The Distinct Link

2009-08-15T21:42:00.000-07:00

"A day spent with champions is more rewarding than an eternity spent with mediocrity."

Who do you spend your time with? Are the people in your life professionally and personally at the place you aspire? Statistics indicate that your attitudes about money, work and love are influenced (and often determined) by the 5 people you spend the most time with.

I recently took inventory of the people in my life to see if they were pulling me toward or away from my goals. I quickly realized the majority of them were impeding my ability to move forward in my career and personal life. One-by-one I made contact with each "debilitator". In some cases I needed to set expectations/barriers for future communication, for others I needed to end the relationship completely.

The result was a week of liberation. With my life inhibitors gone, I was free to think about who I wanted to spend time with moving forward. I created a list of the 5 people - 2 influencers and 3 raving fans - to contact next week. The influencers are people who inspire me through their leadership in business while my raving fans are past clients who as a result of my service gladly refer me to others.

As a Realtor and/or small business owner it is easy to get caught up in trying to be everything to everyone. If you focus on the masses you (and your message) will get lost in the crowd. Find your key clients and create a plan to care for them. Meanwhile reach out to industry influencers in your field of business. Find ways you can help them and in return they will help you.

Don't settle for mediocrity. Determine the life you want, surround yourself with raving fans and high-achievers and watch a world of opportunity open up for you.

2008-09-25T17:19:00.000-07:00

How do YOU feel?

If a job is a means to an end but work is the passion that drives your soul - what did you do today?

When was the last time a colleague or manager asked you how do you feel about your job? How you feel about your performance? How you feel about him/her as your manager?

I am fortunate to work in a company where my manager (broker) asks me how I feel on a weekly basis but others are not so fortunate. Ironically we live in an "experience" based society and yet we have been conditioned to believe we should not feel pleasure at the one place we spend 80% of our time - our jobs.

Ok, what does this have to do with real estate...if you can't changed your job because of some preconceived limitation then you should find pleasure when you arrive home. If are unhappy with where you live but you can't afford to buy a new home you should make the home you have a haven.

One technique for creating your place of tranquility is to de-clutter. Clutter subliminally restricts you from achieving your ultimate success. Work on one room at a time by placing your belongings in three piles: keep, give away, and throw away. Throw away everything that is broken and purge through useless paper. If you own something you enjoyed but it no longer serves its purpose give it to someone who will benefit from it. Only keep the stuff you LOVE.

Another technique for creating your "haven" is to paint. Find an item in your home that inspires you and paint a room that color. Seeing that color will bring you back to the joyful experience and cause your brain to work to recreate it. An instant mood boost.

Then buy one item you LOVE. How many times do you buy an item because its priced right not because you love it? Every time you spend money you make a personal statement about your values and the receipts are proof of your values. Make a pledge to yourself that you will only buy what you love.

Too often we wait until we are going to sell our home to make the improvements we have always wanted. Make those improvements today and then ask yourself...how do I feel?

2008-08-26T06:27:00.000-07:00

Olympic Recovery?

Despite an increase in housing sales for the month of July, The Wall Street Journal and other media outlets created a negative story around the increase in the inventory of houses on the market and the fall of new construction stocks. The highlight of their doom and gloom story was that the Olympic recovery they want to report isn't expected until mid-2009. No kidding.

Let's put these unrealistic expectations in perspective...in Fairfield county the average list price of all 8773 homes currently listed on the market is $935,073. The average sale price is $663,035. All you buyers eager to benefit from the market don't misconstrue these numbers - houses are NOT selling for 70% of list price - the average list price of SOLD homes is $701,985. All these numbers are meaningless without looking at days on the market. The average market time for ACTIVE listings between $200K-$600K is 123 days. The average market time for houses that have SOLD is 96 days.

What does all this mean??

There are too many overpriced houses. Inventory continues to increase because people who have had their houses on the market for 100+ days are not listening to the market and either reducing their price or improving the condition of their home.

People should focus on the increase in sales and see it for what it is...an increase. It's only going to get better. In Fairfield County 417 houses have gone PENDING during the past 30 days as compared to 185 PENDING sales during the 30 days prior. Buyers are buying.

If journalists are using the term "recovery" to mean prices will go back to what they were 5 years ago, they are right we are not going to have an Olympic "recovery" until closer to 2011. However as a REALTOR working with buyers and sellers this is a GREAT market. There is no better time to sell if you want to upgrade your home and no better time to buy - period!

2008-08-12T20:02:00.000-07:00

Don't Believe The Hype - It's Always A People Market

I feel like a broken record but a couple of things happened during the past week to reinforce my motto - it's never a buyers market, it's never a seller's market...it is always a people market.

I had a listing in Bridgeport that was withdrawn on Friday. It had been on the market for 114 days. Despite marketing, open houses and price reductions the listing didn't get much attention... until another house on the same street came on the market. We had 10 showings in a week and 3 agents call to say they had interested clients. Last Thursday we received a solid (but not full price) offer. I contacted my client to learn that she was no longer interested in selling the house. It had been on the market for awhile, it wasn't a full price offer and life circumstances caused her to reconsider her decision to sell. I informed the buyer's agent. The agent's response was one of shock. She went so far as to questioned if the house would appraise for it's list price. Ultimately the list price was irrelevant because my client withdraw the property the next day. A couple days later the same buyer's agent called to say her client wanted THIS house and was willing to pay full price. Unfortunately my client was not interested in selling. change The buyer's agent called one more time with her client crying in the background (I swear I am not exaggerating this story) to see if there was any change. Still the answer was no.

I share this story because it is only one of many which proves that it is always a PEOPLE MARKET. What seller in this "buyer's market" would say no to a full price offer? Someone who felt it was more important to be "home" than to get the cash and run.

One of my KW colleagues had a house listed in Shelton that got a couple offers within 14 days of being listed. This house was priced at more than $700K and the offer was for full price. During the appraisal the house did not appraise for as much as the offer. The buyer's didn't care. They had a large enough down payment that the appraisal price did not impact their mortgage and they purchased the house anyway.

What buyer would buy a house for more than it appraised for in a "buyer's market"? Someone who understands that coming home to a house you love is more important than securing an "investment" (read previous blogs if you want my opinion on your primary residence as an investment).

Since markets are based on supply and demand conventional wisdom has everyone believing we are in a "buyer's market" because the supply is high. However the popular statistics that justify buyer/seller terminology does not take into consideration basic human nature which is truly the driving factor in a more traditional market. NOTE: We are not in a "declining market" we are in a traditional market. After the BOOM of the previous 5 years things had to correct themselves which technically means sales will decrease.

So don't believe the hype. Yes, prices will continue to drop (however they are not declining at .05% per month as predicted by analysts - it's less) during the next 8-12 months. It is a great time to buy but you need time to weed out the junk. It is also a great time to sell. Price it appropriately and property prepare it for sale and it will sell quickly.

2008-07-18T13:57:00.000-07:00

Are We Serious?

This winter many people will be faced with the challenge of keeping up with their mortgage payments. To make matters worse we are all faced with exorbitant oil prices. I use the term exorbitant because of what we are accustom to paying NOT because I think the price of oil is outrageous. To put things into perspective I will compare the cost of oil to the cost of bottled water.

