Why You Should Consider Buying the Worst House on the Street.

It just sounds funny- but consider how much money you can save on your purchase by  buying a home so discounted from its appearance that even after repairs or minor remodeling, that you come out with additional built-in equity?

Just as there are reasons why you shouldn't buy the best house on the street (without serious consideration), there are plenty of reasons that you should consider buying the worst house on the street.

Those sellers aren't getting many showings. As a matter of fact, homes with less than great curb appeal don't get shown as often even in a sellers market, and that can only be amplified in today's market.

There are a number of buyers that won't even look at a house if it doesn't have curb appeal. And just so you know,  the definition of curb appeal can be quite broad. Most commonly, it is the landscaping, and/or the initial reaction of driving up to the home for the first time and not getting that warm and fuzzy feeling. Maybe there is a an addition that doesn't appear to "fit" the property, or is downright ugly.

I remember one house in Fairfield that was... mmmm... let's say "unattractive", (and that's an understatement). It had all the features that my client wanted, but .. as I said, it was unattractive. I had to almost drag the wife in to look at. It was brick, stone, and three different colors of vinyl siding that highlighted a dormer addition on the second floor.. Yuccch!  But the house was absolutely stunning inside. Once we figured out what it would take financially to change the outside appearance and how inexpensive it was to implement, my clients bought it. They changed the siding to one color, and it transformed the house entirely to a beauty.

So maybe it's even the color of the house, maybe the home just looks kind of plain and unadorned, or maybe it looks a bit run-down.

No matter which of these factors play into a home's less than desirable curb appeal, there's one thing that they should all have in common. The price of the home reflects it (or it should).

There is something that nobody thinks of when they look at these types of homes. Some homeowners are more concerned with the inside than they are the outside. The inside of that home can be absolutely beautiful  and you would never know it if you judged that house from the outside alone. (Just like my clients were judging that house that they ended up buying)  Maybe you have seen a house that looked immaculate on the outside, and was just a wreck inside. Same principle, just reversed.

For example,  we all know people who love to tinker in the garage or basement, and you might be able to eat off the floor in those areas of the house- but the rest of the home? maybe a tad  on the messy side? Everyone has different priorities- just like what is clean to one person would be considered filthy to another, and we all have our individual tastes, too.

Remember, just as you pay premium pricing for pristine condition, you'll get the opportunity for a greater discount with a home that just needs inexpensive  cosmetics to dress it up. My very cute and very petite grandmother had a little saying that used to crack me up- "A little powder... a little paint.... makes you look like what you ain't".   Well, the same goes for real estate.

So think of that home with less than great curb appeal as a very good investment opportunity. How much would it cost to  fix that less than attractive front of the home? Would the cost of the improvement be worth it if you were to buy that home? If the house isn't priced accordingly,  is it possible to negotiate with the seller to a price that would make it worth your while? All things to consider when you are buying your next home. Be open in your search.. and don't count out that less than attractive house just yet.

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Buyers Agency Agreement in Connecticut. Do you have to sign it?

When you are all ready to see houses, and excited about the prospect of seeing those homes, especially if one of them really caught your eye, there's almost nothing worse than having a piece of paper shoved in front of you the moment you meet an agent and being told that you MUST sign before you can see any properties.

It's simply not true. You don't have to sign anything. It's not the law.... (for you)
Now, the real estate agent is bound by law to discuss agency with you at the first substantial meeting. Whether or not you choose to sign an exclusive buyer representation agreement is entirely up to you. You should not feel pressured by any real estate agent to ever sign anything..

Buyers Agency agreements are intended to protect the buyer. Years ago, all agents represented the seller, and owed their fiduciary responsibility to the seller. So even though you were working with an agent who was showing you properties, that agent worked for the seller to get them the highest price. Seems a little quirky, doesn't it?

