Commonwealth Blog

By Nick Patsio

President and CEO

At a recent gathering of real estate professionals of which I was a part, a rather interesting question was posed.

“Do people choose an individual real estate agent, or do they choose the brokerage for whom they work?”

The ensuing discussion was exhaustive and filled with more than a little hot air, but it got me thinking. What really matters to our customers and clients? What really matters to you?

At CENTURY 21 Commonwealth, we take the approach that everything matters. Everything is important. We are only as strong as our weakest link.

We take great care to hire only the best agents. And by “best”, I don’t just mean those who make lots of sales or who bring business to our offices. When I say “best”, I mean those agents who continually set higher standards for their work, to embrace innovation. I mean those who are willing to go the extra mile (and further, if necessary) for their clients and customers.

While many brokerages see fit to hire anyone with a pulse, we have no interest in merely filling our offices with bodies. At Commonwealth, our agents are the ambassadors of our brand. They’re carrying our name out into the field and their actions, good or bad, polish or tarnish our brand accordingly. Their skill, caring, and expertise is a direct reflection on us and the sort of business we endeavor to run.

You might ask yourself, “If I have a great agent, why should it matter to me whom he works for?”

On the surface, that question makes sense. But scratch just below it, and it makes no sense at all. Why does it matter?

It matters because, when push comes to shove, you want someone who is backed up by resources. There are plenty of real estate brokerages who hire agents (more to the point, who collect fees from agents and do very little else) and send them on their merry way with a few yard signs, never to give them another thought. Is that the sort of company that you want representing you?

At Commonwealth, we do things differently. We stand behind every one of our real estate professionals. We put the strongest resources and best technology behind them. We want everyone to know that Commonwealth stands for quality, not just a stable of relatively warm bodies who are doing the bare minimum. Our agents deserve our support, and our clients most certainly do as well.

Why this question should matter, why you should want both a great agent and a great brokerage is that while each is great individually, the strength generated by their combination is unbeatable. When you’re embarking on what is, arguably, one of the most important decisions - financial or otherwise - of your life, why would you settle for anything less?

By: Nick Patsio

President and CEO

In reading up on Gen Y - loosely defined as those born between the late ’70s and late ’90s - something that struck me as significant was this notion that Gen Y and baby boomers view home buying as starkly different things. A baby boomer would say buying a home is an investment, whereas their younger counterpart would say it’s a lifestyle choice.

I came across an article that dove deeper into the reasoning behind why Gen Y delays home buying compared to boomers. Based on a panel discussion sponsored by the Urban Land Institute, the article mentions that most in Gen Y do not have the resources to buy a home in their 20s. They tend to take breaks from work to travel, which can cost them lost wages and earning potential at this point in their careers.

The article also looks at affordability:

“(T)he average Baby Boomer could afford a home with $48,000 annual income if they bought a home in the early 1980s whereas a Generation Y household would have to bring in $142,000 per year to afford a home today.”

Obviously, all of these things have an impact on the housing market as young, first-time buyers are essential to the move-up market.

What strikes me about this trend of Gen Y delaying home buying is that there’s not a bigger conversation going on. Is it really that Gen Y does not want to buy homes? Or is it that they can’t afford the homes that are available to them? Are they really looking for a different type of ownership than we’re used to?

I think it’s important to engage in this conversation. Statistics show that Gen Y, estimated at 70 million individuals, is even larger than the baby boomer generation. Their habits, preferences and economic situation will have a big impact on real estate.

The current slowdown we’re seeing in real estate is no doubt caused by economic forces - job loss, foreclosures, tightened credit. But in the recovery, there is this other aspect that’s not being discussed as much - this “lifestyle” choice that is a little fuzzier than what we’re used to.

The good news is that lifestyle is exactly what real estate agents are good at understanding. Who better can tell you the little things about a neighborhood or city that don’t get captured in an online listing or for-sale sign? I believe that the more we understand each other, the easier it will be to accommodate Gen Y’s lifestyle choices.

RISMEDIA, June 25, 2010-Century 21 Commonwealth announced it is one of the top ten ranking Century 21 companies in sales production in 2009.

According to the company, Century 21 Commonwealth was established in 2006 when seven individual Century 21 companies in the Greater Boston Area joined forces to better serve the region’s home buyers and sellers. Now, one of the leading Century 21 brokerages in New England, the company consists of 500 sales representatives serving 150 communities.