FastCompany.com reports that Americans move 1 billion bottles of water each week - that is the equivalent 37,800 18-wheelers delivering water. We drink more bottled water than coffee, beer and milk combined. Furthermore the US is the largest consumer of bottled water in the world and yet we are the only country of the top four - Brazil, China and New Mexico - that has universally reliable tap water.

How does all of this relate to oil prices. Well take the price of a bottle of water...last weekend I paid $5.00 a bottle at a professional baseball game...however for the purpose of this example I will use the conservative price of $1.00 per 16 oz. bottle. Converted into gallons there are 128 oz. in a gallon dived by the average size bottle of water (16 oz) and we pay $8 a gallon for something we can get from the tap for FREE.

I won't even discuss the other additional costs/wastes related to the packaging and transporting of this non-essential item or the fact that 1.5 tons of plastic is used annually to package this ridiculous product. So here we are wasting money on bottles of liquid we could get for FREE while we complain about the cost of a non-renewable resource like oil.

The increase has made me a more educated consumer. I have been wasting for years. One of things we are doing in our home is putting in a fire place insert. We have fires almost every day during the winter but we have allowed the heat to go up the chimney. Not only were we wasting oil by not taking advantage of our fireplace but we were wasting wood by burning it and not using it to heat our home. Shame on us.

The other thing we are going to try this winter is an outside thermometer for our boiler. I learned that boilers are designed to heat your home during the coldest days of the year. (For us in the Northeast that's about 4 weeks a year.) This means that for the remainder of the year the call for energy from the boiler is the same even though the call for heat is less. An outside thermometer tells your boiler to use less energy and therefore less oil. I can't imagine how much oil I have wasted. It's embarrassing.

It took this increase price in oil for me to research other ways to heat my home. It took the fall of sub-prime lenders for buyer's to learn that they need to live within their means. Now the foreclosure market is bringing seller's to their senses about the true value of their homes. The good news is that there is no need for alarm. We will get past high oil prices, we will get through the mortgage issue and in due time the price of homes will rise. Until then (and hopefully after) it is time we work together to be better consumers.

2008-07-07T07:38:00.000-07:00

I can't believe it has been so long since my last post. I hope you had a great 4th of July. It's important to remember the meaning of the day we declared our independence. We live in a country where we have freedom of choice and the ability to achieve the American dream of home ownership. That's something to celebrate!

Today my favorite contributing blogger David Reed is going to talk about paying points and answer the big questions: To pay or not to pay.

Numerous closing costs come with any mortgage. There’s a fee for an appraisal and a fee for a credit report… and the lender has its fees, too. And don’t forget about the attorney fee, title insurance and escrow charges. Closing costs can vary from state to state and province to province, but you really don’t have much choice of whether you want a survey or if title insurance is right for you. There will be a variety of services performed and records searched by different companies, and none of these come free of charge.

But there is one closing cost that you can control: discount points or, more simply, points. A discount point reduces the interest rate on your mortgage. One point is equal to 1 percent of your loan amount, so on a $200,000 loan one point equals $2,000.

Why do some lenders charge points? In reality, all lenders pretty much have the same rates; it’s just that sometimes a lender will advertise a rate with a point or a rate without a point. But the decision to pay a point is yours alone.

A point will typically reduce your interest rate by a quarter of a percent on a 30-year mortgage. If your lender offers a 6.5 percent rate with no points, then you may also get 6.25 percent with one point. So how do you decide?

It’s simple. Just take the difference in monthly savings gained with the lower rate and divide that into the point. The result equals how many months it will take to “recover” the amount
you paid in points. Let’s look at an example.

A 30-year fixed-rate mortgage of $200,000 at a 6.5 percent interest rate would mean a monthly principal and interest payment of $1,264.14. By paying an additional $2,000 in the
form of a point, your rate would drop to 6.25 percent and the resulting payment would drop to $1,231.43; saving you $32.71 each month. When you divide that $32.71 monthly savings into $2,000 you get 61.14, or about 61 months. Your recovery period is slightly over five years. That’s a little long in my opinion and I’ve never been a big fan of paying points. Instead, I’d encourage you to take that same amount and pay down your principal.

Remember: The quarter percent difference in interest rates when paying a point is an imprecise, general mortgage rule of thumb. Whichever rate you get, be sure to divide the savings into the points paid to see how long it will take to recoup the difference.

2008-06-10T13:00:00.000-07:00

Welcome back our financial contributor David Reed who will discuss the pros and cons to locking in a mortgage rate...

The Best time to Lock in Your Mortgage Rate

“What do you think about rates … should I lock in now or wait to see if they fall further?” Think I’ve been asked that a time or two over the past 18 years? You better believe it. It’s a good question—one that goes through every single buyer’s head at some stage.

A quoted interest rate is no good unless you’ve confirmed, in writing, that your loan is indeed “locked,” or guaranteed for a designated period of time. You need to be proactive with your locked rate as well and don’t assume that your loan officer already locked you in. In fact, your loan officer shouldn’t lock in your rate without your specific instructions. If it was locked in and rates went down you’d be pretty mad, wouldn’t you?

While neither real estate agents nor loan officers are in the business of predicting the future, it’s still possible to make a prudent choice in the face of uncertainty. Would you rather lock in your rate and watch rates fall or not lock in your rate and see rates go up?
If you decided to lock and rates go down, you’ve secured the market rate that you were happy with. But if rates went up and you didn’t lock, you’d be paying for that mistake for the rest of the loan.

There is an even worse possible scenario: After not locking in your rate, rates shoot up and you no longer qualify for the loan. So it’s important to ask yourself: “Which way would I rather be wrong?”

If you are comfortable with the rate you’ve been quoted, talk to your real estate agent about the possible consequences of waiting to lock it in.

Share your thoughts and experiences by posting your opinion here.

2008-06-04T12:17:00.000-07:00

The Price of Waiting

Buyers are waiting to buy expecting prices to drop further and sellers are waiting to sell until the market improves. Both are trying to "time" the market and it can't be done. Everyone is concerned about their "investment". The reality is unless you are buying/selling a property that is not your primary residence, you are not buying/selling an "investment".

Your primary residence is your shelter, a place to make memories, and a great way to establish financial stability. An investment property is purchased with completely different goals and set of standards. The past 6 years have clouded people's perception of investing in real estate. Everyone heard the get rich quick stories of people who bought a house on a Monday and sold it for $20K more on Friday. There were many pseudo investors who made money but there also many who lost money even when times were good. Regardless, those people weren't investing in real estate...they were day trading.

So here we are in a market where inventory is high and interest rates are very good and yet no one is moving. It is ironic that when we were in a seller's market everyone was rushing to buy a house as if there was never going to be another opportunity to buy a home. Now that we are in a buyer's market no one wants to commit for fear something better will list for less. Obviously the price of homes responds to supply and demand but everyone is responding to a fictitious lack of supply (then) and an exaggerated lack of demand (now).

Let me give you two examples of the price of waiting...
I know of a seller who has a very small mortgage on a property he has listed for sale. There have been only 2 showings in 35 days which by National Association of REALTOR standards indicates the property is overpriced. The seller will not reduce his price because he doesn't want to "lose money". This statement is based on what he thinks he could have gotten for his home 3 years ago NOT on factual numbers. From his purchase price in the late 80's to his list price now (minus his small mortgage), he is going to make a substantial amount of money...how is that "losing"? If the house doesn't sell this spring he will stand to lose more if the market drops .05% per month for the next 8-12 months (as predicted) than he will by moderately reducing the price now and getting it sold. I won't even go in to the emotional costs of holding on to this particular home. Inventory continues to sit because there are countless sellers thinking the same way.

