Docstoc

Colfax Guide

Document Sample
Colfax Guide Powered By Docstoc
					    The
 Colfax
 Guide
   to
BOSTON
Real Estate
              2007
                                     TABLE OF CONTENTS


             1. Introduction
               Letter from the President                          3
               The Colfax Difference and Competitive Advantage    4
               Colfax Management                                  5

             2. The Buy vs. Rent Decision
               Overview                                           9
               Case Study                                         12

             3. Renting a Home in Greater Boston
               Working With a Real Estate Agent                   18
               Overview of the Renting Process                    19
               Renting FAQs                                       22

             4. Buying a Home in Greater Boston
               Housing Search Overview and Preparation            24
               Finding Your New Home and Closing the Deal         26
               Financing Your Purchase                            33

             5. City and Neighborhood Overview:
                Maps and Descriptions
               Boston                                             37
               Brookline                                          40
               Cambridge                                          41
               Somerville                                         44
               Public Transportation                              47

             6. Preparing for Your Move
               Moving Checklist                                   49
               Useful Phone Numbers and Resources                 51

             7. Useful Terms
               Property Types and Listing Definitions             53
               Real Estate and Mortgage Terms                     55

             8. Contact Information                               59

             Appendix
               Condominium Sale Prices by City and Neighborhood   61




V.2007.W.1
                                                                                               LETTER FROM THE PRESIDENT



                          On behalf of Colfax Realty, it is my pleasure to present the Colfax Guide to Boston Real Estate, our
                          most comprehensive resource for your real estate needs. This all-encompassing report provides
                          extensive overviews of the renting and buying processes and acts as a valuable resource for you to
                          explore all that we at Colfax Realty have to offer.

                          Whether you are looking for a rental or thinking about purchasing a home, this guide will give
                          you the means to make educated decisions. Browse through our neighborhood descriptions, city
                          maps, and more. If any questions remain unanswered, visit our website or contact the Colfax
                          office nearest you.

                          Thank you, and good luck!


                          Martin Claure
                          President
                          Colfax Realty Group




                                                                                                                                                                            3
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                         THE COLFAX DIFFERENCE


                          At Colfax Realty, we understand that people today are busier and more mobile than ever. As a boutique
                          real estate firm serving individuals and families relocating to and living in Boston, Chicago, South Florida
                          and New York City, we are highly capable and committed to helping our clients find the housing they seek.
                          We invite you to explore this comprehensive guide and learn more about what we can do to meet your
                          real estate needs.


                              Colfax Realty offers a comprehensive home finding service built
                                        entirely around the needs of our clientele.
                          • Colfax is different. As a niche company, we are miles away from the typical real estate brokerage. We
                          understand the unique needs of individuals and families searching for housing in a new city and we work
                          with our clients to make sure those needs are met. Focusing on relocation clients gives us the expertise and
                          resources that other brokerages simply don't have.

                          • We are a full-service real estate firm. Whether you are looking to buy a home or rent an apartment, we can
                          help you understand the market, evaluate your options and make an educated decision. We strive to provide
                          excellent service and develop long-term relationships with our clients. As your real estate needs evolve, so do
                          the services provided by Colfax.

                          • Our service is personal and web-enhanced. Each client works with a licensed real estate agent on a one-
                          on-one basis, receiving personalized attention and customized resources. This service is complemented by
                          a wealth of research, tools and information available at www.colfaxrelocations.com, a site specifically designed
                          to support long-distance house-hunting.

                          Clients have access to:
                                   • Online databases of rental and for-sale properties, including photographs, floorplans,
                                     building amenities and home features.
                                   • Neighborhood maps and descriptions, financial pro-formas, home-buyer guides, buy
                                     vs. rent calculators and more.

                          • Our approach works. We have a strong record of customer satisfaction and have successfully worked with
                          employees of McKinsey & Co., Deloitte, Kraft, AIG, Bain & Co., Motorola, Morgan Stanley, Bank of America,
                          graduate students at Northwestern, Harvard, MIT, the University of Chicago and many
                          more. Don't take our word for it - visit www.colfaxrealty.com to read client testimonials.




                                                                                                                                                                            4
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
    The
BUY VS. RENT
  Decision
                                                                                                THE BUY VS. RENT DECISION


                          The Buy vs. Rent Decision
                          Deciding between buying and renting a home requires careful consideration. Given the right circumstances,
                          buying a home has several advantages over renting one. Your monthly housing payments go towards building
                          your own equity instead of your landlord's and you can take advantage of substantial tax deductions. More
                          importantly, purchasing a home can also be a solid investment with a high return through property
                          appreciation, value creation (aka “sweat equity”), rental income or instant gain if you purchase a property
                          at a bargain price. Unless you make a cash purchase, your investment will also be leveraged, magnifying
                          your returns by putting 100% of the home's value to work with only a 10-20% down payment. To top it
                          all off, if you live in the home for a minimum of two years, you eliminate capital gains taxes.
                          These advantages, however, may make it tempting to throw caution to the wind and over-extend oneself
                          financially. Overpaying for a property, financing the purchase with no down payment, poor credit or just
                          ignoring the fundamentals and buying the wrong property can easily negate the benefits of home ownership.
                          That is why understanding the market and using accurate data to run the numbers is critical to making the
                          buy vs. rent decision.
                          From a purely financial standpoint, the main differences between buying and renting can be broken down
                          into the following four categories:
                                            1)   Initial investment
                                            2)   Monthly cash flow
                                            3)   Tax benefits
                                            4)   Equity
                          Initial Investment
                          If you decide to buy, you will have to make a down payment and pay closing costs. There is no set formula
                          on how much you should put down when you purchase a home. Minimizing your initial investment by
                          making a small down payment (0-5%) is tempting but your monthly mortgage payments will be higher and
                          you will be less likely to rent the property at even cash flow if you decide to keep the home as an investment
                          property after you move on. Small down payments also put you at risk of finding yourself with a mortgage
                          which is larger than the value of the property. Most of our clients purchase their properties with a 5-20%
                          down payment, which lowers their monthly payments and minimizes their risk while still providing significant
                          leverage to their investment. You should also budget anywhere between 1-3% in closing costs, depending
                          on the market where you purchase the home. Ultimately, your total cash investment will be the baseline
                          that will determine your total return on investment (ROI).
                          If you decide to rent a home, the initial investment is typically one month's rent as a security deposit and
                          first month's rent. In some markets, you may also be required to pay a broker fee equal to one month's rent
                          and/or pay the last month's rent in advance.

                          Monthly Cash Flow
                          In most markets, it is possible to purchase a property that offers the same or higher standard of living as a
                          rental for similar monthly payments. When you purchase a home, your monthly expenses will consist of
                          your mortgage payment (principal and interest), property taxes and condominium assessments (if applicable).
                          Condo assessments pay for maintenance of the building and common areas and sometimes include some
                          utilities you would pay for if you rented (e.g. heat, water, etc.).




                                                                                                                                                                            10
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                 THE BUY VS. RENT DECISION


                          Tax Advantages †
                          When you buy a home and live there as your primary residence, the government lets you deduct the interest
                          and property taxes from your ordinary income. If you decide to rent out your property instead of selling
                          it, the tax benefits change. In the eyes of the IRS, your property now becomes an income-generating asset
                          or “business.” The bad news is that the rent you receive from your tenant becomes taxable income; the
                          good news is that you can depreciate the property and deduct your condominium assessments, interest,
                          maintenance expenses and property taxes. The IRS lets you depreciate the value of the property - not the
                          land - over 27.5 years. The net result of the income from rent and all the deductions is usually a small
                          accounting loss.

                          Equity
                          The main difference between buying and renting is that buying a home gives you the ability to create equity.
                          Equity is created in several ways: 1) your monthly payments paying down the mortgage 2) property value
                          appreciation 3) value creation by improving the condition and appeal of the property 4) instant gain if you
                          purchase a property at a bargain price and 5) rental income if you keep the home as an investment property
                          instead of selling it. Initially, the bulk of your mortgage payment will go towards paying interest and very
                          little will go towards principal. Therefore, most of the equity creation will come from the other four sources.
                          If you choose an interest-only mortgage, your payments will only cover the interest on the loan and will
                          not pay down the mortgage.
                          Appreciation is impossible to predict and depends on supply and demand for housing in the market in
                          which you are looking. Interest rates are perhaps the biggest macroeconomic drivers of property values.
                          Lower rates usually feed demand because housing becomes more affordable. Higher interest rates, however,
                          don't necessarily drive home prices down. As interest rates increase and financing a home purchase becomes
                          less affordable, building costs also increase and dampen housing supply. High interest rates are also typically
                          accompanied by higher inflation, driving investors to hard assets such as real estate and strengthening
                          demand. More inflation also drives up rents, so an investment property would give you an “inflation-proof”
                          source of income.
                          One of the most important things to keep in mind is that since you will most likely get a mortgage to finance
                          80-95% of the purchase price, your cash on cash return on investment is a multiple of the actual property
                          appreciation rate. For example, if you put 5% down, then every 1% in property value appreciation results
                          in a 20% increase in your cash on cash return. The downside, however, is that leverage actually works
                          against you if property values go down. High leverage will also make your monthly payments higher,
                          reducing the likelihood of renting out your property at even cash flow.
                          When you decide to sell, you need to take into account the costs of selling associated with exiting your
                          investment. A seller's closing costs range between 1-3% of the sale price, depending on the market.
                          Furthermore, if you employ a broker to help you sell your property, you will have to pay a commission to
                          your listing agent and another one to the agent that produces the buyer. The total commission is usually
                          between 4-6% of the sale price.
                          Last but not least, remember that if you live in your property for at least two of the last five years before
                          you sell, you don't have to pay capital gains taxes.




                          † Consult competent legal and/or accounting advice for all tax related information.
                                                                                                                                                                            11
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                 THE BUY VS. RENT DECISION


                          Case Study - Buy vs. Rent
                          The following case study walks you through the analysis we would perform for a client who is deciding
                          between buying and renting. Please keep in mind that the numbers are hypothetical. Nonetheless, the
                          approach and financial analysis is the same.
                          Initial Investment - Analysis and Assumptions
                             • Evaluates three options:
                                   1) Rent an apartment for $2,000 / month.
                                   2) Purchase a condominium for $350,000.
                                       - 20% down payment ($70,000).
                                       - Principal mortgage for 80% of the purchase price ($280,000).
                                       - 5-1 ARM loan with a 6.50% rate, amortized over 30 years.
                                   3) Purchase the same condominium for $350,000.
                                       - 10% down payment ($35,000).
                                       - First mortgage for 80% of the purchase price ($280,000).
                                       - 5-1 ARM loan with a 6.75% rate, interest-only.
                                       - Second mortgage for 10% ($35,000). 5-1 ARM loan with a 7.50% rate, interest-only.
                             • Annual property taxes are 1% of the purchase price ($292 / month or $3,500 / year).
                             • Condominium assessments are $250 / month and include heat and hot water.
                             • Condominium purchase includes one parking spot.

                          Monthly Cash Flow Analysis
                          While you live in the property:

                               Renting                           #1     Buying                                       #2           #3
                               Rent                        $ 2,000      Principal                               $ 253            $0
                               Parking                       $ 150      Interest (first mortgage)            ~$ 1,517       $ 1,575
                               Heat                          $ 100      Interest (second mortgage)                 $0         $ 219
                               Hot Water                      $ 25      Property taxes                          $ 292         $ 292
                                                                        Condo assessments                       $ 250         $ 250
                               Total monthly cash flow $ 2,275          Total monthly cash flow               $ 2,311       $ 2,335

                          Conclusion: Total monthly cash flow is comparable for buying and renting.

                          If you move after two years and decide to rent out your property instead of selling it:
                               Renting                           #1     Buying                                       #2           #3
                                                                        Rental Income*                         $ 2,450      $ 2,450

                                                                        Principal                            $ 288               $0
                                                                        Interest (first mortgage)         ~$ 1,482          $ 1,575
                                                                        Interest (second mortgage)              $0            $ 219
                                                                        Property taxes**                     $ 309            $ 309
                                                                        Condo assessments**                  $ 265            $ 265
                                                                        Property management (3% of rent)      $ 74             $ 74
                                                                        Broker commissions ***               $ 102            $ 102
                                                                        Maintenance, repairs and reserves     $ 53             $ 53
                                                                        Total operating expenses           $ 2,573          $ 2,597
                                                                        Total monthly cash flow            ($ 123)          ($ 147)

                          Conclusion: Rental income will finance 94-95% of your monthly expenses.
                          *   The idea is that you purchase a place that can be rented out cash flow positive or break even. By analyzing the rental market with
                              your consultant before you buy, you will be able to compare and price your property vs. the other rental options that are available
                              in the market. Keep in mind your property will be rented out years after you purchase it, when rents will most likely be higher.
                          ** Assumes 3% annual increase in taxes and condominium assessments.
                          *** The standard fee to procure a renter is one month’s rent (in some markets, like NYC and Boston, the tenant pays the broker fee).
                              This table assumes that you pay one month’s rent in commission every two years.
                                                                                                                                                                            12
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                 THE BUY VS. RENT DECISION


                          Tax Benefits Analysis †
                          While you live in the property:


                               Renting                             #1      Buying                                     #2              #3
                                                                           Interest                             ~$ 1,517         $ 1,794
                                                                           Property taxes                          $ 292           $ 292
                                                                           Total monthly deductions             ~$ 1,808         $ 2,085

                                                                           Total annual deductions              $ 21,608        $ 25,025
                                                                           Your tax bracket                         25%             25%

                               Total tax savings                   $0      Total annual tax savings             $ 5,402*        $ 6,256*

                          Conclusion: Buying will save you a substantial amount of money when it comes to paying taxes.

                          * Equivalent to $450/month and $521/month, respectively.


                          If you move after two years and decide to rent out your property instead of selling it:

                               Renting                             #1      Buying                                       #2             #3
                                                                           Rental income                         $ 2,450         $ 2,450

                                                                           Interest                   ~$ 1,482                   $ 1,794
                                                                           Property taxes                $ 309                     $ 309
                                                                           Condo assessments             $ 265                     $ 265
                                                                           Monthly depreciation          $ 955                     $ 955
                                                                           Commissions and management    $ 102                     $ 102
                                                                           Total monthly deductions    $ 3,166                   $ 3,478
                                                                           Accounting loss             ($ 716)                 ($ 1,028)

                                                                           Total annual deductions               $ 8,486        $ 12,336
                                                                           Your tax bracket                         25%             25%

                               Total tax savings                   $0      Total annual tax savings             $ 2,122*        $ 3,084*


                          Conclusion: Your investment will continue to save you money in taxes.
                          * Equivalent to $177/month and $257/month, respectively.




                          † Consult competent legal and/or accounting advice for all tax related information.

