Real Estate Articles

When a hermit crab decides it’s time for a new home, it scopes out a new shell before vacating its current accommodation.

But for homeowners, the process is not so easy.

Whether you buy a new home before selling your current one – or the other way around – the choice of what to do first comes down to which option makes you the most comfortable.

Both have pros and cons, and here are some to consider:

Sell first

• When you know what your current home has sold for you can zero in on exactly what you can afford in your next one.
• Because you already know the conditions of your own home’s sale, such as the closing date, you can make informed offers.
• The downside: If you can’t get possession of your new house before leaving your current one, or even worse, can’t find what you’re looking for, you’ll need temporary housing. Can you afford a short-term rental, and what will you do with your furniture while you’re waiting?

Buy first

• If you’ve found a home with unbelievable features in a great neighborhood at an awesome price, the pressure is on. You really want this dream home, so in this case, you may have to buy before selling.
• If the local real estate market is hot, you might feel safer buying first.

It’s probably a safe bet your home will sell fast, unless it’s out of step with its neighbors; if it’s a fixer, or if it’s the best home in the neighborhood, it may languish or sell below asking

• The downside: If you buy first and your home does languish, the worst case scenario is you’re stuck with double mortgage payments.

And double stress.

Some families handle risk better than others. What kind and how much depends on your circumstances.

Single-family homes are still much sought after; according to NAR, almost 80% of last year’s buyers purchased a single-family detached home. It appears the American dream isn’t dead; like previous generations, families have and will continue to seek a place of their own.

It’s every homeowner’s worst nightmare:

Your new neighbor has decided to tear down the charming colonial and build a monster home. Or he’s turned his backyard into a junkyard. Or she’s having noisy parties.

Yes, having bad neighbors can be awful. And did you know they also can lower the value of your home by up to 10 percent.

A recent study by the US Appraisal Institute indicates that your neighborhood – and your immediate neighbors – can be game-changers when it’s time to sell. You may be looking at a 5-10 percent drop in your home’s value. And a lower selling price.

And it’s not just close neighbors; it’s your street and often your whole neighborhood. Barking dogs, poorly maintained properties, utility towers, and even funeral homes can make your neighborhood less desirable, and your home less saleable.

What can you do? Not much after you’ve bought, although you can approach your neighbor and/or a lawyer to try to stop the offending behavior. But you can practice due diligence before you buy.

Visit your potential neighborhood at night and during the day. Drop by on weekends. Drive around neighboring streets to get a feel for the area. Note the proximity of commercial properties. Chat with the neighbors to find out if you share the same commitment to maintaining your properties. Consider contacting the local police and checking crime stats.

Whether you’re buying for the long term, or may sell in the next few years, checking out your neighbors and the neighborhood only makes sense.

A house is probably the biggest purchase you’ll make. So finding out all you can about the home-to-be is essential.

It’s all about the history of your home, and several companies have sprung up across North America to enlighten potential buyers as they begin their home search.

These organizations provide inexpensive reports that include a history of the home dating back years.

That means you can find out about additions and repairs through building permits and leaky roofs via insurance claims.

Previous selling prices and even some of the more unsavory aspects of the home, such as a history as a drug lab, are available.

Some firms also will provide names of the companies that made previous additions (such as swimming pools), so you can follow up if you like the workmanship, or if you don’t.

In the U.S., one company offering this service is BuildFax; buyers can obtain a report through their real estate agent. But if you have time and energy, you can also conduct searches yourself; virtually all the information is contained in official records, available to the public at little or no cost.

History reports like these can help potential buyers avoid unpleasant surprises at closing time or later down the road.

A track record of problems might make a house a lot more expensive to insure, but if a potential buyer knows about the issues before purchasing, he or she could decide against buying the home or at the very least will be prepared for the additional costs.

Single-family homes are still much sought after; according to NAR, almost 80% of last year’s buyers purchased a single-family detached home. It appears the American dream isn’t dead; like previous generations, families have and will continue to seek a place of their own.