That's one of the reasons that Agency was changed, and there are all types of representation agreements. You can choose to be exclusively represented by one agency, you can choose (with the appropriate agreement and language) to work with a number of agencies, you can choose to be represented  for specific properties only, you can choose representation for the day, the week, the month, etc., or define your parameters for the agreement in most any way you want. You can also choose NOT to be represented. By the way, there is also an agreement (form)  for that, too.

What I am saying here is that the agreement, and type of agreement is also negotiable. If you are ever pushed into signing ANYTHING, run... don't walk to the next agent.

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Finding a Good Real Estate Agent: Things You Need to Know

Looking for a new home is both exciting and nerve wracking. Inexperienced new home buyers need to know how to locate a house that will suit their needs, and how to avoid costly mistakes. A good real estate agent can be a new home buyer's best friend.

It's important to know what to look for when hiring an agent. Before meeting with prospective agents, check realty web sites and advertisements in the area. Prepare a list of questions to ask, and listen carefully to the answers. A good agent will be willing and able to give specific answers to the your questions.

Information from Web Site

The web site can give a lot of information about a prospective real estate agent. Look for at least five years of experience, and some references or testimonials. A successful agent should have clients who can give a good recommendation. Also check for specific data about the particular real estate market such as median home prices and inventory.

Interview Questions and Answers

-          Describe to the prospective agent the type of property desired and specifics such as school district, proximity to work, and characteristics of the neighborhood that would be of interest. Then have the agent reiterate the objectives in his/her own words. This will reveal whether he/she listens carefully to what you say.

-          Ask about the list-price to sales-price ratio. A good buyer's agent should have a ratio that is under 97 percent, closer to 92 percent if this is a buyer's market.

-          Have the agent detail how she will go about finding an appropriate property. Expect to see 5-7 homes per day that the agent has previewed and can describe to you, or as many homes as you are comfortable seeing in one outing. Make sure the agent represents you exclusively for the type of home that you desire, and not other buyers who may be competing for the same property.

-          Find out whether your real estate agent  has real estate agent errors and omissions insurance. Just as doctors need to carry malpractice insurance, a reputable agent should have this protection.

-          Probe the agent's relationships with other professionals such as title and mortgage companies. How does he decide which companies to recommend? Does his agency receive any compensation for these recommendations? If so, choose a different agent.

-          Ask the agent, "What are the top three things that set you above the competition?" The answer should include integrity, ability to communicate, availability by phone or email, and other points in the buyer's favor.

Documents to Look Over

Before needing to make a decision, the client should be able to see:

• Buyer's Broker Agreement: This is the document that is signed when the buyer's agent is hired. It should state whether the buyer agrees to work exclusively with this agent, the length of time the contract will last, and that no fee is expected unless there is a closed deal. In most instances, the seller pays the buyer’s agency fee. Make sure that this is in your contract. All real estate fees are negotiable. Ask whether the client can cancel the agreement before it expires, should the relationship not be working out. The answer should be yes.
• Agency Disclosures
• Purchase Agreement: This should be a sample document, since no actual purchase agreement can be presented yet
• Buyer Disclosures

Final Question to Ask

What have I not asked about that I need to know? The agent should respond readily with specific information. No new client will ask all appropriate questions.

Armed with good questions and some prior knowledge, a new home buyer should be able to find an agent who will work in his/her best interests. This working relationship is an important key to making the experience of buying a home pleasant and rewarding.

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Trust Your Gut. Spot Red Flags When Negotiating the Sale of Your Home

Your gut instincts are usually right on target. Learn to trust them. Sometimes, we get that gut feeling that something can or will go wrong, and we dismiss them for whatever reason. Maybe it's because  the reason we got those gut feelings is because of something totally unrelated, and we recognize that. Or, maybe the other party did something  to diffuse the initial concern.

Nobody ever wants to tell you, "I told you so", and you should not ever have to feel like saying to yourself, "I should have listened to my gut and I didn't. That's what got me into this predicament"

So let's talk about those gut reactions, and gut feelings when it comes to negotiating. When you can chalk those up to past experiences when there are many of the same factors involved, it is time to listen.