                                                                                                                                                                            13
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                 THE BUY VS. RENT DECISION


                          Equity Analysis
                          Two years after purchasing the property:

                               Renting                             #1      Buying                                     #2              #3
                                                                           Property Value*                   $ 386,729       $ 386,729
                                                                           Remaining Loan Balance**          $ 273,531       $ 315,000
                                                                           Exit Costs                         $ 25,137        $ 25,137
                                                                               Buyer Agent (2.50 %)             $ 9,668         $ 9,668
                                                                               Listing Agent (2.50 %)           $ 9,668         $ 9,668
                                                                               Closing costs (1.50 %)           $ 5,801         $ 5,801
                                                                           Initial Investment                 $ 75,250       $ 40,250
                               Net Equity                          $0      Net Equity                         $ 88,280        $ 46,592
                                                                           Profit                             $ 12,811          $ 6,342

                                                                           Cash on Cash (ROI)                   17.0%           15.8%


                          Five years after purchasing the property:

                               Renting                             #1      Buying                                     #2              #3
                                                                           Property Value*            $ 449,176              $ 449,176
                                                                           Remaining Loan Balance** $ 262,111                $ 315,000
                                                                           Exit Costs                  $ 29,075              $ 29,075
                                                                               Buyer Agent (2.50 %)    $ 11,183               $ 11,183
                                                                               Listing Agent (2.50 %)  $ 11,183               $ 11,183
                                                                               Closing costs (1.50 %)    $ 6,710                $ 6,710
                                                                           Initial Investment          $ 75,250               $ 40,250
                               Net Equity                          $0      Net Equity                 $ 157,990               $ 85,069
                                                                           Profit                      $ 82,740               $ 44,819

                                                                           Cash on Cash (ROI)                 110.0%           111.4%

                          Conclusion: Though it is impossible to predict appreciation rates, buying allows you to
                          participate in equity creation.

                          * Assumes a 5% appreciation per year. Consult your agent to find out about appreciation in your area.
                          ** Loan balance on interest-only loan remains the same because monthly payment do not pay down
                             the principal.




                                                                                                                                                                            14
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                 THE BUY VS. RENT DECISION

   Buy vs. Rent Financial Pro Forma




                                                                                                                                                                            15
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                 THE BUY VS. RENT DECISION


                          Conclusion
                          Although buying requires a significant investment and willingness to assume risk, it yields tax benefits and
                          allows you to grow your equity. Renting is a “cleaner” option – you move in when you are ready, and you
                          can move out when your lease expires. Unless you are a tenant-at-will, keep in mind that breaking a lease
                          carries financial penalties.
                          If you think buying might be an option for you, a Colfax agent will happily walk you through the entire
                          process and provide you with all the information you need to make an informed decision. Take a moment
                          to review the following table to see where you are leaning at this point. Items in the green boxes are
                          advantages and articles in the red boxes are disadvantages.


                                   Renting                                                       Buying

                                   Advantages                                                    Advantages

                                   No downside: Not gaining equity,                              Equity creation: The ability to participate in equity
                                   but not losing it either.                                     creation as the property appreciates and the mortgage
                                                                                                 balance decreases.

                                   Easy exit: When the lease is up,                              Home sweet home: You can remodel and
                                   you can just move.                                            redecorate home to match your taste.

                                   Fewer worries: There is generally less work                   Tax advantages: Deduct interest and property
                                   in maintaining a rental.                                      taxes from ordinary income. †
                                   Initial investment: Minimal "up-front" cash.


                                   Disadvantages                                                 Disadvantages

                                   No upside: No matter what happens with the                    There is risk: Property value may go up, down,
                                   value of the home, you will never gain equity                 or stay the same.
                                   - your landlord will.

                                   Cookie cutter home: Limited -- or no ability                  Exit costs: If you want to move and you don’t want
                                   to personalize your living quarters.                          to keep the property as an investment property, it
                                                                                                 takes time and money to sell it.

                                   No tax advantages: Your landlord gets any                     Maintenance: Work needs to be done by you --
                                   and all tax breaks available.                                 or paid for by you.
                                                                                                 Initial investment: The down payment and closing
                                                                                                 costs.




                          † Consult competent legal and/or accounting advice for all tax related information.


                                                                                                                                                                            16
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
           Renting a Home in
                Greater
               BOSTON




NEW YORK   •   CHICAGO   •   BOSTON   •   MIAMI   •   EVANSTON


                www.colfaxrealty.com
                                                                       RENTING A HOME IN GREATER BOSTON


                          Working with a Real Estate Agent
                          One of the most important decisions you must make once you have decided to rent a home is whether or
                          not to employ the services of a real estate agent. You certainly are not required to work with an agent, but
                          there are several reasons many renters choose to do so.
                          In addition to helping you find your most desirable neighborhoods, a professional real estate agent can
                          save you substantial time and energy. Good agents are familiar with the rental inventory and constantly
                          receive availability updates. This is particularly useful in a fast-paced market like Boston, where availability
                          changes on a daily and sometimes even hourly basis. They will also work to streamline your rental process
                          by pre-selecting properties that meet your qualifications and driving you to various locations during your
                          home-hunting trip.
                          We believe the key to a successful search is communication. Colfax consultants will not only make sure
                          they understand your needs, but will also share insight and help you understand the application process,
                          market rents, and rental types in different neighborhoods. The objective is to place your housing needs in
                          the context of the local market and prepare you to make an educated decision.

                          Fees
                          Rental listings typically fall into one of the following categories:
                                  • No Fee
                                  • Full Fee
                                  • Half Fee
                          In the instance of a “No Fee” listing, the landlord pays the broker’s commission in full, meaning the agent’s
                          service is absolutely free to you. This is most common in large rental communities and professionally
                          managed properties.
                          Privately owned condominiums, townhomes and single-family houses are usually “Full Fee” listings. These
                          are listings in which the tenant is responsible for paying the entire broker fee, which is equal to one month’s
                          rent.
                          Fees are sometimes negotiable, often resulting in “Half Fee” arrangements, where the fee is split between
                          the landlord and tenant.
                          It is important to note that you pay a broker fee only if you sign a lease at a property procured by your agent.

                          Selecting an Agent
                          When looking for an agent, it is important to find one who not only is knowledgeable and professional,
                          but also someone with whom you feel comfortable. You may want to do some research: ask for references
                          or testimonials from previous clients. Developing rapport with an agent who commits to understanding
                          your needs and has satisfied similar renters in the past will ultimately lead to the best results.
                          Make sure your agent is familiar with the neighborhoods you’re interested in and rental properties in your
                          price range. Once you find someone who earns your trust and is willing to spend time working with you,
                          ask questions and gauge the quality of their feedback. If your agent doesn’t provide you with thorough
                          answers or if they don’t ask you questions, you may need to find a new one. On the other hand, if their
                          insight is valuable and they make an effort to understand your search criteria, focus on developing a
                          relationship, take advantage of their knowledge and help them by providing constant feedback.
                          If you decide to work with Colfax and are pleased with our services, we would be proud to work with you
                          on a long-term basis. Should you choose to enter the buying market or relocate to another city, we can
                          provide resources and assistance though one of our several offices nationwide.




                                                                                                                                                                            18
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                       RENTING A HOME IN GREATER BOSTON


                          When to start your search
                              • It is never too early to begin to familiarize yourself with the neighborhoods and the rental market.
                               Starting your research at least three months in advance of your move will allow you to focus your
                               search and plan a home-hunting trip. Establishing your budget and general guidelines during this period
                               will help you focus your search.
                              • If you plan to work with a real estate agent, get him or her involved early on to establish rapport and
                               use them as a resource. At the very latest, engage your agent 7-10 days in advance of your visit. This
                               will allow them to make appointments for you to view properties, send information on available listings
                               and become familiarized with your preferences.

                          When to visit
                              • Once you have a budget and a good understanding of the neighborhoods, you can plan a home-
                               hunting trip. Most rental listings come available either 30 or 60 days in advance, so timing your visit
                               accordingly will maximize the number of homes you can tour.
                              • If you must make your trip more than two months in advance, it is not likely that any of the homes you
                               visit will be available by the time you move and you will not be able to secure them for a later date. This
                               is particularly important if you’re interested in independent rentals (i.e. single-family homes, condominiums
                               or other privately owned properties). Each independent rental is unique and even two units within the same
                               building may vary considerably in terms of price, finishes, and rental policies.
                              • On the other hand, if you’re interested in living in a large rental community, you may be able to visit
                               a model apartment or at least a vacant unit which can give you an idea of what finishes, appliances
                               and quality to expect throughout the rest of the building. If you find a favorite rental community, your
                               real estate agent can help you keep track of availability and let you know when a unit matching your
                               time frame becomes available.
                              • RENTING SIGHT UNSEEN: If you can’t visit before making a decision, your best bet is to contact a
                               reputable real estate brokerage and enlist the help of an agent. A good agent should be able to send
                               you photos, floor plans, pricing information and detailed descriptions of the rental listings matching
                               your search criteria.

                          How many days to visit
                              • If you do your research in advance, you should be able to complete an efficient search in 2-3 full
                               days. However, this can depend on the variety of neighborhoods you would like to see and the number
                               of listings chosen by you and your agent. Given proper planning and scheduling, you should have
                               enough time to visit all the rental listings matching your search criteria and to complete the application
                               process.
                              • Depending on your specific needs and budget, there may be as few as 1-3 or as many as 10-12 listings
                               worth visiting.
                              • If you haven’t done much research and don’t know where to look or what to expect, you will need
                               to spend extra days exploring neighborhoods and sorting through a wide variety of listings until you
                               find what works for you.
                              • Most real estate agents will gladly accommodate weekend appointments, but if possible, try to include
                               at least one weekday in your visit. This would allow you to visit smaller rental communities which may
                               not be open on weekends and visit your bank, contact your employer/school or current landlord if
                               necessary
                                          .




                                                                                                                                                                            19
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                       RENTING A HOME IN GREATER BOSTON


                          What to bring
                          If you plan on securing an apartment during your visit, you will need to bring documentation to support your rental
                          application. Most landlords, whether individuals or professional management companies, require proof of income,
                          rental history and credit references to evaluate your application. Being prepared to submit the necessary paperwork
                          will allow you to act quickly and improve your chances of securing a rental.


                                                ITEM                                                                   NOTES

                                 Personal Identification                                 Driver’s license, passport or other state-issued ID.

                                                                                         Two recent pay stubs, a job offer letter, or contact
                                                                                         information for your employer’s human resources
                                                                                         department (a name, phone and fax numbers and email
                                                                                         if possible). Additionally, you may want to bring proof of
                                                                                         any other income you would like the landlord to consider
                                                                                         (e.g. rental income from an investment property, stock
                                                                                         dividends, etc.).
                                 Income Verification
                                                                                         Other: tax returns, statements for checking/savings bank
                                                                                         accounts, trust fund, 401(k), etc.

                                                                                         If you are a student: bring an acceptance letter and/or
                                                                                         proof of affiliation with the university. If applicable, bring
                                                                                         financial aid documentation.

                                                                                         Bring your current landlord’s phone number, fax number,
                                                                                         and address. You may also need your previous landlord’s
                                 Landlord Contact Information                            contact information if you have been at your current
                                                                                         address less than three years.

                                                                                         You will need to put down a deposit and perhaps pay
                                 Personal Checkbook                                      application fees or the first month's rent.

                                                                                         You may need a co-signer (also known as a guarantor)
                                                                                         if you don’t qualifty to rent the apartment with you own
                                                                                         credit history and/or income.
                                 Co-signer Information                                   If you are in need of a co-signer, you should determine
                                                                                         who will co-sign for you prior to beginning your apartment
                                                                                         search. Have their current phone and fax numbers as
                                                                                         well as email address available.

                                                                                         Occasionally, landlords may require personal references.
                                 Personal References                                     Make sure you have contact information for at least two
                                                                                         friends or family members.

                                                                                         If applicable, bring your pet’s medical records. Some
                                 Pet Information                                         landlords may also require photos and references from
                                                                                         previous landlords.




                                                                                                                                                                            20
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                       RENTING A HOME IN GREATER BOSTON


                          During your visit
                          If you are working with a real estate agent, he or she should make the appointments on your behalf
                          and accompany you on each visit. A good agent should also offer to drive you to all the appointments,
                          give you a neighborhood tour and provide insight, and list the pros and cons of each home,
                          neighborhood and location.

                          Rental application process
                          Once you are ready to make a decision, it is in your best interest to submit a rental application as soon as
                          possible. The Boston market is fast-paced and desirable listings often rent within a few days, and sometimes
                          hours, of becoming available.
                          Rental communities often have proprietary application forms but independent rentals almost always use
                          standard Rental Housing Association (RHA) applications.
                          The application should specify the following rental terms:
                                      -   Rent amount
                                      -   Move-in date
                                      -   Length of lease
                                      -   Security deposit required by landlord
                                      -   Other move-in costs (if applicable)
                                      -   Amount of broker fee (if applicable)

                          Landlords will request the following information to evaluate your application:
                                      -   Personal contact information
                                      -   Proof of income or funds to pay rent
                                      -   Credit history and background check
                                      -   References (i.e. current landlord and personal)
                                      -   Immigration documentation (if applicable)

                          Most landlords will require that you submit a deposit in order to take the apartment off the market. If your
                          application is approved, the deposit counts towards your rent or becomes a security deposit. If your application
                          is denied, the deposit is returned to you. If your application is approved but you decide not to take the
                          apartment, you will most likely lose the deposit.
                          Some rental communities may charge a non-refundable application fee. These fees typically range between
                          $25 and $50 per adult applicant. Once your application is approved, the landlord or the real estate agent
                          will draft a lease agreement detailing all the rental terms.
                            ***Make sure you read and understand the entire lease. Ask questions if you need any clarification.***
                          When the lease is signed, you will also need to deliver the remaining checks (e.g. first month’s rent, broker
                          fee, etc.). You and the landlord should each keep an original copy of the lease.

                          Next steps
                          After taking care of all the paperwork, you can begin to prepare for your move. Make sure you know when
                          and where you will pick up your keys and call the utility companies to establish service or have it transferred
                          to your name. Check with your new building to verify whether moving reservations or special arrangements
                          are required. If you are moving into an elevator building, make sure to reserve the elevator for the day of
                          your move. If there is no loading dock, find out if you should get a parking permit to park your moving truck
                          on the street.




                                                                                                                                                                            21
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                       RENTING A HOME IN GREATER BOSTON


                          Frequently Asked Questions
                          When is the right time to start looking at places?
                          You should plan on starting your search a minimum of 30-45 days before your move. We recommend that
                          you start even earlier so we can help you understand the neighborhoods, price ranges and the market in
                          general. Starting your research at least three months in advance will also give you time to plan a home-
                          hunting trip.

                          Do you charge a fee for your services?
                          We have developed relationships with dozens of rental communities which pay the broker fee, which
                          means our services are many times absolutely free to you. If you decide to rent a home where the landlord
                          does not pay the broker fee, we typically charge a fee equal to one month's rent. You don't pay a fee unless
                          we find exactly what you're looking for and you sign a lease.

                          Am I not better off looking on my own?
                          The Boston rental market is very fast-paced and availability is scarce, especially between May and September.
                          Our services are free much of the time but even if you incur a broker fee, keep in mind we educate you
                          on the rental market and save you a great deal of time, energy and frustration. We receive daily availability
                          reports and know which rental properties meet your exact needs. We do the research, make the appointments
                          and drive you to all the properties.

                          Do you offer any discounts when there is a broker fee?
                          Absolutely. Please ask your agent about our preferred employer/school rebates and specials.

                          I have a dog or a cat. Is this a problem?
                          Most properties accept up to two cats per home. Very few rental communities accept dogs but we know
                          those that do and can always try to find an independent rental with a flexible landlord. Keep in mind those
                          communities which accept dogs typically have weight limits and will charge an additional deposit and/or
                          monthly fee to accept your dog.

                          Are there any furnished apartments?
                          Yes, there are some rental communities which offer furnished homes but it is not very common. We can
                          get you in touch with several reputable firms which rent furniture and even silverware, linens and decorations.
                          If you don't want to buy furniture, you can furnish and decorate any home for a reasonable monthly fee.

                          How much should I expect to pay in utility bills?
                          Utility bills vary greatly depending on the age of the building, type of construction, size of the home, etc.
                          Most of the rentals we offer include at least the heat and hot water in your rent.