“Congratulations to Nick Patsio and his entire team,” said Rick Davidson, president and Chief Executive Officer, Century 21 Real Estate LLC. “Century 21 Commonwealth is an exceptional example of what it means to provide The Gold Standard for real estate service.”

View the article here:  

Century 21 Commonwealth Recognized as Top 10 Company in Sales | RISMedia

By Nick Patsio
President and CEO

What are you really looking for when you decide to buy a home? Shelter, of course – a place you can call home that is comfortable, safe, and reflective of your own tastes.

And in that regard, looking for a home online can be pretty satisfying. There are hundreds, if not thousands, of websites displaying property listings today. Most of them give you basic information along with a few photos.

When you see one you like you might choose to move to the next step and contact a Realtor.

But what most buyers are looking for – and where most real estate websites fail – is an answer to a simple but important question:

Can I live here?

Answering that question requires something more than a list of properties for sale.

What you need is information that allows you to decide if the place in which a property exists meshes with the way you like to live life.

You may want to know:

Is there a good coffee house close by?

Are there day-care options near this property?

Is the elementary school within walking distance?

These are the things that get to the heart of the matter – the lifestyle factors that make a house a home.

We understand this at CENTURY 21 Commonwealth and built technology to support this sort of decision. When you conduct a property search on Commonmoves.com,  you will see a clear list of properties (along with some very cool mapping tools), but you’ll also see a link on the left side of the page that says “schools, cafes, groceries and more.”

You can then choose from over two dozen types of amenities – from banks to restaurants – and display them on a map. 

Of course, the best way to truly understand a property and its neighborhood is to work closely with a good Realtor, but with this view you can get much closer to an answer to that all-important “Can I live here” question.

Happy searching!

April 21, 2010

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Commonwealth has developed an unparalleled in-house marketing arm that has an enviable, proven record of moving homes for sellers. Now, when you list your home with CENTURY 21 Commonwealth, you’ll not only get connected to a neighborhood expert, you’ll also be automatically entered into our $8,000 List Your Home Sweepstakes.

To learn more contact us today!

Official Rules

By Nick Patsio

When will the nation’s property values begin to appreciate again? This is the $64,000 question that real estate professionals, investors, and mortgage professionals would like to know. The truth is nobody can accurately predict the return of the real estate market.  Like everyone else, I can’t predict the end of this crisis either, but what I can do is tell you what will have to happen to facilitate that change. The answer is quite simple: America must reinvest in herself once again. Without an investment, real estate is as worthless as the Dollar is today.

Think back, or read a history book, about how families in the ’40s and ’50s used to buy homes. Young couples lived with Mom and Dad during the “courtship” prior to getting married, until they had saved 20% to put down on their “dream home”.  They made an investment in America, (i.e. the American dream). In the years that followed we have devalued that investment in lieu of credit and the easy access to it. Property values rose artificially and our nation became addicted to credit.

The value of the dollar has been demolished due to the same principle. When we place value in assets based on their ability to be easily bought and sold versus the value that has been invested in the asset, we devalue its worth. For example, two years ago I could have bought an $800,000 house. The owner of that asset (the $800k house) placed value on his asset based on the availability of buyers who could buy the home. The problem is, this homeowner probably had less than 5% invested in the home. Where do you think that homeowner is today?

Had he put 20% down on his home, he would then own a valuable asset in which he has a real investment. This outlay of cash forces him to buy and sell his home in the same manner he would move an $800k investment around in the stock market – very carefully. Thus, the home has REAL value. However, having bought the home with little or no money down, the asset became disposable and so follows the real estate market.

So, as I said earlier, I cannot predict when the real estate market will bounce back, but I can tell you what needs to happen before it does. America needs to reinvest in herself by getting back to solid buying and selling principles. This strengthens home values, which encourages investors who employ builders who employ carpenters, painters, real estate agents, loan officers and so on. America was built on the “American Dream” which has turned into the “American Nightmare”; she can only be rebuilt by hard working Americans, not by Wall Street.

By Nick Patsio

President and CEO

Even in a “normal” year (when someone actually finds one of those, please tell me), I am bombarded each spring with questions about real estate transactions and their implications on Federal and State income taxes.

In a year in which we’re experiencing continued economic hardships, and since many of those hardships relate directly to home sales and foreclosures, I’m getting far more than usual.

Right out of the blocks, I tell them that I’m not a tax professional and that any questions that they have ought to be directed to their accountants and financial advisors. That said, I like to do all I can to help folks out, so I answer questions where I am able.