Spring has sprung, the grass has riz … I wonder where the plumber is.

This riff on the poem, “Spring in the Bronx,” highlights other rites of the season: renovating and redecorating.

There’s nothing quite like sunlight pouring through our open curtains to inspire us, so every year at this time we start to think about changing our surroundings.

Spring’s latest trends may be just the thing to bring new life to your old home.

And because it’s even more important if you’re thinking about selling, you’ll be pleased to know there are some inexpensive quick fixes to brighten your surroundings.

This year is all about color: Pastels are everywhere (Benjamin Moore’s color of 2013 is called Lemon Sorbet), but so are muted blues, which have been proclaimed the new neutrals.

Pastels are a great way to lighten and brighten without dominating. For the potential seller, an accent wall in soft yellow complements neutrals and won’t turn off buyers.

While summer is still months away, bring the look of the outdoors in now. Let garden furniture assume center stage, and introduce the sunshine with sheer window coverings; it’s the best way to establish a link with nature.

This year, we’re reacting to our high-tech lifestyles by connecting to all things earthy.

A “new” traditional style features classic with a twist, such as a sofa with simple lines upholstered in a strong color.

It’s a sea change from last year’s whimsical folk art and reclaimed furniture look, which nevertheless remains popular this year.

If you need new appliances, there’s a big surprise in store. Black is the new stainless steel, and even white is trending.

Lastly, you can give your home curb appeal with new door hardware in the latest metallics: brass, copper, bronze or gold. Don’t forget to paint the door in one of the new colors. Then sit back and enjoy the compliments.

Americans who are house shopping in 2013 are looking for more than granite countertops and hardwood floors. According to recent research, it’s all about the family.

Most home buyers cite growing families as the main deciding factor in purchasing a new home. According to real estate professionals, almost three-quarters of their clients are motivated to look for a new home when they outgrow the old one thanks to their growing families.

The second key motivator relates to the job market; almost 70% of respondents to a recent survey of real estate professionals cite job issues as a reason for buying a new home.

As has been the case for several years, neighborhood safety remains the top factor influencing where buyers will purchase, according to the 2012 Profile of Home Buyers and Sellers, recently released by the National Association of Realtors. Convenient access to work was the second top factor. Families and couples placed a high priority on the quality and location of schools, and affordability remained a concern in 2012.

While looking for affordable properties, families living with elderly parents or returning adult children are paying as much attention to the home’s floor plan as to its cost. According to real estate professionals, many of these buyers are looking for split floor plans to give the different generations breathing room.

Smaller homes are gaining traction. Builders are expecting the average home size will be 2,152 sq. ft. in 2015, compared to almost 2,752 sq. ft. in 2007. Part of this relates to increased energy costs; 87% of buyers now consider heating and cooling costs at least somewhat important.

Single-family homes are still much sought after; according to NAR, almost 80% of last year’s buyers purchased a single-family detached home. It appears the American dream isn’t dead; like previous generations, families have and will continue to seek a place of their own.

Spring is home-buying season, and if you have friends moving into their first home, you know a housewarming gift is in order.

While flowers and candles are lovely, why not pick up something practical, particularly for those first-time homeowners? Read on for ideas that are sure to be appreciated.

Books
Pay a visit to your local bookstore and check out the home improvement shelves. Books on do-it-yourself home projects or a first-time owner’s guide are great options. Alternatively, pick up a beautiful coffee table book on a subject your friends are interested in.

Gift baskets
Don’t pay big bucks for someone else to put one together; get creative and personalize a gift basket yourself. Try items a homeowner would find handy, such as dish towels, hand soap, linen spray, funky paper napkins and monogrammed coffee mugs. Or go with a theme, such as movies: Pick up a few classics on DVD and add some gourmet snacks.

Gift cards
Buy them a gift card for home improvement, decor, gardening or grocery stores. Or give them a break with a restaurant gift certificate or a one-time visit by a cleaning service.

Tools
A collection of essential tools is something that every homeowner will need at some point. Buy a basic toolbox and fill it with items such as a hammer, various screwdrivers, pliers, a wrench and a tape measure. Or choose one tool – a drill or a hammer – and buy the best quality item you can afford. Include drill bits or nails. 

Journalist and ecologist Lakis Polycarpou recently penned a Polis blog article titled “Is it Time to Transcend the ‘Urban-Suburban’ Divide?” An admitted city lover, he concluded that suburbia (at least today’s suburbia) isn’t so bad after all.

Then again, a recent article in Atlantic Cities spoke positively of the trend to urbanism, whereby homes in many walkable, centrally located neighborhoods have held or increased their value while that of their suburban cousins declined.

Across North America, experts are predicting a trend toward urban living sparked by immigration, economic factors, the increasing price of gasoline and “most of all” demographics, as the two largest demographic groups – baby boomers and millennials – appear to be driving the urban boom.

Some cities are welcoming the influx and making changes to make city living more appealing, including upgrading infrastructure and transit systems. However, the suburbs are changing, too, morphing from car-friendly cookie-cutter developments that excluded pedestrians and transit riders to today’s suburbs that are anything but.

While many developers haven’t lost their taste for McMansions, some innovative architects are designing smaller homes in town-like settings around greenspace. Targeted to appeal to downsizing boomers and millennials who don’t want the expense or bother of big properties, this new suburbia competes with the “urbs.”

Also competitive, new developments are arranged around golf courses, waterways and community centers – making them more livable. Even the auto is downplayed, thanks to bike paths and trails. Developments also include a mix of housing: Once the preserve of single-family homes, many suburbs now host the fastest-growing segment of the real estate market: multifamily housing.

Something to ponder. But for our confused home buyer, we point to a sentiment expressed recently by one real estate watcher: There’s only one right answer, and it’s whatever is best for you.

The high cost of education, poor job prospects and rising prices in many housing markets mean more young prospective home buyers are turning to their families for help to buy their first home.

Traditionally many parents have opted to contribute toward a down payment, but in recent years, that contribution has become bigger and the practice has grown in popularity.

It’s becoming so common that house-and-home channels have a whole show – My House, Your Money – focused on buyers who can afford to buy only with their families’ help.

For the contributors, it’s not as simple as writing a check and waiting for the housewarming party. Now, in time-honored “pay the piper” tradition, many families want a role in the buying process; they attend viewings, push their ideas and even try to hijack the real estate agent/buyer relationship.

The gap between what young buyers want and what families feel the kids need can create a dramatic tug-of-war that makes great fodder for a TV show. Episodes of My House, Your Money show adult children asking their parents to take a step back and parents using their investment as a bargaining chip.

It isn’t always this way: Just because they’re investors doesn’t mean that family members can make the big decisions. As real estate agents who have dealt with these situations point out, most parents want what’s best for their kids, and while it might not be what they would pick, that condo in the sky may be what makes their offspring happy.

John Gray’s “Men are from Mars; women are from Venus” mentality may apply to far more than communication styles, conflict resolution and acts of love. Turns out, there may be differences between the genders when it comes to purchasing a home.

Home builder Mark Patterson took a women-centric design course and made big sales based on what he learned. Patterson told BuilderOnline.com that while men look at the big picture, women see the details. Men also are concerned with how the house will provide for relaxation and entertainment, while women are more conscious of how they will live and work in the home.

At the same time, what used to be the woman’s preserve – the kitchen – is now of interest to men. Increasingly they’re weighing in on the kitchen’s design and furnishings, partly because they’re focused on the resale value of the most salable room in the house.

Interestingly, women approach the home-buying process with more anxiety than men do. More than 40% of women find shopping for a home stressful, compared to approximately 30% of men.

A recent insurer study found that the way each gender views mortgages is also different, with 75% of women saying that an easy-to-understand mortgage plan is important, but only 60% of men agreeing.

Study results indicate that women and men do see the home-buying experience differently, but that both are concerned with the home’s livability and resale values.

When it comes to big issues, it’s not so much “He says, she says” as “They say.”

After a downturn in spending on home renovations, homeowners across North America have once again been bitten by the renovation bug. And this bodes well for the economy as a whole in 2013.

Residential investment – including construction and remodeling – is expected to add almost three-tenths of a percent to the U.S. gross domestic product (GDP) in 2013. And, according to the Joint Center for Housing Studies at Harvard University, Americans will likely spend upward of $134 billion by June 2013, up from $115 billion recorded in September 2012. The peak of renovation activity across the U.S. occurred in 2007, when it was 8% higher than that predicted for 2013.

However, even more telling is the impact the entire housing sector has on the economy as a whole. Studies indicate a robust housing industry boosts consumer spending – and consumer expenditures constitute two-thirds of the U.S. economy.

In fact, reports suggest that U.S. consumers are beginning to feel positive again. This is reflected in increases not only in remodeling projects, but also in the purchase of investment furniture.

Homeowners are also looking for changes to their homes that will make their lives easier. Busy families may consider adding a deck, but they’ll likely be looking for low-maintenance decking; some will replace traditional lawns with easy-to-maintain grasses or ground covers.

Many homeowners have downsized to smaller houses where storage is at a premium, so renovations to improve storage capacity will become increasingly popular. Part of this trend is a move toward multifunctional rooms and renovations that can be considered investments in the future.

While aging at home may not yet be a concern to boomer homeowners, most have seen their parents renovate to enable them to continue to live at home. This type of renovation has a future and will grow significantly in the next few years.

For six years, Sydney Walters wondered why his home was so hot in summer and so cold in winter. And why his family developed allergies and asthma.

There was a reason for that: When Walters purchased the home from its original owners, he hadn’t hired a home inspector. That home inspection could have revealed that the home’s attic had no insulation – resulting in wild temperature fluctuations and mold.

Buying a home is often the biggest investment a family can make. While you may not want to spend extra money, a home inspection can reveal a host of problems needing repair. Without it, your big investment is vulnerable to big trouble.

According to associations of home builders, a typical home inspection will include examination of a home’s heating and central air conditioning systems, plumbing and electrical systems, roof, attic and visible insulation, foundation, and structural components.

It should be done by a certified professional who can spot things an untrained eye may not.

When choosing among home inspectors, be sure to look at their credentials and certifications. They should be members of a professional association of home inspectors.

The cost of a home inspection varies and can be based on such factors as the size and age of the home.

While incurring an additional cost during the home buying process is frustrating, it can save you thousands of dollars by alerting you to areas of concern and give you much needed peace of mind that your big investment won’t cause you big trouble.

If you’ve purchased a home recently or intend to purchase soon, you may not realize you’re part of a vast industry that has made a significant contribution to the North American economy.

Consider the following from an April 2012 report by the National Association of Realtors® (NAR):

“Research has consistently shown the importance of the housing sector on the economy and the long-term social and financial benefits to individual homeowners. The economic benefits of the housing market and homeownership are immense and well documented. The housing sector (in the U.S.) directly accounted for approximately 15% of total economic activity in 2011.”

That includes such things as mortgage lending; home construction; real estate agents’ commissions; lawyers’ fees; and home appraisal costs, as well as moving costs. And the sector generates taxes and other forms of income for government at all levels.

But the housing industry also produces economic ripples that extend well beyond the home purchases and related expenses. Real estate transactions create jobs and economic growth in a number of sectors you might not even consider.

A NAR study on the economic impact of real estate in Oregon tells the tale: For every house sold in the state in 2011, there were additional expenditures on consumer items, such as furniture, appliances and paint, totaling $5,234. An Oregon home priced at $229,500 had a total economic impact of $67,003.

When you consider the number of homes sold across North America, you realize the numbers of manufacturers, suppliers of goods and services, tradespeople and sales forces that are dependent on the housing industry. The industry remains one to be reckoned with.

Naysayers notwithstanding, it will continue to be so. Even now with housing markets in flux, homeownership remains ingrained in our psyche. The North American dream is still very much a reality for many people.