Then there are the buyers. I recently worked with a buyer who found her dream home but refused to compromise on price with the seller. She based her offer on predictions of future price decreases and expects the seller to accept now even though her offer is less than current market value. There is a good chance she will lose this home. Let's evaluate the cost of waiting...if the market decreases the .05% stated above on a $530K house the price would reduce to approximately $500K (this is not compounded - so it would be less) at 6% interest there would be a difference in monthly payments of approximately $200. However if interest rates rise from 6% to 7% that same house would cost the seller $350 more per month. There are buyers waiting to buy BUT what are they waiting for??

It is impossible to "time" the market because there are too many variables. Buyers and sellers need to establish clear goals, research the inventory, and determine an educated list price/offer. That doesn't mean that every listing will sell or that every offer is going to result in a purchase but it will help both sides come to a compromise. We will make the fictitious market a reality or we can work to communicate with each other to create a solution that is a win-win for both sides.

Don't wait...be distinct in all that you do.

2008-06-03T06:51:00.000-07:00

Here is a mortgage tip to help sellers stand out in the market with HUGE savings for buyers.

Financing Solutions with David Reed

When $5000 means almost $30,000

In the current market, sellers are often encouraged to make some sort of contribution to help sell a property, such as paying a portion of the buyer’s closing costs. In fact, I’ll wager that this tactic is the most common. “Seller to pay $5,000 of buyer’s closing costs!” the listing reads. But how do you stand out if such seller contributions are common in your market?

One way for your listing to rise above the competition is to translate that same $5,000 into nearly $30,000 by permanently buying down the buyer’s interest rate. Here’s how it works:

On a 30-year fixed-rate mortgage, one discount point (which equals one percent of the loan amount) will typically reduce the interest rate on that mortgage by a quarter of a percent. Two points will reduce the rate by half a percent, and so on.

Say the loan amount is $250,000, one point equals $2,500 and two points equals $5,000. A 6 percent rate means a monthly principal and interest payment of $1,499 while 5.50 percent (that’s after buying it down two points) yields $1,419 payment, or an $80 per month savings. Not much at first glance compared to paying for $5,000 worth of closing costs is it? But, the interest on the life of that loan is very significant.

At 6 percent, the buyer pays $289,640 in interest over the life of the loan. However, a 5.50 percent loan results in interest charges of $260,840; a $29,000 difference! Now, the buyer gets a $29,000 interest credit from the seller instead of $5,000 in closing fees.

Suddenly that same $5,000 stands out amongst the crowd of seller contributions. “Seller to buy down $29,000 in interest payments for the buyer!” $29,000 to the buyer and no additional expense to the seller; talk about a win-win!

Work with the lender and your team leader to make sure that you are marketing the buy down accurately and according to your local board’s marketing standards

Written by David Reed, author of Mortgage 101 and Mortgage Confidential.

2008-05-27T06:27:00.000-07:00

Is It Really That Bad?

Reuters recently reported the stock of unsold homes surged 10.5% to 4.55 million units. Their stats come from the National Association of REALTORS but it is deceiving to look merely at the numbers. The media thrives on a doom and gloom housing situation. Right now they are scaring buyers and sellers into thinking that we are drowning in inventory. I would compare the news reports on housing to a tsunami when the reality is we are in the middle of a hurricane. Both destroy lives but the perception of a hurricane is that they are seasonal and people will survive. After a tsunami entire communities are wiped out and they may never recover. Inventory is high because of sellers, buyers and banks (OK, I am master of the obvious but let me explain...)

Sellers with overpriced "dated" homes on the market 300+ days aren't reducing their prices. They continue to wait in hopes that some uneducated buyer will purchase their home for more than it's worth. (I know a seller who had a cash offer for $20K less then the list price of his property and he didn't accept it EVEN THOUGH his property won't appraise for what they are asking.) Then there are the sellers who are over leveraged because they took equity out of their home to buy "things". They refuse to accept the fact that they either have to remain in their home or sell it in a short-sale. (I had a buyer who made an offer on a home but seller didn't accept because she "needed" list price so she would have $20K to move - a buyer isn't going to overpay for a home because a seller needs to have the money to move on.)

Anyone working with buyers knows that there are people who want to buy. Yes, expectations are higher and they should be BUT buyers need to be realistic too. (I have a client who wants to spend $300K but insists on 3 bedrooms, 1.5 baths, AC, hrdwd floors, city sewer/water, and move-in condition - it sounds reasonable except the two towns in Fairfield County he wants to live in have an average sale price of $430K.) Whenever I have a buyer who can not find what they are looking for on the MLS s/he says to me..."what about foreclosures?" Here is the reality of foreclosures - most (not all) people are foreclosed on because they don't have the money to stay in the home which means they don't have the money for upkeep or to pay utilities and the home is in disrepair. Worse are the properties in the middle of a divorce - people do horrible things to spite ex-spouses. There are opportunities if you don't mind a long search and a lot of sweat equity.

Banks are another challenge. Many (not all) REO (Real Estate Owned/Bank Owned) properties are sitting on the market because banks are as unrealistic as the rest of them. It is shocking when an offer that is 85% of list price isn't accepted on a house that needs tons of work and has been on the market for almost a year. You would think the banks would want to get these properties off their books. It's even worse when you are negotiating a short sale for a client that takes 4 months and two weeks before the closing the bank throws in a new stipulation (like a reduced commission or no deficiency release for the sellers are a couple of examples) and then says, "We'll just repossess the house, we don't care." WHAT???

A lot of negative energy is creating unrealistic expectations and a difficult environment to buy and sell real estate. BUT don't be fooled by the reports. For every overpriced house there is a beauty priced perfectly, for every unrealistic buyer this is one eager to pay market value for a property priced home and for every bank employee that is a challenge there is one that is efficient and helps make the entire process run smooth. This is NOT a tsunami, we will weather the hurricane and hopefully come out smarter consumers.

Stop by next week to read helpful ways to "curb" expectations. Until then, be distinct in all you do.

2008-05-27T06:23:00.000-07:00

I thought I would share this article from KW about Jumbo Mortgages...

Financing Solutions with David Reed
Taming the Jumbo Mortgage

Everyone knows the jumbo loan market has been out of whack for nearly 18 months. “jumbo” loans, those amounting to more than $417,000, took it on the chin when mortgage investors stopped buying subprime and alternative loans. For that reason, jumbo rates can be as much as 1.50 percent higher than conforming rates. Historically, jumbo rates were only about a quarter of a percent higher than a conforming rate, but this new spread has kept many out of the housing market: especially those that I call, “just jumbo.”

So what exactly is “just jumbo?” It’s a loan amount that just exceeds the conforming limit of $417,000 and typically reflects a sales price in the $500,000–$600,000 range. Many local markets offer homes in this price category, but the marked difference in rate from conforming to jumbo is slowing down sales. What is the difference in payment between a conforming loan at 6 percent and a jumbo loan at 7.50 percent? On a $500,000 jumbo loan, mortgage payments jump from $2,997 to $3,496 a month. That’s almost $500 more!