                          Is it necessary for me to visit Boston to find a rental?
                          Visiting is the best way to evaluate your options and find the listings and neighborhoods which work best
                          for you. However, if you are unable to make a home-hunting trip, we can send you photographs, floor
                          plans, detailed listing sheets and pricing information to help you make an educated decision.




                                                                                                                                                                            22
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
Buying a Home in
   Greater
  BOSTON
                                                                         BUYING A HOME IN GREATER BOSTON


                          Housing Search - Overview and Preparation
                          Purchasing a home, especially if you are a first time home-buyer, can seem like an overwhelming task. Like
                          any major financial decision, it requires careful preparation and an organized approach. Familiarizing
                          yourself with the ins and outs of the home-buying process will save you time, money and frustration. A
                          good starting point is to consider these questions:
                                • Why do you want to purchase a home?
                                  Are you tired of paying rent? Is it for investment purposes? Are you ready for the next stage in your
                                  life? The answers to these questions will affect everything from the type of financing you should get
                                  to which home features you consider to be critical.
                                • What is your budget?
                                  Determine how much you feel comfortable spending on a monthly basis and how much money you
                                  will have available for a down payment and closing costs. Speak to a mortgage broker or lender and
                                  find out how much you qualify to borrow.
                                • What type of home do you want to purchase?
                                  Make a list of features which are critical and those which are desirable. Making this distinction may
                                  be difficult but it is crucial if you want to evaluate homes objectively and conduct an efficient search.
                                  If you set the bar too high, you may not find any suitable homes within your budget. If you set the bar
                                  too low, you will waste time visiting homes which don't fit your needs.
                          The next step is to explore which neighborhoods seem like a good fit. Study price ranges and the types of
                          properties available. If having a two car garage and a large yard is important, you will immediately rule
                          out certain neighborhoods. Whether or not you need access to public transportation is another important
                          consideration which can impact the areas you consider.
                          Keep detailed records as your search progresses, making notes of the pros and cons of each neighborhood
                          and each listing. You will eventually fine-tune your search and find the home you are looking for. With
                          proper preparation, organization and patience, the hunt for a home can be an educational, exciting and
                          fun experience.

                          Should You Work With an Agent?
                          One of the most important decisions you will need to make is whether or not to employ the services of a real
                          estate agent. You certainly don't have to work with one but there are many reasons why it may be beneficial
                          to do so. For one, most homes are listed with real estate agencies through the Multiple Listing Service (MLS)
                          and only licensed real estate agents have full access to this database. Therefore, working with an agent gives
                          you access to the largest possible pool from which to select a home.
                          More importantly, an agent can serve as a valuable resource and help you navigate through the home-buying
                          process. Searching for listings and scheduling appointments is only the tip of the iceberg. A good buyer's
                          agent will help you focus your search, evaluate homes objectively, research market trends, prepare and
                          negotiate an offer, schedule a home inspection and stay on top of everything until the closing. An agent's
                          expertise will also help you overcome any bumps you hit along the way.
                          Perhaps the biggest incentive to take advantage of the services of a buyer's agent is that they are almost
                          always free. A buyer's agent is typically paid by the seller's agent, who shares a portion of the commission
                          paid by the seller. In other words, if you don't use a buyer's agent, the seller's agent simply gets a bigger
                          commission.




                                                                                                                                                                            24
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                          Selecting an Agent
                          If you decide to work with an agent, it is important to find one who not only is knowledgeable and
                          professional, but also someone with whom you feel comfortable. Developing rapport with an agent who
                          commits to understanding your needs will ultimately lead to the best results.
                          Look for an agent who is familiar not only with the neighborhoods which interest you but also with properties
                          in your price range. The objective is to find someone who can help you evaluate the homes you visit. If
                          the agent has never worked in the neighborhood or if they are used to working with properties in a much
                          higher or lower price range, their advice won't be as valuable.
                          Once you find an agent who earns your trust and is willing to spend time working with you, ask questions
                          and gauge the quality of their feedback. If they don't provide thorough answers or if they don't ask you
                          questions, you may need to find a new agent. On the other hand, if their insight is valuable and they make
                          an effort to understand your housing needs, focus on developing a relationship and help them by providing
                          constant feedback.

                          How Much Home Can You Afford?
                          Preparing a budget is a two-step process. The first step is to determine how much you feel comfortable
                          spending on a monthly basis and how much money you have available for a down payment and closing
                          costs. The size of your down payment will have a significant effect on your monthly payments and loan
                          terms. The smaller the down payment, the higher the risk assumed by the lender and the higher the interest
                          rate on your loan. A small down payment also puts you at a higher risk of finding yourself “upside down”
                          – a term used to describe the situation where the market value of your home is worth less than the amount
                          you owe to the bank.
                          Most lenders prefer a Loan-to-Value (LTV) ratio of 80% or lower, meaning they prefer not to lend more than
                          80% of the home's appraised value. If you don't have the funds for a 20% down payment, you can cover
                          the 20% with a combination of your down payment and a second mortgage, often referred to as a piggy-
                          back loan (e.g. combining a 10% down payment and a second mortgage for 10%). A lender may allow a
                          LTV ratio higher than 80% if you purchase a Private Mortgage Insurance policy, which protects the lender
                          in case you default on the loan.
                          The second step is to meet with a reputable lender or mortgage broker and find out what mortgage products
                          they offer and how much they are willing to loan you. Keep in mind they may qualify you for a higher loan
                          than you are comfortable accepting. In the end, only you can determine what you can comfortably afford.
                          Generally speaking, the following factors will determine the size of your loan:
                                   1)   The size of your down payment.
                                   2)   Your income and assets.
                                   3)   Your other debt and financial obligations.
                                   4)   The property taxes on the subject property.
                                   5)   The condominium assessments and/or insurance for the subject property.
                                   6)   Your credit score - the higher your score, the lower the interest rate on your loan.




                                                                                                                                                                            25
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                          Finding Your New Home and Closing the Deal
                          How Long Does the Home-Buying Process Take?
                          The length of time it takes to find and purchase a home will vary according to your search criteria. You may
                          find a home on your first day out, but if you are searching for very specific attributes, finding the perfect home
                          may take weeks or even months. Keep in mind time frames will also vary by city. You will need to move
                          quickly to purchase a desirable home in an active market and may have more time to search for and evaluate
                          properties in a less active market. The following table is a general guideline for the Greater Boston market.

                                                                            Months Prior to Closing
                                             3-6 Months                                 1-3 Months                                 0-4 Weeks

                                  » Determine your budget.                    » Visit homes for sale.                     » Make moving arrangements.
                                                                              » Make an offer to purchase a
                                  » Get a general sense of market               property.                                 » Monitor the mortgage
                                    trends and price ranges.                                                                application process and
                                                                              » Get a home inspection.                      provide your lender with
                                  » Make a list of features you                                                             information and documents
                                    need and those you would                  » Engage a real estate attorney
                                                                                to review contracts.                        as required.
                                    like.
                                                                              » Submit a formal mortgage                  » Purchase homeowners'
                                  » Determine which neighborhoods               application.
                                    fit your needs.                                                                         insurance (if applicable).
                                                                              Note: Interest rates can be
                                  » Get a mortgage pre-approval               locked any time between the                 » Make closing arrangements
                                    letter from a lender or mortgage          time of application and the                   (get final figures, get cashier's
                                    broker.                                   closing.                                      check, etc.).



                          The Search
                          Once you have a budget and a general sense of what you are looking for, you will be ready to evaluate
                          potential options. If you work with a buyer's agent, they will send you detailed listing sheets for a variety
                          of homes for sale. Review them and tell your agent what you like and don't like about each listing. When
                          you have a list of properties that seem promising on paper, your agent will schedule appointments so you
                          can visit the homes in person.
                          Some of the criteria to consider when evaluating a home include:
                              • Asking price. How does it compare to similar listings? Is the price per square foot on par with other
                                properties in the neighborhood?
                              • Size and features. Does it meet your essential requirements? How much value do you place on the
                                additional size/features it offers? Does it offer parking?
                              • Neighborhood. Is it as vibrant/residential/suburban as you would like? Are there schools and/or grocery
                                stores nearby?
                              • Access to highways and public transportation. What would your commute be like?
                              • Market dynamics in the area. Are prices dropping? Are property values increasing?
                              • Rules and Regulations. What sort of restrictions are imposed by the homeowners' or neighborhood
                                association?
                              • Type of Ownership. Pros and cons of a condominium, single-family home, etc.
                          Your search criteria, market conditions and even the time of year will affect how many homes you can
                          choose from. Be patient and give your agent as much feedback as you can. If you don't like any of the
                          listings your agent presents to you, it is likely the result of either poor communication or unrealistic
                          expectations. The agent may not understand what you are looking for, through their own fault or lack of
                          direction; or the type of property you are looking for may not be available in your price range or desired
                          neighborhoods.

                                                                                                                                                                            26
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                          Keep in mind that all real estate agents have access to the same homes for sale. Switching agents is advisable
                          if you are not satisfied with their service but it won't make a difference if the market just doesn't include
                          what you are looking for.

                          The Offer
                          Once you find a home you would like to buy, you and your agent will need to prepare a written offer
                          detailing the terms of the proposed purchase. The offer is submitted to the seller's agent along with a good
                          faith deposit (also known as earnest money) and if applicable, a pre-approval letter from your lender. The
                          seller's agent is obligated to present all offers to their client, who can accept the offer, reject it or submit a
                          counteroffer.
                          If the seller accepts your offer before its expiration date, you enter a legally binding agreement to purchase
                          the property. If you back out of the agreement without a valid legal reason, you lose your initial deposit.
                          If the seller lets the offer expire or presents a counteroffer, you are not bound by your original offer. You
                          can accept the seller's counteroffer, make a new offer, or decide you no longer want the property and
                          continue your search. Counteroffers are typically presented and negotiated verbally and a final written offer
                          is prepared and signed only after a verbal agreement has been reached by both parties.
                          The most important task when preparing an offer is to determine how much you are willing to pay to
                          purchase the home. Determining the fair market value is primarily a function of recent sales of comparable
                          properties and price trends in the local market.
                          Your agent will prepare / obtain the following information to help you prepare an offer:
                              • Comparative Market Analysis (CMA). This report will give you an idea of where the asking price lies
                                in relation to similar properties for sale or recently sold in the immediate vicinity.
                              • Market time. If the property has been on the market for a relatively long time, the seller may be more
                                willing to negotiate. If properties in the neighborhood are selling very soon after going to market, you
                                will have competition from other buyers and the seller may not be in a hurry to accept the first offer
                                that comes along.
                              • Price reductions. If the seller has reduced the asking price, they may be getting anxious to sell the
                                property or it may have undesirable qualities that are turning off potential buyers.
                              • List-to-sale price ratios. The list-to-sale price ratio describes the difference between the price at which
                                a home was originally listed and the price at which it actually sold. Knowing the average ratio for properties
                                recently sold in the neighborhood will give you an idea of how much room you have to negotiate. The
                                lower the ratio, the more likely the seller will accept a lower offer.
                          Once you have determined a fair market value, you may need to adjust that price based on the seller's
                          circumstances. The desirability of a property and your position in the negotiation process depends greatly on
                          the reason the seller has decided to put his home on the market. For example, it would be advantageous for
                          you to know if the seller already has a new home and is paying two mortgages.
                          Another important variable which can affect the amount of your offer is the number of suitable alternatives
                          you have found. If you have several alternatives which are nearly as desirable, you may want to submit an
                          aggressive offer and walk away if the seller doesn't accept your terms. On the other hand, if the home is the
                          only listing which meets all your needs, you may be willing to make some concessions to the seller.




                                                                                                                                                                            27
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                          Your agent will help you prepare the offer, which consists of the following items:

                          1) Offer to Purchase Real Estate
                             This document sets forth the essential terms and conditions of the purchase.
                              • A legal description of the property (i.e. street address, city, county and state).
                              • Purchase price. The amount you are offering to pay for the property.
                              • Earnest money. The amount of the good faith deposit included with the offer (typically $1,000).
                              • Expiration date. The deadline by which the seller must accept the offer. Typically 24-48 hours.
                              • Purchase and Sale Agreement. Date when a second, more detailed contract, called the Purchase and
                                  Sale Agreement (aka P&S), will be executed by both parties. This typically occurs 2-4 weeks after
                                  acceptance of the offer.
                              • Second deposit. The amount of the additional deposit you will submit when the P&S is executed. The
                                 total deposit (earnest money plus the second deposit) is typically equal to 5% of the purchase price
                                 and it is held in an escrow account. If you breach the purchase and sale agreement, you forfeit the
                                 entire deposit.
                              • Closing. Date and location when you take possession of the property and the seller gets paid. Closings
                                 usually take place 30-60 days after acceptance of the offer.

                          2) Offer to Purchase Contingency Addendum
                             This addendum allows you to make the offer contingent on any of the following:
                              • Mortgage contingency. Specifies the period of time during which you can back out of the contract
                                 without penalty if you make a diligent effort to obtain a loan and cannot secure financing.
                                  NOTE: This deadline is not the date by which you are required to secure a loan - it is the date after
                                 which you would forfeit your deposit if you back out of the agreement because you were unable to
                                 secure a loan.
                              • Inspection contingency. Allows you to back out of the contract without penalty if you have the property
                                 inspected by a professional home inspector and the results are not satisfactory.
                              • Radon contingency. Allows you to back out of the contract without penalty if you have the property
                                 tested for radon and the gas is present in excess of levels deemed acceptable by the Environmental
                                 Protection Agency. Radon is a naturally occurring radioactive gas that in sufficient concentration can
                                 cause health problems.
                              • Pest inspection contingency. Allows you to back out of the contract without penalty if a professional
                                  inspection reveals that the property is infested with termites or other wood-boring pests.
                              • Lead paint contingency. Gives you a 10 day window to back out of the contract without penalty if you
                                 have the property professionally inspected and the results indicate the property has dangerous levels
                                 of lead in the paint, plaster or other accessible materials.

                          3) Licensee-Consumer Relationship Disclosure
                             A standard form required by Massachusetts law that describes the nature of your relationship with the real
                             estate agent representing you (i.e. buyer's agent, seller's agent or dual agent).

                          4) Earnest Money
                             An arbitrary amount of money, typically $1,000, that demonstrates to the seller that you are making a
                             serious offer to purchase the property. If the offer is accepted and you breach the contract, you forfeit
                             the entire deposit. Otherwise, the deposit is held in an escrow account until the closing. It is common
                             to fax a copy of the check along with the offer and not deliver the actual check until the offer has been
                             accepted.

                          5) Pre-Approval Letter
                             A letter from your lender or mortgage broker which is based on a thorough assessment of your financial
                             situation and confirms the amount you are eligible to borrow. A pre-approval letter demonstrates to the
                             seller that you are qualified to obtain the financing necessary to purchase the home.


                                                                                                                                                                            28
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                          6) Lead Paint Property Transfer Notification (if applicable)
                             A standard form that summarizes the hazards of lead paint. It includes a statement from the seller
                             indicating if they are aware of the presence of lead paint in the property for sale. Massachusetts law
                             requires the buyer, seller and their respective agents to sign this form when the transaction involves
                             a residential property built before 1978.

                          7) Condominium Documents Addendum (if applicable)
                             If making an offer on a condominium, this addendum requires the seller to provide you with copies of the
                             condominium by-laws, declaration, budget and master deed within a specified period of time. It gives you
                             the option to back out of the contract without penalty if you and your attorney are not satisfied with the review
                             of these documents.

