Is a Hubbard Clause Right For Your Connecticut Home Purchase or Sale?

Current homeowners who wish to buy another home, but need to sell their home first in order to use the equity as a downpayment can wonder if they should sell the home they own first, or find the home that they wish to buy first, and then start the process of selling their home. In the case of the latter, the homeowner who wishes to purchase a new home should consider placing an offer with a "Hubbard Clause" rider.

A "Hubbard Clause" is a contingency in (or addendum/rider to ) a purchase agreement that expressly conditions the buyer's offer upon their ability to sell and close on another home or property. It is almost like a first right of refusal to purchase the property- ALMOST, but not quite. Think of it like "reserving a right to buy a particular property" while trying to sell the one you own.

While most  buyers and sellers think this just another perk for the buyer, think again. By the way, I can include a number of agents who would tell you that this is a benefit for the buyer, as well. This type of agreement actually benefits the seller much more, especially  in a buyers market.

The "Hubbard" portion of the agreement must have the following two items included in the verbiage:

1. Final Hubbard contingency sale date- That is, the deadline for the buyer to secure a purchaser for their home, so they can move forward with the sale on the home that they wish to purchase.

2. A deadline for the buyer to remove the "Hubbard" contingency if another offer comes in during this period.

There is no national standardized  form for this, nor are there generally accepted statewide forms for "Hubbard Clauses"- rather the forms which are used tend to be much more regional or generated through independent franchises.  There are a good number of agents who just do not like to work with Hubbard Clauses at all, which I do not understand, but it is what it is. I think that if an offer comes in a home where I represent the seller, that we should absolutely listen to it. It's kind of like a back-up offer without having the main one. As long as all the conditions and terms of the sale are acceptable and  we can still market the house, it would be foolish not to entertain such an offer. When I represent the buyer, and if that's the only way they feel comfortable moving forward, I believe it's my fiduciary responsibility to help them get the house that they want.

Buyers:

If your home is not already on the market, be prepared to list it THE SAME DAY that you place your offer in on the property that you wish to buy. You do not have to list it if the homeowner does not wish to entertain your offer, but  if they are willing to negotiate with you, it is of extreme importance to be ready...ready.... ready.

I have to go on record, here- this is not the most cost effective way to purchase a home. Sorry, but it's true. If this is what makes you most comfortable, I am all for that, and will do as you wish. Often times, you will end up paying a premium for the right to purchase a home in this manner,  and you may end up selling your home for less money to satisfy the Hubbard Contingency within the time. allotted.

Sellers:

I do not really see a downside to sellers as long as an acceptable Hubbard addendum allows you to continue to market the home as ACTIVE, and not change its status to anything else. (See FAQ's below)   Provisions must be made  for the instance of  another offer coming  in during the period that the Hubbard is in effect. Usually, giving a buyer 2 or 3 business days to remove the Hubbard Clause is sufficient, so if they are comfortable removing the clause, you will sell it without the contingency, or if they cannot remove the Hubbard, that you are free to sell it to another party. There are no guidelines as to price or terms for accepting another offer unless they are written into the addendum itself. You must just concern yourself with the time frame.

Hubbard Clause General FAQ's

• Hubbards may include unique terms or conditions.

• Understand that homes are shown with a signed Hubbard Clause agreement in place.

• And then, some agents will NOT show homes that have a signed Hubbard Clause

• Some buyers choose to include a Hubbard Clause because they would actually qualify for your home purchase without selling their home, and just do not want to carry two mortgages.  

• Hubbard clauses can be extended by agreement from both parties.

• Regionally, we work with binders first and then formal contracts are prepared within two weeks- Sellers may decide NOT to have their attorneys draw contracts until the Hubbard Clause is removed.  

• The buyer can withdraw their offer entirely with no penalty, unless expressly written in the contract.

• This agreement seems to be more binding  performance wise to the seller than it is to the buyer.

• And in case you were wondering, the name has nothing to do with Old Mother Hubbard, (despite the shoe)

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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How to Stage Your Connecticut Home For Sale in the Winter

While we are lucky enough to enjoy the changes of the four different seasons in southwestern Connecticut, the Winter brings in colder temperatures, and much less daylight to work with, besides the wintry conditions that will inevitably occur. The unique set of challenges that occur during this time need to be addressed in order to properly stage your home to show at its best. Don't forget the basics of staging, just add these seasonal suggestions to show your home at its best.

... and remember,  buyers do appreciate the effort that you take to make sure your home is in show-ready condition, and you may very well end up getting more money for yoru home because of that little extra effort.