This may seem out of context, but it really isn't, if you think about it.  A few years ago,  I went to a Realtor safety class that was given by a seasoned detective. He gave us a great presentation and went on to say that we (as Realtors) put ourselves at risk  on a daily basis. He said something that resonates with me to this very day, and that not only involves personal safety, something that is smart thinking in day to day life- and I have taken that one step further to include negotiating.

What he said is that is if you have a concern, you learned that (physical and/or) emotional response from a prior event. Listen to your gut. If it says you need to be concerned, then be concerned. Period. And take an appropriate course of action.

Now what does all of this have to do with negotiating? We are not talking about safety issues, we are talking about negotiating. And that, we are...

You probably have not been involved in a large number of home negotiations, but I am assuming your real estate agent has. There are few obvious red flags to concern yourself with.

When the party on other side of the transaction displays some behavior that just doesn't seem right and it's right there from the beginning, don't expect it to get any better throughout the transaction.

If a buyer or seller is nickel and diming you from the very beginning, expect it to last right up through and including the closing.  That doesn't mean that you shouldn't work with that buyer or seller, it just means that you should know what you are in for, and to be ready for it. That may mean holding back some negotiations that are inevitably bound to happen before the closing.

If a buyer or seller agrees to a contingency or modification of the offer, and then reneges, expect that to happen throughout the transaction, if it ever comes to fruition.

On the other hand, when the other party tends to be reasonable, they will most likely be reasonable throughout the transaction. So your gut isn't always telling you that there is something to be concerned about.

Your agent (that would be me) knows how to negotiate and counteract those  seemingly little items that tend to pop up, and that could very well amount to much more than they initially appear. So count on your professional agent to guide you in the right direction and handle the bumps along the way.

 

Mold in Your Connecticut Home. The Basics

MOLD. No one likes being told that there is mold in the home you are trying to sell, or the home you are interested in buying. When someone uses that word in any context with a home purchase or sale, everyone gets nervous, and all of the most offensive images come to mind. Mold can be removed, but you have to get to the source first.

Mold, Moisture and Your Home

Mold Basics - The key to mold control is moisture control. If mold is a problem in your home, you should clean up the mold promptly and fix the water problem.  It is important to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth.

Why is mold growing in my home? - Molds are part of the natural environment.  Outdoors, molds play a part in nature by breaking down dead organic matter, such as fallen leaves and dead trees.  But indoors, mold growth should be avoided.  Molds reproduce by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air.  Mold may begin growing indoors when mold spores land on surfaces that are wet.  There are many types of mold, and none of them will grow without water or moisture.
 
Can mold cause health problems? - Molds are usually not a problem indoors, unless mold spores land on a wet or damp spot and begin growing.  Molds have the potential to cause health problems.  Molds produce allergens (substances that can cause allergic reactions), irritants and, in some cases, potentially toxic substances (mycotoxins).  Inhaling or touching mold or mold spores may cause allergic reactions in sensitive individuals.  Allergic responses include hay fever-type symptoms, such as sneezing, runny nose, red eyes, and skin rash (dermatitis).  Allergic reactions to mold are common.  They can be immediate or delayed.  Molds can also cause asthma attacks in people with asthma who are allergic to mold.  In addition, mold exposure can irritate the eyes, skin, nose, throat and lungs of both mold-allergic and non-allergic people.  Symptoms other than the allergic and irritant types are not commonly reported as a result of inhaling mold.  Research on mold and health effects is ongoing.  This article provides a brief overview; it does not describe all potential health effects related to mold exposure.  For more detailed information, consult a health professional.  You may also wish to consult your state or local health department.

How do I get rid of mold? - It is impossible to get rid of all mold and mold spores indoors.  Some mold spores will be found floating through the air and in house dust. Mold spores will not grow if moisture is not present.  Indoor mold growth can and should be prevented or controlled by controlling moisture indoors. If there is mold growth in your home, you must clean up the mold and fix the water problem. If you clean up the mold but don't fix the water problem, then, most likely, the mold problem will recur.
 
