sold is also time. A period is granted to allow credit dents and defects to be fixed and the general financial picture to be polished and enhanced to the point that a mortgage which was overwhelmingly difficult to get, could then be much more easily closed on and with much better terms. The longer time would allow not only credit enhancements in a “bank friendly” way, but also to shop around for the best deal because time would allow to make the most of many more opportunities.

Stressed home buyers and even more stressed home sellers
The stress for sellers in traditional sales contingent to the buyer getting the funds with a mortgage

It’s also worth mentioning that a home available for Lease-Purchase (some call it Rent-To-Own or similar) attracts much more interest than on the conventional market, which is currently much more of a buyers market than it’s often described, because those who are in the position to get a mortgage are a small percentage of the population and can afford to be “difficult”, while in the “unconventional” market like that of Lease-Purchase transactions, buyers are much more motivated, like Renters who are tired of paying someone else’s mortgage, people in temporary accommodation of some sort who want a stable home for the family, and so on, but mostly with issues which don’t allow them to look on the conventional market.

And this is when and why we, at Proxima Investors, step in and solve the sellers problems by taking the property out of the conventional market and placing it in the less conventional Lease-Purchase market. After agreeing on terms with the sellers and getting equitable interest on the property, we almost instantly get plenty of interest, find all viable buyers, pick the best for the specific deal, design a Lease-Purchase in all the details in lawyer prepared and supervised contracts to suit all parties, and the seller is able to quickly move on and the buyer to move in.

We welcome all enquiries from Home Sellers and Buyers, about all the types of deals we can offer including Lease-Purchase, but also other ways to help Sellers close their sale and Buyers close their purchase.

Creative property solutions for hard to sell properties, difficult mortgage for buyers; it's what we do
We buy the sellers problems, fix them and sell a dream come true to buyers