STAGE THE OUTSIDE FIRST:

Curb Appeal Brush Up

Weather permitting, and preferably before the first snow, clear out any excess fallen leaves from the yard, as well as the gutters. If there are any dead plants, remove them now. If there are tools that are outside, bring themin the shed or garage. Remove any garden hoses and turn the water off for the spigot, if it's not already off.

Add to your Curb Appeal

Who says you can't put flowers out of some kind?  Colorful Mums are great in the fall through early December, and small seasonal faux trees in pots look great on your front porch, either with or without lights. A wreath of almost an type on your front door is also quite welcoming. Whatever plant or wreath you choose, please just make sure they are seasonally appropriate.

Exterior Lighting

Are the lights at your front door bright enough? Maybe it's time to change them,  add  more fixtures, or at least change the wattage on the bulb.

The Rear and Side Yard Views

You may not have thought about during the winter, but just go ahead adn go to the rear of your yard and look at your home from the back.  If you have a rear deck or porch, put a pot of seasonal plants there, too. At some point during the winter, it will be unforgiving cold. Consider a well made alternative. It is all the seemingly little things that add up and mean a lot.  

Patios, Porches and Decks

Make sure your deck and/or patio is free and clear of any debris. You may want to check for any loose planking, screws or nails, and fix wherever appropriate. Clean your deck off completely, and that includes storing the furniture in the garage, shed or basement. When the snow comes, the buyer should be able to walk on a totally clear deck, where the snow has all been removed. Helpful Hint: It is much easier to sweep  or shovel off the snow when the deck is completely clear.

Don't Forget to Check Your Side Yard.

Just make sure  that it's neat and tidy. If you store your trash cans outdoors on the side of your home,  make sure they are as clean as possible. (No scuffs, scrapes or old dirt on the outside)

Clear Your Driveway, Front Walk, and Front Porch of Snow and Ice.

This is the single most important item on the winter staging agenda. If buyers cannot reach your home due to an snow covered driveway, snow covered walkway and/or porch, they won't come in. Ice is even more treacherous. There are plenty of products on the market that will just about do all the work for you to get that ice removed.  If you are away frequently, hire someone to handle ice and snow removal in your absence.

Windows

Get the windows washed if you haven't done so recently. Besides the fact that the sun is lower in the winter, and shows every piece of dirt on every piece of glass, the added unobstructed sunlight  will add very nicely to your home's appeal.

NOW, STAGE THE INSIDE:

Warmth

Think warm and cozy. If the weather outside is frightful, make your home's temperature delightful. (Sorry, just couldn't resist that one) Truly, a warm home is much more comfortable to look at than a cold one. If the buyers aren't comfortable, they will not stay long enough to view your home without  just hurrying up to get back into their car where it actually feels warmer.

Lighting

Take every advantage that you can of the diminished natural light that you get. Clean yuor blinds and curtains and open them as wide as possible. Clean the lamps, and bulbs (just make sure that the bulbs are cool to the touch before you do so). Replace bulbs with the highest wattage allowed for the fixture to add as much light. Put timers on selected lights to be able to have tour home in "light-ready show condition"  when you are not home.

Some extras to think about

Go ahead, set the dinner table. Put out some chocolates, or have a plate of cookies out.
Think about aromas- Cinnamon rolls, freshly baked bread, apple pie, chocolate chip cookies, vanilla or cinnamon- just don't overdo it.
If you have summer or fall photos of the outside, put them out for your buyers to see.

A few more relevant articles on staging:

Proper Staging and Guidelines for Home Showings

Staging the Outside of Your Home

How Much Does it Cost to Stage Your Home

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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The Eight Great Reasons to Sell Your CT Home During the Holiday Season

If you have been wanting to sell your home, but  felt that the holiday season is just the wrong time to begin the process, think again.

You may already know, or have heard that timing is everything, and it truly is. The Eight Great reasons to  put your home on the market amidst the holiday hoopla are:

1.  Did you know than over TEN percent of annual sales occur during the holiday season?
 
2. There is much less inventory for buyers to choose from, and that means less competition for you, and maybe even a higher price.

3. The buyers that are out and looking are quite serious and need or want to buy, otherwise they would probably be at the mall shopping for gifts.
 
4. If you decorate your home for the holidays, it will show beautifully. Everybody loves decorations. If you don't normally decorate, that's fine, too.

5. Very few homes will have added curb appeal due to fall and winter conditions. No lawn is beautifully green and no trees are lush. It's a level playing field as far as that's concerned. There is next to no maintenance of the yard as well, making it that much easier, and at some point, snow will cover it anyway.

6. The aromas from pies, cookies and the like create quite a pleasant atmosphere  for buyers looking at your home.

7. If there are times when showing your home is inconvenient, you can always defer the showing to another time. (just as you can throughout the year)

8. Have you thought about additional exposure from your neighbors holiday get togethers? Their friends and family may just be chomping at the bit to live on your street, and lo and behold- A house is for sale there- YOURS, and it could be the reason it sells. 

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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Why Your Home is Worth More than the One Down the Street.

Your home can be the exact same style and square footage as the one down the street, even be on the same sized lot, and still be worth more money than the other home.

Now that you actually see that in writing, and it's not just a thought in your head, it doesn't sound right, does it?

Suppose it's YOUR home that is the one down the street that's exactly the same in every way as the other house, and the Realtor says that  YOUR house is worth less? .... that doesn't sound right, either.

Your own emotional attachment to your home doesn't make it worth any more money. If an exact replica of your home was built right next door to you, your home would still be worth more "emotionally" to you. The house next door is somebody else's, and even though it's the same layout,  it just isn't your home, period.  One thing for certain is that your home is worth more TO YOU.

Sentimental attachments are not worth anything to the buyer, though. They have not created an emotional bond by looking at your home for twenty minutes, and just because your home is special to you doesn't mean that it's worth more in the marketplace to any buyer. That's a hard truth, and unfortunately, that's a fact.

How can an agent say your  house is worth LESS than the same house down the street? Why wouldn't it at least be the same?

There are a few reasons that this might actually be the case. One, and it's something that you've heard before-  is the location. If your home is on a corner lot, it WILL be worth less than the house down the street that isn't, and the reason has to do with privacy. If your home is on a main road, the exact same house that's next door to you will be worth more, if it's on a side street. By the way, the towns tax assessor rates your home in accordance with these principles as well.

If neither of those instances fit for your circumstance,, there is probably something else within that house that makes it worth more. It may be maintained better, may be updated in a more marketable way, or it  just shows better than your house does.

If the market is not increasing in value, your home should not be listed for more money than that house sold for, and for some, that's hard to swallow. It all comes down to the emotional attachment and sentimental value of your home TO YOU, and remembering that todays buyers are not willing to pay extra for it.

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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Could Your Vacant Home Be Disadvantaged in the Connecticut Real Estate Market?

Sometimes, selling a vacant home is the best choice, but it all depends on individual circumstances.  While most sellers live in their home while it is on the market,  some homeowners have the luxury of entertaining  a few different options when they sell.

When the seller vacates prior to marketing the home for sale, or while the property is on the market but not sold due to a relocation, they can choose to leave the home fully furnished, partially furnished, or vacant. Depending on the house and property, one may be a better option for some homeowners  than another.  

As a general rule, you should try and avoid selling an absentee or vacant home if at all possible, but there are some exceptions. 

Why You Should Reside in Your Home While it is On The Market, Even if you Have the Option Not To.

*Overall Home Security
*MOST homes "show" better furnished
*Buyers can envision themselves living at your home more easily.
*Minor cosmetic imperfections or flaws are not easily noticed
*Maintenance and Upkeep
*The buyers will have an example as to how to furnish a difficult room.

Why a Vacant Home Can Put Marketing Efforts  at a Disadvantage.

*Invitatation to potential break-ins
*Perceived desperation invites lower offers from buyers
*Tendency for some homesellers to forget to maintain the outside of home
*If you turn the electricity off, your home can only be shown during daylight hours
*If you set the thermostat to less than 65 degrees in the winter, it can become uncomfortable for buyers to even view your home for any length of time.
*If you choose to winterize your home instead,  it will be VERY cold in the winter, and not inviting to buyers.

The Middle Ground - Leaving Some Items of Furniture Rather Than a Whole Houseful.

If you must take most of your furniture with you, try and leave a few choice pieces behind, or if you have the means, rent some furniture short-term with expert guidance from your Realtor, or a professional stager.  If you are on a tight budget, focus on the living room, kitchen and just one bedroom. Additionally, you can purchase pre-owned furniture very cheaply, and it's very easy to find in the local paper or a few local online sources. Going this route can cost much less than renting individual pieces for a few months. Just something to consider.

When is Selling a Vacant Home Preferable to Selling a Furnished Home?

When a home's furnishings are far from neutral, are in very poor condition, or tattered and dirty, even though it's just furniture, it will detract from the home's marketability. Under these circumstances, and almost exclusively under these circumstances would I ever suggest that selling the home vacant would be a better idea.

If you are experiencing a market or particular condition in your marketplace where there is an influx of buyers who need to purchase and close quickly, a vacant home will give you a distinct advantage.

A few relevant articles on staging:

Proper Staging and Guidelines for Home Showings

Staging the Outside of Your Home

How Much Does it Cost to Stage Your Home

If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

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