From Town To Shore

Real estate trends, local news & much more….

January 6, 2013
by Toni Mickeiwicz
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Happy New Year!

The holidays are over; the New Year has begun. Now is the time to look ahead and start on those New Years resolutions. For some of us that means getting back to our weight loss meetings, joining a gym, quit smoking, and the list goes on. What is on your list this year?
Consider this:  the elections are over, the fiscal cliff is thwarted and mortgage rates are still at an all time low. This could be the perfect time to finally make a move. Whether you want to buy your first home, move from a condo to a single-family house, relocate from the city to the suburbs, I predict 2013 is going to be a super year for buying and selling real estate.
Why wait, let’s get started now! As your buying agent I want to hear about your dream home: what it will look like, style, size, location, etc. As your selling agent I want to hear what made you fall in love with the house you are in when you bought it so I can develop a marketing strategy to bring the right buyer who will fall in love with it all over again. But, whether you are buying or selling, there are some things that you should be doing now to get ready for this next big move.
Sellers: Focus on Price and Product
As your Realtor I will help you review current market conditions to determine an appropriate price range for your house. I will also help you understand that when you decide to sell, you need to view this as a business transaction and separate your personal attachment to your home. This may be hard, so I suggest in the quiet month of January you start by adjusting the way you think about your home. This house is now a product to be sold, so put your eyes on it as a potential buyer.  What do you see?
• Clutter? Why not start packing? You want to move and there are probably many things that you don’t use but haven’t had the time or motivation to toss, donate or store them. Now your motivation is to present the “product” you are selling in the best possible light. Buyers don’t want to see your things in their potential new home. They want to envision where their couch can be placed and see themselves in the space.
• Distressed or worn out features? Look for things need to be fixed. You know, the loose knob on the laundry room door, the dirt from the dog on the corner in the kitchen, the doorbell that doesn’t ring. These are all easy fixes that could make a big difference in first impressions.
Buyers: It’s Time to Get Your “House” In Order, Too!
In this market the biggest obstacle for buyers is securing a mortgage. Do you have the “means” to buy a house? Interest rates may be very low but do you qualify? Getting pre-approved for a mortgage (at a rate you want) involves three things: credit, income and deposit. This is what a mortgage broker will ask for, so be prepared.
• Credit: If you haven’t checked your credit score within the past six months, do it now. Things change rapidly and recent events may affect your score. For instance, you bought a new car, you opened up a new credit card over the holidays, and you were late with one charge card payment. These will change your credit scores for each of the three credit agencies. Go to Annualcreditreport.com to get your free credit reports from all three reporting bureaus. It is important to do this sooner rather then later so if there are any glitches with your scores you have time to do something about them.
• Income: Your mortgage broker will also ask about your work history and income. How long have you been at your job? Are you self-employed? If so do you have two years of verifiable income to support a loan? Come with documentation to get the conversation started. That means bank statements, tax returns, and more.
• Down payment: Do you have any savings? Are you going to be getting a “gift” of money to help you with that down payment?  If so there is a lot more involved than transferring money. You have to document where that money came from and there may be limits on how much you can receive as a gift. These are things that a mortgage broker can help you understand and navigate. It is important to start these conversations with a mortgage broker now, not when you are writing an offer and are asking for a pre-approval letter.
Buyers and Sellers: Get out every Sunday and Visit Some Open Houses!
• Sellers, start to look at your competition. Check out the houses in your neighborhood and town to see what potential buyers are seeing and how they stack up to your house. Did they de-clutter? Do you see the difference! Also, have you hired an agent? What a great way to interview a few!
• Buyers, you can interview agents as well at open houses. And, why not start to educate yourself about available homes in the town that you are considering moving to? The Internet is a great starting tool, but nothing beats walking into a house and getting the feel for the space and flow. Pictures can speak a thousand words, but reality is better then the novel.

Ok, let’s get started! Get out there and meet your 2013 Real Estate goals!

Pumpkins and Turkeys and Lights, Oh My!