Fortunately, with some changes in strategy, we can put a major dent in that increase in payment by buying a property with two loans — a first mortgage and a second. With the first mortgage at or below the conforming limit, the second mortgage then eliminates the need for private mortgage insurance, or PMI. And still, with only 10 percent down on a $500,000 sale.

For example, let’s say we have a sales price of $500,000 and you put 10 percent down. With a jumbo loan at 7.50 percent, the monthly payment on a 30-year note is $3,146 plus a PMI payment of about $188, for a total of $3,334. Using a 40 percent debt ratio means that you need to make about $9,700 per month to qualify.

Now, let’s make the first mortgage for $400,000 at 6 percent (conforming) with a second mortgage at 7 percent on a $50,000, 30-year note. The mortgage payments would be $2,398 and $332 respectively, for a combined total of $2,730. That’s a savings of over $600 per month, and now the income to qualify is almost $1,500 less at $8,200 per month! Do you think that has an impact on affordabilty? I do.

Here's another idea: sellers can carry back that second note to provide some additional income, providing an even better second rate for the buyer!

Written by David Reed, author of Mortgage 101 and Mortgage Confidential.

2008-05-22T21:06:00.000-07:00

My Two Cents: It's all in the numbers. I am constantly asked about foreclosure properties and short-sale deals by beginner investors. Obviously this is a hot topic in today's market but you have to be careful. Not every foreclosure or short sale is a good deal. You have to know when to walk away. I recently had an investor show me a short sale deal where there was practically no money to be made and yet he said to me, "I can't walk away from this woman." I commend him because his heart was in the right place but unfortunately you can't help everyone.

Remember for every 30 houses you review on paper you will evaluate 10, make offers on 3 and buy one. If you are investing part-time you have to be realistic about setting your own expectations for success. Too many beginner investors get impatient and jump on a purchase because they didn't give themselves the time to see the enough properties. This is how investors get burned.

It is impossible to take away all the risks of investing but you can mitigate risk by constantly looking and by learning how to put together a deal. A deal is made in the negotiations and not in the price so learn your options. Education is the key to options. However unlike many of the gurus on the speaking circuit (who subsequently want you to buy their packages) I believe you should lead with revenue not expenses. I know an investor who has spent $50K on education and has not purchased a single property - analysis paralysis. Plan to attend a seminar and then WAIT! (NOTE: You can read books but attending a seminar will help you network. If you can't afford to attend a seminar buy a quality audio program - for some reason it is easier for most to get investor concepts when they hear someone explain. If you have an area of interst and want recommendations send me an email at Laura@DHomeA.com). Do not spend another penny until you have used what you learned. Close a deal and then reward yourself with another educational program.

There's my two cents for this week. See you next week.

2007-05-15T10:57:00.000-07:00

“Who Needs A Green Thumb!”

When you can be GREEN. The average homeowner in Fairfield County spends $2022 in energy costs per year. In contrast, an energy efficient home costs only $1175 per year. Here are some tips to help you save energy while saving money.

Locate Air Leaks
According to the US Department of Energy, potential savings from draft reduction can increase your energy savings from 5-30%. First you need to find the leaks. Check for air flow in places such as: electrical outlets, switch plates, window frames, baseboards, weather stripping around doors, fireplace dampers, or attic hatches. If you can not find leaks, it may be necessary to conduct a pressurization test in your home. This can easily be done by closing all exterior doors, windows and fireplace flues. Then turn off all combustion appliances such as gas burning furnaces and water heaters. Finally, turn on all exhaust fans (kitchen/baths) or use a large window fan to suck the air of the rooms. This will direct the air flow to cracks and leaks making them easier to find. Repairing the leak is dependent on it’s location but often re-sealing and caulking is all it takes. Where older windows are involved, consider low-cost removable plastic sheets which dramatically reduce drafts during the winter months.

Appliances
Appliances account for about 20% of household energy use. It is important to consider all costs associated with the purchase of large appliances. There is the purchase price and then there is energy cost of the appliance during its lifetime. Look for appliances with the ENERGY STAR label. This government rating program indicates which items offer the highest efficiency and therefore will save you the most money over time. If you are not in a position to replace appliances be sure to check and clean filters on air conditioners and clothes dryers – that includes the vent to the outside. Also, check lighting fixtures. Consider using 65-watt bulbs in place of 100-watt or energy efficient light bulbs. Although initially they cost slightly more than traditional bulbs, they last longer and therefore replaced less often.

Water
About 15% of an average home energy bill goes to heating water. Some of the more common ways to conserve hot water are: take showers instead of baths and do only full loads when washing clothes or dishes. Some lesser know ways to reduce hot-water consumption are: switch from a top load washing machine to a front load one. The top load requires the entire drum be filled with water which uses 15-20 gallons of water per load. A front load machine requires only 5-10 gallons of water which saves on heating and water consumption. Switching to cold water washing in an energy efficient washer could save you as much as $63 per year. Finally turn off hot water heaters and extinguish pilot lights when you go away vacation. A typical hot water heater keeps the water in the tank at a preset temperature, it is unnecessary to keep the water heated while you are away.

To learn about more ways to conserve energy and conduct an at-home energy check-up to to http://hes.lbl.gov.

Sizing Up The Neighborhood
If you’re interested in another town’s activity, just email us at TeamDHA@dhomea.com and we’ll be glad to provide all the recent statistics in your neighborhood. There’s no better way to compare your home than to see the actual results of your neighbors’ sales.

Here’s DHA’s Area Market Survey of April’s local real estate activity.
Easton: 95 Active Listings, 3 Sold–MT 167 days, 4 Pending and 5 Expired–MT 163
Monroe: 143 Active Listings, 7 Sold-MT 114 days, 14 Pending and 9 Expired–MT 193
Fairfield: 534 Active Listings, 18 Sold–MT 138 days, 59 Pending and 25 Expired–MT 138
Shelton: 231 Active Listings, 10 Sold–MT 101 days, 36 Pending and 16 Expired MT 105
Trumbull: 232 Active Listings, 7 Sold-MT 62 days, 33 Pending and 23 Expired–MT 121

What's Hot, What's Not
As the warmer months approach most of us will be spending more time out of the house and even away from our home completely. Whether you're day tripping or taking that week's vacation out of state, here’s how to help protect your home while it's on the market this summer.

What’s Hot
1. Have a trusted neighbor park his car in your driveway and take in your mail and newspapers if you choose not to stop delivery. A home with a car in the driveway is never a preferred target of burglars while on the other hand a home with a full mailbox and papers piling up in the driveway definitely is.

2. Have the lawn mowed at least once a week and hire a neighborhood kid to water your begonias. Letting the lawn go and letting your outdoor potted plants whither during the warmer months are sure indications of you not being around. Besides it’s so much nicer to come home to a trim lawn and healthy flowers.

3. Leave the air conditioner on low, a silent compressor on a hot day is a good indication you are not home. Although you might think it would be worth saving some money by not running it at all while the home is empty, statistics show that this “sign of life” is a great burglar deterrent.

What's Not
1. Don’t leave the house completely quiet or dark, use timers on lights, the television or a radio. Investing in timers is not just a great tool for while you’re away on vacations but is also really helpful to have year round. Coming into a lit house is a lot easier than fumbling your way in the dark to the nearest light switch.