What things concern sellers most about the selling process?

As a seller you are often told to consider buyers’ concerns when placing your home on the market. And that makes sense. But you also have concerns, and they’re not about renovations.

A recent survey found many sellers are more concerned about understanding the legal documents and processes involved in selling their homes than they are with their homes’ physical appearance. Unlike the quick-fix decorating solutions offered on TV shows, legalese is confusing and overwhelming.

Your listing agent will likely recommend an experienced real estate lawyer to provide these answers.

Real estate agents can help address your other concerns, such as the state of the current real estate market. Like the lawyer who can explain complex legal documents, your agent can demystify the real estate market.

You’re about to make one of the most important purchases of your life – a home for you and your family. But here you are, handing over those all-important home purchase negotiations to your real estate agent.

Relax. Your negotiations are in good hands.

Strong negotiating skills are among the many reasons you use an agent. He or she has been specially trained in negotiations and has many years of experience putting this training into practice.

Here are some of the reasons you should trust your agent to bargain on your behalf:

•  While your agent wants to make the best deal possible for you, he or she knows that, by definition, negotiating requires some compromise to make it work. (For example: “Give on the price, we’ll loosen our demands for a 30-day close.”) Both parties should emerge from negotiations feeling they’ve gotten a good deal – a win-win.
•  The adage that everything is negotiable in real estate isn’t necessarily true. You don’t want to go for everything, because you may end up with nothing. Your agent will decide what mountains to die on according to your priorities. And let’s face it – that refrigerator you want but the seller won’t surrender, probably doesn’t qualify as that mountain.
•  Your agent has the experience to correctly size up the seller, which can give you a major advantage during negotiations. Is the seller motivated and prepared to give concessions, or are there other offers waiting in the wings?
•  Most important, your agent negotiates based on facts, not emotion. He or she can table a home inspector’s report proving that repairs are needed without recriminations and present stats to support your offer without arguing over value.

So you can relax; your agent’s negotiating skills will get you that deal. And chances are it will be a win-win.

Want to infuse your home with energy to make it attractive to buyers? Why not consider feng shui – an ancient Chinese science that focuses on creating harmony and maintaining balance so energy flows well through your house.

You can’t control everything (such as the view from your backyard) but a tidy property will stand you in good stead. Most important, keep your house well-lit and clutter-free.

These tips may impress buyers looking for good feng shui:

•  Invest in your front door – where energy enters the home. Remove distractions leading up to it, such as garbage cans and scruffy planters. Make sure door decorations fit the season. Paint the door in fire (reds and oranges) or wood (greens, browns) colors. Maintain hardware. And address squeaking hinges.
•  Focus the energy in the main entrance. Create a focal spot but keep it simple, such as a table with flowers nicely arranged in a vase or a colorful rug. Never put a mirror facing the front door. If you can’t remove it, put a plant in front of it.
•  Keep the energy flowing in each room. For the kitchen, this means good light; paint it yellow. In the bedroom, keep beds away from doors and windows and make sure they have lots of space around them.

Need more help? Call a feng shui master to help you determine if the house you want to sell – or buy – is harmonious and balanced.

Buying a home is a complex process with many factors to consider.

Prepare for the decisions you’ll need to make along the way by requesting my free report 10 Easy Steps to Buying a Home.

If you’ve purchased a home recently or intend to purchase soon, you may not realize you’re part of a vast industry that has made a significant contribution to the North American economy.

Consider the following from an April 2012 report by the National Association of Realtors® (NAR):

“Research has consistently shown the importance of the housing sector on the economy and the long-term social and financial benefits to individual homeowners. The economic benefits of the housing market and homeownership are immense and well documented. The housing sector (in the U.S.) directly accounted for approximately 15% of total economic activity in 2011.”

That includes such things as mortgage lending; home construction; real estate agents’ commissions; lawyers’ fees; and home appraisal costs, as well as moving costs. And the sector generates taxes and other forms of income for government at all levels.