October 17, 2012 by Toni Mickeiwicz | 1 Comment

If you are a seller with your house currently on the market the big question is …..Do I keep my house on the market through the holidays? The answer is……………..Absolutely! Why wouldn’t you? Sure, there is less time, added expenses, more social gatherings, responsibilities, guests, cooking, eating……oh and let’s not forget the snow in the North East! Yikes! These are just a few reasons sellers want to take a break from actively showing their property. Some think if they haven’t sold their house by the holidays then they should hold off until spring.  After all, the spring market is understood to be the busiest time for Real Estate. Maybe you could even re-list at a higher price! Well, if you are not in a hurry to sell, that is certainly a possibility. Of course, there are no guarantees as to what the market will be like in the spring.  So, if you have to relocate, or you are interested in making an offer on a house, then waiting does not make a lot of sense.

You have already decided to sell your house. Why stop now?  Halloween, Thanksgiving, Christmas, Chanukah, New Year’s, happen at the same time every year. If you are serious about selling, then you have to fully commit to the process. That means getting the full exposure your house deserves to be competitive. While a market slowdown is expected for a few months, there are still plenty of people who need to move and buy a home during this period. What that means for you:

  • Less competition. Many sellers will take their house off the market for the season, while others are waiting for spring to list (when there will be a lot of competition!)
  • More serious buyers. Anyone coming to look at your house in the winter is a serious buyer who wants or needs to find a new home.
  • Much needed bonuses. Many buyers wait for their year-end bonus to make that big move and confidently move forward on the home of their dreams.
  • Relocations. Many big companies relocate their employees during the first part of the year making it necessary for them to move and not wait until spring.

 

The bottom line: If you are motivated to sell your house and move on with your life, take advantage of these festive times to continue to present your house in the best possible way. Whether it is pumpkins and Mums in October, apple pies in the oven for November or lights in December, the addition of holiday cheer can be used to your advantage. So enjoy the holidays AND sell your house!

September 21, 2012
by Toni Mickeiwicz
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Do you need to sell your home before you can buy?

Toni's Real Estate InsightsConsider a Hubbard Clause.

Now is a great time to buy Real Estate, mortgage rates are still very low and there is a lot of inventory ripe for Fall picking!

Most people have something to sell before they can buy, and during the hay days of 2004-2007, that would have been a real problem.  Very often great houses would have multiple offers and the offer with the fewest contingencies would have an advantage. In today’s market, while there are still multiple bids on some houses, the reality is that many sellers are willing to consider offers that they would not have considered previously, such as an offer with a Hubbard Clause, which I think can be a win-win for both parties.

A Hubbard Clause is simply an extension of your mortgage contingency. It states that to purchase the house you are making an offer on you have to sell your house first. That said, there are time frames and parameters set up within the Hubbard Clause to give both parties the opportunity to get the job done without penalty. In other words, you aren’t going to add a Hubbard Clause if your house isn’t on the market. This is not a long term agreement. Sellers will want to know that your house is actively on the market, getting showings and even offers. Many sellers understand that you are in the same position as they are and want to work with you if it means getting their house sold.

Here’s an example of how it may work: your house is on the market, you find the house you want to buy, you make an offer with the Hubbard Clause and it is accepted. You still do inspections right away and you still sign contracts putting down the usual ten percent at contract signing and you have an agreement to try and get your house sold within a specified period of time. This could be 30 – 90 days, depending on what you negotiate with the seller. It is not an open door policy, but it gives you the right of first refusal if the seller finds someone else who wants to buy with no contingencies. It also gives the seller peace of mind that he has a buyer who really wants to buy his house.

If there is a buyer who makes a non-contingent offer then the seller comes back to you first and gives you the opportunity to drop the Hubbard Clause and get to closing. The time frame that you are given to drop the Hubbard Clause is also negotiated in the beginning. It can be 24 -72 hours, but usually not longer because the seller will need to respond to the second buyer in a timely fashion. If you are not able to close your house at that time and need to walk away from the deal, you will say so in writing and get your deposit back.

Clearly, this is not a solution for everyone with something to sell. But it should give you the incentive to start looking and even make an offer knowing that this is one option for getting the house that you want.

Let me know if you want to put it to work for you!

August 22, 2012
by Toni Mickeiwicz
0 comments

Agency Relationships

Agency relationships?  I don’t want a relationship…I just want to date for a while!

Understood, that is reasonable, people should have the opportunity to get to know each other before committing to one person.  If we are dating then we should start by hanging out and having fun, no commitment, and no pressure. In fact, except for your family, it is generally understood that we will get to know each other over time and during that time decide to what degree we want to commit to each other.

So when a Realtor that you meet for the first time puts a three page, in triplicate, document in front of you and says “sign here so we can go out”, you might feel a little put off or guarded about this pressure to “commit”. But know that she is just doing her job. She wants to work for you and ultimately find you the house of your dreams but the State of Connecticut has stated that in order to do that she has to first explain “agency representation” and have you acknowledge that she is working for you.

Agency representation was created in the late nineties because the State recognized real estate transactions as having the potential to be one sided with everyone working on behalf of the seller. In most cases, the seller has agreed to pay a commission to the listing agency who then offers a portion of that commission to the agency who brings a buyer. This is still how it works today but the laws of agency relationships were established in order for the buyer’s agent to have fiduciary responsibilities to the buyer—a “relationship of trust and confidence, as between trustee and beneficiary, attorney and client, principle and agent.”

Of course the expectation is that Realtors would operate that way anyway.  But as with many professions there are licensing requirements,  ethics training and standards of operation that give everyone the same understanding of the expectations of practice in that field.  Laws of Agency are a very important concept that all Realtors need to explain to their clients before they head out to look at houses.

The flip side of that coin is that as a Realtor I would like some confidence in the relationship too.  If you are selling your house, the commitment to your Realtor comes in the form of the listing agreement. You agree to pay a commission if the house sells and the Realtor agrees to work hard for you to get that done, usually within a specified period of time (six-nine months depending on market conditions).  As a buyer you are being asked the same thing, to commit to the Realtor who is working for you for a period of time.

Let’s say you are just meeting for the first time. She has taken the time and effort to arrange to show you houses one day, set up appointments, cleaned her car, filled it with gas, put a packet of information together about the area and the houses that you are viewing. You may never buy a house. You may buy a house in two years. You may decide to rent. She knows all of this. It is part of the business. But, if you do like the house that she is showing you and you do decide to make an offer to buy it, isn’t it reasonable to expect that this Realtor should get paid for working for you?

Here’s how I start my working relationships: During the courting period, I understand that we are just getting to know each other, so the first time we go out you can just sign to have me represent you for the properties that I am showing you that day. If you don’t see anything you like, but you like working with me and want to go out again, then the next time you can sign with me for the town that you are looking in. If your search area expands, then we will update your agreement accordingly.  The period of time will always be six months and get renewed as long as we are working well together.

I don’t know many people who want to start a relationship with the marriage contract. Most people want the opportunity to court the person first.  This is a fair expectation and because Real Estate is my business, my business expectation is that ultimately I will get compensated for time, effort, insights, knowledge and expertise in my field. These two expectations don’t have to be in conflict. The Laws of Agency offer a framework for mutual understanding and respect, which is a foundation for all good relationships!  We can negotiate our relationship along the way within the Laws of Agency.

Attached is the William Raveis handout that explains the different types of agency relationships. I’d love to know what you think.

AGDISC – CT Mandatory Disclosure of Real Estate Agency Relationships

July 31, 2012
by Toni Mickeiwicz
0 comments

Everything seems to slow down during the summer, even the Real Estate Market

Summer is in full swing, the Olympics have begun, kids are having fun at camp and vacations have been planned and started. Relax and enjoy because like many things it won’t feel like it was long enough. Another thing that seems to slow down right about now is the Real Estate market. Yes, there are closings and people are moving in and out of their homes before school starts but those deals came together a long time ago.  Overall things are quieter in the world of Real Estate. There are still houses being bought and sold but for the most part there isn’t a lot of new inventory or as many active buyers ready to make a decision.

If you are thinking about selling your home, now is the perfect time to start planning. Once school starts and the weather here in Fairfield County is still very pleasant, the focus will get back to buying and selling. So start to think about how you want your house to be presented to the public. Does your house need painting, cleaning, fixing, landscaping, de-cluttering? If so, why not start to address those issues now?

 Aside from asking your Realtor for a price opinion, ask her for some feedback about your house. What would she recommend you address to present your house in the best possible light? Remember, once you make the decision to sell your home it is no longer your home, it is a house that needs to be marketed to the public. It is a product that you are trying to sell. You may know that it needs painting but you may not be able to be objective enough to know that your beautiful blue glass collection that is on display in your hallway is not a selling point, but rather a distraction and a space minimizer. Don’t take the feedback personally. Understand that your Realtor is working for you to sell your property and if she asks you to pack up your blue glass collection it is for the purpose of presenting your house in a way that the public can see your house best, not encumbered with your personal belongings. Mr. or Mrs. Buyer needs to be able to picture his mother’s antique clock in his front hall not yours.

Enjoy your Summer but if you are thinking about selling your house in the Fall then take some time now to get ready. There may be more to do then you think and you will feel good about giving yourself the time to do them right.

July 12, 2012
by Toni Mickeiwicz
0 comments

Every deal has a moment

Like all good sales people Realtors will tell you that they are going to do their very best to provide you a service that their competition will possibly not do as well. If you really think about it, we are all providing the same service. So what makes one of us stand out more than the others?  One promise to this end is to provide a “seamless transaction”.  What exactly is a seamless transaction anyway?

I believe the concept comes from the second definition in the Encarta dictionary, “perfectly smooth- free from awkward transitions and creating perfectly smooth continuity” That does sound good doesn’t it? That is something all of us want when investing in or selling off our biggest asset. We want the transaction to go smoothly. Who wouldn’t? But it is not something a Realtor can promise. In fact I think it is a disservice to you to make that kind of promise. I think that it would serve you, the consumer, a lot better if we were honest with you and told you that there is going to be at least one moment. The moment will be of panic, angst, doubt, or discomfort. We never know what the moment is going to be about or when it will come but there will be at least one.

It could be in the beginning when you get multiple offers and panic that you think you priced the house too low, or as a buyer, it could come after the inspection and you are reviewing the thirty page report for the first time and feel like the things that need to be done are insurmountable. Maybe it is when the mortgage contingency is up and you don’t have your mortgage and you need an extension.  There are hundreds of times and places that the “moment” could occur. The good news is that it will pass, because most things in most transactions are workable or according to Encarta “able to be accomplished or carried out”.

This is really what your Realtor is saying. She is saying that she has the ability to work things out, to be there for you when the moment arrives and help you get through it. Just don’t let her say that it will be “seamless”. After all, residential real estate has a personal component and most of the time that is why there are “moments”. People are complex and everyone is unique, causing each of us to bring something different to the table when we are interacting with others. It could be a past experience, it could be our personalities, our upbringing, it could be any number of  things, even our horoscope if you ask some! The point is that our individuality is what makes every transaction different and unpredictable and what makes some moments bigger for some than others. It can be an emotional journey that takes you by surprise but it doesn’t have to take over the deal.

What your Realtor should tell you in the beginning is that she cannot promise something that she has no control over. She can promise to be there for you every step of the way and to help you work through each moment!

June 12, 2012
by Toni Mickeiwicz
0 comments

To Open House or Not to Open House?

This is the question plaguing many new home sellers. There is a lot of fear in the idea of opening up your house to let a lot of strangers walk around freely and look it over all at once.  Why would you want to do that?! Something could get broken, someone might take something, it might rain and everyone will track muddy feet throughout your white carpeting. I can list numerous objections. I have heard many and they are legitimate.

The one thing that you need to remember when you decide to list your house for sale is that you are now marketing a product.  If you can let go of some of your emotional attachment at this phase it will help you to position your “house” in the best possible way on the market for sale. That means in all areas, price, appearance, condition and availability for showings.  So remove all the things that are valuable that could walk out the front door with someone (obviously your 42 inch flat screen is valuable but someone is not going to walk out with it during an open house). Then ask your agent to bring those pretty blue booties to cover up shoes in case of inclement weather and remove the crystal vase on the table near the couch that a child could knock over etc. In other words, remove the objections to why you don’t want to do an open house because open houses should be an integral part of your marketing strategy in today’s market.

Ok, now here is your real objection, “open houses are just for the agents to get new clients; I want them to focus on selling my house not getting more business for themselves” Well, honestly that is a possible perk for agents. But, why not? After all, listing agents who have several listings are not going to be able to sit at more than one house, so who is going to do all of these open houses? Probably other agents on her team, or in her office who are willing to spend their Sunday afternoons at your house after blowing up balloons, setting up signs and printing out materials, for the chance that they could meet new prospective clients  but most importantly to better sell your house! Be thankful that they are there because today this is what the buyers want. They want to start their search in the privacy of their living room on their own computer looking at inventory and then they want to go out at their own speed with their own agenda and see the houses that they are most interested in and then call their agent. Yes, many of them have agents already who could schedule a showing but more and more buyers are doing a lot of their house searching by going to open houses.