2. Don’t keep all the blinds closed and shades down. You might be tempted to close off the windows but this definitely makes the home appear vacant. It’s best to leave the blinds open and the shades up so lights can be seen going on and off in the home.

3. Don’t hide a spare key, the crooks know where to look. Although you might think you have thought up the most unique hiding place for your spare key, it’s always best to leave it with a neighbor instead.

2007-04-26T05:51:00.000-07:00

Cheating Hearts
This week one of my loyal clients went out with another REALTOR. I was crushed but it happens all the time. I would never make a client work with me if s/he didn't feel I was meeting their needs. After all, it is important for clients to work with a REALTOR they trust. My client has re-pledged his loyalty but if he needed to change, as a professional I would have accepted it. For those of you looking for a good REALTOR, here are some tips for finding and working with a REALTOR.

First Dates - If you are a walk-in, you will likely work with a new agent. It is vital to have a good connection with whomever you are working so # of years in the business are less important than their passion for the work. If you call on a listing, you are likely to be working with the listing agent. This means that s/he would be representing both you and the seller. The agent should inform you of this if the showing turns into genuine interest. (I don't go into detail about Dual Agency with clients on the first viewing because so often the showing does not result in anything further but I am always sure to make clear that I am the listing agent representing the seller.) It is your right to ask for different representation if you do not feel the REALTOR can represent both sides fairly.
Never sign long-term contracts - State law requires all clients sign an Exclusive Right to Represent/Sell before a property is shown/listed. However a good REALTOR will not make a buyer sign a contract for longer than 3 weeks or seller longer than 3 months (NOTE: In this market, homes do not sell in less than 3 months, however you don't want to miss prime market time with a REALTOR not working hard to sell your home.) Also, for buyers don't be ashamed to ask a REALTOR to limit the agreement to one day if you aren't sure about his/her ability to perform. If they are good, they will have no problem but you should expect to sign a longer contract after you have gone out a couple of times.
Read before you sign - Since it is common for real estate agents to sneak a long-term agreement in, be sure to read carefully the dates on your contract. Also for buyers, most REALTORS include a % owed if you find a home on your own. This is common practice and not deceptive as long as the agent makes it clear before you sign. This percentage should never exceed 3%. If you have been looking at houses For Sale By Owner and you have found something that interests you, simply ask the agent to exclude that specific address.
Moving on - Don't be afraid to tell your REALTOR that you no longer want to work with him/her regardless of how long you have been working with them. You are the client and you need to have the utmost confidence in the professional assisting you in your largest sale/purchase. It makes it easier on both parties when your honest. It will prevent the REALTOR from continuing to contact you and it will prevent you from having to avoid his/her phone calls.

There is a misconception that it is easy to be a REALTOR, it is not. However, it's equally as difficult to be a buyer/seller in any market. It is hard to know who to trust. The key is for buyers AND sellers to interview multiple REALTORS. Don't assume that a family member or friend of the family is the best choice. I have heard many horror stories about these types of referrals. Referrals are GREAT (and is DHA's main source for clients) but I tell everyone I meet to interview other REALTORS because if you wouldn't let your friends and family pick your spouse, don't let them pick your REALTOR either. Besides, referral or not, I want to know that I was the best of the bunch NOT the only one you met with.

2007-04-13T12:09:00.000-07:00

Don't Give Your House Away
Selling your home has pretty much been a no-brainer for homeowners and real estate agents alike for the last 10 years. Now with inventory high and interest rates still low we are fully settled in a buyers’ market. Not knowing what matters most right now can cost sellers tens of thousands of dollars.

Here’s how not to give your house away:

Preparation – Historically homes in a buyers’ market that are well prepared – thoroughly cleaned, updated, and repaired – sell for an average of 26% more than the competition. Buyers will most certainly use the condition of the home as the single highest factor in playing down the value of your home. Many sellers underestimate the importance of fully preparing their homes for sale and this alone guarantees giving away several thousands of dollars.

Price - Pricing the home yourself based on what you “feel” or choosing an agent based on the highest suggested listing price can cost you big. Hitting the market at the correct asking price is critical in this market. Emotion, personal attachment, and competition among agents for the listing must be factored out and hard facts and analysis must dictate your asking price. An incorrectly priced home remains on the market an average of 5 months longer and ultimately ends up selling for less than comparable homes. The stigma of “what’s wrong with that house” that develops during long market times is another guarantee of giving away the value in your home.

Promotion – Gone are the good old days of listing your home and then fielding multiple offers over asking price within the first 48 hours. Extensive and aggressive marketing of your home is crucial to preserving its full value in a buyers’ market. With high inventory you need a marketing plan that allows you to capture the interest of buyers in a broad market. Many buyers start their home search without an agent so reaching them successfully means promoting your home in several online sites and publications both within and outside your immediate market area. The more buyers interested in your home, the greater the probability of driving up the offers. The narrower you keep your promotion, the fewer buyers you reach and ultimately the more you give away.

Sizing Up The Neighborhood
Here’s DHA’s Area Market Survey of March’s local real estate activity.
Easton: 90 Active Listings, 3 Sold – MT 66 days, 7 Pending, 6 Expired – MT 112
Monroe: 143 Active Listings, 9 Sold- MT 118 days, 17 Pending, 13 Expired – MT 179
Fairfield: 531Active Listings, 28 Sold – MT 92 days, 88 Pending, 41 Expired – MT 146
Shelton: 232 Active Listings, 19 Sold – MT 78 days, 29 Pending, 27 Expired – MT 137 days
Trumbull: 235 Active Listings, 11 Sold - MT 112 days, 35 Pending, 27 Expired – MT 132

What's Hot, What's Not
The big question remains, how can I update my kitchen and add my personal taste while keeping the room neutral enough for resale? It’s a fine line but it can be done. The tips below will start you on your way to smart spending.

Flooring
Hot - Tile and hardwood remain the “hot” picks for flooring. Tile is the first choice for many people thinking of updating their kitchen. A neutral color tile that helps hide dirt is always a smart choice. To add a little personality, consider varying tile size or adding a subtle colored border. Hardwood floors are the top choice for builders of new construction. However, a big concern for those redoing their kitchen is how to reap the benefits of new hardwood floors when connecting floors may be tired or worn. The answer is to make a clear delineation between the new and old flooring. Try installing the new hardwood at diagonal or use a darker wood so that the wear on older flooring isn’t as apparent.

Not Hot – Don’t be left in the cold by being sold trendy flooring materials. Cork flooring is an alternative getting a lot of attention in home improvement magazines. Unfortunately this cool fad will come and go. Installing any trendy flooring material is a risk since it will date the kitchen when the fad fades. Also, if you can afford it, stay away from linoleum or Pergo. These less expensive alternatives to tile and hardwood are quality materials but are not popular with today’s buyers. It would be penny wise and dollar foolish to skimp on the flooring.

Fixtures/Appliances
Hot – Raise the bar with a new style sink. The sink has become the centerpiece of the kitchen. Use it as a focal point while boosting its functionality. Vary your sink location by placing it in a corner. This is a great way to create additional counter space in a small or odd shaped kitchen. Also, consider changing your sink shape. Deep sinks and farmer’s sinks are popular options for today’s cooks. A double sink is a way to update your sink and double your capacity. If you have the extra space, a double sink is worthwhile addition to any kitchen.

Not Hot – While double sinks are hot, double ovens are not. Everyone thinks they want one but no one really uses them. Ok, maybe there two times a year when you host enough people to warrant a double oven but the rest of the time this large appliance takes up valuable space. Plus they are expensive. Use your money wisely by investing in convection microwave and get more bang for your buck.

Countertops
Hot - Two popular materials heating things up in the kitchen are marble and butcher block. Marble has become the “must have” of remodelers. Although more expensive than granite, this luxurious material can make any kitchen feel opulent. The natural look of butcher block remains classic choice while simultaneously being trendy. This organic material is always in style.

Not Hot – Laminate countertops are a thing of the past. If your pocket book does not allow for more, be sure to choose a faux granite or marble design. May buyers are happily satisfied with the economical alternative. Another fast fad is stainless steel countertops. With the increase purchase of stainless steel appliances countertops of the same material are popping up everywhere. Unless your home is of contemporary style, stainless steel countertops will make the kitchen feel cold.

Updating your kitchen is a huge expense. Stick with classic choices and spend money wisely with forward thinking. Infuse your personality with wall color and window treatments since they are inexpensive to change and therefore can change with your taste.

Our Tricks of the Trade Demystified was so popular we are going to Blog on this topic twice weekly. Stay tuned and send us your questions and comments.

2007-03-02T11:31:00.000-08:00

Tricks of the Trade Demystified
Real estate is not a technical profession; it is a service profession which means not everyone can do it well. Invest 5 minutes in reading this article and regardless of whether you try to sell on your own or you work with a real estate professional you will sell your home for more money and in less time. More importantly you will have a clear understanding of the service you should expect from your REALTOR.

Let’s start out with some statistics…84% of all real estate transactions in 2006 were completed with the assistance of a real estate professional. 12% were done without a REALTOR but only 7% of those transactions were made with an unknown buyer – about 5% of For Sale By Owner sales are done between family members. (4% of transactions were unaccounted for.)

Is Your House Saleable? Location, condition and price are the three characteristics that determine the saleability of your home. You can’t change location. If you don’t have at least 6 showings in the first two weeks, you have to consider improving the condition or reducing your price.

Make Your Home An Open House. 47% of buyers use Open Houses to find their home. You never get a second chance to make a first impression. It sounds cliché but it is true and in the world of real estate the duration of your first impression is 15 seconds. Make it count by properly preparing your home for sale.

Indecent Disclosures. It is required by Connecticut State Law to provide buyer’s with a Property Condition Report or to give them a $300 credit at closing. It is also required to provide a Lead Disclosure Report or to offer for the assessment of such. ALWAYS be honest on these forms. You are legally bound to what they say once you have signed them.

Inspectors Aren’t Just For Buyers Anymore. In this market you want to know as much about your home as possible. Invest in a seller’s inspection – it could save you thousands during negotiations. If you are working with a REALTOR ask if he/she will pay for a portion of it – we do.

Show Me The Money. You want to know how much you will make and the buyer wants to know how much they are going to spend. Meet their needs (and yours) by having your real estate professional create a seller’s estimated closing analysis and a buyer’s cost calculator. It is also helpful to have a buy vs. rent analysis. (Contact us at TeamDHA@DHomeA.com if you are FSBO and want to provide this to potential buyers.)

Out Of The Box Marketing. With a large inventory of homes you need to be thinking out of the box in terms of marketing. Placement on the MLS and traditional newspaper ads won’t sell your home. Don’t let your real estate professional convince you they will. Marketing is expensive (the average CT Post ad costs $85+ and a mailing to 1000 or more prospects costs a minimum of $300) so be imaginative and use your dollars wisely. If you are working with a REALTOR it is important to understand that there is no “big budget”. As independent contractors most marketing expenses are paid for by the agent. Everybody loses if you don’t sell.

Quality NOT Quantity. Although buyers can be more selective about the homes they preview sellers should be equally selective about those who preview their home (especially if you try to sell “For Sale By Owner”). Be sure buyers are pre-qualified to pay your list price. Also learn the difference between a pre-approval and a pre-qualification. (Contact us TeamDHA@DHomeA.com if you want this and a quick reference guide to different mortgage types – both will assist you when you are considering an offer).

The reality is that homes are not “flying off the market” like they were two years ago. Regardless of whether you hire a REALTOR or you go it alone, you need to know what it takes to get a home sold in this market. Please consider us your resource for selling a home. Information is free and only an email away.

Sizing Up The Neighborhood
2006 year end statistics are in and the forecast for 2007 is coming to fruition. While the glass was half empty in 2006, look to the glass to be half full in 2007. With the area averaging nearly 10 homes a day going under deposit in the shortest month of the year, spring market is off to a prosperous start.

Here’s DHA’s Area Market Survey of February’s local real estate activity.
Easton: 90 Active Listings, 2 Sold–MT 51 days, 4 Pending and3 Expired–MT 202
Monroe: 124 Active Listings, 4 Sold-MT 110 days, 12 Pending and11 Expired–MT 147
Fairfield: 477 Active Listings, 9 Sold–MT 69 days, 45 Pending and36 Expired–MT 124
Shelton: 211 Active Listings, 7 Sold–MT 60 days, 15 Pendingand 15 Expired–MT 143
Trumbull: 200 Active Listings, 9 Sold-MT 98 days, 20 Pendingand 14 Expired–MT 128

What's Hot, What's Not
What’s Hot
1. Thanks to the Taxpayer Relief Act many home sellers no longer suffer a taxable gain. Married taxpayers who file jointly now get to keep, tax free, up to $500,000 in profit on the sale of a home used as a principal residence for two of the prior five years. Singles and married taxpayers who file separately can keep up to $250,000 apiece tax-free.
2. Low-income first time homebuyers can benefit from a mortgage tax credit of up to 20 percent of the mortgage interest payments made on a home. This credit is available each year you keep the loan and live in the house purchased with the certificate.
3. If you take out a loan to make substantial home improvements, you can deduct the interest on the loan. There is no dollar limit on this deduction, but the work must be a capital improvement. Capital improvements increase your home’s value, prolong its life, or adapt it to new uses – like adding a fence, driveway, swimming pool, porch or deck, built-in appliances, etc.

What’s Not
1. You can’t paint your family room and deduct the expense if you’re not selling your home, but if you decide to sell your home you’ll be able to reduce your taxable capital gain by the amount of your selling costs. Along with real estate broker’s fees and inspection fees, the IRS recognizes such costs as painting, planting flowers, maintenance, etc. are also selling costs if you complete them within 90 days of your sale and with the intention of making the home more saleable.
2. Moving across town doesn’t qualify for a tax deduction but if you move because you got a new job, you may be able to deduct some of your moving costs if you meet all of the requirements which include moving within one year of starting the new job, the new job is at least 50 miles farther from home and you work full-time at the new job for at least 39 of the 52 weeks following the move. Deductions include travel or transportation costs and expenses for lodging and storing your household goods.
3. If your home equity loan when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, there may be deductibility limits. But if that’s not the case, you can deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.

Please keep in mind that this is a blog…we want to hear from you. Post your burning real estate questions and topic ideas today.