                          8) Property Disclosure Form (if applicable)
                             This form, which the seller may voluntarily provide, describes vital facts about the property that may affect
                             your decision to purchase it (e.g. age of roof, history of flooding, type of foundation, etc.). Not all sellers
                             choose to provide this form.

                          Acceptance of Offer
                          Once buyer and seller have reached an agreement, the offer is signed by both parties and it becomes a
                          legally binding contract. Your earnest money is deposited in an escrow account where it remains until the
                          closing. If you back out of the agreement for a reason not covered by the offer contingencies, you lose the
                          entire deposit. If you void the contract per a contingency specified in the offer contract, the seller's agent
                          is obligated to return your deposit.

                          Home Inspection
                          Home inspections are designed to disclose defects in the property that could materially affect its safety,
                          livability or resale value. Inspections are not designed to disclose cosmetic deficiencies, such as the need
                          for a paint touch-up. Instead, they focus on the structural, mechanical, electrical and plumbing quality of
                          the property. For example, a home inspector can tell you when the roof should be replaced, if the foundation
                          is in good shape, if the electrical wiring is safe, etc.
                          The value and necessity of a professional home inspection cannot be overemphasized. A quality inspection
                          will uncover any issues which should be addressed before the Purchase and Sale Agreement is executed.
                          In some cases, the inspection may reveal major defects which make the purchase unattractive.
                          The offer contract will specify a time limit designating how long you have to hold the inspection and notify
                          the seller of any issues. It is therefore in your best interest to schedule the inspection as soon as possible
                          after your offer is accepted.

                          Attorney Review
                          Competent legal counsel is indispensable to protect your interests and ensure proper execution of all the
                          contracts. Your real estate attorney will review the contracts, and in the case of a condominium, the
                          condominium declaration, by-laws, budget, meeting minutes and financial statements.

                          Purchase and Sale Agreement
                          The Purchase and Sale Agreement, also know as a P&S, is a detailed contract, based on the initial offer
                          contract, that sets forth additional terms and conditions of the sale. It is usually signed 2-3 weeks after
                          acceptance of the offer.
                          You are required to submit a second deposit at this time so it is important to conduct a home inspection
                          and have your attorney review the contracts before executing the P&S.




                                                                                                                                                                            29
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                          Final Walk-Through
                          The final walk-through, which takes place on the day of the closing (or the day before) gives you an opportunity
                          to examine the property and make sure it will be delivered in the condition specified in the sales contracts.
                          Your agent will accompany you, or if you cannot make it in person, conduct the walkthrough on your behalf.
                          Examine the property and make sure that the items you expect to be in the property, or removed from it prior
                          to your moving in, have been taken care of. For example, if you requested in your offer that some yard trash
                          be removed prior to your move-in date, it should be removed by the time you conduct your final walk-through.
                          If you find that the seller has not performed work or repairs specified in the contracts or agreed upon after
                          the home inspection, ask your attorney to request that a portion of the seller's proceeds be withheld in the
                          escrow account until the work is completed. This is often referred to as a “hold back” amount and it should
                          be commensurate with the amount of work to be performed.

                          The Closing
                          The closing is the last step in the purchase of the home - this is when money is exchanged and you finally
                          get the keys and title to the property. It usually takes place at a title company or at the office of the buyer's
                          or seller's attorney. The date is specified in the offer contract but it is common for both parties to agree to
                          change it by a few days to accommodate their schedules.
                          A few days before the closing, your attorney will send you a draft of the Settlement Statement, also known
                          as a HUD or closing statement. It is a two page document with an itemized list of all funds collected and
                          paid out by the buyer and the seller, including but not limited to:
                                                          -Sale price
                                                          -Amount of your initial deposit
                                                          -Lender charges (loan origination, discount, processing and appraisal fees)
                                                          -Mortgage insurance premium (if applicable)
                                                          -Pre-paid interest
                                                          -City and county taxes
                                                          -Title search, title examination and title insurance
                                          Closing         -Attorney's fees
                                           Costs
                                                          -Real estate broker commissions (paid by seller)
                                                          -Recording fees
                                                          -Transfer tax/stamps
                                                          -Pro-rated property taxes and condominium assessments
                                                          -Miscellaneous charges (courier fees, notary fees, etc.)

                          Closing costs typically range between 1% and 3% of the sale price but they vary by market according to
                          local taxes, laws and practices. The Good Faith Estimate you receive when you first apply for a loan will
                          provide an approximate figure and the Settlement Statement will have the exact amount you need to bring
                          to the closing.
                          During the closing, your attorney will review all the documents and walk you through the entire process.
                          After you sign your loan papers and it is time to pay for the purchase, your lender will send a wire transfer
                          for the amount of your loan. This amount plus your deposits held in escrow (i.e. earnest money and the
                          second deposit) and the check you bring to the closing should add up to cover the purchase price and the
                          closing costs.
                          Unless the amount of your down payment is equal to or less than the amount of your deposits already held
                          in escrow, you'll need to bring the remainder of your down payment to the closing. The funds must clear
                          immediately for the sale to close so you will need to provide certified funds.
                          As a precaution, it is a good idea to bring a few extra hundred dollars in certified funds to the closing. This
                          will allow you to close even if there are small revisions at the last minute. If the closing costs don't change
                          or if they go down, you will receive a refund on the spot.


                                                                                                                                                                            30
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                          BUYING A HOME IN GREATER BOSTON


                               ($1,000)       Earnest Money
                              (5% minus                             Second
                                $1,000)             +               Deposit

                                                                                   Balance of
                               (0-15%)                                +           Down Payment

                                (1-3%)                                                   +           Closing Costs                                 Purchase Price
                                                                                                                                           =              +
                                                                                                                                                    Closing Costs



                               (80-95%)                                                                    +            Loan Amount




                            Estimated
                            Amounts               Held in Escrow Account             Certified Funds at Closing        Wired Funds



                          Both buyer and seller are typically present at the closing but your respective attorneys can execute all the
                          contracts if they are given power of attorney (POA). If you can't make it to the closing, you will need to
                          give your attorney an original copy of the POA form before the closing - faxed or scanned copies will not
                          work. If you are getting a loan, you will also need to make sure your lender has reviewed and approved
                          the power of attorney form you are using.
                          The closing is a critical time in the purchase of your new home. Therefore, be prepared to spend ample
                          time reviewing the documents with your agent and/or attorney.
                          Items dealt with at the closing include, but are not limited to:
                             • The Sales Contract
                             • The Settlement Statement
                             • The Loan Papers - Contract between lender and borrower that stipulates the terms of repayment,
                                 guarantees, recourse, etc.
                             • Homeowner's Insurance - The lender must see proof of insurance before wiring funds. In the case
                                 of a condominium, the master insurance policy for the condo association must be provided in lieu
                                 of a homeowner's insurance policy.
                             • Title Insurance
                             • The Title or Deed

                          Things you should not do before the closing of a sale contract:
                             • Don't make a major purchase. If you go out and buy a new car, your total debt service changes,
                                 and you may not meet the conditions in the purchase agreement.
                             • Don't panic. There will probably be bumps in the road. Your agent will be there to address your
                                 concerns and answer your questions.
                             • Don't become overly communicative with the seller. While this may seem harsh, you do not want
                                 the seller to learn something that they are not required to know and which could change their
                                 perspective on the conditions of a purchase agreement. Allow your agent to do most of the talking
                                 during the closing.




                                                                                                                                                                            31
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                                                         Offer to Purchase Process

                                 Once you’ve found a property
                                 you want to purchase, your                             OFFER
                                 real estate agent helps you
                                 prepare an offer.
                                                                              Your agent submits the
                                                                              offer to the seller’s agent
                                                                              along with your pre-
                                                                              approval letter and a good
                                                                              faith deposit.




                                                                              The Seller can then choose
                                                                              to Reject, Counter or
                                                                              Accept your offer.




                                           REJECT                                    COUNTER                                       ACCEPT

                                                                              The Seller may submit a                      The Seller accepts your
                                 The Seller may flat out                      counteroffer, typically                      initial offer as submitted.
                                 reject the offer and not                     asking for a higher sale
                                 accept your deposit. You                     price and/or specifying
                                 then have the option to                                                                   Buyer and Seller have
                                                                              different terms. The Seller                  agreed on the sale price
                                 submit a new offer or move                   may want to change the
                                 on and continue your                                                                      and terms of the sale and
                                                                              date of the closing or                       have a written agreement
                                 search.                                      modify your contingencies.                   which is legally binding.



                                                                              If the terms of the
                                                                              counteroffer           are                        DUE DILIGENCE
                                                                              acceptable, you sign and
                                            MOVE                              accept the counteroffer. If                   Home                Attorney
                                             ON                               the terms aren't acceptable,
                                                                              you can submit a new
                                                                                                                          Inspection            Review
                                                                              counteroffer or ask for your
                                                                              deposit and move on.

                                                                                                                             Execution of Purchase
                                                                                                                              and Sale Agreement.




                                                                                                                                Secure Financing



                                                                                                                                  CLOSING




                                                                                                                                                                            32
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                          BUYING A HOME IN GREATER BOSTON


                          Financing Your Purchase
                          The Mortgage Payment
                          A mortgage payment consists of:
                                1) Principal: The monthly repayment of the original amount borrowed. Note that if you opt for an
                                   interest only mortgage you will not pay down any principal.
                                2) Interest: The monthly cost of borrowing the principal amount.
                                3) Escrow: A fund from which the lender often pays your real estate taxes, homeowners insurance
                                   and mortgage insurance (if applicable) on your behalf.

                          Pre-Qualification and Pre-Approval
                          Meeting with a lender or mortgage broker before starting your search will give you an opportunity to get
                          pre-qualified and/or pre-approved. Both processes are meant to determine how much money you can
                          borrow but they differ in complexity, accuracy and practical use.

                          A pre-qualification is:
                                • A non-binding and informal estimate of how much money you can borrow.
                                • Meant to give you an idea of how much you can spend on a home purchase.
                                • Based primarily on what you tell them about your debt, earnings, savings, and credit history.
                                • Free and takes 15-30 minutes.
                          A pre-approval is:
                                 • A formal commitment from a lender to loan you a specific amount of money within a limited
                                   period of time.
                                 • A more involved and lengthy process than a pre-qualification. It requires a thorough review of
                                   your financial situation, including verification of all your claims of earnings and assets as well
                                   as your credit history.
                                 • Useful when negotiating with a seller. A pre-approval letter strengthens your position when
                                   bidding on a home because it demonstrates that you are serious about purchasing a home and
                                   approved by a lender who has reviewed your application in detail.
                                 • Likely to speed up the process of receiving final approval on your loan, allowing you to close
                                   at an earlier date.
                          Requirements vary, but generally speaking you should have the following documents with you when you
                          apply for a mortgage*:
                                 • Recent pay stubs.
                                 • Savings and checking account statements for the last six months.
                                 • W-2s and federal tax returns for the last two years.
                                 • Debt information, including balances on credit cards, car loans, student loans, etc.




                          *Please note that there are mortgage products available that require none of this information. The property acts as the entire collateral.

                                                                                                                                                                            33
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                          Types of Mortgages
                          Which mortgage product you choose depends on your financial situation, investment objectives and
                          tolerance for risk. Your real estate agent can help explain the differences between popular mortgage options
                          but you should speak to a lender or mortgage broker for specific details (e.g. interest rates, lender fees, non-
                          traditional mortgages, etc.).

                          Mortgage products currently available include:
                                   • Adjustable-Rate Mortgage (ARM): Also known as a variable-rate loan, it offers low interest rates
                                     for a pre-determined period of time after which monthly payments are adjusted according to
                                     fluctuations in a market index such as Libor or Prime. Types of adjustable-rate loans vary according
                                     to the frequency of adjustment, limit of each adjustment and the length of time for which a rate
                                     is fixed (e.g. 5-1 ARM means the interest rate is locked for five years and adjusts every 1 year).
                                     The amount the rate can be adjusted is usually capped at a predetermined rate (normally 1/2%
                                     to 2% per adjustment).
                                   • Fixed-rate loan: A loan in which the interest rate remains constant throughout the entire term
                                     of the loan. The rate is usually higher than that of an adjustable-rate loan but unlike ARM's,
                                     fluctuations in market interest rates do not affect monthly payments.
                                   • Amortized loan: An amortized loan is structured to require regular, equal payments, each including
                                     a portion for principal and a portion for interest. A loan is said to be fully-amortized if the
                                     payments pay off the debt in full by the end of the loan term. Payments are made in equal
                                     installments but the amount of principal and interest paid each month varies over time as the
                                     principal is paid down.
                                   • Interest-only loan: A non-amortized loan in which the borrower is only required to pay the
                                     interest due each month. Payments are lower than those on an amortized loan because no
                                     principal is paid. The balance of the loan remains the same throughout the entire term unless
                                     the borrower opts to pay down the principal through separate, additional payments.
                                   • Balloon loan: A partially-amortized loan where payments are not large enough to pay off the
                                     principal by the end of the term. The final payment, called the balloon payment, is equal to the
                                     lump sum of the remaining principal.
                                   • Federal Housing Administration (FHA) loan: A mortgage which is partially insured by the FHA
                                     and may have reduced down payment requirements compared to a conventional mortgage.
                                     FHA loans are geared towards providing moderate to low income families and/or first-time
                                     homebuyers with mortgages. Borrowers are typically obligated to pay Mortgage Insurance
                                     remium (MIP).
                                   • Veterans Administration (VA) loan: A mortgage which is guaranteed by the U.S. Department
                                     of Veterans Affairs and is available to qualified military and ex-military personnel. This type
                                     of loan generally has less fees, preferred interest rates and lower down payment requirements.
                                   • Second Mortgage (or Home Equity Loan): A tax deductible loan on a property which already
                                     has a mortgage in place. The loan is also secured by the property and is usually issued at a higher
                                     interest rate and for a shorter term than the first mortgage. Generally used for home improvements
                                     or to payoff other debt.




                                                                                                                                                                            34
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                         BUYING A HOME IN GREATER BOSTON


                                    Fixed-rate loan                                                 Adjustable-rate loan

                                    Advantages                                                      Advantages

                                    Your payment remains constant, allowing you                     Provides a lower initial interest rate and
                                    to budget accordingly.                                          therefore lower monthly payments.

                                    An increase in interest rates will not affect                   A decrease in interest rates will lower your
                                    your mortgage payments.                                         monthly payments.

                                    Recommended for people who plan on staying                      A lower initial interest rate and payment make
                                    in the property longer than five years.                         it easier to qualify for a larger loan.

                                    Disadvantages                                                   Disadvantages

                                    A higher initial interest rate means you will                   An increase in interest rates will raise your
                                    qualify for a smaller loan and your mortgage                    mortgage payments. Your will need to adjust
                                    payments will be higher.                                        your budget accordingly.
                                    If interest rates decline, you will need to                     A large increase could make your payments
                                    refinance your mortgage to lower your                           unaffordable and/or force you to refinance
                                    mortgage payments.                                              the loan and pay closing costs all over again.


                          Mortgage Insurance
                          Mortgage insurance is a financial guarantee that insures lenders against loss if a borrower should default
                          on a mortgage. If the Loan-to-Value (LTV) ratio on your loan is higher than 80% (i.e. if your down payment
                          is smaller than 20%), you may have to buy mortgage insurance.
                          You can choose an annual, monthly, or single premium plan and pay refundable or nonrefundable premiums.
                          A refundable premium gives you money back on any unused portion if the mortgage insurance coverage
                          is discontinued before the loan is paid in full. A nonrefundable premium is cheaper because you have no
                          opportunity for a refund if coverage on the loan is discontinued. Keep in mind that unlike interest payments
                          and property taxes, mortgage insurance payments are not tax deductible.
                          There are, however, a number of alternatives which allow you to avoid paying for mortgage insurance
                          without a 20% down payment. The most popular option is to get a primary mortgage for 80% LTV and a
                          second mortgage, which combined with your down payment, makes up the remaining 20%. A common
                          scenario is to combine a 10% down payment with a second mortgage for the remaining 10%.

                          The Waiting Game
                          It can take anywhere from 7 to 90 days to process your loan application, although the average is somewhere
                          between 30 and 60 days. Obtaining a pre-approval at the beginning of your search can shorten the process
                          of final approval if you apply for a mortgage with the same lender or mortgage broker who gave you the
                          pre-approval.

                          Paying Your Mortgage
                          You usually make your first mortgage payment 30 days after the closing date. The exact date should be
                          specified in the closing documents. Your payment will include interest and principal (unless it is an interest-
                          only loan) and possibly mortgage insurance and escrow. You must submit your payment within the grace
                          period specified by your lender to keep your loan and credit history in good standing.

                          Why Do I Pay Escrow to the Lender?
                          Tax and insurance payments can be large and infrequent, making it difficult to budget for them. The federal
                          government can seize your home for failure to pay property taxes so it is in everyone's best interest to set
                          up a simple and straightforward process to ensure payments are made on time. Your home is the collateral
                          on your loan so your lender may require that you pay a portion of the expected fees on a monthly basis
                          along with your principal and interest payments. The lender keeps these funds in an escrow account, where
                          they remain until your taxes or insurance payments are due and the mortgage company pays them for you.

                                                                                                                                                                            35
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
   City & Neighborhood
        Overview:
  MAPS & DESCRIPTIONS




NEW YORK   •   CHICAGO   •   BOSTON   •   MIAMI   •   EVANSTON


               www.colfaxrealty.com
                                                           BOSTON
                                                           Despite being a geographically compact city, each neighborhood in Boston
                                                           has a distinct identity and personality. Together, they form an amazing city
                                                           with a rich intellectual and historical legacy and vibrant cultural,
                                                           entertainment, business and educational opportunities. Boston is a world-
                                                           class city, and its neighborhoods reflect its status as a great place to live,
                                                           learn and thrive.




                                                                                                                       Charlestown

                                                                                                                                                     East Boston



                                                                                                       West End              North End

                                                        Allston
                                                                                                  Beacon Hill                Downtown


                                          Brighton                                         Back Bay
                                                                                                                      Chinatown / Theater District

                                                                               Fenway
                                                                                                        South End
                                                                                                                                      South Boston


                                                 Brookline

                                                                                               Roxbury


                                                                                                                   Dorchester


                                                                     Jamaica Plains




                                                                            Boston Neighborhood Map




                                                                                                                                        Key Map

                                                                                                                                                                            37
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                             NEIGHBORHOOD DESCRIPTIONS - BOSTON


                          Downtown
                              Downtown Boston is the heart of the city and is comprised of the Financial District, Government Center,
                              Faneuil Hall, the Haymarket and the Theater District. Over 150,000 people work downtown, creating a
                              frenzy of daytime activity compounded by shoppers and tourists flocking to Faneuil Hall and the waterfront.
                              The Haymarket is Boston’s famous outdoor market, where one can buy fresh produce, fish, sugar, and
                              delicacies of all varieties. The Financial District quiets down after work hours as commuters head home
                              and activity shifts to the Theater District and the many pubs and restaurants near Faneuil Hall and the
                              adjacent North End. With most of the real estate occupied by businesses and government agencies, there
                              are very few residential options and parking is the most expensive in the city.

                          North End
                              This primarily residential neighborhood includes some of the oldest streets and buildings in Boston and
                              is famous for its Italian heritage. Residents of the North End browse local coffee shops and bakeries,
                              shopping at corner markets and taking advantage of the area’s European flavor. The dozens of family-
                              owned Italian restaurants offer exceptional dining experiences and a unique atmosphere, drawing people
                              from all over Boston. The narrow, winding streets make street parking extremely difficult, but the
                              neighborhood’s convenient location, compact nature and access to public transportation allow many
                              residents to live comfortably without a car.

                          Beacon Hill
                              Cobblestone streets, gas street lamps and traditional brick row houses give this 19th century neighborhood
                              a unique old-world charm. Approximately one-half mile square and adjacent to the impressive Boston
                              Common, Beacon Hill is a private and cozy neighborhood filled with hidden gardens and architectural
                              gems. Rich community life and strong support of local businesses make Beacon Hill feel more like a
                              village than a downtown city neighborhood. Housing is expensive and even the most luxurious homes
                              rarely offer parking, but the charm, character and convenient location make Beacon Hill one of the
                              most desirable neighborhoods in Boston.

                          West End
                              The West End is a small community tucked behind Beacon Hill. Historically a diverse and vibrant neighborhood,
                              the area was redeveloped in the 1950’s, adding a number of high-rise rental buildings and an expanded
                              Massachusetts General Hospital. Street parking is very difficult to find but being within walking distance of Beacon
                              Hill, the North End and downtown Boston, many residents opt not to own a car.

                          Chinatown
                              Bordered by the New England Medical Center and Boston’s theater and shopping districts, Boston’s
                              Chinatown neighborhood is the third largest Chinese neighborhood in the United States. It is culturally
                              rich, densely populated and full of family-owned businesses.

                          Back Bay
                              The Back Bay is one of Boston’s most prestigious neighborhoods, attracting residents and tourists alike
                              with its brownstones, wrought iron gates and stately magnolia trees. The elegant combination of historic
                              homes and the designer boutiques along Newbury St. make the Back Bay an exciting place to live, shop
                              and find entertainment. Most residential construction in the area consists of Victorian brownstones but
                              there are also a handful of modern high-rise apartment and condominium buildings. Street parking is
                              difficult to find and reserved parking spots can be very expensive.

                          South End
                              Victorian brick row houses, upscale restaurants and numerous art galleries all contribute to the South
                              End’s rise as one of the most popular places to live in Boston. Trendy restaurants mingle with coffee
                              shops and independent grocery stores, offering residents of the South End a variety of gastronomic
                              delights. The majority of housing options consist of apartments and condominiums in classic multi-
                              family buildings. Public transportation is not readily accessible from most of the South End so many
                              residents commute to work by foot or by car.


                                                                                                                                                                            38
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                             NEIGHBORHOOD DESCRIPTIONS - BOSTON


                          Fenway
                              Part of Boston’s green belt, known as the "Emerald Necklace,” Fenway is southwest of downtown Boston.
                              The Fenway is unique in its combination of parks, unique architecture and cultural and entertainment
                              attractions, including Fenway Park, home of the Boston Red Sox. Located next to the Back Bay and in close
                              proximity of several colleges and museums, the Fenway is well serviced by the public transportation system
                              and provides easy access to Cambridge, Brookline and downtown Boston. The neighborhood is also home
                              to the Longwood Medical Area and its world renowned hospitals. Housing options consist mostly of older
                              apartment buildings, densely packed multi-family homes and condominiums.

                          South Boston
                              “Southie” is a densely populated neighborhood southeast of downtown which boasts miles of beaches
                              and waterfront parks. The neighborhood is also home to a great variety bars and pubs as well as a
                              famous St. Patrick’s Day Parade. Traditionally known for its classic three-decker homes and row houses,
                              South Boston is experiencing a real estate resurgence with several new construction projects and
                              condominium conversions taking place.

                          Allston
                              Allston is a thriving hotspot of activity and diversity and caters to individuals looking for something
                              different and cost-effective. Harvard Avenue boasts everything from upscale eateries to local dives and
                              mom-and-pop grocery stores. There's rarely a quiet moment in this neighborhood as everyone seems
                              to traverse the streets of Allston through all hours of the day and night. Houses along this street and
                              cross-streets in Allston include row houses and older apartment buildings.

                          Brighton
                              Unlike Allston, Brighton is fairly quiet, especially at night. Local family businesses mix with national chains
                              of pharmacies and banks, providing a pleasant balance of old and new. Brighton boasts many traditional wood-
                              frame houses as well as small apartment buildings and multi-family homes.

                          Charlestown
                              Charlestown is a waterfront neighborhood, densely packed with multi-family homes and a short walk from
                              downtown Boston. Home of the Navy Yard and the Bunker Hill Monument, Charlestown is almost four
                              centuries old and full of history. One can visit the USS Constitution, the Charlestown Marina, or take in chef
                              Todd English’s cuisine at the world famous Olive’s. Street parking can be difficult, especially in the wintertime,
                              so many residents opt to walk to/from Boston or take the Orange Line subway.

                          Roxbury
                              A drive through one of Boston’s oldest neighborhoods will result in a tour of the area’s rich architecture
                              and notable landmarks. Roxbury has long thrived on its proximity to downtown while retaining its
                              individual qualities. Home to parks, schools, churches, ethnic shops and a variety of housing options,
                              Roxbury offers a thriving community lifestyle to residents of all ages.

                          Jamaica Plain
                              Commonly referred to as “JP,” Jamaica Plain has almost forty-thousand residents and is located between
                              Roxbury, Brookline and the Longwood Medical Area. A cultural melting pot, the neighborhood showcases
                              diverse architectural styles among its landscaped parks and ponds.




                                                                                                                                                                            39
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                           BROOKLINE
                                                           A thriving and desirable town within Boston, Brookline is popular among people
                                                           of all ages and families looking for great schools. Offering unique boutiques,
                                                           entertainment and many family oriented activities, it is readily accessible to various
                                                           modes of transportation which provide easy access to Boston. Overnight street
                                                           parking isn’t allowed in Brookline so reserved parking spots are a necessity if you
                                                           own a car.




                          Coolidge Corner
                              Coolidge Corner contains many popular coffee shops, pharmacies, small independent boutiques and ethnic
                              restaurants. Most famously, however, the neighborhood lays claim to the Coolidge Corner Theatre, one of
                              Brookline’s most treasured landmarks. A fully-restored Art Deco movie palace that has been operating since
                              1933, it is a non-profit arts institution featuring first run art house films, independent films, international
                              cinema and documentaries. It is one of the last remaining original big screens in the country, offering an
                              entertainment experience like no other.

                          North Brookline
                              Located between the Fenway and Allston neighborhoods in Boston, North Brookline offers its residents the
                              advantages of living on quiet, tree-lined streets yet having easy access to downtown Boston and Cambridge.
                              The Boston University campus, Longwood Medical Area, Coolidge Corner and two MBTA train lines are
                              all within walking distance of this neighborhood.

                          Chestnut Hill
                              Home of Boston College and the Chestnut Hill Reservoir, Chestnut Hill is notable for its stately homes and
                              scenic landscapes. In 1986, parts of Chestnut Hill were designated as a historic district for the significance
                              of its landscape and architecture. Examples of Colonial, Italianate, Shingle, Tudor, and Victorian architectural
                              styles are evident in the abundant country estates and mansions surrounded by extensive forest preserves
                              and protected wetlands.




                                                                                                                                        Area Map

                                                                                                                                                                            40
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                           CAMBRIDGE
                                                           Culturally rich and neighboring Boston across the Charles River, Cambridge is
                                                           one of the most vibrant cities in the world. This 350 year old city is home not just
                                                           to Harvard University and the Massachusetts Institute of Technology, but also to
                                                           twelve major museums, a chamber orchestra, over 250 restaurants and countless
                                                           parks and playgrounds.




                                       North Cambridge




                       Alewife / Fresh Pond
                                                                                     Porters Square




                                                                                                          Mid-Cambridge
                                                                     Harvard Square
                           Mount Auburn / Brattle St.                                                             Inman Square


                                                                                                                                             East Cambridge


                                                                                 Riverside                    Central Square

                                                                                                                                            Kendall Square


                                                                             Cambridgeport                               MIT




                                                               Cambridge Neighborhood Map




                                                                                                                                        Key Map

                                                                                                                                                                            41
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                    NEIGHBORHOOD DESCRIPTIONS - CAMBRIDGE


                          Harvard Square
                              Known all over the world for its unique array of shops, restaurants and cultural and recreational activities, this
                              is the home of Harvard University. The streets are full of students, tourists, locals and street performers alike.
                              Most of its densely packed construction is occupied by businesses or Harvard administrative offices, leaving
                              scarce residential housing options and making parking extremely expensive.

                          Central Square
                              This is one of the most densely populated and urban areas in Cambridge and is home to the Chamber of Commerce
                              and the main Police Station. Full of restaurants, retail and always abuzz with activity, Central Square is also a
                              transportation hub with several bus lines and a Red Line MBTA subway station.

                          Porter Square
                              Located on the Cambridge-Somerville border, Porter Square is within walking distance of Harvard Square
                              in Cambridge and Davis Square in Somerville. Centrally located, the area offers shopping, restaurants, health
                              clubs and access to the Red Line Train and Commuter Rail Stations.

                          Cambridgeport
                              Cambridgeport is a dense and diverse neighborhood consisting of approximately ten thousand residents, abutting
                              MIT on to the east, bounded by Massachusetts Avenue to the north, River Street to the west, and the Charles River
                              to the south. Much of the neighborhood, particularly along the banks of the Charles River, is still crisscrossed by
                              residential tree-lined streets with 2/3-family townhouses and single-family homes.

                          Riverside
                              Riverside stretches between Harvard and Central Squares, with the Charles River and Massachusetts Avenue forming
                              its borders along the south and north, respectively. Harvard University dormitories and administrative offices occupy
                              much of the western section of the neighborhood and the main Post Office and Police Station are located on the
                              eastern tip near Central Square. In between, tree-lined streets, parks and the picturesque esplanade along the banks
                              of the Charles River give the neighborhood a distinctly residential feel. Public transportation is accessible within
                              walking distance at the Central Square and Harvard Square MBTA subway stops.

                          Mt. Auburn/Brattle St.
                              This area west of Harvard Square, nicknamed "Tory Row" since Royalist sympathizers lived there during the
                              Revolutionary War, has some of the largest and most luxurious homes in Cambridge. Large lawns and stately
                              facades are characteristic of the impressive houses along Mount Auburn St., Brattle St. and Fresh Pond
                              Parkway. Mount Auburn Hospital, one of Cambridge’s three main hospitals, is located towards the west end
                              of the neighborhood.

                          Mid-Cambridge
                              Mid-Cambridge is a large, high-density residential neighborhood bordered by Prospect Street to the east,
                              Kirkland Street to the west, Massachusetts Ave. to the south and the City of Somerville to the north. Major
                              commercial centers lie at three corners of the neighborhood: Central Square, Harvard Square and Inman Square.
                              Massachusetts Avenue, which connects Harvard and Central Squares, is a major travel route and commercial
                              spine. Many institutions have a presence in Mid-Cambridge, including Harvard University, Cambridge Hospital,
                              Youville Hospital, the Cambridge Public Library, and Cambridge City Hall.

                          North Cambridge
                              Located at the northernmost part of the city bordering Somerville, Arlington, and Belmont, North Cambridge
                              is a neighborhood of over eleven thousand residents living in housing types ranging from single and multi-
                              family homes to large apartment buildings. The main avenue through North Cambridge is Massachusetts
                              Avenue, which extends from Porter Square to the Arlington border and features a variety of retail, office,
                              and residential uses and types.




                                                                                                                                                                            42
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                    NEIGHBORHOOD DESCRIPTIONS - CAMBRIDGE


                          Inman Square
                              Lying within Cambridge and Somerville, Inman Square is refreshingly unpolished and full of family-owned
                              businesses. Antique shops and edgy boutiques sit alongside Irish pubs and several Brazilian and Portuguese
                              restaurants and eateries. Residential properties are almost all privately owned and include single-family, as
                              well as two and three-family homes. There is no train station at Inman Square but the MBTA stop at Central
                              Square is only eight blocks away.

                          Kendall Square/MIT
                              Kendall Square’s distinctly modern architecture reflects the presence of several high-tech, bio-tech and
                              pharmaceutical companies as well as the Massachusetts Institute of Technology. Located at the eastern tip
                              of Cambridge, Kendall Square is a short walk across Longfellow Bridge from Beacon Hill in Boston. Easy
                              access to Memorial Drive and a Red Line subway station provide easy access to the rest of Cambridge,
                              downtown Boston, Logan International Airport and major highways.

                          Alewife/Fresh Pond
                              Known as "The Gateway to Cambridge," this neighborhood is located on the northeastern edge of Cambridge
                              and is comprised of two distinct areas. The eastern part consists of mostly commercial and light industrial uses.
                              A strip mall-style regional retail center is located here, only a few blocks from the MBTA Alewife Red Line
                              Station. The residential core of the neighborhoods lies at its western end, bordering the city of Belmont.




                                                                                                                                                                            43
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                           SOMERVILLE
                                                           Barely over 4 square miles, Somerville is located north of Cambridge and has
                                                           almost 80,000 habitants, making it one of the most densely populated communities
                                                           in New England. Served by the Red and Orange MBTA subway lines, Somerville
                                                           residents have easy access to Cambridge and Boston.




                                               Tufts




                                                 Davis Square




                                              Porter Square


                                                                                                         Prospect Hill

                                                                  Union Square




                                                                             Inman Square




                                                               Somerville Neighborhood Map




                                                                                                                                           Key Map

                                                                                                                                                                            44
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                        NEIGHBORHOOD DESCRIPTIONS - SOMERVILLE



                          Davis Square
                              Only blocks from Tufts University, Davis Square is a mostly residential area which boasts a variety of restaurants,
                              book and record shops, a movie theater and coffee shops. With several outdoor gathering areas, Davis Square is
                              wide awake all hours of the day. The Red Line MBTA subway provides easy access to Cambridge and Boston,
                              with Harvard Square a mere 6 minutes away and downtown Boston 15 minutes away. Most housing consists of
                              apartments in 2/3-family homes and street parking is relatively easy to find.

                          Porter Square
                              Located on the Cambridge-Somerville border, Porter Square is within walking distance of Harvard Square in
                              Cambridge and Davis Square in Somerville. Centrally located, the area offers shopping, restaurants, health clubs
                              and access to the Red Line Train and Commuter Rail Stations.

                          Tufts
                              The main campus of Tufts University is divided by the Somerville-Medford border and lies within Walnut Hill. A
                              well-maintained college neighborhood, it has easy access to Davis Square, public transportation, shopping and
                              recreation. While a few apartment buildings do exist in this area, most Medford and Somerville residences are
                              privately-owned one, two or three-family homes.

                          Inman Square
                              Lying within Cambridge and Somerville, Inman Square is refreshingly unpolished and full of family-owned
                              businesses. Antique shops and edgy boutiques sit alongside Irish pubs and several Brazilian and Portuguese
                              restaurants and eateries. Residential properties are almost all privately owned and include single-family, as well
                              as two and three-family homes. There is no train station at Inman Square but the MBTA stop at Central Square is
                              only eight blocks away.

                          Spring Hill
                              Spring Hill is a mostly residential area located in the center of Somerville consisting mainly of multi-family homes.
                              Because it is hilly in landscape, Spring Hill allows for some of the most picturesque views into neighboring
                              Cambridge and Boston.

                          Union Square
                              A short distance from Inman Square, Union Square is a hopping residential and commercial area that borders
                              Cambridge. Its many restaurants and stores, availability of parking and easy access to I-93 make Union square a
                              popular destination among residents of nearby neighborhoods. Overlooking Union Square is the historic Prospect
                              Hill, where the first United States flag is said to have been raised.




                                                                                                                                                                            45
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                                    ADDITIONAL CITIES




                                                           WELLESLEY
                                                           Wellesley is a residential community in Norfolk County located approximately 15
                                                           miles west of Boston. Its location makes it a highly desirable suburb for people who
                                                           work in Boston. Although predominantly residential, it is also an employment center,
                                                           having several attractive office parks located primarily on its eastern border. The town
                                                           is also home to Wellesley College, the Hunnewell Arboretum, and the Elm Bank
                                                           Horticulture Center.




                                                           NEWTON
                                                           Newton is a suburb in Middlesex County west of Boston. Today known as "The
                                                           Garden City," Newton is home to Boston College, Boston College Law School
                                                           and several other institutions of higher education. The city also has two symphony
                                                           orchestras and the Newton Free Library which possesses more than 500,000
                                                           volumes of print materials as well as art, sound recordings and videos.




                                                                                                                                        Area Map

                                                                                                                                                                            46
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                     PUBLIC TRANSPORTATION


                                                           The Massachusetts Bay Transportation Authority (MBTA) finances and
                                                           operates most bus, subway, commuter rail and ferry systems in Greater
                                                           Boston. Nearly 800,000 one-way passenger trips per day are taken on the
                                                           MBTA system. The subway system has three rapid transit lines - the Red,
                                                           Orange and Blue Lines - and two streetcar/light rail lines - the Green Line
                                                           and a portion of the Red Line. The MBTA bus system comprises over 150
                                                           routes across the Greater Boston area. The MBTA boat system operates
                                                           several ferry routes around Boston Harbor, including service to Logan
                                                           International Airport.

                                                           Fares, schedules and complete map information are available at
                                                           www.mbta.com.




                                                               MBTA Subway "T" Map


                                                                                                                                                                            47
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
               Preparing For
                Your Move




NEW YORK   •   CHICAGO   •   BOSTON   •   MIAMI   •   EVANSTON


                www.colfaxrealty.com
                                                                                              PREPARING FOR YOUR MOVE


                          Moving Checklist
                          Two months before moving:
                            c    If you plan to use a mover, get estimates from moving companies in your area.

                            c    If you plan to move yourself, get estimates from truck rental companies.

                            c    Take an inventory of your home and begin to clear out unnecessary items (start with storage areas like the
                                 basement, attic, and garage).

                            c    Create a file for your moving paperwork.

                            c    If you have children in school, arrange to transfer their academic records.

                          Six weeks before moving:
                            c    Call your local storage facility if necessary.

                            c    Ask your healthcare specialist(s) for referrals and obtain all your medical records.

                            c    Get appraisals for any art, valuables, and antiques you may have.

                          Four weeks before moving:
                            c    If you are moving yourself, reserve a truck.

                            c    If you are packing yourself, obtain boxes and materials to start packing things you won't need until after
                                 you arrive at your new property.

                            c    Arrange to clean and repair furniture, drapes, and carpeting if necessary.

                            c    Check with your insurance company to see how possessions are covered during transit.

                            c    Make travel plans if necessary.

                            c    Check to see if any moving permits are required.

                            c    Arrange for transportation of pets and plants if necessary.

                            c    If you are moving in or out of an apartment, arrange for use of the elevator.

                          Three weeks before moving:
                            c    Schedule the disconnection of utility services at your old home and the connection of them at your new
                                 one. Be sure to disconnect the day after you leave and connect the day before you arrive.

                            c    Fill out post office change-of-address cards, or go online at www.usps.com.

                            c    Properly dispose of items that cannot be moved (e.g. flammable liquids, aerosol cans, matches).

                            c    Prepare auto registration for transfer if relocating to another state.

                            c    Start using items that cannot be transported, such as frozen foods or cleaning supplies.




                                                                                                                                                                            49
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                              PREPARING FOR YOUR MOVE


                          Two weeks before moving:
                            c    Gather all medical, dental, veterinary and school records; legal and financial documents; and birth
                                 certificates, passports and insurance documents.

                            c    Service your car in preparation for the move. If you're moving from a warm climate to a cold one, be sure
                                 to check your antifreeze level.

                            c    Cancel your newspaper deliveries.

                            c    Notify creditors of your move.

                            c    Transfer prescriptions and be sure to have a supply of medications on hand.

                            c    Send out change-of-address cards to everyone who will need to contact you.

                            c    Put aside critical items like a checkbook, credit cards, personal phone book, ID, keys, and toiletries. Also,
                                 pack a suitcase with clothing and other personal items.

                            c    Transfer your bank accounts, and close your safe-deposit box.

                          One day before moving:
                            c    Confirm your travel reservations.

                            c    Unplug and defrost your refrigerator and freezer, making sure to prop doors open.

                            c    Disconnect any major appliances.

                            c    Obtain cash or traveler's checks for the trip and to pay your movers.

                            c    Confirm arrival time of your moving van or truck.

                            c    If moving yourself, take apart beds and other large furniture.

                          Moving Day
                            c    If using a mover, be sure someone is at the property to answer questions.

                            c    Read your bill carefully before signing. Keep this paperwork in a safe place.

                          Delivery Day
                            c    Supervise unloading and unpacking.

                            c    Check your belongings carefully and note damaged items, if any.

                            c    Be prepared to pay your mover with cash, certified check or traveler's check unless other arrangements
                                 have been made in advance.




                                                                                                                                                                            50
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                               PREPARING FOR YOUR MOVE


                          Greater Boston Resources
                          Utilities
                          Local Phone Service                             Town of Wellesley Water & Sewer                 Kingsley Montessori School (Boston)
                          Verizon                                         + 1 (781) 235-7600 x350                         + 1 (617) 226-4900
                          + 1 (800) 870-9999                              www.ci.wellesley.ma.us                          www.kingsley.org
                          www.verizon.com
                                                                          Banks                                           Public Schools of Brookline
                          Long Distance Phone Service                                                                     + 1 (617) 730-2401
                          AT&T                                            Bank of America                                 www.brookline.k12.ma.us
                          + 1 (800) 222-0300                              + 1 (800) 841-4000
                          www.consumer.att.com                            www.bankofamerica.com                           Somerville Public Schools
                                                                                                                          + 1 (617) 625-6600
                          Internet Service                                Washington Mutual                               www.somerville.k12.ma.us
                          Verizon                                         + 1 (617) 757-4100
                          + 1 (800) 870-9999                              www.wamu.com                                    Newton Public Schools
                          www.verizononline.com                                                                           + 1 (617) 559-6100
                                                                          Sovereign Bank                                  www.newtonpublicschools.com
                          Comcast                                         + 1 (617) 768-2265
                          + 1 (888) COMCAST                               www.sovereignbank.com                           Wellesley Public Schools
                          www.comcast.com                                                                                 + 1 (781) 446-6210
                                                                          Doctors / Hospitals                             www.wellesleyweb.com
                          Cable/Satellite TV
                          Comcast                                         Massachusetts General Hospital                  Parking Permits
                          + 1 (888) COMCAST                               + 1 (617) 726-2000
                          www.comcast.com                                 www.mgh.harvard.edu                             Cambridge Parking Permit
                                                                                                                          + 1 (617) 349-4700
                          DirecTV                                         Mount Auburn Hospital                           www.cambridgema.gov/traffic/
                          + 1 (888) 238-7177                              + 1 (617) 492-3500
                          www.directv.com                                 www.mountauburn.caregroup.org                   Boston Parking Permit
                                                                                                                          City of Boston
                          Electricity                                     Brigham and Women's                             + 1 (617) 635-4682
                          NSTAR (most cities)                             + 1 (617) 732-5500                              www.cityofboston.gov
                          + 1 (800) 592-2000                              www.brighamandwomens.org
                          www.nstaronline.com                                                                             Brookline Parking Permit
                                                                          Cambridge Memorial Hospital                     City of Brookline
                          Wellesley                                       + 1 (617) 665-1000                              + 1 (617) 730-2177
                          Holyoke Gas & Electric                          www.cmh.org                                     www.town.brookline.ma.us
                          + 1 (413)536-9300
                          www.hged.com                                    Children's Hospital Boston                      Somerville Parking Permit
                                                                          + 1 (617) 355-6000                              City of Somerville
                          Gas                                             www.childrenshospital.org                       + 1 (617) 625-6600 ext. 7900
                          NSTAR (most cities)                                                                             www.ci.somerville.ma.us
                          + 1 (800) 592-2000                              Postal Services
                          www.nstaronline.com                                                                             Newton Parking Permit
                                                                          U.S. Post Office                                City of Newton
                          Wellesley                                       + 1 (800) ASK-USPS                              + 1 (617) 796-1000
                          Holyoke Gas & Electric                          www.usps.com                                    www.ci.newton.ma.us
                          + 1 (413)536-9300
                          www.hged.com                                    Moving Services                                 Vehicle Registration & Insurance
                          Water                                           U-Haul                                          Massachusetts RMV
                          Cambridge Water Department                      + 1 (800) 468-4285                              + 1 (617) 351-4500
                          + 1 (617) 349-4770                              www.uhaul.com                                   www.mass.gov/rmv/
                          www.cambridgema.gov
                                                                          Allied Van Lines                                Massachusetts Driver's License
                          Boston Water & Sewer Commission                 + 1 (800) 823-0755                              + 1 (617) 351-4500
                          + 1 (617) 989-7000                              www.allied.com                                  www.mass.gov/rmv/license/
                          www.bwsc.orgz
                                                                          Schools                                         Vehicle Insurance
                          Brookline Department of Public Works                                                            www.autoinsuranceindepth.com
                          Water & Sewer
                          + 1 (617) 730-2170                              Cambridge Public School District
                          www.town.brookline.ma.us                        + 1 (617) 349-6400
                                                                          www.cpsd.us
                          City Of Somerville Water & Sewer Enterprise
                          + 1 (617) 625-6600 ext. 5850                    Cambridge Montessori School
                          www.ci.somerville.ma.us                         + 1 (617) 492-3410
                                                                          www.cambridgemontessori.net
                          Newton Department of Public Works
                          Water & Sewer                                   Boston Public Schools
                          + 1 (617) 796-1000                              + 1 (617) 635-9000
                          www.ci.newton.ma.us                             http://boston.k12.ma.us/


                                                                                                                                                                            51
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
               Useful Terms
  Property Types and Listing Definitions
    Real Estate and Mortgage Terms




NEW YORK   •   CHICAGO   •   BOSTON   •   MIAMI   •   EVANSTON


                www.colfaxrealty.com
                                                            PROPERTY TYPES AND LISTING DEFINITIONS


                          2/3 Family House – A low-rise residential structure                      Condominium Conversion (Condo Conversion) –
                             which has been divided into two or three apartments,                     Buildings with multiple units formerly utilized as
                             often sharing a common entrance.                                         apartment rentals but now converted into individual
                                                                                                      condominiums. See Condominium description
                          Alcove – A small area off the main living room                              for further details.
                             which can be used as a dining room or sleeping
                             area.                                                                 For Sale by Owner – A property that has been
                                                                                                      offered for sale directly by its owner, as opposed
                          Assessment – A monthly fee paid by condominium                              to one utilizing the services of a real estate
                             owners to cover the cost of the building’s master                        broker. These listings do not employ a listing
                             insurance policy, maintenance and other                                  agent but will many times offer a commission
                             common charges.                                                          to a buyer's agent.

                          Broker Fee – Also known as a finder’s fee, this fee is                   Full-Service Building – A luxury rental building with
                             charged by real estate agents to procure a tenant                         amenities such as garage parking, concierge
                             for a landlord. The total amount of the fee is equal                      service, 24-hour doorperson, fitness center, etc.
                             to one month’s rent and is paid by the tenant                             They are usually mid or high-rise buildings and
                             and/or the landlord. Listings in which the landlord                       their apartments often have central air conditioning,
                             pays the fee are called “no fee” listings. Listings                       dishwashers, garbage disposals, laundry in-unit
                             in which the tenant is responsible for the fee are                        and other modern features.
                             called “full fee” listings.
                                                                                                   Independent Rentals – Privately owned homes
                          Brownstone – Term refers to the type of stone used                          listed for rent. Each home is unique, so the
                             on the façade of buildings built in the late 1800’s                      quality of each listing may vary drastically, even
                             or early 1900’s but is often applied to all vintage                      within the same building. Independent rentals
                             buildings. Usually three to six stories tall, they                       are almost always “full fee” listings. The
                             are sometimes single-family homes but have                               alternative is a Rental Community.
                             usually been converted into multiple apartments.
                             These buildings typically offer features such as                      Laundry In-Unit – Clothes washer and dryer
                             hardwood floors, high ceilings, fireplaces and                           included inside the home. Rarely found in older
                             ornamental wood moldings. Unless they have                               buildings and most commonly available in high-
                             been extensively renovated, they don’t offer                             end rentals and newer homes.
                             modern features such as central air conditioning
                             or laundry in-unit.                                                   Loft – A home characterized by architectural features
                                                                                                       such as high ceilings, an open floor plan,
                          Building Amenities – Swimming pools, health-club                             exposed ductwork and highlighted structural
                             facilities, conference rooms or other common                              elements such as beams and columns. Obsolete
                             areas or attributes of the rental community.                              factories, printing presses and other commercial
                                                                                                       buildings are sometimes converted to residential
                          Cooperative (Co-op) – A multiple-unit structure                              use as loft buildings.
                            owned by a corporation in which each owner
                            purchases shares of stock equal to the value of                        Multiple Listing Service (MLS) – A real estate listing
                            the apartment and is given a proprietary lease.                          service which combines all available properties
                            Instead of owning an individual unit, the owner                          in an area in one database. Brokers pay a
                            is a shareholder of the cooperative corporation.                         subscription fee to share property information
                            Owners pay a monthly maintenance charge,                                 with each other, conduct research, access market
                            determined by the number of shares, to pay for                           statistics and search for properties. Some public
                            the building's underlying mortgage, real estate                          websites give users free access to a stripped down
                            taxes and other maintenance expenses.                                    version of the professional MLS.

                          Condominium – A multiple-unit structure in which                         Pre-Construction Project – A real estate development
                             the owner has individual ownership of a single                            which offers the opportunity to purchase a home,
                             unit together with an interest in the common area.                        typically a condominium, during the construction
                             Each unit is a separate tax lot and the owner is                          phase. Buyers must leave a deposit with the builder
                             responsible for paying taxes directly on the deeded                       and cannot claim ownership until closing, but are
                             unit. Depending on the size of the condominium,                           often allowed to customize their units.
                             the owners may manage the building themselves
                             or hire a management company.




                                                                                                                                                                            53
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                            PROPERTY TYPES AND LISTING DEFINITIONS


                          Rental Community – A professionally managed,
                             multi-family rental building. Unlike independent
                             rentals, rental communities typically offer on-
                             site maintenance service and standard finishes
                             in all their apartments. Larger rental communities
                             sometimes have fitness centers, party rooms and
                             model apartments for prospective tenants to
                             view furnished and decorated apartments.
                             Apartments in rental communities are almost
                             always “no fee” listings. The alternative is an
                             Independent Rental.

                          Security Deposit – A payment required by a landlord
                             to ensure that a tenant pays rent on time and
                             keeps the rental unit in good condition. If the
                             tenant damages the property or leaves owing
                             rent, the landlord can use the security deposit
                             to cover what the tenant owes. Most landlords
                             require a security deposit equal to one month’s
                             rent.

                          Single-Family Home – A detached residential structure
                              in which one individual or family owns the home
                              and the land on which it stands. This is in contrast
                              to condominiums in which several individual owners
                              can own units within the same structure.

                          Studio – A one or two room apartment in which the
                             bedroom and living room are combined.

                          Townhouse/Rowhouse – Typically two to three
                             stories tall, they are part of a row of houses
                             connected by common side walls and without
                             neighbors above or below the home.

                          Unit Features – Kitchen appliances, type of flooring,
                             architectural traits or other characteristics which
                             are part of the home itself.

                          Victorian – Victorian architecture is known for its
                             decorative, old-style details. Characteristically,
                             you'll find these homes containing
                             ornamentations like patterned shingles, curved
                             towers and spindled porches.

                          Walk-Up Building – A residential building with up
                            to five floors and no elevator.

                          Washer/Dryer Hookup – Plumbing and utility
                            connections provided by a landlord which allow
                            a tenant to install their own washer and dryer.




                                                                                                                                                                            54
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                             REAL ESTATE AND MORTGAGE TERMS


                          Adjustable Rate – This interest rate changes                                  company decide how much you'll need to
                             according to periodic shifts in the market index.                          purchase a new home.
                             As the interest rate changes, loan payments may
                             increase or decrease.                                                 Assumption of Mortgage – When you take out a
                                                                                                      loan, you agree to be responsible for payments
                          Amortization – The term “amortization” refers to                            on your loan. This assumption of mortgage may
                            the process of paying down your loan in monthly                           hold the seller secondarily liable for the payments
                            installments. When you take out a loan on a new                           unless the lender stipulates otherwise.
                            home, you will make regular monthly payments
                            in order to pay down your mortgage. During the                         Balloon Payment – If you take out a balloon loan,
                            first few years, the bulk of the monthly payments                         at the end of the loan's term, usually five to
                            will go towards paying interest on the loan.                              seven years, you will owe a lump sum payment,
                            Towards the end of the term of the loan, the                              known as a balloon payment, for the unpaid
                            majority of the payments will go toward paying                            balance of the mortgage.
                            down the principal.
                                                                                                   Cap – If you take out an adjustable-rate mortgage,
                          Annual Membership – When you take out a loan,                               there will most likely be a cap, or maximum
                            a certain credit line becomes available to you                            allowable increase, beyond which a payment
                            depending on several factors, such as your gross                          or interest rate cannot go. In other words, for a
                            income (see definition below) and the size of                             specified amount of time, your lender is not
                            your loan. Also known as a “participation fee,”                           permitted to raise your interest or require
                            the annual membership refers to the charge for                            payments above a certain amount regardless of
                            having this credit line. Annual membership is                             interest rate fluctuations.
                            usually charged regardless of whether you use
                            the credit line or not.                                                Ceiling – When you take out an adjustable-rate
                                                                                                      mortgage, it will probably have a ceiling, which
                          Annual Percentage Rate (APR) – This rate, which                             is the maximum allowable interest rate over the
                            is the cost of credit on a yearly basis expressed                         entire life of the loan.
                            as a percentage, includes any up-front costs
                            paid to obtain your mortgage. The APR is usually                       Closing Costs – There are several costs associated
                            a higher amount than the interest rate named
                            in your mortgage note. Under the Federal Truth                            with closing on the purchase of a home. These
                            in Lending Act, Regulation Z, your lender is                              fees may be paid by both the borrowers or the
                            required to disclose this amount to you.                                  sellers and usually include an origination fee,
                            Unfortunately, this rate does not include the                             discount points, attorney fees, title insurance,
                            cost for obtaining title insurance, an appraisal                          survey and any other required items that must
                            or your credit report.                                                    be paid before closing, such as personal property
                                                                                                      taxes and escrow payments.
                          Application – To approve your mortgage, you must
                             file an initial statement containing your personal                    Conforming Loan – This refers to a mortgage loan
                             and financial information. Information on your                          under the amount of $203,150. This number is
                             loan application will include items such as your                        arrived at by standard underwriting methods
                             gross income (see definition below), your assets                        and qualifying ratios.
                             if you plan to use them to purchase property,
                             plus basic personal information such as name,                         Contract of Sale – When you purchase your new
                             address and the like.                                                    home, you will sign an agreement called a contract
                                                                                                      of sale. This document sets down all the details of
                          Application Fee – Upon filing an application to                             the transaction, including the cost of the home,
                            obtain a mortgage, you will be required to pay                            any terms and conditions both parties would like
                            a fee. The amount of the application fee often                            to include, and the transfer of the home's title from
                            includes the charges for a property appraisal                             the seller to the buyer.
                            (usually valued at $200 to $400) and a credit
                            report ($30 to $50), both of which are required                        Credit Limit – Your credit limit is the maximum
                            to obtain a mortgage.                                                     amount of money a lender will allow you to
                                                                                                      borrow under a home equity plan.
                          Appraisal – Most lenders require you to hire an
                            independent person or firm to provide them                             Debt Service – Your debt service refers to the amount
                            information on the value of a home in a specific                         of outstanding debt that you must pay per month.
                            market as of a specific date. This appraisal will                        This includes your monthly credit card payments,
                            allow you to determine the actual value of a                             car payments, mortgages or other debts like
                            potential home, and will help your mortgage                              student loans.

                                                                                                                                                                            55
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                            REAL ESTATE AND MORTGAGE TERMS


                          Discount Points (or Points) – To maintain or lower                       Equity – This is the amount of the fair market value
                             the amount of interest rate on your loan, you                            of your home based upon an independent
                             will be required to pay a certain amount of                              appraisal and the outstanding mortgage balance.
                             money. Referred to as discount points, each                              Because the fair market value of a home may
                             point is equal to 1 percent of the amount of                             change as a property appreciates, whether
                             your loan. So, if you choose to pay for four                             through home improvements or increased
                             discount points on a $100,000 mortgage, the                              property value, the amount of equity you have
                             cost to you would be $4,000.                                             in your home may also change.

                          Down Payment – When you take out a mortgage,                             First Mortgage – A property can have more than
                            you will be required to pay a certain percentage                           one loan against it. A first mortgage is the first
                            of the total cost of your new home. This                                   one registered with your state or county and
                            percentage, referred to as a down payment, is                              takes priority over all other loans against a
                            the difference between the purchase price and                              property.
                            the amount of money you are borrowing for the
                            rest of the purchase. Most lenders require the                         Fixed Rate – This is an interest rate that is fixed or
                            buyer to pay the down payment from their own                               locked for the entire life of a loan. Having a fixed
                            funds. Some lenders will accept gifts from related                         rate means that all payments on a mortgage will
                            parties, but if someone in your family wants to                            stay the same for the term of the loan.
                            finance any part of your down payment, you
                            must notify the lender.                                                FHA Loan – This is a loan ensured by the Federal
                                                                                                     Housing Administration (FHA). If you take out
                          Due on Sale – If you should decide to sell your                            an FHA loan, the FHA will insure your lender
                            property before you have totally paid off your                           against any losses they may incur if you default
                            mortgage, your mortgage company may require                              on your mortgage.
                            that you do so upon the sale of the property. This
                            clause is referred to as due on sale.                                  Good Faith Estimate – Lenders are required to provide
                                                                                                     you with a written estimate, called a good faith
                          Earnest Money – Money put down by a potential                              estimate, which stipulates all the costs associated
                             buyer to show that he or she is serious about                           with closing on the sale of a property. This estimate
                             purchasing the home. It becomes part of the                             must be in your hands within three days of
                             down payment if the offer is accepted, is returned                      submission of your application.
                             if the offer is rejected or does not go through
                             during the due diligence phase, and is forfeited                      Gross Income – Your lender will use your gross income
                             if the buyer pulls out of the deal.                                      to determine if you qualify for a mortgage. Your gross
                                                                                                      income is the amount of money you make before
                          Effective Interest Rate – Including the up-front costs                      taxes and other expenses, such as health insurance.
                              required to obtain the mortgage, the effective
                              interest rate is the annual cost of credit expressed                 Home Equity Line of Credit – You can use your
                              as a percentage. This rate is usually higher than                      home equity in order to obtain a loan for
                              the interest rate named in your mortgage note                          something else. This is one of the reasons home
                              and can be helpful to the buyer when comparing                         equity is so important. A home equity line of
                              loan programs with different interest rates and                        credit allows you to borrow money when you
                              points.                                                                need it up to a certain amount. Also, payments
                                                                                                     on the simple interest, or periodic payments
                          Encumbrance – Sometimes a third party will have                            covering only the interest of the loan, of a home
                             a claim against a property. Referred to as an                           equity line of credit are usually tax deductible.
                             encumbrance, this claim usually affects the                             Many people use home equity lines of credit for
                             seller's ability to transfer their ownership to a buyer.                home improvements, in times of emergency or
                                                                                                     for debt consolidation.
                          Escrow – A legal arrangement whereby an asset
                             (often money) is delivered to a third party to be                     Home Equity Loan – A home equity loan, like a home
                             held in trust pending a contingency or the                              equity line of credit, is obtained by leveraging the
                             fulfillment of a contract. Upon that event                              equity in your home, and is often tax deductible.
                             occurring, the asset will be released to the proper                     This loan can be a fixed- or adjustable-rate loan.
                             recipient; if not, the escrow account must be                           Home equity loans can be used for a variety of
                             maintained. Escrow is best known in the context                         reasons, and are often recommended as a substitute
                             of real estate, specifically in mortgages where                         to higher-interest consumer loans that are not tax
                             the mortgage company will establish an escrow                           deductible, such as loans for purchasing a new
                             account to pay property tax and insurance                               car or boat, paying off credit card debt, medical
                             during the term of the mortgage.                                        debt or student loans.

                                                                                                                                                                            56
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                            REAL ESTATE AND MORTGAGE TERMS


                          Hazard Insurance – When you obtain hazard                                Margin – Usually expressed as a percentage, the
                            insurance, your insurer is required to compensate                        margin is added to an index to decide what the
                            you for loss of properties caused by natural hazards                     going rate is for adjustable-rate mortgages.
                            such as fire, hail damage, or tornadoes. Hazard
                            insurance is not free, though – you will have to                       Minimum Payment – All home equity loans or lines
                            pay a monthly or yearly premium to obtain it.                             of credit require that you pay at least a stipulated
                                                                                                      amount, usually on a monthly basis. Sometimes
                          HUD I Settlement Statement – This is a form used                            this minimum payment is just the periodic
                            at the closing of a property sale. A HUD I form                           interest, while in other cases the minimum
                            itemizes all costs associated with the transaction                        payment might include both the interest and
                            and is required by the Department of Housing                              some amount of principal.
                            and Urban Development (HUD).
                                                                                                   Mortgage Banker – Your mortgage banker is the
                          Index – Future mortgage rates are based upon                               person or company who loans you funds and
                             several numbers and percentages. Each number                            closes the loan in their name.
                             or percentage is referred to as an index. There
                             are several different types of indexes, such as                       Mortgage Broker – The mortgage broker acts as a go-
                             the Cost of Funds for the Eleventh Federal District                     between for a mortgage banker and a buyer. They do
                             of Banks or the average rate of a one-year                              all the paperwork of a loan, taking applications and
                             Government Treasury Security. These numbers                             processing all forms, but they do not lend their own
                             often fluctuate depending upon the market.                              money. Mortgage brokers usually work on behalf of
                                                                                                     several investors including mortgage bankers, savings
                          Interest Rate – Levied against all loans, whether                          and loan institutions, banks or investment bankers.
                             it's a credit card, a mortgage or a car payment,
                             an interest rate is a periodic charge a borrower                      Mortgage Insurance or Private Mortgage Insurance
                             pays to a lender in exchange for borrowing                              (MIP or PMI) – If you default on your loan, your
                             money.                                                                  lender, whether it's the government or a private
                                                                                                     institution, wants to be protected from losses.
                          Jumbo Loan – As the name implies, jumbo loans                              Mortgage Insurance Premium, usually referred to
                             are high-value mortgage loans above a limit set                         as MIP, is generally paid on government loans
                             by Freddie Mac and Fannie Mae. The 2005 limit                           regardless of your LTV ratio. If you do pay off a
                             is $359,650. These loans may have different                             government loan before it has matured (before the
                             terms and underwriting requirements from a                              termination date of the loan), you might receive a
                             regular conforming loan.                                                small refund. Private Mortgage Insurance, PMI,
                                                                                                     works similarly, but is paid on those loans that have
                          Loan to Value Ratio (LTV) – The LTV is determined by                       not been financed by the government. However,
                             dividing the sale price or market value of a property                   you probably won't be required to obtain PMI
                             with the loan amount. The resulting number,                             unless your LTV ratio is greater than 80 percent.
                             expressed as a percentage, is the LTV. For example,                     Once you have accumulated 20 percent of your
                             if a house is valued at $100,000 and the mortgage                       home's value in equity, your lender may allow you
                             loan is $80,000, the LTV is 80 percent, meaning                         to waive PMI. An important thing to remember is
                             that the loan is 80 percent of the value of the                         that, unlike life insurance, neither PMI nor MIP will
                             property. If you need to take out a mortgage on                         pay off your loans in case of death.
                             more than 80 percent of the value of a given
                             property, you may be required to obtain private                       Mortgage Loan – A mortgage loan is based on real
                             mortgage insurance, which is defined below.                             estate. In other words, the property you purchase
                                                                                                     with a mortgage loan is your lender's security that
                          Lock or Lock In – If you lock in to a particular                           you will not default on a loan. If you default on a
                             interest rate, it means you have an agreement                           mortgage loan, your lender has the right to the real
                             from your lender that the agreed-upon interest                          estate with which you are backing your mortgage.
                             rate will not change for a certain period of time,
                             regardless of external fluctuation. Getting a                         Mortgagee – The person or entity lending funds in
                             locked interest rate is often helpful, especially                       a mortgage transaction.
                             if interest rates should rise between the time
                             you have applied for a loan, gotten approval                          Mortgagor – The person borrowing funds in a
                             and closed on a property.                                               mortgage transaction.




                                                                                                                                                                            57
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                            REAL ESTATE AND MORTGAGE TERMS


                          Negative Amortization – Amortization is the process                      Title – This document is a statement indicating who
                             through which a property owner gains principal                            owns a specific piece of property.
                             in their property. Conversely, negative
                             amortization is the process through which a                           Title Insurance – This insurance protects both lenders
                             property owner loses principal. Negative                                  and homeowners against any financial losses that
                             amortization can happen for a variety of reasons;                         might occur through legal problems with a title.
                             however, it usually happens if the increase in
                             monthly loan payments is limited by a ceiling.                        Transaction Fee – When you draw on your home
                             If a ceiling is in place and all the combined                            equity credit line, you will probably be charged
                             payments do not cover the total amount of the                            a transaction fee to withdraw funds.
                             loan and interest, the balance owed might
                             increase, leaving the mortgage holder with a                          Underwriting – This is the process your mortgage
                             balance owed at the end of the term of the loan.                        company goes through when verifying data such
                                                                                                     as your gross income in order to approve a loan.
                          PITI – Your monthly mortgage payment is made up
                             of several different components: principal, interest,                 Variable Rate – Interest rates fluctuate based upon
                             taxes and insurance, also known as PITI.                                 a given index. Rates that change based upon
                                                                                                      an index are called variable rates and may result
                          Points – Also known as discount points, this is the                         in increased or decreased loan payments.
                             amount the owner pays to maintain or lower their
                             interest rate. Each point is the same as 1 percent                    VA Loan – Insured by the Veteran's Administration,
                             of the total loan amount. So, if you have a $100,000                     VA loans are available only to veterans with a
                             mortgage, four points would be worth $4,000.                             Certificate of Eligibility.

                          Prepayment Penalty – Lending institutions often
                             charge borrowers a fee if they pay off a loan
                             before it matures. Most lending institutions
                             expect to make a certain amount of money
                             through the interest they charge over time on a
                             loan. When someone pays off a loan early, the
                             lending institution loses the money they expected
                             to make in interest. Charging a prepayment
                             penalty helps the mortgage company recover
                             some of those losses.

                          Qualifying Ratios – Used in obtaining a mortgage,
                            the qualifying ratios refer to comparisons of a
                            borrower's outstanding debts and their gross
                            monthly income.

                          Right to Rescission – Although you cannot use right
                             of rescission on a mortgage loan used to buy a
                             home, you can apply it to other loans, like home
                             equity loans. This right permits you to cancel
                             your loan contract in such a way that it is as
                             though it never existed.

                          Security Interest – When you borrow funds to
                             obtain real estate, your lender has an interest
                             in your property to ensure that you will pay
                             back your mortgage. That interest is referred to
                             as a security interest.

                          Servicing a Loan – This is another term for the
                             process of collecting your monthly mortgage
                             payment. Loan service includes accounting for
                             and paying yearly personal property taxes on
                             your real estate plus homeowners' insurance.




                                                                                                                                                                            58
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                        CONTACT INFORMATION


            If you have any questions or comments, please feel free to contact us by e-mail at
                    relocation@colfaxrealty.com or directly at any of our five offices.

                                                                              BOSTON
                                                                  12 Eliot Street, #2R
                                                                Cambridge, MA 02138
                                                                Phone: (617) 491-1415
                                                                 Fax: (617) 491-1393
                                                               boston@colfaxrealty.com

                                                                             CHICAGO
                                                           1729 N. Clybourn Avenue #1
                                                                Chicago, IL 60614
                                                             Phone: (312) 274-1470
                                                               Fax: (312) 274-1469
                                                            chicago@colfaxrealty.com

                                                                            EVANSTON
                                                                  915 Foster Street
                                                                 Evanston, IL 60201
                                                               Phone: (847) 869-1922
                                                                Fax: (847) 869-4435
                                                             evanston@colfaxrealty.com

                                                                                MIAMI
                                                                  4002 Aurora Street
                                                                Coral Gables, FL 33146
                                                                Phone: (305) 529–0880
                                                                 Fax: (305) 529–0852
                                                                miami@colfaxrealty.com

                                                                        NEW YORK CITY
                                                                 1705 First Avenue
                                                                New York, NY 10128
                                                               Phone: (212) 410-0300
                                                                Fax: (212) 410-0344
                                                             newyork@colfaxrealty.com




                                                                                                                                                                            59
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
           Greater Boston
           Market Research
           Condominium Sale Prices
           by City and Neighborhood




NEW YORK   •   CHICAGO   •   BOSTON   •   MIAMI   •   EVANSTON


                www.colfaxrealty.com
                                                                                   GREATER BOSTON MARKET RESEARCH


                          We believe thorough market research is critical in keeping Colfax, its partners and clients wellinformed
                          and prepared to make educated real estate decisions. We take pride in our understanding
                          of the dynamics in each of our core markets and our ability to provide expert advice. The following
                          report showcases activity and trends in the Greater Boston condominium market over the past five
                          years. Average and median sale prices, appreciation, sales to list price ratio, market time, and units
                          sold are charted for Boston, Brookline, Cambridge and Somerville. All data was extracted from the
                          Multiple Listing Service Property Information Network (MLS PIN), covering the period from 2001 to
                          2006.


                                                                             Median Sale Price for 1 and 2 BR Condos -- Boston
                                                   $650,000



                                                   $550,000
                                    Median Price




                                                   $450,000



                                                   $350,000



                                                   $250,000



                                                   $150,000
                                                                      2001           2002       2003           2004             2005            2006*

                                                         1 BR       $205,000       $236,000   $282,500       $305,000         $335,000        $342,000
                                                         2 BR       $287,625       $369,900   $380,000       $420,000         $462,000        $460,000
                                                                *As of July 2006




                                                                        Median Sale Price for 1 and 2 BR Condos -- Cambridge
                                                   $650,000



                                                   $550,000
                                    Median Price




                                                   $450,000



                                                   $350,000



                                                   $250,000



                                                   $150,000
                                                                      2001          2002       2003            2004            2005            2006*
                                                         1 BR       $257,500       $283,000   $299,000       $319,000        $340,000         $312,900
                                                         2 BR       $345,000       $371,000   $381,500       $409,000        $442,000         $420,000
                                                                *As of July 2006




                                                                                                                                                                            61
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                    GREATER BOSTON MARKET RESEARCH




                                                                             Median Sale Price for 1 and 2 BR Condos -- Brookline
                                                  $650,000



                                                  $550,000
                                Median Price




                                                  $450,000



                                                  $350,000



                                                  $250,000



                                                  $150,000
                                                                      2001          2002       2003             2004              2005             2006*
                                                        1 BR       $265,000        $290,000   $309,000        $320,200          $345,000          $330,000
                                                        2 BR       $360,000        $382,000   $409,000        $456,685          $479,100          $475,000
                                                               *As of July 2006




                                                                           Median Sale Price for 1 and 2 BR Condos -- Somerville
                                                  $650,000


                                                  $550,000
                                   Median Price




                                                  $450,000



                                                  $350,000


                                                  $250,000



                                                  $150,000
                                                                       2001          2002       2003            2004             2005             2006*
                                                        1 BR        $203,000       $240,000   $297,000       $264,900          $289,000         $250,000
                                                        2 BR        $287,000       $312,000   $330,000       $340,000          $360,000         $353,000
                                                                *As of July 2006




                                                                                                                                                                            62
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                GREATER BOSTON MARKET RESEARCH




                                                                         Median Sale Price for 1 and 2 BR Condos -- Back Bay
                                             $850,000

                                             $750,000

                                             $650,000
                              Median Price




                                             $550,000

                                             $450,000

                                             $350,000

                                             $250,000

                                             $150,000
                                                                 2001           2002          2003              2004               2005             2006*

                                                  1 BR        $360,000        $346,501      $360,000          $400,000          $429,000          $415,000
                                                  2 BR        $595,000        $650,000      $615,000          $689,000          $740,000          $755,000
                                                          *As of July 2006




                                                                      Median Sale Price for 1 and 2 BR Condos -- Beacon HIll
                                             $850,000

                                             $750,000

                                             $650,000
                              Median Price




                                             $550,000

                                             $450,000

                                             $350,000


                                             $250,000

                                             $150,000
                                                                  2001          2002          2003              2004              2005               2006*

                                                   1 BR        $285,000        $290,000     $309,000          $355,000          $380,000           $385,000
                                                   2 BR        $466,485        $449,000     $585,000          $638,500          $590,000           $640,000
                                                          *As of July 2006




                                                                                                                                                                            63
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                GREATER BOSTON MARKET RESEARCH




                                                                        Median Sale Price for 1 and 2 BR Condos -- South End
                                               $650,000



                                               $550,000
                                Median Price




                                               $450,000



                                               $350,000



                                               $250,000



                                               $150,000
                                                                   2001         2002          2003              2004             2005              2006*
                                                    1 BR        $314,000       $319,000     $335,000         $385,000          $400,000          $399,000
                                                    2 BR        $441,250       $450,000     $459,000         $539,000          $583,000          $585,000
                                                            *As of July 2006




                                                                       Median Sale Price for 1 and 2 BR Condos -- Charlestown
                                               $650,000


                                               $550,000
                                Median Price




                                               $450,000


                                               $350,000


                                               $250,000


                                               $150,000
                                                                    2001          2002         2003             2004               2005             2006*

                                                     1 BR        $275,000      $299,000      $298,000         $314,500          $329,000         $349,000
                                                     2 BR        $395,000      $379,000      $407,000         $442,000          $495,000         $490,000
                                                            *As of July 2006




                                                                                                                                                                            64
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                              GREATER BOSTON MARKET RESEARCH




                                                                   Median Sale Price for 1 and 2 BR Condos -- South Boston
                                              $650,000


                                              $550,000
                               Median Price




                                              $450,000


                                              $350,000


                                              $250,000



                                              $150,000
                                                                  2001          2002           2003              2004              2005             2006*

                                                    1 BR       $200,000       $219,000      $226,000           $280,000         $285,000          $266,000
                                                    2 BR       $220,000       $300,000      $320,000           $359,000         $372,000          $365,000
                                                           *As of July 2006




                                                                  Median Sale Price for 1 and 2 BR Condos -- Allston/Brighton
                                              $650,000



                                              $550,000
                               Median Price




                                              $450,000



                                              $350,000



                                              $250,000



                                              $150,000
                                                                 2001          2002            2003              2004              2005              2006*

                                                    1 BR       $159,000       $179,000      $195,000           $208,000          $216,500          $225,000
                                                    2 BR       $224,000       $252,500      $258,000           $289,000          $310,000          $329,000
                                                           *As of July 2006




                                                                                                                                                                            65
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                                                                                                                                     DISCLOSURES




           ***Consult competent legal and/or accounting advice for all tax related information***
                     • Investing in real estate may be appropriate for you if you are willing to accept the risks and
                     uncertainties of investing in the real estate market.

                     • Real estate is a cyclical business, highly sensitive to general and local economic developments
                     and characterized by intense competition and periodic overbuilding. Real estate income and
                     values may also be greatly affected by demographic trends, such as population shifts or changing
                     tastes and values. Government actions, such as tax increases, zoning law changes or environmental
                     regulations, may also have a major impact on real estate markets. Changing interest rates and
                     credit quality requirements will also affect the cash flow of real estate assets and their ability to
                     meet capital needs.

                     • Past performance is not necessarily a guide to future performance. Estimates of future performance
                     are based on assumptions that may not be realized.

                     • Owning and operating real estate requires specialized management skills and bears management
                     and operating expenses.

                     • The risks of investing in this project may be intensified because it is non-diversified.

           Additional disclosures:
           This document does not provide individually tailored investment, legal or tax advice. It has been
           prepared without regard to the individual financial circumstances and objectives of persons who receive
           it. The opinions discussed in this document may not be suitable for all people. Colfax Realty Group,
           Inc. recommends that clients independently evaluate particular investments and strategies, and encourages
           clients to seek the advice of a financial, legal and tax advisor. The appropriateness of a particular
           investment or strategy will depend on a client's individual circumstances and objectives. As a real estate
           broker, Colfax Realty, or an affiliate, expects to receive or intends to seek referral or commission
           compensation from brokerage services.

           The information and opinions in this document were prepared by Colfax Realty Group, Inc., a real
           estate brokerage firm based in Evanston, IL. We are not tax, legal or financial advisors. This document
           is not an offer to buy or sell any property or to participate in any strategy. Colfax Realty Group, Inc.,
           other affiliate companies and/or their employees may have investments in properties mentioned in this
           presentation, and may rent and / or sell them in ways different from those discussed in this document.

           Colfax Realty Group, Inc. makes every effort to use reliable, comprehensive information, but we make
           no representation that it is accurate or complete. The value of and income from your properties may
           vary due to changes in interest rates, market indexes, operational or financial conditions of the properties
           or other factors. Past performance is not necessarily a guide to future performance. Estimates of future
           performance are based on assumptions that may not be realized.

           The materials presented in this guide may not be copied, reproduced, distributed or republished in any
           form or by any means without the prior express written permission of Colfax Realty Group.




                                                                                                                                                                            66
These materials may not be copied, reproduced, distributed or republished in any form or by any means without the prior express written permission of Colfax Realty Group
                              (888) COLFAX-1



                         12 Eliot Street #2R, Cambridge, MA 02138
                        Phone (617) 491-1415 - Fax (617) 491-1393
                                relocation@colfaxrealty.com




Residential Brokerage         Relocations          Investments      Grad Student Housing

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:7/25/2011
language:English
pages:63