One of the most frequent questions I hear — and the one whose answer seems somewhat out of reach — pertains to short sales.

“I sold my house this year, but it was a short sale. Can the IRS or my state tax the forgiven debt?”

The answer is, “Yes. Yes, they can.” A better question is, “Will they?”

With regard to the Federal Government, the answer is “no”. In a move meant to encourage homeowners to work out alternatives to foreclosure, the Federal Government has placed a moratorium on the taxation of forgiven mortgage debt through 2012.

Many states have followed suit, but there are a great many that have not.  Check with your tax preparer for more information regarding the rules for your state.

While it may sound unfair, forgiven debt has always been treated as income and, until the Mortgage Forgiveness Debt Relief Act of 2007 was enacted, that income could (and would) be taxable.

If you sold your home last year and that sale was a short sale, there are heady tax implications attached to it. It is imperative that you consult with your accountant or financial advisor, so that you can adequately prepare to meet the tax man, should he come a ‘calling.

By Nick Patsio

President and CEO

Century 21 Commonwealth

Over the course of the last year or so, a lot has been written about the Homebuyer Tax Credit. There are some faint rumblings among lobbyists and in Congress about whether it’s going to be extended yet again (I’m betting that it won’t), but for those who are already eligible, how to claim the credit isn’t exactly … straightforward.

For one thing, there are two different credits with which to be concerned: the original First-Time Homebuyer Tax Credit, and the extended Homebuyer Tax Credit. Each has different rules; each has its own set of quirks and foibles.

First, let’s recap who’s eligible to claim the credits in the first place.

If you purchased a home between January 1, 2009 and November 6, 2009, you may be eligible for the Homebuyer Tax Credit, as it originally stood.

To qualify, you (the buyer) must not have owned a home for three years prior to your purchase. Your new home must be your primary residence, meaning you can’t use it for a vacation home or an investment property — you actually have to live there. The maximum allowable credit is equal to 10% of the purchase price, up to $8,000. Single buyers with incomes up to $75,000 per year or married couples with incomes of up to $150,000 are eligible.

That’s pretty clear. When it comes to the extended tax credit, things are a bit hazier.

If you purchased (or if you intend to purchase) a home between November 7, 2009 and April 30, 2010, you may qualify for the extended Homebuyer Tax Credit.

If you are a first-time homebuyer (meaning that you hadn’t owned home for at least three years prior to your purchase) OR a current homeowner who had lived in a house as a primary residence for five years in a row out of the last eight, you may qualify.

For first-time homebuyers, the maximum allowable credit is $8000. For current homeowners, the maximum credit is $6,500. As with the original credit, the buyer’s eligibility depends on the price of the home (this may not exceed $800,000) and the income. For the extended credit, income levels were increased to $125,000 for single buyers and to $225,000 for married couples. Even if your income exceeds these levels, check with your tax professional to see if you might qualify for a portion of the credit.

As long as there is a contract to purchase in place prior to April 30, 2010, and so long as that transaction is closed before July 1, 2010, buyers can claim the credit on their 2009 income tax returns.

In all cases, buyers will need IRS Form 5405, as well as a fully-executed HUD-1 statement from the property closing.

As always, be sure to consult your tax professional for any questions that you may have on matters such as these. The tax credit won’t be around forever; be sure to take advantage if you’re able!

Welcome to our newly designed enterprise Website and our first blog..

CENTURY 21 Commonwealth is the #1 CENTURY 21 company in New England and #7 CENTURY 21 in the nation. Our agents join us for greater independence, a larger income, extraordinary office support & training, the latest technology & tools, inventive marketing & design, and the opportunity to work with other successful realtors.

At CENTURY 21 Commonwealth we are compelled to stay on the forefront of the industry. Our sales team is provided with innovative marketing programs, cutting-edge technology, and world-class support systems.

Our success is a direct result of our ability to foresee the future and get there first! Our systems and business plan helps position our sales team to do more business – and that means greater professionalism within our agent community, today and in the future. If you are an agent looking for the new real estate company to affiliate with, we are here to listen to you.

What this means to you, the consumer, is a better way to do business. Our tools, including our newly developed enterprise web site, will make searching for a new home or getting your home closed a smooth process. Please take a look at some of the innovative features we have included on this site and come back often to keep on top of what is really happening in your market.

We are looking forward to hearing your comments, answering your questions and watching for your return to our blog often for news that is relevant to your real estate needs.

Sincerely,

Nick

Nick Patsio, CEO

Century 21 Commonwealth