2007-02-02T08:52:00.000-08:00

The Best Time To Sell…Is It Spring Yet?
Technically spring arrives on March 21st but in the world of real estate serious buyers begin prowling the spring market by February. The average buyer will view 15 homes over a period of 6 – 8 weeks. By starting the search in February the buyer will typically make an offer by March or April and schedule to close by May or June. 60% of all moving takes place by summer each year.

How Do You Take Advantage Of This Market?
Get there first. List your home as early into the spring market as possible. Often the most serious buyers are out early in the season hoping to get the best pick. Inventory usually rises again later in this season making for more competition. Secondly, price it to sell. Insist that your Realtor provide a market analysis to substantiate the perfect listing price. Homes that incur multiple price adjustments over a long period of time can make buyers fearful of underlying issues with those homes. Homes priced correctly from the start inevitably sell faster and closer to asking price. Lastly, be prepared. Let your Realtor evaluate which areas of your home need to be addressed before you hit the market. Curb appeal, making small repairs and general freshening up will absolutely make all the difference. It’s no exaggeration that a small investment up front could earn you thousands back in your sale price.

Is This Year Any Different?
This spring will be the first following the end of a 10 year cycle of rising prices. Homeowners serious about selling their homes quickly and for the most money will rely on a Realtor that has done her homework. In the past it was easy to pull comparable homes that recently sold and add another 3 – 4% to the asking price. Now homeowners need their Realtor to follow market conditions closer than ever. What’s happening with interest rates? What’s the absorption rate for this type of home? In addition, the Realtor must stay on top of the competition daily. What just listed? Which homes just reduced their asking prices? What buyer incentives are out there? Ultimately, the Realtor must provide distinction to the client’s home. A home properly prepared for this shifting market will most definitely be the buyer’s first choice. With that accomplished, spring 2007 will prove to be one of the best times to sell your home.

Sizing Up The Neighborhood
While quarterly reports (like the one found in last month’s “Sizing Up The Neighborhood”) provide you a broad picture of the changing market, DHA’s monthly Area Market Survey will give you a snapshot of the previous month’s real estate activity.

Easton: 115 Active Listings, 2 Sold – MT 179 days, 4 Pending and
21 Expired – MT 159
Monroe: 218 Active Listings, 5 Sold- MT 120 days, 8 Pending and
43 Expired – MT 136
Fairfield: 688 Active Listings, 10 Sold – MT 88 days, 48 Pending and
121 Expired – MT 155
Shelton: 328 Active Listings, 10 Sold – MT 93 days, 28 Pending
and 48 Expired – MT 110 days
Trumbull: 245 Active Listings, 5 Sold - MT 59 days, 20 Pending
and 50 Expired – MT 121

Take notice of the difference between Sold Market Time and Expired Market Time – anywhere from 10-67 days. Pricing a home properly is the most important decision you will make. Pay close attention to the Comparative Market Analysis provided by your real estate professional and base your list price on past sales not on the perceived worth of your home. The difference in price could mean the difference between selling your home and having it gather dust on the Multiple Listing Service.

What’s Hot, What's Not
What's Hot
1. Listings with Home Warrantees. Buyers should be looking for listings that offer home warrantees. Considering 68% of homeowners spend an average of $900 each year on major systems and appliance repairs, it’s surprising that only 103 out of 12,790 listings on the Consolidated Multiple Listing Service (covering most of lower Fairfield County) offer a warranty. This service contract, which usually covers the first year of homeownership, will protect you against the cost of unexpected repairs or the replacement of heating, plumbing, and electrical systems as well as major appliances (depending on the coverage). What’s really “hot” is that the warranty should be paid for by the seller OR your real estate agent which gives you peace of mind and saves you $300 or more at closing.
2. Buyer Incentives. “It never hurts to ask” should be the motto for buyers in this adjusting market. Many listings, especially new construction, offer incentives from wine coolers to increased appliance/cabinet allowances. Be sure your real estate agent gets you the best price possible and then go for the incentives. Consider home warranties, furniture, electronics, and/or appliances and make them part of your negotiation. Your agent makes the request and you reap the reward. The worst that could happen is the seller says no. The best case would be a great house at a fair price with a new television or upgraded oven paid for by someone else.
3. Researching Your Realtor. There are 7,887 real estate agents registered on the Consolidated Multiple Listing Service. With inventory on the rise and serious buyers at premium, buyers shouldn’t settle for the “newbie” on desk duty. At the official RE/MAX website you can choose a realtor based on location and view individual profiles. Also consider visiting personal websites like ours at The Distinctive Home Advantage to learn about the agent or team. A “hot” buyer’s agent offers distinctive service AND buyer incentives. Don’t settle for less.

What’s Not
1. Compromising your buying power. The worst way to do that is to start the buying process before you have sold your current home. Of course if you don’t have a home to sell first this is not an issue. But for those who do have to sell before they can buy, it is critical to have that contract in place before you start negotiating your next purchase. Sellers judge offers not just on the offer price, but on the strength of the prospective buyer. A buyer who doesn’t have a property to sell first is a stronger prospect than one who does. On occasion a seller will accept an offer with a Hubbard Clause, which allows the seller to continue to market the home to other buyers, but almost always the seller receives another offer and the original buyer’s offer is cancelled. Be the strongest buyer you can be and get your own home sold first.
2. Limiting your search based on price. Of course it is vital to set a budget and to stick with it, but it’s also prudent to look at homes listed tens of thousands over your maximum. Historically, most homes sell within 95 – 97% of their asking price. In this shifting market though, some sellers might still be overvaluing their homes. That additional $20,000 or more might make a home appear to not be an option. A savvy agent will know which listings might fall into this category and encourage her client to consider looking at these homes. In addition she will be a strong negotiator uncovering the seller’s motivation and presenting comparable evidence of a fair offer on your behalf. Getting the most for your money is what this buyer’s market is all about.
3. Rushing into an offer. Once your agent has found you a home that you want to make an offer on, be sure you take your time in determining what you want to give and what you want to get out of the deal. Work closely with your agent to understand the motivation of the seller and the market value of the home before you determine an offer price. Also, take the time to consider what you’d like included in that purchase price. Often sellers won’t include all appliances or window treatments initially, but if you would prefer to have them included, ask for them. Most importantly, be comfortable with your contingencies including inspections, a mortgage commitment, and the deadlines for them. Be sure you have the opportunity to withdraw your offer should anything unexpected change your mind about purchasing the home before you go to contract. With ample inventory and continuing low interest rates, you can afford to take your time and get exactly what you want.

2006-12-20T07:59:00.000-08:00

Where In The Bubble Are You?

Are you trying to decide whether you should buy or sell? It’s a decent market for both if you put yourself in a position to have the advantage.

For Sellers
A strong economy and relatively low mortgage rates normally lead to an increase in real estate sale but that is not the case as we near the end of 2006. What does this mean to sellers? The market is not cooling because of a lack of buyers the market is cooling because of high prices. This news does not mean you need to “fire sale” your home. It does mean that if you want to sell your house in this market you need to improve the condition of your home or you need to adjust your price. According to the Manager of Regional Economics at Fairfield County’s Consolidated Multiple Listing Service, “The best properties are moved at the higher prices while the rest just sit.” The most serious buyers will look at your home the first two weeks it’s on the market. Although there are one-million more homes on the market now nationally than this time last year, many of them are unprepared for sale and overpriced. Sell your home for the more money in the least amount of time. Pay attention to the details and give yourself the distinctive advantage by having your home properly prepared and priced for this market.

For Buyers
There is no better time to buy than now. Mortgage interest rates remain near a 40-year low while the inventory of homes is on the rise. How does this benefit buyers? Buyers have the benefit of time to search for their new home. Time doesn’t mean you need to look at every house on the market; it means that you have the chance to see a variety of homes that meet your search criteria. From there you can make an educated decision about how much to offer when you find your dream home. If you are in the market to buy a new home don’t wait for prices to further decrease – they might not. Like all markets this one won’t last. Take advantage of the market now, find the home of your dreams and make an educated offer before interest rates rise and inventory falls.

What’s Hot, What’s Not….
This month’s topic… Curb Appeal. First impressions are the only impressions. It sounds simple but statistics show that sellers have approximately 15 seconds to make an impression from the curb. It’s the overlooked details that will cost time (days on market) and money (final sale price). Create interest from the street and you are guaranteed to entice buyers in to see the rest of the house.

What’s Hot…
1. Every home looks better with a new topcoat. Yes, a new topcoat for your driveway is the perfect way to show buyers attention to detail. It is a simple and inexpensive approach to invite buyers in.
2. Bring in the New Year with lights. Updating the lights on the outside of your home is a perfect way to “brighten” curb appeal. A light at the walk or new lights at your door modernize the outside of a home with minimal investment.
3. Green is “in” this year....and every year. Even during the winter months it is important to have healthy landscaping. Although things may not be green, be sure bushes and trees are trimmed away from windows and doorways. If you want a touch of green during the drab winter months add planters with small trees to your doorstep.

What’s Not…
1. Is your mailbox holding on for dear life? Sounds silly, but often the first thing we come across when approaching a property is the mailbox. One that is rusty or damaged can scream “this place needs work!”
2. Do your trash cans have a great view of the street? If they do, then the buyers driving by have a great view of them. Unless it’s trash pick-up day, keep them out of sight. No one gets a warm homey feeling from trash cans.
3. Is your welcome sign saying “Go Away”? No, you don’t really need a sign that says “Welcome” on it, but your front entrance better be saying it for you. Outdated doors with pitted hardware and peeling paint, front porches with damaged steps, rusted handrails, and worn out doormats disappoint and discourage a buyer before he even steps inside.

SIZING UP THE NEIGHBORHOOD
The average sale price of a home in Fairfield County for the 3rd quarter of 2006 rose by 2% over the 2nd quarter. Approximately 1000 fewer homes were on the market though and the average number of days on the market increased from 80 to 85 over the previous quarter. New construction was down approximately 43%.

How did your town do?
Easton: Avg. Price (Q3) $862,600, Price Change (1 year) -6.32%, Homes sold (Q3) 22, % Change in # of Homes Sold (1 year) -21.43%, Avg. Days On Market 123, % of Asking Price to Sold Price 95.9%

Fairfield
06824: Avg. Price (Q3) $971,700, Price Change (1 year) 9.64%, Homes sold (Q3) 106, % Change in # of Homes Sold (1 year) -32.91%, Avg. Days on Market 75, % of Asking Price to Sold Price 96.4%

06825: Avg. Price (Q3) $516,300, Price Change (1 year) -5.87%, Homes sold (Q3) 57, % Change in # of Homes Sold (1 year) -37.36%, Avg. Days on Market 79, % of Asking Price to Sold Price 96.7%

Monroe: Avg. Price (Q3) $560,200, Price Change (1 year) 8.33%, Homes sold (Q3) 48, % Change in # of Homes Sold (1 year) -31.43%, Avg. Days On Market 81, % of Asking Price to Sold Price 97.2%

Shelton: Avg. Price (Q3) $456,700, Price Change (1 year) -.65%, Homes sold (Q3) 110, % Change in # of Homes Sold (1 year) -17.91%, Avg. Days On Market 83, % of Asking Price to Sold Price 96.9%

Trumbull: Avg. Price (Q3) $523,900, Price Change (1 year) -4.14%, Homes sold (Q3) 99, % Change in # of Homes Sold (1 year) -38.13%, Avg. Days On Market 80, % of Asking Price to Sold Price 97.3%

The strong price appreciation over the last 5 years in this area has created lots of equity for homeowners. For example if you bought your home 5 years ago and sold it at the current median price of $661,211, you would have realized an appreciation of $237,646, or a gain of 56.1% from your purchase. Even if prices were to fall 5% to $628,150, then the equity gain would still be $204,586, or an appreciation of 48.3% on your investment.

Check us out next month for Q4 statistics, how 2006 was overall, and what’s ahead in 2007!

2006-09-06T11:17:00.000-07:00

Real estate news this week is filled with sad stories of foreclosures. Of course this isn't "new" news. As interest rates rise many people who chose adjustable rate mortgages are suffering. The real news is the huge increase in foreclosures as a result. One report stated an 18% increase in foreclosures from this time last year. With ARM mortgages representing nearly 24% of all mortgages funded, there is reason for concern. A USA Today article from March, 30, 2005 warned of this exact tragedy..."(ARMs will) one day spell trouble for financially stretched consumers."

As a REALTOR these numbers represent reality. We have been in a false market for more than 5 years. Experts can talk about the real estate bubble popping but the truth is the bubble was based on hot air. A recent story compared the slow of the real estate market to the fall of the stock market a few years ago - amateur investors drove up demand which drove up price. Similar to those stock market days anyone who invested or worked in the field to make a quick buck lost big.

The difference is that there were many homebuyers looking to provide shelter for their family. With rising costs these buyers were convinced that an ARM would allow them to buy more house for less money. If it sounds too good to be true, it probably is. Now those people are having a hard time making ends meet because of rising interest rates.

As an eternal optimist I must end with good news. First, for those people caught with an ARM mortgage: refinance for a fixed rate. Although you may face closing costs, it will be less than the interest you will likely pay over the course of the loan.

Second, it is a great market for investors. You can save people from foreclosure. INVESTOR TIP: Watch your local paper for foreclosure notices and contact people (via mail) to see if they are interested in working with you. Wouldn't it be great to help someone while buying a home at a fair price.

Third, this is wonderful for buyers. Take your time to buy. Create your wish list and look for your dream house (always keeping in mind that unless you build new construction to your exact specifications you will need to compromise.) However, don't take too much time since recent reports predict interest rates will rise above 7% during the next 12 months. BUYER TIP: If you are traveling from out of town or out of state, be sure to ask your REALTOR (if it's not me - I do this automatically) to provide a comparative market analysis for SOLD listings in the neighborhood where you plan to buy. You want to be sure you are paying a fair price for your new home.

Finally, don't let the news scare you, this is good time for sellers too. There is a lot of junk on the market. Therefore it is easy (and inexpensive) to make your house "distinct" among the trash. The three things that determine the salability of your home are location, condition and price. Location is fixed but condition and price are variable. Small improvements can mean the difference between getting asking price within a reasonable amount of time and sitting on the market with multiple price reductions. SELLER TIP: Ask you REALTOR (if it's not me - I do this automatically) to conduct an absorption rate analysis. This will tell you how long it will take the market to absorb all the houses in your price range. There is a buyer for every house at every price - this will help you decide how long you can expect to wait.

I want to hear from you. Ask your question or contact me if you would like more information on The Distinctive Home Advantage approach to buying/selling a home.