Who should do the cleanup? - This depends on a number of factors.  One consideration is the size of the mold problem.  If the moldy area is less than about 10 square feet (less than roughly a 3-foot by 3-foot patch), in most cases, you can handle the job yourself, following the guidelines below.  

If there has been a lot of water damage, and/or mold growth covers more than 10 square feet, consult with an InterNACHI inspector. If you choose to hire a contractor (or other professional service provider) to do the cleanup, make sure the contractor has experience cleaning up mold.  Check references and ask the contractor to follow the recommendations of the EPA, the guidelines of the American Conference of Governmental Industrial Hygenists (ACGIH), or other guidelines from professional or government organizations.
    
Do not run the HVAC system if you know or suspect that it is contaminated with mold.  This could spread mold throughout the building.
    
If the water and/or mold damage was caused by sewage or other contaminated water, then call in a professional who has experience cleaning and fixing buildings damaged by contaminated water.
    
If you have health concerns, consult a health professional before starting cleanup.

Tips and Techniques - The tips and techniques presented in this section will help you clean up your mold problem.  Professional cleaners or remediators may use methods not covered here.  Please note that mold may cause staining and cosmetic damage.  It may not be possible to clean an item so that its original appearance is restored.   

    Fix plumbing leaks and other water problems as soon as possible. Dry all items completely.
    Scrub mold off hard surfaces with detergent and water, and dry completely.
    Absorbent or porous materials, such as ceiling tiles and carpet, may have to be thrown away if they become moldy. Mold can grow on or fill in the empty spaces and crevices of porous materials, so the mold may be difficult or impossible to remove completely.
    Avoid exposing yourself or others to mold.
    Do not paint or caulk moldy surfaces.
    
Clean up the mold and dry the surfaces before painting. Paint applied over moldy surfaces is likely to peel.  If you are unsure about how to clean an item, or if the item is expensive or of sentimental value, you may wish to consult a specialist. Specialists in furniture repair and restoration, painting and art restoration and conservation, carpet and rug cleaning, water damage, and fire or water restoration are commonly listed in phone books. Be sure to ask for and check references. Look for specialists who are affiliated with professional organizations.

What to Wear When Cleaning Moldy Areas: -  Avoid breathing in mold or mold spores.  In order to limit your exposure to airborne mold, you may want to wear an N-95 respirator, available at many hardware stores and from companies that advertise on the Internet. (They cost about $12 to $25.)  Some N-95 respirators resemble a paper dust mask with a nozzle on the front, and others are made primarily of plastic or rubber and have removable cartridges that trap and prevent most of the mold spores from entering.  In order to be effective, the respirator or mask must fit properly, so carefully follow the instructions supplied with the respirator. Please note that the Occupational Safety and Health Administration (OSHA) requires that respirators fit properly (via fit testing) when used in an occupational setting.

Wear gloves. Long gloves that extend to the middle of the forearm are recommended.  When working with water and a mild detergent, ordinary household rubber gloves may be used.  If you are using a disinfectant, a biocide such as chlorine bleach, or a strong cleaning solution, you should select gloves made from natural rubber, neoprene, nitrile, polyurethane or PVC.  Avoid touching mold or moldy items with your bare hands.
 
Wear goggles.  Goggles that do not have ventilation holes are recommended.  Avoid getting mold or mold spores in your eyes.

How do I know when the remediation or cleanup is finished? - You must have completely fixed the water or moisture problem before the cleanup or remediation can be considered finished, based on the following guidelines:  

    You should have completed the mold removal.  Visible mold and moldy odors should not be present.  Please note that mold may cause staining and cosmetic damage.   
    You should have revisited the site(s) shortly after cleanup, and it should show no signs of water damage or mold growth.  
    People should have been able to occupy or re-occupy the area without health complaints or physical symptoms.  
    Ultimately, this is a judgment call; there is no easy answer. If you have concerns or questions, be sure to ask your InterNACHI inspector during your next scheduled inspection

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV