I want that house! How many offers has it had?

There are many reasons you might want to find out how many offers a home has had if you are interested in placing a bid, and many reasons why an agent won't tell you. That doesn't mean that you shouldn't ask, or that you won't find out. If you are interested in a home, probably the most relevant question to ask is, "Are there any offers on the home right now?"

Bear in mind that the listing agent has no fiduciary duty to you, or your agent, and doesn't have to tell you if there are currently any offers on the house. In fact, it's the sellers choice. A seller doesn't even have to tell you that another bid came in while you are negotiating your offer. That seller can accept another bid right under your nose and not give you an opportunity to revise your offer, and that is perfectly acceptable. (not to you of course, but there are no laws against it.

Reasons to ask about previous offers:

If the home has been on the market for a short time, and you feel strongly that it's a good deal and would like to make a bid, its a good idea to find out if there have been offers already that were rejected, so you can place your bid accordingly.

If the home has been on the market for a while, and it seems reasonably priced, you might also want to find out if there was any offers on it. Could it be that the sellers are pretty much non-negotiable? hard to deal with? are there problems with the house? or has it been reduced from a higher price to fair market and it just appears that there may be a problem?

If there were offers that fell apart after the building inspection, what was the issues(s) and were  they rectified?

If you can find out the price and/or terms of the offer(s), you will already know what the seller will accept, and it may be less than you were willing to pay.

... and reasons why you may not find out if there were any bids:

Once word gets out about what an accepted offer was, that seller may not get that price again. (see this prior post on keeping quiet about the sales price)

If the home has had a number of offers and is new to the market, you might take either of two ways, and the listing agent has no way of knowing which- 1) you may want to just bow out because you don't want to get in a bidding war, or 2) you may think that the seller is unreasonable and won't negotiate at all. Let's remember that the seller may not want to get in a bidding war, either.

If the home has had a number of offers and has been on the market for a while, the agent may not want to tell you because it may look like the seller is hard to deal with, even if its not the case.

There is some differing opinions on whether or not it should be disclosed that there were building inspection issues that caused a deal to fall apart whether you SHOULD know what they were, and if they were addressed.  Have your agent look into this as much as possible, and delicately extract whatever information they can from the listing agent.

...or, there may not have  been any offers on the house.

It's definitely worth the effort to try and get as much information as you can prior to placing a bid on any property. Always do your best to try and obtain whatever background you can,  and have your agent delve into the property and listing  history. They really should do this without you having to ask. I know that  I always get whatever helpful information that I can for my buyer clients. When you are ready to become one, contact me.  I take pride in my profession and exemplary service.

Tweet

Is an Older Home a Better Value to Buy Than a Newer one?

There really isn't a solid definitive answer to this question. Buying old rather than new or "vice verse" may be simply a matter of preference for some, but there is something to be said about the benefits and drawbacks of both. You should look at each home to see how it suits your needs, and for its characteristics. Generally speaking, older homes may be in more established neighborhoods, offer more ambiance, and will usually have lower property tax rates. If you decide to purchase an older home, however, you shouldn't mind maintaining the home and making some repairs. Newer homes will most likely have newer systems, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs

So, is it wiser for you  to buy an older home than a newer one? The decision is yours..

OLDER HOMES:
Benefits: Lower taxes, charming interior, character, most often in established neighborhoods, mature plantings

Drawbacks: Mechanicals, Plumbing and Electrical may need to be updated. Roofing, windows and siding may need replacement if not newly rehabbed

NEWER HOMES
Benefits: Components are newer, last longer and may need less initial maintenance. More energy efficient. Larger rooms on average. Floor plans are tailored for today's living style. Stricter Building codes  on construction

Drawbacks: Taxes are higher on newer homes . Things still break! The house has not had time to "settle" in its foundation.
Some of the materials may not be of the same quality and still pass Building Codes. May be in a lesser established neighborhood.

Although I cannot speak for other parts of the country, I can speak of southwestern Fairfield County, Connecticut and the roughly 30,000+ homes that I have reasonably estimated to have previewed or shown throughout my career. There seems to be a pattern in the construction quality in certain years/ decades-  and I am not saying that any house built in the more favorable decades is that much better, or saying that any home built n the  other decades is a money pit. or of poor quality. It's a general statement, and each home has to be evaluated on its own merits.

My picks for the most solid construction  going back 100  or so years would be the 1920's through 1959,  1995-2005. and 2008+.

Least favorite years for quality and workmanship: 1900-1910, 1960-1980 and 1985-1990

If you see a home that you like and it's happens to be in the least favorite category of mine, it DOES NOT mean that you shouldn't buy it. Not all homes built in those time frames are going to be poor quality. Likewise, not all homes built in the more favorable years are going to be of the best quality either.  When you work with me as your agent, I will tell you if I have a concern about ANYTHING- my past clients will tell you that they always knew that about my services, too. I only want the best for my clients- and that includes you, whenever you are ready! :)

Tweet

Forbes.com Says That the Worst City to Rent in the Country is in CT!

If the worst city to rent a home in the entire country is right in your backyard, does that mean that you should make every effort to buy instead? ...What about if the worst TWO cities in the country  to rent a home are geographically connected to where you live?

When you get right down to it, the decision to rent vs. buy is a financial one, that comes with weighing in the pro's and con's of  both for your own financial situation and  the  economy. 

Just a few weeks ago, Forbes.com  published an article about the best and worst cities in the country for renters.  Marcus & Millichap, a real estate investment firm based in Encino, California, collaborated with Forbes on this piece, and rated the 44 biggest cities in the U.S. They based their  article on four criteria: First quarter average rent, and how much it changed year-over-year;  vacancy rates,  (higher vacancy rates mean lower rent prices), and the  cost of renting versus buying.

In short, New Haven, CT was the WORST city in the country for renters, with New York City coming in second. The fact that Fairfield County, Connecticut connects those regions should tell you something.  If you look at their findings, you would probably agree that our area, although not in their survey, is limited  for rental opportunities. Add the high inventory of homes for sale coupled with low interest rates, and at this point, it is very reasonable to surmise that it is cheaper to buy rather than rent in our area of  Southwestern Connecticut.

That being said, general geographical statements as to the real estate market may not be true in all cases- it is going to be somewhat different for everyone based upon their particular needs. I have found  an outstanding rent vs. buy  calculator,  courtesy of The New York Times which I would like to share with you.

Whether it's better for you to buy or rent, contact me, and  I would be honored to work with you. I work with Landlords and Tenants, as well as Sellers and Buyers.  You can be assured of the best representation and service- and that's my personal guarantee.

Tweet

Caveat Emptor - Pay attention to details when you are looking at homes!

The Latin term Caveat Emptor literally means "Let the buyer beware". Under the doctrine of caveat emptor, defects rendering the property "unfit for ordinary purposes" would be unrecoverable from the seller, with just one exception- That is, if the seller knowingly and actively concealed latent defects or otherwise made material misrepresentations tantamount  to fraud.

There are a lot of things to look for, both good and bad, overt and hidden, when you are looking at homes. There are some things about the home that you buy that  you may never find out until you actually own it.

Some of the more obvious things to look for:

Do you like the layout?
Is there enough storage space?
Is there enough room for your needs right now, and what you think you might need in the future?
Do you think that the house will look and feel  as appealing to you during different times of the year?

*Does anything need to be repaired or replaced?
*Are the mechanical systems in good order?
*Do the appliances work?*

*Asterisked items may signal a bigger problem, having to due with normal maintenance that really should be a given. If the homeowner hasn't fixed or maintained major components of the house, what else has been neglected?

When I initially show a house, I do a mini-building inspection. No, I am not a building inspector, and I do not profess to have that kind of extensive knowledge, BUT there are a few things that I can do as your agent that will most certainly help you make an informed decision as to how far you want to go with a particular house.

Some of these little tests I perform on homes as I am showing them:

• If there are area rugs, I pick them up to see if the seller is hiding any unsightly cracks or defects in the floor. Sellers may not necessarily be concealing it just to defraud you- they may just not want to look at them on a daily basis. It may sound dumb, but how would you feel if  you spotted it for the first time on the day you did the final walk-through on the house?

• Open and close all of the interior doors to make sure that they work properly. If there are one or two that don't shut, no biggie- but all throughout the house signals a BIG problem. Wouldn't you like to know this right away? -Before you put in an offer, or pay for a building inspection?

• Try and wiggle whatever railings there are- front porch, upstairs, and down to the basement. Again these sellers are aware of the frailty of the railings, but tend to forget about it, and live with it. It's just something that you should know that will need repair.

• Check the bathroom for loose tiles, and water seepage around the toilet, tub and tile. Again, I do not ever take the place  of a building inspector- if I find something of concern, I will let you know and if you like the home enough to place an offer on it, when it comes time for the building inspection, you can tell the inspector to look at that area more closely.

• The roof- since roofs generally last about 20 years and you can only put on two layers of roofing before  it needs to be stripped down to the wood , pay attention to when the house was built-  as of right now, if you are looking at a house that was built from 1985-1990, and it is NOT obvious that there is a new roof on it,  expect a new roof to be an expense in a few years. If the home was built anytime in the 60's-70's, and there is not a new roof on it, know that when you need to replace the roof that you will most likely have to strip down two layers of roofing on the house already, and the cost will be more than usual. This is not a hard and fast rule of thumb, it depends a lot on the location, the amount of sun or shade, and the quality of the roofing materials.  

Those are just a  few of the very many things that I look for when I am showing properties to buyers.

There are a lot of tips that I reserve for my clients ONLY, and when you become one, you'll get that benefit. When you are ready to buy a home, just contact me, and I look forward to hearing from you!

 Tweet

What you should know before choosing a neighborhood to live in

Buying a home is a big investment of time, money and emotions. It can  be a dauntless task without the best guidance possible and assistance available to you. So go ahead, and ask questions of your agent if something is of concern to you. Maybe your question or concern is not  something that most other people would ask. I say ask anyway- you are spending thousands of dollars and you have every right.  A few things to consider are:

Resale statistics- What are the resale statistics for the last 10 years for the house, (if it has been sold receently), the street, the neighborhood, and the town? Compare them and see how that home stacks up.

How recession proof is the neighborhood?Is the neighborhood transient? More sales activity on any given street, and homeowners moving in and moving out in a few years rather than the national average of seven years could be a positive thing, or a negative one. If the homeowners all tend to work at one company, and that company isn't doing well for example, then there may be a lot of layoffs, and home sales at distressed values. That could hurt your resale for years. If the neighborhod is considered transient, it could be  1) that it is a starter neighborhood (no issues) or, 2) It could be a lot of executives choose the location for its proximity to transportation and they get transferred (no issues), but that doesn;t always mean that a transient neighborhood is a safe investment.  Just ask your agent to give you statistics, and be prepared to stay there emotionally and monetarily  if a recession hits.

Public School rankings- Very important even if you don't have any children, or any children in school.   When you decide to sell the home, buyers always ask for the best school districts. If at all possible, look for a house in that district. It may not make a difference to you now, but when you sell, you will get more of a premium for your home because of it.

Where are the sought after streets, and why? Every town or city has those few streets that have that "je ne se quios". Find out which streets they are- and why, if you can. I can think of a few streets in every town that just say "YOU MADE IT", and others are well known for neighborhood activities.  The homes on those streets tend to sell quicker and for more money, so be on alert.

What streets have traditionally had less than average  re-sale value? You know they exist- think about a street right now in the town where you live, and  people grimace when the name of that street comes up. That very good deal on that house in the town that you want to live in could be a very good deal because of that!  Also take note, that some neighborhoods have natural boundary lines, and if you want to live within that neighborhood, that across the street from that boundary line is not considered in that neighborhood. I can think of areas in cities where one side of the street is considered okay, and the other side IS NOT. Check into it!

Neighborhood ambience.  Does the neighborhood have the same feel throughout, or does it change down the street. If so, why? Do certain homes stick out as being absolutely perfect, while others look like they are unkempt? Pay attention to the neighborhood, and that brings me to my next point.

Does the neighborhood have a different feel from day to night, or weekday to weekend? There are neighborhoods that I, personally, wouldn't venture into after 8PM at night. If that's the case, I won't take you there in the day to look at a home. Some neighborhoods change at night, and that change may not be to your standards, so it is important to see for yourself.

Where are the parks, shopping, restaurants, health and town facilities. Well maybe you don't care too much about the parks for yourself, but it only helps resale value if you are close- just not too close. You might wnat to know if the nearest grocer closes at six PM, and doesn't have as much stock as you would like. Walk in clinics, hospitals, and pharmacies are important too. Nowadays, there are usually walk in clinics in most towns that we all hope that you don't need, but you have to think about that. You should also be able to find 24 hour pharmacies in somewhat close proximity. And where are the fire hydrants on your street, how close are they to your home, where is the nearest fire department, what's their response time, and where is the Police department. Lots of research, I know. Better done sooner than later when it's too late.

Crime rate for the neighborhood, as well as for the house itself. Check into the crime rate for the neighborhood. As an agent, I am unable to tell you this, however I can reer you to the Police Department and you can ask yourself. You may want to ask for the history of any crimes reported at the house, as well. If a violent offender lived at the house previously, someone exacting revenge on that person may not know they no longer live there. Might it be a good idea for you to check that out? I think so. You may also want to check the sex offender registry to see if anyone on that list lives on your street or nearby. If you have a question about poltergeists, or psychological impacts on the home, see my previous post on that here.

I am happy to help you  through your buying process, and make it as easy as possible. Just look at some  testimonials from past clients. They say it better than I ever could.

... and when you are ready to buy a home, please contact me :)