Peggy Chirico ~ Hartford & Tolland County Real Estate Blog

Hey Baby Boomers! Have You Had Enough Yet?

 

First, let me say that I am a bona fide Baby Boomer so I can relate.  Second, let me say that I spent the entire weeked raking up leaves from my yard and debris from my garden.  Third, let me say that all this yard work is getting really old.

 

I, for one, have had enough!  I am ready to let someone else do it all.  My house has become too much of a burden, and my prized garden that I spent a lifetime creating is ridiculously labor-intensive.  I don't even want to look at it anymore.

 

Lest you think I am a decrepit old fogie, I want to assure you that I am not.  But I would rather spend my free time, what little of it there is, on other pursuits, like bike-riding, hiking, traveling, babysitting for my granddaughter, and other fun things.  Raking leaves, shoveling snow, pulling weeds, mowing the lawn, etc. are not fun.

 

I always thought I would stay in my house up to my dying day, but now I am thinking about moving.  I would really rather have a smallish, newer home with enough room for visitors and where I can spend time relaxing, entertaining, or whatever instead of spending every last waking free minute on maintenance chores.

 

If you too are thinking that it's time to let go of all the drudgery, there are plenty of housing alternatives for Baby Boomers.  Here are a few questions to think about:

 

Maintenance

You can decide how much work you want to do. Maybe you just want a very small yard--something that is manageable--and you are willing to do some work.  Or maybe you want someone to take care of all the exterior work.  Both options are available; in general, the more work that the association takes over, the greater the association fees.  If you are still a gardener at heart, you might prefer a tiny yard that you can manage or that you can hire someone to help you take care of it.  Be sure to check with the association to find out exactly what is covered. 

 

Privacy

If you have lived in a single family home all your life, you might not be ready to give up your privacy by living in a densely-populated condo complex.  There are many single-family homes in associations or attached villas that will still give you the privacy you are used to and still give you the maintenance-free living you are looking for. 

 

One Floor Living

If you are just looking for one-floor living, you have ranch-style condos, single-family homes, and two-story homes (attached and detached) with a master bedroom on the first floor.  You will still have plenty of room and visitors can always take the bedrooms upstairs.

 

Amenities

How important are social activities to you? Some complexes have everything you need within walking distance, including fitness centers, swimming pools, recreational facilities, and meeting rooms.  You have to decide if you are the type of person that would take advantage of the amenities or are you simply paying more for something you won't use.

 

Age-Restricted or Not

Are you ready to live in an active adult community or do you enjoy having people of all ages around you?  There are communities for people over the age of 55, over the age of 62, or of all ages.  In recent years, some of the the communities built for active adults have actually been converted to non-age-restricted, so don't think they are all age-restricted.

 

Here or There

You might be ready to give up your yard; you might also be ready to give up winters as well.  Moving out of a life-long home is never easy, and it requires a careful decision-making process to find out where your next home will be.

 

If you are staying right here in Connecticut, I can provide you with information on maintenance-free living so you can see what your options are.  If you are thinking about relocating, please talk to me as well. I can recommend reputable REALTORS® that will take good care of you and help you find your next home.  Either way there are great housing alternatives for Baby Boomers!

Radon is a concern in Connecticut, and I always recommend that home buyers have a radon test done.  Radon gas can cause health issues, so it must be tested for and addressed if found.  If radon is found in the home or the water, there are mitigation systems that will bring the radon levels to within governmental standards.  Reuben Saltzman of Minnesota has written a great post on the myths about radon and radon testing.  Thanks for an informative post, Reuben!

Two bedroom condos for sale in South Windsor CT for under $150,000!

 

One of the questions I am most often asked about is "Can I move into South Windsor CT for less than $150,000?"  And, the answer is "Yes!"

 

South Windsor is a sought-after market because of the lifestyle, amenities, services, educational system, and location.  The town offers all price ranges in homes from lower-priced small homes to sprawling mini-mansions, from affordable condos to luxurious age-restricted communities.

 

For people looking to enter the South Windsor market, condos offer an affordable alternative.  Currently there are 15 two-bedroom condos on the market for less than $150,000.  Here is a snapshot of what is available by complex:

Bryrewood

• 106 Twin Circle Drive - 2BD, 2BA, 1066 sf. - $127,900
• 810 Twin Circle Drive - 2BD, 2BA, 1066 sf. - $129,900
• 206 Twin Circle Drive - 2BD, 2BA, 1066 sf. - $134,900
• 611 Twin Circle Drive - 2BD, 2BA, 1066 sf. - $134,900
• 403 Twin Circle Drive - 2BD, 2BA, 1066 sf. - $135,900
• 705 Twin Circle Drive - 2BD, 2BA, 1066 sf. - $137,999
• 703 Twin Circle Drive - 2BD, 2BA, 1066 sf. - $141,500

Burr Meadows

• 507 Spring Meadow - 2BD, 1BA, 884 - $124,900
• 1009 Misty Meadow - 2BD, 1BA, 884 sf. - $127,900
• 1201 Sunfield Drive - 2BD, 1BA, 884 sf. - $139,000

Cinnamon Springs

• 53 Cinnamon Springs - 2BD, 1BA, 1041 sf. - $139,000
• 11 Cinnamon Springs - 2BD, 1BA, 1041 sf.- $144,000

Mill River Meadows

• 132 Candlewood Drive - 2BD, 1BA, 1038 sf. - $115,000
• 86 Candlewood Drive - 2BD, 2BA, 1038 sf. - $130,000

Parkview South

• 502 Summerhill - 2BD, 1.1BA, 1270 sf. - $139,900

If you are looking for a one-bedroom condo in South Windsor, there are currently 11 units on the market.  If you would like information about any of these units, please contact me.

School Will Be Starting! Will You Be in Your New Home?

 

The real estate market is heating up along with the weather here in Hartford County and Tolland County.  Whether you will be buying or renting, now is the time to make some decisions if you plan to be settled by the time school starts.

 

I was contacted this morning by someone who was looking to rent in a particular complex.  Unfortunately, there were no units available for rent, so I sent her some listings for nearby condo rentals.  I also told her that I would put her on an automatic search that would alert her when a new rental came on the market.  With less than six weeks to the start of school, she may not achieve her goal of being settled in where she wants to be.

 

For Renters:  Barbara Altieri of RealtyQuest wrote an excellent post about how renters can speed up the process by being fully prepared in advance.  If all the paperwork, credit checks, security deposits, etc. are lined up beforehand, they will be able to jump on it if a new rental is listed.  Although she wrote it for Fairfield Country, the same advice applies to Hartford and Tolland Counties.  The rental market is a very active one, and rents have increased because of it.  You may find yourself in steep competition and anything you can do to get the paperwork in quickly will be an advantage to you.

For Sellers:  The same advice holds for you:  Be prepared.  That means have your mortgage pre-qualification in hand, your earnest money deposit transferred to the right account, your Realtor® of choice selected, and your needs and wants clearly identified.  Understand that there is a big difference in timing among regular sales, bank-owned sales, and short sales.  The quickest sale may be the bank-owned property, but there is usually more work to do before you can move in.  Short sales still take a long time so that may not be an option for you if you want to get settled before school starts.

There is plenty of inventory to choose from, but if the house you want is priced right, you may find yourself in stiff competition.  Although it is a buyers' market in many areas, you may actually find yourself in the competitive, multiple-offer situation.  Your Realtor® will guide you through the process.

If you want to be settled by the time school starts, you must start NOW!

When I am speaking for the first time with potential buyers, one of the most misunderstood aspects of buying a home concerns buyer representation. Although we have had buyer representation in Connecticut since 1996, many people still do not understand that, as buyers, they have the right to have an agent who solely represents their interests. Here are some of the most common questions about buyer representation. I hope this will clear up WHY you need buyer representation!

What is buyer representation?

When you agree to work with a buyer's agent, you have the benefit of someone representing your best interests and negotiating on your behalf. The agent has a fiduciary responsibility and pledges to you loyalty, confidentiality, obedience, accountability, reasonable care, and diligence. These are not just words; you have an agent that helps you through every step of the transaction and puts your interests above everyone else's, including her own.

Can't I just call the agent whose name is on the sign in front of the house?

You can call that agent, but you must remember that he/she is representing the seller and will work in the seller's best interests. The agent can show you the house, and you must either consent to unrepresentation (you are on your own) or dual representation. If you choose to be unrepresented party, you must sign a paper that says that you understand that. If you want the agent to represent you, both you and the seller must sign papers that you agree to dual representation, and the agent will do his/her best to represent both parties fairly. A third option is that the agent can assign another agent from her broker's office to represent you, in which case you will have designated agency. But my question to you is: Why would you not want to select your own agent who works just for you?

Won't I get a better deal if I go to the listing agent?

This is a misconception that persists among novice buyers. Some people think that an agent will talk the seller into accepting a lower offer if that agent has both the buyer and seller because the agent will be getting all the commission. The reality is that the agent may be representing both parties, but the people in control of the final outcome are the seller and the buyer. If the seller doesn't want to accept your offer, it isn't going to happen. If you, the buyer, don't want to agree to the terms, it isn't going to happen either. Wouldn't you rather have an agent who will negotiate fully on your behalf so that you don't have to worry about where someone's allegiance lies?

Can you show me properties that aren't your listings?

Yes! Not only can I show you any property that is listed on MLS but I can also show you For Sale By Owners (FSBOs). When the sellers list their homes for sale, they agree to pay the buyer's agent if they sell the home. The same is true for most FSBOs as well. The owners of FSBOs save money by not using a seller's agent, but most agree to pay a buyer's agent a commission. So if you see a property that interests, just let me know and I will arrange for us to see it.

How much does buyer representation cost?

In 99.9% of the cases, the commission is paid by the seller, so buyer representation costs you nothing. I have never had an instance where a buyer has paid my commission, even with FSBOs. The buyer representation agreement, however, will spell out that you will be responsible for my commission if the seller does not pay. But two things are important here: First, it is extremely rare; and second, we generally know ahead of time if there are any issues with the commission.

Do I have to sign anything?

Yes, our agreement is called Exclusive Right to Represent Buyer/Tenant and it outlines what each of our responsibilities are. State law requires that I can only show you other brokers' listings if we either have an Exclusive Right to Represent agreement or if I have permission from each seller to show you the property. Rather than getting permission for each property, the Exclusive Right to Represent allows me to show you all properties that are listed by any broker. When we meet, I will go over each section of the agreement so that you understand it, but essentially is says that for a period of time we will work together in an agency relationship and that I will represent you in the purchase of your new home or land. You agree that you will use me exclusively as your agent and will let others know that you have signed a buyer representation agreement. This protects you, me, and other agents by letting them know that we have an exclusive relationship.

How long do I have to sign the agreement for?

The period of time that we are under agreement is negotiable. I want our relationship to be a mutually satisfying one, and I believe that we should both want to work together. For that reason, I encourage you to select a period of time that you feel comfortable with. If you don't want to sign a long agreement at first, that's fine with me; we can always extend it later if we both agree.

What else do I need to know about buyer representation?

The other thing that many homebuyers don't understand is that buyer representation not just about finding the property and writing up the contract. A buyer's agent is critical in the steps leading up to the closing. The inspections need to be done, and inspection issues need to be negotiated. After inspections are completed, a buyer's agent will monitor the mortgage process, make sure that the commitment date is met, and make sure that the final walkthough meets the buyer's approval. Any extra services, such as coordinating attorney services, utility switchovers, and verifying that inspection issues have been completed may be part of the agent's responsibilities. This conversation does not happen over the phone. I always meet with a potential buyer first so we can discuss each step in the homebuying process. I want to provide as much information as possible and answer any questions they have so they will feel comfortable about the process. After I have explained what buyer representation is, I will ask them to sign an Exclusive Right to Represent agreement. I want them to feel comfortable that I am going to work for them, but I also want to know that they are committed to me. We go over everything they will need to do for homeownership:

• Do they understand each step of the homebuying process?
• Do they understand that the monthly payment includes mortgage principle and interest, taxes and insurance?
• What do they need to provide to a mortgage lender to see what they qualify for in a mortgage?
• What is the timing? When do they need to move in? Do they have flexibility?
• What are their criteria for their first home? Are they flexible in what they must have and what they would like to have?
• Are there any other decision makers?

I hope this answers some of your questions about buyer representation. If you have any other questions, please ask. Or give me a call and we'll get started!

What's the difference between under contract and under deposit?

 

One of my readers asked me this question and I would like to thank her for asking.  We often assume that people understand our lingo as well as we do, so it is good to be reminded that we could explain things better.

In the Connecticut MLS, we differentiate the status of a listing with SHOW and DEPOSIT.  SHOW means that there is an agreed-upon contract with contingencies that have not yet been met.  The most common contingencies are usually a mortgage contingency, an inspection contingency, and sale of buyers' residence contingency (Hubbard), but there are others.  SHOW also means that the sellers can continue to show the property if they choose to, which is the norm especially with a Hubbard clause.  If there is no Hubbard, many sellers elect to not have any more showings.

Once all contingencies have been met, the status is changed to DEPOSIT.  This means that the buyers have obtained their mortgage commitment, completed their home inspections, negotiated for any repairs, etc.   At this point, the parties are simply waiting for a clear to close.

When I report on monthly market statistics, I use the terms Under Contract for homes with SHOW status and Under Deposit for those with DEPOSIT status. 

Again, I appreciate your questions; keep them coming! 

Price Reduction - Spacious Ranch in South Windsor CT

This four bedroom, 4.1 bath ranch home has just been reduced to $419,900.   With over $60,000 in improvements since 2007, this home is move in ready--and just in time for spring!  The snow isn't doing the professionally landscaped gardens justice so I have included a few pictures from last spring so you can see how beautiful the landscaping is. 

With a new roof, new central air, new kitchen, new deck, and newly fenced-in yard, you can enjoy many years of maintenance-free living in a great neighborhood.  The lower level has the fourth bedroom, full bathroom, second family room, space for a second kitchen, and full walkout that would make it the perfect in-law space.  Here are a few pictures of this stunning home.  Please let me know if I can provide more information.  You will love this home!

What's the difference between a condo and a PUD?

Many of my clients who are looking at condos will assume that all more-densely populated developments are condominiums, whether they are looking at converted apartment buildings, new townhouse developments, duplex or triplex communities, or planned single-family homes with very small lot sizes. 

 

However, the appearance of the community does not determine whether a complex is a condo or a PUD (planned unit development); it is a matter of ownership and how the community was set up.  Some communities look like PUDs, but are actually condominiums.  For example, Lakewood in South Windsor, CT is a PUD (sometimes called PAD for Planned Area Development) whereas Whitney Crossing in Vernon, CT (which is a community of detached homes) is listed as a condominium.

 

In a condominium, the individual units are owned by each tenant, but all the common areas are owned by the tenants jointly (as tenants in common).  In a planned unit community, each tenant owns the unit and may have rights and responsibilities to the property the unit sits on; ownership of the common areas is shared among the association.

The Homeowner Association fees vary widely among condos and PUDs; some PUDs have very low fees, but not always. A prospective buyer should find out exactly what amenities are available and what the HOA fees cover.  Some condominium communities seem to have higher fees but may include heat, hot water, basic cable, etc.  Communities with very low fees may only pay for snowplowing and maintenance of common grounds.

In addition, don't rely on MLS to find out if a community is a condo or a PUD/PAD.  I have seen some units in the same complex listed as condos, while other units are listed as PUDs/PADs. 

A prospective buyer must delve deeper into the bylaws and written documents of the community to find out the extent of one's rights and responsibilities.  Both types of ownership may have restrictions on such things as pets, maintenance, improvements, subleasing, insurance, etc.  The legal documents will tell you the boundaries of your property, your responsibilities  for repairs (as well as the community's responsibilities), what changes if any you can make to the exterior, etc. 

Why does this matter to a buyer?  You will want to know this information before making a decision about purchasing, so don't wait until you have written a contract before getting the information.  The type of ownership will have a great impact on the type of financing and insurance you will need.

This post describes very general distinctions between condos and PUDS, but prospective buyers should be aware that the terms are not interchangeable.   Please verify type of ownership to see if the property would be right for you.

Just Listed! 64 Debbie Drive, South Windsor, CT for $429,900.

 

I just listed this beautiful expansive ranch in a great neighborhood.  The South Windsor housing market is among the strongest in our area, and with good reason.  It has a great reputation for quality schools, many lovely neighborhoods, upscale shopping areas, many fine restaurants, and easy access to major shopping areas, Hartford, highways, and the University of Connecticut.

Please take a look at this wonderful home and let me know if you have any questions.

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It's a Buyer's Market, Isn't It?

With all the doom and gloom news about the real estate market, it's easy to assume that it's a buyer's market.  In fact, many buyers figure that they can put off making homebuying decisions, make outrageous lowball offers, or be as unreasonable as they want to be because they think it's a buyer's market.

Maybe it is and maybe it isn't.

It all depends on what market you are in.  But before we look at the different markets in our area, let's agree on what a "buyer's market" actually is.  While you may find somewhat different numbers out there, most often people will say that

1-4 months of inventory              =     Seller's market

5-6 months of inventory              =     Neutral market

7 or more months of inventory    =     Buyer's market

 

To determine how many months of inventory there are, we need to calculate the absorption rate, which is the length of time it will take to sell the existing inventory, given how many houses were sold in the prior month.

So we need to know how many houses are currently on the market, including those under contract and those under deposit; we also need to know how many houses sold in the past month.

 

Here are the absorption rates for some of the towns in my service area:

Town	On the Market	Sold Last Month	Absorption Rate
South Windsor	99	26	3.8
Manchester	248	29	8.5
East Hartford	268	21	12.76
Vernon	113	13	8.6
Tolland	91	9	10.1
Ellington	100	9	11.1
Coventry	91	10	9.1
West Hartford	231	41	5.6
Glastonbury	170	26	6.5

 

This information is for single family home sales as reported in the MLS, and absorption rate is reported in months.  As you can see from the information, most of the towns would represent a buyer's market.  Glastonbury and West Hartford are neutral markets and South Windsor is a seller's market.

However, we can narrow this down in any number of ways that will prove to be more useful.  We could calculate the absorption rate by price range, by school district, or by neighborhood. 

We would see, for example, that in the price range of $150,000 to $200,000 in Manchester (104 on the market/9 closed sales in December) the absorption rate is 11.5 (a buyer's market), but in the $250,000 to $300,000 (18 on the market/3 closed sales in December) the absorption rate is 6 months (a neutral market).

Absorption rates can explain a market or help inform a decision, which is useful to buyers as well as sellers, but it is just one piece of information.  A well-priced home is the most important factor and can defy trends in absorption rates.

If you are interested in getting more information about absorption rates in your neighborhood, please contact me.