Our own Shelton CT- Bloomberg Businessweek's "Best Affordable Suburb"!

Congratulations to the city of Shelton Connecticut! Once a year Bloomberg  Businessweek rates hundreds of towns and communities on a "livability index",  which include community population, median household income, housing costs, diversity, open space, proximity to a major city, personal  and property crime rates, education test scores, job growth, unemployment rate, and average commuter time. I should mention that not only did Shelton come in number 1 in the state of Connecticut for its class in 2010, but also got this distinctive honor in 2009 as well. If you are unfamiliar with Shelton, let me enlighten you with some information about the city:

Shelton, Connecticut
Incorporated in 1789
31 Square Miles
Elevation 130 feet
14,500 Households
79% owner occupied
19.9% of housing stock built prior to 1950
38,800 Residents

The City of Shelton is located along the Housatonic River at the northern tip of Fairfield County. Shelton's rich and diversified history begins with the town becoming one of Connecticut's early industrial cities. Most of this growth came about upon the completion of the Housatonic Dam in 1870. As one of Connecticut's fastest growing cities today, Shelton exhibits a pride in its past and great promise for the future. This is a rare city that boasts the lowest property tax in the general region. Maybe part of the reason for these low taxes is industry and business. There are a few stretches of road with many office buildings chock full of companies who pay for a good part of the town's budget.

But don't be fooled---this really is farm country, too. You can very easily pass by numerous working farms scattered throughout the Huntington or White Hills sections without even trying to find them. A personal favorite of mine is Jones' farm where you can pick your own strawberries. There is lots of recreation available here, too. Being on the Housatonic River comes with many benefits, including Indian Well State Park, just a mile or so above the downtown section, which offers swimming, boating, fishing and picnicking. The Trap falls reservoir is a panorama of beauty and so are many of the neighborhoods. This is not a traditional city, as you may know it, so come explore!

There is lots of recreation available here, too. Being on the Housatonic River comes with many benefits, including Indian Well State Park,  just a mile or so above the downtown section, which offers swimming, boating, fishing and picnicking. The Trap falls reservoir is a panorama of beauty and so are many of the neighborhoods. This is not a traditional city, as you may know it, so come explore!

When you're ready to see the beautiful City of Shelton in person, just e-mail us or give us a call.

For future reference, you can reference the informatoon this page  on our left hand side bar, under "More Area Towns", "The Valley" and Shelton page the direct link is www.thectrealtyblog.com/city-of-shelton

FORECAST: Are rising fuel costs hurting the Connecticut housing market?

The short answer is yes, and no- largely depending on your price bracket. There are more than a few issues with rising fuel costs. The cost of gas  to get to work, and the costs to heat your home (that going to work pays for). Luckily, the heating season is pretty much over until late  September, but that doesn't diminish the fact that the cost to fill up even a 250 gallon oil tank for your home is now about a whopping $1000 when it was 30% lower just a few months ago.  

We all feel the pain at the gas station. It seems like the gasoline  dispenses even slower than it used to just to remind us how much we are paying! Most cars come equipped with a 16 gallon tank, and you can expect to pay anywhere from $65 for regular gas to $80.00 for premium just to fill your tank.  Since the start of 2011, the average price for gasoline is higher by 54 cents per gallon. Now, assuming an average of 22 miles per gallon on a passenger car, that’s an increase of 2.5 cents of gasoline per mile driven in the last 90 days alone. It’s a cost that adds up quickly, and can affect a household budget.  Plan for higher pump prices moving forward, too. Historically, gas prices surge between April and June.To put it in perspective,  just last year at this time,  gasoline was $1.00 cheaper per gallon!

That all affects the economy, and when the economy is affected, home prices are bound to follow suit. Over the past few months, buyers have become  increasingly aware of escalating fuel costs, and that affects the local housing market in a few ways.

First, the lower price ranges here will be more affected negatively than the medium to high price ranges, which may see little or no difference in seasonal real estate sales activity, if at all. The reason why is that
the rising fuel costs would only make an unnoticeable dent in the middle and upper price bracket.

If the prices continue to escalate  at a higher rate than normal during the seasonal fuel price surge, and/or last longer than it has historically, THEN the upper price ranges will feel the pinch in real estate sales, and that is due to to less buyers entering the market in the lower ranges, which will impede the mid-priced housing market, which in turn hinders the higher ranges. That would take some time to occur,
and coninued rising fuel costs would play a major factor.

The lower priced inventory in each town suffers immediately, but not overwhelmingly so-unless fuel prices skyrocket quickly. The reason for the sluggish starter homemarket  is that the first time buyer pool is concerned about affordability. If the first time buyers don't purchase those starter homes, those homeowners in turn  can't move in to the mid range homes, and the mid range homes would not be moving to the higher priced homes. A note- the cost of gasoline  plays a major role in where the buyers migrate to, since "closest to work" will seem to make the best sense.

ADVICE: If you are looking to make a move sometime soon, and you have a starter home, now is the time. If you just made it into the mid-range in your town or city, now is also good.  The upper ranges are currently unaffected and are still good and should be for at least the remainder of the summer. Call me, or send me an email and we'll review your particular situation and see exactly what the best plan of action is for you.

What exactly is APR, and how does it affect you?

APR is the acronym for Annual Percentage Rate, which will be different,
and higher, than the interest rate that you were initially quoted for a loan. APR is essentially the annualized cost of credit, and takes into account the  upfront costs such  as points, closing costs, and prepaid interest. Once you lump those additional  costs together and deduct that from the amount you are borrowing, the interest  rate is recalculated with your same monthly payment less those additional costs, thereby increasing the actual interest rate you are paying.

Let's say for the sake of argument that you were quoted an interest rate of 5% for a $500,000 loan that is to be amortized over a 30 year period.

Your monthly principal and interest payments would be approximately $2,684.11 You would actually pay back almost the full loan mount over the life of the loan.  (the total is $966,278.27 for those inquiring minds) If you paid two points to  obtain the loan and an application fee of $400, plus pre-paid interest in the amount of $1500, then technically you have paid $11,900 for the opportunity to do business with the bank. If that is the case, the monthly payment is actually calculated on the $500,000 less the $11,900 that you have already paid. Your principal balance  remains unchanged, and your payment also remains unchanged, so the interest rate is then calculated on $488,100. If you are paying $2,684.11 on a loan amount of $488,100,  then the interest rate under those circumstances works out to be 5.014%

he Truth-in-Lending Act requires that all creditors, including banks  and other financial institutions  provide a borrower with a loan's total finance  charges and annual percentage rate. These two pieces of information will give you the information and knowledge you'll need to compare the  offerings of various lenders. Remember, interest rates are only  comparable when they've been calculated in the same manner.

Selling your home FSBO- Is there really a risk?

You bet there is! For both the seller and the buyer. Selling a home without an agent is a lot more challenging than most  owners think.  A very valuable role that your agent plays in your transaction is negotiating issues on your behalf without letting emotions get in the way.  Most sellers are just as emotional as the buyer is about their sale. That's not to say that buying a FSBO home is easy. Buying a FSBO home is also a complex transaction, involving many events and services  that needs to be coordinated, and involves an element of risk. Put the two unrepresented parties together and it's a recipe for disaster.

Before a seller puts their home up for sale, the first thing that needs to be done is to make sure through the town clerks office that there are no liens on the property that would preclude them from selling the home, or at minimum, affect their bottom line. The seller must then obtain all of the state required documentation and disclosures and fill them out truthfully and properly, as these disclosures must be given to the buyer.

Misrepresenting your home's size, condition or amenities even by accident can result in a lawsuit, and most always ends up as a lost sale. Any marketing materials must be clear and  accurate. Unfortunately, we live in a litigious society where people sue for just about anything they can think of. Sorry, but true. There was an local seller  who got sued years ago because they mis-stated the square footage on their  home. The buyer thought he was purchasing a  2500 square foot home, and it turned out to be 2100 and some odd square feet, as found out by the appraiser. The buyer then proceeded to calculate square footage cost based upon the size stated on the listing(and assumed to be accurate by the buyer), deducted the cost of the overage and revised his offer.  My unresolved question in this is- Why didn't the buyer's agent tell that buyer?

The seller didn't want to budge from the original price, the buyer wanted that house and threatened a much larger lawsuit if the seller didn't follow through with the sale. It did close, however that seller ended up selling his home for a much less than fair price.  I would have hated to sit at that closing table. Ouch!

Something to think about- Real estate agents have to pass a test  in order to become licensed. The state thinks it is important enough that the State of Connecticut Department of Consumer Protection oversees all licensees, and hold them to strict guidelines, besides having mandatory education every two years on new laws.  When you look for a Realtor, you look for an agent that is experienced, right? You want someone who knows all the ins and outs of a transaction, and can help through the rough spots.  If that is the case, when you sell your home by yourself, you are actually hiring the most inexperienced person to represent you. Even if you bought and sold ten houses before,  the laws have changed and continue to do so. What was acceptable even five years ago is not appropriate  now.

And what about that interested  buyer that pulls up to your home in the nice new Mercedes, gets out of the car and is dressed very well? They look qualified, but are they? How much are those payments for that luxury automobile? Do they fit within the buyers income bracket, whereas the payment will not lesen their ability to get a mortgage? That buyer may very well come to you with a pre-qualification letter, but as Realtors- we know that a pre-approval letter is the one that counts. Most anyone can get a pre-qualification letter- generally, no assets are even checked before those letters are issued. Not worth the paper they're written on, in my opinion.

Some buyers look ONLY for FSBO's, thinking that they can take advantage of an uneducated seller.  The offer that you receive on your home has to have all of the necessary elements included or it is not a valid offer. All contingencies must be spelled out and have due dates- that even includes inspections.

Of course, you will need an attorney, to perform the closing, just as you would with an agent. However, any legal issues over and above a standard closing will be extra. You can end up paying an attorney more than you would have paid a Realtor to represent your interests, before anything ever escalated to the point where you have to call an attorney in.  

Call me, I don't bite and I am not hard sell or high- pressure. There is no cost for me to come over and give you an honest evaluation. I look at it this way- If you are truly not interested in hiring me, or any agent, you may know someone else who is someday and that you would think of me and refer my services.All the best to you- when you are ready for a Realtor, contact me. I'm here for you.

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