Aug. 26, 2008 - Tips for Making a Smart Move

With my family's move just 3 days away, I've been keeping track of what planning steps are working and what things we could have done to save ourselves some hassle.  Here are my top tips:

1. Start a Notebook.  Moving involves many details and writing them all down in one place has helped us keep our heads on straight.  If you can find a notebook with tabs, set up separate sections for each phase - before the move, moving day, to do at the new house, to do at the old house, etc.
2. Measure Everything.  Keep a tape measure handy and measure your furniture, the rooms in the new house and all of the doorways the furniture needs to fit through.  We're moving into an old house and had a rude awakening when we realized that our couch wouldn't fit through the doorway and our box spring won't make it up the stairs.  It's an inconvenience, but at least we know about the problems ahead of time so we can plan for them (yes, we bought a new couch).
3. Pack Anything You Can Live Without for a While.  If you start packing anything you won't need for a while, you'll save yourself a lot of late nights the last few days before the move.
4. Keep Track of Your Expenses.  Get estimates for any work you need to have done before, during or after the move so you know how much money you'll need to get through it all.  Be sure to set aside extra funds for the unexpected (a new couch?!) and tips for movers, etc.
5. Get Referrals for Reliable Professionals.  Ask friends, family or your REALTOR for the names of any service people that you'll need to make your move go more smoothly.  Getting a referral will make you feel more confident that you will get the service you need when you need it.
6. Keep the Cleaning Supplies Handy.  The previous owners/tenants of your new home should have left it in "broom clean" condition for you, but what they consider "broom clean" might not suit you.  So keep all of your cleaning supplies handy or arrange to have a cleaning service get everything spotless for you the day or morning before you move in.
7. Gather Lots of Boxes & Packing Supplies.  If you're getting boxes from your movers, have then deliver them early (see #3 above), along with lots of tape and packing paper or bubble wrap.  If you need boxes, ask at your local supermarket, liquor store or other store to see if you can pick up boxes before they crush them for recycling.  Also start saving newspapers or ask if the supermarket will give you their leftover papers.  Newspaper makes great padding for packing delicate items.
8. Pack by Room or Category.  Keep like items together when you pack them in boxes and label each box with the contents and name of the room that they go into in your new house.  That way you'll be able to easily tell which box goes where and figure out which boxes to open first when you're unpacking.
9. Keep Your Valuables with You.  If you have valuable jewelry, treasured collectibles or important paperwork, pack them into boxes or suitcases and take them with you in your car when you move.  Moving companies are insured and responsible, but it will make you feel better to know that your most important possessions are under your control throughout the move.
10. Take Breaks.  Don't forget to eat, drink lots of water and just relax every once in a while.  The last thing you want is to get hurt or too exhausted.

I'll be sure to let you know how all of our planning works out.  If you have any great moving tips that I haven't thought of, please feel free to post them in the comments.  It would be great to get your input.

Aug. 14, 2008 - Can A Buyer's Agent Save You Money?

There's a great article in the September 2008 issue of Consumer Reports Magazine about "How to Protect Yourself in Today's Rocky Real Estate Market."  It explains the results of Real Estate section of the Consumer Reports National Research Center's Annual Questionnaire of readers that included responses from thousands of readers who either sold or tried to sell a home, bought a home, or both bought and sold a home in the past year.  It brought to light some interesting facts that both confirmed and refuted common Real Estate ideas.  I highly recommend that you pick up the issue or read the article online (some parts of their website require a paid subscription) if you're thinking about buying or selling a home in the near future.

The part of the article that I found to be most interesting was the following:

• The 66% of the readers who used a real estate agent in buying a home paid an average of $5,000 less than the listing price
• The 34% of buyers who negotiated their own deals, without an agent, paid close to the asking price

So the buyer's who used a buyer's agent paid less on average than the buyers who chose to go on their own.  And not only did they save money, but in most cases they likely didn't pay a penny of their buyer's agent commission out of their pocket because the commissions were paid by the seller.  How's that for a great deal?  Where else can you get the assistance of a knowledgeable industry expert without paying for their services and save money?

If a buyer is using the Listing Agent (Seller's Agent) to negotiate on their behalf, then they are not having their best interests represented.  The Listing Agent is contractually bound to represent the best interests of the seller at all times, which means they cannot advise a buyer on what price to offer on the house (except the list price) and they don't need to keep any information a buyer reveals to them confidential.  So it's no wonder that the buyers in the Consumer Reports survey that choose to go it alone ended up paying more than buyers who used an agent.

In Connecticut, a home buyer has the right to have an Exclusive Buyer's Agent represent them in their home purchase.  So be a smart consumer and take advantage of the expertise that a Buyer's Agent can offer you on one of the most important (and expensive) purchases you'll make in your lifetime.  But don't use just any agent, be sure to find a Buyer's Agent who will provide you with the information you need to make an educated decision and will work hard for you before, during and after your purchase.  And remember, your Buyer's Agent works for you, so be sure to let him or her know what type of service you expect and don't be shy about telling your agent if they're not meeting your expectations.

Aug. 12, 2008 - Name My Blog Contest Winner!

Congratulations to the Winner!

Thank you to Yvonne Coelet, from White Mountain Foreclosed Properties, in Arizona, for her great title suggestion of Home Buying 101. It's so simple, yet it let's everyone know that like an introduction class in college, this blog will provide them with a valuable survey of the all of the areas of knowledge that are important to any Home Buying decision.

A big thank you to everyone who gave me their ideas! And Yvonne, your prize is on the way.

Aug. 8, 2008 - Name My Blog & Win

Dear Readers,

I need a great, catchy title for my blog and I'd love to hear your ideas. 

Here are the guidelines:

1. Title must be short & catchy, yet clearly convey the purpose of my blog, which is to provide "Inspiration, Advice & Education for Home Buyers in Fairfield County, Connecticut" and beyond
2. Ideas must be submitted as a Comment on this blog post
3. No vulgar, offensive or trademarked words or language can be used
4. All submissions must be posted by 5:00 PM EST on Monday, August 11, 2008
5. No anonymous submissions will be considered

The winner will receive my gratitude and if that's not enough  they will also win a $25 Restaurant.com Gift Certificate. 

I'm looking forward to seeing your ideas.

Thank you & Good Luck,

Marcie

Aug. 7, 2008 - If I Could Do It Over, Would I Do It Differently?

In an earlier blog post I told the story of when my husband and I bought our first home.  Now that we are getting ready to move from there, I've started thinking...if we were starting over, would we still buy the same condo?  To gain some insight, I logged in to my MLS and took a look back at what other condos sold during the same time we purchased ours.

And what did I find?  Well, there were lots of options at the time that we should have explored.   Some condos had the same (or more) space for lower prices and were still close to a train station (the most important factor for us).  There were even some condos right down the street from us that were almost $100,000 less than what we paid.  Granted, those condos didn't have as much space, but they were still larger than our Manhattan apartment, so they would have seemed big to us.    The only big difference between our condo and the competition was that ours was brand new, which I now know isn't always as great as you would expect.

So, do I have buyer's remorse 6.5 years later?  Absolutely not.  Our condo has been a great home for us over these years and that's really the most important thing.  And if we had bought something smaller, we likely would have moved a few years ago before our son turned into an over-active pre-schooler.  For us, being able to stay in one place for almost 7 years was a good thing (we'd both moved way too often through our college & early post-college years) and I'm glad that we were able to move when we wanted to and not because we had to move.

What can you learn from my experience?  Don't make the same mistakes we did.  Be sure you're making the right decision for you by:

• Exploring all of your options - look at different styles, sizes and price ranges
• Thinking of it as home, not just an investment
• Buying for the long term so you won't feel like you've outgrown it before 3 - 5 years
• Planning for the inevitable - taxes will go up, common charges may raise, insurance will increase - make sure these cost increases won't cost you your home

Take all of these factors into account so you'll be making a choice that makes you happy and makes good sense.

Aug. 5, 2008 - Finally, Some Good News - July 2008 Market Update

July was a good month for home sales here in Fairfield County.  The Median Sales price is up 10% over June and 2% (basically stable) over July 2007.  More importantly, the number of homes sold was almost 100 more than last month and only 14% lower than the number sold in July 2007, which is much better than last month's statistics.  Here are the overall statistics:

Single Family Home Sales Statistics

July 2008 - All of Fairfield County*
Median Sales Price: $612,500
# of Homes Sold: 728
Average Time on Market: 96 days

July 2007 - All of Fairfield County
Median Sales Price: $600,000
# of Homes Sold: 831
Average Time on Market: 92 days

It's Still A Buyer's Market

The average number of homes sold per month (absorption rate) so far this year is 448, which is up from last month.  Right now there are 5,640 homes actively for sale in the County which translates to about 13 months of inventory based on the current absorption rate.  Things are looking up for home sellers, but we're still firmly in a Buyer's Market.

What Does This Mean for You?

If you're a home seller, there's a light at the end of the tunnel.  Price your home correctly (ask your Realtor for advice on how to price your home competitively) and the right buyer will hopefully come along soon.  If you really need to sell now, price your home as low as you can handle it - the bargain hunters are out there and you'll get their attention.

If you're ready to buy a home, it might be time to get serious.  While I don't expect any drastic rise in home prices any time soon, the market looks like it's starting to level off.  There will continue to be more foreclosures coming on the market, especially early next year when a large number of adjustable rate mortgages are ready to reset, which will have an effect on the overall market and might bring some good deals for buyers (but do your homework before considering a foreclosed home).  If you can wait until after Labor Day, you'll be at a bit of advantage because there are usually less buyers shopping in the Fall and Winter and sellers who really need to move will be more willing to make a deal.  Of course, if you really need to buy something now, you'll still be able to get a good deal, as long as you do your homework (or work with a Realtor who will do the homework for you).  Happy House Hunting! 

Town by Town Single Family Home Sales Statistics

*Data compiled from listing information in the Greater Fairfield County CMLS entered as of 8/05/08.  Does not include private sales or sales listed in the Greenwich, Darien or New Canaan MLS services.  Always verify any information that is critical to your buying decision before acting.