But the housing industry also produces economic ripples that extend well beyond the home purchases and related expenses. Real estate transactions create jobs and economic growth in a number of sectors you might not even consider.

A NAR study on the economic impact of real estate in Oregon tells the tale: For every house sold in the state in 2011, there were additional expenditures on consumer items, such as furniture, appliances and paint, totaling $5,234. An Oregon home priced at $229,500 had a total economic impact of $67,003.

When you consider the number of homes sold across North America, you realize the numbers of manufacturers, suppliers of goods and services, tradespeople and sales forces that are dependent on the housing industry. The industry remains one to be reckoned with.

Naysayers notwithstanding, it will continue to be so. Even now with housing markets in flux, homeownership remains ingrained in our psyche. The North American dream is still very much a reality for many people.

For six years, Sydney Walters wondered why his home was so hot in summer and so cold in winter. And why his family developed allergies and asthma.

There was a reason for that: When Walters purchased the home from its original owners, he hadn’t hired a home inspector. That home inspection could have revealed that the home’s attic had no insulation – resulting in wild temperature fluctuations and mold.

Buying a home is often the biggest investment a family can make. While you may not want to spend extra money, a home inspection can reveal a host of problems needing repair. Without it, your big investment is vulnerable to big trouble.

According to associations of home builders, a typical home inspection will include examination of a home’s heating and central air conditioning systems, plumbing and electrical systems, roof, attic and visible insulation, foundation, and structural components.

It should be done by a certified professional who can spot things an untrained eye may not.

When choosing among home inspectors, be sure to look at their credentials and certifications. They should be members of a professional association of home inspectors.

The cost of a home inspection varies and can be based on such factors as the size and age of the home.

While incurring an additional cost during the home buying process is frustrating, it can save you thousands of dollars by alerting you to areas of concern and give you much needed peace of mind that your big investment won’t cause you big trouble.

When it comes to major life events, moving is among the most stressful. But did you know that changing where you live can be just as traumatic and worrying for children as it is for adults?

If you’re a parent, it’s wise to consider the impact a move will have on your youngsters well in advance of moving day. Try to minimize any negative effects by talking through the realities of the changes your child is likely to experience.

Even very young children can become fearful or insecure if they see familiar pictures disappearing from walls and rooms filling with boxes as cherished items are packed in preparation for the move.

Older ones can become withdrawn as they ponder the unknown with questions like “Will I make friends?” and “Will I like my new school?”

So while moving can be hectic, it’s important to make time to listen to your children’s concerns, to be sensitive to any changes in their behavior and to provide plenty of reassurance. Let them know that while there may be challenges ahead, you’ll be there to support them. If you need help, any bookstore has many excellent children’s books that are appropriate for a range of ages and help explain the moving experience.

Once in your new home, set up the kids’ rooms first. Quickly explore your new neighborhood with your children to help familiarize them with their surroundings.

You never know – you all might meet a few new friends along the way.

A swing toward urbanism is shaping “Big City, North America.”

It’s those darn demographics again. Only this time it’s not just a baby boomer thing; it’s what some experts are calling a “convergence” between boomers and millennials, also called “Generation Y” and born between 1981 and 2000.

In their home searches, empty-nester boomers are looking for smaller houses in centrally located neighborhoods within walking distance of everything.

Meanwhile, Gen Yers simply prefer the urban lifestyle. The result is an influx of buyers to downtowns and away from suburbia.

The heightened demand for these urban neighborhoods is exceeding supply. In some cities, a rental boomlet is under way, as Gen Yers are finding the urban lifestyle they want in rental apartments and condos.

Size matters, too. Both boomers and Gen Yers are finding that small is beautiful, purchasing smaller urban properties with postage stamp-sized yards or tiny downtown condos with expansive views.

The urban lifestyle also has some new fans: Single women now represent 21% of U.S. first-time buyers compared to 12% for single men, according to a survey by the National Association of Realtors.

The full impact of the new urbanism has yet to be felt.

But it’s a good bet it will change the shape of cities – and suburbs – for some time to come.