Your competition is having an open house and so should you. Let me give you a couple of examples of why they are important. Just recently, I sold a house to a buyer client of mine who went to an open house in a town that he had “ruled out” at a price point that he “didn’t want to go to”  This house had multiple offers so thankfully I was able to write up the offer that night.  That house was never on my radar as one for him based on everything we had discussed and yet that is the house he bought after going to an open house!

Recently, I held my own open house at a new listing. I was very pleased to have had 10 groups of people. That is a very good showing. I always have people sign in so I can keep track of who is coming into the property and to follow up with any interested parties. I was able to ascertain that six people had agents and four did not. Out of those six, two came back with their agents who had not yet seen the house because it was so new to the market. Just imagine if those ten people made ten separate appointments to show your house. That is ten times that you would have to clean and leave the house instead of one– another plus side to this concept! These were real buyers and this is a perfect example of what many buyers are doing to search for homes, first on line, then at open houses, then with their agents. So don’t close the door on this avenue for marketing your home.  Don’t be a secret seller! Put out that sign, open up that house and get it sold!

June 5, 2012
by Toni Mickeiwicz
0 comments

Inspector, what’s wrong with this house?

Congratulations! You have found a house that you love and now you want to get it inspected. This is proper protocol and a must for every home buyer. It is important to know what you are buying and to fully understand how everything in the house works. It is also important to have a professional tell you if everything in the house is working properly and what might be done to improve it. You may have looked the house over with your rose colored glasses that come with many first time home buyers who fall in love with the front porch or the open floor plan. Or you may mistakenly think that everything needs to be like new. This is where an inspector becomes invaluable. They are extremely knowledgeable and professionally trained and if licensed by your state (you should hire a licensed inspector) they have strict guidelines and laws to follow.

Think about the inspection as having three purposes: 1) to highlight anything that would be considered a safety hazard or health concern such as radon 2) to educate you about how the house functions and help you understand how to maintain it and 3) to determine if there is anything that would cause you to not want to continue with the purchase of the house or to renegotiate because of this new information.

All three of these purposes are important to you but often this is the most difficult part of the transaction because expectations can be unreasonable. Unless you are buying new construction you are not going to get everything “like new” and you shouldn’t expect to get a credit if for example the furnace is 15 years old and it has a fifteen year life expectancy. If that furnace is running and has been serviced regularly there is no reason to believe that it will die tomorrow just because there is a limit to its lifetime. Most of the time listing agents and sellers are going to price the home with its age and condition in mind. Then you and your agent are going to make an offer with the same information. However if the inspection determines that the furnace is not working at all, then obviously that is new and important information.

My point is safety first, educate and learn how to care for second and renegotiate or walk away if something comes to light that makes moving forward unreasonable for you, but don’t approach the inspection as a way to lower the price that you have agreed on. This should not be your primary reason for inspecting.

Owning a home is exciting and scary at the same time. It is most likely your biggest purchase and maintaining it is a big responsibility. You will want to understand all of its nuances and what will be required to keep it “healthy” over its lifetime in your care. Take advantage of the knowledgeable person you have hired as your inspector and ask questions. You will be glad that you did!

May 29, 2012
by Toni Mickeiwicz
0 comments

If you throw in the dog crate it’s a deal

Toni's Real Estate Insights

If you throw in the dog crate it’s a deal!! ………………….

No, don’t do it!  Personal belongings are just that, personal.

When you are buying a residential property remember that it is the “house” that you are buying and not the things that made it a “home” for the seller.  Emotional attachment to things can complicate a deal to the point of losing sight of the fact that this is a “real estate transaction” not a tag sale. This is not to say that the sellers may want to sell some of their belongings but this should be discussed separately.

First finish negotiations on the house that you fell in love with and look at it with the full intention to decorate it with the things that will make it your home. Once all of the negotiations are done then you can ask about the living room furniture. You can even ask if they are having a yard sale. They will probably be flattered that you are interested. But tensions can already run high during the actual negotiation of the house for so many reasons: they may not be getting the price that they had hoped for, inspections may reveal some unknown issues, and they could be moving for reasons outside their control. Remember this was once their biggest investment and their home.